1820 ET - HealthCo Healthcare & Wellness REIT's announcement that it has issued breach notices to Healthscope for failing to pay rent for March in full has Morgan Stanley assessing what it might mean. HCW says it has withdrawn FY 2025 guidance pending a resolution of the Healthscope tenancies. According to MS, Healthscope makes up 59% of HCW's income. "If we assume zero income from Healthscope tenanted assets, and that HMC Capital waives all management fees, FY 2026 funds from operations/security would drop to circa 1 Australian cent versus our current 8.6 cent estimate, and interest cover would be circa 1.2x versus 1.75x covenant," analyst Lauren A. Berry says. Still, HCW says it's talking to other operators about taking over the leases. (david.winning@wsj.com; @dwinningWSJ)
(END) Dow Jones Newswires
March 04, 2025 18:20 ET (23:20 GMT)
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