Delivers FY19 normalised net distributable income of $51.0m

Template
Results announcement
(for Equity Security issuer/Equity and Debt Security issuer)
Updated as at 8 May 2019


Results for announcement to the market
Name of issuer Vital Healthcare Property Trust
Reporting Period 12 months to 30 June 2019
Previous Reporting Period 12 months to 30 June 2018
Currency NZD

Amount (000s) Percentage change
Revenue from continuing
operations
$97,683 7.75%
Total Revenue $97,683 7.75%
Net profit/(loss) from
continuing operations
$93,422 -6.64%
Total net profit/(loss) $93,422 -6.64%
Interim/Final Dividend
Amount per Quoted Equity
Security
$0.021875
Imputed amount per Quoted
Equity Security
$0.006725
Record Date 12 September 2019
Dividend Payment Date 26 September 2019
Current period Prior comparable period
Net tangible assets per
Quoted Equity Security
$2.31 $2.26
A brief explanation of any of
the figures above necessary
to enable the figures to be
understood
Refer announcement
Authority for this announcement
Name of person

authorised
to make this announcement
Stuart Harrison
Contact person for this
announcement
Stuart Harrison
Contact phone number 09 973 7302
Contact email address sharrison@nwhpm.com.au
Date of release through MAP

8 August 2019

Audited financial statements accompany this announcement.

3
INVESTING IN
AUSTRALASIA'S
HEALTHCARE
INFRASTRUCTURE
FINANCIAL STATEMENTS2019
Consolidated Statement of Comprehensive IncomeFIN-1
Consolidated Statement of Financial PositionFIN-2
Consolidated Statement of Changes in EquityFIN-3
Consolidated Statement of Cash FlowsFIN-4
Notes to the Consolidated Financial StatementsFIN-5
Independent Auditor's Report31

FIN-1
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the year ended 30 June 2019
Note
2019
$000s
2018
$000s
Gross property income from rentals101,05293,678
Gross property income from expense recoveries10,32110,258
Property expenses(13,690)(13,277)
Net property income497,68390,659
Other income and expenses5(29,505)(27,717)
Strategic transaction income and expenses24(4,273)(3,579)
Strategic transaction interest income242,672283
Finance income123102
Finance expense6(32,665)(23,172)
Operating profit34,03536,576
Other gains/(losses)
Revaluation gain on investment property10103,55685,461
Fair value gain/(loss) on foreign exchange derivatives102(300)
Fair value gain/(loss) on interest rate derivatives(36,314)(2,883)
Realised gain/(loss) on foreign exchange5,447-
Unrealised gain/(loss) on foreign exchange207(1,417)
72,99880,861
Profit before income tax107,033117,437
Taxation expense7(13,611)(17,372)
Profit for the year attributable to unitholders of the Trust93,422100,065
Other comprehensive income
Items that may be reclassified subsequently to profit and loss:
Movement in foreign currency translation reserve(38,411)28,802
Realised foreign exchange gain/(loss) on hedges4,6331,457
Current taxation (expense)/credit(1,297)(408)
Unrealised foreign exchange gain/(loss) on hedges-(2,317)
Deferred taxation (expense)/credit-649
Fair value gain/(loss) on net investment hedges5,548(2,834)
Deferred taxation (expense)/credit(1,553)794
Total other comprehensive income/(loss) after tax(31,080)26,143
Total comprehensive income after tax62,342126,208
Earnings per unit
Basic and diluted earnings per unit (cents)821.0723.04
The notes on pages FIN 5 to FIN 30 form part of and are to be read in conjunction with these financial statements.

VITAL HEALTHCARE PROPERTY TRUST FINANCIAL STATEMENTS 2019
FIN-2FINANCIAL STATEMENTS
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
As at 30 June 2019
Note
2019
$000s
2018
$000s
Non-current assets
Investment properties10,111,836,4301,731,247
Derivative financial instruments12-856
Other non-current assets15,2479343,984
Total non-current assets1,837,2231,776,087
Current assets
Cash and cash equivalents96,0685,388
Trade and other receivables141,3001,189
Other current assets15,2486,8753,801
Derivative financial instruments1277363
Total current assets94,32010,741
Total assets1,931,5431,786,828
Unitholders' funds
Units on issue16576,300556,878
Reserves(16,469)15,629
Retained earnings469,914415,469
Total unitholders' funds1,029,745987,976
Non-current liabilities
Borrowings17734,211668,712
Derivative financial instruments1249,43614,444
Deferred tax1390,86786,796
Total non-current liabilities874,514769,952
Current liabilities
Trade and other payables1813,81516,965
Income in advance6522,281
Derivative financial instruments12540460
Taxation payable12,2779,194
Total current liabilities27,28428,900
Total liabilities901,798798,852
Total unitholders' funds and liabilities1,931,5431,786,828
For and on behalf of the Manager, NorthWest Healthcare Properties Management Limited.
B Crotty, Chairman
8 August 2019
G Stuart, Director
The notes on pages FIN 5 to FIN 30 form part of and are to be read in conjunction with these financial statements.

FIN-3
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the year ended 30 June 2019
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 year ended
30 June 2018
Balance at the start of the period538,469352,647(83,713)60,10412,314879,821
Changes in unitholders' funds18,409---(12,314)6,095
Manager's incentive fee----13,09513,095
Profit for the period-100,065---100,065
Distributions to unitholders-(37,243)---(37,243)
Other comprehensive income for
the period
Movement in foreign currency
translation reserve--28,802--28,802
Realised foreign exchange gains
on hedges---1,049-1,049
Unrealised foreign exchange
gains/
(losses) on hedges---(1,668)-(1,668)
Fair value gains on net investment
hedges---(2,040)-(2,040)
Balance at the end of the year556,878415,469(54,911)57,44513,095987,976
For the year ended
30 June 2019
Balance at the start of the period556,878415,469(54,911)57,44513,095987,976
Changes in unitholders' funds19,422---(13,095)6,327
Manager's incentive fee----12,07712,077
Profit for the period-93,422---93,422
Distributions to unitholders-(38,977)---(38,977)
Other comprehensive income for
the period
Movement in foreign currency
translation reserve--(38,411)--(38,411)
Realised foreign exchange gains
on hedges---3,336-3,336
Unrealised foreign exchange
gains/
(losses) on hedges------
Fair value gains on net investment
hedges---3,995-3,995
Balance at the end of the year576,300469,914(93,322)64,77612,0771,029,745
The notes on pages FIN 5 to FIN 30 form part of and are to be read in conjunction with these financial statements.

VITAL HEALTHCARE PROPERTY TRUST FINANCIAL STATEMENTS 2019
FIN-4FINANCIAL STATEMENTS
CONSOLIDATED STATEMENT OF CASH FLOWS
For the year ended 30 June 2019
Note
30 June
2019
$000s
30 June
2018
$000s
Cash flows from operating activities
Property income99,32491,906
Recovery of property expenses10,0289,837
Interest received12390
Property expenses(15,169)(13,143)
Management and trustee fees(13,250)(12,341)
Interest paid(32,041)(22,290)
Tax paid(5,717)(6,062)
Other trust expenses(2,684)(2,283)
Net cash provided by/(used in) operating activities940,61445,714
Cash flows from investing activities
Receipts from foreign exchange derivatives5,1833,266
Capital additions on investment properties(36,183)(26,886)
Purchase of properties(23,469)(187,694)
Prepaid acquisition costs(127)(5,038)
Advances provided to related parties(42,400)(43,295)
Payments for foreign exchange derivatives-(1,736)
Strategic transaction third party interest(9,551)-
Strategic transaction settlement1,761-
Strategic transaction interest income2,955-
Net cash provided by/(used in) investing activities(101,831)(261,383)
Cash flows from financing activities
Debt drawdown118,401249,910
Repayment of debt(23,517)-
Loan issue costs(308)(1,029)
Costs associated with Distribution Reinvestment Plan(29)(27)
Distributions paid to unitholders(32,650)(31,149)
Net cash from/(used in) financing activities61,897217,705
Net increase/(decrease) in cash and cash equivalents6802,036
Cash and cash equivalents at the beginning of the period5,3883,352
Cash and cash equivalents at the end of the year6,0685,388
The notes on pages FIN 5 to FIN 30 form part of and are to be read in conjunction with these financial statements.

FIN-5
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
1 REPORTING ENTITY
The reporting entity is Vital Healthcare Property Trust (“VHP” or
the “Trust”), 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 NorthWest Healthcare Properties Management
Limited (the “Manager”) and the address of its registered office is
Level 16, AIG Building, 41 Shortland Street, Auckland.
The consolidated financial statements of VHP for the year ended
30 June 2019 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 high quality Health Sector
related properties.
These consolidated financial statements were approved by the
Board of Directors of the Manager on 8 August 2019.
2 BASIS OF PREPARATION
(a) Statement of compliance
These financial statements have been prepared in accordance
with Generally Accepted Accounting Practice in New Zealand
(NZ GAAP). The financial statements comply with New Zealand
equivalents to International Financial Reporting Standards
(NZ IFRS) and other applicable Financial Reporting Standards, as
appropriate for profit-oriented entities. The consolidated financial
statements comply with International Financial Reporting
Standards (IFRS).
(b) Basis of measurement
These financial statements have been prepared on the historical
cost basis except for derivative financial instruments and
investment properties which are measured at fair value.
(c) Functional and presentation currency
These financial statements are presented in New Zealand Dollars
($), which is the Group’s functional and presentation currency. All
information has been rounded to the nearest thousand dollars
($000), unless stated otherwise.
(d) Critical accounting estimates and judgements
In the application of NZ IFRS, the Board and management are
required to make judgements, estimates and assumptions about
carrying values of assets and liabilities that are not readily
apparent from other sources. The estimates and associated
assumptions are based on experience and other factors that are
believed to be reasonable under the circumstances, the results of
which form the basis of making the estimates. Actual results
may differ from the estimates and assumptions made by the
Board and management.
Estimates and underlying assumptions are reviewed on an
ongoing basis. Revisions to accounting estimates are recognised
in the period in which the estimate is revised and in any future
periods affected.
Judgements made by management in the application of NZ IFRS
that have significant effects on the financial statements and
estimates with a significant risk of a material adjustment in the
next financial year are disclosed where applicable in the relevant
notes to the financial statements.
In particular information about 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 10 – valuation of investment properties
Note 13 – deferred tax (and taxation in Note 7)
Note 24 – related party transactions
3 SIGNIFICANT ACCOUNTING POLICIES
(a) Basis of consolidation
The Group’s financial statements incorporate the financial
statements of the Trust and entities controlled by the Trust
(its subsidiaries) as set out in Note 20. Control is achieved where
the Trust has power over the investees; is exposed, or has rights,
to variable returns from its involvement with the investees; and
has the ability to use its power to affect its returns. The results of
subsidiaries are included in the consolidated financial statements
from the effective date of acquisition or up to the effective date of
disposal, as appropriate. All significant intra-group transactions,
balances, income and expenses are eliminated on consolidation.
(b) Foreign currency transactions
The individual financial statements of each group entity are
presented in the currency of the primary economic environment
in which the entity operates (its functional currency). For the
purpose of the Group financial statements, the results and
financial position of each group entity are expressed in
New Zealand Dollars.
In preparing the financial statements of the individual entities,
transactions in currencies other than the entity’s functional
currency (foreign currencies) are recorded at the rates of
exchange prevailing at the dates of the transactions. At the end
of each reporting period monetary assets and liabilities
denominated in foreign currencies are retranslated at the rate of
exchange prevailing at that time.
Exchange differences are recognised in profit or loss in the period
in which they arise, except for exchange differences on
transactions entered into in order to hedge certain foreign
currency risks (see h.6.2 for hedge accounting policy).

VITAL HEALTHCARE PROPERTY TRUST FINANCIAL STATEMENTS 2019
FIN-6FINANCIAL STATEMENTS
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
3 SIGNIFICANT ACCOUNTING POLICIES (continued)
(c) Foreign operations
For the purpose of presenting the Group financial statements, the
assets and liabilities of the Group’s foreign operations are
expressed in New Zealand Dollars using exchange rates
prevailing at the end of the reporting period. Income and expense
items are translated at the average exchange rates for the period.
Exchange differences arising, if any, are recognised in other
comprehensive income and accumulated as a separate
component of equity in the Group’s foreign currency translation
reserve.
(d) Goods and services tax
The statement of comprehensive income and statement of cash
flows have been prepared so that all components are stated
exclusive of goods and services tax (GST), to the extent that GST
is recoverable. All items in the statement of financial position are
stated exclusive of GST, with the exception of receivables and
payables, which include GST invoiced. Cash flows are included in
the statement of cash flows on a net basis. The GST component
of cash flows arising from investing and financing, which is
recoverable from, or payable to, the taxation authority, is
classified as part of operating cash flows.
(e) Investment properties
Investment property is property held either to earn rental income
or for capital appreciation or both. Investment properties are
initially stated at cost, including any related transaction costs.
Subsequent expenditure is charged to the asset’s carrying
amount only when it is probable that future economic benefits
associated with the item will flow to the Group and the cost of
the item can be measured reliably. All other repairs and
maintenance costs are charged to the statement of
comprehensive income during the financial period in which they
are incurred. Initial direct costs incurred in negotiating and
arranging operating leases and lease incentives granted are
added to the carrying amount of the leased asset.
After initial recognition, investment properties are stated at fair
value as determined every year by independent valuers, with any
change therein recognised in the statement of comprehensive
income. In accordance with the valuation policy of the Group,
complete property valuations are carried out by independent
registered valuers having appropriately recognised professional
qualifications and experience in the location and category of
property being valued. The valuation policy stipulates that the
same valuer may not value a property for more than two
consecutive years. The fair values are based on market values
being the estimated amount that would be received to sell an
asset or paid to transfer a liability in an orderly transaction
between market participants at the measurement date. In the
absence of current prices in an active market, the valuations are
prepared using a discounted cash flow methodology based on the
estimated rental cash flows expected to be received from the
property, adjusted by a discount rate that appropriately reflects
the risks inherent in the expected cash flows.
Investment properties are derecognised when they have been
disposed of and any gains or losses incurred on disposal, being
the difference between the carrying amount of the investment
property at the time of disposal and the proceeds on disposal, are
recognised in the statement of comprehensive income in the year
in which the disposal occurred.
(f) Development of investment properties
Investment property that is being redeveloped for continuing use
is measured at fair value and subsequent expenditure is
capitalised to the asset’s carrying amount only when it is
probable that future economic benefits associated with the item
will flow to the Group and the cost of the item can be measured
reliably. Borrowing costs are capitalised if they are directly
attributable to the development of a qualifying property.
Capitalisation of borrowing costs commences when the activities
to prepare the property are in progress and expenditure and
borrowing costs are being incurred. Capitalisation of borrowing
costs may continue until the assets are substantially ready for
their intended use.
(g) Interests in joint operations
A joint operation is a joint arrangement whereby the parties that
have joint control of the arrangement have rights to the assets
and obligations for the liabilities relating to the arrangement.
Joint control is the contractually agreed sharing of control of an
arrangement, which exists only when decisions about the
relevant activities require unanimous consent of the parties
sharing control.
When the Group undertakes its activities under joint operations,
the Group as a joint operator recognises, in relation to its interest
in a joint operation, its share of assets and liabilities in the
consolidated statement of financial position and share of revenue
earned and expenses incurred in the consolidated statement of
comprehensive income. The Group accounts for the assets,
liabilities, revenues and expenses relating to its interest in the
joint operation in accordance with the NZ IFRS standards
applicable to the particular assets, liabilities, revenues and
expenses.
(h) Financial instruments
(h.1) Non-derivative financial instruments
Non-derivative financial instruments comprise trade and other
receivables, cash and cash equivalents, borrowings and trade and
other payables.
(h.2) Cash and cash equivalents
Cash and cash equivalents comprise cash at bank and call
deposits.

