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Northwest Healthcare Properties (TSE:NWH.UN)
:NWH.UN
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NorthWest Healthcare Properties REIT (NWH.UN) AI Stock Analysis

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TSE:NWH.UN

NorthWest Healthcare Properties REIT

(OTC:NWH.UN)

Rating:54Neutral
Price Target:
C$5.00
▲(3.31%Upside)
The overall stock score reflects a challenging financial performance marked by high leverage and net losses, coupled with weak technical indicators. Despite a high dividend yield, valuation concerns persist due to negative profitability. Positive corporate events suggest potential for future improvement, but current conditions warrant caution.
Positive Factors
Capital Management
NWH completed the divestment of its stake in Assura for ~$210M, indicating successful capital recycling efforts.
Financial Performance
Constant currency SP-NOI growth was +4.5%, with positive contributions observed across all segments.
Operational Improvements
Initiatives undertaken over the past 18 months have introduced greater stability, improved the capital structure, and reduced NWH's risk profile.
Negative Factors
Healthscope Concerns
Concerns over Healthscope continue to linger, with the REIT providing a second consecutive partial rent deferral.
Management Uncertainty
Lingering uncertainty on the CEO search and rent deferral issues will likely keep a lid on relative performance.
Recapitalization Process
HSO has entered a lender-controlled recapitalization/sale process, which will likely take several quarters to play out.

NorthWest Healthcare Properties REIT (NWH.UN) vs. iShares MSCI Canada ETF (EWC)

NorthWest Healthcare Properties REIT Business Overview & Revenue Model

Company DescriptionNorthWest Healthcare Properties REIT (NWH.UN) is a real estate investment trust that specializes in owning, managing, and developing healthcare real estate properties. The company operates across various global markets, focusing on medical office buildings, hospitals, and other healthcare facilities. NorthWest Healthcare Properties REIT is committed to providing high-quality real estate solutions that support healthcare delivery and operations, making it a key player in the healthcare real estate sector.
How the Company Makes MoneyNorthWest Healthcare Properties REIT generates revenue primarily through leasing its properties to healthcare operators, including hospitals, clinics, and medical office tenants. The company's revenue model relies on long-term lease agreements that provide stable and predictable income streams. Additionally, the REIT engages in strategic acquisitions and developments to expand its property portfolio, enhancing its asset base and potential earnings. Key partnerships with healthcare providers and operators contribute to occupancy stability and tenant demand, ensuring consistent cash flow. The company may also benefit from property appreciation and capital recycling, which involves selling underperforming assets and reinvesting in higher-yielding opportunities.

