Vital releases 2018 Interim Report

INTERIM REPORT
AS AT 31 DECEMBER 2017
INVESTING IN AUSTRALASIA'S HEALTHCARE INFRASTRUCTURE

Vital is commited to working with
our operating partners and their
patients to achieve positive
healthcare outcomes.

CONTENTS
2
CHAIRMAN AND CEO’S REPORT
9FINANCIAL STATEMENTS
24INDEPENDENT AUDITORS REPORT
25DIRECTORY

VALUE OF PORTFOLIO
$1.67BN
TOTAL RETURN FOR THE 12 MONTHS TO
31 DECEMBER 2017
13.73%
GROSS RENTAL INCOME* GROWTH OF
17.9% TO
$44.8M
NET DISTRIBUTABLE INCOME OF

$22.8M
NET TANGIBLE ASSET (NTA) UPLIFT OF 13
CENTS PER UNIT OR 6.5% TO
$2.19
OPERATING PROFIT* BEFORE TAX OF
$30.4M UP
3.5%
PORTFOLIO WEIGHTED AVERAGE CAP
RATE FIRMED 17 BASIS POINTS TO
5.85%
* 1H17 adjusted for $13.8m lease termination receipt received in October 2016 and associated
tax implications

VITAL HEALTHCARE PROPERTY TRUST INTERIM REPORT AS AT 31 DECEMBER 2017
2CHAIRMAN AND CEO’S REPORT
STRONG
INTERIM RESULT
Vital confirmed a second quarter cash distribution
of 2.125 cents per unit.
Highlights
•
Portfolio lease term increased to 18.6 years (from
17.7 years at 30 June 2017) while retaining high
occupancy levels at 99.3%
•
Same property NOI increased 3.5% over the prior
year period
•
Net Distributable Income of $22.8m or 5.26c per
unit
•
AFFO per unit of 5.40c, generating a sector leading
payout ratio of approximately 79%
•
Portfolio yield firmed to 5.85% (from 6.03% at
30 June 2017), generating an interim gain of $42.8m
•
NTA per unit of $2.19, up 7% from 30 June 2017
•
Finance costs declined 57bps to 4.09%, balance
sheet deployed with gearing now at 36.8%
•
Acquisition of Acurity New Zealand Hospital
portfolio, Eden Rehabilitation Hospital and The Hills
Clinic in Australia for NZ$187m
•
Development pipeline (6 projects) of approximately
NZ$144m over the next four years.
•
Management integration further strengthening
market leading Australasian healthcare platform
David Carr, Chief Executive of Vital’s Manager
NorthWest Healthcare Properties Management
Limited, said, “Aligning with our core strategy, many of
Vital’s recent acquisitions have been ‘off-market’ sale
and leaseback investments. These opportunities enable
Vital to work closely with our partners and be
thoughtful about lease terms in order to deliver
exceptional long term outcomes. Many of these
investments include attractive future development
opportunities where we continue to support our
partners with long-term capital, backed by undeniable
demographic and healthcare demand trends.
Notwithstanding a busy period looking at new
opportunities the team continues to ensure that the
core portfolio remains in great shape. Over the six
months we extended our market leading portfolio lease
term from 17.7 years to 18.6 years and continued to
maintain portfolio occupancy over 99%.
Following years of strong performance and its unique
investment characteristics, healthcare real estate
yields continue to compress, supported new investors
by growing local and global demand. Vital’s revaluation
gains have been a consistent driver of NTA growth over
recent years, under-pinning unit price performance.
We retain a positive outlook and we remain excited
about a range of asset management initiatives and
potential opportunities over the remainder of 2018,”
said Mr Carr.
Management integration
In January 2018, Vital’s management company
announced the integration of its Australian and New
Zealand management platforms. Effective today, Vital’s
manager will transition to its new name, NorthWest
Healthcare Properties Management Limited from Vital
Healthcare Management Limited. Vital Healthcare
Property Trust’s name will not change, nor will its NZX
ticker symbol “VHP”.
David Carr and Stuart Harrison will continue as Chief
Executive Officer and Chief Financial Officer,
respectively. There is no change to Vital’s well defined
strategy, remaining absolutely focused on healthcare
real estate investment with a continued focus on
distribution sustainability and long-term value creation.
Vital unitholders will benefit from a larger team
working on their behalf, in both New Zealand and
Australia, strengthening and broadening key

