NorthWest Healthcare Properties REIT Provides Update on Vital Healthcare Property Trust's Strong Half Year Results

TORONTO, Feb. 26, 2018

Vital Trust

Vital Trust continues to be regarded as one of the top performing healthcare property trusts in the region, with strong and improving financial results, a loan to value ratio of 36.8%, a weighted average lease term of 18.6 years, continued high occupancy at 99.3%, and same property NOI growth of 3.5% over the prior year period.

Highlights from Vital Trust's financial reporting for the six months ended December 31, 2017 include the following:

• Net distributable income per unit increased by 3.5% over the prior year period (after adjusting for a one-time lease termination penalty received in the prior year period);
• The Board confirmed the quarterly cash distribution of $0.02125 per unit and reiterated its full year guidance for $0.085 per unit representing a 79% AFFO per unit payout ratio; and
• The fair value of the portfolio increased by 2.9% (NZ$42.8 million; weighted average cap rate of 5.85%).

The increase is over and above acquisitions and development expenditures incurred in the period.

Vital Trust also continues to leverage its management platform for future growth, with:

• Acquisition of the Acurity New Zealand Hospital portfolio, Eden Rehabilitation Clinic and the Hills Clinic in Australia for NZ$187 million;
• Development completions of A$20 million;
• Development pipeline (6 projects) totaling approximately NZ$144 million; and
• Management integration further strengthening its market leading Australasian healthcare platform.

Details on Vital Trust's interim half-year results ending December 31, 2017 are available on Vital Trust's website at www.vitalhealthcareproperty.co.nz.