Full year results release

VITAL HEALTHCARE PROPERTY TRUST vhpt.co.nz
Managed by Northwest Healthcare
Properties Management Limited
Page 1 of 4




10 August 2023

Vital delivers healthy property income growth whilst enhancing the property portfolio
Northwest Healthcare Properties Management Limited (Northwest), as manager of Vital Healthcare
Property Trust (Vital), has today released its results for the 12 months ended 30 June 2023 (FY23).
Vital continues to have a market leading portfolio of high-quality, healthcare assets across Australia and
New Zealand valued at NZ$3.4 billion with ~99% occupancy and a weighted average lease term
(WALE) of 17 years to the leading healthcare operators for each country. Work undertaken during FY23
is expected to further enhance the quality and future earnings of the property portfolio for the benefit of
Unit Holders.
FY23 highlights include:
1. Growth in Adjusted Funds From Operations (AFFO), which is a proxy for underlying cash
earnings, of 8.1%. This includes the contribution of 5.3% net property income growth on a like-
for-like, same property basis
1
.
2. Commencement of a non-core asset divestment programme with ~NZ$155 million already
transacted and a target of a further ~NZ$100m to be divested in FY24.
3. Continuation and replenishment of Vital’s committed development pipeline including
commencement of construction of
2
:
a. A$140 million RDX development on the Gold Coast.
b. NZ$43 million expansion of Ormiston Hospital in Auckland.
c. NZ$23 million expansion of Endoscopy Auckland.
d. A$64 million cancer centre at Macarthur Health Precinct, Sydney (stage 1).
e. A$29 million mental health facility at Mount Eliza, Melbourne.
4. Several significant ESG / sustainability achievements including being ranked second globally for
healthcare real estate by GRESB.
5. Delivering to the distribution guidance of 9.75 cents per unit (cpu).


1
3.6% on a constant currency basis.
2
Note all figures other than Endoscopy Auckland include land.

VITAL HEALTHCARE PROPERTY TRUST vhpt.co.nz
Managed by Northwest Healthcare
Properties Management Limited
Page 2 of 4



Fund Manager, Aaron Hockly, says that Vital is part way through a process of further upgrading and
enhancing its property portfolio, in-line with announcements made over FY23.
“This is primarily through the sale of non-core assets and the reinvestment of sales proceeds into
developing new healthcare facilities in key healthcare precincts with strong sustainability characteristics.
These enhancements are expected to support future earnings growth for Unit Holders.” says Hockly.
Macarthur Health Precinct in Campbelltown, Sydney is an example of a development where funds are
being reinvested. The precinct is anticipated to comprise a three-stage development with stage one, a
~A$64m
3
comprehensive cancer centre, currently underway (July-22 commencement) and due for
completion in the second half of FY24. Stage two is expected to comprise a major medical office
building and day surgery and due to be committed to in the next 12 – 18 months. Stage three is
expected to be an ambulatory care facility to be progressed thereafter.
“Net property income growth in FY23 was a healthy 18.1% reflecting acquisitions, developments and
rent reviews delivering a 3.6% increase on a same property, constant currency basis,” continues Hockly.
“Like many businesses, Vital has experienced the impacts of increasing interest costs contributing to rising
debt costs in FY23. We have balanced this by prudently raising equity ahead of investing in new
developments which contributed to AFFO per unit falling in FY23. We anticipate that our ongoing
portfolio enhancements will support AFFO growth per unit in future periods.”
FY23 results at a glance ($NZ)

FY23 FY22 Change
Property portfolio $3.4 billion $3.3 billion 1.2%
AFFO $73.3 million $67.8 million 8.1%
AFFO per unit (cpu) 11.18 11.92 -6.2%
NTA per unit (cpu) 2.96 3.34 -11.4%
Balance sheet gearing 36.3% 30.0% -
Weighted average cost of debt 4.93% 3.73% -
Weighted average debt maturity 3.8 years 3.9 years -
Distributions (cpu) 9.75 9.63 1.3%

Outlook
Despite recent heightened market volatility, healthcare property remains a defensive asset class,
underpinned by a high level of government support and non-discretionary spending. This has been
demonstrated by recent sales in the sector notably in Australia.
Vital has A$180m of debt headroom which, in conjunction with asset sales, will fund its development
pipeline and has no debt expiring until March 2025.
FY24 distribution guidance of at least 9.75 cpu has been provided.
Online-only Annual Report
As part of Northwest’s and Vital’s sustainability efforts, Trustees Executors Limited, as Vital’s supervisor,
has agreed to waive the Trust Deed requirement for Northwest to print and post the FY23 Annual Report
and FY24 Half Year Report and instead will post a summary report to those Unit Holders who have
elected to receive a hard copy. As usual, the full Annual Report and Half Year Report will be released to


3
Including land.

VITAL HEALTHCARE PROPERTY TRUST vhpt.co.nz
Managed by Northwest Healthcare
Properties Management Limited
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the NZX, made available on Vital’s website and emailed to Unit Holders who have provided an email
address to Computershare. In addition, Unit Holders may request a hard copy be posted to them.
Northwest will monitor Unit Holder feedback on this initiative over the next 12 months to determine, in
consultation with the Supervisor, how to proceed with subsequent reports. This initiative is expected to
save over 250,000 pages of paper and divert 500kg of waste from landfill per annum, equivalent to a
reduction in greenhouse gas emissions of 1,532.16kg CO2e.

– ENDS –
ENQUIRIES
Aaron Hockly
Fund Manager, Vital Healthcare Property Trust
Tel 09 973 7301, Email aaron.hockly@nwhreit.com
Michael Groth
Chief Financial Officer, Northwest Healthcare Properties Management Limited
Tel +61 409 936 104, Email michael.groth@nwhreit.com
About Vital (NZX code VHP):
Vital Healthcare Property Trust is an NZX-listed fund that invests in high-quality healthcare properties
in New Zealand and Australia including private hospitals (~80%* of portfolio value), ambulatory
care facilities (~16%* of portfolio value) and aged care (~4%* of portfolio value).
Vital is the leading specialist listed landlord of healthcare property in Australasia.
Vital is managed by Northwest Healthcare Properties Management Limited, a subsidiary of Toronto
Stock Exchange listed Northwest Healthcare Properties REIT, a global owner and manager of
healthcare property.
For more information, visit our website: www.vhpt.co.nz
__________________________________

* All figures are indicative, as at 30 June 2023

VITAL HEALTHCARE PROPERTY TRUST vhpt.co.nz
Managed by Northwest Healthcare
Properties Management Limited
Page 4 of 4



Disclaimer:
This document has been prepared by Northwest as manager of Vital and provides high-level summary
information only.
This document is not intended as investment, legal, tax, financial product or financial advice or
recommendation to any person and must not be relied on as such. You should obtain independent
professional advice prior to making any decision relating to your investment or financial needs.
All references to $ are to New Zealand dollars unless otherwise indicated.
This document may contain forward-looking statements. Forward-looking statements can include words
such as “expect”, “intend”, “plan”, “believe”, “continue” or similar words in connection with discussions
of future operating or financial performance or conditions. Any indications of, or guidance or outlook
on, future earnings or financial position or performance and future distributions are also forward-looking
statements. The forward-looking statements are based on management's and directors’ current
expectations and assumptions regarding the Trust’s business, assets and performance and other future
conditions, circumstances and results. As with any projection or forecast, forward-looking statements are
inherently susceptible to uncertainty and to any changes in circumstances. The Trust’s actual results may
vary materially from those expressed or implied in the forward-looking statements. Northwest, Vital and
its or their directors, employees and/or shareholders have no liability whatsoever to any person for any
loss arising from this document or any information supplied in connection with it. Northwest and Vital are
under no obligation to update this document or the information contained in it after it has been released.
Past performance is no indication of future performance.
The information in this document is of general background and does not purport to be complete. It
should be read in conjunction with Vital’s market announcements lodged with NZX, which are available
at www.nzx.com/companies/VHP.

---

Annual Report
2023
REVITALISING OUR HEALTHY PORTFOLIO

Contents
About Vital and Northwest 4
Overview of Vital 6
Key Events 10
Short, medium and longer
term progression 12
Manager’s report 15
Financial Summary
& Portfolio Metrics 19
Asset allocation 20
Australian portfolio overview 22
New Zealand portfolio overview 24
Featured Assets 26
Update on Assets
under Development 32
Sustainability 38
The Board 60
The Executive Team 62
Corporate Governance 64
Financial Statements 72
Independent auditor’s report 116
Unit Holder statistics 119
Vital’s structure 120
Directory 123
FY23 HIGHLIGHTS
~NZ$15 5m
~NZ
$ 19 2m
$2.96
NZ$65m
DIVESTMENTS COMPLETED OR
TRANSACTED
SPENT ON DEVELOPMENT AND
CAPITAL WORKS
NTA PER UNIT
DISTRIBUTIONS PAID TO
UNIT HOLDERS
As part of its sustainability efforts, hard copy Annual Reports will no longer be mailed unless specifically
requested by Unit Holders. As with previous results, the full Annual Report will be emailed to Unit Holders
and will be available on the NZX and be posted on Vital’s website: https://www.vitalhealthcareproperty.
co.nz/financial-results/. This initiative will save approximately 252,000 pages of printing per annum
and reduce our greenhouse gas emissions both through reducing printing and mailing.
Investors who would like to receive a printed Annual Report can request one by calling 0800 225 264
(toll free from within NZ), emailing enquiry@vhpt.co.nz or mailing a request to: Northwest Healthcare
Properties Management Limited, PO Box 6945, Victoria Street West, Auckland.

AWARDS &
RECOGNITION
SECOND PLACE FOR LISTED
HEALTHCARE (GLOBALLY)
2022
FINALIST 2023
AWARDS
SILVER AND FINALIST
COMMUNICATIONS AWARD
2023
SECOND
PLACE
FINALISTFINALISTSILVER
ANNUAL REPORT 2023
|
3

To be Australia and New Zealand’s leading
listed healthcare property fund.
Deliver stable and growing total Unit Holder returns,
including an attractive risk-adjusted income distribution,
majority sourced from healthcare real estate.
Vision
Mission
NZX listed property trust which
owns ~$3.4 billion of healthcare
property in New Zealand and
Australia.
Hard work, integrity, collaboration, drive,
flexibility, team work, fun and results.
We value
Northwest (Australia and
New Zealand) is the
manager of Vital, with over
60 professionals in the region.
We have offices in Auckland,
Melbourne, Sydney and the
Gold Coast.
4
|
VITAL HEALTHCARE PROPERTY TRUST

TSX listed owner and manager of NZ$12.4 billion of healthcare property
across four continents.
Be the leading global diversified
healthcare real estate company.
Provide best in-class real estate solutions to the
healthcare industry and deliver exceptional
shareholder value to investors.
EXCELLENCE
Delivering exceptional outcomes
INTEGRITY
Doing what’s right
PARTNERSHIP
Succeeding together
Vision
Mission
Values
ANNUAL REPORT 2023
|
5

WESTERN
AUSTRALIA
NORTHERN
TERRITORY
SOUTH
AUSTRALIA
NEW SOUTH
WALES
TASMANIA
VICTORIA
QUEENSLAND
5%
7%
23%
12 %
24%
Overview of Vital
1
1
All numbers quoted on this page relate to income producing properties only and exclude strategic land holdings.
6
|
VITAL HEALTHCARE PROPERTY TRUST

25%
3%
$14 5 m
5.05%
17. 8
years
9.9 years
98.9%
ANNUAL NET PROPERTY
INCOME
WEIGHTED AVE CAP RATE
WALE
AVERAGE BUILDING AGE
PORTFOLIO OCCUPANCY
ANNUAL REPORT 2023
|
7

8.1%
$15 4 m
~$2.4bn
36.3%
27%
18.1%
AFFO (CASH EARNINGS) GROWTH
1
ACQUISITIONS COMPLETED
COMMITTED AND POTENTIAL
DEVELOPMENT PIPELINE
BALANCE SHEET GEARING
GROWTH IN DISTRIBUTIONS
OVER 10 YRS (2.7%P.A.)
NET PROPERTY INCOME GROWTH
FY23 Key Numbers
1
Refer Financial Statements (Note 10) for the
reconciliation to statutory operating profit.
8
|
VITAL HEALTHCARE PROPERTY TRUST

57%
4%
16%
23%
H
O
S
P
I
T
A
L

8
0
%
O
T
H
E
R

2
0
%
Acute Hospitals 57%
Ambulatory Care 16%
Specialty Hospitals
(mental health & rehabilitation) 23%
Aged Care 4%
Healthe Care Surgical 16%
Southern Cross (NZ) 3%
Evolution Group (NZ) 15%
Epworth Foundation 16%
Hall & Prior 4%
Bolton Clarke 3%
Sportsmed 3%
Mercy Ascot (NZ) 3%
Te Whatu Ora (NZ) 2%
Other 17%
Aurora Healthcare 18%
Tenant Diversification
1
% of Rent
Sub-sector Diversification
1
% of Value
18 %17 %
16 %
4%
3%
3%
3%
3%
2%
16 %
15 %
1
Reflects the portfolio post divestment of assets currently contracted but not yet settled.
ANNUAL REPORT 2023
|
9

• A$47.1m
1
Playford Hub (Stage 2)
commenced construction.
• NZ$42.9
1
Ormiston Hospital expansion commenced main works construction
• GRESB 5-Star rating
• 2.4375 cpu distribution paid
• joined Green Building Councils NZ & Australia
• A$2.4m South Eastern Private Hospital refurbishment commenced construction
• B- result for CDP (up from C in 2021)
• 2.4375 cpu distribution paid
• A$140.7m
1
6-star Green Star RDX Bldg received Development Approval
• A$96.5 Epworth Eastern reached final Practical Completion (Consulting Suites)
• A$22.6m Belmont Private Hospital expansion received Certificate of Occupancy
JULY 2022
OCTOBER 2022
SEPTEMBER 2022
NOVEMBER 2022
DECEMBER 2022
Q1
Q2
JULY 2022
Key Events of FY23
1
including land
10
|
VITAL HEALTHCARE PROPERTY TRUST

• Finalist for INFINZ Equity Market
Transaction of the year
• A$140m
1
RDX commenced construction
• 2.4375 cpu distribution paid
• Silver medal and finalist for the
Communication special award in the
Australasian Reporting Awards
• Royston Day Surgery a finalist
in the Property Council of
New Zealand Awards
• 2.4375 cpu distribution paid
• Completion of refinancing increases
facility limit by A$100m and WA
expiry of facilities resulting in
no expiries until early 2025
MAY 2023
FEBRUARY 2023
JUNE 2023
MARCH 2023
Q4
Q3
JUNE 2023
ANNUAL REPORT 2023
|
11

1
All figures are as 30 June at the end of the financial year listed other than Net Property Income, AFFO and Distributions which are for the financial year.
2
Average building age = the later of the date of construction or the last significant capital works
3
Includes $336.6m of committed development spend remaining including fund-through developments and ~$2.0bn of developments being considered. Development timing
and therefore spend expected to be over a staged and lengthy period (at least 10 years)
493%
growth (FY12-FY23)
Maintenance of mar-
ket leading WALE
Younger buildings
reduce maintenance
capex requirements
216 %
increase (FY12 - FY23)
Enhance earnings and val-
uation growth and support
portfolio development
Concentration
risk reduced
Diversity of assets reduces
risk and enhances earnings
F Y 13FY20FY23
Total property
value
~$0.57bn
(AUS: 71%, NZ: 29%)
~$2.09bn
(AUS: 76%, NZ: 24%)
$3.38bn
(AUS: 72%, NZ: 28%)
WALE11.9 years18.1 years17.8 years
Average
Building Age
2
Data not availabile13.5 years9.9 years
Net Property
Income (annual)
$48m$100m$145m
Development
pipeline
~$60m$410m$2.4bn
3
Largest single
tenant exposure
40%47%18 %
Sector split
Hospital: 88%
Ambulatory care: 12%
Aged care 0%
Hospital: 82%
Ambulatory care: 12%
Aged care 6%
Hospital: 80%
Ambulatory care: 16%
Aged care: 4%
Weighted
average cap rate
9.30%5.54%5.05%
Reduction demonstrates: (1)
quality of assets and tenants;
and (2) value added by leasing
and development undertaken
Short, medium and longer
term progression
12
|
VITAL HEALTHCARE PROPERTY TRUST

