Vital announces HY22 results

VITAL HEALTHCARE PROPERTY TRUST vhpt.co.nz
Managed by NorthWest Healthcare
Properties Management Limited
Page 1 of 5

MARKET RELEASE
24 February 2022
NorthWest Healthcare Properties Management Limited (NorthWest), the Manager of Vital
Healthcare Property Trust (Vital), today released Vital’s results for the 6-months ended 31
December 2021 (HY22).
AFFO and distribution guidance upgrade
Following a successful HY22, the Board of NorthWest is pleased to be able to upgrade
FY22 AFFO guidance to at least 11.90 cents per unit (cpu), 3.2% above FY21, and
distribution guidance to 9.75 cpu (annualised), 8.5% above FY21
1
. AFFO guidance was
previously 11.80 cpu and distribution guidance was previously 9.50 cpu.
Other key achievements over HY22 include:
 6.9% increase in net property income from $54.2 million for the 6 months ended 31
December 2020 (HY21) to $57.9 million for HY22.
 13.9% increase in adjusted funds from operations (AFFO) from $28.1 million in HY21
to $32.0 million in HY22 equating to a 0.7% increase in AFFO per unit from 5.87 cpu
to 5.91cpu.
 8.6% increase in distributions paid / payable from HY21 to HY22 (4.375 cpu to 4.75
cpu).
 8.0% increase in net tangible assets (NTA)per unit from $2.89 to $3.12.
 Equity raising and other initiatives helped reduce balance sheet gearing to 33.2%,
extend average debt duration to 4.4 years and increase headroom to $291 million
2
.
 High-quality, pure healthcare portfolio maintained including 17.8 year weighted
average lease expiry (WALE).
 $314 million of acquisitions
3
.
 Long-term development pipeline expanded to over $1 billion
4
.


1
Actual FY21 payments totaling 8.875cpu, payments of 4.75cpu for HY22 and 4.875cpu guidance for 2H22.
2
Both pro-forma as at 31 December 2021 including an extension agreed after 31 December 2021.
3
Includes acquisitions committed post 31 December 2021.
4
Comprising ~$300m of committed developments, of which $161.4m remains to be spent, and ~$1bn of
potential developments being actively pursued. Timing and actual spend of this potential development pipeline will
be confirmed if, and when, potential developments convert to committed developments. Developments are
expected to be staged over a lengthy period (10+ years).

VITAL HEALTHCARE PROPERTY TRUST vhpt.co.nz
Managed by NorthWest Healthcare
Properties Management Limited
Page 2 of 5

Net property income
Net property income increased by 6.9% over HY22 from $54.2 million to $57.9 million
compared to the prior corresponding period.
Over 99.0% of rent due for HY22 was collected. Vital’s high level of rental collection and
high occupancy rate demonstrate the resilience of healthcare operators and healthcare
assets.
AFFO
AFFO increased by 13.9% from the prior corresponding period ($28.1 million to $32.0
million). This equates to a 0.7% increase in cents per unit (5.87cpu to 5.91cpu). The
average across longer periods, including the last one and two years, remains above our
target of 2-3% per unit per annum. Following the upgrade noted above, FY22 AFFO
guidance is now at least 3.2% above the AFFO recorded for FY21.
Distributions
Distributions paid / payable for HY22 were 8.6% above HY21 at 4.75 cpu (2.375 cpu per
quarter) on a conservative pay-out ratio of 80%. Due to the higher AFFO guidance noted
above, the Board has increased distribution guidance for the next two quarters to 2.4375
cpu per quarter or 9.75 cpu annualised. Revised guidance equates to an 8.5% increase in
distributions per unit from what was paid for FY21
5
.
Net tangible assets
NTA per unit rose 8.0% from $2.89 to $3.12 primarily attributable to property revaluation
gains.
Capital management
A placement and follow-on UPP were undertaken in October and November 2021 raising
$142.8 million primarily from existing unitholders. This reduced balance sheet gearing to
~33% and supported the acquisition of Tennyson Centre in Adelaide (refer below for more
details). Equity was raised at $2.90 per unit, approximately equal to NTA per unit at 30 June
2021 and a 3.7% discount to VHP’s closing price on the day before launch of the
placement.
At 31 December 2021, balance sheet gearing was 33.2%, all-in weighted cost of debt was
3.14% (based on drawn debt only and includes the cost of hedging) and Vital had debt
headroom in its existing facilities of A$141 million. Post 31 December 2021, terms were
agreed to extend Vital’s average debt duration from 3.3 years to 4.4 years (pro-forma at
31 December 2021) and expand headroom to $291 million.



5
Based on actual payments made for FY21 of 8.875cpu and anticipated actual payments for FY22 of 4.75cpu for
HY22 and 4.875cpu for 2H22.

VITAL HEALTHCARE PROPERTY TRUST vhpt.co.nz
Managed by NorthWest Healthcare
Properties Management Limited
Page 3 of 5

Portfolio
Vital owns a high-quality ~$3 billion portfolio of 43 healthcare income-producing
investment properties, diversified across all mainland Australian States and New Zealand.
The portfolio comprises 26 private hospitals (representing 82% of the portfolio value), nine
ambulatory care facilities (13%) and eight aged care facilities (5%).
Over 3,300 square metres of new or extended leasing was undertaken across Vital ‘s
portfolio during HY22. This helped maintain occupancy above 99.0% and Vital's long WALE
of 17.8 years as well as contributing to the earnings growth noted above. Vital’s WALE
remains the longest of any NZX or ASX listed REIT providing a high level of income security
for unitholders.
Acquisitions and divestments
Vital acquired two income producing properties during HY22:
1. Tennyson Centre, Adelaide for ~A$92.75 million. This Cancer Centre of Excellence is
located between Adelaide’s Airport and CBD and ~500 metres from Ashford Hospital.
Tenants include Nexus, Icon, Sonic, Genesis and Dr Jones & Partners. The acquisition
includes land suitable for future development. Since acquisition, several key leases
have been renewed.
2. Hutt Valley Health Hub, Wellington for $46.5 million. This is a purpose-built, seismically
resilient ambulatory care facility adjoining Boulcott Hospital (an existing Vital asset) and
Hutt Hospital. Key tenants include Capital & Coast DHB, Ropata Health and Boulcott
Pharmacy. Settlement occurred post 31 December 2021 with additional development
land expected to be settled later in 2022. The acquisitions will enable Vital to enhance
this existing medical precinct including a proposed upgrade and expansion of
Boulcott Hospital.
Post 31 December 2021, Vital announced two additional acquisitions in Sydney to support
future developments being:
1. Development land to expand The Hills Clinic. This is an existing Vital asset leased to
Aurora Healthcare with 25 years remaining on the lease. Estimated costs for the
acquisition and development are ~A$50m. Aurora Healthcare has pre-committed
to the expansion space providing a ~5% yield on cost for Vital.
2. A multi-stage development site in South West Sydney. Initial payments comprise:
a. A$52m for acquisition, tenant incentive and development costs of a cancer
centre of excellence pre-leased to GenesisCare for 15 years from
completion. This "stage 1" provides an initial yield of ~4% and rent reviews of
3% per annum; and
b. A$24.6m for development rights for stages 2 and 3 providing capacity for
Vital to develop up to 40,000 square metres of additional gross floor area.
Refer to separate NZX announcements released earlier this month for more details on
these acquisitions.

VITAL HEALTHCARE PROPERTY TRUST vhpt.co.nz
Managed by NorthWest Healthcare
Properties Management Limited
Page 4 of 5

Vital sold Gold Coast Surgical Centre for ~A$13 million (before costs) during HY22, ~5%
above book value. The sale removed a persistent vacancy within the portfolio. Sales
proceeds were initially used to reduce debt and will ultimately be used to support Vital’s
development pipeline.
Developments
Developments are a key component of Vital’s strategy to continue to deliver earnings
growth and enhance the high quality of the portfolio. As at 31 December 2021, Vital had
a committed development pipeline of $303.8 million across ten projects of which $161.4m
million was left to complete.
During HY22, ~$50m was spent on capital works comprising ~$42 million on developments,
~$6m on other value-add capital works and ~$2m on maintenance and tenant incentive
capital works.
Significant development milestones during HY22 were as follows:
1. Terms agreed for $74 million of expansions and upgrades to NZ Hospitals. Vital has
agreed terms with Evolution Healthcare and Southern Cross to upgrade and expand
five facilities in New Zealand. Nearly half of this money will be used to expand Grace
Hospital in Tauranga which Vital acquired in late 2020.
2. Epworth Eastern development partially completed. This A$96.5 million expansion of the
existing hospital is nearing completion with the clinical floors (1- 10) handed over to the
hospital in November 2021 and the balance expected to be handed over in early
2022. Rent commenced from 1 February 2022.
3. Completion of stage 1 of Playford Health Hub. This ~A$24 million development
comprises a 450 bay multi-deck carpark majority leased to SA Health (South Australia’s
public health authority who operate the adjoining Lyell McEwin Hospital) and 1,700
sqm of ground floor retail. The development is 70%
6
leased providing a yield on cost of
6.8%
7
and also provides ~200 car bays for stage 2 of this development.
4. Commencement of design for stage 2 of Playford Health Hub. This A$49 million
specialist medical centre is ~60%
8
pre-leased. Construction is targeted to commence
mid-2022 and to complete in late 2023.
5. Memorandum of Understanding signed with Calvary Health Care for stage 3 of
Playford Health Hub. Construction of this ~A$93 million private hospital is expected to
commence in 2024.
6. Commencement of construction for stage 2 of the redevelopment of Wakefield
Hospital. Stage 2 is expected to cost ~$91.5 million and complete in late-2024. Stage 1
completed in mid-2021 for $49.9 million.


6
By income.
7
Stabilised, year 3 yield.
8
Includes signed heads of agreement

VITAL HEALTHCARE PROPERTY TRUST vhpt.co.nz
Managed by NorthWest Healthcare
Properties Management Limited
Page 5 of 5

In addition, Vital’s potential development opportunities increased to ~$1 billion. These are
opportunities which are being actively considered but are not yet committed or
approved. The timing and actual spend of this potential development pipeline will be
confirmed if, and when, potential developments convert to committed developments.
These developments are likely to be staged over an extended period (10+ years).
Outlook
Despite the on-going impacts of COVID-19, Vital’s tenants have largely continued to
provide a full gamut of acute and sub-acute services and have adapted to more varied
cashflows. Increased pressure on public sector wait times is expected to result in an
increased reliance on the private sector to unblock the back-logs.
Vital continues to provide a stable earnings stream sourced from a defensive sector with
86% of its leases linked to CPI growth in some way.
Vital remains well-positioned to continue to grow earnings including our revised AFFO
guidance, achieve our revised distribution guidance and continue to enhance Vital’s
high-quality portfolio.
– 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 (~82%
*
of portfolio
value), ambulatory care facilities (~13%
*
of portfolio value) and aged care (~5%
*
of
portfolio value).
Vital is the leading specialist listed landlord of healthcare property in Australasia and
currently has a portfolio valued at ~$3
*
billion.
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 as at 31 December 2021

---

Interim
Report
FOR THE SIX MONTHS
ENDED 31 DECEMBER 2021

Investing in healthcare
infrastructure in New
Zealand and Australia
~$3bn9.75 cpu17.8 years
VALUE OF INVESTMENT
PORTFOLIO
UPGRADED, ANNUALISED
DISTRIBUTION GUIDANCE
WEIGHTED AVERAGE LEASE
TERM (WALE)
CONTENTS
Overview of Vital 4
Vital’s 2-year progression
despite COVID-19 6
Manager’s report 7
Post 31 December 2021
acquisitions in Sydney 10
Our board and executive team 12
Sustainability targets FY22 14
About Vital and NorthWest 15
Financial statements 16
Independent auditor’s report 41
Directory 43
INTERIM REPORT
|
32
|
VITAL HEALTHCARE PROPERTY TRUST

20%
17 %
20%
13 %10 %
4%
4%
3%
3%
2%
4%
Overview of Vital
as at 31 December 2021
Vital is the only specialist healthcare landlord on the NZX.
‡
Income Producing Property (excludes strategic assets)
* Average building age = the later of the date of
construction or last significant capital works.
†
Figures may not sum due to rounding.
NZ $113m
17.8
years
WEIGHTED AVERAGE
LEASE EXPIRY (WALE)
10.7 years
AVERAGE
BUILDING AGE*
99.0%
PORTFOLIO
OCCUPANCY
4.67%
Tenant Diversification
(% of Rent)
Healthe Care Surgical 17%
Norfolk Southern 4%
Cross Limited
Evolution Group 10%
Epworth 13%
Hall & Prior 4%
Bolton Clarke 3%
Sportsmed 4%
Mercy Ascot 3%
Ramsay 2%
Other 20%
Sub-sector Diversity
(% of Value)
Acute Hospitals 56%
Ambulatory Care 13%
Specialty Hospitals
(mental health & rehabilitation) 26%
Aged Care 5%
56%
26%
13 %
5%
H
O
S
P
I
T
A
L

8
2
%
O
T
H
E
R

1
8
%
~$2.2bn~$0.8bn
31
‡
PROPERTIES (AUS)12
‡
PROPERTIES (NZ)
Vital Portfolio by Geography
AUSTRALIA
—
NEW ZEALAND
—
12
WESTERN
AUSTRALIA
NORTHERN
TERRITORY
SOUTH
AUSTRALIA
NEW SOUTH
WALES
TASMANIA
VICTORIA
QUEENSLAND
4
3
6
6
12
~$3bn
43
‡†
PROPERTIES (AUS & NZ)
NET ANNUAL PROPERTY
INCOME (CY21)
WEIGHTED AVERAGE CAP RATE
(IPP)
‡
(AUS 4.63%, NZ 4.78%)
Aurora Healthcare 20%
INTERIM REPORT
|
54
|
VITAL HEALTHCARE PROPERTY TRUST

Concentration
risk reduced
Diversity of assets reduces
risk and enhances earnings
LARGEST SINGLE TENANT EXPOSURESECTOR SPLIT
46%20%
2 0192021
Hospital:86%
Ambulatory care: 11%
Aged care 3%
2 019
Hospital: 82%
Ambulatory care: 13%
Aged care 5%
2021
Reduction demonstrates: (1)
quality of assets and tenants;
and (2) value added by leasing
and development undertaken
WEIGHTED AVERAGE CAP RATE
5.52%4.67%
2 0192021
52.6%
growth
Maintenance of
market leading WALE
Younger buildings reduce
maintenance capex
requirements
TOTAL PROPERTY VALUEWALEAVERAGE BUILDING AGE
~$2bn
(AUS:75%, NZ:25%)
2 019
~$3bn
(AUS:73%, NZ:27%)
2021
17.9 years17.8 years
2 0192021
14.0 years10. 7 years
2 0192021
14.8%
increase
Enhance earnings
and valuation growth
and support portfolio
development
NET PROPERTY INCOME (ANNUAL)DEVELOPMENT PIPELINE
~$200m>$1bn
1
2 0192021
$98.8m$113.4m
2 0192021
Portfolio enhancements
support target of
growing AFFO and
distributions by 2–3%
per unit per annum.
Two years ended 31 December 2021
NTA PER UNIT
$2.36
2 019
$ 3 .12
2021
AFFO PER UNIT (CPU)DISTRIBUTIONS PER UNIT (CPU)
10.45
3

2 019
11 . 9 0
4

2021
8 . 75
3
9. 75
4
2 0192021
32.2%
growth
13.9%
growth
11.4%
growth
Balance sheet strengthened
through $351m of new
equity and extending
debt whilst supporting
portfolio growth to grow
AFFO and distributions.
AVERAGE DEBT MATURITY
1.7 years4.4 years
2
2 0192021
BALANCE SHEET GEARING
Conservative gearing
maintained
Significantly expanded
3 5 .1 %33.2%
2 0192021
Vital’s 2-year progression
despite COVID-19
Manager’s report
Vital recorded growth in earnings, distributions to unitholders
and assets during HY22 as NorthWest’s management continues
to demonstrably benefit unitholders.
91.3%
INCREASE IN PROFIT FROM HY21
8.0%
INCREASE IN NTA PER UNIT
$314m
ACQUISITIONS COMPLETED/AGREED
31 Dec
2021
31 Dec
2020
%
Change
NTA per unit ($)3 .122.5522.4%
Investment portfolio value ($m)2,941.52,248.430.8%
Investment properties (No.)43
1
42N/A
Avg. property value ($m)68.453.52 7. 9 %
Avg. building age (years)10 . 711 . 9N/A
WALE (years)17. 819N/A
Occupancy (%)99.09 9 .1N/A
AFFO – 6 months ($m)32.028.113 . 9 %
AFFO – 6 months (cpu)5 . 915.870.7%
1
Includes two property consolidations which occurred at 30 June 2020, (1) Sportsmed Consulting property
into Sportsmed Hospital and (2) Ascot Central Carparks (right of use) consolidated into one property.
1
Development timing and therefore spend expected to be over a staged and lengthy period (at least 10 years)
2
Pro-forma as at 31 December 2021 including terms agreed post 31 December 2021
3
FY20 actual
4
FY22 upgraded guidance
Tēnā koutou,
NorthWest Healthcare Properties Management
Limited, the Manager of Vital Healthcare Property
Trust (Vital), is pleased to report Vital’s results for the
six months ended 31 December 2021 (the Half Year).
Other key achievements over
the Half Year include:
• 8.0% increase in net tangible assets (NTA)
per unit from $2.89 to $3.12.
• 91.3% increase in profit (before tax) attributable to
unitholders from the prior corresponding period; $103.2
million to $197.4 million.
• 13.9% increase in adjusted funds from operations
(AFFO) from $28.1 million to $32.0 million
from the prior corresponding period.
• 0.7% increase in AFFO per unit from the prior corresponding
period; 5.87 cents per unit (cpu) to 5.91 cpu.
• >99% rent collection despite COVID-19.
• Development pipeline expanded to over $1 billion
comprising $303.8 million of committed developments (of
which $161.4 million remains to be spent) and ~$1 billion of
potential developments being actively pursued. The timing
and actual spend of this potential development pipeline will
be confirmed if, and when, potential developments convert
to committed developments. These developments are likely
to be staged over multiple years.
• $314 million of acquisitions (includes acquisitions
committed post 31 December 2021).
• Over 3,300 square metres of leasing to maintain a
high occupancy of 99.0% and long WALE of 17.8
years as well as improve income security.
• $155 million of new equity issued via placement, unit
purchase plan and distribution reinvestment plan
helping to reduce balance sheet gearing to 33.2%.
• Extension of debt facility duration (both pre and post
balance date).
Vital has continued to deliver for unitholders
through increased earnings with FY22 AFFO
now expected to be at least 11.9cpu or 3.2%
above FY21, following revised earnings
guidance issued on the date of this report,
allowing for an increase in distribution
guidance to 9.75cpu (annualised).
INTERIM REPORT
|
76
|
VITAL HEALTHCARE PROPERTY TRUST

