Parkway Life REIT

[winston]

Not vested. From UOB-Kay Hian

Parkway Life REIT (BUY/S$1.21/Target: S$1.52)

The minimum rent payable by each hospital is set at CPI + 1% above rent payable in the preceding year. Assuming CPI is 5.5% in 2008, the minimum rental increase for Gleneagles, Mount Elizabeth and East Shore hospitals is 6.5%.

Parkway Life REIT will be acquiring two nursing homes, Yokohama City and Ibaraki City, in Japan for S$34.9m. Nursing home operator ZECS Community Co Ltd will lease back the properties for 15 years with option to extend for an additional five years.

The properties provide net operating income yield of 6.1% and 6.7% respectively and rental income is index-linked to inflation with rent reviews every five years.

[ishak]

PARKWAY LIFE REIT’S 2Q FY2008 RESULTS OUTPERFORMS FORECAST
• Gross rental revenue at S$12.49 million, exceeds forecast by 8.83%
• Net property income at S$11.70 million, exceeds forecast by 8.14%
• Distribution Per Unit (“DPU”) for the period is 1.66 cents, exceeds forecast by 6.35%


Singapore, 25 July 2008 – Parkway Life Real Estate Investment Trust (“PREIT”) is pleased to announce its second quarter results for the period 1 April to 30 June (“2Q”), for the financial year ending 31 December 2008 (“FY2008”). Parkway Life REIT was listed on the Mainboard of the Singapore Exchange on 23 August 2007.

Parkway Life REIT saw higher gross rental revenue as a result of higher than expected revenue from its Singapore hospital assets, as well as additional income from its three new Japanese assets. Gross rental revenue was at S$12.49 million for 2Q FY2008. This is an 11.00 % increase over the minimum guaranteed rent of S$11.25 million or an 8.83% increase over the forecast figure of S$11.48 million.
Net property income was at S$11.70 million for 2Q FY2008, a 10.44% increase over the minimum guaranteed rent of S$10.60 million or an 8.14% increase over the forecast figure of S$10.82 million. Income available for distribution was at S$10.01 million for 2Q FY2008, an 8.96% increase over the minimum guaranteed rent of S$9.19 million or a 6.35% increase over the forecast figure of S$9.41 million. Total expenses for 2Q FY2008 were at S$2.92 million, or a 22.10% increase over the forecast figure of S$2.39 million. This is mainly a result of increased contributions to management and sinking fund for Mount Elizabeth Hospital under property expenses and higher trust level expenses under non-property expenses. The impact of the increase in expenses to DPU is not expected to be significant.

DPU for 2Q FY2008 is 1.66 cents, in line with the increase in income available for distribution. The annualised DPU is 6.65 cents. The distribution payment date is expected on 27 August 2008.

Ms Justine Wingrove, Chief Executive Officer of Parkway Trust Management Limited, the manager of Parkway Life REIT said, “PREIT continues to enjoy a strong set of results which have improved quarter-on-quarter. We believe that the private healthcare sector remains robust even amidst the current volatile market conditions. As a result, PREIT will not only enjoy strong growth from its current portfolio, but will also benefit from attractive asset acquisition opportunities.”

Diversification of PREIT’s portfolio

PREIT’s total portfolio size stands at S$902.20 million, following the acquisition of its latest assets earlier this year. On 16 May 2008, PREIT completed its first investment of a pharmaceutical products distributing and manufacturing facility in Chiba prefecture Japan, for a total purchase price of S$35.00 million. On 30 May 2008, it completed its investment of two high quality nursing homes in Yokohama City, Kanagawa Prefecture, and Ibaraki City, Osaka, for a total purchase price of S$35.00 million. The purchase price of the pharmaceutical products distributing and manufacturing facility, and the two nursing homes, collectively, (the “Japan Properties”) and the acquisition costs have been fully funded by debt, and have increased the total portfolio size by S$70.00 million.

For 2Q FY2008, gross rental revenue from the Japan Properties is S$0.52 million, net property income is S$0.47 million and income available for distribution is S$0.13 million. The total annualised percentage contribution of the Japan Properties is 8.00% by asset size, gross revenue and net property income.