NO DEBT EXPIRING
UNTIL MARCH 2025
Portfolio enhancements including sale of non-core
assets and development of new healthcare facilities
in core healthcare precincts with strong green
credentials support our target of growing AFFO
and distributions by 2–3% per unit per annum.
4
Net Distributable Income per unit (AFFO not reported)
Significantly ex-
panded
No debt expiring
until March 2025
40%
growth (FY12-FY23)
27%
growth (FY12-FY23)
202%
growth (FY12-FY23)
F Y 13FY20FY23
Balance sheet
gearing
42.3%38.7%36.3%
Average debt
maturity
3.8 years1.8 years3.8 years
NTA per unit
$0.98$2.38$2.96
AFFO per unit (cpu)
8.0c
4
10.45c11 . 1 8 c
Distributions
per unit (cpu)
7.7c8.75c9.75c
ANNUAL REPORT 2023
|
13

14
|
VITAL HEALTHCARE PROPERTY TRUST

Changed market conditions resulted in the Manager’s focus
shifting from acquisitions to developments majority funded
by proposed divestments. This does not represent a change
in strategy for Vital but the expediting of several previously
announced strategies to enable us to continue to deliver
growing returns for Unit Holders over the medium term.
Manager’s report
Tēnā koutou,
Northwest Healthcare Properties Management
Limited (Northwest), the Manager of Vital Healthcare
Property Trust (Vital), is pleased to report Vital’s
results for the year ended 30 June 2023 (FY23).
The sales and development programme is expected
to enhance the age, diversity, quality and resilience
of Vital’s existing portfolio. It is consistent with
Vital’s previously announced strategies particularly
of focusing on newer buildings with high green
credentials in core or emerging healthcare precincts.
FY23 highlights included:
• 1.3% increase in distributions per unit from 9.625
cpu to 9.75 cpu (consistent with guidance)
on a prudent 87% AFFO pay-out ratio.
• NZ$100m of disposals undertaken (including
one property which settled in July 2023) with
a further NZ$55m contracted for sale.
• NZ$192m of capital expenditure undertaken
comprising NZ$187m for developments,
~NZ$5m for value-add works and ~NZ$0.6m for
maintenance and tenant incentive related works.
• Commencement of ~NZ$257m of
new developments including:
• Vital’s first life sciences investment, RDX
on the Gold Coast, which is expected
to cost A$140m (including land);
• Stage 1 of the Macarthur Health
Precinct in Campbelltown, New South
Wales, being a A$64m cancer centre
(including amortising fit-out loan); and
• A$29m aged care conversion
works at Mt Eliza, Victoria.
• 5-Star rating for developments received from
independent standards organisation GRESB
(formerly the Global Real Estate Sustainability
Benchmark) as well as second place for listed
healthcare entities globally, third place for
standing investments against peers globally
and being ranked in the top quartile for
developments for all listed entities in Oceania.
• Extension of amount and tenor of debt facilities to
reduce future net income volatility for Unit Holders
and fund part of Vital’s development pipeline.
Our commitment to sustainability
Vital has continued significant Environmental, Social and
Governance efforts over the last financial year. These
efforts have aligned with the Northwest overarching
Sustainability Framework cultivating healthy and
sustainable places through Thriving Partners, Healthy
Planet, Strong Communities, and an Inclusive Company
along with a variety of Enablers to support this.
Key sustainability achievements:
• Establishing a Data Baseline Year
for Emissions Reporting
• We are required to set a predetermined
baseline year for data that our emissions targets
are assessed against. 2022 was agreed as
our most robust and complete set of annual
utility and greenhouse gas relating data. This
effort was achieved through collaboration and
partnership with our key tenants in understanding
the requirements of utility data collection.
Through these relationships we achieved a 100%
data collection rate for all utilities at landlord-
controlled properties and 97% electricity data
collection at tenant-controlled properties.
• Advancing our commitment to Net Zero by 2050
• Net Zero emissions refer to reducing CO
2e

emissions as close to zero as possible,
with any remaining emissions neutralised
through carbon removal projects.
• Vital remains steadfast to our emissions target and
is actively engaging in setting a SBTi (Science
Based Target Initiative) aligned short-term 2030
ANNUAL REPORT 2023
|
15

8.1%
INCREASE IN AFFO
(CASH IN EARNINGS)
NZ$3.4b
PROPERTY
PORTFOLIO
18.1%
INCREASE IN NET
PROPERTY INCOME
6.2%
DECREASE IN
AFFO PER UNIT
16
|
VITAL HEALTHCARE PROPERTY TRUST

interim target covering Scope 1 (direct CO
2e
emissions),
Scope 2 (indirect CO
2e
emissions from the purchase of
electricity) and a minimum of 67% of Scope 3 (indirect
CO
2e
emissions occurring in the value chain) emissions.
• To further understand our current business operations
we have conducted Level 2 Energy Audits at all
landlord-controlled properties leading to detailed
roadmaps of energy conservation measures as
opportunities to enact against our emission target.
• Commitment to cultural acknowledgement
• Northwest recognises a social responsibility to not
only achieve better health outcomes in communities
we serve but also to improve reconciliation outcomes
with Australia’s First Nations peoples. Northwest has
commenced their reconciliation journey to develop a
Reflect Reconciliation Action Plan (RAP) to integrate
and prioritise reconciliation across the business.
• A Reflect RAP is a 12 month commitment that steps out
actions we will take for reconciliation initiatives in a
meaningful, mutually beneficial and sustainable way. As
outlined in Reconciliation Australia’s RAP Framework, there
are four different types of RAP that are each designed
to suit varying stages of an organisations reconciliation
journey. These are Reflect, Innovate, Stretch & Elevate.
• Established a Cultural Working Group to further cultural
competency of Māori culture through an understanding
of language, history and practice of customs.
• Increased scoring in ESG reporting frameworks
• Vital’s GRESB score increased last year
as noted in highlights above.
• Vital’s CDP (formerly Carbon Disclosure Project) score
increased from a C in 2021 to a B- in 2022.
• This increase in score placed the entity in the ‘Management’
category in progress towards environmental stewardship.
The Management score indicates that Vital is showing
evidence of managing our environmental impact.
• Ongoing commitment to tenant partnership and engagement
• In FY22, Northwest conducted a global tenant engagement
survey through external consultants, Grace Hill | Kingsley
Surveys using comprehensive survey tools and benchmarked
against their reputable Kingsley Index. The Kinglsey Index is
one of the most extensive real estate benchmarks surveying
over 7.3million participants annually. Our tenants were
invited to participate through answering a 15minute survey
on a variety of tenant satisfaction matters, including ESG.
• Using this information we have established a baseline
of tenant satisfaction scores and comments, we seek
to improve these scores through a variety of actions
including tenant engagement events and succinct
communication between our asset managers.
• Launch of Sustainable Development Guidelines
• Due to the nature of Vital operations, consolidated
targets specific to development processes have been
established in line with Green Star requirements and to
further emissions targets, including embodied carbon.
• Commitment to the Task Force for Climate-
Related Financial Disclosures
• Under New Zealand legislation, Vital will submit
a disclosure aligning to the XRB Aotearoa New
Zealand Climate Standards (CS1, CS2 and CS3).
This will include information covering Governance,
Strategy, Risk Management and Metrics and Targets.
We will release this prior to October 2024.
Vital remains passionately committed to achieving
sustainability targets and our work will continue in
concentrated efforts to see these through.
Portfolio overview
Vital’s ~$3.4 billion property portfolio remains high
quality, high acuity with a long WALE and limited
upcoming expiries (on average 1.8% of the portfolio’s
rent expires per annum over the next 10 years).
Vital’s weighted average lease expiry (WALE) was 17.8 years
at 30 June 2023 compared to 17.6 years at 30 June 2022.
The average building age has been maintained at a
young 9.9 years consistent with the Manager’s strategy to
maintain or lower this key metric as a means of maintaining
relatively low capital expenditure and ensure Vital’s
assets continue to meet tenant / patient demand.
Net property income
Net property income increased by 16.1% from FY22
(excluding foreign exchange impacts), reflecting contributions
from the structured rent reviews within the portfolio,
developments and acquisitions. After adjusting for foreign
exchange, net property income increased by 18.1%.
~86% of Vital’s rent is linked to CPI. 76% of this having a
weighted average annual limit of ~3.6% with the balance
being uncapped. This structure provides Vital’s Unit Holders
with some protection in periods of elevated inflation.
Like-for-like net property income increased by
3.6% over FY23 on a same currency basis.
Acquisitions
No material new acquisitions were undertaken during FY23
reflecting a large shift in Vital’s cost of capital and a strategy
of focusing on new developments ahead of acquisitions.
Divestments
During FY23, the Manager announced a process of selling
>NZ$200m of non-core assets to fund Vital’s development pipeline.
Consistent with this announcement, $100m of divestments were
undertaken during FY23 (including one asset which settled in
July 2023) at a weighted 8.4% discount to previous book value.
A further NZ$55m of assets have been contracted for sale and
are expected to settle over the coming months. An additional
NZ$100m of non-core assets are being targeted for sale in FY24.
ANNUAL REPORT 2023
|
17

These sales, coupled with Vital’s development programme, is
expected to enhance the age, diversity, quality and resilience
of Vital’s existing portfolio. Among other enhancements, a
greater percentage of Vital’s portfolio will be green buildings
located in core or emerging healthcare precincts.
Developments
In addition to asset enhancing and maintenance capital
expenditure, Vital has ~$425m of development projects
underway in New Zealand and Australia with ~$282m
remaining to spend excluding land costs. In addition, ~$101m
of fund-through (developments where Vital is funding through
the development rather than acting as developer) developments
have been committed to with ~$55m remaining to spend.
Further details of specific developments are
available on pages 32-37 of this report.
Financial results
Cash from operations available to Unit Holders, measured by
AFFO, increased 8.1% to $73.3m. AFFO per unit was 11.18c; a 6.2%
decrease from FY22, reflecting the deployment of equity raised in
FY22 not yet fully producing income for the fund during the period.
Expenses were $75.8m, 14.5% higher than FY22 reflecting
30% higher borrowings cost due to the increased interest rate
environment coupled with higher borrowings compared to FY22.
Vital’s NTA per unit decreased by 11.4% to $2.96 primarily
due to $208.6m of property revaluation losses driven by
market forces. The revaluation losses recognised due to the
softening cap rate across the portfolio by 46bps were offset
somewhat by ~$26m gains from development margins
and ~$140m due to rental increases and leasing.
Capital management
During the year Vital’s debt facilities were increased by
~A$100m along with a renegotiation of expiring facilities.
The next debt facility expiries now occur early 2025. Vital has
a weighted average debt maturity at 30 June 2023 of 3.8
years, and management continues to investigate measures
to extend Vital’s debt tenor. Vital’s all-in weighted average
cost of debt at 30 June 2023 was 4.93% (30 June 2022:
3.73%) reflecting a challenging cost of debt environment.
$30m (before costs) of equity was raised primarily via the
Distribution Reinvestment Plan (DRP) offered to unitholders.
The debt to total assets ratio was 36.3% at 30 June 2023
(30 June 2022: 30.0%). Vital currently has approximately
A$180m of headroom under its debt facilities and considers
that along with the divestment programme underway
there is enough headroom available to facilitate the
development pipeline reported in this Annual Report.
FY24 guidance
The Board and management are pleased to provide
FY24 distribution guidance of at least 9.75 cpu (payable
quarterly) at a minim consistent with FY23 distributions.
The payout ratio is expected to be ~90% of AFFO.
Refer to disclaimer on back page of this report
for limitations to this guidance.
Outlook
Despite recent heightened market volatility, healthcare property
remains a defensive asset class, underpinned by a high level of
government support and non-discretionary spending. This has been
demonstrated by recent sales in the sector notably in Australia.
Our plan for the short to medium term is:
• Continue our sales programme with proceeds used to initially
repay debt and ultimately fund Vital’s development pipeline.
• Continue with Vital’s existing committed development pipeline
and selectively add to this pipeline where the financial
returns and / or strategic considerations make sense for
Vital’s Unit Holders. To this end, a process is underway
to bring as many potential developments into a “shovel
ready” position to enable Vital to commence specific
developments where market conditions are supportive.
• Consider alternative funding options for Vital which may include
co-ownership of existing assets and / or developments.
• Renew Vital’s 5-year portfolio strategy noting that we
have achieved many of the targets of the previous strategy
ahead of time and to reflect changed market conditions.
• Maintain Vital’s debt maturity profile and
consider further diversifying sources of debt to
support returns for Vital’s Unit Holders.
• Continue to enhance and upgrade our sustainability programme,
as part of Northwest’s wider programme, to play our part in
protecting and enhancing the environment, the communities
in which we operate and the stakeholders we serve.
• Target new potential investors in Vital noting
both the strong demand for the sector and Vital’s
current limited offshore investor base.
Nā māua noa, nā
Graham Stuart
Independent Chair
10 August 2023
Northwest Healthcare Properties Management Limited, the Manager
of Vital Healthcare Property Trust
Aaron Hockly
Fund Manager
18
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VITAL HEALTHCARE PROPERTY TRUST

Financial summary
Portfolio metrics
All figures are in New Zealand dollars (NZD) unless otherwise stated
All figures are in New Zealand dollars (NZD) unless otherwise stated
1
Excludes properties held for development
2
Disposals include Eden Private Hospital and Apollo Health and Wellness Hub.
2 019
$000s
2020
$000s
2021
$000s
2022
$000s
2023
$000s
Financial Performance
Net property income97,683100,147109,66312 3 , 018145,224
Revaluation gain/(loss) on investment properties103,55645,703235,383244,239(208,553)
AFFO and distributions
Adjusted Funds From Operations (AFFO)
1
43,89747,21157,457 6 7, 8 2 473, 335
AFFO (cpu) 9.90 10.4511 . 5 411 . 9 211 . 1 8
Cash distribution to Unit Holders (cpu)8 . 758 . 758.889.639. 75
Financial Position
Total assets1,9 31, 5432,105,2182,662,5603,399,8343,429,712
Borrowings734,211813 , 515929,3001,018,7771,239,156
Total equity1,029,7451, 078 ,9791,503,4512,165,8761,957,383
Debt to total assets ratio (%)35.338.735.030.036.3
Net tangible assets ($ per unit)2.312.382.893.342.96
2 0192020202120222023
Investment properties ($m)1,8362,086 2,6343,3393,381
Number of investment properties
1
4244414645
Occupancy (%)99.499.499.298.898.9
Weighted average lease term to expiry (years)18 .118 .118 . 717. 617. 8
12 month lease expiry (% of income)1. 71.41. 71. 71.8
ANNUAL REPORT 2023
|
19

Asset allocation
Vital invests in health ecosystems in New Zealand
and Australia. Our precinct strategy will help create
new opportunities for Vital to build out assets in
health-related precincts where public, private,
education, aged care and research uses are
closely agglomerated and interrelated.
HOSPITALS
OUT-PATIENT/
AMBULATORY
CARE
AGED CARE
LIFE
SCIENCES/
RESEARCH
Investments are targeted to
provide earnings growth
from a diversified and
defensive asset base.
20
|
VITAL HEALTHCARE PROPERTY TRUST

Target Portfolio Weightings
Comprises
Public, private, specialty, rehabilitation
and mental health hospitals
Targeting
Government supported or high
private health insurance catchments
with growing populations
Comprises
Administration, diagnostic services
and specialist consulting, primary
care out-patient facilities
Targeting
Facilities located in a healthcare precinct
1

and/or from where healthcare is delivered
Comprises
Residential aged care facilities
(excluding retirement facilities)
Targeting
High quality operators with substantial
balance sheets and <45% rent/
EBITDAR and high-quality infrastructure
Comprises
Biotechnology, pharmaceutical,
biomedical, university, health education
and other research facilities
Targeting
Specialised facilities and/or facilities
located in a healthcare precinct
1
Target portfolio weighting
50 - 70%
(30 June 2023: 80%)
Target portfolio weighting
10 - 20%
(30 June 2023: 16%)
Target portfolio weighting
10 - 20%
(30 June 2023: 4%)
Target portfolio weighting
5 - 15%
(30 June 2023: 0%. Note-
Expected to increase to ~5%
on completion of RDX)
1
Healthcare precinct = area or hub for healthcare delivery typically including at least two
of a public hospital, major private hospital, health teaching facility or health research facility
ANNUAL REPORT 2023
|
21

PRIVATE HOSPITALS
AMBULATORY CARE
AGED CARE
• 16 hospitals (acute and specialty –
mental health, rehabilitation)
• 4 hospital operators
• 77% of AUS portfolio value; 79% of AUS rent
• WALE: 19.4 years
• Abbotsford Private Hospital
• Hamersley Aged Care
• Marian Centre
• Rockingham Aged Care
• 6 assets, multiple tenants
• 17% of AUS portfolio value; 12% of AUS rent
• WALE: 6.6 years
•8 facilities
•2 operators
• 6% of AUS portfolio value; 9% of AUS rent
•WALE: 13.0 years
WESTERN
AUSTRALIA
WESTERN AUSTRALIA
4
Australian portfolio
overview
22
|
VITAL HEALTHCARE PROPERTY TRUST

