Parkway Life Real Estate Investment Trust (C2PU) Q1 2026 earnings summary

Executive summary

• Gross revenue for 1Q 2026 declined by 2.1% year-over-year to S$38.2 million, mainly due to JPY depreciation and lower rental income from Japan after a tenant exit, partially offset by Singapore contributions.

• Distributable income and DPU grew 15.1% year-over-year, driven by higher Singapore hospital rents after the end of rent rebates and the implementation of a new rent review formula.

• Strong balance sheet with no long-term debt refinancing needs until March 2027 and a healthy gearing of 34.2%.

• Project Renaissance, a S$350 million renewal capex for Mount Elizabeth Hospital, was completed, enhancing resilience and sustainability.

Financial highlights

• Net property income for 1Q 2026 was S$35.8 million, down 2.7% year-over-year.

• Amount available for distribution increased 15.1% year-over-year to S$28.8 million.

• DPU for 1Q 2026 is 4.42 cents, up from 3.84 cents in 1Q 2025.

• NAV per unit stood at S$2.53 as of 31 March 2026, with unit price at S$4.00, representing a 58.1% premium to NAV.

• Interest cover at 8.4x and all-in debt cost at 1.66%.

Outlook and guidance

• Minimum rent for Singapore hospitals set to increase to S$99.1 million in FY2026, a 24.3% rise from FY2025.

• Annual rent review formula from FY2026 ensures further rental upside potential.

• Ongoing leasing discussions and asset optimization for five repossessed Japan properties.