New Zealand Professional Investment Services Firm, Forsyth Barr

Forsyth Barr

New Zealand Professional Investment Services Firm

We are proud to be a New Zealand owned firm, with 21 offices throughout the country and over 300 employees. We assist personal, institutional and corporate clients providing a full range of investment services.

Forsyth Barr is a foundation New Zealand Exchange firm (NZX) and accredited market participant. We have been confirmed by the Financial Markets Authority as a Qualifying Financial Entity (QFE).

Research is the cornerstone of our advice. We have one of New Zealand's leading teams of analysts. Our global affiliations ensure comprehensive research coverage of all major investment markets.

Equity Bottom-Up

Vital Healthcare Property Trust / Equity Bottom-Up

<ul><li>At first glance, Vital Healthcare's (VHP) 1H26 AFFO was well ahead of our expectations.</li><li>VHP trades on a gross yield of 7.5% (33% taxpayer), 18x AFFO, and a -17% discount to book value (-12% to net asset value).</li><li>Concerns around private hospital profitability in Australia are abating.</li></ul>

At first glance, Vital Healthcare's (VHP) 1H26 AFFO was well ahead of our expectations.VHP trades on a gross yield of 7.5% (33% taxpayer), 18x AFFO, and a -17% discount to book value (-12% to net asset value).Concerns around private hospital profitability in Australia are abating.

Vital Healthcare - 1H26 Result—Looking Healthy

<ul><li>We reinstate our Vital Healthcare (VHP) rating at OUTPERFORM and a NZ$2.23 target price.</li><li>The current environment of modest inflation and stable interest rates is supportive of earnings growth, and we forecast AFFO to lift +5% by FY28.</li><li>Concerns around private hospital profitability in Australia are abating as margins improve.</li></ul>

We reinstate our Vital Healthcare (VHP) rating at OUTPERFORM and a NZ$2.23 target price.The current environment of modest inflation and stable interest rates is supportive of earnings growth, and we forecast AFFO to lift +5% by FY28.Concerns around private hospital profitability in Australia are abating as margins improve.

Vital Healthcare Solid Vital Signs—Reinstate At OUTPERFORM

Equity Capital Markets

Vital Healthcare Property Trust / Equity Capital Markets

<ul><li>Vital Healthcare (VHP) is raising NZ$220m to fund the internalisation of its management contract.</li><li>Northwest will not participate in the offer and has agreed to an escrow arrangement through to VHP's 1H26 result in February, and to not sell below a 10% stake before the FY26 result in August 2026.</li><li>The internalisation is expected to settle on 31 December 2025 or, if more time is required to satisfy the conditions, in the first quarter of calendar year 2026.</li></ul>

Vital Healthcare (VHP) is raising NZ$220m to fund the internalisation of its management contract.Northwest will not participate in the offer and has agreed to an escrow arrangement through to VHP's 1H26 result in February, and to not sell below a 10% stake before the FY26 result in August 2026.The internalisation is expected to settle on 31 December 2025 or, if more time is required to satisfy the conditions, in the first quarter of calendar year 2026.

Vital Healthcare Capital Raise And Management Internalisation

Thematic (Sector/Industry)

<ul><li>The listed property sector had a second consecutive positive month in June as Middle East tensions and inflation pressures eased.</li><li>However, it has still been a first half to forget, with the sector underperforming the wider market by <em>c.</em>5%.</li><li>Sector valuations remain attractive, trading on a -21% discount to NTA and an 8.2% gross yield.</li></ul>

The listed property sector had a second consecutive positive month in June as Middle East tensions and inflation pressures eased.However, it has still been a first half to forget, with the sector underperforming the wider market by c.5%.Sector valuations remain attractive, trading on a -21% discount to NTA and an 8.2% gross yield.

Real Estate Reflections: A First Half to Forget

<ul><li>March was another weak month for the sector as Middle East hostilities drove up interest rates.</li><li>Over the last six months, the property sector has swung from the third strongest six-month return over the last 30 years to the fifth largest decline.</li><li>In summary, share prices currently imply a c.5% long-bond yield, and we do not expect distributions will need to be cut.</li></ul>

March was another weak month for the sector as Middle East hostilities drove up interest rates.Over the last six months, the property sector has swung from the third strongest six-month return over the last 30 years to the fifth largest decline.In summary, share prices currently imply a c.5% long-bond yield, and we do not expect distributions will need to be cut.

New Zealand

Vital Healthcare Property Trust is a property trust that invests in and manages healthcare facilities in New Zealand and Australia.

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Vital Healthcare Property Trust (VHP NZ)

Vital Healthcare - 1H26 Result—Looking Healthy

VHP trades on a gross yield of 7.5% (33% taxpayer), 18x AFFO, and a -17% discount to book value (-12% to net asset value).Concerns around private...

Forsyth Barr

Vital Healthcare Solid Vital Signs—Reinstate At OUTPERFORM

The current environment of modest inflation and stable interest rates is supportive of earnings growth, and we forecast AFFO to lift +5% by FY28.

Forsyth Barr

Vital Healthcare Capital Raise And Management Internalisation

Vital Healthcare (VHP) is raising NZ$220m to fund the internalisation of its management contract. Northwest will not participate in the offer and...

Forsyth Barr

Real Estate Reflections: A First Half to Forget

The listed property sector had a second consecutive positive month in June as Middle East tensions and inflation pressures eased. However, it has...

Forsyth Barr

Real Estate Reflections Whipsaw

March was another weak month for the sector as Middle East hostilities drove up interest rates. Over the last six months, the property sector has...

Forsyth Barr

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