Healthco Healthcare & Wellness Reit · ASX:HCW
Healthco Healthcare & Wellness Reit — H1 FY2024 Earnings Presentation
32 slides from Healthco Healthcare & Wellness Reit's earnings presentation, Feb 13, 2024
Slide 1: 1H FY24 Results
1H FY24 Results HealthCo Healthcare & Wellness REIT 13 February 2024
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 Results overview 2 Portfolio overview 3 Developments 4 Financial results 5 Guidance and outlook Christian Soberg Sid Sharma Andrew Dodds Senior Portfolio HMC Capital Group CO
Slide 4: 1. Results overview
IBDROOT\PROJECTS\IBD-HK\KAURY2017\605978_1\IPO\Cornerstone presentation\2019.09.09 Amalfi Investor Presentation.pptx The George Private Hospital (NSW) 1. Results overview 3
Slide 5: HealthCo's platform for growth
IBDROOT\PROJECTS\IBD-HK\KAURY2017\605978_1\IPO\Cornerstone presentation\2019.09.09 Amalfi Investor Presentation.pptx HealthCo’s platform for growth Significant growth in earnings, scale & income quality since IPO with long-term embedded upside IPO (Sep-21) 1H FY24 (Dec-23) Growth Earnings growth FFO
Slide 6: Clear pathway of NTA growth over the medium-term
IBDROOT\PROJECTS\IBD-HK\KAURY2017\605978_1\IPO\Cornerstone presentation\2019.09.09 Amalfi Investor Presentation.pptx Clear pathway of NTA growth over the medium-term Transformative Healthscope portfolio acquisition providing clear pathway of NTA growth over the medium term driven by underlying earni
Slide 7: Recognising embedded value in $1.5bn Healthscope portfolio
IBDROOT\PROJECTS\IBD-HK\KAURY2017\605978_1\IPO\Cornerstone presentation\2019.09.09 Amalfi Investor Presentation.pptx Recognising embedded value in $1.5bn1 Healthscope portfolio +15% Net valuation uplift since acquisition2 +15% Net valuation uplift2 $1.5bn $0.2bn $1.2bn $0.1bn $0.6bn $0.5bn $0.9bn $0
Slide 8: 1H FY24 Highlights
IBDROOT\PROJECTS\IBD-HK\KAURY2017\605978_1\IPO\Cornerstone presentation\2019.09.09 Amalfi Investor Presentation.pptx 1H FY24 Highlights Strong growth in earnings and continued progress on strategic initiatives, including realising significant valuation gains across the Healthscope portfolio Financia
Slide 9: Investment strategy
IBDROOT\PROJECTS\IBD-HK\KAURY2017\605978_1\IPO\Cornerstone presentation\2019.09.09 Amalfi Investor Presentation.pptx Investment strategy HealthCo’s objective is to deliver growing distributions and long-term capital growth STRONG OPERATIONAL ACCRETIVE DEVELOPMENT LONG-TERM STRUCTURAL DEMAND FUNDAMEN
Slide 10: 2. Portfolio overview
IBDROOT\PROJECTS\IBD-HK\KAURY2017\605978_1\IPO\Cornerstone presentation\2019.09.09 Amalfi Investor Presentation.pptx Knox Private Hospital (VIC) 2. Portfolio overview 9
Slide 11: Portfolio overview
IBDROOT\PROJECTS\IBD-HK\KAURY2017\605978_1\IPO\Cornerstone presentation\2019.09.09 Amalfi Investor Presentation.pptx Portfolio overview Strong portfolio fundamentals and organic growth underpinned by national healthcare tenants benefiting from long-term structural megatrends Portfolio statistics1 Ju
Slide 12: Portfolio update
IBDROOT\PROJECTS\IBD-HK\KAURY2017\605978_1\IPO\Cornerstone presentation\2019.09.09 Amalfi Investor Presentation.pptx Portfolio update Long term leases to high quality national operators with 75% CPI linked income and a WARR of 4.2%1 Portfolio subsectors – income split and key tenants2,4 Gov’t, Life
Slide 13: $200m Asset recycling program
IBDROOT\PROJECTS\IBD-HK\KAURY2017\605978_1\IPO\Cornerstone presentation\2019.09.09 Amalfi Investor Presentation.pptx $200m Asset recycling program Continuing to execute on asset sales1 to maintain gearing at lower end of 30-40% target range Cairns (QLD) Chadstone (VIC) Armadale (VIC) $115m Sold or c
Slide 14: 3. Developments
IBDROOT\PROJECTS\IBD-HK\KAURY2017\605978_1\IPO\Cornerstone presentation\2019.09.09 Amalfi Investor Presentation.pptx The George (NSW) 3. Developments 13
Slide 15: Development track record
IBDROOT\PROJECTS\IBD-HK\KAURY2017\605978_1\IPO\Cornerstone presentation\2019.09.09 Amalfi Investor Presentation.pptx Development track record Strong brownfield and greenfield development capability, completing >$250m of projects since IPO in Sep-211 The George Private Hospital, Camden (NSW)2 Nepean
