CFA Society Singapore
SINGAPORE (Jan 26): The manager of Parkway Life REIT (PLife REIT) has announced a 4Q17 distribution per unit (DPU) of 3.38 cents, growing 10.6% on-year from a DPU of 3.06 in 4Q16 due to the one-off distribution of divestment gains.
This brings total DPU for FY17 to 13.35 cents, up 10.2% from 12.12 cents in FY16.
Gross revenue in 4Q declined by 0.7% to $27.5 million from $27.7 million previously as a result of the depreciation of the JPY.
The forex losses were largely offset by an increase in gross revenue from properties acquired in 1Q17, along with higher income from the upward rent revision of 1.27% for Singapore hospitals.
Net property income (NPI) grew 0.7% to $25.7 million in 4Q, due to lower property expenses compared to the year before on the absence of one-off marketing commission paid to the manager.
Finance costs over the latest quarter fell by 21.7% to $1.9 million compared to $2.4 million in 4Q16, largely due to refinancing initiatives completed in 2016 and 1Q17.
PLife REIT registered a portfolio revaluation gain of $26 million over the latest financial year, and its total portfolio size stands at approximately $1.7 billion as at 31 December 2017.
“Throughout the year, proactive financial and capital management continues to work in unison to enhance the stability of distributions to unitholders. We enter our second decade with confidence, with a healthy level of gearing and a lowered effective all-in cost of debt,” says Yong Yean Chau, CEO of the manager.
“Moving into the new financial year, our sound fundamentals continue to serve as the bulwark as we stay watchful for growth opportunities for PLife REIT.”
Units in PLife REIT closed 3 cents lower at $2.97 on Thursday.