Vital delivers strong interim result

Reporting Period6 months to 31 December 2016
Previous Reporting Period6 months to 31 December 2015
Amount
NZ$000s
Percentage
change
Revenue from ordinary activities
54.6%
Profit (loss) from ordinary activities after tax
attributable to security holder
-22.8%
Net profit (loss) attributable to security holders
45,524-22.8%
Interim/Final DividendAmount per
security
Imputed
amount per
security
NZ$0.02125NZ$0.000914
Record Date
Dividend Payment Date
Comments:Refer
announcement
50,813
45,524
VITAL HEALTHCARE PROPERTY TRUST
Results for announcement to the market
9 March 2017
23 March 2017

---

vhpt.co.nz
23 February 2017

Vital delivers strong interim result
Vital Healthcare Property Trust (Vital) today released its interim results for the six
months ended 31 December 2016 and has confirmed a second quarter cash
distribution of 2.125 cents per unit will be paid to unitholders on 23 March 2017.
Highlights
 12 month total return to 31 December 2016 of 13.7%, outperforming the S&P/NZX All Real Estate Gross
Index return of 2.7%
 Gross rental income of $51.8m
1
, up 54.4%
 Operating profit before tax of $42.2m, up 58.4%
 Net distributable income of $35.5m, up 87%
 Interim revaluation gain of $13.1m, a 1.2% increase on carrying book value
 NTA per unit of $1.67, up 11% or 16 cents per unit from 30 June 2016
 Portfolio WACR
2
firmed 30 basis points (bps) to 6.90%
 Acquisition of two medical office buildings (MOBs) in Melbourne and Sydney for A$55m
 Market leading WALE
3
of 17.6 years, occupancy levels at 99.0% and rent review growth of 1.2%
David Carr, Chief Executive of Vital Healthcare Management Limited (the Manager), said “At the half way point in
the 2017 financial year we have successfully advanced our scale and diversification strategy. Following the
strongly supported $160m capital raising in July we completed acquisitions of two quality MOBs and a number of
strategic sites around existing core assets. This diversification and flexibility for growth is an important part of
Vital’s plan as we continue with our very successful brownfield development programme, working closely with both
existing and potential operating partners.
Vital is in a strong capital and portfolio position. Its sustainable distribution, coupled with a conservative payout
ratio, means we are well placed to execute on our embedded strategy including long-term value creation. Our
activities continue to be validated through independent property valuations, strong total unitholder returns and
market leading unit price premium to NTA.
Undeniable population, ageing and wider healthcare demand trends continue to support our robust investment
thesis. We retain a positive outlook and we remain excited about a range of potential opportunities over the
remainder of 2017” said Mr Carr.
Interim valuations and portfolio activity
In order to assess whether any valuation change has occurred for the half year to 31 December, the incumbent
independent valuers from 30 June 2016 were commissioned to provide external desk-top reviews on a non-
reliance basis. As a result, Vital recorded an increase in the fair value of its portfolio of $13.1m or 1.2%. The
increase is over and above acquisitions and development expenditure incurred in the period.
Following the interim revaluation process, Vital’s WACR for the six months to 31 December firmed approximately
30 bps to 6.9%. The Australian portfolio reported a 30 bps firming in capitalisation rate to 6.9% and the New
Zealand portfolio firmed 10 bps to 6.8%. The valuation uplift was primarily driven by firmer capitalisation rates, but
also supported by incremental increases in income as a result of rent reviews over the period.
Mr Carr said “We continue to see market evidence driving the strong directional firming of capitalisation rates for
healthcare real estate. Quality assets, like those in Vital’s portfolio are in high demand as the competitive

1 Includes lease termination receipt of $13.8m
2 Weighted Average Capitalisation Rate
3 Weighted Average Lease Term to Expiry

vhpt.co.nz
landscape continues to evolve. This demand is supported by a weight of capital looking for social infrastructure
opportunities with excellent tenant covenants, strong underlying investment and demographic themes with the
ability to add incremental value over time”.
Vital’s WALE stands at 17.6 years with occupancy at 99.0%. The long WALE and consistently high occupancy
levels are portfolio traits that underpin Vital’s sustainable distribution and reflect the depth of established long-term
relationships with our key partners.
A total of 33 rent reviews (approximately 20% of total income) were completed to 31 December, resulting in rent
growth of 1.2%. With around 65% of Vital’s total income remaining subject to review to 30 June 2017, we expect
these reviews will contribute to continued income growth over the period.
With a lease expiry profile at the start of FY17 representing 2.4% of total income, approximately 71% of these
renewals or expiries are now completed. We look to resolve the remaining few expiries over the next six months
as we also continue to proactively focus on expiries beyond 2017 and current vacancies.
Acquisitions
Vital acquired two MOBs in the first half of the year. The first was Mons Road Medical Centre (Mons Road) in
Westmead, Sydney for A$30.7m. Mons Road is a modern, multi-tenanted, four-level building providing excellent
tenant and asset diversification.
Located within the Westmead medical precinct, one of Australia’s largest health service precincts, Mons Road has
a mix of high quality tenants including Castlereagh Imaging, one of the largest networks of radiology practices in
NSW and a subsidiary of ASX-listed Sonic Healthcare. Other tenants include IVF Australia, owned by ASX-listed
Virtus Health and Ramsay Health Care.
In November Vital acquired a majority interest in Ekera Medical Centre (Ekera) for A$24.4m. Ekera is a modern,
multi-tenanted, four-level MOB in Melbourne’s Box Hill medical precinct. The precinct includes the recently
redeveloped 400 bed, ten theatre Box Hill Public Hospital and Vital’s own Epworth Eastern Hospital (223 beds and
ten theatres) and Medical Centre (18 fully occupied consulting suites).
With over A$130m invested in two properties comprising the Epworth Eastern Campus, Vital is the largest private
healthcare real estate investor in the precinct. With the expansion undertaken at Epworth Eastern Hospital last
year, Ekera provides a modern asset to support future masterplan initiatives. Ekera’s major tenant is Imaging
Associates, representing approximately 40% of rental income. Other tenants include Sonic Healthcare, Monash
IVF (ASX-listed) and Sportsmed Biologic.
Development activity update
In the first half of FY17 Vital completed A$18.3m of brownfield development at South Eastern Private Hospital and
Dubbo Private Hospital.
Five development projects, totalling approximately A$63m are currently underway. The projects include a mix of
modernisation and expansion at acute surgical and mental health facilities to meet the growing demand for
healthcare services. Included in the above is the most recent A$6.3m commitment at the Palm Beach Currumbin
Clinic, investing in new consulting suites and the conversion of double rooms to single rooms, with the project
forecast for completion in October 2017.
The brownfield redevelopment programme remains a core part of Vital’s scale and diversification strategy. It will
continue to underpin earnings sustainability, improve asset quality and enhance long-term value.
Treasury & capital management
In July 2016 Vital successfully completed a $160m capital raising, with the funds received utilised to reduce bank
debt providing substantial balance sheet capacity. As at 31 December 2016 Vital’s loan-to-value ratio was 24.4%,
with this ratio well below the bank and Trust Deed covenants of 50%.
The finance expense of $6.8m is 5.6% lower than the prior period and reflects the receipt of funds from the capital
raise and a lower interest rate with the weighted average cost of debt reduced to 4.66% compared to 5.16% in the
prior period. Vital’s treasury policies remain well managed and continue to operate effectively to minimise earnings
volatility. At 31 December, Vital maintained a bank debt hedged position of 81.7% versus 78.6% at the
comparable period end. An increase in market interest rates over the period saw the unrealised marked-to-market
valuation on those interest rate swaps improve by $8.1m.
Financial Performance
During the period Vital received a one-off lease termination receipt of $13.8m as part of rent, make-good and other
future obligations at its two properties located in Southport on the Gold Coast of Queensland, Australia. This
receipt along with a combination of development income and acquisitions over the period contributed to gross
rents of $51.8m which was $18.2m or 54.4% ahead of the prior period.

