NEW acquisitions and higher rents have delivered a record payout to unit holders of Parkway Life Real Estate Investment Trust (Reit).
Distribution per unit for the three months ended June 30 came in at 2.9 cents for the three months to June 30, up 10.2 per cent from a year ago.
The Reit's income available for distribution likewise gained 10.2 per cent in the second quarter from the previous year to reach $17.5 million, its manager Parkway Trust Management said yesterday.
The Singapore-listed health- care Reit posted a 12.2 per cent rise in revenue to $25.3 million, on the back of rental income from newly acquired hospitals and higher rents from its existing Singapore hospitals.
Net property income climbed 12 per cent over last year to hit $23.6 million for the second quarter.
"Our strong results this quarter were driven mainly by acquisitions and rental growth of existing properties," said Mr Yong Yean Chau, chief executive of Parkway Trust Management.
"Properties we acquired in Japan in the second half of 2013 and first quarter of 2014 have boosted our revenue, contributing to our healthy and steadfast distribution per unit growth that has been on the rise since our IPO (initial public offering) in 2007," he added.
Parkway Life Reit owns 42 nursing home and care facility properties in Japan and three hospitals in Singapore.
It is anticipating a 2.81 per cent rise in its minimum guaranteed rent for its Singapore hospitals during the year starting Aug 23.
Mr Yong also said that he believes the growing demand for private health-care facilities and services and higher health-care spending in Asia "paint a positive outlook for the regional health- care industry over the next few years".
But he added: "While we remain optimistic about the long- term prospects of the health-care industry, we are mindful of macroeconomic headwinds ahead."
As such, the Reit has taken steps to spread out its debt maturity and minimise its near-term financing risks, he said.
The book closure date for Parkway Life Reit's second-quarter distributions is next Tuesday and payments will be made on Sept 2. fiochan@sph.com.sg
This article was first published on August 5, 2014.
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