PLife REIT: Released 4Q results which were within expectations, with 4Q10 DPU at 2.38c, +16%YoY and +6%QoQ was within our expectations. Gross revenue +21%YoY to $21.5m, driven largely by additional contributions from a total of 19 nursing homes acquired (Nov09-Jul10) and higher rev from SG properties….
NPI margin moderated slightly to 91.5% arising from expenses related to the 19 new nursing homes. REIT recognized a fair value gain of $18.7m on its investment properties, equating to a 1.45% gain on total portfolio value…
Interest savings from lower effective borrowing costs of 1.94%. As part of actively managing its debt, REIT successfully re-priced an existing JPY5.3bn ($84m) loan, lowering overall cost of debt further to 1.94%, from 2.13% previously. Debt weighted term to maturity is 3.95 years, with $50m (10.7%) debt due in 2013. Gearing at 34.6% provides headroom of S$122m and S$256m before reaching 40% and 45% gearing,,,
Going forward management will still continue to deliver on inorganic growth, though this could also come from other countries, such as Malaysia and Australia. DBSV maintain Buy with $1.90 TP. Likes REIT for its stable and defensive portfolio and believe REIT will continue to provide organic growth, while exploring portfolio expansion opportunities going forward….
Assumes $200m worth of acquisitions in 2011, funded 70%/30% by equity/debt to maintain
its existing gearing ratio of 35%.
No comments:
Post a Comment