Investor presentation April & May 2012 Agenda Agenda Vital in - PDF document

Investor presentation April & May 2012

Agenda

Agenda Vital in context > Financial review > Capital management > Health sector > Portfolio overview > Summary & outlook > 3

Vital in context

Vital in context Largest listed healthcare LPT in NZ & Australia Invests in medical and healthcare properties in Australasia > Portfolio diversification by value is ~68% Australia & ~32% NZ > Market Capitalisation NZ$360m 5th largest NZ LPT by market capitalisation > Average monthly volume ~4.3m units (NZ$5.1m value) > Assets under Management of NZ$550m 6th largest LPT by AuM > Largest listed 25 properties, 99% occupancy > healthcare WALT 11.2 years (longest in NZ sector) trust in NZ & > Australia New manager strongly aligned with unitholders AuM of Canadian based NorthWest Value Partners Inc. (“NorthWest”) acquired the > NZD$550m management company in December 2011 and a 20% interest in the Trust NorthWest is a long term investor with a strong track record of acquiring, Founding > developing, managing and owning healthcare real estate on an member of IPD international scale Australian Healthcare Index 5

Vital in context W eighted Average Lease Expiry ( yrs) Prem / Disc to NTA 12 20% 15% 10 Avg. 10% 8 5% 6 0% -5% 4 Avg. -10% 2 -15% Large trading -20% - VHP KIP GMT ANO NPT ARG DNZ AUG VHP ANO AUG GMT ARG NPT KIP PFI DNZ PFI premium to NTA and long NZ Sector Breakdow n ( AuM) Gearing WALT are two 7.1% 50% Avg. key features distinguishing 40% 35% office 28% VHP in the NZ 30% industrial market retail 20% health 10% 0% VHP KIP ARG DNZ NPT GMT AUG ANO PFI 30% 6 Source: Forsyth Barr Property Update April, IRESS

5 year history 7 Source: IRESS. Note: unit price is adjusted for Nov 2010 rights issue

Vital in context Occupancy I nvestm ent Assets ( NZ$ m ) 700 100% 99% 600 98% 500 97% 400 96% 300 95% 94% 200 93% Step-change 100 92% 0 growth has 91% 2007 2008 2009 2010 2011 YTD 2007 2008 2009 2010 2011 YTD primarily come via Australian W ALT ( years) Gearing ( % ) 12 portfolio 50% acquisition 10 40% 8 30% Supplemented 6 with value-add 20% 4 developments 10% 2 to existing 0 0% assets 2007 2008 2009 2010 2011 YTD 2007 2008 2009 2010 2011 YTD 8 Source: Annual Reports. YTD = @ 31 March 2012

Outperformance against New Zealand indices Performance Total returns Com pound annual grow th rate ( CAGR) 140% 25% VHP NZX Property NZ50 Gross VHP NZX Property NZ50 Gross 120% 20% 100% 80% 15% 60% 10% 40% 20% 5% 0% 0% -20% -40% -5% 1yr 3yr 5yr 7yr 1yr 3yr 5yr 7yr Source: Craigs Investment Partners. Returns shown to period ending 31 March 2012. 9 Note: Assumes distributions are reinvested and an adjustment made for the November 2010 rights issue.

Financial review

Financial performance HY1 2 FY1 2 HY1 1 Actual SDP Restated $ 0 0 0 s $ 0 0 0 s $ 0 0 0 s Gross property income - rentals 24,442 50,464 13,508 Interest Expense (8,508) (17,510) (4,416) Gross property income higher than 2010 due to Unrealised revaluation loss (68) - (12,316) acquired properties and rent reviews Profit/ ( loss) before incom e tax 5 ,8 7 4 2 7 ,4 5 1 ( 2 ,4 8 3 ) ( PBT) Revaluation loss – 2010 write-off of acquired properties stamp duty Taxation (current & deferred combined) 677 2,128 1,094 and acquisition costs Period end exchange Profit/ ( loss) after incom e tax 5 ,1 9 7 2 4 ,4 9 5 ( 3 ,5 7 7 ) rate 0.7609 (30 June 2011: 0.7714) Effective current tax rate Earnings per unit – cents 1.79 8.49 (2.32) 12.1% (2010: 19.1%) 11

Australian acquisition, New Zealand disposals Comparison period movements 12

Distributable income HY1 2 FY1 2 HY1 1 Actual SDP Actual $ 0 0 0 s $ 0 0 0 s $ 0 0 0 s Gross distributable incom e 1 1 ,8 1 8 2 6 ,0 6 5 6 ,9 7 0 Current Tax -NZ & Australia / (HY11 Imputation 2,182 3,834 1,330 Credits) (808) - - -NZ Other Comprehensive Income Net distributable incom e ( NDI ) 1 0 ,4 4 4 2 2 ,2 3 1 5 ,6 4 0 Gross distributable income per unit 4.1c 9.0c 4.5c Net distributable income per unit 3.6c 7.7c 3.7c (Based on weighted average number of units on 290.8m 288.4m 154.5m issue) 13

