HealthCo Healthcare & Wellness REIT beats upgraded FY22 FFO guidance and demonstrates strong capital management

HealthCo Healthcare & Wellness REIT (ASX: HCW) today released its full-year 30 June 2022 results. 

Today’s result underscores HCW’s successful delivery against its IPO PDS forecasts, highlights the significant growth opportunity embedded in the portfolio and underlines management’s disciplined capital management response to the current economic environment.  

HCW delivered FY22 FFO of $16.4m which was ahead of its upgraded guidance and a statutory net profit of $49.6m. The REIT’s NTA per unit increased by 8% since IPO to $2.01 which was supported by strong portfolio revaluations and the sale of St Mary’s at a 71% premium to book value. 

HCW Senior Portfolio Manager, Sam Morris said, “Since listing last September, HCW has collected 100% of cash rent. This is a testament to our model portfolio strategy which provides strong downside protection via subsector, tenant and geographic diversification. Despite the more challenging economic backdrop, we have continued to make good progress unlocking the significant growth opportunity embedded in our development pipeline. The George paediatric hospital in Camden, South West Sydney, recently topped out and is on-track to open in 1Q 2023. We are also in advanced discussions with two leading hospital operators to develop a significant private hospital at stage 2 of our Camden precinct.” 

HCW CFO, Christian Soberg said, “HCW remains well capitalised with net cash and strong liquidity. The recent sale of St Mary’s at a 71% premium to book value has further enhanced our balance sheet strength and flexibility. Our focus is on protecting our capital so that HCW remains well positioned to capitalise on our development pipeline and other investment opportunities which meet our risk adjusted returns including the on-market share buy-back we have announced today”. 

HCW has confirmed FY23 FFO guidance of 6.8 cpu which represents 10% growth on FY22 (annualised) and DPU guidance of 7.5 cents.