Parkway Life REIT’s net property income up 7% to $93.8m in FY14

On back of its Japanese acquisition spree.

Parkway Life REIT reported that its net property income increased 7% year-on-year to $93.8m in FY14, largely from the acquisition of Japanese properties as well as higher rents at its Singapore properties.

According to CIMB, the group’s results were further improved by the divestment of seven Japanese nursing homes, which brought about a pre-tax disposal gain of $13.7m, as well as a $45m revaluation gain on back of on higher valuations for its Singapore hospitals.

“4Q was a busy quarter for the management, having acquired two Japanese nursing homes for S$58m and divested seven Japanese nursing homes for S$88m as part of its asset recycling strategy. Moving forward, we continue to believe that there are likely to be more acquisitions, with PREIT’s 35.2% gearing and S$146m cash,” stated CIMB.