Parkway Life REIT's 2H FY23 Result Review

Basic Profile & Key Statistics

Key Indicators

Performance Highlight

Gross revenue, NPI, amount available for distribution and DPU increased significantly YoY mainly due to contributions from nursing homes acquired in Sep 2022 and October 2023.

Acquisition

PLife acquired 2 Japan nursing homes on 27 October.

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

The committed occupancy is high and WALE is long with no major lease expiry within the next 4 years.

Debt Profile

The debt profile is excellent; PLife has a high adjusted interest coverage ratio, lost cost of debt, 100% unsecured debt and well-spread debt maturity.

Diversification Profile

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

Key Financial Metrics

Key financial metrics are favorable, underpinned by high property yield, high operating distributable income on capital, high operating distributable income margin and high operating distribution. proportion.

DPU Breakdown

• TTM Distributable Income Breakdown:
• 100% from Operation
• TTM DPU = 96.8% of Distributable Income

Trends

• Uptrend: DPU from Operation, NAV per Unit, Property Yield
• Slight Uptrend: Adjusted Interest Coverage Ratio
• Flat: Committed Occupancy
• Downtrend: Operating Distributable Income on Capital, Operating Distributable Income Margin

Relative Valuation

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

Author's Opinion

Gross revenue and NPI have experienced a slight decline compared to the previous half-year. However, DPU has improved, possibly due to lower trust expenses and a high foreign exchange gain. Regarding debt, only 6.5% requires refinancing in 2024.

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.