• Baycrest Aged Care
• Belmont Private Hospital
• Palm Beach Currumbin Clinic
• Tantula Rise Aged Care
• The Southport Private Hospital
(under contract for sale)
• Clover Lea Aged Care
• Darlington Aged Care
• Fairfield Aged Care
• Grafton Aged Care
• Hirondelle Private Hospital
• Hurstville Private Hospital
• Lingard Day Centre
• Lingard Private Hospital
• Maitland Private Hospital
• Mons Road Medical Centre
(contracted for sale)
• The Hills Clinic
• Toronto Private Hospital
• Sportsmed Hospital, Clinic
and Consulting
• Tennyson Centre
• Playford Health Hub
• 120 Thames Street
• Ekera Medical Centre
• Epworth Camberwell
• Epworth Eastern Hospital
• Epworth Rehabilitation
• South Eastern Private Hospital
SOUTH
AUSTRALIA
NEW SOUTH
WALES
VICTORIA
QUEENSLAND
QUEENSLANDNEW SOUTH WALESSOUTH AUSTRALIA
VICTORIA
3
6
5
12
~$2.4bn
30
1
PROPERTIES (AUS)
1
Income Producing Property (excludes strategic assets)
ANNUAL REPORT 2023
|
23

New Zealand
portfolio overview
PRIVATE HOSPITALS
AMBULATORY CARE
•9 hospitals (all acute)
•6 hospital operators
• 81% of NZ portfolio value; 83% of NZ rent
•WALE: 20.6 years
• 6 assets, multiple tenants
•19% of NZ portfolio value, 17% of NZ rent
• WALE: 10.6 years
24
|
VITAL HEALTHCARE PROPERTY TRUST

• Ascot Carpark (Right of Use)
• Ascot Central
• Ascot Hospital
• Boulott Hospital
• Bowen Hospital
• Endoscopy Auckland
• Grace Hospital
• Hutt Valley Health Hub
• Kensington Hospital
• Napier Health Centre
• Ormiston Hospital
• Royston Hospital
• Wakefield Hospital
• Kawarau Park Health Precinct
• 68 Saint Asaph St
NORTH ISLAND
SOUTH ISLAND
1
Income Producing Property (excludes strategic assets)
NORTH
ISLAND
SOUTH
ISLAND
13
2
~$1.0bn
15
1
PROPERTIES (NZ)
ANNUAL REPORT 2023
|
25

Featured Assets
Valued at $1.32bn and representing
39% of Vital’s total portfolio, the five
largest assets or asset groupings (i.e.
adjoining assets or assets which form
part of the same healthcare precinct)
span Melbourne, Newcastle,
Auckland, Brisbane and Wellington
and a diverse range of tenants.
They represent a core part of Vital’s value and
earnings. Development has recently occurred or
is planned to occur at each of these sites.
It is anticipated that this list will evolve over time primarily
through developments. Notably Vital’s recent acquisition
in Campbelltown, Sydney is expected to end up being
one of Vital’s largest assets through the delivery of a
multi-staged development over several years.
26
|
VITAL HEALTHCARE PROPERTY TRUST

Comprising three income producing assets plus 5,500 square
metres of development land, this is Vital’s largest asset concentration
and forms part of the Box Hill Health and Education Precinct which
includes Box Hill Public Hospital and Box Hill (tertiary training)
Institute approximately 14 kilometres from Melbourne’s CBD.
These assets have been acquired, developed and improved
over time reflecting Vital’s two decade relationship
with Epworth (Victoria’s largest private healthcare
operator and Vital’s third largest tenant by income).
The largest of the three income producing assets, Epworth
Eastern Hospital, is valued at A$410m comprising 286
inpatient beds, 14 operating theatres, three endoscopy
suites and six floors of specialist medical consulting including
radiotherapy, medical imaging and pathology. A 14 storey
redevelopment of this hospital was completed in early 2022.
The development land at 17-23 Nelson Road is expected
to have a value if fully developed in excess of A$350m.
Epworth Eastern Precinct, Melbourne, Vic
A$490m
VALUE
ASSETS
Epworth Eastern Hospital, 17-23
Nelson Rd (development land), Ekera
Medical Centre & 120 Thames St
PATIENT BEDSLAND AREA
NLA
270~15,000sqm
~35,000sqm
PROXIMITY TO
PUBLIC HOSPITAL
% OF VITAL'S
PORTFOLIO
YEAR ACQUIRED
BY VITAL
150m
15.8%1999
ANNUAL REPORT 2023
|
27

Lingard Private Hospital Precinct, Newcastle, NSW
Comprising two income producing assets, this is Vital’s second
largest asset concentration and is fully leased to Healthe Care
Surgical (Vital’s second largest tenant by income). The assets are
~4 kilometres from Newcastle’s CBD.
Lingard Private Hospital is a 123-bed acute medical
and surgical hospital which has recently been expanded
and redeveloped and is valued at A$200m.
Due to demand at the hospital, a new day surgery unit
was completed in mid-2020 including four day theatres
and two endoscopy suites which is valued at A$43m.
A$252m
VALUEASSETS
Lingard Private Hospital, Lingard Day Centre
& 27 Hopkins Street (development land)
LAND AREANLA
~15,000sqm14 0
11,500sqm
PROXIMITY TO
PUBLIC HOSPITAL
% OF VITAL'S
PORTFOLIO
YEAR ACQUIRED
BY VITAL
3.6km8.1%2 010
PATIENT BEDS
28
|
VITAL HEALTHCARE PROPERTY TRUST

Ascot Hospital was developed in 1999 and was Vital’s first
significant hospital development. Over the last 23 years, Vital has
developed the adjoining Ascot Central (specialist centre) and
recently acquired 3,415 square metres of land with a view to further
expanding one of New Zealand’s leading health precincts.
Ascot Hospital Precinct, Auckland, NZ
$187m
VALUE
Ascot Hospital, Ascot Central,
80 Ascot Ave (development
land) & Ascot Carpark
LAND AREANLA
~40,000sqm
88
~16,000sqm
PROXIMITY TO
PUBLIC HOSPITAL
% OF VITAL'S
PORTFOLIO
YEAR ACQUIRED
BY VITAL
5.6km
5.5%
1999
PATIENT BEDS
Ascot Hospital has 12 operating theatres,
88 inpatient beds and is valued at $127m.
It is operated by Mercy Ascot, New Zealand’s second largest
private hospital operator. Ascot Central is valued at $39m and
has a range of medical and ancillary tenants including Fertility
Associates, New Zealand’s leading provider of fertility services.
ANNUAL REPORT 2023
|
29

Belmont Private Hospital, Brisbane, QLD
Belmont Private Hospital is a 150-bed general mental health
hospital approximately 12 kilometres from Brisbane’s CBD. It is the
largest mental health hospital in Queensland and offers a range of
specialist acute mental health services catering for both inpatient
and day patients.
The facility has recently substantially completed a $23m development to
add an additional 35 beds, 13 consulting suites and 70 car parks.
LAND AREANLA
~43,000sqm
~8,700sqm
PROXIMITY TO
PUBLIC HOSPITAL
% OF VITAL'S
PORTFOLIO
YEAR ACQUIRED
BY VITAL
11.0km5 .1 %2 010
15 0
PATIENT BEDS
A$158m
VALUEASSETS
Belmont Private
Hospital
30
|
VITAL HEALTHCARE PROPERTY TRUST

Wakefield Hospital is the largest private hospital in the Wellington
region, located on a 2.2 hectare site, 5 kilometres south of Wellington’s
CBD and 850 metres from Wellington Regional Hospital.
Wakefield Hospital, Wellington, NZ
Vital has committed to a full redevelopment of this facility to
provide a seismically resilient, modern and functional facility
including eight operating theatres, 47 beds, a 3,000sqm medical
consulting building and over 260 carparks. The combined value
of the development works is approximately $134m with Vital’s
commitment at $112.8m and the balance funded by Evolution
Healthcare, New Zealand’s third largest private hospital operator.
The first stage of this project involving the construction
of a new building housing medical specialist consulting
space, a full radiology unit, and new administration and
front of house area was completed in mid-2021.
Stage 2 is underway and is expected to
be completed in late 2024.
LAND AREA
NLA
~20,000sqm
14,500sqm
PROXIMITY TO
PUBLIC HOSPITAL
% OF VITAL'S
PORTFOLIO
YEAR ACQUIRED
BY VITAL
850m
4.6%2 017
68
PATIENT BEDS
$156m
VALUEASSETS
Wakefield Hospital &
678 High St (development land)
ANNUAL REPORT 2023
|
31

Update on Assets
under Development
Vital has 9 committed developments
underway at a total projected cost of
$425m with $282m remaining to spend.
In addition, Vital has $101m of fund-
through developments underway and a
potential development pipeline of $2.0bn.
Development land worth >$200m is
being prepared for future development.
During FY23 $192m was spent
on developments & capital
expenditure and ~$257m of new
developments were commenced.
All images in this section
are artists impressions.
32
|
VITAL HEALTHCARE PROPERTY TRUST

total cost incl land
A$140m
Targeting 6 star green
star certification
Reduced embodied
carbon
End of Trip Facilities
and EV charging
All electric, carbon neutral
ready building powered
by renewable energy
Climate scenario
analysis and
adaptation undertaken
WALE
8.0 years
1
forecast completion
June 2025
fully let blended yield
~5.6%
RDX is a nine-story premier health, research and
innovation (Life Sciences) building delivering
specialised health-orientated uses and is proposed to
be connected to Gold Coast Private Hospital via a link
bridge, offering a premium proposition for practitioners
seeking to provided public and private services.
RDX is targeting a 6 Star Green Star Design and As Built rating, aiming to be the first
all-electric, carbon neutral ready healthcare asset to be delivered of its kind in the
precinct. Construction has commence on site and forecast for completion in 2025.
RDX
SUSTAINABILITY FEATURES
1
estimated on practice completion
ANNUAL REPORT 2023
|
33

total cost incl land and fitout
A$64m
WALE
15.0 years
stabilised net yield
~4.3%
forecast completion
July 2024
Macarthur Health Precinct is a multi-stage NSW
precinct development located in close proximity to the
Campbelltown Public Hospital.
Stage one consists of a three storey comprehensive cancer care
and wellness centre providing radiation and medical oncology
services, diagnostics, theranostics, clinical trials, and research.
Stage 1 is registered for 6 Star Green Star Design and As-
Built certification. The facility will include ongrade parking. The
project is in construction and forecast to complete in 2024.
Stage two consists of a complimentary medical office building and short
stay surgical hospital which is currently in design. Stage 2 is registered
for 5 Star Green Star Buildings. Stages 3 and 4 are earmarked for
private hospital, mental health, healthcare innovation and research.
Macarthur Health Precinct
First healthcare precinct registered
and targeting a Green Star
Communities rating in Australia
SUSTAINABILITY FEATURES
34
|
VITAL HEALTHCARE PROPERTY TRUST

total cost incl land
A$47m
WALE
10.0 years
Stabilised net yield
~7.3%
forecast completion
April 2024
Playford Health Hub is a multi-stage health precinct
development opposite Lyell McEwin Public Hospital,
the third largest hospital in South Australia.
Stage 1 consists of retail and multideck car park anchored by a lease
to SA Health fort 250 car spaces, along with providing amenity for the
broader precinct including food outlets, supermarket, health supplies and
community services and organizations. Stage 1 was completed in 2022.
Stage 2 is a three level specialist medical office center incorporating
radiation therapy, radiology, oncology, pathology, imaging, occulting
and hospital support services with a proposed link bridge. The
building is targeting 6 Star Green Star rating. Stage 2 construction
is progressing on site and forecast for completion in 2024. Stage
3 is a purpose-built private hospital, currently in design.
Playford
ANNUAL REPORT 2023
|
35

total cost incl land
NZ$43m
WALE
20.0 years
fully let blended yield
~5.1%
forecast completion
July 2024
The Ormiston Hospital expansion is a new three
storey building with internal links to the existing
Hospital, consisting of a twenty inpatient bed ward
on level one, a three theatre endoscopy suite, future
CSSD cold shell on level two, and a 119 bay on
grade car park. The project is in construction and
due for completion in 2024.
Ormiston
36
|
VITAL HEALTHCARE PROPERTY TRUST

total cost
NZ$23m
WALE
20.0 years
net yield
~5.1%
forecast completion
November 2024
Endoscopy Auckland is a new three storey
building, providing 4 procedure rooms,
associated services, staff areas and basement
carparking. The project is in construction and due
for completion in late 2024.
Endoscopy Auckland
ANNUAL REPORT 2023
|
37

Sustainability
Ehara tāku toa I te toa takitahi, engari he toa takitini.
My strength is not as an individual, but as a collective.
Whakataukī
Māori proverb
SUSTAINABILITY
FRAMEWORK
NORTHWEST’S
SUSTAINABILITY
FRAMEWORK
Healthy planet
Deepening our contribution
to a healthy planet
Inclusive company
Building for our current team members
as well as our future employees
• Sustainability governance and team • Sustainability integration into investment processes
• Sustainable financing • Green leases • Reporting and disclosures
Thriving partners
Preparing lasting tenant spaces
for health and healing
Enablers
Strong communities
Investing in the communities we serve
38
|
VITAL HEALTHCARE PROPERTY TRUST

ACKNOWLEDGEMENT OF COUNTRY
Sustainability Framework
In December 2021, Northwest released its first sustainability
report covering all of its operations including Vital which it
manages. As a result, Vital’s sustainability framework has
now been updated to align with the Northwest framework.
This framework will continue to guide our efforts and
investments as we grow, evolve, and define our future.
Northwest acknowledges the Traditional Owners of Country throughout
Australia, especially the lands on which we live and work, and recognises
their continuing connection to lands, waters and communities.
Northwest also acknowledges the Rangatiratanga of Māori as
Tangata Whenua and Treaty of Waitangi partners in Aotearoa New Zealand.
We pay our respects to all First Nations peoples and
to Elders past, present and emerging.
Low
Medium
Low
High
Critical
MediumCriticalHigh
Community
Health, Safety,
and Wellbeing
Carbon
Disclosures
and Energy
Management
Enabling
Quality Care at
Our Properties
Healthy Building
Certifications and
Performance
Materials,
Design, & Processes
Fit for Healthcare
Tenancies &
Sustainability
Sustainability
Integration
into Corporate
Processes
Diversity, Equity,
and Inclusion
Employee
Experience
Tenant
Partnership
Experience
Corporate
Governance on
Sustainability
MATERIALITY TO INTERNAL STAKEHOLDERS
MATERIALITY TO EXTERNAL STAKEHOLDERS
Materiality
Vital continuously assesses the issues and topics that our
investors, stakeholders and employees find to be of importance.
The completed materiality assessment provides context and
direction to the broader ESG strategy. Having completed
a materiality assessment in 2021, we will look to reinforce
these findings with a reassessment of materiality measures in
2024/2025 with key internal and external stakeholders.
ANNUAL REPORT 2023
|
39

Governance structure
ESG Working Groups
ANZ Steering Committee
Global President & CEO
Vital Fund Manager
Global CAO
VP Operations
Chief Financial Officer
Executive Director(s)
VP Sustainability & Development
Sustainability Associate(s) (ANZ)
Global Sustainability Team
CAO
VP Operations
Director Sustainability (Canada)
VP Sustainability & Development (ANZ)
Sustainability Associate(s) (ANZ)
Sustainability Analyst(s) (Canada)
Project Manager (s) (Brazil, Germany)
HR Operations (Canada)
EA & Office Manager(s) (Canada, Brazil)
OPERATIONAL RISK
COMMITTEE
CHIEF ADMINISTRATIVE
OFFICER (CAO)
VITAL BOARD
SUSTAINABLE
OPERATIONS
& FACILITIES
MANAGEMENT
Responsible for
investigating and
implementing efficiency
measures across
the Vital portfolio
GLOBAL REPORTING
WORKING GROUP
Responsible for
providing direction and
strategy on Climate-
Related Disclosure
activities, including
climate related risks
and opportunities.
Responsible for ESG
related reporting
frameworks and
disclosures required
within annual
reporting period.
MODERN SLAVERY
WORKING GROUP
Responsible for
identifying and
addressing risk of
modern slavery within
Vital operations and
supply chains
CULTURAL
WORKING GROUP
Responsible for
advancing cultural
strategy and outcomes,
specific to developing
the Reconciliation Action
Plan and enhancing
Māori culture
SUSTAINABLE
DEVELOPMENT
Responsible for
managing enactment of
sustainable measures
in accordance to
the Sustainable
Development
Guidelines and Green
Star requirements
40
|
VITAL HEALTHCARE PROPERTY TRUST

