Parkway Life Real Estate Investment Trust · SGX:C2PU
Parkway Life Real Estate Investment Trust — FY2009 Earnings Presentation
38 slides from Parkway Life Real Estate Investment Trust's earnings presentation, Jan 22, 2010
Slide 1: Full Year 2009 Results Presentation
(“PLife REIT”) Full Year 2009 Results Presentation 22 January 2010
Slide 2: Disclaimer
Disclaimer This Presentation is focused on comparing actual results for the period from 1 October 2009 to 31 December 2009 (“4Q 2009”) versus the period from 1 October 2008 to 31 December 2008 (“4Q 2008”) and for the period from 1 January 2009 to 31 December 2009 (“2009”) versus the period from 1
Slide 3: Agenda
Agenda 1 4Q 2009 Highlights 2 Financial Highlights 4 Capital and Financial Management 4 Appendix A I Our Growth Strategy II Portfolio Highlights 3
Slide 4: 4Q 2009 Highlights
4Q 2009 4 Q 2009 Highlights Highlights 4
Slide 5: 4Q 2009 Highlights: Strong Revenue & Net Property Income Growth
4Q 2009 Highlights 3 Strong Revenue & Net Property Income Growth ― Gross revenue grew by 9.7% (4Q Y-O-Y) and 23.7% (Y-O-Y) ― Net property income grew by 9.2% (4Q Y-O-Y) and 23.1% (Y-O-Y) 3 Continued DPU Growth since IPO ― DPU for 4Q 2009 at 2.05 cents ― Strong growth of 28.9% since IPO 3 Strengthene
Slide 6: 4Q 2009 Highlights (cont'd): Stable Returns Supported by Defensive REIT Model
4Q 2009 Highlights (cont’d) 3 Stable Returns Supported by Defensive REIT Model ― Locked-in long-term master leases, giving 100% committed occupancy and guaranteed rental income stream across the portfolio ― 89.7% of PLife REIT’s total portfolio has a downside revenue protection and 98.1% of total po
Slide 7: 4Q 2009 Highlights (cont'd): Growth through Investment and Asset Management
4Q 2009 Highlights (cont’d) 3 Growth through Focus on Investment and Asset Management ― Flexible position to execute on growth opportunities ― Asset enhancement works at P-Life Matsudo demonstrate the ability to extract greater value from PLife REIT’s portfolio ― Acquisition of eight new nursing hom
Slide 8: Financial Highlights
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Slide 9: Strong Revenue Growth
Strong Revenue Growth 4Q 2009 Revenue grew by 9.7% to $17.7 million1 2009 Revenue grew by 23.7% to $66.7 million1 Revenue (S$’000) Revenue (S$’000) +9.7% +9.7% +23.7% +23.7% 66,679 17,744 53,887 16,178 72,000 18,000 60,000 48,000 12,000 36,000 6,000 24,000 12,000 0 0 4Q 2008 4Q 2009 YTD 2008 YTD
Slide 10: Strong NPI Growth
Strong NPI Growth Increase in NPI is due to: ¾ Rent contributions from Japan properties1; and ¾ Upward rent revision of Spore hospitals by 4.46%2 Breakdown of 4Q 2009 NPI (S$’ million) Breakdown of 2009 NPI (S$’ million) - 4Q 2009 NPI Increased by 9.2% - 2009 NPI Increased by 23.1% 20.0 16.5 62.0
Slide 11: Strong Distributable Income Growth
Strong Distributable Income Growth 4Q 2009 Distributable Income grew by 11.6% to S$12.4 million 2009 Distributable Income grew by 13.4% to S$46.7 million Distributable income (S$’000) Distributable Income (S$’000) +11.6% +11.6% +13.4% +13.4% 12,383 14,000 11,093 46,716 50,000 41,186 12,000 10,00
Slide 12: Strong Revenue and DPU Growth
Strong Revenue and DPU Growth 4Q 2009 DPU grew by 11.6% to 2.05 cents 2009 DPU grew by 13.4% to 7.74 cents Consolidated Income Year-on-Year Year-on-Year Variance Variance Statement (Actual) (Actual) (S$’000) 4Q 2009 4Q 2008 % 2009 2008 % Gross Revenue 17,744 16,178 9.7 66,679 53,887 23.7 Net Pro
Slide 13: Strong DPU Growth of 28.9%
Strong DPU Growth of 28.9% DPU has grown steadily from 1.59 cents to 2.05 cents, at a growth rate of 28.9% since IPO DPU (cents) +28.9% +28.9% 1.91 2.05 2.2 1.84 1.89 1.89 1.62 1.66 1.71 1.8 1.59 1.4 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 2007 2008 2008 2008 2008 2009 2009 2009 2009 13
