GROUNDED DEFENCE
As PLife REIT embarks on its next phase of growth,
we remain rooted in preserving the valued resiliency
which we have conscientiously seeded over
the years.
To maintain a robust financial position and strong
balance sheet, we have pre-emptively termed out all
our debt facilities maturing in FY2015 and extended
the underlying long term interest rate hedge
correspondingly. As at 31 December 2014, PLife
REIT continues to enjoy a low average all-in cost of
debt of 1.4% with a lengthened weighted average
debt maturity of 3.7 years. With a well spread out
debt maturity profile and minimal refinancing risk
in the near term, the position of our balance sheet
is enhanced.
During the year, PLife REIT’s natural hedge strategy
and its prudent 100% net income hedge for its
Japanese currency exposure, which were put in
place since its first acquisition in Japan in 2008,
continues to provide effective shields against
volatility of the Japanese Yen. Despite the continual
depreciation of the Japanese Yen in FY2014, PLife
REIT was insulated against this drastic currency
move and managed to grow its DPU by 7.1% in
spite of the challenge. This strategy has also helped
PLife REIT maintained a stable net asset value at
the same time.
As a testament to PLife REIT’s solid fundamentals
and sound financial metrics, in 2014 Fitch affirmed
PLife REIT’s long-term issuer default, senior
unsecured rating and the S$500millionmulticurrency
MTN Programme (the “MTN Programme”) at ‘BBB’,
with a stable outlook. Additionally, PLife REIT was
for the first time assigned by Moody’s Investors
Service (“Moody’s”), a ‘Baa2’
[3]
issuer rating in 2014
as well as a provisional ‘(P)Baa2’
[4]
senior unsecured
rating to the MTN Programme, with a stable outlook.
DPU
(cents)
12.0
10.0
8.0
6.0
FY 2007
(annualised)
FY 2008
FY 2014
FY 2013
FY 2012
FY 2011
FY 2010
FY 2009
11.52
10.75
10.31
[2]
9.60
8.79
7.74
6.83
6.32
STRONG DPU GROWTH SINCE IPO
DPU has grown steadily at a rate of 82.3% since IPO
[1]
+82.3%
[1]
YTD 4Q 2014 accumulated DPU payout since IPO is 67.81 cents (inclusive of 3Q 2007 pro-rated payout)
[2]
Since FY 2012, S$3.0 million per annum of amount available for distribution has been retained for capital expenditure
[3]
Equivalent to Fitch's ratings of BBB
[4]
Moody's only assigns a provisional rating to MTN Programme and will issue a definitive rating upon specific notes issuance
7
A N N U A L R E P O R T 2 0 1 4
