HealthCo Healthcare & Wellness REIT (ASX:HCW), GDI Property Group (ASX:GDI) and Cedar Woods Properties (ASX:CWP) operate across healthcare real estate, office property and residential development. Their FY2026 disclosures show different operating conditions across Australian real assets, with tenant transition, office leasing and residential settlements shaping their respective outlooks.

Interest rates remain relevant across all three businesses. Property valuations, refinancing costs and buyer borrowing capacity are influenced by the Reserve Bank of Australia's Monetary Policy settings, while Inflation affects Lease escalations, construction costs and development margins.

2026 Property Context

Australian property markets continue to operate with elevated borrowing costs and inflation above the Reserve Bank's target range. Commercial property owners face refinancing and valuation considerations, while residential developers must balance housing Demand against construction expenses and buyer financing conditions.

Perth office conditions have remained comparatively supportive, with leasing demand benefiting from Western Australian economic activity. Healthcare property has faced different pressures, particularly where landlords depend on major operating tenants.

Residential development continues to be influenced by population growth, housing undersupply, construction availability and settlement activity. These factors affect the three companies in different ways.

HealthCo Healthcare & Wellness REIT (ASX:HCW)

Business Profile

HealthCo Healthcare & Wellness REIT owns healthcare properties across hospitals, aged care, life sciences, research, primary care and wellness.

The portfolio comprised 21 assets with approximately AUD 1.3 billion of assets under management at the FY2026 result. Hospitals represented the largest component of portfolio value.

The weighted average lease expiry was 10.6 years, while the portfolio weighted average Capitalisation rate was 6.06%.

FY2026 Performance

HealthCo reported FY2026 funds from operations of AUD 21.9 million, equivalent to 4.0 cents per unit.

On an underlying look-through basis, funds from operations were 7.7 cents per unit.

Property net Operating Income was AUD 50.9 million. On a comparable asset basis, like-for-like net operating income increased 4.1%.

Rent collection across the portfolio was 100%, while occupancy was 99% by gross lettable area.

Gearing was 29.0% at the end of FY2026. Drawn Debt stood at AUD 372.3 million against total debt facilities of AUD 475 million.

The trust had approximately AUD 158 million of cash and undrawn debt capacity.

FY2027 Outlook

HealthCo has guided to reported funds from operations of at least 4.0 cents per unit for FY2027.

Underlying look-through FFO guidance is 6.1 cents per unit, while distribution guidance stands at 6.0 cents per unit.

The distribution guidance remains dependent on completion of the hospital operator transition.

The trust also has a development pipeline of approximately AUD 500 million concentrated primarily in Sydney.

Risks

The hospital operator transition remains HealthCo's main operating risk. Agreed terms must still move through the relevant approval and leasing processes before income stability can be fully assessed.

Replacement rents may differ from previous contractual levels, which could influence funds from operations and asset valuations.

Healthcare assets also require significant capital, while development projects carry construction, timing and funding risks.

Interest coverage and refinancing costs remain relevant while the portfolio moves through the transition.

What Investors May Monitor Through the Rest of 2026

Completion of leases with replacement hospital operators will remain a central operating milestone.

Investors may also monitor whether FY2027 distribution guidance is maintained following completion of the transition.

Hospital rental income, asset valuations and progress across the Sydney development pipeline may provide further information on the trust's operating position.

GDI Property Group (ASX:GDI)

Business Profile

GDI Property Group owns and manages commercial property and also operates funds management and car parking businesses.

Its direct property exposure is concentrated primarily in the Perth CBD office market. The portfolio includes Westralia Square, WS2, 197 St Georges Terrace, 5 Mill Street and One Adelaide Terrace.

GDI's Earnings therefore combine office rental income, funds management activity and car park operations.

FY2026 Performance

GDI reported funds from operations of AUD 44.5 million for FY2026, equivalent to 8.24 cents per security.

Portfolio occupancy improved to 90% after more than 20,900 square metres of leasing activity during the year.

The property division generated FFO of AUD 58.4 million.

Westralia Square contributed AUD 29.3 million, while WS2 contributed AUD 6.1 million. The CBD car park Business contributed AUD 4.5 million of FFO.

The funds management division sold or exchanged more than AUD 150 million of assets during FY2026.

Gearing stood at 33% at the end of the financial year.

GDI declared total FY2026 distributions of 5.0 cents per security and indicated a distribution of 5.0 cents for the following year, subject to no material change in circumstances.