FIN-7
3 SIGNIFICANT ACCOUNTING POLICIES (continued)
(h) Financial instruments (continued)
(h.3) Trade and other receivables
Trade and other receivables are recognised initially at fair value
and subsequently measured at amortised cost using the effective
interest rate method. The Group has applied the simplified
approach to measuring expected credit loss as prescribed by NZ
IFRS 9, which uses a lifetime expected loss allowance. In
determining the loss allowance, past default experience of the
debtor, the debtor's current financial position, general economic
conditions of the industry in which the debtors operate and an
assessment of both current, as well as the forecast direction of
conditions at the reporting date, is considered. The transition to
NZ IFRS 9 has resulted in a change to the estimation technique
used to measure expected credit losses from an incurred loss
model to an expected loss model during the current reporting
period.
The Group writes off a trade receivable when it is determined
there is no realistic prospect of recovery, e.g. when the debtor
has been placed under liquidation or has entered bankruptcy
proceedings, or when the trade receivables are over two years
past due, whichever occurs earlier.
(h.4) Trade and other payables
Trade and other payables are recognised initially at fair value and
subsequently measured at amortised cost using the effective
interest method.
(h.5) Bank borrowings
Interest-bearing bank loans are initially measured at fair value
net of transaction costs. Subsequent to initial recognition,
borrowings are measured at amortised cost with any difference
being recognised in the statement of comprehensive income over
the period of the borrowing using the effective interest rate
method. Accrued interest is classified separately under trade and
other payables.
(h.6.1) Derivative financial instruments
The Group uses derivative financial instruments such as interest
rate swaps and forward exchange contracts to reduce its
exposure to interest rate risk and foreign exchange risk.
Derivative financial instruments are initially recognised and
subsequently measured at fair value. Gains and losses arising
from changes in fair value of a derivative are recognised as they
arise in the profit and loss in the statement of comprehensive
income, unless the derivative is a hedging instrument in a
qualifying hedge relationship, in which case the gains and losses
are recognised in other comprehensive income. Derivatives are
recognised on the date the contract is entered into.
(h.6.2) Hedge accounting
The Group has entered into hedge relationships for hedges of net
investments in foreign operations. Hedge relationships are
formally documented at the inception of the hedge and are
aligned to the Group's documented risk management strategy
approved by the Board.
Hedge effectiveness is determined at the inception of the hedge
relationship, and through periodic prospective effectiveness
assessments to ensure that an economic relationship exists
between the hedged item and the hedging instrument.
The effective portion of foreign exchange differences arising on
the hedging instrument determined to be an effective hedge is
recognised directly in other comprehensive income. Any
ineffective portion is recognised directly in the profit and loss in
the statement of comprehensive income. The Group uses
derivative financial instruments and non-derivative financial
instruments as hedging instruments of a net investment in a
foreign operation. On disposal of the foreign operation, the
cumulative value of such gains or losses recognised in other
comprehensive income is reclassified to the profit and loss in the
statement of comprehensive income.
(i) Finance expense
Finance expense comprises interest payable on borrowings and
interest paid on interest rate hedging instruments. All borrowing
costs (other than borrowing costs attributable to property under
development) are recognised in the statement of comprehensive
income using the effective interest method.
(j) Taxation
(j.1) Income tax expense
Income tax expense represents the sum of the tax currently
payable and deferred tax. Income tax expense is recognised in
profit or loss in the statement of comprehensive income except
to the extent that it relates to items recognised directly in other
comprehensive income or equity, in which case the tax is
recognised in other comprehensive income or equity.
(j.2) Current tax
The tax currently payable is based on taxable profit for the
reporting period, using tax rates enacted or substantively enacted
at the reporting date in the countries where the Group operates.
Management periodically evaluates positions taken in tax returns
with respect to situations in which applicable tax regulation is
subject to interpretation, and establishes provisions where
appropriate on the basis of amounts expected to be paid to the
tax authorities. Taxable profit differs from profit reported in the
statement of comprehensive income because it excludes items
that are never taxable or deductible.
(j.3) Deferred tax
Deferred tax is recognised on differences between the carrying
amounts of assets and liabilities in the financial statements and
the corresponding tax bases used in the computation of taxable
profit, and is accounted for using the balance sheet liability
method. Deferred tax liabilities are generally recognised for all
taxable temporary differences, and deferred tax assets are
generally recognised for all deductible temporary differences, to
the extent that it is probable that taxable profits will be available
against which those deductible temporary differences can be
utilised.
Deferred tax is calculated at the tax rates that are expected to
apply in the period in which the liability is settled or the asset
realised, based on tax rates (and tax rules) that have been
enacted or substantively enacted by the end of the reporting
period.

VITAL HEALTHCARE PROPERTY TRUST FINANCIAL STATEMENTS 2019
FIN-8FINANCIAL STATEMENTS
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
3 SIGNIFICANT ACCOUNTING POLICIES (continued)
(k) Items carried at fair value
The items which are carried at fair value include investment
property and derivative financial instruments. These items are
classified into the following levels in the fair value measurement
hierarchy:
Level 1 – quoted prices (unadjusted) in active markets for
identical assets or liabilities;
Level 2 – inputs other than quoted prices included within Level 1
that are observable for the asset or liability, either directly (i.e. as
prices) or indirectly (i.e. derived from prices); and
Level 3 – inputs for the asset or liability that are not based on
observable market data (unobservable inputs).
(l) Operating lease commitments
The Group has entered into commercial property leases on its
investment properties. The Group has determined that it retains
all significant risks and rewards of ownership of these properties
and has thus classified the leases as operating leases.
(m) Capital
(m.1) Units
Units are classified as equity. External costs, net of tax, directly
attributable to the issue of new units are deducted from
unitholders’ funds as permitted by the Trust Deed.
(m.2) Distributions
Distributions to the Group’s unitholders are recognised as a
liability in the Group’s financial statements in the period in which
the distributions are approved.
(m.3) Share based payments
The Trust receives management services from the Manager and
pays the Manager an asset management fee and an incentive fee.
The management fee is recorded in the statement of
comprehensive income and is settled in cash. The incentive fee,
as set out in the Trust Deed, is settled in newly issued units. The
incentive fee arrangements are considered a share based
payment. The Trust recognises the incentive fee as the services
are provided. The incentive fee, not yet settled as newly issued
units, is reflected within the share based payment reserve until
such time as it has been settled.
(n) Gross property income
Gross property income from investment property leased to
tenants under operating leases is recognised on a straight-line
basis over the term of the lease to the extent that future rental
increases are known with certainty. Fixed rental adjustments are
accounted for to achieve straight-line income recognition. Where
lease incentives are provided to tenants, the cost of incentives is
recognised over the lease term on a straight-line basis as a
reduction in rental income. Tenants' share of property operating
expenses which is recoverable, is recognised as gross property
income from expense recoveries as the Group considers itself the
principal of the arrangement. The Group collectively arranges
this for tenants as part of the lease agreements.
(o) Statement of cash
flows
The statement of cash flows is prepared on a GST exclusive
basis, which is consistent with the statement of comprehensive
income.
The following terms are used in the statement of cash flows:
Operating activities are the principal revenue producing
activities of the Group and other activities that are not investing
or financing activities.
Investing activities are the acquisition and disposal of long term
assets and other investments not included in cash equivalents.
Financing activities are activities that result in changes in the
size and composition of the contributed equity and borrowings of
the entity.
(p) Adoption of new accounting standards
The Group has adopted NZ IFRS 9 Financial Instruments and
NZ IFRS 15 Revenue from Contracts with Customers effective
from 1 July 2018.
NZ IFRS 9 Financial Instruments
Classification and measurement
From 1 July 2018, the Group classifies its financial assets and
financial liabilities in the following measurement categories:
- those to be measured subsequently at fair value (either through
other comprehensive income, or through profit or loss), and
- those to be measured at amortised cost.
The classification of financial instruments has not resulted in any
reclassification between measurement categories for the Group's
financial assets and liabilities. Derivative financial instruments
designated as hedges of a net investment in a foreign operation
(net investment hedge), remain measured at fair value through
other comprehensive income. All other derivative financial
instruments the Group uses to manage its foreign exchange and
interest rate risk will continue to be measured at fair value
through profit or loss. The Group's other financial instruments
(including cash and cash equivalents, trade and other receivables,
trade payables, related party loans, bank borrowings and the NZX
bond) are measured at amortised cost.
Impairment
Under NZ IFRS 9, on initial recognition of a financial asset, the
Group assesses on a forward looking basis, the expected credit
loss associated with its financial assets and related party loans
carried at amortised cost. At each reporting date, the credit risk
on a financial asset, apart from trade receivables, is assessed to
determine whether there has been a significant increase in the
credit risk. In assessing whether there has been a significant
increase in credit risk, the Group considers both forward looking
information and the financial history of counterparties to assess
the probability of default or the likelihood that full settlement is
not received. For trade receivables, the simplified approach to
measuring expected credit loss is adopted, which uses a lifetime
expected loss allowance.

FIN-9
3 SIGNIFICANT ACCOUNTING POLICIES (continued)
(p) Adoption of new accounting standards (continued)
Hedge Accounting
Derivative financial instruments designated as hedges of a net
investment in a foreign operation (net investment hedge)
continue to meet the requirements under NZ IFRS 9. The Group's
risk management strategies and hedge documentation are
aligned with the requirements of NZ IFRS 9 and are therefore
treated as continuing hedges.
NZ IFRS 15 Revenue from contracts with customers
The majority of the revenues of the Group are derived from rental
income from lease agreements with tenants of the investment
properties. Accounting for lease income is out of the scope of
NZ IFRS 15 Revenue from Contracts with Customers. However,
certain non-rental income streams such as recovery of property
operating expenses are within the scope of NZ IFRS 15.
Accounting policies have been amended to include the five-step
method, as defined in NZ IFRS 15, to recognise revenue across
the Group. The Group has applied the standard retrospectively
with the cumulative effect of initially applying the standard
recognised at the date of initial application.
The five-step method for recognising revenue from contracts
with customers involves consideration of the following:
•Identifying the contract with the customer
•Identifying performance obligations
•Determining the transaction price
•Allocating the transaction price to distinct performance
obligations
•Recognising revenue when performance obligations are
satisfied, this may be at a point in time or over time
The Group considers a performance obligation is satisfied at a
point in time when control of a good or service transfers to a
customer. The Group has separately identified the significant
performance obligations and revenue streams within gross
property income from expense recoveries and determined that
there is no change to the timing and measurement of these
revenue streams. Hence, no cumulative opening balance
adjustment is required to the financial statements.
(q) Standards and interpretations in issue not yet effective
At the date of authorisation of the financial statements, the
following relevant standard was in issue but not applied as the
standard is effective for accounting periods beginning on or after
1 January 2019.
NZ IFRS 16 Leases
Replaces the current guidance in NZ IAS 17 Leases . The
standard eliminates the distinction between operating and
finance leases for lessees and will result in lessees bringing most
leases onto their balance sheet, with the exception of certain
short-term leases and leases of low value assets. There are
minimal changes from the current NZ IAS 17 requirements for
lessors. Given the Group is primarily a lessor, the standard is not
expected to significantly impact on the financial statements.
However a ground lease exists over the Ascot carparks at Ascot
Avenue, Auckland and as the lessee, the Group will recognise a
"right-of-use" asset and corresponding lease liability
(representing the obligation to make lease payments) in the
Statement of Financial Position.
(r) Changes in accounting policy and presentation
All accounting policies have been applied on a basis consistent
with the prior years' financial statements, with the exception of
the mandatory adoption of NZ IFRS 9 Financial Instruments and
NZ IFRS 15 Revenue from Contracts with Customers outlined
above. Where necessary, comparative figures have been adjusted
to conform with changes in presentation in the financial
statements.

VITAL HEALTHCARE PROPERTY TRUST FINANCIAL STATEMENTS 2019
FIN-10FINANCIAL STATEMENTS
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
4 SEGMENT INFORMATION
The principal business activity of the Group 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
chief operating decision maker, which is the Board of Directors of the Manager, 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/(loss) for the year ended 30 June 2019:
Gross property income from rentals75,28225,770101,052
Gross property income from expense recoveries5,0015,32010,321
Property expenses(7,069)(6,621)(13,690)
Net property income73,21424,46997,683
Other (expense)(12,125)(17,380)(29,505)
Strategic transaction income and expenses(4,273)-(4,273)
Strategic transaction interest income2,672-2,672
Net finance (expense)(19,685)(12,857)(32,542)
39,803(5,768)34,035
Fair value gain/(loss) on interest rate derivatives-(36,314)(36,314)
Revaluation gains on investment properties80,36323,193103,556
Other foreign exchange gains/(losses)(1)5,7575,756
Total segment profit before income tax120,165(13,132)107,033
Taxation (expense)(13,611)
Profit for the year93,422
Segment profit/(loss) for the year ended 30 June 2018:
Gross property income from rentals71,57922,09993,678
Gross property income from expense recoveries5,0905,16810,258
Property expenses(6,734)(6,543)(13,277)
Net property income69,93520,72490,659
Other (expense)(14,170)(13,547)(27,717)
Strategic transaction income and expenses(3,579)-(3,579)
Strategic transaction interest income283-283
Net finance (expense)(13,274)(9,796)(23,070)
39,195(2,619)36,576
Fair value gain/(loss) on interest rate derivatives-(2,883)(2,883)
Revaluation gains on investment properties75,9449,51785,461
Other foreign exchange gains/(losses)(2)(1,715)(1,717)
Total segment profit before income tax115,1372,300117,437
Taxation (expense)(17,372)
Profit for the year100,065
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 $56.5m, all in Australia (2018: two tenants totalling $52.4m).
There were no inter-segment sales during the year (2018: nil).
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 Board of Directors, who are the chief operating decision makers for the purposes of resource allocation and
assessment of segment performance.

FIN-11
4 SEGMENT INFORMATION (continued)
Australia
$000s
New Zealand
$000s
Total
$000s
Segment assets at 30 June 2019:
Investment properties1,387,661448,7691,836,430
Other non-current assets284509793
Current assets90,9633,35794,320
Consolidated assets1,478,908452,6351,931,543
Segment assets at 30 June 2018:
Investment properties1,327,104404,1431,731,247
Other non-current assets43,95788344,840
Current assets4,9685,77310,741
Consolidated assets1,376,029410,7991,786,828
Segment liabilities at 30 June 2019:
Borrowings466,093268,118734,211
Other liabilities105,98661,601167,587
Consolidated liabilities572,079329,719901,798
Segment liabilities at 30 June 2018:
Borrowings526,811141,901668,712
Other liabilities98,07532,065130,140
Consolidated liabilities624,886173,966798,852
For the purposes of monitoring segment performance and allocating resources between segments:
– all assets are allocated to reportable segments, and
– all liabilities are allocated to reportable segments.
5 OTHER INCOME AND EXPENSES
2019
$000s
2018
$000s
Expenses
Auditor's remuneration:
Audit and review of financial statements183143
Manager's fees13,83911,856
Manager's incentive fee12,07713,096
Trustee fees587488
Other operating income/expenses2,8192,134
Total other income and expenses29,50527,717
6 FINANCE EXPENSES
2019
$000s
2018
$000s
Expenses
Interest expense33,77024,124
Borrowing costs capitalised(1,105)(952)
Total finance expenses32,66523,172

VITAL HEALTHCARE PROPERTY TRUST FINANCIAL STATEMENTS 2019
FIN-12FINANCIAL STATEMENTS
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
7 TAXATION
2019
$000s
2018
$000s
Profit/(loss) before tax for the period107,033117,437
Taxation (charge)/credit - 28% on profit before income tax(29,969)(32,882)
Effect of different tax rates in foreign jurisdictions16,04315,786
Tax exempt income7,0133,687
Foreign tax credits2,0902,351
Tax charges on overseas investments(9,932)(8,559)
Over/(under) provided in prior periods-1,263
Other adjustments1,144982
Taxation (expense)/credit(13,611)(17,372)
The taxation (charge)/credit is made up as follows:
Current taxation(7,572)(3,537)
Deferred taxation(6,039)(13,835)
Total taxation (expense)(13,611)(17,372)
Key assumptions in calculating income tax
The key assumptions used in the preparation of the Group’s tax calculation are as follows:
Tax rate:
The New Zealand entities are subject to New Zealand tax on assessable income at the rate of 28%.
VHIT – This Australian Trust was established so that it qualifies as a Managed Investment Trust (MIT) for Australian tax purposes and
is subject to Australian tax on assessable income at the rate of 15%.
VHAPT – This Australian Trust is subject to Australian tax on assessable income at the rate of 15% after qualifying as a MIT for
Australian tax purposes in FY2017.
Attributable Foreign Investment Fund Income
In previous years, distributions from VHAPT were not subject to income tax in New Zealand as VHPL was able to rely on section CW 9
of the Income Tax Act 2007. However, recent changes to the tax legislation mean that under certain circumstances (which apply to
VHPL’s investment into VHAPT), distributions from foreign entities will no longer be eligible for the foreign dividend exemption
provided by section CW 9 of the Income Tax Act 2007 and are therefore treated as a taxable distribution in VHPL.
Imputation credits
Imputation (deficit)/credits at end of year(1,146)(702)

FIN-13
8 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 year.
20192018
Profit attributable to unitholders of the Trust ($000s)93,422100,065
Weighted average number of units on issue (000's of units)443,453434,322
Basic and diluted earnings per unit (cents)21.0723.04
2019
$000s
2018
$000s
Distributable income
Profit before income tax107,033117,437
Revaluation (gains)(103,556)(85,461)
Unrealised foreign exchange (gain)/loss(207)1,417
Unrealised foreign exchange (gain)/loss derivatives(102)300
Unrealised interest rate (gain)/loss derivatives36,3142,883
Manager's incentive fee12,07713,096
Profit used in calculating gross distributable income51,55949,672
Current tax charge7,5723,537
Profit used in calculating net distributable income43,98746,135
Gross distributable income (cpu)11.6311.44
Net distributable income (cpu)9.9210.62
Distributions paid in the financial year were 8.75 cents per unit (2018: 8.50).
9 STATEMENT OF CASH FLOWS RECONCILIATION FROM OPERATING ACTIVITIES
2019
$000s
2018
$000s
Cash and cash equivalents
Australian financial institutions5,0023,211
New Zealand financial institutions1,0662,177
Cash at bank6,0685,388
Reconciliation of profit after income tax to net cash flows from operating activities
Profit after tax for the year93,422100,065
Adjustments for non-cash items
Change in fair value of investment properties(103,556)(85,461)
Fair value (gain)/loss on derivative financial instruments36,2123,183
Unrealised foreign exchange (gain)/loss(207)1,417
Realised foreign exchange (gain)/loss(5,447)-
Deferred taxation6,04013,835
Income in advance(1,628)(1,667)
Manager's incentive fee12,07713,096
Other37(1,140)
Operating cash flow before changes in working capital36,95043,328
Change in trade and other payables6925,428
Change in taxation payable3,083(1,891)
Change in trade and other receivables(111)3,263
Items classified as investing activities-(4,414)
Net cash from operating activities40,61445,714
During the 2019 year, distributions of $6,375,614 (2018: $6,140,047) have been reinvested under the Distribution Reinvestment Plan
(DRP), which is excluded from investing and financing activities.

