Latest news with #PLifeReit
Business Times
18-05-2025
- Business
- Business Times
Healthcare S-Reits see encouraging institutional interest so far this year
HEALTHCARE S-Reits have been the top-performing Reit sub-sector this year, offering an average total return of 6.2 per cent against a 1.1 per cent decline in the iEdge S-Reit Index. The sub-sector also outperformed other Reit sub-sectors over the one-year and three-year periods, clocking average returns of 16.8 and 6.2 per cent, respectively. The two healthcare S-Reits listed in Singapore have reported net institutional inflows amounting to S$17.6 million in the year to date. In contrast, the S-Reit sector as a whole suffered net institutional outflows totalling S$527 million over the same period. Here is a look at the two healthcare S-Reits' business updates for the first quarter of 2025. ParkwayLife Reit ParkwayLife Reit (PLife Reit) is one of the largest listed healthcare Reits in Asia. Its portfolio value stands at about S$2.46 billion, made up of healthcare properties across Singapore, Japan and France. In the first quarter of 2025, PLife Reit posted increases in both gross revenue and net property income (NPI). Gross revenue rose by 7.3 per cent year on year to S$39 million in Q1 2025; NPI went up 7.5 per cent over the same period, to S$36.8 million. The strong performance was driven by contributions from a nursing home acquired in Japan last August, and 11 other homes acquired in France in December 2024. The gains were, however, partially offset by the depreciation of the Japanese yen. Step-up lease agreements in Singapore properties also contributed to the higher distributable income in Q1 2025. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up The Reit's distributable income was S$25 million, up 9.1 per cent year on year. Distribution per unit (DPU) for the period is 1.3 per cent higher at S$0.0384 for the period, and will be distributed in H1 2025. As part of its portfolio optimisation strategy, the Reit also announced that it was divesting its Malaysia portfolio, which accounts for 0.2 per cent of its gross revenue, at S$6.09 million. With this move, the Reit marks its exit from the country. CGSI Research's Lock Mun Yee notes that PLife Reit's income profile is underpinned by a robust rental structure, with built-in rent escalation features and its Singapore portfolio contributing to 65.2 and 66.2 per cent of its total Q1 2025 revenue and NPI, respectively. She also highlights that the Reit has a strong balance sheet, with a gearing ratio of 36.1 per cent, and that 90 per cent of its interest-rate exposure is hedged into fixed rates. Bloomberg pegs PLife Reit's 12-month consensus estimated target price at S$4.70. First Reit For the first quarter of 2025 period, First Reit posted a 2.8 per cent year-on-year decline in both rental and other income, and net property and other income to S$25.4 million and S$24.6 million, respectively. The decline was attributed to the depreciation of the Japanese yen and Indonesian rupiah against the Singdollar. As a result, distributable amount declined by 2.2 per cent year on year, and DPU dipped to S$0.0058 for the period. In local currency terms, Q1 2025 rental and other income for the Reit's Indonesia portfolio rose by 5.5 per cent year on year, while that of Japan remained unchanged. As at Mar 31, 2025, First Reit's gearing rose slightly to 40.7 per cent, and has 56.7 per cent of the debt portfolio either on fixed rates or hedged. Lower interest rates led to a drop in cost of debt from 5 per cent in Q1 2024 to 4.7 per cent in Q1 2025, and the Reit has no refinancing requirements until May 2026. Turning to its strategic review, First Reit says a marketing agent has been appointed to run a competitive and robust price-discovery process which entailed reaching out to more than 60 parties to solicit interest for the Indonesia portfolio. First Reit has also approached multiple parties to explore options relating to the business as part of assessing opportunities. Phillip Securities Research's Darren Chan notes that First Reit is trading at an attractive FY 2025e DPU yield of 9.2 per cent, and that organic growth will come from more Indonesian hospitals achieving performance-based rent. Bloomberg says First Reit has a 12-month consensus estimated target price of S$0.30. The writer is a research analyst at SGX. For more research and information on Singapore's Reit sector, visit for the S-Reits & Property Trusts Chartbook.
