Vital Healthcare Property Trust/Announcement

Vital releases FY2019 Annual Report

Full Year Results25 September 2019VHPReal Estate

vitalhealthcareproperty.co.nz
26 September 2019

Vital releases FY2019 Annual Report

Vital Healthcare Property Trust has today provided the NZX with a copy of the Annual Report for the year ended 30
June 2019.

Unitholders have today been sent a copy of the:

- Annual Report for FY2019;

- Distribution Statement for the fourth quarter distribution for the financial year ended 30 June 2019.

A copy of the Annual Report can also be viewed at www.vitalhealthcareproperty.co.nz or a copy can be requested by
phoning 0800 225 264 or emailing enquiry@vhpt.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

---

ANNUAL REPORT 2019
DELIVERING
VALUE

VALUE OF PORTFOLIO
$1.8b
OCCUPANCY
99.4%
ONE YEAR TOTAL RETURN OF
27.5%
CONTENTS
2 About Vital
4 Highlights
6 Manager’s Letter to Unit holders
9 Adding Value
14 Property Portfolio
22 The Board
24 The Executive Team
26 Corporate Governance
33 Financial Statements
67 Unit Holder Information
69 Directory
01

About Us &
Investment Strategy
ABOUT VITAL
Vital Healthcare Property Trust (Vital, the Trust) is an NZX-listed
investment fund (NZX:VHP) that invests in high-quality health and
medical-related properties in New Zealand and Australia. The Trust is
externally managed by NorthWest Healthcare Properties Management
Limited, a subsidiary of Toronto Stock Exchange-listed NorthWest
Healthcare Properties REIT.
The portfolio of 42 properties is valued at more than NZ$1.8B with
~76% (by value) located in Australia and the balance in New Zealand.
The portfolio has 139 tenants and over 2,600 beds.
Vital’s tenants include hospital operators and healthcare providers
who deliver a wide range of medical and health related services across
the full spectrum of health services.
Further information is available at vitalhealthcareproperty.co.nz
ABOUT THE MANAGER
NorthWest Healthcare Properties Management Limited (NWHPM, the
Manager) is an external manager that provides management services
to Vital for its portfolio of healthcare properties.
The Manager’s primary responsibilities include the day-to-day administration
of Vital, portfolio management, sourcing new opportunities and conducting
due diligence on potential acquisitions. The Manager is also responsible for
providing specialist property management, project management,
development management and leasing services to the Trust.
The Manager’s board of four comprises two independent directors and
two NorthWest appointees. NWHPM has 40 professionals on its staff and
offices in Auckland, Melbourne and Sydney. NWHPM is a wholly owned
subsidiary of the Toronto listed NorthWest Healthcare Properties REIT
(NWH REIT). NWH REIT is a global healthcare real estate investor and
manager that has NZ$7.4B of assets under management, 220
professionals and operates in 6 countries.
The senior management team of Vital, led by Miles Wentworth (Interim
Manager), has a combined total of more than 75 years of healthcare
property experience. The significant experience, proven track record and
specialist skills have supported the Trust’s delivery of a 10-year
compound annual return of 14.3% per annum.
02
VITAL HEALTHCARE PROPERTY TRUST ANNUAL REPORT 2019

OUR STRUCTURE – A UNIT TRUST
Vital is a unit trust that is externally managed by a leading global healthcare real estate investor and manager
LOCATED IN AUSTRALIA AND
THE BALANCE IN NEW ZEALAND
THE PORTFOLIO OF 42
PROPERTIES IS VALUED AT
MORE THAN
NZ$1.8b
+
VITAL UNITHOLDERS
75.01%
24.99%
100%
HEALTHCARE PROPERTIES
TRUSTEES
EXECUTORS LIMITED
(SUPERVISOR)
Supervises Vital and ensures compliance with its
requirements under the Trust Deed
BOARD COMPRISES:
2 Independent Directors and
2 NorthWest Appointees
Management of Vital
in accordance with
the Trust Deed
NORTHWEST HEALTHCARE
PROPERTIES MANAGEMENT
LIMITED (MANAGER)
BOARD OF
DIRECTORS
1
03
1 - The Independent Directors of Vital have a casting vote in the event of an equality of votes

Highlights /
5 Year Financial Summary
& Portfolio Metrics
*Excludes A$80.3m related party loan which was repaid on 2 August 2019
A PIPELINE OF RETURN ON
COST PROJECTS NZ$218M AT
6.1%
LIKE FOR LIKE
RENTAL GROWTH
2.3%
ADJUSTED FUNDS FROM
OPERATIONS $51M UP
3.0%

TOTAL RETURN IN FY19
27.5%
PROPERTY REVALUATIONS
$104M UP
6.0%
ANNUAL CASH
DISTRIBUTION 8.75CPU UP
2.2%

OCCUPANCY
99.4%
DEBT TO GROSS
ASSETS RATIO
35.3%*
Average
Income
Return
04
VITAL HEALTHCARE PROPERTY TRUST ANNUAL REPORT 2019

FINANCIAL SUMMARY

2015
$000s

2016
$000s

2017
$000s

2018
$000s

2019
$000s
FINANCIAL PERFORMANCE

Net property income 59,430 68,274 89,657 90,659 97,683
Revaluation gain/(loss) on investment property 84,031 101,869 168,549 85,461 103,556
Profit for the year (after taxation) 96,506 117,208 217,622 100,065 93,422
Earnings per unit – cents per unit 28.31 34.00 51.68 23.04 21.07
DISTRIBUTABLE INCOME
Gross distributable income 40,950 45,038 65,347 49,672 51,559
Net distributable income 36,290 40,243 61,821 46,135 43,987
Net distributable income – cents per unit 10.64 11.67 14.68 10.62 9.92
Cash distribution to unitholders – cents per unit 8.00 8.30 8.50 8.56 8.75
FINANCIAL POSITION
Total assets 784,565 978,174 1,392,228 1,786,828 1,931,543
Borrowings 257,340 345,310 402,049 668,712 734,211
Total equity 439,756 523,719 879,821 987,976 1,029,745
Debt to total assets ratio (%)
1
32.8 35.3 28.9 37.5 35.3
Net tangible assets – dollars per unit 1.27 1.51 2.05 2.26 2.31
PROPERTY METRICS

2015

2016

2017

2018

2019
Investment properties ($m) 781.9 951.9 1,376.2 1,731.2 1,836.4
Number of investment properties
2
25 29 37 42 42
Number of tenants 108 114 136 142 139
Occupancy (%) 99.4 99.6 99.1 99.3 99.4
Weighted average lease term to expiry (years) 17.1 18.4 17.7 18.2 18.1
12 month lease expiry (% of income) 1.1 2.5 1.7 1.8 1.7
05
1 FY2019 figure excludes A$80.3m related party loan which was repaid on 2 August 2019.
2 Excludes properties held for development.

Manager’s Letter
to Unit Holders
DEAR INVESTOR,
Vital has had another successful and busy year.
Our focus has been on actively managing the operating performance
of the business and progressing projects.
During the year, we undertook a fee and governance review that will
be put to a unitholder vote at the Annual Meeting. We also invested
significant time and resources into assessing an opportunity to partner
with NorthWest Healthcare Properties REIT (NWH REIT) to acquire a
substantial portfolio of healthcare property assets in Australia. This
opportunity was declined and we’ll explain why later in this letter.
A distribution of 8.75 cents per unit (cpu) will be made for the 2019 year,
a 2.2% increase on the prior year. The Board has confirmed that the 2020
financial year cash distribution will be at least 8.75 cpu.
FY19 FINANCIAL RESULT
Rental income increased 7.8% to $101.1m, reflecting contributions from
the structured rent reviews within the portfolio, completed projects and
a full year contribution from prior year acquisitions.
Like-for-like property income increased 2.3% on a same currency basis.
THE PORTFOLIO INCREASED
IN VALUE BY $103.6M TO
$1.8b
06
VITAL HEALTHCARE PROPERTY TRUST ANNUAL REPORT 2019

Normalised Net Distributable Income (‘NNDI’)
1
for
the year increased by 3.8% to $51.0m (2018: $49.1m)
equating to 11.50 (cpu). Cash from operations
available to unitholders, measured by Adjusted Funds
from Operations (AFFO), increased 3.0% to $51.0m.
This remains comfortably in excess of the cash we
distribute, providing unitholders with a secure and
stable income.
Finance expenses increased from the prior year by
$9.5m due to an increase in the level of debt drawn
down over the period to fund projects, acquisitions,
and strategic land holdings. Increased line and margin
charges were charged on renewed bank facilities.
The finance expenses included a $2.7m interest cost
for the A$80.3m Healthscope derivative loan (which
was repaid post balance date). Interest income earned
from NWH REIT 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 of increased base management
fees, non-recurring costs related to corporate
governance activities and due diligence costs for
opportunities that did not proceed, partially offset
by lower incentive fees
2
to the Manager.
In the 2019 financial year, there was $4.3m of
transaction costs that were expensed. These related
to Vital’s detailed due diligence on the potential
acquisition of an interest in the property of
Healthscope Limited (discussed later in this letter).
Vital’s Net Tangible Assets (NTA) increased to $2.31,
an increase of 2.0% on the prior year NTA of $2.26.
This was the result of revaluation gains of $103.6m
partially offset by negative net movements in interest
rate derivatives of $36.3m.
1 Net Distributable Income excluding extraordinary and one-off items
2 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.
HEALTHSCOPE TRANSACTION
In early 2018, Vital and NWH REIT agreed to jointly
consider the acquisition of the Healthscope real estate
opportunity. After a thorough assessment, it was
determined by Vital’s Board of Directors to not proceed
in acquiring a 50% share of the Healthscope opportunity.
Declining to participate in this opportunity was
exceptionally difficult, 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.
The net cost to Vital in FY19 of investigating the
Healthscope transaction was $4.3m.
PORTFOLIO
Vital’s core portfolio metrics remain consistently
strong, with occupancy at 99.4% and a weighted
average lease expiry (WALE) of 18.1 years. This
continues to be the longest WALE of any ASX or
NZX-listed REIT or property company.
During FY19, 106 of Vital’s 169 leases were subject to a
rent review. The average increase in rental income was
2.2%. The Fund had two leases expire in the period
(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 new A$126m
Epworth Eastern East Tower project.
There has been further firming of capitalisation rates
this year based on the price at which the Healthscope
properties were transacted. 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.
PROJECTS AND ACQUISITIONS
Portfolio additions during 2019 totalled $25.2m.
These sites were purchased to facilitate future
projects adjacent to Vital owned facilities or, in the
case of Elizabeth Vale in Adelaide, create a new scale
co-located health precinct adjacent to the city’s third
largest public hospital.
18.1yr
WEIGHTED AVERAGE LEASE
EXPIRY, THE LONGEST OF ANY
NZX-LISTED PROPERTY ENTITY
07

