HY22 interim results presentation - 24 FEBRUARY 2022 - Vital Healthcare Property ...
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HY22 interim results presentation 24 F E B R U A RY 2 0 2 2
Contents
Presenters
Aaron Hockly
Fund Manager
Overview3 Michael Groth
Chief Financial Officer
HY22 highlights 8
Financial results & capital management 11 Richard Roos
Portfolio & acquisitions 18 Exec. Director, Portfolio
Developments24
Future focus 30 Chris Adams
Exec. Director, Projects
Appendices33
All amounts are in NZD unless otherwise shown VITAL HEALTHCARE PROPERTY TRUST | INTERIM RESULTS 2022 | 2
Overview of Vital
VITAL IS THE ONLY SPECIALIST HEALTHCARE LANDLORD LISTED ON THE NZX
V I TA L HEALT HCARE PROPERT Y T RU ST (V ITAL) IS:
17.8 year ~$3bn
WA L E 43* PROPERTIES
The owner of a ~$3 billion healthcare property
( AU S & N Z )
portfolio in New Zealand (27% of assets) and
Australia (73%);
NORTHERN
The only NZX-listed specialist healthcare
T E R R I TO RY landlord (NZX ticker: VHP);
QUEENSLAND
Externally managed by a subsidiary of
W E ST E R N 6
AU ST R A L I A Toronto-listed, global healthcare real estate
SOUTH owner and manager, NorthWest Healthcare
4 AU ST R A L I A
NEW SOUTH Properties REIT (TSX ticker: NWH);
3 WA L E S
12
Underpinned by rental income that tracks
12
inflation with ~86% of lease income indexed
V I C TO R I A to CPI in some way; and
6 Targeting 2–3% AFFO and DPU growth per
~$2.2bn
31* P R O P E R T I E S ( AU S )
TASM A N I A ~$0.8bn
12 * P R O P E R T I E S ( N Z )
annum over the medium term, whilst retaining
a conservative pay-out ratio.
VITAL HEALTHCARE PROPERTY TRUST | INTERIM RESULTS 2022 | 3
*Excludes strategic assets held for development
Vital’s 2-year progression despite COVID-19
P O R TFO LI O E N H A N C E ME NTS SU PPO R T TA R G E T OF G RO WING AFFO AND D ISTRIBUTIO NS BY 2–3% P ER UN IT PER AN N UM
TOTAL PRO PERT Y VA L U E WA L E AV E R AG E BUI L D I NG AG E 1 N ET PROPERT Y IN COME (AN N U AL)
~$2bn ~$3bn 17.9 years 17.8 years 14.0 years 10.7 years $98.8m $113.4m
(AUS:75%, NZ:25%) (AUS:73%, NZ:27%)
2019 2021 2019 2021 2019 2021 C Y19 CY21
52.6% Maintenance of
market leading WALE
Younger buildings reduce
current and future maintenance 14.8%
growth capex requirements increase
WEIG HTED AVERAG E CA P R ATE D E VE LO P M E NT P I P E L I NE LARGEST SINGLE TENANT EXPOSURE SECTOR SPLIT
Hospital:86% Hospital: 82%
5.52% 4.67% ~$200m >$1bn2 46% 20% Ambulatory Care: 11% Ambulatory Care: 13%
2019 2021 2019 2021 2019 2021 Aged Care: 3% Aged Care: 5%
2019 2021
Reduction demonstrates: (1) Enhance earnings
quality of assets and tenants; and valuation growth Diversity of assets reduces
Concentration risk reduced
and (2) value added by leasing and supports portfolio risk and enhances earnings
and development undertaken development
Portfolio enhanced through acquisitions, development and disposals to: (1) increase diversity of assets and tenants,
(2) reduce age of building and (3) maintain long WALE. This helps to reduce income risk for Vital’s unitholders
1
Average building age = the later of the date of construction or the last significant capital works
2
Includes $161.4m of committed development spend remaining and ~$1bn of developments being considered. Development VITAL HEALTHCARE PROPERTY TRUST | INTERIM RESULTS 2022 | 4
timing and therefore spend expected to be over a staged and lengthy period (at least 10 years)
Vital’s 2-year progression despite COVID-19 (cont’d)
BAL ANC E S H E E T ST R E NG TH E NE D
NTA PER UNIT B A L A N CE S H E E T G E A R I NG AV E R AG E D E BT D UR AT I O N
35.1% 33.2% 1.7 years 4.4 years3
2019 2021 2019 2021
$2.36 $3.12
2019 2021
Conservative gearing
Significantly expanded
maintained
A F FO (P E R UNI T) D I ST R I BUT I O NS (P E R UNI T)
10.451 11.902 8.751 9.752
32.2% FY20 FY22 FY20 FY22
growth 13.9%
growth
11.4%
growth
Balance sheet strengthened through raising $351m of new equity and extending
debt whilst supporting portfolio growth as a means to grow AFFO and distributions
1
FY20 actual
2
FY22 upgraded guidance (annualised)
3
Pro-forma as at 31 December 2021 including terms agreed post- 31 December 2021 VITAL HEALTHCARE PROPERTY TRUST | INTERIM RESULTS 2022 | 5
Delivery of strategy
DELI VERI N G FOR VI TA L' S U NIT H O L D E R S IN AC C ORDANC E WITH STRATEGY
Vital’s manager has continued to deliver
for Vital’s unitholders:
Growth in earnings Raising new equity primarily from
Increased distributions existing unitholders on a pro-rata basis
Continued portfolio improvement Reduction in base management
fees relative to assets
Expansion of development pipeline
Focus on sustainability
Extension of debt duration profile
Renewal of Vital’s board
16.3% per annum Recent achievements
build on longer term
Total Return for 10 years ended 31 December 2021
record
Source: Forsyth Barr
VITAL HEALTHCARE PROPERTY TRUST | INTERIM RESULTS 2022 | 6
HY22 highlights
HY22 highlights – capital & transactions
TRANSAC T I ON S U N D E R TA K E N TO G R O W F U T U R E EARNING S & S UP P O RT FUTURE P O RTFO LIO G RO WTH
$168m $315m 8.0%
equity raised1 debt extended increase in NTA per unit
33.2% $328m 86%
balance sheet gearing property transactions2 of leases (by income)
$314m acquisitions & $14m disposals linked to CPI
1
omprising placement, UPP, DRP and incentive units issued to the Manager
C
2
Includes $181m of committed post 31 December 2021 acquisitions of The Hills Clinic Land (AUS), Campbelltown Health Hub (AUS), Hutt Valley Health Hub (NZ) VITAL HEALTHCARE PROPERTY TRUST | INTERIM RESULTS 2022 | 8
