HealthCo Healthcare and Wellness (HCW) H1 2025 earnings summary

Executive summary

• Portfolio valued at AUD 1.6 billion, diversified across private hospitals, primary care, aged care, and government assets, with 99% occupancy and 100% cash rent collection.

• Achieved 5% year-over-year growth in FFO per unit and DPU for 1H FY25, both at 4.2 cents, with FFO rising to AUD 23.5 million.

• Asset recycling reduced portfolio from 25 to 20 properties, with AUD 46.5–47 million in sales and ongoing buyback program, 35% completed.

• Healthscope assets represent a significant portion of earnings; ongoing market speculation and tenant risk are actively managed.

• Net loss widened to AUD 15.3 million for the half-year, but distributions of 4.2 cents per unit were declared.

Financial highlights

• FFO per unit at 4.2 cents, DPU at 4.0–4.2 cents, and FFO for 1H FY25 at AUD 23.5 million.

• 100% cash rent collection, 99% occupancy, and stable asset valuations as of December 2024.

• Asset sales of AUD 46.5–47 million completed at a discount to book value, with average yield just under 5.5%.

• Net tangible assets per unit at AUD 1.58 as of December 2024.

• Net loss of AUD 15.3 million for the half-year, compared to AUD 5.1 million loss prior year.

Outlook and guidance

• FY2025 guidance reaffirmed: FFO per unit and DPU both at 8.4 cents, contingent on continued rent payments.

• No significant post-31 December 2024 events expected to affect future operations.

• Development pipeline managed conservatively, with focus on completing key projects and no new major commitments amid market uncertainty.