Parkway Life Real Estate Investment Trust (PLife REIT) says it registered a 21.1% increase in gross revenue from $17.7 million in the previous corresponding period (4Q 2009) to $21.5 million for the fourth quarter (4Q 2010) ended 31 December 2010.

PLife REIT says this was primarily due to the full quarter revenue contribution amounting to $0.9 million from the eight Japan nursing home properties acquired in November 2009, and recognition of revenue contribution amounting to $2.5 million from the 11 Japan nursing home properties acquired in June and July 2010.

Revenue was further driven by higher rent from the Singapore Hospital Properties as a result of the rental growth rate of 1.73% (based on CPI + 1%) for Year 4 of the lease term commencing 23 August 2010. Property expenses were $1.8 million, resulting in a 19.5% increase in net property income to $19.7 million for 4Q 2010.

For FY2010, gross revenue increased 20.0% from $66.7 million for FY2009 to $80.0 million. Property expenses were $6.4 million, resulting in an 18.8% increase in net property income to $73.6 million for FY2010.

Financing costs were higher in 4Q 2010 and FY2010, mainly due to 100% debt funding of the Japan properties acquired in 2010. The increase was offset by interest cost savings from the completion of the refinancing exercise as announced on 16 August 2010.

As a result of the yield-accretive acquisitions, interest cost savings from the refinancing exercise and higher rent from the existing properties, distributable income for 4Q 2010 increased 16.6% to $14.4 million, from $12.4 million for 4Q 2009. For FY2010, distributable income rose 13.8% to $53.2 million, from $46.7 million for FY2009. Accordingly, DPU increased 16.6% from 2.05 cents to 2.38 cents for 4Q 2010, and 13.8% from 7.74 cents to 8.79 cents for FY2010. Distribution payment date is expected on 28 February 2011.