Full Year 2026 Healthco Healthcare and Wellness Reit Earnings Call Transcript
Key Points
- Portfolio performing well with 100% rent collection, 99% occupancy, and 4.1% like-for-like NOI growth in FY26.
- Strong balance sheet with $158 million in cash and undrawn debt, gearing at 29% below target, and 81% hedged.
- Proposed new leases for Healthscope hospitals are expected to be broadly NTA neutral, with face rents unchanged and improved tenant covenants.
- Transition of Mount Private Hospital to Bethesda is on track, with a new lease guaranteed by the WA State Government starting in October.
- FY27 DPU guidance of $0.06 per unit provided, underpinned by underlying FFO and existing cash reserves, with potential for special distributions post-resolution.
- FFO of $0.04 per unit was impacted by the unlisted healthcare fund pausing distributions due to the Healthscope situation.
- No distribution declared in FY26 to preserve balance sheet flexibility, reflecting ongoing uncertainty.
- Underlying FFO guidance for FY27 steps down to $0.061 per unit from $0.077, partly due to the expiry of a low-cost swap in UHF.
- Healthscope situation remains unresolved for 10 assets, with legal rights including termination and cross-default still in place.
- Valuation impact of new leases was previously estimated at a 10-15% reduction, though now expected to be neutral, indicating potential volatility.
Thank you for standing by and welcome to the HealthCo Healthcare and Wellness REIT FY26 Full Year Results Briefing.
All participants are in a listen-only mode. There will be a presentation followed by a question-and-answer session.
If you wish to ask a question, you will need to press the star key followed by the number one on your telephone keypad.
I would now like to hand the conference over to Mr. Sid Sharma, HMC Capital Managing Director, Real Estate. Please go ahead.
Good morning, everyone.
Thank you for attending today's conference call.
Joining me on the call today is HealthCo Fund Manager Christian Soberg.
Before we commence today's presentation, we want to acknowledge the traditional custodians of country throughout Australia.
We celebrate their diverse culture and connections to land, sea and community.
We pay our respect to elders past and present and extend that respect to all Aboriginal and
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