Parkway Life REIT IHH holds a 35.56% equity stake in Parkway Life Real Estate Investment Trust (PLife REIT), one of Asia’s largest listed healthcare REITs by asset size. PLife REIT invests in income-producing real estate and related assets used mainly for healthcare and healthcare-related purposes. The trust owns a diversified portfolio of 63 properties worth about RM7.8 billion as at 31 December 2023. Performance Highlights • FY2023 total revenue increased 8.4% y-o-y mainly due to contribution from the properties acquired in 2022 and 2023, and higher rent from the Singapore hospitals under new master lease agreements3. The revenue increase was partially offset by depreciation of the Japanese Yen. • Acquired two nursing homes in Osaka, fortifying PLife REIT’s portfolio in Japan. • PLife REIT continues to display robust financial positioning and resilience with a weighted average all-in cost of debt of 1.27%, one of the lowest cost of debt amongst all S-REITs. Outlook The healthcare industry remains vital with rapidly ageing populations and an increasing need for better quality healthcare and aged care services. Performance Indicators Financial Indicators FY2022 FY2023 Total revenue1 RM376.2 million RM407.8 million EBITDA RM278.4 million RM325.8 million Gearing2 36.4% 35.6% PLife REIT is ready and poised to benefit from the resilient growth of the healthcare industry in the Asia Pacific region and generate greater value for unitholders. 1 Includes inter-segment revenue. 2 From PLife REIT standalone perspective. 3 Higher rent from the Singapore hospitals arising from the guaranteed step-up rent and the straight-lining of rental income over the lease term i.e. effective rent. There is no distribution impact arising from effective rent treatment. From a consolidated IHH Group perspective, the effects are eliminated. Laboratories Committed to providing better healthcare solutions, IHH Laboratories aims to be among the largest, most trusted and data-driven laboratory services groups in the world. IHH Laboratories comprises leading medical laboratories in four geographies. Performance Highlights Malaysia: Pantai Premier Pathology rebranded to Premier Integrated Labs (PIL) and aims to be a reference lab. Collaborations with global healthcare companies have brought high-end tests to the market, making them accessible, affordable, and raising awareness. Singapore: Parkway Laboratory Services opened a new outpatient unit at Mount Elizabeth Hospital. With eight purpose-built stations, the lab provides more convenient services and access for patients visiting the clinics. Türkiye: Acıbadem Labmed achieved dual milestones: first medical laboratory in Türkiye to reach 5th ISO15189 accreditation and ‘Labgen’ became Türkiye’s first College of American Pathologists (CAP) accredited genetics laboratory. Labmed opened four new laboratories, expanding high-end test offerings and geographical coverage. India: Our renown laboratory, instituted in 1995 and one of India’s leading networks of diagnostic centres, was rebranded as ‘Agilus Diagnostics’. Outlook IHH Laboratories, one of IHH’s new engines of growth, will be a key service provider to the next generation of healthcare professionals and consumers who are more discerning and focused on preventive health and wellness. Through digitalisation, we look to harvest synergies and economies of scale to drive operating cost down, as well as enhance outreach to customers by offering convenient digital touchpoints. We aim to have core reference laboratories within our core markets that are able to provide advance high-end tests to keep pace with the growing complexities of diseases and treatments, thereby enhancing the overall quality and accessibility of healthcare services. Performance Indicators Financial Indicators FY2022 FY2023 Total revenue4 RM1.7 billion RM1.7 billion EBITDA RM369.3 million RM345.4 million Test volumes (million) 90.1 96.0 4 Includes inter-segment revenue Annual Report 2023 41
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