[SINGAPORE] Healthcare S-REITs have emerged as the top-performing sub-sector in 2025, delivering an average total return of 6.2% year-to-date—significantly outperforming the broader iEdge S-REIT Index, which fell 1.1%. Over one- and three-year periods, the sub-sector also led with returns of 16.8% and 6.2%, respectively.
Net institutional inflows into the two healthcare S-REITs listed on SGX—Parkway Life REIT (SGX: C2PU) and First REIT (SGX: AW9U)—amounted to S$17.6 million year-to-date, while the broader S-REIT sector saw net outflows of S$527 million.
Parkway Life REIT (SGX: C2PU)
One of Asia’s largest listed healthcare REITs, Parkway Life REIT (PLife REIT) owns a S$2.46 billion portfolio of healthcare properties across Singapore, Japan, and France.
In Q1 2025, PLife REIT reported:
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Gross revenue up 7.3% y-o-y to S$39 million
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Net property income (NPI) up 7.5% to S$36.8 million
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Distributable income rose 9.1% y-o-y to S$25 million
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DPU increased 1.3% y-o-y to S$0.0384, payable in 1H 2025
Gains were driven by contributions from a nursing home in Japan acquired in August and 11 facilities in France acquired in December 2024. Step-up lease agreements from Singapore assets also boosted income, though the Japanese yen’s depreciation partially offset gains.
PLife REIT also announced a divestment of its Malaysia portfolio for S$6.09 million, marking a strategic exit from the market. The assets contributed just 0.2% of gross revenue.
CGSI Research’s Lock Mun Yee highlighted PLife’s stable income profile, underpinned by built-in rent escalations and a strong Singapore portfolio, which contributed 65.2% of Q1 revenue and 66.2% of NPI. The REIT maintains a gearing ratio of 36.1%, with 90% of debt hedged into fixed rates.
Bloomberg’s 12-month target price: S$4.70
First REIT (SGX: AW9U)
First REIT posted a 2.8% year-on-year decline in both rental and other income and NPI, coming in at S$25.4 million and S$24.6 million, respectively.
DPU fell to S$0.0058, with a 2.2% drop in distributable income.
The fall was mainly due to currency depreciation in the Japanese yen and Indonesian rupiah. However, in local currency terms:
As of Mar 31, 2025, First REIT’s gearing stood at 40.7%, with 56.7% of debt hedged or fixed. Its cost of debt dropped from 5% to 4.7%, and there are no refinancing needs until May 2026.
The REIT is currently exploring strategic options for its Indonesia portfolio, having engaged a marketing agent and reached out to over 60 parties for a price-discovery process.
Phillip Securities Research’s Darren Chan noted First REIT’s FY2025e yield of 9.2% is attractive, with organic growth potential from more Indonesian hospitals moving to performance-based rents.
Bloomberg’s 12-month target price: S$0.30
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