Parkway Life Real Estate Investment Trust · SGX:C2PU
Parkway Life Real Estate Investment Trust — Q1 2009 Earnings Presentation
32 slides from Parkway Life Real Estate Investment Trust's earnings presentation, May 7, 2009
Slide 1: Q1 2009 Results Presentation
(“PLife REIT”) Q1 2009 Results Presentation 7 May 2009
Slide 2: Disclaimer
Disclaimer This Presentation is focused on comparing actual results for the period from 1 January 2009 to 31 March 2009 (“Q1 2009”) versus actual results for the period from 1 January 2008 to 31 March 2008 (“Q1 2008”). This shall be read in conjunction with PLife REIT 2009 First Quarter Unaudited
Slide 3: Agenda
Agenda 1 Q1 2009 Highlights 2 Financial Highlights 3 Capital and Financial Management 4 Appendix A I Our Growth Strategy II Portfolio Highlights 3
Slide 4: Q1 2009 Highlights
Q1 2009 Highlights o-*, = ParkwayLife REIT 4 EEE)
Slide 5: Q1 2009 Highlights: Strong Revenue & DPU growth
Q1 2009 Highlights 3 Strong Revenue & DPU growth ― Gross revenue grew by 37.6% ― Net property income grew by 36.6% ― DPU at 1.89 cents; continued DPU growth at a rate of 18.9% since IPO 3 ― 93%¹ of total portfolio with downside revenue protection Downside revenue protection – favourable lease struct
Slide 6: Q1 2009 Highlights (cont'd): Strong Balance Sheet
Q1 2009 Highlights (cont’d) 3 Strong Balance Sheet ― Low gearing of 23.0% ― No immediate refinancing risks, existing debt has a weighted average term to maturity of 2.4 years ― Interest rate risk and foreign currency risk fully hedged for 3 years and 5 years respectively 3 100% distribution policy i
Slide 7: Financial Highlights
Financial Highlights S. = | ParkwayLife REIT 7 Ee)
Slide 8: Strong Revenue and DPU Growth
Strong Revenue and DPU Growth Revenue grew by 37.6% to $16.3 million DPU grew by 16.6% to $11.4 million Revenue (S$’000) Distributable Income (S$’000) +37.6% +16.6% 8
Slide 9: Strong Revenue & DPU Growth (cont'd)
Strong Revenue & DPU Growth (cont’d) DPU grew by 16.6% to 1.89 cents Consolidated Income Statement Year-on-Year (Actual) Variance (S$’000) Q1 2009 Q1 2008 % Gross Rental Revenue 16,338 11,874 37.6 Net Property Income 15,177 11,112 36.6 Income Available for Distribution 11,392 9,772 16.6 Available
Slide 10: NPI Grew Strongly by 36.6%
NPI Grew Strongly by 36.6% Increase in NPI is due to: ¾ Upward rent revision of Spore hospitals by 6.25%; and ¾ Rent contributions from Japan properties +36.6% 10
Slide 11: Strong DPU Growth of 18.9%
Strong DPU Growth of 18.9% DPU has grown steadily from 1.59 cents to 1.89 cents, at a growth rate of 18.9% since IPO DPU (S$ cents) +18.9% 11
Slide 12: Attractive Yield of 10%
Attractive Yield of 10% 790bps higher than 10-yr Singapore Government Bond 940 bps higher than fixed deposit rates Defensive nature of PLife REIT adds on to the attractiveness of 10.0% yield 40% 34.5% 30% 20% 11.4% 10.0% 7.1% 790 bps 940 bps 10% 2.1% 0.6% 0% SREIT SREIT Wt. SREIT PLife 10Y Gov
Slide 13: Unit Price Relative Performance
Unit Price Relative Performance PLife REIT’s unit price has outperformed the STI Index and S-REIT consistently S-REIT -48.6% STI -50.9% PLife REIT-31.5% 13
Slide 14: Capital and Financial Management
Capital and Financial Management --e, S. = | ParkwayLife REIT 14 EEE)
Slide 15: Strong Balance Sheet
Strong Balance Sheet Low gearing of 23.0% As at 31 As at 31 Consolidated Balance Sheet March December Variance Commentary (in S$’000) 2009 2008 Decrease is mainly due Total Assets 1,074,064 1,080,566 to depreciation of Japanese Yen. Decrease is mainly due Total Debt 247,506 252,150 to depreciation
Slide 16: Debt Maturity Profile
