SINGAPORE (April 25): Parkway Life REIT’s (PLife REIT) manager today posted a distribution per unit (DPU) of 3.28 cents for the first quarter ended March 31, up 9.6% from the 2.99 cents declared a year ago.

Gross revenue for the quarter remained comparable to that of the previous year at $26.9 million, in spite of the REIT’s divestment of four Japan nursing homes in Dec 2016.

(See also: Parkway Life REIT sells 4 nursing homes in Japan for $48 mil)

This was largely due to the contribution from the REIT’s acquisition of a nursing home in March 2016, higher rent from the Singapore properties, and the appreciation of the Japanese yen. Additionally, PLife REIT’s five new properties acquired in Japan on Feb 24 this year also began contributing to group revenue during 1Q17.

After deducting property expenses, which increased slightly by 2.3% to $1.8 million from $1.76 million in the previous year, net property income (NPI) for the quarter was 25.1 million, relatively unchanged from 1Q16.

The gain from PLife REIT’s divestment of its four nursing homes in Japan last Dec will be equally distributed over the four quarters FY17, with a payout of 0.22 Singapore cents for 1Q 2017, says the manager in a Tuesday filing to the SGX.

As part of ongoing efforts to strengthen the REIT’s balance sheet, all its long-term loans which were due in FY18 had been successfully termed out in 1Q17, while there will be no long-term refinancing need till FY19.

Gearing remains at 37.6% with a low effective all-in cost of debt of 1.3% as of end March.

“As we continue to build on our proven strategies, we are pleased to deliver another quarter of steady DPU growth since IPO,” says Yong Yean Chau, CEO of the manager.

“Our rejuvenated portfolio of assets following the 2nd asset recycling and reinforced capital structure has strengthened our foundation as we look forward to delivering further growth in the year ahead.”

Units of PLife REIT closed flat at $2.53 on Monday.