ANNUAL REPORT 2023
|
41

FY23 Sustainability Achievements
and Key Commitments
Targets and achievements
Additional solar
generation in 2022
Additional meters identified
2022. 16,944 points of
utility data reported on
Air quality testing
complete
Vital base building
meters have automated
utility data capture
239,579 kWh
489
100%
100%
EV Charging
Strategy in development
to launch FY23
Net Zero Roadmaps
Individual Asset Net Zero
Roadmaps Completed
Volunteering
Launch of Company Wide
Volunteering Policy
Deployment
of Tenant Satisfaction
Survey & Employee
Engagement Survey
Vital assets achieve
Green Star
Performance Rating
31
Commitment to set near
term “Science Based
Emissions Target”
SBT
42
|
VITAL HEALTHCARE PROPERTY TRUST

1star
C
5
star
B-
DISCLOSURE INSIGHT ACTION
6
th
LISTED HEALTHCARE
REAL ESTATE GLOBALLY
AWARENESS
2
nd
LISTED HEALTHCARE
REAL ESTATE GLOBALLY
MANAGEMENT
2021
2021
2022
2022
Vital is committed to annually reporting to GRESB (formerly Global
Real Estate Sustainability Benchmark) as an internationally recognised
benchmarking process. Vital achieved a 5-Star rating and place
in the top quartile for the Healthcare Listed asset class.
The results of the 2023 disclosure are expected in Q4
where we look to publicly release our achievement.
For the third consecutive year, Vital has participated in CDP (formerly the
Carbon Disclosure Project) a not-for-profit charity providing a disclosure
framework for organisations and cities to review their environmental
footprint. Vital scored a B- for 2022 and has been assessed as
achieving a Management level for against environmental impact.
Awareness
A C score indicates awareness-level
engagement. The awareness score
measures the comprehensiveness
of a company’s evaluation of how
environmental issues intersect with
its business and how operations
affect people and ecosystems.
Management
A B score indicates environmental
management. The management
score indicates good environmental
management with evidence of
identified environmental impacts.
ANNUAL REPORT 2023
|
43

• Review of existing documentation, including
the outputs of internal workshops and climate
risk management-related documents
• Review of existing process for identifying and assessing climate-
related risks, including methodology for identifying and assessing
scope, size and impact, time horizons, value chain stages
• Identify processes for managing climate-related risks
• Full gap analysis completed
• Roadmap for achieving CRD
compliance delivered
• Review of existing documents, process, and
policies for climate risk accountability
• Board’s oversight of climate related risks and opportunities
• Management’s role on assessing and managing
climate-related risks and opportunities
• Choice of cross-industry metrics & consistency
with XRB’s climate-related metric categories
• Relevance and rationale for choice of industry-specific metrics
(as defined by XRB), and any other performance indicators
• Description and rationale for target and process for GHG
report compliance (considering 3rd-party assurance
over inventory and its link to the XRB CRD report)
Governance documentation review and gap analysisTargets and metrics – documentation review and gap analysis
Risk management and strategy – documentation
review and gap analysis
Final CRD recommendations
and roadmap
SEPTEMBERNOVEMBER
OCTOBERDECEMBER
FY22
DISCOVERSTRATEGISE
DEFINEDELIVER
Vital is a Climate Reporting Entity (CRE) and subsequently
required to comply with the Financial Sector Amendment Act
2021 to provide a climate-related disclosure. In accordance
with the External Reporting Board (XRB) Aotearoa New Zealand
Climate Standards (CS1, CS2 and CS3), Vital will release a
disclosure prior to October 2024. The XRB Standards follow
the recommendations and guidance of the Task Force on
Climate-related Financial Disclosures (TCFD) with an aim to
support the allocation of capital towards activities consistent
with a transition to a lower emissions climate-resilient future.
Vital engaged auditors Deloitte to undertake an independent
gap analysis of current business activities and operations
against the released XRB standards. The gap analysis has
enabled management to provide clear direction on informing
actions throughout many different business divisions, to be
delivered in line with the programme outlined below.
In alignment with the XRB standard’s, our climate scenario
analysis will involve climate related risk and opportunity
assessments on all standing assets across a variety of time
horizons and RCPs. To facilitate the analysis of these climate
scenarios, Vital was an active participant in the working group
collaborating to deliver the NZGBC Climate Scenarios
for the Construction and Property Sector document.
Climate Related
Disclosure Reporting
44
|
VITAL HEALTHCARE PROPERTY TRUST

