Vital Infrastructure Property Trust · TSX:VITL.UN
Vital Infrastructure Property Trust — Northwest Healthcare Properties REIT — Q1 2023 Earnings Presentation
37 slides from Vital Infrastructure Property Trust's earnings presentation, June 2023
Slide 1: Q1 2023 Investor Update
Northwest Healthcare Properties Q1 2023 Investor Update Presented by: Employee Full Name
Slide 2: Disclaimer
Disclaimer This presentation provides a summary description of Northwest times at which, or by which, such performance or results will be and records on file with regulatory bodies. Although the REIT has no Healthcare Properties Real Estate Investment Trust (“NWH” or the achieved, and readers are ca
Slide 3: Overview
Overview © 2023, Northwest Healthcare Properties REIT Q1 2023 Investor Update 3
Slide 4: Focused Healthcare Real Estate Investment Partner
Focused Healthcare +70% Global Gateway City Exposure Real Estate Investment Partner NWH AT A GLANCE 18.6M 233 $10.8B Toronto São Paolo Square Feet Properties Total Assets(2) 96.6% 13.6 5.5% Sydney Occupancy Year WALE IFRS Cap Rate Phoenix ~$2.0B $0.80 Market Annualized Capitalization(1) Distribution
Slide 5: Established Relationships with Leading Healthcare Operators
Focused Healthcare Established Relationships with Leading Healthcare Operators Real Estate Investment Partner • Global scale, local relationships Partner of choice for leading operators • Defensive operating fundamentals Proportionate NOI Diversification(3) Cure focus underpinned by government fundi
Slide 6: Quarterly Highlights
Earnings & Net Asset Value Debt Metrics Quarterly Highlights Annualized AFFO/Unit 57.6% 56.1% $0.87 54.2% $0.85 +20% 48.8% 47.7% The REIT anticipates AFFO per $0.73 48.5% 50.0% 46.4% Unit increasing by approximately 42.5% 20% as a result of: 38.2% $0.68 • Full quarter impact of hedging arrangements
Slide 7: Earnings Stabilization
Earnings Stabilization Considering the in-place hedges and incremental initiatives underway, the REIT anticipates AFFO per unit increasing by approximately 20% on an annualized basis over the course of 2023 Completed Anticipated Transactions Hedging Impact Global JV Formation Non-Core Asset Disposit
Slide 8: Hedging Overview
Hedging Overview Implementation of hedging program increases fixed rate debt exposure while reducing interest expense and providing earnings stability UK Term Loan – Floating to Fixed Hedge US Term Loan – Floating to Fixed Hedge Interest Savings Interest Savings Floating Rate Hedged Rate Floating Ra
Slide 9: Global Non-Core Dispositions
Global Non-Core Dispositions Planned dispositions optimize global portfolio while generating ~$150M of capital that can be deployed accretively through opportunistic acquisitions, further deleveraging or unit buybacks Americas Europe Australasia Dispositions by Country ($M) $77M Est. $75M 46% Est. $
Slide 10: Defensive Underlying Portfolio
Defensive Underlying Portfolio Operating Metrics Diversification 83% ~97% ~14 Yr 8 >2,000 Inflation Indexed Portfolio Occupancy WALE Countries Tenants Rents Diverse tenants encompass hospitals operators, rehabilitation clinics, life Stable sciences and individual practitioners Operating Fundamentals
Slide 11: Rent Indexation is a Partial Offset to Rising Rates
Rent Indexation is a Partial Offset to Rising Rates The REIT’s international portfolio is characterized by a long WALE of ~16 years and 98% indexation which minimizes the impact of the inflationary environment. International Portfolio Indexation Canadian Portfolio Metrics • Due to the long duration
Slide 12: Q2 2023 – UK JV
Q2 2023 – UK JV Portfolio Metrics Timeline & JV Metrics • 2020: 10 hospital portfolio acquired for ~$620M 100% 100% at a weighted average cap rate of ~6% Of rents indexed to Occupancy • 2021: Aspen acquisition and restructuring inflation Regional JV Formation initiatives generated fair value uplift.
