Healthscope has confirmed full compliance with its lease obligations, having paid the December rent in full, with HealthCo Healthcare & Wellness REIT (ASX:HCW) and the Unlisted Healthcare Fund receiving $18.3 million in cash rent for Q2 FY26.
HCW and UHF continue to work closely with the Receiver and, as previously disclosed, have entered into conditional agreements with alternative tenants for all 11 hospitals they own, with commercial terms acceptable to the landlords.
Binding leases with these alternative tenants will proceed if the ongoing Healthscope sale process does not yield acceptable assignees.
All existing legal rights of HCW and UHF, including cross-default and termination rights, remain in place.
On the capital management front, HCW has completed the sale of Nambour and Shepparton hospitals as part of its strategy to strengthen balance sheet flexibility.
Following all settled and exchanged FY26 asset sales, generating aggregate proceeds of $76.8 million, HCW reports cash and undrawn debt of $152.2 million as of December, with pro-forma gearing at 28.7%—below the company’s target range.
HCW will not declare a quarterly distribution for the December quarter to preserve liquidity, with distributions expected to resume once the Healthscope situation is resolved.