Parkway Life REIT - UOB Kay Hian 2024-07-30: 1H24 Results In Line With Expectations

• Parkway Life REIT (SGX:C2PU) reported DPU of 7.54 cents for 1H24 (+3.5% y-o-y), which is in line with our expectations.

Growth from renewed master leases.

• Gross revenue and NPI declined 2.7% and 2.5% y-o-y respectively in 1H24 due to a depreciation of the Japanese yen, which was partially offset by:
  1. - Read this at SGinvestors.io -
  2. higher rents from Singapore hospitals under the new master lease agreements.
• The decline in revenue was offset by forex gains from the settlement of forward contracts due to its hedging of Japanese yen-denominated income from Japan.

Enhancing scale of Japan portfolio.

• Parkway Life REIT acquired two new nursing homes in the Osaka Prefecture, namely HIBISU Shirokita Koendori and HIBISU Suita, for a total consideration of ¥1,766.4m (S$16.4m) on 27 Oct 23. The two freehold properties are well-located in residential areas near central Osaka City. They have a long average lease term of 29 years.
• - Read this at SGinvestors.io -
• Parkway Life REIT’s portfolio of nursing homes in Japan has expanded to 59 properties.

Coping with higher cost of debt.

• Read more at SGinvestors.io.

Jonathan KOH CFA UOB Kay Hian Research | https://research.uobkayhian.com/ 2024-07-30 SGinvestors.io

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