HealthCo Healthcare and Wellness REIT Gains 2% on Half-Year Results, Reaffirms FY25 Guidance

2 min read | February 14, 2025 11:29 AM AEDT | By Team Kalkine Media

HealthCo Healthcare and Wellness REIT Gains 2% on Half-Year Results, Reaffirms FY25 Guidance — Image source: shutterstock

Consistent Growth and Stable Balance Sheet

For the six months ending December 31, HealthCo reported funds from operations (FFO) of $23.5 million, or 4.2 cents per share, reflecting 5% year-on-year growth.

The company's balance sheet remains robust, with gearing at 32.4%, sitting at the lower end of its 30–40% target range. Additionally, it holds $115 million in available liquidity, ensuring financial flexibility.

HealthCo also maintained 100% cash rent collection and a high occupancy rate of 99%, reinforcing the stability of its rental income. Its weighted average lease expiry (WALE) stood at 11.6 years, with 82% of leases locked in beyond FY 2030, providing long-term revenue visibility.

Healthscope Lease Concerns Addressed

In response to market speculation regarding its major tenant, Healthscope, HealthCo clarified that while discussions are ongoing, it has ruled out additional rental support. Should Healthscope fail to meet lease obligations, the company is prepared to seek alternative tenants and has already received interest from other hospital operators.

Positive FY 2025 Outlook Maintained

Looking ahead, HealthCo reaffirmed its FY 2025 guidance of 8.4 cents FFO per unit and 8.4 cents distribution per share, subject to the continued performance of its portfolio and Healthscope’s lease commitments.

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