HY22 highlights – portfolio & developments
ENHANC E D P OR T FOL IO ME T R IC S IN A L IG NME NT WITH STRATEGY
8.8% 3.7% 17.8 years
increase in underlying average rent reviews WALE; market leading
income (ex. FX) completed (annualised)
10 developments $50m $44m
underway $161.4m spend of development and of developments moved from
remaining with a further ~$1bn1 capital expenditure “potential” to “committed”
being actively considered works undertaken2
1
Development timing and therefore spend expected to be over a staged and lengthy period (at least 10 years)
2
Includes $42m of developments ~$6m of value-add capex and ~$2m maintenance and tenant incentive capex VITAL HEALTHCARE PROPERTY TRUST | INTERIM RESULTS 2022 | 9
Financial results & capital management
Financial performance
P RO P ERT Y E A R N I N GS G R O W TH HAS FAC IL ITATE D AFFO G RO WTH
($) (%)
HY22 HY21 C HA N GE C HA N GE
Contribution from structured
Net property income 57.9 54.2 3.7 6.9% rent reviews, acquisitions and
All expenses ex. finance 16.9 11.7 5.2 44.8% development rents
Realised (gains) / losses on FX derivatives (0.5) 0.7 (1.2) N/A
Net finance expenses 13.7 13.6 0.1 0.5%
Operating profit before tax and other income 27.8 28.2 (0.4) (1.5%)
$153m of revaluation gains
Property revaluations and other income 169.6 75.0 94.6 126.1% during HY22
Profit before income tax 197.4 103.2 94.2 91.3%
Adjusted funds from operations (AFFO) 32.0 28.1 3.9 14.0%
Adjusted funds from operations (cpu) 5.91 5.87 0.05 0.8%
Distributions per unit (cpu) 4.75 4.38 0.38 8.6%
All values shown as $m
Average NZD/AUD exchange rate in the period 0.9535 0.9320
VITAL HEALTHCARE PROPERTY TRUST | INTERIM RESULTS 2022 | 11Net property income
8.8% NPI GR O WT H (E XC L. F X) A ID E D BY AC Q U ISITIO NS, D EV ELO PM ENTS AND RENT REV IEWS
Acquisitions – income from late FY21 N E T P R O P ER T Y IN C O M E B R ID GE
($M)
and HY22 acquisitions
+6.9% growth (incl FX) / +8.8% (excl. FX)
Development income – rentalisation
of capital expenditure and holding 65
1.0 (2.6)
income from strategic site acquisitions 5.6
0.9
(1.0)
60 57.9
Disposals – Strategic disposal of three 55 54.2
regional hospitals in FY21 for ~A$100m
50
and sale of Gold Coast Surgical Centre
for ~A$13m in HY22 (before selling costs) 45
Capex – remains modest due to 40
HY2021 Acquisitions 1 Development Rent Reviews & Disposals 3 Foreign HY2022
long term leases, minimal upcoming Income 2 Leasing Activity Exchange
expiries, young building age and
ability to capitalise or rentalise 86% of Vital's leases (by income) are indexed to CPI in some way
upgrades as part of developments
1
Acquisitions of Grace Hospital, Epworth Camberwell, Tennyson Centre & Nelson Rd Box Hill.
2
Incremental development income contributed from Wakefield, Royston, Eden & Sth Eastern.
Disposals of regional Healthe Care (Mayo, North West & Dubbo) and Gold Coast Surgical Centre.
HY22 property income growth of +1.9%
3
(like-for-like, same currency basis)
VITAL HEALTHCARE PROPERTY TRUST | INTERIM RESULTS 2022 | 12Balance sheet
STRENGT H E N E D BY SIG NIF IC A NT R E VA LUATIO N GAINS, NEW EQ UIT Y AND D EBT EX TENS IO N
($) (%)
HY22 FY21 C HA N GE C HA N GE Increase due to:
Investment properties 2,941.2 2,634.6 306.6 11.6% Development and capital
Other assets 55.4 28.0 27.4 97.6% works expenditure of $50m2
Acquisitions totalling $133m
Bank debt 995.5 932.4 63.1 6.8% Revaluation gains of $153m
Disposals of $12m (after
Other liabilities 201.5 226.7 -25.2 (11.1%)
selling costs)
Debt to gross assets 1 33.2% 35.0% (5.1%)
F/X impact of $18m
Unitholder funds 1,799.5 1,503.5 296.0 19.7%
Units on issue (m's) 577.4 519.8 57.6 11.1%
New equity of 155.1m
Net tangible assets ($/unit) 3.12 2.89 0.23 8.0% raised via placement, UPP
All values shown as $m and two DRP's
Period end NZD/AUD exchange rate 0.9411 0.9309
1
Calculated in accordance with Vital's Trust Deed
2
Includes $42m of developments ~$6m of value-add capex and ~$2m maintenance and tenant incentive capex
VITAL HEALTHCARE PROPERTY TRUST | INTERIM RESULTS 2022 | 13Movement in investment property
WELL -LEAS E D H E A LT H C A R E ASSE TS C O NT INU E TO EX P ERIENC E C AP RATE C O M P RESS IO N
I N VE STM ENT PROPERT Y B RI DG E (H Y22) K EY HY22 RESULTS
(N Z MI L L I O N S)
$3,200
~77% of Vital’s portfolio independently
153 (12) (18) 2,941 valued (by number of properties)
50
$2,800
2,635
133
at 31 December 2021
$2,400
Revaluation gains include ~$50m
$2,000
from rental increases, leasing activity,
$2,170 development margins and other
$1,600 $1,934
valuation adjustments. The balance
$1,200
comes from 21 basis points of Cap
Rate compression since 30 June 2021
$800
$400
$700 $771
$0
30-Jun-21 Acquisitions1 Capital
additions2
Property revaluations Disposals3 Foreign
exchange4
31-Dec-21 $1m
gross profit realised
AUS Assets NZ Assets on disposals5
1
$133m of acquisitions, including $94m for The Tennyson Centre, and the balance for strategic / development sites. All values shown in NZ$, pre costs
2
Includes development expenditure and capitalised interest costs
3
Net proceeds (after selling costs)
4
Period end NZD/AUD exchange rate moved from 0.9309 at 30 June 2021 to 0.9411 at 31 December 2021 VITAL HEALTHCARE PROPERTY TRUST | INTERIM RESULTS 2022 | 14
5
Compared to 30 June 2021 book valueNet Tangible Assets
REVALUAT I ON GA I N S HAV E L E D TO ST R O NG NTA G RO WTH P ER UNIT
NTA P ER UNIT BRIDG E
Revaluation gain of $153m;
5.8% increase from June 2021
$3.20 $0.02 $0.01 ($0.02) ($0.02)
