INTERIM REPORT AS AT 31 DECEMBER 2017 INVESTING IN AUSTRALASIA'S HEALTHCARE INFRASTRUCTURE

INTERIM REPORT AS AT 31 DECEMBER 2017 INVESTING IN AUSTRALASIA'S HEALTHCARE INFRASTRUCTURE

Vital is commited to working with our operating partners and their patients to achieve positive healthcare outcomes. CONTENTS 2 CHAIRMAN AND CEO S REPORT 9 24 INDEPENDENT AUDITORS REPORT 25 DIRECTORY

VALUE OF PORTFOLIO $1.67BN TOTAL RETURN FOR THE 12 MONTHS TO 31 DECEMBER 2017 13.73% NET TANGIBLE ASSET (NTA) UPLIFT OF 13 CENTS PER UNIT OR 6.5% TO $2.19 GROSS RENTAL INCOME* GROWTH OF 17.9% TO OPERATING PROFIT* BEFORE TAX OF $30.4M UP $44.8M 3.5% NET DISTRIBUTABLE INCOME OF PORTFOLIO WEIGHTED AVERAGE CAP RATE FIRMED 17 BASIS POINTS TO $22.8M 5.85% * 1H17 adjusted for $13.8m lease termination receipt received in October 2016 and associated tax implications

2 CHAIRMAN AND CEO S REPORT STRONG INTERIM RESULT Vital confirmed a second quarter cash distribution of 2.125 cents per unit. Highlights Portfolio lease term increased to 18.6 years (from 17.7 years at 30 June 2017) while retaining high occupancy levels at 99.3% Same property NOI increased 3.5% over the prior year period Net Distributable Income of $22.8m or 5.26c per unit AFFO per unit of 5.40c, generating a sector leading payout ratio of approximately 79% Portfolio yield firmed to 5.85% (from 6.03% at 30 June 2017), generating an interim gain of $42.8m NTA per unit of $2.19, up 7% from 30 June 2017 Finance costs declined 57bps to 4.09%, balance sheet deployed with gearing now at 36.8% Acquisition of Acurity New Zealand Hospital portfolio, Eden Rehabilitation Hospital and The Hills Clinic in Australia for NZ$187m Development pipeline (6 projects) of approximately NZ$144m over the next four years. Management integration further strengthening market leading Australasian healthcare platform David Carr, Chief Executive of Vital s Manager NorthWest Healthcare Properties Management Limited, said, Aligning with our core strategy, many of Vital s recent acquisitions have been off-market sale and leaseback investments. These opportunities enable Vital to work closely with our partners and be thoughtful about lease terms in order to deliver exceptional long term outcomes. Many of these investments include attractive future development opportunities where we continue to support our partners with long-term capital, backed by undeniable demographic and healthcare demand trends. Notwithstanding a busy period looking at new opportunities the team continues to ensure that the core portfolio remains in great shape. Over the six months we extended our market leading portfolio lease term from 17.7 years to 18.6 years and continued to maintain portfolio occupancy over 99%. Following years of strong performance and its unique investment characteristics, healthcare real estate yields continue to compress, supported new investors by growing local and global demand. Vital s revaluation gains have been a consistent driver of NTA growth over recent years, under-pinning unit price performance. We retain a positive outlook and we remain excited about a range of asset management initiatives and potential opportunities over the remainder of 2018, said Mr Carr. Management integration In January 2018, Vital s management company announced the integration of its Australian and New Zealand management platforms. Effective today, Vital s manager will transition to its new name, NorthWest Healthcare Properties Management Limited from Vital Healthcare Management Limited. Vital Healthcare Property Trust s name will not change, nor will its NZX ticker symbol VHP. David Carr and Stuart Harrison will continue as Chief Executive Officer and Chief Financial Officer, respectively. There is no change to Vital s well defined strategy, remaining absolutely focused on healthcare real estate investment with a continued focus on distribution sustainability and long-term value creation. Vital unitholders will benefit from a larger team working on their behalf, in both New Zealand and Australia, strengthening and broadening key

