• Strong portfolio performance while advancing the path to a resolution for the Healthscope situation
• Diversified portfolio with long lease expiry profile of 11.3 years
• Continued strong operational performance across the portfolio

HealthCo Healthcare and Wellness REIT (HCW) reported its 1H FY26 results, highlighting strong portfolio performance while advancing the path to a resolution for the Healthscope situation. The company's 1H FY26 FFO was 2.2 cents per unit, impacted by the suspension of distributions from UHF to maintain balance sheet flexibility. HCW and UHF (the Landlords) have executable agreements with alternative operators for all 11 Healthscope hospitals, ensuring continuity of essential healthcare services and maintaining jobs for nurses and hospital staff. The Landlords are open to continued constructive dialogue with the Receiver to resolve the situation. HCW's diversified portfolio of private hospitals and health infrastructure assets has a long lease expiry profile of 11.3 years, with 99% occupancy and 100% rent collection. The company's balance sheet remains strong, with gearing below the target range and sufficient liquidity to fund the lease arrangements contemplated by the executable agreements. HCW does not intend to issue guidance until the Healthscope situation has been resolved.

Key focus on resolving the Healthscope situation in a manner that is consistent with HCW's objectives, including ensuring continuity of services, tenanting the portfolio with well-capitalised operators, maintaining jobs, and maximizing long-term value for unitholders. HCW and UHF distributions are expected to recommence once the Healthscope situation has been resolved.