Parkway Life Real Estate Investment Trust (C2PU) H2 2025 earnings summary

Executive summary

• Gross revenue for FY2025 rose 7.6% year-over-year to S$156.3 million, driven by acquisitions in Japan and France, partially offset by JPY depreciation.

• Net property income increased 8.0% year-over-year to S$147.5 million, with higher contributions from new assets and step-up leases in Singapore.

• Distributable income grew 9.1% year-over-year to S$99.8 million, while DPU rose 2.5% to 15.29 cents due to an enlarged unit base and recurring growth.

• Portfolio expanded to 74 properties across Singapore, Japan, and France, valued at S$2.57 billion, with a weighted average lease expiry of 14.5 years and 90% of rental income downside-protected.

Financial highlights

• 2H 2025 gross revenue was S$78.0 million, up 7.1% year-over-year; net property income for 2H 2025 was S$73.6 million, up 7.9%.

• FY2025 DPU was 15.29 cents, up 2.5% year-over-year; 2H 2025 DPU was 7.64 cents, up 3.5%.

• Valuation gain of S$135.7 million over the previous year, mainly from projected rent increases in Singapore hospitals.

• Net asset value per unit increased to S$2.56 from S$2.41 a year ago.

Outlook and guidance

• Minimum guaranteed rent for Singapore hospitals set to increase 24.3% to S$99.1 million in FY2026, underpinned by CPI-linked escalation.

• Organic rental growth expected from annual rent review formula and step-up lease agreements.

• No long-term debt refinancing needs until October 2026.

• Positioned for disciplined, yield-accretive growth with a resilient balance sheet and long-term leases.