ParkwayLife REIT’s distribution per unit (DPU) rose by 2.5% y-o-y to 15.29 cents in FY2025 for the 12 months to Dec 31, 2025, extending PLife REIT’s track record of recurring DPU growth. Gross revenue for FY2025 increased 7.6% y-o-y to $156.3 million while net property income (NPI) rose 8.0% y-o-y to $147.5 million. Distributable income for the year to Dec 31, 2025 rose 9.1% y-o-y to $99.71 million.
The improvement largely reflects higher contributions from assets acquired in 2024 as well as organic rental growth from the Singapore hospital portfolio with step-up lease agreements, partially offset by foreign currency movements, which are managed through the REIT’s established hedging strategies.
As at Dec 31 2025, PLife REIT’s gearing ratio stood at 33.4%, with an all-in cost of debt of around 1.59% and an interest coverage ratio of 8.6 times. PLife REIT has no long-term debt refinancing requirements until October 2026.
Around 93% of the REIT’s interest rate exposure was hedged as at end-2025, providing protection against interest rate volatility.
Foreign exchange risks continue to be managed through a combination of natural hedging and income hedging strategies. Japanese Yen-denominated assets are fully funded by JPY borrowings, while principal foreign exchange exposure associated with the France portfolio is prudently managed via cross-currency swaps.
Income-related foreign exchange exposures are hedged through net income hedging arrangements, with JPY and EUR net income hedges in place until 1Q2029 and 1Q2030 respectively.
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The Singapore hospital portfolio continues to form the cornerstone of PLife REIT’s earnings profile, providing stable and recurring income through long-term master lease arrangements with built-in rental escalation mechanisms.
Under the existing lease structure, minimum rent is set to increase to $99.1 million in FY2026 with CPI fixed at 0.9%, an increase of $19.3 million or 24.3% from the actual rent payable for FY2025, providing clear organic growth visibility. The annual Rent Review Formula will be applicable to rental contribution from FY2026 onwards based on the higher of {1+(CPI+1%) X Initial Rent of $97.2 million} or {Base Rent + Variable Rent}.
As at Dec 31 2025, PLife REIT’s portfolio gained $135.7 million and $64.7 million as compared to last valuation and net book value respectively. The net valuation gain was primarily contributed by the projected rent increase for the Singapore hospitals.
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In Japan, PLife REIT owns 60 nursing home assets across 17 prefectures, characterised by long-term leases, a diversified lessee base and predominantly defensive rental structures with significant downside protection.
PLife REIT has integrated its France nursing home portfolio and established a presence in the European nursing home market, which positions it to pursue disciplined growth opportunities in the European healthcare market and lays the foundation for Europe as a third key growth market.
Following the announcement in August 2025 regarding the Inland Revenue Authority of Singapore’s approval for the foreign-sourced dividend income from the France portfolio and the foreign-sourced interest income relating to seven of the eleven French properties, the REIT has since secured tax exemption from the Ministry of Finance for the remaining four French properties as well.
In August 2025, PLife REIT completed the divestment of its Malaysia portfolio. As at Dec 31 2025, PLife REIT owned 74 properties across Singapore, Japan and France, with a weighted average lease expiry of approximately 14.5 years by gross revenue and approximately 90% of rental income enjoying downside protection.
“FY 2025 demonstrates the resilience of PLife REIT’s portfolio and operating model, with sustained DPU growth delivered amid a volatile macroeconomic environment," says Yong Yean Chau, CEO of the manager.
"With long-term leases, strong operator relationships and a resilient balance sheet, we are well positioned to pursue disciplined, yield-accretive growth while continuing to deliver stable and sustainable returns for our unitholders," he adds.
Based on the Feb 2 closing of $4.07, Plife REIT is trading at a yield of 3.25%.
