Vital releases Investor Update

INSIDE:
BUILDING A HEALTHY FUTURE
CEO David Carr on a strong interim result
ACQUISITIONS
Scale and diversification in action
DEVELOPMENT PIPELINE
The latest on work within the portfolio
NEW TEAM MEMBER
Vickie Li joins the Vital team in Melbourne
VITAL UPDATE
MARCH 2017

BUILDING A
HEALTHY
FUTURE
DEAR INVESTOR
In this Vital update you will see that we have started
2017 as we finished 2016, with a very strong portfolio
and financial position. This continues to provide the
platform to execute on our scale and diversification
strategy, further enhancing distribution sustainability
and long-term value creation.
Strong interim results
We announced our interim results on 23 February,
which are detailed in the enclosed Interim Report. On
23 March 2017 investors will receive a second-quarter
distribution payment of 2.125 cents per unit with
imputation credits of 0.0914 cpu attached. Interim
result highlights include:
•
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%
•
Market leading weighted average lease term to
expiry (WALE) of 17.6 years providing long-term
income certainty, supported by occupancy at 99.0%
•
Increases on rents reviewed of 1.2%
•
Interim revaluation gain of $13.1m, and Vital’s
weighted average capitalisation rate (WACR)
firming to 6.9%, reflecting portfolio quality,
attractive characteristics of healthcare real estate
and strong investor demand
•
Acquisition of two medical office buildings (MOBs)
in Melbourne and Sydney for A$55m
Scale and diversification
Diversification and flexibility for growth is an important
part of Vital’s plan and since the strongly supported
capital raising in July we have acquired two quality
MOBs. The first of these was Mons Road Medical
Centre in Westmead, Sydney, for A$30.7m and the
second was a majority interest in Ekera Medical
Centre, in Box Hill, Melbourne, for A$24.4m. You can
read more about these two assets in the acquisitions
article in this update.
We have also completed a number of acquisitions of
strategic sites around existing core assets to protect
and enhance the long-term value of these properties
by supporting tenant growth requirements.
Continuing development programme
The brownfield redevelopment programme remains
central to Vital’s scale and diversification strategy. It
underpins earnings sustainability, improves asset
quality and enhances long-term value.
In the period we completed A$18.3m of brownfield
developments at Dubbo Private Hospital in New South
Wales and South Eastern Private Hospital in Victoria.
Please have a look at our website to see photos of the
fantastic new development at South Eastern, along
with great photos of the entire portfolio.
We have a further five development projects underway
and you can read more about these in the development
section in this update.
Outlook
We continue to see demand for healthcare services
and associated infrastructure increase due to
population growth and ageing trends.
With a strong balance sheet we continue to work
through a range of potential opportunities, building on
our defensive growth profile and further strengthening
our focus on sustainable distributions and long-term
value creation.
The Board has re-affirmed its previous distribution
guidance for the year ending 30 June 2017 of 8.5 cents
per unit. I look forward to keeping you updated
throughout the year.
Kind regards
David Carr, Chief Executive Officer

ACQUISITIONS
Since our update in September we
have continued with our scale and
diversification strategy and
acquired two new assets.
Mons Road Medical Centre
Mons Road Medical centre,
located in the Westmead medical
precinct is approximately 26
kilometres west of the Sydney
CBD. Acquired for A$30.7m, Mons
Road was built in 2010 and is a
modern, multi-tenanted, four-
level medical office building.
Mons Road comprises a mix of high
quality healthcare tenants
including Castlereagh Imaging,
one of the largest networks of
radiology practices in NSW, and
IVF Australia, owned by ASX-listed
Virtus Health. Both of these
tenants are new to the Vital
portfolio, diversifying our tenant
mix and establishing new
relationships on which to build.
The Westmead medical precinct is
considered Australia’s largest
health services precinct. It
includes Ramsay Health Care’s
Westmead Private Hospital, the
Westmead Public Hospital,
Westmead Children's Hospital and
Cumberland Public Hospital.
The Westmead precinct is set to
grow further over the medium-
term with the NSW Premier
announcing in September 2015 a
A$900m Westmead Public
Hospital redevelopment funding
package to take place over the next
five years.
Ekera Medical Centre
In November we acquired a
majority interest in Ekera Medical
Centre in the Box Hill suburb of
Melbourne for A$24.4m.
Constructed in 2014, Ekera is a
modern, multi-tenanted four-level
medical office building with
basement parking for 133 cars.
Ekera’s major tenant is Imaging
Associates. Other tenants include
Sonic Healthcare, Monash IVF and
Sportsmed Biologic.
The Box Hill medical precinct
includes the recently redeveloped
Box Hill Public Hospital and Vital’s
own Epworth Eastern Hospital and
Medical Centre. Box Hill is
experiencing significant growth
with a number of large-scale
residential towers being
developed, driving a material
increase in population for the area.
Ekera will support the delivery of
long-term growth options at Vital’s
Epworth Eastern campus.