About Vital Healthcare Property Trust
Vital Healthcare Property Trust (NZX: VHP) is Australasia’s largest listed investor in healthcare real estate. Tenants include
hospital operators and healthcare practitioners who deliver a wide range of medical and healthcare related services. The
Manager of Vital Healthcare Property Trust is Vital Healthcare Management Limited.
vhpt.co.nz
Other expenses increased to $8.6m (up $2.4m on HY16) primarily as a result of an accrual provision for a
Manager incentive fee of $3.5m (HY16: $2.3m) along with base management fees increasing to $3.7m (HY16:
$2.9m) due to the higher asset base over the previous period. The incentive fee is calculated in accordance with
the Trust Deed and does not crystallise until the end of the financial year following completion of the 30 June 2017
year-end independent asset valuations.
Gross distributable income for the period was $39.9m while net distributable income increased to $35.5m. Vital
reported a net distributable income per unit for the six months to 31 December 2016 of 8.56 cents per unit (cpu),
however it is noted that this included the benefit of the one off lease termination receipt and associated tax
expense. Adjusting for this, net distributable income per unit would have been approximately 5.73 cpu (HY16: 5.52
cpu).
Vital’s NTA per unit is $1.67 or 16 cents per unit higher than as at 30 June 2016. The core drivers of the NTA
increase included the capital raising that occurred at a premium to NTA and the increase in the fair value of the
portfolio over the period.
Distributions
The Board has confirmed that investors will receive a second quarter distribution of 2.125 cents per unit with
0.0914 cpu of imputation credits attached. The record date is 9 March 2017 and payment will be made on 23
March 2017. Vital’s Distribution Reinvestment Plan remains available to investors for this distribution with a 1.0%
discount being applied when determining the strike price.
The Board has also reconfirmed its full year guidance for a cash distribution of 8.5 cents per unit.
Outlook
Mr Carr said “Vital remains in an enviable position. Following completion of the $160m capital raising in July, we
have a strong balance sheet with flexibility to continue to execute on our disciplined scale and diversification
strategy.
In addition to a high quality healthcare real estate portfolio, our strategic direction remains underpinned by
undeniable healthcare trends. This is further cemented with established tenant partnerships as we continue to
support their growth aspirations and look to foster new partnerships across the sector.
I look forward to updating investors over the course of 2017 as the management team looks to execute on the
Board’s intent to deliver sustainable distributions and long-term value creation for unitholders”.
Vital’s management team will present these results via a live webcast from 11am NZ time today. Please refer to
our market release dated 13 February 2017 for details or click here.

– ENDS -


ENQUIRIES
David Carr, Chief Executive Officer
Vital Healthcare Management Ltd, Telephone 09 973 7301, Email dcarr@vhpt.co.nz

Stuart Harrison, Chief Financial Officer
Vital Healthcare Management Ltd, Telephone 09 973 7302, Email sharrison@vhpt.co.nz

---

INTERIM RESULTS
31 DECEMBER 2016
BUILDING A HEALTHY FUTURE
23 February 2017
David Carr, Chief Executive Officer
Stuart Harrison, Chief Financial Officer

2
AGENDA
Highlights
Strategy
Financials
Portfolio
Outlook

Note: This interim result presentation should be read in conjunction with the NZX stock exchange release dated 23 February 2017. Due to rounding, numbers
presented in this presentation may not add up exactly to the totals provided and percentages may not exactly reflect the absolute figures.

Highlights

HIGHLIGHTS
Gross income of $51.8m
1
, +54.4%
Operating profit before tax $42.2m, +58.4%
NDI of $35.5m, +87%
NTA of $1.67, +11%
LVR of 24.4%, down from 36.3% at 30 June
2
nd
quarter distribution of 2.125 cents



Portfolio in great shape
17.6 year WALE, 99% occupancy
2.0% p.a. avg. lease expiry in next 10 years
A$63m development pipeline
Portfolio WACR firmed 30 bps to 6.90%
Completed two MOB
2
acquisitions
Quality, diversified healthcare real estate
portfolio
New & existing relationships
Strong balance sheet following capital raise
Focus on sustainable distributions & long-
term value creation
Attractive underlying sector fundamentals



Improve portfolio quality to enhance value
Incremental brownfield pipeline to continue
Strong demand, elevated capital inflows
Execute on scale and diversification strategy
Confirmed FY17 guidance of 8.5 cpu

Financials
Portfolio
Strategy & drivers
Outlook
Financial and portfolio performance delivering on strategy
4
Note 1: Includes lease termination receipt of $13.8m. Note 2: Medical office building

VITAL’S PERFORMANCE
5
Market validation of strategy
Source: Bloomberg, Craigs Investment Partners. Total returns (capital gain plus income) as at 31 December 2016.

Strategy

BUILDING A HEALTHY FUTURE


7
Three core elements to strategy

8
FOCUS FOR 2017
Progress report on 2017 initiatives
Deliver strong operational, financial and portfolio results
1H17 results and portfolio position in great shape

Execute on development pipeline, continuation of incremental value-add opportunities
Five projects underway with more expected, two recently completed


Deliver strategic acquisitions to support operator growth
Further sites acquired


Prudently deploy balance sheet to appropriate opportunities
Range of potential acquisition opportunities, continued organic growth

Focus on sustainable distributions to investors
Confirmed FY17 distribution guidance of 8.5cpu
Widen and strengthen relationships that support scale & diversification
New relationships engaged, recent acquisitions supportive

RECENT ACQUISITIONS &
COMPLETED DEVELOPMENTS
9
Sticking to strategy is a proven formula,
delivering consistent results

RECENT ACQUISITION
10
Diversification with long-term strategic value
Ekera Medical Centre, Box Hill, Victoria
Acquired majority interest for A$24.4m
Modern, multi-tenanted four-level medical
office building in Melbourne’s Box Hill
medical precinct
Major tenant Imaging Associates,
representing approximately 40% of rental
income. Other tenants include: Sonic
Healthcare*; Monash IVF*; and Sportsmed
Biologic
Strong residential population growth
forecast in the area will continue to drive
demand for services
Support Epworth Eastern campus and
provides flexibility for strategic growth
* ASX listed

DEVELOPMENT UPDATE
11
Underpins long-term earnings sustainability,
improving asset quality and portfolio value
Data as at 31 December 2016.
Average development yields of ~8%, material spread to current WACR
The development at Mayo Private Hospital is currently on-hold
The remainder of the Maitland development work will take place in stage 2, start date to be determined

PRIVATE HEALTH INSURANCE (PHI) TRENDS

12
Strong PHI trends in NZ. Australian PHI growth
sluggish but sector resilient.
Source: HFANZ data to 31 December 2016
NZ lives covered

Financials

FINANCIAL PERFORMANCE


14
Core business activities drive strong first half
performance
Gross rent growth largely driven by acquisition and development activities
Lease termination receipt in relation to rent, make good and other future obligations
Total expenses higher due to management fees on increased assets under management. Incentive
fee of $3.5m accrued
Adjusting for the lease termination receipt, Vital’s payout ratio remains conservative at ~74%
ActualActualchangechange
1H171H16$m%
Gross rental income ($m)38.033.54.413.2%
- Lease termination receipt13.8
Net rental income ($m)50.832.917.954.6%
Total expenses8.66.22.438.2%
Operating profit before tax ($m)42.226.615.658.4%
Gross distributable income ($m)39.921.818.182.8%
Current Tax - NZ & Australia ($m)4.42.91.654.4%
Net distributable income ($m)35.519.016.587.0%
Net distributable income per unit (earned) (cpu)8.56c5.52c3.0c55.0%
AFFO (cpu)8.61c5.51c3.1c56.3%
Net distributable income payout ratio50%73%
Units on issue (weighted average million)414.9344.0

DISTRIBUTABLE INCOME

15
Conservative payout ratio at both NDI
and AFFO level
1H171H16
Payout
1H17
Payout
1H16
Profit before income tax ($m)55.067.0
Revaluation (gains)/losses ($m)-13.1-45.2
Unrealised FX (gain)/loss ($m)1.9-1.4
Derivative Fair Value adjustment (gains)/losses ($m)-8.10.0
Managers Incentive Fee ($m)3.52.3
Unrealised FX (gain)/loss derivatives ($m)0.7-0.9
Gross distributable income ($m)39.921.8
Current tax ($m)4.42.9
Net distributable income ($m)35.519.0
NDI (cpu)
8.56c5.52c50%73%
AFFO
Net distributable income ($m)35.519.0
Amortisation of deferred financing charges ($m)0.20.1
Amortisation of leasing costs & tenant inducements ($m)0.30.2
FFO 36.019.3
Add/(Deduct)
Actual capex & leasing from continuing operations ($m)-0.3-0.3
AFFO35.719.0
AFFO (cpu)8.61c5.51c49%73%

