Parkway Life REIT's 1Q FY24 Result Review
Basic Profile & Key Statistics
Key Indicators
Performance Highlight
Gross revenue and NPI declined slightly YoY mainly due to the depreciation of the Japanese Yen. On the other hand, the amount available for distribution and DPU have improved YoY probably due to the foreign exchange gain arising from hedging.
Related Parties Shareholding
The REIT sponsor and directors of the REIT manager hold a relatively high proportion of shares, while the REIT manager holds a relatively low proportion.
Lease Profile
The committed occupancy is high and WALE is long with no major lease expiry within the next 4 years.
Debt Profile
The debt profile is excellent; PLife has a high adjusted interest coverage ratio, lost cost of debt, 100% unsecured debt, long WADM and a well-spread debt maturity.
Diversification Profile
PLife lacks diversification in terms of geography, tenants, and properties.
Key Financial Metrics
Key financial metrics are favorable, underpinned by high property yield, high operating distributable income on capital, high operating distributable income margin and high operating distribution. proportion.
DPU Breakdown
TTM Distributable Income Breakdown:100% from Operation
TTM DPU = 96.8% of Distributable Income
Trends
Uptrend: DPU from Operation, NAV per Unit, Property Yield
Flat: Committed Occupancy
Downtrend: Adjusted Interest Coverage Ratio, Operating Distributable Income on Capital, Operating Distributable Income Margin
Relative Valuation
Dividend Yield - Average for 1y & 5y; Above +1SD for 3y
P/NAV - Average for 1y; Below -1SD for 3y & 5y
Author's Opinion
Performance remains similar as compared to the previous quarter. Regarding debt, only 2% requires refinancing in 2024.
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