Religare Health Trust’s net profit up 10.3% in Q2

But its DPU slipped 12%.

Religare Health Trust reported a 10% year-on-year increase in its net profit for the second quarter. RHT’s net profit climbed to $10.4m from $9.5m in the same period last year.

The group’s distributable income grew 22.5% year-on-year to $14.4m, largely due to the acquisition of Mohali and increased contribution from Gurgaon after its stabilisation period.

However, DPU slid 12% yoy with the expiry of sponsor waivers for distributions. CIMB notes that this slide is within its and consensus expectations.

“With a healthy balance sheet and net gearing of 15.2%, we believe that more can be done to grow the portfolio. Management is currently growing the portfolio organically, through: 1) increasing current operational bed capacity from its existing 2,550 to the installed bed capacity of 3,594, 2) AEI of S$0.6m, and 3) development projects at BG Road and Ludhiana (estimated to cost S$44.4m),” noted CIMB.