26 January 2018
PARKWAY LIFE REAL ESTATE INVESTMENT TRUST - Outlook
Commenting on the performance of 2017, Mr. Yong Yean Chau, Chief Executive Officer of
the Manager said: “Building on our strategies and network developed in the last 10 years, we
are pleased to deliver another sound set of results for Unitholders in 2017. In 1Q 2017, we
completed our 2nd Strategic Japan Asset Recycling Exercise and successfully rebalanced our
Japan portfolio with the acquisition of five better quality Japan properties. Maintaining a strong
focus in cultivating good Landlord-Lessee relationships, three more asset enhancement
initiatives were rolled out for our Japan portfolio in 2017, bringing the total to twelve to-date.
Throughout the year, proactive financial and capital management continues to work in unison
to enhance the stability of distributions to Unitholders. We enter our second decade with
confidence, with a healthy level of gearing and a lowered effective all-in cost of debt. With no
refinancing need till 2019, the weighted average debt to maturity had been lengthened to 3.1
years from 2.9 years7, with a well staggered debt maturity profile. Our interest cover ratio
stands healthy at 11.3 times with interest rate exposure largely hedged and the JPY net
income fully hedged till 1Q 2022.
Moving into the new financial year, our sound fundamentals continue to serve as the bulwark
as we stay watchful for growth opportunities for PLife REIT.”
The long-term outlook of the industry continues to be driven by favourable patient demographics and
demand for better quality healthcare and aged care services.
Parkway Life REIT’s enlarged portfolio of 49 high-quality healthcare and healthcare-related assets
places it in a good position to benefit from the resilient growth of the healthcare industry in the Asia
Pacific region.
In addition, Parkway Life REIT is supported by favourable rental lease structures, where at least 95%
of its Singapore and Japan portfolios have downside revenue protection and 62% of the total portfolio
is pegged to CPI-linked revision formulae, ensuring steady future rental growth whilst protecting
revenue stability amid uncertain market conditions.
the Manager said: “Building on our strategies and network developed in the last 10 years, we
are pleased to deliver another sound set of results for Unitholders in 2017. In 1Q 2017, we
completed our 2nd Strategic Japan Asset Recycling Exercise and successfully rebalanced our
Japan portfolio with the acquisition of five better quality Japan properties. Maintaining a strong
focus in cultivating good Landlord-Lessee relationships, three more asset enhancement
initiatives were rolled out for our Japan portfolio in 2017, bringing the total to twelve to-date.
Throughout the year, proactive financial and capital management continues to work in unison
to enhance the stability of distributions to Unitholders. We enter our second decade with
confidence, with a healthy level of gearing and a lowered effective all-in cost of debt. With no
refinancing need till 2019, the weighted average debt to maturity had been lengthened to 3.1
years from 2.9 years7, with a well staggered debt maturity profile. Our interest cover ratio
stands healthy at 11.3 times with interest rate exposure largely hedged and the JPY net
income fully hedged till 1Q 2022.
Moving into the new financial year, our sound fundamentals continue to serve as the bulwark
as we stay watchful for growth opportunities for PLife REIT.”
The long-term outlook of the industry continues to be driven by favourable patient demographics and
demand for better quality healthcare and aged care services.
Parkway Life REIT’s enlarged portfolio of 49 high-quality healthcare and healthcare-related assets
places it in a good position to benefit from the resilient growth of the healthcare industry in the Asia
Pacific region.
In addition, Parkway Life REIT is supported by favourable rental lease structures, where at least 95%
of its Singapore and Japan portfolios have downside revenue protection and 62% of the total portfolio
is pegged to CPI-linked revision formulae, ensuring steady future rental growth whilst protecting
revenue stability amid uncertain market conditions.
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