Presentation to Craig's IP Advisor Networks
Aaron Hockly
Fund Manager - Vital
Recent Highlights
SIGNIFICANT ACHIEVEMENTS IN FY21 AND SUBSEQUENTLY
Financial
▸
▸ 10.4% increase in AFFO per unit (FY21) FY22 AFFO guidance of at least 11.80 cpu;
▸ up at least 2% on FY21
FY22 distribution guidance of 9.5 cpu; 7.0% ▸ above FY21
Equity raising reduced gearing to ~34%1
- >99% of rent collected for FY21 and Q1
- FY22 despite COVID-19
- Market leading,18.0-year WALE maintained 60,000sqm of new, renewed or extended2
- leasing during FY21
Strategic asset sales continue to be considered in line with Vital's 5yr StrategyPortfolio
- $286m of acquisitions completed in FY21, plus ~$145m3 completed to date during
- FY22
10 developments underway and at varying stages from commencement to nearing - completion
Actively considering both stabilised and
development opportunities in excess of
$350mAcquisitions and Developments
Targeting 2-3% AFFO and distribution growth per unit per annum
2 | 1 30 Sept proforma incl. Oct equity raise | VITAL HEALTHCARE PROPERTY TRUST |
2 Includes new leasing on standing investments and development pre-commitments |
3 Predominately The Tennyson Centre (settled) and Hutt Valley Health Hub which is contracted and awaiting settlement
Balance Sheet Strengthened
NEW DEBT AND EQUITY RAISED OVER LAST 12 MONTHS
Debt▸ facility extension and expansion Tranches totalling A$175m secured on 7-year terms, including the introduction of a new financier
▸ to further improve lender diversity
Tranches totalling A$40m secured for a term of 5 ▸ years
▸ A$100m multi-currency tranche for a 2.5-year term Vital's next refinancing event is in FY23
▸Equity raising
Successful completion of $115m Placement, fully underwritten at $2.90 per unit (3.7% discount to 12
- October 21 closing price)
-
Nearly two times oversubscribed
Allotment of 39,655,172 units for the Placement - occurred on 20 October 2021
UPP for $27.8m closed on 3 November 2021 at an issue price of $2.8521
3 | 1 | 2.5% discount to the volume weighted average price of Vital units traded on the NZX during the five | VITAL HEALTHCARE PROPERTY TRUST |
days up to and including 3 November 2021 | |||
5-year Portfolio Strategy
CONTINUED DEPLOYMENT OF STRATEGY TO ENHANCE UNITHOLDER RETURNS
ACQUISITION OF THE TENNYSON CENTRE
- The Tennyson Centre is one of Adelaide's leading 'Cancer Centres of Excellence', a high- quality ambulatory care facility located in a strategic metropolitan location, acquired for
-
~A$93m
The asset has strong leasing fundamentals with high quality tenants operating in the identification, assessment and treatment of cancer through oncology, radiotherapy, imaging - and consulting services
The transaction includes 1,920sqm of adjoining land held for future development
ACQUISITION OF HUTT VALLEY HEALTH HUB
- Hutt Valley Health Hub is a purpose-built seismically resilient medical office building and
- ambulatory facility, acquired for $46.5m (plus transaction costs)
The existing building was completed in late 2019 consistent with the Manager's focus on developing and acquiring new and recently constructed buildings. The acquisition will increase Vital's future expansion land holding to ~3,200sqm to meet both public and private healthcare - demand
The property adjoins Vital's existing asset, Boulcott Hospital, as well as the main public hospital - for the region, Hutt Hospital.
Post settlement Vital's yield for the campus will reflect ~4.5% across the Hutt Valley Health Hub and Boulcott Hospital
SALE OF GOLD COAST SURGICAL CENTRE | In mid-October, Gold Coast Surgery Centre was sold for ~A$13m (before costs) ~5% | ||
above its book value, with the proceeds used to support acquisitions. | |||
4 | VITAL HEALTHCARE PROPERTY TRUST |
High Quality Property Portfolio
PORTFOLIO REMAINS DIVERSIFIED, LOW RISK AND HIGH-QUALITY AT 31 OCTOBER 2021
$2.7bn
Portfolio value
5
4
3
2
13
74% | 6 | 26% | 12 |
Australia | New Zealand | ||
42 | 81% | 14% | 5% |
Properties | |||
Hospitals | Ambulatory care | Aged care |
Key Metrics
8.0%99.0%
NPI growth FY21 | occupancy |
(excluding FX) |
18.0 year | 4.86% |
WALE | weighted average |
cap rate |
$460.2m
committed development pipeline ($276m cost to complete)
5 | Excludes any revaluation gains which may be recorded as at 31 December 2021 | VITAL HEALTHCARE PROPERTY TRUST |
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Disclaimer
Vital Healthcare Property Trust published this content on 30 November 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 30 November 2021 21:30:17 UTC.