Vital announces preliminary portfolio revaluation increase

29 June 2015

Vital announces preliminary portfolio revaluation increase

Vital Healthcare Management Limited (the ‘Manager’), the manager of Vital Healthcare Property Trust (‘Vital’) today announced a preliminary unaudited portfolio revaluation increase of approximately $83m for the year ending 30 June 2015.

Australian assets underpin strong portfolio revaluation uplift

The overall gain of approximately $83m reflects a 12% increase on Vital’s preliminary 30 June 2015 book value, with the composition being approximately $77m[1] from the Australian portfolio and $6m from New Zealand.

David Carr, Chief Executive of the Manager said “The core driver of the result was at properties where the Manager had successfully executed on value-add developments and hospital repositioning activity. This was supported by stable and consistent rent growth, full occupancy, long-dated leases and sector wide firming of capitalisation rates as investors increasingly recognise the strong characteristics of the asset class.”

The weighted average market capitalisation rate for the portfolio is now approximately 8.0%, firming approximately 100 basis points from 30 June 2014.

The valuations were undertaken by eight independent valuers and are preliminary at this stage. They remain subject to Vital’s 30 June 2015 year end audit and finalisation of exchange rate. These will be confirmed in the financial results, expected to be announced on 12 August 2015.

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1 A$69m translated at a FX spot rate of 0.8944 as at mid-day 29 June 2015.

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