• Present key findings of gap analysis and the road map
for CRD compliance to the Board and executive team
• Identify options for strengthening portfolio resilience
• Identify options for decarbonising portfolios
Report to Vital BoardAdaptation and transition planning
FEBRUARYNOVEMBER
FY23FY24FY25
DISCOVERSTRATEGISE
• Undertake portfolio climate
risk stress testing (physical
and transition risks)
• Generate physical risk
heat mapping
• Test portfolios for
emissions intensity
Portfolio stress tests
JUNE
DEFINEWE ARE
HERE
• First CRD
released
OCTOBER
DELIVER
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Thriving partners
Northwest recognises the importance of fostering and
strengthening our relationships with our healthcare tenant
partners. Through providing consistent interactions and
prioritising improvements to our facilities we seek to improve
the user experience and provide infrastructure that allows
for our tenants to deliver improved patient outcomes.
Tenant engagement
survey
Tenant Spotlight
Evolution Healthcare
Supporting our healthcare partners is at the core
of what we do and essential to our mutual success.
Efficient operations and intentional development
contribute to healthy spaces that support the
medical community and patient outcomes.
In the latter part of 2022 we deployed our inaugural
tenant engagement survey partnering with Grace
Hill | KingsleySurveys, a company that assists with
comprehensive commercial property surveys, action
planning and industry bench marking. The Kingsley
Index is one of the most extensive real estate
benchmarks surveying over 7.3million participants
annually. All Vital tenants were invited to participate
through answering a 15 minute survey on a variety
of tenant satisfaction matters, including ESG. Survey
responses have been carefully considered by our
asset managers and will inform the progress of
strengthening our tenant relationships moving forward.
Using this information we have established a baseline
of tenant satisfaction scores and comments, we seek
to improve these scores through a variety of actions
including tenant engagement events and succinct
communication between our asset managers.
Our tenant partnership, Evolution Healthcare, have
a commitment to education and sponsorship through
their Social strategy. Elements of this strategy include;
providing scholarships for specialist research through
the Surgical Research Trust, hosting the Endoscopy
Conference for specialist-to-specialist learning and
supporting specialist-to-General Practitioner (GP)
learning through the Connect Conference. While
enhancing medical healthcare, Evolution considers
staff wellbeing and engagement a key pillar to
their strategy encouraging staff to participate in
both Auckland’s Round the Bays and the Hawkes
Bay Marathon by supporting registrations.
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Strategic tenant alliances
To enhance collaboration with our healthcare
partners, Vital established ESG alliance
agreements with Epworth Healthcare and
Evolution Healthcare. These alliances provide a
platform for knowledge sharing and identification
of key ESG opportunities resulting in overall
increased environmental and social outcomes.
In 2022, our partnership with Evolution Healthcare resulted in the
Wakefield Hospital development being awarded the Warren
and Mahoney – Award of Excellence through the Property Council
New Zealand Rider Levett Bucknall Property Industry Awards.
The established Sustainability Working Group including
key representatives from various business divisions at both
organisations continue efforts to enhance sustainability partnership
opportunities and are focused on reducing scope 3 emissions.
Our partnership with Epworth Healthcare remains steadfast
with both partners committed to providing and supporting
healthcare for the community. In honour of this, on World Mental
Health Day our Executive Director, Richard Roos, and Vice
President Asset Management, Toan Nguyen, visited Epworth
Camberwell with lunch and dinner on us, to recognise the
outstanding level of care they provide patients with every day.
In the spirit of knowledge-sharing, we have facilitated a
number of webinars on ESG related topics for our tenant
Facility Managers and respective employees. These topics
have covered carbon, waste and circularity and include
information on each sustainability principle and opportunities
for either enactment or reduction efforts broadly.
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2022 Baseline Data
Healthy planet
Northwest, as Vital’s manager, recognises the importance of minimising
our impact on the planet and are committed to further bringing
sustainability into the core of our business including our approach to
asset management, development and precincts.
Vital has established 2022 as the
baseline year for all data, this will
inform our science-based targets
and the ability to monitor efficiency
measures against a fulsome data set.
Energy audits Data collection 2022
In partnership with Veolia, we have concluded 21 “Level
2” energy audits with the remaining 26 site inspections
completed and being put into formal reports.
The energy audit process involves verification of meters
and metering systems within individual assets and thorough
collection of utility information including electricity, gas,
water and waste to inform total energy consumption
and GHG baselines. The collection of this data allows
for the identification of energy conservation measures
and opportunities to enact within each asset to align
with carbon targets. This also includes the identification
of EV charging protentional and current refrigerants
used on site to assist with improving our assets.
All Vital assets by the end of
2023 will have individual net zero
capital planning roadmaps and
strategies in place to the reduction
of property carbon intensity.
AIR QUALITY TESTING
ENERGY AUDITS
UTILITY DATA
100%
Landlord controlled areas
in Vital’s portfolio
Electricity
21/47 Tenant Controlled Property
Level 2 Audits Completed
Level 2 Landlord
Controlled Properties
97%
100%
100%
100%
100%
100%
74 %
90%
18 %
T
T
T
LL
LL
LL
LL
T
Fuel
Water
Waste
LL - Landlord controlled properties
T - Tenant controlled properties
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Waste contracts
100% of landlord waste collected in Australia via
Wasteflex and reported into our energy dashboard. In
2023 we are looking to find a similar solution for New
Zealand and find a solution to better track tenant waste
Tenant fit out guide
A Sustainable Fit Out Guide was launched in 2022 for
all tenants. Tenants are encouraged to follow this Guide
by way of best practice including recommendations
for sustainable materials, energy efficiency and
reduction measures and overall promotion of
environmental quality through process and design.
Green Star Commitments
All new building projects within Northwest’s ANZ region
are currently targeting a Green Star rating of 5 out of
6 stars. To support this, our Development Managers
have been accredited with Green Star training and
participate in a variety of Green Star courses on
relevant information such as Embodied Carbon.
Ormiston waste
separation project
The expansion project at the Ormiston Hospital site in
Auckland, NZ is part of a waste separation project,
facilitated by the Unitec Environmental Solutions
Research Centre. This project is focused on identifying
and overcoming barriers to effective plastic waste
management particularly within the construction sector.
158,841 kWh
398,420 kWh
Vital has continued and strengthened our partnership
with Veolia, an international group specialising in
utility services and environmental management.
Our partnership has strengthened our ability to
capture, monitor and influence utility data across
the portfolio. A collaborative effort saw the creation
of a new utility monitoring system call Envirohub
which enables the automatic collection of data
into a centraliased database, improving sight of
utility information and emissions in real time.
RENEWABLE ENERGY
GREEN POWER
EV CHARGERS
33,829 kWh
2022 Landlord purchased green power
A process to identify sites appropriate
for EV chargers to be installed
commenced in FY23 with the first
installations expected to occur in FY24.
2021 Landlord
solar production
2022 Landlord
solar production
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Sustainable
Development
Guidelines
Energy Efficiency
Waste to Landfill
Certification
Renewable Energy
Powered, All-
Electric Buildings
Water Efficiency
Northwest’s Sustainable Development Guidelines
outlines a summary of key sustainability
priorities and initiatives relevant to Vital.
Efficient use of power is a key priority in support of the transition
to 100 percent renewable-powered buildings, with high-
performance physical plants, equipment, and services integrated
into all projects. A 10 percent improvement above minimum
code compliance is our target, with guidelines increasing
to 20 percent from 2024 and 30 percent from 2026.
With methane emissions from landfills a significant source
of GHG emissions, we’re aiming to divert more than 90
percent of our construction and demolition waste from
landfill on all major projects. All projects are also required
to include operational waste separation, with landfill,
recycling, and organic waste streams provided as a
minimum, aiming for an 80 percent landfill diversion.
To ensure projects achieve verifiable
outcomes, a minimum Green Star
rating of 5 (out of 6) is being targeted
for all new, major building projects
in Australia and New Zealand.
All major projects are intended to use 100
percent electricity from renewable sources
for base building services. This includes
a minimum 15 percent onsite renewables
coupled with a 100 percent accredited
renewable energy contract, and we’re
working with our tenants towards all
energy being sourced from renewables.
Water conservation is a priority, with all projects targeted
to reduce potable water consumption by at least 15
percent compared to the average consumption intensity
of similar asset types. Alternative water supplies such as
rainwater or recycled shall be used where available.
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Net Zero
Climate
Resilience
Embodied Carbon
Sustainable
Transport
In line with our commitment to net zero, all projects
are required to plan for net zero emissions by
incorporating renewable energy, maximizing energy
efficiency and water conservation, transitioning
from natural gas, reducing waste to landfill, and
supporting sustainable forms of transport.
With climate change-related impacts a key risk to
both the built environment and the people using our
facilities, we are ensuring climate change adaptation
is incorporated into the design and operation of
facilities. All projects are required to undertake
a climate change risk assessment and develop
design responses to increase climate resilience.
Embodied carbon emissions associated with building materials
are a significant driver of increasing greenhouse gas (GHG)
emissions and are a priority for all projects. A minimum 20
percent reduction in embodied emissions is targeted, increasing
gradually to 40 percent by 2026 to ensure we continue to
demonstrate leadership as our operational emissions reduce.
Active and sustainable forms of transportation are supported
to reduce staff and visitor vehicle emissions, with facilities
such as showers, lockers, and bicycle storage provided
and electric vehicle charging infrastructure mandated.
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International days
Strong communities
We are committed to enhancing the communities where we
operate by sharing our time, research and resources and
amplifying the healthcare objectives of our partners. Giving
back to our communities is ingrained in who we are and we
align our community investment efforts to those of our tenants.
Vital acknowledges and celebrates a variety of International
Days. This year the theme for World Health Day was
“Health For All”. In alignment with this, all Australia and New
Zealand offices participating in an organised lunch with
nourishing and wholesome foods. To honour the theme we
made donations to food banks in our office locations.
The New Zealand team participated in Pink Shirt Day, a campaign
to stop bullying and promote kindness and inclusiveness.
A new addition this year saw the New Zealand office
come together in celebration and exploration of Matariki,
a time to gather with whānau and friends to reflect
on the past and plan for the future. We used a Māori
owned and operated food provider for our session.
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Keystone Trust Volunteering
The Gut Foundation
Disaster Relief
Vital remains committed to the ongoing relationship
with Keystone Trust. As a Keystone Scholarship
Partner, we provide scholarship support, mentoring
and ongoing industry guidance to a student from
the University of Auckland. Keystone Trust supports
young people who have a passion for the construction
and property industry by providing financial and
networking support within tertiary study. With over
200 alumni from the programme there is a strong
network to aid students along their journey.
During 2022 Northwest launched an employee volunteer
programme by providing two days per year of paid time off to
further support the communities we serve. We are committed
to this policy at a corporate level and are also endorsing of
office involvement in group volunteering events across the year.
A notable mention of fantastic utilisation of the volunteering
policy includes Georgie Huxley, Vice President- Leasing
(based in our Melbourne Office), who participated in
Coastrek, one of Australia’s most iconic charity hiking
challenges, which this year supported The Heart Foundation.
While completing the hiking challenge Georgie and her
team also fundraised to provide a donation to The Heart
Foundation which works to save lives and improve heart
disease prevention and detection for all Australians.
To further public education and awareness of gut disease
and prevention, Vital will sponsor The Gut Foundation event:
Gut Feelings – A Healthy Mind Takes Guts! An interactive
event held in Auckland to present findings from foundation
funded research projects and educational initiatives.
The Vital offices across both New Zealand and
Australia participated in a Gut Health Workplace
session run by a representative of The Gut Foundation.
The focus of the session was sharing information
and resources on bowel cancer and disease with
recommendations for daily improvements and
knowing options regarding disease screening.
Throughout the past 12 months, Australia and New
Zealand have seen significant natural disaster
leading to devastation in a number of communities.
To support these regions we have provided
donations through Red Cross to facilitate disaster
relief and providing aid to those most in need.
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Inclusive company
Preparing lasting tenant spaces for health and healing.
As a global business, Northwest creates an inclusive
environment that encourages all people to bring their unique self
and passion to work, allowing them to feel safe in doing so.
Reflect Reconciliation Action Plan
Northwest recognises that they have a social responsibility not
only to achieve better health outcomes in the communities they
serve (through relationships with tenants and operating partners)
but also to improve reconciliation outcomes. As a result, Northwest
commenced their reconciliation journey in 2022,working with
appointed consultants to establish the strategic objectives and
drivers behind Northwest’s reconciliation journey and develop
their inaugural Reflect Reconciliation Action Plan (RAP)to integrate
reconciliation practices into day-to-day business. The RAP seeks to:
• build baseline cultural knowledge and
understanding with our staff in the region;
• leverage our influence with community stakeholders,
staff, construction partners, tenants and operating
partners to improve reconciliation outcomes; and
• drive tangible, targeted actions with measurable benefits.
Northwest’s RAP has been endorsed by its Executive Sustainability
Committee. In alignment with the standard protocol, Northwest’s
RAP is being submitted to Reconciliation Australia for review,
comment and approval and it is anticipated that the RAP will be
published in Q4 2023. A Working Group has been formed to
develop and will also be responsible for implementing the RAP.
Progress on the implementation and alignment with commitments
will be provided through the established governance channels.
Northwest has progressed implementing some of the commitments within
the RAP prior to it’s finalization, namely around cultural competency
training and education, marking the commencement of construction and
other significant milestones with traditional smoking ceremonies and
Welcome to Country – this has occurred on a number of Vital assets
including Macarthur Health Precinct (Stage 1 sod turn and topping out
ceremonies), Playford health Hub (Stage 2 sod turn) and RDX sod turn.
Māori strategy
Vital remains committed to the development of
Māori cultural competency with focused efforts
on history, language and customs particularly for
the New Zealand office and those who regularly
interact with the development of New Zealand
natural resources, e.g. land construction.
In 2024 we will achieve increased Māori
cultural inclusion within the New Zealand
office and increased understanding across
Australian offices. This will be in consultation
with local education and information providers
with Māori ownership and involvement.
Vital has an intent to work with local
industry partners within the next financial
year on prioritising Māori culture and
information integration across the sector.
Workplace Flexibility
Employees across all offices including
Auckland, Sydney and Melbourne can
discuss and accommodate to flexible working
schedules. This includes having the opportunity
to work from home throughout the week with
set in office days specific to each office.
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Employee Opportunities Parental Leave policy
In FY22 the Paid Parental Leave Policy for
Northwest’s ANZ region was updated to
reflect alignment to industry standards.
As a component of tenant engagement, all employees have access
to ongoing training and upskilling opportunities through LinkedIn
Learning and Careerbase. These training opportunities extend
beyond ESG to role related competencies and education.
To date 100% of Northwest’ employees in the ANZ region have
completed ESG related training through LinkedIn learning modules.
Employees whose role is subject to ESG related activities and reporting are
in regular attendance of industry education and training events, including
webinars and in person events relating to the TCFD reporting framework.
Employee Engagement survey
What is a good Employee Net Promoter Score?
In December 2022, Northwest launched our “Better Together”
global employee engagement survey via Peakon. The purpose
of the engagement survey was to gather feedback from all
employees across the REIT. The survey covered several key
topic areas such as: accomplishment, autonomy, health and
mental wellbeing, growth, brand and values, transformation,
and management support. The results will form the baseline for
future benchmarking and will help identify areas of focus.
The survey launched on December 1, 2022 and closed after
1.5 months with a response rate of 77%. Northwest attained
a Net Promoter Score of 34. Given this is the first global
engagement survey, it serves as a baseline. We anticipate forward
momentum on actioning the engagement results and expect to
see positive improvements in engagement results over time.
-100
NEEDS IMPROVEMENT
(-100 - 0)
GOOD
(0 - 30)(30 - 70)(70 - 100)
GREATEXCELLENT
The eNPS score is calculated by subtracting the percentage of detractors from the percentage
of promoters, (the passives do not count in the scoring). The score is displayed as a number
(not as a percentage) within the range of -100 to +100. A score between +10 to 30 is
good. A score of +30 would be considered great, and +70 is excellent (best-in-class).
Photo taken during the
Smoking Ceremony at RDX site
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Enablers
We must evolve our ways of working and ensure the integration
of sustainability throughout our operations, strategy and decision-
making to deliver on our sustainability commitments for our
healthcare tenants, Unit Holders and broader stakeholders.
Carbon Accounting
Vital recognises that a changing climate presents inherent
risk to our direct and indirect business operations. We have
investigated what a changing climate means for Vital and how
our operations can contribute to a lower emissions society.
Actions to influence this transition include establishing a
baseline year for data, setting long and short term science
based emissions targets and monitoring progress over time.
Vital has undertaken a retrospective carbon exploratory
exercise with ThinkStep NZ to understand the material
greenhouse gas impacts on operations. This exercise allowed
us to understand the nature of our greenhouse gas emissions
and where we have the ability to influence change.
Vital approaches carbon accounting using the Greenhouse
Gas Protocol (GHG Protocol) and will report on three
scopes of emissions; direct (Scope 1), indirect (Scope
2) and value chain (Scope 3). Our materiality threshold
is set at a threshold of 1% and this eliminates a number
of Scope 3 categories as irrelevant to reporting.
The most material category for Vital is Downstream Leased
Assets due to the nature of business operations, the information
from this category includes utility data from tenant operators.
We will look to release finalised GHG reports for our 2022
baseline year on the Vital website in the following months.
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Carbon emissions
– 0 +
Present
GHG reduction pathway
Net-zero
SBTI
Near Term
Target
2030
2050
(Tenant Utility Consumption
& Category Goods)
Carbon removal projects
Efficency Measurments
& Renewable Energy
Production + Procurement
Priorities affecting direct emissions & purchased energyBAUFocus material scope 3 categories
Decarbonisation
of Energy Grid
& Scope 3 Emissions
Net Zero Targets
In collaboration with carbon experts we are advancing
a Decarbonisation Strategy to outline key milestone Vital
will achieve in advancement of the long term target.
Parallel to this work, we are committed to establishing near-
term emission targets. These will be developed using the
Science Based Target Initiative (SBTi) methodology which
we will verify and publicly released in due course.
To show our commitment to this process we have
signed a SBTi Letter of Commitment.
The near-term targets at a minimum will cover Scope 1 & Scope
2 emissions, as Vital’s Scope 3 emissions are over 40% of total
emission, material categories will be included in near term targets.
An identified action for Vital is to further tenant engagement
and activity relating to greenhouse gas emissions. We
acknowledge our ability to reduce and monitor Scope
3 emissions is limited to the actions of our tenants and
this continues to be a priority for us moving forward.
Vital also undertakes construction and development of new
buildings. Having an understanding of supply chain emissions
factors across both Australia and New Zealand form an
element of our carbon reporting requirements. Reductions and
increases within Scope 3, Category 2 – Capital Goods will be
communicated with contextual information relating to progress
and status of development projects within the reporting year.
As demonstrated on the corresponding graph, Vital is
committed to reducing greenhouse gas emissions as a
priority. The industry will take advantage of decarbonisation
of energy grids across both Australia and New Zealand,
although the rates of this will varying between countries and
states. Procurement and production of renewable energy
will play a component within our emissions strategy.
Carbon removal projects will be investigated in due
course as we progress on our net zero journey.
Vital is committed to a long term emissions target of net zero by 2050.
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New Zealand Green Building Council
Green Building Council Australia
During FY22 Vital and Northwest maintained our membership with both Green Building
Council Australia and New Zealand Green Building Council. These memberships
help to facilitate our dedication to industry education and upskilling within our team
including asset managers, development managers and facilities managers.
Vital’s VP Sustainability & Development and Sustainability Associate were involved in
the NZGBC & BECA Working Group to establish an industry document with guidance
and information relating to Climate Scenarios for the Construction and Property Sector.
The purpose of this document is to apply a consistent method for
conducting scenario analysis in line with the External Reporting
Board’s standards for climate-related disclosures.
Vital remain committed to a range of industry memberships with the intent
to foster meaningful relationships and outcomes at an industry level.
Property Council
Vital and Northwest remain committed members to both Property
Council NZ and Property Council of Australia.
Northwest’s VP Sustainability & Development and Sustainability Associate jointly
sit on the Property & Construction, Property Council NZ roundtable. This forum
consists of industry peers with leadership and management in the ESG space, it is
an opportunity to collaborate on industry relevant topics impacting our businesses
as well as providing consultation and opinion on upcoming legislation.
As a part of this Roundtable there are a number of sub-committees that Vital
subscribes to to engage in environmental and social stewardship within the industry.
Vital regularly sends representatives for education and upskilling
opportunities that the Property Councils of New Zealand and
Australia provide including conferences and seminars.
Property Council of Australia
Northwest’s Vice President Sustainability & Development (Clare Solomon)
and Senior Vice President Medical Precincts (Alex Belcastro) were
appointed to Property Council of Australia committees for 2023. These
appointments will advance and diversify industry engagement within the
property sector for collaboration to enhance healthcare offerings.
Industry Engagement
KEY MEMBERSHIPS
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Our Board
The Board comprises five highly qualified directors based in Auckland
(x2), Toronto, Sydney and Melbourne, three of whom are independent.
Their executive experience includes healthcare, property and finance.
Graham Stuart
Independent Chair and
Member of the Audit Committee
(66, Auckland)
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 Chair of EROAD
Limited and an Independent Director and Chair
of the Audit Committee at Tower and Metro
Performance Glass Limited. 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
has a Master of Science degree from
Massachusetts Institute of Technology and
a Bachelor of Commerce with first class
honours from the University of Otago.
Paul Dalla Lana
Director and Member
of the Audit Committee
(Mike Brady replaced Paul on the board
effective 9 August 2023)
(57, Toronto)
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 $10
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 and
his MBA 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.
Angela Bull
Independent Director and
Member of the Audit Committee
(48, Auckland)
Angela Bull is an independent director of the
Real Estate Institute of New Zealand, realestate.
co.nz, Property For Industry Limited (NZX:PFI),
Foodstuffs South Island Ltd and Foodstuffs
NZ Ltd. She is also on the Trust Board of St
Cuthbert’s College and a Board member of
the Property Council of New Zealand and
has recently joined the Bayleys Corporation
Board (NZ) as an independent director.
Angela is a former Chief Executive of Tramco
Group, a large New Zealand owned property
investment company which specialises in large
scale land holdings, notably the Viaduct Harbour
precinct in Auckland and Wairakei Estate in
the Waikato. She holds a Bachelor of Laws
and a Bachelor of Arts (Political Science) and
practised property and environmental law prior
to her executive career. Previously, Angela held a
number of senior positions over a 10-year period
with Foodstuffs Auckland and Foodstuffs North
Island Ltd, most recently being General Manager
Property Development for Foodstuffs North Island.
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Directors are based in Auckland (x2), Toronto, Sydney
and Melbourne. Their current and prior executive
experience includes healthcare, property and finance.
Dr Michael Stanford AM
Independent Director and Chair 
of the Audit Committee (64, Melbourne)
Dr Michael Stanford has more than 30 years’
experience in the health sector in either Group CEO
or Board roles. Michael’s current Board roles include
Chair of Nexus Hospitals, a leading provider of
specialist day and short stay private hospital based
care; Chair of disability, aged, employment and
training services provider genU; Diabetes Australia, a
significant Not-for-Profit of which Michael is President
and Board Chair; and Board member of the Royal
Australian College of General Practitioners. Other
Board roles in the last three years have included
Australian Clinical Labs (ASXACL), Australia’s third
largest private pathology provider; Nucleus Networks,
one of the world’s largest Phase one clinical research
organisations and Virtus Health (ASX:VRT ), one of the
world’s top five providers of Assisted Reproductive
Services.
Michael was the Group CEO of St John of God
Healthcare, Australasia’s third largest private hospital
provider, for 16 years during which time the company
increased revenue fivefold through organic and M&A
growth plus more than AS billion greenfield and
brownfield developments. Michael’s other Managing
Director roles included the ASX listed Australian
Hospital Care and two public hospital Networks in
Victoria. Michael holds an MBA from Macquarie
University and Bachelor of Medicine and Bachelor of
Surgery from UNSW. He is a Fellow of the Australian
Institute of Company Directors.
In 2018 Michael was awarded a Member of the
Order of Australia for significant service to the health
sector through executive roles, to tertiary education
and the WA community, in 2010 he received the WA
Citizen of the Year Award – Industry and Commerce
category.
Craig Mitchell
Director and Member of the
Audit Committee (55, Sydney)
Craig Mitchell has more than 20 years’
experience specialising in the property
industry in Australia. His previous roles include
Executive Director and Chief Operating
Officer of Dexus, an ASX top 50 listed REIT.
Craig is President of the Northwest Group, having
joined in 2018 as CEO of Australia and New
Zealand. He is responsible for funds management
globally including establishment of new funds,
providing strategic direction as part of the
REIT’s global leadership team, and has overall
accountability for the Australian and New Zealand
region, including strategy, performance and leading
the team of over 40 real estate professionals.
Craig has a Master of Business Administration
(Executive) from the Australian Graduate School
of Management, a Bachelor of Commerce
and is a Fellow of CPA Australia. He has
also completed the Advanced Management
Programme at Harvard University, Boston.
Mike Brady
Non-Independent Director
(Appointed 9 August 2023)
(56, Toronto)
Mike was appointed President of
Northwest Healthcare Properties
REIT (TSX: NWH.UN) in 2023 after serving as
Executive Vice President, General Counsel and
Board Secretary since joining the REIT in 2006. He
has extensive experience in real estate investments
and finance, transaction management, global
leadership, governance and legal matters.
Mike has played a significant Commercial and
legal role in the strategic direction and growth
of the REIT, most recently leading the team to
complete a €2 billion pan-European joint venture
fund, a $435 million UK hospital portfolio, and
a $2 billion joint venture fund and acquisition of
a $1.25 billion hospital portfolio in Australia.
Prior to joining the corporate real estate world,
Mike was a corporate law partner at two
Toronto-based law firms, where he developed his
real estate practice. He has a Bachelor of Arts
(Economics) and a joint LL.B./Masters of Business
Administration from Dalhousie University, Halifax.
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Our executive team
Northwest has over 250 employees globally, including more than
50 real estate professionals in New Zealand and Australia. The
Vital Executive Team is made up of property professionals with
extensive experience in New Zealand, Australia and beyond.
Aaron Hockly
Senior Vice President
– New Zealand and Vital Fund Manager
(45, Auckland)
Aaron Hockly has over 20 years experience in
financial services, property and law. Originally
from New Zealand, Aaron spent 17 years in the
UK and Australia until returning in 2018. Aaron
was Chief Operating Officer for a large ASX
listed real estate investment trust for nearly 10
years where he was responsible for strategy,
transaction structuring and execution (property,
debt and equity), reporting and investor relations.
Among other qualifications, Aaron has a Masters in
Applied Finance and a BA/LLB from the University
of Auckland. He is a Fellow of both Governance
New Zealand and the Financial Services Institute of
Australasia (FINSIA), as well as being a Chartered
Member of the Institute of Directors (NZ).
Aaron has served on the boards of several
charities in both New Zealand and Australia
including Mercy Healthcare Auckland where
he is currently a director and previously the
Ponsonby Community Centre and Melbourne’s
Midsumma Festival which he chaired for six years.
Chris Adams
Executive Director – Projects
(53, Melbourne)
Chris Adams has extensive experience in the
property industry in New Zealand, Australia 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 the University of Auckland.
Alex Belcastro
Senior Vice President –
Medical Precincts
(35, Sydney)
Alex Belcastro joined the team in April 2021,
prior to which she was the Chief Business
Development Officer at Ramsay Health Care,
where she managed a multi-billion-dollar
portfolio of 73 hospital assets in Australia.
Alex has over 13 years of specialised healthcare
real estate experience across the public and
private sectors, having been involved in over $8b
of hospital, laboratory, and research projects.
Alex holds a Master of Construction
Management, and a Bachelor of Planning and
Design (Property and Construction) from the
University of Melbourne. Alex has undertaken
executive education at Harvard Business School.
62
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VITAL HEALTHCARE PROPERTY TRUST

