INVESTOR RELATIONS PRESENTATION 1 August 2013plifereit.listedcompany.com/misc/PLifeQ22013Investor...

INVESTOR RELATIONS PRESENTATION

1 August 2013

(“PLife REIT”)

DisclaimerDisclaimer

2

This document is for information only and does not constitute an

invitation or offer to acquire, purchase or subscribe for units in Parkway Life Real Estate Investment Trust

(“Parkway Life REIT”

and the units in Parkway Life REIT, the “Units”).

The value of the Units and the income derived from them may fall

as well as rise. The Units are not obligations of, deposits in, or guaranteed by, Parkway Trust Management Limited, as manager of Parkway Life REIT (the “Manager”) or any of its affiliates. An investment in Units is subject to investment risks, including the possible loss of the principal amount invested.

Investors have no right to request the Manager to redeem their Units while the Units are listed. It is intended that Unitholders of Parkway Life REIT may only deal in their Units through trading on Singapore Exchange Securities Trading Limited (the “SGX-ST”). Listing of the Units on SGX-ST does not guarantee a liquid market for the Units.

The past performance of Parkway Life REIT or the Manager is not necessarily indicative of the future performance of Parkway Life REIT or the Manager.

This document may contain forward-looking statements that involve assumptions, risks and uncertainties. Actual future performance, outcomes and results may differ materially from these forward-looking statements as a result of a number of risks, uncertainties and assumptions. Representative examples of these factors include (without limitation) general industry and economic conditions, interest rate trends, cost of capital and capital availability, competition, shifts in expected levels of property rental income, changes in operating expenses, property expenses, governmental and public policy changes and the continued availability of financing in the amounts and on the terms necessary to support Parkway Life REIT’s future business. Investors are cautioned not to place undue reliance on

these forward-looking statements, which are based on the Manager’s current view of future events.

AgendaAgenda

4. Growth Strategy & Core Markets

1. Overview of PLife REIT

5. Capital & Financial Management

3. Our Properties

6. Appendix

3

2. 2Q 2013 Key Highlights

1. Overview of PLife REIT

4

(“PLife REIT”)

PLife REIT PortfolioLargest listed healthcare REIT in Asian region with an enlarged portfolio of S$1.4 billion1

Defensive long term lease structure with downside protection

Stable income stream supported by regular rental revision

Diversified portfolio of high quality and yield accretive properties

Good growth potential in fast growing healthcare sector

Core Strengths:

(as at 30 June 2013)

5

Note:1.

Based on appraised values as at 31 December 20122.

Based on Gross Revenue as at 30 June 2013, including Malaysia property at 0.4%

(“PLife REIT”)

6

2. 2Q 2013 Highlights

2Q 2013

Key Highlights

7

Strengthening of Balance Sheet―

Healthy gearing of 31.2% as at 30 June 2013

―

Pre-emptive terming out of 2/3 of FY2014 refinancing requirements (S$95.1m)

and its corresponding interest rate hedge to FY2018

―

All-in cost of debt is 1.52% as at 30 June 2013

Strong DPU Growth for 2Q and 1H 2013―

DPU for 2Q 2013 at 2.63 cents

―

DPU grew by 6.1% (2Q Y-O-Y) and 4.5% (1H Y-O-Y)

Extension of JPY Income Hedges―

Natural hedge strategy to match JPY assets with JPY liabilities

―

Extended JPY net income hedge till 1Q FY2017 hence no impact from recent

volatility in JPY

―

Enhances the stability of distribution to Unitholders and stable

NAV

8

2Q 2013

Key Highlights (cont’d)

Minimum Guaranteed Rent for Singapore Hospitals to increase by 4.44%―

With CPI growth of 3.44%, 7th Year Minimum Guaranteed Rent set to increase by

4.44% above total rent payable for 6th Year of Lease Term based on (CPI + 1%)

formula

―

Effective for the period 23 August 2013 to 22 August 2014

Affirmed ‘BBB’ Investment Grade Rating―

Fitch affirmed Long-Term Issuer Default and senior unsecured ratings at 'BBB‘

with “Stable”

outlook

Expansion of Footprint in Japan―

Completed acquisition of two Japan nursing home properties on 12

July 2013

―

Acquires properties at approximately S$23.1 million at an attractive expected net

property yield of 7.1%

Financial Review

9

Lower Gross Revenue and Net Property Income in 1H 2013

46,17745,612

42,000

44,500

47,000

1H 2012 1H 2013

(S$’000)-1.2%-1.2% (S$’000)

-0.6%-0.6%

Attributed to the depreciation of the Japanese Yen

Impact of the weakened Japanese Yen was partially offset by a full quarter’s revenue contribution from the Malaysia properties acquired in Aug 2012 and higher rent from Singapore properties based on the (CPI + 1%) formula

