Parkway Life REIT Gets Another Japanese Nursing Home

News about Parkway Life REIT

Parkway Life REIT is announcing the purchase of another nursing home in Japan.

Asset

The healthcare focused trust is expanding further into one of the fastest aging nation with the acquisition of Habitation Kamagaya, a 100 beds nursing facility in the greater Tokyo area. It will come with a fresh 20-year master lease and an expected net property yield of 6.4%.

Financing

The total cost of about S$21.2 million will be covered by new debt in local currency.

Expectations

After the operation, the trust expects an increase in yield, an extension of its WALE from 11.19 years to 11.44 years, and an increase in its gearing ratio from 38.6% to 39.3%.

Parkway Life REIT
Price4.500 SGD
NAV1.980 SGD
Yield (4 quarters)3.12%
Gearing37.0%