NZSE:VHP

Stock Analysis Report

Vital Healthcare Property Trust

Executive Summary

Vital Healthcare Property Trust is a real estate investment trust externally managed by Vital Healthcare Management Limited.

Rewards

Trading at 12.1% below its fair value

Pays a high and reliable dividend of 3.28%

Risk Analysis

Earnings are forecast to decline by an average of -9.8% per year for the next 3 years

Large one-off items impacting financial results

Shareholders have been diluted in the past year



Snowflake Analysis

Established dividend payer and slightly overvalued.

Share Price & News

How has Vital Healthcare Property Trust's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: VHP has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0.4%

VHP

0.3%

NZ REITs

0.6%

NZ Market


1 Year Return

30.2%

VHP

25.6%

NZ REITs

22.2%

NZ Market

Return vs Industry: VHP exceeded the NZ REITs industry which returned 25.6% over the past year.

Return vs Market: VHP exceeded the NZ Market which returned 22.2% over the past year.


Shareholder returns

VHPIndustryMarket
7 Day0.4%0.3%0.6%
30 Day3.5%1.1%2.4%
90 Day-1.7%-3.3%2.9%
1 Year35.4%30.2%31.2%25.6%27.3%22.2%
3 Year50.5%33.5%65.7%42.4%61.8%40.5%
5 Year114.2%72.3%97.5%52.2%96.2%52.5%

Price Volatility Vs. Market

How volatile is Vital Healthcare Property Trust's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Vital Healthcare Property Trust undervalued compared to its fair value and its price relative to the market?

12.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: VHP (NZ$2.67) is trading below our estimate of fair value (NZ$3.04)

Significantly Below Fair Value: VHP is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: VHP is poor value based on its PE Ratio (13.7x) compared to the REITs industry average (12.1x).

PE vs Market: VHP is good value based on its PE Ratio (13.7x) compared to the NZ market (20x).


Price to Earnings Growth Ratio

PEG Ratio: VHP's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: VHP is overvalued based on its PB Ratio (1.2x) compared to the NZ REITs industry average (1.2x).


Next Steps

Future Growth

How is Vital Healthcare Property Trust forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

-9.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: VHP's earnings are forecast to decline over the next 3 years (-9.8% per year).

Earnings vs Market: VHP's earnings are forecast to decline over the next 3 years (-9.8% per year).

High Growth Earnings: VHP's earnings are forecast to decline over the next 3 years.

Revenue vs Market: VHP's revenue (4.7% per year) is forecast to grow slower than the NZ market (4.9% per year).

High Growth Revenue: VHP's revenue (4.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: VHP's Return on Equity is forecast to be low in 3 years time (5.1%).


Next Steps

Past Performance

How has Vital Healthcare Property Trust performed over the past 5 years?

9.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: VHP has a large one-off gain of NZ$104.2M impacting its September 30 2019 financial results.

Growing Profit Margin: VHP's current net profit margins (78.1%) are lower than last year (83.8%).


Past Earnings Growth Analysis

Earnings Trend: VHP's earnings have grown by 9.4% per year over the past 5 years.

Accelerating Growth: VHP's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: VHP had negative earnings growth (-2.1%) over the past year, making it difficult to compare to the REITs industry average (-6.6%).


Return on Equity

High ROE: VHP's Return on Equity (8.6%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Vital Healthcare Property Trust's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: VHP has a high level of physical assets or inventory.

Debt Coverage by Assets: VHP's debt is not covered by short term assets (assets are 0.1x debt).


Financial Institutions Analysis

Asset Level: VHP's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if VHP has a sufficient allowance for bad loans.

Low Risk Liabilities: VHP reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if VHP has an acceptable proportion of non-loan assets held.

Low Risk Deposits: VHP has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if VHP has an appropriate level of bad loans.


Next Steps

Dividend

What is Vital Healthcare Property Trust's current dividend yield, its reliability and sustainability?

3.28%

Current Dividend Yield


Dividend Yield vs Market

company3.3%marketbottom25%2.9%markettop25%5.4%industryaverage3.7%forecastin3Years3.4%

Current dividend yield vs market & industry

Notable Dividend: VHP's dividend (3.28%) is higher than the bottom 25% of dividend payers in the NZ market (2.95%).

