Vital announces FY24 Third Quarter Results

The Distribution Reinvestment Plan (DRP)
provides Vital with additional retained
earnings to fund developments and
provides Unit Holders with a low cost
way of increasing their holding in Vital.
Q3 DISTRIBUTION
CAS H
DISTRIBUTION
2.4375cpu
ANNUAL
DISTRIBUTION
9.75 cpu
IMPUTATION
CREDITS
0.6857 cpu
DRP active
Payment date 20 June 2024
Ex date 5 June 2024
Vital owns a high-quality portfolio of
hospital and other healthcare properties
valued at ~NZ$3.3 billion across New
Zealand and Australia providing Unit
Holders with a stable and growing
income stream via distributions as well
as opportunities for capital appreciation
via unit price growth.
FY24 Third
Quarter Update
1 JANUARY 2024 - 31 MARCH 2024
Dear Unit Holders
In addition to Vital’s year-to-date
financials, this quarterly update provides
details on two matters Unit Holders have
queried: (1) how the healthcare sector is
faring and (2) the relationship between
property valuations and interest rates.
Healthcare Sector Update
We are currently seeing differences in
healthcare operator performance across
different geographies, specialties and between
individual operators. While temporary structural
issues are present, the long-term tailwinds
for healthcare property remain robust.
In New Zealand, public and private healthcare
providers are struggling to keep pace with
demand, increasing pressure on aging
infrastructure given long-term underinvestment
in the sector. The percentage of the population
with private health insurance continues to trend
upwards and Vital is increasingly working with
operators and tenants, as well as Health NZ –
Te Whatu Ora, on infrastructure solutions. The
combination of these factors provides Vital with
significant opportunities at both existing and
to-be developed facilities in New Zealand.
In Australia, private healthcare procedures
are growing but below their long-term growth
rate due to a mixture of workforce shortages
and behavioural changes, reduced GP and
specialist presentations and cost pressures on
households. Insurance payments for private
healthcare have also not kept pace with either
increases in private health insurance premiums
nor rising costs for healthcare operators. These
twin impacts of lower than anticipated demand
and income rising slower than costs have put
Macarthur Health Precinct
significant pressure on private hospital operators
as a whole. However, some operators have
been able to minimise these impacts and adjust
to market conditions, particularly as payments
for procedures are based on individual
facilities. The vast majority of Vital’s operators
remain profitable and continue to grow.
For Vital, the most important measure of the
long-term health and viability of our tenants is
rent cover. We are seeking to ensure that at
each facility Vital owns, the profit or EBITDAR
1

is around twice the rent for the facility providing
a buffer for unexpected circumstances or
temporary structural issues like Australia is
experiencing at present. Pleasingly, Vital’s
rent approximates this rent cover range so
does not represent a current concern.
We also remain confident of the long-term
tailwinds for healthcare property across
Australia and New Zealand due to:
1. Healthcare spending being
nondiscretionary or high priority.
2. Strong demand for healthcare property
versus other sectors due to key activities like
surgery and diagnostics only able to be
undertaken in-person on-site. This physical
presence demand driver is a differentiating
factor compared to the impact of working
from home on the office property sector
and on-line shopping impacting the
retail property sector as an example.
3. Growing demand due to growing ageing
populations, increasing life expectancy
and increased healthcare offerings
due to technological advances.
LISTED HEALTHCARE
(GLOBALLY) -
PERFORMANCE AND
DEVELOPMENT
PLACE
1
ST
PLACE
1
ST
5 STAR
ESG RATING
SECTOR LEADER
2023
1
Earning Before Interest, Tax, Depreciation, Amortisation and Rent
SILVER AWARD
2024 AUSTRALASIAN
REPORTING AWARDS
Vital Healthcare Property Trust, Managed by Northwest Healthcare Properties Management LtdThird Quarter Update FY24 | 1

