Parkway Life REIT reported a 2.9 per cent on-year increase in its first-quarter distribution per unit (DPU) to 2.64 Singapore cents.
Excluding a one-off tax adjustment, the REIT said DPU would have increased 7 per cent.
Gross revenue rose 1.1 per cent to S$23 million, while net property income climbed 1.8 per cent to S$21.5 million.
Parkway Life REIT said this was mainly due to full-quarter contributions from its Japan and Malaysia properties.
It remains cautiously optimistic about its near-to-medium-term acquisition prospects and believes that the region’s healthcare industry will remain robust due to demand for quality private healthcare services driven by fast-ageing populations.
Source – Today – 9 May 2013
Parkway Life Real Estate Investment Trust (REIT) is expanding its Japanese nursing home portfolio by acquiring eight properties for some S$77.6 million.
The REIT said it is buying the eight nursing homes at a favourable pricing from Japanese real estate asset manager, Kenedix.
Parkway Life REIT said all the nursing homes are strategically located in dense residential districts, making them attractive retirement facilities.
Each of the nursing homes also has a long-term lease agreement with the operators.
In addition, Kenedix will provide a rental deficit support for seven years, capped at 5 per cent of the purchase price.
The REIT said the rental deficit support enhances the credit quality of its portfolio and provides certainty for future returns to investors.
It added that the deal would allow it to establish a presence and gain stronger foothold in the fast-growing Japan nursing home industry.
Parkway Life REIT said the acquisition is expected to have a net property yield of 8.29 per cent, which compares favourably with the 6.14 per cent yield of its existing nursing home portfolio.
It will fund the deal through a five-year loan of some S$82.25 million.
Acquisition of the properties is expected to be completed by next Tuesday.
Source : Channel NewsAsia – 13 Nov 2009