Brett Girard, CPA, CA, CFA NorthWest Health Prop Real Est Inv Trust NWH.UN-T DON'T BUY Feb 12, 2024

Large collection of healthcare real estate around the world. Inflation linked leases (good for income). Sticky tenants with doctors and healthcare. Problem is too much floating debt (higher interest rates). Recently replaced management team. Confident on business going forward. Expecting strength going forward. Book value is around $6-$7/share (trading around $4).  

Strategic review. Management changes. Multiple jurisdictions globally, not very efficient for a Canadian REIT especially with the state of its balance sheet. Lots of headwinds on balance sheet and distribution coverage. High leverage, tight coverage. Good assets, but not lots of options. 

Its sector should be more resilient. Multiple jurisdictions, so multiple currencies and credit risks. Too much debt. Management overhaul. Going through strategic process. Distribution may be challenged. High risk. Better off elsewhere.

Benefits from lower interest rates and a new CEO. Last year, they cut the dividend (which is safe as its payout ratio falls) and have sold $1.6 billion of assets. Their NAV is $9/share. Their properties serve healthcare, so are stable.

Cut dividend in 2023. Global scale, so riskier than a traditional Canadian REIT. High occupancy of 96%. She's concerned about pricing pressure. These types of REITs tend to underperform in first stages of a recession. High debt load. Yield is 7%.

It has a 6.2% yield and he doesn't usually put higher yielding stocks into the equity platforms. This one came from the income platform. It fell so fast because it was over-leveraged but has now sold some of its assets. It is building a base and appears to be breaking out so he has bought two of the three legs.                      Buy 0  Hold 5  Sell 0

Balance sheet's really under pressure, making progress with repairing. Management shakeup, but now the new CEO's leaving in 2025. Lots of heavy work to do. Only for those with high risk tolerance. More compelling opportunities elsewhere.

One of the most attractive REITs on the TSX right now. Coming out of poor fundamental operations where capital allocation was mismanaged. New CEO cut dividend, sold properties. Prepared either way if interest rates fall or rise. Payout ratio will fall closer to 80%. Stock may have fallen recently because that new CEO is retiring next year. Yield is 7.3%, one of the highest out there.

Yes, in much better position today than previously. Management transition. Hard to see it going back to $10 levels anytime soon. Decent job allocating capital (ie. selling assets) to pay down debt. Enough to pay March debentures. Risk/reward not that compelling.

Likes the space. Diversified assets globally. Capital allocation decisions caught up to them, and stock dropped in 2022. Liquidity crunch, management shakeup, new CEO set to retire. Attractive yield is in question. If you want safety, this isn't it.