HealthCo Healthcare shares spike 6% following H1 FY26 results

Healthco Healthcare and Wellness REIT (ASX: HCW) shares have jumped 5.97% higher in Tuesday lunchtime trade. At the time of writing, the shares are changing hands at 71 cents a piece. The latest spike follows the company’s half-year results for FY26, which it posted ahead of the market open this morning.

The uptick means the shares are now 1.39% lower year to date and 33.02% below where they traded this time last year.

Why HealthCo Healthcare’s shares are storming higher on results day

Here’s what the commercial health and wellness real estate assets manager posted for the half-year ended 31st December 2025:

• Revenue from ordinary activities up 6% to $30.5 million
• Revenue, including income from the share of losses/profits of equity accounted investees was down 51% to $14.7 million
• Loss from ordinary activities after tax was up 75% to $26.9 million

What happened in H1 FY26?

HealthCo Healthcare reported a 6% increase in revenue to $30.5 million. This was up from $28.7 million in the prior corresponding period (pcp).

Its revenue, including income from the share of losses/profits of equity accounted investees, dropped 51% to $14.7 million for the period. This was from $30.1 million in the prior corresponding period (pcp).

The loss from ordinary activities after tax attributable to owners of HealthCo and Wellness REIT was 75% higher at $26.9 million. This was $15.4 million in the pcp.

As expected, no interim distributions were declared during the financial half year to preserve balance sheet liquidity.

HealthCo Healthcare also noted that $77 million of its asset sales settled in H1 FY26. It also achieved a cash and undrawn debit of $155 million, and its gearing was 28.5%, which was below its 30% to 40% target range.

The update revealed that all 11 hospitals owned by HealthCo Healthcare and the Unlisted Healthcare Fund (Landlords) have paid 100% of all rent due. This is up to and including February 2026.

The Landlords have executable agreements with alternative operators on a state-by-state basis for all 11 hospitals. These agreements include new long-term lease tenure, unchanged rent and rental incentives. These will ensure sustainable commercial arrangements between the Landlords and the alternative operators. These incentives would indicatively result in a 10% to 15% near-term reduction in asset valuations.

“During the half, our priority has been to progress a long-term solution for the Healthscope hospital portfolio that ensures the continuity of essential healthcare services and maximises value for our investors. We are encouraged by the agreements reached with alternative operators and the strong operational performance of the broader portfolio. HCW’s fundamentals remain resilient, and we are focused on delivering a clear resolution that positions the platform for renewed growth and disciplined capital deployment,” HealthCo Healthcare Managing Director, real estate, Sid Sharma said.

HealthCo Healthcare Fund Manager, Christian Soberg, added:

We have maintained a strong balance sheet to ensure we are well-placed to support transition arrangements and capture future opportunities. We are making progress toward resolving the Healthscope situation with a path to restoring normalised distribution settings for our unitholders.

What’s the outlook for HealthCo Healthcare for FY26?

The company said that its key priority is to “resolve the Healthscope situation”. Healthscope is currently in receivership following a collapse under private equity ownership by Brookfield. The collapse was driven by high debt and poor financial performance. Healthscope leased four hospitals directly owned by the HealthCo Healthcare REIT and another seven owned by an associated entity.

The company said it expects to recommence distributions and issue guidance once this has been resolved. 

The post HealthCo Healthcare shares spike 6% following H1 FY26 results appeared first on The Motley Fool Australia.

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Motley Fool contributor Samantha Menzies has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Brookfield and Brookfield Corporation. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.