ING Real Estate Healthcare Fund (IHF)

ING Real Estate Healthcare Fund (IHF) is a listed property trust that invests in healthcare related properties including hospitals, specialist medical office buildings, medical centres, rehabilitation facilities, residential aged-care, medical related laboratories and other purpose-built healthcare facilities. The Fund is the only ASX listed entity that focuses solely on investment in healthcare property.

ING Real Estate Healthcare Fund has an Australian portfolio of seven high quality healthcare assets valued at A$210 million (as at 30 June 2008).

Strategy

IHF’s strategy is to seek out acquisition opportunities and management of prime healthcare real estate and become the leading specialist in the Australian healthcare property sector. The sector is growing rapidly as a result of the increasing healthcare needs associated with greater life expectancy, an ageing population and advances in medical procedures and technologies.

The Fund is a long-term, value-adding investor and partner of healthcare property infrastructure. Our aim is to provide stable and growing returns for investors. As the only listed property trust specialising in healthcare real estate, IHF is very well placed to benefit from the investment opportunities provided by Australia's growing healthcare needs.

Investment performance

In the period to 30 June 2008 IHF:

• increased distributable income by 50% to A$5.1 million;
• increased distributable income per unit by 6.3% to A10.2 cents per unit;
• increased distributions to unitholders by 3.6% to A8.70 cents per unit;
• successfully completed and refinanced the A$83 million A-Grade Red Cross project; and
• enhanced averaged lease term to 12.5 years and continued strength of portfolio with 99.7% occupancy.