Vital Healthcare Property Trust has plenty of fire-power to spend money on either buying new properties or developing those it already owns.
At the end of December, the trust's borrowings were just 33.9 percent of total assets, well below the 50 percent limit set by both its banks and its trust deed.
That implies it could spend nearly a $100 million before breaching its borrowing limit.
Chief executive of Vital's manager, David Carr, said he can see a number of opportunities and the trust has a good balance sheet with a loan-to-value ratio of 33.9 percent.
He said that means Vital can consider either acquisitions or development.
On Friday, Vital reported a 14 percent jump in first-half profit due to rental growth, lower finance costs and a tax credit.
Vital's net profit for the six months to December rose to $16.6 million from $14.6 million in the same six months a year earlier.
Gross rental growth was 3.8 percent despite the strong New Zealand dollar. More than 73 percent of Vital's assets are in Australia.
