The HealthCo Healthcare & Wellness REIT (ASX:HCW) share price is in focus today after the company released its FY26 results, featuring underlying FFO per unit of 7.7 cents, 100% rent collection, and a reaffirmed commitment to distribution payments in the year ahead.
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What did HealthCo Healthcare & Wellness REIT report?
- Underlying funds from operations (FFO) per unit of 7.7 cents
- Statutory FFO per unit of 4.0 cents
- Total portfolio valuation of $1.34 billion
- 100% portfolio rent collection and 99% occupancy
- Gearing of 29%, below target range
- No FY26 distribution declared, with a plan to resume in FY27
What else do investors need to know?
HealthCo maintained a strong balance sheet during FY26, with cash and undrawn debt totalling $158 million. Despite headwinds related to the Healthscope hospital portfolio, all rent across the hospitals was paid up to August 2026, and alternative hospital operator arrangements are progressing. Independent valuations now reflect new leasing terms, keeping pro-forma NTA broadly steady at $1.35 per unit.
The REIT's portfolio is diverse, with 64% in private hospitals, and its average lease expiry stands at 10.6 years. Major development opportunities in Sydney underpin future growth, with approximately $500 million pipeline capital expenditure expected, though no near-term funding commitments are in place.
What's next for HealthCo Healthcare & Wellness REIT?
Looking to FY27, HealthCo expects to resume distributions, providing guidance of a 6.0 cent per unit payment, subject to the Healthscope transition. Underlying FFO guidance is 6.1 cents per unit on a look-through basis, and the REIT intends to fund distributions through operating earnings and existing reserves.
Management says the focus will remain on narrowing the trading discount to NTA, capital recycling, and executing on value-adding strategic opportunities. With solid metro healthcare assets and long leases, HCW aims for sustainable earnings and reliable payouts ahead.
HealthCo Healthcare & Wellness REIT share price snapshot
Compared to the S&P/ASX 200 index (ASX: XJO) over the past 12 months, the HealthCo Healthcare & Wellness REIT share price has underperformed with a decline of 15%
