This article is from the Australian Property Journal archive
THE HealthCo Healthcare and Wellness REIT (HCW) has booked valuation gains of 2.3% on its portfolio, driven by an uplift in medical centres, to nearly $1.63 billion, while it is hoping to wrap up another $40 million in asset sales by the end of the month.
The $37 million gross revaluation uplift was driven by income growth at its private medical surgical hospitals, which increased by $12 million.
HCW senior portfolio manager, Christian Soberg said the valuations reflect the critical infrastructure characteristics of the portfolio.
“The solid pricing outcomes we have achieved in our asset recycling program highlights the continued investment demand for high quality healthcare and essential infrastructure real estate assets.”
He said the trust continues to recycle proceeds from the disposal program into the on-market unit-buyback, whilst maintaining gearing at the lower end of the 30-40% target range.
He said the trust is expected to complete its $200 million asset recycling program by the end of FY24. It has now divested $158 million worth of assets at a passing yield of 5.2%, and is an additional circa $40 million of asset sales in that time.
HCW declared a distribution of 2.0c per unit for the June quarter.
It also reaffirmed its FY24 funds from operations per unit distributions per unit guidance of 8.0c.
