Singapore Exchange Ltd. · SGX:S68
Singapore Exchange — Parkway Life REIT — FY2020 Earnings Presentation
44 slides from Singapore Exchange's earnings presentation, Jan 25, 2021
Slide 1: Full Year 2020 Results Presentation
(“PLife REIT”) FULL YEAR 2020 RESULTS PRESENTATION 25 JANUARY 2021
Slide 2: Disclaimer
Disclaimer This Presentation is focused on comparing actual results for the period from 1 October 2020 to 31 December 2020 (“4Q 2020”) versus the period from 1 October 2019 to 31 December 2019 (“4Q 2019”). This shall be read in conjunction with PLife REIT 2020 Full Year Unaudited Financial Stateme
Slide 3: Agenda
Agenda 1 4Q and Full Year 2020 Key Highlights 2 Financial Review 3 Capital and Financial Management 4 Appendix – Portfolio Highlights 3
Slide 4: 4Q and Full Year 2020 Key Highlights
(“PLife REIT”) 1. 4Q and Full Year 2020 Key Highlights 4
Slide 5: 4Q and Full Year 2020 Key Highlights
4Q and Full Year 2020 Key Highlights Steady DPU Growth Since IPO ― DPU for 4Q 2020 up 6.7% (4Q Y-O-Y) to 3.57 cents ― Full year DPU growth of 4.5% Y-O-Y to 13.79 cents ― Strong growth of 118.2% since IPO Strengthening of Japan Portfolio ― Completed the acquisition of a nursing home on 18 Decembe
Slide 6: 4Q and Full Year 2020 Key Highlights (cont'd)
4Q and Full Year 2020 Key Highlights (cont’d) No Long-Term Debt Refinancing Need till 2022 ― Put in place 6-year committed loan facilities to term out two loans upon their maturity in June 2021 ― Extended the maturity of the remaining loan facility due in 2021 ― Debt maturity profile extended to 2
Slide 7: Financial Review
(“PLife REIT”) 2. Financial Review 7
Slide 8: Performance at a Glance
Performance at a Glance 4Q 2020 DPU grew by 6.7% to 3.57 cents (S$’000) 4Q 2020 4Q 2019 % FY 2020 FY 2019 % Gross Revenue 30,566 28,039 9.0 120,892 115,222 4.9 Net Property Income 28,459 27,323 4.2 112,528 108,225 4.0 Amount available for distribution to Unitholders1 20,687 20,245 2.2 83,887 79,82
Slide 9: Revenue Growth
Revenue Growth Revenue grew by 9.0% and 4.9% to $30.6 million and $120.9 million for 4Q 2020 and FY2020 respectively. 4Q Revenue (S$’000) Full Year Revenue (S$’000) +9.0% +4.9% 9
Slide 10: Net Property Income (NPI) Growth
Net Property Income (NPI) Growth Increase in NPI is largely due to: Rent contribution from properties acquired in 4Q 2019 and 4Q 2020 Upward minimum guarantee rent revision of S’pore hospitals by 1.17%1 4Q NPI Full Year NPI +4.0% +4.2% Note: 1. In 14th year of lease commencing 23 August 2020 t
Slide 11: Distributable Income to Unitholders
Distributable Income to Unitholders DI grew by 6.7% and 4.5% to $21.6 million and $83.4 million for 4Q 2020 and FY2020 respectively. 4Q DI (S$’000) Full Year DI (S$’000) +4.5% +6.7% 11
Slide 12: Un-interrupted Recurring DPU Growth Since IPO
Un-interrupted Recurring DPU Growth Since IPO DPU has grown steadily at a rate of 118.2%1 since IPO DPU (cents) +118.2% 13.29 13.35 Note: 1. Since IPO till YTD 4Q 2020 2. Since FY2012, S$3.0 million per annum of amount available for distribution has been retained for capital expenditure 3. One-off
Slide 13: Attractive Spread Above 10-yr SGS Yield
Attractive Spread Above 10-yr SGS Yield 272 bps higher than 10-yr Singapore Government Securities (“SGS”) 266 bps higher than fixed deposit rates Defensive nature of PLife REIT adds to the attractive yield of 3.56%1 Note: 1. Distribution yield based on the unit price of S$3.87 as at 31 Decembe
