Vital Healthcare Property Trust : FY24 Annual Report Summary

Annual Report

Summary 2024

Continuing to enhance our resilience

Despite a challenging environment, Vital recorded AFFO (cash earnings) of 10.9 cpu enabling payment of 9.75 cpu in distributions, consistent with guidance, on a prudent 89.4% payout ratio. The Manager also continued to progress several strategic initiatives including the sale of $251.3m non-core assets, key ESG initiatives, capital partnering, increasing hedging and maintenance of balance sheet gearing below 40%.

These efforts have enhanced and will continue to enhance the resilience of Vital's portfolio to support future returns for Unit Holders.

FY25 distribution guidance of 9.75 cpu (payable quarterly) has been provided consistent with FY24 distributions.

9.75 cpu

FY24 DISTRIBUTIONS & FY25 GUIDANCE

~$251m

DIVESTMENTS

$2.69

NTA PER UNIT

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. Instead, this summary document provides an overview of Vital's key results for FY24. 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 [phone], emailing [e-mail] or mailing a request to: Computershare Investor Services Limited, Private Bag 92119, Auckland 1142.

VITAL HEALTHCARE PROPERT Y TRUST, MANAGED BY NORTHWEST HEALTHCARE PROPERTIES MANAGEMENT LTD   |  ANNUAL REPORT SUMMARY 2024  |  1

Financial results

Cash from operations measured by AFFO decreased by 0.5% reflecting asset divestments to improve Vital's portfolio leading to a 2.5% reduction in AFFO per unit.

Importantly, Vital was able to achieve distribution guidance of 9.75cpu on a prudent 89% payout ratio.

39.1%

BALANCE SHEET GEARING

3.7%

LIKE-FOR-LIKE, SAME PROPERTY INCREASE

IN EARNINGS (CONSTANT CURRENCY)

Development update

During FY24 five developments reached practical completion totalling $197m, reducing the remaining committed development spend to $138m which is able to be fully funded from existing debt capacity.

$225m

SPENT ON CAPITAL WORKS IN

FY24 INCLUDING DEVELOPMENTS

$138m

COMMITTED DEVELOPMENT SPEND REMAINING (FULLY FUNDED FROM EXISTING DEBT HEAD ROOM)

Sustainability

1st	PLACE GLOBALLY IN GRESB
FOR LISTED HEALTHCARE
IN REAL ESTATE

DEVELOPMENTS

9 REGISTERED TARGETING AT LEAST 5 STAR GREEN STAR

Vital continues to prioritise sustainability throughout its operations in line with Northwest's global sustainability strategy and framework.

Lingard Day Surgery, NSW

Portfolio overview

Vital enhanced its already high-quality $3.2 billion property portfolio through the sale of non-core assets and reinvesting the proceeds into new developments.

31% of Vital's assets (by value) are in New Zealand with the other 69% being in Australia.

TENANT DIVERSIFICATION % OF RENT

Aurora Healthcare	20%
Healthe Care Surgical	16%
Epworth Healthcare	16%
Evolution Healthcare	14%
Southern Cross	3%
Burnside	3%
Mercy Ascot	3%
GenesisCare	2%
I-Med Radiology Network	1%

$145m

NET PROPERTY INCOME

18.3 year

WALE

$3.2 billion

PORTFOLIO ($2.2B AUSTRALIA

& $1.0B NEW ZEALAND)

~$200m

DEVELOPMENT LAND BEING

PREPARED FOR FUTURE DEVELOPMENT

Outlook

We are cognisant of the recent falls in Vital's Unit price reflecting wider property sector declines on the back of a higher interest rate environment as well as Vital falling out of two key offshore share indices. "Passive investment", where investors are agnostic to the underlying fundamentals of entities and invest solely based on size, has become a significant feature of the NZX (and other sharemarkets) resulting in share price movements which appear hard to equate with underlying businesses.

The disconnect between NZX pricing and operations is pronounced in Vital's case with >99.99% of rent having been

Wakefield Hospital, Wellington

collected over the last five years, an improving underlying portfolio due to developments and divestments, high income security afforded by a long weighted average lease expiry (WALE) to high- quality tenants and a distribution stream which has been growing over the last five years and stable over the last two.

As noted previously, the Board and management remain confident around Vital's strategy for delivering medium-long term returns for our Unit Holders. This confidence has been strengthened through the sale of non-core assets at modest discounts to book values.

Health NZ / Te Whatu Ora	1%
Other	21%

80% 20%

HOSPITALS

AMBULATORY CARE

98%

OCCUPANCY

Ormiston Hospital, Auckland

9.75cpu	~$180m	2.1%
FY25 DISTRIBUTION	ADDITIONAL NON-CORE ASSET	DISTRIBUTION 10-YEAR CAGR
GUIDANCE	SALES IN DUE DILIGENCE TO END	FY14 - FY24
	SALES PROGRAMME

VITAL HEALTHCARE PROPERT Y TRUST, MANAGED BY NORTHWEST HEALTHCARE PROPERTIES MANAGEMENT LTD   |  ANNUAL REPORT SUMMARY 2024  |  2

VITAL HEALTHCARE PROPERT Y TRUST, MANAGED BY NORTHWEST HEALTHCARE PROPERTIES MANAGEMENT LTD   |  ANNUAL REPORT SUMMARY 2024  |  3

People

Bios available at www.vitalhealthcareproperty.co.nz/board-management/

Majority independent board; directors located in Auckland (x2), Melbourne, Sydney & Toronto

Graham Stuart	Angela Bull	Mike Brady
Independent Chair	Independent Director	Director
and Member of the	and Member of the
Audit Committee	Audit Committee

Craig Mitchell	Dr Michael
Director and Member	Stanford AM
of the Audit Committee	Independent Director
	and Chair of the Audit
	Committee

Executives across New

Zealand and Australia

Aaron Hockly	Chris Adams	Alex Belcastro
SVP - New Zealand and	Co-Head,	SVP - Developments
Vital Fund Manager	A/NZ Region	and Precincts

Vanessa Flax	Michael Groth	Richard Roos
Vice President, Regional	Chief Financial Officer	Co-Head,
General Counsel and		A/NZ Region
Company Secretary

Disclaimer:

This document has been prepared by Northwest Healthcare Properties Management Limited (the Manager) as manager of the Vital Healthcare Property Trust (the Trust) and provides high-level summary information only.

This document does not contain all the information in the Trust's Annual Report which is available on www.nzx.com/companies/VHP and https://www.vitalhealthcareproperty.co.nz/announcements/ and is not intended to replace the Annual Report. This document is not intended as investment, legal, tax, financial product or financial advice or recommendation to any person and must not be relied on as such. You should obtain independent professional advice prior to making any decision relating to your investment or financial needs.

All references to $ are to New Zealand dollars unless otherwise indicated.

This document may contain forward-looking statements. Forward-looking statements can include words such as "expect", "intend", "plan", "believe", "continue" or similar words in connection with discussions of future operating or financial performance or conditions. Any indications of, or guidance or outlook on, future earnings or financial position or performance and future distributions are also forward-looking statements. The forward-looking statements are based on management's and directors' current expectations and assumptions regarding the Trust's business, assets and performance and other future conditions, circumstances and results. As with any projection or forecast, forward-looking statements are inherently susceptible to uncertainty and to any changes in circumstances. The Trust's actual results may vary materially from those expressed or implied in the forward-looking statements. The Manager, the Trust, and its or their directors, employees and/or shareholders have no liability whatsoever to any person for any loss arising from this document or any information supplied in connection with it. The Manager and the Trust are under no obligation to update this document or the information contained in it after it has been released. Past performance is no indication of future performance.

The information in this document is of general background and does not purport to be complete. It should be read in conjunction with Vital's market announcements lodged with NZX, which are available at www.nzx.com/companies/VHP.

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