Page 47 - ar2012

OUR GROWTH STRATEGY
Annual Report FY2012 ParkwayLife REIT
In 2012, despite scattered signs of improvement,
global economic uncertainties linger as business
sentiment remained tepid. Soundly anchored to a
solid and defensive foundation, PLife REIT turned
in another year of steady fnancial performance,
which was propelled by its concerted efforts and
the disciplined execution of its growth strategies­
- “Targeted Investment”, “Proactive Asset
Management” and “Dynamic Capital and Financial
Management”.
Exploring Growth in the Region
PLife REIT remains vigilant for compelling yield-
accretive acquisition opportunities as it seeks to
further expand its footprint in the region. As PLife REIT
continues to tread on its acquisition path, calibrated
moves are made to ensure that assets acquired are
not only value-generating, but would also enhance
the long-term defensiveness of the overall portfolio.
In March 2012, PLife REIT fortifed its position in the
Japan nursing home market with the acquisition of
three more nursing homes in the Fukuoka, Osaka
and Hokkaido prefectures.
In August 2012, PLife REIT made its inaugural foray
into Malaysia with the acquisition of strata titled
units/lots within Gleneagles Intan Medical Centre,
Kuala Lumpur. Emulating its entry into Japan, PLife
REIT embarked on a small-sized acquisition before
consolidating its presence over time with enhanced
market familiarity.
PLife REIT leverages on its partnerships and adopts
clustering approach to expand within existing markets
while venturing into new markets on a measured
manner. It continues to capitalise on the opportunities
presented to beneft from the growing demand for
quality healthcare services in the Asia Pacifc region.
Exploring Growth from Within
Proactive Asset Management continues to serve as
the bedrock in fueling PLife REIT’s organic growth.
Whilst seeking to maximise its portfolio performance,
continual emphasis is made to foster good Landlord-
Lessee relationships.
Embracing the concept of collaborative AEIs, PLife
REIT continued to build on its track record and
completed two more AEIs for its Japan portfolio in
2012.
In May 2012, PLife REIT completed its 5th AEI
for its Japan portfolio with the roll-out of its new
“Refurbishment AEI” concept, whereby property
refurbishment costs are being borne by PLife REIT
in exchange for incremental rent from its Lessees.
The maiden Refurbishment AEI at Maison des
Centenaire Ishizugawa involved improvement works
being carried out to the property’s lift systems,
interior fnishing and façade. This Refurbishment AEI
is mutually benefcial to PLife REIT and its lessee as it
unlocks greater value from the property, and serves
to preserve the competitiveness of the property and
revenue sustainability of the nursing home operator.
1 Based on an exchange rate of S$1.00 to JPY70.18
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