Annual Reports And Related Documents

Expanding Horizons Delivering Sustainable Value

Annual Report 2024

DEAR UNITHOLDERS

In 2024, the REITs sector in Singapore remained challenging as interest rates stayed elevated. Entering into the year of 2025 and following Donald Trump's victory in the 2024 U.S. elections, the outlook for interest rates continues to be cloudy¹ as geopolitical tensions and economic uncertainties persist.

On a brighter note, PLife REIT began the year on an expanded horizon, after completing the acquisition of 11 nursing homes in France in December 2024. The acquisition marked the Group's maiden entry into Europe, the third key market after Singapore and Japan. This diversification into a new market, coupled with the long-term growth potential of the healthcare sector will pave the way for PLife REIT to deliver sustained value for our Unitholders for many years to come.

and REITs worldwide, enhancing PLife REIT's trading liquidity and visibility to investors and index funds globally.

The Group is also deeply honoured to have received several prestigious awards during the year. In September 2024, PLife REIT was recognised with the Shareholder Communications Excellence Award ("SCEA") under the REITs and Business Trusts category at the Securities Investors Association Singapore (commonly known as SIAS) Investors' Choice Awards 2024. This award celebrates excellence in investor relations, highlighting the Group's dedication to corporate transparency and accountability. It acknowledges our efforts in providing timely and accurate information to investors, helping them make well-informed investment decisions. Importantly, the award reflects our continuous commitment to fostering transparency, and engaging effectively with all stakeholders.

In addition, PLife REIT's FY2023 Annual Report was also

DEMONSTRATING RESILIENCE THROUGH named as a Platinum Winner at the renowned International UNINTERRUPTED DPU GROWTH, STRONG Hermes Creative Awards 2024.

CAPITAL PRESERVATION AND EXEMPLARY

RISK MANAGEMENT

EXPANDING HORIZONS, PORTFOLIO DIVERSIFICATION TO DELIVER SUSTAINABLE

Our mission is to create long-term value for our Unitholders. VALUE

We will remain focused on broadening our horizons and strengthening our portfolio fundamentals, financial metrics ANCHORING SINGAPORE AS THE CORE MARKET and unique value proposition to drive growth. This will ensure

our continued success as we remain vigilant in an uncertain world today.

For the financial year ended 31 December 2024 ("FY2024"), PLife REIT recorded a full year Distribution Per Unit ("DPU") of 14.92 Singapore cents. DPU increased by 1.0% year-on-year, demonstrating the resilience of its diversified portfolio and disciplined capital management. FY2024 gross revenue and Net Property Income ("NPI") have decreased by 1.5% and 1.8% respectively, driven largely by the weaker Japanese Yen and partly offset by contribution from the properties acquired in 2023 and 2024. As the REIT has hedged the net income from Japan, the drop in revenue will be compensated by foreign exchange gains from the settlement of the forward exchange contracts.

With this financial performance, PLife REIT has continuously delivered a DPU growth of 136.1% since its listing in 2007. This track record marks 17 years of uninterrupted growth in recurring DPU. Net Asset Value ("NAV") as of 31 December In 2024, PLife REIT continued its execution of Project Renaissance - a S$350 million renewal capital expenditure for Mount Elizabeth Hospital ("MEH") jointly funded with IHH Healthcare Singapore. This upgrading plan will enhance facilities and improve service offerings, as well as bolster the quality positioning of MEH. Project Renaissance is expected to be completed by the end of 2025.

Project Renaissance is part of the lease renewal arrangement for the Singapore Hospitals. PLife REIT will enjoy a guaranteed rental step-up from 2022 to 2025, followed by the annual rental review adjustment formula² which will apply for the remaining lease term till 2042. With a clear rental structure in place, the income from the Singapore Hospitals is secured with 100% committed occupancy over the long-term. As the core revenue contributing assets, the Singapore Hospitals will continue to underpin the organic growth of PLife REIT and provide a sustained quality rental income stream for PLife REIT in the long run.

2024 stands at S$2.41 per unit, compared to S$2.34 per unit EXPANDING STRATEGICALLY INTO EUROPE TO a year ago.