Strong performance at Singapore hospitals

Total gross rental revenue from the Singapore hospitals for 2Q FY2008 was S$11.97 million, a 4.30% increase from the forecast figure of S$11.48 million or a 6.40% increase from the minimum guaranteed total rent of S$45.00 million per year. The gross rental revenue figure of S$11.97 million comprised of total base rent of S$7.50 million and variable rent of S$4.47 million.

Outlook for 2008

PREIT will continue to focus on yield-accretive acquisitions across Asia Pacific. Its low gearing level at 10% provides it with financial flexibility and sustainable debt capacity to fund future acquisitions. PREIT’s target gearing is at 40% to 45%.
Ms Wingrove added, “We will endeavour to provide stable and sustainable returns to Unitholders. We continue to focus on asset enhancement initiatives within our current portfolio and will also proactively identify yield-accretive assets for acquisition in our target markets including China, India, Japan, Malaysia, Singapore, Taiwan, Australia and Thailand.”

NAV per Unit: $1.34
Gearing: 10.25%
Yield: 5.938% @ $1.12

Distribution Timetable
Distribution Period: 01 April 2008 to 30 June 2008
Distribution per unit: 1.66 cents
Ex-Date: 31 July 2008, 9.00am
(Units will be traded ex-date)
Books Closure Date: 4 August 2008 at 5pm
Distribution payment Date: 27 August 2008

[ishak]

PLife - BT

PARKWAY Life Real Estate Investment Trust (P-Reit) yesterday announced a distributable income of $10.0 million for the second quarter ended June 30, 2008, beating its forecast of $9.4 million by 6.4 per cent.

Distribution per unit (DPU) for the three months was 1.66 cents, also 6.4 per cent higher than the forecast DPU of 1.56 cents.

Net property income for Q2 was $11.7 million, 8.1 per cent higher than the trust's forecast of $10.8 million.

There is no comparable period for 2007 as P-Reit was only listed on the Singapore Exchange in August last year.

The trust benefited from higher gross rental revenue in Q208 as a result of better-than-expected revenue from its Singapore hospital assets, as well as additional income from three new Japanese assets.

Q2 gross rental revenue was $12.5 million. The bulk of it came from the trust's Singapore hospitals, where total gross rental revenue was $12.0 million, a 4.3 per cent increase from the forecast figure of $11.5 million.

For the first six months of 2008, the trust's distributable income was $19.8 million while the DPU was 3.29 cents - both 5.1 per cent higher than the forecast.

Justine Wingrove, chief executive of P-Reit's management team, said that the private healthcare sector continues to remain robust even in the current volatile market conditions.

'As a result, P-Reit will not only enjoy strong growth from its current portfolio, but will also benefit from attractive asset acquisition opportunities,' she noted. Target markets for acquisitions include Australia, China, India, Japan, Malaysia, Singapore, Taiwan and Thailand, Ms Wingrove added.

The Reit's total portfolio size now stands at $902.2 million, following acquisition of its latest assets earlier this year. In May 2008, P-Reit bought a pharmaceutical products distributing and manufacturing facility as well as two nursing homes in Japan for $70 million in all.

P-Reit lost three cents to close at $1.12 yesterday. The stock has shed 0.9 per cent since the start of the year.

[ishak]

PLife - DBS

Stable earnings

Comment on Results
2Q and 1H FY08 results were within expectations. 2Q gross revenue was S$12.49m, exceeding its IPO forecast by 8.8%. Singapore hospitals contributed S$11.97m gross revenue, while its three Japanese assets that were acquired in May contributed S$0.5m. Total expenses was S$2.92m, 22% higher than forecast due to higher contribution expenses for management & sinking fund for Mt Elizabeth Hospital, and higher trust level expenses following the addition of the Japan properties. 2Q net property income (NPI) was S$11.7m. DPU for 2Q is 1.66 Scts. Ex-date is 31 Jul and payment is expected on 27 Aug.

1H gross revenue and NPI are make up 49.7% and 47.7% of our full year forecasts. We expect PREIT to meet our forecasts with full contribution from its three Japanese assets in 2H.

Recommendation
Portfolio valued at S$902.2m. This includes its three assets in Japan – a pharmaceutical products distributing and manufacturing facility and two nursing homes. Singapore accounts for 92% of total assets, and Japan the rest.

Low gearing of 10% offers room for more debt funded acquisitions – it can borrow up to S$570m before reaching its 45% target gearing level. We are expecting more acquisitions as management has indicated its ambition to grow asset base to S$1.6bn.

