Vital Infrastructure Property Trust · TSX:VITL.UN
Vital Infrastructure Property Trust — Northwest Healthcare Properties REIT — Q3 2023 Earnings Presentation
41 slides from Vital Infrastructure Property Trust's earnings presentation, November 2023
Slide 1: Northwest Healthcare Properties REIT Q3 2023
Northwest Healthcare Properties REIT Q3 2023 TSX: NWH.UN
Slide 2: Disclaimer
Disclaimer This presentation provides a summary description of Northwest Healthcare Properties Real Estate expenses (including estimated synergies resulting therefrom) and (x) contracted acquisition, Investment Trust (“NWH” or the “REIT”). This presentation should be read in conjunction with and is
Slide 3: Table of Contents
Table of Contents Northwest Overview 4 Property Portfolio & Partnerships 8 Recent Initiatives 17 Q3-23 Financial Performance 24 For Investors 33 Appendices 38 NWH.UN 3
Slide 4: Northwest Overview
1 | Northwest Overview NWH.UN 4
Slide 5: Northwest Healthcare Properties REIT is a healthcare property owner, asset manager and developer
Northwest Healthcare Properties REIT (TSX: NWH.UN) is a healthcare property owner, asset manager and developer (for long term ownership) positioned in key strategic markets NWH.UN 5
Slide 6: A Leader in Healthcare Real Estate
A Leader in Healthcare Real Estate • Exclusive focus on healthcare related real estate and partnerships in key strategic markets • Manages $10 billion+ in assets • Owns and manages a diverse portfolio of more than 229 high-quality, income-producing properties • Markets include Canada, the United Sta
Slide 7: Why Invest in Northwest?
Why Invest in Northwest? Northwest is the only owner of cure healthcare real estate on the TSX DEFENSIVE SECTOR HIGH DEMAND HIGH QUALITY PORTFOLIO EARNINGS GROWTH • Healthcare • Ageing demographics • Landlord of leading • 82.9% of the REIT’s is typically a non- and growing population private healthc
Slide 8: Property Portfolio and Partnerships
2 | Property Portfolio and Partnerships NWH.UN 8
Slide 9: Current Geographic Footprint
Current Geographic Footprint NETHERLANDS CANADA UK GERMANY USA Global Healthcare Markets: Northwest owns and manages real estate in 4 continents and 8 countries in 3 segments: Americas, Europe and Australasia BRAZIL AUSTRALIA NEW ZEALAND NWH.UN 9
Slide 10: Northwest's Diverse Healthcare Portfolio
Northwest's Diverse Healthcare Portfolio Focus on cure healthcare real estate, including: • General hospitals • Specialty hospitals • Outpatient and ambulatory care centres Berlin, Germany Toronto, Canada • Multi-tenant medical office buildings • Rehabilitation centres • Specialty clinics • Research
Slide 11: Strong Tenant Covenants and Partnerships
Strong Tenant Covenants and Partnerships • 2,000+ healthcare tenants. • Many triple net ("NNN") leases with large, best-in-class hospital operators or highly regarded healthcare practitioners • Long-term leases with a weighted average lease expiry (WALE) of 13.2 years, ensuring a stable and predicta
Slide 12: Tenant Relationships
Tenant Relationships Top 10 Tenants Represent 29% of Proportionate Rent TENANT REGION % # OF LOCATIONS Strategic Relationships 1 Rede D’or Americas 9.4% 7 • Rede D’Or (7 locations): 2 Nuffield Health Europe 5.1% 6 Largest integrated health care network in 3 Healthscope Limited(1) Australasia 3.9% 11
Slide 13: Long-Term Partnership with Epworth Healthcare
Long-Term Partnership with Epworth Healthcare Northwest has supported Epworth over 15+ years with expansion opportunities, advice and capital. Developments have added to the quality & value of assets, driving operational benefits & efficiencies that attract practitioners. Epworth Eastern Hospital, M
Slide 14: Diverse Property Portfolio in Key Strategic Markets
Diverse Property Portfolio in Key Strategic Markets The REIT owns and manages a high-quality healthcare portfolio in 8 countries AMERICAS EUROPE AUSTRALASIA1 MARKETS Canada USA Brazil Germany Netherlands UK Australia, NZ TOTAL MOB’s, Hospitals & MOB’s, Hospitals & Healthcare Facilities MOB’s, Hospit
