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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
04-05-2025
- Business
- Business Times
S-Reits rebound 9.5% from Apr 9 lows, tracking volatility in global markets
[singapore] The performance of Singapore-listed real estate investment trusts (S-Reits) in April 2025 was marked by significant movements, reflecting the broader volatility in global markets. The iEdge S-Reit Index declined by 1.9 per cent over the month, slightly outperforming the Straits Times Index, which dropped 2.3 per cent. Furthermore, S-Reits outperformed the FTSE Epra/Nareit Global Reits Index, which saw a more substantial decline of 3 per cent. The performance of the 30 constituents of the iEdge S-Reit Index was mixed in April, with 22 decliners and eight gainers. The three biggest decliners for the month were Manulife US Reit , Mapletree Logistics Trust (MLT) and ESR-Reit . On the other hand, the three strongest performers were Frasers Hospitality Trust (FHT), Frasers Centrepoint Trust (FCT) and CapitaLand Integrated Commercial Trust (CICT). The performance in April was non-linear, with considerable fluctuations in the market. The iEdge S-Reit Index experienced a decline of 10.5 per cent from the end of March to Apr 9, followed by a rebound of 9.5 per cent from Apr 9 to 30. These movements tracked the volatility observed in global markets, as investors weighed tariff developments. All 30 constituents of the iEdge S-Reit Index recorded gains over the three weeks from Apr 9 to 30. The three biggest gainers were Prime US Reit , CapitaLand China Trust and FHT. The top 10 performers in the iEdge S-Reit Index over the three weeks also mostly saw net institutional inflows, with a combined figure of S$23.2 million. Despite the tumultuous month, S-Reits managed to stay in positive territory in the year to date as at Apr 30, with a total return of 0.8 per cent. This was in contrast to the FTSE Epra/Nareit Global Reits Index, which was down by 3 per cent over the same period. A NEWSLETTER FOR YOU Tuesday, 12 pm Property Insights Get an exclusive analysis of real estate and property news in Singapore and beyond. Sign Up Sign Up Around half of the iEdge S-Reit Index constituents delivered positive total returns in the year to date as at Apr 30. The top three gainers for the first four months of 2025 were Parkway Life Reit , CICT and FHT. April also saw notable fund flows in the S-Reits market. Institutional and retail investors were net sellers. Institutional investors net sold S$90.3 million, and retail investors net sold S$54.6 million over the month. The Reits that experienced the largest outflows from institutional investors included MLT, Mapletree Industrial Trust and ESR-Reit. Meanwhile, the Reits that saw the largest outflows from retail investors were CICT, FCT and CapitaLand Ascendas Reit . Conversely, certain Reits managed to attract net buying from both institutional and retail investors. On Apr 29, Stoneweg European Reit (Sert) announced that it successfully obtained unitholders' approval for the proposed stapling to form the Stoneweg European Stapled Trust – comprising Sert and Stoneweg European Business Trust. The proposed stapling is aimed at allowing the trust to maintain a competitive edge by offering enhanced tax efficiency, flexibility for future operations and broader scope for future investments. The trust's strategy, mandate and asset class focus remain unchanged. However, the business trust can undertake development projects, but with no intention to increase development exposure to above 10 per cent on a long-term basis. The trust remains committed to maintaining a 35 to 40 per cent medium-term aggregate leverage target, with a ceiling of 45 per cent. SGX RESEARCH 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.
