Summary of REITs Financial Results in 1Q2016

Most or all of the REITs in my portfolio have completed announcing their 1Q2016 results. There are some hits and some misses. As shown in the table I summarized below, Distribution Per Unit (“DPU”) increases for 6 out of 11 REITS I am holding while DPU fell for the other 5.

DPU fell for those REITs that focuses on a single industry sector such as industrial, retail or office. REITs like Suntec REIT which has a combination of office and retail survived the economy downturn. Mapletree Commercial Trust did fairly well too as it has a combination of office and retail (Vivocity).

Those with overseas assets did well too. Frasers Commercial Trust has both Singapore and Australian properties. Lippo Malls Indonesia Retail Trust did well as its malls are in Indonesia.

Having said so much, I just want to highlight the importance of diversification of portfolio.

Stock Name

Date Of Release

Of

Financial Results

Dividend Per Unit (DPU)

Increase or Fall

Frasers Commercial TrustWednesday, 20 January 2016DPU Increase
CapitaMall TrustFriday, 15 April 2016DPU Increase
Keppel ReitThursday, 14 April 2016DPU Fall
Soilbuild Business ReitThursday, 14 April 2016DPU Fall
Suntec REITThursday, 21 April 2016 DPU Increase
Mapletree Commercial TrustTuesday, 26th April 2016  DPU Increase
Parkway Life ReitTuesday, 26th April 2016  DPU Fall
Far East Hospitality TrustWednesday, 27th April 2016  DPU Increase
Cambridge Industrial TrustThursday, 28th April 2016  DPU Fall
Lippo Malls Indonesia Retail TrustTuesday, 3rd May 2016  DPU Increase
OUE Hospitality TrustFriday, 6th May 2016DPU Fall

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 Revenue26,90124,7738.6
Net Property Income25,13523,1658.5
Distributable Amount18,09719,463(7.0)
Distribution Per Unit (“DPU”) (cents)2.993.21(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