HealthCo Healthcare and Wellness (HCW) investor relations material

Executive summary

• FY25 results were significantly impacted by the receivership of Healthscope at its parent level, which represents 53% of earnings on a look-through basis, leading to suspension of distributions in H2 and an 18% drop in FFO per unit year-over-year.

• Portfolio remains diversified and resilient, with 99% occupancy, 98% of all rent due collected, and 11.5 years WALE.

• Conditional agreements with alternative operators for all Healthscope assets are in place, ensuring continuity of services and strong tenant covenants.

• Prudent capital management maintained, with gearing at 31%, at the low end of the target range.

• Portfolio remains focused on medium and high acuity critical services, with high conviction in long-term value fundamentals.

Financial highlights

• FY25 FFO per unit was 6.6¢, down 18% year-over-year, impacted by the unlisted healthcare fund pausing distributions.

• Like-for-like net income growth was 5.2% year-over-year, driven by market rent reviews and strong leasing spreads.

• Portfolio valuations declined by 4% on a gross basis, reflecting a 37 bps cap rate expansion.

• NTA as of June was $1.44 per unit, down $0.14 from Dec-24, with movement driven by cap rate expansion.

• FY25 distribution was $0.42 per unit, with distributions suspended in H2 to maintain flexibility.

Outlook and guidance

• Focus for FY26 is on resolving the Healthscope situation and ensuring continuity of services, with no guidance provided for FY26 distributions until resolved.

• Sufficient liquidity to comply with debt covenants and fund new arrangements if needed.

• Conviction in healthcare real estate remains strong, underpinned by long-term demographic megatrends and a stretched public healthcare system.