• Continued earnings momentum with FFO/unit and DPU growth
• Stable asset valuations and lower gearing
• $357m UHF ownership stake, $47m asset sales, and $50m on-market buyback
• $540m+ accretive development pipeline

HealthCo Healthcare and Wellness REIT reported its 1H FY25 results, highlighting continued earnings momentum with FFO/unit and DPU growth of 5% compared to 1H FY24. The company's portfolio remained stable, with net asset valuations unchanged in the period. Gearing was at the lower end of the target range at 32.4%. HealthCo made progress on several strategic initiatives, including increasing its ownership stake in UHF by 11% since inception, completing $47m in asset sales, and initiating a $50m on-market unit buyback, which is 35% completed. The company also has an accretive $540m+ development pipeline, including projects at Camden, Mount Private Hospital, and a greenfield private hospital. Operationally, HealthCo maintained 99% occupancy and 100% rent collection. The company reaffirmed its FY25 FFO/unit and DPU guidance of 8.4 cents, underpinned by the continued performance of its portfolio, including the contractual obligations of Healthscope.

HealthCo reaffirms its previous FFO/unit and DPU guidance of 8.4 cents for FY25, based on the continued performance of its portfolio, including the contractual obligations of Healthscope.

HealthCo's conviction in the healthcare real estate sector remains high, with continued growth underpinned by long-term structural demand drivers. The private hospital sector is integral in providing healthcare services to the Australian population and supporting the public system, which is consistently operating at above capacity with long waiting lists for care.