HealthCo Healthcare and Wellness (HCW) H2 2024 earnings summary

Executive summary

• FY 2024 marked a transformative year with 16% FFO per unit growth to 8.0 cents, strong operational performance, and a portfolio of high-quality healthcare infrastructure assets supported by demographic megatrends.

• Portfolio value reached $1.6bn with 99% occupancy and 100% rent collection, outperforming traditional real estate subsectors.

• Completed $195m in asset sales and launched a $50m on-market unit buyback, with proceeds reinvested into the development pipeline.

• Strategic investment in UHF secured $650m in equity commitments, with HealthCo's interest deconsolidated to 49.6%.

• Achieved a 30% reduction in Scope 1 and 2 carbon emissions and a 5.8 Star NABERS Energy rating.

Financial highlights

• FY24 FFO increased to $45.3m, FFO and DPU per unit both at 8.0c, and EBITDA rose to $68.6m.

• NTA per unit stable at $1.64 as of June 2024, with portfolio valuation flat.

• Net assets at $919.9m; consolidated investment property portfolio at $1.6bn.

• 100% of FY24 distribution (8.0c per unit) covered by FFO.

• 100% rent collection achieved, and balance sheet remains strong with gearing at 32.5%.

Outlook and guidance

• FY25 FFO per unit and DPU guided at 8.4 cents, a 5% year-over-year increase.

• Growth expected from contracted rent escalations (81% CPI-linked) and development completions.

• Development pipeline of over $500m, targeting 6–7%+ yield on cost.

• Continued focus on closing the unit price discount to NTA and proactive capital management.

• Positive demand outlook for private healthcare, supported by demographics and public system constraints.