NorthWest Healthcare Properties REIT Earnings Call Summary

Earnings Call Date:May 14, 2025
(Q3-2024)
|
% Change Since: 3.82%|
Next Earnings Date:Aug 12, 2025
Earnings Call Sentiment Neutral
The earnings call highlights strong operational performance and strategic debt reduction efforts, although revenue has decreased due to asset disposals. The company has made significant strides in improving efficiency and maintaining high occupancy and rent collection rates. However, financial metrics such as FFO per unit have declined, and the payout ratio remains high.
Q3-2024 Updates
Positive Updates
Strong Portfolio Performance
Same-property net operating income increased by 5% compared to the same period last year. Portfolio occupancy is at 96% with a weighted average lease expiry of 13.4 years.
Successful Asset Disposition
Completed the sale of the U.K. portfolio for $885 million, significantly reducing debt and aligning with strategic objectives.
Debt Reduction Achievements
Addressed over 80% of 2025 debt maturities, reducing total debt by $1.1 billion since Q2 2024.
Operational Efficiency Improvements
Reduced workforce by 16%, leading to expected annual cash savings of approximately $6.5 million.
High Rent Collection Rate
Global rent collection rate at September 30, 2024, was nearly 99%.
Negative Updates
Decrease in Revenue
Q3 revenue from investment properties decreased by 12% over the prior year due to disposition of noncore properties.
FFO Per Unit Decrease
Q3 2024 FFO per unit was $0.11, down from $0.14 per unit in Q3 2023.
High Payout Ratio
Q3 2024 AFFO per unit was $0.09 per unit, representing a high payout ratio of 99%.
Company Guidance
During the Northwest Healthcare Properties REIT Q3 2024 earnings call, the company reported several key metrics demonstrating its financial performance and strategic advancements. The REIT achieved an industry-leading portfolio occupancy rate of 96%, underpinned by a weighted average lease expiry (WALE) of 13.4 years, with over 86% of leases subject to rent indexation. Same-property net operating income increased by 5% year-over-year to $70.7 million. The REIT's global rent collection rate stood at nearly 99%, and it executed 369,000 square feet of leasing deals with an 88% retention rate. The completion of the U.K. portfolio sale generated $885 million in gross proceeds, significantly aiding in debt reduction, which saw proportionate debt decrease from $3.6 billion to $2.7 billion, reducing leverage by 160 basis points to 57.3%. Despite a 12% year-over-year drop in Q3 revenue from investment properties due to dispositions, the REIT reported an FFO per unit of $0.11, maintaining an AFFO per unit at $0.09, reflecting a payout ratio of 99%. General and administrative expenses were reduced by $2.1 million, contributing to operational efficiency, with a strategic workforce reduction expected to yield annualized savings of $6.5 million.

NorthWest Healthcare Properties REIT Financial Statement Overview

Summary
NorthWest Healthcare Properties REIT shows strong gross profitability but faces challenges with net losses and high leverage. Revenue growth is inconsistent, and the equity ratio is low, indicating a heavy reliance on debt. Cash flows are stable but impacted by operational losses.
Income Statement
55
Neutral
NorthWest Healthcare Properties REIT shows a mixed performance in its income statement. The TTM (Trailing-Twelve-Months) gross profit margin is robust at 75.51%, indicating strong profitability at the gross level. However, the net profit margin is negative, driven by significant net losses, suggesting challenges in managing operating and non-operating expenses. Revenue growth is inconsistent, with a decline observed in recent periods. The EBIT margin remains strong, yet EBITDA margins have been volatile, reflecting potential issues with depreciation and amortization costs.
Balance Sheet
60
Neutral
The balance sheet reveals a stable equity position with a debt-to-equity ratio of 1.93, indicating a moderate level of leverage typical for the REIT industry. The equity ratio is 25.94%, which is relatively low, suggesting a heavy reliance on debt financing. Return on equity is negative due to net losses, which is a concern for potential investors. Overall, the balance sheet shows stability but carries a risk due to high debt levels.
Cash Flow
65
Positive
Cash flow analysis indicates a reasonable operating cash flow to net income ratio of -0.38, highlighting a capacity to generate cash despite net losses. Free cash flow remains positive, although the free cash flow growth rate is erratic, reflecting fluctuating capital expenditures and cash management strategies. The free cash flow to net income ratio is -0.38, signifying cash generation efficiency issues. Overall, cash flow is stable but impacted by operational losses.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue462.40M508.00M448.83M374.61M373.82M
Gross Profit349.41M386.62M348.35M306.06M297.46M
EBITDA-168.34M-263.91M359.82M358.40M393.93M
Net Income-299.76M-347.69M125.63M611.84M314.36M
Balance Sheet
Total Assets6.05B7.63B8.51B7.06B5.85B
Cash, Cash Equivalents and Short-Term Investments51.25M72.03M87.99M62.70M144.11M
Total Debt3.01B3.92B3.68B2.94B2.79B
Total Liabilities3.47B4.54B4.77B3.54B3.31B
Stockholders Equity1.56B1.99B2.46B2.39B1.64B
Cash Flow
Free Cash Flow85.76M104.67M223.56M124.48M188.53M
Operating Cash Flow86.64M104.77M224.18M124.97M188.77M
Investing Cash Flow540.08M194.27M-1.36B-914.83M-628.53M
Financing Cash Flow-650.57M-318.50M1.18B711.19M397.61M