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 Current pr
Slide 17: 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 impact1 Environm
Slide 18: 4. Financial results
IBDROOT\PROJECTS\IBD-HK\KAURY2017\605978_1\IPO\Cornerstone presentation\2019.09.09 Amalfi Investor Presentation.pptx Northpark Private Hospital (VIC) 4. Financial results 17
Slide 19: Earnings summary
IBDROOT\PROJECTS\IBD-HK\KAURY2017\605978_1\IPO\Cornerstone presentation\2019.09.09 Amalfi Investor Presentation.pptx Earnings summary 1H FY24 FFOpu of 4.0c and DPU of 4.0c in line with guidance FFO $m 1H FY23 1H FY24 ▪ 1H FY24 FFO of 4.0 cpu consistent with FY24 guidance Property NOI 15.6 35.2 – Rep
Slide 20: Balance sheet
IBDROOT\PROJECTS\IBD-HK\KAURY2017\605978_1\IPO\Cornerstone presentation\2019.09.09 Amalfi Investor Presentation.pptx Balance sheet Net valuation gain of $38m, representing a +2.5% net increase on the Jun-23 pro-forma portfolio value $m Jun-23 Dec-23 UHF deconsolidation ▪ All UHF assets and liabiliti
Slide 21: Capital management
IBDROOT\PROJECTS\IBD-HK\KAURY2017\605978_1\IPO\Cornerstone presentation\2019.09.09 Amalfi Investor Presentation.pptx Capital management Gearing at the lower end of the 30-40% target range with 76% of debt hedged Debt facilities summary ($m) Jun-231 Dec-23 Liquidity Liquidity ▪ $62m of liquidity as a
Slide 22: 5. Guidance and outlook
IBDROOT\PROJECTS\IBD-HK\KAURY2017\605978_1\IPO\Cornerstone presentation\2019.09.09 Amalfi Investor Presentation.pptx Springfield (NSW) 5. Guidance and outlook 21
Slide 23: Guidance and outlook
IBDROOT\PROJECTS\IBD-HK\KAURY2017\605978_1\IPO\Cornerstone presentation\2019.09.09 Amalfi Investor Presentation.pptx Guidance and outlook FY24 guidance of 16% FFO per unit growth and 5% DPU growth reaffirmed FY24 FFO/unit guidance (cents) FY24 DPU guidance (cents) FY24 FFOpu guidance of 8.0 cents re
Slide 24: 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 23
Slide 25: HealthCo portfolio – key metrics
IBDROOT\PROJECTS\IBD-HK\KAURY2017\605978_1\IPO\Cornerstone presentation\2019.09.09 Amalfi Investor Presentation.pptx HealthCo portfolio – key metrics High quality and diversified portfolio with a total value of $1.6bn1 WALE # Asset State Classification Fair Value ($m) Cap Rate (%) Site Area (sqm) Oc
Slide 26: Reinvesting in healthcare infrastructure at attractive returns
IBDROOT\PROJECTS\IBD-HK\KAURY2017\605978_1\IPO\Cornerstone presentation\2019.09.09 Amalfi Investor Presentation.pptx Reinvesting in healthcare infrastructure at attractive returns $1bn+ development pipeline1 with UHF as a complementary development partner HCW HCW/UHF total funding HCW share of Targe
Slide 27: 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 HMC Capital secured $650m of equity commitments for UHF in 1H FY24, including 4 global institutional investors UHF update Investment m
Slide 28: HealthCo's top 10 tenants by income
IBDROOT\PROJECTS\IBD-HK\KAURY2017\605978_1\IPO\Cornerstone presentation\2019.09.09 Amalfi Investor Presentation.pptx HealthCo’s top 10 tenants by income Significant exposure to high quality national and government tenants who account for 85% of total NOI Top 10 tenants by income1, 2 49% 6% 5% 4% 3%
Slide 29: Income statement and FFO reconciliation
IBDROOT\PROJECTS\IBD-HK\KAURY2017\605978_1\IPO\Cornerstone presentation\2019.09.09 Amalfi Investor Presentation.pptx Income statement and FFO reconciliation H1 FY24 FFO of 4.0cpu in line with guidance $m 1H FY23 1H FY24 Loss on deconsolidation ($m) Funds from operations (FFO) 10.0 22.6 Net assets of
Slide 30: Healthcare real estate is an attractive and resilient asset class
IBDROOT\PROJECTS\IBD-HK\KAURY2017\605978_1\IPO\Cornerstone presentation\2019.09.09 Amalfi Investor Presentation.pptx Healthcare real estate is an attractive and resilient asset class Favourable long-term structural demand drivers have driven outperformance Low correlation to broader Supported by Sup
Slide 31: 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 Corporate communications Corporate Finance & IR Manager Senior Portfolio Manager HMC
Slide 32: 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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