Parkway Life REIT's 1H FY25 Result Review

$ParkwayLife Reit(C2PU.SI)$

Basic Profile & Key Statistics

Key Indicators

Performance Highlight

Gross revenue, NPI and amount available for distribution have improved YoY mainly due to contributions from acquisitions between Aug 2024 to December 2024 and step-up lease arrangement for Singapore properties. DPU on the other hand, improved slightly due to an enlarged unitholder base following an equity fundraising exercise.

Divestment

On 21 April 2025, PLife REIT announced the divestment of its Malaysia portfolio for RM20.09 million (S$6.09 million), which is 4.6% above the average of two independent valuations. The sale is expected to yield an estimated gain of S$0.10 million before tax.

Related Parties Shareholding

• REIT Sponsor's Shareholding: Favorable

• REIT Manager's Shareholding: Less Favorable

• Directors of REIT Manager's Shareholding: Moderate

Lease Profile

• Committed Occupancy: Favorable

• Highest Annual Lease Expiry in 4 Years: Favorable

• WALE: Favorable

• Weighted Average Land Lease Expiry: Moderate

Debt Profile

• Adjusted Interest Coverage Ratio: Favorable

• Cost of Debt: Favorable

• Gearing Ratio: Favorable

• Fixed Rate Debt Proportion: Favorable

• Unsecured Debt Proportion: Favorable

• Highest Annual Debt Maturity in 4 Years: Moderate

• WADM: Moderate

Diversification Profile

• Top Geographical Weightage: Less Favorable

• Top Property Weightage: Moderate

• Top 5 Properties' Weightage: Less Favorable

• Top Tenant Weightage: Moderate

• Top 10 Tenants' Weightage: Less Favorable

Key Financial Metrics

• Property Yield: Moderate

• Manager's Fees over Operating Distributable Income: Moderate

• Operating Distributable Income on Capital: Favorable

• Operating Distributable Income Margin: Favorable

• Operating Distribution Proportion: Favorable

DPU Breakdown

• TTM Distribution Breakdown:96.3% from Operation0.6% from Management Fees Paid in Units3.1% being Retained

Trends (Up to 10 Years)

• Uptrend: DPU from Operations, NAV per Unit, Adjusted Interest Coverage Ratio

• Slight Uptrend: Top 5 Properties' Weightage, Operating Distribution Proportion

• Flat: Committed Occupancy, Property Yield

• Slight Downtrend: Top 10 Tenants' Weightage

• Downtrend: Operating Distributable Income over Manager's Fees, Operating Distributable Income on Capital, Operating Distributable Income Margin

Price Range & Relative Valuation Metrics

• Dividend Yield: Average for 1y, 3y, 5y & 10y

• P/NAV: Average for 1y, 3y, 5y & 10y

Author's Opinion

Compared to the previous half year, PLife REIT's performance improved mainly due to the full half-year contribution from the acquisition of nursing homes in France and step-up lease arrangement for Singapore properties. On the debt front, only 3% of total borrowings will mature by this year end.

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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 own findings and should not be considered as 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 decision.