Parkway Life Real Estate Investment Trust (C2PU) Q2 2026 earnings summary

Executive summary

• Distributable income for 1H 2026 rose 14.6% to S$57.2 million, with DPU up 14.6% to 8.77 cents, driven by higher Singapore hospital rents and France portfolio contributions.

• Gross revenue declined 1.6% year-over-year to S$77.1 million, mainly due to JPY depreciation, tenant exit in Japan, and Malaysia portfolio divestment, partially offset by Singapore and France contributions.

• Net property income decreased 2.0% year-over-year to S$72.4 million.

• 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.

Financial highlights

• Earnings per unit (EPU) 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.

• Aggregate leverage at 33.8%, with interest coverage ratio at 8.2 times.

• 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.

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

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