NorthWest Healthcare Properties REIT Technical Analysis

Technical Analysis Sentiment
Negative
Last Price4.84
Price Trends
50DMA
4.89
Negative
100DMA
4.84
Negative
200DMA
4.74
Positive
Market Momentum
MACD
-0.01
Positive
RSI
38.74
Neutral
STOCH
3.57
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:NWH.UN, the sentiment is Negative. The current price of 4.84 is below the 20-day moving average (MA) of 4.96, below the 50-day MA of 4.89, and above the 200-day MA of 4.74, indicating a neutral trend. The MACD of -0.01 indicates Positive momentum. The RSI at 38.74 is Neutral, neither overbought nor oversold. The STOCH value of 3.57 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:NWH.UN.

NorthWest Healthcare Properties REIT Peers Comparison

Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
75
Outperform
C$2.28B3.5722.26%3.77%5.77%108.23%
75
Outperform
C$947.95M8.555.83%4.15%3.85%-31.81%
71
Outperform
C$530.42M5.989.03%3.58%-0.29%
70
Outperform
C$5.16B85.265.86%3.52%20.03%-63.03%
70
Outperform
C$1.86B-7.00%2.93%2.52%-573.45%
59
Neutral
C$1.27B-2.56-8.19%4.91%10.84%-18.98%
54
Neutral
C$1.21B-14.74%7.44%-11.49%15.58%
* Real Estate Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:NWH.UN
NorthWest Healthcare Properties REIT
4.84
0.05
1.06%
TSE:KMP.UN
Killam Apartment REIT Un
18.91
0.60
3.28%
TSE:MRG.UN
Morguard NA REIT UN
18.15
1.88
11.56%
TSE:IIP.UN
InterRent REIT Un
13.32
0.92
7.42%
TSE:MI.UN
Minto Apartment Real Estate Investment Trust
14.38
-1.05
-6.80%
TSE:CSH.UN
Chartwell Retirement Residences
17.41
4.32
33.00%

NorthWest Healthcare Properties REIT Corporate Events

Financial Disclosures
Northwest Healthcare Properties REIT Schedules Q2 2025 Financial Results Release
Neutral
Jul 9, 2025

Northwest Healthcare Properties REIT announced it will release its financial results for the second quarter of 2025 on August 12, after market close, with a conference call scheduled for the following day. This announcement is part of Northwest’s ongoing communication strategy to keep stakeholders informed about its financial performance, which could impact investor confidence and market positioning.

The most recent analyst rating on ($TSE:NWH.UN) stock is a Hold with a C$5.50 price target. To see the full list of analyst forecasts on NorthWest Healthcare Properties REIT stock, see the TSE:NWH.UN Stock Forecast page.

Executive/Board Changes
Northwest Healthcare Properties REIT Appoints New CEO Zachary Vaughan
Positive
Jun 16, 2025

Northwest Healthcare Properties REIT has announced the appointment of Zachary Vaughan as its new Chief Executive Officer, effective July 2, 2025, following the retirement of Craig Mitchell. Vaughan brings extensive international real estate experience and a proven track record in strategic roles, which is expected to guide Northwest into a new chapter of growth and value creation for investors.

The most recent analyst rating on ($TSE:NWH.UN) stock is a Hold with a C$5.50 price target. To see the full list of analyst forecasts on NorthWest Healthcare Properties REIT stock, see the TSE:NWH.UN Stock Forecast page.

Dividends
Northwest Healthcare Properties REIT Declares June 2025 Distribution
Positive
Jun 13, 2025

Northwest Healthcare Properties REIT announced a distribution of $0.03 per unit for June 2025, payable on July 15, 2025, with an annualized distribution of $0.36 per unit. The REIT offers a distribution reinvestment plan allowing unitholders to reinvest cash distributions into Trust Units and receive bonus units, enhancing shareholder value and potentially increasing investment returns.