The impact of the depreciating Japanese Yen is offsetted by the foreign exchange gain from the net income hedge at the distributable income level

42,854 42,615

42,000

44,500

47,000

1H 2012 1H 2013

14,500 15,500 16,500

2Q 2012 2Q 2013

15,01315,925

2Q DI (S$’000)+6.1%+6.1%

10

DPU grew by 6.1% to 2.63 cents in 2Q 2012. DPU for 1H 2013 grew 4.5% year-on-year from 5.04 cents to 5.27 cents

Distribution Per Unit (DPU) GrowthDistribution Per Unit (DPU) Growth

25,000 30,000 35,000

1H 2012 1H 2013

30,523 31,890

1H DI (S$’000)+4.5%+4.5%

Strong DPU Growth Since IPO

11

DPU has grown steadily at a rate of 65.4% since IPO1

1.59 1.62 1.66 1.711.84

1.89 1.89 1.912.05 2.07 2.09

2.252.38 2.36 2.37 2.40

2.472.562 2.48

2.582.69 2.64 2.63

1.5

1.8

2.1

2.4

2.7

3.0

4Q 2007

1Q 2008

2Q 2008

3Q 2008

4Q 2008

1Q 2009

2Q 2009

3Q 2009

4Q 2009

1Q 2010

2Q 2010

3Q 2010

4Q 2010

1Q 2011

2Q 2011

3Q 2011

4Q 2011

1Q 2012

2Q 2012

3Q 2012

4Q 2012

1Q 2013

2Q 2013

DPU (cents)

Note:1.

Accumulated DPU payout since IPO is 50.81 cents (inclusive of 3Q

2007 pro-rated payout) 2.

Since FY 2012, approximately S$3.0 million per annum of amount available for distribution has been retained for capital expenditure (S$0.75 million per quarter)

+65.4%+65.4%

•

Announced the extension of Japanese Yen-denominated net income hedge for five years till the first quarter ended 31 March 2017 (“1Q 2017”) as protection against volatility in the Japanese Yen.

•

Announced completion of AEI at Sawayaka

Obatake

Nibankan

to yield a 5.04% increase in gross rent for unexpired lease term1

and an expected annual ROI of 10%.

Recent Developments

12

Note:1.

All JPY reference in this press release are based on the exchange rate of S$1.00 = JPY76. 2.

For unexpired lease term of approximately 17.5 years w.e.f. 1 Dec 123.

For unexpired lease term of approximately 14.5 years w.e.f. 1 Jun 11

•

Put in place a four-year S$80 million committed and unsecured Revolving Credit Facility (the “Facility”) for the pre-

emptive refinancing of short-term loan facilities as well as the S$50.0 million Floating Rate

Notes (“FRN”) maturing in FY2012 and FY2013 respectively.

•

Purchased and cancelled S$35.75 million of the outstanding FRN using the Facility. The remaining S$14.25 million of the FRN will be covered by the Facility when the FRN falls due in March 2013

25 Jun 2012

•

Increase in Minimum Guaranteed Rent for sixth year of lease term

commencing 23 Aug 2012 for Singapore hospital properties, under the CPI+1% rental formula

•

Announced the completed acquisition of strata-titled units/lots within Gleneagles Medical Centre, Kuala Lumpur•

Announced completion of maiden Refurbishment AEI at Maison

des Centenaire

Ishizugawa

to yield a 2.0% increase in gross rent for unexpired lease term2

and an expected annual ROI of 18.5%

25 Jan 2013

2 Aug 2012

•

Acquired 2 Japan nursing homes in Hyogo and Toyonaka. At a combined purchase price of approximately S$23.1 million1

(JPY 1.755 billion), the acquisitions provide an expected net property yield of 7.1%. Acquisition was completed on 12 July 2013, bringing the total number of properties in the portfolio to 37.

•

Fitch Ratings affirmed PLife

REIT's Long-Term Issuer Default (“IDR”) and senior unsecured ratings at 'BBB', with a ‘Stable’

outlook on the IDR, on 16 July 2013.

3 July 2013

Presenter

Presentation Notes

In July 2013, PLife REIT further expanded its presence in Japan with the acquisition of two nursing home properties at a combined purchase price of approximately S$23.1 million (JPY1.755 billion) and an appealing expected net property yield of 7.1%. This adds to a total of 35 properties under its Japan portfolio till date. The acquisition is funded by a 5-year committed and unsecured JPY term loan facility totalling JPY9.43 billion (S$124.1 million), at an all-in attractive cost of approximately 1.55% per annum, which provides a natural hedge to mitigate foreign exchange risks arising from JPY denominated assets. The Properties comprise of Palmary Inn Shin-Kobe (“Shin-Kobe Property”) and Heart Life Toyonaka (“Toyonaka Property”), which are strategically located in dense and easily accessible residential and commercial districts in Hyogo and Toyonaka, respectively. It enjoys a stable and healthy average occupancy rate of approximately 85% as at 19 June 2013, which is expected to continue growing in tandem with the steadily increasing demand. Mr Yong Yean Chau, Chief Executive Officer of the Manager, said, “Having invested in Japan since 2008, with a significant presence of 33 quality healthcare properties, PLife REIT has built deep sector knowledge and an established network of local partners, strongly positioning it to tap into the growth of the elderly care market in the rapidly-aging Japan.” PLife would continue tapping into its strong market demands for further organic and inorganic growth.