$0.24 $3.12
$3.10 70% of gain from Australian
$3.00 portfolio and 30% from
$2.89
$2.90
New Zealand
$2.80
$2.70 Revaluation gains include
$2.60
~$40m from rental increases
$2.50
and leasing activity and
$2.40
~$7m of development margins
$2.30
$2.20
FY21 Property revaluations Interest rate swaps Retained earnings New units issued Currency translation HY22
VITAL HEALTHCARE PROPERTY TRUST | INTERIM RESULTS 2022 | 15Debt
BAL ANC E S H E E T GE AR ING R E D U C E D D U R ING H Y22 TO S UP P O RT FUTURE G RO WTH
HY22 overview
Strategic priorities delivered: Strong balance sheet available
to support Vital’s value adding
Financier diversification further enhanced with
additional lender secured;
acquisitions and developments 33.2%
DEBT / ASSETS
First tranches of long term debt secured (A$175m Vital’s all-in weighted average Calculated in accordance
of 7 year facilities in Sept 2021); cost of debt was 3.14% as at 31 with Vital’s Trust Deed
December 2021 1
Post 31 December 2021:
Debt levels considered conservative
Facility limits increased by A$150m, including an given cashflow security: high quality
additional A$75m tranche of 7 year debt tenants, long leases, high quality
properties and defensive asset class
Near term expires refinanced (earliest maturity
now Oct 2023)
Focus on maintaining weighted
average debt duration of 4+ years
Weighted average debt term increased to 4.4
(terms agreed post 31 December
years (pro-forma)
2021 to extend to 4.4 years)
Weighted average cost of debt improved
1
Based on drawn debt only VITAL HEALTHCARE PROPERTY TRUST | INTERIM RESULTS 2022 | 16Debt duration
INCREAS E D WE I GH T ED AV E R AG E D E BT D U R AT IO N AND AVAIL ABLE H EAD RO O M FO R UTILISATIO N
B A NK FAC ILITIES 31 D EC 20213 31 DEC 2020
Debt to gross assets (Trust Deed)1 33.2% 32.4%
Bank loan to value ratio – actual 2
35.0% 35.0%
Bank loan to value ratio – covenant 55.0% 50.0% Headroom available
Weighted average duration to expiry 4.4 years 1.3 years under existing facility to
Undrawn facility limit (A$) $291m $284m support future growth
DEBT DU R AT I ON P R O F IL E – 31 D E C E MB E R 20213 (A$)
400
350
300
250
VALUE ($M)
200 Increased the weighted
150 average debt duration from
100 1.3 years to 4.4 years3 with no
50 expiries until October 2023
0
Dec-23 Jun-24 Dec-24 Jun-25 Dec-25 Jun-26 Dec-26 Jun-27 Dec-27 Jun-28 Dec-28 Jun-29
1
Trust Deed debt ratio is based on total borrowings to gross asset value of the Trust
2
Bank LVR is based on total indebtedness to secured property value as determined by external valuers
3
Proforma including post 31 December 2021 agreed extension VITAL HEALTHCARE PROPERTY TRUST | INTERIM RESULTS 2022 | 17Portfolio & acquisitions
Portfolio update
~$3BN I N VE ST E D I N 4 3 C O R E H E A LTH C A R E PR O PERTIES WITH OV ER 2,800 BED S AND OV ER 140 UNIQ UE T EN AN TS
INCO M E TENANT D IV ERS IFIC ATIO N GEOGRAPHIC DIVERSIF ICAT ION
(% O F RENT) (BY VALUE)
CY21 NPI of $113.4m despite COVID-19
Strong positive rent growth achieved during
HY22 through a combination of CPI and
fixed rent increases 20% 20%
NT
2% 12%
DI VERS IFI C AT I ON 3% QLD
3% 17% 4%
Vital has a diverse portfolio and income
4% WA
8%
4%
stream by location and tenant 4%
SA
25%
10% 13%
Seeking to continuously improve
N SW
24%
diversity of income Aurora Healthcare 20% Sportsmed 4% VIC
TAS
Healthe Care Surgical 17% Bolton Clarke 3%
Epworth 13% Mercy Ascot 3%
Evolution Group 10% Ramsay 2%
Continued investment in people to support portfolio
Hallgrowth
& Prior 4% Other Tenants 20% 27%
NZ
Norfolk Southern 4%
Cross Limited
Largest single tenant exposure reduced significantly over past two years, now lowered to 20%
Growth focused on core health precincts typically anchored by a public hospital,
university and/or large private hospital
VITAL HEALTHCARE PROPERTY TRUST | INTERIM RESULTS 2022 | 19Hutt Valley Health Hub, Wellington, NZ
VITAL ACQUIRED A PREMIUM CO-LOCATED AMBULATORY CARE FACILITY TO COMPLEMENT EXISTING INVESTMENTS
ACQ UI S I T I ON S UM MA RY
$46.5m ~4.0% ~3,300 sqm
acquisition price initial yield net lettable area
Feb 2022 ~14.2 years 7 Tenants
settlement WALE focused on primary care
and outpatient services
Sustainable features
Sustainable and seismically
resilient building
FUTUR E D E V E LOPM E N T SU MMA RY
~3,200 Key precinct
Future expansion land Co-located with Hutt Hospital and
available for development1 Boulcott Hospital (also owned by Vital)
Includes existing adjoining holding and development land expected to be settled shortly
1
VITAL HEALTHCARE PROPERTY TRUST | INTERIM RESULTS 2022 | 20The Tennyson Centre, Adelaide, SA
VITAL AC QUI R E D ON E O F A D E L A ID E’S L E A D ING “C ANC ER C ENTRES O F EXC ELLENC E”
ACQUISI T I ON S U M M A RY
~A$93m1 4.8% 12,700 sqm
acquisition price Initial yield site area
6,568 sqm 3.5%–4% Oct 2021
net lettable area fixed annual rent reviews settlement
Quality Tenants Several key leases
Icon Cancer, GenesisCare, Nexus renewed since acquisition
Day Hospitals, Dr Jones & Partners
The Tennyson
Centre
DEVELOPM E N T L AN D SU MMA RY
Development
Land
A$2.75m 1,900 sqm
acquisition price site area
Includes development acquisition cost listed below
1 VITAL HEALTHCARE PROPERTY TRUST | INTERIM RESULTS 2022 | 21Development land to expand The Hills Clinic, Sydney, NSW
VITAL AC QUI R E D A ST R AT E G IC L A ND H O L D ING A DJ O INING EX ISTING P REM IUM ASS E T FO R FAC ILIT Y E XPAN SION
ACQUISI T I ON S UM M A RY
A$50m Feb 2022
MCC
acquisition and estimated settlement
development costs
AUS
LAN
D PL