Maintain Buy, TP S$1.35 based on DCF (WACC: 6.3%, Terminal growth: 1%). With Jun CPI soaring to 7.5%, MAS recently raised 2008 CPI forecast to 6%–7%. We like PREIT in today’s inflationary environment because its Singapore hospital gross revenue is pegged to the higher of adjusted hospital revenue or 1%+CPI. We have assumed CPI of 6.4% for 2008 in our forecasts. At current price of S$1.12, PREIT offers attractive net dividend yield of 6.1% and 6.4% for FY08F and FY09F, respectively.

[ishak]

Defensive and resilient

Enhancing contributions from Singapore Hospitals. Parkway Life REIT has embarked on asset enhancement initiatives to improve the returns from low revenue yielding space. Space previously occupied by management and support functions has been decanted to create centres of excellence. Renovation works are ongoing to set up Parkway Cancer Centre at Mount Elizabeth Hospital, Parkway Heart Centre and Obstetrics & Gynaecology wards at Gleneagles Hospital and Women Centre at East Shore Hospital. The enhancement allows the hospitals to hire more specialist consultants, thus increasing patient admission and variable rent. Parkway Life REIT does not have to bear cost incurred for refurbishment, as the lessee, Parkway Holdings, is responsible for capex till Dec 09.

Protection against slowdown. CPI was 2.1% in 2007. The minimum rent payable from Singapore hospitals this year would be 3.1% (CPI + 1%) higher than levels in 2007. The downside protection kicks in on 23 Aug 08, a year after listing. Parkway Life REIT is protected against fluctuation in admission of international patients due to slower growth in regional countries. Revenue contribution from Mount Elizabeth, Gleneagles and East Shore hospitals increased by only a marginal 0.8% qoq to S$12m in 2QFY08. This comprises a base rent of S$7.5m and a variable rent of S$4.5m.

Diversification from acquisitions in Japan. Parkway Life REIT has acquired a pharmaceutical production and distribution facility in Matsudo City, Chiba prefecture and two nursing homes located in Yokohama City and Ibaraki City for S$69.4m. In particular, rental income from the two nursing homes is index-linked to inflation with rent reviews every five years. These acquisitions allow Parkway Life REIT to gain exposure to Japan where the population is ageing rapidly. Revenue contribution from the Japan properties was S$0.5m in 2Q08 (1.5- month contribution from Matsuda facility, 1-month contribution from nursing homes). The Japan properties will provide full-quarter contribution in 3Q08.

Low gearing provides significant room for acquisitions. Parkway Life REIT will partner sponsor Parkway Holdings to expand in the region with Parkway Life REIT acquiring third-party hospital buildings and Parkway Holdings taking over as operator. The company’s gearing is low at only 10%. There is headroom of S$570m for growth via acquisitions if it utilises debt capacity for optimal debt level of 45%. Parkway Life REIT targets to double the size of its portfolio to S$1.6b by end-09. It also plans to diversify into medical offices, research & development (R&D) facilities and warehouse and manufacturing facilities for biomedical and pharmaceutical industries.

Reiterate BUY. We like Parkway Life REIT for its healthcare focus. It provides strong defensive qualities as rental income from hospitals in Singapore and nursing homes in Japan is linked to inflation. Our target price is S$1.54 based on the discounted dividend model (required rate of return: 7.6%; terminal growth: 2.8%). The stock is trading at a 12.7% discount to NAV/share of S$1.34. Parkway Life REIT declared DPU of 1.66 cents, which will be paid on 27 Aug 08.

[ishak]

ESTABLISHMENT OF S$500,000,000 MULTICURRENCY MEDIUM TERM NOTE PROGRAMME
18 August 2008

Parkway Trust Management Limited (the "Company"), as manager of Parkway Life Real Estate Investment Trust ("Parkway Life REIT"), wishes to announce that Parkway Life MTN Pte. Ltd. (the "Issuer"), a wholly-owned subsidiary of HSBC Institutional Trust Services (Singapore) Limited (in its capacity as trustee of Parkway Life REIT) (the "Parkway Life REIT Trustee"), has established a S$500,000,000 Multicurrency Medium Term Note Programme (the "MTN Programme") and that in connection therewith, Parkway Life REIT (through the Company) has appointed Standard Chartered Bank to act as the arranger and the dealer of the MTN Programme.