Recognising forecast ongoing healthcare demand,
Vital has also continued to invest in land acquisitions
adjacent to existing facilities to support and enhance
long term value. Expansion project commitments
included Epworth Eastern, Wakefield Hospital and
Lingard Day Surgery. In total, Vital has projects
underway at 5 hospitals with a total construction
value of $218m. The most significant is the
construction of a new tower at Epworth Eastern in
Melbourne with a contracted build cost of A$126m,
the Trust’s single largest project in its history.
Refer to pages 10 and 12 for feature pages on
Wakefield Hospital and Epworth Eastern.
Currently contracted projects have a forecast rental
yield of approximately 6.1%. This provides an attractive
margin above Vital’s current weighted average
capitalisation rate of 5.61% and the current 10 year
New Zealand and Australian Government Bond Yields.
Brownfield development opportunities will continue
to underpin earnings sustainability, enhanced asset
quality and long-term value add.
CAPITAL MANAGEMENT
The debt to total assets ratio was 35.3% (2018: 37.5%),
following NWH REIT’s repayment post balance date of
an A$80.3m loan made to it as part of the Healthscope
transaction. With the defensive asset class, unique
demand drivers of healthcare, long WALE of 18.1 years,
high occupancy (99.4%) and high quality tenant base,
Vital has a very comfortable level of debt.
The loan to valuation ratio, an important metric
for bank facility purposes, was 35.5%, following
repayment of the related party loan. Accordingly,
Vital has approximately $240m of headroom under
its debt facilities at 31 August.
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 floating rates.
FEES AND GOVERNANCE
In November 2018, NorthWest Healthcare Properties
Management Limited (NWHPM, the Manager)
announced that it would undertake a review of its
management fees in the first quarter of calendar
2019. During the first quarter of 2019, NWHPM
engaged Ernst & Young to prepare a research report
on what fees specialist externally managed entities
were being charged in the current market and
undertook discussions with a cross section of Vital
investors and their advisers.
Following this review a negotiation between the
Independent Directors and the parent of Vital’s
Manager, NWH REIT took place. On 1 April 2019 it was
announced that a conditional agreement on a new
governance and fees structure had been reached. The
proposed enhanced fee and governance amendments
will be put to a unitholder vote at the Annual Meeting.
Refer to the Corporate Governance section on page 26
for a summary of the proposed fee changes.
OUTLOOK
We have started the 2020 financial year in a strong
position. Directors expect the cash distribution for
the 2020 financial year cash distribution to be at
least 8.75 cpu.
Healthcare real estate has an undeniably positive
growth profile, benefitting from the demand for
healthcare services from an ageing and growing
population, especially those delivered from quality
healthcare infrastructure and by market leading
operators, like those in Vital’s portfolio.
With the NWHPM 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.
Our ability to support the growth needs of our tenants
enables us to drive a continuing level of growth in
operating, portfolio and financial results, delivering
sustainable distributions and creating long term value
for investors.
The 2020 financial year will have a strong focus on
the delivery of two expansion projects, Wakefield
Hospital in Wellington and Epworth Eastern in
Melbourne. We look forward to keeping you updated
on progress with these substantial projects.
Yours faithfully,
Bernard Crotty
CHAIRMAN
FOR AND ON BEHALF OF
THE BOARD OF DIRECTORS
08
VITAL HEALTHCARE PROPERTY TRUST ANNUAL REPORT 2019

Adding Value
09

“ The project will be delivered in stages, reflecting the need to work
around a live operational hospital that will continue to provide
services throughout the build.
The experience of the Hawkins, Acurity and NorthWest teams in
delivering complex health projects will be paramount for success.”

Chris Adams – Executive Director, Projects
STAGE 1
$37m
TOTAL INVESTMENT
$98m
Wakefield Hospital
10
VITAL HEALTHCARE PROPERTY TRUST ANNUAL REPORT 2019

*Artist render of Wakefield Hospital exterior post project completion.
LEASE TERM
30yrs
RENTALISATION YIELD
6.3%
ANNUAL RENTAL ADJUSTMENTS
1.5X CPI
11

FORECAST PROJECT COST
A$126m
PRE-LEASED OCCUPANCY
80%
LEASE TERM WITH
RENTAL ESCALATORS FOR
THE EPWORTH LEASE
30yr
RENTALISATION YIELD
~6%
“ The project commencement is another key milestone in
Vital’s 20 year commitment to the site and provides further
opportunity for the Epworth and NorthWest project teams
to work together following a long history of successful
project delivery.”
Chris Adams – Executive Director, Projects
Epworth Eastern
12
VITAL HEALTHCARE PROPERTY TRUST ANNUAL REPORT 2019

*Artist render of Epworth Eastern.
13

Property Portfolio
14
VITAL HEALTHCARE PROPERTY TRUST ANNUAL REPORT 2019

Australian Portfolio
MARKET VALUE A$27,600,000
MARKET CAPITALISATION RATE 5.25%
WALE 22.7
OCCUPANCY 100.00%
MAJOR TENANT
Healthe Care
DESCRIPTION
Abbotsford is situated within the inner Perth
suburb of West Leederville, approximately
1km west of the major Subiaco health
precinct. It is a modern 30-bed inpatient
private mental health hospital with a focus
on drug and alcohol rehabilitation services.
Abbotsford Private Hospital
Perth / Western Australia
MARKET VALUE A$72,800,000
MARKET CAPITALISATION RATE 5.25%
WALE 16.7
OCCUPANCY 100.00%
MAJOR TENANT
Healthe Care
DESCRIPTION
Belmont Private Hospital is a 150-bed
general psychiatric hospital in Queensland,
approximately 12km from Brisbane’s CBD
and is the largest of its type in Brisbane.
Belmont Private Hospital offers a range
of specialist acute mental health services
catering for both inpatient and day patients.
Belmont Private Hospital
Brisbane / Queensland
MARKET VALUE A$12,900,000
MARKET CAPITALISATION RATE 7.00%
WALE 16.7
OCCUPANCY 100.00%
MAJOR TENANT
Hall & Prior
DESCRIPTION
Clover Lea residential aged care is located
approximately 12km west of the Sydney CBD.
It is a high-care, single level facility with
64 beds. Clover Lea is operated by Hall &
Prior, a private Australian Commonwealth
Government approved residential aged
care provider.
Clover Lea Aged Care
Sydney / New South Wales
MARKET VALUE A$17,900,000
MARKET CAPITALISATION RATE 6.00%
WALE 12.6
OCCUPANCY 100.00%
MAJOR TENANT
Healthe Care
DESCRIPTION
Dubbo Private Hospital has 53 beds
and provides general surgical, obstetric,
rehabilitation and neonatal intensive care.
Dubbo is located in regional New South
Wales, approximately six hours’ drive
north-west of Sydney.
Dubbo Private Hospital
Dubbo / New South Wales
MARKET VALUE A$25,600,000
MARKET CAPITALISATION RATE 5.75%
WALE 18.5
OCCUPANCY 100.00%
MAJOR TENANT
Healthe Care
DESCRIPTION
Eden Rehab is a 48 bed private inpatient
rehabilitation hospital and medical centre
located in Cooroy, approximately 25 minutes
inland from Noosa in Queensland. Eden has
provided rehabilitation and medical care to
Sunshine Coast residents for over 15 years
and is the only sub-acute stand-alone private
rehabilitation hospital between Brisbane
and Cairns.
Eden Rehabilitation
Sunshine Coast / Queensland
MARKET VALUE A$29,000,000
MARKET CAPITALISATION RATE 5.75%
WALE 3.1
OCCUPANCY 92.08%
MAJOR TENANT
Imaging Associates
DESCRIPTION
Constructed in 2014, Ekera is a modern,
multi-tenanted four level medical office
building comprising a total area of 3,605
sqm with basement parking for 133 cars.
Ekera’s major tenant is Imaging Associates,
representing approximately 40% of
rental income. Other tenants include:
Epworth Foundation, Monash IVF and
Sportsmed Biologic.
Ekera Medical Centre
Melbourne / Victoria
15

