• 1H FY25 FFO of 4.2cpu ($23.5m), +5% growth vs 1H FY24
• 1H FY25 DPU of 4.2 cents, +5% growth vs 1H FY24
• Gearing at lower end of 30-40% target range, $115m available liquidity

HealthCo Healthcare & Wellness REIT (ASX: HCW) has released its results for the half year ended 31 December 2024. The REIT reported 1H FY25 FFO of 4.2cpu ($23.5m), representing a 5% growth versus 1H FY24. 1H FY25 DPU was also 4.2 cents, a 5% increase compared to the prior corresponding period. HealthCo maintained a strong operational performance, with 100% cash rent collection and 99% occupancy. The portfolio has a long WALE of 11.6 years, with 82% of leases expiring in FY30 or later. Asset revaluations as of December 2024 resulted in a 0.8% increase on the June 2024 portfolio value. The development project at Mount Private Hospital remains on track for completion in 2H FY25. HealthCo also noted the recent increased market speculation around Healthscope, its largest tenant, and stated that further rental support will not be provided. The REIT is exploring options to replace Healthscope's tenancies with other hospital operators if required. HealthCo reaffirmed its previous FFO/unit and DPU guidance of 8.4 cents for FY25.

HealthCo reaffirms its previous FFO/unit and DPU guidance of 8.4 cents for FY25.

HealthCo's conviction in private hospitals as an asset class and its own hospitals remains unchanged. The REIT is exploring options to replace Healthscope's tenancies with other hospital operators if required.