MESSAGE TO
UNITHOLDERS
FOCUSED GROWTH
PLife REIT’s positive growth story and stable
dividends prove that senior housing and healthcare
assets are now core property investments with
enhanced valuations, particularly in a region that
faces a rapidly ageing population.
Japan, one of PLife REIT’s core markets, continues
to take the global lead in life expectancy, which
has driven both governmental support and
increasing private sector acquisition activities in
eldercare facilities.
Despite growing investment enthusiasm in the
Japan healthcare sector, the year saw us further
strengthen our Japan nursing home portfolio mix
with the acquisition of 4 nursing homes
[1]
and an
extended-stay lodging facility. Capitalising on our
strong fundamentals as a first-mover, PLife REIT
remained well-positioned to ride on the back of
unprecedented growth in the Japan healthcare
sector. Our proven track records allowed us to forge
and foster new relationships with operators which
further diversify PLife REIT’s tenant risk exposure.
During the year, PLife REIT initiated the asset
recycling strategy to rebalance and strengthen
the overall quality and growth potential of PLife
REIT’s Japan Portfolio. Since our first acquisition in
Japan in 2008, we have leveraged on our strategic
clustering/partnering approach and thrived on strong
landlord-lessee relationships to successfully expand
our footprint in Japan. With the Japan healthcare
market becoming more robust and exuberant
resulting in much compression in terms of the cap
rates for the Japan nursing homes, PLife REIT is
in a strong position to ride this growth potential.
In December 2014, we embarked on our maiden
divestment which saw us divest 7 Japan nursing
homes deemed to be of less strategic value. The
divestment capitalises on a unique opportunity
for PLife REIT to realise the assets at an attractive
UNIT PRICE RELATIVE PERFORMANCE
200.00
150.00
100.00
50.00
Jan-12
Mar-12
Apr-12
Jun-12
Dec-14
Oct-14
Aug-14
Jun-14
Apr-14
Feb-14
Dec-13
Oct-13
Aug-13
Jun-13
Apr-13
Feb-13
Dec-12
Oct-12
Aug-12
As at 31 Dec 2014:
STI 25.17%
S-REIT 34.53%
PLife REIT 32.96%
––––
S-REIT Index
[1]
(FTSE ST)
––––
STI Index
[2]
––––
PLife REIT
[1]
FTSE ST: Real Estate Investment Trust Index
Source: Bloomberg
[2]
STI Index: Straits Times Index
[1]
Acquisition of Ocean View Shonan Arasaki was completed on 6 January 2015
8
PA R K WAY L I F E R E I T
