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

Question for folks who know more than I

[ForcedHysteria]

Even with the flailing SP, from my understanding, this news doesnt change that rent is being paid on the buildings it owns right? 

Like if the stock price dropped to 3 dollars tomarrow, the rent price doesnt drop, its occupancy doesnt plummet and the actual dollar sum values are still there right? Its just on paper, the div payout will be like 25%

Wouldnt the continued increase on variable interest debt be more of an issue for them to continue paying the dividend vs their SP goes down (or alternatively up?)

Like the stock price going down, it doesnt impact their actual dollar input value - but when i read a lot of the comments on this board, there is more of a "SP to payout ratio" being preformed vs " variable debt to payout ratio" 

Am i missing something on this that i should be taking into account? Like i dont have too much of a worry here because they rents are being paid and with everyone interest rates suck so I feel like i am missing something that is important for the micro environment going on here?

Help a fella out

[SNAKEYBOY]

SP is irrelevant to the company's operations and  balance sheet you are right.   But the SP will react to a dividend cut and debt not being paid off

[ForcedHysteria]

So really its a knee jerk reaction then? (If i understood correctly). There is no logical reason to reduce it if the numbers arent lying? 

[SNAKEYBOY]

I dont think its news worth selling unless you think it is an excuse for a fat dividend cut....however it is bearish as they had this UK joint venture has the centerpoint of their non-core dispositions to improve balance sheet.   They need to accelerate the effort to resell it to some other buyer or find other assets to sell sooner rather than later.

[DanielDarden]

First, do not assume that I am more knowledgeable. The market has a way of making most people humble! While most here are fretting about the pr, I am not concerned. An asset light model is always preferred from a debt perspective, however, if one is a long term investor then most CO’s. can use debt effectively to enhance returns. Short term there may be pain, but longer term this will likely

[SNAKEYBOY]

DD, its not the end of the world, but like I said, bringing that AFFO up was contigent on those proceeds paying 8%+ debt.   Without that the payout ratio is over 100% and now the question is do they run it elevated awhile longer or cut

[goldens]

I think there will be more on this from the company in the near term. Short Term negative but not the end of the world.

[BlueJay2020]

Agreed - it certainly doesn't help the narrative which drives sentiment.  It's the same with a very high dividend yield.  This is a tough environment to be delivering both surprising and bad news. It begs the question, what (if anything) does the institutional investor see thst I don't? It could be stuff unrelated directly to the transaction- who knows? i am very happy

[SNAKEYBOY]

The issue isnt that the UK investor walked away, maybe a little.  They can probably find another buyer or take a haircut if needed. Its more so their deleveraging plans just go thrown out the window and thus their 2023 agenda to improve AFFO and run a NCIB with excess funds.