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 ten AEIs in Japan since its maiden entry in 2008 and one at its Malaysia property (Gleneagles Intan Medical Centre Kuala Lumpur).

The recent AEI was completed in April 2017 at the Sawayaka Niihamakan property, Japan. The asset enhancement initiative involves the conversion of existing ground floor space to an after-school day service area for handicapped children. With the new service, the Sawayaka Niihamakan property will be able to expand and provide more services to cater the needs of the community.The returns from this AEI are attractive with rent increasing by 0.3% for the unexpired lease term of 16 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.