price as we strengthen our Japan portfolio mix. As
we remain competitive in making our acquisitions,
the divestment proceeds further strengthened PLife
REIT’s balance sheet and provided greater financial
flexibility for PLife REIT to seize other attractive
investment opportunities which offer better value.
The year also saw PLife REIT reinforce our position
as a leading healthcare REIT with a sharpened
portfolio of 41 assets valued at approximately S$1.5
billion. As at 31 December 2014, PLife REIT’s gearing
stands at a healthy level of 35.2% and underpinned
by favourable lease structures, PLife REIT’s portfolio
continues to offer unitholders a good balance of
earnings visibility and growth. The portfolio is fully
tenanted and largely secured with long-termmaster
leases which have a weighted average lease term
to expiry (by gross revenue) of approximately 9.42
years. 93% of our leases enjoy downside revenue
protection and 69% of the portfolio is pegged to
CPI-linked revision formulae.
LOOKING AHEAD
While downside risks continue to exist, the global
economy is projected to improve, albeit slowly.
The long-term prospects of the regional healthcare
industry continue to be robust due to rising demand
for better quality private healthcare services driven
by the fast-ageing population.
With a stronger foundation, we believe that PLife
REIT is now more strategically positioned than
ever to ride on the back of strong growth in the
healthcare sector. Coupled with an experienced
management team, PLife REIT is in the position to
effectively execute its strategy as it continues on its
journey of “
Grounded Defence, Focused Growth
”
to deliver greater values for the unitholders. For the
year ahead, we endeavour to continue embarking on
selective investments and asset recycling initiatives
to fortify PLife REIT’s portfolio mix. To further drive
value and growth, we seek to explore opportunities in
other newmarkets, including high growth emerging
markets, and we remain committed in executing our
proactive asset management and prudent capital
financial management strategies.
APPRECIATION
Our Board members have dedicated much time and
effort to provide strategic guidance. Their expertise
and leadership have been very instrumental to the
growth of our business. Our colleagues have also
committed themselves to helping us achieve the
sustained success, and our heartfelt appreciation
goes to them.
Very importantly, we want to thank our unitholders
and business partners for their continued confidence
and support in PLife REIT. We look forward to
providing more stable returns to you in FY2015.
LIM KOK HOONG
Chairman
YONG YEAN CHAU
Chief Executive Officer and Executive
Director
9
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