3 CHAIRMAN AND CEO S REPORT All NZ$m (unless otherwise stated) Actual 1H18 Normalised 1H17 1 Change $m Change % Gross rental income ($m) 44.8 38.0 6.8 17.9 Net rental income ($m) 43.2 37.0 6.2 16.6 Total expenses 12.8 7.7 5.1 67.2 Operating profit before tax ($m) 30.4 29.3 1.0 3.5 Gross distributable income ($m) 25.7 26.1 (0.4) (1.6) Current Tax - NZ & Australia ($m) 2.9 2.3 0.6 23.6 Net distributable income ($m) 22.8 23.8 (1.0) (4.1) Net distributable income per unit (earned) (cpu) 5.3c 5.7c -0.5c (8.0) AFFO (cpu) 5.4c 5.8c -0.4c (6.7) Net distributable income payout ratio 81% 74% Units on issue (weighted average million) 432.8 414.9 1 Adjusted for $13.8m lease termination receipt received in October 2016 and associated tax implications relationships as Australasia s preeminent healthcare management platform. Interim valuations and portfolio activity In order to assess whether any valuation change has occurred for the half year to 31 December 2017, the incumbent independent valuers from 30 June 2017 were commissioned to provide external desktop reviews. As a result, Vital recorded an increase of $42.8m in the fair value of its portfolio to $1.67bn, or 2.9% over carrying book value. The increase is over and above acquisitions and development expenditure incurred in the period. Vital s WACR for the six months to 31 December 2017 firmed approximately 17 bps to 5.85%. The Australian portfolio reported a 16 bps firming in capitalisation rate to 5.85% and the New Zealand portfolio firmed 14 bps to 5.86%. The valuation uplift was primarily driven by firmer capitalisation rates, but also supported by incremental increases in income as a result of rent reviews over the period. Vital s WALE increased to 18.6 years (from 17.7 years) primarily reflecting the recent acquisition of the Acurity portfolio with initial lease terms of 30 years. The long WALE and consistently high occupancy levels of above 99% are portfolio traits that underpin Vital s sustainable distribution and reflect the depth of established long-term relationships with our key partners. A total of 31 rent reviews (approximately 22% of total income) were completed to 31 December 2017, resulting in rent growth of 1.1%. With around 45% of Vital s total income remaining subject to review to 30 June 2018, we expect these reviews will contribute to forecast income growth over the period approximately in line with inflation. With a relatively benign lease expiry profile at the start of FY18 representing 1.7% of total income (22 leases), approximately half of these renewals or expiries are now completed, with a 100% retention rate. We look to resolve the remaining expiries over the next six months with a high expectation of renewal and we also continue to proactively focus on expiries beyond 2018. Financial performance Gross rental income grew 17.9% during the period after adjusting for a one-off lease termination receipt of $13.8m relating to two Gold Coast properties in the prior year. After property expenses, net income grew 16.6%.

4 CHAIRMAN AND CEO S REPORT GRAEME HORSLEY CHAIRMAN & INDEPENDENT DIRECTOR We continue to drive forward our scale and diversification strategy. Over the balance of the year we look to deliver on value-add opportunities, further enhancing the quality of our earnings, underpinning distribution sustainability. DAVID CARR

5 CHAIRMAN AND CEO S REPORT Bowen Hospital, acquired from operator Acurity Health Group, provides new partnership opportunities. This strong operating result was driven by sameproperty income performance of 8.6% and over NZ $410m of acquisitions and approximately NZ$40m of developments over the last 24 months. Finance expense of $10.5m was up 55% from the prior year owing to higher overall debt levels during the last 12 months. This reflects significant acquisition and development activity following the pay down facilities on the back of the July 2016 capital raise. Other expenses increased to $12.8m primarily the result of an accrual provision for a manager incentive fee of $5.8m ($3.5m in 1H17) along with base management fees increasing to $5.6m ($3.7m in 1H17) due to the higher asset base over the previous period. The incentive fee provision is calculated in accordance with the Trust Deed and based on the average increase in the value of the Trust s assets over book value for the last three years, and does not crystallise until the end of the financial year following completion of the 30 June 2018 year-end independent asset valuations. Net distributable income for the period was $22.8m equating to 5.26 cpu. Adjusting for income related to a one-off lease termination and rental reversion on releasing at two Gold Coast properties, net distributable income per unit for the period increased 3.5% from the prior year. AFFO, which adjusts for maintenance capital expenditure and lease incentives, was broadly in line with net distributable income on a per unit basis. For the 6 months to 31 December 2017, Vital s AFFO payout ratio reflected a prudent and sustainable 79%. Treasury and capital management Vital s loan-to-value ratio (LVR) was 36.8% at 31 December 2017, up from 24.4% the same time last year. It remains well below bank and Trust Deed covenants of 50%. Accordingly, the Trust maintains an appropriate level of flexibility to finance announced development commitments over the next four years. Partially offsetting the increased finance expense due to higher gearing was a 57bps decrease in Vital s weighted average cost of debt to 4.09% (including bank line and margin fees) compared to the prior year. At year end Vital had a hedged interest rate position of 51.9% with a 5.76 year average duration. Acquisitions Vital acquired five properties in the first half of the year for a total cost of NZ$187m. In July 2017, Vital closed on the acquisition of The Hills Clinic in Kellyville, NSW, 40km north-west of the Sydney CBD for A$30.3m. The Hills is a two-storied purpose-built mental health hospital leased to Healthe Care, Australia s third largest corporate private hospital operator and pan-asian healthcare services group, on a 30-year lease. In December 2017, Vital acquired Eden Rehabilitation Hospital in Cooroy, Queensland for A$23.8m. Eden is a private rehabilitation hospital leased to Healthe Care Australia for 20 years, with future brownfield potential.

