Parkway Life Real Estate Investment Trust (C2PU) H2 2024 earnings summary

Executive summary

• FY2024 distributable income rose 2.3% year-over-year to S$91.4 million, with DPU up 1.0% to 14.92 cents; excluding equity fund raising, DPU would have increased 2.3% to 15.11 cents.

• Achieved 17 consecutive years of recurring DPU growth.

• Strategic entry into Europe with acquisition of 11 nursing homes in France for €111.2m (S$157.3m), fully funded by an oversubscribed S$180m equity fund raising.

• Portfolio expanded to 75 properties across Singapore, Japan, Malaysia, and France, valued at S$2.46 billion as of 31 December 2024.

• Portfolio resilience supported by disciplined capital management and effective risk mitigation strategies.

Financial highlights

• FY2024 gross revenue: S$145.3m (-1.5% year-over-year); net property income: S$136.6m (-1.8%).

• Distributable income to unitholders rose 2.3% year-over-year to S$91.4 million.

• 2H2024 DPU: 7.38 cents (-1.3% year-over-year), impacted by enlarged unit base from equity fund raising.

• Portfolio valuation gain of S$97.2 million as of 31 December 2024, mainly from projected rent increases in Singapore hospitals.

• Net change in fair value of investment properties: S$18.0m loss after adjustments.

Outlook and guidance

• No long-term debt refinancing needs until September 2026; ample debt headroom before regulatory gearing limits.

• FX and interest rate risks actively hedged; 87% of interest rate exposure hedged as of year-end.

• Focus on strengthening existing markets, building a third key market (Europe), and fostering strategic partnerships for mid- to long-term growth.

• Well-positioned for sustainable growth and long-term value creation.