The manager of Parkway Life REIT has announced a DPU of 7.54 cents for 1HFY2024 ended June, a 3.5% y-o-y increase compared to the 7.29 cents recorded in 1HFY2023.
Gross revenue decreased by 2.7% y-o-y to $72.4 million due mainly to the depreciation of Japanese yen, partially offset by the contribution from two nursing homes acquired in October 2023.
Net property income correspondingly declined by 2.5% y-o-y to $68.4 million. The properties with step-up lease arrangements contributed to higher distributable income in 1HFY2024.
In 1HFY2024, the REIT registered non-property expenses of $9.4 million, 11.8% lower y-o-y due largely to realised foreign exchange gain amounting to about $4.7 million from the settlement of Japanese yen forward contracts in 1HFY2024.
The period’s net finance costs increased mainly due to the funding of capital expenditure and new acquisitions, as well as higher interest costs from Singapore dollar and Japanese yen debts, partially offset by the depreciation of Japanese yen.
Overall, distributable income to unitholders grew by 3.5% to $45.6 million in 1HFY2024, as compared to $44.1 million in the previous corresponding period.
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As at June 30, the REIT has put in place Japanese yen forward income hedges till 1Q2029 with about 90% of interest rate exposure hedged. It has effectively managed its debt maturity profile with no immediate long-term debt refinancing needs till March 2025.
The REIT has a weighted average term to maturity of 3.3 years and interest coverage ratio of 10.6 times as at June 30. Gearing stood at 35.3%.
Units in Parkway Life REIT closed 1 cent lower or 0.27% down on July 26 at $3.58.