Slide 14: Attractive Yield of 6.34%
Attractive Yield of 6.34% 368 bps higher than 10-yr Singapore Government Bond 564 bps higher than fixed deposit rates Defensive nature of PLife REIT adds on to the attractiveness of 6.34% yield1 Source: Bloomberg Note: 1. 2009 distribution yield based on the share price of S$1.22 as at 31 Dece
Slide 15: Unit Price Relative Performance
Unit Price Relative Performance PLife REIT’s unit price has outperformed both STI Index and the S-REIT Index over the last 2 years… 1 2 0 PLife REIT + 8.0% S-REIT (14.4%) 1 0 0 STI (16.4%) 8 0 6 0 4 0 2 0 J a n -0 8 M a y-0 8 A u g -0 8 D e c -0 8 A p r-0 9 A u g -0 9 D e c -0 9 P L i fe S R E IT In
Slide 16: Distribution Details
Distribution Details Distribution per unit Stock Counter Distribution Period (Cents) PLife REIT 01 October 2009 to 31 December 2009 2.05 Distribution Timetable Ex-Date: 28 January 2010 (Units will be traded ex-date) Books Closure Date: 01 February 2010 at 5pm Distribution Payment Date: 26 February 2
Slide 17: Capital and Financial Management
Capital and Financial Management 17
Slide 18: Strong Balance Sheet
Strong Balance Sheet Low gearing of 27.4% Consolidated As at 31 As at 31 Balance Sheet Variance Commentary December 2009 December 2008 (in S$’000) Increase is mainly due to acquisition of eight nursing homes in Japan done in Total Assets 1,181,842 1,080,566 November 2009, and net valuation gain in
Slide 19: Debt Maturity Profile
Debt Maturity Profile As at 31 December 2009 Japanese Yen Spore Dollar due H2 2014 due H2 2010 S$81.1mil S$34.0 mil (25.0%) (10.5%) Japanese Yen due H2 2011 S$209.2mil (64.5%) Weighted average term to maturity Current Effective All-In Borrowing is 2.41 years Rate of 3.01% Currently working to
Slide 20: Strong Debt Headroom
Strong Debt Headroom Debt headroom of S$247.4m and S$962.0m before reaching 40% and 60% gearing respectively PLife REIT puts in place ample funding from diversified sources to support future acquisitions and growth opportunities Assets (S$m) 1500 1000 962.0 500 247.4 43.2 324.3 324.3 324.3 324.3
Slide 21: Appendix A
Appendix A ~-“@ Ae ParkwayLife REIT 21 |
Slide 22: Our Growth Strategy
Our Growth Strategy =.” ParkwayLife REIT
Slide 23: Long-term Strategy
Long-term Strategy The manager plans to undertake the following strategies… Long term Strategy Acquisition growth strategy Asset management strategy Third Party Acquisition Sponsor’s Acquisition • Sustain Revenue • Focused on acquiring • Focused on acquiring • Grow revenue organically quality assets
Slide 24: Adapting to Market Conditions
Adapting to Market Conditions Market Conditions: Global economy, especially the Asia Pacific region has started to pick up The regional property sector shows signs of recovery, generating an increase in transaction and acquisition opportunities Concerns on refinancing risk for S-REITS have eas
Slide 25: PLife REIT's Core Markets
PLife REIT’s Core Markets Australia Japan US$25.2bn High Taiwan US$79.6bn US$21.8bn Sophistication of private healthcare sector2 S. Korea Singapore US$22.4bn US$3.3bn Malaysia Hong Kong US$3.0bn US$5.1bn Philippines US$2.3bn India Thailand US$47.8bn US$8.5bn China US$104.5bn Vietnam Legend US$2.9bn
Slide 26: FY2009 a year of strong organic growth from its Properties
Parkway Life REIT – FY2009 a year of strong organic growth from its Properties Singapore Singapore Hospital Properties Minimum Rent for the 3rd Year of Term (23 August 2009 to 22 August 2010) is determined at S$52.7 million Reflects a 4.36% increase from the actual rent payable for the 2nd Year
