Update on Parkway Life REIT

RNS Number : 7115Q

Symphony International Holdings Ltd

09 November 2012

 



Not for distribution, directly or indirectly, in or into the United States or any jurisdiction in which such distribution would be unlawful.

9 November 2012

Symphony International Holdings Limited ("SIHL" or the "Company")

Update on Parkway Life Real Estate Investment Trust

The Company is pleased to announce that one of its portfolio companies, Parkway Life Real Estate Investment Trust ("PLife REIT"), released its 2012 third quarter results ("3Q 2012").

PLife REIT made a press release on 8 November 2012, which is reproduced below.

ParkwayLife REIT
NEWS RELEASE
FOR IMMEDIATE RELEASE

PARKWAY LIFE REIT REPORTS STEADY GROWTH IN 3Q 2012

§ Gross revenue up 8.5% to S$23.9 million in 3Q 2012

§ Net property income up 9.5% to S$22.1 million in 3Q 2012

§ DPU up 7.1% to 2.58 cents for 3Q 2012 and 6.8% to 7.62 cents for YTD Sep 2012

TOTAL PORTFOLIO	1 Jul 12 to 30 Sep 12 (3Q 2012) S$'000	1 Jul 11 to 30 Sep 11 (3Q 2011) S$'000	Increase %	1 Jan 12 to 30 Sep 12 (YTD 3Q 2012) S$'000	1 Jan 11 to 30 Sep 11 (YTD 3Q 2011) S$'000	Increase %
Gross revenue	23,910	22,046	8.5	70,087	64,916	8.0
Net property income	22,054	20,145	9.5	64,321	59,471	8.2
Income available for distribution	15,568	14,537	7.1	46,091	43,149	6.8
Available Distribution Per Unit (cents)1 - DPU for the period -Annualised DPU	2.58 10.32	2.40 9.60	7.1 7.1	7.62 10.16	7.13 9.51	6.8 6.8
Annualised Distribution Yield (%), based on closing market price of $1.83 as at 30 Sep 2011	5.20	4.84	7.1	5.12	4.79	6.8

Note: The number of units used to calculate the Distribution per Unit ("DPU") comprise the number of units in issue as at 30 September 2012 and 30 September 2011 respectively

Singapore, 8 November 2012 - Parkway Trust Management Limited (the "Manager"), as manager of Parkway Life Real Estate Investment Trust ("PLife REIT") is pleased to announce a strong set of results for the third quarter ("3Q 2012") and first nine months ("YTD 3Q 2012") ended 30 September 2012.

Mr Yong Yean Chau, Chief Executive Officer of the Manager said, "We are pleased to report another quarter of steady growth in 3Q 2012 as we continued to benefit from our new acquisitions this year and enjoy revenue gains through our favourable rental lease structures. Amid a challenging global economic climate, proactive efforts to ensure that our income streams remain sustainable whilst prudently managing costs have paid off, enabling us to extend our earnings and deliver better returns to Unitholders."

PLife REIT registered gross revenue of S$23.9 million for 3Q 2012, an 8.5% increase from the previous corresponding period ("3Q 2011"). This was primarily due to a full quarter's revenue contribution from the three Japan properties acquired in March 2012 and two months' contributions from its units at Gleneagles Medical Centre Kuala Lumpur ("GMCKL", acquired on 1 August 2012). Revenue growth was further driven by higher rent from the Singapore properties mainly due to increased growth rate of CPI + 1% (i.e. 6.31%) in Year 6 of the lease term commencing 23 August 2012. For YTD 3Q 2012, gross revenue increased 8.0% from the same period last year ("YTD 3Q 2011") to S$70.1 million, due to revenue contribution from the properties acquired in 2011/2012 and higher rent from the existing properties. Net property income rose 9.5% and 8.2% year-on-year to S$22.1 million and S$64.3 million for 3Q 2012 and YTD 3Q 2012 respectively.

Finance costs rose by a marginal 1.7% for 3Q 2012 despite the growth of the portfolio. The increase was mainly due to additional financing costs incurred to finance the properties acquired in March and August 2012 and higher amortisation of transaction cost relating to debt facilities, offset by interest cost savings from the lower locked in hedged rates arising from the extension of interest rate hedges completed in August 2011. On a year-to-date basis, finance costs for YTD 3Q 2012 fell by 3.7%, helped largely by interest cost savings for the period.