VITAL HEALTHCARE PROPERTY TRUST INTERIM REPORT AS AT 31 DECEMBER 2017
3CHAIRMAN AND CEO’S REPORT
relationships as Australasia’s preeminent healthcare
management platform.
Interim valuations and portfolio activity
In order to assess whether any valuation change has
occurred for the half year to 31 December 2017, the
incumbent independent valuers from 30 June 2017
were commissioned to provide external desktop
reviews. As a result, Vital recorded an increase of
$42.8m in the fair value of its portfolio to $1.67bn, or
2.9% over carrying book value. The increase is over and
above acquisitions and development expenditure
incurred in the period.
Vital’s WACR for the six months to 31 December 2017
firmed approximately 17 bps to 5.85%. The Australian
portfolio reported a 16 bps firming in capitalisation rate
to 5.85% and the New Zealand portfolio firmed 14 bps
to 5.86%. 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’s WALE increased to 18.6 years (from 17.7 years)
primarily reflecting the recent acquisition of the Acurity
portfolio with initial lease terms of 30 years. The long
WALE and consistently high occupancy levels of above
99% 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 31 rent reviews (approximately 22% of total
income) were completed to 31 December 2017,
resulting in rent growth of 1.1%. With around 45% of
Vital’s total income remaining subject to review to
30 June 2018, we expect these reviews will contribute
to forecast income growth over the period
approximately in line with inflation.
With a relatively benign lease expiry profile at the start
of FY18 representing 1.7% of total income (22 leases),
approximately half of these renewals or expiries are
now completed, with a 100% retention rate. We look to
resolve the remaining expiries over the next six months
with a high expectation of renewal and we also
continue to proactively focus on expiries beyond 2018.
Financial performance
Gross rental income grew 17.9% during the period after
adjusting for a one-off lease termination receipt of
$13.8m relating to two Gold Coast properties in the
prior year. After property expenses, net income grew
16.6%.
All NZ$m (unless otherwise stated)
Actual
1H18Normalised 1H17
1
Change $m
Change
%
Gross rental income ($m)44.838.06.817.9
Net rental income ($m)43.237.06.216.6
Total expenses12.87.75.167.2
Operating profit before tax ($m)30.429.31.03.5
Gross distributable income ($m)25.726.1(0.4)(1.6)
Current Tax - NZ & Australia ($m)2.92.30.623.6
Net distributable income ($m)22.823.8(1.0)(4.1)
Net distributable income per unit (earned) (cpu)5.3c5.7c-0.5c(8.0)
AFFO (cpu)5.4c5.8c-0.4c(6.7)
Net distributable income payout ratio81%74%
Units on issue (weighted average million)432.8414.9
1 Adjusted for $13.8m lease termination receipt received in October 2016 and associated tax implications

VITAL HEALTHCARE PROPERTY TRUST INTERIM REPORT AS AT 31 DECEMBER 2017
4CHAIRMAN AND CEO’S REPORT
GRAEME HORSLEY
CHAIRMAN & INDEPENDENT DIRECTOR
“We continue to drive forward
our scale and diversification
strategy. Over the balance of
the year we look to deliver on
value-add opportunities, further
enhancing the quality of our
earnings, underpinning
distribution sustainability
.
”
DAVID CARR

