International money out there for aged and healthcare development

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Singapore based, Parkway Life Real Estate Investment Trust (Reit) has posted a 2.6% increase in its distribution per unit to 3.27 cents for the second quarter ended June 30, up from 3.19 cents in the year-ago period.

Gross revenue for the healthcare Reit grew 2.9% to $28.9M in Q2, while net property income was up 2.3% to $26.8M.

This was mainly due to higher rent from the Singapore properties, revenue contribution from the Japan property acquisition in the first quarter of last year, and the appreciation of the Japanese yen.

Distributable income rose 2.6% to $19.8M for the quarter.

Based on the Reit’s closing market price of $3.03 on June 28, the annualised distribution yield for the quarter was 4.32%, up from 4.21% a year ago.

For the half year ended June 30, gross revenue increased 2.5% to $57.3M, and NPI was up 2.3% to $53.3M from the previous corresponding period.

Yong Yean Chau, chief executive officer of the Reit manager, said: “We are well-positioned to benefit from the long-term outlook of the industry, which continues to be driven by ageing population and demand for better quality healthcare and aged care services.”

Parkway Life Reit owns a portfolio of 50 properties with a total size of $1.86B as at June 30, including Mount Elizabeth Hospital, Gleneagles and Parkway East Hospital in Singapore.

In Japan, it has 46 healthcare assets, comprising one pharmaceutical product distributing and manufacturing facility as well as 45 nursing home and care facility properties.

Units of Parkway Life Reit closed flat at $3.05 at close on Monday.