Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Vital Healthcare posts 48% gain in 1H earnings

Vital Healthcare posts 48% gain in 1H earnings, signals further development potential

By Tina Morrison

Feb. 14 (BusinessDesk) – Vital Healthcare Property Trust, New Zealand’s largest listed medical and healthcare property investor, posted a 48 percent gain in first-half earnings as it gleaned extra income from acquisitions, new developments, rental increases and a tax benefit.

Net distributable income, the earnings it uses for distributions to unitholders, rose to $20.6 million in the six months ended Dec. 31, from $13.9 million a year earlier, the Auckland-based company said in a statement. Gross rental income rose 3.8 percent to $29.9 million while administration and other expenses fell 8.5 percent to $3.2 million.

Vital Healthcare is investing in private hospital facilities in New Zealand and Australia as it expects demand to increase from an ageing population, a rise in chronic disease and higher patient expectations. Three quarters of its assets are in Australia, where 47 percent of the population has private health insurance for hospital care, compared with less than 30 percent in New Zealand, which showed its first quarterly growth in four years during the period.

“The healthcare sector continues to be supported by strong underlying trends, including an ageing population base with rising healthcare demands,” David Carr, chief executive of the trust’s management company, said in the statement.

Units in the trust rose 0.8 percent to $1.285.

Vital Healthcare’s debt-to-total assets ratio dropped to 33.9 percent at Dec. 31, compared with 42.4 percent the year earlier, and below its bank and trust deed covenants of 50 percent.

“This provides additional head room to undertake brownfield developments and acquisition opportunities as they arise,” it said.

In the first half of its financial year, the trust completed three development projects worth A$19.4 million, yielding 10 percent per annum, and it has a further A$30 million of developments underway with similar yields expected. Vital Healthcare has potential projects worth A$100 million over the next four years, it said.

Vital Healthcare gained average rent increases of 2.4 percent from reviews in the first half and its weighted average lease term increased to 14.9 years from 12.1 years in the year earlier period.

The trust is mulling alternative uses for its Allamanda Private Hospital facility in Southport, Australia, from November 2017 because the existing tenants are building a new private hospital.

“We have had good initial interest from potential healthcare operators across several sub-sectors including hospital and aged care providers,” Carr said.

The trust will pay a second quarter distribution of 1.975 cents per unit on March 18 and reaffirmed its expectation for total distributions of 7.9 cents a unit for 2014.

Net profit after tax rose 14 percent to $16.6 million in the first half as the trust benefited from a $600,000 taxation credit, lower interest costs after it reduced debt following an equity raising and as earnings from Australia were crimped by a rise in the New Zealand currency.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

BusinessDesk: APN's NZME Sees Future In Paywalls, Growth In Digital Sales

APN News & Media has touted a single newsroom concept for its NZME unit in New Zealand, similar to what Germany's Die Welt uses, saying an 'integrated sales proposition' is helping it win market share, including ... More>>

Labour Party: Global Milk Prices Now Lowest In 6 Years

The latest fall in the global dairy price has brought it to the lowest level in six years and shows there must be meaningful action in tomorrow’s Budget to diversify the economy, says Labour’s Finance spokesperson Grant Robertson. “Dairy prices ... More>>

BusinessDesk: NZ Inflation Expectations Creep Higher In June Survey

May 19 (BusinessDesk) - New Zealand businesses lifted their expectations for inflation over the next two years, sapping any immediate pressure on the Reserve Bank to cut interest rates, and prompting the kiwi dollar to jump higher. More>>

BusinessDesk: Lower Fuel Costs Drive Down NZ Producer Input, Output Prices

May 19 - Producer input and output prices fell in the first quarter, mainly reflecting lower fuel costs and weakness in prices of meat and dairy products. More>>

Media: Fairfax Media NZ Announces Senior Editorial Team

Fairfax Media New Zealand has today confirmed its new editorial leadership team, as part of a transformation of its newsrooms aimed at enhancing local and national journalism across digital and print. More>>

Science: Flavonoids Reduce Cold And Cough Risk

Flavonoids reduce cold and cough risk Research from the University of Auckland shows eating flavonoids – found in green tea, apples, blueberries, cocoa, red wine and onions – can significantly reduce the risk of catching colds and coughs. The research, ... More>>


BusinessDesk: RBNZ House Alert Speech The Catalyst For Government Action

Prime Minister John Key all but conceded that pressure from the Reserve Bank of New Zealand for concerted action on rampant Auckland house prices was one of the main catalysts for the government's weekend announcements about tightly ... More>>

BusinessDesk: How To Fall Foul Of The New Housing Tax Rules: Tips From IRD

Just because you rented out your investment property doesn't absolve you from paying tax, says the Inland Revenue Department in a summary of commonly made mistakes by non-professional property investors when it comes to their tax liability.More>>

Legal: Superdiversity Law, Policy And Business Stocktake Announced

Mai Chen, Managing Partner at Chen Palmer New Zealand Public and Employment Law Specialists and Adjunct Professor of Law at the University of Auckland, today announced the establishment ... More>>

Housing: More House Price Gains Expected

House price expectations remain high, with a net 56% of respondents expecting house prices will increase. Fears of higher interest rates are fading, consistent with the RBNZ’s signals this year. Affordability and a lack of houses for ... More>>

TDDA: State-Of-The-Art Drug Testing Laboratory To Open In Auckland

World leading drug testing agencies, The Drug Detection Agency (TDDA) and Omega Laboratories, open New Zealand laboratory More>>

Network: Bigpipe Launches Ultra-Fast Broadband Into Wellington

Bigpipe Launches Ultra-Fast Broadband into Wellington Naked broadband provider Bigpipe has extended its national reach, announcing today, the launch of its unlimited UFB offering into Wellington. The Spark Venture business is giving Wellingtonians the ... More>>

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news