16
GROSS RENTAL INCOME

Excluding one-off items, acquisitions and developments
were key drivers of core rent growth
Rent reviews includes the impact (-$0.9m) of lower rents at Gold Coast Southport assets

17
BALANCE SHEET

Strong balance sheet supports execution
of strategy
Portfolio value growth primarily reflects acquisition activity
Gearing modest after $160m capital raise
Cost of debt reflective of interest rate hedging with 82% cover and term of 5.0 years
NTA uplift largely reflective of capital raising at a premium
1: Includes line and margin
Actual
Actual
change
change
1H17
FY16
$m
%
Net Tangible Assets ($)
1.67
1.51
10.6%
Investment properties ($m)
1,068.4
951.9
116.5
12.2%
Total assets ($m)
1,076.5
978.2
98.3
10.1%
Bank debt ($m)
259.9
344.2
-84.3
-24.5%
Unitholder funds ($m)
711.2
523.7
187.5
35.8%
Units on issue (m)
427.1
346.0
81.1
23.4%
Weighted average cost of debt
1
4.66%
4.38%
LVR
24.4%
36.3%

18
INVESTMENT PROPERTY
Acquisitions key driver of property uplift over
the first six months

19
LVR MOVEMENT
Strong financial base. Flexibility to invest for
the right opportunities.

20
FOREIGN EXCHANGE – WHAT’S HAPPENED
Hedging continues to help mitigate
earnings volatility
Transaction hedging: Foreign exchange policy framework minimises earnings volatility

Portfolio

STRONG GEOGRAPHIC DIVERSIFICATION

22
32 investment properties comprising ~2,100 beds
and ~75 operating theatres
Excludes Properties Held for Development
Geographic split (%)

80/20
Australia/New Zealand
by value
Indicates number of
assets in each state

PORTFOLIO COMPOSITION
23
Strong geographic spread. Increased weighting to MOB’s
diversifies tenant mix, with potential for new
partnership opportunities.
Assets by
geography
Assets by
type

CORE PORTFOLIO METRICS

24
Resilient metrics underpin defensive qualities,
driving financial performance
Note 1: Source: ‘Sector average’ from Forsyth Barr, December 2016 (excludes VHP). Note 2: Includes CPI and fixed type reviews.
Consistent occupancy levels at almost 100% capacity
underpins sustainable portfolio performance
Long WALE reflects a range of factors including
proactive management, partners willing to commit to
quality well-located facilities, new lease extensions
and acquisitions
High level of structured reviews ensures steady
income growth over the long term, regardless of
economic cycles

LEASE EXPIRY PROFILE
25
Low risk expiry profile = sustainable, predictable
and defensive cash flows
As at 31 December 2016

INTERIM REVALUATION
26
Revaluation summary
Revaluation gain of $13.1m, +1.2% above book value
Values supported by external independent desktop reviews
Majority of gain from Australian portfolio
Australian WACR firmed ~30 bps to 6.9%, New Zealand ~10 bps to 6.8%
Portfolio WACR firmed ~30 bps to 6.9%
Drivers
Firming cap rates across broader market
Strong performance from redeveloped assets
Rising interest in healthcare real estate, new capital
Increasing transactional evidence
Low interest rate environment, unique and attractive lease terms

Definitions: WACR: Weighted Average (market) Capitalisation Rate.
Strong interim revaluations validate strategy

Outlook

28
OUTLOOK
More of the same... building a healthy future
Delivering strong financial and portfolio performance, driven by scale and diversification
Disciplined approach to acquisitions, development and portfolio management
Structural cap rate firming reflects demand, unique characteristics & track record of performance
Sector consolidation to continue, opportunity in the medium term
Work closely with existing and new operator partners to support our strategy
Maintain focus on sustainable distributions and long term-value creation

This presentation has been prepared by Vital Healthcare Management Limited (the Manager) as
manager of the Vital Healthcare Property Trust (the Trust). The details in this presentation provide
general information only. It is not intended as investment or financial advice 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.
The provision of this presentation does not constitute an offer, invitation or recommendation to
subscribe for or purchase units in the Trust.
Past performance is no indication of future performance.
No money is currently being sought, and no applications for units will be accepted, or money
received, unless the unitholders have received an investment statement and a registered
prospectus from the Trust.

23 February 2017
DISCLAIMER
29

GLOSSARY
30
AFFO
Adjusted Funds From Operations is an alternate measure used for assessing distributable income. Essentially
adjusts NPAT 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
FEC
Foreign Exchange Contract. Generally considered as a contracted commitment to buy/sell a specified amount
of a foreign currency on a fixed date at a fixed rate of exchange
FX
An abbreviation for ‘foreign exchange’ used where there is a transaction in a currency other than the local
currency
LVR
Loan to Value Ratio. Is the ratio of a loan to the value of an asset purchased or total assets. The term is
commonly applied by looking at the level of Borrowings (or debt) versus the Total Assets, or Borrowings
versus the Investment Properties
NDI Net Distributable Income. Calculated as Gross Distributable Income less Current tax charges
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 amount per unit
WACR
Weighted Average market Capitalisation Rate. The market cap rate for each property weighted by property
value
WALE
Weighted Average Lease term to Expiry. The weighted average lease term remaining to expire across a
portfolio, sometimes also referred to as WALT

---

SOUTH EASTERN PRIVATE HOSPITAL, VIC
INTERIM REPORT
AS AT 31 DECEMBER 2016
BUILDING A HEALTHY FUTURE

Vital's continued
strong financial
and portfolio
position sees it
well positioned
to build a
healthy future.
CONTENTS
2
CHAIRMAN AND CEO’S REPORT
8FINANCIAL STATEMENTS
23INDEPENDENT AUDITORS REPORT
24DIRECTORY

VALUE OF PORTFOLIO
$1.07BN
TOTAL RETURN FOR THE 12 MONTHS TO
31 DECEMBER 2016
13.7%
GROSS RENTAL INCOME GROWTH OF
54.4% TO
$51.8M
NET DISTRIBUTABLE INCOME GROWTH OF
87% TO
$35.5M
NET TANGIBLE ASSET (NTA) UPLIFT OF 16
CENTS PER UNIT OR 11% TO
$1.67
OPERATING PROFIT BEFORE TAX OF
$42.2M UP
58.4%
PORTFOLIO WEIGHTED AVERAGE CAP
RATE FIRMED 30 BASIS POINTS TO
6.90%

VITAL HEALTHCARE PROPERTY TRUST INTERIM REPORT AS AT 31 DECEMBER 2016
2CHAIRMAN AND CEO’S REPORT
STRONG
INTERIM RESULT
Vital confirmed a second quarter cash distribution of 2.125
cents per unit.
Highlights
•
12 month total return to 31 December 2016 of
13.7%, outperforming the S&P/NZX All Real Estate
Gross Index return of 2.7%
•
Gross rental income of $51.8m
1
, up 54.4%
•
Operating profit before tax of $42.2m, up 58.4%
•
Net distributable income of $35.5m, up 87%
•
Interim revaluation gain of $13.1m, a 1.2% increase
on carrying book value
•
NTA per unit of $1.67, up 11% or 16 cents per unit
from 30 June 2016
•
Portfolio WACR
2
firmed 30 basis points (bps) to
6.90%
•
Acquisition of two medical office buildings (MOBs) in
Melbourne and Sydney for A$55m
•
Market leading WALE
3
of 17.6 years, occupancy
levels at 99.0% and rent review growth of 1.2%
At the half way point in the 2017 financial year Vital
has successfully advanced its scale and diversification
strategy. Following the strongly supported $160m
capital raising in July, Vital completed acquisitions of
two quality MOBs and a number of strategic sites
around existing core assets. This diversification and
flexibility for growth is an important part of Vital’s plan
as the very successful brownfield development
programme continues, working closely with both
existing and potential operating partners.
Vital is in a strong capital and portfolio position. Its
sustainable distribution, coupled with a conservative
payout ratio, means we are well placed to execute on
our embedded strategy including long-term value
1
Includes lease termination receipt of $13.8m
2
Weighted Average Capitalisation Rate
3
Weighted Average Lease Term to Expiry
creation. Vital's activities continue to be validated
through independent property valuations, strong total
unitholder returns and market leading unit price
premium to NTA.
Undeniable population, ageing and wider healthcare
demand trends continue to support our robust
investment thesis. Vital retains a positive outlook and
remains excited about a range of potential
opportunities over the remainder of 2017.
Interim valuations and portfolio activity
In order to assess whether any valuation change has
occurred for the half year to 31 December, the
incumbent independent valuers from 30 June 2016
were comissioned to provide external desk-top reviews
on a non-reliance basis. As a result, Vital recorded an
increase in the fair value of its portfolio of $13.1m or
1.2%. The increase is over and above acquisitions and
development expenditure incurred in the period.
Following the interim revaluation process, Vital’s WACR
for the six months to 31 December firmed
approximately 30 bps to 6.9%. The Australian portfolio
reported a 30 bps firming to 6.9% and the New Zealand
portfolio firmed 10 bps to 6.8%. The valuation uplift
was primarily driven by firmer capitalisation rates, but
also supported by incremental increases in income as a
result of rent reviews over the period.
Vital continues to see market evidence driving the
strong directional firming of capitalisation rates for
healthcare real estate. Quality assets, like those in
Vital’s portfolio are in high demand as the competitive
landscape continues to evolve. This demand is
supported by a weight of capital looking for social
infrastructure opportunities with excellent tenant
covenants, strong underlying investment and
demographic themes with the ability to add
incremental value over time.