High Dividend: VHP's dividend (3.28%) is low compared to the top 25% of dividend payers in the NZ market (5.45%).


Stability and Growth of Payments

Stable Dividend: VHP's dividends per share have been stable in the past 10 years.

Growing Dividend: VHP's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (80.4%), VHP's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: VHP's dividends in 3 years are forecast to be covered by earnings (76.3% payout ratio).


Next Steps

Management

What is the CEO of Vital Healthcare Property Trust's salary, the management and board of directors tenure and is there insider trading?

2.8yrs

Average management tenure


CEO

Miles Wentworth 0

0.6yrs

Tenure

0

Mr. Miles Peter Wentworth serves as Interim manager of Vital Healthcare Management Limited at Vital Healthcare Property Trust since May 2019. He has been Director and Advisor of NorthWest Healthcare Prope ...


Management Age and Tenure

2.8yrs

Average Tenure

Experienced Management: VHP's management team is considered experienced (2.8 years average tenure).


Board Age and Tenure

4.5yrs

Average Tenure

Experienced Board: VHP's board of directors are considered experienced (4.5 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 3.6%.


Management Team

  • Miles Wentworth

    Interim Manager of Vital Healthcare Management Limited

    • Tenure: 0.6yrs
  • Richard Roos

    Managing Director of the Australian Business - Vital Healthcare Management Limited

    • Tenure: 6.5yrs
  • Steve Freundlich

    Fund Analyst & Investor Relations Manager of Vital Healthcare Management Limited

    • Tenure: 0yrs
  • Stuart Harrison

    CFO & Company Secretary of Vital Healthcare Management Limited

    • Tenure: 0yrs
  • Jason Kepecs

    Director of Investments & Investor Relations of Vital Healthcare Management Limited

    • Tenure: 0yrs
  • Chris Adams

    Executive Director of NorthWest

    • Tenure: 0yrs
  • Drugh Woods

    New Zealand Asset Manager of Vital Healthcare Management Limited

    • Tenure: 0yrs
  • Mark Norman

    National Development Manager of Vital Healthcare Management Limited

    • Tenure: 0yrs
  • Cameron Ramsay

    National Acquisitions Manager of Vital Healthcare Management Limited

    • Tenure: 3.7yrs
  • Sophie Benfell-Brinsden

    Property Manager of Vital Healthcare Management Ltd.

    • Tenure: 1.9yrs

Board Members

  • Bernie Crotty (57yo)

    Chairman of Vital Healthcare Management Limited

    • Tenure: 0yrs
    • Compensation: NZ$5.00k
  • Andrew Evans

    Independent Director of Vital Healthcare Management Limited

    • Tenure: 12.3yrs
  • Michael Stanford

    Independent Director of NorthWest Healthcare Properties Management Limited

    • Tenure: 0.08yrs
  • Graham Stuart

    Independent Director of NorthWest Healthcare Properties Management Limited

    • Tenure: 1.1yrs
  • Paul Dalla Lana (52yo)

    Director of Vital Healthcare Management Limited

    • Tenure: 7.9yrs

Company Information

Vital Healthcare Property Trust's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Vital Healthcare Property Trust
  • Ticker: VHP
  • Exchange: NZSE
  • Founded: 1994
  • Industry: Health Care REITs
  • Sector: Real Estate
  • Market Cap: NZ$1.202b
  • Shares outstanding: 451.92m
  • Website: https://www.vitalhealthcareproperty.co.nz

Location

  • Vital Healthcare Property Trust
  • AIG Building
  • Level 16
  • Auckland
  • 1010
  • New Zealand

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
VHPNZSE (New Zealand Stock Exchange)YesUnitsNZNZDSep 1999

Biography

Vital Healthcare Property Trust is a real estate investment trust externally managed by Vital Healthcare Management Limited. The firm investments in health and medical related properties in New Zealand and ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/11 10:32
End of Day Share Price2019/12/10 00:00
Earnings2019/09/30
Annual Earnings2019/06/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.