3. Our Properties

13

(“PLife REIT”)

14

Our Properties -

Singapore

A portfolio of 3 strategically-located world-class local private hospitals worth S$980.4million1

Master Lease with Parkway Hospitals Singapore Pte. Ltd, a wholly owned subsidiary of Parkway Pantai Limited (“Parkway”), the largest private healthcare operator in Singapore and a key regional healthcare player

Parkway is an established brand name with a network of 16 hospitals across Asia

Singapore Hospital Properties contribute approximately 66% of total gross revenue2

Mount Elizabeth Hospital

Parkway East Hospital

Note:1.Based on appraised values as at 31 December 20122.Based on Gross Revenue as at 30 June 2013

Gleneagles Hospital


Master Lessee –

IHH Group

15

Khazanah1

IHH2 Parkway Life REIT3

The Manager (PTML)4

Wholly owned subsidiary of IHHSingapore Hospitals

Approx. 45.24%6

35.8%7

Ownership of Assets

Management & Other Services

Footnote:1

Khazanah

Nasional

Berhad

(Khazanah);2

IHH Healthcare Berhad

(IHH); 3

Parkway Life Real Estate Investment Trust (PLife REIT); 4

Parkway Trust Management Limited (PTML);5

Parkway Hospitals Singapore Pte Ltd (PHSPL).6

As at 30 June 20137

As at 31 July 2013

Master Lease

Net Property Income

Master LesseePHSPL5

100%

Rental Payments

16

IHH

Majority owned by Khazanah, the investment holding arm of the Government of Malaysia

Dual listing in Malaysia and Singapore on 25 Jul 2012 with a market capitalization of approximately S$12.97 billion as at 8 May 2013

In Singapore, it operates through its key subsidiaries, Mount Elizabeth Hospital, Gleneagles Hospital, Parkway East Hospital and Mount Elizabeth Novena Hospital

In Malaysia, it operates through its key subsidiaries,

9 Pantai

hospitals, 2 Gleneagles medical hospitals and one IMU medical university

10.85% interest in Apollo Group (India) & 60.0% in Acibadem

(Turkey) as at 31 Mar 2013

A global healthcare network operates over 5,000 licensed beds in

33 hospitals, as well as medical centres, clinics and ancillary healthcare businesses across nine countries, with over 3700 new beds in the pipeline to be delivered through new hospital developments and expansion of existing facilities.

Footnote 1: Source: IHH and Apollo Hospital website as at 31 July 2013

Master Lessee –

IHH Group1

17

Our Properties -

Singapore3 Distinct features of our Singapore Hospital Properties:

Note:1.

Except Property Damage Insurance for Parkway East Hospital2.

For the period 23 August to 22 August of the following year


Notes:1.

AHR denotes the Adjusted Hospital Revenue for the period from 23

August to 22 August of the following year of each of the hospitals.2.

CPI denotes the % increase in the Consumer Price Index announced

by the Department of Statistic of Singapore for the relevant year compared to the immediately preceding year, computed on a 12 month average basis from July to June of the following year

Base + Variable

S$47.5 million

Base Rent (S$30.0 mil)

+ Variable Rent (3.8% of AHR 1 )

Year 1(23 Aug 07 – 22 Aug 08)

Annual Rent ReviewMechanism

Illustration

{1+ (CPI+1%) } x

Preceding Year’s Rent 2(where CPI is negative, it shall be deemed as zero)Year 1 minimum set as $45.0 million

OR

Year 2(23 Aug 08 – 22 Aug 09)

Minimum of S$45.0 million

Base + Variable

S$46.6 million

S$47.5 million x [1 + (5.25 + 1)%] =

Minimum guaranteed rent

S$50.5 million• Based on Year 1 Actual Rent of

S$47.5 million and CPI of 5.25%

OR

PH to pay higher of : Base Rent + Variable Rent formula Base Rent + Variable Rent formula Base Rent + Variable Rent formula

Being the higher value of the two formulae, S$47.5 million was the Actual Rent paid by PH for Year 1.

