Highlights

  • HealthCo Healthcare & Wellness REIT (ASX:HCW) reported FY26 funds from operations of AUD 21.9 million, or 4.0 cents per unit.
  • The FY26 portfolio recorded 99% occupancy, 100% rent collection and 4.1% like-for-like net Operating Income growth.
  • October 2026 agreements addressed the remaining 10 hospitals in the operator transition programme, subject to specified approvals.
  • A 1.5-cent September-quarter distribution was declared, with FY27 distribution guidance of 6.0 cents per unit.

HealthCo Healthcare & Wellness REIT (ASX:HCW) owns healthcare and wellness property assets, with an Investment mandate spanning hospitals, aged care, government and life sciences facilities, and primary care premises. HealthCo Healthcare & Wellness REIT (ASX:HCW) units closed at AUD 0.768 on 10 November 2026. The trust’s 2026 developments centred on hospital tenancy arrangements, portfolio income and the reinstatement of quarterly distributions.

FY26 Portfolio Performance and Financial Position

For the year ended 30 June 2026, HealthCo Healthcare & Wellness REIT (ASX:HCW) reported Funds From Operations (FFO) of AUD 21.9 million, equivalent to 4.0 cents per unit. Underlying FFO was 7.7 cents per unit; this measure includes its share of Earnings from an unlisted healthcare fund in which it holds a 49.6% interest.

The FY26 portfolio achieved 100% rent collection and 99% occupancy, measured on the basis specified for the trust’s operating assets. Like-for-like net operating income increased 4.1%, excluding properties divested during FY26 and incorporating market rent reviews. At 30 June 2026, net tangible Assets stood at AUD 1.35 per unit. Gearing was 29%, while cash and undrawn Debt totalled AUD 158 million.

Hospital Leasing Developments in September and October 2026

On 24 September 2026, the transition of operations at The Mount Private Hospital to a new operator was completed. The hospital is owned by the unlisted healthcare fund rather than directly by HealthCo Healthcare & Wellness REIT (ASX:HCW). The Lease carried a state government guarantee.

On 5 October 2026, the trust announced binding agreements covering the remaining 10 hospitals owned by HealthCo and the unlisted fund. The agreements were subject to final lender consent and customary approvals. New leases were structured for 20 years with options, retained face rents and included rent escalations and incentives. On a look-through income basis, the largest tenant concentration was expected to fall from 57% to 31%, while portfolio weighted average lease expiry was expected to extend by 2.9 years to 13.5 years.

The target for completing the remaining operator transitions was 30 November 2026, subject to conditions including regulatory approvals and licence transfers. Accordingly, the October agreements should not be confused with completed transfers as of 10 November.

Distribution Reinstatement and FY27 Guidance

HealthCo Healthcare & Wellness REIT (ASX:HCW) declared a distribution of 1.5 cents per unit for the September 2026 quarter, with payment scheduled for approximately 24 November 2026. The declaration followed the October leasing agreements and aligned with FY27 distribution guidance of 6.0 cents per unit.

In August 2026, the trust also guided to FY27 FFO of at least 4.0 cents per unit and underlying FFO of 6.1 cents per unit. The outlook assumed continuity of hospital services, orderly operator transitions and no material change in market conditions. Lease approvals, transition costs, financing conditions and future rental collections remain relevant considerations for HealthCo Healthcare & Wellness REIT (ASX:HCW).

Key Insights

The trust’s FY26 operating results showed high occupancy and full rent collection, while its October agreements established a framework for changing hospital operators. The declared September-quarter distribution marked a resumption of payments, but the remaining transfers and FY27 earnings guidance still depended on execution and stated assumptions.