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

• Market Cap: $1.23B
• Dividend Yield: 7.29%
• Average Volume (3M): 490.08K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.40
• Revenue Growth: -11.49%
• EPS Growth: 15.58%
• Country: CA
• Employees: 213
• Sector: Real Estate
• Sector Strength: 63
• Industry: REIT - Healthcare Facilities
• EPS (TTM): >-0.01
• Shares Outstanding: 248,698,170
• 10 Day Avg. Volume: 463,274
• 30 Day Avg. Volume: 490,079
• PEG Ratio: -0.22
• Price to Book (P/B): 0.92
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 10.08
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $5.26
• Price Target Upside: 5.87% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2

• Rating: 54 Neutral
• Price Target: C$5.00 ▲(0.60%Upside)

The overall stock score reflects financial challenges with negative profitability and high leverage, balanced by positive corporate events such as strategic asset sales and governance enhancements. Technical indicators show a neutral trend, while a high dividend yield supports the valuation.

Positive Factors

Capital Recycling

NWH completed the divestment of its stake in Assura for ~$210M, indicating successful capital recycling efforts.

Capital Structure

Initiatives undertaken over the past 18 months have introduced greater stability, improved the capital structure, and reduced NWH's risk profile.

Financial Performance

Constant currency SP-NOI growth was +4.5%, with positive contributions observed across all segments.

Negative Factors

CEO Search

Lingering uncertainty on the CEO search and rent deferral issues will likely keep a lid on relative performance.

Healthscope Concerns

Concerns over Healthscope continue to linger, with the REIT providing a second consecutive partial rent deferral.

Uncertainty

Lingering uncertainty on these two issues will likely keep a lid on relative performance, in our view.

NorthWest Healthcare Properties REIT Business Overview & Revenue Model

Company Description

NorthWest Healthcare Properties Real Estate Investment Trust (TSX: NWH.UN) (NorthWest) is an unincorporated, open-ended real estate investment trust established under the laws of the Province of Ontario. As at September 30, 2020, the REIT provides investors with access to a portfolio of high quality international healthcare real estate infrastructure comprised of interests in a diversified portfolio of 190 income-producing properties and 15.4 million square feet of gross leasable area located throughout major markets in Canada, Brazil, Europe, Australia and New Zealand. The REIT's portfolio of medical office buildings, clinics, and hospitals is characterized by long term indexed leases and stable occupancies. With a fully integrated and aligned senior management team, the REIT leverages over 200 professionals across nine offices in 5 countries to serve as a long-term real estate partner to leading healthcare operators.

How the Company Makes Money

NorthWest Healthcare Properties REIT generates revenue primarily through the leasing of its healthcare-focused real estate properties. The company's key revenue streams include rental income from long-term leases with healthcare operators such as hospitals, medical practitioners, and diagnostic centers. Additionally, NorthWest benefits from strategic partnerships and joint ventures that enhance its property portfolio and expand its market presence. The trust's income is further supported by contractual rent escalations, which provide a steady increase in rental income over time. The company's focus on acquiring high-quality properties in key international markets helps diversify its revenue and mitigate risks associated with any single geographic region.

NorthWest Healthcare Properties REIT Financial Statement Overview

Summary

NorthWest Healthcare Properties REIT faces financial challenges with declining revenue, negative profitability, and high leverage. The income statement indicates financial distress, the balance sheet shows heavy reliance on debt, and cash flow metrics reflect a decline, raising concerns about liquidity and profitability.

Income Statement

The income statement shows a declining trend in total revenue and negative net income over the recent years. Despite a decent gross profit margin of 75.6% in 2024, the net profit margin is negative, indicating the company is not profitable. The absence of EBIT in 2024 and negative EBITDA further highlight financial distress. Revenue has decreased by 8.97% from 2023 to 2024, exacerbating the challenges.

Balance Sheet

The balance sheet reveals a significant leverage with a debt-to-equity ratio of 1.93 in 2024, indicating high reliance on debt financing. The equity ratio stands at 25.8%, showing a moderate equity buffer. Return on equity is negative due to the net losses, pointing to inefficient use of shareholder funds. The overall financial position is stable but heavily leveraged.