DIGITAL DEVELOPMENTS
Vital's website
You may have noticed last year that
we made some improvements to
our website. We set out to improve
your experience with better
website functionality and more
regular updates.
New features include videos on the
homepage, more images, easier to
navigate menu options and
quarterly updated portfolio
metrics. This all means that you
can keep up to date with the
portfolio more easily and see for
yourselves our newest acquisitions
and latest developments as they
occur. The site has also been
optimised for mobiles and tablets,
so whatever your preferred way of
getting online, Vital has you
covered.
The website address remains the
same: www.vhpt.co.nz so go and
check it out!
Webcasts
We have also started recording
webcasts of our interim and annual
results. This means that in addition
to being able to see the
presentation and financial
statements online at results time
you can also listen to CEO David
Carr and CFO Stuart Harrison talk
you through them, giving further
context. Head to the news and
publications page on our website
and filter by webcasts to listen to
the most recent ones.
LinkedIn
Also new for Vital is a recently
created LinkedIn page for regular
Vital updates and industry news.
It's a great way to keep up to date
with Vital's activities and we
encourage you to follow us. Just
search for Vital Healthcare
Property Trust on LinkedIn to find
us.

“As technology develops
we are finding new ways
of communicating with
our investors, ensuring
that they are kept up to
date with all of our
activities in the best and
most efficient way
possible.”
David Carr
Chief Executive Officer
“Ekera and Mons Road are both excellent additions to
our portfolio, delivering asset and tenant diversification
to Vital.”
David Carr, Chief Executive Officer
MONS ROAD MEDICAL CENTRE
A$30.7M
EKERA MEDICAL CENTRE
A$24.4M
TOTAL INVESTMENT PROPERTIES
32
> MONS ROAD MEDICAL CENTRE

DEVELOPMENT PIPELINE
Completed developments
Late last year we completed two developments. First
was the A$3.7m project at Dubbo Private Hospital in
New South Wales, which has expanded capacity to
core services and modernised the property. Second
was the A$14.5m development at South Eastern
Private Hospital in Victoria. South Eastern is located
around 26 kilometres south-west of Melbourne’s CBD
and this development has resulted in a brand new unit
with 60 mental health beds and 79 car parks. As you
can see from the photo below this is a high quality
asset. Head to our website to see more images.
Currently in development
The newest project to the pipeline is a A$6.3m
development at Palm Beach Currumbin Clinic in
Queensland. Palm Beach is a 104-bed hospital and
has a catchment area that extends into New South
Wales.
“The project at South Eastern has
created real value and is a great
addition to the hospital.”
Mark Norman
National Development Manager
The new development project at Palm Beach will
result in the relocation of consulting to new suites and
the conversion of all double rooms to single rooms. It
is forecast to be completed by October 2017.
Check out the pipeline below for a reminder of the
other projects we have in progress.
DEVELOPMENT PIPELINE
LINGARD A$23.8m
MAITLAND (STAGE 1) A$13.6m
TORONTO A$9.4m
PALM BEACH A$6.3m
SPORTSMED CONSULTING A$9.5m
Certain projects remain subject to Development Approvals
2016
JULJULJULAUGAUGAUGSEPSEPSEPOCTOCTOCTNOVNOVNOVDECDECDECJANJANFEBFEBMARMARAPRAPRMAYMAYJUNJUN
2017
2018
> SOUTH EASTERN PRIVATE HOSPITAL

