Financial Statements And Related Announcement :: Full Yearly Results

Parkway Life Real Estate Investment Trust

and its subsidiaries

(Constituted in the Republic of Singapore pursuant to

a trust deed dated 12 July 2007)

Interim Financial Statements

For the full year ended 31 December 2021

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PARKWAY LIFE REAL ESTATE INVESTMENT TRUST
INTERIM FINANCIAL STATEMENTS FOR THE FULL YEAR ENDED 31 DECEMBER 2021
Table of Contents
A. Consolidated statements of total return …………..……………………………….……...…… 3
B. Consolidated statements of financial position ………………………………........................ 6
C. Consolidated statements of movement in unitholders' funds ..........................................	7
D. Portfolio statements ..............................................................................................................	8
E. Consolidated statement of cash flows ...............................................................................	21
F. Selected notes to the financial statements ........................................................................	22
G. Other information required by Listing Rule Appendix 7.2 ...............................................	29

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PARKWAY LIFE REAL ESTATE INVESTMENT TRUST

INTERIM FINANCIAL STATEMENTS FOR THE FULL YEAR ENDED 31 DECEMBER 2021

1. CONSOLIDATED STATEMENTS OF TOTAL RETURN

	4Q	4Q	Inc/	2021	2020	Inc/
	2021	2020	(Dec)	(Dec)
	S$'000	S$'000
	S$'000	S$'000	%	%
Gross revenue	30,606	30,566	0.1	120,705	120,892	(0.2)
Property expenses	(2,101)	(2,107)	(0.3)	(9,471)	(8,364)	13.2
Net property income	28,505	28,459	0.2	111,234	112,528	(1.1)
Management fees	(3,398)	(3,213)	5.8	(12,852)	(12,647)	1.6
Trust expenses	(990)	(789)	25.5	(3,373)	(3,739)	(9.8)
Net foreign exchange gain	272	40	580.0	1,946	90	2,062.2
Interest income	-	1	n.m.	-	7	n.m.
Finance costs	(1,432)	(1,351)	6.0	(4,683)	(5,237)	(10.6)
Other expenses	-	(905)	n.m.	-	(1,218)	n.m.
Non-property expenses	(5,548)	(6,217)	(10.8)	(18,962)	(22,744)	(16.6)
Total return before changes in fair	22,957	22,242	3.2	92,272	89,784	2.8
value of financial derivatives,
investment properties and gain
on disposal of investment
property	1,781	1,126	58.2	4,161	(823)	n.m.
Net change in fair value of financial
derivatives	109	7,444	(98.5)	239,206	7,428	3,120.3
Net change in fair value of
investment properties	-	-	-	5,113	-	n.m.
Gain on disposal of investment
property
Total return for the period before	24,847	30,812	(19.4)	340,752	96,389	253.5
tax and distribution
Income tax expense	(2,412)	(3,309)	(27.1)	(8,874)	(9,165)	3.2
Total return for the period after tax	22,435	27,503	(18.4)	331,878	87,224	280.5
before distribution
Earnings per unit (cents)
Basic and diluted	3.71	4.55		54.86	14.42