4,340 sqm 25 years
AC E
site area in line with existing lease
The Hills B L I N K TO F O R M AT
Clinic
~4,340sqm
~5% 100%
yield on cost pre-committed to
Aurora Healthcare
M EM O RI A
L AV EN U E
VITAL HEALTHCARE PROPERTY TRUST | INTERIM RESULTS 2022 | 22Multi-stage development site in South West Sydney
VITAL ACQUIRED A PRE-COMMIT TED GENESIS CARE CANCER CENTRE AND MULTI STAGE DEVELOPMENT SITE IN SYDNEY GRO WTH CATCHMENT
STAGE 1 – FU N D-T H RO U G H D E V E LO PME NT OV ERV IEW
A$52m 1
~4.0% 2
Feb 2022
acquisition price & initial yield settlement
development costs for stage 1
3% 2,713 sqm 15 year
annual rent reviews net lettable area WALE
Mental
STAGES 2 & 3 – A D D ITIO NA L D E V E LO PME NT SU MM ARY Health
Ca Health
md
UP TO en Facility
Rd
23,000 sqm 40,000 sqm A$24.6m Cancer rle
yS
t
Centre Hu
site area additional GFA acquisition price
Excludes adjoining development land but includes fund-through construction costs for stage 1
1
After deducting ground rent costs and allowing for benefit of stamp duty savings via fund-through structure
2
VITAL HEALTHCARE PROPERTY TRUST | INTERIM RESULTS 2022 | 23Developments
Development strategy & value-add
TAR GE T I N G 10–15% O F T H E PO R T F O L IO (BY VA LUE) TO BE UND ER D EV ELO PM ENT
DEVELOPM E N TS A R E K E Y F O R: FO C US CORE PART OF STRATEGY PIPEL IN E
Current focus on growth In addition to immediate $303.8m of committed
catchments including financial benefits, developments,
South East Queensland, developments enable Vital representing ~10% of
Sydney and New to continue to improve the total Portfolio Value;
Earnings & Improving Meeting the needs Zealand portfolio through: $161.4m of spend
capital growth the portfolio of our operator Strategy driven by Lowering average remaining
partners healthcare needs building age (reduced ~$1bn1 of potential
analysis Capex) development
Precinct and ambulatory opportunities identified
care strategies to meet (subject to business
modern healthcare needs cases, due diligence and
NorthWest has a market approvals)
Meeting tenant and
leading development team patient demand
with an unmatched depth of particularly in light
experience in the sector of operating model
changes
1
Development timing and therefore spend expected to be over a staged and lengthy period (at least 10 years) VITAL HEALTHCARE PROPERTY TRUST | INTERIM RESULTS 2022 | 25HY22 development milestones
T erms agreed with Evolution Healthcare ompletion of ~A$24m Stage 1 of
C MoU signed with Calvary Health Care
and Southern Cross for $74m of Playford Health Hub. The development is for new private hospital in Adelaide
expansions and upgrades to five 70% leased (by income) providing a yield on (Stage 3, Playford Health Hub). Construction
NZ Hospitals1. cost of 6.8%2 and also provides ~200 car is expected to commence in 2024.
bays for the future Stage 2 development.
A$96.5m Epworth Eastern
Progressions of design (commenced
Commencement of construction
development partially completed. in 2021) specialist medical centre in for Stage 2 of Wakefield
Clinical floors 1–10 handed over in Adelaide (Stage 2, Playford Health Hub). Hospital redevelopment. Stage
November 2021; balance expected to This is ~55% pre-leased3. Construction is 2 is expected to cost ~$91.5m and
be handed over in early 2022. targeted to commence late-2022 and to complete in late-2024. Stage 1
be complete in late 2023. completed mid-2021 for $49.9m.
1
Refer to slide 29 for more detail
2
Stabilised year 3 yield VITAL HEALTHCARE PROPERTY TRUST | INTERIM RESULTS 2022 | 26
3
Includes heads of agreementCommitted developments – Australia & New Zealand
DEVELOPM E N TS E N H A NC E E A R NING S G R O W T H AND IM P ROV E ASS E T Q UALIT Y
ALL VALUES SHOWN IN $M DESCRIPTION OF WORKS DEVELOPMENT SPEND COST TO FORECAST FORECAST STATUS
COST TO DATE COMPLETE NET RETURN COMPLETION DATE
Epworth Eastern (VIC) New 14 storey tower incorporating 5 operating theatres, 60 A$96.5 A$92.5 A$4.0 5.3% Early-22 Clinical levels (1–10) complete and leased to Epworth. Levels
beds, 7 levels of consulting and refurbishment of the existing 11–14 due for staged completion across the 1H of CY22. Minor civil
medical centre works ongoing.
Eden Rehabilitation (QLD) Conversion of an existing rehabilitation ward to mental health A$4.8 A$3.0 A$1.8 5.8% TBA Works paused pending tenant review due to Covid impacts.
including 6 additional beds
Abbotsford Private (WA) 47 beds, parking, therapy rooms and admin A$18.6 A$7.0 A$11.6 6.1% Mid-22 Structure well advanced. Services installation commenced.
Belmont Private (QLD) 48 new inpatient beds, 13 private practice consulting suites A$22.6 A$7.3 A$15.3 5.8% Late-22 Internal refurb areas complete. Main structural works underway.
and 70 new car parks
Total Australian Developments A$ A$142.5 A$109.8 A$32.7 5.5%
Total Australian Developments NZ$ NZ$151.5 NZ$116.7 NZ$34.8 5.5%
Wakefield Stage 2 (Wellington) Second stage of hospital rebuild delivering 8 operating NZ$91.5 NZ$15.5 NZ$76.0 5.6% Late-24 Structural demolition complete. Design finalisation in progress.
theatres, 42 beds, new Day Surgery Unit and additional
expansion capacity
Royston DSU (Hastings) New standalone two theatre day surgery unit NZ$8.8 NZ$8.8 NZ$0.0 6.0% Early-22 Nearing completion with practical completion expected end of February.
Boulcott Hospital (Wellington) Two new theatres, PACU expansion and conversion of double NZ$7.7 NZ$0.0 NZ$7.7 6.2% Early-23 Design work ongoing with lodgement of building permits expected in
rooms to singles early March.
Grace Hospital Stage 1 Fitout of two theatres, new endoscopy room, additional 10 NZ$31.7 NZ$1.0 NZ$30.7 5.3% Mid-23 Theatre fitout works commenced along with alterations to the day
(Tauranga) beds and redevelopment of existing clinical areas surgery unit. Main works to be tendered mid-year.
Royston Hospital Stage 2 Fitout of two theatres and reconfiguration of pre and post NZ$6.3 NZ$0.0 NZ$6.3 5.3% Mid-22 Minor demolition complete. Design work progressing.
(Hastings) operative clinical areas
Bowen Hospital OT5 Fitout of one theatre, new sterile stores and expansion of NZ$6.3 NZ$0.4 NZ$5.9 5.3% Mid-23 Theatre fitout works commenced with balance of work out to tender.
(Wellington) consulting suites
Total New Zealand Developments NZ$152.3 NZ$25.7 NZ$126.6 5.6%
Total Projects in NZ$ NZ$303.8 NZ$142.4 NZ$161.4 5.5%
31 December 2021 period end NZD/AUD exchange rate of 0.9411 adopted
VITAL HEALTHCARE PROPERTY TRUST | INTERIM RESULTS 2022 | 27Playford Health Hub, Adelaide, South Australia
STAG ED H E A LT H P R E C INC T U ND E R D E V E LO PME NT
A$170m SITE CONTEXT & MASTERPLAN COMPLETED STAGE 1 MULTI-DECK CAR PARK & RETAIL
total projected cost Lyell McEwin
Public Hospital
of all stages1
Playford Health Hub
8,000 sqm
of NLA to be delivered Artist’s impression
in Stage 1 and Stage 2
OVERVIEW OF STAGES 1–3
in addition to the private
hospital Stage 1: Retail precinct & multi-deck car park. Construction completed S3 S1
S1
S2
and operational from end of 2021
Stage 2: ~6,500sqm Specialist Medical Centre. Construction Tender
Stage 1 S2
Q2 2022
complete
S3 Stage 3: 120 Bed (staged) Private Hospital to be operated by Calvary
Healthcare & delivered in stages. Concept planning in progress
Artist’s impression
1
This represents Vital's estimated investment. Tenants, particularly Calvary Healthcare, are expected to invest significant amounts in addition to this. VITAL HEALTHCARE PROPERTY TRUST | INTERIM RESULTS 2022 | 28~NZ$74m of new brownfield development funding approved
VITAL C ON T I N U E S TO INV E ST F U R T H E R INTO NE W Z EAL AND
Development summary
Highlights the strength of Vital’s relationships in the New Zealand market
Developments enhance condition and functionality of existing assets
Developments immediately accretive to earnings and value of assets
Works either direct result of existing demand, or future proofing for near term expansion requirements of operators
Further update on the previously approved new and expanded brownfield developments with
Evolution Healthcare and Southern Cross announced at Vital’s 2021 Annual Meeting:
VALUE (N Z D) Y I E L D S C OP E
Wakefield Hospital 1
$28.7 5.3% (1) Shell for additional level for future expansion; (2) dedicated day surgery; and (3)
increased overall funding
Royston Hospital $6.3 5.3% Fitout of two shell theatres and expansion of admission and recovery areas
Royston Day Surgery2 $0.7 5.9% Upgrade of second theatre
Bowen Hospital $6.3 5.3% Fitout of fifth theatre, upgrade to inpatient rooms, expansion of consulting and support areas
Grace Hospital3 $31.7 5.3% Fitout of existing theatre shells, improved day surgery and expansion of inpatient wards
TOTAL $73.7 5.3%
1
Stage 2 increase only
2
Additional scope to previous works
VITAL HEALTHCARE PROPERTY TRUST | INTERIM RESULTS 2022 | 29
3
Operated in JV between Evolution Healthcare and Southern CrossKo ngā tahu ā ō tapuwae inanhi, hei tauira mō āpōpō.
The footsteps we lay down in our past create the
paving stones on which we stand today.
Future
focusFY22 Sustainability targets and HY22 achievements
ALL TARGE TS U N DE R WAY:
People Practice Places
Continue to improve Establish baseline Participate in third-party
diversity on the Board environmental reporting assessments through GRESB
and in Management Meet distribution guidance and CDP
Focus on mentoring and and AFFO target Improve our CDP score
career progression Maintain prudent AFFO pay- Deploy sustainability initiatives with
Encourage greater out ratio key stakeholders including tenants
community involvement Continue charitable and Continue to progress investigation
Continue existing community support programme of additional solar installations
professional development Extend and diversify debt
NWH released its first Sustainability Report for its global operations
including Vital. View the report at:
www.nwhreit.com/mailers/sustainability/nwh-sustainability-report.pdf
VITAL HEALTHCARE PROPERTY TRUST | INTERIM RESULTS 2022 | 31Outlook & guidance
C ONTINU E D DE LI V E RY A ND F O C U S O N E A R NINGS G RO WTH
Upgraded FY22 AFFO guidance
Significant development pipeline Future asset recycling strategies
of at least 11.9 cpu; up at least continue to be considered to
$303.8m committed
3.2% on FY21 partially fund new developments
$161.4m remaining cost to complete and acquisitions
pgraded FY22 distribution
U
guidance of 9.75 cpu (annualised); ~$1bn1 potential pipeline Targeting maintaining weighted
actual payments expected to be opportunities identified average debt duration >4 years
8.5% above FY21 Further value-add acquisition
Sustainability achievements
Conservative ~80% pay-out ratio and development opportunities to be built on including ongoing
retained being considered submissions to both CDP and
GRESB
1
Development timing and therefore spend expected to be over a staged and lengthy period (at least 10 years) VITAL HEALTHCARE PROPERTY TRUST | INTERIM RESULTS 2022 | 32Appendices
Adjusted funds from operations (AFFO)
CO NS ERVAT I VE PAY-O U T R ATIO