AFFO
AFFO (a proxy for cash profit for unitholders) increased by
13.9% from the prior corresponding period ($28.1 million
to $32.0 million). This equates to a 0.7% increase in cents
per unit (5.87cpu to 5.91cpu). Our average across longer
periods, including the last one and two years, remains
above our target of 2–3% growth per unit per annum.
Our revised FY22 AFFO guidance is at least
3.2% above AFFO recorded for FY21.
Distributions
Distributions paid / payable for the Half Year were 8.6%
above the prior corresponding period at 4.75 cpu (2.375
cpu per quarter) on a conservative pay-out ratio of 80%.
Due to the higher AFFO guidance noted above, on
the date of this report, the Board increased distribution
guidance for the next two quarters to 2.438 cpu per
quarter or 9.75 cpu annualised. This equates to an 8.5%
increase in distributions per unit over FY22 from FY21.
Net tangible assets
Net tangible assets rose 8% per unit from $2.89 to $3.12
primarily attributable to property revaluation gains.
Capital management
A placement and follow-on UPP were undertaken in
October and November 2021 raising $142.8 million
primarily from existing unitholders. This reduced balance
sheet gearing to 33.2% and supported the acquisition of
Tennyson Centre in Adelaide (refer below for more details).
Equity was raised at $2.90 per unit, approximately equal to
NTA per unit at 30 June 2021 and a 3.7% discount to VHP’s
closing price on the day before launch of the placement.
At 31 December 2021, balance sheet gearing was
33.2%, all-in weighted cost of debt was 3.14% (based
on drawn debt only and includes the cost of hedging)
and Vital had debt headroom in its existing facilities of
A$141 million. Post 31 December 2021, terms were
agreed to extend Vital’s average debt duration from 3.3
years to 4.4 years (pro-forma at 31 December 2021).
“Distribution guidance has been
upgraded from 9.5cpu to 9.75cpu
(annualised). This is expected to result
in an 8.5% increase in distributions
for FY22 from FY21.”
Portfolio overview
Vital owns a high-quality ~$3 billion portfolio of 43
healthcare investment properties, diversified across all
mainland Australian States and New Zealand. The
portfolio comprises 26 private hospitals (representing
82% of the portfolio value), nine ambulatory care
facilities (13%) and eight aged care facilities (5%).
At 17.8 years, Vital’s WALE remains the longest
of any NZX or ASX listed REIT providing a high
level of income security for unitholders.
Leasing
Over 3,300 square metres of new or extended
leasing was undertaken across Vital ‘s portfolio
during the Half Year. Leasing helped to maintain
occupancy above 99%, maintain the long WALE and
contribute to the earnings growth noted above.
Net property income
Net property income increased by 6.9% over
the Half Year from $54.2 million to $57.9 million
compared to the prior corresponding period.
“Over the 10 years ended 31 December
2021, Vital has provided a total return
of 16.3% per annum, 4.0% per annum
above the S&P/NZX All Real Estate
Index and 1.5% per annum above the
broader S&P/NZX50 index.”
2021 with additional development land expected to be
settled later in 2022. The acquisitions will enable Vital
to enhance this existing medical precinct including a
proposed upgrade and expansion of Boulcott Hospital.
Vital sold Gold Coast Surgical Centre for ~A$13
million (before costs) during the Half Year, ~5%
above book value. The sale removed a persistent
vacancy within the portfolio. The sales proceeds will
be used to support Vital’s development pipeline.
Developments
Developments are a key component of Vital’s
strategy to continue to deliver earnings growth
and improve the quality of the portfolio.
As at 31 December 2021, Vital had a committed
development pipeline of $303.8 million across ten
projects of which $161.4 million was left to complete.
During the Half Year $42 million was spent on developments,
~$6 million spent on value-add capital works and
~$2 million on maintenance and tenant incentives.
Significant development milestones during
the Half Year were as follows:
1. Terms agreed for $74 million of expansions and
upgrades to NZ Hospitals. Vital has agreed terms with
Evolution Healthcare and Southern Cross to upgrade
and expand five facilities in New Zealand. Nearly half
of this money will be used to expand Grace Hospital
in Tauranga which Vital acquired in late 2020.
2. Epworth Eastern development partially completed.
This A$96.5 million expansion of the existing hospital
is nearing completion with clinical floors (1–10)
handed over to the hospital in November 2021 and
the balance expected to be handed over in early
2022. Rent commenced from 1 February 2022.
3. Completion of Stage 1 of Playford Health Hub.
This ~A$24 million development comprises a 450
bay multi-deck carpark majority leased to SA Health
(South Australia’s public health authority who operate
the adjoining Lyell McEwin Hospital) and 1,700 sqm of
ground floor retail. The development is 70% leased (by
income) providing a yield on cost of 6.8%
1
and also
provides ~200 car bays for stage 2 of this development.
4. Commencement of design for Stage 2 of Playford
Health Hub. This A$49 million specialist medical
centre is 55%
2
pre-leased. Construction is targeted to
commence mid-2022 and to complete in late 2023.
5. Memorandum of Understanding signed with
Calvary Health Care for Stage 3 of Playford
Health Hub. Construction of this ~A$93 million
private hospital is expected to commence in 2024.
6. Commencement of construction for Stage 2 of
Wakefield Hospital redevelopment. Stage 2 is expected
to cost ~$91.5 million and complete in late-2024.
Stage 1 was completed in mid-2021 for $49.9 million.
Post 31 December 2021, Vital announced two
acquisitions to support future developments.
Refer to pages10–11 for more details.
In addition, Vital’s potential development
opportunities increased to ~$1 billion
3
. These are
opportunities which are being actively considered
but are not yet committed or approved.
Graham Stuart
Independent Chair
24 February 2022
NorthWest Healthcare Properties Management Limited,
the Manager of Vital Healthcare Property Trust
COVID-19
Despite the on-going impacts of COVID-19, Vital’s
tenants have largely continued to provide a full gamut
of acute and sub-acute services and have adapted to
more varied cashflows. Increased pressure on public
sector wait times is expected to result in an increased
reliance on the private sector to unblock the back-logs.
Vital continues to provide a stable earnings stream
sourced from a defensive sector with 86% of its
leases linked to CPI growth in some way.
Outlook
Vital remains well-positioned to continue to grow
earnings including our revised AFFO guidance,
achieve our revised distribution guidance and
continue to improve Vital’s high-quality portfolio.
On behalf of your Board and Management,
thank you for your on-going support.
Nā māua noa, nā
“Vital recorded growth in earnings,
distributions to unitholders and assets during
HY22 as NorthWest’s management continues
to demonstrably benefit unitholders.”
Aaron Hockly
Fund Manager
Acquisitions and divestments
Vital acquired two income producing
properties during the Half Year:
1. Tennyson Centre, Adelaide for ~A$92.75 million.
This Cancer Centre of Excellence is located between
Adelaide’s Airport and CBD and 500 metres from
Ashford Hospital. Tenants include Nexus, Icon, Sonic,
Genesis and Dr Jones & Partners. The acquisition
includes land suitable for future development. Since
acquisition, several key leases have been renewed.
2. Hutt Valley Health Hub, Wellington for $46.5 million.
This is a purpose-built, seismically resilient ambulatory
care facility adjoining Boulcott Hospital (an existing
Vital asset) and Hutt Hospital. Key tenants include
Capital & Coast DHB, Ropata Health and Boulcott
Pharmacy. Settlement occurred post 31 December
1
Stabilised year 3 yield
2
Includes signed heads of agreement
3
Development timing and therefore spend expected to be over a staged and lengthy period (at least 10 years)
INTERIM REPORT
|
98
|
VITAL HEALTHCARE PROPERTY TRUST

Post 31 December 2021
acquisitions in Sydney
I N

NEGOTIATION

STAGE 2
FUTURE

POTENTIAL

STAGE 3
COMMITTED

STAGE 1
Discussions underway with one of Australia’s largest hospital operators to develop a day surgery and
mental health facility on ~10,000 sqm of land
Acquisition price for full ~23,000 sqm metres of leasehold land across stages 2 & 3 is ~A$24.6m
~13,000 sqm of land in key health precinct; development options to be considered over time
Options for this development land include new research & education uses, medical consulting
and aged care
Terms agreed with GenesisCare, one of the largest independent providers of cancer care globally,
to fund-through the development of a 4 storey cancer centre of excellence with 2,713 sqm of NLA
Total acquisition price and development costs for Stage 1

A$52m

Construction estimated to take 16 months from early 2022
15-year initial lease term to GenesisCare with 3% annual fixed increases
Additional development capacity expected to be available post-construction
completion given low site coverage
Expansion land for mental health facility
• Acquisition of 4,340 sqm of land adjacent to
existing Vital asset, The Hills Clinic
• The Hills Clinic is a specialist mental health hospital 100%
leased to Aurora Healthcare Australia located in north-
west Sydney, approximately 28 kms from the CBD
• The acquired land is subject to a leasing pre-commitment
from Aurora enabling expansion of the existing hospital
with additional beds, group rooms and other facilities
• Aurora is Australia’s largest specialty private mental
health provider with 1,000 beds across 16 facilities
• Total development costs, inclusive of the land, are expected to be
~A$50 million and will be rentalised at an initial yield of ~5%
• The expansion lease is expected to have the same term as the
existing lease which has 25 years remaining with rent growing
annually in line with CPI and market reviews every 10 years
25 years
remaining on lease
~5%
return on cost
~A$50m
development costs include land
acquisition and construction
Multi-stage development
land in Western Sydney
• Acquisition of ~28,000 sqm 85-year*
ground lease in Campbelltown, Sydney
• Expected to comprise three separate development stages
• Total consideration of A$76.6 million (including
stage 1 development fund through costs)
One of the largest independent
providers of cancer care
globally with 350 clinics across
the US, UK, Australia and
Spain providing treatment to
~440,000 patients per annum
Up to 40,000 sqm
additional GFA
Part of the broader health precinct that
includes Campbelltown Hospital and
Western Sydney University Medical School
* Includes options to renew
Core tenant:
The Hills
Clinic
~4,340 sqm
MEMORIAL AVENUE
MCCAUSLAND PLACE
INTERIM REPORT
|
1110
|
VITAL HEALTHCARE PROPERTY TRUST

Our Board
The board comprises five highly qualified directors; three of whom are independent. Both the
Chair of the Board and the Chair of the Audit Committee are independent directors.
Graham Stuart
Independent Chair and Member of
the Audit Committee (64, 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.
Paul Dalla Lana
Director and Member
of the Audit Committee (56, 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.
Andrew Evans
Independent Director and Member 
of the Audit Committee (58, Auckland)
Andrew Evans has over 30 years’
experience in commercial real estate and
asset management, previously holding
executive positions with listed and unlisted
real estate investment businesses. Andrew
is Chairperson of Accessible Properties
NZ Ltd and Infinity Investment Group
Holdings Ltd, is a director on Holmes
Group Limited, Holmes GP Fire Limited and
Trust Investments Management Limited.
Aaron Hockly
Senior Vice President – New Zealand
and Vital Fund Manager (43, 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). Aaron currently serves
on the board of Mercy Healthcare (Auckland).
Vanessa Flax
Regional General Counsel ANZ and
Company Secretary (51, Melbourne)
Vanessa Flax joined the team on 1
May 2019, prior to which she was a
special counsel at Ashurst Australia.
Vanessa has 25 years of deep and
broad ranging property law experience
in Australia, 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.
Chris Adams
Executive Director – Projects
(52, 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.
Michael Groth
Chief Financial Officer – ANZ
Region (48, 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.
Alex Belcastro
Senior Vice President –
Medical Precincts (33, 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.
Richard Roos
Executive Director – Portfolio (57, 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.
Dr Michael Stanford AM
Independent Director and Chair 
of the Audit Committee (62, 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 Australian Clinical Labs (ASX:ACL),
Australia’s third largest private pathology
provider; Nucleus Networks, one of the world’s
largest Phase one clinical research organisations,
and Diabetes Australia, a significant Not For
Profit of which Michael Is President and Board
Chair. Other Board roles in the last three years
have included Healthscope (ASX:HSO),
Australia’s second largest hospital operator; and
Virtus Health (ASX:VRT), one of the world’s top
5 providers of Assisted Reproductive Services.
Craig Mitchell
Director and Member of the
Audit Committee (54, 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 50 real estate professionals.
Our Executive Team
Vital’s executive team comprises real estate professionals with extensive
experience in New Zealand, Australia and beyond.
INTERIM REPORT
|
1312
|
VITAL HEALTHCARE PROPERTY TRUST

About Vital and NorthWestFY22 sustainability targets
Vital benefits from being managed by a global healthcare property owner and manger.
People
Continue to improve diversity on
the Board and in Management*
Women in management 48%.
Board renewal process underway
Focus on mentoring and
career progression
Peer mentoring and career
development planning commenced
Encourage greater
community involvement
Donations made to community
organisations including the Epworth
Foundation in Australia and the
Keystone Trust in New Zealand.
Sponsorship of five key international
days including Human Rights Day
and International Women’s Day
Continue existing
professional development
through e-learning and mental
health webcasts and launch of
LinkedIn Learning 2022, in addition
to targeted and general employee
personal development, diversity
equity and inclusion training was
provided to all employees
* As part of wider renewal/recruitment processes.
Places
Participate in third-party assessments
through GRESB and CDP
Commitment to participate for CY22
Improve our CDP score
Vital was one of 5 NZ participants
to improve their scores in 2021.
We are seeking to further improve
this in 2022 capturing initiatives
implemented over HY22
Deploy sustainability initiatives with
key stakeholders including tenants

Continued to foster the Strategic
ESG Alliance with Epworth
Healthcare facilitating active
collaboration, information-
sharing, and improved sustainable
outcomes at both the property
and operating levels.

