Vital Healthcare Property Trust, the listed hospital owner and developer, increased annual earnings 54% as it saw rental income grow in a year when it made seven major acquisitions.
Distributable earnings, the preferred measure for property investors because it strips out unrealised movements in the value of property, rose to $61.8 million in the 12 months ended June 30, from $40.2m a year earlier, trust manager Vital Healthcare Management said on Thursday.
Net profit rose 86% to $217.6m, including a $168.5m gain on the value of Vital’s property portfolio. Some 90% of that gain came from its Australian portfolio, with the remaining 10% from New Zealand assets.
“The 2017 financial year has been a positive and productive one for Vital. We have enhanced almost every aspect of the business with solid portfolio performance underpinning the financial position,” chief executive David Carr said.
Ageing demographic drivers continued to support demand for healthcare services and the company was looking confidently at 2018.
The hospital and healthcare property developer and investor has been expanding and diversifying its portfolio since it raised $160m in a rights issue last year. It spent $190m on the seven major acquisitions across Australasia in the year, and says five have future brownfield potential, while it has $A62.6m ($67.2m) in five brownfield projects currently under way. NZN