HY22 H Y21 ($) CHA NG E (%) CHA NG E
Operating profit before tax and other income 27.8 28.2 (0.4) (1.5%)
Add/(deduct):
Current tax expense (4.4) (7.6) 3.2 42.6%
Current tax expense on net of gain on property disposals and lease incentive transaction - 3.4 (3.4) -
Incentive fee 6.8 3.1 3.7 120.4%
Realised and unrealised fx on borrowings (net of tax) (0.1) 0.5 (0.6) 124.7%
Amortisation of borrowing costs 0.6 0.3 0.2 65.2%
Amortisation of leasing costs & tenant inducements 1.2 1.1 0.1 12.5%
Strategic transaction expenses 0.3 - 0.3 -
IFRS 16 operating lease accounting (0.1) (0.1) (0.0) (20.9%)
Funds from operations (FFO) 32.2 29.0 3.2 11.0%
Add/(deduct):
Non-recurring corporate costs - - - -
Actual capex & leasing from continuing operations (0.1) (0.9) 0.7 85.1%
Adjusted funds from operations (AFFO) 32.0 28.1 3.9 14.0%
AFFO (cpu) 5.91 5.87 0.05 0.8%
Distribution per unit (cpu) 4.75 4.38 0.38 8.6%
AFFO pay-out ratio 80% 75%
All values shown as NZ$m
Units on issue (weighted average, 000s) 541.9 479.2
VITAL HEALTHCARE PROPERTY TRUST | INTERIM RESULTS 2022 | 34Interest rate hedging profile
CO ST O F D E BT W E LL H E D G E D, MA NAG ING R ISK
RATE S 31 D E C 2021 31 DEC 2020 H ED G ING M ATURIT Y P RO FILE ($A)
Weighted average cost of debt1 3.14% 3.62%
450 3.50%
Weighted average fixed rate 2.94% 3.01% 400
(excl line and margin) 3.00%
350
Weighted average fixed rate 5.0 years 5.9 years 2.50%
300
duration
VALUE ($M)
250 2.00%
% of drawn debt fixed 45% 64%
200 1.50%
150
1.00%
100
0.50%
50
0 0.00%
22
23
24
25
26
27
28
1
23
24
25
26
27
28
29
22
2
c-
c-
c-
c-
c-
c-
c-
c-
n-
n-
n-
n-
n-
n-
n-
n-
De
De
De
De
De
De
De
De
Ju
Ju
Ju
Ju
Ju
Ju
Ju
Ju
Maturity date Average interest rate
NOTE: Fixed rates exclude line fees and margin
1
Drawn debt (excludes line fees on undrawn facility)
VITAL HEALTHCARE PROPERTY TRUST | INTERIM RESULTS 2022 | 35Real estate returns
HEALTHCARE REAL ESTATE CONTINUES TO PERFORM STRONGLY AGAINST CORE PROPERT Y INVESTMENT SECTORS
Returns by real estate asset class in Australia versus Vital’s real estate
level returns (non-compounding) year ended 31 December 2021
100%
88.3%
83.7%
Vital continues to
80% outperform Retail and
Office real estate asset
60% 57.4% 56.8%
classes in Australia over the
40%
40.7%
proceeding 1 year, 3 year
26.3% 28.2%
and 5 year periods.
16.1% 18.2%
20%
9.0% 6.4%
0.9%
-
0%
-20%
1 year 3 year 5 year 1 year 3 year 5 year 1 year 3 year 5 year 1 year 3 year 5 year
OFFICE RETAIL INDUSTRIAL VITAL
Source: MSCI & Vital, December 2021
Returns shown are on a nominal, unlevered “all asset” basis (inclusive of development and transaction activity). Vital's returns include Australian and New Zealand Portfolio
VITAL HEALTHCARE PROPERTY TRUST | INTERIM RESULTS 2022 | 36Comparative returns
VITAL MA I N TAI N S LO NG-TE R M O U TPE R F O R MA N C E VS BENC H M ARK O N A TOTAL RE TURN 1 BAS IS
TOTAL RETURN 1 TO 31 DECEMBER 2021 1YR 5YR (P.A.) 10YR (P.A.) SINCE 2004 (P.A.) 2
V H P VS S&P NZ X REAL ESTAT E IN DEX
Vital -0.9% 13.2% 16.3% 13.7%
1,000
S&P/NZX All Real Estate Index 2.9% 11.8% 12.3% 9.4%
900 S&P/NZX 50 Index
S&P/NZX 50 Index -0.4% 13.6% 14.8% 8.9%
800
Vital’s performance vs NZX REIT -3.8% 1.4% 4.0% 4.3% Vital
700
Vital’s performance vs NZX 50 -0.5% -0.4% 1.5% 4.8%
600 S&P/NZX All Real
Estate Index
500
Under-performance over last 12 months driven primarily by a high 400
Vital unit price (absolute and relative) on 31 December 2020 300
200
5.3% outperformance versus NZX REIT benchmark over last 24 100
months and 2.4% outperformance versus NZX 50 0
05
06
07
08
09
10
11
12
13
14
15
16
17
18
19
20
21
n-
n-
n-
n-
n-
n-
n-
n-
n-
n-
n-
n-
n-
n-
n-
n-
n-
Outperformance against both the S&P/NZX All Real Estate Index
Ju
Ju
Ju
Ju
Ju
Ju
Ju
Ju
Ju
Ju
Ju
Ju
Ju
Ju
Ju
Ju
Ju
and S&P/NZX 50 Index since December 2004
Source: Forsyth Barr
Long-term outperformance highlights the defensive nature of
healthcare real estate compared to other real estate classes 1
2
Total returns measured by change in unit price plus post-tax distributions to 31 December 2021
S&P/NZX All Real Estate Index and S&P/NZX 50 Index data from 31 December 2004, being the
inception date of the NZX All Real Estate Index
VITAL HEALTHCARE PROPERTY TRUST | INTERIM RESULTS 2022 | 37~$2.2bn Australian portfolio overview
G EO GR A P H I C A LLY D ISPE R SE D AU ST R A L IA N PO R TFO LIO C O NTINUES TO P ERFO RM WELL
PRIVAT E HOSPITALS – AU ST RALIA
17 hospitals (acute and specialty –
mental health, rehabilitation)
Four hospital operators
AG E D C A R E 80% of AUS portfolio value;
A M B U L ATO RY
77% of AUS rent
CARE
6% WALE: 18.9 years
14% AMB U L ATORY CARE – AU ST RALIA
20%
ER 6 assets, multiple tenants
H
OT
14% of AUS portfolio value;
13% of AUS rent
45%
WALE: 6.9 years
%
80
L AGED CARE – AU ST RALIA
TA
35% HOSPI
8 facilities (all in AUS )
S P E C I A LT Y AC U T E 2 operators
16.9 years
H O S P I TA L H O S P I TA L
6% of AUS portfolio value;
10% of AUS rent
WA L E WALE: 14.5 years
S U B S E C TO R D IV E R SIT Y (BY VA LU E)
VITAL HEALTHCARE PROPERTY TRUST | INTERIM RESULTS 2022 | 38~$0.8bn New Zealand portfolio overview
K EY NE W Z E A L AN D M A R K E T PE R F O R MING STR ONG LY
PRIVATE HOSPITALS – NEW ZEALAND
9 hospitals (all acute)
6 hospital operators
A M B U L ATO RY
CARE 87% of NZ portfolio value;
86% of NZ rent
13%
WALE: 22.1 years
3%
ER 1
TH
O
AMBULATORY CARE – NEW ZEALAND
3 assets, multiple tenants
7%
8
AL 13% of NZ portfolio value;
HOSPIT
14% of NZ rent
87% AC U T E
WALE: 8.1 years
20.2 years
H O S P I TA L
WA L E
S UB S E C TO R D IV E R SIT Y (BY VA LU E)
