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3 REITs That Announced Acquisitions to Boost Their DPU in 2022
By The Smart Investor  •  September 26, 2022
It’s been a tough year for REITs due to a combination of high inflation and rising interest rates. Investors are naturally worried about higher expenses that will eat into a REIT’s distributable income and cause distribution per unit (DPU) to decline. Well-managed REITs, however, have several methods to mitigate this impact. One is to lock in the bulk of their debt on fixed interest rates to keep their cost of funding low. Another is to engage in yield-accretive acquisitions that help to boost DPU, thus offsetting any negative impact from both inflation and higher financing costs. Here are three REITs that recently announced acquisitions that promise to increase their DPU. Parkway Life REIT (SGX: C2PU) Parkway Life REIT, or PLife REIT, is a healthcare REIT that owns three hospitals in Singapore and 52 nursing homes in Japan, with portfolio assets under management (AUM) of S$2.29 billion as of 31 December 2021. Earlier this month, the REIT announced two separate acquisitions of...
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By The Smart Investor
The Smart Investor is co-founded by David Kuo, Joanna Sng, and Chin Hui Leong. The company was formed in late 2019 from the ashes of the Motley Fool Singapore. The Smart Investor believes that everybody can learn how to invest, smartly. We aim to educate people on how to invest smartly by providing investing education, stock commentary and market coverage for Singapore and around the world.
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