Northwest Health Prop Real Est Inv Trust (NWH.UN.TO)

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

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%.

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.

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.

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. 

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).  

It is effectively a REIT. It is down 50% over the past year, a function of interest rate pressure. They have cut their dividend.

Healthcare property business not performing as well as anticipating. Floating rate debt very hard on business with rising interest rates. CEO has since resigned. Would recommend holding going forward. 

Cut dividend. Healthcare properties around the world. Over-levered in a rising interest rate environment. Valuation imploded. Steer clear. Other distressed real estate ideas out there have more catalysts.

In flux. Founder/CEO left. Looking at strategic alternatives, possible asset sales. High leverage. A show-me story. Execution risk to sell assets and fix balance sheet in a difficult market.

Over-levered. Properties aren't performing as well. Geographic distribution requires them to be experts globally, which is a problem. CEO resigned, change in management. Whole sector's under stress, low quality gets hit harder.

Recent cut in dividend. Not expecting any more dividend cuts going forward. Does not own shares at this time. If already own shares, would recommend keeping. 

Messy. Cut dividend by 55%. Good lesson on chasing a too-high dividend yield. 97% occupancy, but not enough to keep them out of financial difficulties. $4B of debt, more than 1/3 at floating rates. Giant "For sale" sign on it. Insider selling in January. Facing tax-loss selling if things don't turn around.

Lots of debt, operating in jurisdictions with currency risk. Bought stable, UK and US assets, but got caught offside with variable-rate debt cutting into cashflow. Cut distribution. Execution risk. Sold off, but don't add.

The distribution cut was needed, but of course was fairly large (55%). The asset sales are a good start but challenges remain. The strategic review is only seven weeks old, but reading between the lines it sounds like there has not been huge interest yet. It is hard to endorse this right now. With higher rates and lower assets (from sales), growth will be hard to come by. We might be reluctant to sell it on the first trading day of this news, but we certainly think it can be 'targetted' for elimination from an investor's portfolio and used as a source of cash for other ideas. The stock will likely be in the penalty box for some time for multiple disappointments over the past year, with a business that is supposed to be more reliable and more predictable. We would not see solvency as an issue but it is just hard to like right now. 
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