HY22 interim results presentation
24 FEBRUARY 2022
Contents
Overview | 3 |
HY22 highlights | 8 |
Financial results & capital management | 11 |
Portfolio & acquisitions | 18 |
Developments | 24 |
Future focus | 30 |
Appendices | 33 |
Presenters
Aaron Hockly
Fund Manager
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 | INTERIM RESULTS 2022 | 2 |
Overview of Vital
VITAL IS THE ONLY SPECIALIST HEALTHCARE LANDLORD LISTED ON THE NZX
NORTHERN
TERRITORY
WESTERN
AUSTRALIA
SOUTH
4AUSTRALIA
3
~$2.2bn
31* PROPERTIES (AUS)
QUEENSLAND
6
NEW SOUTH
WALES
12
VICTORIA
6
TASMANIA
17.8 year ~$3bn
WALE | 43* PROPERTIES |
(AUS & NZ) |
12
~$0.8bn
12* PROPERTIES (NZ)
VITAL HEALTHCARE PROPERTY TRUST (VITAL) IS:
The owner of a ~$3 billion healthcare property portfolio in New Zealand (27% of assets) and Australia (73%);
The only NZX-listed specialist healthcare landlord (NZX ticker: VHP);
Externally managed by a subsidiary of Toronto-listed, global healthcare real estate owner and manager, NorthWest Healthcare Properties REIT (TSX ticker: NWH);
Underpinned by rental income that tracks inflation with ~86% of lease income indexed to CPI in some way; and
Targeting 2-3% AFFO and DPU growth per annum over the medium term, whilst retaining a conservative pay-out ratio.
*Excludes strategic assets held for development
VITAL HEALTHCARE PROPERTY TRUST | INTERIM RESULTS 2022 | 3
Vital's 2-year progression despite COVID-19
PORTFOLIO ENHANCEMENTS SUPPORT TARGET OF GROWING AFFO AND DISTRIBUTIONS BY 2-3% PER UNIT PER ANNUM
TOTAL PROPERTY VALUE
~$2bn | ~$3bn | |
(AUS:75%, NZ:25%) | (AUS:73%, NZ:27%) | |
2019 | 2021 | |
52.6%
growth
WEIGHTED AVERAGE CAP RATE
5.52%4.67%
20192021
Reduction demonstrates: (1) quality of assets and tenants; and (2) value added by leasing and development undertaken
WALE | ||
17.9 years | 17.8 years | |
2019 | 2021 | |
Maintenance of market leading WALE
DEVELOPMENT PIPELINE
~$200m >$1bn2
20192021
Enhance earnings and valuation growth and supports portfolio development
AVERAGE BUILDING AGE1
14.0 years | 10.7 years |
2019 | 2021 |
Younger buildings reduce current and future maintenance capex requirements
LARGEST SINGLE TENANT EXPOSURE
46%20%
20192021
Concentration risk reduced
NET PROPERTY INCOME (ANNUAL)
$98.8m $113.4m
CY19CY21
14.8%
increase
SECTOR SPLIT
Hospital:86% | Hospital: 82% | |||
Ambulatory Care: 11% | Ambulatory Care: 13% | |||
Aged Care: 3% | Aged Care: 5% | |||
2019 | 2021 | |||
Diversity of assets reduces risk and enhances earnings
Portfolio enhanced through acquisitions, development and disposals to: (1) increase diversity of assets and tenants,
(2) reduce age of building and (3) maintain long WALE. This helps to reduce income risk for Vital's unitholders
1 Average building age = the later of the date of construction or the last significant capital works | |
2 Includes $161.4m of committed development spend remaining and ~$1bn of developments being considered. Development | VITAL HEALTHCARE PROPERTY TRUST | INTERIM RESULTS 2022 | 4 |
timing and therefore spend expected to be over a staged and lengthy period (at least 10 years) |
Vital's 2-year progression despite COVID-19 (cont'd)
BALANCE SHEET STRENGTHENED
NTA PER UNIT
$2.36$3.12
20192021
32.2%
growth
BALANCE SHEET GEARING
35.1%33.2%
20192021
Conservative gearing maintained
AFFO (PER UNIT)
10.45111.902FY20FY22
13.9%
growth
AVERAGE DEBT DURATION
1.7 years | 4.4 years3 |
2019 | 2021 |
Significantly expanded
DISTRIBUTIONS (PER UNIT)
8.7519.752FY20FY22
11.4%
growth
Balance sheet strengthened through raising $351m of new equity and extending debt whilst supporting portfolio growth as a means to grow AFFO and distributions
1 FY20 actual | |
2 FY22 upgraded guidance (annualised) | |
3 Pro-forma as at 31 December 2021 including terms agreed post- 31 December 2021 | VITAL HEALTHCARE PROPERTY TRUST | INTERIM RESULTS 2022 | 5 |
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Vital Healthcare Property Trust published this content on 23 February 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 23 February 2022 19:58:02 UTC.