Vital Healthcare Property Trust · NZX:VHP
Vital Healthcare Property Trust — Shareholder Meeting (November 2014)
43 slides from Vital Healthcare Property Trust's shareholder meeting presentation, Nov 20, 2014
Slide 1: Annual Meeting of Unit Holders
ANNUAL MEETING OF UNIT HOLDERS CREATING CAPACITY TO MEET DEMAND 20 November 2014
Slide 2: Meeting Agenda
MEETING AGENDA Introductions Chairman’s address Chief Executive Officer’s address Questions Resolution Voting Close of meeting Refreshments 2
Slide 3: Board of Directors
BOARD OF DIRECTORS Graeme Horsley MNZM Chairman & Independent Director Claire Higgins Independent Director Andrew Evans Independent Director Bernard Crotty Director Paul Dalla Lana (apology) Director
Slide 4: In Attendance
IN ATTENDANCE Management team David Carr - Chief Executive Officer Stuart Harrison - Chief Financial Officer Trustee, legal and audit representatives Matthew Band - Trustees Executors Andrew Dick - Deloitte Annie Steel - Harmos Horton Lusk 4
Slide 5: Chairman's address
Chairman’s address
Slide 6: Chairman's Highlights
CHAIRMAN’S HIGHLIGHTS Creating capacity to meet demand Delivered to investors a full year 2014 cash distribution per unit of 7.9 cents Strong performance in core portfolio of Australian assets Solid operational and portfolio improvements Year on year distributable earnings growth Strategy
Slide 7: 10 Year Total Return Performance
10 YEAR TOTAL RETURN PERFORMANCE 7 Source: Bloomberg, Craigs Investment Partners. Total returns (capital gain plus income) as at 30 June 2014.
Slide 8: Unit Price Performance & Key Portfolio Activities
UNIT PRICE PERFORMANCE & KEY PORTFOLIO ACTIVITIES Post Australian portfolio acquisition 8
Slide 9: Timeline
Ee TIMELINE 1 I I l I Jun 1999 Dec 2010 2011/2012 2012/2014 Nov 2014 Begin trading Capital raise and Northwest acquires ~A$130m invested Unit price hits all acquisition of the management and committed time high of $1.58 A$174m portfolio rights to brownfield developments & ~A$70m on acquisitions
Slide 10: Vital's Healthcare Real Estate Universe
VITAL’S HEALTHCARE REAL ESTATE UNIVERSE 10
Slide 11: Long Term Strategy
LONG TERM STRATEGY Expert focus in the healthcare real estate sector Low-risk, medium-return investment characteristics Leading developer, manager and investor in Australasian healthcare real estate Long term relationship based approach with our tenants and operators Pursue appropriate opp
Slide 12: Strategic Focus for FY15
STRATEGIC FOCUS FOR FY15 Focus on medium term lease expiry event and asset repositioning strategies Value-add redevelopment opportunities and capital recycling Investigation of acquisition opportunities to deliver scale and diversification benefits Continued sound balance sheet management 12
Slide 13: 2015 Distribution Guidance
2015 DISTRIBUTION GUIDANCE Sustainable platform 13
Slide 14: Chief Executive Officer's address
Chief Executive Officer’s address
Slide 15: Agenda
AGENDA Creating long term value Financial result review Healthcare sector drivers Portfolio overview Development and acquisition update Looking ahead 15
Slide 16: Creating long term value
Creating long term value
Slide 17: Strategic Value Drivers
STRATEGIC VALUE DRIVERS Successful execution on ‘sum of parts’ Management Aligned / Stable / Experienced / Credible / Capable Brownfield Sustainable Stabilised developments Capital & long term Acquisitions portfolio (capacity Treasury earnings & expansion) value New 30-year lease Completed four
Slide 18: Financial result review
Financial result review
Slide 19: Financial Summary
FINANCIAL SUMMARY Strong operating performance driving financial outcomes +9.0% Gross rental income growth (pre currency) $37.4m Net profit after tax (+7.8%) $34.7m Net distributable income (NDI) (+23.1%) 10.8% Increase in NDI per unit 19 7.9cpu Cash distribution delivered in line with guidance
Slide 20: Treasury Capital Management
