Parkway Life REIT's 1H FY24 Result Review
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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