6 CHAIRMAN AND CEO S REPORT All NZ$m (unless otherwise stated) Actual 1H18 Actual FY17 Change $m Change % Net tangible assets ($ per unit) 2.19 2.05 6.54 Investment properties ($m) 1,670.8 1,376.2 294.6 21.4 Total assets ($m) 1,687.4 1,392.2 295.2 21.2 Bank debt ($m) 613.6 401.9 Unitholders funds ($m) 952.3 879.8 72.5 8.2 Units on issue (m) 435.4 428.6 6.8 1.6 Weighted average cost of debt (%) 4.09 4.34 LVR (%) 36.8 29.3 Also in December 2017, Vital received OIO approval to acquire the previously announced Wakefield and Bowen Hospitals in Wellington and acquired a third asset from Acurity Health Group, Royston Hospital in Hastings, for NZ$122m. Vital has also committed to fund up to NZ $106.5m of brownfield development at the three hospitals over the next four years. Development activity update In the first half of the year, Vital completed brownfield developments at Sportsmed Consulting in Adelaide, Maitland Private Hospital in NSW and the Palm Beach Currumbin Clinic in Queensland representing approximately A$20m of spending over the life of these projects. Three further development projects, totalling approximately A$34m remain in various stages of development. The projects will facilitate expansion of healthcare services including additional operating theatres, ward expansions and new consulting suites to meet increased demand for services. These three projects are forecast for completion between April and June 2018, with approximately A$21m in costs to complete. The longer term brownfield development programme, which totals approximately NZ$144m including the aforementioned projects under construction and planned works in the Acurity portfolio, remains a core part of Vital s scale and diversification strategy. It will continue to underpin earnings sustainability, improve asset quality and enhance long-term value. Distributions The Board confirmed that investors will receive a second quarter distribution of 2.125 cents per unit with 0.1543 cpu of imputation credits attached. The record date is 15 March 2018 and payment will be made on 29 March 2018. Vital s Distribution Reinvestment Plan remains available to investors for this distribution with a 1.0% discount being applied when determining the strike price. The Board has also reconfirmed its full year guidance for a cash distribution of 8.5 cents per unit.

7 CHAIRMAN AND CEO S REPORT Outlook Mr Carr said With a solid foundation and a defensive and resilient portfolio position, we look forward to the continued execution of our disciplined scale and diversification strategy. Irrespective of periodic political or regulatory interference in an otherwise entrenched healthcare systems in New Zealand and Australia, we continue to see strong demographic, aging and technological trends driving demand for healthcare services delivered from quality healthcare infrastructure. Vital is at the forefront of this structural growth opportunity with the most experienced healthcare real estate management team in Australasia and the reputation as a preferred healthcare real estate capital partner, we are well placed for the future. GRAEME HORSLEY MNZM Chairman & Independent Director Vital Healthcare Management Limited Manager of Vital Healthcare Property Trust DAVID CARR Chief Executive Officer Vital Healthcare Management Limited Manager of Vital Healthcare Property Trust

8 CHAIRMAN AND CEO S REPORT

0 FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 DECEMBER 2017

FIN-1 CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME For the period ended 31 December 2017 Note 6 months Dec-17 6 months Dec-16 Gross property income from rentals 44,752 51,775 Gross property income from expense recoveries 5,183 3,353 Property expenses (6,782) (4,315) Net property income 3 43,153 50,813 Other income/(expenses) (12,794) (7,650) Finance income 57 71 Finance expense (10,540) (6,817) Operating Profit 19,876 36,417 Other gains/(losses) Revaluation gain/(loss) on investment property 6 42,774 13,100 Fair value gain/(loss) on foreign exchange derivatives (284) (701) Fair value gain/(loss) on interest rate derivatives 116 8,080 Unrealised gain/(loss) on foreign exchange (1,366) (1,869) 41,240 18,610 Profit before income tax 61,116 55,027 Taxation expense 4 (8,236) (9,503) Profit for the period attributable to unitholders of the Trust 52,880 45,524 Other comprehensive income Items that may be reclassified subsequently to profit and loss: Movement in foreign currency translation reserve 34,020 (4,547) Realised foreign exchange gains/(losses) on hedges 1,634 10,129 Current taxation (expense)/credit (458) (2,836) Unrealised foreign exchange gains/(losses) on hedges (3,656) (8,505) Deferred taxation (expense)/credit 1,024 2,381 Fair value gain/(loss) on net investment hedges (4,445) 715 Deferred taxation (expense)/credit 1,244 (200) Total other comprehensive income/(loss) after tax 29,363 (2,863) Total comprehensive income after tax 82,243 42,661 Earnings per unit Basic and diluted earnings per unit (cents) 5 12.22 10.97 The notes on pages FIN-5 to FIN-14 form part of and are to be read in conjunction with these financial statements.

FIN-2 CONSOLIDATED STATEMENT OF FINANCIAL POSITION As at 31 December 2017 Note Dec-17 Audited Jun-17 Non-current assets Investment properties 6 1,670,846 1,376,243 Derivative financial instruments 7 1,075 1,499 Other non-current assets 326 327 Total non-current assets 1,672,247 1,378,069 Current assets Cash and cash equivalents 10,453 3,352 Trade and other receivables 1,368 367 Other current assets 2,242 7,886 Derivative financial instruments 7 1,099 2,554 Total current assets 15,162 14,159 Total assets 1,687,409 1,392,228 Unitholders' funds Units on issue 8 553,824 538,469 Reserves 11,557 (11,295) Retained earnings 386,933 352,647 Total unitholders' funds 952,314 879,821 Non-current liabilities Borrowings 9 613,588 401,879 Income in advance 1,136 1,541 Derivative financial instruments 7 11,543 12,142 Deferred tax 77,880 71,719 Total non-current liabilities 704,147 487,281 Current liabilities Trade and other payables 9,702 11,537 Income in advance 3,114 2,407 Derivative financial instruments 7 2,640 97 Taxation payable 15,492 11,085 Total current liabilities 30,948 25,126 Total liabilities 735,095 512,407 Total unitholders' funds and liabilities 1,687,409 1,392,228 For and on behalf of the Manager, Vital Healthcare Management Limited G. Horsley, Chairman C. Higgins, Director 27 February 2018 The notes on pages FIN-5 to FIN-14 form part of and are to be read in conjunction with these financial statements.