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PARKWAY LIFE REAL ESTATE INVESTMENT TRUST

INTERIM FINANCIAL STATEMENTS FOR THE FULL YEAR ENDED 31 DECEMBER 2021

Distribution Statements
		4Q	4Q	Inc/	2021	2020	Inc/ (Dec)
	Note	2021	2020	(Dec)
	S$'000	S$'000	%
		S$'000	S$'000	%
Amount available for distribution		21,559	21,387	0.8	21,628	20,257	6.8
to Unitholders at the beginning
of the period
Total return for the period		22,435	27,503	(18.4)	331,878	87,224	280.5
Distribution adjustments	A	(588)	(6,130)	(90.4)	(244,176)	(482)	50,558.9
Rollover adjustment	B	-	64	n.m.	-	145	n.m.
Amount retained for capital	C	(750)	(750)	-	(3,000)	(3,000)	-
expenditure	D	476	905	(47.4)	476	(478)	n.m.
Amount released/(retained) for
COVID-19 related relief
measures
Income for the period available		21,573	21,592	(0.1)	85,178	83,409	2.1
for distribution to Unitholders
Amount available for distribution		43,132	42,979	0.4	106,806	103,666	3.0
to Unitholders
Distributions to Unitholders
during the period:
- Distribution of 3.34 cents per		-	-		-	20,207
unit for period from 1 October
2019 to 31 December 2019
- Distribution of 3.32 cents per		-	-		-	20,086
unit for period from 1 January
2020 to 31 March 2020
- Distribution of 3.36 cents per		-	-		-	20,328
unit for period 1 April 2020 to
30 June 2020
- Distribution of 3.54 cents oer		-	21,417		-	21,417
unit for period 1 July 2020 to 30
September 2020
- Distribution of 3.57 cents per		-	-		21,599	-
unit for period from 1 October
2020 to 31 December 2020
- Distribution of 3.57 cents per		-	-		21,598	-
unit for period from 1 January
2021 to 31 March 2021
- Distribution of 3.38 cents per		-	-		20,449	-
unit for period from 1 April 2021
to 30 June 2021
- Distribution of 3.56 cents for		21,538	-		21,538	-
unit for period from 1 July 2021
to 30 September 2021
		21,538	21,417		85,184	82,038

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PARKWAY LIFE REAL ESTATE INVESTMENT TRUST

INTERIM FINANCIAL STATEMENTS FOR THE FULL YEAR ENDED 31 DECEMBER 2021

	Amount available for distribution			21,594	21,562	0.1	21,622	21,628	-
	to Unitholders at the end of the
	period
	Rounding adjustment			(1)	30		(29)	(36)
	Distributable income to		E	21,593	21,592	-	21,593	21,592	-
	Unitholders
	Number of units entitled to			605,002	605,002		605,002	605,002
	distribution ('000)
	Distribution per unit (cents)			3.57	3.57		14.08	13.79
Note:
	A. Distribution adjustments comprise:
				4Q	4Q	Inc/	2021	2020	Inc/ (Dec)
				2021	2020	(Dec)
				S$'000	S$'000	%
				S$'000	S$'000	%
	(Non-taxable)/non-tax deductible items:
	Trustee's fees		94	86	9.3	350	339	3.2
	Amortisation of transaction costs relating	250	152	64.5	716	623	14.9
	to debt facilities		(1,781)	(1,126)	58.2	(4,161)	823	n.m.
	Net change in fair value of financial
	derivatives		1,243	(5,507)	n.m.	(235,712)	(3,456)	6,720.4
	Net change in fair value of investment
	properties (net of deferred tax)		-	-	-	(4,231)	-	n.m.
	Gain on disposal of investment property
	Foreign exchange (gain)/loss		111	12	n.m.	(926)	13	n.m.
	Others		(505)	253	n.m.	(212)	1,176	n.m.
	Net effect of (non-taxable)/non-tax		(588)	(6,130)	(90.4)	(244,176)	(482)	50,558.9
	deductible items

1. The rollover adjustment in 2020 represented the difference between the taxable income previously distributed and the quantum finally agreed with the Inland Revenue Authority of Singapore ("IRAS") for the Year of Assessment 2018. Differences have been adjusted under the rollover mechanism agreed with the IRAS.
2. An amount of $3.0 million is retained for capital expenditure on existing properties each year.
3. Part of the $1.7 million COVID-19 related relief measures for tenants announced in 1Q 2020. The retention sum will be released as and when the COVID-19 related support has been utilised and recognised in the Statement of Total Return. Balance of the unutilised retention sum has been released as of 31 December 2021.
4. Parkway Life REIT's distribution policy is to distribute at least 90% of its taxable income and net overseas income, with the actual level of distribution to be determined at the Manager's discretion.

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