Highlights

  • Net property income increased by 5% to NZD 39.0m for Q1 FY26.
  • Portfolio occupancy rose to 99% with a weighted average lease expiry of 19.1 years.
  • Asset sales generated around NZD 100m, supporting debt repayment and development funding.

Vital Healthcare Property Trust (NZX:VHP) released its first quarter update for FY26, covering the period from 1 July to 30 September 2025. The Trust reported a 5.0% rise in net property income to NZD 39.0m, up from NZD 37.2m in the same quarter last year. The growth was attributed to rental reviews, contributions from completed developments, and timing-related factors.

Operating profit for the period reached NZD 21.4m, marking an 11.2% increase compared to the prior year. Adjusted Funds from Operations (AFFO) rose 10.7% year-on-year to 2.82 cents per unit (cpu), supported by improved property income and lower maintenance spending.

The first-quarter distribution was confirmed at 2.4375cpu, in line with the Trust’s FY26 distribution guidance of 9.75cpu. The record date is set for 13 November 2025, with payment to be made on 25 November 2025. The Distribution Reinvestment Plan (DRP) remains active, offering unitholders a 2% discount for reinvested units.

Market and Portfolio Update

Vital’s units closed at NZD 2.23 as of 30 September 2025, with a 12-month total return of 25.8%, outperforming the S&P/NZX All Real Estate Index’s 14.9% for the same period. The Trust’s net tangible assets (NTA) per unit increased to NZD 2.56, up from NZD 2.47 in June 2025.

Portfolio occupancy improved to 99%, supported by new leasing activity and agreements in progress. These completions and lease extensions have lifted the Trust’s weighted average lease expiry (WALE) to 19.1 years.

Development and Asset Activity

During the quarter, Boulcott Hospital, Endoscopy Auckland, and Wakefield Hospital Stage 2a reached practical completion, representing NZD 148m worth of development projects. Vital now has three active developments underway, with a remaining committed spend of NZD 19.6m out of a total NZD 201.3m pipeline.

Recent asset sales included Toronto Private Hospital (AUD 38.3m) and a 50% interest in Kawarau Park, Queenstown (NZD 36m), which together provided approximately NZD 100m for debt repayment and future development funding. Additional property sales in South Australia and Queensland were also completed or contracted during the period.

ESG Recognition

Vital achieved notable results in the 2025 GRESB Assessment, being named a Global Sector Leader in Listed Healthcare across both Standing Investments and Developments. The Trust scored 87/100 for Standing Investments and 97/100 for Developments, ranking among the top global performers in healthcare real estate sustainability.

Share Performance

VHP’s shares traded at  NZD 2.2200 per share on 06 November 2025.