VITAL HEALTHCARE PROPERTY TRUST FINANCIAL STATEMENTS 2019
FIN-14FINANCIAL STATEMENTS
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
10 INVESTMENT PROPERTIES
2019
$000s
2018
$000s
Carrying value of investment property at the beginning of the year1,731,2471,376,243
Acquisition of properties25,158194,696
Capitalised costs34,56626,134
Capitalised interest costs633952
Net capitalised incentives(520)2,249
Foreign exchange translation difference(58,210)45,512
Change in fair value103,55685,461
Carrying value of investment property at the end of the year1,836,4301,731,247
Carrying value of investment property includes:
Fair value of investment properties1,836,4301,729,705
Income in advance-1,542
Carrying value of investment property at the end of the year1,836,4301,731,247
The capitalised costs consist of $23.4m relating to Australian investment properties and $11.3m relating to New Zealand investment
properties. The foreign exchange translation difference relates to Australian investment properties.
The Group holds the freehold title to all properties except the car parks at the rear of Ascot Hospital and Ascot Central. The total
value of leasehold property at 30 June 2019 was $3.6m (2018: $3.2m) representing 0.2% of the total investment properties portfolio
(2018: 0.2%). The weighted average lease length of leasehold property at 30 June 2019 was 19.8 years (2018: 0.8 years).
In the previous financial year Income in advance related to a termination payment received of $10.0m which was amortised over a five
year period to March 2019.
Investment properties are classified as Level 3 under the fair value hierarchy.
Investment properties are stated at fair value by independent valuers supported by market evidence of property sale transactions and
leasing activity. These valuations are reviewed by the Manager. The methods used for assessing the current market value are the
Direct Comparison, Discounted Cash Flow, Capitalisation of Contract and Market Income approaches and are unchanged from the
prior year. The principal assumptions in establishing the valuation include the capitalisation rate, occupancy and the weighted average
lease term to expiry (WALE) with the following table identifying the respective levels adopted by the Valuers within the Group’s
segment. Where significant development is in progress at a property, the cost of such works is carried at cost until the development
reaches practical completion stage. At this stage the project costs are rentalised at the respective agreed project yield, additional rent
is collected from the tenant and fair value is calculated on the new rent amount. The exception to this relates to project development
deeds that allow the additional rent to be collected from the tenant as development progresses, such as Wakefield Hospital. Fair value
is calculated based on the adjusted rent amount.
Generally, as occupancy and weighted average lease terms increase, yields firm, resulting in increased fair values for investment
properties.
Generally, as capitalisation rates and discount rates used in the valuation approaches decrease (firm), the fair value of the investment
property will increase, and vice versa.

FIN-15
10 INVESTMENT PROPERTIES (continued)
Fair valueMarket capitalisation rateOccupancyWALE
PropertiesLocation30 June 2019 Valuer
$000s
2019
$000s
2018
%
2019
%
2018
%
2019
%
2018
Years
2019
Years
2018
Australia
Abbotsford Private HospitalWest Leederville, Western AustraliaColliers International28,85828,3875.35.5100.0100.022.723.7
Belmont Private HospitalCarina Heights, QueenslandJones Lang LaSalle Australia76,11979,1575.35.3100.0100.016.717.7
Clover Lea Aged CareBurwood Heights, New South WalesErnst & Young13,48813,8667.07.0100.0100.016.717.7
Dubbo Private HospitalDubbo, New South WalesColliers International18,71617,6886.06.5100.0100.012.613.6
Eden RehabilitationCooroy, QueenslandErnst & Young26,76726,0515.85.8100.0100.018.519.5
Ekera Medical CentreBox Hill, VictoriaJones Lang LaSalle Australia30,32231,3355.86.092.194.23.12.1
Epworth Eastern HospitalBox Hill, VictoriaJones Lang LaSalle Australia180,763167,2505.05.0100.0100.020.821.9
Epworth Eastern Medical CentreBox Hill, VictoriaJones Lang LaSalle Australia39,73238,2145.35.5100.0100.08.59.3
Epworth RehabilitationBrighton, VictoriaJones Lang LaSalle Australia27,18527,1435.55.8100.0100.04.65.6
Fairfield Aged CareFairfield, New South WalesErnst & Young17,88018,3437.07.0100.0100.016.717.7
Gold Coast Surgery CentreSouthport, QueenslandCBRE14,53415,2867.27.263.269.20.91.6
Grafton Aged CareSouth Grafton, New South WalesCBRE11,29211,2467.27.5100.0100.017.818.8
Hamersley Aged CareSubiaco, Western AustraliaM312,54712,7747.27.2100.0100.016.717.7
Hirondelle Private HospitalChatswood, New South WalesErnst & Young26,84027,5145.55.5100.0100.022.923.9
Hurstville Private HospitalSydney, New South WalesColliers International77,58380,4676.36.3100.0100.022.823.8
Lingard Private HospitalMerewether, New South WalesErnst & Young149,937136,8605.55.8100.0100.026.722.7
Maitland Private HospitalEast Maitland, New South WalesValued Care103,51398,0675.55.8100.0100.018.519.5
Marian CentrePerth, Western AustraliaColliers International49,45649,0235.35.5100.0100.015.116.1
Mayo Private HospitalTaree, New South WalesJones Lang LaSalle Australia39,73239,0876.36.5100.0100.012.513.5
Mons Road Medical CentreWestmead, New South WalesErnst & Young34,92335,4845.85.894.596.93.64.6
North West Private HospitalBurnie, TasmaniaJones Lang LaSalle Australia24,25822,6556.06.3100.0100.017.418.4
Palm Beach Currumbin ClinicCurrumbin, QueenslandCBRE59,07655,6835.35.5100.0100.012.613.6
Rockingham Aged CareRockingham, Western AustraliaM36,7976,6827.27.5100.0100.016.717.7
South Eastern Private HospitalNoble Park, VictoriaValued Care62,78860,0505.35.5100.0100.021.722.7
Sportsmed ConsultingAdelaide, South AustraliaErnst & Young8,5638,0255.55.8100.0100.016.617.6
Sportsmed Hospital & ClinicAdelaide, South AustraliaErnst & Young61,75258,0855.55.8100.0100.015.916.9
Sportsmed OfficeAdelaide, South AustraliaErnst & Young4,7054,2586.06.5100.0100.016.617.6
The Hills ClinicKellyville, New South WalesJones Lang LaSalle Australia34,60934,7205.35.5100.0100.028.129.1
The Southport Private Hospital *Southport, QueenslandCBRE45,79747,6035.55.5100.0100.018.619.6
Toronto Private HospitalToronto, New South WalesValued Care41,98038,2445.86.0100.0100.023.524.5
1,330,5121,289,247
New Zealand
Apollo Health and Wellness CentreAlbany, AucklandColliers International New Zealand Limited28,00028,5006.16.194.291.56.47.0
Ascot CentralGreenlane, AucklandAbsolute Value39,00035,0005.66.1100.0100.04.42.6
Ascot Central Carpark (ground lease)Greenlane, AucklandAbsolute Value1,6251,5509.59.595.0100.04.12.1
Ascot Hospital & ClinicsGreenlane, AucklandAbsolute Value112,989106,0005.35.499.0100.018.217.6
Ascot Hospital Carpark (ground lease)Greenlane, AucklandAbsolute Value1,9751,6259.59.5100.0100.024.025.0
Boulcott Private HospitalLower Hutt, WellingtonJones Lang LaSalle New Zealand40,20038,4005.65.8100.0100.019.020.0
Bowen HospitalCrofton Downs, WellingtonErnst & Young51,30044,3005.55.5100.0100.028.529.5
Kensington HospitalWhangarei, NorthlandJones Lang LaSalle New Zealand20,10019,6506.06.0100.0100.027.028.0
Napier Health CentreNapier, Hawkes BayColliers International New Zealand Limited10,90010,8009.09.0100.0100.04.51.5
Ormiston HospitalFlatbush, AucklandAbsolute Value38,49735,2756.06.1100.0100.04.24.2
Royston HospitalHastings, Hawkes BayErnst & Young57,53653,8645.85.8100.0100.028.529.5
Wakefield HospitalNewtown, WellingtonErnst & Young33,07626,4075.55.5100.0100.028.529.5
435,198401,371
Properties held for development70,72039,087
TOTAL FAIR VALUE OF INVESTMENT PROPERTIES1,836,4301,729,7055.65.899.499.318.118.2
Income in advance-1,542
TOTAL CARRYING VALUE1,836,4301,731,247
* Formerly named Allamanda Private Hospital

VITAL HEALTHCARE PROPERTY TRUST FINANCIAL STATEMENTS 2019
FIN-16FINANCIAL STATEMENTS
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Fair valueMarket capitalisation rateOccupancyWALE
PropertiesLocation30 June 2019 Valuer
$000s
2019
$000s
2018
%
2019
%
2018
%
2019
%
2018
Years
2019
Years
2018
Australia
Abbotsford Private HospitalWest Leederville, Western AustraliaColliers International28,85828,3875.35.5100.0100.022.723.7
Belmont Private HospitalCarina Heights, QueenslandJones Lang LaSalle Australia76,11979,1575.35.3100.0100.016.717.7
Clover Lea Aged CareBurwood Heights, New South WalesErnst & Young13,48813,8667.07.0100.0100.016.717.7
Dubbo Private HospitalDubbo, New South WalesColliers International18,71617,6886.06.5100.0100.012.613.6
Eden RehabilitationCooroy, QueenslandErnst & Young26,76726,0515.85.8100.0100.018.519.5
Ekera Medical CentreBox Hill, VictoriaJones Lang LaSalle Australia30,32231,3355.86.092.194.23.12.1
Epworth Eastern HospitalBox Hill, VictoriaJones Lang LaSalle Australia180,763167,2505.05.0100.0100.020.821.9
Epworth Eastern Medical CentreBox Hill, VictoriaJones Lang LaSalle Australia39,73238,2145.35.5100.0100.08.59.3
Epworth RehabilitationBrighton, VictoriaJones Lang LaSalle Australia27,18527,1435.55.8100.0100.04.65.6
Fairfield Aged CareFairfield, New South WalesErnst & Young17,88018,3437.07.0100.0100.016.717.7
Gold Coast Surgery CentreSouthport, QueenslandCBRE14,53415,2867.27.263.269.20.91.6
Grafton Aged CareSouth Grafton, New South WalesCBRE11,29211,2467.27.5100.0100.017.818.8
Hamersley Aged CareSubiaco, Western AustraliaM312,54712,7747.27.2100.0100.016.717.7
Hirondelle Private HospitalChatswood, New South WalesErnst & Young26,84027,5145.55.5100.0100.022.923.9
Hurstville Private HospitalSydney, New South WalesColliers International77,58380,4676.36.3100.0100.022.823.8
Lingard Private HospitalMerewether, New South WalesErnst & Young149,937136,8605.55.8100.0100.026.722.7
Maitland Private HospitalEast Maitland, New South WalesValued Care103,51398,0675.55.8100.0100.018.519.5
Marian CentrePerth, Western AustraliaColliers International49,45649,0235.35.5100.0100.015.116.1
Mayo Private HospitalTaree, New South WalesJones Lang LaSalle Australia39,73239,0876.36.5100.0100.012.513.5
Mons Road Medical CentreWestmead, New South WalesErnst & Young34,92335,4845.85.894.596.93.64.6
North West Private HospitalBurnie, TasmaniaJones Lang LaSalle Australia24,25822,6556.06.3100.0100.017.418.4
Palm Beach Currumbin ClinicCurrumbin, QueenslandCBRE59,07655,6835.35.5100.0100.012.613.6
Rockingham Aged CareRockingham, Western AustraliaM36,7976,6827.27.5100.0100.016.717.7
South Eastern Private HospitalNoble Park, VictoriaValued Care62,78860,0505.35.5100.0100.021.722.7
Sportsmed ConsultingAdelaide, South AustraliaErnst & Young8,5638,0255.55.8100.0100.016.617.6
Sportsmed Hospital & ClinicAdelaide, South AustraliaErnst & Young61,75258,0855.55.8100.0100.015.916.9
Sportsmed OfficeAdelaide, South AustraliaErnst & Young4,7054,2586.06.5100.0100.016.617.6
The Hills ClinicKellyville, New South WalesJones Lang LaSalle Australia34,60934,7205.35.5100.0100.028.129.1
The Southport Private Hospital *Southport, QueenslandCBRE45,79747,6035.55.5100.0100.018.619.6
Toronto Private HospitalToronto, New South WalesValued Care41,98038,2445.86.0100.0100.023.524.5
1,330,5121,289,247
New Zealand
Apollo Health and Wellness CentreAlbany, AucklandColliers International New Zealand Limited28,00028,5006.16.194.291.56.47.0
Ascot CentralGreenlane, AucklandAbsolute Value39,00035,0005.66.1100.0100.04.42.6
Ascot Central Carpark (ground lease)Greenlane, AucklandAbsolute Value1,6251,5509.59.595.0100.04.12.1
Ascot Hospital & ClinicsGreenlane, AucklandAbsolute Value112,989106,0005.35.499.0100.018.217.6
Ascot Hospital Carpark (ground lease)Greenlane, AucklandAbsolute Value1,9751,6259.59.5100.0100.024.025.0
Boulcott Private HospitalLower Hutt, WellingtonJones Lang LaSalle New Zealand40,20038,4005.65.8100.0100.019.020.0
Bowen HospitalCrofton Downs, WellingtonErnst & Young51,30044,3005.55.5100.0100.028.529.5
Kensington HospitalWhangarei, NorthlandJones Lang LaSalle New Zealand20,10019,6506.06.0100.0100.027.028.0
Napier Health CentreNapier, Hawkes BayColliers International New Zealand Limited10,90010,8009.09.0100.0100.04.51.5
Ormiston HospitalFlatbush, AucklandAbsolute Value38,49735,2756.06.1100.0100.04.24.2
Royston HospitalHastings, Hawkes BayErnst & Young57,53653,8645.85.8100.0100.028.529.5
Wakefield HospitalNewtown, WellingtonErnst & Young33,07626,4075.55.5100.0100.028.529.5
435,198401,371
Properties held for development70,72039,087
TOTAL FAIR VALUE OF INVESTMENT PROPERTIES1,836,4301,729,7055.65.899.499.318.118.2
Income in advance-1,542
TOTAL CARRYING VALUE1,836,4301,731,247
* Formerly named Allamanda Private Hospital

FIN-17
11 INTEREST IN JOINT ARRANGEMENT
During the year the Group purchased a 50% share of an investment property for future development in Elizabeth Vale, SA. The
property has been purchased as Tenants in Common with NorthWest Healthcare Properties Australia Real Estate Investment Trust
and is subject to a Co-ownership Deed. The arrangement constitutes a joint operation whereby the Group recognises, in relation to its
interest in the joint operation, its share of assets and liabilities in the consolidated statement of financial position and share of revenue
earned and expenses incurred in the consolidated statement of comprehensive income. The Group accounts for the assets, liabilities,
revenues and expenses relating to its interest in the joint operation in accordance with the NZ IFRS standards applicable to the
particular assets, liabilities, revenues and expenses.
12 DERIVATIVE FINANCIAL INSTRUMENTS
2019
$000s
2018
$000s
Current assets
Foreign exchange derivative assets77363
Non-current assets
Interest rate derivative assets-856
Current liabilities
Interest rate derivative liabilities(502)(35)
Foreign exchange derivative liabilities(38)(425)
Non-current liabilities
Interest rate derivative liabilities(49,436)(14,444)
Total(49,899)(13,685)
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 (refer to Note 3.(k)). There have been no reclassifications between levels in the year ended
30 June 2019 (2018: nil).
Interest rate derivatives mature over the next ten years and have fixed interest rates ranging from 1.54% to 4.99% (2018: from 2.41%
to 4.99%).
2019
$000s
2018
$000s
Nominal value of interest rate swaps - AUD510,000490,000
Average fixed interest rate3.12%3.21%
Floating rates based on AUD BBSW1.45%2.07%
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 (refer to
Note 3.(k)). There have been no reclassifications between levels in the year ended 30 June 2019 (2018: nil).
2019
$000s
2018
$000s
Nominal value of foreign exchange contracts - AUD12,600-
Nominal value of foreign exchange options - AUD-150,000
Average foreign exchange rate0.95190.9095

