First Read: HMC Capital "Healthscope update: First alternative operator now..."

Research evidence excerpt

First Read: HMC Capital "Healthscope update: First alternative operator now..."

Global Research

28 May 2026ab

First Read

EquitiesHMC Capital

Healthscope update: First alternative operator Australia

now locked in Real Estate

12-month rating Buy

12m price target A$3.70

Healthscope replaced as operator for one asset … with others lined up

HealthCo REIT (HCW) provided an encouraging update on the $1.4bn Healthscope 11-

asset hospital portfolio, which has been a major overhang on HMC since Healthscope's Price (27 May 2026) A$2.96

financial issues were widely publicised in early-2025. First, non-for-profit Bethesda RIC: HMC.AX BBG: HMC AU

Health Care will replace Healthscope as operator for Mount Private Hospital in Perth,

Trading data and key metrics

owned by HMC's Unlisted Healthcare Fund (UHF), with the new lease to commence in

Sep-26Q. Face rents will remain unchanged under the new lease, with lease incentives in 52-wk range A$5.22-2.20

the vicinity of ~10-15% to be provided per HCW's 1H26 update. The WA government Market cap. A$0.89b/US$0.63b

will be providing financial assistance to Bethesda to facilitate the transition, and Shares o/s 300m (ORD)

importantly will be guaranteeing payment of the lease to HCW/UHF (i.e. any shortfall Free float 63%

will be payable by the WA government). This significantly enhances the asset's lease Avg. daily volume ('000) 1,966

covenant. Secondly, Healthscope's receivers have granted 6 weeks of due diligence to Avg. daily value (m) A$5

alternative operators for the remaining 27 hospitals (10 controlled by HMC). HMC has Common s/h equity (06/26E) A$2.09b

reiterated that it has 'executable new lease agreements' for its 10 remaining hospitals P/BV (06/26E) 0.6x

and importantly has specified the counterparties as Healthe Care (VIC), Acurio