Vanessa Flax
Regional General Counsel
A/NZ and Company Secretary
(52, Melbourne)
Vanessa Flax joined the team on 1
May 2019, prior to which she was a
special counsel at Ashurst Australia.
Vanessa has over 25 years of deep and
broad ranging property law experience in
Australia and New Zealand, including acting
as primary legal adviser (for approximately
15 years) for Vital and Northwest.
Vanessa’s legal experience covers all
aspects of real estate property transactions,
including acquisitions, divestments and sales,
leasing and Crown leasing, development
transactions and due diligence.
Vanessa has a BA LLB from the University
of Witwatersrand, South Africa.
Michael Groth
Chief Financial Officer – A/NZ Region
(49, Melbourne)
Michael Groth has over 13 years’ experience as
a senior finance executive in the listed and unlisted
property funds and funds management industry.
Prior to joining the team in October 2019, Michael’s
most recent position was as Group Chief Financial
Officer of the Melbourne based and ASX-listed real
estate fund manager, APN Property Group Limited.
Michael has extensive experience in financial
management and reporting, taxation, treasury
and capital management, corporate structuring,
acquisitions, disposals and equity raisings.
Michael holds a Bachelor of Commerce
and Bachelor of Science and has been
a member of the Chartered Accountants
Australia and New Zealand since 2000.
Richard Roos
Executive Director – Portfolio
(58, Melbourne)
Richard Roos has over 20 years’ career
experience in commercial real estate financing,
acquisitions and property management, 14 years
of which have been in healthcare real estate.
In his role as Executive Director, Richard is
responsible along with his Melbourne and
Auckland-based teams for the asset management
of the Northwest Group’s Australian and New
Zealand portfolio, including leasing and tenant
relationships, and joint responsibility for acquisitions
and business development. In particular, Richard’s
strong relationships with healthcare operators
are a crucial element of Northwest’s success
in sustainability achieving its growth targets.
ANNUAL REPORT 2023
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63

Corporate Governance
Vital Healthcare Property Trust and Northwest Healthcare Properties
Management Limited. All information as at 30 June 2023, unless otherwise stated.
Joint Investment Policy
Under the terms of the Joint Investment Policy, which applies
to Northwest Healthcare Properties REIT (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
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.
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 Unit Holders.
Attendance at
Board meetings
Attended /
Eligible to attend
Date of appointment
Paul Dalla Lana5/516 January 2012
Graham Stuart5/512 November 2018
(Appointed Chair
17 November 2020)
Michael Stanford5/519 November 2019
Craig Mitchell5/529 June 2021
Angela Bull5/526 April 2022
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.
Paul Dalla Lana was appointed to the board of the Manager
by NWH REIT on 16 January 2012 and was replaced
by NWH REIT with Mike Brady on 9 August 2023.
The table below shows all relevant interests of Directors
and Officers in units, which include legal and beneficial
interests in Vital units as at 30 June 2023.
DirectorsHoldings (number of
units) non-beneficial
Holdings (number
of units) beneficial
Paul Dalla Lana
1
185,294,299
Graham Stuart-52,729
Officers
Aaron Hockly
2
-79,270
1
Paul Dalla Lana is the founder and largest Unit Holder of Northwest Healthcare
Properties Real Estate Investment Trust (a trust organised under the laws of Ontario,
Canada, Corporation) and was the Chairman and CEO until 9 August 2023. He
was replaced on the Board of the Manager by Mike Brady on 9 August 2023.
Northwest Healthcare Properties Real Estate Investment Trust directly or indirectly holds
approximately 185,294,299 units in Vital Healthcare Property Trust, in respect of
which Mr Dalla Lana is considered to have a relevant interest.
2
Aaron Hockly makes a voluntary disclosure that members of his immediate family
own an additional 109,123 units in Vital in addition to his personal holdings listed
above.
Independent Directors
Further information about the Board’s assessment of the
independence of Directors is contained in Recommendation 2.4 of
the NZX Corporate Governance Code on page 68 of this report.
Audit Committee
The Audit Committee is responsible for overseeing
the financial and reporting practices of Vital.
At financial year end and at the date of this report,
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; and
• Reviewing the performance of the external auditor.
Attendance at Audit
Committee meetings
Attended /
Eligible to attend
Date of appointment
Graham Stuart4/49 May 2019
Paul Dalla Lana3/46 October 2020
Michael Stanford4/46 October 2020
Craig Mitchell3/429 June 2021
Angela Bull4/426 April 2022
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VITAL HEALTHCARE PROPERTY TRUST

Management contract
Northwest manages Vital in accordance with Vital’s Trust Deed
in return for which Northwest receives management fees. From
these management fees, Northwest pays salaries and other
people related costs (including taxes, rent, IT, travel and training)
to its employees approximately 30 of whom are solely or
majority engaged with managing Vital, as well as the Directors
not appointed by all Unit Holders (two at the date of this report).
As a result, the details in this section relate to Northwest’s
employees rather than Vital’s employees (as there are none).
Remuneration
As noted above, Vital does not have any direct employees
Instead, Northwest receives management fees to manage
Vital from which it provides remuneration to employees. As a
result, there is no reporting on individual employee salaries.
Notwithstanding the above, the following is
provided to enhance transparency:
1. Details of the holdings in Vital by Directors and officers as
at 30 June 2023 is provided on the previous page.
2. As at the date of this report, the Chair of the Manager
and

Vital’s Fund Manager own units. Currently the tax
regime for Vital makes it uneconomic for the offshore
based Directors and officers to hold units in Vital.
3. As at the date of this report, Vital’s most senior
executive officer, Fund Manager Aaron Hockly,
holds units in Vital equivalent to more than 50% of his
base salary, if units are valued at issue price.
4. Details of the costs of Independent Directors appointed
by Unit Holders and, as a result, paid for from Vital are
included in note 22 to the accounts in this report.
5. 15-20% of the Fund Manager’s annual potential bonus relates
to the performance of Vital. In addition, all Northwest’s executive
bonuses globally are linked to Northwest’s unit price as the
long-term component of these bonuses is paid in Northwest
units or calculated with reference to the value of Northwest
units. In addition to being Vital’s Manager, Northwest is
Vital’s largest investor, holding an aggregate shareholding
of 28% as at 30 June 2023. As a result, there is a significant
alignment of interest between Vital’s performance, Northwest
performance and the remuneration of the Fund Manager.
6. The following clawback / malus provisions are included in
the bonus plans for all Northwest executives globally (including
Vital’s Fund Manager, CFO and other key personnel):
• Where the Participant (i) has been terminated for cause, or
(ii) voluntarily resigns from his or her position with the Trust then
any Deferred Units granted on a discretionary basis pursuant
to Section 7.04 of the Northwest Healthcare Properties Real
Estate Investment Trust Omnibus Equity Incentive Plan (2022)
which have not yet vested at the time of the termination for
cause or voluntary resignation, shall be immediately forfeited
by such Participant.
Directors’ remuneration
DirectorBase
Audit
Committee
Member
ChairTotal
Graham Stuart
Independent Director,
Board Chair and Audit
Committee member
NZ$90KNZ$10KNZ$80K
(Board)
NZ$180K
Angela Bull
Independent Director and
Audit Committee member

NZ$90KNZ$10K-NZ$100K
Craig Mitchell
Director and Audit
Committee member
N/A
1
---
Michael Stanford
Independent Director and
Audit Committee Chair
2
A$90K-A$20K
(Audit
Committee)
A$110K
Paul Dalla Lana
Director and Audit
Committee member
N/A
1
Total
(NZ$280K paid by Unit Holders,
and A$110K paid by the Manager)
NZ$390K
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 three years
or less (to a minimum of $2,500), 12% of the annual rental
for terms of three 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.
Incentive fee
The incentive fee is an amount equal to 10% of the average
annual increase in the Net Tangible Assets of Vital over the
relevant financial year and two preceding financial years
subject to a three year high-water mark. 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.
1
Executive of Northwest. Accordingly, no separate directors’ fees are payable.
2
Paid by the Manager from management fees. All other amounts listed are paid by the Trust
ANNUAL REPORT 2023
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65

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.
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 and 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.
Board diversity and relevant skills
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).
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.
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.
Modern slavery
In November 2022, the Australian manager of the Vital trusts,
Northwest Healthcare Australian Property Limited again
published a statement under the Australian Modern Slavery
Act 2018, which underpinned Vital’s philosophical approach
and commitment to ensuring our operations have sufficient
risk mitigation strategies to address supply-chain risks. Vital
committed to training employees to identify these risks.
Our entire organisation has engaged with tenants and suppliers
to conduct further and ongoing due diligence to identify possible
modern slavery supply chain risks. Vital will continue to assess
the potential modern slavery risks in our operations and develop
and review company policies on these possible impacts.
We have also committed to reviewing supplier contracts to ensure
they contain terms consistent with the principles underlying the Act.
Skills & ExperienceGraham
Stuart
Angela
Bull
Paul
Dalla Lana
Craig
Mitchell
Michael
Stanford
Accounting/finance/economics••••
Commercial real estate /asset
management/valuation
••••
Corporate governance •••••
Legal / regulatory••••
Healthcare practitioner•
Tenure (years)4.71.211 . 523.7
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VITAL HEALTHCARE PROPERTY TRUST

ReferenceRecommendationApproach
Principle 1 – Code of ethical standards
1.1The board should document minimum standards of
ethical behaviour to which the issuer’s directors and
employees are expected to adhere (a code of ethics).
The code of ethics and where to find it should be
communicated to the issuer’s employees. Training should
be provided regularly. The standards may be contained
in a single policy document or more than one policy.
The code of ethics should outline internal reporting
procedures for any breach of ethics, and describe
the issuer’s expectations about behaviour,
namely that every director and employee:
a. acts honestly and with personal
integrity in all actions;
b. declares conflicts of interest and proactively
advises of any potential conflicts;
c. undertakes proper receipt and use of
corporate information, assets and property;
d. in the case of directors, gives proper
attention to the matters before them;
e. acts honestly and in the best interests of
the issuer, shareholders and stakeholders
and as required by law;
f. adheres to any procedures around giving and
receiving gifts (for example, where gifts are given
that are of value in order to influence employees
and directors, such gifts should not be accepted);
g. adheres to any procedures about whistle
blowing (for example, where actions of a
whistle blower have complied with the issuer’s
procedures, an issuer should protect and support
them, whether or not action is taken); and
h. manages breaches of the code
In recognition of Vital’s role in the communities in which we operate, and where our investors
live, we continue to implement and refine policies and practices which encourage responsible
investment practices and compliance with all legal and regulatory requirements.
All of Vital’s Directors and employees must abide by Vital’s Code of Conduct and Business
Ethics (refreshed in August 2021 and again on 29 June 2023), which documents policies on
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 Code recognises the importance of a work environment which actively
promotes best practice and does not compromise business ethics or principles,
and the Code’s purpose is to uphold the highest ethical standards, acting
in good faith and in the best interests of Unit Holders at all times.
Following the review of the Code, employees will be provided with training in relation to
the Code and Vital has committed to refreshing that training at least once every 3 years.
The Code is on Vital’s website https://www.vitalhealthcareproperty.co.nz/
governance/ and a copy was provided to staff following the review in
June 2023. All new starters are provided with a link to the Code.
The Code is supplemented by a number of other policies including the Joint
Investment Policy and Whistleblower Policy which are available on the website
at https://www.vitalhealthcareproperty.co.nz/governance/.
1.2An issuer should have a financial product dealing
policy which applies to employees and directors
Vital’s Directors, officers and employees, their families and related parties must
comply with the Security Trading Policy. A copy of the Security Trading Policy is on
Vital’s website https://www.vitalhealthcareproperty.co.nz/governance/
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 64.
Before trading in Vital units, a restricted person must get consent in writing
from the Fund Manager or the Chief Financial Officer of the Manager.
Vital has set black-out periods for Directors and staff throughout the year.
Also, blackout periods can be invoked when specific events occur.
Emails are periodically sent to Directors and employees providing information
as to the status of the trading window in relation to the black-out periods.
Principle 2 – Board composition and performance
2 .1The board of an issuer should operate under a written
charter which sets out the roles and responsibilities
of the board. The board charter should clearly
distinguish and disclose the respective roles and
responsibilities of the board and management.
The Board has adopted a formal Board Charter which is available on Vital’s
website at https://www.vitalhealthcareproperty.co.nz/governance/.
The Charter sets out the roles and responsibilities of the Board, including in relation to
distinguishing between the respective roles and responsibilities of the Board and management.
The terms of a Director’s appointment are contained in the Board Charter. The Charter reaffirms
Directors must comply with their duties as set out in the Manager’s Constitution (which is also
available on Vital’s website https://www.vitalhealthcareproperty.co.nz/governance/)
and 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 Board’s specific responsibilities include approving the Manager’s strategic objectives,
including those applicable to Vital and ensuring that effective risk management
procedures for the Manager and Vital are in place and are being observed.
NZX Corporate Governance Code
The NZX Corporate Governance Code (NZX Code) applies to all issuers of Equity Securities listed on the NZX Main Board.
The NZX Corporate Governance Code does not apply to Vital Healthcare Properties Trust (Vital), as it is an Issuer of Fund Securities
under the NZX Listing Rules.
Notwithstanding the foregoing, the Board of Northwest Healthcare Properties Management Limited (Manager) considers it important from
a governance perspective to identify how, as at 30 June 2023, Vital and the Manager comply with the NZX Code dated 1 April 2023.
The NZX Code is structured around eight principles. The table sets out each principle and an explanation as to if, and how,
Vital and the Manager comply with the recommendations in the NZX Code.
ANNUAL REPORT 2023
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67

