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

No distribution raise in 9 years?

[PaulKing]

Good afternoon! I am considering a position in this, but am concerned with the fact there has been no increase in the distribution since inception. Are there any arguments or details I am missing that might sway me to purchase?   I appreciate the input!

[claritas]

It is already paying out 94% of distributable cash, so it can't pay out what it is not coming in. I think the Company is focusing on growing the company (and its cash flow) and thus there lies the thesis for considering this company.

[PaulKing]

Thanks for the comment. I am afraid though, that this argument is going to stop me from jumping in. It would seem that they grow by aquisitions, funded by issuing stock, but are not able to get a good enough deal to net better than the 6.2 % they are paying now. That doesn't speak well for management. What is the point of growth if it does not get more return? I always think that for a company

[SNAKEYBOY]

NWH you buy because of the safety of the healthcare sector and enjoy the 6% yield like a GIC.  It's not a growth stock and will probably trade beween $12.50 and $14.00

[Capharnaum]

The CEO doesn't have a base salary or share plan. He also owns for 27.3M shares. He does participate in management performance bonus program from which he received money in 2019 (but didn't receive anything in 2017 and 2018). While they have kept the payout and dividend similar from 2017 to 2020, NWH has reduced significantly its leverage over the years. They have also moved their

[PaulKing]

Well, a couple of facts were mis-represented in your comments. I just spent time looking on SEDAR, and correct as follows: 1) In April of 2010, they paid a distribution of $.08. In May, it was reduced to $.07, and has been that amount for the past 11 years... and still is. It was never higher than that, and has not changed in all that time. 2) In the Nov. 17 2020 "Management Information

[SNAKEYBOY]

Well if you bought NWH and your average price is $11-12ish, you have a 10% capital gain and 7% dividend collected for life.  Don't need to buy a REIT for dividend increases, especially if NAV/unit goes up

[Capharnaum]

I only talked about 2017-2020 but you're right, back at some point in the past, they've reduced the dividend. As to the CEO (Dalla Lana), I missed the part in the last management circular about receiving a salary going forward but mentionned his $6.7M award. That being said, since he owns 27.3M shares, he already gets $21.8M per year from dividends, so the salary is a pittance in

[PaulKing]

1) To be clear, they reduced the dividend from $.08 to $.07 after only 1 month of existence in 2010. 2) I am all for growth, but for a REIT it absoulutely has to result in more dollars in the shareholders pockets. I do not ever buy a REIT for the potential of share price increase. I buy it for distributions, and ideally from distributions that are increasing at least at some minimal level

[pjn0987654321]

The usual explanation is that the first "month" of a company's existence may be 5 or 6 weeks, if the company didn't come into being on the 1st of a month.  Hence, the first payment would be for 5 or 6 weeks and subsequent payments being for the approximate 4 weeks of a month.