Seeking some informed opinion from other HC posters. I've been invested in HCW for a while now, however the SP continues to trade at a significant discount to the NTA of $1.64 (as at 30th June 2024). I understand Healthscope has been going through some financial hard times recently, however it's very unlikely that the private hospital sector (as a whole) is going to fail, or whether the various State Governments would even let it fail. What attracts me to this investment are the assets themselves. These large parcels of land in high density urban areas with the associated zoning and service infrastructure cannot be easily replicated (I would almost impossible). Occupancy is 99%. The replacement cost of the buildings and facilities would be enormous. The only thing at risk here that I can see is Healthscope's ability to pay rent which is linked to CPI. And I think that risk has a relatively low probability. What I am missing? Why is the market assigning such a large discount to NTA? Cheers, Stumped.
HCW Price at posting:
$1.14 Sentiment: Buy Disclosure: Held
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