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10/01/25

15:36

Post #: 77352279
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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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Hopefully you will correct your calculations!

even without correcting if you are after 7.6% yield then there are many REIT that provides that yield including HDN (7.25%) without any news in market about one of their biggest tenant facing financial struggle !!

HCW Price at posting: 94.8¢ Sentiment: None Disclosure: Not Held
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Last 78.5¢		Change 0.015(1.95%)		Mkt cap ! $423.6M

Open	High	Low	Value	Volume
76.5¢	78.5¢	75.0¢	$322.3K	416.7K

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No.	Vol.	Price($)
14	81347	78.0¢

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Price($)	Vol.	No.
79.0¢	26802	9

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No.	Vol.	Price($)
7	26263	0.770
11	53133	0.765
7	80276	0.760
4	8312	0.755
4	242115	0.750

Price($)	Vol.	No.
0.775	27991	8
0.780	62557	12
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