ReferenceRecommendationApproach
2.2Every issuer should have a procedure for the nomination
and appointment of directors to the board.
Vital partially complies with this recommendation as the process for appointment
of directors is different for a listed managed investment scheme. Vital is a
trust and does not have directors. Its supervisor is Trustees Executors Limited,
which is also the trustee of the Vital Healthcare Property Trust.
The Manager has a Board of Directors, which, subject to the below, is appointed by its sole
shareholder, NWI Healthcare Properties LP.
Two Independent Directors are appointed to the Manager’s Board by Unit Holders in the
manner described in the Trust Deed. A copy of the Trust Deed is available on Vital’s website
(https://www.vitalhealthcareproperty.co.nz/governance/) and also on the Disclose Register
through the Companies Office https://companies-register.companiesoffice.govt.nz/.
Unit Holders have the opportunity to appoint two of the Independent Directors
of the Manager. Unit Holders may 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.
2.3An issuer should enter into written agreements
with each newly appointed director
establishing the terms of their appointment.
The Manager enters into a written agreement with each newly appointed director
setting out the terms of their appointment, including expectations of the director in his
or her role, remuneration entitlements and indemnity and insurance arrangements.
2.4Every issuer should disclose information about each
director in its annual report or on its website, including:
a. a profile of experience, length of
service and ownership interests;
b. the director’s attendance at board meetings; and
c. the board’s assessment of the director’s
independence, including a description as to
why the board has determined the director to
be independent if one of the factors listed in
table 2.4 applies to the director, along with a
description of the interest, relationship or position
that triggers the application of the relevant factor
Vital’s Annual Report includes a profile of experience, length of service, and
ownership interest of each Director. The Annual Report also sets out the attendance
of each Director at Board meetings and Audit Committee meetings.
A profile of each director is also included on Vital’s website https://
www.vitalhealthcareproperty.co.nz/board-management/
The Board considers that at the date of this Annual Report, the Independent Directors
are independent, including by virtue of the following factors listed in table 2.4:
None of the Independent Directors:
• is currently, or was within the last three years, employed in an executive role by the Manager;
• is currently deriving, or within the last 12 months, derived a substantial
portion of his or her revenue from the Manager or the Trust;
• is currently, or was within the last 12 months, in a senior role in a provider of material
professional services to the Manager or the Trust or any of their subsidiaries;
• is currently, or was within the last three years, employed by the external
auditor to the Manager or the Trust or any of their subsidiaries;
• currently has, or did have within the last three years, a material business relationship (e.g.
as a supplier or customer) with the Manager or the Trust or any of their subsidiaries;
• is a substantial product holder of the Trust, or a senior manager of, or person
otherwise associated with, a substantial product holder of the Trust;
• is currently, or was within the last three years, in a material contractual relationship
with the Manager or the Trust or their subsidiaries, other than as a director;
• has close family ties (or personal relationships (including close social or
business connections) with anyone in the categories listed above; and
• has been a director of the Manager for a period of 12 years or more.
2.5An issuer should have a written diversity policy which
includes requirements for the board or a relevant
committee of the board to set measurable objectives
for achieving diversity (which, at a minimum, should
address gender diversity) and to assess annually both
the objectives and the entity’s progress in achieving
them. An issuer within the S&P/NZX20 Index at
the commencement of its reporting period should
have a measurable objective for achieving gender
diversity in relation to the composition of its board,
that is to have not less than 30% of its directors being
male, and not less than 30% of its directors being
female, within a specified period. An issuer should
disclose its diversity policy or a summary of it.
We continue to improve diversity on the Board and in Management, in line with the REIT’s
diversity policy introduced in April 2022. The number of women in the organisation is almost
50% of the total number employed and our focus on gender diversity at a Board level continues.
2.6Directors should undertake appropriate training
to remain current on how to best perform
their duties as directors of an issuer.
Directors are encouraged to maintain and enhance their skills and capabilities through ongoing
professional development to be undertaken to satisfy the membership requirements of their
respective institutes, including the Institute of Directors New Zealand. The Manager also
seeks to provide additional appropriate training relevant to their role as a Director of Vital.
2.7The board should have a procedure to regularly
assess director, board and committee performance.
Assessment of the Board and each director’s performance is determined by the Chair
and takes into account overall attendance, contribution, training and experience of each
member concerned. In 2022 the Manager conducted an externally managed self-
assessment process under the auspices of the Institute of Directors New Zealand.
2.8A majority of the board should be independent directors.The Board of the Manager is comprised of a majority of Independent Directors.
2.9An issuer should have an independent chair of the board.The Board of the Manager is chaired by an Independent Director.
2 .10The chair and the CEO should be different peopleThe functions of chair of the Board of the Manager and CEO are fulfilled by different people.
Principle 3 – Board committees
3 .1An issuer’s audit committee should operate under a
written charter. Membership on the audit committee
should be majority independent and comprise solely of
non-executive directors of the issuer. The chair of the audit
committee should not also be the chair of the board.
The Board has adopted a formal written Audit Committee Charter which is available
on Vital’s website at https://www.vitalhealthcareproperty.co.nz/governance/.
The minimum number of members on the Audit Committee is three members who must be
Directors and at least one member must have an accounting or financial background.
The audit committee of the Manager is majority independent but otherwise
comprises the whole Board. The Chair of the audit committee is an independent
director and is not the same person as the Chair of the Board.
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ReferenceRecommendationApproach
3.2Employees should only attend audit committee
meetings at the invitation of the audit committee.
Management and other employees may attend an audit committee meeting on invitation.
3.3An issuer should have a remuneration committee
which operates under a written charter (unless
this is carried out by the whole board). At least
a majority of the remuneration committee should
be independent directors. Management should
only attend remuneration committee meetings at
the invitation of the remuneration committee.
A key feature of the external management structure under which Vital operates is that
remuneration of management is the responsibility of the Manager, not Vital. As Vital
Unit Holders are not economically exposed to employment remuneration costs, a
remuneration committee is not considered necessary by the Board at this time.
3.4An issuer should establish a nomination committee to
recommend director appointments to the board (unless
this is carried out by the whole board), which should
operate under a written charter. At least a majority of the
nomination committee should be independent directors.
Vital does not have a nomination committee and does not comply with this recommendation.
Given its structure and the terms of the Trust Deed, the process for nomination of
directors to the Board of the Manager is not the same as for a listed company.
3.5An issuer should consider whether it is appropriate
to have any other board committees as standing
board committees. All committees should operate
under written charters. An issuer should identify
the members of each of its committees, and
periodically report member attendance.
From time to time the Board establishes Due Diligence Committees (DDC) to report on
the due diligence process in relation to any potential transaction for Vital of material
size or complexity. An example would be the recent capital raisings undertaken by
Vital. A DDC will normally comprise an Independent Director, executive director,
relevant management staff and external consultants appropriate for the transaction.
3.6The board should establish appropriate protocols
that set out the procedure to be followed if there
is a takeover offer for the issuer including any
communication between insiders and the bidder. It
should disclose the scope of independent advisory
reports to shareholders. These protocols should
include the option of establishing an independent
takeover committee, and the likely composition and
implementation of an independent takeover committee.
The Takeovers Code does not apply to Vital, as a listed managed
investment scheme. Vital’s Trust Deed includes some provisions which
would regulate takeover-like transactions relating to units in Vital.
As a result of the above, the Board of the Manager has not established protocols
that set out the procedure to be followed if a takeover offer is received.
Principle 4 – Reporting and disclosure
4 .1An issuer’s board should have a written
continuous disclosure policy.
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 Continuous Disclosure Policy can be found on Vital’s website at
https://www.vitalhealthcareproperty.co.nz/governance/.
4.2An issuer should make its code of ethics, board and
committee charters and the policies recommended
in the NZX Code, together with any other key
governance documents, available on its website.
A copy of all relevant policies noted in this document can be viewed on Vital’s
website https://www.vitalhealthcareproperty.co.nz/governance/
In addition, the website includes the Privacy Policy, the Whistleblower Policy and
the Modern Slavery Statement, all of which are endorsed by the Board.
4.3Financial reporting should be
balanced, clear and objective.
We provide disclosures of financial matters in our Annual Report. In addition,
disclosures are provided quarterly to keep the market updated as to the financial matters
impacting Vital. The Manager maintains and regularly reviews a risk management
framework as part of its compliance assurance programme. Reports are provided
to both the Audit Committee and Board along with an annual risk assessment.
4.4An issuer should provide non-financial disclosure at least
annually, including considering environmental, social
sustainability factors and practices. It should explain
how operational or non-financial targets are measured.
Non-financial reporting should be informative, include
forward looking assessments, and align with key
strategies and metrics monitored by the board.
Vital’s Annual Report includes non-financial disclosures, including environmental,
economic and social sustainability factors and practices. In this regard see page
40 onwards in the sustainability section for an outlay of ESG related achievements
and forward-looking targets, and page 52 onwards in the sustainability section for
references to regulatory non-financial ESG disclosures to which Vital is committed.
Principle 5 – Remuneration
5 .1An issuer should have a remuneration policy for the
remuneration of directors. An issuer should recommend
director remuneration to shareholders for approval in
a transparent manner. Actual director remuneration
should be clearly disclosed in the issuer’s annual report.
Vital is a trust and does not have directors. Subject to the below, the remuneration
costs of the Manager’s directors are borne by the Manager. As a result, Vital Unit
Holders are not economically exposed to those costs. Vital’s Trust Deed provides
that the costs associated with the two Independent Directors appointed to the
Board of the Manager by Unit Holders are reimbursed out of the trust fund. Refer
to page 65 of this Annual Report for details of Director remuneration.
5.2An issuer should have a remuneration policy for
remuneration of executives which outlines the
relative weightings of remuneration components
and relevant performance criteria.
As noted above, all officers and some Directors’ remuneration is paid by the Manager not
Vital. Any Directors paid by Vital are paid a flat fee for each service provided (currently a base
director fee and additional fees for being the Chair, Audit Committee Chair and / or Audit
Committee Member). Such fees are market based by reference to other NZX listed entities;
this is assessed annually. Accordingly, the Board considers that it is unnecessary for Vital to
maintain a remuneration policy. As a result, Vital does not comply with this recommendation.
5.3An issuer should disclose the remuneration arrangements
in place for the CEO in its annual report. This should
include disclosure of the base salary, short term
incentives and long term incentives and the performance
criteria used to determine performance based payments.
Vital does not have any employees as it is externally managed by the
Manager. The remuneration of the Fund Manager (CEO equivalent) is not
paid by Vital. The remuneration is paid by the Manager or its related parties.
Accordingly, Vital does not comply with this recommendation.
ANNUAL REPORT 2023
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69

ReferenceRecommendationApproach
Principle 6 – Risk management
6 .1An issuer should have a risk management
framework for its business and the issuer’s board
should receive and review regular reports. An
issuer should report the material risks facing the
business and how these are being managed
The Board of Directors maintains a sound understanding of key risks faced by
Vital. Effective management of all financial and nonfinancial risks is fundamental
to the delivery of the Board’s strategy. In addition, the Manager will engage
other external advisers as appropriate to deal with specific risks.
The Manager has a risk management framework that is integrated into
day-to-day operations. As part of this framework, the Board and Audit
Committee work closely with management and external auditors to
support the identification, management and reporting of risks.
This risk management framework is part of Vital’s compliance assurance requirements
under the FMCA. Higher risk groups are reviewed yearly with lower risk groups
reviewed biennially. The risk management framework/Compliance Assurance
Programme is reviewed on an annual basis and approved by the Board.
The Manager has currently identified the following key risk categories:
• Fund Manager risk
• Development risk;
• Acquisition of Investment risk
• Asset and facilities management risk
• Information, data security/cybersecurity risk
• Energy/carbon efficiency of assets and operations risk;
• Talent recruitment, retention and succession planning;
• Reputation (social responsibility, brand and stakeholder relationships)
• Access to capital risk
• Compliance risk
• Governance risk
• Fraud/Misconduct Risk
6.2An issuer should disclose how it manages its health
and safety risks and should report on their health
and safety risks, performance and management
The Manager has implemented a site-specific hazard register which can be updated
in real time. The Manager works alongside tenants, suppliers and contractors to assist in
providing a safe working environment. The Manager has implemented an Operational
Risk Committee that meets once a month to review health and safety and risk management
systems. Health and safety is a standing item on the agenda for Board meetings.
Principle 7 – Auditors
7.1The board should establish a framework
for the issuer’s relationship with its external
auditors. This should include procedures:
a. for sustaining communication with
the issuer’s external auditors;
b. to ensure that the ability of the external
auditors to carry out their statutory audit
role is not impaired, or could reasonably
be perceived to be impaired;
c. to address what, if any, services (whether by type
or level) other than their statutory audit roles may
be provided by the auditors to the issuer; and
d. to provide for the monitoring and approval
by the issuer’s audit committee of any service
provided by the external auditors to the issuer
other than in their statutory audit role.
The Board has established an Audit Committee with a majority of Independent
Directors. A copy of the Audit Committee Charter can be found on Vital’s
website https://www.vitalhealthcareproperty.co.nz/governance/.
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.
The Board facilitates regular and full interface between its Audit Committee, the
external auditors and management as reflected in the Audit Committee charter.
7. 2The external auditor should attend the issuer’s
Annual Meeting to answer questions from
shareholders in relation to the audit.
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 Unit Holders’ 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.
7. 3Internal audit functions should be disclosed.The Manager’s ultimate parent has an internal audit programme that
includes an annual global internal control review. The scope of this
programme encompasses both the Manager and Vital.
In addition, Vital has a Supervisor who undertakes oversight functions on behalf of Unit
Holders including in relation to conduct and the payment of management fees / expenses.
70
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VITAL HEALTHCARE PROPERTY TRUST

ReferenceRecommendationApproach
Principle 8 – Shareholder rights and relations
8 .1An issuer should have a website where investors
and interested stakeholders can access financial
and operational information and key corporate
governance information about the issuer.
Vital’s website www.vhpt.co.nz enables Unit Holders to access financial and operational
information and key corporate governance information about Vital. The website
allows key stakeholders to access and navigate important information with ease.
8.2An issuer should allow investors the ability to
easily communicate with the issuer, including by
designing its shareholder meeting arrangements
to encourage shareholder participation and by
providing shareholders the option to receive
communications from the issuer electronically.
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. vhpt.co.nz.
Vital’s website is designed to make it easier for Unit Holders to locate and understand
key information. The website enables all existing and potential Unit Holder 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 Policies and
Objectives (SIPO) and other key policy documentation.
The Manager also actively encourages engagement through
a communication strategy which includes:
• The Annual Meeting for the Unit Holders 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; and
• Various investor communications including Annual Reports and Interim Reports.
Through Vital’s external registrar investors have the ability to easily communicate
with the issuer, including providing the option to receive communications from the
issuer electronically. There is a NZ toll free number 0800 225 264 and email
address enquiry@vhpt.co.nz to which general enquiries can be directed.
To further enhance Unit Holder engagement, the format of Vital’s annual meetings is a
‘hybrid’ meeting, allowing investors to attend in-person or virtually by attending the meeting
online. Where one format of meeting may be more appropriate in the circumstances, the
Directors will take into account the competing interests, cognisant of the importance of
Unit Holder participation. The Directors have at the forefront, when making this decision.
the importance of ensuring that all Unit Holders are adequately informed about the format
of these meetings as well as the rules applicable to voting and participation generally.
8.3Quoted equity security holders should have the right
to vote on any major decisions which may change
the nature of the issuer in which they are invested.
Terms of Vital’s Trust Deed and the FMCA set out requirements under
which the Manager must obtain the approval of Unit Holders.
As a managed investment scheme regulated by the FMCA, investment
objectives, investment philosophy, investment strategy and categories of
authorised investments are required to be set out in a Statement of Investment
Policy and Objectives (SIPO). A copy of Vital’s SIPO is available here:
https://www.vitalhealthcareproperty.co.nz/app/
uploads/2021/02/SIPO_Vital_New.pdf
Changes to the SIPO may only be made in accordance with section 165 of the FMCA
after having given written notice to Vital’s supervisor, Trustees Executors Limited.
8.4If seeking additional equity capital, issuers of
quoted equity securities should offer further
equity securities to existing equity security holder
of the same class on a pro rata basis, and on
no less favourable terms, before further equity
securities are offered to other investors.
Vital’s most recent equity capital raising was implemented in April and May 2022
as an accelerated entitlement offer. Eligible Unit Holders were entitled to subscribe
for 1 new unit for every 8.54 units held at the record date. This structure allowed
existing Unit Holders to participate on a pro rata basis, on no less favourable terms
(subject to certain exceptions, like for Unit Holders outside New Zealand).
Previous equity capital raisings completed in 2020 and 2021 were structured as
a combination of a non-pro rata placement and a Unit Holder purchase plan and
were undertaken as close to a pro-rata structure as practicable in accordance
with the Board approved allocation policy. The Board of the Manager considers
a range of factors when assessing capital raising options. Those factors include
the interests of existing Unit Holders, cost of capital and register composition.
8.5The board should ensure that the notices of annual
or special meetings of quoted equity security
holders is posted on the issuer’s website as soon as
possible and at least 20 days prior to the meeting.
Under Vital’s Trust Deed at least 14 days’ notice is required for notices of meeting
to be sent by post. Vital will continue to follow the Trust Deed when determining the
period of notice to be given. Having said that, the Notices of Meeting for Vital’s
annual meeting in 2020, 2021 and 2022 were provided at least 20 days prior to the
meeting, as was the Notice of Meeting for the special meeting of Unit Holders held in
2021. The notice of meeting is released on the NZX and included on Vital’s website.
ANNUAL REPORT 2023
|
71

Financial Statements
72
|
VITAL HEALTHCARE PROPERTY TRUST

ANNUAL REPORT 2023|73
Contents
Consolidated Statement of Comprehensive Income74
Consolidated Statement of Financial Position75
Consolidated Statement of Changes in Equity76
Consolidated Statement of Cash Flows77
Notes to the Consolidated Financial Statements78
ABOUT THIS REPORT78
1. Reporting Entity 78
2. Basis of Preparation78
3. Significant Accounting Policies79
PERFORMANCE80
4. Segment Information 80
5. Taxation82
6. Investment Properties 85
7. Other Expenses94
CAPITAL STRUCTURE, FINANCING AND RISK MANAGEMENT95
8. Units on Issue95
9. Earnings per Unit96
10. Distributable Income 97
11. Borrowings98
12. Lease Liabilities 100
13. Derivative Financial Instruments100
14. Financial and Risk Management 102
15. Commitments and Contingencies 107
EFFICIENCY OF OPERATIONS108
16. Statement of Cash Flows Reconciliation from Operating Activities108
17. Trade and Other Receivables109
18. Other Assets110
19. Trade and Other Payables110
OTHER NOTES111
20. Investment in Subsidiaries 111
21. Subsequent Events 111
22. Related Party Transactions 111

74|VITAL HEALTHCARE PROPERTY TRUST
Consolidated Statement of
Comprehensive Income
For the year ended 30 June 2023
Note
2023
$000s
2022
$000s
Gross property income from rentals150,530127,397
Gross property income from expense recoveries20,78516,236
Property expenses(26,091)(20,615)
Net property income4145,224123,018
Other expenses7(37,960)(37,235)
Strategic transaction expenses-(283)
Finance income445212
Finance expense11.b(38,215)(29,195)
Operating profit69,49456,517
Other gains/(losses)
Revaluation gain/(loss) on investment property6.a(208,553)244,239
Net gain/(loss) on disposal of investment property(3,697)700
Fair value gain/(loss) on foreign exchange derivatives651(664)
Fair value gain/(loss) on interest rate derivatives5,87261,468
Realised gain/(loss) on foreign exchange(1)(11)
Unrealised gain/(loss) on foreign exchange61126
(205,117)305,758
Profit before income tax(135,623)362,275
Taxation expense5(16,778)(58,753)
Profit for the year attributable to unit holders of the Trust(152,401)303,522
Other comprehensive income
Items that may be reclassified subsequently to profit and loss:
Movement in foreign currency translation reserve(20,386)36,556
Current taxation (expense)/credit-338
Total other comprehensive income/(loss) after tax(20,386)36,894
Total comprehensive income after tax(172,787)340,416
Earnings per unit
Basic and diluted earnings per unit (cents)9(23.22)53.33
The notes on pages 78 to 115 form part of and are to be read in conjunction with these financial statements.

