Vital Infrastructure Property Trust · TSX:VITL.UN
Vital Infrastructure Property Trust — Northwest Healthcare Properties REIT — Q1 2024 Earnings Presentation
43 slides from Vital Infrastructure Property Trust's earnings presentation, May 15, 2024
Slide 1: Q1 2024 Financial Results Presentation
Northwest Healthcare Properties REIT Q1 2024 Financial Results Presentation May 15, 2024 TSX: NWH.UN St. John of God Private Hospital, Australia
Slide 2: Disclaimer
Disclaimer This presentation provides a summary description of Northwest Healthcare Properties Real Estate local real estate conditions remaining strong, interest rates remaining at current levels, (viii) Investment Trust (“NWH” or the “REIT”). This presentation should be read in conjunction with an
Slide 3: Presenters and Contents
Presenters Contents Craig Mitchell CHIEF EXECUTIVE OFFICER Northwest & Healthcare Real Estate 4 Q1 24 Results 7 Q1 24 Highlights 8 Stephanie Karamarkovic CHIEF FINANCIAL OFFICER Q1 24 Financial Performance 9 Q1 24 Property Performance 14 Q1 24 Capital Management 19 Mike Brady PRESIDENT Dispositions
Slide 4: About Northwest
Bremer Str. 2, Germany Hospital Caxias, Brazil Glenmore Professional Centre, Canada About Northwest Northwest Healthcare Properties REIT (TSX: NWH.UN) owns, manages, and develops real estate exclusively focusing on tenants who are operators in healthcare, research, life sciences and education, posit
Slide 5: Why Invest In Northwest?
Cambrian Centre, Canada Landsberger Allee 44, Germany Hospital do Coracao do Brasil, Brazil Why Invest In Northwest? 1 High quality globally diversified healthcare real 4 Investor, tenant and operator relationships provide estate portfolio. long-term revenue stability. 2 Multiple initiatives underwa
Slide 6: Why Healthcare Real Estate?
Why Healthcare Real Estate? Northwest focuses on the cure segment of the healthcare real estate spectrum, a defensive asset class that provides attractive risk adjusted returns, driven by an aging population. Growing Growing need Sustained Shift of care to Increased M&A Transition demand for for lif
Slide 7: Q1 24 Results
Hutt Valley Health Hub, New Zealand Q1 24 Results NWH REIT | Q1 2024 FINANCIAL RESULTS PRESENTATION | 7
Slide 8: Q1 Highlights
Macarthur Health Precinct Stage 1, Australia Q1 24 Highlights $200M 5.4% of non-core asset sales (sold or SPNOI growth for Q1 2024 over the under contract) & sale of unlisted comparable prior year period(2) securities in 2024 to date(1) Strengthened ~570k sf of new and renewed leasing, Northwest Exe
Slide 9: Q1 24 Financial Performance
Prins Hendriklaan 376, Netherlands Q1 24 Financial Performance NWH REIT | Q1 2024 FINANCIAL RESULTS PRESENTATION | 9
Slide 10: Q1 2024 Financial Snapshot
Stationspark 400-490, Netherlands Q1 2024 Financial Snapshot March 31, December 31, Financial Highlights Variance $ Variance % 2024 2023 Assets Under Management 9.6 9.9 (0.3) (3.0%) Gross Book Value(1) 7.4 7.6 (0.2) (2.6%) Debt(1) 3.5 3.6 (0.1) (2.8%) Debt to Gross Book Value(1) 47.7% 47.7% - - Debt
Slide 11: Proportionate Income Statement (three months ended March 31)
Proportionate Income Statement (three months ended March 31) Proportionate Basis March 31, 2024 March 31, 2023 Change C$ Millions IFRS Basis Adjustments(1) Proportionate Proportionate ($) (%) 5.4% Basis(1) Basis(1) SPNOI growth(3), partly offset Net Operating Income 95.5 (12.1) 83.3 82.3 1.0 1.3% by