Under the MTN Programme, the Issuer may from time to time issue notes in Singapore dollars, United States dollars or any other currency as may be agreed between the relevant dealer of the MTN Programme and the Issuer (the "Notes"). Notes may be issued in various amounts and tenors, and may bear fixed, floating or variable rates of interest. Hybrid Notes or zero coupon Notes may also be issued under the MTN Programme. The Notes shall constitute direct, unconditional, unsecured and unsubordinated obligations of the Issuer ranking pari passu, without any preference or priority among themselves, and pari passu with all other present and future unsecured obligations (other than subordinated obligations and priorities created by law). All sums payable in respect of the Notes will be unconditionally and irrevocably guaranteed by the Parkway Life REIT Trustee.

The net proceeds from the issue of the Notes (after deducting issue expenses) will be on-lent by the Issuer to the Parkway Life REIT Trustee. It is further intended that the Parkway Life REIT Trustee will use the proceeds of each loan advanced by the Issuer to refinance existing borrowings, investments and general working capital and funding purposes of Parkway Life REIT.

Upon establishment of the MTN Programme, the MTN Programme has been assigned a rating of "BBB+" by Fitch, Inc. A rating is not a recommendation to buy, sell or hold securities, does not address the likelihood or timing of prepayment, if any, or the receipt of default interest and may be subject to revision or withdrawal at any time by the assigning rating organisation.
Application has been made to the Singapore Exchange Securities Trading Limited ("SGX-ST") for permission to deal in and quotation for any Notes which are agreed at the time of issue thereof to be so listed on the SGX-ST. Such permission will be granted when such Notes have been admitted to the Official List of the SGX-ST. The SGX-ST assumes no responsibility for the correctness of any of the statements made or opinions expressed or reports contained herein. Admission to the Official List of the SGX-ST and quotation of any Notes on the SGX-ST is not to be taken as an indication of the merits of the Company, the Parkway Life REIT Trustee, their respective subsidiaries, their respective associated companies (if any), the MTN Programme or such Notes.

BY ORDER OF THE BOARD
Parkway Trust Management Limited
(Company registration no. 200706697Z)
As manager of Parkway Life Real Estate Investment Trust

[ishak]

Above the crowd

• Good exposure to healthcare assets. PLife is a healthcare real estate investment trust with six healthcare-related assets located in Singapore and Japan. It is the largest private hospital owner in Singapore with a 24% share of the private market. We expect demand for this asset class to grow strongly on the back of a greying Asian population, blooming medical tourism in the region and the Singapore government’s initiatives to establish a biomedical industry.

• Resilient income streams in inflationary environments. PLife’s income streams are protected by long lease periods of 15 years for all its assets, built-in rental adjustments linked to inflation rates, quality tenants and low property expenses.

• Lowest gearing among S-REITs, ready for acquisition growth. PLife has the lowest gearing among S-REITs, at 10% in 2Q08. With moderating borrowing costs and credit lines in place, it is equipped to grow through acquisitions in the near term.

• Initiate with Outperform and DDM-derived valuation of S$1.46. Using DDM valuation, we initiate coverage with a target price of S$1.46 (discount rate 8.1%, terminal growth 2%). This offers a total prospective return of 43.9% from potential price upside of 37.7% and a forward yield of 6.2%. PLife trades at a 22% discount to its NAV of S$1.36, representing a reasonable entry point in view of possible shortterm catalysts from acquisitions. PLife replaces A-REIT as our top pick in our SREIT universe.

[ishak]

See http://wookup.com/finance/forum/viewtopic.php?f=30&t=536&p=24583#p24583

[ishak]

PARKWAY LIFE REIT STRENGTHENS POSITION IN NURSING HOMES MARKET IN JAPAN
29 Sep 2008

Summary: BT
Parkway Life Reit buys 7 nursing homes in Japan

Parkway Life Real Estate Investment Trust, through its wholly owned-subsidiary, Parkway Life Japan3 Pte Ltd, had entered into an agreement to buy seven nursing homes in Japan for a total of ¥7,845,200,000 (S$105.7 million).

The acquisition of the seven nursing homes is yield accretive to unitholders, said the trust. The net initial yield of the portfolio is 6.9 per cent, with individual yields ranging from 6.7 per cent to 7.2 per cent.

