Parkway Life Real Estate Investment Trust : Business Update For The First Quarter Of The Financial Year Ending 31 December 2022

Disclaimer

This document is for information only and does not constitute an invitation or offer to acquire, purchase or subscribe for units in Parkway Life Real Estate Investment Trust ("Parkway Life REIT" and the units in Parkway Life REIT, the "Units").

The value of the Units and the income derived from them may fall as well as rise. The Units are not obligations of, deposits in, or guaranteed by, Parkway Trust Management Limited, as manager of Parkway Life REIT (the "Manager") or any of its affiliates. An investment in Units is subject to investment risks, including the possible loss of the principal amount invested.

Investors have no right to request the Manager to redeem their Units while the Units are listed. It is intended that Unitholders of Parkway Life REIT may only deal in their Units through trading on Singapore Exchange Securities Trading Limited (the "SGX-ST"). Listing of the Units on SGX-ST does not guarantee a liquid market for the Units.

The past performance of Parkway Life REIT or the Manager is not necessarily indicative of the future performance of Parkway Life REIT or the Manager.

This document may contain forward-looking statements that involve assumptions, risks and uncertainties. Actual future performance, outcomes and results may differ materially from these forward-looking statements as a result of a number of risks, uncertainties and assumptions. Representative examples of these factors include (without limitation) general industry and economic conditions, interest rate trends, cost of capital and capital availability, competition, shifts in expected levels of property rental income, changes in operating expenses, property expenses, governmental and public policy changes and the continued availability of financing in the amounts and on the terms necessary to support Parkway Life REIT's future business. Investors are cautioned not to place undue reliance on these forward-looking statements, which are based on the Manager's current view of future events.

• 1 1Q 2022 Key Highlights

  Agenda

• 2 Financial Performance

• 3 Property Portfolio

• 4 Growth Strategy

• 5 Capital & Financial Management

• 6 Appendix (Property Information)

Higher Gross Revenue for 1Q 2022

•  arising from 3 properties acquired in 2021 and higher rent from the Singapore hospitals, partly offset by the loss of income from divestment of a non-core asset in early 2021 and depreciation of JPY

S$30.7 million2.3%%

Strong Balance Sheet & Capital Structure1

•  No long-term debt refinancing needs till June 2023

Low all-in debt cost

Gearing

0.56%

34.5%

Interest cover 20.2 times2

Termed out Short Term Loans Drawn Down for Acquisitions

•  A total of JPY7.71 billion (approx. S$86.0 million3) short term loans (the "STLs") were drawn down to fund the Japan acquisitions in 2H 2021

•  Drawn down 5-year up to JPY7.71 billion committed loan facility (the "New Loan")4 to term out these STLs till March 2027

Increase hedging of interest rate exposure

•  Executed new JPY interest rate hedges in March 2022 to hedge the interest rate exposure arising from the New Loan as well as extension of existing hedges that have rolled off

•  With the new hedges in place, about 81% of interest rate exposure is hedged

• 1. As at 31 March 2022

• 2. Applicable to both interest coverage ratio (ICR) and Adjusted-ICR as prescribed under the MAS' Property Funds Appendix. PLife REIT has no hybrid securities as of reporting date.

• 3. At an exchange rate of S$1.00 = JPY89.65

• 4. The New Loan was put in place on 29 December 2021