Parkway Life Real Estate Investment Trust (C2PU) Q3 2024 earnings summary

Executive summary

• Gross revenue for YTD 3Q 2024 declined 2.2% to S$108.5 million, mainly due to JPY depreciation, partially offset by new property contributions.

• DPU grew 2.8% year-over-year to 11.30 cents, supported by FX hedges and higher income from Singapore and Japanese assets.

• Portfolio expanded to 64 properties valued at S$2.25 billion, with a strong focus on healthcare assets in Singapore and Japan.

• Acquisition of a new nursing home in Osaka in August 2024 for JPY2,446.2 million (S$20.7 million), at 9.1% below valuation.

Financial highlights

• Net property income for YTD 3Q 2024 was S$102.4 million, down 2.1% year-over-year.

• Foreign exchange gain (net) rose 37.6% to S$7.8 million, offsetting revenue decline.

• Finance costs increased 7.7% due to higher interest rates and new acquisitions.

• NAV per unit stood at S$2.30, with unit price at S$4.20, representing a 82.6% premium to NAV.

• Total return since IPO reached 382%, with total DPU received of S$1.97 per unit.

Outlook and guidance

• No long-term debt refinancing needs until September 2026 after recent refinancing.

• JPY net income hedges in place until 1Q 2029; 87% of interest rate exposure hedged as of 30 September 2024.

• Growth strategy focuses on strengthening existing markets, building a third key market, and fostering strategic partnerships.