Parkway Life Real Estate Investment Trust · SGX:C2PU
Parkway Life Real Estate Investment Trust — Shareholder Meeting (April 2019)
22 slides from Parkway Life Real Estate Investment Trust's shareholder meeting presentation, Apr 26, 2019
Slide 1: 10th Annual General Meeting
(“PLife REIT”) 10 th Annual General Meeting 26 April 2019
Slide 2: Disclaimer
PARKWAY LIFE REIT – AGM – FY2018 DISCLAIMER This Presentation is focused on comparing actual results for the period from 1 January 2018 to 31 December 2018 (“2018”) versus the period from 1 January 2017 to 31 December 2017 (“2017”). This shall be read in conjunction with PLife REIT Annual Report 201
Slide 3: Agenda
PARKWAY LIFE REIT – AGM – FY2018 AGENDA 1. Financial Performance 2. Investment & Asset Management 3. Capital Management 4. Overall Portfolio Review 3
Slide 4: Financial Performance
PARKWAY LIFE REIT – AGM – FY2018 FINANCIAL PERFORMANCE
Slide 5: Financial Performance
PARKWAY LIFE REIT – AGM – FY2018 FINANCIAL PERFORMANCE (S$‘000) Gross Revenue Net Property Income 2018 112,838 2018 105,404 2017 109,881 2017 102,649 2.7% 2.7% Distributable Income to Unitholders Recurring Distributable Income 2018 77,897 2017 2018 77,897 2017 80,753 2016 2017 75,363* 3.4% 3.5% *Exc
Slide 6: Financial Performance: DPU
PARKWAY LIFE REIT – AGM – FY2018 FINANCIAL PERFORMANCE DPU (cents) 2017 2018 12.87 2016 2017 12.46 3.4% *Excludes one-off divestment gain1 of $5.39M 1 In relation to the divestment of four Japan properties as announced on 22 December 2016. Divestment gain (after tax) of S$5,390,000 (0.89 cents) 6 wa
Slide 7: Un-interrupted Recurring DPU Growth Since IPO
PARKWAY LIFE REIT – AGM – FY2018 UN-INTERRUPTED RECURRING DPU GROWTH SINCE IPO DPU (cents) 14 3 12.87 +103.6% 2 12.12 12.46 12 11.52 11.79 10.75 10.311 10 9.6 8.79 7.74 8 6.83 6.32 6 4 2 0 FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 (annualised) • Steady DPU g
Slide 8: Strong Total Return Since IPO
PARKWAY LIFE REIT – AGM – FY2018 STRONG TOTAL RETURN SINCE IPO Total DPU received since IPO $1.1944 Total return since IPO: 221% Unit price as at 31 March 2019 $2.92 IPO unit price $1.28 At Listing As at 31 March 2019 The total return of 221% on invested equity was contributed by: • appreciation of
Slide 9: Investment and Asset Management
PARKWAY LIFE REIT – AGM – FY2018 INVESTMENT AND ASSET MANAGEMENT
Slide 10: Deepened Footprint in Japan (Feb'18)
PARKWAY LIFE REIT – AGM – FY2018 DEEPENED FOOTPRINT IN JAPAN (Feb’18) Acquired a nursing DPU yield-accretive rehabilitation facility in Japan 6.7% acquisition with net property yield of 6.7% Contributed to 26% of the 26% DPU growth in FY2018 7.4% Discount to Valuation Saitama Japan Portfolio: 46 pro
Slide 11: Proactive Asset Management (Feb'18)
PARKWAY LIFE REIT – AGM – FY2018 PROACTIVE ASSET MANAGEMENT (Feb’18) Completed 2 AEIs Conversion of existing lighting system (Asset Enhancement Initiative) to a full energy efficient LED system Replacement of an existing air conditioning system to energy efficient multi-split packaged air conditioni
Slide 12: Organic Growth in Singapore Portfolio
PARKWAY LIFE REIT – AGM – FY2018 ORGANIC GROWTH IN SINGAPORE PORTFOLIO Rent Increase for Singapore Properties 12th year minimum guaranteed 1.38% rent for the Singapore Properties Parkway East to increase by 1.38% Hospital Commencing 23 August 2018 to 22 August 2019 under CPI + 1% rent revision formu
Slide 13: Annual Portfolio Revaluation
PARKWAY LIFE REIT – AGM – FY2018 ANNUAL PORTFOLIO REVALUATION (as at 31 December 2018) 45 nursing homes & pharmaceutical Strata-titled units 3 Hospitals 1 facility in GMCKL • Cap rates 5.25% to 5.75% • Cap rates 4.7% to 6.8% • Cap rates 5.5% to 6.0% • Discount rate 7.25% • Discount rates 4.7% to 6.6
Slide 14: Capital Management
PARKWAY LIFE REIT – AGM – FY2018 CAPITAL MANAGEMENT
Slide 15: Strengthened Financial Management
PARKWAY LIFE REIT – AGM – FY2018 STRENGTHENED FINANCIAL MANAGEMENT Achieved diversified funding sources and well-spread out debt maturity stretching up to 2024 S$Mil Debt Maturity Profile (as at 31 December 2018) • Further expanded funding 250 source by tapping the capital 201.6 markets with issuanc
Slide 16: Enhanced Interest and FX Risks Management
PARKWAY LIFE REIT – AGM – FY2018 ENHANCED INTEREST AND FX RISKS MANAGEMENT • Adopts natural hedge strategy to match assets and liabilities denominated in JPY • Extended JPY net income hedges till 1Q 2023 to mitigate against JPY currency volatility • Interest rate exposure largely hedged for next few
Slide 17: Ample Debt Headroom
PARKWAY LIFE REIT – AGM – FY2018 AMPLE DEBT HEADROOM Debt headroom of $121.5 million and $304.8 million before reaching 40.0% and 45.0% gearing respectively 1,000 304.8 121.5 Asset 500 (S$’M) 684.7 684.7 684.7 0 36.1% 40.0% 45.0% Gearing Gearing Gearing Debt Balance as at 31 December 2018 17
Slide 18: Overall Portfolio Review
PARKWAY LIFE REIT – AGM – FY2018 OVERALL PORTFOLIO REVIEW
Slide 19: Performance Review of PLife REIT
PARKWAY LIFE REIT – AGM – FY2018 PERFORMANCE REVIEW OF PLIFE REIT (as at 31 December 2018) SUSTAINABLE RETURNS 01 / Diversified Portfolio 02 / Strong Balance Sheet Gross revenue by geography1: 59.8% Singapore 0.97% Low all-in debt cost 39.8% Japan 36.1% Gearing 0.4% Malaysia Gross revenue by asset c
Slide 20: Performance Review of PLife REIT
PARKWAY LIFE REIT – AGM – FY2018 PERFORMANCE REVIEW OF PLIFE REIT (as at 31 December 2018) SUSTAINABLE RETURNS 03 / Quality Assets 04 / Robust Financial Position 100% committed occupancy for No near term refinancing needs till FY2020 Singapore and Japan assets Prudent hedging strategies Weighted ave
Slide 21: Strong Portfolio Growth
PARKWAY LIFE REIT – AGM – FY2018 STRONG PORTFOLIO GROWTH Since listing, we remain committed to cultivating an optimal portfolio for sustained growth One of Asia’s largest listed healthcare REITs by asset size 50 diversified assets Post acquisition in February 2018 S$1.86 billion Portfolio size has m
Slide 22: Thank You
PARKWAY LIFE REIT – AGM – FY2018 THANK YOU
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