Vital announces First Quarter Results

Dear Unit Holders
Despite significant market volatility over
recent months, we have continued to
deliver for Unit Holders through:
1. increasing interest rate hedging to
reduce Vital’s interest rate exposure with
62.3% of Vital’s drawn debt now fixed;
2. achieving a high GRESB score across
a range of measures demonstrating
sustainability efforts which should
enhance Unit Holder returns over
the medium-longer term; and
3. progressing value adding developments
across Australia and New Zealand.
In addition, Vital’s Unit Holders
continue to benefit from:
1. Vital’s resilient income with healthcare
spending less impacted by business
cycles or economic conditions; and
2. a rising Australian dollar versus the New
Zealand dollar with ~70% of Vital’s
assets and income in Australian dollars.
Unit performance
World share markets have been incredibly
volatile and declining over recent months
due to a combination of elevated inflation,
geopolitical concerns and increased
debt costs. Vital’s total return was -13.9%
over the 12 months ended 30 September
2022. Despite this and highlighting the
wider downturn in sharemarket prices, Vital
outperformed the NZX-REIT index which
declined by 19.9% over the same period.
Debt
Since 30 June 2022, Vital has increased
interest rate hedging coverage by over
A$250m to 62.3% of drawn debt
(pro-forma 30 September). This reduces Vital’s
exposure to movements in interest rates in
the current environment of elevated inflation
and increasing interest rates. The net impact
on Vital’s cash earnings from rising debt
costs is partially mitigated by ~80% of Vital’s
leases being linked to CPI. Vital’s balance
sheet gearing was 32.9% at 30 September
2022 compared with the 36.6% on 30
September 2021. Vital’s loan-to-value ratio
(LVR) was 35.4% at 30 September 2022
and the interest coverage ratio (ICR) was
3.2 times. Both provide significant headroom
under Vital’s banking facility compliance
which include not more than 55% for LVR,
and not less than 2.0 times for ICR.
Developments
Work continued on converting part of
Vital’s $2.0 billion potential development
pipeline into committed developments.
These developments are expected to be on
land Vital currently owns which is either not
income producing or low-income producing
and so are expected to further enhance
Vital’s longer-term returns. They also help us
provide the next generation of healthcare
assets for the benefit of our healthcare
tenants, their patients and the communities
that access these essential services.
Underlying earnings
Whilst labour shortages across Australia and
New Zealand are having a significant impact
on healthcare operators, the majority of Vital’s
tenants are in healthy financial circumstances.
99.6% of rent was collected for the quarter
ended 30 September 2022 reflecting the
resilience of our healthcare operators.
Vital’s returns are reported in New Zealand
dollars but ~70% of Vital’s assets and earnings
are from Australia in Australian dollars. As
a result, a weakening New Zealand dollar
versus the Australian dollar is a positive for
Vital’s financial performance and position
(all other things remaining equal).
Looking forward
Vital has a high-quality portfolio of healthcare
assets leased to premium healthcare operators
across Australia and New Zealand for a
weighted average lease term of 17.0 years.
This enviable portfolio provides Unit Holders
with a stable investment and a dependable
income stream. As a result, we remain
confident of delivering on our distribution
guidance of 9.75 cents per unit for this
financial year whilst retaining a conservative
pay-out ratio. Our core goal of growing
AFFO by of 2-3% per unit per annum over
the medium term remains unchanged.
Thank you for your ongoing support for Vital.
First Quarter Update
1 JULY – 30 SEPTEMBER 2022
FY23 DISTRIBUTION GUIDANCE
9.75 cpu
Meadowbrook Hospital
Aaron Hockly
Fund Manager
10 November 2022
VITAL HEALTHCARE PROPERTY TRUST, MANAGED BY NORTHWEST HEALTHCARE PROPERTIES MANAGEMENT LTD | FIRST QUARTER UPDATE FY23 | 1

PAYMENT DATE
15 DEC/2022
Ex date
30 Nov 2022
CASH
DISTRIBUTION
IMPUTATION
CREDITS
NTA
DRP DISCOUNT
2.4375 cpu
0.4822 cpu
$3.38
1.0%
GROWTH
2.6%
DRP
active
Q1 Distribution
3
All figures calculated by income. Figures may not sum due to rounding.
1
Pro-forma for interest rate transactions undertaken in October 2022.
2
Does not include line fees on undrawn funds.
Developments updateSustainability
Hedging position
Portfolio Overview
3
79%
SUB-SECTOR EXPOSURE
17 %
SUB-SECTOR EXPOSURE
4%
SUB-SECTOR EXPOSURE
71 %29%
AUSTRALIANEW ZEALAND
Proposed 6-level building within the Princess
Alexandra Hospital Precinct with provisions
for Day Surgery, Consulting Suites, Pharmacy,
Pathology and Radiotherapy. Design and
development approvals are progressing.
Stage 1 is a development of a 5,000m
2

