ParkwayLife REIT's 4Q2021 DPU unchanged, capital management remains robust

PLife REIT reports flat DPU growth y-o-y in 4Q2021, but up 2.1% in FY2021, with no refinancing till June 2023.

ParkwayLife REIT’s distribution per unit (DPU) in 4QFY2021 was flat y-o-y at 3.57 cents, and up 2.1% y-o-y for FY2021, at 14.08 cents. Gross revenue rose 0.1% y-o-y in 4Q 2021 to $30.6 million. Revenue from nursing homes acquired in Dec 2020 and 2021 was offset by divestment of P-Life Matsudo on Jan 29, 2021, and the depreciation of the Japanese Yen. While distributable income was flat in 4QFY2021, distributable income in FY2021 rose 2.1% y-o-y to $85.2 million.

PLife REIT’s manager was able to clinch lower financing costs from a loan refinancing intiative, and lower interest costs for Singapore dollar borrowings.

The manger has a JPY net income hedge in place till 3Q2026. The REIT's interest rate exposure is also hedged. As at Dec 31, there is no long-term debt refinancing till June 2023. All-in cost of debt was at 0.52%, interest coverage ratio stood at 2.15 times and aggregate leverage stood at 35.4%.

Historical DPU yield was 2.86% and annualised DPU yield 2.9% based on PLife REIT’s last done price.

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