Business Times
18-05-2025
- Business
- Business Times
Healthcare S-Reits outperforming broader S-Reit market and sub-segments so far this year
HEALTHCARE S-Reits have been the top-performing Reit sub-sector this year, offering an average total return of 6.2 per cent against a 1.1 per cent decline in the iEdge S-Reit Index. The sub-sector also outperformed other Reit sub-sectors over the one-year and three-year periods, clocking average returns of 16.8 and 6.2 per cent, respectively. The two healthcare S-Reits listed in Singapore have reported net institutional inflows amounting to S$17.6 million in the year to date. In contrast, the S-Reit sector as a whole suffered net institutional outflows totalling S$527 million over the same period. Here is a look at the two healthcare S-Reits' business updates for the first quarter of 2025. ParkwayLife Reit ParkwayLife Reit (PLife Reit) is one of the largest listed healthcare Reits in Asia. Its portfolio value stands at about S$2.46 billion, made up of healthcare properties across Singapore, Japan and France. In the first quarter of 2025, PLife Reit posted increases in both gross revenue and net property income (NPI). Gross revenue rose by 7.3 per cent year on year to S$39 million in Q1 2025; NPI went up 7.5 per cent over the same period, to S$36.8 million. The strong performance was driven by contributions from a nursing home acquired in Japan last August, and 11 other homes acquired in France in December 2024. The gains were, however, partially offset by the depreciation of the Japanese yen. Step-up lease agreements in Singapore properties also contributed to the higher distributable income in Q1 2025. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up The Reit's distributable income was S$25 million, up 9.1 per cent year on year. Distribution per unit (DPU) for the period is 1.3 per cent higher at S$0.0384 for the period, and will be distributed in H1 2025. As part of its portfolio optimisation strategy, the Reit also announced that it was divesting its Malaysia portfolio, which accounts for 0.2 per cent of its gross revenue, at S$6.09 million. With this move, the Reit marks its exit from the country. CGSI Research's Lock Mun Yee notes that PLife Reit's income profile is underpinned by a robust rental structure, with built-in rent escalation features and its Singapore portfolio contributing to 65.2 and 66.2 per cent of its total Q1 2025 revenue and NPI, respectively. She also highlights that the Reit has a strong balance sheet, with a gearing ratio of 36.1 per cent, and that 90 per cent of its interest-rate exposure is hedged into fixed rates. Bloomberg pegs PLife Reit's 12-month consensus estimated target price at S$4.70. First Reit For the first quarter of 2025 period, First Reit posted a 2.8 per cent year-on-year decline in both rental and other income, and net property and other income to S$25.4 million and S$24.6 million, respectively. The decline was attributed to the depreciation of the Japanese yen and Indonesian rupiah against the Singdollar. As a result, distributable amount declined by 2.2 per cent year on year, and DPU dipped to S$0.0058 for the period. In local currency terms, Q1 2025 rental and other income for the Reit's Indonesia portfolio rose by 5.5 per cent year on year, while that of Japan remained unchanged. As at Mar 31, 2025, First Reit's gearing rose slightly to 40.7 per cent, and has 56.7 per cent of the debt portfolio either on fixed rates or hedged. Lower interest rates led to a drop in cost of debt from 5 per cent in Q1 2024 to 4.7 per cent in Q1 2025, and the Reit has no refinancing requirements until May 2026. Turning to its strategic review, First Reit says a marketing agent has been appointed to run a competitive and robust price-discovery process which entailed reaching out to more than 60 parties to solicit interest for the Indonesia portfolio. First Reit has also approached multiple parties to explore options relating to the business as part of assessing opportunities. Phillip Securities Research's Darren Chan notes that First Reit is trading at an attractive FY 2025e DPU yield of 9.2 per cent, and that organic growth will come from more Indonesian hospitals achieving performance-based rent. Bloomberg says First Reit has a 12-month consensus estimated target price of S$0.30. The writer is a research analyst at SGX. For more research and information on Singapore's Reit sector, visit for the S-Reits & Property Trusts Chartbook.
