Parkway Life Real Estate Investment Trust · SGX:C2PU
Parkway Life Real Estate Investment Trust — Q2 2009 Earnings Presentation
21 slides from Parkway Life Real Estate Investment Trust's earnings presentation, Aug 6, 2009
Slide 1: Q2 2009 Results Presentation
(“PLife REIT”) Q2 2009 Results Presentation 6 August 2009
Slide 2: Disclaimer
Disclaimer This Presentation is focused on comparing actual results for the period from 1 April 2009 to 30 June 2009 (“Q2 2009”) versus the period from 1 April 2008 to 30 June 2008 (“Q2 2008”) and for the period from 1 January 2009 to 30 June 2009 (“H1 2009”) versus the period from 1 January 2008
Slide 3: Agenda
Agenda 1 Q2 2009 Highlights 2 Financial Highlights 3 Singapore Hospitals Annual Rent Review 4 Capital and Financial Management 5 Sharpened Focus on Investment and Asset Management I Appendix A - Growth Strategy II Appendix B - Portfolio Highlights 3
Slide 4: Q2 2009 Highlights
a 2 ParkwayLife REIT 4
Slide 5: Q2 2009 Highlights: Strong Revenue & DPU growth
Q2 2009 Highlights 3 Strong Revenue & DPU growth Gross revenue grew by 28.9% (Q2 Y-O-Y) and 33.1% (H1 Y-O-Y) Net property income grew by 27.9% (Q2 Y-O-Y) and 32.1% (H1 Y-O-Y) DPU at 1.89 cents; growth at a rate of 18.9% since IPO 3 With CPI growth of 3.36%, 3 Year Minimum Guaranteed Rent set to incr
Slide 6: Q2 2009 Highlights (cont'd): The Financing
Q2 2009 Highlights (cont’d) 3 TheFinancing st 1 listed entity in Singapore offered Revolving Credit Islamic Offered S$50mil 3-year Revolving Murabaha Facility (similar to revolving credit facility of a traditional loan) with Islamic Bank of Asia (“IBA”) Showcased PLife REIT’s innovation and ability
Slide 7: Maiden Asset Enhancement Initiatives at P-Life Matsudo
Q2 2009 Highlights (cont’d) 3 Maiden Asset Enhancement Initiatives (“AEI”) at P-Life Matsudo Demonstration of PLife REIT’s asset enhancement capabilities, and the ability to unlock portfolio value Conversion of existing utility space to a device manufacturing room Attractive ROI of 17.4%, with a bre
Slide 8: 8
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Slide 9: Strong Revenue Growth
Strong Revenue Growth Q2 2009 Revenue grew by 28.9% to $16.1 million H1 2009 Revenue grew by 33.1% to $32.4 million Revenue (S$’000) $ ) Revenue (S$’000) +28.9% 16 16,099 +33.1% 32,437 32 36,000 18,000 12,488 30,000 24,362 12,000 24,000 18,000 6,000 12,000 6,000 0 0 Q22008 Q22009 H12008 H12009 9
Slide 10: Strong NPI Growth
Strong NPI Growth Increase in NPI is due to: ¾ Rent contributions from Japan properties; and ¾ Upward rent revision of Spore hospitals by 6.25%1 15.0 30.2 32.0 16.0 +27.9% 11.7 11. 28.0 +32.1% 22.8 12.0 24.0 6.8 7.3 20.0 14.6 8.0 13.7 3.8 4.0 3.1 16.0 12.0 7.9 4.0 7.5 0.6 0.6 0.5 6.4 8.0 0.0 4.0 1
Slide 11: Strong Distributable Income Growth
Strong Distributable Income Growth Q2 2009 Distributable Income grew by 13.7% to $11.4 million H1 2009 Distributable Income grew by 15.1% to $22.8 million Distributable income (S$’000) Distributable Income (S$’000) +13.7% 11,382 +15.1% 22,774 2 22, 1 11, 12,000 10,009 24,000 19,781 21,000 10,000
Slide 12: Strong Revenue and DPU Growth
Strong Revenue and DPU Growth Q2 2009 DPU grew by 13.7% to 1.89 cents H1 2009 DPU grew by 15.1% to 3.78 cents Consolidated Income Year-on-Year Year –on-Year Variance Variance Statement (Actual) (Actual) Q2 Q2 (S$’000) % H1 2009 H1 2008 % 2009 2008 Gross Rental Revenue 16,099 12,488 28.9 32,437 2
Slide 13: 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) 2.0 1.89 1.89 +18.9% 1.9 1 1.84 1.8 1.71 1.66 1.7 1 62 1.62 1.59 1.6 1.5 Q42007 Q12008 Q22008 Q32008 Q42008 Q12009 Q22009 13
Slide 14: Attractive Yield of 8.2%
Attractive Yield of 8.2% 557bps higher than 10-yr Singapore Government Bond 746 bps higher than fixed deposit rates Defensive nature of PLife REIT adds on to the attractiveness of 8.2% yield1 22.4% 25% 20% 15% 8.7% 8.2% 10% 5.6% 557 bps 746 bps 2.6% 5% 0.7% 0% SREIT SREIT SREIT PLife 10Y Fixed
Slide 15: Unit Price Relative Performance
Unit Price Relative Performance PLife REIT’s unit price has outperformed the STI Index and S-REIT consistently 115.0 S-REIT -25.98% 105.0 STI -19.73% 95.0 PLife REIT-18.86% 85.0 75.0 65.0 55.0 45.0 35.0 25.0 9 8 8 8 8 08 09 9 09 8 8 09 9 v0 r0 0 c 0 t0 l0 l0 g0 0 p b n n ar ay Ju Ju Oc Ap No De Se F
Slide 16: Strong Balance Sheet
Strong Balance Sheet Low gearing of 22.7% As at 30 As at 31 Consolidated Balance Sheet June December Variance Commentary (in S$’000) 2009 2008 Decrease is mainly due Total Assets 1,067,165 1,080,566 to depreciation of Japanese Yen. Decrease is mainly due Total Debt 241,905 252,150 to depreciation
Slide 17: Distribution Details
Distribution Details Distribution per unit Stock Counter Distribution Period (Cents) PLife REIT 01 April 2009 to 30 June 2009 1.89 Distribution Timetable Ex-Date: 13 August 2009 (Units will be traded ex-date) Books Closure Date: 17 August 2009 at 5pm Distribution Payment Date: 11 September 2009 17
Slide 18: Singapore Hospitals Annual Rent Review
Singapore Hospitals Annual Rent Review Se” | ParkwayLife REIT
Slide 19: Poised to Enjoy Strong Growth in Minimum Guaranteed Rent from the Singapore Hospitals
Poised to Enjoy Strong Growth in Minimum Guaranteed Rent from the Singapore Hospitals Principal Terms of Master Lease Master Lessee Parkway Hospitals Singapore Pte. Ltd. (“PH”) Term 15 + 15 years wef 23 August 2007 Annual Rent Higher of: Escalation (i) Base Rent (S$30.0 million) + Variable Rent (3.8
Slide 20: Capital and Financial Management
Capital and Financial Management Se” | ParkwayLife REIT
Slide 21: Availability of Ample Funding Resources
Availability of Ample Funding Resources Overall Unutilised Funding Sources Conventional/Traditional Facilities Islamic Facilities Bank Bilateral Facilities Debt Capital Markets Bank Murabaha Facilities • S$100mil multi-currency • S$500mil multi-currency • S$50mil 3-year Revolving RCF (committed) MTN
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