VITAL HEALTHCARE PROPERTY TRUST INTERIM REPORT AS AT 31 DECEMBER 2016
3CHAIRMAN AND CEO’S REPORT
GRAEME HORSLEY
CHAIRMAN & INDEPENDENT DIRECTOR
DAVID CARR
CHIEF EXECUTIVE OFFICER
“I look forward to updating
investors over the course of
2017 as the management team
looks to execute on the Board’s
intent to deliver sustainable
distributions and long-term
value creation for unitholders”
DAVID CARR

VITAL HEALTHCARE PROPERTY TRUST INTERIM REPORT AS AT 31 DECEMBER 2016
4CHAIRMAN AND CEO’S REPORT
Vital’s WALE stands at 17.6 years with occupancy at
99.0%. The long WALE and consistently high
occupancy levels are portfolio traits that underpin
Vital’s sustainable distribution and reflect the depth of
established long-term relationships with key partners.
A total of 33 rent reviews (approximately 20% of total
income) were completed to 31 December, resulting in
rent growth of 1.2%. With around 65% of Vital’s total
income remaining subject to review to 30 June 2017, it
is expected that these reviews will contribute to
continued income growth over the period.
With a lease expiry profile at the start of FY17
representing 2.4% of total income, approximately 71%
of these renewals or expiries are now completed.
Management will look to resolve the remaining few
expiries over the next six months and also continues to
proactively focus on expiries beyond 2017 and current
vacancies.
Acquisitions
Vital acquired two MOBs in the first half of the year.
The first was Mons Road Medical Centre (Mons Road)
in Westmead, Sydney for A$30.7m. Mons Road is a
modern, multi-tenanted, four-level building providing
excellent tenant and asset diversification.
Located within the Westmead medical precinct, one of
Australia’s largest health service precincts, Mons Road
has a mix of high quality tenants including Castlereagh
Imaging, one of the largest networks of radiology
practices in NSW and a subsidiary of ASX-listed Sonic
Healthcare. Other tenants include IVF Australia, owned
by ASX-listed Virtus Health and Ramsay Health Care.
In November Vital acquired a majority interest in Ekera
Medical Centre (Ekera) for A$24.4m. Ekera is a
modern, multi-tenanted, four-level MOB in Melbourne’s
Box Hill medical precinct. The precinct includes the
recently redeveloped 400 bed, ten theatre Box Hill
Public Hospital and Vital’s own Epworth Eastern
Hospital (223 beds and ten theatres) and Medical
Centre (18 fully occupied consulting suites).
With over A$130m invested in two properties
comprising the Epworth Eastern Campus, Vital is the
largest private healthcare real estate investor in the
precinct. With the expansion undertaken at Epworth
Eastern Hospital last year, Ekera provides a modern
asset to support future masterplan initiatives. Ekera’s
major tenant is Imaging Associates, representing
approximately 40% of rental income. Other tenants
include Sonic Healthcare, Monash IVF (ASX-listed) and
Sportsmed Biologic.
Development activity update
In the first half of FY17 Vital completed A$18.3m of
brownfield development at South Eastern Private
Hospital and Dubbo Private Hospital.
Five development projects, totalling approximately
A$63m are currently underway. The projects include a
mix of modernisation and expansion at acute surgical
and mental health facilities to meet the growing
demand for healthcare services. Included in the above
Medical office buildings
such as Ekera Medical
Centre provide
diversification and potential
for new operator
partnerships.

VITAL HEALTHCARE PROPERTY TRUST INTERIM REPORT AS AT 31 DECEMBER 2016
5CHAIRMAN AND CEO’S REPORT
is the most recent A$6.3m commitment at the Palm
Beach Currumbin Clinic, investing in new consulting
suites and the conversion of double rooms to single
rooms, with the project forecast for completion in
October 2017.
The brownfield redevelopment programme remains a
core part of Vital’s scale and diversification strategy. It
will continue to underpin earnings sustainability,
improve asset quality and enhance long-term value.
Treasury and capital management
In July 2016 Vital successfully completed a $160m
capital raising, with the funds received utilised to
reduce bank debt providing substantial balance sheet
capacity. As at 31 December 2016 Vital’s loan-to-value
ratio was 24.4%, with this ratio well below the bank
and Trust Deed covenants of 50%.
The finance expense of $6.8m is 5.6% lower than the
prior period and reflects the receipt of funds from the
capital raise and a lower interest rate with the
weighted average cost of debt reduced to 4.66%
compared to 5.16% in the prior period. Vital’s treasury
policies remain well managed and continue to operate
effectively to minimise earnings volatility. At
31 December, Vital maintained a bank debt hedged
position of 81.7% versus 78.6% at the comparable
period end. An increase in market interest rates over
the period saw the unrealised marked-to-market
valuation on those interest rate swaps improve by
$8.1m.
Financial performance
During the period Vital received a one-off lease
termination receipt of $13.8m as part of rent, make-
good and other future obligations at its two properties
located in Southport on the Gold Coast of Queensland,
Australia. This receipt along with a combination of
development income and acquisitions over the period
contributed to gross rents of $51.8m which was
$18.2m or 54.4% ahead of the prior period.
Other expenses increased to $8.6m (up $2.4m on
HY16) primarily as a result of an accrual provision for a
Manager incentive fee of $3.5m (HY16: $2.3m) along
with base management fees increasing to $3.7m
(HY16: $2.9m) due to the higher asset base over the
previous period. The incentive fee is calculated in
accordance with the Trust Deed and does not
crystallise until the end of the financial year following
completion of the 30 June 2017 year-end independent
asset valuations.
Gross distributable income for the period was $39.9m
while net distributable income increased to $35.5m.
All NZ$m (unless otherwise stated)
Actual
1H17
Actual
1H16Change $m
Change
%
Gross rental income ($m)38.033.54.413.2
- Lease termination receipt13.8
Net rental income ($m)50.832.917.954.6
Total expenses8.66.22.438.2
Operating profit before tax ($m)42.226.615.658.4
Gross distributable income ($m)39.921.818.182.8
Current Tax - NZ & Australia ($m)4.42.91.654.4
Net distributable income ($m)35.519.016.587.0
Net distributable income per unit (earned) (cpu)8.6c5.5c3.0c55.0
AFFO (cpu)8.6c5.5c3.1c56.3
Net distributable income payout ratio50%73%
Units on issue (weighted average million)414.9344.0

VITAL HEALTHCARE PROPERTY TRUST INTERIM REPORT AS AT 31 DECEMBER 2016
6CHAIRMAN AND CEO’S REPORT
BOULCOTT PRIVATE HOSPITAL, LOWER HUTT
HURSTVILLE PRIVATE HOSPITAL, NSW