Business Times
22-04-2025
- Business
- Business Times
Stocks to watch: FCT, Parkway Life Reit, KIT, ESR Reit, Nanofilm, Paragon Reit
[SINGAPORE] The following companies saw new developments that may affect trading of its securities on Tuesday (Apr 22). Frasers Centrepoint Trust (FCT): The trust's manager on Monday said that its preferential offering was 24.8 per cent oversubscribed. The manager received applications for 122,584,803 preferential offering units, against the 98,185,673 units offered. The offering was launched earlier this month at S$2.05 per unit. The issue price represented a 7.4 per cent discount to the volume-weighted average price of S$2.2136. The offering was made on the basis of 54 units for every 1,000 existing units held as at 5pm on Apr 3, to raise gross proceeds of about S$201.3 million. Units of FCT traded flat on Monday at S$2.21. Parkway Life Real Estate Investment Trust (PLife Reit): The healthcare real estate investment trust's manager on Tuesday posted a higher first quarter distribution per unit of S$0.0384, up 1.3 per cent from S$0.0379 in the previous corresponding period. Gross revenue for the quarter climbed 7.3 per cent to around S$39 million from S$36.3 million previously. Higher gross revenue arose primarily from the contributions of a nursing home acquired in Japan and 11 nursing homes acquired in France in H2 FY2024, though this was partly offset by the depreciation of the Japanese yen. Units of PLife Reit closed 0.5 per cent or S$0.02 higher at S$4.20 on Monday. PLife Reit's manager also announced on Monday that the healthcare Reit is selling freehold strata units and lots of a Malaysian property for RM20.1 million (S$6.1 million). The deal will mark the Reit's exit from Malaysia, where the properties were its sole investment in the market and contributed to only 0.2 per cent of the trust's asset value, the manager said. The strata units and lots are located in MOB Specialist Clinics, within the compound of Gleneagles Hospital Kuala Lumpur. The hospital is owned and operated by integrated healthcare provider IHH Healthcare , a substantial unitholder of PLife Reit. Units of PLife Reit closed 0.5 per cent or S$0.02 higher at S$4.20 on Monday. Shares of IHH Healthcare closed 1.5 per cent or S$0.03 higher at S$2.04. Keppel Infrastructure Trust (KIT): The trustee-manager on Tuesday reported an increase in distributable income of 27.7 per cent to S$65 million, from S$50.9 million in the previous corresponding period. This is in light of contributions from new acquisitions and capital recycling exercises, notably the proposed investment in subsea cable solutions provider Global Marine Group for about US$90.6 million which is set to establish KIT's presence in digital infrastructure. Units of KIT closed flat on Monday at S$0.415. : The manager on Tuesday posted higher distributable income at S$44.2 million, up 7 per cent from S$41.3 million in the previous corresponding period. This was attributed to the acquisitions of ESR Yatomi Kisosaki Distribution Centre in Japan's Mie prefecture, and 20 Tuas South Avenue 14 in Singapore in November 2024. Net property income grew 31.3 per cent to S$82.5 million from S$62.9 million and gross revenue climbed 24.2 per cent to S$110.5 million from S$89 million. Units of ESR Reit closed Monday 2.4 per cent or S$0.005 higher at S$0.21. Nanofilm Technologies: The group said a strong performance by its consumer business segments helped to push its revenue up 12 per cent year on year to S$44 million in the first quarter ended Mar 31. While the group's gross profit margin exceeded 27 per cent, it was down from 33 per cent in Q1 of 2024. The dip was the result of lower contributions from Nanofilm's industrial equipment unit due to the timing of equipment deliveries, the nanotechnology solutions provider said on Monday. Nanofilm's shares closed flat on Monday at S$0.505 before the announcement. Trading halt: Paragon Reit called for a trading halt on Tuesday morning, pending the release of announcements relating to the extraordinary general meeting and scheme meeting to be held on Tuesday at 2.30 and 3.00pm respectively. The counter closed Monday 0.5 per cent or S$0.005 lower at S$0.97.
Business Times
21-04-2025
- Business
- Business Times
Parkway Life Reit to exit Malaysia
[SINGAPORE] The manager of Parkway Life Real Estate Investment Trust (PLife Reit) announced on Monday (Apr 21) that the healthcare Reit is selling freehold strata units and lots in a Malaysian property for RM20.1 million (S$6.1 million). The deal will mark the Reit's exit from Malaysia, as the units and lots were its sole investment in the market and contributed only 0.2 per cent to the trust's asset value, said the manager in a bourse filing. The strata units and lots are located in MOB Specialist Clinics, within the compound of Gleneagles Hospital Kuala Lumpur. The hospital is owned and operated by integrated healthcare provider IHH Healthcare , a substantial unitholder of PLife Reit. In addition, the purchaser, Pantai Medical Centre, is a wholly owned unit of IHH Healthcare. The units and lots have a floor area of 2,444 square metres and comprise three ground floor units, three medical consulting suite units on the second and seventh floor, the entire eighth floor and 69 carpark lots. The manager noted that the divestment is in line with the manager's asset recycling strategy and will strengthen PLife Reit's balance sheet. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up It will also 'provide greater financial flexibility for PLife Reit to seize other attractive investment opportunities offering better value', said the manager. The sale consideration is around 25.6 per cent higher than the original purchase price of RM16 million for the units and lots in 2012. It is also 4.6 per cent above the average of the units and lots' latest valuations of RM19.2 million as at Dec 31, 2024. Independent valuations were carried out by Nawawi Tie Leung Property Consultants and Knight Frank Malaysia. The manager added that a proportion of the sale consideration has been paid by Pantai Medical Centre in cash on Monday, with the remaining to be paid pursuant to terms of the sale and purcahse agreement. Units of PLife Reit ended up 0.5 per cent or S$0.02 at S$4.20 on Monday, before the announcement. Shares of IHH Healthcare closed 1.5 per cent or S$0.03 higher at S$2.04.
