Parkway Life REIT, one of Asia’s largest healthcare real estate investment trusts, has reported a robust performance for the first half of 2025, driven by strategic acquisitions and geographical diversification. The trust completed the acquisition of 11 freehold nursing homes in France in December 2024, contributing 7.8% to the group’s net property income (NPI) in the first half of 2025. This expansion marks a significant milestone as Parkway Life REIT diversifies its income base beyond Japan.
The acquisition, valued at EUR 111.2m (S$159.9m), was part of a strategic move to enter the European market. The properties, operated by DomusVi under 12-year leases, offer a net property income yield of 6.5%. This strategic expansion has been complemented by the Inland Revenue Authority of Singapore’s approval for tax exemptions on foreign-sourced dividends and interest income from seven of the 11 French nursing homes, resulting in estimated annual tax savings of S$1.26m.
Parkway Life REIT’s core portfolio remains anchored in Singapore, with three hospital properties under long-term master leases. These assets, with a weighted average lease expiry (WALE) of 20.4 years, continue to provide stable and predictable performance. The trust is also exploring asset enhancement initiatives for Gleneagles Hospital, expected to be finalised by the first half of 2026.
The trust’s financial stability is further supported by a high interest coverage ratio of 9.1 times and a stable average cost of debt at 1.5% in the second quarter of 2025. With 97% of its interest rate exposure hedged, Parkway Life REIT maintains a resilient balance sheet, ensuring continued growth and stability.
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