As a testament of its investment merits in achieving long- term growth and value for Unitholders, PLife REIT has been a component of the FTSE EPRA NAREIT Global Developed Index ("FTSE NAREIT") since September 2020. The FTSE NAREIT index tracks the performance of listed real estate companies

ENHANCE DIVERSIFICATION AND RESILIENCE

2024 was also significant for PLife REIT with its entry into Europe through the acquisition of 11 nursing homes in a sale and leaseback arrangement from Pan-European operator DomusVi for a total purchase consideration of €111.2 million3 (approximately S$159.9 million)4. The acquisition was fully

PLife REIT is strategically positioned to capitalise on the growth of the healthcare industry across Asia Pacific and Europe.

UN-INTERRUPTED RECURRING DPU GROWTH SINCE IPO (CENTS)

FY07 FY08 (Annualised) FY09

FY10

FY11

FY12

FY13

FY14

FY15

FY16

FY17

FY18

FY19

FY20

FY21

FY22 FY23

FY24

• (1) Trump's election victory puts Fed on path for fewer rate cuts, Reuters, November 2024

• (2) The annual rent review formula for FY2026 is based on the higher of {1+(CPI+1%) X Initial Rent of S$97.2 million} or {Base Rent + Variable Rent}

• (3) A rounded Purchase Price figure has been used. The exact Purchase Price is €111,241,178

• (4) Based on the exchange rate at point of acquisition

• (5) Since IPO till FY24

• (6) Since FY12, S$3.0 million per annum of amount available for distribution has been retained for capital expenditure

• (7) One-off divestment gain of 1.50 cents (S$9.11 million) relating to the divestment of seven Japan assets in December 2014 was equally distributed over the four quarters in FY15

• (8) One-off divestment gain of 0.89 cents (S$5.39 million) relating to the divestment of four Japan assets in December 2016 was equally distributed over the four quarters in FY17

CORPORATE DEVELOPMENT

financed via an Equity Fund Raising ("EFR") by way of a private placement and is both DPU and NAV per unit accretive.

The expansion of investment mandate positions PLife REIT for its next phase of growth and strategically diversifies its asset portfolio and revenue streams. While maintaining a primary focus on its core market of Singapore, this diversification strategy will not only enable it to mitigate potential country and operator-level risks but will also enable the Group to capitalise on different economic cycles and growth opportunities in each geography.

FORTIFYING JAPAN PRESENCE

The potential of Japan's aged care market is underpinned by the country's rapidly ageing population. Since entering the market in 2008, PLife REIT has leveraged on its first-mover advantage and expanded its footprint in Japan to an extensive portfolio of 60 high-quality nursing homes and care facilities across 17 prefectures today.

PLife REIT continued its expansion efforts in Japan with the acquisition of a newly built nursing home, HIBISU Higashi Sumiyoshi, in the Osaka Prefecture, for a total purchase consideration of ¥2,446.2 million (approximately S$20.7 million) in 2024. HIBISU Higashi Sumiyoshi is a freehold property that is well-located in the residential area of Osaka City and is Building-Housing Energy-efficiency Labelling System (BELS) certified. PLife REIT took over the existing master lease agreement from K.K. FDS, a strategic partner whom PLife REIT had entered into a Memorandum of Understanding on Strategic Alliance in 2023. Through this acquisition, PLife REIT PLife REIT deployed a cross currency swap by swapping the EFR S$ proceeds to European Euro (EUR or €) to fund the acquisition. As such, PLife REIT adopts a natural hedge financing strategy for both its France and Japan investments, ensuring stability in NAV.

Furthermore, PLife REIT completed the refinancing exercise with no immediate long-term debt refinancing needs till September 2026. The Group has also put in place several interest rate swaps in 3Q 2024 (including forward-starting swaps) to extend maturing hedges for another four to seven years. As at 31 December 2024, about 87% of interest rate exposure is hedged, underscoring PLife REIT's prudent capital management.

Additionally, the Group has put in place ¥ and € net income hedges till 1Q 2029 and 1Q 2030 respectively, thereby minimising the impact of adverse market conditions and safeguarding distribution stability.

