P-life REIT - Latest news was its 1Q15 results, which were in line, with both distributable income and DPU rising 14% y/y to $19.5m and 3.21¢ respectively, largely buoyed by divestment gains ($2.3m) from seven Japanese properties in Dec ’14. Excluding the one-off gains, distributable income would have edged up just 0.7%.
Gross revenue and NPI inched up to $24.8m (+0.7%) and $23.2m (+0.8%), underpinned by stepped-up rents from Singapore properties. The five Japan properties acquired on 23 Mar ’15 contributed just nine days of rental income which was not significant.
The trust booked a FX gain of $1.5m, arising from net income hedge ($0.7m) and capital repatriation from Japan, which unlocked the gains in the foreign currency translation reserve.
Going forward, P-Life expects its recent acquisitions in Mar ‘15 to start contributing to the group’s results, and believes the long-term prospects of the healthcare industry will continue to be healthy given the rising demand for better quality private healthcare services.
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 industry in Asia-Pacific.
Occupancy rate stood at 100%, reflecting good demand. Aggregate leverage dipped to 34.4% (4Q14: 35.2%) with low average cost of debt of 1.5% and comfortable tenor of 3.6 years.
At the current price, the hospitality 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.
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