Home > About Us > Growth Strategy > Proactive Asset Management
Proactive Asset Management
PLife REIT constantly strives to extract the greatest value by maximising the performance of its portfolio while ensuring sustainable earnings for its Unitholders through proactive asset management.
As part of PLife REIT’s initiative to drive organic growth and foster good Landlord-Lessee relationships , it seeks to work closely with its Lessees to understand their operational requirements and embark on Asset Enhancement Initiatives (“AEIs”) which are tailored to suit the needs of its healthcare operators and end users of the properties. Such strategic collaborative arrangements serve to benefit all parties and promote greater revenue sustainability for PLife REIT.
Although such collaborative AEI arrangement is a relatively new concept for healthcare operators in Japan, PLife REIT has successfully introduced it amongst its healthcare operators/lessees.
In July 2011, PLife REIT completed its second AEI for its Japan Nursing Home portfolio. The AEI, which was carried out with its largest nursing home operator, involved the conversion of an under-utilised indoor pool into a day service facility area at Sawayaka Nokatakan, adding 1.43% to the fixed gross monthly rental of the property for the unexpired lease term of 18.9 years with effect from 26 July 2011.
Sawayaka Nokatakan
To-date, PLife REIT has completed four AEIs for its Japan Portfolio and it is committed to exploring and rolling out more of such initiatives across its entire portfolio going forward. In addition, to further strengthen PLife REIT’s earnings resiliency, it also focus on consolidation efforts for its Japan portfolio to optimise operating synergies and achieve greater cost savings.