VITAL HEALTHCARE PROPERTY TRUST FINANCIAL STATEMENTS 2019
FIN-18FINANCIAL STATEMENTS
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
13 DEFERRED TAX
The following are the major deferred tax liabilities and (assets) recognised by the Group, and the movements thereon during the
current and prior reporting years:
Interest rate
swaps
$000s
Revaluation
of investment
properties
$000s
Borrowings
$000s
Other
$000s
Total
$000s
At 1 July 2018(3,814)84,9406,344(674)86,796
Charge to profit and loss for the year(10,168)15,716-4916,039
Change in exchange rate-(3,533)-12(3,521)
Charge to other comprehensive income--1,553-1,553
At 30 June 2019(13,982)97,1237,897(171)90,867
At 1 July 2017(3,007)67,6147,136(24)71,719
Charge to profit and loss for the year(807)14,705-(63)13,835
Change in exchange rate-2,6212622,685
Charge to other comprehensive income--(794)(649)(1,443)
At 30 June 2018(3,814)84,9406,344(674)86,796
Significant estimates and judgements made in the determination of deferred tax (with an impact on current tax) include:
Deferred tax on depreciation – deferred tax is provided in respect of depreciation expected to be recovered on the sale of investment
property at fair value.
Deferred tax on changes in fair value of investment properties – deferred tax is provided on New Zealand-based properties for
depreciation recovery on the building components, being the taxable temporary difference. Deferred tax for Australian-based
properties is provided on the capital gains tax expected to be assessable on the land and building component from the sale of
investment properties at fair value. Investment properties are valued each year by independent valuers (as outlined in Note 10).
Deferred tax on fixtures and fittings – it is assumed that all fixtures and fittings will be sold at their tax book value.
14 TRADE AND OTHER RECEIVABLES
2019
$000s
2018
$000s
Trade receivables930749
Loss allowance(4)(69)
926680
Other receivables374509
Total trade and other receivables1,3001,189
2019
$000s
2018
$000s
Aged past due but not impaired trade receivables
0-30 days past due402337
31-60 days past due17453
61-90 days past due3781
beyond 90 days past due468
617539
2019
$000s
2018
$000s
Movement in the loss allowance
Balance at the beginning of the year697
(Decrease)/increase in allowance recognised in profit or loss(65)62
Balance at the end of the year469

FIN-19
14 TRADE AND OTHER RECEIVABLES (continued)
The Group has provided for 50% of all receivables over 90 days unless there is information suggesting that particular amounts are
recoverable. This amount increases to 100% of any receivable that is determined as not being recoverable. Trade receivables less than
90 days are provided for based on estimated non-recoverable amounts, determined by reference to relevant factors, conditions, and
information at reporting date including past default experience.
During the year the Group had a bad debt write off of $113,864 (2018: nil).
15 OTHER ASSETS
2019
$000s
2018
$000s
Current
Related party advance (refer to note 24)83,966-
Other2,9093,801
Total Current86,8753,801
Non-Current
Related party advance (refer to note 24)-43,956
Other79328
Total Non-current79343,984
16 UNITS ON ISSUE
2019
$000s
2018
$000s
Balance at the beginning of the year556,878538,469
Issue of units under Distribution Reinvestment Plan6,3766,140
Issue of units to satisfy Manager's incentive fee13,09512,314
Issue costs of units(49)(45)
19,42218,409
Balance at the end of the year576,300556,878
2019
000s
2018
000s
Reconciliation of number of units
Balance at the beginning of the year436,893428,562
Issue of units under the Distribution Reinvestment Plan2,9472,891
Units issued to satisfy Manager's incentive fee6,5065,440
Balance at the end of the year446,346436,893
The number of units on issue at 30 June 2019 was 446,346,087 (2018: 436,893,108). 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 30 August 2018, 6,505,957 units were issued against the 2018 Manager’s incentive fee of $13,095,308 (2018: 5,440,157 were
issued against the 2017 Manager’s incentive fee).
Capital risk management
The Group is subject to imposed capital requirements arising from the Trust Deed, which requires that 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% (2018: 50%)
of the fair market value of property at all times calculated to the New Zealand dollar equivalent. All banking covenants have been met
during the year.
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. There have been no material changes in the Group’s overall capital
risk management strategy during the year.

VITAL HEALTHCARE PROPERTY TRUST FINANCIAL STATEMENTS 2019
FIN-20FINANCIAL STATEMENTS
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
17 BORROWINGS
2019
$000s
2018
$000s
AUD denominated loans718,172664,374
NZD denominated loans17,2505,750
Borrowing costs(1,211)(1,412)
Total borrowings734,211668,712
Shown as:
Current--
Term734,211668,712
2019
$000s
2018
$000s
Total borrowing at the beginning of the year668,712401,879
Drawdowns during the year118,401249,909
Repayments during the year(23,517)-
Additional facility refinancing fee(308)(1,029)
Facility refinancing fee amortised during the year470468
Foreign exchange movement(29,547)17,485
Total borrowings at the end of the year734,211668,712
The Group has a syndicated revolving multi-currency facility with ANZ Bank New Zealand Limited, Australia and New Zealand Banking
Group Limited, Bank of New Zealand and National Australia Bank Limited.
20192018
TrancheA$mExpiryA$mExpiry
A125.031 Mar-21125.031 Mar-21
B200.031 Jul-22200.031 Jul-22
C100.030 Oct-20100.030 Oct-20
D100.030 Oct-20100.030 Oct-20
E175.020 Nov-21175.020 Nov-21
F
150.0
15 Jan-22
A$ Facility
850.0700.0
NZ$ Facility
20.0
30 Oct-20
20.0
30 Oct-20
On 15 February 2019 the Group entered into an expanded syndicated revolving multi-currency facility. An additional tranche of
A$150 million (Tranche F) has been provided, bringing the total facility to A$850 million and NZ$20 million.
The effective interest rate on the borrowings as at 30 June 2019 was 4.40% per annum (2018: 4.60%).
The contractual rate for the borrowings varies between the tranches from 2.33% to 2.85% (2018: 2.88% to 3.26%).
Borrowings are secured by a Security Trust Deed dated 1 April 2003 and as amended and restated on 26 June 2014. The Security
Provider comprises T.E.A. Custodians Limited (the Supervisor) in its capacity as nominee of the VHP Trustee as trustee 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 NorthWest Healthcare Australian Property Pty Limited in its capacity as trustee
for Vital Healthcare Australian Property Trust and Vital Healthcare Investment Trust.
The carrying values of these balances are approximately equivalent to their fair values because the loans have floating rates of
interest that reset every 90 days.
18 TRADE AND OTHER PAYABLES
2019
$000s
2018
$000s
Interest accrued on borrowings3,5462,860
Other creditors and accruals10,26914,105
Total trade and other payables13,81516,965

FIN-21
19 FINANCIAL RISK MANAGEMENT
Financial risk management
The Group’s activities expose it primarily to credit risk, market risk (interest rate risk and foreign exchange risk) and liquidity risk. The
Group’s overall risk management programme focuses on the unpredictability of financial markets and seeks to minimise potential
adverse effects on the Group’s financial performance. The Group uses financial derivatives to manage market risks. The use of
financial derivatives is governed by the Group’s policies approved by the Board of Directors, which provide written principles that are
consistent with the Group’s risk management strategy. The Group does not use derivative financial instruments for speculative
purposes.
Credit risk
The Group incurs credit risk from trade and other receivables (note 14), related party advances (note 24) and transactions with
financial institutions including cash balances (note 9), interest rate derivatives and foreign exchange derivatives (note 12). The Group is
not exposed to any concentrations of credit risk apart from the related party loan. The carrying amount of these financial assets best
represents the maximum exposure to credit risk at year end.
The risk associated with trade and other receivables is managed with a credit policy which includes performing credit evaluations on
all customers requiring credit. Generally collateral is not required. In addition, receivable balances are managed on an ongoing basis.
The Group does not hold any collateral in respect of balances past due.
The risk from financial institutions is managed by only entering into foreign exchange and interest rate derivative transactions and
placing cash and deposits with high credit quality financial institutions. The Group places its cash deposits with ANZ Bank New
Zealand Limited and Australia and New Zealand Banking Group Limited.
The risk associated with related party advances is managed through a diligence process where the recoverability of the advance is
assessed before the advance is made.
The Group assesses on a forward looking basis, the expected credit losses (ECL's) associated with its financial assets carried at
amortised cost. For trade receivables, the Group makes use of a simplified approach and records the expected credit loss as lifetime
expected credit losses. These are the expected shortfalls in contractual cash flows, considering the potential for default at any point
during the life of the financial instrument. The Group uses its historical experience, external indicators and forward looking information
to calculate the expected credit losses.
The impairment of trade receivables is assessed on a collective basis (grouped based on days past due) as they possess shared credit
characteristics. Details of the expected credit loss recognised in relation to trade receivables is disclosed in note 14.
For the related party advance, the Group recognises a lifetime ECL when there has been a significant increase in credit risk since initial
recognition. However, if the credit risk has not increased significantly since initial recognition, the Group measures the loss allowance
at an amount equal to a 12 month ECL. It has been assessed that there has been no significant increase in credit risk as the loan has
been repaid in full subsequent to balance date (refer note 23 subsequent events).
Interest rate risk
Interest rate risk arises from the variability in cash flows arising from floating rate bank loans. The Group’s policy is to convert a
portion of its floating rate debt to fixed rates using interest rate swaps to maintain 70% to 100% of its borrowings in fixed rate
instruments. At 30 June 2019, 72.5% of borrowings were at fixed rates as approved by the Board of Directors (2018: 79.8%). The
Group does not apply hedge accounting to interest rate swaps. Any gains or losses arising on revaluation are recognised immediately
in the statement of comprehensive income.

VITAL HEALTHCARE PROPERTY TRUST FINANCIAL STATEMENTS 2019
FIN-22FINANCIAL STATEMENTS
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
19 FINANCIAL RISK MANAGEMENT (continued)
Interest rate repricing analysis
The following table indicates the effective interest rates and the earliest period in which financial instruments reprice. Fixed rate
balances are presented with the effect of hedging derivatives:
Weighted
effective
interest rate
%
Less than
1 year
$000s
1-2 years
$000s
2-3 years
$000s
3+ years
$000s
Total
$000s
30 June 2019
Cash and cash equivalents (floating
rates)
1.45%6,068---6,068
Borrowings (floating rates)2.49%(202,173)---(202,173)
Borrowings (fixed rates)4.16%(52,279)(20,912)(31,368)(428,690)(533,249)
(248,384)(20,912)(31,368)(428,690)(729,354)
30 June 2018
Cash and cash equivalents (floating
rates)
2.07%5,388---5,388
Borrowings (floating rates)2.72%(135,131)---(135,131)
Borrowings (fixed rates)3.86%(10,918)(54,591)(21,836)(447,648)(534,993)
(140,661)(54,591)(21,836)(447,648)(664,736)
Interest rate sensitivity
The Group’s sensitivity to interest rate risk can be expressed in two ways:
Fair value sensitivity
A change in interest rates impacts the fair value of the Group’s fixed rate assets and liabilities, and its interest rate swaps. Fair value
changes impact profit or loss or equity only where the instruments are carried at fair value. Accordingly, the fair value sensitivity to a
100 bps movement in interest rates (based on the assets and liabilities held at year end) is:
Impact on
profit/(loss)
2019
$000s
Impact on
unitholders'
funds
2019
$000s
Impact on
profit/(loss)
2018
$000s
Impact on
unitholders'
funds
2018
$000s
If interest rates had been 100 bps higher:29,47429,47429,68329,683
If interest rates had been 100 bps lower:(32,289)(32,289)(32,582)(32,582)
Cash flow sensitivity analysis
A change in interest rates would also impact on interest payments and receipts on the Group’s floating rate assets and liabilities.
Accordingly, the one-year cash flow sensitivity to a 100 bps movement in interest rates (based on assets and liabilities held at year
end) is:
Impact on
profit/(loss)
2019
$000s
Impact on
unitholders'
funds
2019
$000s
Impact on
profit/(loss)
2018
$000s
Impact on
unitholders'
funds
2018
$000s
If interest rates had been 100 bps higher:(1,849)(1,849)(1,294)(1,294)
If interest rates had been 100 bps lower:1,8491,8491,2941,294
Foreign exchange risk
Foreign exchange risk arises due to the exposure of Australian denominated assets and liabilities to movements in foreign exchange
rates. The Group minimises foreign exchange risk by matching as far as possible, its foreign denominated assets and associated
borrowings in the same currency and entering into foreign exchange derivatives where necessary.

FIN-23
19 FINANCIAL RISK MANAGEMENT (continued)
Foreign exchange exposure
The exposure to Australian dollars arising from foreign currency denominated assets and liabilities is:
2019
$000s
2018
$000s
Non-financial instrument assets and liabilities denominated in Australian dollars
Investment properties1,387,6611,327,104
Other assets107,288175,701
Deferred tax(93,097)(80,673)
Total non-financial instrument assets and liabilities1,401,8521,422,132
Non-derivative financial instruments
Cash and cash equivalents5,0023,211
Trade and other receivables1,111842
Trade and other payables(12,889)(17,401)
Borrowings(718,172)(664,374)
Total exposure from non-derivative financial instruments(724,948)(677,722)
Derivative financial instruments
Foreign exchange derivatives39(62)
Interest rate swaps(49,938)(13,624)
Total exposure from derivative instruments(49,899)(13,686)
Net exposure to currency risk627,005730,724
Foreign currency sensitivity
The following table illustrates the sensitivity of the profit after tax for the year and equity in regard to the exchange rates for the
Australian Dollar. It assumes a 10% change in exchange rate (2018: 10%) based on year end exposures:
2019
$000s
2018
$000s
If the New Zealand Dollar versus the Australian Dollar was 10% higher for the year:
Profit and loss12,3261,978
Other comprehensive income(76,240)(60,884)
Unitholders' funds(63,914)(58,906)
If the New Zealand Dollar versus the Australian Dollar was 10% lower for the year:
Profit and loss(15,065)(2,417)
Other comprehensive income93,18374,414
Unitholders' funds78,11871,997

VITAL HEALTHCARE PROPERTY TRUST FINANCIAL STATEMENTS 2019
FIN-24FINANCIAL STATEMENTS
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
19 FINANCIAL RISK MANAGEMENT (continued)
Liquidity risk
Liquidity risk represents the Group’s ability to meet its contractual obligations as they fall due. The Group’s policy is to maintain
unutilised credit facilities to meet contractual obligations when they fall due. The Group monitors its liquidity requirements on an
ongoing basis.
The Group has a multi-currency facility with ANZ Bank New Zealand Limited, Australia and New Zealand Banking Group Limited, Bank
of New Zealand and National Australia Bank of A$850.0m and NZ$20.0m (2018: A$700.0m and NZ$20.0m). As at 30 June 2019, after
translation to NZ$735.4m (2018: NZ$670.1m) had been drawn-down. The effective interest rate was 4.40% (2018: 4.60%).
Liquidity risk exposure
The following table details the Group’s exposure to liquidity risk based on the contractual undiscounted cash flows relating to financial
liabilities, foreign exchange contracts and interest rate derivatives:
Carrying
value
$000s
Contractual
cash flows
$000s
Less than 1 year
$000s
1-2 years
$000s
2-3 years
$000s
3+ years
$000s
30 June 2019
Non-derivative financial
instruments
Borrowings (excluding
borrowing costs)(735,422)(752,343)(8,246)(362,379)(172,383)(209,335)
Trade and other payables(13,815)(13,815)(13,815)---
(749,237)(766,158)(22,061)(362,379)(172,383)(209,335)
Derivative financial
instruments
Interest rate swaps(49,938)(50,800)(9,653)(9,422)(8,721)(23,004)
Foreign exchange
derivatives393939---
(49,899)(50,761)(9,614)(9,422)(8,721)(23,004)
30 June 2018
Non-derivative financial
instruments
Borrowings (excluding
borrowing costs)(670,124)(711,895)(13,384)(14,298)(366,960)(317,253)
Trade and other payables(16,965)(16,965)(16,965)---
(687,089)(728,860)(30,349)(14,298)(366,960)(317,253)
Derivative financial
instruments
Interest rate swaps(13,623)(14,760)(6,004)(4,934)(3,550)(272)
Foreign exchange
derivatives(62)(62)(62)---
(13,685)(14,822)(6,066)(4,934)(3,550)(272)

