Page 9 - ar2012

Robust Financial Position
PLife REIT maintained its strong fnancial position in FY2012 with a series of prudent and pre-emptive capital management
measures. In June, PLife REIT has completed the pre-emptive refnancing exercise to ensure it has no refnancing needs
for its existing debt portfolio until FY2014. It has put in place a four-year S$80.0 million committed and unsecured Revolving
Credit Facility (the “Facility”) to term out short-term loan facilities. Concurrently, the Facility has been utilised to pre-emptively
purchase and cancel S$35.75 million of the outstanding S$50 million Floating Rate Notes (“FRN”) maturing in FY2013. The
S$14.25 million of the FRN will be term out using the Facility when the FRN falls due in March 2013.
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.
As at 31 December 2012, PLife REIT’s gearing level stood at a healthy 32.9%. With a “BBB” investment grade credit rating
from Fitch Ratings and further debt headroom of S$322.9 million before reaching gearing level of 45%, PLife REIT’s robust
balance sheet strengthens its resilience against market uncertainties and provides it with access to attractively-priced funding
to support its future growth.
Annual Report FY2012 ParkwayLife REIT
Low Effective
All-in Debt Cost
of 1.62%
Healthy Weighted
Average Term
to Loan Maturity
of 2.45 Years
Healthy
Gearing
of 32.9%
07
Ample Debt
Headroom of
S$322.9 Million
Before 45%
Gearing Level
Prudent
Financial Risk
Management
Diversifed
Funding
Sources
Investment
Grade
Credit Rating
of BBB