Healthco Healthcare & Wellness Reit · ASX:HCW
Healthco Healthcare & Wellness Reit — FY2023 Earnings Presentation
35 slides from Healthco Healthcare & Wellness Reit's earnings presentation, Aug 15, 2023
Slide 1: HealthCo Healthcare & Wellness REIT FY23 Results
HealthCo Healthcare & Wellness REIT FY23 Results 15 August 2023
Slide 2: Acknowledgement of Country
IBDROOT\PROJECTS\IBD-HK\KAURY2017\605978_1\IPO\Cornerstone presentation\2019.09.09 Amalfi Investor Presentation.pptx Acknowledgement of Country HealthCo acknowledges the Traditional Custodians of country throughout Australia and celebrates their diverse culture and connections to land, sea and commu
Slide 3: Agenda
IBDROOT\PROJECTS\IBD-HK\KAURY2017\605978_1\IPO\Cornerstone presentation\2019.09.09 Amalfi Investor Presentation.pptx Agenda 1 Highlights 2 Portfolio overview 3 Investments 4 Developments 5 Financial results 6 Guidance and outlook Sam Morris Christian Soberg Andrew Dodds Senior Portfolio Chief Financ
Slide 4: 1. Highlights
IBDROOT\PROJECTS\IBD-HK\KAURY2017\605978_1\IPO\Cornerstone presentation\2019.09.09 Amalfi Investor Presentation.pptx Sunnybank Private Hospital (QLD) 1. Highlights 3
Slide 5: FY23 Highlights
IBDROOT\PROJECTS\IBD-HK\KAURY2017\605978_1\IPO\Cornerstone presentation\2019.09.09 Amalfi Investor Presentation.pptx FY23 Highlights The transformational Healthscope acquisition has significantly improved the scale & quality of the portfolio FINANCIAL OPERATIONS GROWTH / INVESTMENT 6.9 cpu 100% TRAN
Slide 6: Update on key strategic initiatives
IBDROOT\PROJECTS\IBD-HK\KAURY2017\605978_1\IPO\Cornerstone presentation\2019.09.09 Amalfi Investor Presentation.pptx Update on key strategic initiatives Successfully executing on key commitments following the Healthscope portfolio acquisition Progress to date Key objective 1 Recognising embedded val
Slide 7: 2. Portfolio overview
IBDROOT\PROJECTS\IBD-HK\KAURY2017\605978_1\IPO\Cornerstone presentation\2019.09.09 Amalfi Investor Presentation.pptx The George Private Hospital (NSW) 2. Portfolio overview 6
Slide 8: Portfolio update
IBDROOT\PROJECTS\IBD-HK\KAURY2017\605978_1\IPO\Cornerstone presentation\2019.09.09 Amalfi Investor Presentation.pptx Portfolio update HealthCo has continued to grow its high quality and diversified healthcare portfolio to $1.6bn Portfolio statistics1 Portfolio subsectors – income split and key tenan
Slide 9: Key portfolio statistics
IBDROOT\PROJECTS\IBD-HK\KAURY2017\605978_1\IPO\Cornerstone presentation\2019.09.09 Amalfi Investor Presentation.pptx Key portfolio statistics Long term leases to high quality operators with 70% CPI linked income and a WARR of 4.2% Rent composition (Dec-22 vs. Jun-23)1,2 Significant increase in CPI l
Slide 10: Sustainability at HealthCo
IBDROOT\PROJECTS\IBD-HK\KAURY2017\605978_1\IPO\Cornerstone presentation\2019.09.09 Amalfi Investor Presentation.pptx Sustainability at HealthCo HealthCo is serving Australian communities by facilitating access to essential health and wellbeing services that deliver a positive social impact 2016 FY23
Slide 11: 3. Investments
IBDROOT\PROJECTS\IBD-HK\KAURY2017\605978_1\IPO\Cornerstone presentation\2019.09.09 Amalfi Investor Presentation.pptx Campbelltown Private Hospital (NSW) 3. Investments 10
Slide 12: Transformational acquisition of $1.2bn Healthscope portfolio
IBDROOT\PROJECTS\IBD-HK\KAURY2017\605978_1\IPO\Cornerstone presentation\2019.09.09 Amalfi Investor Presentation.pptx Transformational acquisition of $1.2bn Healthscope portfolio Largest healthcare property acquisition since 2019 at attractive pricing High quality portfolio of critical healthcare inf
Slide 13: Acquisitions in FY23
