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

 


Vital Healthcare lifts profit 7.8% on revaluation gains

Vital Healthcare lifts profit 7.8% on revaluation gains, chases ageing Australasian populations

By Suze Metherell

Aug. 14 (BusinessDesk) - Vital Healthcare Property Trust, New Zealand’s largest listed medical and healthcare property investor, said annual profit rose 7.8 percent as it recognised a $4.9 million revaluation gain in its portfolio.

Profit rose to $37.4 million in the year ended June 30, from $34.7 million the year earlier, the Auckland-based company said in a statement. Net distributable income, the earnings measure it uses for distributions to unitholders, increased 23 percent to $34.7 million, or 10.4 cents per share. Net rental income edged up 0.2 percent to $57.97 million as lower property expenses made up for a 0.7 percent decline in gross rental income.

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. About 47 percent of Australians have private health care cover for hospitals, compared to about 30 percent of New Zealanders. On Monday the healthcare investor announced it had purchased the Marian Centre 31-bed psychiatric hospital in Perth for A$13.5 million. Once the deal settles, Vital will embark on a A$10.8 million redevelopment over the coming year to more than double bed numbers to 66.

"The healthcare real estate sector continues to experience rising investor demand with firming market capitalisation rates indicating greater interest and activity levels," said chairman of the trust's manager, Graeme Horsley. "This escalating investor interest, both domestically and internationally, is being driven by its defensive qualities and positive underlying fundamentals, including a growing population base, ageing demographic and strong levels of private health insurance in Australia."

The hospital investor also secured a 30-year lease renewal with MercyAscot at Ascot Hospital and Clinics in Greenlane, Auckland.

The annual revaluation of Vital’s property portfolio increased $15.2 million to $613.1 million, reflecting rent growth, close to full occupancy and development assets "crystallising positive valuation margins", and saw an incentive fee of $500,000 paid to the manager for the first time in three years. The weighted average lease term (WALT) rose to 15.1 years from 11.8 years.

Vital Healthcare will make a fourth-quarter distribution of 1.975 cents a unit taking the full-year payment to 7.9 cents, and expected to to distribute 8 cents per unit in 2015, it said.

The company flagged capital expansion projects and a expected "opportunities in the order of A$50 million to materalise over the course of 2015," without being more specific.

Units of Vital Healthcare was unchanged at $1.40 and has advanced 9.4 percent this year. The stock is rated a 'hold' by four analyst recommendations compiled by Reuters, with a median price target of $1.39.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Fossils: Ancient Penguins Lived Alongside Dinosaurs?

Penguins are much older than previously thought and their evolution probably dates back to the days of the dinosaurs, according to research on the fossilised leg bone and toes of a giant ancient penguin found in rocks near Waipara, North Canterbury. More>>

No Voda/Sky: Commission Declines Clearance For Merger

The Commerce Commission has declined to grant clearance for the proposed merger of Sky Network Television and Vodafone New Zealand. More>>

ALSO:

EARLIER:

Power: IEA Report On New Zealand's Energy System

Outside of its largely low-carbon power sector, managing the economy’s energy intensity and greenhouse gas emissions while still remaining competitive and growing remains a challenge. More>>

ALSO:

NASA: Seven Earth-Size Planets Around A Single Star

NASA's Spitzer Space Telescope has revealed the first known system of seven Earth-size planets around a single star. Three of these planets are firmly located in the habitable zone, the area around the parent star where a rocky planet is most likely to have liquid water. More>>

ALSO:

Auckland Transport Case: Men Guilty Of Corruption And Bribery Will Spend Time In Jail

Two men who were found guilty of corruption and bribery in a Serious Fraud Office (SFO) trial have been sentenced in the Auckland High Court today... The pair are guilty of corruption and bribery offences relating to more than $1 million of bribes which took place between 2005 and 2013 at Rodney District Council and Auckland Transport. More>>

ALSO:

Hager Raid: Westpac Wrong To Release Bank Records To Police

The Privacy Commissioner has censured Westpac Banking Corp for releasing without a court order more than 10 months of bank records belonging to the political activist and journalist Nicky Hager during a police investigation into leaked information published in Hager's 2014 pre-election book, 'Dirty Politics'. More>>

ALSO:

EARLIER:

Get More From Scoop

 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news