investor relations presentation full year...

INVESTOR RELATIONS PRESENTATION

FULL YEAR 2013 RESULTS

(“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. Recent Portfolio Development

1. Overview of PLife REIT

5. Growth Strategy & Core Markets

3. Our Properties

7. Appendix

3

2. 4Q and Full Year 2013 Key Highlights

6. Capital & Financial Management

1. Overview of PLife REIT

4

(“PLife REIT”)

PLife

REIT Portfolio (as at 31 December 2013)Largest listed healthcare REIT in Asian region with an enlarged portfolio of S$1.5 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:

5

Note:1.

Based on appraised values as at 31 December 20132.

Based on Gross Revenue as at 31 December 2013, Including Malaysia property at 0.4%

5

(“PLife

REIT”)

2. 4Q and Full Year 2013 Highlights6

4Q and Full Year 2013

Key Highlights

7

Steady DPU Growth Since IPO―

DPU for 4Q 2013 up 4.5% (4Q Y-O-Y)

to

2.82 cents

―

Full year DPU growth of 4.2% y-o-y

to 10.75 cents. Excluding the one-off

IRAS tax adjustment (S$0.7 million) in 2012, DPU growth is 5.5%

―

Strong growth of 70.9% since IPO

Healthy Balance Sheet―

Healthy gearing of 33.0% as at 31 December 2013

―

The all-in cost of debt is 1.47% as at 31 December 2013

―

Minimised

near term refinancing risk

Valuation Gain in Properties―

Valuation gain of S$32.0 million (2.2%) of the total portfolio

8


Key Highlights [cont]

Extension of JPY Income Hedges―

Natural hedge strategy to match JPY assets with JPY liabilities

―

Locked in JPY net income hedge for the next 5 to 6 years to mitigate any

volatility in JPY

―

Enhances the stability of distribution to Unitholders

and stable NAV

Well Spread Out Japanese Healthcare Portfolio With Potential

Catastrophic Risks Mitigated Our Japan properties are:

well spread out across the country, thus minimizing possibility of

earthquake risk affecting entire portfolio at any occurrence

low rise and in compliance with strict seismic safety standards

covered by portfolio insurance against fire, earthquake and tsunami.

9


Key Highlights [cont]

Organic Growth – Value Creation with 3 Asset Enhancement Initiatives―

Implemented 2 additional AEIs

for its Japan nursing home portfolio (Iyashi

no

Takatsuki Kan and Sawayaka

Nibankan)

―

Todate, PLife

REIT has completed 8 AEIs

for its Japan Portfolio

―

Successfully rolled out maiden AEI for the newly acquired Malaysia Portfolio1

―

The 3 AEIs

yielded attractive ROIs

ranging from 10% to 21.2% and are expected

to be completed by 1Q 2014

Note:1.

Acquisition for the Malaysia Portfolio (consisting of three ground floor retail units, three medical consulting suites, the entire level 8 and 69 carpark

lots at Gleneagles Intan

Medical Centre, Kuala Lumpur) was completed on 1 August 2012

Revenue GrowthRevenue Growth

22,000

23,000

24,000

25,000

4Q 2012 4Q 2013

23,98724,736

80,000

85,000

90,000

95,000

2012 2013

94,074 93,693

4Q Revenue (S$’000)

+3.1%+3.1% -0.4%-0.4%Full Year Revenue (S$’000)

10

4Q 2013 revenue grew by 3.1% to S$24.7 million

FY 2013 revenue decreased by 0.4% to S$93.7 million largely due to the weakened Japanese Yen exchange rate1

Note:1.

The Group has locked in the Japan net income hedge for the next 4 to 6 years. As such, the impact of the depreciating Japanese Yen is offsetted

by the foreign exchange gain from the net income hedge at the distributable income level

10

Net Property Income GrowthNet Property Income Growth

4Q 2013 NPI increased by 3.4% to S$23.2 million, contributed by:

Rent contributions from properties acquired in 2012 and 2013;

Upward minimum guarantee rent revision of Spore hospitals by 4.44%1; and

Offset by depreciation in the Japanese Yen2

FY 2013 NPI is S$87.6 million

Note:1.

In 7th

year of lease commencing 23 August 2013 to 22 August 20142.

