Parkway Life REIT: 1Q15 results in line, with DPU of 3.21¢ (+14%) and distributable income of $19.5m (+14%), largely buoyed by divestment gains ($2.3m) from seven Japanese properties in Dec ’14, barring which distributable income would have been up just 0.7%.
Gross revenue inched up 0.7% to $24.8m while NPI was up 0.8% to $23.2m, driven primarily by higher rent from the Singapore properties due to increased growth rate of CPI + 1% in year 8 of lease commencing 23 Aug ‘14. The five Japan properties acquired on 23 Mar ’15 contributed just 9 days of rental income which was not significant.
An FX gain of $1.5m was realised, comprising of $0.7m from the delivery of quarterly Japan net income hedge, and the balance FX arising from the capital repatriation for the cash trap in Japan, which unlocked the FX gains in the foreign currency translation reserve for its earlier Japan acquisitions.
Going forward, PLife REIT expects the recent acquisition in Mar ‘15 to start contributing to the group’s results, adding that the long-term prospects of the regional healthcare industry will continue to be robust due to rising demand for better quality private healthcare services driven by the fast-ageing populations.
The REIT’s enlarged portfolio of 47 high-quality healthcare and healthcare-related assets places it in a good position to benefit from the resilient growth of the healthcare industry in Asia-Pacific.
Occupancy rate stood at 100%, leverage ratio at 34.4% (4Q14: 35.2%) and average cost of debt of 1.5% and tenor of 3.6 years.
At the current price, the REIT trades at 1.4x P/B and a forward yield of 5.3%, versus closest peer First REIT’s 1.4x P/B and 6.2% yield.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment