Ann: Update - Notification of buy-back - HCW, page-16

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10/01/25

10:09

Post #: 77344852
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Originally posted by Tarvold: ↑

How did you arrive at HCW assets being around half made up by Healthscope?

HCW owns 4 Healthscope properties directly (100%) totalling $288.4m (approx 18% total assets) + a share of 7 through it's strategic investment in UHF.
Distributions from UHF LY represented approx 18% of total income ($79m) before fees & interest. (Assuming that's all from Healthscope assets?).

So I'd say your 50% income at risk estimate is too high & should be closer to 35%.

35% of $79m is $27.7, 20% reduction in rent is around $5.5m.
$5.5m is approx 12% LY DFO/distributions.

CY distributions 8.2c, so if 12% was lost due to new contracts on Healthscope assets that would reduce distributions to approx 7.2c.
7.2c at 95c unit price is a yield of 7.6%, a little high for a REIT but not massively so.

So IMO current unit price is probably around the right level to allow for Healthscope contracts to be defaulted on & resigned at a 20% discount. Assuming that's even correct.

Reports is the press suggest rival hospital operators are ready to step in should Healthscope go into administration.

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your calculation is incorrect but if it helps you convince buying then go for it

HCW Price at posting: 95.0¢ Sentiment: None Disclosure: Not Held
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Last 79.3¢		Change 0.023(2.92%)		Mkt cap ! $430.5M

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Ann: Update - Notification of buy-back - HCW, page-16

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