Vital is a member of the Green
Building Council of Australia
and has pursued registration of four
active and pipeline development
projects including Stage 2 of
Playford Health Hub in Adelaide.
Continue to progress investigation
of additional solar installations
Vital have undertaken desktop
sustainability audits of all Vital assets
to better understand environmental
impacts and opportunities.
Sustainable tenant fit-out guide
and tenant sustainability guide
launched and is currently being
piloted at nominated assets.
About Vital
Vital Healthcare Property Trust (Vital, the Trust) is an
NZX-listed investment fund (NZX:VHP) that invests in
high-quality healthcare properties in New Zealand and
Australia. The Trust is externally managed by NorthWest
Healthcare Properties Management Limited.
Vital's portfolio of 43 properties is valued at
~$3 billion with 73% (by value) located in Australia
and the balance in New Zealand. The portfolio
has over 140 tenants and over 2,800 beds.
Vital’s tenants include hospital operators and
healthcare providers who deliver a wide range of
services across the full spectrum of health services.
Further information is available at vhpt.co.nz
About the Manager
NorthWest Healthcare Properties Management Limited
(NWHPM, the Manager) is an external manager that
provides management services to Vital and its unitholders.
“Vital is the only NZX listed specialist
landlord of healthcare property and the
fourth largest NZX listed property vehicle”
The Manager’s primary responsibilities include the day-to-
day administration of Vital, portfolio management, sourcing
new opportunities and conducting due diligence on potential
acquisitions. The Manager is also responsible for providing
specialist property management, project management,
development management and leasing services to the Trust.
The Manager’s Board of five comprises three
independent directors and two NorthWest
appointees. Refer to page 12 for more details.
Vital’s leadership team is led by Aaron Hockly (Fund
Manager), and draws on the skills and experience of
over 50 real estate professionals across New Zealand
and Australia with offices in Auckland, Melbourne
and Sydney. Refer to page 13 for more details.
NorthWest REIT
The Manager is a subsidiary of Toronto Stock
Exchange-listed NorthWest Healthcare Properties REIT
(NorthWest REIT). NorthWest REIT operates across
seven countries in four continents and was founded
by its current CEO, Paul Dalla Lana, in 2004. Among
other roles, Paul is a director of Vital’s Manager.
NorthWest REIT has ~NZ$11 billion of assets under
management globally and over 250 real estate
professionals. In Australia and New Zealand,
NorthWest is led by regional CEO, Craig Mitchell.
Our Structure – A Unit Trust
Vital Unitholders
New Zealand’s largest specialist and
only listed owner of healthcare real estate
~NZ$11bn7
assets under
management
number of countries
NorthWest
operates in
Vital’s Manager and largest unitholder
Management of Vital in accordance with the Trust Deed
Majority NZ based institutions and retail investors
~$3bn portfolio healthcare
real estate in Australia and New Zealand
~27%
~73%
Ko ngā tahu ā ō tapuwae inanhi, hei tauira mō āpōpō.
The footsteps we lay down in our past create the paving stones on which we stand today.
>250
healthcare
real estate
professionals
Practice
Establish baseline
environmental reporting
Underway across energy,
water and waste
Meet distribution guidance
and AFFO target
Half year guidance met. Guidance
upgraded for the full year
Maintain prudent payout ratio
Maintained at ~80%
Continue charitable and
community support programmes
Vital has pledged to a three-
year scholarship programme for
the Keystone Trust in conjunction
with the University of Auckland,
commencing CY23
Extend and diversify debt
Vital has agreed terms to extend
debt to 4.4 years (pro-forma
as at 31 December 2021)
Whakatauki (Maori Proverb)
INTERIM REPORT
|
1514
|
VITAL HEALTHCARE PROPERTY TRUST

Financial
Statements
Consolidated Statement of Comprehensive Income 18
Consolidated Statement of Financial Position 19
Consolidated Statement of Changes in Equity 20
Consolidated Statement of Cash Flows 21
Notes to the Consolidated Financial Statements 22
ABOUT THIS REPORT
1 Reporting Entity 22
2 Basis of Preparation 22
3 Significant Accounting Policies 23
PERFORMANCE
4 Segment Information 24
5 Taxation 25
6 Investment Properties 26
CAPITAL STRUCTURE, FINANCING
AND RISK MANAGEMENT
7 Units on Issue 31
8 Earnings per Unit 31
9 Distributable Income 32
10 Borrowings 33
11 Derivatives 35
12 Commitments and Contingencies 37
13 Trade and Other Receivables 37
OTHER NOTES
14 Subsequent Events 37
15 Related Party Transactions 37
Independent Auditor’s Report 41
INTERIM REPORT
|
1716
|
VITAL HEALTHCARE PROPERTY TRUST

Consolidated Statement
of Comprehensive Income
For the six months ended 31 December 2021
Consolidated Statement
of Financial Position
As at 31 December 2021
Note
6 months
Dec-21
$000s
6 months
Dec-20
$000s
Gross property income from rentals 60,014 56,205
Gross property income from expense recoveries 6,677 6,770
Property expenses (8,767) (8,815)
Net property income4 5 7, 9 24 54,160
Other income and expenses (16,113) (12,386)
Strategic transaction expenses (283) –
Finance income 27 18
Finance expense 10 (13,740) (13,566)
Operating profit 27, 815 28,226
Other gains/(losses)
Revaluation gain on investment property6 153,170 60,859
Net gain/(loss) on disposal of investment property6 2 81 11,557
Fair value gain/(loss) on foreign exchange derivatives (150) 624
Fair value gain/(loss) on interest rate derivatives 16,548 2,920
Realised gain/(loss) on foreign exchange 3 (1,349)
Unrealised gain/(loss) on foreign exchange (242) 388
169,610 74,999
Profit before income tax
197,425 103,225
Taxation expense5 (27,194) (11,635)
Profit attributable to unitholders of the Trust 170,231 91,590
Other comprehensive income
Items that may be reclassified subsequently to profit and loss:
Movement in foreign currency translation reserve (8,767) (3,258)
Fair value gain/(loss) on net investment hedges – 151
Deferred taxation (expense)/credit – (42)
Total other comprehensive income/(loss) after tax (8,767) (3,149)
Total comprehensive income after tax 161,464 88,441
Earnings per unit
Basic and diluted earnings per unit (cents)831 . 4119 .12
Note

Dec-21
$000s

Jun-21
$000s
Non-current assets
Investment properties6 2,941,165 2,634,588
Derivative financial instruments11 587 –
Deferred tax 540 6,477
Total non-current assets 2,942,292 2,641,065
Current assets
Cash and cash equivalents 7,810 6,880
Trade and other receivables13 2 9,16 4 1,634
Other current assets 17,080 12,736
Derivative financial instruments11 19 8 245
Total current assets 54,252 21,495
Total assets 2,996,544 2,662,560
Unitholders’ funds
Units on issue7 942,921 777,199
Reserves (10,162) 4,208
Retained earnings 866,779 722,044
Total unitholders' funds 1,799,538 1,503,451
Non-current liabilities
Borrowings10 778,655 814,895
Lease liability – ground lease 3,988 4,094
Derivative financial instruments 11 24,183 40,379
Deferred tax 145,002 129,361
Total non-current liabilities 951,828 988,729
Current liabilities
Trade and other payables2 7, 714 41,005
Income in advance 1,331 854
Derivative financial instruments 11 978 640
Lease liability – ground lease 167 14 2
Taxation payable 2,471 13,334
Borrowings10 212,517 114,405
Total current liabilities245,178 170,380
Total liabilities1,197,006 1,159,109
Total unitholders' funds and liabilities2,996,544 2,662,560
For and on behalf of the Manager, NorthWest Healthcare Properties Management Limited.
G Stuart, Independent Chair
24 February 2022
M Stanford, Independent Director
& Chair of the Audit Committee
INTERIM REPORT
|
1918
|
VITAL HEALTHCARE PROPERTY TRUST

Consolidated Statement
of Changes in Equity
Consolidated Statement
of Cash Flows
Units on
issue
$000s
Retained
earnings
$000s
Translation
of foreign
operations
$000s
Foreign
exchange
hedges
$000s
Share
based
payments
$000s
Total
unitholders'
funds
$000s
For the six months ended
31 December 2020
Balance at the start of the six months 594,752 488,096 (73,003) 62,659 6,475 1,078,979
Changes in unitholders' funds 170,533 – – – (6,475) 164,058
Manager's incentive fee – – – – 3 ,121 3 ,121
Profit for the period – 91,590 – – – 91,590
Distributions to unitholders – (21,226) – – – (21,226)
Other comprehensive
income for the period
Movement in foreign currency
translation reserve – – (3,257) – – (3,257)
Fair value gains on net
investment hedges – – – 109 – 109
Balance at the end of the six months 765,285 558,460 (76,260) 62,768 3 ,121 1,313,374
For the six months ended
31 December 2021
Balance at the start of the six months 777,199 722,044 (71,291) 63,073 12,427 1,503,452
Changes in unitholders' funds 165,722 – – – (12,427) 153,295
Manager's incentive fee – – – – 6,823 6,823
Profit for the period – 170,231 – – – 170,231
Distributions to unitholders – (25,496) – – – (25,496)
Other comprehensi
ve
income for the period
Movement in foreign currency
translation reserve – – (8,767) – – (8,767)
Balance at the end of the six months 942,921 866,779 (80,058) 63,073 6,823 1,799,538
Note
6 months
Dec-21
$000s
6 months
Dec-20
$000s
Cash flows from operating activities
Property income 60,429 60,971
Recovery of property expenses 6,709 6,256
Interest received 27 18
Property expenses ( 7, 9 71 ) (10,759)
Management and trustee fees (8,134) (7,124)
Interest paid (13,190) (13,453)
Tax paid (14,576) (7,860)
Other trust expenses (1,267) (2,328)
Net cash provided by/(used in) operating activities 22,027 2 5 , 721
Cash flows from investing activities
Receipts from foreign exchange derivatives 475 1,281
Payments for foreign exchange derivatives (950) (2,629)
Capital additions on investment properties (69,798) (80,421)
Purchase of properties (133,919) (106,056)
Deposits and acquisition costs paid – Investment Property (14,233) (145)
Proceeds from disposal of properties 12,991 100,475
Epworth Eastern tenant fitout (13,240) -
Strategic transaction expenses (68) (925)
Net cash provided by/(used in) investing activities (218,742) (88,420)
Cash flows from financing activities
Debt drawdown 461,096 176,100
Repayment of debt (389,419) (255,207)
Issue of units 142,719 157,502
Loan issue costs (1,831) (32)
Costs associated with new equity raised (1,722) (2,487)
Distributions paid to unitholders (13,198) (12,159)
Net cash from/(used in) financing activities 197,645 63,717
Net increase/(decrease) in cash and cash equivalents
930 1,018
Cash and cash equivalents at the beginning of the period 6,880 5,265
Cash and cash equivalents at the end of the six months 7,810 6,283
For the six months ended 31 December 2021For the six months ended 31 December 2021
INTERIM REPORT
|
2120
|
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, with its registered office at C/- Bell Gully,
Level 22, Vero Centre, 48 Shortland Street, Auckland. The Trust is managed by NorthWest Healthcare Properties Management
Limited (the “Manager”).
The condensed consolidated interim financial statements of VHP for the six months ended 31 December 2021 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 investment in high quality Health
Sector related properties.
These condensed consolidated interim financial statements were approved by the Board of Directors of the Manager on 24
February 2022.
The condensed consolidated interim financial statements for the six months ended 31 December 2021 (including comparative
balances) have been reviewed by the auditor. The 30 June 2021 comparatives were subject to independent audit.
2 BASIS OF PREPARATION
(a) Statement of compliance
These condensed consolidated interim financial statements have been prepared in accordance with Generally Accepted Accounting
Practice in New Zealand (NZ GAAP), NZ IAS 34 and IAS 34 Interim Financial Reporting, and do not include notes of the type
normally included in an Annual Report. Therefore this report should be read in conjunction with the Group’s most recent Annual
Report. The accounting policies have been consistently applied, when compared to those used in the 2021 Annual report. The
2021 Annual Report complies with New Zealand equivalents to International Financial Reporting Standards (NZIFRS) and other
applicable Financial Reporting Standards issued and effective at the time of preparing those statements.
(b) Basis of consolidation
The Group’s financial statements incorporate the financial statements of the Trust and entities controlled by the Trust (its subsidiaries).
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 significant 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.
(e) Impact of COVID-19
In March 2020 the World Health Organisation declared the outbreak of a novel coronavirus (‘COVID-19’) as a pandemic,
which spread throughout New Zealand, Australia and the world. Governments in New Zealand and Australia responded with
lock-downs, business trading restrictions and social distancing measures all of which impacted large parts of the economy,
including the ability for the Group’s tenants to operate on a business as usual basis. Throughout 2021,the New Zealand and
Australian governments have imposed various forms of lockdown as deemed necessary in relevant States/regions in response
to community transmissions of COVID-19. Vaccination programmes commenced midway through 2021 and have reached
eligible population vaccination levels of over 90% for both New Zealand and Australia.
In response to these challenging economic conditions the Group supported some tenants with rent abatement and/or rent
deferral arrangements. Accordingly trade receivables related to deferral arrangements outstanding at 31 December 2021 are
ongoing and loss allowances have been made. While Government restrictions have eased and ‘COVID normal’ operating
conditions are ongoing, as at 31 December 2021 deferred rent with businesses impacted by previous lock-downs and trading
restrictions remains.
COVID-19 has also potentially impacted the previous market evidence used by independent valuers to inform assumptions
and opinions that determine the fair value of investment property in some markets in which the Group operates, although recent
independent professionally qualified valuer reports commissioned note that market conditions and transactional evidence
uncertainty has abated (refer Note 6 for further details).
Currently there is community transmission of COVID-19 in both countries but Governments have not implemented further
lockdowns due to the reliance being placed in vaccination levels. However the current Omicron variant and/or further waves
that could arise could adversely impact the viability of the Group’s tenants and therefore potentially the operating performance
and the financial position of the Group if the Governments in New Zealand and Australia were to respond with prolonged
lock-downs and business trading restrictions.
(f) 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 relevant and material 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 5 Current and deferred taxation
Note 6 Valuation of investment properties
Note 14 Related party transactions
INTERIM REPORT
|
2322
|
VITAL HEALTHCARE PROPERTY TRUST

Notes to the Consolidated Financial StatementsNotes to the Consolidated Financial Statements
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 principal business activity of the Group is to invest in Health Sector related properties. Segment profit represents the profit earned
by each segment including allocation of identifiable administration costs, finance costs, revaluation gains/(losses) on investment
properties, and gains/(losses) on disposal of investment properties. This is the measure reported to the Board, 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.
Net property income comprises rental income and expense recoveries from tenants less property expenses. The Group has three
Australian tenants that contributed $31.6
million of gross property income (31 December 2020: three Australian tenants that
contributed $34.7
million). There were no inter-segment sales during the six months (31 December 2020: nil).
Performance
Australia
$000s
New Zealand
$000s
Total
$000s
Segment profit/(loss) for the six months ended 31 December 2021:
Gross property income from rentals 43,303 16,711 60,014
Gross property income from expense recoveries 2,612 4,065 6,677
Property expenses (4,251) (4,516) (8,767)
Net property income 41,664 16,260 5 7, 9 24
Other expenses (6,757) (9,356) (16,113)
Strategic transaction expenses – (283) (283)
Net finance expense (6,185) (7,528) (13,713)
28,722 (907) 27, 815
Fair value gain/(loss) on interest rate derivatives – 16,548 16,548
Revaluation gains on investment properties 107,818 45,352 153,170
Net gain/(loss) on disposal of investment property 2 81 – 2 81
Other foreign exchange gains/(losses) (2) (387) (389)
Total segment profit before income tax 136,819 60,606 197,425
Taxation expense (27,194)
Profit for the six months 170,231
Segment profit/(loss) for the six months ended 31 December 2020:
Gross property income from rentals 42,646 13,559 56,205
Gross property income from expense recoveries 3 ,191 3,579 6,770
Property expenses (4,797) (4,018) (8,815)
Net property income 41,040 13,120 54,160
Other expenses (6,500) (5,886) (12,386)
Net finance expense (3,717) (9,831) (13,548)
30,823 (2,597) 28,226
Fair value gain/(loss) on interest rate derivatives – 2,920 2,920
Revaluation gains on investment properties 28,599 32,260 60,859
Net gain/(loss) on disposal of investment property 11,557 – 11,557
Other foreign exchange gains/(losses) (3) (334) (337)
Total segment profit before income tax 70,976 32,249 103,225
Taxation expense (11,635)
Profit for the six months 91,590
Australia
$000s
New Zealand
$000s
Total
$000s
Segment assets at 31 December 2021:
Investment properties 2,170,442 770,723 2,941,165
Other non-current assets – 1,12 7 1,12 7
Current assets 45,985 8,267 54,252
Consolidated assets 2,216,427 780,117 2,996,544
Segment assets at 30 June 2021:
Investment properties 1,933,502 701,086 2,634,588
Other non-current assets – 6,477 6,477
Current assets 16,369 5,126 21,495
Consolidated assets 1,949,871 712,689 2,662,560
Segment liabilities at 31 December 2021:
Borrowings 963,871 27,301 991,172
Other liabilities 169,745 36,088 205,833
Consolidated liabilities 1,133,616 63,389 1,197,005
Segment liabilities at 30 June 2021:
Borrowings 800,950 128,350 929,300
Other liabilities 173,313 56,496 229,809
Consolidated liabilities 974,263 184,846 1,159,109
6 months
Dec-21
$000s
6 months
Dec-20
$000s
Profit/(loss) before tax for the period 197,425 103,225
Taxation (charge)/credit – 28% on profit before income tax (55,279) (28,903)
Effect of different tax rates in foreign jurisdictions 17, 9 6 7 9,230
Tax exempt income 13,288 10,119
Tax impact of leasing deals (59) 4,563
Foreign tax credits 2,515 4,206
Tax charges on overseas investments (5,656) (6,609)
Over/(under) provided in prior periods - (470)
Other adjustments 30 (3,771)
Taxation (expense)/credit (27,194) (11,635)
The taxation (charge)/credit is made up as follows:
Current taxation (4,352) (7,578)
Deferred taxation (22,842) (4,057)
Total taxation (expense) (27,194) (11,635)
4 SEGMENT INFORMATION (continued)
All assets and liabilities have been allocated to reportable segments.
5 TAXATION
Income tax recognised in the consolidated statement of comprehensive income
INTERIM REPORT
|
2524
|
VITAL HEALTHCARE PROPERTY TRUST

