Absolutely. I think some are looking purely at the profitability equation in suggesting rents need to be cut, ignoring the fact that most of the facilities are 100% required and simply couldn't be replicated at less than the current rent. As if HCW shareholders should subsidise the other players.
For the majority of properties I think they can and should just say "if you don't like the rent, bad luck, build your own" but for the smaller number of premises that might be closer to marginal profitability at current rent it's a more difficult balancing act, particularly if the portfolio is broken up.
HCW Price at posting:
76.0¢ Sentiment: Hold Disclosure: Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)