Vital Infrastructure Property Trust · TSX:VITL.UN
Vital Infrastructure Property Trust — Northwest Healthcare Properties Real Estate Investment Trust — Investor Presentation (February 2020)
19 slides from Vital Infrastructure Property Trust's investor presentation, Feb 7, 2020
Slide 1: NWH REIT Update on Strategic Initiatives
NWH REIT UPDATE ON STRATEGIC INITIATIVES February 7, 2020
Slide 2: Disclaimer
DISCLAIMER This presentation provides a summary description of Northwest Healthcare Properties Real Estate Investment Trust (“NWH” or the “REIT”). This presentation should be read in conjunction with and is qualified in its entirety by reference to the REIT’s most recently filed financial statements
Slide 3: Executive Summary
EXECUTIVE SUMMARY ADVANCING GROWTH OF ASSET AUSTRALASIAN EUROPEAN MANAGEMENT PORTFOLIO STRATEGIC INITIATIVES: EXPANSION PLATFORM MANAGEMENT SCALING THIRD PARTY $2.9B (€2.0B) JV to European platform Advanced the sale of MANAGEMENT invest in European exceeds $1B in assets its directly held healt
Slide 4: Impact of Strategic Initiatives
IMPACT OF STRATEGIC INTITATIVES STRATEGIC INITIATIVES SOURCES AND USES PROVIDE A PATH TO Sources (millions) Uses (millions) Acquisitions $318 INVESTMENT GRADE Equity Raise $317 Acquisition Financing $256 Completed Debt Repayment $273 CREDIT METRICS AND IS Dispositions $235 Further Debt Repayment $21
Slide 5: European Joint Venture
EUROPEAN JOINT VENTURE €2.0B JOINT VENTURE PLATFORM Lower NWH equity requirement €200M (30%) NWH Ability to € 0.7 B equity deployed Reduced scale over 5 years cost of European capital € 1.3 B platform Target 65% LTV Increased management fees and promoted Equity Debt returns SEED PORTFOLIO Metrics €2
Slide 6: Significant Value Creation in Global Asset Manager
SIGNIFICANT VALUE CREATION IN GLOBAL ASSET MANAGER Available $10B OF GLOBAL Status AUM Capacity NWH Term Stabilized ($B) Ownership Fees ($M) ($B) CAPITAL Active Australian Core COMMITMENTS Hospital JV Active $3.4 $1.6 30% Perpetuity $20 DRIVING SIGNIFICANT Vital Active $1.6 Open 25% Perpetuity $25 V
Slide 7: UK Expansion Investment Highlights
UK EXPANSION INVESTMENT HIGHLIGHTS STRATEGIC FIT DEFENSIVE PORTFOLIO CHARACTERISTICS • Strategic fit: High quality health care infrastructure assets with triple net leases, 100% occupancy, long-WALE and annual rent indexation 100% 13 year • Geographic fit: Natural extension of European platform to a
Slide 8: UK Expansion: Tenant Profile
UK EXPANSION: TENANT PROFILE BMI IS A LEADING PROVIDER OF PRIVATE HEALTHCARE IN THE UK • BMI Healthcare Limited (“BMI”) has dominated the UK private acute hospital market controlling 28% of acute overnight beds, 16% of revenues and 14% of the market share in 2018 • 6,500+ consultant specialists offe
Slide 9: Australasian Portfolio Management: Simplification
AUSTRALASIAN PORTFOLIO MANAGEMENT: SIMPLIFICATION DIVESTING WHOLLY OWNED AUSTRALASIAN ASSETS SIMPLIFIES PLATFORM DIRECT INVESTMENT VITAL AUSTRALIAN JV NWH Ownership 100% 25% 30% Current $0.4B $1.6B $1.5B Asset Value Current 50% 50% 65% Leverage Change in -12* +10 Assets Impact of Australasian simpli
Slide 10: Australasian Portfolio Management: Life Science Expansion
AUSTRALASIAN PORTFOLIO MANAGEMENT: LIFE SCIENCE EXPANSION Growing on campus; adding life science NorthWest has agreed to acquire, as part of its Australian institutional JV the Burnet Tower Burnett Tower and Alfred Centre for $94M (~A$105M; closing Feb. 2020). The acquisition advances the REIT’s co-
Slide 11: Acquisitions
APPENDIX 1 ACQUISITIONS 10
Slide 12: Asset Profiles
ASSET PROFILES BMI The BMI The BMI The BMI The Cavell Huddersfield Edgbaston Lancaster Hospital Hospital Hospital Hospital Enfield, London (~18 km Huddersfield, West Edgbaston, Meadowside, Lancaster Location Location Yorkshire (~22km from Location Birmingham (~5km Location (~70km from from Central L
Slide 13: Asset Profiles (Continued)
ASSET PROFILES (CONTINUED) BMI The BMI St. Lincoln Edmonds Hospital Hospital Lincoln, Lincolnshire Bury St. Edmonds, Location Location Suffolk (~50km from (~22km from Leeds) Manchester) The base building was constructed in 1887, This private acute with extensions added hospital was built in in 1989
Slide 14: Asset Profiles (Continued)
ASSET PROFILES (CONTINUED) Parkklinic Bad Eindhoven, Bad Salzuflen Rothenfelde Netherlands Bad Rothenfelde, Location Eindhoven, Netherlands Bad Salzuflen, Location Location Germany Germany Median Parkklinik Bad The property comprises Acute care psychiatric Rothenfelde is a 216k 3,100 sqm of LFA over
Slide 15: UK Market Fundamentals
APPENDIX 2 UK MARKET FUNDAMENTALS 14
Slide 16: UK Market Overview
UK MARKET OVERVIEW LARGE, OPEN AND GROWING MARKET • The UK’s population (~67M) is second in size only to Germany’s among European nations, and is forecast to grow by 14% between 2018 and 2043 • The UK’s GDP (£2.83 trillion) also ranks second only to Germany’s • The UK’s overall and urban population
Slide 17: UK Healthcare Considerations
UK HEALTHCARE CONSIDERATIONS UK HEALTHCARE POLICY SUPPORTS INVESTMENT IN PRIVATE HEALTHCARE REAL ESTATE UK Healthcare Expenditure (2018) • As in Canada and other jurisdictions in which the REIT invests, a pillar of UK healthcare policy is publicly-funded universal coverage free at the point of need
Slide 18: Contact Information
CONTACT INFORMATION NORTHWEST HEALTHCARE PROPERTIES REIT Paul Dalla Lana, Chairman & CEO 416-366-2000 Ext. 1001 Shailen Chande, CFO 416-366-2000 Ext. 1002 17
Slide 19: Slide 19