PARKWAY Life Real Estate Investment Trust (PLife Reit) posted an 11.6 per cent year-on-year increase in distributable income to $12.38 million for the fourth quarter ended Dec 31, 2009.
Distribution per unit (DPU) for the quarter amounted to 2.05 cents versus 1.84 cents in Q4 2008, which translates to a full year DPU of 7.74 cents and a 6.34 per cent distribution yield. In FY08, PLife Reit achieved a full year DPU of 6.83 cents.
For Q4 2009, gross revenue rose 9.7 per cent to $17.7 million compared to the same period last year.
Both property expenses and financing costs rose during the quarter as a result of the eight nursing homes acquired in November last year. Property expenses for Q409 were $0.2 million higher at $1.3 million and finance costs rose from $2.05 million to $2.24 million.
For the full year of 2009, distributable income came in at $46.7 million, a 13.4 per cent increase from the previous year.
Gross revenue surged by 23.7 per cent year-on-year from $53.89 million to $66.68 million, on the back of revenue contributions from properties in Japan acquired in 2008 as well as from the eight new nursing homes. Higher rent from the Singapore hospital properties – comprising Mount Elizabeth Hospital, Gleneagles Hospital, and East Shore Hospital – also boosted revenue.
The acquisition of the nursing homes brought PLife Reit’s total portfolio size, as at Dec 31, 2009, to 21 properties worth $1.15 billion, up 9.5 per cent from $1.05 billion in the previous year. It has a 100 per cent occupancy rate across its entire portfolio.
Yong Yean Chau, CEO of Parkway Trust Management, said: ‘Given our strong financial position, we were able to time the market and acquire quality properties in the fourth quarter at a very attractive pricing. We also saw our maiden asset enhancement initiative (at its Japan pharmaceutical product distributing and manufacturing facility P-Life Matsudo) thereby boosting our income stream further.’
The distribution payment will be made on Feb 26.
Source: Business Times, 23 Jan 2010