Japan is home to the fastest aging population in the world, and the nursing homes were acquired from a wholly owned-subsidiary of Kenedix Inc, a real estate investment corporation in Japan with ¥840 billion (S$11.3 billion) of assets under management.

Acquires seven nursing homes for a total consideration of S$105.7 million Singapore, 29th September 2008 – Parkway Trust Management Limited (the “Manager”), the manager of Parkway Life Real Estate Investment Trust (“PREIT”), is pleased to announce that HSBC Institutional Trust Services (Singapore) Limited, as trustee of Parkway Life REIT (the “Trustee”), through its wholly owned-subsidiary Parkway Life Japan3 Pte Ltd, had entered into a Tokumei-Kumiai agreement in relation to the acquisition of seven nursing homes located in Japan which have been acquired by GK Healthcare 1, a Godo Kaisha, on 29th September 2008, at a total purchase price of ¥7,845,200,000 (approximately S$105.7 million1) and that the acquisition has been completed today. The seven nursing homes were acquired from a wholly owned-subsidiary of Kenedix Inc, a real estate investment corporation in Japan with ¥840 billion (S$11.3 billion) of assets under management.

“PREIT is taking advantage of current soft market conditions, to negotiate the purchase of a very high quality nursing home portfolio on very favourable terms. There are few markets in Asia where an investor can enjoy a 400 basis point spread between the net initial yield and cost of debt,” said Ms Justine Wingrove, Chief Executive Officer of the Manager.

Each of the nursing homes has a long term lease agreement with an operator. The average unexpired lease term is 17 years. Five of the seven properties also have back-up operator agreements. In addition, PREIT has negotiated a rental guarantee from Kenedix Inc, for a period of 7 years and three months, capped at 5% of the
purchase price.

“The guarantee and back-up agreements are a good example of innovative ways in which PREIT heightens the credit quality of our portfolio and provides certainty for future distributions to our unitholders,” added Ms Wingrove.

Rationale for the investments
Japan faces the fastest aging population in the world. In 2002, the number of people over 65 years was 23.6 million or 18% of the population in Japan. By 2015, the total number of people over 65 years is expected to reach 34.7 million or 26% of the population. As such, Japan implemented the National Nursing Care Insurance System in the year 2000 and this has resulted in a blossoming of the nursing care industry. The government has forecasted that in 2015 and 2025, nursing care insurance payments are estimated to cost ¥12 trillion (S$161.7 billion) and more than ¥20 trillion (S$269.5 billion), respectively. The Ministry of Economy, Trade and Industry in Japan observed that the nursing care services market reached a total size of ¥6.3 trillion in 2005.

“We have observed an exponential growth of the nursing care market in Japan and will continue to proactively seek out similar yield accretive acquisitions to further diversify our asset portfolio and grow our income stream,” added Ms Wingrove.

Expected investment returns
The acquisition of the seven nursing homes is yield accretive to unitholders. The net initial yield of the portfolio is 6.9%, with individual yields ranging from 6.7% to 7.2%.

Funding for the investments
The acquisition of the seven nursing homes is funded by debt, which will increase PREIT’s gearing from 10.3% to 19.7%. PREIT is drawing down from existing committed debt facilities which are already in place. The investments were completed on 29th September 2008.

General description of the properties
The seven nursing homes were properties offered for sale by Kenedix Inc. These freehold properties are located across Japan including Tokyo, Chiba, Saitama, Kanagawa and Hyogo.

All the nursing homes are managed by established operators in Japan. They are strategically located within walking distance from major train stations in Japan and are operating at close to maximum capacity, with an average occupancy rate of 94%. The nursing homes provide excellent high quality accommodation with single room occupancy, emergency call buttons with 24-hour nursing care, specialist bathing facilities and equipment including stretcher baths.

More details at http://info.sgx.com/webcoranncatth.nsf/VwAttachments/Att_905C674856C16108482574D3003AA3EF/$file/Annc29Sept08.pdf?openelement

[ishak]

Acquires seven nursing homes in Japan
30 Sep 2008

S$105.7m worth of acquisitions. Parkway Life REIT announced last night that it has completed the acquisition of seven nursing homes in Japan for S$105.7m from Yugem Kaisha KSLC, a wholly-owned subsidiary of Kenedix Inc. The net initial yield of the portfolio is 6.9%, with individual yields ranging from 6.7% to 7.2%. All the assets have freehold tenures.