Slide 14: Unit Price Relative Performance
Unit Price Relative Performance On 18 September 2020, PLife REIT was included in the FTSE EPRA NAREIT Global Developed Index after the close of business. PLife REIT’s unit price performance has outperformed both S-REIT Index and STI Index as at 31 December 2020 14
Slide 15: Distribution Details
Distribution Details Distribution per unit Stock Counter Distribution Period (cents) ParkwayLife REIT 01 October 2020 to 31 December 2020 3.57 Distribution Timetable Ex-Date: 01 February 2021 (Units will be traded ex-date) Books Closure Date: 02 February 2021 at 5pm Distribution Payment Date: 26 Feb
Slide 16: Capital and Financial Management
(“PLife REIT”) 3. Capital and Financial Management 16
Slide 17: Healthy Balance Sheet
Healthy Balance Sheet Healthy gearing of 38.5% as at 31 December 2020 Consolidated Balance As at As at Sheet (in S$’000) 31 December 2020 31 December 2019 Total Assets 2,066,971 2,003,027 Total Debts¹ 796,039 743,881 Unitholders’ Funds 1,183,615 1,181,848 Gearing2 (%) 38.5 37.1 Note: 1. Total Debt
Slide 18: Debt Maturity Profile - As at 31 December 2020
Debt Maturity Profile1 - As at 31 December 2020 Extended the weighted average term to maturity from 2.4 years to 3.5 years post refinancing Current effective all-in cost of debt of approximately 0.53% Interest cover ratio of 18.1 times About 87% of interest rate exposure is hedged Note: 1. E
Slide 19: Debt Headroom
Debt Headroom Debt headroom of $243.8 million and $474.9 million before reaching 45% and 50%1 gearing respectively. 1,500 Asset (S$’M) 1,000 474.9 243.8 500 796.0 796.0 796.0 38.5% 45% 50% Gearing Gearing Gearing Debt Balance as at 31 December 2020 Note: 1. On 16 April 2020, the MAS has raised the
Slide 20: Appendix – Portfolio Highlights
(“PLife REIT”) 4. Appendix – Portfolio Highlights 20
Slide 21: PLife REIT Portfolio
PLife REIT Portfolio One of the largest listed healthcare REITs in Asia with an enlarged portfolio of S$2.02 billion1 Core Strengths: Defensive long term lease structure with downside protection Stable income stream supported by regular rental revision Diversified portfolio of high quality and
Slide 22: Our Properties - Singapore
Our Properties - Singapore 1 A portfolio of 3 strategically-located world-class local private hospitals worth S$1.21 billion Master Lease with Parkway Hospitals Singapore Pte. Ltd., a wholly owned subsidiary of Parkway Pantai Limited (“Parkway”), the largest private healthcare operator in Singap
Slide 23: Our Properties - Japan
Our Properties - Japan A portfolio of 50 high quality healthcare 1 properties worth S$799.8 million , comprising: 1 pharmaceutical product distributing and manufacturing facility (P-Life Matsudo) P-Life Matsudo 49 private nursing homes Favorable lease structure with 28 lessees Comply with
Slide 24: Our Properties - Japan
1 property with Our Properties - Japan annual revision linked to Japan CPI; if CPI is negative, Unique features of our Japan assets: rent will remain unchanged 2.5% of Japan Long term lease Gross Revenue1 structure with weighted “Up only” average lease term to P-Life Matsudo Rent Review 41 propert
Slide 25: Diversified Nursing Home Operators