CPI + 1% formula CPI + 1% formula

OR

Singapore Hospital Properties –

Rent Review Mechanism

18

Example: CPI + 1% kicker in the event of deflationYear 2 Rent

(23 Aug 08 – 22 Aug 09)

CPI + 1% formula

S$47.5 million x [1 + (0+ 1)%] =

Minimum guaranteed rent S$48.0 million

•

Based on Year 1 Actual Rent of S$47.5 million and CPI of -0.5%

In the event of negative CPI, or deflation, CPI will be reset to zero, with a guaranteed 1% growth in minimum rent. This ensures minimum 1% growth for Parkway Life REIT.

(Continued from previous slide)Singapore Hospital Properties –

Rent Review Mechanism

19

Senior Chonaikai Makuhari Kan 20

Our Properties –

Japan

A portfolio of 33 high quality healthcare properties worth S$438.8 million1, comprising:

1 pharmaceutical product distributing and manufacturing facility (P-Life Matsudo)

32 private nursing homes

Master tenancy with 17 lessees

Nursing Home Properties strategically located in dense residential districts in major cities

P-Life Matsudo

Bon Sejour Shin-Yamashita

Palmary Inn Akashi

Palmary Inn Suma

Note:1.

Based on appraised values as at 31 December 2012 and at exchange rate of S$1.00 to JPY70.18


21

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

Introduction to Japan Properties –

Cont’d

Our Properties -

Japan

2 Unique features of our Japan assets:

Favourable Lease Structure

Long term lease structure

with weighted average

lease term to expiry of

13.82 years1

“Up only”

Rental Review

Provision for most of our

nursing homes

Master Tenanted

Signifies 100% committed

occupancyNote:1.

Based on Gross Revenue as at 30 June 20132.

With effect from 13 June 20073.

Every 2 or 3 years for 8 out of the 11 properties; for the 3 other properties, the rent review negotiation shall occur in the event the parties deemed that the

existing rent is inappropriate22


23

Our Properties –

Japan

Approximately 72.1% of revenue from Japan portfolio is downside- protected

Revenue from Japan portfolio (as at 30 June 2013)

72.1%1

27.9%2

Downside-protectedSubject to marketrevision

Notes:1.

Based on Gross Revenue (as at 30 June 2013) of 22 properties2.

Based on Gross Revenue (as at 30 June 2013) of 11 properties with market revision subject to Lessor/Lessee mutual agreement (every 2 or 3 years for 8 out of the 11 properties; for the 3 other properties, the rent review negotiation shall occur in the event the parties deemed that the existing rent is inappropriate)

24

Diversified Nursing Home Operators

16 high quality nursing home operators

Diversifies tenant risk

Back-up operator arrangements

Minimises operator default risks

Rental guarantee by vendors

For a period of seven years, capped at 5% of the purchase price for properties acquired from Kenedix

Inc.

Bon Sejour

and Sawayaka

properties enjoy full rental guarantee for entire lease term

As at 30 June 2013

25

Key Nursing Home Operators

Top 3 nursing home operators contributed 48% of total Japan revenue

Benesse Style Care Co., Ltd

Part of the listed company Benesse

Holdings Inc (the “Group”)

Market capitalisation

is about JPY375 billion (S$5.0 billion)

The 2nd

largest private nursing home operator in Japan

K.K. Sawayaka Club

Part of the listed company Uchiyama Holdings Co., Ltd

Market capitalisation

is about JPY7.5 billion (S$99.8 million)

Sawayaka

currently operates 38 care services facilities

The largest private nursing home operator in Kyushu

PLife REIT has a Right of First Refusal over future sales of nursing homes owned by the Uchiyama

K.K. Riei

Kanto Area-based nursing home operator

A major competitor in the nursing home field with over 15 facilities throughout Chiba, Tokyo, Osaka and Hyogo Prefectures

26

A portfolio of high quality healthcare assets worth S$8.1million1 within Gleneagles Intan Medical Centre Kuala Lumpur, next to the 330-bed Gleneagles Hospital Kuala Lumpur

Multi tenancies with lessees Gleneagles Hospital (Kuala Lumpur) Sdn. Bhd. and CIMB Bank Berhad

Our Properties –

Malaysia, Kuala Lumpur

Note:1. Based on appraised values as at 31 December 2012 by DTZ Nawawi

Tie Leung with exchange rate of S$1.00 to RM2.44


4. Growth Strategy & Core Markets

27

(“PLife REIT”)

28

PLife REIT’s Next Phase of Growth

29

PLife REIT plans to undertake the following strategies:Our Long Term Strategy

Third Party Acquisition

•

Focused on acquiring quality assets from 3rd

parties

Sponsor’s Acquisition

•

Focused on acquiring assets in the pipeline of Sponsor

Acquisition GROWTH Strategy

Supported by

Strong and Robust FINANCING Strategy

With the aim to:

Enhance value of properties and maximise risk-adjusted returns;

Deliver regular, stable distributions and achieve long-term growth for our Unitholders

ASSET MANAGEMENT Strategy

•

Sustain Revenue

•

Grow revenue organically

•

Support generation of new revenue

30

Note:1.

