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

• Market Cap: $1.20B
• Dividend Yield: 7.47%
• Average Volume (3M): 551.55K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.33
• Revenue Growth: -15.23%
• EPS Growth: 73.12%
• Country: CA
• Employees: 213
• Sector: Real Estate
• Sector Strength: 50
• Industry: REIT - Healthcare Facilities
• EPS (TTM): 0.10
• Shares Outstanding: 248,976,840
• 10 Day Avg. Volume: 527,813
• 30 Day Avg. Volume: 551,553
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 4.21
• Enterprise Value/Revenue: 11.64
• Enterprise Value/Gross Profit: 15.42
• Enterprise Value/Ebitda: 469.31
• 1Y Price Target: $5.25
• Price Target Upside: 8.37% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2

• Rating: 56 Neutral
• Price Target: C$5.00 ▲(3.31% Upside)

NorthWest Healthcare Properties REIT's overall score reflects strong corporate events and a stable financial position, offset by high leverage and negative profitability. The attractive dividend yield provides some valuation support, but technical indicators suggest a lack of strong momentum. Investors should be cautious of the risks associated with high debt levels and inconsistent revenue growth.

Positive Factors

Capital Management

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

Company Stability

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

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 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 leasing its healthcare properties to a variety of tenants, including hospitals, clinics, and other healthcare service providers. The company typically enters into long-term lease agreements, which provide a stable and predictable income stream. Key revenue streams include rental income from these leases, as well as potential revenue generated from property management services. Additionally, the REIT may engage in development projects or property acquisitions that can enhance its portfolio and increase overall earnings. Strategic partnerships with healthcare operators and service providers further bolster its revenue potential, allowing the company to capitalize on the growing demand for healthcare services.

NorthWest Healthcare Properties REIT Financial Statement Overview

Summary

NorthWest Healthcare Properties REIT shows strong gross profitability and stable cash flows. However, challenges include net losses, high leverage, and inconsistent revenue growth. The financial health is strained by significant debt and negative profitability metrics.

Income Statement

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

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

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	433.93M	462.40M	508.00M	448.83M	374.61M	373.82M
Gross Profit	327.63M	349.41M	386.62M	348.35M	306.06M	297.46M
EBITDA	10.77M	-168.34M	-263.91M	359.82M	358.40M	393.93M
Net Income	-253.01M	-299.76M	-347.69M	125.63M	611.84M	314.36M
Balance Sheet
Total Assets	6.14B	6.05B	7.63B	8.51B	7.06B	5.85B
Cash, Cash Equivalents and Short-Term Investments	70.60M	51.25M	72.03M	87.99M	62.70M	144.11M
Total Debt	3.07B	3.01B	3.92B	3.68B	2.94B	2.79B
Total Liabilities	3.54B	3.47B	4.54B	4.77B	3.54B	3.31B
Stockholders Equity	1.59B	1.56B	1.99B	2.46B	2.39B	1.64B
Cash Flow
Free Cash Flow	94.91M	85.76M	104.67M	223.56M	124.48M	188.53M
Operating Cash Flow	96.37M	86.64M	104.77M	224.18M	124.97M	188.77M
Investing Cash Flow	426.32M	540.08M	194.27M	-1.36B	-914.83M	-628.53M
Financing Cash Flow	-533.67M	-650.57M	-318.50M	1.18B	711.19M	397.61M

NorthWest Healthcare Properties REIT Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4.84
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 4.84 is above the 20-day moving average (MA) of 4.81, below the 50-day MA of 4.89, and above the 200-day MA of 4.69, indicating a neutral trend. The MACD of -0.02 indicates Negative momentum. The RSI at 51.20 is Neutral, neither overbought nor oversold. The STOCH value of 68.63 is Neutral, 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
CSH.UN	71 Outperform	C$5.38B	92.68	4.59%	3.30%	25.79%	-65.80%
KMP.UN	70 Outperform	C$2.12B	3.78	19.03%	4.03%	5.82%	83.08%
MRG.UN	68 Neutral	C$942.25M	10.05	4.86%	4.18%	3.93%	-29.40%
MI.UN	68 Neutral	C$496.12M	7.12	5.89%	3.86%	-0.69%	―
IIP.UN	65 Neutral	C$1.85B	―	-7.49%	2.96%	1.56%	-9446.15%
Sector *	63 Neutral	$6.81B	13.13	-1.00%	7.18%	3.62%	-22.63%
NWH.UN	56 Neutral	$1.20B	―	-6.30%	7.47%	-15.23%	73.12%

NorthWest Healthcare Properties REIT Corporate Events

Northwest Healthcare Properties REIT Announces August 2025 Distribution and DRIP Suspension

Northwest Healthcare Properties REIT announced a distribution of $0.03 per unit for August 2025, payable on September 15, 2025, with a distribution reinvestment plan (DRIP) offering bonus trust units. However, starting with the September distribution, the DRIP will be suspended, and unitholders will receive cash payments, reflecting a strategic shift in the company’s distribution approach.

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 Reports Q2 2025 Results and Strategic Updates

Northwest Healthcare Properties REIT reported its second-quarter 2025 results, highlighting a suspension of its distribution reinvestment plan and the appointment of Zachary Vaughan to the Board of Trustees. The company demonstrated strong operational performance with improved adjusted funds from operations and a lower payout ratio. Despite a decrease in revenue due to asset dispositions, the REIT achieved a net income of $32.6 million, driven by reduced interest expenses and fair value gains on investment properties. The REIT’s strategic focus on disciplined capital allocation and asset management aims to reduce debt and pursue growth opportunities, maintaining a stable lease maturity profile and high occupancy rates.

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 Schedules Q2 2025 Financial Results Release

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.

Northwest Healthcare Properties REIT Appoints New CEO Zachary Vaughan

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.

Northwest Healthcare Properties REIT Declares June 2025 Distribution

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.

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.