Diversified Nursing Home Operators 27 high quality nursing Medical Corp Shojin‐kai, Monthly Rental Contribution 2.3% As at 31 December 2020 home operators K.K Silver Heights Sapporo, 2.3% K.K. M.C.S., Diversifies tenant risk 2.4% Medical Corp Misaki‐kai, Others (operators 2.2% contributing less
Slide 26: Introduction to Japan Properties
Introduction to Japan Properties Why Japan nursing homes? Acute aging population in Japan 1 in 3 Japanese to be over 65 years old by 2050 Well established laws and regulations Diversified rental sources complement Singapore hospital revenues to enhance revenue stability of overall portfolio
Slide 27: Our Properties - Malaysia
Our Properties - Malaysia 1 A portfolio of high quality healthcare assets worth S$6.2 million within MOB 2 Specialist Clinics , next to the 369-bed Gleneagles Hospital Kuala Lumpur Note: 1. Based on latest appraised values 2. Formerly known as Gleneagles Intan Medical Centre Kuala Lumpur 27
Slide 28: Our Portfolio - Summary
Our Portfolio - Summary Portfolio Singapore Japan Malaysia Total 4 Hospitals & medical centre; 49 nursing homes; 49 nursing homes; 3 Hospitals & Medical 1 pharmaceutical product Type Medical Centre 1 pharmaceutical product Centres distribution & distributing & manufacturing manufacturing facility fa
Slide 29: Our Portfolio - Singapore
Our Portfolio - Singapore Property Mount Elizabeth Hospital Gleneagles Hospital Parkway East Hospital Type Hospital and Medical Centre Land Tenure 67 years 75 years 75 years Floor Area (sq m) 1 58,139 49,003 10,994 Beds 2 345 257 106 Operating theatres 2,3 13 12 5 Strata Units / Car Park Lots 30 str
Slide 30: Our Portfolio - Japan
Our Portfolio - Japan Bon Sejour Yokohama Property P-Life Matsudo Palmary Inn Akashi Shin-Yamashita Pharmaceutical product distributing & Type Paid nursing home with care service manufacturing facility Land Tenure Freehold Freehold Freehold Land Area (sq m) 8,450 1,653 5,891 Floor Area (sq m) 3,240
Slide 31: Our Portfolio - Japan
Our Portfolio - Japan Senior Chonaikai Smiling Home Medis Property Palmary Inn Suma Musashi Urawa Makuhari Kan Type Paid nursing home with care service Land Tenure Freehold Freehold Freehold Land Area (sq m) 2,676 2,853 802 Floor Area (sq m) 4,539 4,361 1,603 Number of Units (Rooms) 59 108 2 44 1992
Slide 32: Our Portfolio - Japan
Our Portfolio - Japan Smiling Home Medis Maison de Centenaire Property Sompo no Ie Nakasyo3 Koshigaya Gamo Ishizugawa Type Paid nursing home with care service Land Tenure Freehold Freehold Freehold Land Area (sq m) 1,993 2,901 1,111 Floor Area (sq m) 3,834 3,231 2,129 Number of Units (Rooms) 100 75
Slide 33: Our Portfolio - Japan
Our Portfolio - Japan Maison de Centenaire Hapine Fukuoka Fiore Senior Iyashi no Property Haruki Noke Residence Hirakata Takatsuki Kan Type Paid nursing home with care service Land Tenure Freehold Freehold Freehold Freehold Land Area (sq m) 801 1,396 727 2,023 Floor Area (sq m) 1,263 2,912 1,155 3,9
Slide 34: Our Portfolio - Japan
Our Portfolio - Japan Property Sawayaka Obatake Ichibankan Sawayaka Obatake Nibankan Sawayaka Shinmojikan Paid nursing home Short stay / Paid nursing home Type with care service Day care facility with care service Land Tenure Freehold Freehold Freehold Land Area (sq m) 1,769 1,047 2,395 Floor Area (
Slide 35: Our Portfolio - Japan
