• Prudent capital management with gearing at the lower end of the 30-40% target range
• Diversified portfolio with long lease expiry profile of 11.5 years
• Continued strong operational performance across the portfolio with high embedded rental growth

HealthCo Healthcare and Wellness REIT (HCW) reported its FY25 results, highlighting prudent capital management, a diversified portfolio with a long lease expiry profile, and continued strong operational performance across the portfolio. The financial result was impacted by the suspension of distributions from UHF in the second half of FY25. Gearing was at the lower end of the 30-40% target range, and the company had $103.8 million in pro-forma cash and undrawn debt. The portfolio valuation was $1.5 billion, with a weighted average capitalisation rate of 5.68% and a weighted average lease expiry of 11.5 years. Occupancy remained high at 99%, and like-for-like net operating income growth was 5.2%. The company is working proactively with the Receiver in relation to the current Healthscope sale process to replace Healthscope as the tenant across the portfolio. HCW has also reached conditional agreements with alternative operators in case the Receiver-led sale process does not result in suitable arrangements. The company's priorities are ensuring continuity of services, tenanting the portfolio with well-capitalized operators, maintaining jobs, and preserving long-term value for unitholders.