VITAL HEALTHCARE PROPERTY TRUST INTERIM REPORT AS AT 31 DECEMBER 2016
7CHAIRMAN AND CEO’S REPORT
Vital reported a net distributable income per unit for
the six months to 31 December 2016 of 8.56 cents per
unit (cpu), however it is noted that this included the
benefit of the one off lease termination receipt and
associated tax expense. Adjusting for this, net
distributable income per unit would have been
approximately 5.73 cpu (HY16: 5.52 cpu).
Vital’s NTA per unit is $1.67 or 16 cents per unit higher
than as at 30 June 2016. The core drivers of the NTA
increase included the capital raising that occurred at a
premium to NTA and the increase in the fair value of
the portfolio over the period.
Distributions
The Board has confirmed that investors will receive a
second quarter distribution of 2.125 cents per unit with
0.0914 cpu of imputation credits attached. The record
date is 9 March 2017 and payment will be made on
23 March 2017. Vital’s Distribution Reinvestment Plan
remains available to investors for this distribution with
a 1.0% discount being applied when determining the
strike price.
The Board has also reconfirmed its full year guidance
for a cash distribution of 8.5 cents per unit.
Outlook
Vital remains in an enviable position. Following
completion of the $160m capital raising in July, Vital
has a strong balance sheet with flexibility to continue
to execute on our disciplined scale and diversification
strategy.
In addition to a high quality healthcare real estate
portfolio, Vital's strategic direction remains
underpinned by undeniable healthcare trends. This is
further cemented with established tenant partnerships
as Vital continues to support their growth aspirations
and look to foster new partnerships across the sector.
GRAEME HORSLEY MNZM
Chairman & Independent Director
Vital Healthcare Management Limited
Manager of Vital Healthcare Property Trust
DAVID CARR
Chief Executive Officer
Vital Healthcare Management Limited
Manager of Vital Healthcare Property Trust
All NZ$m (unless otherwise stated)
Actual
1H17
Actual
FY16
Change
$m
Change
%
Net tangible assets ($ per unit)1.671.5110.60
Investment properties ($m)1,068.4951.9116.512.2
Total assets ($m)1,076.5978.298.310.1
Bank debt ($m)259.9344.2
Unitholders funds ($m)711.2523.7187.535.8
Units on issue (m)427.1346.081.123.4
Weighted average cost of debt (%)4.664.38
LVR (%)24.436.3

VITAL HEALTHCARE PROPERTY TRUST INTERIM REPORT AS AT 31 DECEMBER 2016
0FINANCIAL STATEMENTS
FINANCIAL
STATEMENTS
FOR THE PERIOD
ENDED
31 DECEMBER
2016

VITAL HEALTHCARE PROPERTY TRUST INTERIM REPORT AS AT 31 DECEMBER 2016
FIN-1FINANCIAL STATEMENTS
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the period ended 31 December 2016
Note
Unaudited
6 months
Dec-16
$000s
Unaudited
6 months
Dec-15
$000s
Gross property income from rentals51,77533,539
Gross property income from expense recoveries3,3533,283
Property expenses(4,315)(3,950)
Net property income350,81332,872
Other expenses8,6096,231
Profit before finance income/(expense) and other gains/(losses)42,20426,641
Finance income/(expense)
Finance income7134
Finance expense(6,817)(7,224)
Fair value gain/(loss) on interest rate derivatives8,08017
1,334(7,173)
Other gains/(losses)
Revaluation gain/(loss) on investment property13,10045,188
Receipts under transaction hedging foreign exchange contracts959109
Fair value gain/(loss) on foreign exchange derivatives(701)863
Unrealised gain/(loss) on foreign exchange(1,869)1,354
11,48947,514
Profit before income tax55,02766,982
Taxation expense4(9,503)(7,991)
Profit for the year attributable to unitholders of the Trust45,52458,991
Other comprehensive income
Items that may be reclassified subsequently to profit and loss:
Movement in foreign currency translation reserve(4,547)(25,122)
Realised foreign exchange gains/(losses) on hedges10,129(492)
Current taxation (expense)/credit(2,836)138
Unrealised foreign exchange gains/(losses) on hedges(8,505)12,887
Deferred taxation (expense)/credit2,381(3,608)
Fair value gain on net investment hedges7155,828
Deferred taxation (expense)/credit(200)(1,631)
Total other comprehensive income/(loss) after tax(2,863)(12,000)
Total comprehensive income after tax42,66146,991
Earnings per unit
Basic and diluted earnings per unit (cents)510.9717.15
The notes on pages FIN-5 to FIN-14 form part of and are to be read in conjunction with these financial statements.

VITAL HEALTHCARE PROPERTY TRUST INTERIM REPORT AS AT 31 DECEMBER 2016
FIN-2FINANCIAL STATEMENTS
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
As at 31 December 2016
Note
Unaudited
Dec-16
$000s
Audited
Jun-16
$000s
Non-current assets
Investment properties61,068,383951,879
Derivative financial instruments228-
Other non-current assets341358
Total non-current assets1,068,952952,237
Current assets
Cash and cash equivalents3,52512,980
Trade and other receivables592358
Other current assets3,2173,113
Derivative financial instruments2539,486
Total current assets7,58725,937
Total assets1,076,539978,174
Unitholders' funds
Units on issue8535,276369,220
Reserves(22,808)(17,118)
Retained earnings198,778171,617
Total unitholders' funds711,246523,719
Non-current liabilities
Borrowings9259,890344,159
Income in advance2,5903,656
Derivative financial instruments11,74019,764
Deferred tax66,12663,669
Total non-current liabilities340,346431,248
Current liabilities
Trade and other payables7,7839,629
Income in advance2,7533,569
Derivative financial instruments18641
Taxation payable14,2259,968
Total current liabilities24,94723,207
Total liabilities365,293454,455
Total unitholders' funds and liabilities1,076,539978,174
For and on behalf of the Manager, Vital Healthcare Management Limited
G. Horsley, ChairmanC. Higgins, Director
23 February 2017
The notes on pages FIN-5 to FIN-14 form part of and are to be read in conjunction with these financial statements.

VITAL HEALTHCARE PROPERTY TRUST INTERIM REPORT AS AT 31 DECEMBER 2016
FIN-3FINANCIAL STATEMENTS
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the period ended 31 December 2016
Units on issue
$000s
Retained
earnings
$000s
Translation
of foreign
operations
$000s
Foreign
exchange
hedges
$000s
Share based
payments
$000s
Total
unitholders'
funds
$000s
For the six months ended
31 December 2016 (Unaudited)
Balance at the start of the period369,220171,617(81,530)58,0956,317523,719
Changes in unitholders' funds166,056---(6,317)159,739
Manager's incentive fee----3,4903,490
Profit for the period-45,524---45,524
Distributions to unitholders-(18,363)---(18,363)
Other comprehensive income for
the period
Movement in foreign currency
translation reserve--(4,547)--(4,547)
Realised foreign exchange gains on
hedges---7,293-7,293
Unrealised foreign exchange gains/
(losses) on hedges---(6,124)-(6,124)
Fair value gains on net investment
hedges---515-515
Balance at the end of the period535,276198,778(86,077)59,7793,490711,246
For the six months ended
31 December 2015 (Unaudited)
Balance at the start of the period362,85382,605(47,682)38,2073,773439,756
Changes in unitholders' funds5,219---(3,773)1,446
Manager's incentive fee----2,2732,273
Profit for the period-58,991---58,991
Distributions to unitholders-(13,865)---(13,865)
Other comprehensive income for
the period
Movement in foreign currency
translation reserve--(25,122)--(25,122)
Realised foreign exchange gains
on hedges---(354)-(354)
Unrealised foreign exchange gains/
(losses) on hedges---9,279-9,279
Fair value gains on net investment
hedges---4,197-4,197
Balance at the end of the period368,072127,731(72,804)51,3292,273476,601
The notes on pages FIN-5 to FIN-14 form part of and are to be read in conjunction with these financial statements.

VITAL HEALTHCARE PROPERTY TRUST INTERIM REPORT AS AT 31 DECEMBER 2016
FIN-4FINANCIAL STATEMENTS
CONSOLIDATED STATEMENT OF CASH FLOWS
For the period ended 31 December 2016
Note
Unaudited
6 months
Dec-16
$000s
Unaudited
6 months
Dec-15
$000s
Cash flows from operating activities
Property income55,92332,432
Recovery of property expenses3,2133,300
Interest received6428
Property expenses(6,298)(4,452)
Management and trustee fees(3,910)(3,316)
Interest paid(6,566)(7,058)
Tax paid(2,839)(2,605)
Other trust expenses(3,452)(1,021)
Net cash provided by/(used in) operating activities36,13517,308
Cash flows from investing activities
Receipts from foreign exchange derivatives11,087109
Loan repayments from tenants-6
Capital additions on investment properties(9,921)(31,098)
Purchase of properties(103,649)(12,642)
Prepaid acquistion costs(51)(1,523)
Tenant incentives(1,088)(418)
Payments for foreign exchange derivatives-(492)
Net cash provided by/(used in) investing activities(103,622)(46,058)
Cash flows from financing activities
Debt drawdown86,50446,816
Issue of units (net of issue costs)156,525-
Repayment of debt(169,356)(3,449)
Loan issue costs-(529)
Costs associated with Distribution Reinvestment Plan(12)(8)
Distributions paid to unitholders(15,643)(12,406)
Net cash from/(used in) financing activities58,01830,424
Net increase/(decrease) in cash and cash equivalents(9,469)1,674
Effect of exchange rate changes on cash and cash equivalents141
Cash and cash equivalents at the beginning of the period12,9801,022
Cash and cash equivalents at the end of the period3,5252,697
The notes on pages FIN-5 to FIN-14 form part of and are to be read in conjunction with these financial statements.

