Vital Healthcare Property Trust is expected to record a property revaluation loss of approximately NZ$145 million for the six months ended December 31, 2023.
This represents a 4.4% decrease since June 30, 2023.
The revaluation loss is primarily due to a softening in the weighted average capitalisation rate for the portfolio.
About 44% of the portfolio has been independently valued.
The Australian portfolio saw a 5% decrease, while the New Zealand portfolio had a 2.7% decrease.
The indicative weighted average capitalisation rate is expected to be 5.21% at the end of December, with 5.02% for the Australian portfolio and 5.61% for the New Zealand portfolio.
The revaluation loss is still subject to audit and final board approval, which will be confirmed when Vital's interim results are released on February 15, 2024.
In addition to the revaluation loss, Vital has also sold five aged care assets leased to Hall & Prior for NZ$65 million.
The sale was made at a 1% discount to the book value as of June 30, 2023.
The proceeds from the sale were used to repay debt.
Over the past 12 months, Vital has sold approximately NZ$220 million of non-core assets.
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