Annual Report 2024
Continuing to enhance our resilience
Contents
About Vital and Northwest | 4 |
Overview of Vital | 6 |
FY24 Key Events | 10 |
Short, Medium and Longer | |
Term Progression | 12 |
Manager's Report | 14 |
Financial Summary | |
& Portfolio Metrics | 18 |
Asset Allocation | 19 |
Australian Portfolio Overview | 20 |
New Zealand Portfolio Overview | 22 |
Completed Developments | 24 |
Committed Developments | 30 |
Sustainability | 38 |
Our Board | 56 |
Our Executive Team | 58 |
Corporate Governance | 60 |
Financial Statements | 68 |
Vital's Structure | 116 |
Directory | 119 |
All values in this report are in NZ dollars unless stated otherwise.
As part of its sustainability efforts, hard copy Annual Reports will no longer be mailed unless specifically requested by Unit Holders. As with previous results, the full Annual Report will be emailed to Unit Holders and will be available on the NZX and be posted on Vital's website: https://www.vitalhealthcareproperty.co.nz/financial-results/. This initiative will save approximately 252,000 pages of printing per annum and reduce our greenhouse gas emissions both through reducing printing and mailing.
Investors who would like to receive a printed Annual Report can request one by calling 0800 225 264 (toll free from within NZ), emailing enquiry@vhpt.co.nz or mailing a request to: Northwest Healthcare Properties Management Limited, PO Box 6945, Victoria Street West, Auckland.
ANNUAL REPORT 2024 | 3
AWARDS & RECOGNITION
2023 GRESB SECTOR LEADER
SILVER AWARD 2024
FY24 HIGHLIGHTS
~$251m*
divestments completed
~$197m
developments completed reducing amount remaining to be spent on committed developments to $138m
$2.69
NTA per unit
9.75cpu
Distributions paid to Unit Holders
* Disposal Value
4 |VITAL HEALTHCARE PROPERTY TRUST
Vital is an NZX listed property trust which owns ~$3.2billion of healthcare property in New Zealand
and Australia.
Vision
To be Australia and New Zealand's leading listed healthcare property fund.
Mission
Deliver stable and growing total Unit Holder returns, including an attractive risk-adjusted income distribution, majority sourced from healthcare real estate.
ANNUAL REPORT 2024 | 5
Northwest (Australia and New Zealand) is the manager of Vital, with over 50 professionals in the region. We have offices in Auckland, Melbourne and Sydney.
We value
Hard work, integrity, collaboration, drive, flexibility, team work, fun and results.
TSX listed owner and manager of $12.4 billion of healthcare property across four continents.
Vision
Be the leading global diversified healthcare real estate company.
Mission
Provide best in-class real estate solutions to the healthcare industry and deliver exceptional shareholder value to investors.
Values
E XC E L L E N C E
Delivering exceptional outcomes
I N T E G R I T Y
Doing what's right
PARTNERSHIP
Succeeding together
6| VITAL HEALTHCARE PROPERTY TRUST
Overview of Vital1
WESTERN
AUSTRALIA
4%
$145m 5.3% 98%
NET PROPERTY INCOME | WEIGHTED AVE | PORTFOLIO |
CAP RATE | OCCUPANCY |
1 All numbers quoted on this page relate to income producing properties only and exclude strategic land holdings.
NORTHERN TERRITORY
SOUTH
AUSTRALIA
9%
QUEENSLAND
11%
NEW SOUTH
WALES
22%
VICTORIA
23%
3%
TASMANIA
ANNUAL REPORT 2024 | 7
28%
9.5years 18.3years
AVERAGE | WALE |
BUILDING AGE |
8| VITAL HEALTHCARE PROPERTY TRUST
Key Numbers
9.75 | 3.7% | ~$2.2b | ||||
cpu | ||||||
FY25 DISTRIBUTION | LIKE-FOR-LIKE NET | COMMITTED AND | ||||
GUIDANCE | PROPERTY INCOME | POTENTIAL DEVELOPMENT | ||||
GROWTH OVER FY24 | PIPELINE | |||||
Tenant Diversification
% of Rent
Aurora Healthcare | 20% | 21% | 20% |
Healthe Care Surgical | 16% | ||
Epworth Healthcare | 16% | ||
Evolution Healthcare | 14% | 1% | |
1% | |||
Southern Cross | 3% | 2% | |
3% | |||
16% | |||
Burnside | 3% | ||
3% | |||
Mercy Ascot | 3% | ||
3% | |||
GensisCare | 2% | ||
I-Med Radiology Network | 1% | 14% | |
16% | |||
Health NZ / Te Whatu Ora | 1% | ||
Other | 21% |
ANNUAL REPORT 2024 | 9
2.1% | 39.1% | |
DISTRIBUTION 10-YEAR CAGR | BALANCE SHEET GEARING | |
FY14 - FY24 |
Sub-sector Diversification
% of Value
Acute Hospitals | 57% |
Specialty Hospitals | |
(mental health & rehabilitation) | 23% |
Ambulatory Care | 20% |
Macarthur Health Precinct, NSW
(Artist's Impression)
20%
Y | ||||||||||
R | ||||||||||
O | ||||||||||
T | ||||||||||
A | % | |||||||||
L | ||||||||||
U | 0 | |||||||||
2 | ||||||||||
B | ||||||||||
M | E | |||||||||
R | ||||||||||
A | C | A | ||||||||
23%
L | |||||
A | |||||
T | |||||
I | |||||
P | |||||
S | |||||
O | |||||
H |
8
0%
57%
10 |VITAL HEALTHCARE PROPERTY TRUST
FY24 Key Events
Q1
AUGUST 2023
- Toy car donation to Christchurch Hospital
SEP TEMBER 2023
- Opening of redeveloped Abbotsford Private Hospital
- Toy car donation to Starship Foundation, Auckland
- Gut Foundation Event Sponsor (Gut Feelings 2023 - A healthy mind takes guts!)
- Property Council NZ conference property tour of RDX, Queensland
Donation to Christchurch Hospital (via the Maia Health Foundation)
JULY 2023
Q2
OCTOBER 2023
• Recognised as 2023 Sector Leader for Healthcare listed entities globally by GRESB
NOVEMBER 2023
• Belmont Private Hospital expansion official opening
• Vital joined Starship Foundation as a corporate partner
• Dr Michael Stanford re-elected as an Independent Director
• Bowen Hospital redevelopment complete
Opening of expansion of Belmont Private Hospital, QLD
1 including land