FIN-3 CONSOLIDATED STATEMENT OF CHANGES IN EQUITY For the period ended 31 December 2017 Units on issue Retained earnings Translation of foreign operations Foreign exchange hedges Share based payments Total unitholders' funds For the six months ended 31 December 2016 () Balance at the start of the period 369,220 171,617 (81,530) 58,095 6,317 523,719 Changes in unitholders' funds 166,056 - - - (6,317) 159,739 Manager's incentive fee - - - - 3,490 3,490 Profit for the period - 45,524 - - - 45,524 Distributions to unitholders - (18,363) - - - (18,363) Other comprehensive income for the period Movement in foreign currency translation reserve - - (4,547) - - (4,547) Realised foreign exchange gains on hedges - - - 7,293-7,293 Unrealised foreign exchange gains/ (losses) on hedges - - - (6,124) - (6,124) Fair value gains on net investment hedges - - - 515-515 Balance at the end of the period 535,276 198,778 (86,077) 59,779 3,490 711,246 For the six months ended 31 December 2017 () Balance at the start of the period 538,469 352,647 (83,713) 60,104 12,314 879,821 Changes in unitholders' funds 15,355 - - - (12,314) 3,041 Manager's incentive fee - - - - 5,803 5,803 Profit for the period - 52,880 - - - 52,880 Distributions to unitholders - (18,594) - - - (18,594) Other comprehensive income for the period Movement in foreign currency translation reserve - - 34,020 - - 34,020 Realised foreign exchange gains on hedges - - - 1,176-1,176 Unrealised foreign exchange gains/ (losses) on hedges - - - (2,632) - (2,632) Fair value losses on net investment hedges - - - (3,201) - (3,201) Balance at the end of the period 553,824 386,933 (49,693) 55,447 5,803 952,314 The notes on pages FIN-5 to FIN-14 form part of and are to be read in conjunction with these financial statements.

FIN-4 CONSOLIDATED STATEMENT OF CASH FLOWS For the period ended 31 December 2017 Note 6 months Dec-17 6 months Dec-16 Cash flows from operating activities Property income 44,942 55,923 Recovery of property expenses 4,308 3,213 Interest received 43 64 Property expenses (6,167) (6,298) Management and trustee fees (5,575) (3,910) Interest paid (9,620) (6,566) Tax (paid)/refund 755 (2,839) Other trust expenses (1,014) (3,452) Net cash provided by/(used in) operating activities 27,672 36,135 Cash flows from investing activities Receipts from foreign exchange derivatives 1,634 11,087 Capital additions on investment properties (9,801) (9,921) Purchase of properties (182,510) (103,649) Prepaid acquistion costs (1,003) (51) Tenant incentives (2,314) (1,088) Payments for foreign exchange derivatives (171) - Net cash provided by/(used in) investing activities (194,165) (103,622) Cash flows from financing activities Debt drawdown 189,168 86,504 Issue of units (net of issue costs) - 156,525 Repayment of debt - (169,356) Costs associated with Distribution Reinvestment Plan (14) (12) Distributions paid to unitholders (15,553) (15,643) Net cash from/(used in) financing activities 173,601 58,018 Net increase/(decrease) in cash and cash equivalents 7,108 (9,469) Effect of exchange rate changes on cash and cash equivalents (7) 14 Cash and cash equivalents at the beginning of the period 3,352 12,980 Cash and cash equivalents at the end of the period 10,453 3,525 The notes on pages FIN-5 to FIN-14 form part of and are to be read in conjunction with these financial statements.

FIN-5 NOTES TO THE CONDENSED CONSOLIDATED INTERIM For the six months ended 31 December 2017 1 GENERAL INFORMATION Vital Healthcare Property Trust ("VHP" or the "Trust") is a unit trust established under the Unit Trusts Act 1960 by a Trust Deed dated 11 February 1994 as subsequently amended and replaced, domiciled in New Zealand. The Trust is managed by Vital Healthcare Management Limited (the Manager). The Manager is a registered managed investment scheme manager under the Financial Markets Conduct Act. The condensed consolidated interim financial statements of VHP for the period ended 31 December 2017 comprise VHP and its subsidiaries (together referred to as the Group). VHP is listed on the New Zealand Stock Exchange (NZX) and is a FMC reporting entity for the purpose of the Financial Markets Conduct Act 2013. The Trust's principal activity is the investment in health sector related properties. The condensed consolidated interim financial statements are presented in New Zealand Dollars ($) which is the Trust's functional and presentation currency. All information has been rounded to the nearest thousand dollars ($000), unless stated otherwise. These condensed consolidated interim financial statements were approved by the Board of Directors of the Manager on 27 February 2018. 2 BASIS OF PREPARATION Statement of compliance These condensed consolidated interim financial statements have been prepared in accordance with Generally Accepted Accounting Practice in New Zealand (NZ GAAP), NZ IAS 34 and IAS 34 Interim Financial Reporting. The accounting policies have been consistently applied, when compared to those used in the 2017 Annual Report. The 2017 Annual Report complies with New Zealand equivalents to International Financial Reporting Standards (NZ IFRS) and other applicable Financial Reporting Standards issued and effective at the time of preparing those statements. Basis of measurement The condensed consolidated interim financial statements have been prepared on the historical cost basis except for derivative financial instruments and investment properties which are measured at fair value. Use of estimates and judgements The preparation of financial statements in conformity with NZ IFRS requires the use of certain critical accounting estimates and judgements that affect the application of policies and reported amount of assets and liabilities, income and expenses. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the financial statements are as follows: Note 4 - taxation Note 6 - valuation of investment property Amendments to NZ IFRS All standards and amendments effective in the current period have been adopted and have no impact on these condensed consolidated interim financial statements.