MARKET VALUE A$166,500,000
MARKET CAPITALISATION RATE 5.00%
WALE 20.8
OCCUPANCY 100.00%
MAJOR TENANT
Epworth Foundation
DESCRIPTION
Epworth Eastern Hospital is located in Box
Hill about 14km from the CBD, a significant
regional hub for the middle and outer eastern
suburbs. Completed in 2005, the hospital
accommodates a ground-floor reception,
radiology and café, ten operating theatres,
227 beds and 284 car parks.
Epworth Eastern Hospital
Melbourne / Victoria
MARKET VALUE A$38,000,000
MARKET CAPITALISATION RATE 5.25%
WALE 8.5
OCCUPANCY 100.00%
MAJOR TENANT
Epworth Foundation
DESCRIPTION
Originally built in 1986, the Epworth Eastern
Medical Centre was completely refurbished
in 2005. This houses 18 private consulting
suites, Hospital administration office, a
separate oncology suite and a pathology
collection centre with onsite laboratory.
Epworth Eastern Medical Centre
Melbourne / Victoria
MARKET VALUE A$26,000,000
MARKET CAPITALISATION RATE 5.50%
WALE 4.6
OCCUPANCY 100.00%
MAJOR TENANT
Epworth Foundation
DESCRIPTION
Epworth Rehabilitation is a purpose-built
rehabilitation facility with a licence for 67
beds. The facility offers a comprehensive
range of services, including specialised
rehabilitation units for orthopaedic/
musculo-skeletal, neurological and cardiac
patients. The facility includes a purpose-built
rehabilitation gymnasium and pool.
Epworth Rehabilitation
Melbourne / Victoria
MARKET VALUE A$17,100,000
MARKET CAPITALISATION RATE 7.00%
WALE 16.7
OCCUPANCY 100.00%
MAJOR TENANT
Hall & Prior
DESCRIPTION
Fairfield residential aged care is located
approximately 28km west of the Sydney
CBD in the suburb of Fairfield. It is a two-level
high-care facility with 93 beds including an
18-bed secure dementia unit. Fairfield is
operated by Hall & Prior, a private Australian
Commonwealth Government approved
residential aged care provider.
Fairfield aged care
Sydney / New South Wales
MARKET VALUE A$13,900,000
MARKET CAPITALISATION RATE 7.25%
WALE 0.9
OCCUPANCY 63.20%
MAJOR TENANT
South Coast Radiology
DESCRIPTION
The Gold Coast Surgery Centre is a multi
tenanted medical office building located
in Southport, Queensland. The building
comprises a three-level medical centre with
podium and basement car parking. It is home
to various practitioners operating in radiology,
breast cancer and gynaecology.
Gold Coast Surgery Centre
Gold Coast / Queensland
MARKET VALUE A$10,800,000
MARKET CAPITALISATION RATE 7.25%
WALE 17.8
OCCUPANCY 100.00%
MAJOR TENANT
Hall & Prior
DESCRIPTION
Grafton Aged Care is a residential aged
care facility located in South Grafton, NSW,
approximately 70km north of Coffs Harbour.
The site overlooks the Clarence River and
benefits from uninterrupted views. The
facility comprises 83 beds across a mix
of single, double and triple rooms.
Grafton Aged Care
Sydney / New South Wales
16
VITAL HEALTHCARE PROPERTY TRUST ANNUAL REPORT 2019

MARKET VALUE A$12,000,000
MARKET CAPITALISATION RATE 7.25%
WALE 16.7
OCCUPANCY 100.00%
MAJOR TENANT
Hall & Prior
DESCRIPTION
Hamersley residential aged care is located
in the suburb of Subiaco, approximately
2km west of the Perth CBD. It is a high-care,
two level facility with 78 beds. Hamersley is
operated by Hall & Prior, a private Australian
Commonwealth Government approved
residential aged care provider.
Hamersley aged care
Perth / Western Australia
MARKET VALUE A$25,670,000
MARKET CAPITALISATION RATE 5.50%
WALE 22.9
OCCUPANCY 100.00%
MAJOR TENANT
Healthe Care
DESCRIPTION
Hirondelle is a 53-bed private rehabilitation
hospital located within Sydney’s lower north
shore suburb of Chatswood, approximately
10km north-west of the CBD. The facility
offers both in-patient and out-patient
programs, supported by a large onsite
physiotherapy gym and hydrotherapy pool.
The hospital was most recently refurbished
in 2014.
Hirondelle Private Hospital
Sydney / New South Wales
MARKET VALUE A$74,200,000
MARKET CAPITALISATION RATE 6.25%
WALE 22.8
OCCUPANCY 100.00%
MAJOR TENANT
Healthe Care
DESCRIPTION
Hurstville is a 94-bed private hospital
located approximately 16km south-west
of the Sydney CBD specialising in surgical
services and obstetrics. Vital acquired
Hurstville in May 2012 and has undertaken
major redevelopment work, including
increased operating theatre capacity, patient
accommodation and consulting rooms.
Hurstville Private Hospital
Sydney / New South Wales
MARKET VALUE A$143,400,000
MARKET CAPITALISATION RATE 5.50%
WALE 26.7
OCCUPANCY 100.00%
MAJOR TENANT
Healthe Care
DESCRIPTION
Lingard Private Hospital is a 123-bed,
7 theatre acute medical and surgical hospital
located 3km south of the Newcastle CBD.
Over recent years Lingard has undergone
significant redevelopment which has included
a new 40-bed ward, two additional operating
theatres and improved diagnostic
imaging areas.
Lingard Private Hospital
Newcastle / New South Wales
MARKET VALUE A$99,000,000
MARKET CAPITALISATION RATE 5.50%
WALE 18.5
OCCUPANCY 100.00%
MAJOR TENANT
Healthe Care
DESCRIPTION
Maitland Private is a 154-bed private
hospital located approximately 30km
north-west of Newcastle in NSW and
offers a comprehensive range of specialities
and on-site medical, surgical, mental health,
rehabilitation and allied health services,
all supported by the latest technology
and facilities.
Maitland Private Hospital
Newcastle / New South Wales
MARKET VALUE A$47,300,000
MARKET CAPITALISATION RATE 5.25%
WALE 15.1
OCCUPANCY 100.00%
MAJOR TENANT
Healthe Care
DESCRIPTION
The Marian Centre was acquired by Vital
in August 2014. It is a 69-bed stand-alone
private psychiatric hospital in the established
medical precinct of Subiaco, Western
Australia. The Marian Centre provides both
inpatient and outpatient services along with
a range of therapy programs.
Marian Centre
Perth / Western Australia
17

MARKET VALUE A$38,000,000
MARKET CAPITALISATION RATE 6.25%
WALE 12.5
OCCUPANCY 100.00%
MAJOR TENANT
Healthe Care
DESCRIPTION
Mayo Private Hospital is a 79 bed hospital
located approximately 170km north of
Newcastle and operated by Healthe Care.
Mayo specialises in surgical, acute medical,
post natal and rehabilitation services. Mayo
has associated specialist consulting rooms
and a rehabilitation centre.
Mayo Private Hospital
Taree / New South Wales
MARKET VALUE A$33,400,000
MARKET CAPITALISATION RATE 5.75%
WALE 3.6
OCCUPANCY 94.51%
MAJOR TENANT
Castlereagh
DESCRIPTION
Mons Road is a modern, multi-tenanted,
four-level medical office building. It is
approximately 26km west of the Sydney
CBD within the Westmead medical precinct,
which is considered Australia’s largest health
services precinct.
Mons Road Medical Centre
Sydney / New South Wales
MARKET VALUE A$23,200,000
MARKET CAPITALISATION RATE 6.00%
WALE 17.4
OCCUPANCY 100.00%
MAJOR TENANT
Healthe Care
DESCRIPTION
North West Private Hospital is a 70-bed
licenced single-storey facility providing acute
medical, surgical, psychiatric and obstetric
services and co-located with the Burnie
Public Hospital and University of Tasmania.
North West Private Hospital
Burnie / Tasmania
MARKET VALUE A$56,500,000
MARKET CAPITALISATION RATE 5.25%
WALE 12.6
OCCUPANCY 100.00%
MAJOR TENANT
Healthe Care
DESCRIPTION
Palm Beach Currumbin Clinic is located
6km from Burleigh Heads, on Queensland’s
Gold Coast and has a catchment area that
extends into New South Wales. The 104 bed
private hospital provides psychiatric services,
including rehabilitation. In 2017, Healthe Care
and Vital completed a redevelopment at the
facility converting shared rooms into private
beds and constructing a new level above the
front car park, creating a new consulting suite
wing and day program unit.
Palm Beach Currumbin Clinic
Gold Coast / Queensland
MARKET VALUE A$6,500,000
MARKET CAPITALISATION RATE 7.25%
WALE 16.7
OCCUPANCY 100.00%
MAJOR TENANT
Hall & Prior
DESCRIPTION
Rockingham residential aged care is located
in the suburb of Rockingham, approximately
50km south of the Perth CBD. It is a high-
care, single level 40-bed facility. Rockingham
is operated by Hall & Prior, a private
Australian Commonwealth Government
approved residential aged care provider.
Rockingham aged care
Perth / Western Australia
MARKET VALUE A$60,050,000
MARKET CAPITALISATION RATE 5.25%
WALE 21.7
OCCUPANCY 100.00%
MAJOR TENANT
Healthe Care
DESCRIPTION
South Eastern Private Hospital is located
around 26km south-west of Melbourne’s
CBD. It is a two-storey 167 bed hospital.
The hospital provides general medicine and
rehabilitation services. In 2016, South Eastern
underwent a major redevelopment project
that added 60 mental health beds and 79 car
parks to the facility.
South Eastern Private Hospital
Melbourne / Victoria
18
VITAL HEALTHCARE PROPERTY TRUST ANNUAL REPORT 2019

