Parkway Life Real Estate Investment Trust (C2PU) H1 2026 earnings summary

Executive summary

• Distributable income for 1H 2026 rose 14.6% year-over-year to S$57.2 million, with DPU up 14.6% to 8.77 cents, driven by higher Singapore hospital rents and France portfolio contributions, despite a 1.6% decline in gross revenue due to JPY depreciation and tenant exit in Japan.

• Annualised DPU reached 17.54 cents, outperforming the prior year by 2.24 cents.

• Portfolio remains resilient, underpinned by long-term leases and diversified healthcare assets across Singapore, Japan, and France.

• Step-up lease arrangements and revenue-sharing from Singapore hospitals contributed to higher rental income, offsetting headwinds from Japan.

• Completed a strategic divestment of a Japan nursing home at a premium, supporting ongoing portfolio rejuvenation.

Financial highlights

• Gross revenue for 1H 2026 was S$77.1 million, down 1.6% year-over-year; net property income was S$72.4 million, down 2.0%.

• Earnings per unit increased to 8.12 cents from 6.22 cents year-over-year.

• Net asset value per unit stood at S$2.57 as of 30 June 2026.

• Gain on disposal of a Japan nursing home property amounted to S$0.6 million.

• Cash and cash equivalents increased to S$58.5 million from S$47.8 million at year-end 2025.

Outlook and guidance

• Minimum rent for Singapore hospitals set to increase to S$99.1 million in FY2026, with further upside possible from revenue sharing.

• Portfolio expected to remain resilient due to long-term leases, inflation-linked rental structures, and strong healthcare demand.

• No long-term debt refinancing required until March 2027; 96% of interest rate exposure hedged.

• Additional distributable income from Singapore asset outperformance will be determined and distributed in 2H 2026.

• Manager will continue capital recycling and asset enhancement to support sustainable returns.