Financial position HY1 2 FY1 2 HY1 1 Actual SDP Restated Net tangible assets per unit ( NTA) 1 0 2 c 1 0 9 c Investment properties $551.2m $535.4m $517.5m Total assets $555.0m $542.5m $534.4m Bank debt (excl. Finance Costs) $216.6m $205.8m $200.8m Acquisition of Mayo Private Unitholders’ funds $297.4m $289.1m $301.7m Capitalised costs Securities on issue 292.1m 289.0m 287.4m $15.9m Debt / total asset (TD covenant < 50% ) 39.0% 37.9% 37.6% Units on issue increased under DRP Debt / investment properties (Bank facility 39.3% 38.4% 38.8% covenant < 45% ) 14

Capital management

Debt management Renewal of bank facility Longer term, lower cost and more favourable covenants > Bank covenant now aligned with Trust Deed (both 50%) > Tranche 1: 5yr A$125m through to 31 March 2017 > Tranche 2: 3yr A$100m & NZ$20m through to 31 March 2015 > Circa A$57m and NZ$14m of headroom available under new facility > Gearing position Debt drawn to NZ$218.3m > LVR 39.8% compared to bank covenant of 50% > Hedging Debt 69.5% hedged > Swaps have, on average, 3.9 years until expiry > Weighted average cost of debt 7.07% 16 As at 31 March 2012

Currency management Translation hedging Aim is to minimise the effect of adverse > currency movements on the balance As at 3 1 March 2 0 1 2 sheet over time. A$ m Policy adopted to have the natural hedge > supplemented by entering into Forward Net Assets 2 7 7 .1 Exchange Contracts to take hedging to Borrowings 1 6 7 .7 between 90% and 100% of the value of Natural Currency Hedge 6 1 % net assets in Australia. Contracts entered into align with the > Borrowings Hedged 1 6 0 .0 Trust’s interim and annual balance date. Forward Exchange Contracts 8 8 .7 Effective Currency Hedge 9 2 .5 % Transaction hedging 2 July Aim to decrease volatility in AUD Forward Exchange Contracts 0 .7 6 6 8 > 2 0 1 2 denominated income flows that need to be converted into NZD to meet unitholder A$ m distribution requirements. 2 nd Half to 3 0 June 2 0 1 2 Managed on a rolling 12 month basis > against projected net Australian dollar FX Collars 3 .0 operating cash flows. FEC’s 2 .1 Contracts entered into will align with the > Trust’s quarterly unitholder distributions. Average Exchange Rate 0 .7 7 9 6 to 0 .8 0 8 9 17

Health Sector

IPD Australian Healthcare Index Purpose To provide the first Australian healthcare index > Benchmarking of healthcare performance vs other property assets > Educate the wider investment market of investing in healthcare assets > Market index at December 2011 Size: 49 assets > Value: ~A$950m > Frequency: Quarterly > Series length: September 2005 to September 2011 > Target pool: >A$1.0bn assets by Q2 2012 > Inaugural launch on Current index participants 21 February Vital Healthcare Property Trust > 2012 Australian Unity > Generation Healthcare Fund > VHP Healthfield Development and Management > founding Orchard Funds Management > member Media and marketing outputs Produced each quarter with the release of updated index numbers > Distributed to key media outlets > Topics include investment performance and healthcare sector drivers 19 >

Defensive income returns Capital returns impacted by GFC, fast recovery IPD Australian Healthcare Index 20

Mixed use medical centres most impacted over cycle IPD Australian Healthcare Index 21

Healthcare index clearly outperforms at cycle trough IPD Australian Healthcare Index 22

NZ health insurance membership in decline NZ Health Insurance Trends Source: Health Funds Association of New Zealand based on lives covered by health insurance 23 (Dec 2011)

Six years of growth Means testing of rebate imminent Australian Health Insurance Trends 24 Source: Private Health Insurance Administration Council, Quarterly Statistics, September 2011, PHIAC, Canberra, 2010.

Portfolio overview

Portfolio Profile @ 31 March 2012 25 properties > 125 tenants > NZ$547.9m investment property value > 9.3% weighted average capitalisation rate* > 26 * As at 30 June 2011

Highly diversified portfolio Portfolio geographic composition @ 31 March 2012 27

Diversified healthcare sub-sector covenants Portfolio sector composition @ 31 March 2012 28

Portfolio occupancy at >99% for over 2 years Portfolio occupancy @ 31 March 2012 29

Highly structured rent review profile Rent review profile @ 31 March 2012 131 rent reviews due in FY12, ~95% structured or fixed 91 rent reviews YTD, 3.4% increase on passing rent 30

VHP WALT twice NZ sector average 20 year lease expiry profile @ 31 March 2012 31