Vital Announces First Quarter Results

VITAL HEALTHCARE PROPERTY TRUST FIRST QUARTER UPDATE 2021
TOTAL RETURN
12.7%
12 MTHS TO
30 SEP 20
RENT COLLECTED
>99%
Dear Unitholders,
NorthWest Healthcare Properties Management Limited (NorthWest), as
manager of the Vital Healthcare Property Trust (Vital), is pleased to update
you on the quarter ended 30 September 2020 (Q1FY21).
Performance
Vital recorded a 9.1% increase in net property income over Q1FY21
compared to the first quarter of FY20. This increased income plus lower
expenses led to a 30.4% increase in operating profit and a 35.0% increase in
AFFO per unit.
For the 12 months ended 30 September 2020, Vital recorded a total return
of 12.7% (unit price appreciation plus distributions) versus the benchmark
S&P/NZX All Real Estate Index which recorded a fall of 4.3%. This represents
a 17.1% outperformance by Vital compared with its peers.
Developments to enhance future earnings growth
Vital's existing ~$250m development pipeline remains underway with
significant progress recorded during Q1FY21 in both New Zealand and
Australia. In addition, approximately $100m of new brownfield
developments were announced following the end of Q1FY21 including:
1.A$22.6m expansion and upgrade of Belmont Private Hospital. This is a
specialist mental health facility approximately 12kms from Brisbane's CBD,
leased to Healthe Care (Australia's third largest private hospital operator)
for 25 years. Following the development, it will comprise 183 beds.
2.A$18.6m expansion of Abbotsford Private Hospital. This is a 30-bed
specialist mental health and addiction treatment facility approximately
3kms from Perth's CBD, leased to Healthe Care for 21 years. Following
the development, it will comprise 77 beds.
3.A$21.7m stage one development of a new health precinct in Adelaide to
be known as Playford Health Hub. This property is adjacent to South
Australia's third largest public hospital, Lyell McEwin. This first stage is
expected to comprise a mixture of parking for the public health department
and ancillary retail. Future stages are expected to comprise a major
medical office building and private hospital.
These developments will be partially funded by the $157.5m equity raising
undertaken in October and November 2020. A full development list is
included on page 3 of this update.
Portfolio remains secure
Vital's weighted average lease expiry increased to 18.5 years from
18.1 years at 30 June 2020 primarily due to successful leasing (lease
extensions, renewals and new leases). This market leading WALE is expected
to be further enhanced by the developments referred to above, providing
income security for unitholders.
Vital’s portfolio is valued at just under $2.2 billion at 30 September 2020.

First Quarter Update
1 July – 30 September 2020
Balance sheet strengthened
Vital has received credit approved offers to extend the duration of both the
A$125m facility expiring in March 2021 and the A$115m facility expiring in
October 2021 from its existing financiers. Pricing is in line with current market
conditions, and work is continuing on executing Vital's capital management
strategy to diversify financiers and introduce longer duration debt facilities to
the Trust.
Governance changes near complete
An extensive fee and governance review was undertaken in 2019 and
approved by unitholders at the 2019 Annual Meeting. This review included
lowering base management fees which saved unitholders $2.2m in FY20.
The appointment of Graham Stuart as Independent Chairman following the
2020 Annual Meeting (subject to his re-election) completes these
governance changes following which the Board of Vital’s manager will be
led by an Independent Chairman, will comprise a majority of Independent
Directors and its Audit Committee will continue to be chaired by an
Independent Director.
Unitholder engagement remains a focus
Vital's Annual Meeting is scheduled for 17 November 2020. We encourage
you to attend in person or on-line. Details are available at vhpt.co.nz.
Vital's website is in the process of being updated to enhance information
available to our unitholders.
Vital's half year results are expected to be released in late February 2021.
Finally, on a personal note, one of the best aspects of this role is the
opportunity to engage directly with unitholders. I am available to discuss
Vital's performance and strategy at any time via phone, email or at various in-
person events including several planned with the New Zealand Shareholders
Association and the NZX over coming months.
Thank you for your on-going support for Vital.

Aaron Hockly, Fund Manager
10 November 2020

VITAL HEALTHCARE PROPERTY TRUST FIRST QUARTER UPDATE 2021
FINANCIAL PERFORMANCE (UNAUDITED)
For the period
3 months
Sep-20
$000s
3 months
Sep-19
$000s
Variance
$000s
Change
%
Gross property income32,31929,336
Property expenses(5,046)(4,346)
Net property income27,27324,9902,2839.1%
Corporate expenses(1,116)(1,205)
Management fees (base & incentive)(4,207)(4,917)
Net finance expenses(7,401)(7,708)
Operating profit14,54911,1603,38930.4%
Non-operating gains/(losses)
Fair value gain/(loss) on investment property2,7033,772
Fair value gain/(loss) on derivatives(4,417)(12,707)
Realised & unrealised gain/(loss) on foreign exchange(2,678)(4,848)
Profit/(Loss) before income tax10,157(2,623)12,780n.a.
Current and deferred taxation(342)1,182
Profit/(Loss) for the period attributable to unitholders of the Trust9,815(1,441)11,256n.a.
Funds from Operations (FFO)13,70910,0463,66336.5%
Adjusted Funds from Operations (AFFO)13,3479,7503,59736.9%
AFFO per unit2.932.170.7535.0%
Weighted average units on issue (000s)454,795448,4606,3351.4%
Average NZD/AUD exchange rate0.92580.9463
LIKE-FOR-LIKE FINANCIAL PERFORMANCE (UNAUDITED)
For the period
3 months
Sep-20
$000s
3 months
Sep-19
$000s
Variance
$000s
Change
%
Gross property income29,54529,131
Property expenses(4,535)(4,435)
Like-for-like net property income25,01024,6963141.3%
Net property income from acquisitions991-
Net property income from developments1,324310
Straight-line rent(346)(217)
Non-recurring R&M(147)201
Foreign exchange441-
Net operating income27,27324,9902,2839.1%
FINANCIAL POSITION (UNAUDITED)
As at
Sep-20
$000s
Jun-20
$000s
Variance
$000s
Change
%
Assets
Investment properties
1
2,173,4792,086,30987,1704.2%
Other assets26,12918,909
Liabilities
Borrowings881,134814,53766,5978.2%
Other liabilities224,001211,702
Debt to gross assets40.1%38.7%1.4%
Total unitholders' funds1,094,4731,078,97915,4941.4%
Units on issue (000s)457,767453,783
Net tangible assets ($/unit)2.392.380.010.4%
Period end NZD/AUD exchange rate0.92410.9345
1 Includes $93m of assets classified as held for sale

VITAL HEALTHCARE PROPERTY TRUST FIRST QUARTER UPDATE 2021
DEVELOPMENT PROGRESS
DevelopmentDevelopment work being undertaken
Development
cost
Spend
to date
Forecast
completion
date
AUSTRALIAN PROJECTS(A$m)(A$m)
Epworth Eastern (VIC)
New 14 storey tower incorporating 5 operating theatres, 60 beds, levels of consulting and
refurbishment of the existing medical centre
126.241.6Late-21
South Eastern PH (VIC)New day oncology centre, new 10 bed ward and conversion of shared rooms to singles9.96.6Late-21
North West Private (TAS)New 8 bed mental health unit3.40.0Mid-21
Eden Rehab (QLD)New 26 bed mental health ward, rehab unit and refurbishment of existing wards12.41.2Early-22
Abbotsford Private (WA)47 beds, parking, therapy rooms and admin - planning approved18.60.0Late-21
Belmont (QLD)48 new inpatient beds, 13 private practice consulting suites and 70 new car parks22.60.0Mid-22
Playford Health Hub Stage 1
(SA)
Multi-deck car park (circa 450 spaces) & ground floor retail20.70.4Late-21
Total Australian Projects213.849.8
NEW ZEALAND PROJECTS(NZ$m)(NZ$m)
Wakefield (WLG)Staged demolition and redevelopment of entire hospital100.941.2
Staged
21-23
Royston (HB)
New CSSD, reception upgrade, two theatre shells, one theatre fitout and general
refurbishment
10.79.1Late-20
Royston DSU (HB)New standalone two theatre day surgery unit8.11.7Late-21
Total New Zealand Projects119.752.0
Total Projects in $NZD
1
351.1105.9
1 A$ converted at 30 Sep 2020 spot rate 0.9241
“$157.5m raised in October/November 2020 to fund developments”
Important note: The information in this investor update is general information only and does not contain all information necessary to make an investment
decision. The financial information in this investor update has not been audited. No representation or warranty, express or implied, is made to the
accuracy, adequacy or reliability of information in this update, including the financial information. This investor update contains forward looking
statements which are inherently susceptible to uncertainty. Vital’s actual results may vary materially from those expressed or implied in this investor
update. The Manager is under no obligation to provide any update the information included in this update, including as a result of the audit process.
Q1
Distribution
Payment date
17 December 2020
This distribution is an excluded distribution of
2.1875 cpu for tax purposes with no imputation
credits attached.
vhpt.co.nz
CASH
DISTRIBUTION
2.1875
CPU
DRP ACTIVE
YES
DRP
DISCOUNT
1%
VITAL HEALTHCARE PROPERTY TRUST FIRST QUARTER UPDATE 2021