Investor
Relations
2 All JPY to S$ conversion is based on the exchange rate of S$1.176 per JPY100 as at 31 December 2015
3 Cash and cash equivalents at the respective period end exclude a cash deposit of JPY154.4 million (S$1.8 million and S$1.7 million as at 31 December
2015 and 31 December 2014 respectively) placed with the Group by a vendor, for the purpose of Rental Income Guarantee
in 2016. In addition, in view of the potential risk of rising
interest rates stemming from start of interest rate hiking
by US Federal Reserve in December 2015, PLife REIT
has increased its hedge to approximately 95% of its
total interest rate exposure.
To further enhance the resiliency of our balance sheets,
the REIT has also carefully calibrated the loan maturity of
each facility being put in place to achieve a well-spread
out debt maturity. As at 31 December 2015, its total debt
was S$589.4 million and its weighted average debt term
to maturity stands at 3.5 years. The effective all-in cost
of debt is 1.6% per annum, one of the lowest cost of
debt amongst the S-REITs.
In terms of liquidity management, PLife REIT has put
in place two unsecured and uncommitted short-term
multicurrency facilities of S$75 million each (the “Short
Term Facilities”) for the Group’s general working capital
purposes. As at 31 December 2015, the Group has
drawn down S$1.0 million of the Short Term Facilities for
one month, at the bank’s cost of fund.
As at 31 December 2015, the total facilities drawn
of JPY35.1 million (approximately S$413.2 million
2
)
and S$175.2 million credit facilities (the “Long Term
Facilities”) were committed, unsecured and ranked
pari
passu
with all the other present and future unsecured
debt obligations of ParkwayLife REIT.
Gearing remained at a healthy level at 35.3% which
was within the acceptable range of the revised leverage
limits on S-REITs from the Monetary Authority of
Singapore (MAS).
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
3
for the year standing at S$18.5 million,
compared to S$144.7 million in FY2014. The decrease
in cash and cash equivalents was mainly due to the
redeployment of these funds on the acquisition of five
Japan properties, as well as to repay short-term loans,
in March 2015.
Cash inflow from operating activities for FY2015 increased
to S$82.0 million from S$79.7 million in FY2014, mainly
due to additional operating cash flows from the existing
properties and from the completion of the asset recycling
initiative, receipt of security deposits for the new
properties acquired in 1Q 2015, offset by the payment of
Japanese withholding tax on the divestment gains.
Cash used in investing activities for FY2015 had included
the acquisition of properties in 1Q 2015, payment of
acquisition-related costs for the property acquired in
December 2014, divestment-related costs of the 7 Japan
properties disposed and capital expenditure on existing
properties.
Cash used in financing activities in FY2015 primarily
arose from the distribution to Unitholders and repayment
of the JPY short-term loans, offset by long-term loans
drawdown to partial finance the new acquisition of four
nursing home and one group home on 23 March 2015.
Assets and Asset Valuation
As at 31 December 2015, PLife REIT’s property portfolio
comprised of 47 high quality healthcare assets,
valued approximately at S$1.6 billion. The increase in
investment properties was mainly due to acquisition
of a total five nursing home properties and one group
home property during the year. Furthermore, the Group
achieved a valuation gain of S$5.7 million for its existing
properties as at 31 December 2015.
Net Asset Value as at 31 December 2015 was S$1.69
per unit.
ParkwayLife REIT
Annual Report 2015
33