LOOKING AHEAD

The healthcare sector continues to play a crucial role in addressing the growing demands of an ageing population and the increasing need for high-quality healthcare and aged care services. As such, PLife REIT is strategically positioned to capitalise on the robust growth of the healthcare industry across Asia Pacific and Europe. Equipped with a stronger balance sheet, the Manager will continue to strengthen PLife REIT's portfolio in Singapore, Japan, and now Europe, to build resilience and ensure sustainable returns for Unitholders.

strengthened its partnership with an existing tenant - K.K. ACKNOWLEDGEMENTS

BISCUSS, a reputable nursing and care service provider in

the Kansai region.

In line with its risk management approach, the acquisition was fully funded by Japanese Yen (JPY or ¥) loans. The deployment of ¥ funding provides a natural hedge for the foreign exchange risks arising from ¥-denominated assets and mitigates against potential currency volatility.

We would like to extend our heartfelt appreciation to our Board members, past and present, for their invaluable guidance and on behalf of the Board, we would like to express our appreciation to our independent director Dr. Jennifer Lee Gek Choo, who has retired from the Board. At the same time, we would also like to welcome Ms. Theresa Goh Cheng Keow as an Independent Director. With these changes, the Board remains at eight members, of which three are independent,

PRUDENT GROWTH CAPITAL MANAGEMENT

FOR and 25% representation from female directors.

PLife REIT's prudent capital management is evidenced by its healthy aggregate leverage at 34.8%, a weighted average term to debt maturity of 3.5 years, all-in cost of debt of 1.48% per annum and an interest coverage ratio of 9.8 times as at 31 December 2024. As interest rates outlook remains uncertain and economic and financial risks persist, PLife REIT continues to strengthen its liquidity position and enhance its resilience against interest rates and foreign exchange fluctuations.

We are grateful to the management team and all staff for their hard work and dedication in driving sustained success for PLife REIT and creating long-term value for Unitholders in this past year.

Lastly, we wish to express our deepest gratitude to our Unitholders, business partners, and lessees for their unwavering support, confidence, and trust in PLife REIT.

HO KIAN GUAN

Chairman

During the year, the Group successfully launched its maiden EFR of approximately S$180.0 million to finance the YONG YEAN CHAU acquisition in France. To strengthen its financial position, Chief Executive Officer and Executive Director

ESTABLISHING A MULTI-PRONGED GROWTH PLATFORM

This acquisition strategically positions PLife REIT to capitalise

EXPANDED INVESTMENT MANDATE FOR THE NEXT on structural trends in the French nursing home sector, driven

PHASE OF GROWTH

In 2024, PLife REIT made significant strides in enhancing PLife REIT's strategic growth initiatives, with the expansion of its investment mandate to allow the establishment of a third key market beyond Singapore and Japan.

The expanded investment mandate is in line with PLife REIT's long-term growth strategy of building a third key market while maintaining a primary focus on its core market of Singapore.

This will provide PLife REIT the opportunity to tap into a larger pool of investment opportunities with attractive yields, income resilience and/or capital appreciation potential to drive long-term sustainable growth while building diversification and portfolio resilience.

This is part of PLife REIT's strategic roadmap of establishing a multi-pronged growth platform.

A STRATEGIC FORAY INTO EUROPE

With the expanded mandate, PLife REIT acquired 11 nursing homes in France for a total purchase consideration of €111.2 million (approximately S$159.9 million), marking its maiden entry into the European market via France, the second-largest economy in the Eurozone by gross domestic product ("GDP")1.

by the country's ageing population and strong demand for senior housing.

The acquisition also provides PLife REIT with a foothold in a highly regulated sector with substantial barriers to entry. With slightly more than 600,000 nursing home beds in France and no new beds expected to be authorised until 2028, the market is characterised by limited supply, which enhances the attractiveness of this opportunity. In addition, the French government's strong support for the sector, including significant social security allocations, further mitigates operational risks and ensures long-term stability for operators.

The nursing home sector in France is also highly fragmented, with substantial opportunities for consolidation in the private Établissement d'hébergement pour personnes âgées dépendantes ("EHPAD") market, valued at €19 billion. By acquiring these 11 strategically located nursing homes, PLife REIT gains access to a well-positioned portfolio, with 850 beds spread across six regions.

The properties are operated by DomusVi Group ("DomusVi") under a sale and leaseback arrangement with a favourable 12- year lease term². This arrangement ensures income certainty for PLife REIT while strengthening its revenue resilience against inflation and interest rates fluctuations.