VITAL HEALTHCARE PROPERTY TRUST INTERIM REPORT AS AT 31 DECEMBER 2017
5CHAIRMAN AND CEO’S REPORT
This strong operating result was driven by same-
property income performance of 8.6% and over NZ
$410m of acquisitions and approximately NZ$40m of
developments over the last 24 months.
Finance expense of $10.5m was up 55% from the prior
year owing to higher overall debt levels during the last
12 months. This reflects significant acquisition and
development activity following the pay down facilities
on the back of the July 2016 capital raise.
Other expenses increased to $12.8m primarily the
result of an accrual provision for a manager incentive
fee of $5.8m ($3.5m in 1H17) along with base
management fees increasing to $5.6m ($3.7m in 1H17)
due to the higher asset base over the previous period.
The incentive fee provision is calculated in accordance
with the Trust Deed and based on the average increase
in the value of the Trust’s assets over book value for
the last three years, and does not crystallise until the
end of the financial year following completion of the
30 June 2018 year-end independent asset valuations.
Net distributable income for the period was $22.8m
equating to 5.26 cpu. Adjusting for income related to a
one-off lease termination and rental reversion on re-
leasing at two Gold Coast properties, net distributable
income per unit for the period increased 3.5% from the
prior year. AFFO, which adjusts for maintenance capital
expenditure and lease incentives, was broadly in line
with net distributable income on a per unit basis.
For the 6 months to 31 December 2017, Vital’s AFFO
payout ratio reflected a prudent and sustainable 79%.
Treasury and capital management
Vital’s loan-to-value ratio (LVR) was 36.8% at
31 December 2017, up from 24.4% the same time last
year. It remains well below bank and Trust Deed
covenants of 50%. Accordingly, the Trust maintains an
appropriate level of flexibility to finance announced
development commitments over the next four years.
Partially offsetting the increased finance expense due
to higher gearing was a 57bps decrease in Vital’s
weighted average cost of debt to 4.09% (including bank
line and margin fees) compared to the prior year.
At year end Vital had a hedged interest rate position of
51.9% with a 5.76 year average duration.
Acquisitions
Vital acquired five properties in the first half of the year
for a total cost of NZ$187m.
In July 2017, Vital closed on the acquisition of The Hills
Clinic in Kellyville, NSW, 40km north-west of the
Sydney CBD for A$30.3m. The Hills is a two-storied
purpose-built mental health hospital leased to Healthe
Care, Australia’s third largest corporate private hospital
operator and pan-Asian healthcare services group, on a
30-year lease.
In December 2017, Vital acquired Eden Rehabilitation
Hospital in Cooroy, Queensland for A$23.8m. Eden is a
private rehabilitation hospital leased to Healthe Care
Australia for 20 years, with future brownfield potential.
Bowen Hospital, acquired
from operator Acurity
Health Group, provides new
partnership opportunities.

VITAL HEALTHCARE PROPERTY TRUST INTERIM REPORT AS AT 31 DECEMBER 2017
6CHAIRMAN AND CEO’S REPORT
Also in December 2017, Vital received OIO approval to
acquire the previously announced Wakefield and Bowen
Hospitals in Wellington and acquired a third asset from
Acurity Health Group, Royston Hospital in Hastings, for
NZ$122m. Vital has also committed to fund up to NZ
$106.5m of brownfield development at the three
hospitals over the next four years.
Development activity update
In the first half of the year, Vital completed brownfield
developments at Sportsmed Consulting in Adelaide,
Maitland Private Hospital in NSW and the Palm Beach
Currumbin Clinic in Queensland representing
approximately A$20m of spending over the life of these
projects.
Three further development projects, totalling
approximately A$34m remain in various stages of
development. The projects will facilitate expansion of
healthcare services including additional operating
theatres, ward expansions and new consulting suites to
meet increased demand for services. These three
projects are forecast for completion between April and
June 2018, with approximately A$21m in costs to
complete.
The longer term brownfield development programme,
which totals approximately NZ$144m including the
aforementioned projects under construction and
planned works in the Acurity portfolio, remains a core
part of Vital’s scale and diversification strategy. It will
continue to underpin earnings sustainability, improve
asset quality and enhance long-term value.
Distributions
The Board confirmed that investors will receive a
second quarter distribution of 2.125 cents per unit with
0.1543 cpu of imputation credits attached. The record
date is 15 March 2018 and payment will be made on
29 March 2018. Vital’s Distribution Reinvestment Plan
remains available to investors for this distribution with
a 1.0% discount being applied when determining the
strike price.
The Board has also reconfirmed its full year guidance
for a cash distribution of 8.5 cents per unit.
All NZ$m (unless otherwise stated)
Actual
1H18
Actual
FY17
Change
$m
Change
%
Net tangible assets ($ per unit)2.192.056.54
Investment properties ($m)1,670.81,376.2294.621.4
Total assets ($m)1,687.41,392.2295.221.2
Bank debt ($m)613.6401.9
Unitholders funds ($m)952.3879.872.58.2
Units on issue (m)435.4428.66.81.6
Weighted average cost of debt (%)4.094.34
LVR (%)36.829.3

