ParkwayLife REIT has announced their 2Q2020 financial results on 28th July 2020. Being a Healthcare REIT, it has proven to be resilient despite the COVID-19 pandemic. Another reason for its resiliency is the minimum guaranteed rent for Singapore hospitals that is baked into the REIT which will continue to increase. With Consumer Price Index (“CPI”) growth picking up at 0.17%, 14th Year minimum guaranteed rent is set to increase by 1.17% above total rent payable for 13th Year of Lease Term based on CPI + 1% formula.
Gross revenue increased by 4.9% to S$30.3 million for 2Q2020. This comprised of the contribution from three nursing rehabilitation facilities acquired on 13 December 2019 and higher rent from the Singapore properties. In addition, gross revenue has increased as compared to 2Q2019 due to appreciation of the Japanese Yen.
Net property income increased by 5.3% to S$28.2 million for 2Q2020, which was S$1.4 million higher than 2Q2019.
ParkwayLife REIT has retained the remaining S$850,000