Vital Infrastructure Property Trust · TSX:VITL.UN
Vital Infrastructure Property Trust — NorthWest Healthcare Properties REIT — Merger or Acquisition (January 2019)
20 slides from Vital Infrastructure Property Trust's merger presentation, Jan 31, 2019
Slide 1: $1.2 Billion Australian Hospital Portfolio Acquisition
$1.2 Billion Australian Hospital Portfolio Acquisition January 31, 2019
Slide 2: Disclaimer
DISCLAIMER This presentation contains forward-looking statements. These statements generally can be identified by the use of words such as “plans”, “expects”, “is expected to,” “does not expect”, “scheduled”, “estimates”, “intends”, “anticipates”, “does not anticipate”, “projects”, “believes”, or va
Slide 3: Situation Update
SITUATION UPDATE NWH HAS AGREED On November 12, 2018, Healthscope Limited (“HSO” or “Healthscope”) announced that TO ACQUIRE A Brookfield had been granted access to a period of exclusive due diligence (ending December 21st) following receipt of a revised proposal, which was subsequently extended t
Slide 4: Investment Highlights
INVESTMENT HIGHLIGHTS CORE HEALTHCARE INFRASTRUCTURE IN MAJOR MARKETS Transformational 11 property, $1.2BN transaction solidifies the REIT as the leader in Australian healthcare real estate NORWEST Highly complimentary to NWH’s existing portfolio Deepens relationship with Australia’s 2nd large
Slide 5: Healthscope Overview
HEALTHSCOPE OVERVIEW THE REIT EXPECTS TO Healthscope is Australia’s second largest private hospital operator and a leading MAINTAIN EBITDAR provider of pathology services in New Zealand, Malaysia and Singapore COVERAGE IN EXCESS OF 2.2X IN THE IMMEDIATE TERM Hospitals New Zealand Pathology Corporate
Slide 6: Healthscope Property Acquisition Portfolio
HEALTHSCOPE PROPERTY ACQUISITION PORTFOLIO The Portfolio acquired represents half of Healthscope’s freehold hospital property assets and generated ~32% of Healthscope’s FY18 Hospital Operating EBITDA Portfolio locations Portfolio breakdown1 Licensed beds by location Licensed beds by hospital type SA
Slide 7: Corporate Impact: Proforma Portfolio Metrics
CORPORATE IMPACT: PROFORMA PORTFOLIO METRICS NOI BY REGION ASSET COMPOSITION BY INVESTMENT PROPERTY VALUE Further increases exposure to attractive Australian market Acquisition will increase hospital weighting by ~11% to 62% and decrease weighting from MOBs / other to 38% Current1 Post acquisiti
Slide 8: Northwest Australasian Portfolio Impact
NORTHWEST AUSTRALASIAN PORTFOLIO IMPACT ~$3.2BN portfolio of healthcare real estate comprised of 70 properties in Australia and New Zealand Strong Pro Forma Portfolio Metrics AUSTRALIA NORTHERN 99.4% 18.1 yr TERRITORY Occupancy WALE 1 QUEENSLAND WESTERN AUSTRALIA 10 1 96.2% 4 of rents have structure
Slide 9: Financial Impact
FINANCIAL IMPACT ATTRACTIVE PROPERTY FUNDING PLAN LEVERAGING EXISITING THE HSO PORTFOLIO FUNDAMENTALS IN PLACE CAPITAL RELATIONSHIPS ACQUISITION PRESENTS BOTH 5.0% initial yield supported Total portfolio purchase price NWH currently manages an IMMEDIATE AFFO by strong underlying of ~$1.2BN, ex
Slide 10: Investment Thesis and Highlights
INVESTMENT THESIS AND HIGHLIGHTS DEFENSIVE PORTFOLIO WITH STRONG ORGANIC GROWTH AND DEVELOPMENT UPSIDE Strategic $1.2Bn Transaction • Unique opportunity to acquire a Portfolio of 11 high quality, major market hospitals Solidifies NWH’s AUS solidifying the REIT as the landlord of choice in Australian
Slide 11: Appendices
A P P E N D I C E S 10
Slide 12: Acquisition Portfolio Overview
ACQUISITION PORTFOLIO OVERVIEW The Portfolio being acquired comprises 11 assets with initial rent of $60 million. NWH has committed to $525 million in brownfield expansions and capital projects over 10 years. Operating Property Name State / Territory Local Government Area Hospital Type Licensed
Slide 13: Asset Profiles
ASSET PROFILES Norwest Private The Melbourne Brisbane Private Newcastle Private Hospital Clinic Hospital Hospital Sydney, NSW Melbourne, VIC Brisbane, QLD Newcastle, NSW Location Location Location Complete (~35km from CBD) (~4 km from CBD) (~1km from CBD) (~9 km from CBD) Built in 2009, Norwest is a
Slide 14: Asset Profiles (Continued)
ASSET PROFILES (CONTINUED) John Fawkner Griffith The Sydney Clinic The Hills Private Private Hospital Rehabilitation Hospital Hospital Melbourne, VIC Adelaide, SA Sydney, NSW Sydney, NSW Location Location Location Complete (~8 km from CBD) (~12 km from CBD) (~8km from CBD) (~30 km from CBD) Original
Slide 15: Asset Profiles (Continued)
ASSET PROFILES (CONTINUED) Lady Davidson Hunter Valley Darwin Private Private Private Hospital Hospital Sydney, NSW Newcastle, NSW Darwin, NT Location Location Location (~21km from CBD) (~12 km from CBD) (~15km from CBD) Originally built in 1965, the Purpose-built in 1988, it Built over a number of
Slide 16: Australasian Healthcare - Real Estate Outlook
AUSTRALASIAN HEALTHCARE - REAL ESTATE OUTLOOK STRONG PERFORMANCE EXCELLENT RISK ADJUSTED RETURNS Institutionalization of healthcare real estate. ~120 bp of spread compression between healthcare RE and the All Property Index since 2008 Low volatility through the economic cycle. Healthcare RE was
Slide 17: Australasian Healthcare – Private Hospital Outlook
AUSTRALASIAN HEALTHCARE – PRIVATE HOSPITAL OUTLOOK Private Hospital Industry Private hospitals provide a wide range of services and are an integral part of the Australian health system. 1,322 Total public and # Private hospitals 624 private hospitals, 2015 # Beds 31,774 Income $ 13,895 million 47% %
Slide 18: Australian Healthcare – System Overview
AUSTRALIAN HEALTHCARE – SYSTEM OVERVIEW Population Coverage Funding Payors Regulation Services 23.8 Primary care Total population (millions of people), Outpatient specialist 2015 Australian care Universal public US$ 90 billion Government and Council of Australian Hospital care health insurance (6.7%
Slide 19: 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 18
Slide 20: Slide 20
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