TREASURY CAPITAL MANAGEMENT Business well capitalised, supported by committed long term partners A$ 100m Additional new facility BNZ Introduction diversifies capital funding partners 5.66% Weighted average cost of debt 4.1 Year weighted average facility term 20
Slide 21: Treasury Capital Management
TREASURY CAPITAL MANAGEMENT Strong balance sheet with capital to deploy 21
Slide 22: Healthcare sector drivers
Healthcare sector drivers
Slide 23: Fundamental Drivers of Healthcare
FUNDAMENTAL DRIVERS OF HEALTHCARE Macro demands driving supply 23
Slide 24: Private Health Insurance in Australia
PRIVATE HEALTH INSURANCE IN AUSTRALIA Hospital treatment coverage in Australia (insured persons) quarterly total 36 quarters of consecutive growth 24 Source: Quarterly PHIAC data to 30 June 2014
Slide 25: Portfolio overview
Portfolio overview
Slide 26: Portfolio Review
PORTFOLIO REVIEW Core portfolio in great shape $ 613.1m Investment portfolio value $15.2m Portfolio revaluation gain (+2.5%) 30 year lease Mercy Ascot 15.1years WALT 2.6% Average rent increase 26 99.3% Occupancy As at 30 June 2014
Slide 27: Portfolio Diversification
PORTFOLIO DIVERSIFICATION 24 properties comprising over 1,500 hospital beds and 72 operating theatres NT QLD 4 WA 1 SA 1 NSW 6 VIC NZ 5 6 TAS 1 27 As at 1 November 2014
Slide 28: Development and acquisition update
Development and acquisition update
Slide 29: Hurstville Private Hospital Sydney
HURSTVILLE PRIVATE HOSPITAL SYDNEY Photograph taken December 2013 29
Slide 30: Hurstville Private Hospital Sydney
HURSTVILLE PRIVATE HOSPITAL SYDNEY Photograph taken May 2014 30
Slide 31: Hurstville Private Hospital Sydney
HURSTVILLE PRIVATE HOSPITAL SYDNEY Photograph taken August 2014 31
Slide 32: Hurstville Private Hospital Sydney
HURSTVILLE PRIVATE HOSPITAL SYDNEY Photograph taken October 2014 32
Slide 33: Hurstville Private Hospital Sydney
HURSTVILLE PRIVATE HOSPITAL SYDNEY Architect’s impression of the completed development Direction that the previous 4 photographs were taken from 33
Slide 34: The Marian Centre Psychiatric Hospital Acquisition
THE MARIAN CENTRE PSYCHIATRIC HOSPITAL ACQUISITION Located in the established medical precinct of Subiaco 34
Slide 35: The Marian Centre Psychiatric Hospital Acquisition
THE MARIAN CENTRE PSYCHIATRIC HOSPITAL ACQUISITION Acquisition details Acquired for A$13.5m on an initial yield of 8.5% Currently a 31-bed stand-alone private psychiatric hospital New 20 year net lease to Healthe Care Annual CPI reviews + 10-yearly to market Western Australia has the highe
Slide 36: The Marian Centre Development Overview
THE MARIAN CENTRE DEVELOPMENT OVERVIEW Immediate commitment to A$10.8m brownfield project Increase bed numbers from 31 to 66 and refurbish existing ward accommodation Design allows for a second stage development as demand requires New lift and lobby, dining area and provision of additional c
Slide 37: Value Add Development Opportunities
VALUE ADD DEVELOPMENT OPPORTUNITIES BROWNFIELD PIPELINE CREATES CAPACITY FOR OPERATORS 24 month forecast ~A$85m 37
Slide 38: Looking ahead
Looking ahead
Slide 39: Looking Ahead
LOOKING AHEAD Strategy Strong foundation to consider wider healthcare real estate opportunities delivering scale and diversification Healthcare Positive long term fundamentals, constrained capacity creating trends opportunities Portfolio Emphasis on medium term lease expiry event and maintaini
Slide 40: Questions
Questions Please state your name and whether you are a Unitholder or a Proxy holder
Slide 41: Resolution
Resolution
Slide 42: Disclaimer
DISCLAIMER This presentation has been prepared by Vital Healthcare Management Limited (the "Manager") as manager of the Vital Healthcare Property Trust (the "Trust"). The details in this presentation provide general information only. It is not intended as investment or financial advice and must not
Slide 43: Thank you
Thank you 43
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