TEAM PROFILE:
VICKIE LI
Vickie Li recently joined our Australian-based team
in Melbourne as a Property Accountant.
As part of this busy role Vickie is involved with
accounts payable, accounts receivable and
accounting for tenant transactions. She also speaks
regularly with tenants regarding any questions they
may have.
Before joining our team, Vickie was a company
accountant at RPM Real Estate Group and has six
years’ experience in the real estate industry. Vickie
is a Certified Practising Accountant with CPA
Australia and has a Master of Finance from
Melbourne University.
“I find the property industry
fascinating and this move into
healthcare property is a new
and exciting chapter for me.”
Vickie has a young family and outside of work enjoys
visiting farms, zoos and parks with her children,
travelling in Australia and having a good old Aussie
barbeque with friends.
> VICKIE LI
> CLAIRE HIGGINS
2016 ANNUAL
MEETING
The Trust’s Annual Meeting was held on
10 November 2016 at Auckland’s Pullman Hotel.
Thank you to all who attended.
Just one resolution was presented at the meeting.
Unitholders voted by 99.95% in favour of
reappointing Claire Higgins as Independent
Director.
We’ve added the Chairman and CEO presentations
to the website, so if you weren’t able to attend the
meeting, you can bring yourself up to speed. Go to
www.vhpt.co.nz, select ‘News & publications’ and
then filter by 'Presentations' and '2016'. You will
then see the ‘2016 Annual Meeting Presentation’.

PORTFOLIO
METRICS
As at 31 December 2016
NUMBER OF PROPERTIES
32
OCCUPANCY
99.0%
WALE
17.6YEARS
Weighted Average Lease Term to expiry (WALE)
Leading the market with a WALE that far exceeds
the sector average
Years
15.1
17.1
18.4
17.6
6.6
Jun-14Jun-15Jun-16Dec-16Sector avg*
0
5
10
15
20
*Source: Forsyth Barr Real Estate Reflections December 2016.
NZ listed property excluding VHP.
Portfolio geographic composition
Well diversified by geography
New South Wales 34%
Victoria 22%
Auckland 14%
Queensland 13%
NZ ex-Auckland 6%
Western Australia 5%
South Australia 4%
Tasmania 2%
Ten-year total return performance
Well-executed strategy providing long-term
value for investors
Index rebased to 100
S&P/ASX 200 REIT IndexS&P/NZX All Real Estate Gross
VHPS&P/NZX 50 Index Gross
20082010201220142016
0
100
200
300
400
Source: Craigs Investment Partners as at 31 December 2016
Ten-year lease expiry profile
Average lease expiry per annum over the next
ten years of 2.0%
Lease expiry by income (%)
0.7
1.6
5.5
4.7
1.2
0.4
1.2
1.1
3.5
0.0
0.2
0.3
2.0
1.4
0.4
0.1
0.6
1.0
1.6
0.0
Total expiryLargest single expiry
Jun 17 Jun 18 Jun 19 Jun 20 Jun 21 Jun 22 Jun 23 Jun 24 Jun 25 Jun 26
0
2
4
6
8
10
12

Keep up to date with all Vital events and information at
www.vhpt.co.nz
The Trust's financial year is 1 July to 30 June. Our calendar below shows
events, publication dates and distribution dates for the next six months. This
is updated regularly on our website as some dates are subject to change.
Quarter two distribution payment23 March 2017
Quarter three distribution paymentJune 2017
Annual result announcementAugust 2017
Contacts
ManagerUnit Registrar
Vital Healthcare
Management Limited
Level 16, AIG Building
41 Shortland Street
Auckland 1010
PO Box 6945
Wellesley Street
Auckland 1141
New Zealand
T 0800 225 264
F +64 9 377 2776
E enquiry@vhpt.co.nz
W www.vhpt.co.nz
Computershare Investor
Services Limited
159 Hurstmere Road, Takapuna
Auckland 0622
Private Bag 92119, Auckland 1142
New Zealand
Managing your unitholding online
To change your address, update your
payment instructions and to view your
investment portfolio including
transactions, please visit:
www.computershare.co.nz/investorcentre
vital@computershare.co.nz
T +64 9 488 8777
F +64 9 488 8787
Please assist our registrar
by quoting your CSN
or shareholder number.
This newsletter is for information purposes only. Its content is intended to be of a general nature, does not take into account your
financial situation or goals and is not a personalised financial adviser service under the Financial Advisers Act 2008. It is recommended
that you seek advice from a financial adviser which takes into account your individual circumstances before you acquire a financial
product. No part of this publication may be reproduced without prior written permission of Vital Healthcare Management Limited.