As a result of the yield accretive Japan acquisitions, higher rent from the Singapore properties and savings from lower financing costs, distributable income for 3Q 2012 and YTD 3Q 2012 increased 7.1% and 6.8% respectively to S$15.6 million and S$46.1 million. Distributable income per Unit ("DPU") for 3Q 2012 grew from 2.4 cents in the same period last year to 2.58 cents.

Healthy balance sheet

Following the pre-emptive refinancing exercise completed in 25 June 2012 (Refer to announcement dated 2 August 2012 for details), PLife REIT has no refinancing needs for its existing total debt portfolio until FY2014, with a weighted average debt maturity period of 2.68 years (as at 30 September 2012). Its gearing level as at 30 September 2012 stood at 36.4%, well below the 60% gearing limit imposed under the Monetary Authority of Singapore's Property Funds Guidelines and representing further debt headroom for future acquisition opportunities.

Mr Yong concluded, "Notwithstanding near term uncertainties, the long term prospects of the regional healthcare industry remains firm, driven by increasing demand for quality healthcare. We will continue to work on improving our portfolio performance and strengthening our financial position to be able to capture growth opportunities as and when they arise."

                                                                        - ENDS -

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About Parkway Life REIT

Parkway Life Real Estate Investment Trust ("PLife REIT") is one of Asia's largest listed healthcare REITs by asset size. It invests in income-producing real estate and real estate related assets that are used primarily for healthcare and healthcare-related purposes (including but are not limited to, hospitals, healthcare facilities and real estate and/or real estate assets used in connection with healthcare research, education, and the manufacture or storage of drugs, medicine and other healthcare goods and devices).

PLife REIT owns a well-diversified portfolio of 37 properties with a total portfolio size of approximately S$1.4 billion as at 30 September 2012. It owns the largest portfolio of strategically-located private hospitals in Singapore comprising Mount Elizabeth Hospital, Gleneagles Hospital and Parkway East Hospital, covering an aggregate of 730 beds (as at 31 December 2011). In Japan, has 33 assets, including one pharmaceutical product distributing and manufacturing facility in Chiba Prefecture as well as 32 high quality nursing home and care facility properties in various prefectures. It also owns strata-titled units/lots at Gleneagles Medical Centre Kuala Lumpur in Malaysia.

For media queries, please contact: Kreab Gavin Anderson Tel [phone] Jean Zhuang / Clarence Koh Mobile: [phone] Email: [e-mail] / [e-mail] This press release 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 ("PLife REIT" and the units in PLife 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 PLife REIT, or any of its affiliates. Investors have no right to request the Manager to redeem their Units while the Units are listed. It is intended that Unitholders of PLife REIT may only deal in their Units through trading on Singapore Exchange Securities Trading Limited (the "SGX-ST"). Listing of the Units on the SGX-ST does not guarantee a liquid market for the Units. The past performance of PLife REIT or the Manager is not necessarily indicative of the future 4 As at 22 September 2010 performance of PLife REIT or the Manager. An investment in Units is subject to investment risks, including the possible loss of the principal amount invested.

About Symphony International Holdings

Symphony International Holdings (LSE:SIHL) is a London listed strategic investment company that invests in consumer businesses and develops luxury branded real estate, hospitality and healthcare ventures which are principally in Asia. It offers a way for investors to gain exposure to the rising disposable incomes and wealth in fast growing economies. Symphony's objective is to provide superior capital growth by investing in high quality companies and forming long-term business partnerships with talented entrepreneurs. Symphony is managed by Symphony Investment Managers which has a team of investment professionals with a broad range of expertise - many of them have been working in Asia for more than 25 years. For more information please visit our website at www.symphonyasia.com

No representation or warranty is made by the Company as to the accuracy or completeness of the information contained in this announcement and no liability will be accepted for any loss arising from its use.

This announcement is for information purposes only and does not constitute an invitation or offer to underwrite, subscribe for or otherwise acquire or dispose of any securities of the Company in any jurisdiction. All investments are subject to risk. Past performance is no guarantee of future returns. Prospective investors are advised to seek expert legal, financial, tax and other professional advice before making any investment decisions.

This announcement is not an offer of securities for sale into the United States. The Company's securities have not been, and will not be, registered under the United States Securities Act of 1933 and may not be offered or sold in the United States absent registration or an exemption from registration. There will be no public offer of securities in the United States.

End of Announcement

 

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