Mixed DPU, but Healthcare S-REITs Stay Operationally Resilient
A total of 22 Singapore real estate investment trusts (S-REITs) have released their financial results or business updates for the periods ended 31 December 2025, with another 13 expected to report in the coming weeks.
Among them, Healthcare S-REITs ParkwayLife REIT and First REIT have both published their full-year results.
1. $ParkwayLife Reit(C2PU.SI)$
ParkwayLife REIT posted a 2.5% year-on-year increase in full-year distribution per unit (DPU) to 15.29 Singapore cents. The REIT also reported higher gross revenue of S$156.3 million increasing 7.6% year-on-year and net property income of S$147.5 million rising 8.0% year-on-year.
The improved performance was driven by both contributions from newly acquired assets in France and Japan, and steady organic rental growth from its Singapore hospital portfolio, supported by step-up lease agreements.
Following its expansion into Europe, ParkwayLife REIT has fully integrated its France nursing home portfolio, establishing the region as its third key growth market.
CGSI Research analyst Lock Mun Yee notes that Singapore remains the REIT’s main income contributor, with its master lease structure providing the REIT with visible and sustainable income growth.
ParkwayLife REIT maintains a gearing ratio of 33.4% and an interest coverage ratio of 8.6 times, which Lock notes gives the trust ample headroom for further inorganic growth opportunities.
As of 31 December 2025, ParkwayLife REIT’s portfolio spans 74 properties across Singapore, Japan and France, with a weighted average lease expiry (WALE) of 14.5 years by gross revenue.
2. $First Reit(AW9U.SI)$
First REIT reported a full-year DPU of 2.17 Singapore cents, representing an 8.1% year-on-year decline, mainly due to the depreciation of the Indonesian Rupiah and Japanese Yen against the Singapore dollar.
In local currency terms, however, underlying property performance remained resilient. Rental and other income for Indonesia and Singapore properties rose by 5.1% and 2.0% respectively, while Japan properties remained stable.
During the year, First REIT completed the divestment of the Imperial Aryaduta Hotel & Country Club, a non-core asset, as part of its ongoing portfolio optimisation efforts.
Across its Indonesian assets, 10 hospitals recorded a 4.5% built-in rental escalation, and 3 hospitals achieved performance-based rent equivalent to 8.0% of each hospital’s gross operating revenue (in local currency terms).
Meanwhile, the REIT’s 3 Singapore nursing homes recorded positive rental growth, and its 14 nursing homes in Japan continued to deliver stable performance.
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