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Vital Healthcare Property Trust: Delivers Strong Returns


It is an NZSX-listed investment fund which invests in high-quality health and medical-related properties in New Zealand and Australia. The trust's subsidiaries include Vital Healthcare Property Limited, Colma Services Limited, Vial Healthcare Australian Property Trust and Vital Healthcare Investment Trust. It is managed by Vital Healthcare Management Limited. Its tenants are hospital and healthcare operators who provide a wide range of medical and health services and carry put vital research. The trust's properties provide the specialized facilities medical and healthcare professionals need to make a positive difference in people's lives. As a specialist provider, it understands and accommodates the needs of its healthcare tenants. It's a niche market and with an ageing population across both countries, it is also one that is growing.


The trust's structure includes all the checks and balances needed to protect the interest of investors and other stakeholders. The Trust is a unit trust which was established under the Unite Trusts Act 1960. These units are listed on the New Zealand Stock Exchange (NZX: code: VHP). The Vital Healthcare Property Trust is managed by the Board. It is made up of three independent directors and two non-independent directors. These directors are committed to maintaining the highest ethical standards and accountability and chosen for their complementary skills and knowledge.

The Trust's Distribution Policy

For the financial year of 2013 the Board has determined that it will continue to use a net distributable income which is based on methodology in calculating unit holder distributions. This remains consistent with the requirements under the Trust Deed. Various interpretations regarding an AFFO2 based calculation have been identified across the listed property sector. As the result the Board will continue to investigate AFFO further any listed property sector adopted methodologies.


During the year of 2012, the Vital Healthcare Property Trust secured two off-market acquisitions, Mayo Private Hospital in Taree, New South Wales, for A$13 million and Hurstville Private Hospital in Sydney for A$12.3 million. Both were acquired on initial yields of approximately 10 percent after acquisition costs. During this financial year, the Trust completed a total of 125 rent reviews, equating to approximately 75 percent of portfolio income and resulting in an average increase of 3.3 % across the rental incomes reviewed. CPI or structured mechanism applied to approximately 90 percent of the reviews, which were predominantly for Australian-based tenants.

On January 16, 2012 NorthWest Value partners Inc. acquired all the shares in the Manager from its previous owner, Medical Properties Holding Company No.1 Limited. During the fiscal year ended June 30, 202, it acquired two healthcare properties located in New South Wales, Australia. In September 2012, it sold Pitman House in Point Chevailer, Auckland. In September 2012, the trust acquired the property assets of SPORTSMEDoSA Private Hospital and Clinics in Adelaide, South Australia. In December 2012, it acquired SPORTSMEDoSA.

Dividend History

The trust's stock chart shows that it is performing well from past five years. It has current market capitalization of 466.69 Million, Earning per share is 0.06, P/E ratio is 22.70 and the dividend yield is 5.46% at the annual dividend payout of 0.02.

The Final Thoughts

The trust is one of the Best high yield dividend New Zealand stocks which investors should add to their portfolio. It has a low-risk, medium-return investment profile. The trust is also beneficial for investors as it delivers stable, reliable returns through sound diversification and 'best practice' risk management.

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