FIN-25
19 FINANCIAL RISK MANAGEMENT (continued)
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 performs an effectiveness test on the hedges 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 directly in other comprehensive income. Any ineffective portion is recognised in profit or loss. For a derivative instrument to
be classified and accounted for as a hedge there must be:
•an economic relationship between the hedged item and the hedging instrument;
•the effect of credit risk does not dominate the value changes that result from that economic relationship; and
•the hedge ratio of the hedging relationship is the same as that resulting from the quantity of the hedged item that the Group
actually hedges and the quantity of the hedging instrument that the Group actually uses to hedge that quantity of hedged item.
There has been no ineffectiveness loss on the net investment hedges during the year ended 30 June 2019 (2018: NZ$145,455). The
face value of hedging instruments designated in net investment hedges is:
2019
$000s
2018
$000s
Borrowings125,471131,019
Foreign exchange derivatives (nominal amount)-163,773
Categories of financial instruments
The Group’s financial instruments are classified as:
Financial assets
at amortised
cost
$000s
Financial
liabilities at
amortised cost
$000s
Financial
assets at fair
value through
profit or loss
$000s
Financial
liabilities at fair
value through
profit or loss
$000s
30 June 201994,243(748,026)77(49,976)
30 June 201854,334(685,677)1,219(14,904)
Cash, cash equivalents, trade and other receivables, trade and other payables, borrowings and related party advances
The carrying values of these balances are approximately equivalent to their fair values because of their short terms to maturity.
As a result of the transition to IFRS 9 Financial Instruments, cash and trade and other receivables, which were previously classified as
"loans and receivables", are now classified in the "financial assets at amortised cost" category. There have been no changes to
measurement as a result of the transition.
20 INVESTMENT IN SUBSIDIARIES
The Trust has control over the following subsidiaries:
Holding
Name of subsidiaryPrincipal activity
Place of
incorporation
and operation20192018
Vital Healthcare Australian Property Trust *Property investmentAustralia100%100%
Vital Healthcare Investment Trust **Property investmentAustralia100%100%
Vital Healthcare Property LimitedProperty investmentNew Zealand100%100%
Colma Services LimitedHolding companyNew Zealand100%100%
* Vital Healthcare Australian Property Trust is a 100% owned subsidiary of Vital Healthcare Property Limited and Colma Services Limited owns 0.0%
.
** Vital Healthcare Investment Trust is a 99.9% owned subsidiary of Vital Healthcare Property Limited and is 0.1% owned by Colma Services Limited.
The subsidiaries have the same reporting date as the Trust.

VITAL HEALTHCARE PROPERTY TRUST FINANCIAL STATEMENTS 2019
FIN-26FINANCIAL STATEMENTS
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
21 COMMITMENTS
The property rental income 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:
2019
$000s
2018
$000s
Capital commitments
The Group was party to contracts to purchase or construct property for the following amounts:222,2139,183
2019
$000s
2018
$000s
Not later than one year98,63298,157
Later than one year and not later than five years432,696433,381
Later than five years833,808899,911
1,365,1361,431,449
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 1.23.2 The bank bond required by the Trust for listing on the NZSX is $50,000.
22 CONTINGENCIES
There were no contingencies as at 30 June 2019 (2018: nil)
23 SUBSEQUENT EVENTS
On 8 August 2019 a final cash distribution of 2.1875 cents per unit was announced by the Trust. The Record Date for the final
distribution is 12 September 2019 and a payment is scheduled to unitholders on 26 September 2019. There will be 0.6725 cents per
unit of imputation credits attached to the distribution.
On 2 August 2019 the related party advance to NWH Australia Asset Trust (NWHAAT) of A$80.3m as disclosed in note 24 was repaid
in full.
24 RELATED PARTY TRANSACTIONS
The Manager
The Trust is managed by NorthWest Healthcare Properties Management Limited (the "Manager").
The Manager is a wholly owned subsidiary of NWI Healthcare Properties LP (NWIHLP). The ultimate parent of NWIHLP is Toronto
listed NorthWest Healthcare Properties Real Estate Investment Trust (NW REIT). NW REIT holds an interest in the Trust through its
holding of approximately 24% of the units. The Manager is also related to the Trust and its subsidiaries as the Manager of the Trust.
Other related parties by virtue of common ownership and/or ownership and/or directorship to the Manager of the Trust include
Australian Properties Limited and NorthWest Healthcare Australian Property Proprietary Limited (formerly Vital Healthcare
Australian Property Pty Limited).
Remuneration of the Manager
The Trust paid management fees to the Manager. The basis for the calculation of management and incentive fees is stipulated in the
Trust Deed.
The base management fees have been charged at 0.75% per annum 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 is
10% of the amount of the increase with payment being made by way of subscribing for new units.
On 1 April 2019 a revised basis for management fees was outlined setting out a tiered basis for charging the base management fees
including a provision for charging certain specified activity and service fees (see later). This revised basis remains subject to
unitholders approving amendments to the Trust Deed to reflect the outlined fees, with such approval expected to be obtained pre
31 October 2019. Should unitholders not approve such an amendment then the calculation of management and incentive fees will
remain as currently stipulated in the Trust Deed.

FIN-27
24 RELATED PARTY TRANSACTIONS (continued)
Remuneration of the Manager (continued)
In the intervening period the Manager has agreed to procure that the fees charged will not exceed those that would have been charged
if the amendments had been effective from 1 April 2019 (other than in respect of the incentive fee). In performing the calculation of
the existing Trust Deed fee structure compared to the proposed fee structure the outcome is that the management fees being charged
are as per the existing fee basis.
Transactions with related parties include:
2019
$000s
2018
$000s
Fees expensed
Management fees13,83911,856
Manager's incentive fees12,07713,096
Strategic transaction fees2,834-
Property management fees(b)214200
AFSL fee834781
Total fees expensed29,79825,933
Fees capitalised
Service fees
- Acquisition fees(d)2221,342
- Development management fees(e)1,208807
Total fees capitalised1,4302,149
Total fees31,22828,082
The management and incentive fees shall not exceed an amount equal to 1.75% per annum of the gross value of the Trust. Based on
the total fees charged (excluding expenses reimbursed) as at 30 June 2019 this was 1.62% (2018: 1.58%)
Expenses reimbursed
Strategic - Capital charge3,259-
Strategic - Financing cost2,387-
Third party costs recovered30045
Total expenses reimbursed5,94645
Total transactions with related parties37,17428,127
As detailed further under the heading "Acquisition of an interest in Healthscope Limited" below, the strategic - capital charge and
strategic - financing costs, were approved by the independent directors of the Manager under section 173(2)(b) of the Financial
Markets Conduct Act 2013.
2019
$000s
2018
$000s
Amounts outstanding
Manager's incentive fees12,07713,096
Expenses charged by NorthWest Healthcare Properties Management Limited143-
Expenses charged by NorthWest Healthcare Australian Property Proprietary Limited1,95717
14,17713,113
From 1 April 2019, the revised basis for management fees to be adopted would give rise to the base management fees being charged
at:
•0.65% per annum of the monthly average of the gross value of the assets of the Trust up to $1 billion,
•0.55% per annum of the monthly average of the gross value of the assets of the Trust between $1 billion and $2 billion,
•0.45% per annum of the monthly average of the gross value of the assets of the Trust between $2 billion and $3 billion, and
•0.40% per annum of the monthly average of the gross value of the assets of the Trust over $3 billion.

VITAL HEALTHCARE PROPERTY TRUST FINANCIAL STATEMENTS 2019
FIN-28FINANCIAL STATEMENTS
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
24 RELATED PARTY TRANSACTIONS (continued)
Remuneration of the Manager (continued)
The gross value of the assets of the Trust for the base management fee are calculated for the quarter ended on the last day of that
month.
From 1 April 2019, activity services and activity fees would be charged based on the following categories:
a) Leasing
Vital pays the Manager leasing fees where the Manager has negotiated leases instead of or alongside a real estate agent. Consistent
with general market rates, these fees are charged at 11% of the annual rental for terms of 3 years or less (to a minimum of $2,500),
12% of the annual rental for terms of 3 years, and 12% plus an additional 1% for each year greater than three years (to a maximum of
20%.).
Lease renewals are charged at 50% of a new lease. Structured rent reviews or market reviews which do not result in a rental increase
are charged an administration fee of $1,000. Open market reviews are charged at 10% of the rental increase achieved in the first year.
Leasing fees are capitalised to the respective investment or development property in the Statement of Financial Position and
amortised over the term of the life of the lease.
b) Property management
Vital pays the Manager property management fees where the Manager acts as the property manager instead of or alongside a real
estate agent. These fees are charged at 1% - 2% of gross income depending on the type of property. These fees are expensed through
direct operating expenses in the year in which they arise.
c) Facilities management
Vital pays a facilities management fee on a cost recovery basis to the Manager. These fees are expensed through direct operating
expenses in the year in which they arise.
From 1 April 2019, additional services and costs would be charged based on the following categories:
d) Acquisitions
Vital pays fees to the Manager for managing the due diligence, financing, legal aspects and settlement of the purchase of properties
instead of or alongside a real estate agent. These fees are charged at 1.5% of the purchase price. Acquisition fees are capitalised to
the respective investment or development property in the Statement of Financial Position.
e) Development management
Vital pays development management fees where the Manager acts as a development manager on Vital developments. These fees are
charged at 4% of the committed spend, exclusive of land. Development management fees are capitalised to the respective investment
or development property in the Statement of Financial Position.
f) Project management
Vital pays project management fees to the Manager for managing capital expenditure projects, instead of engaging an external project
manager. These fees are charged at 2% of the committed spend where the Manager is the project lead and 1% of committed spend
where the Manager has an oversight role. Project management fees are capitalised to the respective property in the Statement of
Financial Position.

FIN-29
24 RELATED PARTY TRANSACTIONS (continued)
Remuneration of the Manager (continued)
Included in the third party costs charged by NorthWest Healthcare Properties Management Limited were amounts paid to the
following:
ExpensesAmounts Outstanding
2019
$000s
2018
$000s
2019
$000s
2018
$000s
Andrew Evans505050-
Graham Stuart50n/a50n/a
Claire Higgins10540105-
Graeme Horsley-40--
Other Related Parties
NWH Australia AssetCo Pty Limited as trustee of NWH Australia Asset Trust (NWHAAT) is a wholly owned subsidiary of NWI
Healthcare Properties LP.
Acquisition of an Interest in Healthscope Ltd (“HSO”) by NWHAAT
Derivative contract
During the 2018 and 2019 financial years, NWHAAT entered into derivative contracts with Deutsche Bank AG ("DB") which gave
NWHAAT an economic interest equivalent up to 13% of the outstanding shares of HSO by way of a forward contract to acquire HSO
shares and an option contract (the terms of which minimise the underlying margin requirements associated with the forward
contract). The forward gave NWHAAT the ability to acquire, and DB the obligation to deliver, a minimum of 231,387,330 HSO shares at
a price of A$2.36 per share. NWHAAT prepaid A$85.3 million of the A$415.1 million notional amount of the forward contract.
Under the forward contract NWHAAT was entitled to receive dividend equivalents declared by HSO and it paid variable interest on the
underlying embedded funding contained in the forward contract at Bank Bill Swap Bid Rate ("BBSY") plus 3% to 3.5%.
The zero cost option contract for 173,970,330 options limited the benefits to NWHAAT of HSO share price appreciation above A$2.60
and limited the exposure to HSO share price depreciation below A$2.00 down to A$1.25 per share. The option contract also provided
that NWHAAT will reimburse DB for its costs should DB be required to borrow HSO stock to fulfill its obligations under the forward
contract.
On 6 June 2019 the derivative was settled by DB, and the Group's 50% share of the settlement funds was received on 12 June 2019.
The total amount received in settlement of the derivative by Vital was A$6,176,171.
Related party loan
In accordance with the intention of the Joint Investment Policy, the Group had the benefit of participating in up to 50% of the
opportunity and agreed to jointly pay the costs and jointly share the benefits and risks of the mark to market risk of the arrangement
with DB . On 6 May 2018, the Group entered into an agreement with NWHAAT to advance up to A$41.0m to NWHAAT, of which A
$40.0m had been advanced as at 30 June 2018.
On 5 December 2018, the Group entered into an amended loan agreement with NWHAAT to advance up to A$81m, to NWHAAT. A
total of A$80.3m has been advanced under the loan agreement which is unsecured, repayable within 12 months from the date of the
amended agreement, and the Group is charging interest to NWHAAT at circa 4% p.a. on a monthly basis . The loan remained in place
at balance date with a repayment date of 5 December 2019, however, was repaid in full subsequent to balance date on 2 August 2019.

VITAL HEALTHCARE PROPERTY TRUST FINANCIAL STATEMENTS 2019
FIN-30FINANCIAL STATEMENTS
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
24 RELATED PARTY TRANSACTIONS (continued)
Other Related Parties (continued)
Fees and reimbursements
Due to the significant nature of the proposed HSO real estate transaction the Manager initially charged a prepaid acquisition fee
(HY19: $8.2m). This was subsequently amended to be a fee for the acquisition of the HSO derivative of $2.8m which was based on the
cost incurred and work performed by the Manager, plus a capital charge of $3.3m based on NW REIT (the ultimate owner of the
Manager) providing security to Deutsche Bank for all of the HSO derivative participation and a recharge of financing costs of $2.4m
which was charged based on the sharing of costs under the Joint Investment Policy. These fees recognise the significant time,
complexity of the transaction and resources the Manager had contributed pursuing this transaction.
During the period, Directors had exercised judgement in determining that those fees were capitalised, as the Group continued to make
further progress on the HSO transaction. On 10 May 2019 Vital announced that after due consideration, Vital had declined to
participate in the HSO real estate acquisition opportunity with NWHAAT. Vital would still participate in 50% of NWHAAT's derivative
position in the HSO shares including payment of associated fees. These arrangements, along with related financing, were to be settled
in accordance with their terms following the completion of the transaction.
Net strategic transaction costs, including interest income on the related party loan, incurred during the 2019 financial year totalled
$1.6m (2018: 3.2m). These net costs comprise a notional HSO dividend received along with the proceeds from the close out of the
HSO derivative. Against this were charges for fees, financing expenses, third party commissions, legal and interest expenses
representing the Group's share of third party costs of the HSO derivative. The related party amounts settled on a net basis with
NWHAAT.
As the Group has determined that the HSO derivative financing cost and capital charge were not payable to the manager for
management services under the Trust Deed, the Directors have applied judgement in approving those payments to NWHAAT under
section 173(2)(b) of the Financial Markets Conduct Act 2013, after considering expert advice, and provided a certificate to the
supervisor recording that fact.
2019
$000s
2018
$000s
During the year there have been transactions between the Trust and the Manager
Related party advance40,29343,673
Interest income2,672283
Strategic transaction costs
Healthscope dividend7,363-
Realised gain/(loss) on derivative6,128(114)
NorthWest derivative acquisition fee(2,834)-
HSO derivative (financing cost)(2,387)-
HSO derivative (capital charge)(3,259)-
Third party commission, interest and legal(9,284)(3,465)
Total strategic transaction costs(4,273)(3,579)
Net strategic transaction costs(1,601)(3,296)
Balances outstanding at the end of the year are unsecured
Amounts owing from related party (NWHAAT)83,96643,956
Amounts owing to related party (NWHAAT)-(3,517)

31
Independent Auditor’s Report
To the Unitholders of Vital Healthcare Property Trust
Opinion We have audited the consolidated financial statements of Vital Healthcare Property Trust and its
controlled entities (the ‘Group’ or ‘Trust’), which comprise the consolidated statement of financial
position as at 30 June 2019, and the consolidated statement of comprehensive income,
consolidated statement of changes in equity and consolidated statement of cash flows for the

year then ended, and notes to the consolidated financial statements, including a summary of
significant accounting policies.
In our opinion, the accompanying financial statements, on pages FIN 1 to FIN 30, present fairly,
in all material respects, the consolidated financial position of the Group as at 30 June 2019, and
its consolidated financial performance and cash flows for the year then ended in accordance with
New Zealand Equivalents to International Financial Reporting Standards (‘NZ IFRS’) and
International Financial Reporting Standards (‘IFRS’).
Basis for opinion We conducted our audit in accordance with International Standards on Auditing (‘ISAs’) and
International Standards on Auditing (New Zealand) (‘ISAs (NZ)’). Our responsibilities under those
standards are further described in the Auditor’s Responsibilities for the Audit of the Consolidated
Financial Statements section of our report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a
basis for our opinion.
We are independent of the Group in accordance with Professional and Ethical Standard 1
(Revised) Code of Ethics for Assurance Practitioners issued by the New Zealand Auditing and
Assurance Standards Board and the International Ethics Standards Board for Accountants’ Code
of Ethics for Professional Accountants, and we have fulfilled our other ethical responsibilities in
accordance with these requirements.
Other than in our capacity as auditor, we have no relationship with or interests in the Group.
Key audit matters Key audit matters are those matters that, in our professional judgement, were of most
significance in our audit of the consolidated financial statements of the current period. These
matters were addressed in the context of our audit of the consolidated fin ancial statements as a
whole, and in forming our opinion thereon, and we do not provide a separate opinion on these
matters.
Key audit matter How our audit addressed the key audit matter and results
Valuation of Investment Properties
The Group’s investment properties consist of health
sector properties totalling $1,836 million as at 30 June
2019. Revaluation gains on the Group’s investment
properties for the year ended 30 June 2019 of $104
million were recognised in profit or loss. Information
about the Group’s property portfolio and valuation are
set out in Note 10.
The valuation of investment properties is important to
our audit as determining the fair value requires
significant judgement and the balance represents the
majority of the total assets of the Group.
Investment properties are carried at fair value. Where
significant development is in progress at a property,
this is carried at cost, until the development is
sufficiently close to completion where fair value is
estimated with reference to expected future rental
streams and costs to complete the development.
The valuation of investment property is highly
dependent on forecasts and estimates including a
number of unobservable inputs to take into account
property-specific attributes.
The Group’s policy is to engage external valuers for no
more than two consecutive years per property as set
out in the Trust Deed, to perform valuations for each of
We have evaluated the appropriateness of the valuation of
investment property by performing the following:
Reviewing the external valuers’ valuation reports. We
evaluated the key metrics, including capitalisation rate,
market rent and contract rent on a property and portfolio
basis for year on year movements and assessed whether in
our judgement, the movements represented outliers to
investigate. We held discussions, on a sample basis, with the
valuers and challenged assumptions, including the possible
outliers identified.
Agreeing property specific information supplied to the
external valuer, including occupancy data, current rentals,
and lease terms, to the underlying records held by the
Group.
Evaluating the objectivity, independence and expertise of the
external valuers.
With respect to significant property developments:
owhere management has determined the
development is sufficiently close to completion,
obtaining evidence supporting management’s
estimates of the expected future rental cash flows
that will apply upon completion and the costs to
complete the development;
owhere property developments are carried at cost,
testing the cost incurred to date on a sample
basis.

