KEY HIGHLIGHTS
▪ December 2024 preliminary unaudited portfolio valuation of $1,587m, representing a gross valuation increase of $13m and a net valuation impact of -0.9%1, with the movement driven by 8bps of capitalisation rate expansion, partially offset by strong net operating income growth
▪ HCW and UHF remain in a strong financial and legal position in relation to the 11 hospital asset portfolio leased to Healthscope, Australia’s second largest private hospital operator, with Healthscope continuing to pay all rent in full and on time
▪ Strong pro forma balance sheet maintained with pro-forma gearing at the lower end of HCW’s target gearing range of 30-40%2
▪ Distribution of 2.1 cents per unit for the quarter ended 31 December 2024 declared▪ FY25 FFO/unit & DPU guidance of 8.4c reaffirmed, representing 5% year-on-year growth
HealthCo Healthcare & Wellness REIT (ASX: HCW) Fund Manager Christian Soberg, said: “Strong net operating income growth across the portfolio continues to support asset values despite a modest easing in capitalisation rates.
The stable valuations reflect the critical infrastructure characteristics of the HealthCo portfolio, which is underpinned by a growing and ageing population and long-term leases to national healthcare operators and Government tenants.
”HMC Capital Managing Director, Real Estate, Sid Sharma said, “In our view the strong operating fundamentals and robust valuations do not align with HCW’s current unit price, which is why we continue to actively buy back units and realise value for unit holders.
Finally, we are pleased to reaffirm our guidance for FY25, which is consistent with HCW’s objective of delivering stable and growing distributions.”
DECEMBER 2024 PRELIMINARY UNAUDITED PORTFOLIO VALUATION
In accordance with the stated valuation policy of HCW, preliminary unaudited valuations for all 28 properties in the portfolio have been completed3.
This comprised 16 independent valuations, representing 50% of the properties by value and 57% by number, with the remaining 12 properties completed by internal valuation.
The preliminary unaudited portfolio valuation, which remains subject to half-year audit, has increased by $13m(+1%) to $1,587m (vs. pro forma 30 June 2024).
Net of capital expenditure incurred during the period of $27m,valuations were impacted by -0.9% in the 6 months to 31 December 2024.
i hold HCW
hmmm that may slow the downtrend i have been nibbling away at
but just in case i still has a sub $1 order in the market