Based on Gross revenue as at 30 June 2013

Current Asset Mix1

66%31%

3%

Hospitals & medical centresNursing homesPharmaceutical facility

Objective – To protect PLife REIT against concentration risks due to over- exposure in any asset class

Basis – Invest in properties used for healthcare and healthcare related purposes

Diversification – The Manager plans to further diversify within the investment mandate as PLife REIT grows in portfolio size

Target Asset Mix and AllocationCurrent Asset Mix and Allocation

Asset Class Diversification & Allocation

31

Partnership

Two- Pronged

Approach

ClusteringPLife REIT is a specialised REIT where:

1)

Properties tend to be purposed-built (e.g. hospital, medical centre)

2)

Lease terms tend to be long (typically > 10 years)

3)

Lessee/operator tend to specialise

in their area of operation

Imperative for PLife REIT to achieve economies of scale in its countries of investment in order to:

1)

Establish a country HQ for closer monitoring and management of its portfolio of properties

2)

Structure its investment holdings to take advantage of tax or regulatory benefits where available

Seek out long-term and strategic partnership with good lessee/operator where possible

Prioritise & seek out investment opportunities in countries where PLife REIT already has investments

Strategic Investment Approach

5. Capital and Financial Management

32

(“PLife REIT”)

33

5 Key principles :

1. Acquisition financing has to be long-term: at least 3 years or more

To mitigate immediate refinancing risks post-acquisition

2. PLife REIT’s S$1.4billion1 portfolio is unencumbered

Ensures financing flexibility for future fund raising initiatives as the new financing bank will be ranked pari passu with existing banks

For future overseas acquisitions, may consider asset-level financing to ensure optimal tax positions and procure best pricing

3. Diversified funding sources

Banks are core funding sources (cultivated a panel of relationship banks)

Capital markets financing products (with the objective to lengthen debt maturity)

Other non-traditional funding sources (CB, Equity etc.)

4. Natural hedge financing strategy

Match asset currency with financing currency to mitigate principal forex

risks arising from oversea acquisitions

At least 50% natural hedge; remaining 50% depending on the interest rate differential and nature of the currency involved

5. Prudent financial risk management strategy

Hedge at least 50% of interest rate and forex

exposures from net income from foreign investments

To mitigate risks from adverse interest rate and forex

fluctuations

No more than 30% of the total debts will due in a single year, to avoid bunching effect

Constantly monitoring the market to extend the debt maturity period

END GOALS:

Minimise short term refinancing risks

Unencumbered portfolio and diversified funding sources provide financial flexibility and acquisitive “firepower” to support future growth with optimal cost of capital

Maintain stability of distributions and net asset value of PLife REIT with prudent capital management

Note:1.

As at 30 Jun 13

Capital & Financial Management Strategy

Debt Maturity ProfileDebt Maturity Profile As at 30 June 2013

Weighted average term to maturity is 2.08 years

Current effective all-in cost of debt of 1.52%

Interest cover ratio of 10.2 times

Successfully secured a five-year committed and unsecured JPY bank loan on 3 July 2013 to refinance 65% of the debt due in 2014

0.050.0

100.0150.0200.0250.0

JPY due 2013

JPY due 2014

JPY due 2015

SGD due 2016

JPY due 2017

JPY due 2018

95.1* 95.1*

51.2 182.1

78.9 41.0

S$ million

40.6%

17.6%9.2%

34

32.6%

* Pre-emptive term out 65% of the debt due in 2H 2014 to 2H 2018

Asset (S$’M) Asset Asset (S$(S$’’M)M)

209.7359.2

1,032.1

31.2% Gearing

40% Gearing

45% Gearing

60% Maximum Gearing

Additional D

ebt Capacity

Ample Debt Headroom

Debt headroom of S$209.7 million, S$359.2 million and S$1,032.1 million before reaching 40%, 45% and 60% gearing respectively

PLife REIT has ample funding to support future acquisitions and growth opportunities

35

Debt Balance as at 30 June 2013

6. Appendix

36

(“PLife REIT”)

38

A portfolio of high quality healthcare assets worth S$8.1million1 within Gleneagles Intan Medical Centre Kuala Lumpur, next to the 330-bed Gleneagles Hospital Kuala Lumpur

Multi tenancies with lessees Gleneagles Hospital (Kuala Lumpur) Sdn. Bhd. and CIMB Bank Berhad

Our Properties –

Malaysia, Kuala Lumpur

Note:1. Based on appraised values as at 31 December 2012 by DTZ Nawawi

Tie Leung with exchange rate of S$1.00 to RM2.44


39

Property Mount Elizabeth Hospital Gleneagles Hospital Parkway East HospitalType Hospital and Medical CentreLand Tenure 67 years 75 years 75 yearsTotal Area (sq m) 1 58,139 49,003 10,994Beds 2 345 272 113Operating theatres 3 13 12 4

