Vital Healthcare Property Trust (Vital) today announced a preliminary
unaudited portfolio revaluation increase of $165.4m for the 12 months ending
30 June 2017.
Chief Executive of the Manager, David Carr said "Vital is now realising the
benefits of the strong execution of our scale and diversification strategy
for many years. Over the last 24 months we have observed healthcare real
estate capitalisation rates firm faster than the wider market. We consider
this firming a mainly structural shift as the market''s appreciation of the
unique characteristics and underlying drivers of healthcare real estate is
now evident. These attractive market characteristics are amplified by
Vital''s leading portfolio metrics, including a WALE of approximately 17.5
years and occupancy levels sustained at over 99% for eight years.
This structural shift has been underpinned by multiple new entrants looking
to secure opportunities in the sector. Whilst they have been successful at
the fringes, we continue to prudently execute on a number of recent
off-market acquisitions, reflecting the strength of relationships Vital has
with both existing and new partners. We expect to participate in further
market consolidation over time, which will continue to drive our strategy
forward" said Mr Carr.
Revaluation highlights for the 12 months to 30 June 2017
- Like for like (excluding acquisitions) portfolio revaluation increase of
17.0%
- Australian portfolio revaluation gain of $144.4m
- New Zealand portfolio revaluation gain of $21.0m
- Australian WACR firmed 120 basis points (bps) to 6.03%
- New Zealand''s WACR firmed 84 bps to 6.09%
- Vital''s portfolio WACR firmed 113 bps to 6.04%
- The major driver of the overall portfolio revaluation increase has been cap
rate firming (~90%), with rental growth the other key contributing factor
(~10%)
- Overall, Vital''s investment portfolio value at 30 June 2017 is forecast to
be approximately $1.37bn
- By itself, the revaluation gain is expected to add around 28 cents per unit
to Vital''s NTA at 30 June 2017 (Note: 31 March NTA was $1.79)
The valuations were undertaken by six independent valuers and are preliminary
at this stage
The valuations remain subject to Vital''s 30 June 2017 year-end audit and
exchange rate. These will be confirmed in the financial results, to be
announced in August.
- ENDS -
ENQUIRIES
David Carr, Chief Executive Officer
Vital Healthcare Management Ltd, Telephone 09 973 7301,
Email dcarr@vhpt.co.nz
Stuart Harrison, Chief Financial Officer
Vital Healthcare Management Ltd, Telephone 09 973 7302,
Email sharrison@vhpt.co.nz
End CA:00303060 For:VHP Type:MKTUPDTE Time:2017-06-23 15:57:18