Slide 12: Proportionate Balance Sheet
Proportionate Balance Sheet December 31, Proportionate Basis March 31, 2024 2023 Change C$ Billions IFRS Basis Adjustments(1) Proportionate Proportionate Basis(1) Basis(1) ($) (%) Investment Properties(2) 6.7 (1.2) 5.5 5.7 (0.2) (3.9%) $164M Completed non-core asset sales Other Assets during the qua
Slide 13: NAV Bridge (QoQ)
NAV Bridge (QoQ)(1) $71.7M Property revaluation loss for the quarter $ 10.86 ( 0.30 ) ( 0.12 ) ( 0.08 ) $ 10.36 Global 1.72 Manager 1.72 9.14 8.64 Q4 2023 FV Adjustments to IP FX Adjustments Other Q1 2024 Notes: (1) As defined in Q1 2024 MD&A. Expressed as $/unit. All values shown on a consolidated
Slide 14: Q1 24 Property Performance
Grace Hospital, New Zealand Q1 24 Property Performance NWH REIT NWH REIT | Q1 2024 | Q1 2024 FINANCIAL FINANCIAL RESULTS RESULTS 14 PRESENTATION || 14 PRESENTATION
Slide 15: Northwest Snapshot
Northwest Snapshot 5.4% Secured Rental Growth Indexed to inflation SPNOI(1)(2) 13.2 5th consecutive year of 13+yr WALE WALE (Years) Secure rental revenue stream 7th consecutive year of >96% 96.5% occupancy Occupancy Strong tenant relationships Parkside Hospital, United Kingdom 98% 4th
Slide 16: Net Operating Income
NET OPERATING INCOME BRIDGE ($M)(1) Net Operating Income 1.3% growth (including FX) / 0.5% (excluding FX) NOI Growth of 1.3% from development and rent reviews, offset by dispositions 90 1.2 0.0 4.7 3.9 0.0 83.3 Rent Reviews 82.3 0.6 84% CPI, CPI-linked and fixed reviews. 80 SPNOI growth of +5.4%
Slide 17: Lease Maturity Profile
Lease Maturity Profile(1) 90% 80% 70% Lease maturity in 60% Brazil attributed to Hospital Sabara 50% (Sep-24). Discussions are 40% well advanced. 30% 20% 10% 0% 2024 2025 2026 2027 2028 2029 2030 2031 Thereafter North America Brazil Europe Australasia Total 2024 2025 2026 2027 2028 2029 2030 2031 Po
Slide 18: Leasing: Healthscope Australia Update
Hospital e Maternidade. Brazil Leasing Healthscope Australia Update Background Healthscope (HSO) are a critical provider of healthcare services and the 2nd largest private hospital operator in Australia Currently working with industry and government to increase revenue rates from private insurer
Slide 19: Q1 24 Capital Management
Barrie Primary Care Campus, Canada Q1 24 Capital Management NWH REIT | Q1 2024 FINANCIAL RESULTS PRESENTATION | 19
Slide 20: Debt Maturity Profile
9% 2025 debt maturities to be addressed Debt Maturity Profile through normal course refinancings and proceeds from asset sales. Northwest’s debt maturities 1,800,000 9% as at March 31, 2024(1). 7.62% 1,600,000 8% 6.77% 6.19% Effective weighted average 1,400,000 7% interest rate. Weighted average Int
Slide 21: Interest Rate Hedging Profile
Interest Rate Hedging Profile Cost of Debt is well hedged, managing risk. HEDGING MATURITY PROFILE(1) 1,600 6.00% March 31, December 31, Rates 2024 2023 1,400 5.00% Weighted Average Cost of Debt 6.19% 6.19% 1,200 4.00% CANADIAN $000S 1,000 Weighted Average Fixed Rate 5.29% 5.54% 800 3.00% Weighted A
Slide 22: Dispositions Completed
Prins Hendriklaan 376, Netherlands Dispositions Completed NWH REIT | Q1 2024 FINANCIAL RESULTS PRESENTATION | 22
Slide 23: Dispositions
