When it comes to Parkway Life REIT (PLife REIT), we’ve seen some interesting movements this year. Although there has been a slight dip in gross revenue and net property income from the previous year, this is mainly due to the weakening Japanese Yen. Nevertheless, they have managed to buffer this downturn by adding new nursing home assets to their portfolio in both Japan in October 2023 and August 2024, and later in France with 11 more facilities acquired in December 2024. Despite these acquisitions bolstering the revenue available for distribution, the distribution per unit (DPU) took a minor hit due to a large pool of additional unitholders following a recent equity fundraising effort.
Jumping into their latest acquisitions, on December 20, 2024, PLife REIT secured 11 freehold nursing homes across six French regions. These were leased to DomusVi, a prominent name in the European nursing home industry, sealed under a 12-year sale and leaseback deal featuring rent escalations tied to an index.
Looking closer at shareholding, related parties display a mixed bag. The REIT sponsor boasts a favorable standing in terms of shareholding. However, the REIT manager lags slightly behind, while the directors of the REIT manager have a favorable position.
As for the lease profile, things appear pretty steady with a favorable committed occupancy rate. It’s worth noting the highest annual lease expiry, highlighting their strategic planning to maintain substantial lease terms. These factors together paint a nuanced picture of PLife REIT’s current financial landscape, underscoring a proactive approach amid currency fluctuations and shareholder changes.
