IMO it depends on whether there is a deal in place for the hospitals before they to file the accounts. If there isn't the prudent thing would be to retain the earnings for the quarter. If there is a deal done I would expect them to pay out to the same ratio of FFO as before & then reset FY26 based on the new lease terms as a sustainable distribution.
If there is a reduction in rent & then a knock on to the valuations & gearing HCW should easily still be within it's lending covenants. It just may then choose to pay out a lower % of FFO to reduce debt over time or dispose of property.
Either way it's a waiting game to see what happens.
HCW Price at posting:
82.5¢ Sentiment: Buy Disclosure: Held
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