P-Life REIT

P-Life REIT: 1Q12 Results was in-line. Distributable income of $15.5m (+8.5% yoy, +4%qoq) or a 2 DPU of 2.56c (+14.4% yoy, +3.6% qoq). 1Q12 rev increased 6%yoy to $22.8m and NPI increased 6%yoy to S$20.8m, driven by additional revenue contributions from the newly acquired Japan properties and rental growth for the Singapore properties. Total gearing as of 1Q increased slightly from 34.8% to 35.3% on acquisitions, with debt headroom of S$254m before reaching 45% gearing. PREIT continues to remain vigilant on its financing costs, maintaining its all-in-cost of debt at 1.61%, a slight decline from 1.64% last quarter. During the qtr PREIT acquired 3 nursing homes in Japan and made its maiden foray into Msia acquiring strata titled lots in Gleneagles Medical Centre, KL. PREIT is trading at a FY12/FY13 yield of 5.2% and 5.6%. Overall, house remain positive on PREIT due to its defensive portfolio and its ability to make yield-accretive acquisitions. TP of $2.05 is based on dividend discount model.