MARKET VALUE A$8,190,000
MARKET CAPITALISATION RATE 5.50%
WALE 16.6
OCCUPANCY 100.00%
MAJOR TENANT
Sportsmed SA
DESCRIPTION
Sportsmed consulting is located in the
suburb of Stepney approximately 4km
north-east of Adelaide’s CBD, in South
Australia. It is adjacent to Sportsmed SA
hospital & clinics which incorporates a state
of the art dedicated orthopaedic facility
and is the largest of its type in Australia.
Sportsmed Consulting
Adelaide / South Australia
MARKET VALUE A$59,060,000
MARKET CAPITALISATION RATE 5.50%
WALE 15.9
OCCUPANCY 100.00%
MAJOR TENANT
Sportsmed SA
DESCRIPTION
Sportsmed SA incorporates a state of the
art dedicated orthopaedic facility, with five
operating theatres and 45 private rooms.
It is located in the suburb of Stepney
approximately four kilometres north-east
of Adelaide’s CBD, in South Australia.
With 13 dedicated orthopaedic surgeons.
Sportsmed Hospital and Clinics
Adelaide / South Australia
MARKET VALUE A$4,500,000
MARKET CAPITALISATION RATE 6.00%
WALE 16.6
OCCUPANCY 100.00%
MAJOR TENANT
Sportsmed SA
DESCRIPTION
Sportsmed office is adjacent to
Sportsmed SA hospital & Clinics.
Sportsmed office houses the administration
and executive offices of Sportsmed SA.
It is a two storey building with medium-term
redevelopment potential to support clinical
growth at Sportsmed.
Sportsmed Office
Adelaide / South Australia
MARKET VALUE A$33,100,000
MARKET CAPITALISATION RATE 5.25%
WALE 28.1
OCCUPANCY 100.00%
MAJOR TENANT
Healthe Care
DESCRIPTION
Located in the suburb of Kellyville,
approximately 40km north-west of the
Sydney CBD, The Hills is a two-level
purpose-built mental health hospital offering
specialist inpatient programs. with 59 beds
and a medical clinic with 8 consulting rooms
and approximately 30 referring clinicians.
The Hills Clinic
Sydney / New South Wales
MARKET VALUE A$43,800,000
MARKET CAPITALISATION RATE 5.50%
WALE 18.6
OCCUPANCY 100.00%
MAJOR TENANT
Ramsay Health Care
DESCRIPTION
Southport Private Hospital (formerly
Allamanda Private) is located in Southport
on the Gold Coast. The facility provides a
range of comprehensive mental health and
rehabilitation services. Operated by Ramsay
Health Care, the facility includes a 44 bed
rehabilitation unit and a 22 bed private
inpatient mental health clinic.
The Southport Private Hospital
Gold Coast / Queensland
MARKET VALUE A$40,150,000
MARKET CAPITALISATION RATE 5.75%
WALE 23.5
OCCUPANCY 100.00%
MAJOR TENANT
Healthe Care
DESCRIPTION
Toronto Private Hospital is an 105-bed private
hospital located in Toronto (NSW) and is
approximately 20 km from Newcastle. The
three-level facility is located on the western
side of Lake Macquarie and specialises in
rehabilitation, medical, palliative care and
mental health services.
Toronto Private Hospital
Newcastle / New South Wales
19

New Zealand Portfolio
MARKET VALUE $28,000,000
MARKET CAPITALISATION RATE 6.13%
WALE 6.4
OCCUPANCY 94.20%
MAJOR TENANT
Apollo Health
DESCRIPTION
Apollo is home to a diverse range of specialist
healthcare tenants including audiologists,
physiotherapists, laboratory and radiology
providers, fertility specialists and GPs. The
largest tenant is Apollo Medical, a general
practice with over 15 GPs.
Apollo Health & Wellness Centre
Auckland
MARKET VALUE $39,000,000
MARKET CAPITALISATION RATE 5.63%
WALE 4.4
OCCUPANCY 100.00%
MAJOR TENANT
Fertility Associates
DESCRIPTION
Ascot Central is a high-quality, five-level
medical office building located next to Ascot
Hospital in Greenlane, Auckland. The major
tenant is Fertility Associates, New Zealand’s
leading provider of fertility diagnosis, support
and treatment.
Ascot Central
Auckland
MARKET VALUE $1,625,000
MARKET CAPITALISATION RATE 9.50%
WALE 4.1
OCCUPANCY 95.00%
MAJOR TENANT
Fertility Associates
DESCRIPTION
176 Carparks.
Ascot Central Carpark (ground lease)
Auckland
MARKET VALUE $112,989,000
MARKET CAPITALISATION RATE 5.25%
WALE 18.2
OCCUPANCY 99.00%
MAJOR TENANT
Ascot Hospital and Clinics Limited
DESCRIPTION
Ascot Hospital and Clinics is a private
surgical and medical hospital with associated
consulting areas. Ascot Hospital is one of the
Trust’s flagship properties and is considered
one of New Zealand’s premier private surgical
and medical facilities, with 12 operating
theatres, 88 inpatient beds, and a 24-hour
accident and emergency clinic.
Ascot Hospital
Auckland
MARKET VALUE $1,975,000
MARKET CAPITALISATION RATE 9.50%
WALE 24
OCCUPANCY 100.00%
MAJOR TENANT
Ascot Hospital and Clinics Limited
DESCRIPTION
273 Carparks.
Ascot Hospital Carpark (ground lease)
Auckland
MARKET VALUE $40,200,000
MARKET CAPITALISATION RATE 5.63%
WALE 19
OCCUPANCY 100.00%
MAJOR TENANT
Healthe Care
DESCRIPTION
Boulcott is a 38-bed private surgical
hospital located in Lower Hutt. It has
three operating theatres and approximately
45 specialist consultants and surgeons
who provide services across a range of
surgical specialties, including orthopaedics,
ophthalmology and urology services.
It is located directly adjacent to the
Hutt public hospital.
Boulcott Private Hospital
Lower Hutt
20
VITAL HEALTHCARE PROPERTY TRUST ANNUAL REPORT 2019

MARKET VALUE $51,300,000
MARKET CAPITALISATION RATE 5.50%
WALE 28.5
OCCUPANCY 100.00%
MAJOR TENANT
Acurity Health Group
DESCRIPTION
Bowen Hospital is a two level hospital facility
and five-level specialist consulting building.
Originally constructed in 1971, the facility
has undergone $34m of development adding
three operating theatres, a consulting building
housing consulting space, an endoscopy unit
and chemotherapy clinic, and most recently
expansion with a radiotherapy treatment centre.
Bowen Hospital
Wellington
MARKET VALUE $20,100,000
MARKET CAPITALISATION RATE 6.00%
WALE 27
OCCUPANCY 100.00%
MAJOR TENANT
Kensington Hospital Limited
DESCRIPTION
Kensington Hospital is the only private
inpatient hospital in Whangarei and also
provides day-stay surgery. The site is
centrally located, approximately 2.5km from
the Whangarei CBD.
Kensington Hospital
Whangarei
MARKET VALUE $10,900,000
MARKET CAPITALISATION RATE 9.00%
WALE 4.5
OCCUPANCY 100.00%
MAJOR TENANT
Hawke’s Bay District Health Board
DESCRIPTION
Napier Health Centre is the first
comprehensive ambulatory facility in the
Hawke’s Bay and provides day-patient and
outpatient services. These include 24-hour
urgent medical, laboratory, radiology (x-ray),
minor surgeries and physiotherapy services.
Napier Health Centre
Napier
MARKET VALUE $38,497,000
MARKET CAPITALISATION RATE 6.00%
WALE 4.2
OCCUPANCY 100.00%
MAJOR TENANT
Ormiston Surgical and Endoscopy
DESCRIPTION
Ormiston Hospital is situated in Flat Bush,
25km south of the Auckland CBD. Ormiston
is anchored by Ormiston Surgical and
Endoscopy Limited, a business whose
cornerstone shareholder is Southern Cross
Hospitals Limited, New Zealand’s largest
private hospital operator.
Ormiston Hospital
Auckland
MARKET VALUE $57,536,000
MARKET CAPITALISATION RATE 5.75%
WALE 28.5
OCCUPANCY 100.00%
MAJOR TENANT
Acurity Health Group
DESCRIPTION
Royston Hospital is a single-level hospital
facility and two-level consulting centre,
located in the city of Hastings. Royston
is the only private hospital within the
regional hub of the Hawkes Bay and one of
two hospitals in the region serving 160,000
residents. Originally constructed in 1931, the
facility had undergone major upgrades as
recently as 2005, and is currently undergoing
a major expansion project.
Royston Hospital
Hastings
MARKET VALUE $33,076,000
MARKET CAPITALISATION RATE 5.50%
WALE 28.5
OCCUPANCY 100.00%
MAJOR TENANT
Acurity Health Group
DESCRIPTION
Wakefield Hospital is the largest private
hospital in the Wellington region. Vital has
committed to a full redevelopment planned
in stages to minimise disruption to ongoing
business continuity. The completed
development will result in a seismically
resilient, modern and functional facility
including 8 operating theatres, 42 beds,
a 3,000 sqm medical consulting building
and over 260 carparks.
Wakefield Hospital
Wellington
21