ANNUAL REPORT 2023|75
Consolidated Statement of
Financial Position
As at 30 June 2023
Note
2023
$000s
2022
$000s
Non-current assets
Investment properties63,288,3563,339,169
Derivative financial instruments1326,04720,692
Total non-current assets3,314,4033,359,861
Current assets
Non-current assets classified as held for sale692,364-
Cash and cash equivalents1610,88522,055
Trade and other receivables175,7832,442
Other current assets185,76315,451
Derivative financial instruments1351425
Total current assets115,30939,973
Total assets3,429,7123,399,834
Unit holders' funds
Units on issue81,180,9221,150,881
Reserves23,24044,590
Retained earnings753,220970,405
Total unit holders' funds1,957,3822,165,876
Non-current liabilities
Borrowings111,239,1561,012,952
Lease liability - ground lease3,7243,903
Derivative financial instruments13-150
Deferred tax5177,527178,316
Total non-current liabilities1,420,4071,195,321
Current liabilities
Trade and other payables1941,52231,946
Income in advance1,526621
Derivative financial instruments138535
Lease liability - ground lease178170
Taxation payable8,6895,365
Total current liabilities51,92338,637
Total liabilities1,472,3301,233,958
Total unit holders' funds and liabilities3,429,7123,399,834
For and on behalf of the Manager, Northwest Healthcare Properties Management Limited
G Stuart, Independent Chair
10 August 2023
M Stanford,
Independent Director
The notes on pages 78 to 115 form part of and are to be read in conjunction with these financial statements.

76|VITAL HEALTHCARE PROPERTY TRUST
Consolidated Statement of
Changes in Equity
For the year ended 30 June 2023
Units on
issue
$000s
Retained
earnings
$000s
Translation
of foreign
operations
$000s
Foreign
exchange
hedges
$000s
Share
based
payments
$000s
Total
unit
holders'
funds
$000s
For the year ended 30 June 2022
Balance at the start of the period777,199722,044(71,292)63,07312,4271,503,451
Changes in unit holders' funds373,682---(12,427)361,255
Manager's incentive fee----15,91515,915
Profit for the period-303,522---303,522
Distributions to unit holders-(55,161)---(55,161)
Other comprehensive income for the period
Movement in foreign currency translation reserve--36,556--36,556
Realised foreign exchange gains on hedges---338-338
Balance at the end of the year1,150,881970,405(34,736)63,41115,9152,165,876
For the year ended 30 June 2023
Balance at the start of the period1,150,881970,405(34,736)63,41115,9152,165,876
Changes in unit holders' funds30,041---(15,915)14,126
Manager's incentive fee----14,95114,951
Profit for the period-(152,401)---(152,401)
Distributions to unit holders-(64,784)---(64,784)
Other comprehensive income for the period
Movement in foreign currency translation reserve--(20,386)--(20,386)
Balance at the end of the year1,180,922753,220(55,122)63,41114,9511,957,382
The notes on pages 78 to 115 form part of and are to be read in conjunction with these financial statements.

ANNUAL REPORT 2023|77
Consolidated Statement of
Cash Flows
For the year ended 30 June 2023
Note
2023
$000s
2022
$000s
Cash flows from operating activities
Property income151,732126,517
Recovery of property expenses19,63715,934
Interest received445212
Property expenses(29,930)(18,762)
Management and trustee fees(20,518)(17,478)
Interest paid(35,277)(26,514)
Tax paid(11,183)(15,849)
Other trust expenses(1,323)(3,573)
Net cash provided by/(used in) operating activities1673,58360,487
Cash flows from investing activities
Receipts from foreign exchange derivatives475504
Capital additions on investment properties(182,137)(137,780)
Purchase of properties(151,983)(299,858)
Deposits and acquisiton costs paid – Investment Property(2,514)(10,178)
Proceeds from disposal of properties58,75614,355
Tenant fitout reimbursement proceeds-31,527
Payments for foreign exchange derivatives(473)(506)
Strategic transaction expenses-(283)
Net cash provided by/(used in) investing activities(277,876)(402,219)
Cash flows from financing activities
Debt drawdown428,810835,115
Repayment of debt(182,925)(780,338)
Issue of units-342,817
Loan issue costs(2,072)(3,963)
Costs associated with new equity raised(95)(5,353)
Distributions paid to unit holders(50,595)(31,371)
Net cash from/(used in) financing activities193,123356,907
Net increase/(decrease) in cash and cash equivalents(11,170)15,175
Cash and cash equivalents at the beginning of the period22,0556,880
Cash and cash equivalents at the end of the year10,88522,055
The notes on pages 78 to 115 form part of and are to be read in conjunction with these financial statements.

78|VITAL HEALTHCARE PROPERTY TRUST
Notes to the Consolidated Financial Statements
About this Report
1. Reporting Entity

Vital Healthcare Property Trust (“VHP” or the “Trust”) is 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”), with its registered office at Level 17, HSBC Tower, 188 Quay Street, Auckland
Central 1010.
The consolidated financial statements of VHP for the year ended 30 June 2023 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 Group's principal activity is the direct and/or indirect ownership of healthcare real estate.
These consolidated financial statements were approved by the Board of Directors of the Manager on 10 August 2023.
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)
and comply with New Zealand equivalents to International Financial Reporting Standards (NZ IFRS) and other applicable Financial
Reporting Standards, as appropriate for
profit-oriented entities. Accordingly these financial statements comply with International Financial
Reporting Standards (IFRS).
(b)
 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 date of acquisition to the date of disposal. All intra-group transactions, balances, cashflows,
income and expenses are eliminated on consolidation.
(c)
 Basis of measurement
The Group uses the historical cost basis except for derivative financial instruments and investment properties which are measured at fair
value. Historical cost is based on the fair value of the consideration given or received in exchange for assets or liabilities. Fair value is
the price 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, regardless of whether that price is directly observable or estimated using another valuation technique.
(d)
 Functional and presentation currency
These financial statements are presented in New Zealand Dollars ($), which is the Trust's functional and presentation currency. All
information has been rounded to the nearest thousand dollars ($000), unless stated otherwise.
In preparing the financial statements, transactions in currencies other than the Trust’s functional currency (i.e. a foreign currency transaction)
are recorded at the rates of exchange prevailing at the dates of the transactions. At the end of each reporting period, foreign currency
denominated monetary items 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 to hedge foreign currency exposure.
The assets and liabilities of the Group’s foreign operations are translated to 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 on translation are recognised in other comprehensive income and the foreign currency translation reserve.

ANNUAL REPORT 2023|79
(e) Changes in accounting policy and presentation
All accounting policies have been applied on a basis consistent with the prior year's financial statements.
(f) Standards and Interpretations in issue not yet effective
At the date of authorisation of these financial statements, the Group has not applied new and revised NZ IFRS standards and amendments
that have been issued but are not yet effective. It is not expected that the adoption of these standards and amendments will have a material
impact on the financial statements of the Group.
(g) Climate-related disclosures
On 14 December 2022, the External Reporting Board (XRB) published Climate-related Disclosure standards that are applicable from
reporting periods beginning on or after
1 January 2023.
Vital’s first report under this reporting regime will be available by October 2024.
(h)
 Other accounting policies
Significant accounting policies that summarise the measurement basis used and are relevant to an understanding of the consolidated
financial statements are provided throughout the notes to the consolidated financial statements.
(i)
 The notes to the consolidated financial statements
The following notes include information required to understand these financial statements that is relevant and material to the operations,
financial position and performance of the Group. The notes have been collated into sections to help users find and understand inter-related
information. Information is considered material and relevant if, for example:
•the amount in question is significant by virtue of its size or nature;
•it is important to understand the results of the Group;
•it helps explain the impact of significant changes in the Group's business; or
•it relates to an aspect of the Group's operations that is important to its future performance.

3.
 Significant Accounting Policies
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, however actual results may differ from these
estimates and assumptions.
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.
The critical judgements, estimates and assumptions made in the current period are contained in the following notes:
NoteDescription
Note 5Current and deferred taxation
Note 6Valuation of investment properties
Note 22Related party transactions

80|VITAL HEALTHCARE PROPERTY TRUST
Notes to the Consolidated Financial Statements
Performance
This section shows the results and performance of the Group and its reporting segments and includes detailed information in respect to its
revenues, expenses and profitability. It also provides information on the investment properties that underpin the Group's performance.
4. Segment Information

The Group is a long-term investor in healthcare real estate. Segment profit represents the profit from each segment including an allocation
of identifiable administration costs, finance costs and gains/(losses) on investment properties. This is the measure reported to the Board,
who are the chief operating decision makers for the purposes of resource allocation and assessment of segment performance. The Group
operates in both Australia and New Zealand.
The following is an analysis of the Group’s results by reportable segment.
Australia
$000s
New Zealand
$000s
Total
$000s
Segment profit/(loss) for the year ended 30 June 2023:
Gross property income from rentals102,46748,063150,530
Gross property income from expense recoveries9,51011,27520,785
Property expenses(13,450)(12,641)(26,091)
Net property income98,52746,697145,224
Other expenses(14,838)(23,122)(37,960)
Net finance income/(expense)(39,538)1,768(37,770)
Operating profit44,15125,34369,494
Fair value gain/(loss) on interest rate derivatives8565,0165,872
Revaluation gain/(loss) on investment properties(69,999)(138,554)(208,553)
Net gain/(loss) on disposal of investment property(3,697)-(3,697)
Other foreign exchange gains/(losses)1701,0911,261
Total segment profit before income tax(28,519)(107,104)(135,623)
Taxation expense(16,778)
Profit for the year(152,401)
Segment profit/(loss) for the year ended 30 June 2022:
Gross property income from rentals91,79235,605127,397
Gross property income from expense recoveries6,6589,57816,236
Property expenses(10,200)(10,415)(20,615)
Net property income88,25034,768123,018
Other expenses(14,888)(22,347)(37,235)
Strategic transaction expenses-(283)(283)
Strategic transaction interest income---
Net finance income/(expense)(14,991)(13,992)(28,983)
Operating profit58,371(1,854)56,517
Fair value gain/(loss) on interest rate derivatives-61,46861,468
Revaluation gain/(loss) on investment properties188,64855,591244,239
Net gain/(loss) on disposal of investment property700-700
Other foreign exchange gains/(losses)(11)(638)(649)
Total segment profit before income tax247,708114,567362,275
Taxation expense(58,753)
Profit for the year303,522

ANNUAL REPORT 2023|81
Net property income comprises rental income and expense recoveries from tenants less property expenses. The Group has three
Australian tenants and one New Zealand tenant that contributed $96.4m of gross property income (2022: four Australian tenants that
contributed $72.5m).
There were no inter-segment sales during the year (2022: nil).
Australia
$000s
New Zealand
$000s
Total
$000s
Segment assets at 30 June 2023:
Investment properties2,338,978949,3783,288,356
Other non-current assets85225,19526,047
Current assets104,04311,266115,309
Consolidated assets2,443,873985,8393,429,712
Segment assets at 30 June 2022:
Investment properties2,391,228947,9413,339,169
Other non-current assets-20,69220,692
Current assets18,78221,19139,973
Consolidated assets2,410,010989,8243,399,834
Segment liabilities at 30 June 2023:
Borrowings1,164,78574,3711,239,156
Other liabilities190,33742,837233,174
Consolidated liabilities1,355,122117,2081,472,330
Segment liabilities at 30 June 2022:
Borrowings993,23419,7181,012,952
Other liabilities190,10630,900221,006
Consolidated liabilities1,183,34050,6181,233,958
All assets and liabilities have been allocated to reportable segments.

82|VITAL HEALTHCARE PROPERTY TRUST
Notes to the Consolidated Financial Statements
5. Taxation
Income tax recognised in the consolidated statement of comprehensive income
2023
$000s
2022
$000s
Profit/(loss) before tax for the period(135,623)362,275
Taxation (charge)/credit - 28% on profit before income tax37,974(101,437)
Effect of different tax rates in foreign jurisdictions(3,262)32,203
Tax exempt income/(loss)(38,681)16,748
Tax impact of leasing deals(215)191
Foreign tax credits4604,753
Tax charges on overseas investments(12,710)(11,500)
Over/(under) provided in prior periods-449
Other adjustments(344)(160)
Taxation expense(16,778)(58,753)
The taxation (charge)/credit is made up as follows:
Current taxation(14,787)(8,280)
Deferred taxation(1,991)(50,473)
Total taxation expense(16,778)(58,753)
The key assumptions used in the preparation of the Group’s tax calculation are as follows:
Tax rate:
The Group is subject to New Zealand tax on assessable income, including assessable Foreign Investment Fund ("FIF") income attributed
from its Australian subsidiaries (applying either the Fair Dividend Rate ("FDR") method or the attributable FIF method), at a rate of 28%. Its
Australian subsidiaries are subject to Australian witholding tax on assessable income at a rate of 10% for interest income or 15% for 'fund
payment' amounts as they are Australian Managed Investment Trusts (MIT), for which a New Zealand tax credit is generally available.

ANNUAL REPORT 2023|83
Deferred Tax balances
Interest rate
swaps
$000s
Revaluation
of investment
properties
$000s
Borrowings
$000s
Other
$000s
Total
$000s
At 1 July 202111,485(134,503)(38)172(122,884)
Charge to profit and loss for the year(17,211)(33,274)(48)60(50,473)
Change in exchange rate-(5,112)-153(4,959)
At 30 June 2022(5,726)(172,889)(86)385(178,316)
At 1 July 2022(5,726)(172,889)(86)385(178,316)
Charge to profit and loss for the year(1,634)(116)(48)(194)(1,991)
Change in exchange rate(0)2,815(40)52,780
At 30 June 2023(7,359)(170,190)(174)197(177,527)

84|VITAL HEALTHCARE PROPERTY TRUST
Notes to the Consolidated Financial Statements
Imputation credits
2023
$000s
2022
$000s
Imputation (deficit)/credits at end of year(4,441)(410)
Recognition and measurement

Income tax comprises current and deferred tax. It is recognised in the consolidated profit or loss unless it relates to items recognised in other
comprehensive income, in which case the current or deferred tax is recognised in other comprehensive income.
Current tax
Current tax is the expected tax payable on the taxable income for the financial year, determined using tax rates enacted or substantively
enacted at the reporting date in the countries where the Group operates, and any adjustments to tax payable in respect of previous
financial years. Management periodically evaluates positions taken in tax returns where the applicable tax regulation is subject to
interpretation and establishes appropriate provisions on the basis of amounts expected to be paid to the tax authorities.
Deferred tax
Deferred tax is provided using the balance sheet liability method, recognising temporary differences between the carrying amounts of assets
and liabilities for financial reporting purposes and their amounts for taxation purposes.
Deferred tax liabilities are recognised for all taxable temporary differences. Deferred tax assets are recognised for all deductible temporary
differences and carried forward tax losses, to the extent that it is probable that taxable profit will be available to utilise them.
The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer
probable that sufficient taxable profits will be available to utilise them.
Deferred tax assets and liabilities are measured using the tax rates that are expected to apply to the forecast circumstances and the
period(s) when the asset or liability giving rise to them are realised or settled, based on the tax rates and laws enacted or substantively
enacted at balance date.
Deferred tax assets and liabilities are offset where there is a legally enforceable right to set off, they relate to the same taxation authority,
and the Group intends to settle its obligations on a net basis.
Significant
estimates and judgements

Significant estimates and judgements made in the determination of deferred tax include:
•Deferred tax on depreciation: Deferred tax is provided for in respect of New Zealand properties for the depreciation expected to be
recovered on the sale of investment property.
•Deferred tax on changes in fair value of investment properties: Deferred tax for Australian properties is provided on the capital gain that
is expected to be assessable on the land and building component from the sale of investment properties at fair value. The tax rate used
when measuring the deferrred tax position for Australian properties is either 15% (FDR method which applies the Australian 'fund payment'
withholding tax rate) or 28% (Attributed FIF method which applies the New Zealand tax rate) based on the Group's actual FIF income
attribution method election and/or its intention to 'opt-in' to the FDR method.
•Deferred tax on fixtures and fittings: It is assumed that all fixtures and fittings will be sold at their tax book value.
•Deferred tax positions are based on an estimated split between land and buildings as determined by registered valuers