Strata Units / Car Park Lots3 30 strata units; 363 car park lots 10 strata units; 121 car park lots 75 car park lotsYear of Completion Hospital Building (1979)

Medical Centre (1979 & 1992)Hospital Building (1991 & 1993)

Annexe Block (1979)Medical Centre (1991 & 1993)

Hospital Building (1982)Medical Centre (1987)

Committed Occupancy 100%Name of Lessee (s) Parkway Hospitals Singapore Pte LtdAwards and Accreditation JCI Accreditation, 1st private

hospital in Asia to win Asian Hospital Management Award;

SQC status since 1998, Superbrands status since 2002

JCI Accreditation; Asian Hospital Management Award; SQC Award

in 2002 (re-certified 2007); Superbrands status since 2002

JCI Accreditation; SQC status in 1998

Appraised Value S$620m S$313m S$47.4mAppraiser / Date Knight Frank Pte Ltd / 31 December 2012

Note:1. Aggregate strata area for Mount Elizabeth Hospital and Gleneagles Hospital. Gross floor area for Parkway East Hospital2. As at 31 December 20123. As at 31 March 2007

Our Portfolio -

Singapore

40

Our Portfolio -

Japan

Property P-Life Matsudo Bon Sejour Shin-Yamashita Bon Sejour Ibaraki

Type Pharmaceutical product distributing & manufacturing facility Paid nursing home with care service

Land Tenure Freehold Freehold 50 years Land Area (sq m) 8,449 1,653 3,051 Net Lettable Area (sq m) 3,240 3,273 3,651Number of Units (Rooms) NA 74 94

Year of Completion2005;

Additional works were completed in 2007

2006 2008

Committed Occupancy 100.0%

Name of Lessee (s)Nippon Express Co., Ltd

(Master Lessee)Alere Medical Co., Ltd (Sub-Lessee)2

Benesse Style Care Co., Ltd3

Date of Acquisition 16 May 2008 30 May 2008Appraised Value 1 ¥2,850 m (S$40.6m) ¥1,310 m (S$18.7 m) ¥1,054 m (S$15.0m)

Appraiser / DateColliers International /

31 December 2012International Appraisals Incorporated / 31 December 2012

Note:1.

At an exchange rate of S$1.00 to JPY70.182.

Corporate rebranding by Inverness Medical Japan Co.,Ltd

with effect from 1 April 20113.

On 1 April 2012, Benesse

Style Care Co., Ltd merged as the surviving company with Bon Sejour

Corporation

41

Our Portfolio -

Japan

Property Palmary Inn Akashi Palmary Inn Suma Senior Chonaikai Makuhari Kan

Himawari Home Kamakura

Type Paid nursing home with care serviceLand Tenure Freehold Freehold Freehold FreeholdLand Area (sq m) 5,891 2,676 2,853 1,307Net Lettable Area (sq m) 6,562 4,539 4,361 1,689Number of Units (Rooms) 96 59 1082 53


Conversion works were completed in 2003

19891992;


1992; Conversion works were

completed in 2003Committed Occupancy 100.0%Name of Lessee (s) Asset Co., Ltd Asset Co., Ltd Riei Co., Ltd Chojukaigo Center, Inc.Date of Acquisition 29 September 2008Appraised Value 1 ¥1,500 m (S$21.4m) ¥872m (S$12.4m) ¥1,450m (S$20.6m) ¥977 m (S$13.9m) Appraiser/ Date Colliers International / 31 December 2012

Note:1.


As at 31 March 09, total number of units increased from 107 to 108. Operator converted one (1) unit of twin type into two (2) units of single type

42

Our Portfolio -

Japan

Property Smiling Home MedisMusashi Urawa

Fureai no sonoNerima Takanodai

Smiling Home MedisKoshigaya Gamo

Type Paid nursing home with care serviceLand Tenure FreeholdLand Area (sq m) 802 2,282 1,993Net Lettable Area (sq m) 1,603 2,526 3,824Number of Units (Rooms) 44 64 100



1988; Conversion works were

completed in 2005

1989; Conversion works were completed

in 2005Committed Occupancy 100.0%Name of Lessee (s) Green Life Higashi Nihon 2 Shonan Fureai no Sono Green Life Higashi Nihon 2Date of Acquisition 29 September 2008Appraised Value 1 ¥629m (S$8.9m) ¥1,400m (S$19.9m) ¥1,310m (S$18.7m) Appraiser/ Date Colliers International / 31 December 2012

Note:1.


