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

Medical office space – dentists, doctors and supporting services. It is challenging. They are unable to get the occupancy. It has not been a great investment. It is cheap at these levels. But they need to adjust their financials to help us see their forward targets and to see operations gains going forward.

Focused on health care properties across Canada as well as medical office buildings. One of their focuses has been increasing occupancy to 93% but it stayed at 91%. This is a risk in specialized office space. They are facing difficulties in leasing at some of their properties. The sentiment in the office market is poor so people are avoiding this one.

Stock has underperformed for some time. It is very difficult in this business to find medical personnel and specialists, to lease up space. 8% yield.

Pays an 8% distribution yield. Have had problems with leasing, but occupancy ratio has not been as buoyant as he would expect. Distribution yield could go higher. In a good sector and benefits from aging demographics.

You can stream the income with this. Largest owner of medical buildings in North America. Stock sold off because people don’t want to own REITs that don’t have a lot of operating leverage. Also, they have not hit their operating numbers. They could not lease out all of the properties mentioned in the IPO.

Medical office building REIT, pretty much the only one in Canada. Should benefit from improving demographics and demand for doctors. Had a lousy 2014 outlook and have a number of tenants moving out, which they will have to replace. They are going to benefit from lower mortgage rates and he thinks the stock is worth north of $11.

Focused on medical office buildings and regular office buildings that cater to healthcare type tenants. Have fallen over the last 6 months along with the sector, but they face some unique issues. Haven’t been able to get to their stabilized level of occupancy. Management have indicated that they believe they can get to 93%, but have only reached 91%. Also, the Canadian office market is seeing some increased supply. He is concerned about competition. Trading at a substantial discount (15%) to their NAV. 8.3% yield will continue to be sustainable. Any investor that is looking for value and has patience could consider this as an investment.

Likes the prospects. Very stable income stream. Pulled back dramatically in this environment. Looks very attractive.

They can’t get the love of the market. Their portfolio is very stable but leasing is a high maintenance process. Yield is safe. Yield is your main source of return.

Basically owns medical buildings and is a very, very consistent business. Also, owns the parking lots. There are higher operating costs because of their x-ray machines, etc. 7% yield. The problem is their ownership of N.W. International Healthcare (MOB.UN-X). He feels they should just do only one thing. (See comments on Artis REIT (AX.UN-T) as well, which also has medical offices.)

Bought this on the IPO, held it for the yield but became increasing negative on it because they were basically paying full value for the acquisitions they were making and not adding value. They are not developers, but more financial engineers. Prefers companies that have real growth and can add value.

Trading at a deep discount right now. Owns medical office buildings in the GTA and Western Canada. The challenge has always been getting the leasing and occupancy up, which has always kept him away from the stock but has been very impressed with the quality of buildings they’ve bought. 7.67% yield.

Likes the medical office space. Very resilient. Doctors and dentists don’t move around a lot. Very good model. Wasn’t particularly enthusiastic about a lot of the acquisitions they made when they first started. Seemed to be growing for the sake of growing. Sold his holdings. As a long-term investor, you should do fine.

Looks to be making a bit of a bottom. We are still in a pattern of lower highs and lower lows. If it starts making a higher low and higher high, then we should look at it. No technical evidence that the bottom is in yet.

This has demographics on its side. Focus is on doctors and medical office buildings. Building a nice portfolio of property. Has been pounded and yet cash flow is fully covered. Doesn’t think there is going to be massive growth on any REIT but thinks this one is a “valuation mismatch”. Yield of 7.87%. Could be a takeover candidate if it remains at these levels.