Parkway Life Real Estate Investment Trust · SGX:C2PU
Parkway Life Real Estate Investment Trust — Q2 2009 Earnings Presentation
42 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
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
Slide 22: First Listed Singapore Entity Offered Revolving Credit Islamic Financing
The 1st Listed Singapore Entity Offered Revolving Credit Islamic Financing 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 in achieving other financing sources Firs
Slide 23: Lengthening Debt Maturity
Lengthening Debt Maturity Maturity of the S$34mil loan can be extended to H2 2012 Japanese Yen Spore Dollar due H2 2011 due H2 2010 S$207.9mil S$34.0 mil (86%) (14%) - Can be refinanced by S$50mil 3-year Islamic RCF With this, the weighted average Current Effective All-In Borrowing term to mat
Slide 24: Strong Debt Headroom
Strong Debt Headroom Debt headroom of $308.3m and $996.0m before reaching 40% and 60% gearing respectively Assets (S$m) 1500 1000 996.0 500 308.3 111.8 241.9 241.9 241.9 241.9 0 30Jun09 30%gearing 40%gearing 60% maximum gearing Additional Debt Capacity 30 June 09 balance 24
Slide 25: Sharpened Focus on Investment and Asset Management
Sharpened Focus on Investment and Asset Management - ParkwayLife REIT
Slide 26: PLife REIT Gains New Wings in Investment and Asset Management
PLife REIT Gains New Wings in Investment and Asset Management Poised for growth with sharpened focus on investment and asset management Internal reorganisation to sharpen focus on both investment and asset management, to bring PLife REIT to the next level of growth Chief Executive Officer Yong Yean
Slide 27: PLife REIT Gains New Wings in Investment and Asset Management (cont'd)
PLife REIT Gains New Wings in Investment and Asset Management (cont’d) VP Investment, Mr. Tan Seak Sze will lead the Investment team to focus on growing PLife REIT via acquisitions, by strengthening the investment pipelines to leverage on the recovery of the market, and to make yield accretive acqui
Slide 28: P-Life Matsudo AEI - At a glance
P-Life Matsudo AEI - At a glance… Conversion of Utility Space to Device Manufacturing Room Area Approx. 337 sq m Capex Approx.JPY160.1 mil (S$2.56 mil) Gross Increase by 19.4% Revenue ROI 17.4% 1st Storey Plan Conversion works is to cater to the sub-lessee, Inverness Medical Japan Co Ltd, manufactur
Slide 29: Maiden Asset Enhancement Initiatives at P-Life Matsudo
Maiden Asset Enhancement Initiatives (“AEI”) at P-Life Matsudo 9 Low Capital Outlay of approx. JPY160.1mil (S$2.56mil)¹ 9 Attractive returns from both financial and non-financial perspectives 19.4% increase in total gross rent for P-Life Matsudo wef 1 Jul 09 to 13 Dec 2016 Attractive ROI at 17.4
Slide 30: Appendix A - Our Growth Strategy
Appendix A - Our Growth Strategy - ParkwayLife REIT
Slide 31: 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 32: 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 the US and the rest of the world Target higher yielding Challenges • Falling real estate and equity prices curtail assets consumption • Credit crisis
Slide 33: 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 34: Appendix B - Portfolio Highlights
Appendix B - Portfolio Highlights Soe” | ParkwayLife REIT
Slide 35: 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 36: Competitive Strengths of the Properties
Competitive Strengths of the Properties Long Term Master Leases Enhances Portfolio Resilience • Weighted average lease term to expiry of 13.40 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 Stabilit
Slide 37: Portfolio Key Statistics (as at 30 June 2009)
Portfolio Key Statistics (as at 30 June 2009) 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, Smili
Slide 38: 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 39: 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 40: 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 41: 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 42: TORRE? =a
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