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

NBF: May present entry point

[Tempo1]

Excess weakness may present opportune entry point for value oriented/turnaround investors.

While this development is a surprise, we do not think NWH would make such an announcement without having conviction the turnaround is on a path to success. A certain quantum of asset sales needed to restore the balance sheet appears all the more likely, and the search for a successor could signal they are on a path to being completed at an expedited pace. We have identified before that there are multiple geographies poised for sale as the REIT looks to delever and refocus its efforts on North America. As measured at our NAV estimate, we estimate potential realizable disposition net proceeds could represent $5.04/u of value that might be realized over the plan's near-term horizon. This consists of approximately half of its US portfolio ($0.35/u), Brazil ($2.15/u), Europe ($1.03/u) and Australasia ($1.50/u, excluding a withholding tax assumption) and does not ascribe any value to its asset management fee stream ($1.10/u). Making whole our $7.40 NAV/u estimate would therefore be all of Canada, half of its US Portfolio, NWC/ Other assets, and lastly its Assura units.