VITAL HEALTHCARE PROPERTY TRUST INTERIM REPORT AS AT 31 DECEMBER 2016
FIN-5FINANCIAL STATEMENTS
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
For the six months ended 31 December 2016
1 GENERAL INFORMATION
Vital Healthcare Property Trust ("VHP" or the "Trust") is a unit trust established under the Unit Trusts Act 1960 by
a Trust Deed dated 11 February 1994 as subsequently amended and replaced, domiciled in New Zealand. The
Trust is managed by Vital Healthcare Management Limited (the Manager). The Manager is a registered managed
investment scheme manager under the Financial Markets Conduct Act.
The condensed consolidated interim financial statements of VHP for the period ended 31 December 2016
comprise VHP and its subsidiaries (together referred to as the Group). VHP is listed on the New Zealand Stock
Exchange (NZX) and is a FMC reporting entity for the purpose of the Financial Markets Conduct Act 2013.
The Trust's principal activity is the investment in health sector related properties.
The condensed consolidated interim financial statements are presented in New Zealand Dollars ($) which is the
Trust's functional and presentation currency. All information has been rounded to the nearest thousand dollars
($000), unless stated otherwise.
These condensed consolidated interim financial statements were approved by the Board of Directors of the
Manager on 23 February 2017.
2 BASIS OF PREPARATION
Statement of compliance
These condensed consolidated interim financial statements have been prepared in accordance with Generally
Accepted Accounting Practice in New Zealand (NZ GAAP), NZ IAS 34 and IAS 34 Interim Financial Reporting. The
accounting policies have been consistently applied, when compared to those used in the 2016 Annual Report. The
2016 Annual Report complies with New Zealand equivalents to International Financial Reporting Standards (NZ
IFRS) and other applicable Financial Reporting Standards issued and effective at the time of preparing those
statements as appropriate for a profit oriented entity.
Basis of measurement
The condensed consolidated interim financial statements have been prepared on the historical cost basis except
for derivative financial instruments and investment properties which are measured at fair value.
Use of estimates and judgements
The preparation of financial statements in conformity with NZ IFRS requires the use of certain critical accounting
estimates and judgements that affect the application of policies and reported amount of assets and liabilities,
income and expenses. The areas involving a higher degree of judgement or complexity, or areas where
assumptions and estimates are significant to the financial statements are as follows:
•
Note 4 - taxation
•
Note 6 - investment property
•
Note 7 - derivative financial instruments
Amendments to NZ IFRS
All standards and amendments effective in the current period have been adopted and have no impact on these
condensed consolidated interim financial statements.

VITAL HEALTHCARE PROPERTY TRUST INTERIM REPORT AS AT 31 DECEMBER 2016
FIN-6FINANCIAL STATEMENTS
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (CONT.)
3 SEGMENT INFORMATION
The principal business activity of the Trust and its subsidiaries is to invest in Health Sector related properties. NZ
IFRS 8 requires operating segments to be identified on the basis of internal reports about components of the
Group that are regularly reviewed by the Board of Directors of the Manager, which is the chief operating decision
maker in order to allocate resources to the segments and to assess their performance.
The information reported to the Group's chief operating decision maker is based on primarily one industry sector,
investing in Health Sector related properties. The Group operates in both Australia and New Zealand.
The following is an analysis of the Group's revenue and results from continuing operations by reportable segment.
Australia
$000s
New Zealand
$000s
Total
$000s
Segment profit for the period ended
31 December 2016 (Unaudited):
Net property income42,9337,88050,813
Other (expense)(3,497)(5,112)(8,609)
Finance income17071
Finance (expense)(2,810)(4,007)(6,817)
36,627(1,169)35,458
Fair value gain/(loss) on interest rate derivatives-8,0808,080
Revaluation gains on investment properties10,3992,70113,100
Receipts under transaction hedging foreign exchange derivatives-959959
Fair value gain on foreign exchange derivatives-(701)(701)
Unrealised gain/(loss) on foreign exchange(3)(1,866)(1,869)
Total segment profit before income tax47,0238,00455,027
Taxation (expense)--(9,503)
Profit for the period--45,524
Segment profit for the period ended
31 December 2015 (Unaudited):
Net property income25,9866,88632,872
Other (expense)(2,679)(3,552)(6,231)
Finance income13334
Finance (expense)(2,884)(4,340)(7,224)
20,424(973)19,451
Fair value gain/(loss) on interest rate derivatives161(144)17
Revaluation gains on investment properties41,6763,51245,188
Receipts under transaction hedging foreign exchange derivatives-109109
Fair value gain on foreign exchange derivatives-863863
Unrealised gain/(loss) on foreign exchange(4)1,3581,354
Total segment profit before income tax62,2574,72566,982
Taxation (expense)--(7,991)
Profit for the period--58,991

VITAL HEALTHCARE PROPERTY TRUST INTERIM REPORT AS AT 31 DECEMBER 2016
FIN-7FINANCIAL STATEMENTS
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (CONT.)
3 SEGMENT INFORMATION (continued)
Net property income consists of revenue generated from external tenants less property operating expenditure.
The Group has two tenants with over 10% of gross property income from rentals totalling $33.7m, all in Australia
(31 December 2015: three tenants totalling $24.8m).
Included in net property income for the six months ended 31 December 2016 is a lease termination receipt of
$13.8m.
Segment profit represents the profit earned by each segment including allocation of identifiable administration
costs, finance costs, revaluation gains/(losses) on investment properties, and gains/(losses) on disposal of
investment properties. This is the measure reported to the chief operating decision maker for the purposes of
resource allocation and assessment of segment performance.
Australia
$000s
New Zealand
$000s
Total
$000s
Segment assets at 31 December 2016 (Unaudited):
Investment properties858,628209,7551,068,383
Other non-current assets290279569
Current assets6,0071,5807,587
Consolidated assets864,925211,6141,076,539
Segment assets at 30 June 2016 (Audited):
Investment properties777,109174,770951,879
Other non-current assets29662358
Current assets3,02722,91025,937
Consolidated assets780,432197,742978,174
Segment liabilities at 31 December 2016 (Unaudited):
Borrowings156,475103,415259,890
Other liabilities73,43731,966105,403
Consolidated liabilities229,912135,381365,293
Segment liabilities at 30 June 2016 (Audited):
Borrowings213,679130,480344,159
Other liabilities69,55340,743110,296
Consolidated liabilities283,232171,223454,455
For the purposes of monitoring segment performance and allocating resources between segments:
•
All assets are allocated to reportable segments
•
All liabilities are allocated to reportable segments

VITAL HEALTHCARE PROPERTY TRUST INTERIM REPORT AS AT 31 DECEMBER 2016
FIN-8FINANCIAL STATEMENTS
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (CONT.)
4 TAXATION
Unaudited
6 months
Dec-16
$000s
Unaudited
6 months
Dec-15
$000s
Profit before tax for the period55,02766,982
Taxation (expense) - 28% on profit before income tax(15,408)(18,755)
Effect of different tax rates in foreign jurisdictions4,5605,536
Tax exempt income7364,901
Foreign tax credits2,9182,471
Tax charges on overseas investments(2,668)(2,341)
Over/(under) provided in prior periods75-
Other adjustments284197
Taxation (expense)(9,503)(7,991)
The taxation (expense) is made up as follows:
Current taxation(4,411)(2,856)
Deferred taxation(5,092)(5,135)
Total taxation (expense)(9,503)(7,991)

VITAL HEALTHCARE PROPERTY TRUST INTERIM REPORT AS AT 31 DECEMBER 2016
FIN-9FINANCIAL STATEMENTS
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (CONT.)
5 EARNINGS PER UNIT
Basic and diluted earnings per unit is calculated by dividing the profit attributable to unitholders of the Trust by the
weighted average number of ordinary units on issue during the period.
Unaudited
Dec-16
Unaudited
Dec-15
Profit attributable to unitholders of the Trust ($000s)45,52458,991
Weighted average number of units on issue (000's of units)414,852343,991
Basic and diluted earnings per unit (cents)10.9717.15

Unaudited
Dec-16
$000's
Unaudited
Dec-15
$000's
Distributable income
Profit before income tax55,02766,982
Revaluation (gains)(13,100)(45,188)
Unrealised foreign exchange (gain)/loss1,869(1,354)
Unrealised foreign exchange (gain)/loss derivatives701(863)
Unrealised interest rate (gain)/loss derivatives(8,080)(17)
Manager's incentive fee3,4902,273
Profit used in calculating gross distributable income39,90721,833
Current tax charge4,4112,856
Profit used in calculating net distributable income35,49618,977
Gross distributable income (cpu) *9.626.35
Net distributable income (cpu) *8.565.52
* Based on weighted average number of units on issue.

