Parkway Life Real Estate Investment Trust (PLife REIT) saw its distribution per unit (DPU) for Q1 increase 9.7 percent to 2.07 cents, from 1.89 cents in the last quarter.
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This translates to an annualized DPU of 8.28 cents and an annualized distribution yield of 6.09 percent in the first quarter based on the share price of $1.36 ended on 31 March 2010.
During the first three months of the year, gross revenue increased 14.1 percent year-on-year to $18.65 million on the back of more revenue contribution of $1.8 million from eight nursing homes purchased in Japan in Q4 2009, and higher rent from existing properties.
Property expenses in Q1 were about $1.4 million or 27 percent higher, as a result of the newly purchased nursing homes.
The group owns 18 healthcare assets in Japan and three hospitals in Singapore.
Distributable income was 9.7 percent higher at $12.5 million. While earnings per unit were 2.01 cents for Q1 compared with 1.76 cents last year.
In March, PLife REIT issued a $50-million three-year floating rate note (FRN), which is under the multi-currency medium-term note programme established two years ago. Part of the proceeds was channelled towards paying $34 million in bank borrowings due in H2 of 2010. It lengthens the weighted average term of maturity for all of PLife REIT’s debts into 2.48 years as at March 31.
The remaining proceeds raised from the FRN will be used for funding purposes and general working capital.
“Riding on the economic recovery and increasing demand for quality healthcare assets, PLife REIT will continue to leverage on our strong fundamentals to propel acquisitive growth, by actively seeking assets that enhance the overall stability and yield-generating ability of our portfolio,” said Yong Yean Chau, CEO of Parkway Trust Management Limited, which manages PLife REIT.