32
the properties on an annual basis. The valuation
methods used for assessing the fair value include a
combination of direct comparison, discounted cash
flow, capitalisation of contract and market
capitalisation approaches.
The external valuers, amongst other matters, take into
consideration occupancy rates, weighted average lease
term to expiry (‘WALE’) and capitalisation rates.
Involving our valuation specialists to consider and challenge,
on a sample basis, the reasonableness of the assumptions
and valuation methodology applied, including comparing
assumptions to market data where available.
Related party transactions - pursuit of
Healthscope property assets
During the period, the Group together with Northwest
Healthcare Australia Asset Trust, a related party,
pursued the acquisition of certain Healthscope Limited
property assets.
The Group, ultimately, determined that it would not
participate in the transaction.
Information on the pursuit of the Healthscope property
assets is detailed in Note 24, including the transaction
background, the accounting treatment, judgement
applied for the related party transaction, related party
fees, reimbursement of costs and third party costs.
While the transaction did not eventuate, it is a Key
Audit Matter due to the involvement of related parties
and the judgement applied by the Board of Directors in
respect of how the fees and costs incurred in respect of
the transaction are considered under the Trust Deed.
We have evaluated the related party transactions in respect of the
pursuit of the Healthscope property assets, by performing the
following procedures:
Reviewing relevant minutes of board meetings and
management papers.
Obtaining management papers detailing the judgement
applied by the Board of Directors in determining whether the
fees and costs charged or reimbursed are in accordance with
the Trust Deed. We also reviewed independent advice
obtained by the Board of Directors and compared this to the
judgement applied by the Board of Directors.
Agreeing to supporting documentation a sample of the related
party transactions, including costs, cost reimbursment, fees
charged or income earned.
Assessing the adequacy of disclosures made in the
consolidated financial statements in relation to these related
party transactions.
Other information The Board of Directors are responsible on behalf of the Group for the other information. The other
information comprises the information in the Annual Report that accompanies the consolidated
financial statements and the audit report. The Annual Report is expected to be made available to
us after the date of this auditor's report.
Our opinion on the consolidated financial statements does not cover the other information and we
will not express any form of assurance conclusion thereon.
Our responsibility is to read the other information identified above when it becomes available and
consider whether the other information is materially inconsistent with the consolidated financial
statements or our knowledge obtained in the audit, or otherwise appears to be materially
misstated.
When we read the other information in the Annual Report, if we conclude that there is a material
misstatement therein, we are required to communicate the matter to the Board of Directors and
consider further appropriate actions.

Board of Directors’
responsibilities for the
consolidated financial
statements
The Board of Directors of the Manager is responsible on behalf of the Trust for the preparation
and fair presentation of the consolidated financial statements in accordance with NZ IFRS and
IFRS, and for such internal control as the Board of Directors of the Manager determines is
necessary to enable the preparation of consolidated financial statements that are free from
material misstatement, whether due to fraud or error.
In preparing the financial statements, the Board of Directors of the Manager is responsible on
behalf of the Trust for assessing the Group’s ability to continue as a going concern, disclosing, as
applicable, matters related to going concern and using the going concern basis of accounting
unless the Board of Directors of the Manager either intends to liquidate the Group or to cease
operations, or has no realistic alternative but to do so.
Auditor’s responsibilities
for the audit of the
consolidated financial
statements
Our objectives are to obtain reasonable assurance about whether the consolidated financial
statements as a whole are free from material misstatement, whether due to fraud or error, and to
issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of
assurance, but is not a guarantee that an audit conducted in accordance with ISAs and ISAs (NZ)
will always detect a material misstatement when it exists. Misstatements can arise from fraud or
error and are considered material if, individually or in the aggregate, they could reasonably be
expected to influence the economic decisions of users taken on the basis of these financial
statements.

33
A further description of our responsibilities for the audit of the consolidated financial statements is
located on the External Reporting Board’s website at:
https://www.xrb.govt.nz/standards-for -assurance-practitioners/auditors-responsibilities/audit-
report-1
This description forms part of our auditor’s report.
Restriction on use This report is made solely to the Trust’s unitholders, as a body. Our audit has been undertaken so
that we might state to the Trust’s unitholders those matters we are required to state to them in
an auditor’s 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
audit work, for this report, or for the opinions we have formed.
Silvio Bruinsma, Partner
for Deloitte Limited
Auckland, New Zealand
8 August 2019

---

DELIVERING VALUE
ANNUAL RESULTS 2019 | 8 August 2019

Contents
Page
Overview of Vital3
FY19 Highlights10
FY19 Financial Results12
Healthscope Recap 16
Revaluations 19
Portfolio Overview23
Acquisitions and Projects28
Balance Sheet and Capital Management36
Outlook41
Appendices43
PRESENTED BY:
Miles Wentworth
Interim Manager
Richard Roos
Exec Director, Portfolio
Stuart Harrison
Chief Financial Officer
Chris Adams
Exec Director, Projects
VITAL HEALTHCARE PROPERTY TRUST | ANNUAL RESULTS 2019
2

Overview of Vital

Vital Healthcare overview
VITAL HEALTHCARE PROPERTY TRUST| ANNUAL RESULTS 2019
4
VITAL IS A PURE PLAY, LISTED LANDLORD TO THE HEALTHCARE SECTOR
42
PROPERTIES
$1.93B
TOTAL ASSETS
99.4%
OCCUPANCY
18.1
YEAR WALE
35.3%
DEBT / ASSETS
2
3.6%
DISTRIBUTION YIELD
1
Vital Healthcare Property Trust (Vital) is an externally
managed specialist healthcare property investor that
owns a high quality portfolio of hospitals, medical office
buildings and aged care facilities throughout Australia
and New Zealand (i.e. a landlord to the health sector)
Vital is the only dedicated healthcare property entity
which is listed in Australia or New Zealand (NZX: VHP)
Vital has a defensive income proposition through quality
tenants, high occupancy, a long weighted average
lease term, and an attractive organic growth profile
through development activity and structured leases
Vital is externally managed by NorthWest Healthcare
Properties Management Limited, which is wholly owned
by a Canadian listed global healthcare real estate
specialist
(1)FY19 after-tax distribution per unit of 8.75 cents divided by the closing unit price as at 30 June 2019 of $2.46
(2)Calculated in accordance with the Vital’sTrust Deed and excludes A$80.3m related party loan which was repaid on 2 August 2019

Portfolio summary
VITAL HEALTHCARE PROPERTY TRUST| ANNUAL RESULTS 2019
5
$1.84B PORTFOLIO OF HEALTHCARE REAL ESTATE COMPRISING 42 INVESTMENT PROPERTIES, 139 TENANTS AND ~2,600 BEDS
GEOGRAPHIC DIVERSIFICATION OF PORTFOLIOTYPE OF PROPERTIES WITHIN PORTFOLIO
Vital has a scale portfolio of high-quality healthcare property across Australia and New Zealand

Outperformance
VITAL HEALTHCARE PROPERTY TRUST | ANNUAL RESULTS 2019
6
VITAL HAS OUTPERFORMED OVER THE MEDIUM AND LONGER TERM ON A COMPOUND TOTAL RETURN BASIS
Source: Bloomberg, Forsyth Barr
Total returns (change in unit price plus post-tax distributions) as at 30 June 2019
* S&P/NZX All Real Estate Index data commences 31 December 2004
Compound annual
return
1yr5yr10yr
Index
Inception*
Vital27.5%17.8%14.3%13.6%
S&P/NZX All Real Estate
Index
31.1%15.0%14.1%9.9%
Under / over performance-3.7%2.8%0.2%3.7%

Our structure –a unit trust
Vital is a unit trust, managed by NorthWest
Healthcare Properties Management
Limited, and supervised by Trustees
Executors Limited in accordance with the
Trust Deed
The Board of Directors is responsible for
the governance of Vital
Vital’sability to grow shareholder returns is
enhanced by NorthWest (a global
healthcare property specialist) as its highly
aligned manager owning 24.83% of Vital
Specialist team of circa 40 professionals
across New Zealand and Australia
VITAL HEALTHCARE PROPERTY TRUST| ANNUAL RESULTS 2019
7
VITAL IS A UNIT TRUST THAT IS EXTERNALLY MANAGED BY A LEADING GLOBAL HEALTHCARE REAL ESTATE INVESTOR AND MANAGER
Supervises Vital and ensures
compliance with its
requirements under the Trust
Deed
NorthWestHealthcare
Properties Management
Limited (Manager)
Board of Directors
(1)
Trustees Executors
Limited
(Supervisor)
Vital unitholders
Healthcare properties
Board comprises
2 Independent Directors and
2 NorthWest appointees
Management of Vital in
accordance with the
Trust Deed
100%
24.83%
75.17%
(1)The Independent Directors of Vital have a casting
vote in the event of an equality of votes

Overview of NorthWest –Vital’smanager
VITAL HEALTHCARE PROPERTY TRUST| ANNUAL RESULTS 2019
8
NORTHWEST: A FOCUSED HEALTHCARE REAL ESTATE INVESTMENT PARTNER
NZ$7.4B
+
Assets under management
Global scale, local relationships
Partner of choice for leading operators in each market it invests
Deep healthcare real estate expertise
180+ healthcare property professionals based in 3 of the largest
global healthcare markets
Execution excellence
15+ years of healthcare real estate investment, management
and development
Entrepreneurial culture, institutional capabilities
10+ year public company track record
A proven track record
Track record of delivering strong risk-adjusted returns for
investors
Scalable platform with embedded growth
Its operator relationships and existing portfolio provide a robust
acquisition and development pipeline

Why invest in Vital?
VITAL HEALTHCARE PROPERTY TRUST | ANNUAL RESULTS 2019
9
VITAL IS THE ONLY DEDICATED LISTED OWNER OF HEALTHCARE REAL ESTATE IN AUSTRALIA AND NEW ZEALAND
Healthcare is largely
a personal priority
rather than a
discretionary spend
High barriers to entry
with largely purpose
built facilities
DEFENSIVE
SECTOR
Ageing
demographics and
growing population
Rising life
expectancy
Improvements in
science, technology
and healthcare
HIGH DEMAND
GROWTH
$1.84B scale
portfolio
High 99.4%
occupancy
Long WALE of 18.1
years
HIGH QUALITY
PORTFOLIO
>NZ$279m
brownfield
developments over
the next 4 years
Weighted average
project yield of 6.1%
87% annual income
subject to structured
rent reviews
EMBEDDED VALUE
IN LEASES AND
PROJECTS
NorthWestis a
specialist global
healthcare property
investor and asset
manager
NZ$7.4B+
geographically
diverse asset base
SPECIALIST AND
EXPERIENCED
MANAGER
Delivering attractive risk adjusted returns to Vital unitholders

FY19 Highlights

Highlights
Like-for-like same currency rental growth
of 2.3%
Normalised NDI of $51.0m, +3.8%
AFFO of $51.0m, +3.0%
NTA of $2.31, +2.0%
Debt to gross asset ratio
1
of 35.3%, down
from 37.5% at 30 June 2018
FY19 total distributions of 8.75 cpu, +2.2%
Total return of 27.5% in FY19
VITAL HEALTHCARE PROPERTY TRUST| ANNUAL RESULTS 2019
11
VITAL HAS CONTINUED TO DELIVER VALUE AND REMAIN ON STRATEGY THROUGHOUT FY19
FinancialPortfolioAcquisitions and Projects
(1)Calculated in accordance with the Vital’sTrust Deed and excludes A$80.3m related party loan which was repaid on 2 August 2019
Property revaluations up $104m (up 6.0%)
Portfolio WACR firmed 15 bps to 5.61%
Renewed 32 leases with positive spreads
18.1 year WALE
99.4% occupancy
87.3% of leases with structured rent
reviews in FY2020
1.7% p.a. avg. lease expiry over next 10
years
NZ$25m of acquisitions being strategic
sites for future development
Started NZ$218m of return on cost projects
with an average return of 6.1%
NZ$61m committed project pipeline via
Wakefield Hospital stages 2 and 3
Additional opportunities may include
Elizabeth Vale and Ormiston health
precincts

FY19 Financial Results

Financial performance
VITAL HEALTHCARE PROPERTY TRUST| ANNUAL RESULTS 2019
13
STRONG PROPERTY LEVEL PERFORMANCE SUPPORTS SOLID NORMALISED DISTRIBUTABLE INCOME
Strong contribution from rent reviews,
project rentalisation, and acquisitions
drove strong property level results
Net distributable income normalised
for non-recurring activities in the year
Increase level of drawn debt and
increased margins due to renewed
facilities
See slide 18 “Healthscope Recap” for
further detail

Like for like property income performance
VITAL HEALTHCARE PROPERTY TRUST| ANNUAL RESULTS 2019
14
STRONG REVENUE GROWTH DRIVING POSITIVE CORE PORTFOLIO PEFORMANCE
Comparative like-for-like performance
In thelike for like portfolio:
Gross property income increased 2.2% on a same
currency basis, largely (99%) due to structured
reviews
Property expenses increased 4.8% on same
currency basis, largely relating to one-off non-
recoverable costs
Net property income increased 2.3% on a same
currency basis
(1)Includes rental income and recovery of property expenses from tenants

Normalised net distributable income
VITAL HEALTHCARE PROPERTY TRUST| ANNUAL RESULTS 2019
15
OUR NORMALISED OPERATING RESULTS
Non-recurring costs related to
corporate governance activities and
due diligence costs related to an
acquisition opportunities that did not
proceed
Non-recurring costs and interest
related to the Healthscope opportunity
Higher taxable income due to change
in New Zealand taxation on foreign
distributions
Roll-off of income in advance related
to fitoutat Ascot Hospital
(1)Movement in the value of interest rate swaps

Healthscope Recap

Healthscoperecap
Healthscope’sreal estate assets
represented an opportunity to acquire a
scale portfolio of high quality assetson
attractive lease terms with Australia’s
second largest private hospital operator
In May 2018, NorthWest and Vital agreed
to jointly pursue the acquisition and
subsequently both parties allocated
significant time, personnel and capital in
order to investigate and access these assets
As part of this process, NorthWest and
Vital jointly secured a strategic equity
position in the ASX listed entity
Healthscope(via derivative contracts) in
order to have an influence over the real
estate outcome during a complex takeover
process (with all income and costs related to
these contracts shared equally)
Given the complexity of the Healthscope
opportunity, NorthWestled the joint
pursuit of the transactionincluding
leveraging its scale and global presence to
unlock the real estate opportunity, as well as
utilising its relationships with those parties
involved in the takeover
The derivative contract required
deployment of capitalfunded jointly by
NorthWest and Vital. Risk was managed
through appropriate due diligence and a cap
& collar structure which limited both the
upside and downside risk of the position
Vital’scontribution of capital to the joint
derivative position was made via
NorthWest and was classified as a related
party loan in Vital’sfinancial statements
As at 30 June 2019, the value of the related
party interest bearing loan was A$80.3m
and was repaid in full on 2 August 2019
VITAL HEALTHCARE PROPERTY TRUST| ANNUAL RESULTS 2019
17
A MATERIAL OPPORTUNITY WAS ACTIVELY PURSUED BUT ULTIMATELY DECLINED
A$1.25B
Size of Heatlhscope
real estate portfolio
considered
A$625m
Vital’s50% share of
the opportunity