The Group has locked in the Japan net income hedge for the next 4 to 6 years. As such, the impact of the depreciating Japanese Yen is offsetted

by the foreign exchange gain from the net income hedge at the distributable income level

0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

80.0

90.0

Mount Elizabeth

Gleneagles Parkway East

Malaysia portfolio

Japan portfolio

Total PLife portfolio

33.7

18.1

2.80.1

32.9

87.6

35.7

19.2

3.00.4

29.3

87.6

2012 2013

4Q NPI Full Year NPI

11

0.0

8.0

16.0

24.0

Mount Elizabeth

Gleneagles Parkway East

Malaysia portfolio

Japan portfolio

Total PLife portfolio

8.8

4.7

0.70.1

8.1

22.4

9.2

4.9

0.8 0.1

8.2

23.2

4Q 2012 4Q 2013

+3.4%+3.4%

11

Steady Distributable Income GrowthSteady Distributable Income Growth 4Q 2013 DI grew by 4.5% to S$17.0 million FY 2013 DI grew by 4.2% to S$65.1 million

14,500

15,500

16,500

17,500

4Q 2012 4Q 2013

16,31417,044

51,000

56,000

61,000

66,000

2012 2013

62,40565,054

4Q DI (S$’000)

+4.5%+4.5% +4.2%+4.2%Full Year DI (S$’000)

1212

13

6.0

7.0

8.0

9.0

10.0

11.0

FY 2007(annualised)

FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013

6.326.83

7.74

8.79

9.60

10.3110.75

DPU(cents)

+70.9%+70.9%

Note:1.

YTD 4Q 2013 accumulated DPU payout since IPO is 56.29 cents (inclusive of 3Q 2007 pro-rated payout) 2.

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

Strong DPU Growth Since IPO

DPU has grown steadily at a rate of 70.9% since IPO1

2

•

Acquired 2 Japan nursing homes in Hyogo and Toyonaka. At a combined purchase price of approximately S$23.1 million2

(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 39.

•

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.

Recent Developments

14Note:1.

Based on the exchange rate of S$1.00 = JPY762.

Based on the exchange rate of S$1.00 = JPY76.

•

Announced the sucessful

implementation of AEI initiatives for 2 of its Japan nursing home portfolio (Iyashi

no Takatsuki Kan and Sawayaka

Nibankan); and 1 newly acquired Malaysia property (Gleneagles Intan

Medical Centre, Kuala Lumpur) which

yielded attractive ROIs

ranging from 10% to 21.2% and are expected to be completed by 1Q2014.

24 Jan 2014

•

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 term3

and an expected annual ROI of 10%.

3 Jul 2013

25 Jan 2013

•

Acquired 5 Japan nursing homes located in Toba, Niihama, Kitakyushu and Nigata. At a combined purchase price of approximately S$59.2 million1

(JPY 4.5 billion), the acquisitions provide an expected net property yield of 7.0%. Acquisition was completed on 30 Sep 2013, bringing the total number of properties in the portfolio to 44.

30 Sep 2013

•

Increase in Minimum Guaranteed Rent for seventh year of lease term commencing 23 Aug 2013 for Singapore hospital properties, under the CPI+1% rental formula23 Aug 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

15

(“PLife REIT”)

16

Our Properties -

Singapore

A portfolio of 3 strategically-located world-class local private hospitals worth S$1.0 billion1

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 64% of total gross revenue2

Mount Elizabeth Hospital

Parkway East Hospital

Note:1.Based on appraised values as at 31 December 20132.Based on Gross Revenue as at 31 December 2013

Gleneagles Hospital

16

Master Lessee –

IHH Group

17

Khazanah1

IHH2 Parkway Life REIT3

The Manager (PTML)4

Wholly owned subsidiary of IHHSingapore Hospitals

Approx. 43.09%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 31 December 20137


Master Lease

Net Property Income

Master LesseePHSPL5

100%

Rental Payments

18

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$12.20 billion as at 31 December 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 December 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 eight countries, with over 3303 new beds in the pipeline to be delivered through new hospital developments and expansion of existing facilities.

Footnote 1: The information is extracted from IHH corporate website as at 31 December 2013

Master Lessee –

IHH Group1

(Continued from previous slide)

3 Distinct features of our Singapore Hospital Properties:

Our Properties –

Singapore

19

15 + 15 years with effect from 23 August 2007

c.f. average industry lease period of 3-5 years

100% committed occupancy

Long-term Master Leases with

Parkway Hospitals Singapore

PLife REIT does not bear these costs -

Property tax, Property insurance1, Property operating expenses

Not affected by inflation-related escalating expenses

Triple Net Lease Arrangement

CPI + 1% rent review formula for Singapore Hospital Properties guarantees 1% growth in minimum rent annually 2

Favourable Lease Structure

Notes: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

20

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

21

Senior Chonaikai Makuhari Kan 22

Our Properties –

Japan

A portfolio of 40 high quality healthcare properties worth S$454 million1, comprising:

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

39 private nursing homes

Master tenancy with 18 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 2013

22

23

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:

Favorable Lease Structure

Long term lease structure

with weighted average

lease term to expiry of

14.15 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 31 December 20132.

