Vital Healthcare Property Trust reports strong Q1 FY26 performance

Vital Healthcare Property Trust confirmed a FY26 first-quarter distribution of NZD 0.02437500 per unit, with total monies associated with the distribution at NZD 16,594,494. This distribution is supported by 5.0% growth in net property income, reaching NZD 39,026, and an Adjusted Funds from Operations (AFFO) per unit of NZD 2.82. The company’s units closed at NZD 2.23 on 30 September 2025, yielding a 12-month total return of 25.8%.

Key highlights include the practical completion of NZD 148m worth of developments across three sites: Boulcott Hospital expansion, Endoscopy Auckland, and Wakefield Hospital Stage 2a. These contributed to a sector-leading Weighted Average Lease Expiry (WALE) of 19.1 years and 99% occupancy. The remaining committed development spend is NZD 19.6m out of a total projected cost of NZD 201.3m. Vital also completed non-core asset sales, including Toronto Private Hospital for A$38.3m and a 50% interest in Kawarau Park Health Hub for $36m, with proceeds designated for debt repayment and future development opportunities.

Vital was recognised as a Global Sector Leader in the 2025 GRESB Assessment for both Standing Investments and Developments within Listed Healthcare, scoring 87/100 for Standing Investments and 97/100 for Developments. Total unitholders' funds increased by 3.8% to NZD 1,742,941, with net tangible assets per unit rising 3.6% to NZD 2.56.