NorthWest Healthcare Properties Real Estate Invest 10 Convert Sub Debentures 31 March 2025 T.NWH.DB.G

Better than expected, but much work to be done

[baystreetlights]

Based on the way the stock was trading the past month, I was fully expecting a TNT.UN situation with a dividend cut and 30% crash. Reading over the conference call, I do feel more confident. They know they situation they are in and what they need to do to get out of it. The balance sheet is not in a good place, debt is too high and too much variable rate exposure. If they can execute on the asset sales and JVs this can be solved. The payout ratio is also too high, but management indicated AFFO will be rebound this year and he is planning to get AFFO to $1 in a few years. If management can truly execute on this, the stock is worth $12+. It's really all about execution at this point.

[claritas]

Any change in dividend would be announced around April 15, as the 15th is when they usually announce dividends.  I would not, at this point, expect a cut in the dividend.  The messaging in today's release sounded as if the debt situation is already being addressed.  I also further expect that interest rates will soon peak, if they have not already.  The only other concern