Parkway Life REIT's 3Q FY24 Result Review

Basic Profile & Key Statistics

Key Indicators

Performance Highlight

Gross revenue and NPI declined slightly YoY mainly due to the depreciation of the Japanese Yen. Despite this, the amount available for distribution and DPU have improved YoY due to the foreign exchange gains from the settlement of the forward contracts.

Acquisition

In August, PLIFE acquired a nursing home in Osaka, expanding its property portfolio.

On 22 Oct, PLIFE announced the acquisition of 11 nursing homes in France, funded through a private placement. On a pro forma basis, this acquisition provides a boost to DPU and NAV per unit. Additionally, the gearing ratio is reduced as well.

Related Parties Shareholding

The REIT sponsor and directors of the REIT manager hold a relatively high proportion of shares, while the REIT manager holds a relatively low proportion.

Lease Profile

PLIFE's lease profile is strong, with high committed occupancy and a long weighted average lease expiry (WALE). There are no major lease expirations within the next four years.

Debt Profile

Overall, the debt profile is excellent.

Diversification Profile

PLIFE lacks diversification in terms of geography, tenants, and properties.

Key Financial Metrics

The operating distributable income on capital, operating distributable income margin and operating distribution proportion are high.

DPU Breakdown

• TTM Distribution Breakdown:
• 96.8% from Operation
• 3.2% being Retained

Trends (Up to 10 Years)

• Uptrend: DPU from Operation, NAV per Unit, Property Yield, Adjusted Interest Coverage Ratio
• Slight Uptrend: Operating Distribution Proportion
• Flat: Committed Occupancy, Property Yield
• Slight Downtrend: Operating Distributable Income Margin
• Downtrend: Operating Distributable Income over Manager's Fees, Operating Distributable Income on Capital

Price Range & Relative Valuation Metrics

• Dividend Yield: Below -1SD for 1y; Average for 3y, 5y & 10y
• P/NAV: Above +1SD for 1y; Average for 3y, 5y & 10y

Author's Opinion

PLIFE has demonstrated consistent performance, focusing on generating stable income through its healthcare properties. Regarding debt, only 5.5% and 8.7% are maturing this year and 2025.

For more information, check out:

SREITs Dashboard - Detailed information on individual Singapore REIT

SREITs Data - Overview and details of Singapore REIT

REIT Review - List of previous REIT review posts

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*Disclaimer: The information presented on this blog is for educational and informational purposes only. The materials, including research and opinions, are based solely on my findings and should not be considered professional financial advice or a definitive statement of fact. I cannot guarantee the accuracy, completeness, or reliability of the information provided. I shall not be held liable for any errors, omissions, or losses that may occur as a result of using the information presented on this blog. It should be noted that the information presented on this blog does not constitute a buy, sell, or hold recommendation for any security. It is crucial to conduct your own thorough research and due diligence before making any investment decisions.