On 2 February 2026, Parkway Life REIT (“PLife”) released their full year result for FY2025. While the long-term trajectory of year-on-year growth was maintained, the quarter-on-quarter DPU performance faced moderate downward pressure. This decline was primarily driven by a disproportionate rise in trust expenses and financing costs, which outpaced organic revenue growth during the period. Management has disclosed that the increase in trust expenses was temporarily inflated by one-off professional fees associated with the structural optimization of the four newly acquired French assets. Whereas finance costs drifted higher due to the full-quarter impact of debt-funded capital expenditures and the Japan acquisitions. Do note that the operating environment remains shadowed by significant macroeconomic shifts in Japan. The Bank of Japan has raised interest rates to historic levels in December 2025. They have also raised growth estimates and signalled a persistent “hawkish” stance. A sustained high-interest-rate environment in Japan could lead to a higher “all-in” cost of debt...