PLifeReit

PLifeReit: 1Q14 DPU rose 6.9% to 2.82¢ while distributable income rose by the same quantum to $17.1m. Revenue and NPI rose 6.8% and 6.9% to $24.6m and $23m, with higher revenue primarily due to rental income contributed from Japan properties acquired in Jul and Sep’13, offset by the depreciation of Yen. Revenue was also driven by higher rent from the SG properties. Aggregate leverage increased 2ppt to 35%, with a debt headroom of $131.1m before hitting 40%. In 1Q14, 3 acquisitions in Japan and 3 AEIs were completed. While management is cognizant of an interest rate hike, it expects demand momentum for better quality private healthcare services to continue. It had indicated 11.3% of Asia- Pac’s population will be above 65 years old over the next few years. NAV at end Mar was $1.63, translating to P/B of 1.54x, while annualized 1Q14 yield is 4.5%.