ParkwayLife REIT’s revenue and net property income rose by 2.3% and 1.9% respectively to $30.7 million and $28.5 million in 1QFY2022 for the three months to Mar 31. By gross revenue, 60.5% of the portfolio is from SIngapore, and the remaining 39.3% is from Japan.
During 1Q2022, the JPY eased against the Singapore dollar and this caused valuation of the portfolio to decline by $39 million to $2.25 billion. However, because of capital expenditure in 1Q2022, and lower liabilities, net asset value rose marginally to $2.38.
On the capital management front, PLife REIT’s manager termed out a JPY loan to replace short term loans for the Japanese acquisitions in 2HFY2021. In addition, the manager executed new JPY interest rate hedges in March 2022 to hedge the interest rate exposure arising from the new loan as well as extension of existing hedges that have rolled off. With the new hedges in place, about 81% of interest rate exposure is hedged.
Cost of debt remains low at 0.56%, while interest coverage ratio is the highest among the S-REITs at 20.2x. Aggregate leverage as at Mar 31 is 34.5%.
