Parkway Life REIT's NPI grew 5.3% to $28.22m in Q2

Revenue contribution from three Japan nursing rehabilitation facilities led its growth.

Parkway Life REIT (PL REIT) saw its net property income (NPI) rise 5.3% YoY in Q2 to $28.22m from $26.81m in Q2 2019, an SGX filing revealed. NPI in H2 inched up 4.9% YoY to $56m from $53.35m.

Gross revenue rose 4.9% YoY to $30.3m in Q2 from $28.86m, mainly due to revenue contribution from three Japan nursing rehabilitation facilities acquired in Q4 2019. Higher rent from Singapore properties, as well as appreciation of the Japanese Yen also contributed.

Amount available for distribution also rose 5.2% YoY in Q2. The group retained the remaining $850,000 as part of the $1.7m COVID-19 related relief measures for tenants announced in Q1.

Despite the amount retained, total distributable income to unitholders for Q2 and H1 rose 2.5% and 1.9% YoY to $20.3m and $40.4m respectively, translating to distribution per unit (DPU) of 3.36 Singapore cents and 6.68 Singapore cents for the corresponding periods.

As at 30 June, PL REIT said that they have no long-term debt refinancing needs till June 2021 and the group continues to enjoy an effective low all-in cost of debt of 0.6%. With about 88% of its interest rate exposure hedged, PLife REIT’s interest coverage ratio stood at 15.8 times. Gearing remained optimal at 38.3% as at the end of the quarter.

Further, the Group has experienced continuous growth in property income, underpinned by the CPI + 1% rental revision formula for its Singapore properties.

“For the 14th year of lease term commencing from 23 August to 22 August 2021, the minimum guaranteed rent for the Singapore properties is set to increase by 1.17% over the total rent payable for the preceding year,” the SGX filing said.