With effect from 13 June 20073.

Every 2 or 3 years for 9 out of the 12 properties; for the 3 other properties, the rent review negotiation shall occur in theevent the parties deemed that the existing rent is inappropriate

2424

25

Our Properties –

Japan

Approximately 73.4% of revenue from Japan portfolio is downside- protected

Revenue from Japan portfolio (as at 31 December 2013)

73.4%1

26.6%2

Downside-protectedSubject to marketrevision

Notes:1.

Based on Gross Revenue (as at Sep 2013) of 28 properties2.

Based on Gross Revenue (as at 31 Sep 2013) of 12 properties with

market revision subject to Lessor/Lessee mutual agreement (every 2 or 3 years for 9 out of the 12 properties; for the 3 other properties, the rent review negotiation shall occur in the event the parties deemed that the existing rent is inappropriate)

26

Diversified Nursing Home Operators

17 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


¥0

¥10,000

¥20,000

¥30,000

¥40,000

¥50,000

¥60,000

¥70,000

¥80,000

¥90,000

Operator

Mo

nth

ly R

en

tal C

on

trib

uti

on

Th

ou

san

ds K.K Sawayaka Club

K.K. Asset

K.K. Riei

Benesse Style Care Co., Ltd

Shonan Fureai no sono

Green Life Higashi Nihon

City Estate Co. Ltd

Planning Care Co., Ltd.

Miyako-Kenkoukai Medical Corporation

AS Partners Co., Ltd

Chojukaigo Center, Inc.

Green Life Co., Ltd

Message Co. Ltd

Shakai Fukushi Sougou Kenkyujo. Co. LtdK.K Nihon Kaigo Iryo Center

Vivac

Shakai Fukuishi Houjin Keiyu-Kai

26

27

Key Nursing Home Operators

Key nursing home operators contributed 52.9% 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

28

A portfolio of high quality healthcare assets worth S$8.6 million1 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 2013 by DTZ Nawawi

Tie Leung with exchange rate of S$1.00 to RM2.594

(“PLife

REIT”)

29

4. Recent Portfolio Development

Iyashi no Takatsuki Kan Asset Enhancement Initiative (“Takatsuki AEI”)

3-19, Haccho-Nishimachi, Takatsuki- CityOsaka Japan

30

Recent Portfolio Development

1. Takatsuki AEI –

Target Completion 31 Jan 2014

Takatsuki AEI

Note: 1.

Based on an assumed exchange rate of S$1.00 to JPY82.919 as at 31 December 2013

Construction of a new annex building at the existing backyard

Low capital outlay of JPY8.0 million (S$0.1 million)1 with attractive

returns―

ROI at 14.6%

―

1.2% in gross rent for unexpired lease term of approx. 11.7 years wef

1 Feb 2014

―

Our 7th AEI completed for Japan Portfolio

31

Sawayaka Nibankan Asset Enhancement Initiative(“Nibankan AEI”)

1-6-26 Ohata, Kokura-kita-ku, Kita-kyushu CityFukuoka, Japan

32

Recent Portfolio Development –

Cont’d

2. Nibankan

AEI –

Target completion 31 Jan 2014

Nibankan

AEI

Conversion of existing multi-purpose space at Level 2 to a Day

Service Area

Low capital outlay of JPY16.4 million (S$0.2 million)1 with attractive

returns―

ROI at 10.0%

―

6.4% increase in gross rent for unexpired lease term of approx. 16.4 years wef

1

Feb 2014

―

Our 8th AEI completed for Japan Portfolio and also our 2nd successful AEI for the

same nursing home further reinforcing PLife

REIT’s commitment to unlock value

from our properties

33

Note: 1.

Based on an assumed exchange rate of S$1.00 to JPY82.919 as at 31 December 2013

Malaysia Portfolio Asset Enhancement Initiative (“Malaysia Portfolio AEI”)

282 Jalan Amplang, 50450 Kuala Lumpur, Malaysia

34

Recent Portfolio Development –

Cont’d

3.

Malaysia Portfolio AEI –

Target completion 31 Jan 2014

Malaysia Portfolio AEI

Note: 1.

GKL (our largest tenant occupying 92% of the lettable

area of the Malaysia Portfolio, excluding carpark) is the hospital operator for Gleneagles Hospital, Kuala Lumpur which is located next to the subject property

2.

