Contributions from Konosu Nursing Home Kyoseien boosted revenue to $27.82m.
Parkway Life REIT's net property income (NPI) rose 3.3% YoY from $25.14m to $25.96m in the first quarter of 2018.
According to its financial statement, distributable income fell 3.4% YoY from $19.84m to $19.17m, whilst distribution per unit (DPU) also shrank by 3.4% YoY from 3.28 cents to 3.17 cents.
Its gross revenue grew 3.2% YoY from $26.95m to $27.82m mainly due to the contribution from Konosu Nursing Home Kyoseien acquired on 14 February 2018. The property was bought for $17.8m, 7.4% below valuation.
"With its strong attributes including strategic location and fresh 20-year master lease, the property is expected to generate a net property yield of 6.7%, thereby delivering immediate growth to the group," it said.
The REIT also cited higher yielding properties acquired from the asset recycling initiative completed in February 2017 and higher rent from the Singapore properties, which was offset by the depreciation of the Japanese Yen.
"The long-term outlook for the industry continues to be driven by favourable patient demographics and demand for better quality healthcare and aged care services," the company said.
ParkwayLife REIT also noted that its assets can benefit from the growth of the Asian healthcare industry. "The entire portfolio is supported by favourable rental lease structures, where at least 95% of its Singapore and Japan portfolios have downside revenue protection and 61% of the total portfolio is pegged to CPI-linked revision formulae, ensuring steady future rental growth whilst protecting revenue stability amid uncertain market conditions," it added.
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