Notes to the Consolidated Financial Statements
6 INVESTMENT PROPERTIES
Investment properties comprise real estate predominately leased, or targeted to be leased, to health sector tenants that is held for
either deriving rental income, for capital appreciation or both.
6A Reconciliation of Carrying Amounts
The Group holds the freehold to all properties except the car parks at the rear of Ascot Hospital and Ascot Central, which are the
subject of a ground lease (“right of use” asset) that has a weighted average term remaining of 17.3 years (30 June 2021: 17.8 years).
As at reporting date the fair value of this right-of-use asset totals $8.1 million (30 June 2021: $7.9 million).
Dec-21
$000s
Jun-21
$000s
Carrying value of investment property at the beginning of the six months 2,634,588 2,086,309
Acquisition of properties 133,205 237,072
Capitalised costs 46,854 121,642
Capitalised interest costs 2,900 4,852
Net capitalised incentives 32 31,631
Disposal of properties (12,114) (87,771)
Foreign exchange translation difference (17,470) 4,901
Revaluation gain on investment property 153,170 235,383
Right of use asset recognised – 569
Carrying value of investment property at the end of the six months 2,941,165 2,634,588
Notes to the Consolidated Financial Statements
6B Joint Arrangements
During 2019 the Group purchased a 50% tenants-in-common interest in an investment property in Elizabeth Vale, South Australia
(now re-named Playford Health Hub). Subject to a Co-ownership Deed, this arrangement constituted a joint operation whereby the
Group recognised its share of assets and liabilities in the consolidated statement of financial position and share of revenue earned
and expenses incurred in the consolidated statement of comprehensive income. On 21 August 2020 the Group purchased the
remaining 50% interest in the investment property and ceased the joint arrangement.
No new joint arrangements have been entered into in the current period.
6C Acquisition Of Property
During the period the Group:
• acquired a development site of 20,131 square metres at 187–195 Foxwell Rd, Coomera, Queensland, Australia for an
acquisition price of A$9.4 million (excluding transaction costs) on 15 July 2021.
• acquired a development site of 982 square metres at 1 Beck Court, Noble Park, Victoria, Australia (adjacent to Vital’s
South Eastern Hospital) for an acquisition price of A$1.95 million (excluding transaction costs) on 28 September 2021.
• acquired a development site of 749 square metres at 61 – 71 Park Rd, Grafton, Auckland, New Zealand for an
acquisition price of NZ$7.25 million (excluding transaction costs) on 30 September 2021.
• acquired a “Cancer Centre of Excellence” in Adelaide known as Tennyson Centre at 520 South Road, Kurralta Park, SA,
Australia, as well as an adjoining development site of 1,920 square metres at 502–504 South Road for A$90 million and
A$2.75 million respectively (excluding transaction costs) on 11th October 2021.
• settled on a medical office building at 120 Thames St, Box Hill, Victoria, Australia for an acquisition price of A$10.1 million
(excluding transaction costs), which had previously been accrued for in Other Payables.
• acquired a group of residential properties through the six month period to be held for potential future development in
Meadowbrook, Queensland, Australia for A$9.6 million (excluding transaction costs).
6D Disposal of Property
During the period the Group:
• sold Gold Coast Surgery Centre (QLD) for A$12.75 million (excluding transaction costs) on 27 October 2021.
6E Contractual Arrangements
The Group was party to contracts to purchase or construct property or provide lease incentives to tenants which are not recognised
in the financial statements for the following amounts:
• On 12 August 2021, the Group entered into a contract to acquire Lower Hutt Health Hub in New Zealand for $46.5
million (plus transaction costs). Settlement completed on 1 February 2022 (refer note 14).
• On 10 December 2021, the Group entered into a contract to acquire 6 McCausland Ave, Kellyville (The Hills
Development Land) in Australia for A$13.5 million (plus transaction costs). Settlement completed on 8 February 2022
(refer note 14).
• On 23 December 2021, the Group entered into a contract to acquire the leasehold interest and fund the stage
1 development of a GenesisCare four storey Comprehensive Cancer Centre and multi-stage health precinct in
Campbelltown, South West Sydney, Australia for total consideration of A$76.6 million. A refundable deposit of A$7.69
million has been paid, with final settlement subject to the satisfaction of conditions precedent including development
conditions and Council approval of the transfer of the leasehold interest to Vital.
6F Individual Valuations and Carrying Amounts
The details of the New Zealand and Australian investment property portfolio, including its location, sub sector, fair value, market
capitalisation rate, occupancy and weighted average lease expiry term are as follows:
Dec-21
$000s
Jun-21
$000s
Capital expenditure commitments
161,171 135,952
Property acquisition commitments
132,608 18,593
Tenant incentive commitments
10,626 10,742
INTERIM REPORT
|
2726
|
VITAL HEALTHCARE PROPERTY TRUST

Notes to the Consolidated Financial StatementsNotes to the Consolidated Financial Statements
Latest independent
valuation
Fair value
Market
capitalisation rate
OccupancyWALE
PropertiesLocationSub sectorMajor Tenant
Date$M$M
Dec-21
$M
Jun-21
%
Dec-21
%
Jun-21
%
Dec-21
%
Jun-21
Ye a r s
Dec-21
Ye a r s
Jun-21
Australia
Lingard Private Hospital
1
Merewether, New South WalesHospital (Acute)Healthe CareDec-21206.1206.119 3 . 9 4.3 4.5 100.0 100.0 24.2 24.7
Maitland Private Hospital East Maitland, New South WalesHospital (Acute/Specialty)Healthe CareDec-21124.3124.3118.3 4.9 5 .1 100.0 100.0 16.0 16.5
Hurstville Private Hospital
1
Hurstville, New South WalesHospital (Acute)Healthe CareDec-2184.784.780.6 5.8 5.8 100.0 100.0 20.3 20.8
The Hills Clinic
1
Kellyville, New South WalesHospital (Specialty)AuroraDec-2158.258.254.4 4.3 4.5 100.0 100.0 25.5 26.0
Toronto Private HospitalToronto, New South WalesHospital (Acute/Specialty)AuroraDec-2150.850.84 7. 7 5.1 5.4 100.0 100.0 20.6 21 .1
Mons Road Medical CentreWestmead, New South WalesMOBCastlereaghJun-2140.540.539.7 5.3 5.4 94.5 94.5 3.4 3.6
Lingard Day Centre
1
Merewether, New South WalesMOBHealthe CareDec-2143.243.240.6 4.3 4.5 100.0 100.0 24.2 24.7
Hirondelle Private HospitalChatswood, New South WalesHospital (Specialty)AuroraJun-2129.931 . 330.2 5.0 5.3 100.0 100.0 20.4 20.9
Fairfield Aged Care
1
Fairfield, New South WalesAged CareHall & PriorDec-2120.020.019 . 3 6.3 6.3 100.0 100.0 14.2 14.7
Darlington Aged CareBanora Point, New South WalesAged CareBolton ClarkeJun-2118 .118 .118.3 6.3 6.3 100.0 100.0 14.8 15.3
Clover Lea Aged Care
1
Burwood Heights, New South WalesAged CareHall & PriorDec-2114.514.514 .1 6.3 6.3 100.0 100.0 14.2 14.7
Grafton Aged Care
1
South Grafton, New South WalesAged CareHall & PriorDec-2112.012.011 . 9 7.0 7.0 100.0 100.0 15.3 15.8
Epworth Eastern Hospital
2
Box Hill, VictoriaHospital (Acute)Epworth FoundationDec-21412.8412.8375. 2 4.0 4.3 100.0 100.0 17.3 17.8
South Eastern Private HospitalNoble Park, VictoriaHospital (Specialty)AuroraDec-2191. 991. 986.0 4.5 4.8 100.0 100.0 19.2 19 . 7
Epworth CamberwellCamberwell, VictoriaHospital (Specialty)Epworth FoundationJun-217 7. 377.378 .1 4.2 4.3 100.0 100.0 19.5 20.0
Ekera Medical Centre
1
Box Hill, VictoriaMOBImaging AssociatesDec-2134.534.533.3 5.0 5.3 92.9 100.0 3.0 3.3
Epworth RehabilitationBrighton, VictoriaHospital (Specialty)Epworth FoundationJun-2128.728.729.0 5.5 5.5 100.0 100.0 2.1 2.6
120 Thames Street
1
Box Hill, VictoriaMOBEpworth FoundationDec-2113 . 013.030.0 5.5 6.5 89.7 100.0 2.8 3.6
Belmont Private HospitalCarina Heights, QueenslandHospital (Specialty)AuroraDec-2113 9 . 7147.313 3 . 5 4.0 4.3 100.0 100.0 23.7 24.2
Palm Beach Currumbin ClinicCurrumbin, QueenslandHospital (Specialty)AuroraDec-2174.074.069.2 4.5 4.8 100.0 100.0 13.7 14.2
The Southport Private Hospital
1
Southport, QueenslandHospital (Acute/Specialty)RamsayDec-2152.852.851. 4 4.8 5.0 100.0 100.0 23.2 23. 7
Eden RehabilitationCooroy, QueenslandHospital (Acute/Specialty)AuroraJun-2129.634.233.0 5.3 5.3 100.0 100.0 15.9 16.4
Baycrest Aged CareHervey Bay, QueenslandAged CareBolton ClarkeJun-2119 . 619. 619 . 8 6.3 6.3 100.0 100.0 14.5 15.0
Gold Coast Surgery Centre
3
Southport, QueenslandMOBSouth Coast Radiologyn.a. – – 12.2 – 7.5 – 88.9 – 1.4
Tantula Rise Aged CareAlexandra Headland, QueenslandAged CareBolton ClarkeJun-2124.424.424. 7 6.3 6.3 100.0 100.0 14.5 15.0
Marian Centre
1
Wembley, Western AustraliaHospital (Specialty)AuroraDec-2163.663.657.8 4.4 4.6 100.0 100.0 12.6 13 .1
Abbotsford Private HospitalWest Leederville, Western AustraliaHospital (Specialty)AuroraDec-2143.843.83 7. 9 4.3 4.5 100.0 100.0 20.1 20.6
Hamersley Aged Care
1
Subiaco, Western AustraliaAged CareHall & PriorDec-2113 . 813.813 . 5 6.5 6.8 100.0 100.0 14.2 14.7
Rockingham Aged Care
1
Rockingham, Western AustraliaAged CareHall & PriorDec-217. 57. 57. 3 6.8 7.0 100.0 100.0 14.2 14.7
Tennyson CentreKurralta Park, South AustraliaMOBICON Cancer CareAug-2195.696.4 – 4.8 – 99.8 – 2.5 –
Sportsmed Hospital, Clinic & Cons.
4
Stepney, South AustraliaHospital (Acute)Sportsmed SAJun-2182.48 7.183.3 5.0 5.3 100.0 100.0 14.1 14.6
Playford Health – Retail & Carpark
5
Elizabeth Vale, South AustraliaMOBSA HealthDec-2122.822.8 – 6.0 – 53.1 – 10.0 –
Total Australia2,049.21,814.0
New Zealand
Ascot Hospital & Clinics
1
Greenlane, AucklandHospital (Acute)Ascot Hospital and Clinics LimitedDec-21134.5134.5126.3 4.4 4.6 100.0 99.5 16.5 17.0
Grace HospitalTauranga, Bay of PlentyHospital (Acute)Norfolk Southern Cross LimitedDec-2110 7. 5108.5104.5 4.6 4.8 100.0 100.0 29.0 29.5
Wakefield Hospital
1
Newtown, WellingtonHospital (Acute)Evolution Healthcare Dec-21110.5112.499.6 4.8 4.9 100.0 100.0 25.9 26.4
Royston Hospital
1
Hastings, Hawkes BayHospital (Acute)Evolution Healthcare Dec-2194.094.081 . 3 4.8 5.0 100.0 100.0 2 7. 9 28.4
Bowen Hospital
1
Crofton Downs, WellingtonHospital (Acute)Evolution Healthcare Dec-2171 . 471. 463.5 4.8 4.8 100.0 100.0 2 7. 9 28.4
Boulcott Hospital
1
Lower Hutt, WellingtonHospital (Acute)Healthe CareDec-2150.850.847.0 4.8 5.0 100.0 100.0 16.5 17.0
Ormiston Hospital
1
Flatbush, AucklandHospital (Acute)Ormiston Surgical and Endoscopy LtdDec-2147.048.845.4 5.0 5.3 100.0 100.0 2.4 2.6
Ascot CentralGreenlane, AucklandMOBFertility Associates LimitedDec-2144.044.043.3 4.8 5.3 100.0 80.9 6.9 6.5
Apollo Health & Wellness CentreAlbany, AucklandMOBApollo Medical LimitedDec-2132.332.32 7. 6 5.3 5.8 91.5 84.0 6.9 8.1
Kensington HospitalWhangarei, NorthlandHospital (Acute)Kensington Hospital LimitedDec-2124.025.323.2 5.1 5.3 100.0 100.0 24.5 25.0
Napier Health Centre
1
Napier, Hawkes BayMOBHawke's Bay District Health BoardDec-2118.518.516.3 5.9 6.0 100.0 100.0 12.0 12.5
Ascot Carpark (right of use asset)Greenlane, AucklandHospital (Acute)Ascot Hospital and Clinics LimitedDec-218 .18 .17. 9 8.1 8.8 90.6 89.8 14.1 14.6
Total New Zealand748.6685.8
Properties held for development
1
143.4134.5
TOTAL FAIR VALUE OF INVESTMENT PROPERTIES2,941.22,634.3 4.7 4.9 99.0 99.2 17.8 18.7
1 The independent valuer, in determining or informing the fair value for this property, has advised that the transactional market evidence used is continuing to be impacted by uncertainty caused by the COVID-19 pandemic.
Therefore less certainty and a higher degree of caution should be applied to the properties reported value than normally the case.
2 Epworth Eastern Medical Centre was combined with Epworth Eastern Hospital during FY21. The independent valuer, in determining or informing the fair value for this property, has advised that the transactional market evidence
used is continuing to be impacted by uncertainty caused by the COVID-19 pandemic. Therefore less certainty and a higher degree of caution should be applied to the properties reported value than normally the case.
3 This property was sold on 27 October 2021
4 Sportsmed Office was combined with Sportsmed Hospital, Clinic and Consulting during FY21
5 This property was previously categorised as Held for Development but reached Practical Completion on 19 November 2021
INTERIM REPORT
|
2928
|
VITAL HEALTHCARE PROPERTY TRUST

Recognition and measurement
Valuation process
The purpose of the valuation process is to ensure that investment properties are held at fair value. In accordance with the Group’s
valuation policy and Trust Deed, external valuations are performed by independent professionally qualified valuers who hold a
recognised and relevant professional qualification and have specialised expertise in the type of investment property being valued.
The valuation policy requires that a valuer may not value the same property for more than two consecutive valuations. All valuations
are reviewed by the Manager and approved by the Board. The fair value of investment property as at 31 December 2021 was
determined through independent professional valuers for approximately 77% of the portfolio (30 June 2021: 66%) and the remainder
was determined by the Manager. The Manager’s valuations were informed by market data and valuation advice provided by
independent valuers, comparable transactional evidence and current period leasing activities. The valuers of properties which have
been independently valued at 31 December 2021 included: Ernst & Young, Colliers International, Jones Lang LaSalle Australia,
Valued Care, Absolute Value and CBRE. The properties which have been independently valued at 31 December 2021 are disclosed
above in note 6f.
The methods used for assessing the fair value of investment property are the Direct Comparison, Discounted Cash Flow (using a risk
adjusted discount rate), Capitalisation of Contract and Market Income approaches and are unchanged from the prior period. The
principal assumptions in establishing the valuation include the capitalisation/discount rates, occupancy, market rent assessments and
the weighted average lease term to expiry (WALE).
COVID-19 impact
In determining the fair value of investment properties at 31 December 2021, some independent professionally qualified valuers advise
that due to the continued uncertainty caused by the COVID-19 pandemic, asset values could change quickly if market circumstances
change, and therefore general caution should be exercised when relying on reported valuations. While market evidence and
transactional activity has increased in the period to 31 December 2021, and some valuers still advise that less certainty and a high
degree of caution should be attached to independent property valuations. Directors’ valuations at 31 December 2021 have been
informed by this recent evidence.
Fair Value Hierarchy
As the valuation methods use assumptions and judgements that are not based on observable market data, investment properties are
classified as Level 3 under the fair value hierarchy.
Generally, as:
• market rent assessments, occupancy and weighted average lease term to expiry increase,
yields firm, resulting in increased fair values for investment properties and vice versa;
• capitalisation rates and discount rates used in the valuation approaches decrease (firm),
the fair value of the investment property will increase, and vice versa.
Notes to the Consolidated Financial Statements
This section outlines how the Group manages its capital structure and related financing activities and presents the resultant returns
delivered to unitholders via distributions and earnings per unit.
7 UNITS ON ISSUE
8 EARNINGS PER UNIT
Distributions related to the six month period to 31 December 2021 were 4.75 cents per unit (31 December 2020: 4.375 cents per
unit), including the second quarter distribution of 2.375 cents per unit declared subsequent to 31 December 2021 (31 December
2020: 2.1875 cents per unit). Refer Note 14 for details.
On 30 August 2021, 4,090,950 units were issued against the 30 June 2021 Manager’s incentive fee of $12.4
million (31 December
2020: 2,565,076 were issued against the 2020 Manager’s incentive fee of $6.5 million).
On 20 October 2021, 39,655,172 units were issued for a price of $2.90 per unit under an underwritten placement and on 10
November 2021, 9,746,042 units were issued for a price of $2.852 per unit under a unit purchase plan. (31 December 2020:
On 13 October 2020, 44,642,858 units were issued for a price of $2.80 per unit under an underwritten placement and on 4
November 2020, 11,607,176 units were issued for a price of $2.80 per unit under a unit purchase plan).
Recognition and measurement
Basic and diluted earnings per unit is calculated by dividing the profit attributable to unitholders of the Trust by the weighted average
number of ordinary units on issue during the reporting period.
Dec-21
$000s
Jun-21
$000s
Balance at the beginning of the period 777,199 594,752
Issue of units under Distribution Reinvestment Plan 12,298 18,983
Issue of units under placement and unit purchase plan 142,803 159,650
Issue of units to satisfy Manager's incentive fee 12,427 6,450
Issue costs of units (1,806) (2,636)
Balance at the end of the period 942,921 777,199
6 months
Dec-21
$000s
6 months
Dec-20
$000s
Profit attributable to unitholders of the Trust ($000s) 170,231 91,590
Weighted average number of units on issue (000's of units) 541,878 479,151
Basic and diluted earnings per unit (cents) 31.41 19 .12
Dec-21
000s
Jun-21
000s
Reconciliation of number of units
Balance at the beginning of the period 519,753 453,783
Issue of units under the Distribution Reinvestment Plan 4,170 6,388
Issue of units under placement and unit purchase plan 49,401 57,017
Units issued to satisfy Manager's incentive fee 4,091 2,565
Balance at the end of the period 577,415 519 , 75 3
Notes to the Consolidated Financial Statements
Capital Structure, Financing and Risk Management
INTERIM REPORT
|
3130
|
VITAL HEALTHCARE PROPERTY TRUST