FIN-6 NOTES TO THE CONDENSED CONSOLIDATED INTERIM (CONT.) 3 SEGMENT INFORMATION The principal business activity of the Trust and its subsidiaries is to invest in Health Sector related properties. NZ IFRS 8 requires operating segments to be identified on the basis of internal reports about components of the Group that are regularly reviewed by the Board of Directors of the Manager, which is the chief operating decision maker in order to allocate resources to the segments and to assess their performance. The information reported to the Group's chief operating decision maker is based on primarily one industry sector, investing in Health Sector related properties. The Group operates in both Australia and New Zealand. The following is an analysis of the Group's revenue and results from continuing operations by reportable segment. Australia New Zealand Total Segment profit for the period ended 31 December 2017 (): Net property income 34,437 8,716 43,153 Other expense (5,004) (7,790) (12,794) Net finance expense (5,548) (4,935) (10,483) 23,885 (4,009) 19,876 Fair value gain/(loss) on interest rate derivatives - 116 116 Revaluation gains on investment properties 37,807 4,967 42,774 Other foreign exchange gains/(losses) - (1,650) (1,650) Total segment profit before income tax 61,692 (576) 61,116 Taxation (expense) - - (8,236) Profit for the period - - 52,880 Segment profit for the period ended 31 December 2016 (): Net property income 42,933 7,880 50,813 Other expense (3,497) (4,153) (7,650) Net finance expense (2,809) (3,937) (6,746) 36,627 (210) 36,417 Fair value gain/(loss) on interest rate derivatives - 8,080 8,080 Revaluation gains on investment properties 10,399 2,701 13,100 Other foreign exchange gains/(losses) (3) (2,567) (2,570) Total segment profit before income tax 47,023 8,004 55,027 Taxation (expense) - - (9,503) Profit for the period - - 45,524

FIN-7 NOTES TO THE CONDENSED CONSOLIDATED INTERIM (CONT.) 3 SEGMENT INFORMATION (continued) Net property income consists of revenue generated from external tenants less property operating expenditure. The Group has two tenants with over 10% of gross property income from rentals totalling $25.4m, all in Australia (31 December 2016: two tenants totalling $33.7m). Included in net property income for the six months ended 31 December 2016 is a lease termination receipt of $13.8m. Segment profit represents the profit earned by each segment including allocation of identifiable administration costs, finance costs, revaluation gains/(losses) on investment properties, and gains/(losses) on disposal of investment properties. This is the measure reported to the chief operating decision maker for the purposes of resource allocation and assessment of segment performance. Australia New Zealand Total Segment assets at 31 December 2017 (): Investment properties 1,275,012 395,834 1,670,846 Other non-current assets 293 1,108 1,401 Current assets 7,075 8,087 15,162 Consolidated assets 1,282,380 405,029 1,687,409 Segment assets at 30 June 2017 (Audited): Investment properties 1,110,530 265,713 1,376,243 Other non-current assets 286 1,540 1,826 Current assets 4,813 9,346 14,159 Consolidated assets 1,115,629 276,599 1,392,228 Segment liabilities at 31 December 2017 (): Borrowings 476,303 137,285 613,588 Other liabilities 90,042 31,465 121,507 Consolidated liabilities 566,345 168,750 735,095 Segment liabilities at 30 June 2017 (Audited): Borrowings 270,855 131,024 401,879 Other liabilities 77,907 32,621 110,528 Consolidated liabilities 348,762 163,645 512,407 For the purposes of monitoring segment performance and allocating resources between segments: All assets are allocated to reportable segments All liabilities are allocated to reportable segments

FIN-8 NOTES TO THE CONDENSED CONSOLIDATED INTERIM (CONT.) 4 TAXATION 6 months Dec-17 6 months Dec-16 Profit before tax for the period 61,116 55,027 Taxation expense - 28% on profit before income tax (17,113) (15,408) Effect of different tax rates in foreign jurisdictions 8,020 4,560 Tax exempt income 1,796 736 Foreign tax credits 1,763 2,918 Tax charges on overseas investments (4,279) (2,668) Over/(under) provided in prior periods 1,263 75 Other adjustments 314 284 Taxation (expense) (8,236) (9,503) The taxation (expense) is made up as follows: Current taxation (2,890) (4,411) Deferred taxation (5,346) (5,092) Total taxation (expense) (8,236) (9,503)

