Proactive Asset Management

Through proactive asset management, PLife REIT constantly strives to maximise portfolio performance in order to enhance the revenue-generating ability of its properties and ensure sustainable earnings for its Unitholders.

As part of PLife REIT’s initiative to drive organic growth and foster good Landlord-Lessee relationships, it seeks to work closely with its Lessees to understand their operational requirements and embark on Asset Enhancement Initiatives (“AEIs”) which are tailored to suit the needs of its healthcare operators and end users of the properties. Such strategic collaborative arrangements serve to benefit all parties and promote greater revenue sustainability for PLife REIT.

PLife REIT has, leveraging on its clustering/ partnering approach and good landlord-lessee relationships, successfully expanded its nursing home portfolio and completed 12 AEIs in Japan since its maiden entry in 2008 and one at its Malaysia property (Gleneagles Intan Medical Centre Kuala Lumpur).

Kikuya Warakuen

Sanko

The recent AEIs were completed in July 2017 at the Kikuya Warakuen and Sanko property, Japan. As part of PLife REIT’s Green and Sustainable initiatives, the AEIs involve the conversion of existing lighting system to full energy efficient LED system which would result in overall cost savings with reduced energy consumption and longer lifespan of the LED system. The returns from these AEIs are attractive for Kikuya Warakuen and Sanko with rent increasing by 1.07% and 0.63% respectively for the unexpired lease term of 29.2 years.

Moving forward, PLife REIT remains committed to exploring and rolling out more of such AEIs across its entire portfolio to extract the greatest value from its properties. To further strengthen PLife REIT's earnings resiliency, it is also focused on consolidation efforts for its Japan portfolio to optimise operating synergies and achieve greater cost savings.