Vital Healthcare Property Trust today announced a strong interim result for the December half-year yesterday.
- Gross rental income up 54.4% to $51.8 million
- Pretax operating profit up 58.4% to $42.2 million
- Net distributable income up 87% to $35.5 million
- Net interim revaluation gain $13.1 million, up 1.2%
- Portfolio weighted average cap rate firmed 30 basis points to 6.90%
- Net tangible assets up 11% (16c) to $1.67/unit since June; capital-raising at premium to NTA the key driver of the uplift
- $A63 million of value-adding initiatives underway on existing properties
- 2 Australian medical office buildings acquired for $A55 million, adding geographic & tenant diversification.
- Weighted average term to lease expiry 17.6 years, occupancy levels at 99%, rent review growth 1.2%
- A second-quarter cash distribution of 2.125c/unit will be paid to investors on 23 March.
Management company chief executive David Carr said the trust had successfully advanced its scale & diversification strategy: “Following the strongly supported $160 million capital raising in July, we completed acquisitions of 2 quality medical office buildings and a number of strategic sites around existing core assets. This diversification & flexibility for growth is an important part of Vital’s plan as we continue with our very successful brownfield development programme, working closely with both existing & potential operating partners.
“Vital is in a strong capital & portfolio position. Its sustainable distribution, coupled with a conservative payout ratio, means we are well placed to execute on our embedded strategy, including long-term value creation. Our activities continue to be validated through independent property valuations, strong total unitholder returns & market-leading unit price premium to NTA.
“Undeniable population, ageing & wider healthcare demand trends continue to support our robust investment thesis. We retain a positive outlook and we remain excited about a range of potential opportunities over the remainder of 2017.”
Attribution: Company release.