The Board
ANDREW EVANS
Independent Director
Andrew Evans has over 25 years’ experience in commercial real estate
and asset management, previously holding executive positions in listed
and unlisted real estate investment businesses. Andrew is a Director of
Holmes Group Limited, Holmes GP Fire Limited, Trust Investments
Management Limited and Hughes and Cossar Group Holdings Limited and
a former director of Argosy Property Limited. In addition, Andrew is a past
National President of the Property Council of New Zealand, a fellow of the
New Zealand Property Institute, and a government appointee to the Land
Valuation Tribunal (Waikato No.1). He is a Chartered Fellow of the Institute
of Directors and is on the Auckland Branch Committee.
Andrew has a Bachelor of Business Studies and MBA (with distinctions)
from Massey University and a Diploma in Finance from Auckland University.
22
VITAL HEALTHCARE PROPERTY TRUST ANNUAL REPORT 2019
BERNARD CROTTY
Director
Bernard Crotty is the President and a Trustee of NorthWest Healthcare
Properties REIT and a Director of the manager of Vital Healthcare
Property Trust and previously served as President and Trustee of
NorthWest International Healthcare Properties REIT.
Previously, Bernard acted as Chairman and/or Chief Executive Officer
of Certicom Corp., a provider of cryptographic software and services
that was acquired by the then Research in Motion Ltd. And Chairman
and/or Chief Executive Officer of Comnetix Inc., a provider of biometric
identification and authorization solutions that was acquired by L-1
Identity Solutions, Inc.
In addition Bernard has served on a variety of public company boards and
was counsel to the law firm Gibson, Dunn & Crutcher LLP in Los Angeles
and a partner at the law firm McCarthy Tétrault, LLP in Toronto and
London, England.
Bernard received his B.A. from the University of Alberta, LL.B. from
the University of Toronto, LL.M. from the London School of Economics
and his M.B.A. from Duke University. He is also a graduate of the Toronto
ICD-Rotman Directors Education Program.

23
GRAHAM STUART
Independent Director
Graham Stuart is an experienced corporate director with an established
track record of performance in governance and in prior executive roles.
He is currently the Independent Chairman of EROAD Limited and an
Independent Director and Chair of the Audit Committee at Tower.
He was previously the CEO of Sealord Group from 2007 to 2014 and
Director, Strategy and Growth and CFO of Fonterra Co-operative Group
from 2001 to 2007.
Graham is a Fellow of Chartered Accountants Australia & New Zealand
(CAANZ) and a Chartered Member of the New Zealand Institute of
Directors. Graham has a Masters of Science from Massachusetts Institute
of Technology and a Bachelor of Commerce from the University of Otago.
PAUL DALLA LANA
Director
Paul Dalla Lana is the founder and CEO of NorthWest Healthcare Properties
REIT – the 100% owner of NorthWest Healthcare Properties Management
Limited, the Manager of Vital Healthcare Property Trust. Over the past
25 years, Paul has led NorthWest in the acquisition and development
of over $7.0 billion worth of real estate transactions, with a significant focus
on healthcare properties.
Prior to founding NorthWest, Paul was a professional in the Real Estate
Capital Markets Group of Citibank, N.A. and an economist with B.C. Central
Credit Union. Paul received his BA (Economics) and his MBA (Finance and
Real Estate) from The University of British Columbia.
Paul serves as Chairman of the Board of NorthWest Healthcare Properties
REIT. Additionally, he is actively involved in addressing public health and
education issues in Canada and around the world. He is an Advisory Board
member of the Dalla Lana School of Public Health and on the President’s
Advisory Council at the University of Toronto.

MILES WENTWORTH
Interim Manager
Miles Wentworth has 23 years’ experience in the New Zealand and
Australian healthcare property sector. He is a New Zealand national
and has an extensive executive management career.
Miles held the positions of Chief Executive Officer, Chief Operating Officer
and Chief Financial Officer of Vital over a 10 year period, when it was
known as the NZX-listed Calan Healthcare Properties Trust. In 2006,
Miles relocated to Melbourne, where he was a founding partner and
CEO of the ASX-listed ING Real Estate Healthcare Fund, subsequently
renamed Generation Healthcare REIT (GHC). In 2018, following 12 years
as CEO of GHC, Miles became a Director and Advisor of NorthWest.
Miles holds a Bachelor of Commerce (Accounting) is a Chartered
Accountant and a member of the New Zealand Institute of Chartered
Accountants.
STUART HARRISON
Chief Financial Officer
Stuart Harrison has nearly three decades of financial reporting and
management experience within the chartered accountancy, utilities and
hospitality/property industries and joined the team in September 2008.
As Chief Financial Officer for Vital, he has been responsible for overseeing
the financial and management reporting, treasury management and tax
compliance within both New Zealand and Australia. The efficient
implementation of these functions have been supportive of the Trust’s
operating performances in recent years – including equity raising, debt
facility renewals and strategic acquisitions.
In his capacity as Regional Finance Director for NorthWest, Stuart
has taken on responsibility for the Australia and New Zealand regional
financial and treasury management requirements of the Manager
and its associated entities. This has included the acquisition of ~ A$1.7bn
of properties including the Healthscope portfolio.
Stuart holds a Bachelor of Commerce and Chartered Accountants
Australia and NZ qualifications. He is also a member of the New Zealand
Institute of Directors.
The Executive Team
24
VITAL HEALTHCARE PROPERTY TRUST ANNUAL REPORT 2019

CHRIS ADAMS
Executive Director – Projects
Chris Adams has extensive experience in the property industry in
Australia, New Zealand and the United Kingdom, including over 20 years’
experience in health sector property acquisitions, transaction structuring
and large scale hospital development. Responsibilities with respect
to NorthWest include overseeing development management and joint
responsibility for acquisitions undertaken by the business. He was one
of the founding Executives at Generation Healthcare REIT. Prior to joining
Generation, Chris established Vital’s presence in Australia in 1999 and
served as General Manager – Australia following various roles with the
group in New Zealand.
Chris holds a Bachelor of Property from Auckland University.
RICHARD ROOS
Executive Director – Portfolio
Richard Roos moved to Melbourne with his family to join Vital six years
ago after spending the previous six years in a senior executive role
with NorthWest Healthcare Properties REIT. He has over 20 years’
career experience in commercial real estate financing, acquisitions
and property management.
In his role as Executive Director, Richard is responsible along with his
Melbourne and Auckland based teams for the asset management of
Vital’s Australian and New Zealand portfolio, including leasing and
tenant relationships, and joint responsibility for acquisitions undertaken
by the business.
25

Corporate Governance
THE TRUST AND SUPERVISOR
Vital Healthcare Property Trust (Vital) was originally
established as a unit trust established under the Unit
Trust Act 1960 by a Trust Deed dated 11 February 1994
as subsequently amended and replaced. Vital became
a registered managed investment scheme under the
Financial Markets Conduct Act 2013 on 29 November
2016. Vital units are listed on the NZX Main Board
(NZX code: VHP).
The Supervisor of Vital is Trustees Executors Limited.
The Supervisor is required to be licensed by the FMA
under the Financial Markets Supervisors Act 2011 to
act as a trustee of a managed investment scheme.
The Supervisor’s role is to supervise the administration
and management of Vital in accordance with the Trust
Deed, and to ensure the Manager complies with its
duties and responsibilities under the Trust Deed.
The Supervisor holds title to the New Zealand
assets and units in the Australian based trusts of Vital
in trust for the unitholders, subject to the terms and
conditions of the Trust Deed. The Supervisor also has
certain discretions and powers to approve investment
and divestment proposals recommended to it by the
Manager and reviews and authorises all payments
made by Vital.
THE MANAGER
The Manager of Vital is NorthWest Healthcare
Properties Management Limited, a wholly owned
subsidiary of NorthWest Healthcare Properties
REIT (NWH REIT). The Manager has responsibility
for the management of Vital in accordance with
the Trust Deed.
The Manager’s responsibilities include the day-to-day
management of Vital’s portfolio of properties and
assets, negotiating the acquisition and disposal of
assets, development and construction planning and
management, treasury and funding management,
ensuring Vital meets its financial, reporting and other
statutory and regulatory obligations and
communicating with unitholders and the market.
Vital does not engage or employ any directors or
employees of its own. The Manager provides a highly
experienced and diverse range of professionals with
expertise across a range of areas.
FEE AND GOVERNANCE REVIEW
On 23 November 2018, the Manager announced
a plan to undertake a review of its management fees.
The review took place in the first quarter of 2019
and involved a robust Board-led process, including
a research report by the accounting and financial
services firm, EY, and feedback from unitholders
representing approximately 40% of the register
(excluding NWH REIT) (Fee and Governance Review).
The Fee and Governance Review was announced on
1 April 2019, with an agreement having been reached
on a new structure between the Independent Directors
of the Manager (on behalf of Vital) and NWH REIT.
The key elements of the proposed new structure,
which is subject to unitholder approval at an Annual
Meeting, are:
• the Manager will permanently remove its unilateral
right to remove Independent Directors (clause 30.11
of the Trust Deed) and to increase fees (clause 22.5
of the Trust Deed);
• a reduced and tiered base fee (replacing the current
flat base fee of 75 basis points) as follows:
– 65 bps up to $1bn of Vital’s gross asset value
(GAV);
– 55 bps from $1bn to $2bn of GAV;
– 45 bps from $2bn to $3bn of GAV;
– 40 bps over $3bn of GAV
• an incentive fee based on changes in Net Tangible
Assets (NTA) and calculated as 10% of the average
annual increase in Vital’s NTA over the respective
financial year and the two preceding financial years;
and
26
VITAL HEALTHCARE PROPERTY TRUST ANNUAL REPORT 2019

