NorthWest Healthcare Properties Real Estate Investment Trust (NWH REIT) STOCK TSX PRICE, DIVIDEND INVESTING

Jun 03, 2024
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BY LEROY A BROWN

NorthWest Healthcare Properties Real Estate Investment Trust (REIT) is a prominent international owner and operator of healthcare real estate properties and infrastructure in Europe—Germany, the Netherlands, and the United Kingdom (U.K.); the Americas—Canada, the United States (U.S.), and Brazil; and Australasia—Australia and New Zealand. 

The NorthWest Healthcare Properties REIT's portfolio has various assets, such as clinics, hospitals, and medical offices.

NorthWest Healthcare Properties REIT is an unincorporated, open-ended REIT established under the laws of the Province of Ontario, Canada.

 

DIVIDEND AND PRICE

On May 15, 2024, the Trustees of the NorthWest Healthcare Properties Real Estate Investment Trust (REIT) reaffirmed their commitment to investors by declaring a stable distribution of $0.03 per unit for the month of May, representing an annualized $0.36 per unit.

The distribution is scheduled to be paid on June 14, 2024, to unitholders of record as of May 31, 2024.

Forward annual dividend and yield is $0.36 (7.20%).

On May 30, 2024, the NorthWest Healthcare Properties REIT, NWH-UN.TO closed at $5.06 on the Toronto Stock Exchange (TSX).

 

FINANCIAL

For the fourth (4th) quarter, revenue grew by over four percent (>4%) year over year and by over twelve percent (>12%) when compared to 2022.

Same-property net operating income (SPNOI) grew by over 3.9% in the fourth (4th) quarter.

The three (3) months ended March 31, 2024; the first quarter (Q1 2024) saw revenue from investment properties of over $133 million, which was lower than the same period last year.

This decline in revenue from investment properties resulted from contractual and rental increases caused by inflation affecting asset sales. However, NorthWest Healthcare Properties REIT has implemented strategies to mitigate the impact of inflation on its operations, such as long-term lease agreements.

Same-property net operating income (SPNOI) was over $88 million, an increase of over 5.9% in Q1 2024 compared to Q1 2023.

In Q1 2024, the net loss decreased to over $38 million from just over $89 million in Q1 2023. This decrease was primarily due to fair value adjustments, which are non-cash items that do not affect the REIT’s operational performance. Therefore, the REITs operational performance is strong and should continue to improve in the future.

 

IS THE NorthWest Healthcare Properties REIT A GOOD INVESTMENT?

NorthWest Healthcare Properties REIT has had high occupancy and rent collection rates. This is primarily due to the essential nature of its healthcare properties, which continue to be in high demand, and its long-term lease agreements with reputable healthcare providers.

NorthWest Healthcare Properties REIT's global portfolio occupancy rate was over ninety-six percent (>96%), and rent collection was over ninety-eight percent (>98%).

NorthWest Healthcare Properties REIT tenants have an average lease of over thirteen (>13) years.

The NorthWest Healthcare Properties REIT has demonstrated its financial prudence by selling its non-core assets, reducing its debt, and successfully refinancing at lower interest rates and debt payments, ensuring its long-term financial stability.

For the first quarter of 2024 (Q1 2024), NorthWest Healthcare Properties REIT performed well operationally, and its net loss has decreased compared to the first quarter of 2023 (Q1 2023).

As the demand for healthcare services continues to rise, especially with a significant part of the global population aging, the NorthWest Healthcare Properties REIT is well-positioned to meet these needs and continue its growth trajectory.

The NorthWest Healthcare Properties REIT has a distribution reinvestment plan (DRIP) where eligible unitholders can reinvest their cash distributions to buy more Trust Units. This option allows investors to increase their holdings in the REIT without incurring additional transaction costs, potentially enhancing their long-term investment returns.

Additionally, the NorthWest Healthcare Properties REIT’s distribution reinvestment plan (DRIP) offers bonus Trust Units equal to three percent (3%) of cash distributions.

So, is this stock a good investment?

Overall, it may be a good investment for the long term.

 

Questions you may have:

 

Is nwh un a sell, or is NorthWest Healthcare Properties REIT a good buy?

According to tipranks.com, on June 1, 2024, NorthWest Healthcare Properties REIT received six ratings—1 buy, 5 hold, and 0 sell—based on 6 Wall Street analysts giving 12-month price targets. This suggests that you may buy it. If you already have it, you should probably hold it and not sell it.

 

Does NWH UN stock pay dividends?

Yes, the NorthWest Healthcare Properties REIT stock pays dividends monthly currently.

 

What is the outlook for NorthWest Healthcare properties?

According to alphaspread.com, on June 1, 2024, the NorthWest Healthcare Properties REIT stock is viewed as undervalued and may increase in stock price.

 

Why is NWH UN falling?

According to stockchase.com, on June 1, 2024, the NorthWest Healthcare Properties REIT faces challenges such as debt payments, operating in different jurisdictions, etc.

 

Why not to buy REITs?

According to an article ‘Risks of Real Estate Investment Trusts (REITs)’ by Dan Moskowitz, updated May 21, 2024, on the investopedia.com website, some of the risks of investing in REITs are an increase in interest rates, which may make investors choose other investments; REITs may be in a sector not doing well; and the dividends received are taxed as ordinary income. It's important for potential investors to consider these risks before making an investment decision.

 

What is the world's largest healthcare REIT?

Welltower Inc. is the largest healthcare real estate investment trust (REIT). It trades on the New York Stock Exchange (NYSE) as “WELL."

Welltower Inc. is headquartered in Toledo, Ohio, and is the world’s largest healthcare REIT.

 

Who is the CEO of NWH REIT?

Craig Mitchell is the chief executive officer (CEO) of NWH REIT.

 

Is the NWH UN dividend safe?

With NWH UN having long-term tenants, high occupancy and collection rates, and being in healthcare, which is an essential service and an expanding sector, it is very likely that NWH UN can continue to offer dividends.

 

What REIT is owned by Buffett?

According to reports, Store Capital (STOR) and Seritage (SRG) are real estate investment trusts (REITs) that Warren Buffett has invested in through his company.

 

What is the biggest REIT in Canada?

According to statista.com, the Canadian Apartment Properties Real Estate Investment Trust (CAPREIT) was the largest REIT in Canada by market cap, with a market cap of over US$5 billion as of April 11, 2024.

The Canadian Apartment Properties Real Estate Investment Trust (CAPREIT) trades as “CAR” on the Toronto Stock Exchange (TSX).

 

What are the top 5 largest REITs?

According to companiesmarketcap.com, the top five (5) largest REITs by market cap are Prologis, American Tower, Equinix, Welltower, and Simon Property Group, all located in the United States of America (U.S.A.).

 

You may discover more at Leroy A. Brown  https://leroyabrown.ca/.

 

Leroy A Brown is an author, speaker, and consultant who helps clients increase, maintain, and grow their money while being healthy and mindful. You may follow Leroy A Brown on LinkedIn at https://ca.linkedin.com/in/leroy-a-brown-268ba850.