Notes to the Consolidated Financial Statements
9 DISTRIBUTABLE INCOME
Statutory profit attributable to unitholders is determined in accordance with NZ GAAP and includes a number of non-cash items
including fair value movements, straight line lease accounting adjustments, amortisation of borrowing and leasing costs,
and incentives.
The Manager uses Adjusted Funds from Operations (AFFO) and AFFO per unit as the Group’s key performance metric, representative
of the Group’s underlying performance, and as a guide to informing the Group’s distribution policy. AFFO adjusts statutory profit
attributable to unitholders for certain items that are non-cash, unrealised, capital in nature or are one-off or non-recurring (i.e. outside
the Group’s ordinary operations or not reflective of its underlying performance). As AFFO is a non GAAP measure it may not be
directly comparable with other entities.
A reconciliation of statutory profit attributable to unitholders to AFFO and AFFO per unit is outlined as follows:
10 BORROWINGS
6 months
Dec-21
$000s
6 months
Dec-20
$000s
Adjusted funds from operations
Operating profit before tax and other income 27, 815 28,226
Add/(deduct):
Current tax expense (4,352) (7,578)
Current tax expense on net of gain on property disposals and lease incentive transaction – 3,374
Incentive fee 6,823 3,096
Strategic transaction expenses 283 –
Realised foreign exchange on borrowings (net of tax) (118) 478
Amortisation of borrowing costs 555 336
Amortisation of leasing costs & tenant inducements 1,238 1,100
IFRS 16 Operating lease accounting (81) (67)
Funds from operations (FFO) 32,163 28,965
Add/(deduct):
Actual capex from continuing operations (128) (862)
Adjusted funds from operations (AFFO) 32,035 28,103
AFFO (cpu) 5.91 5.87
Distribution per unit (cpu) 4.750 4.375
AFFO payout ratio80%75 %
Units on issue (weighted average, 000s) 541, 878 479,151
Dec-21
$000s
Jun-21
$000s
AUD denominated loans 984,008 807,377
NZD denominated loans 11,500 125,000
Borrowing costs (4,336) (3,077)
Total borrowings 991,172 929,300
Current liability 212,517 114,405
Non current liability 778,655 814,895
Total borrowings 991,172 929,300
Dec-21
$000s
Jun-21
$000s
Total borrowings at the beginning of the period 929,300 813 , 515
Drawdowns during the year 461,096 1,204,354
Repayments during the year (389,419) (1,092,839)
Additional facility refinancing fee (1,831) (2,523)
Facility refinancing fee amortised during the period 555 878
Foreign exchange movement (8,529) 5 , 915
Total borrowings at the end of the period 991,172 929,300
Notes to the Consolidated Financial Statements
INTERIM REPORT
|
3332
|
VITAL HEALTHCARE PROPERTY TRUST

Dec-21Jun-21
Common Terms
Deed – AUD
A$m LimitA$m UndrawnExpiryA$m LimitA$m UndrawnExpiry
Facility A1 100.0 - Oct-28 - - n.a.
Facility A2 100.0 - Apr-24 - - n.a.
Facility B1 62.5 - Jul-22 62.5 - Jul-22
Facility B2 137.5 - Jul-22 137.5 - Jul-22
Facility C 125.0 - Oct-23 125.0 - Oct-23
Facility H 62.5 - Mar-25 62.5 - Mar-25
Facility I 62.5 - Mar-25 62.5 - Mar-25
Facility J 125.0 - Feb-26 125.0 - Feb-26
Facility K1 70.1 31.0 Feb-26 70.1 - Feb-26
Facility K2 21.0 - Oct-26 - - n.a.
Facility L 75.0 - Sep-28 - - n.a.
Facility M 19.0 3.0 Oct-26 - - n.a.
Facility E1 - - n.a. 50.0 50.0 Nov-21
Facility E2 - - n.a. 50.0 22.8 Nov-21
Facility F1 - - n.a. 75.0 70.7 Jan-22
Facility F2 - - n.a. 75.0 - Jan-22
Total AUD Facility 960.1 34.0 895.1 143.5
NZ$m LimitNZ$m Undrawn
Facility A 50.0 38.5 Oct-23 50.0 - Oct-23
Facility B 75.0 75.0 Feb-26 75.0 - Feb-26
Total NZD Facility 125.0 113.5 125.0 -
10A Summary of Borrowing Arrangements
On 25 February 2021 the Group replaced its syndicated revolving multi-currency facility with borrowings subject to a common terms deed
and bi-lateral facility agreements. Three new banking groups were also introduced into its lending relationships to provide financier diversity.
On 30 September 2021 the Group further diversified its financier group by introducing one more financier to the lending group on 7 year
terms, at the same time addressing facility expiries due in November 2021 and January 2022 with other existing lenders on extended terms.
These activities increased total borrowing facilities by A$65 million. The facilities’ expiry profile and undrawn facility limits are as follows:
The facilities governed by the common terms deed are secured and cross collateralised over the Group’s investment properties (by
first ranking real property mortgages) and other assets (via a first ranking general ‘all assets’ security agreement).
The common terms deed contains both financial and non-financial covenants and undertakings that are customary for secured
facilities of this nature. The key financial covenants (with capitalised terms being defined terms in the common terms deed)
are as follows:
Subsequent to 31 December 2021, the Group has agreed revised and new financing terms with existing financiers. Facility limits of
A$350 million have been secured, over terms of 3, 5 and 7 years, to refinance near term facility expiries, resulting in a A$150 million
net increase in facility limits. The documentation for the refinance is in agreed form but is subject to execution and final satisfaction of
conditions precedent.
10B Finance Expense
The effective interest rate on the borrowings, incorporating interest rate hedges, as at 31 December 2021 was 3.14% per annum
(30 June 2021: 3.59%).
11 DERIVATIVES
11A Interest Rate Swaps
During the period the Group recognised an unrealised fair value gain of $16.5 million (31 December 2020: $2.9 million gain)
on interest rate contracts. The Group’s interest rate swaps outstanding at 31 December 2021 are as follows:
Interest rate derivatives mature over the next eight years and have fixed interest rates ranging from 1.54% to 4.35% (30 June 2021:
from 1.54% to 4.99%).
Recognition and measurement
Derivatives are categorised as financial instruments at fair value through profit or loss and are initially recognised and subsequently
measured at fair value derived from counterparty bank valuations. Counterparty bank valuations are tested for reasonableness by
discounting the estimated future cashflows and using market interest rates for a substitute instrument at the measurement date. The
resulting gain or loss is recognised immediately in the consolidated statement of comprehensive income as hedge accounting has not
been applied.
Notes to the Consolidated Financial StatementsNotes to the Consolidated Financial Statements
Covenant
Dec-21
Actual
Jun-21
Actual
Banking Covenants
Loan to value ratio < 55% 35.0%38.0%
Interest cover > 2.00x 2 .942.88
Total EBITDA of Obligors v total EBITDA of Group Not < 95% 100%100%
Total assets of Obligors v total assets of Group Not < 95% 100%100%
Total value of unmortgaged properties v total assets of Group Not > 10% 2.6%4.8%
Dec-21
$000s
Jun-21
$000s
Non-current assets
Interest rate derivative assets 587 –
Current liabilities
Interest rate derivative liabilities (875) (640)
Non-current liabilities
Interest rate derivative liabilities (24,183) (40,379)
Total (24,471) (41,019)
Dec-21
$000s
Jun-21
$000s
Nominal value of interest rate swaps – AUD 425,000 425,000
Average fixed interest rate2.94%2.94%
Floating rates based on AUD BBSW0.12%0.12%
INTERIM REPORT
|
3534
|
VITAL HEALTHCARE PROPERTY TRUST

11B Forward Exchange Contracts
Recognition and measurement
Derivatives are categorised as financial instruments at fair value through profit or loss and are initially recognised and subsequently
measured at fair value derived from counterparty bank valuations. Counterparty bank valuations are tested for reasonableness
by using a valuation model based on the applicable forward price curves derived from observable forward prices. As
hedge accounting has not been applied any resulting gain or loss is recognised immediately in the consolidated statement of
comprehensive income.
11C Fair Value Hierarchy
The following provides an analysis of derivatives that are measured at fair value at reporting date, grouped into
Levels 1 to 3 based on the degree to which the fair value
inputs are observable:
Level 1 fair value measurements are those derived from quoted prices in active markets for identical assets or liabilities.
Level 2 fair value measurements are those derived from inputs other than quoted prices included within Level 1 that are observable
for the asset or liability, either directly (that is, as prices) or indirectly (that is, derived from prices).
Level 3 fair value measurements are those derived from valuation techniques that include inputs for the asset or liability that are not
based on observable market data (unobservable inputs).
The Group has determined that interest rate swaps and foreign exchange contract derivatives are Level 2 fair value measurement
instruments, that are measured using observable prices of similar instruments. There have been no reclassifications between levels in
the current period (2021: nil).
12 COMMITMENTS AND CONTINGENCIES
Other than the contractual obligations disclosed in Note 6E and Note 12A, there are no other commitments and contingencies in
effect at 31 December 2021 (31 December 2020: nil).
12A NZSX Bank Bond
As a condition of listing on the New Zealand Stock Exchange (NZSX), NZSX requires all issuers to provide a bank bond to NZSX
under NZSX/DX Listing Rule 1.23.2. The bank bond required by the Trust for listing on the NZSX is $50,000.
During the period the Group recognised an unrealised fair value loss of $0.15 million (31 December 2020: $0.62 million gain) on
forward exchange contracts. The Group’s forward exchange contracts outstanding at 31 December 2021 are as follows:
Dec-21
$000s
Jun-21
$000s
Current assets
Foreign exchange derivative assets 19 8 245
Current liabilities
Foreign exchange derivative liabilities (103) –
Total 95 245
Dec-21
$000s
Jun-21
$000s
Nominal value of foreign exchange contracts – AUD 16,600 18,100
Average foreign exchange rate 0.9318 0.9199
Notes to the Consolidated Financial StatementsNotes to the Consolidated Financial Statements
13 TRADE AND OTHER RECEIVABLES
Dec-21
$000s
Jun-21
$000s
Current
Trade receivables
705 623
Other receivables
28,459 1,011
Total Current
2 9,16 4 1,634
The Other receivables balance includes an amount relating to the delivery of a fitout project on the Epworth Eastern expansion
development on behalf of the tenant. Subsequent to 31 December 2021 the tenant has settled this amount in full.
Other Notes
14 SUBSEQUENT EVENTS
On 24 February 2022 a cash distribution of 2.375 cents per unit was announced by the Trust. The Record Date for the final
distribution is 10 March 2022, and payment is scheduled to unitholders on 24 March 2022. Imputation credits of 0.2141 cents per
unit will be attached to the distribution.
On 1 February 2022 the Group settled a contract to purchase Hutt Valley Health Hub at 135 Witako Street, Lower Hutt, New
Zealand for NZ$44.6 million excluding transaction costs. Settlement of additional development land for consideration of NZ$1.9
million still remains outstanding pending council approval of a subdivision.
On 8 February 2022, the Group settled a contract to acquire 6 McCausland Ave, Kellyville (The Hills Development Land) in Australia
for A$13.5 million (plus transaction costs). This land will be held for development in relation to the Group’s The Hills Clinic in NSW.
Subsequent to 31 December 2021 the Group has agreed revised and new financing terms with existing financiers. Facility limits of
A$350 million have been secured, over terms of 3, 5 and 7 years, to refinance near term facility expiries, resulting in a A$150 million
net increase in facility limits. The documentation for the refinance is in agreed form but is subject to execution and final satisfaction of
conditions precedent.
15 RELATED PARTY TRANSACTIONS
The Manager
Vital is managed by NorthWest Healthcare Properties Management Limited (the “Manager”), a wholly owned subsidiary of NWI
Healthcare Properties LP (NWIHLP).
The ultimate parent of NWIHLP is Toronto listed NorthWest Healthcare Properties Real Estate Investment Trust (NWH REIT) that, as
at reporting date, holds a 27.4% (31 December 2020: 25.8%) interest in Vital. NWH REIT and its controlled entities (including the
Manager) are considered related parties to Vital and its controlled entities by virtue of common ownership and/or directorships.
Other related parties by virtue of common ownership and/or ownership and/or directorship to the Manager of Vital include
Australian Properties Limited and NorthWest Healthcare Australian Property Limited.
Remuneration of the Manager
Vital pays fees to the Manager in accordance with the Trust Deed. The aggregate of Base Fees, Incentive Fees and Activity Fees is
capped at 1.75% per annum of Vital’s gross asset value (GAV) as at the end of a financial year.
INTERIM REPORT
|
3736
|
VITAL HEALTHCARE PROPERTY TRUST

Fee arrangements
In accordance with the Trust Deed, the fee arrangements are as follows:
Base Fee
The Base Fee structure is as follows:
• 65 bps per annum up to $1 billion of GAV:
• 55 bps per annum from $1 billion to $2 billion of GAV;
• 45 bps per annum from $2 billion to $3 billion of GAV; and
• 40 bps per annum over $3 billion of GAV.
Incentive Fee
The Incentive Fee is determined as 10% of the average annual increase in Vital’s Net Tangible Assets (NTA) (as defined by the Trust
Deed) over the respective financial year and the two preceding financial years, with payment being made by way of subscribing for
new units. The incentive fee calculations are also subject to a ‘three year high watermark”, such that the Manager will not be paid
an Incentive Fee in a year where NTA grows if it is still below where it was on the last business day of any of the past three financial
years.
Activity Fees
The Activity Fee structure is as follows:
a. Leases or licences
Vital pays the Manager leasing or licence fees where the Manager has negotiated leases or licences. The fees are charged at
11% of the aggregate annual rental for terms less than 3 years, 12% of the aggregate annual rental for terms of 3 years, and 12%
plus an additional 1% pro-rata for each year or part thereof for terms greater than three years (to a maximum of 20%), subject to a
minimum fee of $2,500.
Lease or licence renewals are charged at 50% of a new lease or licence fee.
Leasing or licence fees are capitalised to the respective investment or property in the consolidated statement of financial position
and amortised over the term of the lease.
b. Property management
Vital pays the Manager property management fees where the Manager acts as the property manager. These fees are charged
at 1%–2% of gross income depending on the number of tenants at the property and may be recovered from tenants if permitted
under lease agreements.
Property management fees, net of recoveries from tenants, are expensed through the consolidated statement of comprehensive
income in the year in which they arise.
c. Facilities management
Vital pays the Manager a facilities management fee where the Manager acts as a property facilities manager based on the
market rate (referenced to a reputable and high-quality third party service provider) for similar services at similar properties. This
fee may be recovered from tenants if permitted under lease agreements.
Facilities management fees are expensed, net of recoveries from tenants, through the consolidated statement of comprehensive
income in the year in which they arise.
Notes to the Consolidated Financial StatementsNotes to the Consolidated Financial Statements
d. Project management
Vital pays project management fees to the Manager for managing capital expenditure projects where the purpose of the project
is to upgrade, repair or otherwise extend the life of the property, including via the replacement or repair of major plant and
equipment, structural items and building envelope.
Project management fees for projects with a budget of between $0.2
million and $2.5 million are 2% of the committed spend
where the Manager is the project lead and 1% of committed spend where the Manager has an oversight role, increasing to 4%
and 2% respectively for projects with a budget greater than $2.5 million.
Project management fees are capitalised to the respective investment or property in the consolidated statement of
financial position.
Additional Costs
The Additional Costs structure is as follows:
a. Acquisitions
Vital pays fees to the Manager for managing the due diligence, financing, legal aspects and settlement of the purchase of an
investment or property instead of, or alongside, a third party agent. These fees are charged at 1.5% of the capitalised cost of the
relevant investment or property, being the contracted price payable, excluding any deductions netted off the settlement price (such
as rates), together with other related capitalised acquisition costs.
Acquisition fees are capitalised to the respective investment or property in the consolidated statement of financial position.
b. Disposals
Vital pays fees to the Manager for managing the due diligence, legal aspects and settlement of the sale of an investment or property
instead of, or alongside, a third party agent. These fees are charged at 1% of the contracted sale price of the relevant investment or
property actually received, provided that, if a third party agent has been engaged to provide services for the disposal, then the fee
payable to the Manager will be net of the third party agent’s costs and commissions.
Disposal fees are expensed through the consolidated statement of comprehensive income in the year in which they arise.
c. Development Management
Vital pays fees where the Manager acts as a development manager on Vital developments. These fees are charged at 4% of the
committed spend (excluding land) approved by the Board of the Manager provided that, if a third party agent has been engaged
to provide development management services, then the fee payable to the Manager will be reduced by the non-rentalisable third
party costs paid.
Development management fees are capitalised to the respective property in the consolidated statement of
financial position.
Other amounts
In accordance with the Trust Deed, the Manager is permitted to engage related parties to provide services to the Trust. The provision
of these services is subject to compliance with the restrictions on related party transactions in the Financial
Markets Conduct Act 2013.
INTERIM REPORT
|
3938
|
VITAL HEALTHCARE PROPERTY TRUST