Medical Office Building as part of a
new multi-staged health precinct with
provision for Diagnostics, GP Clinic, Day
Surgery and Consulting Suites. Design and
development approvals are progressing.
Extension of existing facility to house new
26 bed inpatient ward and stand-alone
endoscopy business unit. Early works are
underway and main works package is in
negotiation. Approximately 70% of the building
will be occupied by the existing tenant.  
Total hedged debt has increased by $295.4m. This
results in an increase in the hedged portfolio to 62.3% of
total debt outstanding, from 44.5% last quarter.
Vital has a diversified debt expiry profile, with over 65.7%
expiring after 2025. Vital’s next debt expiry is October 2023.
Woolloongabba
SOUTH BRISBANE, QLD
Coomera
GOLD COAST, QLD
Ormiston
SOUTH AUCKLAND, NZ
Since 30 June 2022 we have significantly
increased interest rate hedging.
The parent company of Vital’s manager, NorthWest,
has a new logo as shown here.
Vital’s manager has a new look. NorthWest continues to live
by its values of Challenges Make Us, People Move Us, We
Embrace the Big Picture, and We Grow from Diversity. The
new logo is meant to signify NorthWest’s brand promise of
Connecting Place and Possibility, for both its tenants and
increasingly for its institutional investor partners, such as Vital.
The new look embodies the boldness and confidence that reflect the
pioneering spirit NorthWest brings to managing the Vital portfolio.
17.0 years~$3.6bn
WEIGHTED AVERAGE
LEASE EXPIRY (WALE)
GEOGRAPHIC DIVERSITY
PORTFOLIO
VALUE
PRIVATE HOSPITALS
AMBULATORY CARE
AGED CARE
New logo
30 Sep 2022
1
30 Jun 2022Variance
Total Hedged
Debt
$749.2m$453.7m$295.4m
WACD
2
4.39%3. 73 %66bps
Percent of
Debt Hedged
62.3%44.5%1,780bps
In October 2022, Vital achieved a 5-star rating from
independent standards organisation GRESB (formerly known
as the Global Real Estate Sustainability Benchmark) among
other notable achievements.
Vital’s GRESB results include top quartile in:
Listed healthcare globally in "Performance” and
"Developments" in this category
Standing investments across healthcare peers globally
"Developments" in the Oceania region for listed entities
Construction has commenced for Stage 2 of the ~A$165
million Playford Health Hub in Adelaide, South Australia.
Stage 2 of the three-stage healthcare precinct will be a
A$51 million state-of-the-art Specialist Medical Centre.
The development will be South Australia’s first 6-star
Green Star registered Medical Office Building, and when
complete will be powered by 100% renewable energy.
Vital’s Macarthur Health Precinct in Campbelltown, NSW
has been registered with GBCA’s Green Star Communities
v1.1 tool and is targeting a 5 Star Green Star Communities
rating. The Precinct is the first health precinct in Australia
to have registered with Green Star Communities.
First "6-star Green Star" registered Medical
Office Building in South Australia
First "Green Star Communities"
Registered Health Precinct
During FY22, Vital and NorthWest joined
the New Zealand Green Building Council
and the Green Building Council of Australia
NorthWest released its first Sustainability Report for its
global operations including Vital. View the report at:
https://nwhreit.wpengine.com/wp-content/
uploads/2022/08/nwh-sustainability-report.pdf
VITAL HEALTHCARE PROPERTY TRUST, MANAGED BY NORTHWEST HEALTHCARE PROPERTIES MANAGEMENT LTD | FIRST QUARTER UPDATE FY23 | 2VITAL HEALTHCARE PROPERTY TRUST, MANAGED BY NORTHWEST HEALTHCARE PROPERTIES MANAGEMENT LTD | FIRST QUARTER UPDATE FY23 | 3

YEAR-TO-DATE UPDATE
Year-to-date Financial Performance (unaudited)
Q1 UPDATE
Like-for-like Financial Performance (unaudited)
Financial Position (unaudited)
For the period
3 months to
30 Sep 22
$000s
3 months to
30 Sep 21
$000s
Variance
$000s
Change
%
Gross property income 42,227 33, 778
Property expenses (6,065) (5,153)
Net property income 36,162 28,625 7,537 26.3%
Corporate expenses (1,629) (700)
Management fees (base & incentive) (8,312) (5,919)
Net finance expenses (8,380) (6,678)
Operating profit 17,841 15,328 2,513 16.4%

