A first quarter update was released for Vital Healthcare Property Trust today. The attached report will be sent to unitholders by email and mail over the coming week.
Key achievements over the start of FY23 (including October 2022) include:
1) Achieved a 5-star rating from independent standards organization GRESB
This includes achieving top quartile results in:
– Listed healthcare globally in “performance” and “Development” in this category
– Standing investments across healthcare peers globally
– “Developments” in the Oceania region for listed entities
First “6-star Green Star” registered Medical Office Building in Southern Australia with the development of Stage 2 of ~A$165 Playford Health Hub. Stage 2 of the three-stage healthcare precinct will be a A$51 million state-of-the-art Specialist Medical Centre. When complete will be powered by 100% renewable energy.
First “Green Star Communities” registered Health Precinct in New South Wales with the development of the Macarthur Health Precinct (Campbelltown).
2) Reduced interest rate exposure & leverage
Since 30 June 2022 Vital has increased interest rate hedging coverage by over 250m, lifting Vitals’ fixed rate debt to 62.3% of total drawn debt. This helps reduce Vitals’ exposure to increasing interest rates.
Vital has reduced gearing from 36.6% on 30 September 2021 to 32.9% on 30 September 2022 and maintains a well-diversified expiry profile. Over 65% of debt expires after 2025, the next expiry is October 2023.
3) Continued execution of developments and 5-year portfolio strategy
Vital holds strategic land to support our development pipeline. Vital continues to weight these opportunities against prevailing market conditions and works closely with our key partners to develop properties that create the most value for our tenants, the community, and our unitholders.
Vital remains confident of delivering on our distribution guidance of 9.75 cents per unit for this financial year whilst retaining a conservative pay-out ratio. Our core goal of growing AFFO by 2-3% per unit per annum over the medium term remains unchanged.
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