VITAL HEALTHCARE PROPERTY TRUST INTERIM REPORT AS AT 31 DECEMBER 2017
7CHAIRMAN AND CEO’S REPORT
Outlook
Mr Carr said “With a solid foundation and a defensive
and resilient portfolio position, we look forward to the
continued execution of our disciplined scale and
diversification strategy.
Irrespective of periodic political or regulatory
interference in an otherwise entrenched healthcare
systems in New Zealand and Australia, we continue to
see strong demographic, aging and technological
trends driving demand for healthcare services –
delivered from quality healthcare infrastructure. Vital is
at the forefront of this structural growth opportunity
with the most experienced healthcare real estate
management team in Australasia and the reputation as
a preferred healthcare real estate capital partner, we
are well placed for the future”.
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

VITAL HEALTHCARE PROPERTY TRUST INTERIM REPORT AS AT 31 DECEMBER 2017
8CHAIRMAN AND CEO’S REPORT

VITAL HEALTHCARE PROPERTY TRUST INTERIM REPORT AS AT 31 DECEMBER 2017
0FINANCIAL STATEMENTS
FINANCIAL
STATEMENTS
FOR THE PERIOD
ENDED
31 DECEMBER
2017

VITAL HEALTHCARE PROPERTY TRUST INTERIM REPORT AS AT 31 DECEMBER 2017
FIN-1FINANCIAL STATEMENTS
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the period ended 31 December 2017
Note
Unaudited
6 months
Dec-17
$000s
Unaudited
6 months
Dec-16
$000s
Gross property income from rentals44,75251,775
Gross property income from expense recoveries5,1833,353
Property expenses(6,782)(4,315)
Net property income343,15350,813
Other income/(expenses)(12,794)(7,650)
Finance income5771
Finance expense(10,540)(6,817)
Operating Profit19,87636,417
Other gains/(losses)
Revaluation gain/(loss) on investment property642,77413,100
Fair value gain/(loss) on foreign exchange derivatives(284)(701)
Fair value gain/(loss) on interest rate derivatives1168,080
Unrealised gain/(loss) on foreign exchange(1,366)(1,869)
41,24018,610
Profit before income tax61,11655,027
Taxation expense4(8,236)(9,503)
Profit for the period attributable to unitholders of the Trust52,88045,524
Other comprehensive income
Items that may be reclassified subsequently to profit and loss:
Movement in foreign currency translation reserve34,020(4,547)
Realised foreign exchange gains/(losses) on hedges1,63410,129
Current taxation (expense)/credit(458)(2,836)
Unrealised foreign exchange gains/(losses) on hedges(3,656)(8,505)
Deferred taxation (expense)/credit1,0242,381
Fair value gain/(loss) on net investment hedges(4,445)715
Deferred taxation (expense)/credit1,244(200)
Total other comprehensive income/(loss) after tax29,363(2,863)
Total comprehensive income after tax82,24342,661
Earnings per unit
Basic and diluted earnings per unit (cents)512.2210.97
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 2017
FIN-2FINANCIAL STATEMENTS
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
As at 31 December 2017
Note
Unaudited
Dec-17
$000s
Audited
Jun-17
$000s
Non-current assets
Investment properties61,670,8461,376,243
Derivative financial instruments71,0751,499
Other non-current assets326327
Total non-current assets1,672,2471,378,069
Current assets
Cash and cash equivalents10,4533,352
Trade and other receivables1,368367
Other current assets2,2427,886
Derivative financial instruments71,0992,554
Total current assets15,16214,159
Total assets1,687,4091,392,228
Unitholders' funds
Units on issue8553,824538,469
Reserves11,557(11,295)
Retained earnings386,933352,647
Total unitholders' funds952,314879,821
Non-current liabilities
Borrowings9613,588401,879
Income in advance1,1361,541
Derivative financial instruments711,54312,142
Deferred tax77,88071,719
Total non-current liabilities704,147487,281
Current liabilities
Trade and other payables9,70211,537
Income in advance3,1142,407
Derivative financial instruments72,64097
Taxation payable15,49211,085
Total current liabilities30,94825,126
Total liabilities735,095512,407
Total unitholders' funds and liabilities1,687,4091,392,228
For and on behalf of the Manager, Vital Healthcare Management Limited