VITAL HEALTHCARE PROPERTY TRUST INTERIM REPORT AS AT 31 DECEMBER 2016
FIN-10FINANCIAL STATEMENTS
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (CONT.)
6 INVESTMENT PROPERTIES
Unaudited
Dec-16
$000s
Audited
Jun-16
$000s
Carrying value of investment property at the beginning of the period951,879781,862
Acquisition of properties103,84671,225
Capitalised costs6,67347,667
Capitalised interest costs86428
Net capitalised incentives(376)(191)
Foreign exchange translation difference(6,825)(50,981)
Change in fair value13,100101,869
Carrying value of investment property at the end of the period1,068,383951,879
Carrying value of investment property includes:
Fair value of investment properties1,063,678946,109
Income in advance4,7055,770
Carrying value of investment property at the end of the period1,068,383951,879
Investment Properties Valuation
The Group's policy is for investment property to be measured at fair value for which the Group completes property
valuations at least annually by independent registered valuers. All investment property was valued by independent
registered valuers as at 30 June 2016. The fair value of investment property as at 31 December 2016 was
determined by the Manager, using market data provided by independent valuers and based on independent
valuation advice. This follows recent comparable transactional evidence of market property sale transactions and
a review of leasing activity undertaken in the period.
The Group holds the freehold to all properties except the car parks at the rear of Ascot Hospital and Ascot
Central. The total value of leasehold property at 31 December 2016 was $3.4m (30 June 2016: $3.4m)
representing 0.3% of the total investment property portfolio (30 June 2016: 0.4%). The weighted average lease
length of leasehold property at 31 December 2016 was 2.3 years (30 June 2016: 2.8 years).
Acquisition of properties
During the period, the Group acquired three healthcare properties located in Westmead, New South Wales, Box
Hill, Victoria and Lower Hutt, Wellington. Also acquired were five strategic properties in Australia, situated
adjacent to existing properties for future development. The purchase prices included Australian stamp duty and
other transaction costs.

VITAL HEALTHCARE PROPERTY TRUST INTERIM REPORT AS AT 31 DECEMBER 2016
FIN-11FINANCIAL STATEMENTS
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (CONT.)
7 DERIVATIVE FINANCIAL INSTRUMENTS
Hedge Accounting
The Group is exposed to foreign exchange risk on its net investment in its Australian functional currency
subsidiaries and hedges this risk using Australian denominated borrowings and foreign exchange derivatives.
The Group has designated Australian denominated borrowings and foreign exchange derivatives as hedges of a net
investment in a foreign operation (net investment hedge). The Group prospectively and retrospectively tests the
hedges for effectiveness on a semi-annual basis. The portion of the foreign exchange differences arising on the
hedging instruments determined to be an effective hedge is recognised in other comprehensive income. Any
ineffective portion is recognised in profit or loss.
The face value of hedging instruments designated in net investment hedges is:
Unaudited
Dec-16
$000s
Audited
Jun-16
$000s
Borrowings93,50694,221
Forward exchange contracts (nominal amount)103,896136,097
Interest rate swaps
Interest rate swaps are measured using a valuation model based on the present value of estimated future cash
flows and discounted based on the applicable yield curves derived from observable market interest rates. The
Group has determined the interest rate swaps are Level 2 fair value measurements. The fair value of interest rates
swaps is a liability of $11,638,448.
Foreign exchange derivatives
Foreign exchange derivatives are measured using a valuation model based on the applicable forward price curves
derived from observable forward prices. The Group has determined the foreign exchange derivatives are Level 2
fair value measurements. The fair value of foreign exchange derivatives is an asset of $238,745.
There have been no reclassifications of fair value instruments between levels in the period ended 31 December
2016 and 30 June 2016.
Derivatives are all carried at fair value on the Statement of Financial Position. The carrying amounts of all other
financial instruments approximate their fair value.
Unaudited
Dec-16
$000s
Audited
Jun-16
$000s
Nominal value of foreign exchange contracts - AUD50,000130,000
Nominal value of foreign exchange options - AUD50,000-
Nominal value of foreign exchange options - NZD-100,000

VITAL HEALTHCARE PROPERTY TRUST INTERIM REPORT AS AT 31 DECEMBER 2016
FIN-12FINANCIAL STATEMENTS
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (CONT.)
8 UNITS ON ISSUE
Unaudited
Dec-16
$000s
Audited
Jun-16
$000s
Balance at the beginning of the period369,220362,853
Issue of units under Distribution Reinvestment Plan2,7203,150
Issue of units under Rights Issue159,933-
Issue of units to satisfy Manager's incentive fee6,3173,773
Issue costs of units(2,914)(556)
166,0566,367
Balance at the end of the period535,276369,220
Unaudited
Dec-16
000s
Audited
Jun-16
000s
Reconciliation of number of units
Balance at the beginning of the year345,998342,080
Issue of units under the Distribution Reinvestment Plan1,2912,289
Units issued under Rights Issue76,891-
Units issued to satisfy Manager's incentive fee2,8781,629
Balance at the end of the period427,058345,998
The number of units on issue at 31 December 2016 was 427,057,898 (30 June 2016: 345,997,825). The units have
no par value and are fully paid. Fully paid ordinary units carry one vote per unit and carry the right to distributions.
On 25 July 2016, 76,890,712 units were issued as part of a Rights Issue.
On 22 August 2016, 2,877,727 units were issued against the 2016 Manager's incentive fee of $6,316,611 (30 June
2016: $3,773,133).
Capital risk management
The Group is subject to imposed capital requirements arising from the Trust Deed, which requires the total
borrowings do not exceed 50% of the gross value of the Trust Fund.
The Group's banking covenants require that the aggregate principal amount of the loan outstanding does not
exceed 50%, (30 June 2016: 50%) of the fair market value of property at all times calculated to the Australian
dollar equivalent. All banking covenants have been met during the period.
The Group manages its capital to ensure that entities in the Group will be able to continue as a going concern
while maximising the return to stakeholders through the optimisation of the debt and equity balance. The Group's
policies in respect of capital management and allocation are reviewed regularly by the Board of Directors of the
Manager. There have been no material changes in the Group's overall capital risk management strategy during the
period.

VITAL HEALTHCARE PROPERTY TRUST INTERIM REPORT AS AT 31 DECEMBER 2016
FIN-13FINANCIAL STATEMENTS
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (CONT.)
9 BORROWINGS
Unaudited
Dec-16
$000s
Audited
Jun-16
$000s
AUD denominated loans260,843345,310
Borrowing costs(953)(1,151)
Total borrowings259,890344,159
The Group has a syndicated revolving multi-currency facility with ANZ Bank New Zealand Limited, Australia and
New Zealand Banking Group Limited and Bank of New Zealand. The multi-currency facilities of A$425.0m and NZ
$20.0m are split between: Tranche A: A$125.0m and Tranche B: A$100.0m which are due to expire on 31 March
2019; and Tranche C: A$100.0m, Tranche D: A$100.0m and NZ Dollar Facility: NZ$20.0m which are due to expire
on 31 October 2020.
The effective interest rate on the borrowings as at 31 December 2016 was 4.66% per annum (30 June 2016:
4.38%).
Borrowings are secured by a Security Trust Deed dated 1 April 2003 and as amended and restated on
29 November 2016. The Security Provider comprises T.E.A. Custodians Limited in its capacity as nominee of the
VHP Trustee as supervisor of the Trust and the Trust's subsidiaries. Pursuant to the Deed, a security interest has
been granted of first ranking mortgages over the respective investment properties by a General Security Deed over
the assets and undertakings of Vital Healthcare Property Limited and fixed and floating charges over the assets
and undertakings of Vital Healthcare Australian Property Pty Limited in its capacity as trustee for Vital Healthcare
Australian Property Trust and Vital Healthcare Investment Trust.
10 COMMITMENTS
Unaudited
Dec-16
$000s
Audited
Jun-16
$000s
Capital Commitments
The Group was party to contracts to purchase or construct property for the
following amounts:20,55445,221
Lease Commitments
The property rental income expected to be earned by the Group from its investment property, all of which is
leased out under operating leases, is set out in the table below:
Not later than one year72,36581,256
Later than one year and not later than five years265,210242,059
Later than five years942,407902,882
1,279,9811,226,197
As a condition of listing on the New Zealand Stock Exchange (NZSX), NZSX requires all issuers to provide a bank
bond to NZSX under NZSX/DX Listing Rule 2.6.2. The bank bond required by the Trust for listing on the NZSX is
$50,000.

