Morgans initiates coverage on HealthCo Healthcare & Wellness REIT with an Add rating and $2.48 target. Offering leverage to the fast growing themes of health, wellness, technology and an ageing population, the REIT is expected to grow via development and acquisition.
The aim is to provide stable and growing distributions, and capital growth via exposure to hospitals, aged care, childcare, government, lifesciences and research, as well as Primary Care & Wellness properties.
The REIT is externally managed by Home Consortium ((HMC)) which also has a 20% holding. Based upon guidance at the recent IPO, an annualised distribution yield of circa 4.3% is on offer, points out the analyst.
Target price is $2.48.Current Price is $2.14. Difference: $0.34 – (brackets indicate current price is over target). If HCW meets the Morgans target it will return approximately 14% (excluding dividends, fees and charges – negative figures indicate an expected loss).
