Parkway Life Real Estate Investment Trust (C2PU) reported gross revenue of 38.2 million Singapore dollars for the quarter ended Mar, 31 2026, a 2.1 % decrease from 38.98 million Singapore dollars a year earlier, mainly because of Japanese yen depreciation and the exit of a tenant occupying five nursing homes in Osaka.

Net property income slipped 2.7 % year on year to 35.85 million Singapore dollars, while finance costs rose 7.0 % to 3.53 million Singapore dollars due to capital-expenditure funding and higher yen interest costs. Despite lower revenue, the amount available for distribution rose 15.1 % to 28.82 million Singapore dollars, lifting distribution per unit to 4.42 Singapore cents; the payout will be included in the first-half distribution.

The trust’s leverage remained moderate at 34.2 %, with an interest-coverage ratio of 8.4 times and an all-in debt cost of 1.66 %. No long-term debt matures until Mar, 31 2027. During the quarter the REIT issued a five-year 70.0 million Singapore dollars green bond at 2.103 % per annum and secured a 10-year social loan of 8.8 billion Japanese yen (about 70.9 million Singapore dollars), lengthening its average debt term to about 3.8 years. Approximately 96 % of interest-rate exposure is hedged and income from Japan and Europe is hedged until at least 1Q29 and 1Q30, respectively.

Operationally, the trust completed “Project Renaissance”, a 350 million Singapore dollars renewal of Mount Elizabeth Hospital in Feb, 2026, receiving provisional Green Mark Platinum certification. Meanwhile, the liquidation of tenant Miyako Group affects five Japanese properties but represents only about 1.6 % of projected FY26 gross revenue; security deposits covering four to eight months of rent have been retained.

Minimum rent for the three Singapore hospitals is set to rise to 99.1 million Singapore dollars in FY26, up 24.3 % from FY25, underpinning future income growth.