Parkway Life REIT’s profits jump 8.5% to $25.1m in Q1

Thanks to bigger yields from recently acquired assets.

Parkway Life REIT (PLife REIT)’s net property income for 1Q16 grew 8.5% YoY to $25.1m, thanks to increased revenue driven by higher-yielding properties acquired from the firm’s asset recycling initiative.

According to the company’s news release, PLife REIT’s revenue, which climbed 8.6% YoY to $26.9m in Q1, also enjoyed boosts from higher rent from Singapore assets and appreciation of the Japanese Yen.

Meanwhile, DPU for the quarter tumbled 7% YoY to $2.99 S cents on back of an absent one-off distribution of divestment gain that was recorded for 1Q15.

“The healthcare industry continues to present pockets of opportunities, with population expansion and rising affluence being strong drivers of health spending. Going into FY2016, we remain cautiously optimistic and cognisant of challenges in acquisition opportunities given the market volatility,” said Yong Yean Chau, CEO of Parkway Trust Management Limited.

“But we believe that our favourable rental lease structures and other robust fundamentals will continue to sustain long-term value for our Unitholders,” added Yong.