Based on an assumed exchange rate of S$1.00 to RM2.594 as at 31 December 20133.

The Level 8 space represents approximately 62.7% of the lettable

area of Malaysia Portfolio (excluding carpark)

Conversion of part of the space at Level 8 to uses supporting thehospital operations―

Level 8 (10,915 sf

) is currently tenanted to Gleneagles Hospital (Kuala Lumpur) Sdn. Bhd. (“GKL”)1

for Auditorium use

―

The AEI work involves the conversion of part of existing Level 8

Auditorium to uses supporting hospital operations (new medical treatment rooms, consulting rooms, ancillary supporting functions like reception area, staff

room and pantry)

Capital outlay of RM0.88 million (S$0.34 million)2 with attractive returns―

ROI at 21.2%

―

54% increase in gross rent for the Level 8 space with a fresh new 3+3 years tenancy wef

1 Feb 20143

―

PLife

REIT’s first AEI carried outside of Japan –

Successful roll out of an AEI for the newly acquired Malaysia Portfolio within a year of acquisition signifies PLife

REIT’s continual commitment to explore opportunities to extract values from its entire portfolio

35

5. Growth Strategy & Core Markets

36

(“PLife REIT”)

37

PLife REIT’s Next Phase of Growth

38

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

39

Note:1.

Based on Gross revenue as at 31 Dec 2013

Current Asset Mix1

65%33%

2%

Hospitals & medical centres Nursing homes

Pharmaceutical 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

40

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

6. Capital and Financial Management

41

(“PLife REIT”)

42

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$1.5billion1 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 31 Dec 13

Capital & Financial Management Strategy

Debt Maturity ProfileDebt Maturity Profile As at 31 December 2013

Weighted average term to maturity is 3.16 years

Current effective all-in cost of debt of 1.47%

Interest cover ratio of 9.5 times

0.050.0

100.0150.0200.0250.0

STL due 2014

JPY due 2015

SGD due 2016

JPY due 2017

JPY due 2018

JPY due 2019

4.5

160.880.0 86.8 112.5

59.1

S$ million

15.9% 17.2%22.4%

43

0.9%

31.9%

11.7%

1

Note:1.

As at 31 December 2013, a total of S$4.4 million and JPY6.0 million (S$0.1 million) were drawn down via the Short Term Loans for general working capital purposes.

Asset (S$’M) Asset Asset (S$(S$’’M)M)

179.3334.5

1,033.0

33% Gearing

40% Gearing

45% Gearing

60% Maximum Gearing

Additional D

ebt Capacity

Ample Debt Headroom

Debt headroom of S$179.3 million, S$334.5 million and S$1,033.0 million before reaching 40%, 45% and 60% gearing respectively

PLife

REIT has ample funding to support future acquisitions and growth opportunities

44

Debt Balance as at 31 December 2013

7. Appendix

45

(“PLife REIT”)

46

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)

Annex 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$646m S$326m S$49.4mAppraiser / Date CBRE / 31 December 2013

Note:1. Aggregate strata area for Mount Elizabeth Hospital and Gleneagles Hospital. Gross floor area for

Parkway East Hospital2. As at 31 December 20133. As at 31 March 2007

Our Portfolio -

Singapore

46

47

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 ¥2,900 m (S$35.0m) ¥1,360 m (S$16.4m) ¥1,070 m (S$12.9m)

Appraiser / Date Colliers International / 31 December 2013Note:1.

At an exchange rate of S$1.00 to JPY82.9192.

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

47

48

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 ¥1,520 m (S$18.4m) ¥885m (S$10.7m) ¥1,470m (S$17.7m) ¥992 m (S$12.0m) Appraiser/ Date Colliers International / 31 December 2013

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

48

49

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 ¥639m (S$7.7m) ¥1,420m (S$17.1m) ¥1,330m (S$16.0m) Appraiser/ Date Colliers International / 31 December 2013Note:1.


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

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

Corporation

49

50

Our Portfolio -

Japan

Property Amille Nakasyo Supercourt Kadoma Supercourt Takaishi- Hagoromo

Maison des 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 ¥601m (S$7.3m) ¥596m (S$7.2m) ¥671m (S$8.1m) ¥787m (S$9.5m) Appraiser/ Date DTZ / 31 December 2013

Note:1. At an exchange rate of S$1.00 to JPY82.919

50

51

Our Portfolio -

Japan

Property Maison des 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 ¥605m (S$7.3m) ¥779m (S$9.4m) ¥457m (S$5.5m) ¥1,410m (S$17.0m)Appraiser/ Date DTZ / 31 December 2013

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

51

52

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 ¥704m (S$8.5m) ¥309m (S$3.7m) ¥890m (S$10.7m) Appraiser/ Date International Appraisals Incorporated / 31 December 2013


52

53

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 ¥865m (S$10.4m) ¥655m (S$7.9m) ¥754m (S$9.1m) ¥632m (S$7.6m) Appraiser / Date International Appraisals Incorporated / 31 December 2013

Note:1.

