Parkway Life Reit 9M DPU rises 13.4% to S$0.131 on higher rental receipts - The Business Times
However, revenue is down 1.9% at S$115.1 million, due partly to the depreciation of the Japanese yen
[SINGAPORE] Parkway Life Real Estate Investment Trust (Reit) posted a 13.4 per cent year-on-year increase in distribution per unit (DPU) to S$0.131 for the nine months ended Sep 30, 2026, from S$0.1156 in the corresponding period last year.
The healthcare Reitβs amount available for distribution rose 13.4 per cent to S$85.5 million, from S$75.4 million in the year-ago period, its business update said on Tuesday (Nov 3).
The growth was supported by higher rental receipts from its Singapore hospitals under an annual rent review formula, as well as a step-up lease arrangement for its nursing home portfolio in France.
This came despite a 1.9 per cent decline on the year in revenue to S$115.1 million, from S$117.3 million.
Net property income fell 2.4 per cent to S$108 million, from S$110.7 million in the corresponding period last year.
The manager of the Reit attributed the lower revenue and net property income mainly to the depreciation of the Japanese yen and reduced rental income following tenant exits at five nursing home properties in Japan. These were partially offset by higher contributions from its Singapore hospitals.
It noted that the Reitβs net income from Japan is hedged, with foreign-exchange gains from the settlement of forward contracts expected to compensate for the weaker revenue contribution.
For its Singapore portfolio, minimum annual rent is set to rise to S$99.1 million in FY2026, from S$79.7 million in FY2025, under the revised rent review formula.
The Reit recorded an additional rental uplift of around S$900,000 in the second quarter, following about S$800,000 in the first, bringing the first-half total to S$1.7 million. This was driven by the outperformance of Gleneagles Hospital and Parkway East Hospital, with the additional income to be distributed once full-year revenue sharing is finalised.
As at Sep 30, the Reitβs gearing stood at 34.8 per cent, with an all-in debt cost of 1.72 per cent and an interest coverage ratio of 7.9 times. About 94 per cent of its interest rate exposure was hedged.
Separately, Parkway Life Reit said it had entered into an agreement on Oct 13 to acquire three nursing homes in France for 38.8 million euros (US$43.5 million).
The properties, located in Marseille and Velaux, will be leased to existing operator DomusVi under new 12-year leases. The acquisition is expected to be completed by December 2026, subject to conditions being met.
The Reit also secured four yen-denominated loan facilities totalling 21.61 billion yen (US$137 million) to refinance debt maturing in 2027. Following the refinancing exercise, it expects to have no long-term debt refinancing requirements until December 2027.
Units of Parkway Life Reit ended S$0.02 or 0.5 per cent higher at S$4 on Monday.
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