This article is from the Australian Property Journal archive
HOMECO spin-off HealthCo Healthcare and Wellness REIT (HCW) has posted an increase in funds from operations as well as portfolio occupancy over the first half, and has acquired a fully-leased life sciences and government-tenanted asset in Macquarie Park Innovation Precinct for $81 million.
The property is anchored by Australian plasma processing company Aegros, and Saluda Medical, a med-tech company focused on pain management through neural activation.
Over 90% of income is weighted towards health, life sciences and government tenants.
The purchase follows $177 million of health and life sciences property acquisitions in the first half, in which HCW increased its FFO year-on-year from $5.8 million to $10 million, or 3.1c per unit.
Full-year FFO guidance was upgraded to 7.1c per unit, representing 15% growth on FY22, and a 4% upgrade to previous guidance of 6.8 cents.
Distributions for the half were at 3.75c per unit, in line with FY23 guidance. FY distributions guidance of 7.5c was reaffirmed.
Portfolio occupancy lifted to 99% and weighted average lease expiry is 10 years. The trust secured 100% in cash rent collection
Also during the half. HCW acquired the Vitality Village Health Hub on the Sunshine Coast for $28.9 million, on a 6.5% yield, and established a strategic partnership with Mater Misericordiae Ltd beginning with the co-ownership and anchor tenancy at the Springfield Health Hub in Brisbane.
It has just completed The George paediatric hospital in Camden in south west Sydney.
