Vital releases Investor Update

INSIDE:
INVESTING IN AUSTRALASIA'S
HEALTHCARE INFRASTRUCTURE
CEO David Carr
RECENT EVENTS
Recent events at Vital
DEVELOPMENT PIPELINE
Base isolation at Wakefield
VITAL UPDATE
JUNE 2018

INVESTING IN
AUSTRALASIA'S
HEALTHCARE
INFRASTRUCTURE
Dear Investor
This update highlights some recent events at Vital and
briefly reflects on our latest quarterly results. You will
see that our portfolio remains strong and we continue
to execute on our scale and diversification strategy.
On 21 June 2018 investors will receive a third-quarter
distribution payment of 2.125 cents per unit with
imputation credits of 0.1688 cents per unit attached.
Strong Q3 2018 results
We released our third quarter update on 11 May 2018,
highlights include:
•
Portfolio lease term of 18.4 years providing long-
term income certainty, supported by occupancy of
99.2%
•
Net Distributable Income of $32.5m, an 85% payout
ratio
•
Net Tangible Assets per unit of $2.17
Scale and diversification
Flexibility for growth and diversification are important
parts of Vital’s long-term plan. Accordingly, in June
2018 we extended the maturity of two tranches of our
bank facility and expanded our headroom by A$100m
providing additional capacity to meet our strategic
aims and fund future developments.
Our manager and major unitholder, NorthWest
Healthcare Properties REIT, recently secured an
interest in ASX-listed Healthscope, Australia’s second
largest private hospital operator. This interest
positions Vital and NorthWest with a strong tactical
advantage to take a generational opportunity to jointly
acquire a quality portfolio of Australian hospital real
estate assets.
We also continue to actively evaluate the merits of
acquiring strategic sites around existing core assets.
This is to protect and enhance the long-term value of
these properties, directly supporting tenant growth
initiatives.
Continuing development programme
Vital’s value-add development programme in
Australia continues with brownfield redevelopments
at three private hospitals (Toronto, North West, and
Lingard) due to be completed in the coming months.
We are currently in the final stages of design at three
New Zealand development projects associated with
the Acurity portfolio (Wakefield, Bowen, and Royston)
that Vital acquired in December 2017. You can read
more about this in the development section of this
update.
Overall our brownfield development programme
remains central to Vital’s strategy, and underpins
earnings sustainability, improves asset quality and
enhances long-term value.
Outlook
We continue to see strong demographic and
technological trends driving demand for healthcare
services delivered from quality healthcare
infrastructure but note the industry is not immune to
regulatory, economic or local market disruption from
time to time. As a preferred healthcare infrastructure
partner, we continue to support the growth aspirations
of our existing tenants and foster new partnerships
across the sector.
Our balance sheet remains healthy and we continue
to make use of market opportunities to lock in
financing costs and lengthen debt term. Future
development commitments remain a key area of
focus, which will represent about 10% of our total
portfolio value when these projects are completed
over the next four years.
I look forward to presenting you with our annual
results in August 2018.
Kind regards
David Carr, Chief Executive Officer

RECENT EVENTS
Claire Higgins assumes Chair
Claire Higgins assumed the Chair
of our Board in May 2018 following
the retirement of Graeme Horsley.
Claire has been an independent
director of Vital since January
2012.
We are delighted that Claire has
stepped into this leadership role.
Not only is Claire among a select
group of female Chairs of NZX 50
listed companies but her
knowledge of our business and
commitment to all stakeholders
will be instrumental in Vital
executing on our strategy.
Graeme has been active in Vital’s
success over many years and we
thank him for his significant
contribution. We hope Graeme and
Sue enjoy their extensive travels
through 2018.
Please see our
market release on 4 April 2018 for
further details.
Managment team intergration
Earlier this year, we integrated the
NorthWest Healthcare Australia
management team and rebranded
Vital’s manager NorthWest
Healthcare Properties
Management. The combined
platform consists of
approximately 30 team members
in Auckland, New Zealand and
Melbourne, Australia responsible
for managing the Vital Healthcare
Property Trust portfolio.
The manager has a highly
experienced team of industry
experts with over 90 years of
healthcare real estate experience
in Australasia, including
approximately 50 years of
healthcare development
experience, responsible for
building some of the most well-
known private hospitals in
Australia and New Zealand.
These enhanced resources,
together with expansion of key
relationships within the sector, are
expected to further contribute to
our ability to add value to the
portfolio. Please see our market
release on 30 January 2018 for
further details.
Bank facility renewal
We recently refinanced our bank
facility, extending our average debt
maturity by 1.1 years to 3.2 years
and expanding headroom under
our facility by A$100m. This
highlights strong support from our
funding partners and reduces
refinancing risk by securing new
commitments a year in advance of
maturity.
A portion of the additional
borrowing capacity will be used to
finance redevelopment of the
recently acquired Acurity portfolio
over the next four years.

DEVELOPMENT UPDATE
Base isolation at Wakefield
We continue to progress through the final stages of
design with the Acurity developments including
Wakefield Hospital in Wellington.
Following consultation with our tenant partner and
project engineers, Vital will proceed with a base
isolated design at Wakefield Hospital which is
expected to allow it to remain operational following a
seismic event.
Wellington sits within two fault lines generating a
seismic risk that is about four times greater than other
major Australasian cities such as Auckland, Sydney
and Melbourne.
The objective of a traditionally designed structure
under the current building code is to preserve life and
prevent collapse during an earthquake. As such, during
recent earthquakes in New Zealand very few modern
buildings collapsed during or immediately following
the earthquakes. However, several were subsequently
demolished as damage was so significant that repairs
were deemed uneconomical.
In a base isolated design, during a seismic event energy
is absorbed by the isolators which allow the building
to move in a controlled manner reducing damage to the
structure. This reduces the likelihood of critical
damage during an earthquake and increases the
probability that services will continue to be provided
following an event.
We believe this is the right outcome for healthcare
infrastructure in an area with elevated seismic risk and
is currently employed at a handful of Wellington
buildings including the main building at Wellington’s
public hospital.
With our operating partner, Acurity Health Group, it is
our plan to deliver a state-of-the-art medical facility
that will continue to provide health services to the
Wellington area community under all circumstances.
“Vital is extremely pleased to be able to
incorporate base isolation into the
design of Wakefield Hospital. It will
provide a safe and enduring facility for
our operating partner Acurity Health
Group to be able to deliver exceptional
care from”
David Carr
> WAKEFIELD PROPOSED DESIGN CONCEPT

PORTFOLIO
METRICS
As at 31 March 2018
NUMBER OF PROPERTIES
42
OCCUPANCY
99.2%
WALE
18.4YEARS
Weighted Average Lease Term to expiry (WALE)
Leading the market with a WALE that far exceeds
the sector average
Years
17.117.1
18.418.4
17.717.7
18.418.4
6.56.5
Jun-15Jun-16Jun-17Mar-18Sector avg*
0
5
10
15
20
*Source: Forsyth Barr Real Estate Reflections March 2018.
NZ listed property excluding VHP.
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 (%)
Total expiryLargest single expiry
Jun 18Jun 19Jun 20Jun 21Jun 22Jun 23 Jun 24 Jun 25Jun 26Jun 27
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 three distribution payment21 June 2018
Annual result announcementAugust 2018
Quarter four distribution paymentSeptember 2018
Contacts
ManagerUnit Registrar
NorthWest Healthcare Properties
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
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Private Bag 92119, Auckland 1142
New Zealand
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This newsletter is for information purposes only. Its content is intended to be of a general nature, does not take into account your
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