• an activity based fee structure for such things as
development management, leasing etc, based on
market rates.
TRUST DEED AMENDMENTS
It is proposed that, subject to unitholder approval
at an Annual Meeting, amendments to the Trust Deed
be made to reflect the outcome of the Fee and
Governance Review and amendments which:
• are designed to enhance and modernise the
language and interpretation of the Trust Deed;
• are intended to bring the Trust Deed in line
with best practice (for example, to allow electronic
participation at unitholder meetings); and
• reflect Vital’s transition to the new NZX Listing
Rules earlier this year.
CODE OF CONDUCT
All directors and employees of the Manager must
abide by the Manager’s Code of Conduct. The Manager
recognises the importance of a work environment
which actively promotes best practice and does not
compromise business ethics or principles. The purpose
of the Code of Conduct is to uphold the highest ethical
standards, acting in good faith and in the best interests
of unitholders at all times. The Code of Conduct
outlines the Manager’s policies in respect of conflicts
of interest, fair dealing, compliance with applicable
laws and regulations, maintaining confidentiality of
information, dealing with Vital’s assets and use of
Vital’s information.
The policy provides a practical set of guiding principles
and operates in conjunction with other policies relating
to minimum standards of behaviour and conduct.
Compliance with this policy is a condition of
employment with the Manager. The policy can be
found on Vital’s website
http://www.vitalhealthcareproperty.co.nz/sites/
default/files/images/Code%20of%20Conduct.pdf
JOINT INVESTMENT POLICY
Under the terms of the Joint Investment Policy
which applies to NWH REIT and its owned and
controlled entities (including the Manager), an
Investment Committee has been established to avoid,
manage and resolve actual or perceived conflicts of
interests between members of the NWH REIT group
in a manner which complies with any relevant legal
obligations and is equitable to each party. The Joint
Investment Policy can be found on Vital’s website:
http://www.vitalhealthcareproperty.co.nz/sites/
default/files/documents/Joint%20Investment%20
Policy.docx.pdf
THE BOARD OF DIRECTORS
The role of the Board of Directors is to set the
strategic direction of Vital and to support management
in monitoring the delivery of this against specific
performance objectives. The Board also ensures,
all business risks are appropriately identified and
managed and, compliance with all applicable
regulatory, statutory, financial, health and safety
and social responsibilities of the Manager.
Board Composition
The Manager is committed to having an effective
Board providing a balance of independent skills,
knowledge, experience and perspectives. The
Constitution of the Manager provides for there to
be not more than seven directors, nor less than three
Directors. All Directors bring a significant breadth
and depth of expertise and have the composite skills
to optimise the financial and portfolio performance
of Vital and returns to unitholders.
Attendance at
Board MeetingsDate of appointment
Claire Higgins (Chair*) 5/5 16 January 2012
(*Resigned 1 April 2019)
Andrew Evans 8/8 20 August 2007
Paul Dalla Lana 7/8 16 January 2012
Bernard Crotty 8/8 16 January 2012
David Carr** 2/2 1 May 2018
(**Resigned 21 December
2018)
Graham Stuart 6/6 12 November 2018
The Board does not impose a restriction on the tenure
of any Director as it considers such a restriction may
lead to the loss of experience and expertise.
Appointment
Unitholders have the opportunity to appoint two of the
Independent Directors of the Manager. Unitholders are
able to nominate and vote on one Independent Director
of the Manager each year. The nominee receiving the
most votes will be approved as a director of the
Manager by the Manager’s shareholders, and will hold
the position for a two year term.
27

As the Manager is a wholly owned subsidiary of
NWH REIT, appointment of other directors is made
by NWH REIT.
The terms of a director’s appointment are contained
within the Board Charter. The purpose of the Charter
is to set out the role, composition and responsibilities
of the Board, and how its powers and responsibilities
will be exercised and discharged. The Charter
reaffirms directors must comply with their duties as
set out in the Companies Act 1993, including to act in
good faith, together with other duties which include
(but are not limited to) conducting themselves in an
appropriate manner. The Charter can be found on
Vital’s website http://www.vitalhealthcareproperty.
co.nz/sites/default/files/images/Board%20Charter.pdf
The table below shows all relevant interests of
Directors in units, which include legal and beneficial
interests in Vital units.
As at 30 June 2019
Holdings
(number
of units)
non-beneficial
Holdings
(number
of units)
beneficial
Andrew Evans54,723473,025
Paul Dalla Lana110,823,292
Bernard Crotty
David Carr
Graham Stuart
* Paul Dalla Lana (Chairman, CEO and trustee) and Bernard Crotty
(President and trustee) are Officers and/or shareholders of NWH REIT
(a trust organised under the laws of Ontario, Canada). NWH REIT directly
or indirectly holds approximately 110.8 million units in Vital.
Independent Directors
The Manager recognises that Independent Directors
are important in assuring unitholders that the Board
is properly fulfilling its role and is diligent in holding
management accountable for its performance. The
procedures in place for determining independence is
whether the director is independent of management
and free of any business or other relationship which
could materially interfere with, or could reasonably
be perceived to materially interfere with, the exercise
of their unfettered and independent judgement.
Biographies of each Board member including their
skills, experience and expertise are included in the
Board of Directors section on pages 22-23.
The Manager has announced a search for a third
Independent Director and it is expected the
appointment will be made by the end of calendar 2019.
Diversity
At a Board level, diversity of experience is critical
to ensure a healthy exchange of ideas and opinions to
deliver higher quality decision making and outcomes.
All Board appointments are always based on merit,
and diversity (including gender and ethnicity).
Healthcare real estate is a specialised sector and the
Board believes it is important to have members with
a diverse range of backgrounds, skills and experience
to ensure robust discussion. It is also important to
balance skills and knowledge gained through length of
tenure and the value of fresh ideas in decision-making.
The table below summarises the skills, experience and
length of service of the current Board.
Skills &
Experience
Andrew
Evans
Bernard
Crotty
Paul
Dalla
Lana
Graham
Stuart
Accounting/
finance/
economics
••••
Commercial real
estate/asset
management/
valuation
••••
Corporate
governance
••••
Legal/regulatory
••
International
business
••••
Tenure (years)127.57.50.5
28
VITAL HEALTHCARE PROPERTY TRUST ANNUAL REPORT 2019

A majority of the directors are members of
professional organisations such as the Institute of
Directors (or equivalent) or other industry specific
and relevant organisations which support the ongoing
education and training of professional directors.
Board and Director Performance
Regular assessment of the Board and individual
director’s performance is a process determined by the
Chair. This takes into account the overall attendance,
contribution and experience of each individual
member concerned.
Chair
The roles of Chair and Interim Manager are separated
to increase accountability and facilitate more effective
monitoring and oversight of management. At the
financial year-end and at the date of this report,
Bernard Crotty is Chair and Miles Wentworth is Interim
Manager of the Manager. Bernard’s role as Chair is
to provide leadership to the Board of Directors and
is accountable to the Board. Miles’s primary role is
to ensure management’s delivery on the strategy
approved by the Board.
AUDIT COMMITTEE
The Audit Committee is responsible for overseeing
the financial and accounting responsibilities of Vital.
The minimum number of members on the Audit
Committee is three members who must be directors.
The majority of members must be Independent
Directors and at least one member must have an
accounting or financial background.
The Audit Committee Charter is available on
Vital’s website
http://www.vitalhealthcareproperty.co.nz/sites/default/
files/images/Audit%20Committee%20Charter%20
August%202018%20Website%20Edition.pdf
The members of the Audit Committee are Graham
Stuart (Chair), Andrew Evans and Bernard Crotty.
The Audit Committee assists the Board in fulfilling
its corporate governance and disclosure
responsibilities with particular reference to financial
matters, and internal and external audit, and is
specifically responsible for:
• Recommending to the Board the appointment/
removal of Vital’s external auditor
• Supervising and monitoring external audit
requirements
• Reviewing annual and interim financial statements
prior to submission for Board approvals
• Reviewing and approving quarterly distributions with
recommendation for Board approvals
• Reviewing the performance and independence of the
external auditor
• Monitoring compliance with the Financial Markets
Conduct Act 2013, Financial Reporting Act 2013,
Companies Act 1993 and the NZX Listing Rules
Attendance at Audit
Committee Date of Appointment
Claire Higgins (Chair*) 3/316 January 2012
(*Resigned 1 April 2019)
Andrew Evans 4/414 November 2011
Bernard Crotty 4/416 January 2012
Graham Stuart
(Chair**)
1/19 May 2019
( **Replacement of Claire
Higgins as Chair)
Employees and directors who are not members may
attend the audit committee meetings on an invitation
only basis.
CONTINUOUS DISCLOSURE
It is important that the market and investors feel
confident in the timing or manner of any buying or
selling of Vital units. As a NZX issuer, the Manager
is acutely aware of the need to ensure the market,
investors and regulators remain fully informed of any
material or price sensitive information relevant to
Vital. The Board and all management employees are
aware of the NZX Continuous Disclosure requirements
and Vital has internal procedures in place to ensure
compliance. The Manager’s Continuous Disclosure
Policy is available on Vital’s website
http://www.vitalhealthcareproperty.co.nz/sites/
default/files/images/Code%20of%20Conduct.pdf
SUSTAINABILITY
From a sustainability perspective, the Board is
conscious that an awareness of an organisation’s
impact on the environment over and above its financial
performance is important to investors. The Board
acknowledges this and wherever possible, actively looks
to encourage environmentally sustainable behaviour
from its staff (through paper and waste recycling),
investors (greater use of electronic communications)
and key partners (recommending environmentally
sustainable practices for brownfield projects).
29

