HealthCo Healthcare & Wellness REIT (ASX: $HCW) FY24 Results Overview

HealthCo Healthcare & Wellness REIT (ASX: $HCW) has reported a 16% growth in Funds From Operations per unit (FFOpu) for the full year ended 30 June 2024. The REIT's portfolio demonstrated operational strength and income security, with robust asset revaluations and successful completion of development projects. The FY25 guidance indicates a positive outlook with a 5% growth in FFO and Distribution per unit (DPU) compared to FY24. HCW's financial highlights include a 32.5% gearing, $89m of available liquidity, and a Net Tangible Asset (NTA) per unit of $1.64.

Executive Commentary on FY24 Performance and FY25 Guidance

FY24 was a period of operational strength for HealthCo Healthcare & Wellness REIT, demonstrating the critical infrastructure-like characteristics of the healthcare property asset class. The portfolio maintained 100% cash collections, 99% occupancy, and a long-term lease expiry profile of over 12 years throughout FY24. The positive asset revaluations recorded in June 2024 reflect the resilience and stability of the REIT's asset portfolio. HCW's focus on value accretive development projects and proactive capital management initiatives has contributed to the positive outlook for FY25, with a projected 5% growth in FFO and DPU compared to FY24.

Summary of FY24 Results and Outlook for FY25

HealthCo Healthcare & Wellness REIT (ASX: $HCW) has delivered a robust performance in FY24, characterized by a 16% growth in FFOpu and positive operational and financial metrics. The successful first close of the ~$1.3bn Unlisted Healthcare Fund (UHF) and completion of development projects underscore the REIT's strategic initiatives. The FY25 guidance of 5% growth in FFO and DPU reflects HCW's commitment to creating value for its unitholders. The REIT's focus on stable and growing distributions, long-term capital growth, and positive environmental and social impact positions it as a leading diversified healthcare REIT in Australia with a promising outlook for the future.