Independent
Auditor’s Report
Notes to the Consolidated Financial Statements
31 December 2021
$000s
31 December 2020
$000s
30 June
2021
Statement of
Comprehensive
Income
Statement
of Financial
Position
Total
Amounts
Owing/
(Receivable)
Statement of
Comprehensive
Income
Statement
of Financial
Position
Total
Amounts
Owing/
(Receivable)
Base fee 7,401 – 7,401 – 6,324 – 6,324 53
Incentive Fee
1
6,823 – 6,823 6,823 3,096 – 3,096 12,427
Activity Fees:
Leasing/licensing
2
57 1,800 1,857 1,696 32 1,085 1 , 11 7 1,375
Property management
3
860 – 860 297 751 – 751 326
Facilities management
3
– – – – – – – –
Project management
4
– 157 157 157 – – – 158
AFSL fee 564 – 564 100 492 – 492 –
15,705 1,957 17,662 9,073 10,695 1,085 11, 78 0 14,339
Additional Costs:
Acquisitions
5
– 3,6433,643 1,953 – 1,535 1,535 1,852
Disposals 12 8 – 12 8 – 1,003 – 1,003 –
Development
management
6
– 1,3601,360 2,160 – 1, 733 1, 733 3,709
12 8 5,0035 ,131 4,113 1,003 3,268 4,271 5,561
Other Amounts:
Reimbursement of
third party expenses:
Other expenses 46 – 46 – 462 – 462 –
Amounts paid
to directors:
— Andrew Evans 45 – 45 – 45 – 45 –
— Graham Stuart 85 – 85 – 58 – 58 –
176 – 176 – 565 – 565 –
16,009 6,96022,969 13,186 12,263 4,353 16,616 19,900
1 Manager’s incentive fee accrued at 31 December 2021 of $6.8m (Jun 21: $12.4m) is payable to NorthWest Healthcare Properties Management Limited
2 Amounts outstanding at 31 December 2021 are: NorthWest Healthcare Properties Management Limited $0.01m (Jun 21:$0.2m); NorthWest Healthcare Australian Property Limited $1.7m (Jun 21: $1.2m)
3 Property Management and Facilities Management fees, exclusive of recoveries from tenants, incurred by the Trust totalled $0.86m and nil respectively for the 31 December 2021 period (Dec 20: $0.75m and nil
respectively). Amounts outstanding at 31 December 2021 are: NorthWest Healthcare Properties Management Limited $0.1m (Jun 21: $0.1m); NorthWest Healthcare Australian Property Limited $0.2m (Jun 21:$0.2m)
4 Amounts outstanding at 31 December 2021 are: NorthWest Healthcare Properties Management Limited $0.1m (Jun 21: $0.1m) NorthWest Healthcare Australian Property Limited $0.1m (Jun 21: $0.1m)
5 Amounts outstanding at 31 December 2021 are: NorthWest Healthcare Properties Management Limited $0.7m (Jun 21: $0.1m); NorthWest Healthcare Australian Property Limited $1.3m (Jun 21:$1.7m)
6 Amounts outstanding at 31 December 2021 are: NorthWest Healthcare Properties Management Limited $1.1m (Jun 21: $1.4m); NorthWest Healthcare Australian Property Limited $1.1m (Jun 21: $2.3m)
Other Related Parties
On 21 August 2020 the Group acquired the remaining 50% share in Playford Health Hub in South Australia from the NorthWest
Australia Real Estate Investment Trust for A$7.4 million excluding transaction costs.
Transactions with related parties
Amounts charged by the Manager and related parties and owing are as follows:


INDEPENDENT AUDITOR’S REVIEW REPORT
TO THE UNIT HOLDERS OF VITAL HEALTHCARE PROPERTY TRUST

Conclusion
We have reviewed the condensed consolidated interim financial statements (‘interim financial statements’) of Vital
Healthcare Property Trust and its subsidiaries (‘the Group ’ or ‘the Trust’) which comprise the consolidated
statement of financial position as at 31 December 2021, and the consolidated statement of comprehensive income,
consolidated statement of changes in equity and consolidated statement of cash flows for the six months ended on
that date, and a summary of significant accounting policies and other explanatory information on pages 18 to 40.

Based on our review, nothing has come to our attention that causes us to believe that the interim financial
statements of the Trust do not present fairly, in all material respects, the financial position of the Group as at 31
December 2021 and its financial performance and cash flows for the six months ended on that date in accordance
with NZ IAS 34 Interim Financial Reporting and IAS 34 Interim Financial Reporting.

Basis for Conclusion
We conducted our review in accordance with NZ SRE 2410 (Revised) Review of Financial Statements Performed by
the Independent Auditor of the Entity (‘NZ SRE 2410 (Revised)’). Our responsibilities are further described in the
Auditor’s Responsibilities for the Review of the Interim Financial Statements section of our report.

We are independent of the Group in accordance with the relevant ethical requirements in New Zealand relating to
the audit of the annual financial statements, and we have fulfilled our other ethical responsibilities in accordance
with these requirements.

Other than in our capacity as auditor, we have no relationship with or interests in the Trust.

Emphasis of matter – Valuation uncertainty related to investment properties
We draw your attention to note 2(e) and note 6(f) in the condensed consolidated interim financial statements,
where the Trust discloses information about the ongoing impact of COVID-19 on the valuation of investment
properties. Independent registered valuers determined the fair value of approximately 77 percent of the
investment properties at 31 December 2021, and Directors determined the fair value of the remaining properties.
Some independent registered valuers cautioned in their reports that “less certainty” and “a higher degree of
caution” should be attached to the valuations than would normally be the case. Our opinion is not modified in
respect of this matter.

Board of Directors’ responsibilities for the interim financial statements
The Board of Directors of the Manager is responsible on behalf of the Trust for the preparation and fair
presentation of the interim financial statements in accordance with NZ IAS 34 Interim Financial Reporting and IAS
34 Interim Financial Reporting and for such internal control as the Board of Directors of the Manager determines is
necessary to enable the preparation and fair presentation of the interim financial statements that are free from
material misstatement, whether due to fraud or error.

Auditor’s responsibilities for the review of the interim financial statements
Our responsibility is to express a conclusion on the interim financial statements based on our review. NZ SRE 2410
(Revised) requires us to conclude whether anything has come to our attention that causes us to believe that the
interim financial statements, taken as a whole, are not prepared, in all material respects, in accordance with NZ IAS
34 Interim Financial Reporting and IAS 34 Interim Financial Reporting.

A review of the interim financial statements in accordance with NZ SRE 2410 (Revised) is a limited assurance
engagement. We perform procedures, primarily consisting of making enquiries, primarily of persons responsible for
financial and accounting matters, and applying analytical and other review procedures. The procedures performed
in a review are substantially less than those performed in an audit conducted in accordance with International
Standards on Auditing (New Zealand) and consequently do not enable us to obtain assurance that we might identify
in an audit. Accordingly we do not express an audit opinion on the interim financial statements.
INTERIM REPORT
|
4140
|
VITAL HEALTHCARE PROPERTY TRUST

Directory
MANAGER
NorthWest Healthcare Properties
Management Limited
PO Box 6945,
Victoria Street West
Auckland 1142
Telephone: 0800 225 264
(NZ freephone); +64 9 973 7300
Email: enquiry@vhpt.co.nz
NorthWest Healthcare Properties
Management – Australia
Level 45, Rialto South Tower,
525 Collins Street
Melbourne 3000
BOARD AND OFFICERS
OF THE MANAGER
Graham Stuart – Independent Chair
Andrew Evans – Independent Director
Paul Dalla Lana – Director
Craig Mitchell – Director
Dr Michael Stanford –
Independent Director
Aaron Hockly – Fund Manager
Michael Groth – Chief
Financial Officer
Vanessa Flax – Regional
General Counsel A/NZ and
Company Secretary
AUDITOR
Deloitte Limited
Deloitte Centre
80 Queen Street
Auckland 1010
Private Bag 115-033
Auckland 1140
Telephone: +64 9 303 0700
Facsimile: +64 9 303 0701
LEGAL ADVISERS TO THE
TRUST AND THE MANAGER
Bell Gully
Vero Centre
48 Shortland Street
PO Box 4199
Auckland 1140
Telephone: +64 9 916 8800
Facsimile: +64 9 916 8801
Ashurst Australia
Level 16, 80 Collins Street,
South Tower,
GPO Box 4958
Melbourne, Victoria 3001
Telephone: +61 3 9679 3000
Facsimile: +61 3 9679 3111
SUPERVISOR
Trustees Executors Limited
Level 7, 51 Shortland Street
Auckland 1010
PO Box 4197
Auckland 1140
Telephone: +64 9 308 7100
Facsimile: +64 9 308 7101
BANKERS TO THE TRUST
ANZ Bank New Zealand Limited
ANZ Centre
23–29 Albert Street
Auckland 1010
Australia and New Zealand
Banking Group Limited
2/100 Queen Street
Melbourne, Victoria 3000
Australia
Bank of New Zealand
Deloitte Centre
80 Queen Street
Auckland 1010

Westpac Banking Corporation
Westpac Place
275 Kent St
Sydney NSW 2000
Australia
The Hongkong and Shanghai
Banking Corporation Limited
International Towers
100 Barangaroo Avenue
Sydney NSW 2000
Australia
Industrial and Commercial Bank
of China Limited – Australia
International Towers
100 Barangaroo Avenue
Sydney NSW 2000
Australia
Industrial and Commercial Bank
of China Limited – New Zealand
HSBC Building
188 Quay Street
Auckland 1010
Credit Agricole CIB Australia Limited
Aurora Place
88 Phillip Street
Sydney NSW 2000
Australia
UNIT REGISTRAR
Computershare Investor
Services Limited
159 Hustmere Road
Takapuna, Auckland 0622
Private Bag 92119
Auckland 1142
New Zealand
vital@computershare.co.nz
Telephone: +64 9 488 8777
Facsimile: +64 9 488 8787
This document is printed on an environmentally
responsible paper, produced using Elemental Chlorine
Free (ECF), FSC(R) certified, Mixed Source pulp from
Responsible Sources, and manufactured under the strict
ISO14001 Environmental Management System.
Independent
Auditor’s Report

This review report relates to the unaudited interim financial statements of Vital Healthcare Property Trust for the six months ended
31 December 2021 included on the Trust’s website. The Board of Directors of the Manager is responsible for the maintenance and
integrity of the Trust’s website. We have not been engaged to report on the integrity of the Trust’s website. We accept no
responsibility for any changes that may have occurred to the unaudited interim financial statements since they were initially
presented on the website. The review report refers only to the unaudited interim financial statements named above. It does not
provide an opinion on any other information which may have been hyperlinked to/from these unaudited interim financial statements.
If readers of this report are concerned with the inherent risks arising from electronic data communication they should refer to the
published hard copy of the unaudited interim financial statements and related review report to confirm the information included in
the unaudited interim financial statements presented on this website. Legislation in New Zealand governing the preparation and
dissemination of financial statements may differ from legislation in other jurisdictions.
Restriction on use
This report is made solely to the Trust’s unit holders, as a body. Our review has been undertaken so that we might
state to the Trust’s unit holders those matters we are required to state to them in a review report and for no other
purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than
the Trust’s unit holders as a body, for our engagement, for this report, or for the conclusions we have formed.





Silvio Bruinsma
Partner
for Deloitte Limited
Auckland, New Zealand
24 February 2022
INTERIM REPORT
|
4342
|
VITAL HEALTHCARE PROPERTY TRUST

DISCLAIMER:
This document has been prepared by NorthWest Healthcare Properties Management
Limited (the Manager) as manager of the Vital Healthcare Property Trust (the Trust).
This document provides general information only and 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. The Manager, the Trust, 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. The Manager
and the Trust 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.

---

HY22 interim
results presentation
24 FEBRUARY 2022

All amounts are in NZD unless otherwise shown
Contents
Overview 3
HY22 highlights 8
Financial results & capital management 11
Portfolio & acquisitions 18
Developments 24
Future focus 30
Appendices 33
Presenters
Aaron Hockly
Fund Manager
Richard Roos
Exec. Director, Portfolio
Michael Groth
Chief Financial Officer
Chris Adams
Exec. Director, Projects
VITAL HEALTHCARE PROPERTY TRUST | INTERIM RESULTS 2022 | 2

~$3bn17.8 year
VITAL IS THE ONLY SPECIALIST HEALTHCARE LANDLORD LISTED ON THE NZX
Overview of Vital
~$2.2bn~$0.8bn
31* PROPERTIES (AUS)12* PROPERTIES (NZ)
43* PROPERTIES

(AUS & NZ)
WALE
12
WESTERN
AUSTRALIA
NORTHERN

TERRITORY
SOUTH

AUSTRALIA
NEW SOUTH
WALES
TASMANIA
VICTORIA
QUEENSLAND
4
3
6
6
12
The owner of a ~$3 billion healthcare property
portfolio in New Zealand (27% of assets) and
Australia (73%);
The only NZX-listed specialist healthcare
landlord (NZX ticker: VHP);
Externally managed by a subsidiary of
Toronto-listed, global healthcare real estate
owner and manager, NorthWest Healthcare
Properties REIT (TSX ticker: NWH);
Underpinned by rental income that tracks
inflation with ~86% of lease income indexed
to CPI in some way; and
Targeting 2–3% AFFO and DPU growth per
annum over the medium term, whilst retaining
a conservative pay-out ratio.
VITAL HEALTHCARE PROPERTY TRUST (VITAL) IS:
*Excludes strategic assets held for development
VITAL HEALTHCARE PROPERTY TRUST
|
INTERIM RESULTS 2022
|
3

Vital’s 2-year progression despite COVID-19
PORTFOLIO ENHANCEMENTS SUPPORT TARGET OF GROWING AFFO AND DISTRIBUTIONS BY 2–3% PER UNIT PER ANNUM
Portfolio enhanced through acquisitions, development and disposals to: (1) increase diversity of assets and tenants,
(2) reduce age of building and (3) maintain long WALE. This helps to reduce income risk for Vital’s unitholders
52.6%
growth
14.8%
increase
Reduction demonstrates: (1)
quality of assets and tenants;
and (2) value added by leasing
and development undertaken
Enhance earnings
and valuation growth
and supports portfolio
development
Concentration risk reduced
Diversity of assets reduces
risk and enhances earnings
Maintenance of
market leading WALE
Younger buildings reduce
current and future maintenance
capex requirements
TOTAL PROPERTY VALUENET PROPERTY INCOME (ANNUAL)
WEIGHTED AVERAGE CAP RATEDEVELOPMENT PIPELINELARGEST SINGLE TENANT EXPOSURESECTOR SPLIT
WALEAVERAGE BUILDING AGE
1
~$2bn
(AUS:75%, NZ:25%)
~$3bn
(AUS:73%, NZ:27%)
2 0192021
5.52%4.67%
2 0192021
~$200m>$1bn
2
2 0192021
46%20%
2 0192021
Hospital:86%
Ambulatory Care: 11%
Aged Care: 3%
Hospital: 82%
Ambulatory Care: 13%
Aged Care: 5%
2 0192021
17.9 years17.8 years
2 0192021
14.0 years10.7 years
2 0192021
$98.8m$113.4m
C Y 19C Y 21
1
Average building age = the later of the date of construction or the last significant capital works
2
Includes $161.4m of committed development spend remaining and ~$1bn of developments being considered. Development
timing and therefore spend expected to be over a staged and lengthy period (at least 10 years)
VITAL HEALTHCARE PROPERTY TRUST | INTERIM RESULTS 2022 | 4

Vital’s 2-year progression despite COVID-19 (cont’d)
Balance sheet strengthened through raising $351m of new equity and extending
debt whilst supporting portfolio growth as a means to grow AFFO and distributions
BALANCE SHEET STRENGTHENED
32.2%
growth
NTA PER UNITBALANCE SHEET GEARING
AFFO (PER UNIT)
AVERAGE DEBT DURATION
DISTRIBUTIONS (PER UNIT)
3 5 .1 %33.2%
2 0192021
10.45
1
8 . 75
1
11 . 9 0
2
9. 75
2
FY20FY20FY22FY22
$2.36$ 3 .12
2 0192021
1.7 years4.4 years
3
2 0192021
13.9%11.4%
growthgrowth
1
FY20 actual
2
FY22 upgraded guidance (annualised)
3
Pro-forma as at 31 December 2021 including terms agreed post- 31 December 2021
Significantly expanded
Conservative gearing
maintained
VITAL HEALTHCARE PROPERTY TRUST | INTERIM RESULTS 2022 | 5

DELIVERING FOR VITAL'S UNITHOLDERS IN ACCORDANCE WITH STRATEGY
Delivery of strategy
Growth in earnings
Increased distributions
Continued portfolio improvement
Expansion of development pipeline
Extension of debt duration profile
Raising new equity primarily from
existing unitholders on a pro-rata basis
Reduction in base management
fees relative to assets
Focus on sustainability
Renewal of Vital’s board
Vital’s manager has continued to deliver
for Vital’s unitholders:
Total Return for 10 years ended 31 December 2021
16.3% per annum
Source: Forsyth Barr
Recent achievements
build on longer term
record
VITAL HEALTHCARE PROPERTY TRUST
|
INTERIM RESULTS 2022
|
6