PAYMENT DATE
20 JUNE 2024
Ex date
5 June 2024
Q3 Distribution
1
Overnight cash rate set by the Reserve Bank of New Zealand.
2
A capitalisation rate indicates the percentage return (rent) for a given property value.
3
There are indirect impacts which are beyond the simple analysis presented here.
4
With few transactions being completed in the market, there is currently little comparable market evidence. For this reason the Directors have
placed a heavier reliance on the cashflow valuation and capitalisation rates in arriving at their portfolio valuation as at 31 March 2024. The
30 June financial year end valuations will have greater input from independent valuers who will be valuing 100% of the portfolio (by value)
67% of which (also by value) will be fullsome and the balance by way of desktop reviews.
Interest rates and property values
There are three basic ways
to value real property:
1. valuing expected cashflows;
2. comparable market evidence/
transactions; and
3. “sum of the parts” or replacement cost.
The first method takes projected cashflows
(in Vital’s case this is the rent received from
an asset less the cost of owning that asset)
over 10 years, discounted to reflect the time
value of money or a present dollar value.
All other things being equal, if interest rates
increase, a dollar of income in the future
is worth less than if interest rates had been
held constant or declined so the net present
value of projected cashflows also declines.
The second method considers the market
environment primarily based on recent
sales of similar assets. For example, when
you buy a house, a rise in interest rates
impacts your capacity (i.e. borrowing
ability) and / or willingness (i.e. a house
purchase compared to other uses for your
money including other investments) to pay
a purchase price. Again, all other things
being equal, as interest rates rise, the prices
buyers are willing / able to pay decreases.
To illustrate the relationship between interest
rates and property values, the chart above
shows the weighted average capitalisation
rates
2
of the seven largest NZX-listed
property groups since 2010 compared with
the OCR over the same period. You can see
that as the OCR increases the capitalisation
rates also increase (albeit not smoothly
and with some lags). As capitalisation
rates increase, property values decrease,
reflecting that if rent remains fixed but return
requirements increase (often due to rising
interest rates), property values need to fall.
Interest rate movements don’t have a
significant direct impact on the third
method
3
and this is of more relevance
for insurance or replacement purposes
than for showing current market value.
All of these valuation methods are at a
point in time and fluctuate continually.
They are also not the sole determinants
of valuation outcomes. For Vital, annual
rental growth under leases, underlying
demand for healthcare property and
development margins are also key
drivers of valuation growth and it is these
factors which give us most comfort for
ongoing healthy returns for Vital.
4
0%
2%
4%
6%
8%
10%
20102011201220132014201520162017201820192020202120222023202420252026
NZX REITOCR
Projected
OCR
Aaron Hockly
Fund Manager
9 May 2024
NZX REIT WEIGHTED CAP RATE VS OCR
1
(2010 - CURRENT)
*

All figures calculated by value as at 31 March 2024. Figures may
not sum due to rounding.
Source: CBRE Research & Forsyth Barr
69%
AUSTRALIA
GEOGRAPHIC DIVERSITY
31 %
NEW ZEALAND
18.2 years
WEIGHTED AVERAGE
LEASE EXPIRY (WALE)
~NZ$3.3bn
PORTFOLIO VALUE
79%
SUB-SECTOR EXPOSURE
19 %
SUB-SECTOR EXPOSURE
2%
SUB-SECTOR EXPOSURE
PRIVATE HOSPITALS
AMBULATORY CARE
AGED CARE
Portfolio Overview*
Vital Healthcare Property Trust, Managed by Northwest Healthcare Properties Management LtdThird Quarter Update FY24 | 2

