Broker Bell Potter releases a weekly analysis on real estate investment trust (REITs) and the broader real estate landscape in Australia.
It also includes a summary of ASX REITs covered by the broker.
One price target that jumps out from this weeks report is the valuation on HealthCo Healthcare and Wellness REIT (ASX: HCW).
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HealthCo Healthcare and Wellness REIT
While some ASX REITs focus on residential property, others like HalthCo Healthcare and Wellness, primarily focus on commercial health and wellness real estate assets.
HealthCo Healthcare and Wellness REIT holds a $1.6 billion portfolio of 36 properties including hospitals, aged care, childcare, life sciences, and research facilities, as well as primary care and wellness assets.
Its share price has fallen more than 20% in 2025, however Bell Potter's target price suggests it is now trading well below fair value.
Here's what the broker had to say
Down but not out
Following the company's FY25 results, Bell Potter released a report on this ASX REIT.
It has long-term optimism, supported by the company's position as Australia's largest healthcare-focused REIT with strong long-term demand drivers from an aging population and a ~$218b addressable market.
An aging and growing population greater than other developed nations should underpin long-term sector demand notwithstanding shorter term utilisation headwinds.
The broker also pointed out the comparatively high dividend yield offered by this ASX REIT compared to others.
By virtue of the deal struck under its recent Healthscope portfolio acquisition, multiple development projects can be set at the greater of 6% or Aus 10yr bond yield + 300bps which would see materially higher yields on cost vs. other REITs.
Price target indicates upside
Bell Potter currently has a 12 month price target of $1.00.
This indicates an upside of approximately 35% from yesterday's closing price of $0.74.
Other valuations also place this ASX REIT stock as one with upside.
Online brokerage platform Selfwealth lists it as undervalued by approximately 25%.
TradingView has a one year price target of $0.925, which indicates an upside of approximately 25.7%.
