Vital Third Quarter Update

VITAL THIRD
QUARTER UPDATE
11 May 2018
Vital unitholders will receive a third quarter distribution of 2.125 cpu (cents per unit) with 0.1688 cpu of
imputation credits. The record date is 7June 2018 and payment will be made on 21 June 2018. 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 date21 June 2018
Cash distribution per unit2.125 cpu
Excluded distribution per unit1.6909 cpu
Fully imputed distribution per unit0.4341 cpu
Imputation credits0.1688 cpu
DRP availableYes
DRP discount1%
> Bowen Hospital, Wellington.

Consolidated Statement of Comprehensive Income
For the period ended 31 March 2018
Unaudited
9 months
Mar-18
$000s
Unaudited
9 months
Mar-17
$000s
Gross property income from rentals69,08971,278
Gross property income from expense recoveries7,9505,755
Property expenses(10,190)(7,230)
Net property income66,84969,803
Other expenses19,01514,351
Profit before finance income/(expense) and other gains/(losses)47,83455,452
Finance income/(expense)
Finance income8681
Finance expense(16,558)(10,364)
Fair value gain/(loss) on interest rate derivatives(2,007)7,218
(18,479)(3,065)
Other gains/(losses)
Revaluation gain/(loss) on investment property52,95245,392
Receipts/(payments) under transaction hedging foreign exchange contracts(13)978
Fair value gain/(loss) on foreign exchange derivatives659(2,176)
Unrealised gain/(loss) on foreign exchange3,7153,691
57,31347,885
Profit before income tax86,668100,272
Taxation expense(14,259)(16,823)
Profit for the year attributable to unitholders of the Trust72,40983,449
Other comprehensive income
Items that may be reclassified subsequently to profit and loss:
Movement in foreign currency translation reserve6,07221,720
Realised foreign exchange gains/(losses) on hedges1,4579,692
Current taxation (expense)/credit(251)(2,714)
Unrealised foreign exchange gains/(losses) on hedges1,294(11,368)
Deferred taxation (expense)/credit(362)3,183
Fair value gain/(loss) on net investment hedges(1,185)(4,172)
Deferred taxation (expense)/credit3311,168
Total other comprehensive income/(loss) after tax7,35617,509
Total comprehensive income after tax79,765100,958
Earnings per unit
Basic and diluted earnings per unit (cents)16.7019.92

Consolidated Statement of Financial Position
For the period ended 31 March 2018
Unaudited
Mar-18
$000s
Audited
Jun-17
$000s
Non-current assets
Investment properties1,655,2451,376,243
Derivative financial instruments7441,499
Other non-current assets310327
Total non-current assets1,656,2991,378,069
Current assets
Cash and cash equivalents6,6223,352
Trade and other receivables1,673367
Other current assets2,2547,886
Derivative financial instruments4,9442,554
Total current assets15,49314,159
Total assets1,671,7921,392,228
Unitholders' funds
Units on issue555,349538,469
Reserves(7,730)(11,295)
Retained earnings397,108352,647
Total unitholders' funds944,727879,821
Non-current liabilities
Borrowings360,052401,879
Income in advance-1,541
Derivative financial instruments13,43012,142
Deferred tax79,27271,719
Total non-current liabilities452,754487,281
Current liabilities
Borrowings239,184-
Trade and other payables13,03911,537
Income in advance2,6952,407
Derivative financial instruments49897
Taxation payable18,89511,085
Total current liabilities274,31125,126
Total liabilities727,065512,407
Total unitholders' funds and liabilities1,671,7921,392,228

Same property net operating income
For the nine months ended 31 March 2018
Unaudited
Mar-18
$000s
Unaudited
Mar-17
$000s
Variance
$000s
Same property revenue from investment properties61,19672,951(11,755)
Same property operating costs(7,515)(6,514)(1,001)
53,68166,437(12,756)
Acquisitions13,1683,3669,802
Net operating income66,84969,803(2,954)
Investment properties
$000s
Balance - 30 June 20171,376,243
Acquisitions195,473
Development spend20,147
Fair value adjustment52,952
Foreign exchange translation difference10,430
Balance - 31 March 20181,655,245
Development progress
DevelopmentDevelopment work being undertaken
Development
cost
(A$m)
Spend
to date
(A$m)
Forecast
completion
date
Toronto Private (NSW)
Ten new mental health beds, ten new rehabilitation beds, a
new gym, group therapy rooms and 36 new car parks.
9.48.3Apr-18
Lingard Private (NSW)
Three additional operating theatres, 26 surgical beds and a
hydrotherapy pool. 57 car parks will be developed on an
adjacent site.
23.812.6Jun-18
NorthWest (TAS)New consulting suites and storage rooms.1.00.3May-18
Total Australian Projects34.221.2
(NZ$m)(NZ$m)
Wakefield (Wgtn)Staged demolition and redevelopment of entire hospital.82.00.9Mid-21
Royston (HB)
Expansion including two new theatres, recovery and
admission areas and consulting space.
13.00.5Mid-19
Bowen (Wgtn)
New build to create radio-therapy suite including two
bunkers for linear accelerometers, and associated
consulting space.
11.50.0Mid-19
Total New Zealand Projects106.51.4
Total Projects in $NZD
*
142.923.9
* A$ converted at 31 March 2018 spot rate 0.9407

PORTFOLIO
METRICS
As at 31 March 2018
PORTFOLIO VALUE
$1.66BN
WALE
18.4YEARS
NUMBER OF PROPERTIES
42
OCCUPANCY
99.2%
FY18 DISTRIBUTION GUIDANCE
8.5CENTS PER UNIT
NET TANGIBLE ASSETS
$2.17PER UNIT
Tenant composition
For profit hospitals anchor the portfolio
For profit hospital 54%
Medical specialist 23%
Not for profit hospital 13%
Aged care 6%
Other 3%
Government 1%
Portfolio geographic composition
Well diversified by geography
New South Wales 33%
Victoria 19%
Queensland 13%
Auckland 12%
NZ ex-Auckland 12%
Western Australia 6%
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
20102012201420162018
0
100
200
300
400
Source: Craigs Investment Partners as at 31 March 2018
Ten-year lease expiry profile
Average lease expiry per annum over the next
ten years of 1.8%
Lease expiry by income (%)
11
3.73.7
3.43.4
1.11.1
0.30.3
11
44
33
00
0.20.20.20.2
0.40.4
1.11.1
0.30.3
0.10.1
0.40.4
1.61.6
1.31.3
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