Slide 13: H2 2023 – US JV
H2 2023 – US JV Illustrative Metrics* Opportunity ~96% 24 1.1M 8 Yr 92% Occupancy Assets Sq. Ft. GLA WALE Indexation • Opportunity to expand global asset management platform to a dynamic US market generating significant fees and value High Quality Portfolio creation • Targeting a partnership with an
Slide 14: Financial Highlights
Financial Highlights © 2023, Northwest Healthcare Properties REIT Q1 2023 Investor Update 14
Slide 15: Proportionate Income Statement
PROPORTIONATE For the quarter ended March 31 INCOME C$M 2022 2023 % change STATEMENT Net Operating Income 65.8 82.3 25.1% Driven by 4.4% SPNOI growth, US expansion, AFFO/unit decreased sequentially as a Management Fee Income 19.4 21.8 12.2% and normal course acquisitions result of higher interest ra
Slide 16: Proportionate Balance Sheet
PROPORTIONATE As of March 31 BALANCE SHEET C$M 2022 2023 % change Investment Properties 5,397.4 5,201.9 -3.6% Assets held for sale - 985.0 NM Other Assets 665.3 519.3 -22.0% Total Assets 6,062.7 6,706.2 10.6% Mortgages, Loans and Convertible Debentures (2,956.8) (3,348.1) -13.2% Liabilities related
Slide 17: Evolution of Asset Management Platform
Evolution of Asset Management Platform Look through ownership decreases to 50% on completion of the UK & US JV with further reduction towards a target of ~27% expected upon completion of the non-core sales and regional JV initiatives Historical Chart of AUM and Ownership Base Fees CAGR of ~22% Retur
Slide 18: Global Asset Manager Overview
Global Asset Manager Overview ~$11.5B of global capital commitments drive significant value creation in the REIT’s asset manager TOTAL DEPLOYED & AVAILABLE NWH Active $B STATUS CAPACITY COMMITTED CAPACITY OWNERSHIP TERM Australian Core $125M Active $3.4 $3.3 $0.1 30% Perpetuity Hospital JV Australia
Slide 19: Global Healthcare Trends
Global Healthcare Trends © 2023, Northwest Healthcare Properties REIT Q1 2023 Investor Update 19
Slide 20: Why Invest in Healthcare Real Estate
Why Invest in Healthcare Real Estate Delivering Superior Risk Adjusted Returns $3 Trillion ‘niche’ healthcare real Excellent demand fundamentals Defensive characteristics; estate market with growing indexation delivering growth demand • Supportive demographic trends with growing & ageing populations
Slide 21: Healthcare Trends Impact on Healthcare Real Estate
Healthcare Trends Impact on Healthcare Real Estate Healthcare trends are driving real estate opportunities. Aging Outpatient / Operator Increasing Increased Population Urbanization Home Care Consolidation Asset Size Funding Needs Hospitals Positive Positive Limited impact Positive Positive Positive
Slide 22: Northwest's Focus
Northwest’s Focus Cure Care Higher Acuity Lower Acuity Healthcare precincts drive NWH Focus long-term value creations through: Hospital Ambulatory Care MOB Life Sciences Skilled Nursing/ Assisted Independent & Outpatient Aged Care Living Living • Higher value tenants & retention • Higher rent growth
Slide 23: Investment Activity
Investment Activity © 2023, Northwest Healthcare Properties REIT Q1 2023 Investor Update 23
Slide 24: Consolidated Investment Activity
Consolidated Investment Activity 2022 Transactions T YPE REGION C$M US Portfolio Acquisition Acquisition US 776 Normal Course Acquisitions Acquisition Various 340 TOTAL 1,116 Germany 2021 Transactions HIGHLIGHT ED T RANSACT IONS T YPE REGION C$M Netherlands MOB Acquisition NL 176 Australian Unity Ac
Slide 25: Committed Developments
