HealthCo shares lift after extending Healthscope’s rent deferral
Make us a preferred source
Make us a preferred source on Google
More news: HMC Capital’s HealthCo Healthcare and Wellness REIT has seen its share price lift in morning trade after announcing an extension of its rent deferral agreement with tenant and troubled hospital operator Healthscope.
The REIT also announced that it would not declare distributions for the period between 1 July 2025 and 30 September, with distributions expected to resume after the Healthscope matter is resolved.
At 11:38am AEST, shares in HealthCo lifted 4.4% to 72 cents per share.
Healthscope landlord extends rent deferral
The news: HMC Capital’s HealthCo Healthcare and Wellness REIT and the Unlisted Healthcare Fund have entered a one-month extension on the previously announced partial rent deferral agreement with Healthscope to support the sale of the hospital operator.
The numbers: Under the agreement, 85% of the October rent will be paid at the beginning of October with the remaining 15% for the May-October 2025 period to be paid at the end of October.
At the completion of the agreement, all rent due and payable to the landlords since 2023 will have been collected. In the first quarter of FY26, $12.7 million in cash rent was receipted by from Healthscope.
The context: Healthscope previously entered a rent deferral agreement in May with HealthCo and the Unlisted Healthcare Fund after the hospital operator entered receivership.
As previously announced, the Landlords have entered conditional agreements with alternative tenants at the 11 hospitals it owns.
Final lease agreements are expected to be entered into if the receiver led healthscope sale process “does not result in one or more proposed assignees and lease arrangements which the Landlords consent to”.
HealthCo also flagged that it will not declare a quarterly distribution for the period 1 July 2025 to 30 September 2025 to “preserve balance sheet liquidity”, with distributions to recommence after the Healthscope issue is resolved.
The REIT also flagged that it has exchanged on the sale of Vitality Village for $26.5 million.
The source: ASX