Cash Flow

Cash flow analysis highlights a decrease in operating cash flow and free cash flow from 2023 to 2024. The operating cash flow to net income ratio is negative, suggesting cash flow is insufficient to cover net losses. The free cash flow to net income ratio is also negative, which is concerning. While free cash flow is positive, the decrease in cash flow metrics poses a challenge.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
462.40M	508.00M	448.83M	374.61M	373.82M
	Gross Profit
349.41M	386.62M	348.35M	306.06M	297.46M
	EBIT
306.38M	344.41M	358.42M	357.01M	392.35M
	EBITDA
-168.34M	-263.91M	359.82M	358.40M	393.93M
	Net Income Common Stockholders
-299.76M	-347.69M	125.63M	611.84M	314.36M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
51.25M	72.03M	87.99M	62.70M	144.11M
	Total Assets
6.05B	7.63B	8.51B	7.06B	5.85B
	Total Debt
3.01B	3.92B	3.68B	2.94B	2.79B
	Net Debt
2.96B	3.85B	3.59B	2.88B	2.64B
	Total Liabilities
3.47B	4.54B	4.77B	3.54B	3.31B
	Stockholders Equity
1.56B	1.99B	2.46B	2.39B	1.64B
Cash Flow		Free Cash Flow
85.76M	104.67M	223.56M	124.48M	188.53M
	Operating Cash Flow
86.64M	104.77M	224.18M	124.97M	188.77M
	Investing Cash Flow
540.08M	194.27M	-1.36B	-914.83M	-628.53M
	Financing Cash Flow
-650.57M	-318.50M	1.18B	711.19M	397.61M

NorthWest Healthcare Properties REIT Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4.97
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:NWH.UN, the sentiment is Positive. The current price of 4.97 is above the 20-day moving average (MA) of 4.79, above the 50-day MA of 4.80, and above the 200-day MA of 4.79, indicating a bullish trend. The MACD of 0.04 indicates Negative momentum. The RSI at 62.05 is Neutral, neither overbought nor oversold. The STOCH value of 82.79 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:NWH.UN.

NorthWest Healthcare Properties REIT Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
KMP.UN	81 Outperform	C$2.38B	3.71	22.26%	3.66%	5.77%	108.23%
MRG.UN	75 Outperform	C$982.87M	8.82	5.83%	4.10%	3.85%	-31.81%
CSH.UN	74 Outperform	C$5.11B	86.81	5.86%	3.41%	20.03%	-63.03%
MI.UN	71 Outperform	C$551.29M	6.05	9.03%	3.57%	-0.29%	―
IIP.UN	71 Outperform	C$1.91B	―	-7.00%	2.92%	2.52%	-573.45%
Sector *	61 Neutral	$2.86B	10.96	0.41%	6.08%	5.73%	-21.25%
NWH.UN	54 Neutral	$1.23B	―	-14.74%	7.29%	-11.49%	15.58%

NorthWest Healthcare Properties REIT Corporate Events

Northwest Healthcare REIT Announces Leadership Changes and Strategic Committee Formation

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.

Northwest Healthcare REIT Updates on Healthscope Receivership

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.

Northwest Healthcare Properties REIT Declares May 2025 Distribution

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.

Northwest Healthcare Properties REIT Reports Strong Q1 2025 Results

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.

Northwest Healthcare Properties REIT Declares April 2025 Distribution

Northwest Healthcare Properties REIT has announced a distribution of $0.03 per unit for April 2025, payable on May 15, 2025, to unitholders of record as of April 30, 2025. The company also offers a distribution reinvestment plan, allowing eligible unitholders to reinvest cash distributions and receive bonus Trust Units, enhancing stakeholder value and reinforcing its commitment to long-term growth and stability.

Northwest Healthcare REIT Completes Sale of Assura Stake

Northwest Healthcare Properties REIT has announced the sale of its remaining stake in Assura PLC, totaling 163.3 million shares, for approximately $139.3 million. This transaction marks the completion of the REIT’s UK portfolio disposition, generating total proceeds of about $917.3 million. The sale price reflects a gain of over 20% compared to the REIT’s December 2024 book value, and the proceeds will be used to repay debt and for general trust purposes. This strategic move allows Northwest to focus on its core markets and strengthen its financial position.

Northwest Healthcare Properties REIT to Announce Q1 2025 Financial Results

Northwest Healthcare Properties REIT announced it will release its first-quarter 2025 financial results on May 14, 2025, after market close, followed by a conference call on May 15, 2025. This announcement is part of the company’s ongoing commitment to transparency and communication with stakeholders, providing insights into its financial performance and strategic positioning in the healthcare real estate market.

Northwest Healthcare Properties REIT Sells 33% Stake in Assura PLC

Northwest Healthcare Properties REIT announced the sale of 33% of its interest in Assura PLC, amounting to 82 million shares, for approximately $70 million. This transaction, which represents a gain of over 20% compared to the REIT’s December 2024 book value, will be used to repay debt and for general trust purposes. Post-sale, Northwest will retain a 5% stake in Assura’s public float, reflecting a strategic move to optimize its financial structure while maintaining a significant investment in Assura.

Northwest Healthcare Properties REIT Declares March 2025 Distribution

Northwest Healthcare Properties REIT announced a distribution of $0.03 per unit for March 2025, equating to $0.36 annually, payable on April 15, 2025. The REIT offers a distribution reinvestment plan, allowing eligible unitholders to reinvest cash distributions and receive a 3% bonus in Trust Units, potentially enhancing stakeholder value and reinforcing its market position.