Parkway Life REIT Purchase New Japan Nursing Home

Parkway Life REIT Logo

On 24th March 2016, Parkway Life REIT announces the purchase of a new nursing home facility, “Silver Heights Hitsujigaoka Ichiban-kan & Nibankan” for JPY1,100 million. This is approximately S$13.6 million.

Location

The nursing home facility is located in the residential neighborhood within Sapporo City, capital city of Hokkaido prefecture with a master lease of 20 years.

Net Property Yield

The newly acquired nursing home facility is expected to generate a net property yield of 6.7%.

Occupancy

Occupancy of the nursing home facility is healthy at 94%.

Gearing Ratio

The cost for the acquisition of the new nursing home will be funded via long-term JPY denominated debts. The benefits of this approach is natural hedging Parkway Life REIT against JPY foreign exchange fluctuations. With the acquisition, Parkway Life REIT gearing will increase from 36.6% to 37.1%.

Portfolio

With the newly addition, Parkway Life REIT will have 48 properties.

Singapore

  • Mount Elizabeth Hospital
  • Gleneagles Hospital
  • Parkway East Hospital

Japan

Akita Prefecture:

  • Sawayaka Sakurakan

Chiba Prefecture:

  • Senior Chonaikai Makuhari Kan
  • P-Life Matsudo

Fukuoka Prefecture:

  • Hapine Fukuoka Noke
  • Sawayaka Obatake Ichibankan
  • Sawayaka Obatake Nibankan
  • Sawayaka Shinmojikan
  • Sawayaka Nogatakan
  • Sawayaka Fukufukukan
  • Sawayaka Mekari Nibankan
  • Sawayaka Kiyotakan
  • Habitation Jyosui
  • Habitation Hakata I, II, III

Hyogo Prefecture:

  • Palmary lnn Akashi
  • Palmary Inn Suma
  • Palmary Inn Shin-Kobe

Kanagawa Prefecture:

  • Bon Sejour Shin-Yamashita
  • Fureai no Sono Musashi Nakahara
  • Ocean View Shonan Arasaki

Okayama Prefecture:

  • Amille Nakasyo

Osaka Prefecture:

  • Bon Sejour Ibaraki
  • Fiore Senior Residence Hirakata
  • Maison des Centenaire Ishizugawa
  • Maison des Centenaire Haruki
  • Iyashi no Takatsuki Kan
  • Legato Higashi Sumiyoshi
  • Legato Katano
  • Royal Residence Gotenyama
  • Happy Life Toyonaka
  • Maison des Centenaire Hannan
  • Sunhill Miyako
  • Maison des Centenaire Ohhama

Saitama Prefecture:

  • Smiling Home Medis Musashi Urawa
  • Smiling Home Medis Koshigaya Gamo
  • As Heim Nakaurawa

Hokkaido Prefecture:

  • Sawayaka Higashikagurakan
  • Liverari Shiroshi Hana Ichigo-kan
  • Liverari Shiroshi Hana Nigo-kan
  • Liverari Misono
  • Silver Heights Hitsujigaoka Ichiban-kan & Nibankan

Ehime Prefecture:

  • Sawayaka Niihamakan

Niigata Prefecture:

  • Sawayaka Minatokan

Mie Prefecture:

  • Sawayaka Seaside Toba

Aichi Prefecture:

  • Excellent Tenpaku Garden Hills

Malaysia, Kuala Lumpur

  • Gleneagles Intan Medical Centre, Kuala Lumpur

My Sweet Retirement Subscribes for OUE Hospitality Trust Rights

OUE Hospitality Trust Logo

With the issuance of rights, DPS will fall from 6.55 cents to 5.38 cents. The DPS Yield will fall from 8.6% to 7.6%.

OUE Hospitality Trust Rights Application

I asked myself the following 3 questions below previously in my post here (OUE Hospitality Trust Issues Rights to Fund Acquisition of Crowne Plaza Changi Airport Extension).

  1. As issuance of rights usually dilute the share price, what will be the fair price after rights issue? This is similar to the recent ARA rights issue whereby the share price fell from estimate $1.17 to $1.05 after rights issue.
  2. How do I subscribe for the rights?
  3. How do I or should I subscribe for excess rights?

As issuance of rights usually dilute the share price, what will be the fair price after rights issue?

I found out what I am asking is actually known as TERP (Theoretical ex-rights price). TERP is the calculated price for a company’s stock shares after issuing new rights-shares with the assumption that all the newly issued shares are taken up by the existing shareholders. The TERP price is S$0.7092.

How do I subscribe for the rights?

The easiest way is to apply via ATM (Automated Teller Machine).

  1. Click on More Services.
  2. Look for the menu item whereby it says something about “Rights application”.
  3. Select OUE HTrust Rights.
  4. Enter the maximum number of rights you wish to receive. Click Enter.
  5. Enter the excess rights you wish to receive.
  6. That is it!

The fifth person has an excellent step by step guide here. (A Step-By-Step Guide How to Apply for Rights Shares by ATM).

How do I or should I subscribe for excess rights?

I have shown you above how to apply for excess rights. I have applied for OUE HTrust excess rights as well. At an issue price of S$0.54, it is selling at 23.9% discount as compared to TERP and 29.4% discount if you compare to closing price of S$0.765 as per 7th March 2016.

OUE Hospitality Trust Rights Issue Price

ST Engineering Contract Win with TERREX 2

Terrex 2

On 17th March 2016, ST Kinetics, the land systems arm of ST Engineering announces that they have been awarded the contract for 13 prototypes of the amphibious combat vehicle Terrex 2 by the US Marine Corps. The 13 Terrex 2 prototypes would be tested next year.

The contract that was awarded to ST Engineering (STE) and partner Science Applications International Corp (SAIC) was worth US$121.5 million. If the US Marines select the Terrex 2, a further contract will be awarded for the building of another 204 vehicles at an average procurement price of up to US$6.5 million per vehicle (Total worth US$1.3 billion)

Competition

During the tenders for the US Marines contract, ST Engineering and BAE Systems are the two firms selected to build prototypes. BAE Systems was awarded a smaller US$103.8m contract for the SuperAV vehicles.