HCW.ASX: Healthscope Update

Healthscope Update

Stock	Healthco Healthcare and Wellness REIT (HCW.ASX)
Release Time	4 Mar 2025, 9:44 a.m.
Price Sensitive	Yes

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HealthCo Healthcare REIT withdraws FY25 guidance

Key Points

HealthCo and Unlisted Healthcare Fund issued breach notices to Healthscope for failing to pay full rent
HealthCo and UHF in active discussions with alternative hospital operators to replace Healthscope tenancies
HealthCo has $100m in cash and undrawn debt facilities, with additional support from HMC Capital

Full Summary

HealthCo Healthcare & Wellness REIT (ASX: HCW) and the Unlisted Healthcare Fund (UHF) have issued breach notices to Healthscope for failing to pay all rent due for March 2025. Part payment of the rent has been received, and HCW and UHF will enforce their legal rights and seek to replace Healthscope's tenancies with other hospital operators if the breaches are not remedied. As foreshadowed at the release of HCW's 1H FY25 result, HCW and UHF are now in active discussions with alternative hospital operators. Given the above, HCW's FY25 FFO/unit and DPU guidance of 8.4 cents has been withdrawn pending resolution of the Healthscope tenancies. HCW has cash and undrawn debt facilities of approximately $100m and will receive additional support from HMC Capital as required, including the deferral of management fees.