Opening of Macarthur Health Precinct Stage 1
On 27 March 2024, the Minster of Health for New South
Wales, the Hon. Ryan Park, officially opened the GenesisCare
Integrated Cancer & Health Centre in Campelltown in Sydney’s
Southwest. This A$51.4m (excluding land) 4-storey comprehensive
Cancer Centre has 2 radiotherapy bunkers, 11 medical oncology
chairs and a wellness centre. It is the first of what is expected
to be three stages of development to create a new healthcare
precinct in one of Australia’s fastest growing areas.
The building is targeting a 6 Star Green Star rating, the
highest level of sustainability performance available.
Opening of new Community birthing facility
in Christchurch
On 4 April 2024, New Zealand’s Minister of Health, Dr Shane
Reti MP, officially opened Kurawaka Waiapapa. This facility
comprises four birthing units, 20 postnatal rooms, two whānau
rooms, an education room and six assessment rooms and
is ~400m from Christchurch Hospital. Approximately half of
Christchurch Central’s births are expected to occur here in the
future taking pressure off both the existing public facilities and
families who might otherwise need to travel long distances.
The name, Kurawaka Waiapapa, was gifted by Te Maire Tau, Te
Ngāi Tūāhuriri hapū Ūpoko. In Te Ao Māori, Kurawaka is the place
where the first human being was made by Tāne and Waipapa,
meaning surface water, denotes the springs that were in the area
and was the original name for the area around Hagley Park.
Vital’s holding in this core healthcare precinct includes a
significant parcel of undeveloped land which Vital is seeking
to develop for public and / or private healthcare uses.
Correction of error in half year results
In Vital’s half year results released in February 2024,
Vital’s WALE was noted as “19.2 years” as at 31
December 2023 whereas it should have been “18.5
years”. As noted elsewhere in this report, Vital’s
WALE as at 31 March 2024 was 18.2 years.
Keystone scholarship awarded
In February 2024, Vital awarded its second annual
Keystone Trust scholarship to Charlotte Simpson
who is working towards a conjoint Bachelor of
Property and Bachelor of Commerce degree at
the University of Auckland
Sustainability is a core part of everything that Vital and
Northwest do.
DevelopmentsSustainability
Climate Change Scenarios for the Health Sector
Together with other major public and private healthcare
operators in New Zealand, Vital helped lead and fund
the development of climate change scenarios.
These scenarios provide a way for organisations in the health
sector to consider and challenge their strategies and future plans
and will support climate related disclosures by several entities
including Vital which is required to report by October 2024.
The scenarios were officially launched on 7 May 2024. More details
are available here: www.vitalhealthcareproperty.co.nz/news/
Aaron Hockly with 2024 Keystone scholarship recipient Charlotte Simpson.
NTA PER UNIT
$2.72
3.8%
INCREASE IN UNDERLYING
EARNINGS OVER Q3
Vital Healthcare Property Trust, Managed by Northwest Healthcare Properties Management LtdThird Quarter Update FY24 | 3

Q3 UPDATE
Like-for-like Financial Performance (unaudited)
1
Financial Position (unaudited)
For the period
3 months to
31 Mar 24
$000s
3 months to
31 Mar 23
$000s
Variance
$000s
Change
%
Gross property income 40,313 40,598
Property expenses (5,618) (7,190)
Like-for-like net property income34,69433,408 1,286 3.8%
Net property income from disposals 10 3,133
Net property income from developments 2,328 376
Straight-line rent (670) (613)
Non-recurring items 18 (58)
Foreign exchange (285) -
Net property income36,09636,247 (151)-0.4%
As at
31 Mar 24
$000s
31 Dec 23
$000s
Variance
$000s
Change
%
Assets
Investment properties 3,305,119 3,216,175 87,002 2.7%
Investment properties - held for sale - 1,942
Other assets 58,191 51,632
Liabilities
Borrowings 1,327,125 1,251,415 75 , 710 6.0%
Other liabilities 212,297 2 0 7, 917
Debt to gross assets39.5%38.3%1.2%
Total Unit Holders’ funds 1,823,888 1,810,417 13,471 0.7%
Units on issue (000s) 671,326 670,511
Net tangible assets ($/unit)2.722 . 700.020.7%
Period end NZD/AUD exchange rate0 . 916 40 .9270
1
On a ‘constant currency’ basis
Reduction due to non-
core asset sales with the
proceeds to be recycled
into new developments
Vital Healthcare Property Trust, Managed by Northwest Healthcare Properties Management LtdThird Quarter Update FY24 | 4

YEAR-TO-DATE UPDATE
Year-to-date Financial Performance (unaudited)
For the period
9 months to
31 Mar 24
$000s
9 months to
31 Mar 23
$000s
Variance
$000s
Change
%
Gross property income 125,873 128,533
Property expenses (17,379) (20,217)
Net property income 108,494 108,316 178 0.2%
Corporate expenses (3,717) (3,044)
Management fees (base & incentive) (18,567) (25,140)
Net finance expenses (30,111) (26,987)
Operating profit 56,099 53,145 2,954 5.6%