Change of name with effect from 1 May 2013 due to organisational

restructuring by Green Life Co., Ltd, parent company of Medis

Corporation

43

Our Portfolio -

Japan

Property Amille Nakasyo Supercourt Kadoma Supercourt Takaishi- Hagoromo

Maison de Centenaire Ishizugawa

Type Paid nursing home with care serviceLand Tenure Freehold 50 years 30 years FreeholdLand Area (sq m) 2,901 1,518 2,010 1,111Net Lettable Area (sq m) 3,259 2,794 3,021 2,129Number of Units (Rooms) 75 88 98 52

Year of Completion 2001 2007 20081988;



Name of Lessee (s) Message Co. Ltd, Shakai Fukushi Houjin Keiyu - Kai City Estate Co. Ltd City Estate Co. Ltd Miyako Kenkokai Medical

CorporationDate of Acquisition 17 November 2009Appraised Value 1 ¥592m (S$8.4m) ¥594m (S$8.5m) ¥671m (S$9.6m) ¥773m (S$11.0m) Appraiser/ Date International Appraisals Incorporated / 31 December 2012

Note:1. At an exchange rate of S$1.00 to JPY70.18

44

Our Portfolio -

Japan

Property Maison de CentenaireHaruki Hapine Fukuoka Noke Fiore Senior Residence

Hirakata Iyashi no Takatsuki KanType Paid nursing home with care serviceLand Tenure Freehold Freehold Freehold FreeholdLand Area (sq m) 801 1,396 727 2,023Net Lettable Area (sq m) 1,263 2,912 1,155 3,915Number of Units (Rooms) 362 64 40 87



2006 20071997;



Name of Lessee (s) Miyako Kenkokai Medical Corporation Green Life Co. Ltd 3 Vivac Riei Co., Ltd

Date of Acquisition 17 November 2009Appraised Value 1 ¥603m (S$8.6m) ¥768m (S$10.9m) ¥450m (S$6.4m) ¥1,380m (S$19.7m)Appraiser/ Date International Appraisals Incorporated / 31 December 2012

Note:1.


No. of rooms increased from 33 to 36 upon the completion of AEI in September 20103.

Change of name with effect from 1 May 2013 due to organisational

restructuring by Green Life Co., Ltd, parent company of Care Link Co., Ltd

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Our Portfolio -

Japan

Property Sawayaka Obatake Ichibankan Sawayaka Obatake Nibankan Sawayaka Shinmojikan

Type Paid nursing home with care service

Short stay / Day care facility

Paid nursing home with care service

Land Tenure Freehold Freehold FreeholdLand Area (sq m) 1,786 1,042 2,813Net Lettable Area (sq m) 3,491 1,538 5,088Number of Units (Rooms) 78 26 112Year of Completion 2007 2007 2007Committed Occupancy 100.0%Name of Lessee (s) K.K Sawayaka ClubDate of Acquisition 17 June 2010Appraised Value 1 ¥692m (S$9.9m) ¥309m (S$4.4m) ¥875m (S$12.5m) Appraiser/ Date International Appraisals Incorporated / 31 December 2012


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Our Portfolio -

Japan

Property Sawayaka Nokatakan Sawayaka Nogatakan Sawayaka Sakurakan Sawayaka FukufukukanType Paid nursing home with care serviceLand Tenure Freehold Freehold Freehold FreeholdLand Area (sq m) 5,748 2,707 6,276 1,842Net Lettable Area (sq m) 4,566 3,147 5,044 3,074Number of Units (Rooms) 100 78 110 72Year of Completion 2007 2005 2006 2008Committed Occupancy 100.0%

Name of Lessee (s) K.K Sawayaka Club

Date of Acquisition 17 June 2010 28 Jan 2011Appraised Value 1 ¥851m (S$12.1m) ¥645m (S$9.2m) ¥743m (S$10.6m) ¥622m (S$8.9m) Appraiser / Date International Appraisals Incorporated / 31 December 2012

Note:1.

At an exchange rate of S$1.00 to JPY70.18

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Our Portfolio -

Japan

Property Sawayaka Higashikagurakan Sawayaka Hirakatakan Sawayaka Parkside Shinkawa

Type Paid nursing home with care service



Land Tenure Freehold Freehold FreeholdLand Area (sq m) 4,813 1,850 1,445Net Lettable Area (sq m) 5,335 3,696 2,855Number of Units (Rooms) 110 108 58

Year of Completion 20102008


2003

Committed Occupancy 100.0%Name of Lessee (s) K.K Sawayaka Club K.K. Sawayaka Club 1 K.K Sawayaka ClubDate of Acquisition 6 March 2012Appraised Value 2 ¥891m (S$12.7m) ¥1,308m (S$18.6m) ¥951m (S$13.6m) Appraiser/ Date International Appraisals Incorporated / 31 December 2012

Note:1.

K.K Sawayaka

Amanogawa

and K.K Sawayaka

Club are both wholly owned subsidiaries of Uchiyama Holdings. On 14 October 2012, K.K Sawayaka

Club merged as the surviving company with K.K Sawayaka

Amanogawa2.


