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Highlights:

  • HCW reported FY25 FFO of 6.6 cents per unit (AUD 36.5 million), DPU of 4.2 cents, and NTA per unit of AUD 1.44 as at 30 June 2025.

  • The portfolio achieved 98% contracted cash rent collection, 99% occupancy, and 5.2% like-for-like NOI growth during the year.

  • HCW is working with the Receiver on the Healthscope sale process and has secured conditional agreements with alternative operators should replacement tenants be required.

HealthCo Healthcare & Wellness REIT (ASX:HCW) has announced its financial and operational results for the year ended 30 June 2025, alongside an update on the ongoing Healthscope tenant transition process.

For FY25, HCW recorded Funds From Operations (FFO) of 6.6 cents per unit (AUD 36.5 million) and declared a distribution per unit (DPU) of 4.2 cents. As at 30 June 2025, the net tangible asset (NTA) per unit stood at AUD 1.44. The REIT reported pro-forma cash and undrawn debt of AUD 103.8 million, adjusted for exchanged asset sales, and pro-forma gearing of 31% on the same basis.

Operationally, HCW reported a 98% contracted cash rent collection rate and maintained a portfolio occupancy of 99%. Like-for-like net operating income (NOI) grew by 5.2% during the period. The portfolio includes 11 hospitals owned by HCW and the Unlisted Healthcare Fund (UHF), all of which remain operational.

In relation to Healthscope, the tenant for these hospitals, HCW confirmed that Healthscope has paid 100% of contracted rent across all HCW and UHF assets. HCW and UHF are currently working with the appointed Receiver on the sale process for Healthscope, which aims to identify replacement tenants for the portfolio. Any proposed sale will require the consent of HCW and UHF.

If the Receiver-led sale process does not result in acceptable assignees and lease arrangements, HCW and UHF intend to finalise lease agreements with alternative tenants. Conditional agreements with alternative operators have already been reached. The landlords retain all existing legal rights, including cross-default and termination clauses in the event of lease non-compliance.

Looking ahead, HCW stated that distributions are expected to recommence once the Healthscope situation has been resolved. No guidance will be issued for FY26 until this matter is finalised.