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As the business environment remains
challenging in 2012 given the on-
going uncertainties in the global
economy, PLife REIT stayed focus
on delivering sustained growing
distributions for our Unitholders.
Shield Amidst
Market Uncertainty
PLife REIT seeks to preserve its
valued resiliency and defensiveness
and through disciplined execution
of our growth strategies, PLife REIT
continue to deliver steady returns in
2012 with a registered DPU growth of
approximately 69.2% since IPO.
For the year, PLife REIT reported a
year-on-year increase of 7.2% in gross revenue to
S$94.1 million and 7.6% increase in net property
income to S$86.4 million. Distributable income for
the fnancial year grew 7.5% to S$62.4 million with a
corresponding increase in DPU to 10.31 cents.
PLife REIT’s consistent returns are underpinned by its
inherent portfolio strengths. As at 31 December 2012,
97.8% of our leases have built-in rent review provision
with 90.0% enjoying downside revenue protection.
Our properties are also secured with long-term
master leases with a weighted average lease term
to expiry (by gross revenue) of approximately 11.29
years. With 67.0% of our total Portfolio pegged to CPI
linked rent revision formulae, PLife REIT continues to
be a key benefciary of the rising infationary trends.
Riding on Proven Growth Strategies
The robust demand for healthcare services and
facilities in the region continues to present growth
opportunities for PLife REIT to expand our footprint
in the region.
For Japan, the rapidly ageing population and the
government’s continued encouragement for private
sector participation in the elderly care industry will
continue to bolster demand for quality senior care
services and living facilities. Leveraging on our
strategic partnership approach, PLife REIT further
expanded our footprint in Japan with the acquisition
of three more nursing homes in March 2012. With
an enlarged nursing home portfolio of 32 properties
strategically located across Japan, PLife REIT is in a
favorable position to beneft from the trend.
As we seek to enhance the revenue diversity of
PLife REIT, we remain discerning and prudent in
our acquisition strategy. Similar to our approach for
Japan market, we embarked on our maiden entry
into Malaysia in August 2012 with a small-sized
acquisition of strata-titled units/lots at Gleneagles
Intan Medical Centre, Kuala Lumpur. This seed
investment in Malaysia marks the beginning of
our long term strategy of establishing a signifcant
presence in the growing healthcare sector there.
For the year, PLife REIT remains steadfast in the
proactive asset management of our portfolio to
unlock greater value for Unitholders. Leveraging on
our past successes, we continue to embrace the
strategic collaborative asset enhancement initiative
10
Dear Unitholders,
MESSAGE TO UNITHOLDERS
3.0
2.7
2.4
2.1
1.8
1.5
4Q
2007
DPU
(cents)
1.59 1.62 1.66 1.71
1.84 1.89 1.89 1.91 2.05
2.07 2.09
2.25
2.38 2.36 2.37
2.40 2.47 2.56
2
2.48
2.58
2.69
Note:
1
Accumulated DPU payout since IPO is 45.54 cents (inclusive of 3Q 2007 pro-rated payout).
2
For FY2012, S$3 million amount available for distribution was retained for capital expenditure (S$0.75 million per quarter)
2Q
2008
4Q
2008
2Q
2009
4Q
2009
2Q
2010
4Q
2010
2Q
2011
1Q
2008
3Q
2008
1Q
2009
3Q
2009
1Q
2010
3Q
2010
1Q
2011
3Q
2011
4Q
2011
1Q
2012
2Q
2012
3Q
2012
4Q
2012
+69.2%
1
ParkwayLife REIT
Annual Report FY2012
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