Parkway Life REIT (PLife REIT) reported a 7.4% y-o-y growth in distribution per unit (DPU) to 3.57 cents for the 1QFY2021 ended March.

According to its 1QFY2021 business update dated April 23, total distributable income for the period came in at $21.6 million, up 7.4% y-o-y from $20.1 million previously.

Net property income (NPI) for the 1QFY2021 grew 1% to $28.8 million, following 0.4% y-o-y growth in revenue for the period grew to $30 million.

The relatively stable NPI was mainly driven by contribution from the Japanese nursing home acquired by the REIT in December 2020, as well as the absence of one-off Covid-19 related relief measures retained in 1QFY2020.

PLife REIT’s Japan portfolio, contributed nearly 40% of the total NPI at $11.3 million for the 1QFY2021 (versus $11.2 million in the 1QFY2020).

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The contribution from the nursing home offset the loss in rent from the divestment of a pharmaceutical manufacturing and distributing facility in Japan by the REIT for $37.1 million in January.

Looking ahead, the manager of the REIT states that its next phase of growth will be consolidation of its Japan assets, proactive management of its portfolio, as well as potential new opportunities in other regional markets.

The REIT manager is targeting an asset mix of 60:35:5 comprising hospitals, nursing homes, and pharmaceutical facilities respectively.

Excluding the one-off retention, DPU grew by 3% y-o-y.

Units in PLife REIT closed flat at $4.21 on April 22.