Slide 15: The REIT's Global Asset Manager
The REIT’s Global Asset Manager Operating across the globe with fully integrated investment, development, asset management and property operations platforms, the REIT leverages over 300 employees across ten offices in eight countries. TOTAL CAPITAL AVAILABLE REIT PORTFOLIOS TERM COMMITMENT DEPLOYED
Slide 16: Case Study: Vital Healthcare Properties Trust (NZX-VHP)
Case Study: Vital Healthcare Properties Trust (NZX-VHP) The REIT owns a 28% interest in the only specialist healthcare landlord on the NZX and has 100% of the management rights. Vital's tenants include the largest three private hospital operators in New Zealand and six of the top ten private hospita
Slide 17: Recent Initiatives
3 | Recent Initiatives NWH.UN 17
Slide 18: Highlights – Q3 2023
Highlights – Q3 2023 Q3 2023 Highlights A number of key management initiatives have recently been completed, in the following areas: • Management and Governance • Refinanced Near-Term Debt Maturities • Australian Unit Sales (AUHPT) • Non-Core Asset Sales • Developments Completed PrairieCare Medical,
Slide 19: Management and Governance
Management and Governance On July 21, 2023, Northwest Announced: • Mr. Dale Klein non-Executive Chair of the Board (formerly Lead Independent Trustee). • Ms. Laura King, Trustee, Chair of the REIT’s Compensation, Governance and Nominating Committee. • Ms. Maureen O’Connell, Trustee, is appointed Cha
Slide 20: Refinanced Near-Term Debt Maturities
Refinanced Near-Term Debt Maturities DEBT FACILITY Balance (7-Nov) MATURITY INTEREST RATE July 2026 ($36.6M) Australasian Term Debt $69.8M 5.62% July 2028 ($33.2M) Australasian (AUHPT) Term Debt n/a2 n/a n/a Revolving Unsecured $125.0M Nov. 2024 8.75% Credit Facility Credit Facility – Non-Revolving
Slide 21: Australian Unit Sales (AUHPT)
Australian Unit Sales (AUHPT) • On July 6, 2023, the REIT entered into an agreement with the Australian Unity responsible entity of an Australian fund in which the REIT holds an investment (and other arm's length parties) to assist the REIT to Unit Sales and Redemptions divest its investment by Dece
Slide 22: Non-Core Asset Sales
Non-Core Asset Sales 2023 Non-Core Asset Sales Program • During the year, the REIT identified over $300 million of non-core assets for potential sale • To date, the REIT has divested or has under contract $180 Million of non- core property assets Source: Q3 2023 MD&A NWH.UN 22
Slide 23: Developments Completed – PrairieCare Inpatient Hospital
Developments Completed – PrairieCare Inpatient Hospital PrairieCare Brooklyn Park Inpatient Hospital, Brooklyn Park, Minnesota (September 2023) • PrairieCare serves over 20,000 patients annually and plans to add an additional 1,000 teens and young adults each year, addressing conditions such as depr
Slide 24: Q3 2023 Financial Performance
4 | Q3 2023 Financial Performance NWH.UN 24
Slide 25: Q3 2023 Snapshot
Q3 2023 Snapshot FINANCIAL HIGHLIGHTS: 30-SEP-23 31-DEC-22 VARIANCE Assets Under Management (1) $10.02 $10.88 $(0.86) Q3 Highlights: Gross Book Value (1) $7.83 $8.51 $(0.68) • Gross Leasable Area: 18.2 Million Sq. Ft. Debt - Declaration of Trust (1) $3.70 $3.86 $(0.15) • Occupancy: 96% Debt to Gross
Slide 26: Proportionate Income Statement
Proportionate Income Statement For the 3 Months ended September 30: CHANGE CHANGE C$ MILLIONS 2022 2023 • NOI Growth driven by inflationary rental ($) (%) indexation and rentalization Net Operating Income 77.0 82.8 5.8 7.5% of developments. Management Fee Income 6.0 11.5 5.5 91.7% Other Income 3.0 8
Slide 27: Proportionate Balance Sheet
Proportionate Balance Sheet As at September 30: C$ Millions 2022 2023 CHANGE ($) CHANGE (%) Investment Properties1 6,160.9 5,910.5 (250.4) (4.1%) Other Assets 490.6 392.6 (98.0) (20.0%) • Reduction predominately due to asset sales since Total Assets 6,651.5 6,303.1 (348.4) (5.2%) 30 September 2022 M
Slide 28: Diversified NOI by Geography and Asset Mix
