Parkway Life REIT DPU Fall for 1Q2016

Parkway Life REIT Logo

On 26th April 2016, Parkway Life REIT announces its 1Q 2016 results. Distribution Per Unit (“DPU”) fell 7% to 2.99 cents from 3.21 cents. The fall in distributable amount was due to a missing one off divestment gains as compared in 2015.

Gross revenue grew by 8.6% and Net Property Income (“NPI”) grew by 8.5%. I will consider the result decent although DPU fell which we know it was due to a missing one off divestment gains.

1Q2016
(S$’000)
1Q2015
(S$’000)
YoY(%)
Gross Revenue 26,901 24,773 8.6
Net Property Income 25,135 23,165 8.5
Distributable Amount 18,097 19,463 (7.0)
Distribution Per Unit (“DPU”) (cents) 2.99 3.21 (7.0)

Net Property Income (NPI)

The increase in NPI was due to rent contribution from the properties acquired in 1Q2015. (Parkway Life REIT Purchase New Japan Nursing Home)

Parkway Life REIT 1Q2016 NPI

Debt Maturity Profile

The weighted average term to maturity of the debt is 3.5 years. 98% of the interest rates are hedged. With the recent 6-year JPY fixed rate notes in March 2016, 34% of the refinancing requirements in FY2017 has been termed out.

Strong Sponsor

IHH Healthcare Berhad (IHH) holds approximately 35.7% of Parkway Life REIT. IHH is 43.4% owned by Khazanah, the investment holding arm of the Government of Malaysia.

Parkway Life REIT 1Q2016 Sponsor

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