Non-operating gains/(losses)
Fair value gain/(loss) on investment property (140,818) (51,401)
Net gain/(loss) on disposal of investment property (2,897) (17)
Fair value gain/(loss) on derivatives (17,224) (10,182)
Realised & unrealised gain/(loss) on foreign exchange (239) 1,160
Profit/(Loss) before income tax (105,079) (7,295) (97,784)1340.4%
Current and deferred taxation 5,726 (15,386)
Profit/(Loss) for the period attributable to Unit Holders of the Trust (99,353) (22,681) (76,672)338.0%
Funds from Operations (FFO) 55,364 55,744 -379 -0.7%
Adjusted Funds from Operations (AFFO) 55,035 55,414 -379 -0.7%
AFFO per unit 8.24 8.46 (0.21)-2.6%
Weighted average units on issue (000s) 667,879 655,14512 , 7 3 41.9%
Average NZD/AUD exchange rate 0.9272 0.9208
Vital’s total assets increased over the
quarter as Vital continues to invest in
new, market-leading developments
across Australia and New Zealand.
Important note: The information in this investor update is general information only and does not contain all information necessary to make an investment decision. The financial
information in this investor update has not been audited. No representation or warranty, express or implied, is made to the accuracy, adequacy or reliability of information in this
update, including the financial information. This investor update contains forward looking statements which are inherently susceptible to uncertainty. Vital’s actual results may vary
materially from those expressed or implied in this investor update. The Manager is under no obligation to provide any update to information included in this update, including as a result
of the audit process.
Vital Healthcare Property Trust, Managed by Northwest Healthcare Properties Management LtdThird Quarter Update FY24 | 5

DevelopmentDescription of Works
Development
cost
1
Spend
to date
Forecast
completion
date
Australia (A$m)(A$m)
RDX (QLD)9 level research and development centre of excellence
and 3 level 181 bay basement car parking
13 3 . 647.6Mid-25
Playford Health Hub
Stage 2 (SA)
Specialist Medical Centre - Radiology,
Oncology, Radiotherapy and Consulting
43.441. 9Mid-24
Maitland Private (NSW)24 Mental Health beds, 12 day oncology
chairs, 4 surgical beds and parking
16.09.7Mid-24
Coomera Health Campus
Stage 1 (QLD)
Early Works Phase 26.03.4Mid- 24
Total Australian Developments A$199.0102.6

New Zealand

(NZ$m)

(NZ$m)
Wakefield Stage 2
(WGN)
Second stage of hospital rebuild delivering eight
operating theatres, 42 beds, new Day Surgery
Unit and additional expansion capacity
91. 591. 3Staged,
Early-25
Ormiston Stage 1 (AKL)Stage 1 - three level expansion of existing hospital38.133.4Mid-24
Grace Stage 1 (BOP)Fitout of two theatres, new endoscopy room, additional
10 beds and redevelopment of existing clinical areas
36.711 . 9Staged,
Mid-26
Endoscopy Auckland (AKL)Four dedicated endoscopy procedure rooms,
15 car parks, reception/waiting areas
32.29.9Mid-25
Boulcott (WGN)Two new theatres, PACU expansion and
conversion of double rooms to singles
24.810.8Mid-25
Total New Zealand Developments223.315 7. 3
Total Developments in $NZ
2
440.4269.0

Fund-through Developments
Macarthur Health Precinct
Stage 1 (NSW)
Four storey comprehensive cancer centre with
two bunkers, 10 medical oncology chairs,
wellness centre and 61 on grade car parks
57.457.4Completed,
Feb-24
Total Australian Fund-through Developments A$5 7. 45 7. 4
Total Fund-through Developments in NZ$
3
62.662.6
Total Committed developments including fund-through developments in NZ$
2
503.0331.6
1
Excluding Land
2
A$ converted at 31 March 2024 spot rate 0.9164
3
Fund-through developments including land & operator costs
~NZ$171.4m remaining to be spent on Committed Developments
vhpt.co.nz
Vital Healthcare Property Trust, Managed by Northwest Healthcare Properties Management LtdThird Quarter Update FY24 | 6