Diversified NOI by Geography and Asset Mix Income from stable rent collections and long-term leases. Geography Asset Mix Q3 2023 Q3 2023 2% Life 22% Sciences Australasia 22% Americas 2% 62% 63% Q3 2022 51% 50% Q3 2022 Hospital and 35% 36% 27% Healthcare 28% Facilities MOB Europe Year-Over-Year Propo
Slide 29: Debt Maturity Profile
Debt Maturity Profile $50M non-revolving tranche The REIT is seeking approval was repaid in October to amend & extend its $125M convertible debenture due December 31, 2023 1,600,000 9% 1,400,000 7.44% 8% WEIGHTED AVERAGE INTEREST RATE 6.50% 7% 1,200,000 5.57% 5.34% 7.02% CANADIAN $000S 5.49% 6% 1,00
Slide 30: Lease Maturity Profile
Lease Maturity Profile Over 70% of the REIT’s leases mature after 2030 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 2023 2024 2025 2026 2027 2028 2029 2030 Thereafter Americas Europe Australasia Total Portfolio 2023 2024 2025 2026 2027 2028 2029 2030 THEREAFTER Americas 1.40% 8.90% 5.80% 6.80% 7.10% 11.10
Slide 31: Core Portfolio Metrics
Core Portfolio Metrics SUMMARY OF ASSETS AMERICAS EUROPE (1) AUSTRALASIA (2,3) CONSOLIDATED TOTAL (4) Asset Mix (5) MOB's 69% 52% 19% 49% Hospitals and Healthcare Facilities 29% 46% 78% 49% Life Sciences 2% 2% 3% 2% Number of Properties 90 69 70 229 GLA (Million Sq. Ft.) 6.7 5.5 6.0 18.2 Total Asset
Slide 32: Northwest and Vital - 2023 GRESB Results
Northwest and Vital - 2023 GRESB Results • Northwest achieved a 2nd place ranking in both the Standing Investments Benchmark and the Development Benchmark for globally listed healthcare participants, coming 2nd place (in both categories) to 1st place NZX-listed Vital Healthcare Property Trust (Vital
Slide 33: For Investors
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Slide 34: New Management Team
New Management Team Craig Mitchell Karen Martin Mike Brady CEO Interim CFO President Craig Mitchell has more than 20 years’ experience Karen Martin has over 30 years of senior executive Mr. Brady joined Northwest in 2006 and, before being specialising in the property industry in Australia. His exper
Slide 35: Why Invest in NWH.UN?
Why Invest in NWH.UN? 1. Global healthcare real estate supported by government investment and strong demographic trends 2. Management team and Global Asset Manager with deep healthcare real estate expertise 3. High-quality healthcare real estate properties and investments in eight leading global hea
Slide 36: Northwest Healthcare Properties REIT
Northwest Healthcare Properties REIT Ticker NWH.UN Listed Exchange TSX Distribution Payable (C$) $0.03 / Monthly Unit Price(1) $4.61 Market Capitalization (C$)(1) $1.13 Billion Distribution Yield(1) 7.8% 52-Week Trading Range(1) $3.89-$11.51 Volume Weighted Avg. Price (20-day VWAP)(1) $4.38 Average
Slide 37: Contact Information Thank You
Contact Information Craig Mitchell, CEO craig.mitchell@nwhreit.com Mike Brady, President mike.brady@nwhreit.com Karen Martin, Interim CFO karen.martin@nwhreit.com Andrew Greig, Investor Relations andrew.greig@nwhreit.com 416-366-2000 Ext. 2202 Thank You NWH.UN 37
Slide 38: Appendices
6 Appendices C2 northwest NWH.UN 38
Slide 39: Board of Trustees
Board of Trustees Dale Klein Independent Robert Baron Bernard Crotty Laura King Non-Executive Chair Trustee Trustee Trustee Dr. David Klein Maureen O’Connell Brian Petersen Trustee Trustee Trustee NWH.UN 39
Slide 40: Non-IFRS Measures Defined in Q3 2023 MD&A
Non-IFRS Measures Defined in Q3 2023 MD&A 1. FFO 8. Investment Properties on a proportionate basis 2. AFFO 9. Proportionate Management Fees 3. FFO per Unit 10. Interest Coverage 4. AFFO per Unit 11. Cash Flows from Operation Activities Attributable to Unitholders 5. AFFO Payout Ratio 12. Distributio
Slide 41: Investment Properties
Investment Properties LOCATION PROPERTIES GLA (SQ. FT.) OCCUPANCY (%) WALE (yrs) Canada 57 3,629,548 89.2% 5.3 USA 25 1,178,195 95.9% 8.4 Brazil 8 1,880,333 100.0% 16.9 Americas Total 90 6,718,254 93.4% 9.4 Germany 38 3,551,359 97.2% 16.1 Netherlands 17 1,236,531 94.7% 9.1 UK 14 671,883 100.0% 20.1
Northwest Healthcare Properties REIT — Q3 2023 Earnings Presentation on 6ix