Vital first quarter update

VITAL FIRST
QUARTER UPDATE
09 NOVEMBER 2018
Vital unitholders will receive a first quarter distribution of 2.1875 cpu (cents per unit) with 0.0335 cpu of
imputation credits. The record date is 29 November 2018 and payment will be made on 13 December 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 date13 December 2018
Cash distribution per unit2.1875 cpu
Excluded distribution per unit2.1015 cpu
Fully imputed distribution per unit0.0860 cpu
Imputation credits0.0335 cpu
DRP availableYes
DRP discount1%

Consolidated Statement of Comprehensive Income
For the period ended 30 September 2018
Unaudited
3 months
Sep-18
$000s
Unaudited
3 months
Sep-17
$000s
Gross property income from rentals25,29222,060
Gross property income from expense recoveries2,6052,468
Property expenses(3,399)(3,687)
Net property income24,49820,841
Other expenses6,6896,026
Strategic transaction costs(961)-
Profit before finance income/(expense) and other gains/(losses)18,77014,815
Finance income/(expense)
Finance income46424
Finance expense(7,599)(4,772)
Fair value gain/(loss) on interest rate derivatives5451,927
(6,590)(2,821)
Other gains/(losses)
Revaluation gain/(loss) on investment property3,1748,739
Fair value gain/(loss) on foreign exchange derivatives(274)(2,397)
Fair value gain/(loss) on strategic transactions mark-to-market(9,187)-
Unrealised gain/(loss) on foreign exchange84(1,373)
(6,203)4,969
Profit before income tax5,97716,963
Taxation expense(2,073)(2,928)
Profit for the year attributable to unitholders of the Trust3,90414,035
Other comprehensive income
Items that may be reclassified subsequently to profit and loss:
Movement in foreign currency translation reserve(482)25,793
Realised foreign exchange gains/(losses) on hedges191,638
Current taxation (expense)/credit(5)(459)
Unrealised foreign exchange gains/(losses) on hedges1,007(1,866)
Deferred taxation (expense)/credit(282)522
Fair value gain/(loss) on net investment hedges71(3,306)
Deferred taxation (expense)/credit(20)926
Total other comprehensive income/(loss) after tax30823,248
Total comprehensive income after tax4,21237,283
Earnings per unit
Basic and diluted earnings per unit (cents)0.893.26

Consolidated Statement of Financial Position
For the period ended 30 Sptember 2018
Unaudited
Sep-18
$000s
Audited
Jun-18
$000s
Non-current assets
Investment properties1,756,4781,731,247
Derivative financial instruments825856
Other non-current assets43,97543,984
Total non-current assets1,801,2781,776,087
Current assets
Cash and cash equivalents5,8725,388
Trade and other receivables3,3051,189
Other current assets9,6453,801
Derivative financial instruments1,926363
Total current assets20,74810,741
Total assets1,822,0261,786,828
Unitholders' funds
Units on issue571,457556,878
Reserves5,32315,629
Retained earnings409,679415,469
Total unitholders' funds986,459987,976
Non-current liabilities
Borrowings695,929668,712
Derivative financial instruments13,06414,444
Deferred tax87,22386,796
Total non-current liabilities796,216769,952
Current liabilities
Trade and other payables27,50216,965
Income in advance2,0092,281
Derivative financial instruments2,096460
Taxation payable7,7449,194
Total current liabilities39,35128,900
Total liabilities835,567798,852
Total unitholders' funds and liabilities1,822,0261,786,828

Same property net operating income
For the nine months ended 30 September 2018
Unaudited
Sep-18
$000s
Unaudited
Sep-17
$000s
Variance
$000s
Same property revenue from investment properties25,13924,529610
Same property operating costs(3,225)(3,969)744
21,91420,5601,354
Acquisitions2,5842812,303
Net operating income24,49820,8413,657
Investment properties
$000s
Balance - 30 June 20181,731,247
Acquisitions15,234
Development spend7,579
Fair value adjustment3,174
Foreign exchange translation difference(756)
Balance - 30 September 20181,756,478
Development progress
DevelopmentDevelopment work being undertaken
Development
cost
(A$m)
Spend
to date
(A$m)
Forecast
completion
date
North West (TAS)New consulting suites and medical records1.00.4Q4-18
Total Australian Projects1.00.4
(NZ$m)(NZ$m)
Wakefield (Wgtn)Staged demolition and redevelopment of entire hospital.88.03.6
Staged
21-22
Royston (HB)
Expansion including two new theatres, recovery and
admission areas and consulting space.
13.01.2Mid-20
Bowen (Wgtn)
New build to create radio-therapy suite including two
bunkers for linear accelerometers, and associated
consulting space.
4.00.3Early-19
Total New Zealand Projects105.05.1
Total Projects in $NZD
*
106.15.5
* A$ converted at 30 September 2018 spot rate 0.9164
Strategic Transaction Costs
Unaudited
Sep-18
$000s
Income received(3,323)
Expenses (interest and other)2,362
Strategic transaction costs(961)
Fair value (gain)/loss on strategic transactions mark-to-market9,187
Total transaction costs8,226

PORTFOLIO
METRICS
As at 30 September 2018
PORTFOLIO VALUE
$1.76BN
WALE
18.1YEARS
NUMBER OF PROPERTIES
42
OCCUPANCY
99.3%
FY19 DISTRIBUTION GUIDANCE
8.75CENTS PER UNIT
NET TANGIBLE ASSETS
$2.22PER UNIT
Tenant composition
For profit hospitals anchor the portfolio
For profit hospital 53%
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 30 September 2018
Ten-year lease expiry profile
Average lease expiry per annum over the next
ten years of 1.7%
Lease expiry by income (%)
Total expiryLargest single expiry
Jun 19 Jun 20 Jun 21 Jun 22 Jun 23 Jun 24 Jun 25 Jun 26 Jun 27 Jun 28
0
2
4
6
8
10
12