Analysts update RBC’s Pammi Bir cut his Northwest Healthcare Properties REIT (NWH.UN-T) target by $1 to $8, below the $8.50 average, with a “sector perform” rating.
“From our lens, NWH’s portfolio is not the problem,” said Mr. Bir. “The assets are in good form and putting up healthy organic growth. Yet, the right side of the balance sheet requires some heavy lifting, particularly with the recent setback in the UK JV. As a result, our earnings forecasts have taken a sizeable hit, putting further stress on the payout ratio. We see the strategic review as a step forward to bridging the gap to the underlying value of its assets. Yet, with timing and outcomes uncertain, we continue to watch from the sidelines.”