TSX:NWH.DB.G - Post by User
Post by
hawk35on Jun 21, 2023 3:04pm
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Post# 35507716
RBC Comments Today
RBC Comments Today
June 21, 2023
NorthWest Healthcare Properties
UK JV will no longer proceed
TSX: NWH.UN | CAD 7.69 | Sector Perform | Price Target CAD 9.00
Sentiment: Negative
Our view: NWH announced that the previously disclosed UK JV with an institutional investor will no longer proceed. The announcement comes as a surprise, considering the REIT announced two weeks ago that JV terms were finalized and conditions waived, with closing anticipated this month (see our June 8 comment). No further information was provided, although NWH noted that it will continue to source an alternative partner to recapitalize the UK portfolio. We expect more colour shortly, but in the near term, expect a negative reaction as leverage will remain temporarily elevated (58% at Q1/23; NWH had estimated net proceeds of $276MM from that portfolio vend in), along with potential downside to the near-term outlook for earnings (from higher cost debt) and NAV.