Parkway Life REIT, which owns 55 properties ranging from hospitals to nursing homes, has increased its distribution per unit for 3QFY2021 to 3.56 cents, up 0.8% y-o-y.
This brings its total distribution thus far this year to 10.51 cents per unit, up 2.9% y-o-y.
The REIT’s distributable income for 3Q was $21.6 million, up 0.8% y-o-y whereas gross revenue was up 1.2% y-o-y to $30.5 million.
The growth was mainly due to higher rent collected in Singapore, as well as new contributions from recently added properties in Japan.
The portfolio as at end Sept is worth $2.29 billion.
On the other hand, the REIT got to bear with loss of income from the divestment of a non-core property in Japan (P-Life Matsudo) in January and also the depreciation of the yen.
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On Sept 30, the REIT announced it has secured a master lease renewal over the existing Singapore hospitals that forms the core of its portfolio.
It has also been given a right of first refusal over the Mount Elizabeth Novena Hospital (picture), which is now held by IHH Healthcare, the parent company.
There’s no indication yet when the REIT would acquire this asset.
For now, the REIT’s overall portfolio weighted average lease to expiry by gross rent had been extended to 17.42 years from 5.36 years.
With a net asset valuation uplift of $239 million registered for the hospitals it owns in Singapore, its gearing had also correspondingly improved from 37.0% to 34.9%.
“The successful renewal of the master leases for the Singapore Hospitals marked the extension of the strategic collaboration between PLife REIT and IHH Healthcare Berhad, ensuring that we remain well-positioned to ride on the growth potential of the Singapore healthcare industry,” says CEO of the REIT’s manager Yong Yean Chau.
“Coupled with the further strengthening of the group’s capital and financial position, PLife REIT stands in good stead to deliver continual stable distributions to unitholders,” he adds.
PLifeREIT closed Nov 3 at $4.65, up 0.43% for the day and 19.23% year to date. At this price and DPU, the REIT has an annualised yield of 3.06%.
Photo of Mount Elizabeth Novena Hospital by The Edge Singapore