HY22
highlights

HY22 highlights – capital & transactions
TRANSACTIONS UNDERTAKEN TO GROW FUTURE EARNINGS & SUPPORT FUTURE PORTFOLIO GROWTH
$168m
33.2%86%
$315m
$328m
8.0%
equity raised
1
balance sheet gearing of leases (by income)
linked to CPI
debt extended
property transactions
2
$314m acquisitions & $14m disposals
increase in NTA per unit
1
Comprising placement, UPP, DRP and incentive units issued to the Manager
2
Includes $181m of committed post 31 December 2021 acquisitions of The Hills Clinic Land (AUS), Campbelltown Health Hub (AUS), Hutt Valley Health Hub (NZ)
VITAL HEALTHCARE PROPERTY TRUST
|
INTERIM RESULTS 2022
|
8

HY22 highlights – portfolio & developments
ENHANCED PORTFOLIO METRICS IN ALIGNMENT WITH STRATEGY
8.8%
10
developments$50m$44m
17.8
years
increase in underlying
income (ex. FX)
underway $161.4m spend
remaining with a further ~$1bn
1

being actively considered
of development and
capital expenditure
works undertaken
2

of developments moved from
“potential” to “committed”
WALE; market leading
1
Development timing and therefore spend expected to be over a staged and lengthy period (at least 10 years)
2
Includes $42m of developments ~$6m of value-add capex and ~$2m maintenance and tenant incentive capex
3.7%
average rent reviews
completed (annualised)
VITAL HEALTHCARE PROPERTY TRUST | INTERIM RESULTS 2022 | 9

Financial results &
capital management

Financial performance
PROPERTY EARNINGS GROWTH HAS FACILITATED AFFO GROWTH

HY22

H Y 21
($)
CHANGE
(%)
CHANGE
Net property income57. 954.23.7 6.9%
All expenses ex. finance16 . 911 . 75.244.8%
Realised (gains) / losses on FX derivatives(0.5)0.7(1.2)N/A
Net finance expenses13 . 713 . 60 .10.5%
Operating profit before tax and other income27. 828.2(0.4)(1.5%)
Property revaluations and other income169.675. 094.6 126.1%
Profit before income tax19 7. 4103.294.2 91.3%
Adjusted funds from operations (AFFO)32.028.13.9 14.0%
Adjusted funds from operations (cpu)5.91 5.87 0.05 0.8%
Distributions per unit (cpu) 4.754.380.388.6%
All values shown as $m
Average NZD/AUD exchange rate in the period0.95350.9320
Contribution from structured
rent reviews, acquisitions and
development rents
$153m of revaluation gains
during HY22
VITAL HEALTHCARE PROPERTY TRUST
|
INTERIM RESULTS 2022
|
11

Net property income
8.8% NPI GROWTH (EXCL. FX) AIDED BY ACQUISITIONS, DEVELOPMENTS AND RENT REVIEWS
NET PROPERTY INCOME BRIDGE
($M)
Acquisitions – income from late FY21
and HY22 acquisitions
Development income – rentalisation
of capital expenditure and holding
income from strategic site acquisitions
Disposals – Strategic disposal of three
regional hospitals in FY21 for ~A$100m
and sale of Gold Coast Surgical Centre
for ~A$13m in HY22 (before selling costs)
Capex – remains modest due to
long term leases, minimal upcoming
expiries, young building age and
ability to capitalise or rentalise
upgrades as part of developments
1
Acquisitions of Grace Hospital, Epworth Camberwell, Tennyson Centre & Nelson Rd Box Hill.
2
Incremental development income contributed from Wakefield, Royston, Eden & Sth Eastern.
3
Disposals of regional Healthe Care (Mayo, North West & Dubbo) and Gold Coast Surgical Centre.
86% of Vital's leases (by income) are indexed to CPI in some way
54.2
5.6
0.9
1.0
(2.6)
(1.0)
57.9
40
45
50
55
60
65
HY2021Acquisitions
1
Development
Income
2
Rent Reviews &
Leasing Activity
Disposals
3
Foreign
Exchange
HY2022
+6.9% growth (incl FX) / +8.8% (excl. FX)
HY22 property income growth of +1.9%
(like-for-like, same currency basis)
VITAL HEALTHCARE PROPERTY TRUST
|
INTERIM RESULTS 2022
|
12

Balance sheet
STRENGTHENED BY SIGNIFICANT REVALUATION GAINS, NEW EQUITY AND DEBT EXTENSION

HY22

F Y 21
($)
CHANGE
(%)
CHANGE
Investment properties2,941.22,634.6306.6 11.6%
Other assets55.428.02 7. 4 97.6%
Bank debt995.5932.46 3 .1 6.8%
Other liabilities201.5226.7-25.2(11.1%)
Debt to gross assets
1
33.2%35.0%(5.1%)
Unitholder funds1,799.51,503.5296.0 19 . 7 %
Units on issue (m's)577.4519 . 857.6 11 . 1 %
Net tangible assets ($/unit)3 .12 2.89 0.23 8.0%
All values shown as $m
Period end NZD/AUD exchange rate0 . 9 4 110.9309
New equity of 155.1m
raised via placement, UPP
and two DRP's
Increase due to:
Development and capital
works expenditure of $50m
2
Acquisitions totalling $133m
Revaluation gains of $153m
Disposals of $12m (after
selling costs)
F/X impact of $18m
1
Calculated in accordance with Vital's Trust Deed
2
Includes $42m of developments ~$6m of value-add capex and ~$2m maintenance and tenant incentive capex
VITAL HEALTHCARE PROPERTY TRUST
|
INTERIM RESULTS 2022
|
13

Movement in investment property
WELL-LEASED HEALTHCARE ASSETS CONTINUE TO EXPERIENCE CAP RATE COMPRESSION
INVESTMENT PROPERTY BRIDGE (HY22)
KEY HY22 RESULTS
(NZ MILLIONS)
~77% of Vital’s portfolio independently
valued (by number of properties)
at 31 December 2021
Revaluation gains include ~$50m
from rental increases, leasing activity,
development margins and other
valuation adjustments. The balance
comes from 21 basis points of Cap
Rate compression since 30 June 2021
1
$133m of acquisitions, including $94m for The Tennyson Centre, and the balance for strategic / development sites. All values shown in NZ$, pre costs
2
Includes development expenditure and capitalised interest costs
3
Net proceeds (after selling costs)
4
Period end NZD/AUD exchange rate moved from 0.9309 at 30 June 2021 to 0.9411 at 31 December 2021
5
Compared to 30 June 2021 book value
$1m
gross profit realised
on disposals
5

$0
$400
$800
$1,200
$1,600
$2,000
$2,400
$2,800
$3,200
2,635
$1,934
$700
$2,170
$771
133
50
153
(12)
(18)
2,941
31-Dec-21Acquisitions
1
Capital
additions
2
Property revaluationsDisposals
3
Foreign
exchange
4
30-Jun-21
AUS Assets
NZ Assets
VITAL HEALTHCARE PROPERTY TRUST
|
INTERIM RESULTS 2022
|
14

Net Tangible Assets
NTA PER UNIT BRIDGE
REVALUATION GAINS HAVE LED TO STRONG NTA GROWTH PER UNIT
$2.20
$2.30
$2.40
$2.50
$2.60
$2.70
$2.80
$2.90
$3.00
$3.10
$3.20
$2.89
$0.24
$0.02
($0.02)
($0.02)
$0.01
Currency translationProperty revaluationsInterest rate swapsRetained earningsNew units issued
$3.12
HY22FY21
Revaluation gain of $153m;
5.8% increase from June 2021
70% of gain from Australian
portfolio and 30% from
New Zealand
Revaluation gains include
~$40m from rental increases
and leasing activity and
~$7m of development margins
VITAL HEALTHCARE PROPERTY TRUST
|
INTERIM RESULTS 2022
|
15

Strategic priorities delivered:

Financier diversification further enhanced with
additional lender secured;

First tranches of long term debt secured (A$175m
of 7 year facilities in Sept 2021);
Post 31 December 2021:

Facility limits increased by A$150m, including an
additional A$75m tranche of 7 year debt

Near term expires refinanced (earliest maturity
now Oct 2023)

Weighted average debt term increased to 4.4
years (pro-forma)

Weighted average cost of debt improved
HY22 overview
DEBT / ASSETS
33.2%
Calculated in accordance
with Vital’s Trust Deed
Debt levels considered conservative
given cashflow security: high quality
tenants, long leases, high quality
properties and defensive asset class
Focus on maintaining weighted
average debt duration of 4+ years
(terms agreed post 31 December
2021 to extend to 4.4 years)
Debt
BALANCE SHEET GEARING REDUCED DURING HY22 TO SUPPORT FUTURE GROWTH
1
Based on drawn debt only
Strong balance sheet available
to support Vital’s value adding
acquisitions and developments
Vital’s all-in weighted average
cost of debt was 3.14% as at 31
December 2021
1
VITAL HEALTHCARE PROPERTY TRUST | INTERIM RESULTS 2022 | 16

Debt duration
INCREASED WEIGHTED AVERAGE DEBT DURATION AND AVAILABLE HEADROOM FOR UTILISATION
Increased the weighted
average debt duration from
1.3 years to 4.4 years
3
with no
expiries until October 2023
1
Trust Deed debt ratio is based on total borrowings to gross asset value of the Trust
2
Bank LVR is based on total indebtedness to secured property value as determined by external valuers
3
Proforma including post 31 December 2021 agreed extension
DEBT DURATION PROFILE – 31 DECEMBER 2021
3
(A$)
Headroom available
under existing facility to
support future growth
0
50
100
150
200
250
300
350
400
Dec-23Jun-24Dec-24Jun-25Dec-25Jun-26Dec-26Jun-27Dec-27Jun-28Dec-28Jun-29
VALUE ($M)
BANK FACILITIES31 DEC 2021
3
31 DEC 2020
Debt to gross assets (Trust Deed)
1
33.2%32.4%
Bank loan to value ratio – actual
2
35.0%35.0%
Bank loan to value ratio – covenant55.0%50.0%
Weighted average duration to expiry4.4 years1.3 years
Undrawn facility limit (A$)$291m$284m
VITAL HEALTHCARE PROPERTY TRUST
|
INTERIM RESULTS 2022
|
17

Portfolio &
acquisitions

Portfolio update
~$3BN INVESTED IN 43 CORE HEALTHCARE PROPERTIES WITH OVER 2,800 BEDS AND OVER 140 UNIQUE TENANTS
DIVERSIFICATION
Vital has a diverse portfolio and income
stream by location and tenant
Seeking to continuously improve
diversity of income
INCOME
CY21 NPI of $113.4m despite COVID-19
Strong positive rent growth achieved during
HY22 through a combination of CPI and
fixed rent increases
GEOGRAPHIC DIVERSIFICATION
(BY VALUE)
TENANT DIVERSIFICATION
(% OF RENT)
WA
4%
8%
12 %
25%
24%
NT
SA
NSW
TAS
VIC
QLD
27%
NZ
Largest single tenant exposure reduced significantly over past two years, now lowered to 20%
Continued investment in people to support portfolio growth
Growth focused on core health precincts typically anchored by a public hospital,
university and/or large private hospital
Aurora Healthcare 20%
Hall & Prior 4%
Epworth 13%
Sportsmed 4%
Healthe Care Surgical 17%
Norfolk Southern
Cross Limited
4%
Evolution Group 10%
Bolton Clarke 3%
Ramsay 2%
Mercy Ascot 3%
Other Tenants 20%
20%20%
17 %
13 %10 %
4%
4%
4%
3%
3%
2%
VITAL HEALTHCARE PROPERTY TRUST
|
INTERIM RESULTS 2022
|
19

Hutt Valley Health Hub, Wellington, NZ
VITAL ACQUIRED A PREMIUM CO-LOCATED AMBULATORY CARE FACILITY TO COMPLEMENT EXISTING INVESTMENTS
~4.0%
Feb 2022
Sustainable features
$46.5m
~3,300 sqm
~3,200
~14.2 years
7 Tenants
Key precinct
WALE
focused on primary care
and outpatient services
Co-located with Hutt Hospital and
Boulcott Hospital (also owned by Vital)
initial yield
settlement
Sustainable and seismically
resilient building
acquisition price
net lettable area
Future expansion land
available for development
1
ACQUISITION SUMMARY
FUTURE DEVELOPMENT SUMMARY
1
Includes existing adjoining holding and development land expected to be settled shortlyVITAL HEALTHCARE PROPERTY TRUST
|
INTERIM RESULTS 2022
|
20

The Tennyson Centre, Adelaide, SA
VITAL ACQUIRED ONE OF ADELAIDE’S LEADING “CANCER CENTRES OF EXCELLENCE”
4.8%~A$93m
1
12,700 sqm
Oct 2021
1,900 sqmA$2.75m
6,568 sqm
3.5%–4%
Quality TenantsSeveral key leases
net lettable area
fixed annual rent reviews
Icon Cancer, GenesisCare, Nexus
Day Hospitals, Dr Jones & Partners
renewed since acquisition
Initial yieldacquisition price
site area
settlement
site areaacquisition price
ACQUISITION SUMMARY
DEVELOPMENT LAND SUMMARY
The Tennyson
Centre
Development
Land
1
Includes development acquisition cost listed below
VITAL HEALTHCARE PROPERTY TRUST | INTERIM RESULTS 2022 | 21

BLINK TO FORMAT
Development land to expand The Hills Clinic, Sydney, NSW
VITAL ACQUIRED A STRATEGIC LAND HOLDING ADJOINING EXISTING PREMIUM ASSET FOR FACILITY EXPANSION
Feb 2022A$50m
4,340 sqm
~5%
25 years
100%
settlementacquisition and estimated
development costs
site area
yield on cost
in line with existing lease
pre-committed to
Aurora Healthcare
ACQUISITION SUMMARY
The Hills
Clinic
~4,340sqm
MEMORIAL AVENUE
MCCAUSLAND PLACE
VITAL HEALTHCARE PROPERTY TRUST
|
INTERIM RESULTS 2022
|
22

Multi-stage development site in South West Sydney
VITAL ACQUIRED A PRE-COMMITTED GENESIS CARE CANCER CENTRE AND MULTI STAGE DEVELOPMENT SITE IN SYDNEY GROWTH CATCHMENT
~4.0%
2
Feb 2022A$52m
1
3%
40,000
sqm
UP TO
23,000 sqmA$24.6m
2,713 sqm
15 year
net lettable areaWALE
initial yield
for stage 1
settlementacquisition price &
development costs
annual rent reviews
additional GFA
site areaacquisition price
STAGE 1 – FUND-THROUGH DEVELOPMENT OVERVIEW
STAGES 2 & 3 – ADDITIONAL DEVELOPMENT SUMMARY
1
Excludes adjoining development land but includes fund-through construction costs for stage 1
2
After deducting ground rent costs and allowing for benefit of stamp duty savings via fund-through structure
Camden Rd
Hurley St
Cancer Cancer
CentreCentre
Mental Mental
HealthHealth
Health Health
FacilityFacility
VITAL HEALTHCARE PROPERTY TRUST | INTERIM RESULTS 2022 | 23

Developments

Development strategy & value-add
TARGETING 10–15% OF THE PORTFOLIO (BY VALUE) TO BE UNDER DEVELOPMENT
NorthWest has a market
leading development team
with an unmatched depth of
experience in the sector
Earnings &
capital growth
1
Development timing and therefore spend expected to be over a staged and lengthy period (at least 10 years)
Current focus on growth
catchments including
South East Queensland,
Sydney and New
Zealand
Strategy driven by
healthcare needs
analysis
FOCUSDEVELOPMENTS ARE KEY FOR:
In addition to immediate
financial benefits,
developments enable Vital
to continue to improve the
portfolio through:
Lowering average
building age (reduced
Capex)
Precinct and ambulatory
care strategies to meet
modern healthcare needs
Meeting tenant and
patient demand
particularly in light
of operating model
changes
CORE PART OF STRATEGY
$303.8m of committed
developments,
representing ~10% of
total Portfolio Value;
$161.4m of spend
remaining
~$1bn
1
of potential
development
opportunities identified
(subject to business
cases, due diligence and
approvals)
PIPELINE
Improving
the portfolio
Meeting the needs
of our operator
partners
VITAL HEALTHCARE PROPERTY TRUST
|
INTERIM RESULTS 2022
|
25

HY22 development milestones
1
Refer to slide 29 for more detail
2
Stabilised year 3 yield
3
Includes heads of agreement
Terms agreed with Evolution Healthcare
and Southern Cross for $74m of
expansions and upgrades to five
NZ Hospitals
1
.
A$96.5m Epworth Eastern
development partially completed.
Clinical floors 1–10 handed over in
November 2021; balance expected to
be handed over in early 2022.
Completion of ~A$24m Stage 1 of
Playford Health Hub. The development is
70% leased (by income) providing a yield on
cost of 6.8%
2
and also provides ~200 car
bays for the future Stage 2 development.
Progressions of design (commenced
in 2021) specialist medical centre in
Adelaide (Stage 2, Playford Health Hub).
This is ~55% pre-leased
3
. Construction is
targeted to commence late-2022 and to
be complete in late 2023.
MoU signed with Calvary Health Care
for new private hospital in Adelaide
(Stage 3, Playford Health Hub). Construction
is expected to commence in 2024.
Commencement of construction
for Stage 2 of Wakefield
Hospital redevelopment. Stage
2 is expected to cost ~$91.5m and
complete in late-2024. Stage 1
completed mid-2021 for $49.9m.
VITAL HEALTHCARE PROPERTY TRUST
|
INTERIM RESULTS 2022
|
26

