Parkway Life REIT has reported gross revenue of $108.5 million for 3QFY2024 ended Sept 30, 2.2% lower y-o-y. This was mainly due to depreciation of Japanese yen, says the REIT manager on Oct 16, partly offset by contribution from the properties acquired in 2023 and 2024.
Net property income for the quarter was 2.1% lower y-o-y, at $102.4 million.
That said, the drop in revenue will be compensated by the foreign exchange gains from the settlement for the forward contracts, says the REIT manager. The REIT reported 2.8% higher distributable income of $538,000 during the quarter from Singapore hospitals and some Japanese nursing homes with step-up lease arrangements.
The distribution per unit (DPU) for the 9MFY2024 is 2.8% higher y-o-y, at 11.3 cents. As the REIT makes distribution on a semi-annual basis, no distribution is set for 3QFY2024. The DPU of 11.3 cents will form part of the 2HFY2024 distribution when the REIT announces its 2HFY2024 results.
As at Sept 30, the REIT’s committed occupancy stands at 100%, with 64 leases and 34 lessees.
Additionally, the REIT’s cash and cash equivalent are $37.2 million for 3QFY2024, up from $28.5 million as at end-2023. The REIT’s investment properties increased in value to $2.3 billion from $2.2 billion as at end-2023.
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Net asset value per unit stood at $2.30 at the end of 3QFY2024, down from $2.34 at end-2023.
As at Sept 30, the REIT’s weighted average debt expiry stood at 3.0 years, which is expected to extend to 3.8 years after loans due in 2025 mature, along with a short-term loan drawn down for acquisitions.
Meanwhile, the REIT’s gearing is at 37.5%. The REIT has a debt headroom of $321.3 million and $590.1 million before reaching 45% and 50% gearing, respectively.
Units in Parkway Life REIT closed flat at $4.02 on Oct 16.
