PLife REIT has three unsecured and uncommitted
short termmulti-currency facilities (the “Short Term
Facilities” or “STFs”) of up to S$50 million each for
general working capital purposes. In line with our
strategy to spread out the Group’s debt maturity
profile, PLife REIT has utilised its existing STFs
to temporarily finance the acquisitions executed
in December 2014, with the intention to term out
these STFs by 1Q 2015 using its internal cash and
a 5-year committed term loan facility which was
already put in place in December 2014. As such,
the Group’s ¥4,500 million (approximately S$49.7
million
[1]
) 5-year committed and unsecured term
loan facility (“5-year TLF”) would have the maturity
date in 2020 once it is utilized to term out the STFs
in 1Q 2015.
As at 31 December 2014, the total facilities
drawn of ¥31,760 million (approximately
S$350.6 million with nil drawdown from the 5-year
TLF) and S$155.2 million revolving credit facility
(the “Long Term Facilities”) were committed,
unsecured and ranked
pari passu
with all the other
present and future unsecured debt obligations of
PLife REIT.
PLife REIT’s gearing stood at 35.2% as at
31 December 2014. This is well within the gearing
cap of 60%allowed under the Monetary Authority of
Singapore Property Funds Appendix. With a healthy
gearing and ample funding, PLife REIT is in a good
position to capitalise on any future acquisitions and
growth opportunities.
Cash Flow
PLife REIT is in a net cash position with cash
and cash equivalents for the year standing at
S$144.7 million
[2]
, compared to S$25.6 million in
FY2013. The tremendous increase in PLife REIT’s
year end cash and cash equivalents balance was
largely due to the capital proceeds received in
Japan from the divestment of 7 Japan properties
in December 2014. We intent to repatriate these
capital proceeds back from Japan by 1Q 2015.
Cash inflow from operating activities for FY2014
increased to S$79.7 million from S$76.4 million in
FY2013, due mainly to additional operating cash
flows from the existing properties and properties
acquired in 2014.
Cash inflow for investing activities of S$4.6 million
for FY2014 was largely due to proceeds received
from the divestment of 7 Japan nursing homes
offset by the 4 property acquisitions completed
during the year.
Cash inflow from financing activities in FY2014
increased to S$39.0 million from S$15.2 million in
FY2013 due primarily to additional debts drawn
down to fund the acquisitions in the year offset by
the distributions to Unitholders.
Assets and Asset Valuation
As at 31 December 2014, PLife REIT’s property
portfolio comprised of 41 high quality healthcare
assets, valued approximately at S$1.5 billion. The
increase in investment properties was mainly due to
acquisition of 4 nursing home properties in March
and December 2014, offset by the divestment of 7
nursing homes at year end. Furthermore, the Group
achieved a valuation gain of 3.1% or S$45.1 million
for its existing properties as at 31 December 2014.
Net asset value as at 31 December 2014 was S$1.71
per unit, representing a 5% increase over S$1.63
as reported in the year before.
[1]
All JPY to SGD conversion is based on the exchange rate of
S$1.104 per ¥100 as at 31 December 2014.
[2]
Excludes a cash collateral of ¥154.4 million (S$1.7 million
and S$1.9 million as at 31 December 2014 and 31 December
2013. respectively) placed with the Group by a vendor, for
the purpose of rental income guarantee.
35
A N N U A L R E P O R T 2 0 1 4