Committed developments – Australia & New Zealand
DEVELOPMENTS ENHANCE EARNINGS GROWTH AND IMPROVE ASSET QUALITY
ALL VALUES SHOWN IN $MDESCRIPTION OF WORKSDEVELOPMENT
COST
SPEND
TO DATE
COST TO
COMPLETE
FORECAST
NET RETURN
FORECAST
COMPLETION DATE
STATUS
Epworth Eastern (VIC)New 14 storey tower incorporating 5 operating theatres, 60
beds, 7 levels of consulting and refurbishment of the existing
medical centre
A$96.5A$92.5A$4.05.3%Early-22Clinical levels (1–10) complete and leased to Epworth. Levels
11–14 due for staged completion across the 1H of CY22. Minor civil
works ongoing.
Eden Rehabilitation (QLD)Conversion of an existing rehabilitation ward to mental health
including 6 additional beds
A$4.8A$3.0A$1.85.8%TBAWorks paused pending tenant review due to Covid impacts.
Abbotsford Private (WA)47 beds, parking, therapy rooms and adminA$18.6A$7.0A$11.66.1%Mid-22Structure well advanced. Services installation commenced.
Belmont Private (QLD)48 new inpatient beds, 13 private practice consulting suites
and 70 new car parks
A$22.6A$7.3A$15.35.8%Late-22Internal refurb areas complete. Main structural works underway.
Total Australian Developments A$ A$142.5 A$109.8 A$32.7 5.5%
Total Australian Developments NZ$ NZ$151.5 NZ$116.7 NZ$34.8 5.5%
Wakefield Stage 2 (Wellington)Second stage of hospital rebuild delivering 8 operating
theatres, 42 beds, new Day Surgery Unit and additional
expansion capacity
NZ$91.5NZ$15.5NZ$76.05.6%Late-24Structural demolition complete. Design finalisation in progress.
Royston DSU (Hastings)New standalone two theatre day surgery unitNZ$8.8NZ$8.8NZ$0.06.0%Early-22Nearing completion with practical completion expected end of February.
Boulcott Hospital (Wellington)Two new theatres, PACU expansion and conversion of double
rooms to singles
NZ$7.7NZ$0.0NZ$7.76.2%Early-23Design work ongoing with lodgement of building permits expected in
early March.
Grace Hospital Stage 1
(Tauranga)
Fitout of two theatres, new endoscopy room, additional 10
beds and redevelopment of existing clinical areas
NZ$31.7NZ$1.0NZ$30.75.3%Mid-23Theatre fitout works commenced along with alterations to the day
surgery unit. Main works to be tendered mid-year.
Royston Hospital Stage 2
(Hastings)
Fitout of two theatres and reconfiguration of pre and post
operative clinical areas
NZ$6.3NZ$0.0NZ$6.35.3%Mid-22Minor demolition complete. Design work progressing.
Bowen Hospital OT5
(Wellington)
Fitout of one theatre, new sterile stores and expansion of
consulting suites
NZ$6.3NZ$0.4NZ$5.95.3%Mid-23Theatre fitout works commenced with balance of work out to tender.
Total New Zealand Developments NZ$152.3 NZ$25.7NZ$126.65.6%
Total Projects in NZ$ NZ$303.8NZ$142.4NZ$161.45.5%
31 December 2021 period end NZD/AUD exchange rate of 0.9411 adopted
VITAL HEALTHCARE PROPERTY TRUST
|
INTERIM RESULTS 2022
|
27

COMPLETED STAGE 1 MULTI-DECK CAR PARK & RETAIL
OVERVIEW OF STAGES 1–3
Stage 1: Retail precinct & multi-deck car park. Construction completed
and operational from end of 2021
Stage 2: ~6,500sqm Specialist Medical Centre. Construction Tender
Q2 2022
Stage 3: 120 Bed (staged) Private Hospital to be operated by Calvary
Healthcare & delivered in stages. Concept planning in progress
A$170m
8,000 sqm
Stage 1
complete
total projected cost
of all stages
1
of NLA to be delivered
in Stage 1 and Stage 2
in addition to the private
hospital
Playford Health Hub, Adelaide, South Australia
STAGED HEALTH PRECINCT UNDER DEVELOPMENT
S1
S1
S2
S2
S3
S3
Lyell McEwin
Public Hospital
Playford Health Hub
SITE CONTEXT & MASTERPLAN
1
This represents Vital's estimated investment. Tenants, particularly Calvary Healthcare, are expected to invest significant amounts in addition to this.
Artist’s impression
Artist’s impression
VITAL HEALTHCARE PROPERTY TRUST
|
INTERIM RESULTS 2022
|
28

~NZ$74m of new brownfield development funding approved
VITAL CONTINUES TO INVEST FURTHER INTO NEW ZEALAND
Highlights the strength of Vital’s relationships in the New Zealand market
Developments enhance condition and functionality of existing assets
Developments immediately accretive to earnings and value of assets
Works either direct result of existing demand, or future proofing for near term expansion requirements of operators
Further update on the previously approved new and expanded brownfield developments with
Evolution Healthcare and Southern Cross announced at Vital’s 2021 Annual Meeting:
VALUE (NZD)YIELDSCOPE
Wakefield Hospital
1
$28.75.3%(1) Shell for additional level for future expansion; (2) dedicated day surgery; and (3)
increased overall funding
Royston Hospital$6.35.3%Fitout of two shell theatres and expansion of admission and recovery areas
Royston Day Surgery
2
$0.75.9%Upgrade of second theatre
Bowen Hospital$6.35.3%Fitout of fifth theatre, upgrade to inpatient rooms, expansion of consulting and support areas
Grace Hospital
3
$ 31 . 75.3%Fitout of existing theatre shells, improved day surgery and expansion of inpatient wards
TOTAL$73.75.3%
Development summary
1
Stage 2 increase only
2
Additional scope to previous works
3
Operated in JV between Evolution Healthcare and Southern Cross
VITAL HEALTHCARE PROPERTY TRUST
|
INTERIM RESULTS 2022
|
29

Future
focus
Ko ngā tahu ā ō tapuwae inanhi, hei tauira mō āpōpō.
The footsteps we lay down in our past create the
paving stones on which we stand today.

ALL TARGETS UNDERWAY:
FY22 Sustainability targets and HY22 achievements
Continue to improve
diversity on the Board
and in Management
Focus on mentoring and
career progression
Encourage greater
community involvement
Continue existing
professional development
Establish baseline
environmental reporting
Meet distribution guidance
and AFFO target
Maintain prudent AFFO pay-
out ratio
Continue charitable and
community support programme
Extend and diversify debt
Participate in third-party
assessments through GRESB
and CDP
Improve our CDP score
Deploy sustainability initiatives with
key stakeholders including tenants
Continue to progress investigation
of additional solar installations
PeoplePracticePlaces
NWH released its first Sustainability Report for its global operations
including Vital. View the report at:
www.nwhreit.com/mailers/sustainability/nwh-sustainability-report.pdf
VITAL HEALTHCARE PROPERTY TRUST
|
INTERIM RESULTS 2022
|
31

Outlook & guidance
CONTINUED DELIVERY AND FOCUS ON EARNINGS GROWTH
Upgraded FY22 AFFO guidance
of at least 11.9 cpu; up at least
3.2% on FY21
Upgraded FY22 distribution
guidance of 9.75 cpu (annualised);
actual payments expected to be
8.5% above FY21
Conservative ~80% pay-out ratio
retained
Significant development pipeline

$303.8m committed

$161.4m remaining cost to complete

~$1bn
1
potential pipeline
opportunities identified
Further value-add acquisition
and development opportunities
being considered
Future asset recycling strategies
continue to be considered to
partially fund new developments
and acquisitions
Targeting maintaining weighted
average debt duration >4 years
Sustainability achievements
to be built on including ongoing
submissions to both CDP and
GRESB
1
Development timing and therefore spend expected to be over a staged and lengthy period (at least 10 years)
VITAL HEALTHCARE PROPERTY TRUST | INTERIM RESULTS 2022 | 32

Appendices

Adjusted funds from operations (AFFO)
CONSERVATIVE PAY-OUT RATIO
HY22H Y 21($) CHANGE(%) CHANGE
Operating profit before tax and other income27. 828.2(0.4)(1.5%)
Add/(deduct):
Current tax expense(4.4) (7.6) 3.2 42.6%
Current tax expense on net of gain on property disposals and lease incentive transaction - 3.4 (3.4) -
Incentive fee 6.8 3 .1 3.7 120.4%
Realised and unrealised fx on borrowings (net of tax)(0.1) 0.5 (0.6) 124.7%
Amortisation of borrowing costs 0.6 0.3 0.2 65.2%
Amortisation of leasing costs & tenant inducements 1.2 1.1 0 .1 12.5%
Strategic transaction expenses 0.3 - 0.3 -
IFRS 16 operating lease accounting(0.1) (0.1) (0.0) (20.9%)
Funds from operations (FFO) 32.2 29.0 3.2 11.0%
Add/(deduct):
Non-recurring corporate costs - - - -
Actual capex & leasing from continuing operations(0.1) (0.9) 0.7 8 5 .1 %
Adjusted funds from operations (AFFO) 32.0 28.1 3.9 14.0%
AFFO (cpu)5.915.870.05 0.8%
Distribution per unit (cpu)4.754.380.38 8.6%
AFFO pay-out ratio80%75 %
All values shown as NZ$m
Units on issue (weighted average, 000s)5 41. 9479.2
VITAL HEALTHCARE PROPERTY TRUST
|
INTERIM RESULTS 2022
|
34

Interest rate hedging profile
COST OF DEBT WELL HEDGED, MANAGING RISK
1
Drawn debt (excludes line fees on undrawn facility)
HEDGING MATURITY PROFILE ($A)
NOTE: Fixed rates exclude line fees and margin
0.00%
0.50%
1.00%
1.50%
2.00%
2.50%
3.00%
3.50%
0
50
100
150
200
250
300
350
400
450
Dec-21
Jun-22
Dec-22
Jun-23
Dec-23
Jun-24
Dec-24
Jun-25
Dec-25
Jun-26
Dec-26
Jun-27
Dec-27
Jun-28
Dec-28
Jun-29
VALUE ($M)
Maturity dateAverage interest rate
RATES31 DEC 202131 DEC 2020
Weighted average cost of debt
1
3 .14 %3.62%
Weighted average fixed rate
(excl line and margin)
2.94%3.01%
Weighted average fixed rate
duration
5.0 years5.9 years
% of drawn debt fixed45%64%
VITAL HEALTHCARE PROPERTY TRUST
|
INTERIM RESULTS 2022
|
35

Real estate returns
HEALTHCARE REAL ESTATE CONTINUES TO PERFORM STRONGLY AGAINST CORE PROPERTY INVESTMENT SECTORS
Returns by real estate asset class in Australia versus Vital’s real estate
level returns (non-compounding) year ended 31 December 2021
Vital continues to
outperform Retail and
Office real estate asset
classes in Australia over the
proceeding 1 year, 3 year
and 5 year periods.
Source: MSCI & Vital, December 2021
Returns shown are on a nominal, unlevered “all asset” basis (inclusive of development and transaction activity). Vital's returns include Australian and New Zealand Portfolio
VITAL HEALTHCARE PROPERTY TRUST
|
INTERIM RESULTS 2022
|
36
1 year3 year
OFFICERETAILINDUSTRIALVITAL
5 year1 year3 year5 year1 year3 year5 year1 year3 year5 year
9.0%
26.3%
57.4%
6.4%
-0.9%
-20%
0%
20%
40%
60%
80%
100%
0.9%
16.1%
28.2%
56.8%
88.3%
18.2%
40.7%
83.7%

Comparative returns
VITAL MAINTAINS LONG-TERM OUTPERFORMANCE VS BENCHMARK ON A TOTAL RETURN
1
BASIS
TOTAL RETURN
1
TO 31 DECEMBER 20211YR5YR (P.A.)10YR (P.A.)SINCE 2004 (P.A.)
2
Vital-0.9%13.2%16.3%13 . 7 %
S&P/NZX All Real Estate Index2.9%11.8%12.3%9.4%
S&P/NZX 50 Index-0.4%13.6%14.8%8.9%
Vital’s performance vs NZX REIT-3.8%1.4%4.0%4.3%
Vital’s performance vs NZX 50-0.5%-0.4%1.5%4.8%
0
100
200
300
400
500
600
700
800
900
1,000
Jun-05Jun-06Jun-07Jun-08Jun-09Jun-10Jun-11Jun-12Jun-13Jun-14Jun-15Jun-16Jun-17Jun-18Jun-19Jun-20Jun-21
S&P/NZX 50 Index
Vital
S&P/NZX All Real
Estate Index
Under-performance over last 12 months driven primarily by a high
Vital unit price (absolute and relative) on 31 December 2020
5.3% outperformance versus NZX REIT benchmark over last 24
months and 2.4% outperformance versus NZX 50
Outperformance against both the S&P/NZX All Real Estate Index
and S&P/NZX 50 Index since December 2004
Long-term outperformance highlights the defensive nature of
healthcare real estate compared to other real estate classes
Source: Forsyth Barr
1
Total returns measured by change in unit price plus post-tax distributions to 31 December 2021
2
S&P/NZX All Real Estate Index and S&P/NZX 50 Index data from 31 December 2004, being the
inception date of the NZX All Real Estate Index
VHP VS S&P NZX REAL ESTATE INDEX
VITAL HEALTHCARE PROPERTY TRUST
|
INTERIM RESULTS 2022
|
37

PRIVATE HOSPITALS – AUSTRALIA
17 hospitals (acute and specialty –
mental health, rehabilitation)
Four hospital operators
80% of AUS portfolio value;
77% of AUS rent
WALE: 18.9 years
6 assets, multiple tenants
14% of AUS portfolio value;
13% of AUS rent
WALE: 6.9 years
8 facilities (all in AUS )
2 operators
6% of AUS portfolio value;
10% of AUS rent
WALE: 14.5 years
AMBULATORY CARE – AUSTRALIA
AGED CARE – AUSTRALIA
~$2.2bn Australian portfolio overview
GEOGRAPHICALLY DISPERSED AUSTRALIAN PORTFOLIO CONTINUES TO PERFORM WELL
SUBSECTOR DIVERSITY (BY VALUE)
45%
35%
14 %
6%
H
O
S
P
I
T
A
L

8
0
%
O
T
H
E
R

2
0
%
AMBULATORY
CARE
SPECIALTY
HOSPITAL
AGED CARE
ACUTE
HOSPITAL
16.9 years
WALE
VITAL HEALTHCARE PROPERTY TRUST
|
INTERIM RESULTS 2022
|
38

~$0.8bn New Zealand portfolio overview
KEY NEW ZEALAND MARKET PERFORMING STRONGLY
PRIVATE HOSPITALS – NEW ZEALAND
9 hospitals (all acute)
6 hospital operators
87% of NZ portfolio value;
86% of NZ rent
WALE: 22.1 years
3 assets, multiple tenants
13% of NZ portfolio value;
14% of NZ rent
WALE: 8.1 years
AMBULATORY CARE – NEW ZEALAND
20.2 years
WALE
SUBSECTOR DIVERSITY (BY VALUE)
87%
13 %
H
O
S
P
I
T
A
L

8
7
%
O
T
H
E
R

1
3
%
AMBULATORY
CARE
ACUTE
HOSPITAL
VITAL HEALTHCARE PROPERTY TRUST
|
INTERIM RESULTS 2022
|
39

12
WESTERN
AUSTRALIA
NORTHERN

TERRITORY
SOUTH

AUSTRALIA
NEW SOUTH
WALES
TASMANIA
VICTORIA
QUEENSLAND
4
3
6
6
12
Investment properties
~$3BN PORTFOLIO OF HEALTHCARE REAL ESTATE COMPRISING 43 INVESTMENT PROPERTIES AND 2,800+ BEDS
AS AT 31 DECEMBER 2021
TENNYSON CENTRE,
ADELAIDE, SA
Western Australia (4)
Abbotsford Private Hospital
Hamersley Aged Care
Marian Centre
Rockingham Aged Care
South Australia (3)
Sportsmed Hospital, Clinic, Consulting & Office
The Tennyson Centre
Playford Health Hub – Retail & Carpark
Queensland (6)
Baycrest Aged Care
Belmont Private Hospital
Eden Rehabilitation
Palm Beach Currumbin Clinic
Tantula Rise Aged Care
The Southport Private Hospital
New South Wales (12)
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 Clinic
The Hills Clinic
Toronto Private Hospital
Auckland (5)
Apollo Health & Wellness Centre
Ascot Central
Ascot Carparks
Ascot Hospital & Clinics
Ormiston Hospital
Wellington (3)
Boulcott Hospital
Bowen Hospital
Wakefield Hospital
Northland (1)
Kensington Hospital
Bay of Plenty (1)
Grace Hospital
Hawke's Bay (2)
Napier Health Centre
Royston Hospital
Victoria (6)
Ekera Medical Centre
Epworth Eastern Hospital & Medical Centre
120 Thames Street
Epworth Camberwell
Epworth Rehabilitation Hospital
South Eastern Private Hospital
VITAL HEALTHCARE PROPERTY TRUST
|
INTERIM RESULTS 2022
|
40