HMC Capital and Healthco fall after issuing breach notices to Healthscope
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More news: Shares in HMC Capital and its healthcare-focused real estate investment fund Healthco tumbled after issuing breach notices to private hospital group Healthscope for failing to pay all rent due for March.
Healthco shares were down 6.7% to 90 cents at 2:10pm AEDT. HMC Capital fell 5.2% to $8.78.
HMC’s Healthco REIT issues breach notices to Healthscope
The news: HMC Capital’s Healthco REIT and Unlisted Healthcare Fund have issued breach notices to struggling hospital operator Healthscope for failing to pay all rent due for March.
The numbers: Healthco on Tuesday withdrew its FY25 funds from operations per unit and distribution per unit guidance of 8.4 cents a security pending resolution of the matter. The REIT’s shares were down more than 5% to 91.5 cents on the news.
Healthco REIT is a major landlord to HealthScope, supplying leases to about a third of its hospitals.
The context: Healthco said it had received part payment of the rent, but warned that if the breaches are not remedied, it would enforce legal rights and seek to replace Healthscope’s tenancies with other hospital operators.
The news comes just days after HMC Capital emerged as a suitor for Healthscope’s hospital network. Healthscope, which was acquired by Brookfield in 2019, has been struggling with rising wages and lease costs, disagreements with private health insurers and mounting debt.
The source: ASX
