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

Like I said before

[SNAKEYBOY]

The cap rate used to determine their NAV is 5%....that would be ok if they had 5 year mortgages at 3-4%.  With huge floating debt thats over 7% and maybe as high as 10%, the properties need to go.  Its not ideal circumstance given they have management fees and want a big footprint in the space, but it needs to be done.  Or else the business  model falls apart.

[DanielDarden]

You were wrong then, and you are wrong again! Selling low is a desperate act when you don’t have viable options. That is not the case here. NOI is not declining indicating that rent levels and occupancy are both stable. All cos. have problems and issues to deal with. The solutions determine their success.  Snake, we all need to rest our devices and relax. Posting constantly is likely adding

[SNAKEYBOY]

How expensive is their floating debt? If you have 100m invested in a property that is giving you a 5% return but can sell that property for 100m and pay down debt of 9% is it not the prudent move?

[DanielDarden]

Snake: Respectfully, you have changed your thesis from your original post. You were advocating for indiscriminate disposal of property because the model was broken. You are afflicted with present day bias without realizing that over the long term variable rate financings are the most cost effective. For more on that concept (PDB), refer to my recent post at KMP. It highlights the pitfalls and

[SNAKEYBOY]

No, I did not imply selling everything at a fire sale, by with rates as high as they are the FFO/AFFO  is taking a bit hit and has consequences. Therefore selling properties to pay off high debt needs to be done- ASAP!! There is a reason this stock lost 60% in 1 year and its exactly what I described.