VHP Vital Healthcare

[Jaa]

Northwest are on notice, they need to radically improve returns for investors by lowering their fees or risk being voted out (the votes are there).

[peat]

There seems to be some love for VHP on the market recently. SP creeping up over the last week or so (i.e. after I sold out).

not for long.... sellers forcing the price back to 2:05 in one red candle.

[Onion]

not for long.... sellers forcing the price back to 2:05 in one red candle.

I feel better. Happy to be out for now.

[peat]

New Zealand Shareholders’ Association chair John Hawkins.
“In my view, it does matter when an investment looks like a cat and lives in a cattery but is actually a dog,”

http://www.sharechat.co.nz/article/b...investors.html

[Beagle]

New Zealand Shareholders’ Association chair John Hawkins.
“In my view, it does matter when an investment looks like a cat and lives in a cattery but is actually a dog,”

http://www.sharechat.co.nz/article/b...investors.html

Unitholders appear to have very good grounds to be barking mad ! Talk about being taken for a ride and so comprehensively muzzled you can't even have your say !
It beggars belief that the institutions haven't commenced legal action against the trustee for gross negligence in terms of looking after their interests. I'd be dusting off my insurance policy and ensuring the cover was topped right up if I was the trustee.

[RTM]

Delay to reporting. Enough on tomorrow anyway.


25/2/2019, 5:00 pm GENERAL
NorthWest Healthcare Properties Management Limited (the Manager), as manager of Vital Healthcare Property Trust (Vital), advises that Vital’s interim results for the period ending 31 December 2018 will be released on 1 March 2019. Vital’s interim results had previously been scheduled to be released on 26 February 2018.

Vital’s Trust Deed requires interim results to be announced no later than 75 days after 31 December, so the updated timing continues to comply with applicable regulatory requirements. The additional time will allow for finalisation of Vital’s results, which has been affected by the number of important strategic initiatives underway at the moment, including the Healthscope opportunity and the wider fee and governance review.

A conference call and webcast will be held at 11:30am (NZDT) with David Carr (Chief Executive Officer) and Stuart Harrison (Chief Financial Officer) of the Manager. You may join either or both of these.

Conference call
To attend the conference call, participants will need to dial in to one of the numbers below at least 5-10 minutes prior to the scheduled call time and identify themselves to the operator.

- New Zealand toll free 0800 122 360
- Australia toll free 1800 760 146
- North America toll free 1 844 393 3437

When prompted, please quote the Conference ID of 137117. Please contact Vital at enquiry@vhpt.co.nz if you require dial in details for any other country.

[Sideshow Bob]

https://www.nzherald.co.nz/business/...ectid=12218120

Up, down or sideways......no one knows......

[peat]

indeed, transparency not a strong point, but they have reduced some fees, and also reduced their power (ability to sack ) but could well be a token effort , as you say not obvious.

[Jaa]

I have had a read of the new fee structure and my first reaction is are they serious?? They have made it even worse!

They have reduced the % GAV fee a bit but added a lot of (expensive) nickle and dime fees for just doing their job, renewing leases, development activity, buying and selling property etc. What is the % of GAV fee for then?!?!

The incentive fee on a straight increase in NTA has increased from 10% to 10.2%. No allowance for a reference index or even inflation and no highwater mark !

Also, the chairman is now not even nominally independent.

Bet they will make even more money under this structure than before. It's damming that they didn't bother forecasting what difference the changes will make to distributions or EPS or even to retrospectively apply it for last year.

Outrageous if you ask me, but then what did we expect. Lets vote them our for real this time.

http://nzx-prod-s7fsd7f98s.s3-websit...764/297712.pdf

[Jaa]

I have had a go at estimating the difference in fees payable to Northwest under the current and proposed changes.

For FY 18, NorthWest would have made an additional $1,410,674 in fees, not including the new leasing, property and facility fees for which the info isn't available to calculate. If I had to guess I would say they would add up to at least another $500,000 in fees. So roughly $1.9m WORSE than before.

Using the 1.88b gross asset figure at the interim report, NorthWest would still make an additional $808,560 in fees under the proposed structure, not including the new leasing fees etc. So roughly $1.3m WORSE than the current fee structure.

My calculations are here (please comment if I have made any mistakes or my assumptions are off):
Vital Healthcare Proposed Fee Structure

Another key point, is that if Vital acquires the Healthscope properties, NorthWest will have yet another big payday of 1.5% of the acquisition cost. This is in-spite of Vital being forced without a shareholder vote to bankroll this ridiculous venture.

Unit holders are being fleeced yet again.