Long lease structures of 17 years. All seven properties have average lease terms of 17 years with an operator, with five having back-up operator arrangements. The average occupancy level of the portfolio is 94%.

Rental guarantee from vendor. Kenedix Inc., a Japanese real estate asset manager with S$11.3bn of assets under management, has granted PLife a rental guarantee for seven years and three months, which would cover any deficit in revenue from any of the seven properties, capped at 5% of the purchase price. This is a provision separate from the long-term lease agreements with the nursing-home operators. Management assures that the provision was given as an additional safety precaution and there has been no default payment in the last three years. There are also market rent reviews at 2-5-year intervals specified in the leases.

100% debt funding; current debt to be refinanced on 3-year tenure. PLife will be financing the acquisition with debt, drawn temporarily from a short-term facility. This raises its total debt to about S$200m (inclusive of S$94m short-term debt as at 2Q08). However, management will be refinancing the S$200m debt with a 3-year bilateral loan within one month. Half of the loan has been committed while the other half has received in-principle approval pending documentation. All-in cost of debt for the 3-year facility is 3%, below our assumption of 3.2% for FY08. The debt will be fixed at this level over its full tenure. Borrowing currency is the Japanese yen, providing a natural hedge.

Asset portfolio exceeds S$1bn; gearing rises to 19.7%. With the completion of this portfolio, PLife’s assets increase from S$902m to S$1bn. Full funding with debt will increase its asset leverage from 10.2% to 19.7% after the acquisition. This is still significantly lower than the optimal level of 45% and regulatory limit of 60%. Growth of Japanese nursing home industry. Japan has one of the fastest aging populations in the world. The company forecasts that the number of people over 65 years of age is expected to reach 34.7m in 2015, or 26% of Japan’s population, up from 18% in 2002. According to management, the Japanese nursing-care industry has blossomed since the implementation of the National Nursing Care Insurance System in 2000. Under this system, the government subsidises about 50% of the nursing-care expenses of the elderly. In a nursing home, a cash deposit or bond equivalent to five years’ payment of fees (excluding nursing-care fees) is typically collected from residents on admission. This bond may vary with the age of the resident and the type of accommodation provided. Subsidies from the government and the high level of cash deposits collected underpin the cash flows of nursing homes, while an aging population should ensure the relative resilience of the nursing-home industry in Japan.

Comments
DPU-accretive; contributions captured in earlier assumptions. The net initial yield of the portfolio of 6.9% matches PLife’s dividend yield of 6.9% while cost of debt of 3% is below than our estimate of 3.2% for FY08, making this acquisition DPU-accretive. In our report on PLife on 28 Aug 08, we have assumed S$250m of acquisitions for FY08. With this acquisition and the three Japanese assets acquired earlier in the year, PLife has acquired S$176m worth of assets in FY08, meeting 70% of our full-year target. In view of PLife’s still very low gearing, and access to debt at competitive rates, we anticipate that our acquisition forecast of S$250m for FY08 can be achieved. Hence, we retain our earnings estimates for PLife.

Impact on revenue. Based on the net initial yield of 6.9%, net property income from this portfolio, estimated at S$6.9m, would have formed about 15% of PLife’s 1H08 annualised revenue of S$45.6m. The new acquisitions would reduce PLife’s reliance on Singapore, and increase Japan’s contribution from 8% to 20%.

Debt headroom at S$470m. PLife has debt headroom of S$470m before it reaches the optimal gearing level of 45%. This should support more acquisitions till 2009.

Positive. We take a positive view of the acquisition, on account of its DPU accretion. We also like the resilient nursing-home industry in Japan, the long leases that have been secured, and anti-default measures put in place. Despite the global credit squeeze, PLife has also obtained attractive cost of debt for its medium-term loan facilities.

Valuation and recommendation
Reiterate Outperform and target price of S$1.46. We maintain our DDM-derived target price of S$1.46 (discount rate 8.1%). Current yield of 6.9% is below the average yields of S-REITs under our coverage, representing lower risks in terms of longer leases and land tenures, as well as a positive sector outlook, we believe. PLife is trading at a 30.1% discount to its NAV of S$1.36 and 25.8% discount to its IPO price of S$1.28, representing an attractive entry point, in our view. Long lease structures and a relatively resilient healthcare industry add visibility to its income streams. PLife remains our top pick in the S-REIT universe.