Motley Fool's Karen Thomas posted this today re: NWH.UN Here are the key reasons investors should own this stock:
Meaningful growth in 2017
Last year was a year of transformation for NorthWest, with a 40% increase in its asset base to $5 billion, $330 million in equity financing, $872 million in acquisitions, $103 million in development, and $200 million in dispositions.
All this is accompanied by a 6% increase in adjusted cash flow and a 2.9% increase in net asset value (NAV).
High-yield, attractive payout ratio
Currently yielding a very attractive 7.2%, NorthWest has a high-quality, diversified portfolio of healthcare real estate properties located throughout Canada, Brazil, Germany, Australia, and New Zealand, offering investors exposure to this growing market.
The payout ratio stands at 86%, signaling the company’s ability to handle this dividend payment.
Low-risk, steady growth
With more than half of net operating income coming from healthcare infrastructure properties, mostly hospitals, the company’s portfolio consists mostly of long-term inflation indexed leases.
The current company-wide occupancy is 96%, and the average lease term is 13 years.
The company’s hospital portfolio is especially attractive, with inflation-indexed rent, lease contracts of more than 20 years, and limited capital requirements on the part of the REIT.
Meaningful growth expected in the next 12 months
With interests in more than 13 development projects, and a focus on deleveraging the balance sheet, NorthWest is looking at significant value creation over the next few years.
Over the next 12 months, we will see the completion of numerous significant development projects, which will drive meaningful NAV growth.
The current NAV is $12. The stock trades below this at $11.09.