• (1) Source: World Bank's World Development Indicators as of 2023,https://databank.worldbank.org/source/worlddevelopment-indicators

• (2) Lease terms of the France properties include indexed rent escalations

CORPORATE DEVELOPMENT

STRENGTHENING EXISTING MARKETS

SINGAPORE

Even as PLife REIT's investment mandate has broadened, strengthening its existing markets remains a top priority. In 2024, PLife REIT continues its execution of the renewal capital expenditure for MEH - Project Renaissance. This upgrading plan aims at enhancing facilities and improving service

Mount Elizabeth Hospital transformed under Project Renaissance

period of 10 years from 2021, providing a strategic opportunity for potential expansion and value creation. All these positions PLife REIT to capitalise on the growing demand for healthcare services in the region, particularly Singapore. By reinforcing its existing market presence in Singapore, PLife REIT is not only ensuring the resilience of its income streams but also laying a solid foundation for future growth, complementing its strategic foray into new markets.

offerings, and will bolster the quality positioning of MEH, JAPAN thereby increasing its competitiveness in the market. Key

areas, including the out-patient Laboratory, Executive Health Screeners, ICU, Endoscopy Centre, majority of Ward rooms, Parkway Cancer Centre, Delivery Suite, NICU, Radiology areas, public and patient lift lobbies along with service and public corridors on Levels 1 and 2 have been completed. The majority of the renovation works are expected to be completed by the end of 2025. The project remains on track to meet the planned timeline.

Additionally, PLife REIT has a Right of First Refusal ("ROFR") over the Mount Elizabeth Novena Hospital property for a In 2024, PLife REIT continued its expansion efforts in Japan, with the acquisition of an additional nursing home, HIBISU Higashi Sumiyoshi in Osaka Prefecture for a total consideration price of ¥2,446.2 million (approximately S$20.7 million)3. Newly-built in June 2024, HIBISU Higashi Sumiyoshi is a freehold property that is well-located in the residential area of Osaka City and is Building-Housing Energy-efficiency Labelling System ("BELS") certified.

The acquisition saw PLife REIT taking over the existing master lease agreement from K.K. FDS ("FDS"). With a long and stable balance lease term of approximately 30 years, PLife REIT's weighted average lease expiry (by gross revenue) improved from 16.05 years to 16.17 years, further enhancing the resiliency of PLife REIT's earnings upon the completion of the acquisition. Importantly, the acquisition marks the second collaboration with FDS, whom PLife REIT signed a Memorandum of Understanding on Strategic Alliance with in 2023. The acquisition also further enhances PLife REIT's partnership with an existing tenant, K.K.

This comprehensive capital and financial management strategy not only supports PLife REIT's growth ambitions but also reinforces its commitment to long-term value creation. As at 31 December 2024, PLife REIT sustained a healthy aggregate leverage of 34.8%, a weighted average term to debt maturity of 3.5 years, all-in cost of debt of 1.48% per annum, as well as a healthy interest coverage ratio of 9.8 times.

BISCUSS, a reputable nursing and care service operator in the AWARDS - A COMMITMENT TO EXCELLENCE

Kansai region of Japan.

In addition, an advance lease extension with K.K. Riei had been signed at Senior Chonaikai Makuhari Kan. The extended 10-year lease will commence from 1 April 2026 and will provide a guaranteed income of approximately ¥1.0 billion (S$8.9 million)4 for PLife REIT over the course of the lease.

With an established portfolio of 60 high quality nursing homes and care facilities, as well as strategic partnerships with local operators in the aged care sector, PLife REIT remains well positioned to ride on the silver economy in Japan, where it first established a foothold in 2008.

PLife REIT was honoured to receive the Shareholder Communications

Excellence Award ("SCEA") in the REITs & Business Trusts category at the Securities Investors' Association (Singapore) Investors' Choice Awards 2024. This prestigious recognition underscores PLife REIT's commitment to transparent, timely and effective communication with its shareholders, demonstrating the high standards set for investor relations and corporate governance.

The process of receiving the SCEA involved a rigorous evaluation based on the STARS framework, developed in collaboration with the Centre for Governance and Sustainability (CGS) at the National University of Singapore (NUS). This framework assesses companies in five key areas: Shareholders'

CAPITAL AND FINANCIAL MANAGEMENT Rights and Equitable Treatment, Transparency and Disclosure,

STRATEGY

In conjunction with its growth initiatives, PLife REIT is committed to a robust capital and financial management strategy that underpins its long-term sustainability and resilience. The strategy is designed to ensure that PLife REIT maintains a strong balance sheet while effectively managing risks associated with interest rates and foreign exchange fluctuations on an ongoing basis.

