Page 48 - ar2012

On 30 November 2012, PLife REIT completed its 6th
AEI for its Japan portfolio, involving the creation of
a central kitchen at Sawayaka Obatake Nibankan to
facilitate the catering and preparation of food for other
K.K. Sawayaka Club facilities in the vicinity. The AEI
yielded attractive returns for PLife REIT as gross rent
for the unexpired lease term increased by 5.04%.
PLife REIT is committed to delivering continuous
and sustainable growth for its Unitholders, and
concurrently seeks to rationalise the potential and
relevance of each asset to ensure an optimal portfolio
mix.
Growth Underpinned by Strong Financials
As part of its dynamic fnancial and capital
management strategy, PLife REIT continually
evaluates its position and pre-emptively secures well-
diversifed, long term fnancing sources to sustain its
growth plans and strengthen its fnancial position.
On 25 June 2012, PLife REIT put in place a four-year
S$80.0 million committed and unsecured Revolving
Credit Facility (the “Facility”) for the pre-emptive
refnancing of short-term loan facilities maturing
in FY2012 as well as the S$50.0 million Floating
Rate Notes (“FRN”) maturing in FY2013. Through
this exercise, the Group purchased and cancelled
S$35.75 million of the outstanding FRN using the
Facility. The remaining S$14.25 million of the FRN
will be covered by the Facility when the FRN falls due
in March 2013. Through the use of this Facility, PLife
REIT has no refnancing needs for its total existing
debt portfolio until FY2014.
Attributed to its prudent fnancial risk management,
PLife REIT has not been affected by the volatility
in Japanese Yen exchange rate in FY2012. PLife
REIT’s natural hedge strategy adopted since its
frst investment in Japan in 2008 to borrow loans
denominated in Japanese Yen for its investments in
Japan insulates it from exposure to foreign currency
fuctuations. In 1Q 2012, in view of the increasingly
volatile Japanese Yen exchange rate, PLife REIT has
pro-actively extended its Japanese Yen denominated
net income forward hedge for another fve years till
1Q 2017. These proactive fnancial risk management
measures have strengthened PLife REIT’s resiliency
against foreign exchange risks, thereby enabling it
to maintain a stable net asset value and distributable
income to Unitholders. With a robust balance sheet
and ample debt headroom, PLife REIT remains
nimble to capitalise on growth opportunities in the
region.
ParkwayLife REIT Annual Report FY2012
46
OUR GROWTH STRATEGY
250.0
200.0
150.0
100.0
50.0
0.0
S$ million
SGD due
2013
JPY due
2014
JPY due
2015
SGD due
2016
JPY due
2017
Note: 1. Covered by the 4-year S$80.0 million RCF maturing in FY2016
14.251
162.88
202.78
58.55
45.60