Parkway Life REIT's 1H FY24 Result Review

$ParkwayLife Reit(C2PU.SI)$

Basic Profile & Key Statistics

Key Indicators

Performance Highlight

Gross revenue and NPI declined slightly YoY, primarily due to the depreciation of the Japanese Yen. However, the amount available for distribution and DPU have improved YoY due to higher foreign exchange gains from the Japanese Yen forward contracts settlement.

Acquisition

On 30 July, PLIFE announced the acquisition of a nursing home in Osaka, funded by JPY debts. This acquisition is expected to be completed in Q3.

Related Parties Shareholding

The REIT sponsor and directors of the REIT manager hold a relatively high proportion of shares. However, 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

Overall, the debt profile is excellent.

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 100% operating distribution proportion.

DPU Breakdown

  • TTM Distribution Breakdown:96.8% from Operation3.2% being Retained

Trends (Up to 10 Years)

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

  • Slight Uptrend: Operating Distribution Proportion

  • Flat: Committed Occupancy, Property Yield

  • Slight Downtrend: Operating Distributable Income Margin

  • Downtrend: Operating Distributable Income over Manager's Fees, Operating Distributable Income on Capital, 

Price Range & Relative Valuation Metrics

  • Dividend Yield - Average for 1y & 10y; Above +1SD for 3y & 5y

  • P/NAV - Average for 1y & 10y; Below -1SD for 3y & 5y

Author's Opinion

Performance remains similar to that of the previous half-year. Regarding debt, only 3% requires refinancing in 2024 and 9% maturing in 2025.

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  • TomCap
    ·08-12
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    Diversify for growth! [Observation]
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