Healthcare S-Reits record mixed DPU performance, but deliver operational stability amid currency headwinds

[SINGAPORE] A total of 22 Singapore real estate investment trusts (S-Reits) have released their financial results or business updates for the periods ended Dec 31, with another 13 expected to report in the coming weeks.

Among them, Healthcare S-Reits Parkway Life Reit (PLife Reit) and First Reit have both published their full-year results. PLife Reit posted a 2.5 per cent year-on-year (yoy) increase in full-year distribution per unit (DPU) to S$0.1529. The Reit also reported higher gross revenue of S$156.3 million increasing 7.6 per cent yoy and net property income of S$147.5 million rising 8 per cent yoy.

The improved performance was driven by both contributions from newly acquired assets in France and Japan, and steady organic rental growth from its Singapore hospital portfolio, supported by step-up lease agreements.

Following its expansion into Europe, PLife Reit has fully integrated its France nursing home portfolio, establishing the region as its third key growth market.

CGSI Research analyst Lock Mun Yee noted that Singapore remains the Reit’s main income contributor, with its master lease structure providing the Reit with visible and sustainable income growth.

PLife Reit maintains a gearing ratio of 33.4 per cent and an interest coverage ratio of 8.6 times, which Lock noted gives the trust ample headroom for further inorganic growth opportunities.

As at Dec 31, 2025, PLife Reit’s portfolio spans 74 properties across Singapore, Japan and France, with a weighted average lease expiry of 14.5 years by gross revenue.

First Reit

First Reit reported a full-year DPU of S$0.0217, representing an 8.1 per cent yoy decline, mainly due to the depreciation of the rupiah and yen against the Singapore dollar.

In local currency terms, however, underlying property performance remained resilient. Rental and other income for Indonesia and Singapore properties rose by 5.1 and 2 per cent, respectively, while Japan properties remained stable.

During the year, First Reit completed the divestment of the Imperial Aryaduta Hotel and Country Club, a non-core asset, as part of its ongoing portfolio optimisation efforts. Across its Indonesian assets, 10 hospitals recorded a 4.5 per cent built-in rental escalation, and three hospitals achieved performance-based rent equivalent to 8 per cent of each hospital’s gross operating revenue (in local currency terms).

Meanwhile, the Reit’s three Singapore nursing homes recorded positive rental growth, and its 14 nursing homes in Japan continued to deliver stable performance.

The writer is a research analyst at SGX. For more research and information on Singapore’s Reit sector, visit sgx.com/research-education/sectors for the S-Reits & Property Trusts Chartbook.