G. Horsley, ChairmanC. Higgins, Director
27 February 2018
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 2017
FIN-3FINANCIAL STATEMENTS
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the period ended 31 December 2017
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 2017 (Unaudited)
Balance at the start of the period538,469352,647(83,713)60,10412,314879,821
Changes in unitholders' funds15,355---(12,314)3,041
Manager's incentive fee----5,8035,803
Profit for the period-52,880---52,880
Distributions to unitholders-(18,594)---(18,594)
Other comprehensive income for
the period
Movement in foreign currency
translation reserve--34,020--34,020
Realised foreign exchange gains on
hedges---1,176-1,176
Unrealised foreign exchange gains/
(losses) on hedges---(2,632)-(2,632)
Fair value losses on net investment
hedges---(3,201)-(3,201)
Balance at the end of the period553,824386,933(49,693)55,4475,803952,314
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 2017
FIN-4FINANCIAL STATEMENTS
CONSOLIDATED STATEMENT OF CASH FLOWS
For the period ended 31 December 2017
Note
Unaudited
6 months
Dec-17
$000s
Unaudited
6 months
Dec-16
$000s
Cash flows from operating activities
Property income44,94255,923
Recovery of property expenses4,3083,213
Interest received4364
Property expenses(6,167)(6,298)
Management and trustee fees(5,575)(3,910)
Interest paid(9,620)(6,566)
Tax (paid)/refund755(2,839)
Other trust expenses(1,014)(3,452)
Net cash provided by/(used in) operating activities27,67236,135
Cash flows from investing activities
Receipts from foreign exchange derivatives1,63411,087
Capital additions on investment properties(9,801)(9,921)
Purchase of properties(182,510)(103,649)
Prepaid acquistion costs(1,003)(51)
Tenant incentives(2,314)(1,088)
Payments for foreign exchange derivatives(171)-
Net cash provided by/(used in) investing activities(194,165)(103,622)
Cash flows from financing activities
Debt drawdown189,16886,504
Issue of units (net of issue costs)-156,525
Repayment of debt-(169,356)
Costs associated with Distribution Reinvestment Plan(14)(12)
Distributions paid to unitholders(15,553)(15,643)
Net cash from/(used in) financing activities173,60158,018
Net increase/(decrease) in cash and cash equivalents7,108(9,469)
Effect of exchange rate changes on cash and cash equivalents(7)14
Cash and cash equivalents at the beginning of the period3,35212,980
Cash and cash equivalents at the end of the period10,4533,525
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 2017
FIN-5FINANCIAL STATEMENTS
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
For the six months ended 31 December 2017
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 2017
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 27 February 2018.
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 2017 Annual Report. The
2017 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.
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 - valuation of investment property
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 2017
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 2017 (Unaudited):
Net property income34,4378,71643,153
Other expense(5,004)(7,790)(12,794)
Net finance expense(5,548)(4,935)(10,483)
23,885(4,009)19,876
Fair value gain/(loss) on interest rate derivatives-116116
Revaluation gains on investment properties37,8074,96742,774
Other foreign exchange gains/(losses)-(1,650)(1,650)
Total segment profit before income tax61,692(576)61,116
Taxation (expense)--(8,236)
Profit for the period--52,880
Segment profit for the period ended
31 December 2016 (Unaudited):
Net property income42,9337,88050,813
Other expense(3,497)(4,153)(7,650)
Net finance expense(2,809)(3,937)(6,746)
36,627(210)36,417
Fair value gain/(loss) on interest rate derivatives-8,0808,080
Revaluation gains on investment properties10,3992,70113,100
Other foreign exchange gains/(losses)(3)(2,567)(2,570)
Total segment profit before income tax47,0238,00455,027
Taxation (expense)--(9,503)
Profit for the period--45,524

