FY23 Annual Results Presentation
10 AUGUST 2023
Artist Impression of RDX
Contents
Overview of Vital | 3 |
FY23 highlights | 4 |
Financial results and capital management | 7 |
Portfolio and divestments | 12 |
Developments | 17 |
Future focus | 22 |
Appendices | 24 |
5 largest assets and asset groupings | 26 |
Additional portfolio and development information | 32 |
Additional financial information | 40 |
Presenters
Aaron Hockly
Fund Manager & SVP
Michael Groth
Chief Financial Officer
Richard Roos
Exec. Director, Portfolio
Chris Adams
Exec. Director, Projects
All amounts are in NZD unless otherwise shown | VITAL HEALTHCARE PROPERTY TRUST | ANNUAL RESULTS 2023 | 2 |
Overview of Vital1
VITAL IS THE ONLY SPECIALIST HEALTHCARE LANDLORD LISTED ON THE NZX
WHY INVEST IN VITAL
17.8 years
WALE
~$3.4bn
4 51 PROPERTIES
(AUS & NZ)
5.3%
LIKE-FOR-LIKE,
SAME PROPERT Y NET PROPERT Y INCOME GROWTH2
N T
12%
5%
Q L D
WA7%
SA24%
N SW
23% V I C
~$2.4bn TAS
30 PROPERTIES (AUS)
~$1.0bn
15 PROPERTIES (NZ)
25%
N Z
3%
DEFENSIVEHIGH
SECTORDEMAND
HIGH QUALITY | EARNINGS |
PORTFOLIO | GROWTH |
DEVELOPMENT
UPSIDE
Vital seeks to deliver stable and growing total Unit Holder returns, including an attractive risk-adjusted income distribution, sourced from healthcare property
1 As at 30 June 2023; number of properties excludes strategic assets. | VITAL HEALTHCARE PROPERTY TRUST | ANNUAL RESULTS 2023 | | 3 |
2 3.6% on a constant currency basis | ||
FY23 highlights
Continuing to deliver for Unit Holders
Resilient property portfolio
18.1% net property income growth; 3.6% like-for-like constant currency
>99% rent collected for FY23
~99% occupancy
Modest softening of cap rates (4.58% to 5.05%)
Continuing to deliver for Unit
Supported by a strengthened Holders balance sheet
Debt extended and greater percentage fixed; no debt expiring until March 2025
Proceeds from asset sales applied to repay debt; ultimately recycled into new high quality developments
A$180m of debt headroom available to fund development pipeline
Enables delivery of core purpose
9.75cpu distributions for FY23; consistent with guidance
Payout ratio ~90%
Strong underlying net property income growth expected to lead to AFFO per unit growth over the medium term
Delivery of ESG initiatives (noted in Annual Report)
Portfolio enhancements underway
~NZ$155m of non-core divestments transacted
Further asset sales being considered: ~NZ$100m to be divested in FY24
~NZ$545m of developments underway in core health care precincts
Developments, divestments and asset management initiatives including ESG will lead to a higher quality, better leased portfolio over the medium term
VITAL HEALTHCARE PROPERTY TRUST | ANNUAL RESULTS 2023 | 5