HealthCo Healthcare and Wellness REIT (ASX:HCW)

David Di Pilla
Director
Market Cap (AUD): 741.35M
Sector: Real Estate
Last Trade (AUD): 2.24 -0.04 (-1.75%)
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1. About

HealthCo Healthcare and Wellness REIT (ASX:HCW) is a REIT focussed on generating returns through the ownership of healthcare and wellness property assets. 

HealthCo REIT's objective is to provide exposure to a diversified portfolio underpinned by healthcare sector mega-trends, targeting stable and growing distributions, long-term capital growth and positive environmental and social impact. To deliver its objective of stable and growing distributions, HealthCo REIT's strategy is to:

  • maintain a diversified exposure across geographies, tenants and target sub-sectors of healthcare and wellness
  • target stable income through long leases, contracted rental escalations (including fixed and CPI escalations), sustainable rents and strong tenant covenants
  • pursue accretive acquisition and development opportunities; and
  • maintain gearing within a range of 30 to 40%.

 

HealthCo REIT will target a balanced exposure to a model portfolio comprising of Hospitals; Aged Care; Childcare; Government, Life Sciences & Research; and Primary Care & Wellness properties (the Model Portfolio). 

The Model Portfolio is expected to benefit from attractive mega-trends underpinning long-term demand for healthcare and wellness properties. Ageing population, increased consumer health literacy and technological changes leading to improvements in detection and treatment of illnesses are contributing to increased utilisation of health services. In addition, increasing government expenditure is supportive of continued investment in health and wellness infrastructure.

HealthCo Healthcare and Wellness REIT is managed by Home Consortium Limited (ASX:HMC).

2. Business model

3. Strategy

4. Markets

5. Competition

6. History

7. Team

8. Financials

9. Risk