Even though I have been a shareholder since 2015, this is the first ParkwayLife AGM that I attended. It was a cosy affair held at lecture theatre of Gleneagles Hospital. A rough estimate would be less than 50 retail shareholders who attended the meeting. CEO is down to earth and mingled a bit with the shareholders before the start of the meeting. He even recognised a shareholder who is a YouTuber.
Presentation by CEO Mr Yong shows a pro-active management that is also shareholder friendly. He shared that 2022 was a difficult year for REITS including for PLife but various measures taken has allowed DPU to increase for the 15th year. They have taken a preemptive move to take up new debt to lock in the interest rate and also hedged FX till 2027Q1 to ensure certainty for the next few years.
There was only one question by shareholder on when will PLife acquire Mount Elizabeth Novena. CEO shared that the truth is he does not know. While the group would like to acquire the crown jewel, it depends on the various considerations from the sponsor. Board director Mr Sim who is also the IHH COO said he could not comment much since he is wearing the hat of Parkwaylife director in this meeting. However, he highlighted the 10 years ROFR already represents a strong signal. He jokingly suggested the shareholder can ask the question at the IHH AGM.
I was able to catch Mr Yong after the AGM to check on the impact of the 150mil renewal capex. He shared that while gearing might increase due to higher borrowing, the revaluation especially upon completion will mitigate the increase. And there shouldn’t be impact on DPU due to the cost of borrowing.
It does feel reassuring that the management do consider that impact on DPU when making decision. Interestingly, Parkwaylife is the only Reit that has not done any equity fund raising yet since their IPO.
Oh yes, they take care of shareholders’ stomach too. Looking forward to FY2023 Q1 business update tomorrow.