Dispositions TOTAL DISPOSITIONS Disposition Proceeds ($M) YTD FY24, the REIT achieved the following: Region Period Proportionate Consolidated Investment Properties $184M $15M North America Q1-24 163.4 163.4 Fair value of total assets sale of unlisted securities Australasia Q1-24 0.5 1.8 sold or unde
Slide 24: FY24 Outlook
2-144m1g-Exterior bridge-2021-08-06.jpg FY24 Outlook NWH REIT | Q1 2024 FINANCIAL RESULTS PRESENTATION | 24
Slide 25: 2024 Areas of Focus
Dalbergstr. 22, Germany 2024 Areas of Focus 1 Maximize value for our unitholders. Continue to surface value embedded within our 2 portfolio. 3 Continue to strengthen our executive teams while at the same time managing our G&A. 4 Continue to improve investor engagement. 5 Become an institutional-qual
Slide 26: Northwest Healthcare Properties REIT - Summary
Jerry Coughlan Health & Wellness Centre, Canada Northwest Healthcare Properties REIT - Summary Ticker NWH.UN Listed Exchange TSX Distribution Payable (C$) $0.03 / Monthly Unit Price(1) $5.19 Market Capitalization (C$)(1) $1.28 Billion Distribution Yield(1) 6.94 % 52-Week Trading Range(1) $3.89-$8.12
Slide 27: Contact Information
Contact Information Craig Mitchell, CEO craig.mitchell@nwhreit.com Mike Brady, President mike.brady@nwhreit.com Stephanie Karamarkovic, CFO stephanie.karamarkovic@nwhreit.com Andrew Greig, Investor Relations andrew.greig@nwhreit.com 416-366-2000 Ext. 2202 NWH |REIT NWH REIT | Q1 2024 Q1 2024 FINANCI
Slide 28: Appendix
68 St. Asaph Street, New Zealand Appendix NWH REIT | Q1 2024 FINANCIAL RESULTS PRESENTATION | 28
Slide 29: Northwest's Strategic Healthcare Property Platform
Northwest's Strategic Healthcare Property Platform Core Preserve, Build and Grow Competencies Investment Development Asset Management Management Management Wholly Owned Fee By The Reit Generating Funds Management JV’s INVESTMENTS Direct Property Unlisted Ownership Public Institutional Companies JVs
Slide 30: Deep Connections With Key Operating Partners
Deep Connections With Key Operating Partners Northwest has deep relationships with the biggest brands in health and health sciences across its regions. NWH REIT | Q1 2024 FINANCIAL RESULTS PRESENTATION | 30
Slide 31: Development Strategy (Vital Healthcare Property Trust)
Development Strategy (Vital Healthcare Property Trust) Northwest has a market leading development team in ANZ with an unmatched depth of experience. Meeting the needs of our Earnings and capital growth Enhancing the portfolio operator partners PIPELINE1 NZ $512m of committed developments with ~NZ$21
Slide 32: Top 10 Tenants
Top 10 Tenants The REIT’s 10 largest tenants for the three months ended March 31, 2024. Top 10 tenants represent 29% of Proportionate Rent The REIT's five largest tenants include: Tenant Region % # of locations 1 Rede D'Or, Brazil: The largest integrated health care network in Brazil 1 Rede D'Or Bra
Slide 33: NOI Is Strongly Diversified By Regions & Asset Mix
NOI Is Strongly Diversified By Regions & Asset Mix Income from stable rent collections and long-term leases. REGIONS ASSET MIX Q1 2024 Q1 2024 18% 1% Life 32% Brazil Sciences North 16% America 33% 2% 65% 63% Q1 2023 Q1 2023 29% 29% Hospital and 35% 34% Healthcare 22% Europe Facilities MOB Australasi
Slide 34: Investment Properties
Dundas Centre Medical, Canada Investment Properties GLA (Sq. Ft.) Occupancy Location Properties AUM(1) WACR(2) (%) WALE (Yrs) (‘000) Brazil Total 8 0.8 7.5% 1,880 100.0% 16.4 Canada 48 1.1 - 3,153 89.0% 5.4 USA 20 0.5 - 1,019 95.8% 7.6 North America Total 76 1.6 6.7% 4,172 90.7% 6.0 Germany 38 - 3,5
