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The distributable income of Parkway Life Real Estate Investment Trust (PLife REIT) rose 9.6 percent to S$19.84 million in Q1 2017 from S$18.10 million in the same period a year ago, revealed an SGX filing on Tuesday, 25 April 2017.
Likewise, distribution per unit (DPU) increased at a similar percentage to 3.28 cents compared with 2.99 cents during the first quarter of 2016.
Regarding the sale of four properties in Japan as announced last December, its after tax proceeds of S$5.39 million will be equally distributed to unitholders over four quarters in FY2017, with a payout of 0.22 cents for the first quarter.
This transaction also represents the trust’s 2nd asset recycling initiative, freeing up capital for the purchase of five Japan properties for 4,759 million yen (approx. S$59.5 million).
“The acquisition marks PLife REIT’s foray into Yamaguchi Prefecture and deepened the group’s presence in the Chiba prefecture. The addition of another established operator also added diversity to the group’s tenant base,” it said in a statement.
In Q1 2017, PLife REIT’s gross revenue edged up by 0.2 percent to S$26.95 million versus S$26.90 million previously, while net property income remained virtually unchanged at S$25.14 million.
“For this quarter, the gross revenue was underpinned by the contribution from a nursing home acquisition in March 2016, higher rent from the Singapore properties and the appreciation of the Japanese Yen. Following the completed acquisition of the five Japan properties on 24 February 2017, the new properties had started contributing to the REIT’s revenue in Q1 2017,” it noted.
PLife REIT, one of Asia’s largest listed healthcare REITs, owns a portfolio of 49 properties in Singapore and Japan with a combined value of S$1.7 billion as of 31 March 2017.
This article was edited by Denise Djong.
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