[SINGAPORE] Parkway Life Reit has raised its third-quarter distribution per unit (DPU) by 2.3 per cent to S$0.1156 from S$0.113 in the previous corresponding period.
Distributable income stood at S$75.4 million, up 10.4 per cent from S$68.3 million.
Revenue climbed 8.2 per cent to about S$117.3 million, boosting net property income by 8.1 per cent to about S$110.7 million.
The higher DPU and distributable income came on the back of the acquisitions of one nursing home in Japan and 11 nursing homes in France in the second half of 2024.
It was also helped by the “marginal appreciation” of the yen, said the real estate investment trust’s (Reit) manager on Wednesday (Nov 5) in its Q3 business update.
It also said its Singapore hospitals delivered continued growth with fixed 3 per cent annual rental step-ups through the financial year, until the end of FY2025.
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As Parkway Life Reit makes distribution on a semi-annual basis, there is no distribution for Q3 2025. It will instead form part of the second-half distribution at the time of the full-year results.
The Reit was also included in the iEdge Singapore Next 50 Index in Q3 2025. It outperformed the S-Reit Index but underperformed when compared to the Straits Times Index.
Sister company Parkway Hospitals Singapore, a subsidiary of IHH Healthcare, is the master lessee for Mount Elizabeth, Gleneagles and Parkway East Hospital.
The long-term master leases with Parkway Hospitals Singapore was renewed for 20.4 years from Aug 23, 2022.
Finance costs for Q3 rose 24.5 per cent to S$10.3 million from S$8.3 million on the funding of capital expenditure, the Japan acquisition in 2024, as well as higher interest costs from debts denominated in yen.
As at Sep 30, 2025, the Reit’s portfolio size stood at around S$2.46 billion across 74 properties and 31 lessees in Singapore, Japan and France. By revenue, 60 per cent of its properties are concentrated in Singapore, 31.6 per cent in Japan and 8.4 per cent in France.
It completed its divestment of its Malaysia portfolio, worth RM20.1 million (S$6.1 million) in August.
The bulk of its portfolio asset mix is taken up by hospitals and medical centres at 65.3 per cent, and nursing homes comprise 34.7 per cent, as at end-September 2025.
Its weighted average lease to expiry was 14.68 years. Less than 3 per cent of the Reit’s leases are due to expire each year for the next five years.
In terms of debt maturity profile, its current weighted average debt term to maturity stood at 3.2 years as at end-September 2025. The manager said its gearing was healthy at 35.8 per cent, with ample debt headroom of S$435.7 million before the 45 per cent mark.
Units of Parkway Life Reit fell 1 per cent or S$0.04 to close at S$4.03 on Tuesday.
