Parkway Life Real Estate Investment Trust (C2PU) Q1 2025 earnings summary

Executive summary

• Gross revenue for 1Q 2025 rose 7.3% year-over-year to S$39.0 million, driven by new nursing home acquisitions in Japan and France, partially offset by Japanese Yen depreciation.

• Distributable income increased 9.1% year-over-year to S$25.0 million, with DPU up 1.3% to 3.84 cents, reflecting an enlarged unit base and step-up lease arrangements in Singapore.

• Portfolio expanded to 75 properties across Singapore, Japan, France, and Malaysia, with a total appraised value of S$2.46 billion as of 31 March 2025.

• Divestment of the Malaysia portfolio completed at a 4.6% premium to independent valuations, generating a pre-tax gain of S$0.10 million.

Financial highlights

• Net property income for 1Q 2025 was S$36.8 million, up 7.5% year-over-year.

• Amount available for distribution increased 9.1% year-over-year to S$25.0 million.

• DPU for 1Q 2025 was 3.84 cents, up 1.3% year-over-year; to be distributed as part of 1H 2025.

• NAV per unit stood at S$2.42, with unit price at S$4.15, representing a 71.5% premium to NAV.

• Total return since IPO reached 384%, with DPU growing 136.1% since listing.

Outlook and guidance

• No long-term debt refinancing required until September 2026; 90% of interest rate exposure hedged.

• FX risks for Japan and France portfolios are largely hedged through natural and synthetic hedges, with income hedges in place until 1Q 2029 (JPY) and 1Q 2030 (EUR).

• Growth strategy focuses on targeted investments, proactive asset management, asset recycling, and dynamic capital management to enhance value and deliver stable distributions.