Friday, May 7, 2010

PLife Reit's DPU up 9.7% to 2.07 cents in Q1

PARKWAY Life Real Estate Investment Trust (PLife Reit) saw its distribution per unit (DPU) for the first quarter ended March 31 rise 9.7 per cent to 2.07 cents, from 1.89 cents in the previous corresponding quarter.

This translates to an annualised DPU of 8.28 cents and an annualised distribution yield of 6.09 per cent for 1Q10 based on the share price of $1.36 at the market's close on March 31.

The DPU will be paid on June 9.

In the first quarter, gross revenue rose 14.1 per cent year-on-year to $18.65 million on the back of additional revenue contribution of $1.8 million from eight nursing homes acquired in Japan in 4Q09 as well as higher rent from existing properties.

Property expenses for 1Q10 were around 27 per cent higher at $1.4 million as a result of the newly acquired nursing homes.

PLife Reit owns three hospitals in Singapore and 18 healthcare assets in Japan.

Meanwhile, distributable income was 9.7 per cent higher at $12.5 million. Earnings per unit were 2.01 cents for 1Q10 compared with 1.76 cents a year earlier.

In March, the group issued a $50 million three-year floating rate note (FRN) - under its multi-currency medium-term note programme established in 2008 - and part of the proceeds were channelled towards paying $34 million in bank borrowings due in the second half of 2010. This lengthens the weighted average term to maturity for all of PLife Reit's debts to 2.48 years as at March 31, 2010.

Meanwhile, the remaining proceeds raised from the FRN will be used for general working capital and funding purposes, it said.

'Riding on the economic recovery and increasing demand for quality healthcare assets, PLife Reit will continue to leverage on our strong fundamentals to propel acquisitive growth, by actively seeking assets that enhance the overall stability and yield-generating ability of our portfolio,' said Yong Yean Chau, chief executive of Parkway Trust Management Limited, which manages PLife Reit.

PLife Reit plans to boost its presence in the region by also venturing into other markets that are seeing high growth in the healthcare sector.

PLife Reit closed unchanged at $1.32 in trading yesterday.

Source: Business Times, 7 May 2010

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