Healthscoperecap (continued)
As a result of the above efforts,NorthWest
entered into a conditional contract to
acquire 11 property assets (~A$1.25B)
and 50% of this portfolio of assets
(~A$625m) was available for Vital to
acquire alongside NorthWest on equivalent
terms (in line with the NorthWest and Vital
joint investment policy)
However, after significant consideration,
it was determined by Vital’sBoard of
Directors to not proceed
Declining to participate in this
opportunity was exceptionally difficult,
but taking into account a broad range of
considerations (including Vital’sinvestment
objectives, the structure of the transaction,
Vital’sprevailing cost of equity and market
feedback)
As part of this process, Vital incurred costs
to assess the opportunity as well as costs
and benefits from Vital’sshare of the
derivative contracts. A breakdown of these
costs is outlined below
VITAL HEALTHCARE PROPERTY TRUST| ANNUAL RESULTS 2019
18
A MATERIAL OPPORTUNITY WAS ACTIVELY PURSUED BUT ULTIMATELY DECLINED
Vital’s share of Healthscoperelated party net costs
(1)
($000s)
Expenses17,764
Dividend income received(7,363)
FV (gain) / loss on strategic transaction derivatives(6,128)
Total strategic transaction costs4,273
(Deduct) / Add:
Interest income on related party loan
(2)
(2,672)
Net strategic transaction costs1,601
(1)Refer to the Related Party Note 24 in the Statutory Financial Statement for a full breakdown
(2)Offset by a corresponding $2.6m interest expense in the Statement of Comprehensive Income

Revaluations

Annual revaluation summary
Revaluation Summary
Revaluation gain of $103.6m or 6.0%
77% of gain from Australian portfolio, 23% from New
Zealand
Portfolio WACR firmed 15 bps to 5.61% (Australia firmed
16 bps to 5.57%, New Zealand firmed 11 bps to 5.72%)
Metropolitan assets WACR 5.55%, regional assets WACR
5.74%
100% of Investment Properties were independently
valued. No property valued by the same valuer
consecutively for more than two financial years
Drivers
Continued demand for healthcare real estate, new
entrants, growing competition & capital allocation to the
sector
Increased transactional activity providing market evidence
of ongoing sector maturity
Speed of cap rate compression across the market
appears to be moderating
Robust risk adjusted returns in low interest rate
environment
Consistent rent growth and ongoing rental affordability a
supporting factor
Unique and attractive lease terms
Accretive capital projects
VITAL HEALTHCARE PROPERTY TRUST| ANNUAL RESULTS 2019
20
STRONG PROPERTY REVALUATION GROWTH

Analysis of cap rate movement
VITAL HEALTHCARE PROPERTY TRUST| ANNUAL RESULTS 2019
21
FURTHER CAP RATE COMPRESSION DRIVEN BY INVESTOR DEMAND FOR HEALTHCARE PROPERTY
Cap rate movement by asset type
Portfolio geographic diversification by value
Portfolio asset type by value
Cap rate movement by metro / regional location

Net tangible assets
VITAL HEALTHCARE PROPERTY TRUST| ANNUAL RESULTS 2019
22
REVALUATION GAINS HAVE DRIVEN POSITIVE NET TANGIBLE ASSET GROWTHPER UNIT
NTA per unit bridge
NTA per unit increase on higher
revaluation gains
Unrealisedcurrency translation losses
due to a stronger NZD/AUD exchange
rate at financial year end
Fair value loss on interest rate
derivatives put in place to hedge
borrowing rates

Portfolio

Portfolio composition
VITAL HEALTHCARE PROPERTY TRUST| ANNUAL RESULTS 2019
24
VITAL’SPORTFOLIO IS ATTRACTIVELY DIVERSIFIED ON A GEOGRAPHIC, SECTOR AND TENANT BASIS
Geographic diversificationSector diversificationTenant diversification
(1)
(1)As a percentage of rental income

Core portfolio metrics
VITAL HEALTHCARE PROPERTY TRUST| ANNUAL RESULTS 2019
25
5 YEAR TRENDS SHOW PORTFOLIO IN GREAT SHAPE -UNDERPINS LONG-TERM PERFORMANCE
Tenth consecutive year of
99%+ portfolio occupancy
Natural roll-off through
active engagement with
tenants
High degree of
confidence that future
expiries will be renewed
or replaced in advance
In FY2020, 90% of the
portfolio is subject to rent
reviews of which 97% are
structured

Lease expiry
VITAL HEALTHCARE PROPERTY TRUST| ANNUAL RESULTS 2019
26
LOW RISK EXPIRY PROFILE SUPPORTS SUSTAINABLE, PREDICTABLE AND DEFENSIVE CASH FLOWS
Lease expiries in FY20 and FY21 primarily reflect smaller tenancies at multi-tenant properties, with a high expectation of renewal, including:
•Ascot Hospital, Ascot Central, Ormiston Hospital, Epworth Eastern Medical Centre and EkeraMedical Centre.

Rent reviews
VITAL HEALTHCARE PROPERTY TRUST| ANNUAL RESULTS 2019
27
HIGH PERCENTAGE OF TOTAL RENT IS REVIEWED ANNUALLY WITH CPI OR STRUCTURED REVIEW MECHANISMS
Reviews by Geography
Rent reviews were completed
on 86% of leases in the
portfolio
Based on independent year-
end valuations, the portfolio
is approximately 1% under-
rented
Structured reviews
represented 99% of leases
reviewed in the year

Acquisitions and Projects

Acquisitions update
VITAL HEALTHCARE PROPERTY TRUST| ANNUAL RESULTS 2019
29
STRATEGIC SITE ACQUISITIONS
Strategic sites acquired
for future growth
(1)Represents portion of costs related to delayed settlement

Elizabeth Vale
Vital acquired a 50% interest (NorthWest acquired
the other 50%) in a strategic parcel of land in
Elizabeth Vale in North Adelaide for A$7.1m in
November 2018
This site is situated immediately opposite the Lyell
McEwin Hospital, a major tertiary hospital, and the
third largest public hospital in Adelaide
This acquisition provides Vital and NorthWest with
an opportunity to masterplan and construct a
significant co-located healthcare precinct, to
include a Carpark, Medical Centre and Hospital,
in a strategic location
Management expect any development to be
staged and over a 5 to 10 year period (estimated
to cost ~$50m at Vital’sinterest). Discussions with
potential tenants have commenced
The existing retail assets on the site will provide
income to Vital which is expected to cover holding
costs during the master planning phase and early
stages of development
VITAL HEALTHCARE PROPERTY TRUST | ANNUAL RESULTS 2019
30
STRATEGIC LAND ACQUIRED FOR PRECINCT DEVELOPMENT
Lyell
McEwin
Hospital
Elizabeth
Vale

Committed projects
VITAL HEALTHCARE PROPERTY TRUST| ANNUAL RESULTS 2019
31
BROWNFIELDS DRIVING VALUE-ADD OUTCOMES, PROVIDING ENHANCED EARNINGS GROWTH AND FURTHER IMPROVES ASSET QUALITY
(1)To 30 June 2019
(2)Stage 1 with a forecast development cost of $37m has commenced, Stages 2 and 3 for $61m are in the advanced planning phases
Lingard Day Surgery is currently
being built adjacent to Lingard
Private Hospital, to provide:
Three operating theatres
Two endoscopy suites
Basement carparks
Construction at Epworth Eastern
has commenced
Construction contract for Stage 1
($37m) at Wakefield Hospital
recently signed and commenced
construction in July 2019
Project yields represent a ~500bps premium over the New Zealand and Australian 10 year
government bond yields
Expansion of Hills facility, adding
26 beds, and refurbishment of
existing hospital has recently
commenced

Wakefield Hospital development
Vital and its hospital operating partner
AcurityHealth Group have appointed
Hawkins Construction for the $37m first
stage of a planned $98m three stage
redevelopment of Wakefield Hospital
The remaining two stages ($61m) will
provide an attractive pipeline of future
value
The new Wakefield Hospital will offer
patients access to some of the most
advanced medical services and
treatment in New Zealand
Stage 1 completion expected in the first
quarter of calendar 2021. Total project
time of four years.
VITAL HEALTHCARE PROPERTY TRUST | ANNUAL RESULTS 2019
32
THE PROJECT WILL FURTHER ENHANCE WELLINGTON’S PREEMINENT PRIVATEHOSPITAL
6.3%
RENTALISATION YIELD
NZ$98m
TOTAL INVESTMENT
30yr
LEASE TERM
1.5XCPI
ANNUAL
RENTAL ADJUSTMENTS
NZ$37m
Stage 1

Epworth Eastern Hospital expansion
Vital has entered into an agreement to
lease with Epworth HealthCare to build a
new 14 storey tower, interconnected with
the Fund’s Epworth Eastern Hospital and
Epworth will lease approximately 80% of
the expansion
This project will add an additional 5
operating theatres, 63 beds, an
emergency department and seven levels
of specialist consulting suites
Icon Construction have been appointed
as builder and construction has
commenced
Expected completion is late calendar
2021
VITAL HEALTHCARE PROPERTY TRUST | ANNUAL RESULTS 2019
33
THE PROJECT WILL DRIVE FURTHER OPERATIONAL BENEFITS AND EFFICIENCIES FOR EPWORTH TO MEET THE RISING DEMAND FOR HEALTHCARE
SERVICES IN THE CATCHMENT
30yr
LEASE TERM WITH RENTAL
ESCALATORS FOR THE
EPWORTH LEASE
A$126m
Forecast Project Cost
100%
FORECAST OCCUPANCY
~6%
RENTALISATION YIELD

Epworth Eastern Hospital expansion (continued)
VITAL HEALTHCARE PROPERTY TRUST | ANNUAL RESULTS 2019
34
THIS LATEST PROJECT IS A FURTHER EVOLUTION OF THE EPWORTH EASTERN PRECINCT
BOX HILL PUBLIC
HOSPITAL
EKERA MEDICAL
CENTRE
NEXT STAGE HOSPITAL
DEVELOPMENT SITE
BOX HILL
INSTITUTE
Epworth Eastern
expansion
Epworth Eastern Private
Hospital operating at
capacity with waiting
list of doctors that want
to operate
Box Hill Institute (education) has
collaboration arrangements with
Epworth Eastern
BOX HILL
INSTITUTE
CAMPUS
EASTERN
HEALTH ADMIN
BOX HILL HEALTH AND EDUCATION PRECINCT
MEDICAL
CENTRE
EPWORTH EASTERN
HOSPITAL
1
4
5
3
2
Public hospital initial
demand catalyst
Co-located Private Hospital
development attracts
specialists
Public and Private Hospitals
drive health precinct
Vital and Epworth announce
major expansion

Epworth Eastern Hospital expansion (continued)
VITAL HEALTHCARE PROPERTY TRUST | ANNUAL RESULTS 2019
35
80% PRE-COMMITMENT AND STRONG EXPRESSIONS OF INTEREST FOR THE BALANCE
Epworth HealthCare (Epworth), has
committed to lease approximately 80%
of the circa 11,000 sqmof NLA
Epworth’s rent will be calculated by
applying the contracted rate of ~6% to
the cost of the project for their share of
the building
Vital and Epworth have agreed to reset
Epworth’s lease term for the existing
hospital and their area within the new
building to a new 30 year lease term,
with annual rental reviews based on the
greater of 3% or CPI
We have strong expressions of interest
from medical practitioners for the
remaining 20% of the building at market
rental rates
When complete the overall campus will
have 286 inpatient beds, 15 operating
theatres, an emergency department,
radiotherapy and significant onsite
doctor consulting space
Expansion:
KeytenantEpworth HealthCare
Operating theatres5
Beds63
StatusProject commenced
Forecasttotal costs
(incl. land)
A$126m
Rentalisationyield~6%
Expected completionLatecalendar 2021

Balance Sheet and Capital Management

Balance sheet
VITAL HEALTHCARE PROPERTY TRUST| ANNUAL RESULTS 2019
37
SOLID POSITION
Investment properties increased
materially due to revaluation gains
(15bps cap rate firming,
development margin on projects
and rent reviews)
Manager’s incentive fee paid in
units
Distribution Reinvestment Plan
provided to unitholders at a 1%
discount to market
(1)Calculated in accordance with Vital’sTrust Deed and excludes A$80.3m related party loan which was repaid on 2 August 2019 and used to repay bank debt.

Debt levels
VITAL HEALTHCARE PROPERTY TRUST | ANNUAL RESULTS 2019
38
CURRENT GEARING LEVELS REFLECT VITAL’SUNIQUE LONG-TERM STRUCTURED CASH FLOWS IN A DEFENSIVE SECTOR
35.3%
(1)
DEBT / ASSETS
Vital’sdebt is 35.3%
1
on a debt to total assets basis
Vital operates in a defensive sector with unique demand drivers (ageing and
growing population, technology driving increased demand) supporting the
ongoing need for quality healthcare property assets. In addition, Vital has
A WALT of 18.1 years
Occupancy at 99.4%
High quality tenants that are performing well
Vital has no peers on either the ASX or NZX, current debt levels deemed
prudent in light of the above factors
Board comfortable with debt levels and headroom
50%
TRUST DEED
COVENANT
(1)Calculated in accordance with Vital’sTrust Deed and excludes A$80.3m related party loan which was repaid on 2 August 2019

Debt maturity
VITAL HEALTHCARE PROPERTY TRUST| ANNUAL RESULTS 2019
39
UTILISING THE AVAILABLE HEADROOM AND ADDING CAPACITY
Debt maturity schedule
Bank Facilities30 Jun 201930 Jun2018
Debt to gross assets (Trustdeed)35.3%
(1)
37.5%
Bank loan to value ratio –actual35.5%
(1)
38.7%
Bank loan to value ratio –covenant50.0%50.0%
Weighted average duration to expiry2.2 years2.1 years
Headroom available$257m
(1)
$114m
(1)Proforma$A80.3m related party loan which was repaid on 2 August 2019
Trust deed debt ratio is based on total borrowings as
a percentage of the gross asset value of the Trust
Bank covenant LVR is based on total borrowings as a
percentage of the secured property value as
determined by external valuers

Interest rate hedging profile
VITAL HEALTHCARE PROPERTY TRUST| ANNUAL RESULTS 2019
40
COST OF DEBT WELL HEDGED, MANAGING RISK
Hedging profile
Rates
30 Jun
2019
30 Jun
2018
Weightedaverage cost of debt4.40%4.60%
Weightedaverage fixed rate (exc’lline and margin)3.12%3.21%
Weightedaverage fixed rate duration6.4 years7.0 years
% of drawn debt fixed73%80%
Fixed rates exclude line fees and margin
Low interest rate environment has
provided opportunity to lock in
favourablelong-term fixed rates

Outlook

Outlook
VITAL HEALTHCARE PROPERTY TRUST | ANNUAL RESULTS 2019
42
ATTRACTIVE OUTLOOK WITH CONTINUED VALUE CREATION
Effectively manage the development pipeline including A$126m Epworth Eastern project and NZ$37m stage 1
Wakefield Hospital project
Progress master planning and feasibilities for longer dated projects
Evaluate capital recycling opportunities via selected non-core asset sales
Consider value adding acquisition opportunities including in aged care
Unit Holders to consider positive changes to the Manager’s fee structure and changes to governance at the AGM
(1)
Search for a permanent CEO / Fund Manager has been initiated, an appointment is expected by the end of the 2019
calendar year
FY20 confirmed distribution of at least 8.75cpu
(1)Refer to slide 47 for further details of the proposed fee structure

Appendices

Net property income
VITAL HEALTHCARE PROPERTY TRUST| ANNUAL RESULTS 2019
44
ACQUISITIONS, DEVELOPMENTS AND RENT REVIEWS WERE KEY DRIVERS OF GROWTH
AcquiredNZ$220m of property in the last
24 months at a weighted average yield of
~5.7%
InvestedNZ$65m in projects over last 24
months at a weighted average yield of ~7%
Rent reviews completed at an annualised
rate of 2.2%
Leasing activity completed at an
annualisedrate of 5.6% on strong market
rent reviews at our NZ properties
Net property income bridge
(NZ 000’s)

Adjusted funds from operations
VITAL HEALTHCARE PROPERTY TRUST| ANNUAL RESULTS 2019
45
CONSERVATIVE PAYOUT RATIO