VITAL HEALTHCARE PROPERTY TRUST INTERIM REPORT AS AT 31 DECEMBER 2017
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 $25.4m, all in Australia
(31 December 2016: two tenants totalling $33.7m).
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 2017 (Unaudited):
Investment properties1,275,012395,8341,670,846
Other non-current assets2931,1081,401
Current assets7,0758,08715,162
Consolidated assets1,282,380405,0291,687,409
Segment assets at 30 June 2017 (Audited):
Investment properties1,110,530265,7131,376,243
Other non-current assets2861,5401,826
Current assets4,8139,34614,159
Consolidated assets1,115,629276,5991,392,228
Segment liabilities at 31 December 2017 (Unaudited):
Borrowings476,303137,285613,588
Other liabilities90,04231,465121,507
Consolidated liabilities566,345168,750735,095
Segment liabilities at 30 June 2017 (Audited):
Borrowings270,855131,024401,879
Other liabilities77,90732,621110,528
Consolidated liabilities348,762163,645512,407
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 2017
FIN-8FINANCIAL STATEMENTS
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (CONT.)
4 TAXATION
Unaudited
6 months
Dec-17
$000s
Unaudited
6 months
Dec-16
$000s
Profit before tax for the period61,11655,027
Taxation expense - 28% on profit before income tax(17,113)(15,408)
Effect of different tax rates in foreign jurisdictions8,0204,560
Tax exempt income1,796736
Foreign tax credits1,7632,918
Tax charges on overseas investments(4,279)(2,668)
Over/(under) provided in prior periods1,26375
Other adjustments314284
Taxation (expense)(8,236)(9,503)
The taxation (expense) is made up as follows:
Current taxation(2,890)(4,411)
Deferred taxation(5,346)(5,092)
Total taxation (expense)(8,236)(9,503)

VITAL HEALTHCARE PROPERTY TRUST INTERIM REPORT AS AT 31 DECEMBER 2017
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-17
Unaudited
Dec-16
Profit attributable to unitholders of the Trust ($000s)52,88045,524
Weighted average number of units on issue (000's of units)432,849414,852
Basic and diluted earnings per unit (cents)12.2210.97

Unaudited
Dec-17
$000's
Unaudited
Dec-16
$000's
Distributable income
Profit before income tax61,11655,027
Revaluation (gains)(42,774)(13,100)
Unrealised foreign exchange (gain)/loss1,3661,869
Unrealised foreign exchange (gain)/loss derivatives284701
Unrealised interest rate (gain)/loss derivatives(116)(8,080)
Manager's incentive fee5,8033,490
Profit used in calculating gross distributable income25,67939,907
Current tax charge(2,890)(4,411)
Profit used in calculating net distributable income22,78935,496
Gross distributable income (cpu) *5.939.62
Net distributable income (cpu) *5.268.56
* Based on weighted average number of units on issue.

VITAL HEALTHCARE PROPERTY TRUST INTERIM REPORT AS AT 31 DECEMBER 2017
FIN-10FINANCIAL STATEMENTS
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (CONT.)
6 INVESTMENT PROPERTIES
Unaudited
Dec-17
$000s
Audited
Jun-17
$000s
Carrying value of investment property at the beginning of the period1,376,243951,879
Acquisition of properties187,384223,562
Capitalised costs10,23331,637
Capitalised interest costs402302
Net capitalised incentives(167)2,048
Foreign exchange translation difference53,977(1,734)
Change in fair value42,774168,549
Carrying value of investment property at the end of the period1,670,8461,376,243
Carrying value of investment property includes:
Fair value of investment properties1,668,2561,372,587
Income in advance2,5903,656
Carrying value of investment property at the end of the period1,670,8461,376,243
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 2017. The fair value of investment property as at 31 December 2017 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 2017 was $3.1m (30 June 2017: $3.2m)
representing 0.2% of the total investment property portfolio (30 June 2017: 0.2%). The weighted average lease
length of leasehold property at 31 December 2017 was 1.3 years (30 June 2017: 1.8 years).
Acquisition of properties
During the period, the Group acquired five healthcare properties. Three properties are located in New Zealand, two
in Wellington and one in Hastings.Two properties are in Australia, one in Cooroy, Queensland, and one in Kellyville,
New South Wales . The purchase prices included Australian stamp duty and other transaction costs.

