Indicative valuation changes; non-core asset sales update

VITAL HEALTHCARE PROPERTY TRUST vhpt.co.nz
Managed by Northwest Healthcare
Properties Management Limited
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MARKET RELEASE
15 January 2024
Indicative valuation changes to 31 December 2023; non-core asset sales update
Northwest Healthcare Properties Management Limited, the manager of Vital Healthcare Property
Trust (Vital), advises that it expects Vital to record a property revaluation loss of ~NZ$145m for the six
months ended 31 December 2023, with ~44% of the portfolio (by value) having been
independently valued.
This preliminary draft revaluation loss represents a ~4.4% decrease since 30 June 2023 comprising a
~5.0% decrease for the Australian portfolio and a ~2.7% decrease for the New Zealand portfolio.
The primary driver of this indicative result is ~16 basis points of softening in the weighted average
capitalisation rate for the portfolio ( ~14 basis points softening for Australia and ~16 basis points
softening for New Zealand).
The indicative weighted average capitalisation rate is expected to be ~5.21% at 31 December
2023 reflecting ~5.02% for the Australian portfolio and ~5.61% for the New Zealand portfolio.
The indicative revaluation loss referred to above is subject to audit and final board approval which
will be confirmed when Vital's interim results are released (expected to occur on 15 February 2024).
Consistent with announcements made in November 2023, Vital has also sold five aged care assets
leased to Hall & Prior for NZ$65m reflecting a ~1% discount to the 30 June 2023 book value.
Settlement occurred on 19 December 2023 with proceeds used to repay debt.
Over the last 12 months, Vital has sold ~NZ$220m of non-core assets at a weighted average
discount of ~8.2% to the 31 December 2022 book values and has a further ~NZ$90m under
conditional contract.
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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 (~81%* of portfolio value), ambulatory care
facilities (~17%* of portfolio value) and aged care (~2%* 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.
*All figures indicative as at 31 December 2023. Visit www.vhpt.co.nz for more information about Vital.