i have the position I'm happy with so I'm not buying or selling.
As Healthscope represents about 50% of the total income HCW receives it's a bit difficult to take a view on the valuation without taking into account what may or may not happen regarding the Healthscope leases.
When I formed a view on my investment I assumed that there would be a reduction in distributions, as a result of resolving the Healthscope issues. (HCW Management believes there will be no loss if rent from the Healthscope leases). I then extrapolated that on a yield I was happy to receive on my investment to set a maximum purchase price. Now It's a matter of just waiting to see what the resolution is on Healthscope.
Property is a long term investment & as such short term reductions in distributions shouldn't come into your decision to invest. You either take a view as I described above based on your assumptions or you wait until Healthscope is all resolved, distributions are potentially reset & the REIT is priced accordingly.
Everyone has to draw their own conclusions & invest or not invest accordingly.
HCW Price at posting:
82.5¢ Sentiment: Buy Disclosure: Held
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