SINGAPORE (July 26): The manager of Parkway Life REIT (PLife REIT) declared a 2Q18 DPU of 3.19 cents, bringing 1H18 DPU to 6.36 cents, 3.6% lower than 6.60 cents in 1H17.

2Q18 DPU was 3.7% lower compared to 3.32 cents in 2Q17 due to the absence of one-off distribution of divestment gain, which was present in 2Q17.

For 2Q18, total distributable income to unitholders fell 3.7% to $19.3 million from $20.1 million in the previous year.

Gross revenue for 2Q18 was 1.3% higher at $28.1 million from $27.7 million a year ago.

This was mainly due to contribution from one nursing rehabilitation facility that the trust acquired on Feb 14, as well as higher rent from the Singapore properties, but partially offset by the depreciation of the JPY as compared to the same period last year.

Property expenses saw a 2.2% y-o-y increase to $1.89 million, bringing net property income (NPI) to $26.2 million, 1.2% higher than $25.9 million last year.

During 2Q18, the group recorded net foreign exchange gain of $119,000, compared to a net foreign exchange loss of $6,000 a year ago.

As at June 30, the group’s cash and cash equivalents stood at $31.4 million.

Yong Yean Chau, CEO of the manager says, “Our consistent disciplined approach coupled with the defensive lease structures of our diversified portfolio have filtered down to strong and sustainable DPU growth from recurring operations for PLife REIT. With a focus on delivering sustainable, long-term growth for our Unitholders, we continue to pursue strategic opportunities to drive value for PLife REIT.”

Units in Parkway Life REIT last traded 1 cent higher at $2.78 on Wednesday.