The most recent analyst rating on ($TSE:NWH.UN) stock is a Hold with a C$5.50 price target. To see the full list of analyst forecasts on NorthWest Healthcare Properties REIT stock, see the TSE:NWH.UN Stock Forecast page.

Executive/Board ChangesShareholder MeetingsBusiness Operations and Strategy
Northwest Healthcare REIT Announces Leadership Changes and Strategic Committee Formation
Positive
May 27, 2025

Northwest Healthcare Properties REIT announced significant changes following its 2025 annual meeting, including the election of trustees, appointment of Robert Julien as the new Chair of the Board, and the formation of an Investment Committee chaired by Graham Garner. These strategic moves aim to enhance governance and refocus leadership, building on the foundation laid by outgoing Chair Dale Klein. The changes are expected to strengthen Northwest’s position in the healthcare real estate market, providing a robust platform for long-term success.

The most recent analyst rating on ($TSE:NWH.UN) stock is a Hold with a C$5.50 price target. To see the full list of analyst forecasts on NorthWest Healthcare Properties REIT stock, see the TSE:NWH.UN Stock Forecast page.

Private Placements and FinancingLegal ProceedingsBusiness Operations and Strategy
Northwest Healthcare REIT Updates on Healthscope Receivership
Neutral
May 26, 2025

Northwest Healthcare Properties REIT has provided an update regarding Healthscope, its second-largest tenant, whose parent entities have entered receivership. Despite this, Healthscope’s operational business remains unaffected, with management continuing to focus on patient care. McGrathNicol Restructuring has been appointed to facilitate an orderly sale of Healthscope, supported by a $100 million funding package from the Commonwealth Bank of Australia. Northwest intends to collaborate with McGrathNicol and potential bidders during the sale process, with all current rent obligations from Healthscope being met.

The most recent analyst rating on ($TSE:NWH.UN) stock is a Hold with a C$5.50 price target. To see the full list of analyst forecasts on NorthWest Healthcare Properties REIT stock, see the TSE:NWH.UN Stock Forecast page.

DividendsBusiness Operations and Strategy
Northwest Healthcare Properties REIT Declares May 2025 Distribution
Positive
May 15, 2025

Northwest Healthcare Properties REIT has declared a distribution of $0.03 per unit for May 2025, equating to $0.36 per unit on an annualized basis, payable on June 13, 2025. The announcement reflects the company’s commitment to providing consistent returns to its unitholders, with the added benefit of a distribution reinvestment plan that offers bonus Trust Units. This move underscores Northwest’s stable financial performance and its strategic positioning in the healthcare real estate sector, potentially enhancing stakeholder value.

The most recent analyst rating on ($TSE:NWH.UN) stock is a Hold with a C$5.50 price target. To see the full list of analyst forecasts on NorthWest Healthcare Properties REIT stock, see the TSE:NWH.UN Stock Forecast page.

Business Operations and StrategyFinancial Disclosures
Northwest Healthcare Properties REIT Reports Strong Q1 2025 Results
Positive
May 14, 2025

Northwest Healthcare Properties REIT reported its first quarter 2025 results, highlighting significant progress in financial and operational metrics. The company successfully executed its capital recycling strategy with over $260 million in non-core asset sales, reduced its payout ratio, and improved its balance sheet through debt repayment and refinancing. Despite a decrease in revenue due to asset dispositions, the REIT achieved a 4.5% increase in same property net operating income and maintained a strong global portfolio occupancy rate of 96.5%. The REIT’s strategic actions have positioned it well for long-term value creation for its unitholders.

The most recent analyst rating on ($TSE:NWH.UN) stock is a Hold with a C$5.50 price target. To see the full list of analyst forecasts on NorthWest Healthcare Properties REIT stock, see the TSE:NWH.UN Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 26, 2025