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Parkway Life REIT reports 6.7% higher 4Q DPU of 3.57 cents, bringing FY2020 DPU to 13.79 cents

Felicia Tan
Felicia Tan1/25/2021 09:13 PM GMT+08  • 3 min read
Parkway Life REIT reports 6.7% higher 4Q DPU of 3.57 cents, bringing FY2020 DPU to 13.79 cents
Unitholders can expect to receive their DPU by Feb 26.
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The manager of Parkway Life REIT (PLife REIT) has reported distribution per unit (DPU) of 3.57 cents for the 4QFY2020 ended December, representing a 6.7% growth over DPU of 3.34 cents in 4QFY2019. This was due to contribution from the newly-acquired properties and cost savings.

4QFY2020 distributable income to unitholders, likewise, rose 6.7% y-o-y to $21.6 million.

Gross revenue for the 4QFY2020 increased 9.0% y-o-y to $30.6 million largely due to revenue contribution from the property acquisitions in Japan in December 2019 and December 2020, higher rent from its Singapore properties as well as the appreciation of the Japanese yen.

Property expenses in 4QFY2020 were up 194.3% y-o-y to $2.1 million as expenses in 4QFY2019 were due to a one-off reclassification of insurance reimbursement received.

Consequently, net property income (NPI) for the quarter stood 4.2% higher y-o-y at $28.5 million.

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During the quarter, the REIT recognised a realised foreign exchange gain of $51,000 from the delivery of quarterly Japanese yen forward contracts to hedge the net income from Japan.

DPU for the FY2020 stood at 13.79 cents, 4.5% higher than DPU of 13.19 cents for FY2019. The higher DPU was mainly driven by acquisitions, rental growth, cost savings, and was offset by Covid-19 related relief measures.

FY2020 distributable income to unitholders rose 4.5% y-o-y to $83.4 million.

Gross revenue for FY2020 grew 4.9% y-o-y to $120.9 million largely due to revenue contribution from the Japan property acquisitions that led to the higher revenue in 4QFY2020.

Property expenses for the year was up 19.5% y-o-y to $8.4 million due to the higher repair expenses incurred in 2020 and the general increase in property expenses, in line with the REIT’s larger portfolio during the year.

FY2020 NPI grew 4.0% y-o-y to $112.5 million.

As at Dec 31, 2020, PLife REIT’s interest coverage ratio stood at 18.1 times with 87% of its interest rate exposure hedged. Gearing stood at 38.5%, within the regulatory gearing limit of 50%.

PLife REIT’s portfolio size stands at some $2.02 billion as at Dec 31, 2020.

The REIT has a total committed occupancy of 99.7% in the same period, with 100% committed occupancies in Singapore and Japan.

PLife REIT has a weighted average lease expiry (WALE) of 5.74 years by gross revenue as at Dec 31, 2020.

SEE: Parkway Life REIT reports 7.4% higher 3QFY2020 DPU of 3.54 cents

In the same period, cash and cash equivalents stood at $22.7 million.

Unitholders can expect to receive their DPU by Feb 26.

“The health and safety of our tenants, staff and patients have always been a priority, and even more so during this time. As Singapore is opening its borders while Malaysia and Japan are experiencing a surge in Covid-19 infection, our tenants continue to be in operational with the enforcement of strict precautionary infection control measures to keep their employees and patients including nursing care residents safe,” says Yong Yean Chau, CEO of the manager.

“Against a backdrop of volatility in the macro economy and tepid performance in the financial markets, PLife REIT will continue to focus on driving resilient returns backed by solid financial management. The healthcare industry continues to remain critically essential in a rapidly aging population and with greater demand for better quality healthcare and global aged care services. PLife REIT’s portfolio of 54 high-quality healthcare and healthcare-related assets places it in a good position to benefit from the resilient growth of the healthcare industry in the Asia Pacific region,” he adds.

Units in PLife closed 2 cents lower or 0.5% down at $4.01 on Jan 25.

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