By Margreet Dietz
July 10 (BusinessDesk) - Vital Healthcare Property Trust said the value of its portfolio increased by 5.9 percent, or $102.4 million, for the year ended June 30, reflecting two recently completed projects in Australia.
Draft independent valuations for Vital’s entire portfolio indicate a revaluation gain of $60 million for the six months ended June 30, the company said in a statement.
The six-month revaluation gain is expected to increase Vital’s net tangible assets by about 13 cents per unit, the company said. The portfolio is expected to be valued at $1.84 billion at June 30, 2019, according to Vital.
“These valuation gains reflect the quality of Vital’s portfolio being defensive assets in strong catchments," Miles Wentworth, interim manager of Vital, said in the statement.
"It also recognises the attractive longer weighted average lease terms associated with the portfolio, the continuing high occupancy levels as well as ongoing strong investor demand for low-volatility healthcare property assets,” Wentworth noted.
The gains include the positive impact of recently completed projects at Lingard Private and Maitland Private in New South Wales, the company said.
Over the year, Vital’s total portfolio weighted average capitalisation rate firmed 15 basis points to 5.61 percent, with the rate for its Australian portfolio firming 16 basis points to 5.57 percent and that for its New Zealand portfolio firming 11 basis points to 5.72 percent, the company said.
Results of all valuations, undertaken by independent valuers, remain subject to finalisation and independent audit. Further details will be provided in the financial results, expected to be announced in the first half of August, the company said.
Vital shares last traded at $2.52, having gained 21 percent so far this year.