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Highlights

  • VHP’s gross rental income increased by 2.64% YoY to NZD 77.1 million in H1FY25.
  • NZD 47.9 million in non-core asset sales were reinvested into the development pipeline in recent half.
  • 18% of VHP’s portfolio was leased, extended, or renewed during H1FY25.

Vital Healthcare Property Trust (NZX:VHP), an investment fund specialising in healthcare properties spanning across New Zealand and Australia, owns a portfolio of approximately NZD 3.2 billion. The portfolio consists of 34 healthcare investment properties spanning across mainland Australian states and New Zealand.

Acquisitions and Divestments

In the first half of the fiscal year 2025 (H1FY25), VHP undertook NZD 47.9 million in non-core asset sales. The proceeds from these sales were reinvested into the company's development pipeline.

Furthermore, approximately NZD 225 million worth of assets are currently under due diligence for sale or are being considered for divestment.

Financial Performance

For the six months ended 31 December 2024 (H1FY25), VHP reported gross property rental income of NZD 77.1 million, marking a 2.64% YoY increase from NZD 75.1 million in H1 FY24. However, during the reported period, the company recorded a net loss of NZD 39.3 million, a significant improvement from the NZD 113.1 million loss in the previous year. Total comprehensive loss after tax for H1FY25 stood at NZD 30.6 million, compared to NZD 123.4 million in H1FY24.

The financial results were supported by stable tenant contributions, with three Australian tenants and one New Zealand tenant generating NZD 50 million in gross rental income. Additionally, during H1FY25, over 47,000 square metres of space were leased, extended, or renewed, representing 18% of the company’s total net lettable area and 21% of its income.

Outlook

Following the end of H1FY25, VHP successfully completed the Wakefield development, reducing its committed development pipeline to NZD 241.3 million. The company has NZD 77.5 million worth of projects across four developments remaining, which can be fully funded through existing debt capacity.

The company’s portfolio strength was evident as 18% of its total property area was leased, extended, or renewed during the first half of FY25.

Share performance of VHP

VHP shares closed 1.76% lower at NZD 1.67, recorded on 31 March 2025. In a year, the share price has dropped by almost 25.11% and in three months, it has declined by around 7.73%.

52-week high of VHP is NZD 2.23, recorded on 2 April 2024 and 52-week low is NZD 1.67, recorded on 31 March 2025.

Resistance and support summary

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is 31 March 2025. The reference data in this report has been partly sourced from EODHD/Others.

Technical Indicators Defined:

Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.

Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock.