- FY25 Parkway Life REIT's DPU stood at 15.29 cents, +2.5% y-o-y, driven by acquisitions and step-up leases in Singapore, partly offset by a 27.3% y-o-y increase in finance costs.
- - Read this at SGinvestors.io -
- FY26E DPU is expected to be supported by ~25.3% rental uplift from Singapore assets, alongside potential asset enhancement initiatives (AEI) and divestments in Japan.
Stable performance
- Parkway Life REIT's FY25 revenue and NPI were S$156.3m and S$147.5m, rising +7.6% and +8.0% y-o-y, respectively, exceeding our full-year forecasts. Growth was driven by acquisitions of nursing homes in Japan and France, alongside marginal JPY appreciation.
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Cost of debt peaked
- Gearing inched lower to 33.4% (3Q25: 35.8%) as portfolio valuation improved (Singapore: +8.8% y-o-y), while cost of debt edged up to 1.59% (3Q25: 1.57%). Net finance cost for FY25 rose 27.3% y-o-y, with guidance for a flattish trend in FY26E. Singapore asset valuations increased 8.8% y-o-y as rental uplift kicked in.
- Management remains confident this will continue to improve with further AEI and CPI-linked rental increments.
Maintain BUY
- Read more at SGinvestors.io.