Not only did the REIT expand its footprints into Europe in 2024, it also diversified funding sources away from debt financing by successfully launching its maiden EFR of approximately S$180.0 million to finance the France acquisition. In addition, the Group completed its refinancing exercise with no immediate long-term debt refinancing needs till September 2026 and termed out interest rate hedges maturing in 2025 with forward-starting swaps. With that, PLife REIT has enhanced its financial stability with an improved gearing and locked in its interest exposure for 87% of its borrowings in the next few years amid the uncertain interest rates environment.

To achieve a stable net asset value, PLife REIT has applied hedge accounting for net investment hedge on its France investment via the use of a cross currency swap, by swapping the EFR S$ proceeds to €. Additionally, the Group has put in place ¥ and € net income hedges till 1Q 2029 and 1Q 2030 respectively, thereby minimising the impact of adverse market conditions and safeguarding distribution stability.

Accountability and Audit, Responsibilities of the Board, and Stakeholders' Roles. PLife REIT's performance across these areas was meticulously reviewed, culminating in its selection for this prestigious award.

Winning this award reflects the concerted efforts PLife REIT has made to ensure that shareholders are well-informed and engaged. The Manager has worked tirelessly to provide investors with clear, comprehensive, and up-to-date information on its financial performance, strategic initiatives, and operational achievements.

Moving forward, PLife REIT remains steadfast in its commitment to maintaining these best practices, ensuring it continues to foster transparency, engage effectively with all stakeholders, and safeguard shareholder interests.

(3) Based on the exchange rate at point of acquisition

(4) Based on the exchange rate of S$1.00 to ¥112.2

GLOBAL ECONOMIC OUTLOOK: CAUTIOUS OPTIMISM Against the macroeconomic backdrop, global healthcare spending

FOR RECOVERY AND GROWTH IN 2025

Geopolitical instability, trade uncertainties, and inflationary pressures have continued to shape growth dynamics in recent years1, and the global economy is now transitioning into a phase of cautious optimism. The global economic context has become more favourable since mid-2024, as inflation appears to be moderating without substantial slowdown in key economies, and monetary policy easing has now become widespread. Based on the latest publication by World Bank, global growth is estimated to have stabilised at 2.7% in 2024, and is forecast to hold steady at that pace over 2025.2 Low inflation, steady employment growth and less restrictive monetary policy will all help to underpin demand in 2025, despite some mild headwinds from the necessary tightening of fiscal policy in many countries.3

is projected to outpace inflation, driven by the ageing global population, which is boosting demand for healthcare services in both developed and emerging markets.6 The sector's growth is largely fuelled by the rising number of individuals aged 65 and older, projected to account for 12% of the global population in 2025. Despite budgetary pressures, healthcare remains a priority, particularly in low- and middle-income countries, where public spending is expected to rise. In wealthier nations, demand will also grow due to ageing populations, but governments will face challenges funding healthcare as budgets increasingly shift towards defence, green energy, and infrastructure. This presents both opportunities and challenges for healthcare providers, who will need to adapt to the evolving demands and fiscal constraints while continuing to deliver essential services.

JAPAN - EXTREME DEMOGRAPHIC AGEING SHAPING

Despite the moderate recovery, the global outlook remains THE COUNTRY'S HEALTHCARE TRAJECTORY clouded with uncertainty. Global growth may fall short of

expectations due to potential adverse changes in trade policies and heightened policy instability, particularly trade-distorting measures implemented mainly by advanced economies. For example, the United States has proposed "reciprocal tax" on several foreign countries4, which could spark trade wars and harm global economic growth.5 Additionally, heightened geopolitical tensions and conflicts such as the Russia-Ukraine war, unrest in the Middle East and overall geopolitical instability could disrupt global trade and commodity markets, further impacting growth.

