SINGAPORE (July 31): The manager of Parkway Life Real Estate Investment Trust (PLife REIT) reported a Distribution per Unit (DPU) of 3.27 cents for 2Q19 ended June, which represented an increase of 2.6% from a year ago.
Gross revenue for 2Q19 grew 2.9% to $28.9 million, mainly due to revenue contribution from the Japan property acquisition in 1Q18, higher rent from Singapore properties and appreciation of the Japanese Yen. Correspondingly, net property income increased 2.3% to $26.8 million.
As at June 30, there were no long-term debt refinancing needs for the group till 20203 and the group continues to enjoy an effective all-in cost of debt of 0.91% with an interest cover ratio of 13.8 times. Gearing remains optimal at 36.9%.
The group has been experiencing continuous growth in property income, underpinned by the CPI + 1% rental revision formula for its Singapore properties. For the 13th year of lease term commencing from Aug 23 to Aug 22 2020, the minimum guaranteed rent for the Singapore properties is set to increase by 1.61% over the total rent payable for the preceding year.
PLife REIT owns a portfolio of 50 properties with a total portfolio size of $1.86 billion. It owns Mount Elizabeth Hospital, Gleneagles Hospital and Parkway East Hospital in Singapore. In addition, it has 46 assets located in Japan, including one pharmaceutical product distributing and manufacturing facility in Chiba Prefecture as well as 45 nursing home and care facility properties. It also owns strata-titled units/lots at Gleneagles Intan Medical Centre Kuala Lumpur in Malaysia.
Units in PLife REIT last traded at $3.06.
