Sonic: Sale and Leaseback of Brisbane Hub Laboratory

Research evidence excerpt

Sonic: Sale and Leaseback of Brisbane Hub Laboratory

Australia | Healthcare Services

Sonic EquityJuneResearch17, 2026

TARGET | ESTIMATE CHANGESale and Leaseback of Brisbane Hub

RATING HOLDLaboratory

PRICE AUD19.85^

SHL has completed its previously flagged sale and leaseback of its Brisbane

AUD22.60 (AUD22.55) |

Hub Laboratory. We update for this. We note further property sale and PRICE TARGET | % TO PT +14%

leaseback transactions are under consideration. SHL continues to generate 52W HIGH-LOW AUD29.24 - AUD18.26

cash (this transaction adds to this), which raises the likelihood of further FLOAT (%) | ADV MM (USD) 94.8% | 35.26

corporate activity over the medium term. MARKET CAP AUD9.6B | $6.8B

TICKER SHL AU

SHL completes sale and leaseback of Brisbane Hub Laboratory. The key highlights of the ^Prior trading day's closing price unless otherwise

sale and leaseback of Brisbane Hub Laboratory include: 1) The purchase price was A$445 noted.

million, with rent (under a triple net lease arrangement) to commence at A$25m pa, with CPI-

linked annual rent reviews (not exceeding 3.5% p.a.); 2) Sonic expects to book a FY26E gain

FY (Jun) CHANGE TO JEFe JEF vs CONS

on sale before tax under AASB 16 Leases of cA$100 million. We have normalised for this; 3)

FY26E tax payable is expected to be cA$40m; the taxable capital gain on sale will be cA$300m, 2026 2027 2026 2027

however, Sonic has cA$170m of accumulated capital losses (not currently reflected on the REV NA NA +2% +3%

balance sheet) to offset against this; and 4) further property sale and leaseback transactions EPS NA -1% +1% -2%

are under consideration.

2026 (AUD) 1HalfA 2Half FY

SHL continues to expect EBITDA for FY26E in the range of A$1.87Bn to A$1.95Bn at EPS 0.53 0.69 1.23

constant currency (CC, vs. JEF at A$1.90Bn CC).