IBDROOT\PROJECTS\IBD-HK\KAURY2017\605978_1\IPO\Cornerstone presentation\2019.09.09 Amalfi Investor Presentation.pptx Acquisitions in FY23 $908m of accretive healthcare acquisitions including $730m Healthscope private hospitals Purchase Settlement WALE Description price ($m) date (years)3 GenesisCare
Slide 14: Executing on asset recycling program
IBDROOT\PROJECTS\IBD-HK\KAURY2017\605978_1\IPO\Cornerstone presentation\2019.09.09 Amalfi Investor Presentation.pptx Executing on asset recycling program Successfully executing asset sales Property Subsector State Settlement Sale proceeds Settled FY23 Cairns Primary Medical QLD ✓ Jun-23 $46m Chadsto
Slide 15: 4. Developments
IBDROOT\PROJECTS\IBD-HK\KAURY2017\605978_1\IPO\Cornerstone presentation\2019.09.09 Amalfi Investor Presentation.pptx Proxima (QLD) 4. Developments 14
Slide 16: Significant embedded growth
IBDROOT\PROJECTS\IBD-HK\KAURY2017\605978_1\IPO\Cornerstone presentation\2019.09.09 Amalfi Investor Presentation.pptx Significant embedded growth $1bn+ accretive development pipeline1 underpins long term growth outlook and builds on strong track record of brownfield and greenfield projects Completed
Slide 17: The George Private Hospital (Camden Stage 1)
IBDROOT\PROJECTS\IBD-HK\KAURY2017\605978_1\IPO\Cornerstone presentation\2019.09.09 Amalfi Investor Presentation.pptx The George Private Hospital (Camden Stage 1) Successful delivery of a new greenfield private hospital in Australia’s fastest growing LGA ▪ Modern mixed-use 781 bed facility providing
Slide 18: Completion of brownfield projects at Knox & Nepean
IBDROOT\PROJECTS\IBD-HK\KAURY2017\605978_1\IPO\Cornerstone presentation\2019.09.09 Amalfi Investor Presentation.pptx Completion of brownfield projects at Knox & Nepean Reinvesting in high quality critical healthcare infrastructure at attractive returns Knox Private Hospital (VIC)1 – stage 1 Nepean P
Slide 19: 5. Financial results
IBDROOT\PROJECTS\IBD-HK\KAURY2017\605978_1\IPO\Cornerstone presentation\2019.09.09 Amalfi Investor Presentation.pptx Nepean Private Hospital (NSW) 5. Financial results 18
Slide 20: Earnings summary
IBDROOT\PROJECTS\IBD-HK\KAURY2017\605978_1\IPO\Cornerstone presentation\2019.09.09 Amalfi Investor Presentation.pptx Earnings summary FY23 FFO of 6.9cpu and FY23 DPU of 7.6c in line with guidance $m FY22 FY23 Property NOI 24.2 41.4 Basis of preparation Responsible entity fees (3.5) (5.7) ▪ FY23 fina
Slide 21: Balance sheet
IBDROOT\PROJECTS\IBD-HK\KAURY2017\605978_1\IPO\Cornerstone presentation\2019.09.09 Amalfi Investor Presentation.pptx Balance sheet Portfolio scale transformed by the Healthscope hospital portfolio acquisition $m Dec-22 Jun-23 Investment properties Cash and cash equivalents 4.3 7.6 ▪ Investment prope
Slide 22: Capital management
IBDROOT\PROJECTS\IBD-HK\KAURY2017\605978_1\IPO\Cornerstone presentation\2019.09.09 Amalfi Investor Presentation.pptx Capital management 81% hedged with balance sheet gearing within the 30-40% target range Debt facilities summary ($m) $m Dec-22 Jun-23 Debt refinancing UHF HCW ▪ In May 2023, HealthCo
Slide 23: 6. Guidance and outlook
IBDROOT\PROJECTS\IBD-HK\KAURY2017\605978_1\IPO\Cornerstone presentation\2019.09.09 Amalfi Investor Presentation.pptx Knox Private Hospital (VIC) 6. Guidance and outlook 22
Slide 24: FY24 guidance
IBDROOT\PROJECTS\IBD-HK\KAURY2017\605978_1\IPO\Cornerstone presentation\2019.09.09 Amalfi Investor Presentation.pptx FY24 guidance Strong outlook with FY24 FFO of 8.0c, representing 16% annual growth FY24 Guidance 8.0 cents 8.0 cents FFO/unit1 DPU +16% growth vs. FY23 +5% growth vs. FY23 ▪ Attractiv