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Our Portfolio -

Japan

Property As Heim Nakaurawa Fureai no SonoMusashi Nakahara

Legato Higashi Sumiyoshi

Type Paid nursing home with care serviceLand Tenure FreeholdLand Area (sq m) 1,762 935 951Net Lettable Area (sq m) 2,692 1,847 2,828Number of Units (Rooms) 64 47 71

Year of Completion 2006 2006 2006

Committed Occupancy 100.0%Name of Lessee (s) As Partners Co., Ltd Shonan Fureai no Sono Planning Care Co. LtdDate of Acquisition 16 July 2010Appraised Value 1 ¥964m (S$13.7m) ¥762m (S$10.9m) ¥926m (S$13.2m) Appraiser/ Date Colliers International / 31 December 2012

Note:1.


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Our Portfolio -

Japan

Property Royal Residence Gotenyama Legato KatanoType Paid nursing home with care serviceLand Tenure Freehold FreeholdLand Area (sq m) 794 1,139Net Lettable Area (sq m) 1,560 1,688Number of Units (Rooms) 44 49

Year of Completion 2006 2004

Committed Occupancy 100%Name of Lessee (s) Shakai Fukuishi Sougou Kenkyjo Planning Care Co. LtdDate of Acquisition 16 July 2010Appraised Value 1 ¥485m (S$6.9m) ¥589m (S$8.4m)Appraiser/ Date Colliers International / 31 December 2012


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Our Portfolio -

Japan

Property Heart Life Toyonaka Palmary Inn Shin-KobeType Paid nursing home with care serviceLand Tenure Freehold FreeholdLand Area (sq m) 628 1,034Net Lettable Area (sq m) 1,254 3,964Number of Units (Rooms) 42 71

Year of Completion 20071992


Committed Occupancy 100%Name of Lessee (s) K.K Nihon Kaigo Iryo Center Asset Co., LtdDate of Acquisition 12 July 2013Appraised Value 1 ¥452m (S$6.0 m) ¥1,370m (S$18.0m)Appraiser/ Date Colliers International / 15 April 2013


(These two properties were acquired on 12 July 2013)

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Property Gleneagles Intan Medical Centre, Kuala LumpurType Medical CentreLand Tenure FreeholdLand Area (sq m) 3,450Strata Area of Property (sq m) 2,444 (owned by Parkway Life REIT)Number of Car Park Lots 69, all of which owned by Parkway Life REITYear of Completion 1999Committed Occupancy 100% (excluding car park)

Name of Lessee (s)1. Gleneagles Hospital (Kuala Lumpur) Sdn. Bhd.2. CIMB Bank Berhad

Date of Acquisition 1 August 2012

Appraised Value 1 RM 19,760,000 (S$8.1m)

Appraiser/ Date DTZ Nawawi Tie Leung / 31 December 2012Note:1.

The property was valued using the Income and Comparison Approaches. Based on an exchange rate of S$1.00 to RM2.44

Our Portfolio -

Malaysia

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Our Portfolio -

SummaryPortfolio Singapore Japan Malaysia Total

Type Hospital & Medical Centre

34 nursing homes;1 pharmaceutical product

distribution & manufacturing facility

Medical Centre

4 Hospitals & medical centre; 34 nursing homes;

1 pharmaceutical product distributing & manufacturing

facilityLand Tenure 3 Leasehold 32 Freehold & 3 Leasehold 1 Freehold 33 Freehold & 6 LeaseholdLand Area (sq m) 36,354 81,008 3,450 120,812Net Lettable Area (sq m) 118,136 109,381 2,444² 229,961Beds 730 - - 730Strata Units/ Car Park Lots

40 strata units/ 559 car park lots

-7 strata units/

69 car park lots47 strata units/ 628 car park lots

Number of Units (Rooms) - 2,472 - 2,472Year of Completion 1979 to 1993 1987 to 2010 1999 1979 to 2010Committed Occupancy 100% 100% (excluding car park) 100%

Master Leases/ Lessees 3 Master Leases; 1 Lessee

35 Master Leases; 18 Lessees 2 Lessees 38 Master Leases; 21 Lessees

Year of Acquisition 2007 2008 to 2013 2012 -

Appraised Value 1 S$980.4mKnight Frank Pte Ltd

¥32,618m (S$462.8m) Colliers International /

International Appraisals Incorporated

RM 19.8m (S$8.1m)DTZ Nawawi Tie Leung S$1,451m

Note:1.

Based on Appraised Values as at 31 December 2012 and 15 April 2013 2.

Based on Strata Area of the Property

(as at 1 August 2013)

INVESTOR RELATIONS PRESENTATION 1 August 2013plifereit.listedcompany.com/misc/PLifeQ22013Investor...

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Transcript of INVESTOR RELATIONS PRESENTATION 1 August 2013plifereit.listedcompany.com/misc/PLifeQ22013Investor...