Parkway Life Real Estate Investment Trust, announced Distribution per Unit (“DPU”) of 3.28 Singapore cents and 12.87 Singapore cents for the fourth quarter and full year ended 31 December 2018 espectively.
On an overall basis, DPU for 4Q 2018 and FY 2018 declined y-o-y by 2.9% and 3.5% respectively, due to the absence of one-off distribution of divestment gain. Excluding the one-off gain, DPU from recurring operations registered a steady y-o-y increase of 3.9% and 3.4% from the preceding periods (“4Q 2017” and “FY 2017”, respectively).
– Excluding the one-off divestment gain , DPU from recurring operations rose 3.9% (4Q Y-O-Y) and 3.4% (full year)
-Achieved a portfolio revaluation surplus of S$77.9 million
-Gearing remains optimal at 36.1%
Mr. Yong Yean Chau, Chief Executive Officer of the Manager, commented on the Group’s outlook: “With healthy fundamentals in place, underpinned by supportive demographic trends and the higher demand for better quality healthcare and aged care services, the longterm outlook of the healthcare industry in Asia remains strong. Nonetheless, we remain cautious and vigilant given the current uncertainties in the macro economy and volatility in the financial markets. We will continue to adopt prudent financial risk management to manage our exposure to interest rate and foreign currency risks, in order to enhance the defensiveness of our portfolio.”
As at 31 December 2018, PLife REIT has a low all-in cost of debt of 0.97% and its interest rate exposure is largely hedged to strengthen resilience against potential interest rate hikes. The interest coverage ratio stood healthy at 13.7 times, with optimal gearing at 36.1%.
“With the Group’s fortified capital structure, coupled with the favourable rental lease structures across the portfolio, PLife REIT stands in good stead to deliver continued stable distributions to Unitholders. As and when compelling opportunities arise, we will also look to sharpen the quality of our portfolio through asset enhancement initiatives and selective acquisitions,” Mr. Yong added.