Non-operating gains/(losses)
Fair value gain/(loss) on investment property 9,854 8,039
Fair value gain/(loss) on derivatives 4,606 2,938
Realised and unrealised gain/(loss) on foreign exchange (795) (85)
Profit/(Loss) before income tax 31,506 26,220 5,286 20.2%
Current and deferred taxation (6,866) (3,854)
Profit/(Loss) for the period attributable to Unit Holders of the Trust 24,640 22,366 2,274 10.2%
Funds from Operations (FFO) 19,346 16,049 3,297 20.5%
Adjusted Funds from Operations (AFFO) 19,296 15 , 9 76 3,320 20.8%
AFFO per unit 2.96 3.06 (0.09)-3.3%
Weighted average units on issue (000s) 651,169 521, 270129,89924.9%
Average NZD/AUD exchange rate 0.8975 0.9534
For the period
3 months to
30 Sep 22
$000s
3 months to
30 Sep 21
$000s
Variance
$000s
Change
%
Gross property income 30,911 30,276
Property expenses (4,176) (4,529)
Like-for-like net property income26,73525,747 988 3.8%
Net property income from acquisitions 3,557 -
Net property income from disposals - 12 5
Net property income from developments 5,027 3,139
Straight-line rent (588) (519)
Non-recurring items (15) 133
Foreign exchange 1,446 -
Net property income36,16228,625 7,537 26.3%
As at
30 Sep 22
$000s
30 Jun 22
$000s
Variance
$000s
Change
%
Assets
Investment properties 3,611,707 3,339,169 272,538 8.2%
Other assets 38,314 60,665
Liabilities
Borrowings 1,201,982 1,018,777 183,205 18.0%
Other liabilities 233,191 215 ,181
Debt to gross assets32.9%30.0%3.0%
Total Unit Holders' funds 2,214,848 2,165,876 48,972 2.3%
Units on issue (000s) 656,147 649,155
Net tangible assets ($/unit)3.383.340.041.2%
Period end NZD/AUD exchange rate0.87780.9037
62.3% of Vital’s drawn debt is now fixed
Important note: The information in this investor update is general information only and does not contain all information necessary to make an investment decision. The financial
information in this investor update has not been audited. No representation or warranty, express or implied, is made to the accuracy, adequacy or reliability of information in this
update, including the financial information. This investor update contains forward looking statements which are inherently susceptible to uncertainty. Vital’s actual results may vary
materially from those expressed or implied in this investor update. The Manager is under no obligation to provide any update to information included in this update, including as a result
of the audit process.
NTA and AFFO per unit positively impacted by rising AUD vs NZD
VITAL HEALTHCARE PROPERTY TRUST, MANAGED BY NORTHWEST HEALTHCARE PROPERTIES MANAGEMENT LTD | FIRST QUARTER UPDATE FY23 | 4VITAL HEALTHCARE PROPERTY TRUST, MANAGED BY NORTHWEST HEALTHCARE PROPERTIES MANAGEMENT LTD | FIRST QUARTER UPDATE FY23 | 5

DevelopmentDevelopment work being undertaken
Development
cost
4
Spend
to date
Forecast
completion
date

Australia

(A$m)

(A$m)
Abbotsford Private (WA)47 beds, parking, therapy rooms and admin18.617. 0Early-23
Belmont (QLD)48 new inpatient beds, 13 private practice
consulting suites and 70 new car parks
22.617. 3Late-22
Playford Health Hub
Stage 2 (SA)
Specialist Medical Centre - Radiology,
Oncology, Radiotherapy & Consulting
39.310.4Early-24
Total Australian Developments80.644.7

New Zealand

(NZ$m)

(NZ$m)
Wakefield Stage 2 (WGN)Second stage of hospital rebuild delivering 8
operating theatres, 42 beds, new Day Surgery
Unit and additional expansion capacity
91. 536.3Late-24
Ormiston Stage 1 (AKL)Stage 1 - 3 level expansion of existing hospital3 7. 95.9Mid-2024
Grace Stage 1 (TRG)Fitout of two theatres, new endoscopy
room, additional 10 beds and
redevelopment of existing clinical areas
31 . 76.9Late-23
Endoscopy Auckland (AKL)4 dedicated endoscopy procedure rooms,
15 car parks, reception/waiting areas
22.60.9Late-23
Boulcott (LH)Two new theatres, PACU expansion and
conversion of double rooms to singles
7. 70.0TBC
Royston Stage 2 (HAS)Fitout of two theatres and reconfiguration
of pre and post operative clinical areas
6.34.6Late-22
Bowen OT5 (WGN)Fitout of one theatre, new sterile stores
and expansion of consulting suites
6.32.6Late-22
Total New Zealand Developments204.15 7.1
Total Developments in $NZ
5
295.9108.0

Fund-through Developments
Campbelltown
Stage 1 (NSW)
New cancer centre54.413 . 0Early-24
Tasman Medical Centre (TAS)Specialist Ambulatory care / private hospital98.611 . 9Late-24
Mt Eliza (VIC)Aged care conversion works28.513 . 2Early-23
Total Australian Fund-through developments181. 538.0
Total Fund-Through Developments in $NZ
5
206.843.3
4
Excludes land where applicable.
5
A$ converted at 30 September 2022 spot rate 0.8778.
Committed Developments
vhpt.co.nz
VITAL HEALTHCARE PROPERTY TRUST, MANAGED BY NORTHWEST HEALTHCARE PROPERTIES MANAGEMENT LTD | FIRST QUARTER UPDATE FY23 | 6