FIN-9 NOTES TO THE CONDENSED CONSOLIDATED INTERIM (CONT.) 5 EARNINGS PER UNIT Basic and diluted earnings per unit is calculated by dividing the profit attributable to unitholders of the Trust by the weighted average number of ordinary units on issue during the period. Dec-17 Dec-16 Profit attributable to unitholders of the Trust () 52,880 45,524 Weighted average number of units on issue (000's of units) 432,849 414,852 Basic and diluted earnings per unit (cents) 12.22 10.97 Dec-17 $000's Dec-16 $000's Distributable income Profit before income tax 61,116 55,027 Revaluation (gains) (42,774) (13,100) Unrealised foreign exchange (gain)/loss 1,366 1,869 Unrealised foreign exchange (gain)/loss derivatives 284 701 Unrealised interest rate (gain)/loss derivatives (116) (8,080) Manager's incentive fee 5,803 3,490 Profit used in calculating gross distributable income 25,679 39,907 Current tax charge (2,890) (4,411) Profit used in calculating net distributable income 22,789 35,496 Gross distributable income (cpu) * 5.93 9.62 Net distributable income (cpu) * 5.26 8.56 * Based on weighted average number of units on issue.

FIN-10 NOTES TO THE CONDENSED CONSOLIDATED INTERIM (CONT.) 6 INVESTMENT PROPERTIES Dec-17 Audited Jun-17 Carrying value of investment property at the beginning of the period 1,376,243 951,879 Acquisition of properties 187,384 223,562 Capitalised costs 10,233 31,637 Capitalised interest costs 402 302 Net capitalised incentives (167) 2,048 Foreign exchange translation difference 53,977 (1,734) Change in fair value 42,774 168,549 Carrying value of investment property at the end of the period 1,670,846 1,376,243 Carrying value of investment property includes: Fair value of investment properties 1,668,256 1,372,587 Income in advance 2,590 3,656 Carrying value of investment property at the end of the period 1,670,846 1,376,243 Investment Properties Valuation The Group's policy is for investment property to be measured at fair value for which the Group completes property valuations at least annually by independent registered valuers. All investment property was valued by independent registered valuers as at 30 June 2017. The fair value of investment property as at 31 December 2017 was determined by the Manager, using market data provided by independent valuers and based on independent valuation advice. This follows recent comparable transactional evidence of market property sale transactions and a review of leasing activity undertaken in the period. The Group holds the freehold to all properties except the car parks at the rear of Ascot Hospital and Ascot Central. The total value of leasehold property at 31 December 2017 was $3.1m (30 June 2017: $3.2m) representing 0.2% of the total investment property portfolio (30 June 2017: 0.2%). The weighted average lease length of leasehold property at 31 December 2017 was 1.3 years (30 June 2017: 1.8 years). Acquisition of properties During the period, the Group acquired five healthcare properties. Three properties are located in New Zealand, two in Wellington and one in Hastings.Two properties are in Australia, one in Cooroy, Queensland, and one in Kellyville, New South Wales. The purchase prices included Australian stamp duty and other transaction costs.

FIN-11 NOTES TO THE CONDENSED CONSOLIDATED INTERIM (CONT.) 7 DERIVATIVE FINANCIAL INSTRUMENTS Hedge Accounting The Group is exposed to foreign exchange risk on its net investment in its Australian functional currency subsidiaries and hedges this risk using Australian denominated borrowings and foreign exchange derivatives. The Group has designated Australian denominated borrowings and foreign exchange derivatives as hedges of a net investment in a foreign operation (net investment hedge). The Group prospectively and retrospectively tests the hedges for effectiveness on a semi-annual basis. The portion of the foreign exchange differences arising on the hedging instruments determined to be an effective hedge is recognised in other comprehensive income. Any ineffective portion is recognised in profit or loss. The face value of hedging instruments designated in net investment hedges is: Dec-17 Audited Jun-17 Borrowings 98,934 94,488 Forward exchange contracts (nominal amount) 219,853 104,987 Interest rate swaps Interest rate swaps are measured using a valuation model based on the present value of estimated future cash flows and discounted based on the applicable yield curves derived from observable market interest rates. The Group has determined the interest rate swaps are Level 2 fair value measurements. The fair value of interest rates swaps is a liability of $10,624,836. Foreign exchange derivatives Foreign exchange derivatives are measured using a valuation model based on the applicable forward price curves derived from observable forward prices. The Group has determined the foreign exchange derivatives are Level 2 fair value measurements. The fair value of foreign exchange derivatives is a liability of $1,384,237. There have been no reclassifications of fair value instruments between levels in the period ended 31 December 2017 and 30 June 2017. Derivatives are all carried at fair value on the Statement of Financial Position. The carrying amounts of all other financial instruments approximate their fair value. Dec-17 Audited Jun-17 Nominal value of foreign exchange contracts - AUD 100,000 50,000 Nominal value of foreign exchange options - AUD 100,000 50,000