Risks

GDI is concentrated in the Perth office market, leaving its earnings exposed to economic and employment conditions in Western Australia.

A slowdown in resources-sector activity could affect office demand, leasing conditions and car park usage.

Tenant incentives may also influence the effective Economics of new leases even where headline rents remain elevated.

Refinancing costs and property valuations remain other relevant risks in a higher interest-rate environment.

Funds management earnings can vary depending on the timing of asset sales and new fund activity.

What Investors May Monitor Through the Rest of 2026

Portfolio occupancy is an important measure to monitor as GDI works toward higher stabilised levels.

Additional leasing at WS2 and other Perth properties may provide information on office demand and rental conditions.

Execution of the buyback, asset valuations and further funds management transactions may also influence the group's position through the remainder of 2026.

Cedar Woods Properties (ASX:CWP)

Business Profile

Cedar Woods Properties is a residential and commercial property developer operating across Western Australia, Victoria, Queensland and South Australia.

Its portfolio includes land subdivisions, housing, apartments and selected commercial developments.

The group had 36 projects across four states and a development pipeline of more than 9,600 lots, homes and commercial properties at the FY2026 result.

Unlike a property landlord, Cedar Woods generally recognises earnings when completed properties settle.

FY2026 Performance

Cedar Woods reported FY2026 Revenue of AUD 502.4 million and net profit after tax of AUD 65.6 million.

Earnings per share were 77.9 cents.

Net sales reached 1,326 units during the financial year, while 1,068 settlements were completed.

Gross Margin was approximately 30%.

The company ended FY2026 with net bank debt of AUD 157.7 million. Gearing was 18% against tangible assets less cash, while available Liquidity exceeded AUD 120 million.

Interest cover stood at 8.1 times.

Cedar Woods declared total fully franked FY2026 dividends of 39.0 cents per share, comprising an interim Dividend of 14.0 cents and a final dividend of 25.0 cents.

Presales and FY2027 Outlook

Cedar Woods reported a presales book of AUD 830 million at the FY2026 result.

More than 90% of forecast FY2027 revenue was already contracted, while more than AUD 290 million of presales extended into later financial years.

The company has guided to approximately 15% growth in net profit after tax for FY2027, subject to market conditions.

The presales position provides visibility over expected revenue, although settlement and construction timing remain important to actual earnings recognition.

Risks

Presales do not eliminate settlement risk. Buyers may face difficulty obtaining finance when a property reaches settlement, particularly when borrowing costs remain elevated.

Construction cost increases can affect project margins, especially where selling prices were agreed before cost changes occurred.

Planning approvals and construction delays can also move settlements between reporting periods.

Land Acquisition prices represent another risk because future returns depend on project economics remaining viable through the development cycle.

What Investors May Monitor Through the Rest of 2026

Settlement activity against the company's FY2027 targets will remain an important operating measure.

Investors may also monitor whether the AUD 830 million presales book continues to expand and whether margins are maintained as projects move through construction.

New project acquisitions, land purchases and quarterly sales updates may provide additional information on the longer-term pipeline.

Risks to Watch

HealthCo faces the most immediate tenant-related risk as it progresses the transition across its hospital portfolio. Any delay or change in replacement rental terms could affect FFO, distributions and valuations.

GDI faces geographic concentration risk through its Perth office exposure. Changes in Western Australian employment and business conditions may affect leasing demand and occupancy.

Cedar Woods faces development and settlement risks, including construction costs, buyer financing and planning delays.

Interest rates remain a common variable across all three. Higher-for-longer borrowing costs can affect property values and refinancing for HealthCo and GDI, while Cedar Woods is exposed through buyer borrowing capacity and development financing.

Outlook Through the Rest of 2026

HealthCo's priority is completing the hospital operator transition and restoring greater visibility over rental income and distributions. Confirmation of FY2027 distribution guidance will depend on progress across that process.

GDI's outlook centres on office leasing, occupancy and funds management activity. Higher occupancy across the Perth portfolio could support FFO, while capital management through the announced buyback remains another factor.

Cedar Woods enters FY2027 with substantial presales and a significant proportion of forecast revenue already contracted. Settlement execution and construction delivery will determine how that forward book translates into earnings.

The three businesses therefore enter the remainder of 2026 with different priorities: HealthCo is focused on tenant transition, GDI on Perth office leasing and Cedar Woods on converting its residential presales into settlements.