Vital first quarter update

VITAL FIRST
QUARTER UPDATE
09 NOVEMBER 2017
Vital unitholders will receive a first quarter distribution of 2.125 cpu (cents per unit) with 0.1566 cpu of imputation
credits. The record date is 4 December 2017 and payment will be made on 18 December 2017. Vital’s Distribution
Reinvestment Plan (DRP) will remain available to investors for this distribution, with a 1% discount being applied
when determining the strike price.
Distribution
Payment date18 December 2017
Cash distribution per unit2.125 cpu
Excluded distribution per unit1.7223 cpu
Fully imputed distribution per unit0.4027 cpu
Imputation credits0.1566 cpu
DRP availableYes
DRP discount1%
> The Hills Clinic, NSW, Australia

Consolidated Statement of Comprehensive Income
For the period ended 30 September 2017
Unaudited
3 months
Sep-17
$000s
Unaudited
3 months
Sep-16
$000s
Gross property income from rentals22,06018,854
Gross property income from expense recoveries2,4681,770
Property expenses(3,687)(2,200)
Net property income20,84118,424
Other expenses6,0264,034
Profit before finance income/(expense) and other gains/(losses)14,81514,390
Finance income/(expense)
Finance income2458
Finance expense(4,772)(3,300)
Fair value gain/(loss) on interest rate derivatives1,927(676)
(2,821)(3,918)
Other gains/(losses)
Revaluation gain/(loss) on investment property8,7395,551
Receipts under transaction hedging foreign exchange contracts-379
Fair value gain/(loss) on foreign exchange derivatives(2,397)(715)
Unrealised gain/(loss) on foreign exchange(1,373)(546)
4,9694,669
Profit before income tax16,96315,141
Taxation expense(2,928)(2,493)
Profit for the year attributable to unitholders of the Trust14,03512,648
Other comprehensive income
Items that may be reclassified subsequently to profit and loss:
Movement in foreign currency translation reserve25,7931,992
Realised foreign exchange gains/(losses) on hedges1,63810,129
Current taxation (expense)/credit(459)(2,836)
Unrealised foreign exchange gains/(losses) on hedges(1,866)(9,032)
Deferred taxation (expense)/credit5222,529
Fair value gain/(loss) on net investment hedges(3,306)(356)
Deferred taxation (expense)/credit926100
Total other comprehensive income/(loss) after tax23,2482,526
Total comprehensive income after tax37,28315,174
Earnings per unit
Basic and diluted earnings per unit (cents)3.263.14

Consolidated Statement of Financial Position
For the period ended 30 Sptember 2017
Unaudited
Sep-17
$000s
Audited
Jun-17
$000s
Non-current assets
Investment properties1,468,6451,376,243
Derivative financial instruments2,2031,499
Other non-current assets330327
Total non-current assets1,471,1781,378,069
Current assets
Cash and cash equivalents4,7873,352
Trade and other receivables3,320367
Other current assets7,0667,886
Derivative financial instruments4552,554
Total current assets15,62814,159
Total assets1,486,8061,392,228
Unitholders' funds
Units on issue552,368538,469
Reserves2,231(11,295)
Retained earnings357,428352,647
Total unitholders' funds912,027879,821
Non-current liabilities
Borrowings459,506401,879
Income in advance1,0081,541
Derivative financial instruments10,96612,142
Deferred tax73,82271,719
Total non-current liabilities545,302487,281
Current liabilities
Trade and other payables10,19111,537
Income in advance2,4872,407
Derivative financial instruments2,21497
Taxation payable14,58511,085
Total current liabilities29,47725,126
Total liabilities574,779512,407
Total unitholders' funds and liabilities1,486,8061,392,228

Same property net operating income
For the nine months ended 30 September 2017
Unaudited
Sep-17
$000s
Unaudited
Sep-16
$000s
Variance
$000s
Same property revenue from investment properties21,28420,624660
Same property operating costs(3,007)(2,200)(807)
18,27718,424(147)
Acquisitions2,56402,564
Net operating income20,84118,4242,417
Investment properties
$000s
Balance - 30 June 20171,376,243
Acquisitions37,259
Development spend6,829
Fair value adjustment8,739
Foreign exchange translation difference39,575
Balance - 30 September 20171,468,645
Development progress
DevelopmentDevelopment work being undertaken
Development
cost
(A$m)
Spend
to date
(A$m)
Forecast
completion
date
Lingard Private (NSW)
Three additional operating theatres, 26 surgical beds and a
hydrotherapy pool. 57 car parks will be developed on an
adjacent site.
23.84.5Jun-18
Toronto Private (NSW)
Ten new mental health beds, ten new rehabilitation beds, a
new gym, group therapy rooms and 36 new car parks.
9.46.2Apr-18
Palm Beach Currumbin (QLD)
Relocation of consulting to new suites above front carpark
and conversion of some double rooms to singles.
6.35.9Oct-17
North West (TAS)New consulting suites and medical records1.00.3Nov-17
Total40.516.9

PORTFOLIO
METRICS
As at 30 September 2017
PORTFOLIO VALUE
$1.47BN
WALE
17.7YEARS
NUMBER OF PROPERTIES
38
OCCUPANCY
99.3%
FY18 DISTRIBUTION GUIDANCE
8.5CENTS PER UNIT
NET TANGIBLE ASSETS
$2.10PER UNIT
Tenant composition
For profit hospitals anchor the portfolio
For profit hospital 60%
Medical specialist 16%
Not for profit hospital 15%
Aged care 7%
Other 2%
Government 1%
Portfolio geographic composition
Well diversified by geography
New South Wales 36%
Victoria 21%
Queensland 12%
Auckland 14%
Western Australia 6%
NZ ex-Auckland 5%
South Australia 4%
Tasmania 1%
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 30 September 2017
Ten-year lease expiry profile
Average lease expiry per annum over the next
ten years of 2.0%
Lease expiry by income (%)
1.41.4
5.45.4
4.44.4
1.21.2
0.30.3
1.11.1
2.72.7
3.33.3
00
0.20.20.20.2
1.81.8
1.21.2
0.30.3
0.10.1
0.50.5
1.51.5
1.41.4
00
0.20.2
Total expiryLargest single expiry
Jun 18 Jun 19 Jun 20 Jun 21 Jun 22 Jun 23 Jun 24 Jun 25 Jun 26 Jun 27
0
2
4
6
8
10
12