The International Monetary Fund ("IMF") maintained its Japan economic growth outlook at 1.1% for 2025 and 0.8% for 2026, unchanged from its previous projection in October.7 While major economies are easing on their monetary policies, the Bank of Japan is expected to take a contrasting approach by introducing two additional rate hikes each in both 2025 and 2026.8 The gradual tightening of the monetary policy has already commenced in 2024 and will continue at a moderate pace to ensure that the economy is able to achieve its price stability.

Japan's rapidly ageing population continues to drive demand SINGAPORE - INCREASED GOVERNMENT INVESTMENT for healthcare and senior living services. According to the AND FOCUS ON TECHNOLOGICAL ADVANCEMENTS IN data released by Japan's Ministry of Internal Affairs and THE HEALTHCARE SECTOR

Communications, the number of people in Japan aged 65 or older hit a record high of 36.25 million in 2024 and the elderly now account for 29.3% of Japan's total population. In fact, the proportion of elderly residents places Japan as the top of the list of 200 countries and regions with population over 100,000.9 This demographic shift is putting pressure on healthcare systems, prompting the government to allocate ¥37.7 trillion to social security in 2024, including substantial funding for healthcare and long-term care.10 The considerable resources allocated to national healthcare and long-term care have boosted investor confidence in these sectors, with expectations for continued growth over the next few decades.

The National Institute of Population and Social Research has reported that single-person households are projected to account for 20.6% of all households in Japan by 2050, driven by changes in societal dynamics.11 This trend underscores the growing demand and importance of senior living accommodations in the Japanese society, as family-based care becomes less viable.

In recent years, the ageing demographics has also presented new opportunities such as intensified developments and accelerated uptake of digital health technologies. In April 2024, the Ministry of Internal Affairs and Communications and the Ministry of Economy, Trade and Industry published their "Artificial Intelligence (AI) Guidelines for Business" to guide AI use within the healthcare industry.12 The guidelines integrate existing standards, address risks, align with global trends and promote innovation throughout the business life cycle. Spurred by the developments of the Covid-19 pandemic, there has been a relaxation of related regulations as a response to increased demand for telemedicine and online medication guidance in Japan.

Despite broader economic challenges such as persistent inflation, the senior living sector remains resilient, supported by ample government backing for senior housing development and strong demand for quality services, making the sector an attractive area for investment in Japan.13 Capitalising on Japan's silver economy, PLife REIT has an established portfolio of 60 high quality nursing homes across Japan and continues to form strategic partnerships with local operators to maintain its strong foothold in the Japan nursing home market.

Singapore's GDP growth reached approximately 3.5% in 2024 but is expected to slow down to between 1 and 3% in 2025.14 The moderation in growth reflects its susceptibility to global uncertainties driven by factors such as Donald Trump's return to the White House, escalating conflicts in the Middle East and Ukraine as well as China's ongoing economic slowdown.15 Despite global challenges, Singapore continues to be regarded by foreign investors as a pillar of economic stability, a trusted and thriving global business hub, and a renowned financial centre. Supported by resilient external demand, the development of the Johor-Singapore Special Economic Zone, easing inflation, and proactive government policies, Singapore's economy is well-positioned to stay dynamic in an increasingly volatile world.16

As Singapore navigates the next phase of its economic development amidst evolving global trends and challenges, the Ministry of Health (MOH) launched the Industry Transformation Map (ITM) 2025 for healthcare. The Healthcare ITM 2025 focuses on four main areas: (i) strengthening Singapore's research and innovation ecosystem; (ii) strengthening digital system enablers; (iii) attracting and retaining healthcare workers; and (iv) strengthening partnerships.17 Additionally, the government's budgeted spending on healthcare has risen by 4.6% in 2024, reaching S$18.8 billion, reflecting a commitment to strengthening the healthcare infrastructure to meet the current and future needs of Singapore's ageing population.18 As we approach 2025, Singapore's healthcare sector faces challenges such as a projected medical inflation rate of 12%,19 consistent with 2024 levels, which may impact both providers and patients. Nevertheless, the market outlook remains positive, with Singapore's hospitals market projected to grow by 7.1% between 2025 and 2029, reaching an estimated market value of USD 13.03 billion by 2029.20 This growth will likely be fuelled by ongoing investments in healthcare infrastructure, technological integration, and a focus on preventive care, ensuring continued demand from both local patients and medical tourists while reinforcing its position as a global healthcare hub.

