Parkway Life Reit’s nine-month DPU climbs 13.4% despite revenue decline
Higher hospital rents in Singapore and a lease step-up in France supported distributions, while a weaker yen weighed on revenue.
Parkway Life Real Estate Investment Trust reported distribution per unit of S$0.131 for the nine months ended September 30, 2026, up 13.4 per cent from a year earlier. In its November 3 business update, the healthcare trust said the amount available for distribution reached S$85.5 million, compared with S$75.4 million previously.
The trust attributed the distribution growth to increased rent from Singapore hospitals following an annual review and a lease step-up covering its French nursing homes. Gross revenue nevertheless dropped 1.9 per cent to S$115.1 million, while net property income declined 2.4 per cent to S$108 million.
Its manager said yen depreciation and tenant departures from five Japanese nursing homes were the main reasons for the declines. Higher Singapore hospital contributions partly cushioned the impact. Japan net income is hedged, and the manager expects gains on settled foreign-exchange forward contracts to compensate for the weaker revenue contribution.
Under a revised review formula, minimum annual rent for the Singapore portfolio is set to increase from S$79.7 million in FY2025 to S$99.1 million in FY2026. Additional first-half rent of S$1.7 million, linked to Gleneagles Hospital and Parkway East Hospital outperforming, will be distributed after full-year revenue sharing is finalised.
At September 30, gearing was 34.8 per cent and the all-in cost of debt was 1.72 per cent. Interest coverage stood at 7.9 times, with about 94 per cent of interest-rate exposure hedged.
Separately, the trust agreed on October 13 to buy three nursing homes in Marseille and Velaux for €38.8 million. Existing operator DomusVi will take new 12-year leases. Completion is expected by December 2026, subject to conditions.