VITAL HEALTHCARE PROPERTY TRUST | INTERIM RESULTS 2022 | 39Investment properties AS AT 31 D EC EM BER 2021
~$3BN P OR T FOLI O O F H E A LTH C A R E R E A L E STATE C O M P RIS ING 4 3 INV ESTM ENT P RO P ERTIES AND 2,800+ BEDS
Western Australia (4) Queensland (6) New South Wales (12) Auckland (5)
Abbotsford Private Hospital Baycrest Aged Care Clover Lea Aged Care Apollo Health & Wellness Centre
Hamersley Aged Care Belmont Private Hospital Darlington Aged Care Ascot Central
Marian Centre Eden Rehabilitation Fairfield Aged Care Ascot Carparks
Rockingham Aged Care Palm Beach Currumbin Clinic Grafton Aged Care Ascot Hospital & Clinics
Tantula Rise Aged Care Hirondelle Private Hospital Ormiston Hospital
The Southport Private Hospital Hurstville Private Hospital
Lingard Day Centre
Lingard Private Hospital Northland (1)
NORTHERN
Maitland Private Hospital Kensington Hospital
T E R R I TO RY
Mons Road Medical Clinic
QUEENSLAND
The Hills Clinic
WESTERN 6 Toronto Private Hospital
AU S T R A L I A Bay of Plenty (1)
SOUTH
4 AU S T R A L I A
Grace Hospital
NEW SOUTH
3 WA L E S
12
12
Hawke's Bay (2)
V I C TO R I A Napier Health Centre
6 Victoria (6) Royston Hospital
Ekera Medical Centre
TASM A N I A Epworth Eastern Hospital & Medical Centre
Wellington (3)
South Australia (3) 120 Thames Street
Boulcott Hospital
Sportsmed Hospital, Clinic, Consulting & Office Epworth Camberwell
Bowen Hospital T E NNYSO N CE NT R E,
The Tennyson Centre Epworth Rehabilitation Hospital
Wakefield Hospital
Playford Health Hub – Retail & Carpark South Eastern Private Hospital A DE L A I DE, SA
VITAL HEALTHCARE PROPERTY TRUST | INTERIM RESULTS 2022 | 40Lease expiry profile
LO W RIS K E XP I RY P R O F IL E SU PPO R TS SU STA INA BLE, P RED IC TABLE AND D EFENS IV E C AS H FLO WS
Lease expiries in CY22 primarily reflect smaller tenancies at multi-tenant properties
C Y22 EX P I R I E S
— 10-year average annual lease expiry of only 1.9% (as % of total portfolio income)
Total potential expiries of
$1.6m or 1.2% of annual 10%
rent through to December
2022 7.5%
5%
2.5%
1.9%
0%
Dec-22 Dec-23 Dec-24 Dec-25 Dec-26 Dec-27 Dec-28 Dec-29 Dec-30 Dec-31
Total expiry Largest single rent expiring 10 Year Average
VITAL HEALTHCARE PROPERTY TRUST | INTERIM RESULTS 2022 | 41Rent reviews
HIG H P E R C E N TAGE O F TOTA L R E NT IS R E V IE W E D ANNUALLY WITH STRUC TURED 1 REV IEW M EC H ANISM S
Rent reviews – HY22
(“LIK E-F OR-LI KE” E XC LU D E S D E V E LO PME NTS, AC Q UIS ITIO NS AND D IS P O SALS)
Rent reviews have been
Jun-21 Rent p.a. Dec-21 Rent p.a. Increase Annualised Growth
completed for 43 leases
# (NZD) (NZD) (NZD) (Stable currency)
Australia AUS 18 11,666,281 12,147,752 481,471 4.1%
in FY22 to date
New Zealand NZ 25 23,948,037 24,793,974 845,937 3.5%
Total 43 35,614,318 36,941,726 1,327,408 3.7%
Structured reviews
represent 94%1 of leases
by income as at 31
Jun-21 Rent p.a. Dec-21 Rent p.a. Increase Annualised Growth
# (NZD) (NZD) (NZD) (Stable currency)
December 2021
CPI CPI 28 26,128,013 26,883,139 755,126 2.9%
Fixed Fixed 9 6,202,618 6,523,727 321,109 5.2%
Significant uplift via
Market Market 5 2,356,572 2,508,877 152,305 6.5%
market rent reviews
Turnover Turnover 1 927,115 1,025,982 98,867 10.7%
across Portfolio
Total 43 35,614,318 36,941,725 1,327,408 3.7%
Includes fixed percentage and CPI reviews
1
VITAL HEALTHCARE PROPERTY TRUST | INTERIM RESULTS 2022 | 42Core portfolio metrics
5 Y EAR T R E N D S H I GH L IG H T PO R TF O L IO STR E NG TH AND UND ERP IN LO NG-TERM P ERFO RM ANC E
O C C UPANC Y WAL E
19.0
100% 19
99.3% 99.4% 99.5% 18.6
99.1% 99.0%
99% 18.0 17.9 17.8
18
98%
17
97%
16
96%
Long-term track record of maintaining
95% 15
>99% Occupancy
2017 2018 2019 2020 2021 2017 2018 2019 2020 2021
AV ERAG E 10 YR LEAS E EX P IRY 1 TOTAL IN COME SUBJEC T TO
ST RUC T URED REN T REVIEWS
6% 100% 94.0% 94.0%
PERCENTAGE OF INCOME
85.8% 90.0%
PERCENTAGE OF INCOME
82.9%
5%
80%
4%
60%
3%
2.1% 40%
High degree of confidence that 2%
1.8%
1.7%
1.3%
1.9%
20%
future expiries will be renewed 1%
0%
or replaced with new tenants in 0%
2017 2018 2019 2020 2021
2017 2018 2019 2020 2021
advance of expiry
1
Reflects the average % of total portfolio
income that expires over the next 10 years VITAL HEALTHCARE PROPERTY TRUST | INTERIM RESULTS 2022 | 43Vital’s strategy
VITAL INVE STS I N H E A LT H C A R E E C O SYST E MS IN NEW Z EAL AND & AUSTRALIA
EAR NI N GS GR O WT H LOCAT ION
Portfolio designed to support Portfolio allocation 1 Australia or New Zealand
AFFO target growth of 2–3%/
Focus on metropolitan assets with
unit per annum
growing populations
H O S P ITALS AG ED C ARE
Actual: 82% Actual: 5%
QUALI T Y Target: 50%–70% Target: 10%–20% ACUIT Y
Continuously improve portfolio Higher acuity
quality
Investments in core health ecosystem
Aiming to maintain or improve
Regulated and health precinct2
(lower) average building age
offerings preferred
INVESTME N T C H A R AC TE R ISTIC S SUB-SEC TOR
Screened by a range of Reduction in hospital allocation
metrics including internal rate AM BUL ATO RY LIFE S C IENC ES indicates an expectation that future
of return, impact on overall C ARE / RES EARC H growth opportunities are more likely
portfolio, earnings growth and Actual: 13% Actual: 0% to come from the other sub-sectors,
management capability Target: 10%–20% Target: 5%–10% rather than a desire to reduce
Focus on high quality, well exposure
capitalised operators
Based on total portfolio value and includes allocation of strategic assets to their respective property types.
