• Loss of $89.3 million for the year due to asset recycling and fair value losses
• Funds from operations of $36.5 million, down 19.4% from prior year
• Distributions of 4.2 cents per unit paid, lower than prior year to preserve balance sheet liquidity

HealthCo Healthcare and Wellness REIT (HCW) reported a loss of $89.3 million for the financial year ended 30 June 2025, compared to a profit of $7.3 million in the prior year. This was primarily driven by the group's active asset recycling program, which reduced the portfolio from 25 properties to 19 properties, as well as net unrealised fair value losses on investment properties. The group's funds from operations (FFO), which represents its underlying and recurring earnings, was $36.5 million, down 19.4% from $45.3 million in the prior year. This was due to the reduction in the property portfolio and the group's interest in the HMC Wholesale Healthcare Fund, which recorded a loss.In March 2025, HCW and the HMC Wholesale Healthcare Fund (the Landlords) issued breach notices to one of their major tenants, Healthscope, for failing to pay rent. Two Healthscope entities subsequently entered into receivership and administration, though the Landlords noted that the counterparties to the lease agreements were not in receivership or administration, and the existing lease terms remained in place. The Landlords entered into a short-term partial rent deferral agreement with Healthscope, who continues to pay 100% of rent due.HCW did not declare quarterly distributions for the quarters ended 31 March 2025 and 30 June 2025 to preserve balance sheet liquidity. The total distributions paid for the year were 4.2 cents per unit, lower than the 8.0 cents per unit paid in the prior year.The group's net tangible assets per unit decreased from $1.64 to $1.44 during the year, primarily due to the fair value losses on investment properties. The group's gearing ratio remained relatively stable at 33.0%, with 83.9% of drawn debt hedged.The directors consider that the group will continue as a going concern, and there were no other significant changes in the state of affairs during the financial year.

The group did not provide any high-importance, price-sensitive forward-looking financial metrics in the announcement.

The group did not provide any forward-looking outlook statements in the announcement.