VITAL HEALTHCARE PROPERTY TRUST INTERIM REPORT AS AT 31 DECEMBER 2016
FIN-14FINANCIAL STATEMENTS
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (CONT.)
11 CONTINGENCIES
There were no contingencies as at 31 December 2016 (30 June 2016: nil).
12 SUBSEQUENT EVENTS
On 23 February 2017 a gross distribution of 2.125 cents per unit was announced by the Trust. The record date for
the distribution is 9 March 2017 and a payment is scheduled to unitholders on 23 March 2017. There will be
0.0914 cents per unit of imputation credits attached to the distribution.
13 RELATED PARTY TRANSACTIONS
The Manager
The Trust is managed by Vital Healthcare Management Limited (the "Manager"). The Manager is a wholly owned
subsidiary of NWI Healthcare Properties LP. The Manager is related to the Trust and its subsidiaries as the
manager of the Trust.
Remuneration of the Manager
The Trust paid management fees to the Manager. The calculation of management fees and incentive fees is
stipulated in the Trust Deed. Management fees have been charged at 0.75% of the monthly average of the gross
value of the assets of the Trust for the quarter ended on the last day of that month. Incentive fees are payable
when there is an average annual increase in the gross value of the assets of the Trust Fund over the relevant
financial year and the two preceding financial years. The incentive fee calculation may give rise to an excess or
deficit to be applied in the calculation of future incentive fees. The incentive fee is 10% of the amount of the
increase with payment being made by way of subscribing for new units. The management and incentive fees shall
not exceed an amount equal to 1.75% per annum of the gross value of the Trust.
Transactions with related parties include:
Unaudited
Dec-16
$000s
Unaudited
Dec-15
$000s
Total fees incurred
Management fees3,7432,891
Manager's incentive fees3,4902,273
Expenses charged by Vital Healthcare Management Limited218191
Expenses charged by Vital Healthcare Australian Property Pty Limited1,290631
8,7415,986
Properties owned by the Trust have been managed by Vital Healthcare Management Limited, a subsidiary of NWI
Healthcare Properties LP. Property management fees charged are either included in property expenses or
capitalised. The amount paid to Vital Healthcare Management Limited for reimbursement of expenses was
$218,108 (31 December 2015: $190,734). The amount not recovered from tenants was nil (31 December 2015: nil).

23
INDEPENDENT REVIEW REPORT
TO THE UNITHOLDERS OF VITAL HEALTHCARE PROPERTY TRUST
We have reviewed the condensed consolidated interim financial statements of Vital Healthcare Property Trust
and its subsidiaries (together referred to as the ‘Trust’) which comprise the statement of financial position as at 31
December 2016, and the statement of comprehensive income, statement of changes in equity and statement of
cash flows for the six month period ended on that date, and a summary of significant accounting policies and other
explanatory information on pages FIN-1 to FIN-14.
This report is made solely to the Trust’s unitholders, as a body. Our review has been undertaken so that we might
state to the Trust’s unitholders those matters we are required to state to them in a review report and for no other
purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the
Trusts’ unitholders as a body, for our engagement, for this report, or for the opinions we have formed.
Manager’s Responsibilities
The Board of Directors of the Manager is responsible for the preparation and fair presentation of the condensed
consolidated interim financial statements, in accordance with NZ IAS 34 Interim Financial Reporting and IAS 34
Interim Financial Reporting and for such internal control as the Board of Directors of the Manager determines
is necessary to enable the preparation and fair presentation of the condensed consolidated interim financial
statements that are free from material misstatement, whether due to fraud or error.

Our Responsibilities
Our responsibility is to express a conclusion on the condensed consolidated interim financial statements based on
our review. We conducted our review in accordance with NZ SRE 2410 Review of Financial Statements Performed by
the Independent Auditor of the Entity (‘NZ SRE 2410’). NZ SRE 2410 requires us to conclude whether anything has
come to our attention that causes us to believe that the condensed consolidated interim financial statements, taken
as a whole, are not prepared, in all material respects, in accordance with NZ IAS 34 Interim Financial Reporting and
IAS 34 Interim Financial Reporting. As the auditor of Vital Healthcare Property Trust, NZ SRE 2410 requires that we
comply with the ethical requirements relevant to the audit of the annual financial statements.
A review of the condensed consolidated interim financial statements in accordance with NZ SRE 2410 is a limited
assurance engagement. The auditor performs procedures, primarily consisting of making enquiries, primarily of
persons responsible for financial and accounting matters, and applying analytical and other review procedures.
The procedures performed in a review are substantially less than those performed in an audit conducted in
accordance with International Standards on Auditing (New Zealand). Accordingly we do not express an audit opinion
on those financial statements.
Other than in our capacity as auditor, we have no relationship with or interests in Vital Healthcare Property Trust or
its subsidiaries or the Manager.
Conclusion
Based on our review, nothing has come to our attention that causes us to believe that the condensed consolidated
interim financial statements of the Trust do not present fairly, in all material respects, the financial position of the
Trust as at 31 December 2016 and its financial performance and cash flows for the 6 month period ended on that
date in accordance with NZ IAS 34 Interim Financial Reporting and IAS 34 Interim Financial Reporting.
Chartered Accountants
AUCKLAND, NEW ZEALAND
23 February 2017

VITAL HEALTHCARE PROPERTY TRUST INTERIM REPORT AS AT 31 DECEMBER 2016
24
DIRECTORY
MANAGER
Vital Healthcare Management Limited
Level 16, AIG Building
41 Shortland Street
PO Box 6945, Wellesley Street
Auckland 1141
Telephone: 0800 225 264
Facsimilie: +64 9 377 2776
Directors of the Manager
Graeme Horsley - Chairman
Andrew Evans
Claire Higgins
Paul Dalla Lana
Bernard Crotty
AUDITOR
Deloitte
Deloitte Centre
80 Queen Street
Private Bag 115-003
Auckland 1140
Telephone: +64 9 303 0700
Facsimilie: +64 9 303 0701
LEGAL ADVISERS TO THE TRUST
Harmos Horton Lusk
Vero Centre
48 Shortland Street
PO Box 28
Auckland 1140
Telephone: +64 9 921 4300
Facsimilie: +64 9 921 4319
Bell Gully
Vero Centre
48 Shortland Street
PO Box 4199
Auckland 1140
Telephone: +64 9 916 8800
Facsimilie: +64 9 916 8801
Ashurst Australia
Level 26
181 William Street
GPO Box 4958
Melbourne, Victoria 3001
Australia
Telephone: +61 3 9679 3000
Facsimilie: +61 3 9679 3111
SUPERVISOR (PREVIOUSLY TRUSTEE)
Trustees Executors Limited
Level 7, 51 Shortland Street
PO Box 4197
Auckland 1140
Telephone: +64 9 308 7100
Facsimilie: +64 9 308 7101
BANKERS TO THE TRUST
ANZ Bank New Zealand Limited
ANZ Centre
23-29 Albert Street
Auckland 1010
Australia and New Zealand Banking Group Limited
27/100 Queen Street
Melbourne, Victoria 3000
Australia
Bank of New Zealand
Deloitte Centre
80 Queen Street
Auckland 1010
UNIT REGISTRAR
Computershare Investor Services Limited
159 Hurstmere Road
Takapuna, Auckland 0622
Private Bag 92119
Auckland 1142
New Zealand
vital@computershare.co.nz
Telephone: +64 9 488 8777
Facsimilie: +64 9 488 8787

WWW.VHPT.CO.NZ