Slide 25: Healthcare real estate is a resilient asset class
IBDROOT\PROJECTS\IBD-HK\KAURY2017\605978_1\IPO\Cornerstone presentation\2019.09.09 Amalfi Investor Presentation.pptx Healthcare real estate is a resilient asset class Favourable long-term structural demand drivers have driven outperformance Low correlation to broader Supported by Supported by increa
Slide 26: Appendix - Supplementary information
IBDROOT\PROJECTS\IBD-HK\KAURY2017\605978_1\IPO\Cornerstone presentation\2019.09.09 Amalfi Investor Presentation.pptx Northpark Private Hospital (VIC) Appendix - Supplementary information 25
Slide 27: HCW's journey since IPO
IBDROOT\PROJECTS\IBD-HK\KAURY2017\605978_1\IPO\Cornerstone presentation\2019.09.09 Amalfi Investor Presentation.pptx HCW’s journey since IPO Major transformation in scale, portfolio diversification, inflation protection and growth upside IPO (Sep-21) FY23 Change FFO/unit ✓ 5.2cpu1 8.0cpu2 +54% Portf
Slide 28: Strategic investment in Unlisted Healthcare Fund
IBDROOT\PROJECTS\IBD-HK\KAURY2017\605978_1\IPO\Cornerstone presentation\2019.09.09 Amalfi Investor Presentation.pptx Strategic investment in Unlisted Healthcare Fund Complementary partner to assist HCW in accessing and funding a larger pool of investment and development opportunities Overview Invest
Slide 29: Investments in Australia's growth corridors
IBDROOT\PROJECTS\IBD-HK\KAURY2017\605978_1\IPO\Cornerstone presentation\2019.09.09 Amalfi Investor Presentation.pptx Investments in Australia’s growth corridors A key part of HealthCo’s strategy is to pursue accretive acquisitions and developments in Australia’s leading metropolitan markets and grow
Slide 30: Development pipeline
IBDROOT\PROJECTS\IBD-HK\KAURY2017\605978_1\IPO\Cornerstone presentation\2019.09.09 Amalfi Investor Presentation.pptx Development pipeline $1bn+ upsized development pipeline1 following the acquisition of the Healthscope portfolio Total investment Ownership / Target returns Project Completion (100% sh
Slide 31: Portfolio summary metrics
IBDROOT\PROJECTS\IBD-HK\KAURY2017\605978_1\IPO\Cornerstone presentation\2019.09.09 Amalfi Investor Presentation.pptx Portfolio summary metrics Current total owned portfolio value of $1,634m1 WALE # Asset State Classification Fair Value ($m) Cap Rate (%) Site Area (sqm) Occupancy3 (by income)2 Aged C
Slide 32: Top tenants
IBDROOT\PROJECTS\IBD-HK\KAURY2017\605978_1\IPO\Cornerstone presentation\2019.09.09 Amalfi Investor Presentation.pptx Top 10 tenants Significant exposure to high quality national and government tenants Top 10 tenants1, 2 Top 10 tenants spread across all subsectors account for 76% of total portfolio i
Slide 33: GenesisCare update
IBDROOT\PROJECTS\IBD-HK\KAURY2017\605978_1\IPO\Cornerstone presentation\2019.09.09 Amalfi Investor Presentation.pptx GenesisCare update Tenant is compliant with all lease obligations, including 100% of rent paid on time Overview ▪ GenesisCare filed for voluntary re-organisation under Chapter 11 in t
Slide 34: Contacts
IBDROOT\PROJECTS\IBD-HK\KAURY2017\605978_1\IPO\Cornerstone presentation\2019.09.09 Amalfi Investor Presentation.pptx Contacts Investors and Analysts Media Andrew Dodds Christian Soberg John Frey HMC Capital HealthCo Chief Financial Officer Corporate communications Corporate Finance & IR Manager HMC
Slide 35: Disclaimer
IBDROOT\PROJECTS\IBD-HK\KAURY2017\605978_1\IPO\Cornerstone presentation\2019.09.09 Amalfi Investor Presentation.pptx Disclaimer This presentation (Presentation) has been prepared by HCW Funds Management Limited (ABN 58 104 438 100, AFSL 239882) (Responsible Entity) as responsible entity of HealthCo
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