Parkway Trust Management Limited, recently announced a strong set of first quarter 2010 figures for Parkway Life Real Estate Investment Trust (PLife REIT).

PLife REIT registered gross revenue of $18.6 million and net property income of $17.2 million for 1Q 2010, representing an increase of 14.1% and 13.4% respectively over the previous corresponding period (1Q 2009). The higher revenue was due primarily to additional revenue contribution amounting to $1.8 million from the eight nursing homes acquired in Japan in 4Q 2009. Furthermore, higher revenue was driven by the higher rent from the existing properties. Property expenses for 1Q 2010 were $1.4 million, a $300,000 increase from 1Q 2009 primarily incurred due to the Japan nursing homes acquisition.

Distributable income increased 9.7% from $11.4 million in 1Q 2009 to $12.5 million in 1Q 2010. Correspondingly, Distribution per Unit (DPU) for 1Q 2010 rose to 2.07 cents from 1.89 cents in 1Q 2009. Annualised DPU for 1Q 2010 was at 8.28 cents, outperforming 7.56 cents in 1Q 2009 mainly due to the yield accretive Japan acquisitions and higher rent from the Singapore Hospitals. Based on a market price of $1.36 as at close of market on 31 March 2010, PLife REIT’s unitholders would enjoy an annualised distribution yield of 6.09% for 1Q 2010.

Yong Yean Chau, Chief Executive Officer of Parkway Trust Management Limited said, “Our targeted investment strategy, supported by ongoing prudent financial and capital management, has enabled us to make timely acquisition of attractively-priced and yield-accretive assets, such as the Japan nursing homes in 4Q 2009. Going forward, riding on the economic recovery and increasing demand for quality healthcare assets, PLife REIT will continue to leverage on our strong fundamentals to propel acquisitive growth, by actively seeking assets that enhance the overall stability and yield-generating ability of our portfolio.”