- 3Q25 Parkway Life REIT's DPU was S$0.0391, +2.6% q-o-q/+4% y-o-y, underpinned by acquisitions and a step-up in leases in Singapore, partly offset by an enlarged unit base and higher finance cost.
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Stable operating metrics.
- Parkway Life REIT's 3Q25 revenue and NPI were S$39.0m and S$36.8m, +8.2% and +8.4% y-o-y, respectively. 9M25 revenue and NPI of S$117.3m and S$110.3m, rose 8.2% and 8.1% y-o-y, respectively.
- Growth was led by acquisitions (nursing homes in Japan and France) and marginal appreciation in the JPY.
- Finance cost for 3Q25 rose 17.5% and for 9M25 increased 24.5% due to higher debt to fund the on-going capex and higher JPY base rates.
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Prudent capital management.
- Gearing and cost of debt was higher at 35.8% (2Q25: 35.4%) and 1.57% (2Q25: 1.50%), respectively. Borrowings in S$ was higher due to the drawdown of loans for capex and working capital, and appreciation of the JPY and EUR.
- Parkway Life REIT completed divestment of its Malaysia portfolio, unlocking value (S$124K divestment gain) and optimizing its portfolio. After the close of the quarter., manager announced new board appointments.
Maintain BUY.
- Read more at SGinvestors.io.
