VHP Vital Healthcare

[kiora]

Because PE is not 5 but 18.6 ?
http://www.4-traders.com/VITAL-HEALT...17/financials/

[noodles]

Property revaluations should not really be included in underlying profit

[fungus pudding]

Property revaluations should not really be included in underlying profit

So where would you put it?

[Toasty]

All time high. Yay?

[Toasty]

21/06/2016 09:39

RIGHT

PRICE SENSITIVE

REL: 0939 HRS Vital Healthcare Property Trust

RIGHT: VHP: Vital announces $160m pro rata renounceable rights offer

Vital Healthcare Management Limited (the 'Manager'), the manager of Vital

Healthcare Property Trust ('Vital'), today announced it intends to raise

approximately $160m of new equity capital through a pro rata renounceable

rights offer of new units to existing unitholders (the 'Offer'), with $120.6m

underwritten by Forsyth Barr Group Limited.

Equity-raising to support ongoing delivery of scale and diversification

strategy

David Carr, Chief Executive of the Manager said "Over the last five years

Vital has consistently delivered strong operational, financial and portfolio

results for investors. We have executed on the Board's scale and

diversification strategy to support operator growth and new acquisition

initiatives. Following the recently announced pipeline of new value-add

projects and acquisition opportunities and supported by a strong unit price,

the Board now considers it appropriate to seek further equity in this next

exciting phase of growth.

As with previous capital raisings, the Board was keen to ensure the offer

allows existing investors of Vital the opportunity to participate on an

equitable basis. A pro rata renounceable rights offer gives investors that

opportunity."

Vital intends to raise $160m of new equity through a 2-for-9 pro rata

renounceable rights offer at an issue price of $2.08 per unit. The issue

price reflects a 5.2% discount to the theoretical ex rights price ('TERP'1)

of $2.195 per unit.

NorthWest Healthcare Properties Real Estate Investment Trust and the

Directors of the Manager intend to take up all of their Rights (approximately

$39.3m). Forsyth Barr Group Limited has underwritten the balance of $120.6m.

The new units will rank equally with existing units on issue and are eligible

for the final quarter distribution for the financial year ending 30 June

2016, expected to be paid in September 2016.

Mr Carr said "We have experienced an extremely successful period of growth

and cemented a track record of being market leading long-term managers and

investors in healthcare real estate. Having established and strengthened key

operator partnerships across the sector and supported by strong fundamentals

we will continue with our scale and diversification strategy delivering

sustainable returns to investors."

The funds raised through the Offer will initially be used to reduce Vital's

bank debt. This will enable Vital to continue to pursue development,

acquisition and growth opportunities that are continually being evaluated,

and for general corporate purposes.

Further details relating to the Offer will be provided in an Offer Document

to unitholders. The Manager expects to have the Offer Document available to

investors on the NZX website under the ticker code "VHP" on 28 June 2016 and

it will be sent to unitholders shortly after that. The Offer closes on 19

July 2016.

A person should consider the Offer Document in deciding whether to acquire

units.

This release should be read in conjunction with the Offer presentation which

can be found on our website - www.vhpt.co.nz

[Jaa]

Any thoughts on the rights issue?

I am glad it is a rights issue and is renounceable but they should have included a facility to automatically market and sell unclaimed rights and return the proceeds to investors (most are retired) ala NAB. That way no one loses.

Also any thoughts on NorthWest Partners creating Vital 2.0 in Australia? Will they be merged at some point in the future or just compete with each other for assets?

[macduffy]

but they should have included a facility to automatically market and sell unclaimed rights and return the proceeds to investors (most are retired) ala NAB. That way no one loses.

Yes, it worked for NAB - and for other attractive big issues. Not always the case with smaller companies and sometimes becomes the price to pay to get an underwriter on board.

[Toasty]

I'm going to take up my full entitlement. I was going to say that this company is generally unspectacular but recent weeks have been fairly buoyant. It has been a solid performer for me for the last 10 years. Between the DRP and occasionally adding in the small dips I have been pleased with its progress.

[Onion]

ANZ Securities have added VHPRC.NZX to my portfolio -- but haven't counted the ones I got in the recent DRP! The record date for the rights issue is 29/06/2016 so I reckon it should include the DRP shares issued on 24/06/2016.

I assume that when the documents are sent they will have the correct number so probably just a timing error with the ANZ Securities calculation.

Have I misunderstood something? Do others that participated in the DRP see the same?

[777]

ANZ Securities have added VHPRC.NZX to my portfolio -- but haven't counted the ones I got in the recent DRP! The record date for the rights issue is 29/06/2016 so I reckon it should include the DRP shares issued on 24/06/2016.

I assume that when the documents are sent they will have the correct number so probably just a timing error with the ANZ Securities calculation.

Have I misunderstood something? Do others that participated in the DRP see the same?

ANZ do not add your DRP shares to your portfolio. You have to do that manually. They simply calculate the rights on your total in your portfolio at the time. You will need to manually update both the shares and rights yourself.