1
A health precinct is typically anchored by a public hospital, university and/or large private hospital.
2
VITAL HEALTHCARE PROPERTY TRUST | INTERIM RESULTS 2022 | 44Vital’s structure
VITAL IS A UNIT TRUST LISTED ON THE NZX, EXTERNALLY MANAGED BY A LEADING GLOBAL HEALTHCARE REAL ESTATE INVESTOR AND MANAGER
Vital’s Manager and largest unitholder
~27%
Management of Vital in accordance with the Trust Deed
>250 ~NZ$11bn 7
healthcare assets under number of New Zealand’s largest specialist and
real estate management countries NorthWest only listed owner of healthcare real estate
professionals operates in
Vital Unitholders ~73% ~$3 billion portfolio healthcare
Majority NZ based institutions and retail investors real estate in AUS and NZ
VITAL HEALTHCARE PROPERTY TRUST | INTERIM RESULTS 2022 | 45Why invest in vital
VITAL IS T H E ON LY S PE C IA L IST NZ X-L IST E D O W N ER O F H EALTH C ARE P RO P ERT Y; NO ASX-LISTED EQ UIVAL EN T
DEF ENSIVE SEC TOR H IGH D E M A N D H I G H Q UA L I T Y P O R T FO L I O E A R NI NG S G R OW T H DEV ELOPMEN T U PSIDE
Private healthcare is typically Ageing demographics and Landlord to some of New Targeting 2–3% AFFO $161m of remaining spend
a non-discretionary or high growing population in both Zealand and Australia’s and DPU growth with a on existing developments
priority discretionary spend Australia and New Zealand leading private healthcare conservative pay-out ratio and ~$1bn+2 of identified,
operators potential pipeline to be
Less impacted by economic Rising life expectancy 94% of leases increase by
partially funded by asset
or business cycles than other ~$3bn portfolio CPI or fixed %
Improvements in science, recycling and existing debt
property sectors
technology and healthcare 99.0% occupancy Embedded earnings growth facilities
increase service offerings enhanced by acquisitions and
WALE: 17.8 years Weighted average project
developments
Average building age : 1 yield of 5.5%; provide value
10.7 years creation and earnings growth
Vital seeks to deliver stable and growing total unitholder returns, including an attractive
risk-adjusted income distribution, sourced from healthcare property
1
Average building age = the later of the date of construction or last significant capital works
2
Development timing and therefore spend expected to be over a staged and lengthy period (at least 10 years) VITAL HEALTHCARE PROPERTY TRUST | INTERIM RESULTS 2022 | 46Glossary
AFFO Adjusted Funds From Operations is an alternate measure used for assessing distributable income. Essentially adjusts net profit
after tax for all non-cash items (i.e. NDI) then makes adjustments for items such as maintenance capex and lease incentives paid.
Cap Rate Capitalisation Rate. Generally calculated as net operating income / current market value of investment property.
CPI Consumer Price Index. An index that measures the change in the cost of a ‘basket’ of basic goods and services, showing how
the cost-of-living changes over time. The most widely accepted indicator of inflation.
FX An abbreviation for ‘foreign exchange’ used where there is a transaction in a currency other than the local currency.
NPI Net Property Income.
NTA Net Tangible Assets. The total assets of the Trust less total liabilities. NTA is normally divided by the number of units on issue and
expressed as an annual amount per unit.
WALE Weighted Average Lease term to Expiry. The weighted average lease term remaining to expire across a portfolio, sometimes
also referred to as WALT.
VITAL HEALTHCARE PROPERTY TRUST | INTERIM RESULTS 2022 | 47Disclaimer
This document has been prepared by NorthWest Healthcare Properties Management Limited (the Manager) as manager of the Vital
Healthcare Property Trust (the Trust). This document provides general information only and is not intended as investment, legal, tax, financial
product or financial advice or recommendation to any person and must not be relied on as such. You should obtain independent professional
advice prior to making any decision relating to your investment or financial needs.
All references to $ are to New Zealand dollars unless otherwise indicated.
This document may contain forward-looking statements. Forward-looking statements can include words such as “expect”, “intend”, “plan”,
“believe”, “continue” or similar words in connection with discussions of future operating or financial performance or conditions. Any
indications of, or guidance or outlook on, future earnings or financial position or performance and future distributions are also forward-
looking statements. The forward-looking statements are based on management's and directors’ current expectations and assumptions
regarding the Trust’s business, assets and performance and other future conditions, circumstances and results. As with any projection or
forecast, forward-looking statements are inherently susceptible to uncertainty and to any changes in circumstances. The Trust’s actual results
may vary materially from those expressed or implied in the forward-looking statements. The Manager, the Trust, and its or their directors,
employees and/or shareholders have no liability whatsoever to any person for any loss arising from this document or any information
supplied in connection with it. The Manager and the Trust are under no obligation to update this document or the information contained in it
after it has been released. Past performance is no indication of future performance.
The information in this document is of general background and does not purport to be complete. It should be read in conjunction with Vital’s
market announcements lodged with NZX, which are available at www.nzx.com/companies/VHP.
24 February 2022
VITAL HEALTHCARE PROPERTY TRUST | INTERIM RESULTS 2022 | 48Thank you
www.vitalhealthcareproperty.co.nz Wakefield Hospital, Wellington
Recently completed Stage 1 (Right) and Artist’s impression of Stage 2 (Left)You can also read
