Parkway Life Real Estate Investment Trust posted a distribution per unit (DPU) in Q2 2017 of $3.32, up 10.3 percent from $3.01 in the same period a year ago, revealed an SGX filing on Tuesday (25 July).
At the same time, its distributable income rose by 10.3 percent to $20.08 million compared to $18.21 million in the second quarter of 2016.
If contributions from recurring operations are only considered, distributable income only edged up by 2.9 percent to $18.73 million. The main reason for the larger growth is the divestment gains of $5.39 million from the asset recycling exercise completed in February 2017. This is being distributed equally over the four quarters ending 31 December 2017, which works out to $1.38 million per quarter.
However, Parkway Life REIT’s gross revenue and net property income for Q2 2017 only increased marginally year-on-year by 1.1 percent and 1.4 percent to $27.70 million and $25.88 million respectively.
“The gain in net property income is largely driven by the rent contribution from properties acquired in Q1 2017 and the upward minimum guaranteed rent revision of the Singapore hospital properties,” it said in a statement.
For the first half of the year, its DPU rose by 9.9 percent to $13.2 from $12 in H1 2016, while distributable income grew at the same rate to $39.92 million from $36.31 million previously. Excluding the divestment gains, the latter only increased by 2.5 percent to $37.22 million.
In addition, Parkway Life REIT’s net property income and gross revenue in H1 2017 each recorded a marginal growth of 0.7 percent to $51.02 million and $54.64 million respectively.
Furthermore, given that the annual rental increments of its assets rising in tandem with the prevailing inflation rate, the minimum guaranteed rents of its Singapore properties are set to rise by 1.27 percent from 23 August 2017.