The Singapore healthcare market continues to thrive with a positive outlook and PLife REIT gains a significant competitive edge through its ownership of three strategically located, world-class private hospitals within its Singapore portfolio.

• (11) Elderly single-person households projected to make up over 20% of Japan's total in

  • (1) Economic conditions outlook, September, McKinsey & Company, September 2024

  • (2) Global Economic Prospects, World Bank Group, January 2025

  • (3) OECD Economic Outlook, OECD, December 2024

  • (4) Trump signs sweeping reciprocal tariff plan, says more coming, CNBC, February

    2025

  • (5) World Bank warns that US tariffs could reduce global growth outlook, Reuters,

    January 2025

  • (6) EIU Industry outlook 2025, The Economist Intelligence, 2024

  • (7) IMF keeps Japan's 2025 growth outlook intact, The Japan Times, January 2025

  • (8) Transcript of World Economic Outlook (WEO) Update, International Monetary Fund,

    January 2025

  • (9) Japan's elderly population hits record high, The Straits Times, September 2024

  • (10) Annual governmental budget for social security in Japan from fiscal year 2015 to

    2024, by purpose, Statista, January 2024

  2025, The Mainichi, April 2024

• (12) Digital Healthcare 2024 - Japan, Chambers and Partners, June 2024

• (13) Golden years ahead for senior living, PERE, June 2024

• (14) MTI Forecasts GDP Growth of "Around 2.5 Per Cent" in 2-24 and "1.0 to 3.0 Per Cent"

  in 2025, MTI, November 2024

• (15) Economic trends to watch for Singapore in 2025, The Straits Times, January 2025

(16) Singapore's Dynamic Outlook in 2025, DBS, November 2024

• (17) Singapore: Government boosts healthcare with S$ 200 million AI investment and moots law to govern genetic test use, Baker McKenzie, October 2024

• (18) Fit for the future: A bright outlook for business growth in ASEAN healthcare, HSBC, July 2024

• (19) Singapore: 2025 medical inflation rate projected to be 12%, as high as in 2024, Asia Insurance Review, December 2024

• (20) Market Insights on Hospitals - Singapore, Statista, April 2024

As the sector continues to evolve, there is an increasing emphasis on energy efficiency and carbon reduction. This shift presents opportunities for investors to advance Singapore's sustainability goals while supporting the growth of the healthcare sector. PLife REIT is proactively aligning with these trends by incorporating energy-efficient solutions and sustainable practices across its healthcare portfolio.

conditions.25 However, with the anticipated interest rate cuts by the ECB, investment sentiment is expected to improve. Fundamentally, France continues to be a strong and diversified economy, supported by significant demographic advantages compared to its European Union (EU) neighbours.26

The ageing phenomenon is now typical in most countries, especially higher in Europe as compared to Asia, excluding MALAYSIA - GROWING HEALTHCARE DEMAND AND Japan.27 In particular, France is experiencing an ageing

OPPORTUNITIES

The growth trajectory of the Malaysian economy remains fairly resilient, despite experiencing a slight decline in projected growth rate of 4.5% in 2025 compared to 5.2% in 2024, driven by strong export performance and sustained domestic demand. Notably, 2024 saw tourist arrivals nearing pre-pandemic levels, with tourism from China surpassing pre-pandemic levels for Malaysia.21

Malaysia's healthcare sector is experiencing significant growth, with healthcare expenditure forecasted to rise by 8.7% annually from 2023 to 2028. In particular, the 2025 Budget allocates RM45.3 billion to healthcare, reflecting a 10% increase from 2024, with funds earmarked for upgrading public hospitals and improving access to healthcare in rural areas.22

The private healthcare sector is also seeing increased demand, boosted by a thriving healthcare tourism industry, which generated RM2.25 billion in revenue in 2023.23 As Malaysia establishes itself as a leading healthcare destination, PLife REIT benefits from the growing demand for healthcare services from both local and international markets.

population, attributed to factors such as increased life expectancy and declining birth rates.28 The ageing population is putting increasing pressure on public services such as healthcare and pensions, while also driving demand for senior housing. It is projected by 2070 that France's population of individuals aged 75 and over, will increase by 89%, highlighting the need for more senior living facilities.29