Our Portfolio - Japan Hanadama no le Property Sawayaka Nogatakan Sawayaka Sakurakan As Heim Nakaurawa Nakahara3 Type Paid nursing home with care service Land Tenure Freehold Freehold Freehold Freehold Land Area (sq m) 2,702 6,276 1,762 935 Floor Area (sq m) 3,147 5,044 2,712 1,847 Number of Units 78
Slide 36: Our Portfolio - Japan
Our Portfolio - Japan Sawayaka Property Sawayaka Fukufukukan Happy Life Toyonaka 1 Palmary Inn Shin-Kobe Higashikagurakan Type Paid nursing home with care service Land Tenure Freehold Freehold Freehold Freehold Land Area (sq m) 1,842 4,813 628 1,034 Floor Area (sq m) 3,074 5,467 1,254 3,964 Number o
Slide 37: Our Portfolio - Japan
Our Portfolio - Japan Sawayaka Mekari Property Sawayaka Seaside Toba Sawayaka Niihamakan Sawayaka Minatokan Nibankan Type Paid nursing home with care service Land Tenure Freehold Freehold Freehold Freehold Land Area (sq m) 2,803 4,197 3,551 1,354 Floor Area (sq m) 7,360 7,382 2,246 2,133 Number of U
Slide 38: Our Portfolio - Japan
Our Portfolio - Japan Maison des Centenaire Maison des Centenaire Property Sawayaka Kiyotakan Sunhill Miyako Hannan Ohhama Extended-stay lodging Paid nursing home with Type Paid nursing home with care service facility care service Land Tenure Freehold Freehold Freehold Freehold Land Area (sq m) 2,59
Slide 39: Our Portfolio - Japan
Our Portfolio - Japan Ocean View Shonan Liverari Shiroishi Hana Liverari Shiroishi Hana Property Habitation Jyosui Arasaki Ichigo-kan Nigo-kan Type Paid nursing home with care service Land Tenure Freehold Freehold Freehold Freehold Land Area (sq m) 3,259 1 3,067 628 436 Floor Area (sq m) 6,0762 5,30
Slide 40: Our Portfolio - Japan
Our Portfolio - Japan Excellent Tenpaku Silver Heights Property Sunny Spot Misono1 Habitation Hakata I, II, III Garden Hills Hitsujigaoka Type Group Home Paid nursing home with care service Land Tenure Freehold Freehold Freehold Freehold Land Area (sq m) 429 15,336 6,593 5,694 Floor Area (sq m) 724
Slide 41: Our Portfolio - Japan
Our Portfolio - Japan Property Kikuya Warakuen Sanko Habitation Wakaba1 Habitation Hakusho2 Type Paid nursing home with care service Land Tenure Freehold Freehold Freehold Freehold Land Area (sq m) 4,905 1,680 6,574 15,706 Floor Area (sq m) 3,641 2,018 5,431 6,959 Number of Units (Rooms) 70 53 135 1
Slide 42: Our Portfolio - Japan
Our Portfolio - Japan Konosu Nursing Home Property Group Home Hakusho Habitation Kamagaya Kyoseien Paid nursing home with care Type Group Home Nursing Rehabilitation Facility service Land Tenure Freehold Freehold Freehold Land Area (sq m) 2,859 8,715 1,996 Floor Area (sq m) 416 5,634 5,118 Number of
Slide 43: Our Portfolio - Japan
Our Portfolio - Japan Property Haru no Sato Hodaka no Niwa Orange no Sato Type Nursing Rehabilitation Facility Land Tenure Freehold Freehold Leasehold2 Land Area (sq m) 4,241 39,955 2,377 Floor Area (sq m) 3,568 6,117 4,005 Number of Units (Rooms) 100 100 98 2000; Year of Completion Additional works
Slide 44: Our Portfolio - Malaysia
Our Portfolio - Malaysia Property MOB Specialist Clinics1, Kuala Lumpur Type Medical Centre Land Tenure Freehold Land Area (sq m) 3,450 Floor Area (sq m)2 2,444 Number of Car Park Lots 69, all of which owned by Parkway Life REIT Year of Completion 1999 Committed Occupancy 31% (excluding car park) 4