Healthco Healthcare & Wellness Reit · ASX:HCW
Healthco Healthcare & Wellness Reit — H1 FY2025 Earnings Presentation
26 slides from Healthco Healthcare & Wellness Reit's earnings presentation, Feb 14, 2025
Slide 1: 1H FY25 Results Presentation
HealthCo Healthcare & Wellness REIT 1H FY25 Results Presentation 14 February 2025
Slide 2: Acknowledgement of Country
Acknowledgement of Country HealthCo acknowledges the Traditional Custodians of Country throughout Australia and celebrates their diverse culture and connections to land, sea and community. We pay our respect to their Elders past and present and extend that respect to all Aboriginal and Torres Strait
Slide 3: Agenda
Agenda 01 02 03 04 05 Results Portfolio Developments Financial Outlook & Overview Overview Results Guidance Christian Soberg Sid Sharma Andrew Dodds HCW HMC Capital HMC Capital Fund Manager Managing Director, Real Estate Corporate Finance and Investor Relations Manager 3
Slide 4: Results Overview
01 Results Overview 4 Knox Private Hospital (Melbourne)
Slide 5: 1H FY25 Highlights
1H FY25 Highlights Continued earnings momentum with FFO/unit and DPU growth Financial Operations Growth 4.2 cents 4.2 cents 100% 99% $357m $47m FFO per unit DPU Cash rent Occupancy1 UHF ownership stake H1 FY25 asset sales +5% vs. 1H FY24 +5% vs. 1H FY24 Collection vs. 99% in FY24 +11% since inceptio
Slide 6: Healthscope update
Healthscope update ▪ HCW notes the recent increased market speculation around Healthscope1 . It is likely that the speculation will persist until a sustainable solution which underpins continuity of hospital services is found. HCW and UHF have made it clear that further rental support will not be pr
Slide 7: Portfolio Overview
02 Portfolio Overview 7 Northpark Private Hospital (Melbourne)
Slide 8: Portfolio subsectors
Portfolio subsectors HCW has a $1.6bn portfolio that provides exposure to healthcare subsectors that are underpinned by powerful megatrends Private Hospitals Primary & Specialty Care Australia’s 2nd largest private hospital operator Australia’s largest radiation oncology provider, with 38 private ho
Slide 9: Portfolio overview
Portfolio overview Diversified $1.6bn institutional grade portfolio of private hospitals and health infrastructure assets with long lease expiry profile of 11.6 years Portfolio overview Portfolio subsectors – income split and key tenants1,7 Number of properties 27 57% 20% 4% 9% Portfolio valuation1
Slide 10: Portfolio locations
Portfolio locations 96% of the portfolio is located in metro areas with strong population growth across Australia’s four largest capital cities1,2 Sydney Melbourne Brisbane, Gold Coast & Sunshine Coast Coral Sea 32% 35% 22% of portfolio of portfolio of portfolio Sunshine Coast Northpark Vitality Hea
Slide 11: Sustainability at HealthCo
Sustainability at HealthCo HealthCo is serving Australian communities by facilitating access to essential health and wellbeing services that deliver a positive social impact1 Environment Social Governance On track to exceed our FY25 target of 65% of 50% gender diversity maintained for independent Cl
Slide 12: Developments
03 Developments 12 Proxima (Gold Coast)
Slide 13: Development track record
Development track record Proven brownfield and greenfield development capability, completing ~$300m of projects since IPO in Sep-211 The George Private Hospital (Sydney) Nepean Private Hospital (Sydney) Northpark Private Hospital (Melbourne) Greenfield 78-bed private hospital development Brownfield
Slide 14: Development pipeline
Development pipeline HCW has an accretive $540m+ development pipeline1 which builds upon HCW’s significant development track record Healthscope portfolio Mount Private Hospital upgrade2 & CSSD3 and critical infrastructure works Underway & Planning in progress ~$50m ~50-100% 6.5-7.5% Estimated capex
Slide 15: Financial Results
04 Financial Results 15 Springfield (Brisbane)
Slide 16: Earnings summary
Earnings summary 1H FY25 FFOpu and DPU of 4.2c, representing +5% growth vs 1H FY24 $m 1H FY24 1H FY25 FFO Property NOI 35.2 29.4 ▪ 1H FY25 FFO of 4.2 cpu UHF Distribution1 4.7 10.0 – Represents +5% growth vs. 1H FY24, primarily driven by contracted rent escalations and development Responsible entity
Slide 17: Balance sheet
Balance sheet $1.6bn consolidated investment property portfolio $m Jun-24 Dec-24 Investment Properties Cash and cash equivalents 19.9 5.5 ▪ Consolidated investment property portfolio of $1.6bn as at Trade and other receivables 9.2 8.8 Dec-24 Other assets 10.4 1.2 Assets held for sale1 13.2 - ▪ Net o
Slide 18: Capital management
Capital management Gearing at the lower end of the target range Debt facilities summary ($m) Jun-24 Dec-24 Asset recycling Liquidity ▪ $47m of asset sales settled in H1 FY25 as part of strategy to Senior facilities undrawn1 68.7 109.2 retain a strong balance sheet Cash at bank 19.8 5.5 ▪ In addition
Slide 19: Outlook & Guidance
05 Outlook & Guidance 19 Nepean Private Hospital (Sydney)
Slide 20: FY25 outlook and guidance
FY25 outlook and guidance FY25 guidance reaffirmed FY25 guidance ▪ contractual obligations of Healthscope ~$100-120m HCW reaffirms its previous FFO/unit and DPU guidance of 8.4 cents. This guidance is based on the continued performance of HCW’s portfolio including the Healthcare real estate sector o
Slide 21: Appendix
Appendix Supplementary Information 21 Knox Private Hospital (Melbourne)
Slide 22: HealthCo portfolio
HealthCo portfolio High quality and diversified portfolio with a total value of $1.6bn1 WALE Asset State Fair Value ($m) Cap Rate (%) Site Area (sqm) Occupancy3 (by income)2 Private Hospitals Camden NSW 109.1 4.63% 8,036 13.0 100% The Geelong Clinic VIC 45.1 5.50% 14,935 14.3 100% Northpark Private
Slide 23: Additional financial information
Additional financial information FFO reconciliation $m 1H FY24 1H FY25 Funds from operations (FFO) 22.6 23.5 FFO adjustments: Loss on deconsolidation (26.4) - Fair value movements - investment properties (7.9) (11.3) Fair value movements – derivatives (6.5) (2.9) Share of profits of equity accounted
Slide 24: Contacts
Contacts Investors and Analysts Media Andrew Dodds Christian Soberg John Frey HMC Capital HCW Corporate communications Corporate Finance and Fund Manager HMC Capital Investor Relations Manager +61 423 810 851 +61 450 417 712 +61 411 361 361 andrew.dodds@hmccapital.com.au christian.soberg@hmccapital.
Slide 25: Disclaimer
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 Healthcare & Wellness REIT (652 057 639). Summary information This Presentation contains summary information about th
Slide 26: 26
26
HealthCo Healthcare & Wellness REIT — H1 FY2025 Earnings Presentation on 6ix