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

Not buying just now

[hawk35]

Owned it in the past but currently not holding this one.  I'm not buying for now because:
 - Everyone can feel a divi cut is coming
 - Debt is too high and there is doubt that the company can find new JV partners at an acceptable
   price to reduce leverage.
 - Interest rates were supposed to have peaked but now they are rising again including Britain where
   they had a surprise .5% increase.  Inflation was better today but most analysts expect another
   round of rate hikes.  Payout ratio for NWH will likely rise in the short to medium term.
 - Interest rates will be higher for longer unless there is a serious recession.

I'm thinking the SP is not going anywhere for a while.

[SNAKEYBOY]

This is going to the moon if/when management gets its sh!t together.  

[BrainNugget]

I keep hearing JVs is the cure all but I think divesting those US medical offices would be preferable, vacancy rates are up in the teens in certain markets. If they do that I might be tempted to step back in but then I am afraid this management may be back to reckless empire building once they see a  wee bit of daylight on the balance sheet.

[pjn0987654321]

"vacancy rates are up in the teens in certain markets." From the last press release  "Operationally, the REIT's high quality and defensive portfolio remains in excellent shape with in-place occupancy of 97% underpinned by a weighted average lease expiry of 13.6 years and 82.6% of leases with annual rent indexation which contributed to 4.4% same-property NOI growth, on a

[BrainNugget]

97% lol .... their canadian office properties are nowhere near that % [url=https://https://www.nwhleasing.com/search-medical-offices-for-lease/?fwp_paged=2][/url] their US office are quite possibly faring even worse.  I think they came up with 97% when adding their hospitals, clinics and labs all at 100%

[pjn0987654321]

The 97% applies to their "portfolio".  That would be everything, including offices. 

[BrainNugget]

thats what I figure. medical office properties likely never reach 97% even at the best of times

[pjn0987654321]

i couldn't get your link to work but I browsed https://www.nwhleasing.com/search-medical-offices-for-lease/ and clicked on various buildings this one https://www.nwhleasing.com/properties/bathurst-health-centre/ has " 0 Spaces For Lease 13 Tenants + 17 Physicians 29,600 Square feet" and on the main page, they say " + 1,500 Number of Tenants 58 Medical Office