Parkway Life REIT grows FY2025 DPU 2.5% to 15.29 cents on 8% NPI rise and higher Singapore hospital rents
Summary:
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FY2025 gross revenue rose 7.6% to S$156.3 million and net property income increased 8.0% to S$147.5 million, driven by 2024 acquisitions and organic rental growth from Singapore hospitals, partly offset by FX headwinds.
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Distributable income to unitholders climbed 9.1% to S$99.8 million, supporting a 2.5% increase in full-year DPU to 15.29 cents despite an enlarged unit base following the November 2024 equity raise.
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The Singapore hospital portfolio remains the earnings anchor, with minimum rent set to jump to S$99.1 million in FY2026 (24.3% above FY2025 rent) under the master leases, providing clear visibility on organic growth.
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Balance sheet metrics stayed conservative with gearing at 33.4%, all‑in cost of debt around 1.59%, interest cover at 8.6 times and no long-term refinancing needs until October 2026; about 93% of interest exposure is hedged.
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After exiting its Malaysia assets and integrating 60 nursing homes in Japan and 11 in France, PLife REIT now holds 74 properties worth about S$2.57 billion, with WALE of 14.5 years and roughly 90% of rental income enjoying downside protection.