PLife – Phillip

Full Year 2009 Results

• Full year revenue of $66.7 million, net property income of $61.9 million, distributable income of $46.7 million.
• 4Q09 DPU of 2.05 cents, bringing full year DPU to 7.74 cents.
• Property portfolio asset size increased 10%, backed by acquisition of 8 nursing homes in Japan
• Maintain buy recommendation with fair value of $1.56

.
Results within expectations
Plife REIT reported full year revenue of $66.7 million (+23.7% y-y), net property income of $61.9 million (+23.1% y-y), distributable income of $46.7 million (+13.4% y-y). Full year DPU rose 13.3% to 7.74 cents. The results came in within our expectations (Gross revenue +2.8%, net property income +2.0%, distributable income +1.3%, DPU +1.3%). Revenue grew on the back of increased contribution from the inflation-linked rental from the Singapore hospitals as well as higher contribution from the Japan properties. Percentage revenue contribution from Singapore and Japan are 77% and 23% respectively, compared with 90% and 10% in 2008.

Portfolio asset value increased from $1,047.8 million in 2008 to $1,152.9 million in 2009. The portfolio consists of 3 Singapore hospitals and 18 Japan properties (17 nursing homes, 1 pharmaceutical products distribution facility) In the valuation as at 31st Dec 2009, the Singapore hospitals recorded 3.8% increase in valuations, while the Japan properties (excluding 8 nursing homes acquired in Nov 2009) recorded 6.5% decrease in valuations. For the full year, Plife recognized $28.9 million revaluation gain to its income statement.