At an exchange rate of S$1.00 to JPY82.919

53

54

Our Portfolio -

Japan

Property Sawayaka Higashikagurakan Sawayaka Hirakatakan Sawayaka Parkside ShinkawaType Paid nursing home with care serviceLand 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 ¥907m (S$10.9m) ¥1,315m (S$15.9m) ¥951m (S$11.5m) Appraiser/ Date International Appraisals Incorporated / 31 December 2013

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.


54

55

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 ¥979m (S$11.8m) ¥774m (S$9.3m) ¥940m (S$11.3m) Appraiser/ Date Colliers International / 31 December 2013

Note:1.


55

56

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 ¥492m (S$5.9m) ¥598m (S$7.2m)Appraiser/ Date Colliers International / 31 December 2013


56

57

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 ¥453m (S$5.5m) ¥1,370m (S$16.5m)Appraiser/ Date Colliers International / 31 December 2013


58

Our Portfolio -

Japan

Property Sawayaka Seaside Toba Sawayaka Niihamakan Sawayaka MinatokanType Paid nursing home with care serviceLand Tenure Freehold Freehold FreeholdLand Area (sq m) 2,803 4,197 3,551Net Lettable Area (sq m) 7,360 7,382 2,246Number of Units (Rooms) 129 135 50Year of Completion 2012 2012 2012Committed Occupancy 100.0%Name of Lessee (s) K.K. Sawayaka Club K.K. Sawayaka Club K.K. Sawayaka ClubDate of Acquisition 30 September 2013Appraised Value 1 ¥1,410m (S$17.0m) ¥1,324m (S$16.0m) ¥661m (S$8.0m) Appraiser/ Date International Appraisals Incorporated / 31 December 2013

Note:1.


58

59

Our Portfolio -

Japan

Property Sawayaka Mekari Nibankan Sawayaka KiyotakanType Paid nursing home with care serviceLand Tenure Freehold FreeholdLand Area (sq m) 1,354 2,597Net Lettable Area (sq m) 2,133 5,661Number of Units (Rooms) 61 108Year of Completion 2012 2013Committed Occupancy 100%Name of Lessee (s) K.K. Sawayaka Club K.K. Sawayaka ClubDate of Acquisition 30 September 2013Appraised Value 1 ¥311m (S$3.8m) ¥847m (S$10.2m)Appraiser/ Date International Appraisals Incorporated / 31 December 2013


59

60

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 22,220,000 (S$8.6m)

Appraiser/ Date DTZ Nawawi Tie Leung / 31 December 2013Note:1.

The property was valued using the Income and Comparison Approaches. Based on an exchange rate of S$1.00 to RM2.594

Our Portfolio -

Malaysia

61

Our Portfolio -

SummaryPortfolio Singapore Japan Malaysia Total

Type Hospital & Medical Centre

39 nursing homes;1 pharmaceutical product

distribution & manufacturing facility

Medical Centre

4 Hospitals & medical centre; 39 nursing homes;

1 pharmaceutical product distributing & manufacturing

facilityLand Tenure 3 Leasehold 37 Freehold & 3 Leasehold 1 Freehold 38 Freehold & 6 LeaseholdLand Area (sq m) 36,354 95,510 3,450 135,314Net Lettable Area (sq m) 118,136 134,163 2,444² 254,743Beds 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) - 2,955 - 2,955Year of Completion 1979 to 1993 1987 to 2013 1999 1979 to 2010Committed Occupancy 100% 100% (excluding car park) 100%

Master Leases/ Lessees 3 Master Leases; 1 Lessee

40 Master Leases; 18 Lessees 2 Lessees 43 Master Leases; 21 Lessees

Year of Acquisition 2007 2008 to 2013 2012 -

Appraised Value 1 S$1,021.4mCBRE

¥37,633m (S$453.9m) Colliers International /

International Appraisals Incorporated / DTZ

RM 22.2m (S$8.6m)DTZ Nawawi Tie Leung S$1,484m

Note:1.

Based on Appraised Values as at 31 December 2013 2.

Based on Strata Area of the Property

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