COMMUNITY / SOCIAL RESPONSIBILITY
The Board and the Manager recognise that engaging
with investors means more than just measuring
traditional financial performance or shareholder
returns. As part of its corporate and social
responsibility programme, the Manager has a charity
and sponsorship committee which aims to support its
employees and the communities in which it operates.
These provide two types of sponsorships as follows;
• eligible employees are entitled to take one day per
year paid leave to participate in company sponsored
charity activities, or individual charity activities as
approved by the Charity Committee; and
• an individual employee may request sponsorship
for healthcare related charity events in which
they participate.
Organisations which have benefitted from this support
include the Child Cancer Foundation, Breast Cancer
Foundation, Canteen, the Epworth Foundation and the
Keystone Trust.
MANAGER’S REMUNERATION
The basis on which the Manager is entitled to receive
management fees and incentive fees is stipulated in
the Trust Deed.
Management fees are charged, in respect of each
month, a base fee equal to 0.75% per annum of the
monthly average of the Gross Value of the assets
of Vital for the quarter ended on the last day of
that month. The incentive fee is an amount equal
to 10% per annum of the average annual increase
in the Gross Value of Vital over the relevant financial
year and two preceding financial years.
The Manager is required to apply the incentive
fee in subscribing for new units in Vital issued at
the weighted average price. The remuneration
of the Manager for services as manager is subject
to an overall limit of 1.75% per annum of the Gross
Value of Vital.
The Manager and the Supervisor are both
entitled to be reimbursed out of the Trust Fund for
all expenses, costs or liabilities incurred by them
respectively in acting as Manager and Supervisor.
As described above, 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. This revised basis remains
subject to unitholders approving amendments to
the Trust Deed to reflect the outlined fees. Should
unitholders not approve such an amendment then
the calculation of management and incentive fees
will remain as currently stipulated in the Trust Deed.
Supervisor’s Remuneration
The Supervisor is entitled to receive fees in
respect of its services based on the average gross
value of the assets of Vital as follows: 0.10% per
annum on the first $100m, then 0.08% per annum
on the next $25m, then 0.05% per annum on the next
$25m and 0.03% per annum on any amount over
$150m. The Supervisor is also entitled to reasonable
reimbursement for special attendances.
Directors’ remuneration
The basis for directors’ fees is set out in the Board
Charter which seeks to pay market level remuneration
which is fair and reasonable. The Manager believes it
is important to attract and retain high quality directors
who can bring a valuable and diverse set of skills and
experience to the Trust.
Insurance and Indemnities
In accordance with the Board Charter, the Manager
has provided insurance and indemnities to its directors
and officers for any liability / losses arising in respect
of actions or omissions occurring during the normal
carrying out of their duties.
30
VITAL HEALTHCARE PROPERTY TRUST ANNUAL REPORT 2019

RISK MANAGEMENT
The Board of Directors maintains a sound
understanding of key risks faced by Vital.
Effective management of all financial and
non-financial risks is fundamental to the delivery
of the Board’s strategy.
As part of its framework, the Board and Audit
Committee work closely with management and
external auditors to support the identification,
management and reporting of certain financial
and non-financial risks to Vital. In addition, the
Manager will engage other external advisers as
appropriate to deal with specific risks. Vital and
the Manager have a risk management framework
which is integrated into day-to-day operations.
This is part of Vital’s overall compliance assurance
programme which is audited on an annual basis
with risk groups reviewed annually.
SECURITY TRADING POLICY
The Manager’s directors, officers and employees,
their families and related parties must comply with
the Security Trading Policy. The Manager is committed
to ensuring compliance with legal and regulatory
requirements with respect to insider trading and
restricted persons trading.
To assist with such compliance, the Manager’s
Security Trading Policy identifies circumstances
where directors, officers and other restricted persons
are permitted to trade, or are prohibited from trading,
units in Vital. Compliance with these policies is
monitored by the Board. In addition, all trading by
directors and officers of the Manager is required
to be reported to NZX in accordance with the Financial
Markets Conduct Act 2013. The holdings of directors
of the Manager are disclosed on page 28.
The Manager’s Securities Trading Policy is available
on Vital’s website:
http://www.vitalhealthcareproperty.co.nz/sites/default/
files/images/Security%20Trading%20Policy_0.pdf
HEALTH AND SAFETY
The directors and Manager are committed to
ensuring that as far as practical, a safe and healthy
working environment is provided for all employees,
tenants, contractors and others who may visit our
properties. The Trust’s Health & Safety policy aims
to reflect this commitment. Vital and the Manager
have implemented site specific hazard registers in
New Zealand which can be updated in real time and
similar processes apply in Australia. The Manager has
implemented an Operational Risk and Compliance
Committee which meets on a regular basis and a
standing agenda item is Health and Safety.
EXTERNAL AUDITORS
The Audit Committee Charter sets out the procedures
to be followed to ensure the independence of the
Trust’s external auditor.
The Audit Committee is responsible for recommending
the appointment of the external auditor and
maintaining procedures for the rotation of the external
audit engagement partner. Under the Audit Committee
Charter, the external audit engagement partner must
be rotated at least every five years.
The Audit Committee Charter covers provision of
non-audit services with the general principle being
that the external auditor should not have any
involvement in the production of financial information
or preparation of financial statements such that they
might be perceived to be auditing their own work. It is
however appropriate for the external auditor to provide
services of due diligence on proposed transactions and
accounting policy advice.
To maximise the effectiveness of communication
at the Annual Meeting, the Manager also requires
its external auditors to attend the meeting and be
prepared to answer unitholders’ questions about the
conduct of the audit, as well as the preparation and
content of the independent auditor’s report.
Vital undertakes an annual audit engagement
with its external auditor. As part of the process the
Audit Committee identifies any key areas of focus and
reporting required of the auditors. Management is
required to attend the meeting to discuss the findings
of the report and respond to queries.
Any recommendations for improvement are discussed
and management is required to agree a timetable for
the implementation of the changes.
Following careful consideration and recommendation
from the Audit Committee, the Board appointed the
firm of Deloitte as the Trust’s statutory auditor.
The firm of KPMG has been appointed as the auditor
of the Manager.
31

COMMUNICATION WITH UNITHOLDERS
A key focus of investor relations is to ensure the
market and investors are informed of all details
necessary to assess their investment and Vital’s
performance as specified by NZX Listing Rules.
The Board aims to foster constructive communications
and encourages all stakeholders to engage with Vital.
A key element of corporate communication is the
Trust’s website at www.vitalhealthcareproperty.co.nz.
The website enables all existing and potential
unitholders to view information including: an overview
of the business and corporate structure, a history of
financial and investment performance, key calendar
dates and the ability to access and download all NZX
announcements, presentations and investor forms.
The website also includes key corporate governance
documents including the Board Charter, Statement
of Investment Objectives (SIPO) and other key
policy documentation.
The Manager also actively encourages engagement
through a communication strategy which includes:
• The Annual Meeting for the unitholders to meet
with and ask questions of the Board, the Supervisor,
management and external auditors
• Any other meetings called to obtain approval for the
Manager’s action as appropriate
• Results webcasting providing all investors with the
ability to listen and ask questions of management
• Various investor communications including Annual
and Interim Reports
• Newsletters and periodic investor roadshows
• Regular reminders to unitholders they have the
option to receive communications electronically
• Periodic and continuous disclosure to NZX
• Notices and explanatory memoranda for Annual
and Special Meetings
Vital also has a toll-free contact number (0800 225 264)
and general service and enquiry email address
(enquiry@vhpt.co.nz) for the Manager to receive any
market or investor enquiries.
32
VITAL HEALTHCARE PROPERTY TRUST ANNUAL REPORT 2019

Financial Statements
33
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 ReportFIN-31

VITAL HEALTHCARE PROPERTY TRUST FINANCIAL STATEMENTS 2019
FIN-1FINANCIAL STATEMENTS
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-2
FINANCIAL STATEMENTS

VITAL HEALTHCARE PROPERTY TRUST FINANCIAL STATEMENTS 2019
FIN-3FINANCIAL STATEMENTS
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-4
FINANCIAL STATEMENTS

VITAL HEALTHCARE PROPERTY TRUST FINANCIAL STATEMENTS 2019
FIN-5FINANCIAL STATEMENTS
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).
FIN-5
FINANCIAL STATEMENTS
VITAL HEALTHCARE PROPERTY TRUST ANNUAL REPORT 2019

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-6
FINANCIAL STATEMENTS

VITAL HEALTHCARE PROPERTY TRUST FINANCIAL STATEMENTS 2019
FIN-7FINANCIAL STATEMENTS
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
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.
FIN-7
FINANCIAL STATEMENTS
VITAL HEALTHCARE PROPERTY TRUST ANNUAL REPORT 2019

