Parkway Life Real Estate Investment Trust (C2PU) Investor Presentation summary

Overview of Parkway Life REIT

• One of Asia's largest listed healthcare REITs with a portfolio valued at S$2.23 billion as of 31 March 2024, comprising 63 properties across Singapore, Japan, and Malaysia.

• Portfolio is diversified: 67.8% hospitals/medical centres and 32.2% nursing homes, with 67.6% of asset value in Singapore and 32.2% in Japan.

• Weighted average lease to expiry is 16.21 years, with 98.5% of gross revenue under leases with downside protection.

• Top tenant, Parkway Hospitals Singapore, contributes 64.3% of gross revenue; no more than 3% of leases expire annually over the next five years.

• 99.7% committed occupancy across the portfolio, with high-quality, yield-accretive assets.

Financial performance and returns

• DPU has grown 133.7% since IPO, with uninterrupted recurring DPU growth every year.

• Total return since IPO is 322%, driven by both unit price appreciation and distributions; unit price rose from $1.28 at IPO to $3.50 as of 28 March 2024.

• Despite strong fundamentals, unit price underperformed the STI and S-REIT Index over the past year, declining 17.84% as of 31 March 2024.

Singapore portfolio

• Comprises three world-class private hospitals valued at S$1.51 billion, with a master lease renewal extending to 2042 and an option for a further 10 years.

• Lease structure ensures income certainty, with step-up rent increases until FY2025 and annual rent review formula from FY2026.

• 100% committed occupancy and triple net lease arrangement, insulating from property-related expenses.

• Master lessee is Parkway Hospitals Singapore, a subsidiary of IHH Healthcare, one of the world's largest healthcare networks.