Committed Developments The REIT is leveraging its significant expertise and experience within the industry to deliver an additional ~$511M of value enhancing projects to its portfolio. The REIT’s development pipeline of $2B drives future growth. ANT ICIPAT ED EST IMAT ED PROJECT COST TO PRE-LEASED •
Slide 26: Portfolio Overview
Portfolio Overview © 2023, Northwest Healthcare Properties REIT Q1 2023 Investor Update 26
Slide 27: Asset Mix by Region and Segment
Asset Mix by Proportionate NOI Diversification Region and Segment • On a proportionate basis hospitals account for 63% of Net Operating income • Increasing focus on healthcare infrastructure, including acute/post Detailed Segment Breakdown acute hospitals and related buildings AUS NZ BRL CAD GER NL
Slide 28: Strategic Relationships and Tenant Diversification
Strategic Relationships and Tenant Diversificaton Top 10 Tenants by Gross Rent(4) Strategic Relationships Allowing for Best-in-Class Performance T ENANT REGION % GROSS RENT 1 Healthscope Limited AUS 10.7% • Alberta Health Services (6 Locations): Largest provincial healthcare provider to 2 Rede D’or
Slide 29: Case Study: Epworth Eastern Hospital, Melbourne
Case Study Epworth Eastern Hospital, Melbourne • Non-for-profit private healthcare group that raises funds to purchase advanced medical equipment, fund research and provide best possible care to Epworth Eastern Hospital, Melbourne patients 2003-05 2014-17 2017-21 • Epworth eastern is a leading hospi
Slide 30: Investment Opportunity
Investment Opportunity Slide 31 option © 2023, Northwest Healthcare Properties REIT Q1 2023 Investor Update 30
Slide 31: Northwest Overview
Northwest Overview Global Healthcare Real Estate Investment Partner Global Dynamic Capital Capital Relationships Allocation Accretive Acquisition NWH.UN Strategic Operator Opportunities Partnerships Regional LISTED Brownfield Operating Development Platforms TSE Opportunities Healthcare Long Term Pre
Slide 32: Environmental, Social and Governance
Environmental, Social and Governance NWH is committed to creating a more sustainable future through the implementation of a comprehensive ESG program underscored by four key pillars resulting in key 2022 commitments: Inclusive Company Thriving Partners Strong Communities Healthy Planet Building for
Slide 33: Investor Factsheet
Investor Factsheet Ticker NWH.UN Listed Exchange TSX Distribution Payable Monthly 54.6% Other Income/ Distribution Type 45% Return on Capital/ 0.4% Capital Gain Unit Price (May 11, 2023) $7.94 Market Capitalization ~$2.0B Distribution Yield 10.1% 52-Week Trading Range $7.78-$13.42 Volume Weighted Av
Slide 34: Notes
Notes 1. Based on NWH.UN’s closing unit price of $7.94/unit as of May 11, 2023. 2. Based on total assets under management of NWH with Vital Trust on a fully consolidated basis including post-quarter acquisitions. 3. The pie chart fully reflects NOI on a proportionate basis factoring in the REIT’s lo
Slide 35: Non-IFRS Measures Defined in Q1 2023 MD&A
Non-IFRS Measures Defined in Q1 2023 MD&A 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.Interest Coverage 11.Cash Flows from Operation Activities Attributable to
Slide 36: Contact Information
Contact Information Northwest Healthcare Properties REIT Paul Dalla Lana, Chairman & CEO pdl@nwhreit.com 416-366-2000 Ext. 1001 Shailen Chande, CFO shailen.chande@nwhreit.com 416-366-2000 Ext. 1002 © 2023, Northwest Healthcare Properties REIT Q1 2023 Investor Update 36
Slide 37: Thank You
Thank You © 2023, Northwest Healthcare Properties REIT www.nwhreit.com
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