FIN-12 NOTES TO THE CONDENSED CONSOLIDATED INTERIM (CONT.) 8 UNITS ON ISSUE Dec-17 Audited Jun-17 Balance at the beginning of the period 538,469 369,220 Issue of units under Distribution Reinvestment Plan 3,073 5,928 Issue of units under Rights Issue - 159,932 Issue of units to satisfy Manager's incentive fee 12,314 6,317 Issue costs of units (32) (2,928) 15,355 169,249 Balance at the end of the period 553,824 538,469 Dec-17 000s Audited Jun-17 000s Reconciliation of number of units Balance at the beginning of the period 428,562 345,998 Issue of units under the Distribution Reinvestment Plan 1,406 2,795 Units issued under Rights Issue - 76,891 Units issued to satisfy Manager's incentive fee 5,440 2,878 Balance at the end of the period 435,408 428,562 The number of units on issue at 31 December 2017 was 435,408,454 (30 June 2017: 428,562,486). The units have no par value and are fully paid. Fully paid ordinary units carry one vote per unit and carry the right to distributions. On 23 August 2017, 5,440,157 units were issued against the 2017 Manager's incentive fee of $12,314,339 (30 June 2017: $6,316,611). Capital risk management The Group is subject to imposed capital requirements arising from the Trust Deed, which requires the total borrowings do not exceed 50% of the gross value of the Trust Fund. The Group's banking covenants require that the aggregate principal amount of the loan outstanding does not exceed 50%, (30 June 2017: 50%) of the fair market value of property at all times calculated to the Australian dollar equivalent. All banking covenants have been met during the period. The Group manages its capital to ensure that entities in the Group will be able to continue as a going concern while maximising the return to stakeholders through the optimisation of the debt and equity balance. The Group's policies in respect of capital management and allocation are reviewed regularly by the Board of Directors of the Manager. There have been no material changes in the Group's overall capital risk management strategy during the period.

FIN-13 NOTES TO THE CONDENSED CONSOLIDATED INTERIM (CONT.) 9 BORROWINGS Dec-17 Audited Jun-17 AUD denominated loans 614,628 402,649 Borrowing costs (1,040) (770) Total borrowings 613,588 401,879 The Group has a syndicated revolving multi-currency facility with ANZ Bank New Zealand Limited, Australia and New Zealand Banking Group Limited and Bank of New Zealand. The multi-currency facilities of A$600.0m and NZ $20.0m are split between: Tranche A: A$125.0m and Tranche B: A$100.0m which are due to expire on 31 March 2019; and Tranche C: A$100.0m, Tranche D: A$100.0m and NZ Dollar Facility: NZ$20.0m which are due to expire on 31 October 2020; and Tranche E: A$175m which is due to expire on 20 November 2021. The effective interest rate on the borrowings as at 31 December 2017 was 4.09% per annum (30 June 2017: 4.34%). Borrowings are secured by a Security Trust Deed dated 1 April 2003 and as amended and restated on 29 November 2016. The Security Provider comprises T.E.A. Custodians Limited in its capacity as nominee of the VHP Trustee as supervisor of the Trust and the Trust's subsidiaries. Pursuant to the Deed, a security interest has been granted of first ranking mortgages over the respective investment properties by a General Security Deed over the assets and undertakings of Vital Healthcare Property Limited and fixed and floating charges over the assets and undertakings of Vital Healthcare Australian Property Pty Limited in its capacity as trustee for Vital Healthcare Australian Property Trust and Vital Healthcare Investment Trust. 10 COMMITMENTS Dec-17 Audited Jun-17 Capital Commitments The Group was party to contracts to purchase or construct property for the following amounts: 36,770 78,234 Lease Commitments The property rental income expected to be earned by the Group from its investment property, all of which is leased out under operating leases, is set out in the table below: Not later than one year 95,954 80,901 Later than one year and not later than five years 357,609 293,850 Later than five years 1,355,903 1,059,951 1,809,466 1,434,702 As a condition of listing on the New Zealand Stock Exchange (NZSX), NZSX requires all issuers to provide a bank bond to NZSX under NZSX/DX Listing Rule 2.6.2. The bank bond required by the Trust for listing on the NZSX is $50,000.

FIN-14 NOTES TO THE CONDENSED CONSOLIDATED INTERIM (CONT.) 11 CONTINGENCIES There were no contingencies as at 31 December 2017 (30 June 2017: nil). 12 SUBSEQUENT EVENTS On 26 February 2018 the manager changed its name from Vital Healthcare Management Limited, to NorthWest Healthcare Properties Management Limited. On 27 February 2018 a gross distribution of 2.125 cents per unit was announced by the Trust. The record date for the distribution is 15 March 2018 and a payment is scheduled to unitholders on 29 March 2018. There will be 0.1543 cents per unit of imputation credits attached to the distribution. 13 RELATED PARTY TRANSACTIONS The Manager The Trust is managed by Vital Healthcare Management Limited (the "Manager"). The Manager is a wholly owned subsidiary of NWI Healthcare Properties LP. The Manager is related to the Trust and its subsidiaries as the manager of the Trust. Remuneration of the Manager The Trust paid management fees to the Manager. The calculation of management fees and incentive fees is stipulated in the Trust Deed. Management fees have been charged at 0.75% of the monthly average of the gross value of the assets of the Trust for the quarter ended on the last day of that month. Incentive fees are payable when there is an average annual increase in the gross value of the assets of the Trust Fund over the relevant financial year and the two preceding financial years. The incentive fee calculation may give rise to an excess or deficit to be applied in the calculation of future incentive fees. The incentive fee is 10% of the amount of the increase with payment being made by way of subscribing for new units. The management and incentive fees shall not exceed an amount equal to 1.75% per annum of the gross value of the Trust. Transactions with related parties include: Dec-17 Dec-16 Total fees incurred Management fees 5,589 3,743 Manager's incentive fees 5,803 3,490 Expenses charged by Vital Healthcare Management Limited 92 218 Expenses charged by Vital Healthcare Australian Property Pty Limited 1,179 1,290 12,663 8,741 Properties owned by the Trust have been managed by Vital Healthcare Management Limited, a subsidiary of NWI Healthcare Properties LP. Property management fees charged are either included in property expenses or capitalised. The amount paid to Vital Healthcare Management Limited for reimbursement of expenses was $92,430 (31 December 2016: $218,108). The amount not recovered from tenants was nil (31 December 2016: nil).