Slide 35: 2023 GRESB ESG Real Estate Assessment
2023 GRESB ESG Real Estate Assessment Globally Listed Standing Investments 1ST Place 2ND Place Healthcare: Benchmark Development 1ST Place 2ND Place Benchmark Global Healthcare Development 1ST Place 3RD Place (Listed & Unlisted): Benchmark 4-Star ESG 4-Star ESG Rating Rating Northwest believes ESG B
Slide 36: Case Study: Capital Lite Investment Strategy (Vital Healthcare Property Trust)
Palm Beach Currumbin Clinic, Australia Case Study: Capital Lite Investment Strategy (Vital Healthcare Property Trust) Leveraging our experience to increase value: Asset-lite business models have been associated with better return on assets, lower profit volatility and greater adaptability in an ever
Slide 37: Case Study: Vital Healthcare Property Trust (NZX:VHP)
Case Study: Vital Healthcare Property Trust (NZX:VHP)(1) Northwest owns a ~28% interest in the only specialist healthcare landlord on the NZX and retains 100% of the management rights. NT 4% 12% ~$0.8bn QLD 15 PROPERTIES 8% (NZ) WA SA 22% NSW 27% Royston Hospital, New Zealand NZ 23% VIC ~$1.9bn Vita
Slide 38: Case Study: Commitment to ESG
Macarthur Health Precinct Stage 1, Australia Case Study: Commitment to ESG Completion of 6-star Green Star rated building Project Overview Northwest Healthcare Properties, as manager of Vital Trust, acquired the development rights for a ~6.9 acre site in Sydney, Australia (2022) A master planned
Slide 39: Case Study: Jerry Coughlan Health & Wellness Centre
Jerry Coughlan Health & Wellness Centre, Canada Case Study: Jerry Coughlan Health & Wellness Centre Project Overview Design and construction of a purpose built, four-storey medical office and ambulatory care hybrid facility, comprising 67,300sf of healthcare accommodation 4 high volume operating
Slide 40: Case Study: Epworth Healthcare, Melbourne Australia
Case Study: Epworth Healthcare, Melbourne Australia Northwest has supported Epworth for over 15+ years with expansion opportunities, advice and capital. Developments have added to the quality and value of assets, driving operational benefits and efficiencies that attract practitioners. Not-for-pro
Slide 41: Experienced Management Team
Experienced Management Team Craig Mitchell, CEO Tracey Whittall, COO Craig Mitchell has more than 20 years’ experience Prior to joining Northwest in 2024, Tracey specializing in the property industry in Australia. His was COO at Flexiti, a leading financial services company previous roles include Ex
Slide 42: Experienced Board Of Trustees
Experienced Board Of Trustees Northwest's strong governance framework ensures diversity is considered in determining optimal board composition. Northwest's experienced Board of Trustees functions independently of management, ensuring effective governance practices are followed. NWH REIT | Q1 2024 FI
Slide 43: Non-IFRS Measures
Sabara Hospital, Brazil Non-IFRS Measures 1. FFO 2. AFFO 3. FFO per Unit 4. AFFO per Unit 5. AFFO Payout Ratio 6. EBITDA 7. Adjusted EBITDA 8. Investment Properties on a Proportionate Basis 9. Proportionate Management Fees 10. Distributions 11. Net Asset Value (“NAV”) 12. Same Property NOI (“Same Pr
Northwest Healthcare Properties REIT — Q1 2024 Earnings Presentation on 6ix