Slide 27: Portfolio Highlights
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Slide 28: ParkwayLife REIT – Portfolio
ParkwayLife REIT – Portfolio Largest Listed Healthcare REIT in Asian Region with an enlarged portfolio of S$1.15 billion 1 JAPAN SINGAPORE P-Life Matsudo Bon Sejour Shin-Yamashita Amille Nakasyo Hapine Fukuoka Bon Sejour Palmary Inn Noke Ibaraki Akashi Mount Elizabeth Hospital Maison des Centenaire
Slide 29: Competitive Strengths of the Properties
Competitive Strengths of the Properties Long Term Master Leases Enhances Portfolio Resilience • Weighted average Favorable Lease Structure lease term to expiry Ensures Good Organic Growth of 13.46 years1 • Rent review provision for 98.1% • 100.0% committed of the leases (by NLA) occupancy • Unique r
Slide 30: Portfolio Key Statistics (as at 31 December 2009)
Portfolio Key Statistics (as at 31 December 2009)Singapore Properties Mount Elizabeth Hospital ▪ Gleneagles Hospital ▪East Shore Hospital Japan P-Life Matsudo ▪ Bon Sejour Shin-Yamashita ▪ Bon Sejour Ibaraki ▪ Palmary Inn Akashi ▪ Palmary Inn Suma ▪ Senior Chonaikai Makuhari Kan ▪ Himawari Home Kama
Slide 31: Our Portfolio - Singapore
Our Portfolio - Singapore Property Mount Elizabeth Hospital Gleneagles Hospital East Shore Hospital Type Hospital and Medical Centre Land Tenure 67 years 75 years 75 years Gross Floor Area (sq m) 1 58,139 49,003 10,993 Licensed Beds 2 505 380 154 Operational beds 2 339 280 154 Operating theatres 2 1
Slide 32: Our Portfolio - Japan
Our Portfolio - Japan Property P-Life Matsudo Bon Sejour Shin-Yamashita Bon Sejour Ibaraki Pharmaceutical product Type distributing & Paid nursing home with care service manufacturing facility Land Tenure Freehold Freehold 50 years Land Area (sq m) 8,449 1,653 3,051 Net Lettable Area (sq m) 3,240 3,
Slide 33: Our Portfolio - Japan
Our Portfolio - Japan Senior Chonaikai Himawari Home Property Palmary Inn Akashi Palmary Inn Suma Makuhari Kan Kamakura Type Paid nursing home with care service Land Tenure Freehold Freehold Freehold Freehold Land Area (sq m) 5,891 2,676 2,853 1,307 Net Lettable Area (sq m) 6,562 4,539 4,361 1,689 N
Slide 34: Our Portfolio - Japan
Our Portfolio - Japan Smiling Home Medis Fureai no sono Smiling Home Medis Property Musashi Urawa Nerima Takanodai Koshigaya Gamo Type Paid nursing home with care service Land Tenure Freehold Land Area (sq m) 802 2,282 1,993 Net Lettable Area (sq m) 1,603 2,526 3,824 Number of Units (Rooms) 44 64 10
Slide 35: Our Portfolio - Japan
Our Portfolio - Japan Supercourt Takaishi- Maison de Centenaire Property Amille Nakasyo Supercourt Kadoma Hagoromo Ishizugawa Type Paid nursing home with care service Land Tenure Freehold 50 years 30 years Freehold Land Area (sq m) 2,900.58 1,517.78 2,009.95 1,111.05 Net Lettable Area (sq m) 3,259 2
Slide 36: Our Portfolio - Japan
Our Portfolio - Japan Maison de Centenaire Fiore Senior Residence Iyashi no Takatsuki Property Hapine Fukuoka Noke Haruki Hirakata Kan Type Paid nursing home with care service Land Tenure Freehold Freehold Freehold Freehold Land Area (sq m) 800.94 1,396.12 727.49 2,023.07 Net Lettable Area (sq m) 1,
Slide 37: Our Portfolio (Summary)
Our Portfolio (Summary) Portfolio Singapore Japan Total 3 Hospitals & medical center, 17 1 pharmaceutical product nursing homes and 1 Type Hospital and Medical Centre distribution & manufacturing pharmaceutical product facility and 17 nursing homes distributing & manufacturing facility Land Tenure 3
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Parkway Life Real Estate Investment Trust — FY2009 Earnings Presentation on 6ix