Parkway Life REIT

Parkway Life REIT: Annouced 2Q12 results which was in-line. NPI at $21.4m, +9.3% yoy and +2.8% qoq, while DPU at 2.48c, +4.9% yoy and -3.2% QOQ. Result brings FY12 annualized DPU yield to 5.36% vs 5.03% yoy. Performance was buoyed by contributions from 3 Japan properties acquired in Mar12, and higher rent from SG properties mainly due to increased growth rate of CPI + 1% (i.e. 5.3%). For 1H12, gross rev increased 7.7% yoy to $46.2m due to rev contribution from properties acquired in 2011/2012, and higher rent from the existing properties. We note that grp’s fundamentals remains strong, with a debt maturity of 2.92 yrs and interest coverage of 8.6x and net gearing stands at an acceptable 36.4% giving ample headroom for additional debt.