Parkway Life REIT’s net property income up 3.6% to S$20.1m

The company’s registered gross revenue also increased 4.1% to S$22 million.

In a release, Parkway Trust Management Limited, as manager of Parkway Life Real Estate Investment Trust has announced a good set of results for the third quarter and nine months ended 30 September 2011.

PLife REIT registered gross revenue of S$22.0 million for 3Q 2011, a 4.1% year-on-year increase from the previous corresponding period (“3Q 2010”). This was primarily due to full quarter revenue contribution from the Japan nursing home properties acquired in July 2010 and January 2011. Revenue was also driven by higher rent from the Singapore properties due to a rental growth rate of 5.3% under the CPI + 1% rent revision formula for Year 5 of the lease term commencing 23 August 2011. For the year to-date (“YTD Sep 2011”), gross revenue increased 10.9% from the same period last year (“YTD Sep 2010”) to S$64.9 million.

In tandem with portfolio growth, property expenses for 3Q 2011 and YTD Sep 2011 were S$1.9 million and S$5.4 million respectively, increasing S$0.2 million and S$0.8 million year-on-year. As a result, net property income rose 3.6% to S$20.1 million for 3Q 2011 and 10.2% to S$59.5 million for YTD Sep 2011, year-on-year.

As a result of the yield-accretive acquisitions, higher rent from existing properties and savings from lower financing costs, distributable income for 3Q 2011 and YTD Sep 2011 rose 6.8% and 11.4% respectively to S$14.5 million and S$43.1 million. Distributable income per Unit (“DPU”) for 3Q 2011 rose from 2.25 cents in the same period last year to 2.40 cents.

Mr Yong Yean Chau, Chief Executive Officer of the Manager said, “We are pleased with our 3Q 2011 performance, and remain focused on steady growth and prudent financial management for the rest of the year. Our strategies have proven to be robust and viable, helping us in maintaining a strong financial position with continual growth in our revenue amid market uncertainty.”