24 INDEPENDENT REVIEW REPORT TO THE UNITHOLDERS OF VITAL HEALTHCARE PROPERTY TRUST We have reviewed the condensed consolidated interim financial statements of Vital Healthcare Property Trust and its subsidiaries (together referred to as the Trust ) which comprise the consolidated statement of financial position as at 31 December 2017, and the consolidated statement of comprehensive income, consolidated statement of changes in equity and consolidated statement of cash flows for the six month period ended on that date, and a summary of significant accounting policies and other explanatory information on pages FIN-1 to FIN-14. This report is made solely to the Trust s unitholders, as a body. Our review has been undertaken so that we might state to the Trust s unitholders those matters we are required to state to them in a review report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Trust s unitholders as a body, for our engagement, for this report, or for the opinions we have formed. Manager s Responsibilities The Board of Directors of the Manager are responsible for the preparation and fair presentation of the condensed consolidated interim financial statements, in accordance with NZ IAS 34 Interim Financial Reporting and IAS 34 Interim Financial Reporting and for such internal control as the Board of Directors of the Manager determine is necessary to enable the preparation and fair presentation of the condensed consolidated interim financial statements that are free from material misstatement, whether due to fraud or error. Our Responsibilities Our responsibility is to express a conclusion on the condensed consolidated interim financial statements based on our review. We conducted our review in accordance with NZ SRE 2410 Review of Financial Statements Performed by the Independent Auditor of the Entity ( NZ SRE 2410 ). NZ SRE 2410 requires us to conclude whether anything has come to our attention that causes us to believe that the condensed consolidated interim financial statements, taken as a whole, are not prepared, in all material respects, in accordance with NZ IAS 34 Interim Financial Reporting and IAS 34 Interim Financial Reporting. As the auditor of Vital Healthcare Property Trust, NZ SRE 2410 requires that we comply with the ethical requirements relevant to the audit of the annual financial statements. A review of the condensed consolidated interim financial statements in accordance with NZ SRE 2410 is a limited assurance engagement. The auditor performs procedures, primarily consisting of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. The procedures performed in a review are substantially less than those performed in an audit conducted in accordance with International Standards on Auditing (New Zealand). Accordingly we do not express an audit opinion on those financial statements. Other than in our capacity as auditor, we have no relationship with or interests in Vital Healthcare Property Trust or its subsidiaries or the Manager. Conclusion Based on our review, nothing has come to our attention that causes us to believe that the condensed consolidated interim financial statements of the Trust do not present fairly, in all material respects, the financial position of the Group as at 31 December 2017 and its financial performance and cash flows for the six month period ended on that date in accordance with NZ IAS 34 Interim Financial Reporting and IAS 34 Interim Financial Reporting. Chartered Accountants AUCKLAND, NEW ZEALAND 27 February 2018

25 DIRECTORY MANAGER Vital Healthcare Management Limited Level 16, AIG Building 41 Shortland Street PO Box 6945, Wellesley Street Auckland 1141 Telephone: 0800 225 264 Facsimilie: +64 9 377 2776 Directors of the Manager Graeme Horsley - Chairman Andrew Evans Claire Higgins Paul Dalla Lana Bernard Crotty AUDITOR Deloitte Deloitte Centre 80 Queen Street Private Bag 115-003 Auckland 1140 Telephone: +64 9 303 0700 Facsimilie: +64 9 303 0701 LEGAL ADVISERS TO THE TRUST Harmos Horton Lusk Vero Centre 48 Shortland Street PO Box 28 Auckland 1140 Telephone: +64 9 921 4300 Facsimilie: +64 9 921 4319 Bell Gully Vero Centre 48 Shortland Street PO Box 4199 Auckland 1140 Telephone: +64 9 916 8800 Facsimilie: +64 9 916 8801 Ashurst Australia Level 26 181 William Street GPO Box 4958 Melbourne, Victoria 3001 Australia Telephone: +61 3 9679 3000 Facsimilie: +61 3 9679 3111 SUPERVISOR (PREVIOUSLY TRUSTEE) Trustees Executors Limited Level 7, 51 Shortland Street PO Box 4197 Auckland 1140 Telephone: +64 9 308 7100 Facsimilie: +64 9 308 7101 BANKERS TO THE TRUST ANZ Bank New Zealand Limited ANZ Centre 23-29 Albert Street Auckland 1010 Australia and New Zealand Banking Group Limited 27/100 Queen Street Melbourne, Victoria 3000 Australia Bank of New Zealand Deloitte Centre 80 Queen Street Auckland 1010 UNIT REGISTRAR Computershare Investor Services Limited 159 Hurstmere Road Takapuna, Auckland 0622 Private Bag 92119 Auckland 1142 New Zealand vital@computershare.co.nz Telephone: +64 9 488 8777 Facsimilie: +64 9 488 8787

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