At the same time, shortage in supply for healthcare facilities also emphasises the need for increased government expenditure to support the growing demand for elderly care services. In 2023, 32% of France's GDP was allocated for social security, highest amongst the EU countries.30

Due to the significant supply gap in senior housing, with just one senior housing place available for every 10 individuals aged 75 and older, the French government has made senior housing a national priority through the "Old Age and Autonomy" law, which outlines measures to foster a society that supports healthy ageing. In recent years, the senior housing sector has also experienced substantial growth, increasing from 540 establishments in 2016 to almost a thousand by the end of 2022. This trend is set to continue, with the number of facilities to

FRANCE - AGEING POPULATION DRIVES DEMAND FOR increase to 1,300 by 2025.31 SENIOR HOUSING

The 2025 outlook for the euro area economy is forecasted to be challenging amid trade uncertainties with the U.S. and ongoing fiscal tightening. As the region is predicted to avoid recession, GDP growth is projected to lag behind expectations and predicted to expand at only 0.8% in 2025.24 Slow economic growth and declining inflation in the Eurozone will likely put pressure on the European Central Bank (ECB) to cut interest rates in the coming year.

France's GDP growth is expected to remain modest at 1.1% in 2024, slowing further to 0.9% in 2025, primarily due to fiscal consolidation efforts alongside global and domestic economic

This growth is further supported by strong regulatory and policy backing, especially in the wake of the Orpea scandal. The French government implemented several measures to improve aged care services, including stricter inspection of care homes, intervention by the French state-owned bank Caisse des Dépôts et Consignations ("CDC") to restructure Orpea and policies to prevent the commercialisation of essential services.32 Such initiatives reflect the commitment by the government and policy makers to reform the aged care sector, emphasising quality, accountability and the well-being of residents.

As the demand for senior housing intensifies, the sector's performance continues to outpace the broader residential market, presenting substantial opportunities for investment and development in senior housing not only in France but also across Europe and in the United Kingdom ("UK"). With increasing emphasis on specialised care and accommodations, investors are poised to capitalise on the sector's expansion, offering long-term growth potential in a market that continues to demonstrate resilience and strong demand.33

PLife REIT is well-placed to ride on this emerging trend by establishing a presence in a third key market with strong fundamentals, growing ageing population and mature health and aged care sectors, through the recent acquisition of a portfolio comprising 11 freehold nursing home assets across various regions in France. Leveraging on the foothold in France, PLife REIT can look to France, the other European countries and the UK for expansion opportunities as part of its long-term growth plan.

The benchmark Straits Times Index ("STI") posted total returns of 23.5% in 2024, marking its best performance in a decade.34 However, the iEdge S-REIT Index ended 2024 in the negative, with a return of -6.1%, as the S-REIT market was generally volatile throughout the year due to the balancing act between inflation and interest rates.35 Environmental, Social and Governance ("ESG") factors continue to shape the sector, with green-certified properties commanding rental premiums and enhancing long-term asset value.36

Since its listing in 2007, PLife REIT has consistently delivered sustainable distributions to its unitholders. At the end of 2024, PLife REIT marked a significant milestone with its maiden investment in France, marking its entry into the European aged care property market as part of its long-term growth strategy. With targeted, long-term and stable leases across its portfolio of 75 properties spanning across diverse geographical regions, the REIT is poised to continue delivering sustainable, risk-

A KEY TURNING POINT FOR GROWTH IN THE adjusted returns to its unitholders. On the ESG front, the REIT

SINGAPORE REIT (S-REIT) SECTOR IN 2025

The S-REIT sector is at a pivotal juncture, recovering from challenges posed by the Covid-19 pandemic, inflation, and high interest rates.

continues to work towards building a sustainable and energy-efficient healthcare portfolio that aligns with evolving market expectations, positioning the trust to capture both economic and environmental values in the years ahead.

• (35) Larger S-REITs rank among those with highest net retail infows in 2024, The Business Times, January 2025

• (36) Navigating S-REITs in 2025 and beyond: A defensive play with long-term growth potential, The Edge Singapore, November 2024

Pioneering Success through Visionary Leadership

PLife REIT's journey began with its initial portfolio in Singapore, driven by a clear mission to grow the REIT. Expanding into Japan marked a significant milestone, and with a forward-thinking vision, the REIT ventured into Europe - an achievement made possible through visionary leadership and strategic foresight.