Parkway Life REIT's 1Q FY25 Result Review

$ParkwayLife Reit(C2PU.SI)$

Basic Profile & Key Statistics

Key Indicators

Performance Highlight

PLIFE delivered a steady performance in 1Q FY25, supported by contributions from acquisitions made in August and December 2024. Gross revenue, NPI, and amount available for distribution grew year-on-year, supported by:

• Full-quarter contributions from one nursing home in Japan and eleven nursing homes in France

• Step-up lease arrangements for the Singapore hospital properties

However, DPU rose modestly by 1.3% due to an enlarged unitholder base following an equity fundraising exercise.

Divestment

On 21 April 2025, PLife REIT announced the divestment of its Malaysia portfolio for RM20.09 million (S$6.09 million), which is 4.6% above the average of two independent valuations. The sale is expected to yield an estimated gain of S$0.10 million before tax.

Related Parties Shareholding

• REIT Sponsor's Shareholding: Favorable

• REIT Manager's Shareholding: Less Favorable

• Directors of REIT Manager's Shareholding: Favorable

Lease Profile

• Committed Occupancy: Favorable

• Highest Annual Lease Expiry in 4 Years: Favorable

• WALE: Favorable

• Weighted Average Land Lease Expiry: Moderate

Debt Profile

• Adjusted Interest Coverage Ratio: Favorable

• Cost of Debt: Favorable

• Gearing Ratio: Moderate

• Fixed Rate Debt Proportion: Favorable

• Unsecured Debt Proportion: Favorable

• Highest Annual Debt Maturity in 4 Years: Moderate

• WADM: Favorable

Diversification Profile

• Top Geographical Weightage: Less Favorable

• Top Property Weightage: Moderate

• Top 5 Properties' Weightage: Less Favorable

• Top Tenant Weightage: Moderate

• Top 10 Tenants' Weightage: Less Favorable

Key Financial Metrics

• Property Yield: Moderate

• Operating Distributable Income over Manager's Fees: Moderate

• Operating Distributable Income on Capital: Favorable

• Operating Distributable Income Margin: Favorable

• Operating Distribution Proportion: Favorable

DPU Breakdown

• TTM Distribution Breakdown:96.8% from Operation0.1% from Management Fees Paid in Units3.1% being Retained

Trends (Up to 10 Years)

• Uptrend: DPU from Operations, NAV per Unit, Adjusted Interest Coverage Ratio

• Slight Uptrend: Top 5 Properties' Weightage, Operating Distribution Proportion

• Flat: Committed Occupancy, Property Yield

• Slight Downtrend: Top 10 Tenants' Weightage, Operating Distributable Income over Manager's Fees

• Downtrend: Operating Distributable Income on Capital, Operating Distributable Income Margin

Price Range & Relative Valuation Metrics

• Dividend Yield: Below -2SD for 1y; Average for 3y, 5y & 10y

• P/NAV: Above +1SD for 1y; Average for 3y, 5y & 10y

Author's Opinion

Compared to the previous quarter, PLife REIT's performance improved thanks to full-quarter contributions from recent acquisitions and stable earnings from its core Singapore assets. On the debt front, only 2% of total borrowings will mature this year.

For more information, check out REIT-TIREMENT

*Disclaimer: The information presented on this blog is for educational and informational purposes only. The materials, including research and opinions, are based solely on my own findings and should not be considered as professional financial advice or a definitive statement of fact. I cannot guarantee the accuracy, completeness, or reliability of the information provided. I shall not be held liable for any errors, omissions, or losses that may occur as a result of using the information presented on this blog. It should be noted that the information presented on this blog does not constitute a buy, sell, or hold recommendation for any security. It is crucial to conduct your own thorough research and due diligence before making any investment decision.