VITAL HEALTHCARE PROPERTY TRUST INTERIM REPORT AS AT 31 DECEMBER 2017
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-17
$000s
Audited
Jun-17
$000s
Borrowings98,93494,488
Forward exchange contracts (nominal amount)219,853104,987
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 $10,624,836.
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 a liability of $1,384,237.
There have been no reclassifications of fair value instruments between levels in the period ended 31 December
2017 and 30 June 2017.
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-17
$000s
Audited
Jun-17
$000s
Nominal value of foreign exchange contracts - AUD100,00050,000
Nominal value of foreign exchange options - AUD100,00050,000

VITAL HEALTHCARE PROPERTY TRUST INTERIM REPORT AS AT 31 DECEMBER 2017
FIN-12FINANCIAL STATEMENTS
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (CONT.)
8 UNITS ON ISSUE
Unaudited
Dec-17
$000s
Audited
Jun-17
$000s
Balance at the beginning of the period538,469369,220
Issue of units under Distribution Reinvestment Plan3,0735,928
Issue of units under Rights Issue-159,932
Issue of units to satisfy Manager's incentive fee12,3146,317
Issue costs of units(32)(2,928)
15,355169,249
Balance at the end of the period553,824538,469
Unaudited
Dec-17
000s
Audited
Jun-17
000s
Reconciliation of number of units
Balance at the beginning of the period428,562345,998
Issue of units under the Distribution Reinvestment Plan1,4062,795
Units issued under Rights Issue-76,891
Units issued to satisfy Manager's incentive fee5,4402,878
Balance at the end of the period435,408428,562
The number of units on issue at 31 December 2017 was 435,408,454 (30 June 2017: 428,562,486). 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 23 August 2017, 5,440,157 units were issued against the 2017 Manager's incentive fee of $12,314,339 (30 June
2017: $6,316,611).
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 2017: 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 2017
FIN-13FINANCIAL STATEMENTS
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (CONT.)
9 BORROWINGS
Unaudited
Dec-17
$000s
Audited
Jun-17
$000s
AUD denominated loans614,628402,649
Borrowing costs(1,040)(770)
Total borrowings613,588401,879
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$600.0m 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; and Tranche E: A$175m which is due to expire on 20 November 2021.
The effective interest rate on the borrowings as at 31 December 2017 was 4.09% per annum (30 June 2017:
4.34%).
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-17
$000s
Audited
Jun-17
$000s
Capital Commitments
The Group was party to contracts to purchase or construct property for the
following amounts:36,77078,234
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 year
95,95480,901
Later than one year and not later than five years357,609293,850
Later than five years1,355,9031,059,951
1,809,4661,434,702
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 2017
FIN-14FINANCIAL STATEMENTS
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (CONT.)
11 CONTINGENCIES
There were no contingencies as at 31 December 2017 (30 June 2017: nil).
12 SUBSEQUENT EVENTS
On 26 February 2018 the manager changed its name from Vital Healthcare Management Limited, to NorthWest
Healthcare Properties Management Limited.
On 27 February 2018 a gross distribution of 2.125 cents per unit was announced by the Trust. The record date for
the distribution is 15 March 2018 and a payment is scheduled to unitholders on 29 March 2018. There will be
0.1543 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-17
$000s
Unaudited
Dec-16
$000s
Total fees incurred
Management fees5,5893,743
Manager's incentive fees5,8033,490
Expenses charged by Vital Healthcare Management Limited92218
Expenses charged by Vital Healthcare Australian Property Pty Limited1,1791,290
12,6638,741
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
$92,430 (31 December 2016: $218,108). The amount not recovered from tenants was nil (31 December 2016: nil).

24
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 consolidated statement of financial position as at 31
December 2017, and the consolidated statement of comprehensive income, consolidated statement of changes in equity
and consolidated 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 Trust’s 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 are 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 determine 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 Group as at 31
December 2017 and its financial performance and cash flows for the six 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
27 February 2018

VITAL HEALTHCARE PROPERTY TRUST INTERIM REPORT AS AT 31 DECEMBER 2017
25
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