4 Singapore REITs That Boast Consistent DPU Increases: Parkway Life REIT

Parkway Life REIT owns a diversified portfolio of 61 healthcare properties with an AUM of around S$2.2 billion as of 31 December 2022.

The REIT owns three hospitals in Singapore, 57 nursing homes in Japan and strata-titled units/lots in a specialist clinic in Malaysia.

Parkway Life REIT’s DPU has been rising uninterrupted since its IPO in 2007, and from 2019 to 2022, the healthcare REIT saw its DPU increase from S$0.1319 to S$0.1438.

The REIT’s properties have a long WALE of close to 17 years and should see strong demand due to the ageing populations in both Singapore and Japan.

Parkway Life REIT also signed new lease agreements for its three Singapore hospitals that will run until 31 December 2042, thus providing rental income certainty for investors.

Its gearing level stood at just 36.4%, allowing for sufficient debt headroom for further acquisitions.

At an all-in cost of debt of just 1.04%, investors need not worry about the impact of rising interest rates.