Parkway Life Real Estate Investment Trust (C2PU) Q2 2025 earnings summary

Executive summary

• Gross revenue for 1H 2025 rose 8.1% year-over-year to S$78.3 million, driven by new acquisitions in Japan and France, partially offset by JPY depreciation and lower rent from a defaulting operator.

• Distributable income increased 9.5% year-over-year to S$49.9 million, with DPU up 1.5% to 7.65 cents, reflecting an enlarged unit base.

• Portfolio expanded to 75 properties across Singapore, Japan, France, and Malaysia, valued at S$2.46 billion as of 30 June 2025.

• Singapore remains the core market, contributing 65.9% of net property income, with long-term master leases ensuring income stability.

• Cash and cash equivalents increased to S$49.0 million from S$29.5 million at end-2024.

Financial highlights

• Net property income for 1H 2025 was S$73.8 million, up 8.0% year-over-year.

• Total return after tax before distribution was S$40.6 million, down 21.7% year-over-year due to fair value losses.

• Net asset value per unit increased to S$2.44 as of 30 June 2025.

• Aggregate leverage stood at 35.4%, with interest coverage ratio at 9.1x.

• Earnings per unit fell to 6.22 cents from 8.57 cents year-over-year.

Outlook and guidance

• No long-term debt refinancing needs until September 2026; 97% of interest rate exposure is hedged.

• Income FX risk is mitigated with JPY and EUR net income hedges in place until 1Q 2029 and 1Q 2030, respectively.

• 68% of rental income is CPI-linked, providing inflation protection.

• Tax exemption approval for foreign-sourced income from France is expected to save S$1.26 million annually.

• Management expects continued stable returns, supported by demographic trends and healthcare demand.