REITs are lauded as an asset class that provides a steady dividend stream for income-seeking investors.
The stability of their rental income, coupled with the need to pay out at least 90% of their earnings as distributions, makes them suitable income instruments that generate a stream of passive income.
What’s more, some REITs can boast steadily increasing distribution per unit (DPU) over the years as they grow their distributable income through acquisitions, positive rental reversions, and asset enhancement initiatives.
One REIT that has consistently grown its core DPU over the years is Parkway Life REIT (SGX: C2PU).
The healthcare REIT currently owns 61 properties in Singapore, Japan and Malaysia with assets under management of S$2.35 billion as of 30 September 2022.
Can Parkway Life REIT continue to post higher DPU in the years ahead? Let’s find out.
An impressive track record...