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-8
FINANCIAL STATEMENTS

VITAL HEALTHCARE PROPERTY TRUST FINANCIAL STATEMENTS 2019
FIN-9FINANCIAL STATEMENTS
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
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.
FIN-9
FINANCIAL STATEMENTS
VITAL HEALTHCARE PROPERTY TRUST ANNUAL REPORT 2019

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-10
FINANCIAL STATEMENTS

VITAL HEALTHCARE PROPERTY TRUST FINANCIAL STATEMENTS 2019
FIN-11FINANCIAL STATEMENTS
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
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
FIN-11
FINANCIAL STATEMENTS
VITAL HEALTHCARE PROPERTY TRUST ANNUAL REPORT 2019

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-12
FINANCIAL STATEMENTS

VITAL HEALTHCARE PROPERTY TRUST FINANCIAL STATEMENTS 2019
FIN-13FINANCIAL STATEMENTS
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
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.
FIN-13
FINANCIAL STATEMENTS
VITAL HEALTHCARE PROPERTY TRUST ANNUAL REPORT 2019

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-14
FINANCIAL STATEMENTS

VITAL HEALTHCARE PROPERTY TRUST FINANCIAL STATEMENTS 2019
FIN-15FINANCIAL STATEMENTS
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
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 International
28,85828,3875.35.5100.0100.022.723.7
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 Limited
28,00028,5006.16.194.291.56.47.0
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-15
FINANCIAL STATEMENTS
VITAL HEALTHCARE PROPERTY TRUST ANNUAL REPORT 2019

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 International
28,85828,3875.35.5100.0100.022.723.7
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 Limited
28,00028,5006.16.194.291.56.47.0
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-16
FINANCIAL STATEMENTS

VITAL HEALTHCARE PROPERTY TRUST FINANCIAL STATEMENTS 2019
FIN-17FINANCIAL STATEMENTS
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
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
FIN-17
FINANCIAL STATEMENTS
VITAL HEALTHCARE PROPERTY TRUST ANNUAL REPORT 2019

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-18
FINANCIAL STATEMENTS

VITAL HEALTHCARE PROPERTY TRUST FINANCIAL STATEMENTS 2019
FIN-19FINANCIAL STATEMENTS
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
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.
FIN-19
FINANCIAL STATEMENTS
VITAL HEALTHCARE PROPERTY TRUST ANNUAL REPORT 2019

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-20
FINANCIAL STATEMENTS

VITAL HEALTHCARE PROPERTY TRUST FINANCIAL STATEMENTS 2019
FIN-21FINANCIAL STATEMENTS
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
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.
FIN-21
FINANCIAL STATEMENTS
VITAL HEALTHCARE PROPERTY TRUST ANNUAL REPORT 2019

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-22
FINANCIAL STATEMENTS

VITAL HEALTHCARE PROPERTY TRUST FINANCIAL STATEMENTS 2019
FIN-23FINANCIAL STATEMENTS
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
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
FIN-23
FINANCIAL STATEMENTS
VITAL HEALTHCARE PROPERTY TRUST ANNUAL REPORT 2019

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-24
FINANCIAL STATEMENTS

VITAL HEALTHCARE PROPERTY TRUST FINANCIAL STATEMENTS 2019
FIN-25FINANCIAL STATEMENTS
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
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.
FIN-25
FINANCIAL STATEMENTS
VITAL HEALTHCARE PROPERTY TRUST ANNUAL REPORT 2019

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-26
FINANCIAL STATEMENTS

VITAL HEALTHCARE PROPERTY TRUST FINANCIAL STATEMENTS 2019
FIN-27FINANCIAL STATEMENTS
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
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.
FIN-27
FINANCIAL STATEMENTS
VITAL HEALTHCARE PROPERTY TRUST ANNUAL REPORT 2019

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-28
FINANCIAL STATEMENTS

VITAL HEALTHCARE PROPERTY TRUST FINANCIAL STATEMENTS 2019
FIN-29FINANCIAL STATEMENTS
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
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.
FIN-29
FINANCIAL STATEMENTS
VITAL HEALTHCARE PROPERTY TRUST ANNUAL REPORT 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)
FIN-30
FINANCIAL STATEMENTS

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 financial 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.
FIN-31
VITAL HEALTHCARE PROPERTY TRUST ANNUAL REPORT 2019
INDEPENDENT AUDITOR’S REPORT

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.
FIN-32
INDEPENDENT AUDITOR’S REPORT

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
FIN-33
VITAL HEALTHCARE PROPERTY TRUST ANNUAL REPORT 2019
INDEPENDENT AUDITOR’S REPORT

UnitHolder Information
Analysis of shareholding as at 31 August 2019
Holding Range
Number of
unitholdersTotal units
% of total
units issued
1 to 1,999459372,6220.08
2,000 to 4,9997232,524,8770.56
5,000 to 9,99910487,515,0751.67
10,000 to 49,999209345,172,72310.01
50,000 to 99,99928218,773,9904.16
100,000 to 499,99912021,002,9074.65
500,000 to 999,999106,327,6521.40
1,000,000 and above16349,576,12477.48
Total4,751451,265,970100.0
Substantial product holders as at 31 August 2019
Unitholder
Date of
notice filed
Number of
units held at
date of notice
Northwest Healthcare Properties
Real Estate Investment Trust28 August 2019112,743,175
Accident Compensation Corporation24 June 201922,511,443
Forsyth Barr Investment Management Limited7 March 201931,428,086
67

Twenty largest security holders as at 31 August 2019
UnitholderTotal
% of total
units issued
NZGT Security Trustee Limited 108,823,292 24.12
Forsyth Barr Custodians Limited 54,945,573 12.18
Accident Compensation Corporation 23,253,711 5.15
HSBC Nominees (New Zealand) Limited 19,931,560 4.42
Citibank Nominees (New Zealand) Limited 17,152,124 3.80
Custodial Services Limited 15,063,666 3.34
ANZ Wholesale Trans-Tasman Property Securities Fund 11,024,650 2.44
BNP Paribas Nominees (NZ) Limited 10,994,525 2.44
Custodial Services Limited 9,739,361 2.16
Custodial Services Limited 8,618,583 1.91
Investment Custodial Services Limited 7,542,444 1.67
FNZ Custodians Limited 7,301,900 1.62
HSBC Nominees (New Zealand) Limited A/C State Street 7,027,146 1.56
JPMorgan Chase Bank NA NZ Branch 6,677,878 1.48
BNP Paribas Nominees (NZ) Limited 4,551,226 1.01
ANZ Wholesale Property Securities 4,502,150 1.00
Custodial Services Limited 4,489,363 0.99
New Zealand Depository Nominee Limited 3,666,471 0.81
Custodial Services Limited 3,598,248 0.80
Tea Custodians Limited Client Property Trust Account 3,179,126 0.70
Totals 332,082,997 73.59
Total units on issue 451,265,970
68
VITAL HEALTHCARE PROPERTY TRUST ANNUAL REPORT 2019

MANAGER
NorthWest Healthcare
Properties Management Limited
Level 16, AIG Building
41 Shortland Street
Auckland 1010
PO Box 6945, Wellesley Street
Auckland 1141
Telephone: 0800 225 264
Facsimile: +64 9 377 2776
NorthWest Healthcare
Properties Management Limited
– Australia
Level 45, Rialto South Tower,
525 Collins Street
Melbourne 3000
DIRECTORS OF THE MANAGER
Bernard Crotty
Andrew Evans
Paul Dalla Lana
Graham Stuart
AUDITOR
Deloitte Limited
Deloitte Centre
80 Queen Street
Auckland 1010
Private Bag 115-033
Auckland 1140
Telephone: +64 9 303 0700
Facsimile: +64 9 303 0701
LEGAL ADVISERS TO THE TRUST
AND THE MANAGER
Bell Gully
Vero Centre
48 Shortland Street
PO Box 4199
Auckland 1140
Telephone: +64 9 916 8800
Facsimile: +64 9 916 8801
Ashurst Australia
Level 26
181 William Street
GPO Box 4958
Melbourne, Victoria 3001
Australia
Telephone: +61 3 9679 3000
Facsimile: +61 3 9679 3111
Directory
TRUSTEE
Trustees Executors Limited
Level 7, 51 Shortland Street
Auckland 1010
PO Box 4197
Auckland 1140
Telephone: +64 9 308 7100
Facsimile: +64 9 308 7101
BANKERS TO THE TRUST
ANZ Bank New Zealand Limited
ANZ Centre
23-29 Albert Street
Auckland 1010
Australia and
New Zealand Banking
Group Limited
2/100 Queen Street
Melbourne, Victoria 3000
Australia
Bank of New Zealand
Deloitte Centre
80 Queen Street
Auckland 1010
National Australia Bank
Level 22, 255 George Street,
Sydney, NSW 2000, Australia
UNIT REGISTRAR
Computershare Investor
Services Limited
159 Hurstmere Road
Takapuna, Auckland 0622
Private Bag 92119
Auckland 1142
New Zealand
vital@computershare.co.nz
Telephone: +64 9 488 8777
Facsimile: +64 9 488 8787
69
insight
creative.co.nz
VIT139

VITALHEALTHCAREPROPERTY.CO.NZ

Distribution reinvestment plan strike price set at $2.6386 Vital allotment of distribution reinvestment plan units

Data sourced from publicly available filings. Our datasets may not be complete. Automated analysis can produce errors. If you believe any data on this page is incorrect, please contact us at hello@nzxplorer.co.nz. For informational purposes only. Not investment advice.