Movement in investment property
VITAL HEALTHCARE PROPERTY TRUST| ANNUAL RESULTS 2019
46
REVALUATIONS KEY DRIVER OF GROWTH
Investment property bridge
Acquisitions: Purchased
•Ormiston Land (NZ$9.4m)
•50% interest in Elizabeth Vale (NZ$7.6m
1
), and
•Strategic land adjacent to existing properties (NZ$8.2m)
Capital additions: Spent $34.5m on active projects and
$1.4m on maintenance capital expenditures
Fair Value: Cap rate compressed 15bps, crystalisedgains
on projects post-completion (see valuation section for
further details)
Foreign Exchange:Period end NZD/AUD exchange rate
increased to 0.9564 from (0.9097 in the prior year).
(NZ 000’s)
1. NZ$7.6m is Vital’s50% share

Proposed new fee structure
In April 2019, the Independent Directors of
Vital announced a conditional agreement on
a new fee structure
The new structure has the following key
elements:
•Moving to a tiered base fee
•Moving to an incentive fee based on the
change in Net Tangible Assets
•Activity based fees at market rates
The Independent Directors of Vital believe
that this structure is in the best interests of,
and on balance, fair and reasonable to
unitholders
The proposed changes will be put to a
meeting of unitholders for approval at the
AGM
NorthWest will not vote on the fee related
resolutions
VITAL HEALTHCARE PROPERTY TRUST| ANNUAL RESULTS 2019
47
Vital fee structure
CurrentProposed
Base fee structure0.75%
0.65% up to $1B
0.55% up to $2B
0.45% up to $3B
0.40% thereafter
Base fee calculation
basis
Average gross value of the TrustAverage gross value of the Trust
Performance fee
10% of the average annual increase in
total assets over the past three years
10% of the average annual increase in
NTA over the past three years
Activity based fees
Costs associated with a successful
acquisition or divestment (cap of 1.75% of
total assets) and some development
management fees
Acquisition and disposition, new leases,
renewals, rent review, property
management, facilities management,
development, project management at
market rates
A NEW FEE STRUCTURE HAS BEEN AGREED WITH VITAL’SINDEPENDENT DIRECTORS AND WILL BE PUT TO UNITHOLDERS AT THE AGM

Portfolio overview
VITAL HEALTHCARE PROPERTY TRUST| ANNUAL RESULTS 2019
48
$1.84B PORTFOLIO OF HEALTHCARE REAL ESTATE COMPRISING 42 INVESTMENT PROPERTIES AND ~2,600 BEDS

Glossary
VITAL HEALTHCARE PROPERTY TRUST| ANNUAL RESULTS 2019
49

Disclaimer
VITAL HEALTHCARE PROPERTY TRUST| ANNUAL RESULTS 2019
50
This presentation has been prepared by NorthWest Healthcare Properties Management Limited (the "Manager") as manager of the Vital
Healthcare Property Trust (the "Trust"). The details in this presentation provide general information only. It is not intended as investment , legal, tax
or financial advice or recommendation to any person and must not be relied on as such. You should obtain independent professional advice prior
to making any decision relating to your investment or financial needs.
This presentation may contain forward-looking statements. Forward-looking statements can include words such as “expect”, “intend”, “plan”,
“believe”, “continue” or similar words in connection with discussions of future operating or financial performance or conditions. The forward-looking
statements are based on management's and directors’ current expectations and assumptions regarding the Trust’s business, assets and
performance and other future conditions, circumstances and results. As with any projection or forecast, forward-looking statements are inherently
susceptible to uncertainty and to any changes in circumstances. The Trust’s actual results may vary materially from those expressed or implied in
the forward-looking statements. The Manager, the Trust, and its or their directors, employees and/or shareholders have no liability whatsoever to
any person for any loss arising from this presentation or any information supplied in connection with it. The Manager and theTrust are under no
obligation to update this presentation or the information contained in it after it has been released. Past performance is no indication of future
performance.
8
th
August 2019

---

vhpt.co.nz

8 August 2019

Vital delivers a FY19 Normalised Net Distributable Income of
$51.0m up 3.8%
Highlights
 Gross rental income increased 7.9% to $101.1m, primarily driven by structured rent reviews
1
, completed
developments and prior year acquisitions
 Net Property Income up 7.7% to $97.7m following strong same property rental growth and expense containment
 Normalised
2
Net Distributable Income of $51.0m (FY18 $49.1m) an increase of 3.8%
 Distributions increased 2.2% to 8.75cpu, for a Normalised Net Distributable Income payout ratio of 76% and a
AFFO payout ratio of 76%
 Portfolio value increased to $1.8bn with occupancy of 99.4% and a weighted average lease term of 18.1 years
 Initiated $218m of projects with a weighted average return on cost of circa 6.1%
 Achieved revaluation gains of $103.6m, a 6.0% increase over the prior year
 Enhanced fee and governance changes proposed subject to a Unit Holder vote
 Delivered a FY19 total return to investors of 27.5%

Vital Healthcare Property Trust (“Vital”, NZX:VHP) today announced its 2019 audited full year results, with a statutory
net profit after tax of $93.4m, down 6.6% from $100.1m in the prior year. This decrease was primarily due to non-cash
losses from interest rate derivatives ($36.3m) and higher income tax due to a change in legislation partially offset by
property revaluation gains.
Miles Wentworth, Vital’s Interim Manager, said “The Trust’s stable portfolio and financial position has delivered a solid
core operating result. In addition to seeing the valuation of existing properties increase to $1.8 billion we continue to
grow the portfolio through the recently announced projects at Wakefield Hospital in Wellington and Epworth Eastern in
Melbourne.”
“The healthcare real estate sector continues to experience rising tenant demand and provides Vital investors with a
property portfolio which has unique defensive qualities and strong investment characteristics”.
Financial results

Change

12 months to
30 June 2019
(NZ$m)
12 months to
30 June 2018
(NZ$m) NZ$m %
Gross rental income 101.1 93.7 7.4 7.9%
Net property expenses (3.4) (3.0) (0.4) (11.6%)
Net property income 97.7 90.7 7.0 7.7%
Finance expense (32.7) (23.2) (9.5) (41.0%)

1
Structured rent reviews have an either agreed annual CPI-based rate of increase or a minimum annual increase
2
Net Distributable Income (NDI) excluding extraordinary and one-off items

vitalhealthcareproperty.co.nz
Other income and expenses (29.5) (27.7) (1.8) (6.5%)
Strategic transaction income and expenses (4.3) (3.6) (0.7) (19.4%)
Normalised net distributable income 51.0 49.1 1.8 3.8%
AFFO 51.0 49.5 1.5 3.0%
Statutory Profit 93.4 100.1 (6.7) (6.6%)

Revenue growth of $7.4m (up 7.9%) was a result of contributions from the structured rent reviews ($0.9m), completed
projects ($2.2m) and a full year contribution from prior year acquisitions ($4.6m).
Like for like property income increased 2.3% to $1.9m, on a same currency basis.
Normalised Net Distributable Income (“NDI”) for the year increased by 3.8% to $51.0m (2018: $49.1m) equating to
11.50 cents per unit (“cpu”).
Vital’s cash earnings (or AFFO) were above net distributable income on a cents per unit basis at 11.50 cpu. This
reflects adjustments made under the AFFO methodology, notable being the add back of the Healthscope related
transaction net cost of $4.3m and other non-recurring items.
Finance expenses increased from the prior year by $9.5m due to an increase in the drawn debt over the period as a
result of funds drawn to fund projects, acquisitions, and strategic land holdings and increased line and margin charges
on renewed bank facilities. This finance expense includes a $2.7m interest cost for the A$80.3m Healthscope
derivative loan (which was repaid post balance date). Interest income earned from NorthWest on this loan was an
equal offset and disclosed as interest income.
Other expenses were higher by $1.8m (6.5%), primarily as a result increased base management fees ($2.0m), non-
recurring costs related to corporate governance activities and due diligence costs for opportunities that did not
proceed ($1.0m) partially offset by lower incentive fees ($1.0m)
3
.
In FY19, there was $4.3m of transaction costs relating to Vital’s detailed due diligence on the potential acquisition of
an interest in the property of Healthscope Limited (discussed further below).
Allowing for the 2019 revaluation gains of $103.6m partially offset by negative net movements in interest rate
derivatives of $36.3m, Vital’s NTA increased to $2.31, an increase of 2.0% on the prior year NTA of $2.26.


Property Portfolio

12 months to 30 June 2019 12 months to 30 June 2018

CPI linked Non-CPI linked CPI linked Non-CPI linked
Rent reviews
undertaken
92 14 99 8
Average rental
growth
2.1% 9.1% 2.2% 8.7%

Vital’s core portfolio metrics remain consistently strong, with occupancy at 99.4% and the weighted average lease
expiry (“WALE”) was 18.1 years, and remains the longest WALE of any Australian or New Zealand listed REIT.
During the FY19 year, 106 leases of Vital’s 169 leases were subject to a review. The average increase in rental
income was 2.2%. The Fund had 2 leases expire (representing 0.25% of the portfolio), two-thirds of this space is
located at Ekera Medical Centre and will be used to temporarily decant tenants from Epworth Eastern during
construction of the East Tower.
The tail off of the Ascot Hospital fitout rental saw a comparable period reduction in the fitout rental of $573k.
140 leases, representing approximately 90% of total rent, are subject to review in the 2020 financial year, with 97% of
this income subject to structured or CPI based reviews.

3.3% of leases (by income) are due to expire in FY2020, management is confident of the renewal of these tenancies
on the same or better terms. Over the next 10 years Vital’s average annual lease expiry sits at 1.7%, which provides
long term earnings visibility.

3
The incentive fee is calculated in accordance with the Trust Deed and based on the average growth in the value of the Trust’s
assets over book value for the last three years. The incentive fee is payable by Vital issuing units to the Manager.

vitalhealthcareproperty.co.nz

Healthcare property valuations have continued to increase, and with the Healthscope transaction having settled with a
capitalisation rate of 5.0% (with a quad net lease), we have strong evidence of scale and quality portfolios trading at
circa 5% cap rates. We also continue to see significant inbound capital looking to secure a position in the Australia
and New Zealand healthcare real estate markets.
Miles Wentworth, Vital’s Interim Manager, said “We have seen further firming of capitalisation rates this year due to the
Healthscope transaction evidence. Vital’s weighted average capitalisation rate firmed by 15 bps to 5.61% and the
portfolio value increased to $1.8bn at 30 June 2019”.

Acquisitions and Projects
Portfolio additions during the 2019 financial year totalled $25.2m and consisted of:

Property Acquired

(NZ$m)
Ormiston Land 9.4
Elizabeth Vale, Adelaide
4
7.6
Other strategic land holdings in Australia 8.2
Total additions during the Year 25.2

These sites were purchased to facilitate future projects adjacent to Vital owned facilities or in Elizabeth Vale’s case
create a new co-located health precinct adjacent to Adelaide’s third largest public hospital.
Projects that are currently underway include:

Property
Forecast Total
Project Value ($m)

Spend to
30 June 2019 ($m)
New Zealand

Royston Hospital, Napier NZ$13 NZ$3.1
Wakefield Hospital (Stage 1), Wellington NZ$37 NZ$7.3

Australia

Epworth Eastern, Melbourne A$126 A$12.0
Lingard Day Surgery, Sydney A$26 A$15.3
The Hills, Sydney A$9 A$0.0

Total in NZD ($A converted at year end rate of
$0.9654)
NZ$211 NZ$39.0

Miles Wentworth, Vital’s Interim Manager, said “Recognising forecast ongoing healthcare demand, Vital has continued
to invest in land acquisitions adjacent to existing facilities to support and enhance long term value. Expansion project
commitments agreed during the year included Epworth Eastern, Wakefield Hospital and Lingard Day Surgery. The
value of these projects is $218m. Vital expects to continue with this investment strategy with a view to supporting the
long-term growth of our partners and the underlying assets.
Vital’s value-add project programme continues with projects currently underway at 5 hospitals.
“The brownfield development programme is an important component to Vital’s value add strategy. Currently
contracted forecast rentalised development yields of approximately circa 6.1% provide an attractive spread to Vital’s
current weighted average capitalisation rate of 5.61%. Brownfield development opportunities will continue to underpin
earnings sustainability, enhanced asset quality and long-term value add.”

Capital management
As at the end of the financial year the debt to total assets ratio was 38.1% (2018: 37.5%). With the post balance date
repayment of the A$80.3m loan by NorthWest, the debt to total assets reduced to 35.3%. With the defensive asset class,
unique demand drivers of healthcare, long weighted average lease term of 18.1 years, high occupancy (99.4%) and
high quality tenant base, the Fund has a very comfortable level of debt.

4
The purchase of Elizabeth Vale was purchase on a 50/50 basis with NorthWest Australia, NZ$7.6m is Vital’s 50% share

vitalhealthcareproperty.co.nz
For bank facility purposes the loan to valuation ratio was 41.3% (after allowing for certain strategic properties not subject
mortgages and the unsecured related party loan), reducing to 35.5% following the related party loan repayment.
Accordingly, Vital currently has approximately $257m of headroom under its debt facilities.
Vital’s all-in weighted average cost of debt as at 30 June 2019 was 4.40% (2018: 4.60%) with this decrease being
primarily a result of a decline in the floating rate.

Distributions
The 2019 full year distribution was 8.75 cpu, which was consistent with guidance and a 2.2% increase to the FY18
distribution.
This reflects a 76% payout ratio to the Normalised Net Distributable Income and a prudent 76% AFFO payout ratio.

The Board has confirmed that the 2020 financial year cash distribution will be at least 8.75 cpu.

Healthscope recap
In early 2018, Vital and NorthWest Healthcare Properties REIT (NWH REIT) agreed to jointly pursue the acquisition of
the Healthscope real estate opportunity. A derivative contract (with caps and collars to manage risk) was entered into
in regard to Healthscope shares to obtain influence over the real estate outcome in the proposed transaction.

After significant consideration, it was determined by Vital’s Board of Directors to not proceed in the Healthscope real
estate opportunity. Declining to participate in this opportunity was exceptionally difficult, but taking into account a
broad range of considerations (including Vital’s investment objectives, the structure of the transaction, Vital’s prevailing
cost of equity and market feedback).

As part of the derivative contract, a related party loan of A$80.3m was provided to NWH REIT as part of the derivative
contract. This loan was fully repaid post balance date
The cost to Vital in FY19 of investigating the $1.25 billion Healthscope transaction (Vital was considering a 50%
interest) was $4.3m.

Fees and Governance
On 1 April 2019 it was announced that a conditional agreement on a new governance and fees structure had been
reached between the Independent Directors and the Vital Manager’s parent, NorthWest Healthcare Properties REIT
(“NWH REIT”).
The proposed enhanced fee and governance amendments will be put to a unitholder vote at the AGM. Refer to the
appendix in the Results Presentation for the details of the proposed fee changes.

Outlook
Miles Wentworth, Vital’s Interim Manager, said “We have started the FY20 financial year in a strong position. Vital’s
investment thesis is backed by underlying long term trends and we continue to see strong demographic and
technological trends driving demand for healthcare services – especially those delivered from quality healthcare
infrastructure and by market leading operators, like those in Vital’s portfolio.”
“With the NorthWest team in this region consisting of over 40 professionals in Auckland, Melbourne and Sydney we
have further solidified our portfolio management capability, continuing to drive strong outcomes for Vital investors.”
“We continue to support the growth demands of our partners, which enables us to drive our operating, portfolio and
financial results, delivering sustainable distributions and creating long term value for investors” said Mr Wentworth.
The 2020 financial year will have a strong focus on the delivery of our two major projects at Wakefield and Epworth
Eastern.
Vital’s management team will present these results via a live webcast from 11.30 am NZ time today. Please refer to
our market release dated 6 August 2019 for details or click here.

vitalhealthcareproperty.co.nz
– ENDS -


ENQUIRIES
Miles Wentworth, Interim Manager
NorthWest Healthcare Properties Management Ltd, Tel +61 3 8656 1517, Email mwentworth@nwhpm.com.au
Stuart Harrison, Chief Financial Officer
NorthWest Healthcare Properties Management Ltd, Tel 09 973 7302, Email sharrison@nwhpm.com.au
Jason Kepecs, Director, Investments & Investor Relations
NorthWest Healthcare Properties Management Ltd, Tel 09 973 7303, Email jkepecs@nwhpm.com.au













































About Vital Healthcare Property:

Vital Healthcare Property Trust is an NZX-listed fund that invests in high-quality health and medical-related properties
in New Zealand and Australia. Our tenants are hospital and healthcare operators who provide a wide range of medical
and health services.

With a core focus on healthcare real estate, we understand and accommodate the needs of our healthcare tenants.
We operate in a niche segment of the property market, characterised by long weighted average lease terms and high
occupancy rates and with an ageing population across both countries, it’s also one that’s growing.

For more information, visit our website: www.vitalhealthcareproperty.co.nz