Debt Maturity Profile No immediate refinancing risks until 2nd half of 2010 Spore Dollar due H2 2010 Japanese Yen S$34.0 due H2 2011 (14%) S$213.5 (86%) Drawn down committed term loan Interest rate fixed for 100% of debt and revolving credit facilities with Effective Borrowing Rate of 2.89%
Slide 17: Strong Debt Headroom
Strong Debt Headroom Debt headroom of $303.5m and $992.3m before reaching 40% and 60% gearing respectively Provides flexibility and capacity for opportunistic buy Assets (S$m) Additional Debt Capacity 31 Mar 09 balance 17
Slide 18: Distribution Details
Distribution Details Distribution per unit Stock Counter Distribution Period (Cents) PLife REIT 01 January 2009 to 31 March 2009 1.89 Distribution Timetable Ex-Date: 13 May 2009, 9.00am (Units will be traded ex-date) Books Closure Date: 15 May 2009 at 5pm Distribution payment Date: 11 June 2009 18
Slide 19: Appendix A
o-*, = ParkwayLife REIT 19 EEE)
Slide 20: Our Growth Strategy
Our Growth Strategy S. = | ParkwayLife REIT 20 Ee)
Slide 21: 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 • Pro-active asset management strategy • Acquisition focused on • Acquisition focused on acquiring mature
Slide 22: Market Conditions: Global Financial Crisis
Market Conditions: Global Financial Crisis Adapting acquisition strategy to market conditions • Credit crisis in the US causing recession in Economic Opportunistic acquisitions – the US and the rest of the world target higher yielding Challenges • Falling real estate and equity prices curtail assets
Slide 23: 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 24: Portfolio Highlights
Portfolio Highlights o-*, So’ ParkwayLife REIT 24 Ee)
Slide 25: ParkwayLife REIT – Portfolio
ParkwayLife REIT – Portfolio JAPAN Largest Healthcare REIT in Asian Region with an enlarged portfolio of S$1.05 billion 1 SINGAPORE P-Life Matsudo Bon Sejour Shin-Yamashita Bon Sejour Palmary Inn Ibaraki Akashi Mount Elizabeth Hospital Palmary Inn Senior Chonaikai Suma Makuhari Kan Gleneagles Hospit
Slide 26: Competitive Strengths of the Properties
Competitive Strengths of the Properties • Weighted average lease term to expiry of 13.65 years1 • Rent review provision for • 100.0% committed 97.9% of the leases (by NLA) occupancy • Unique rent review formula pegged to CPI + 1% for the Stability And Singapore Hospital Properties; Sustainability wh
Slide 27: Portfolio Key Statistics
Portfolio Key Statistics Properties Singapore 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 Kamakura, Smiling Home Medis Musashi
Slide 28: Our Initial Portfolio - Singapore
Our Initial Portfolio - Singapore Property Mount Elizabeth Hospital Gleneagles Hospital East Shore Hospital Total (Singapore) Type Hospital and Medical Centre Land Tenure 67 years 75 years 75 years Average 72 years Gross Floor Area (sq m) 1 58,139 49,003 10,993 118,135 Licensed Beds 2 505 380 154 1,
Slide 29: Our Japan Portfolio
Our Japan Portfolio 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 3,27
Slide 30: Our Japan Portfolio (cont'd)
Our Japan Portfolio (cont’d) 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
Slide 31: Our Japan Portfolio (cont'd)
Our Japan Portfolio (cont’d) Smiling Home Medis Fureai no sono Smiling Home Medis Property Total (Japan) Musashi Urawa Nerima Takanodai Koshigaya Gamo 1 distribution facility & Type Paid nursing home with care service 9 nursing homes Land Tenure Freehold - Land Area (sq m) 802 2,282 1,993 30,957 Net
Slide 32: co” ParkwayLife REIT
co” ParkwayLife REIT
Parkway Life Real Estate Investment Trust — Q1 2009 Earnings Presentation on 6ix