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

 

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