[favelle75]

Its a medical REIT, been following it for about 6 weeks. Bought a small position today at $11.05. Just interested to see if anyone else has been following it?

 

[HaroldCrump]

I have a small position in it, bought at $11.20 I think several months ago.
When you research it, please look carefully into its relationship with Northwest International Health Care REIT - MOB.UN.
As part of your research, you have to look at the impact on NWH's books earlier this year when MOB.UN transferred its entire portfolio to NWH.

 

[Echo]

I see really big things in North West's future - http://www.thestar.com/entertainmen...nye_reportedly_name_baby_girl_north_west.html

 

[andrewf]

I was wondering how long that would take .

 

[gibor365]

I like NWH.UN model...aging population and so on...
I check chart of NWH.UN vs CUF.UN and ZRE... they are very similar... Is Medical REITs "behaviour" somehow different from other REITs?

 

[Andrew]

I like NWH.UN model...aging population and so on...
I check chart of NWH.UN vs CUF.UN and ZRE... they are very similar... Is Medical REITs "behaviour" somehow different from other REITs?

My initial thought is doctors and medical labs are less risky tenants.

 

[gibor365]

My initial thought is doctors and medical labs are less risky tenants.

Why? Do you think that , for example, WMT or MCD or TGT are more risky tenants?!

 

[the-royal-mail]

Currently trading at nearly 52 week low of $10.03 in case anyone is interested in buying.

CUF.UN hasn't been doing that well lately either.

 

[Eclectic12]

Why?
Do you think that , for example, WMT or MCD or TGT are more risky tenants?!

Hmmm ... if one is sick, will one skip the doctor/medical lab or skip a big Mac or shopping trip?


Then too, most at work I've talked to have been underwhelmed with the TGT "bargains" so it's not looking like a
"open your doors, they will come" success story.


Cheers

 

[trophy_23]

Been watching it for a while. I picked some up a while back around 10.30.

 

[Killer Z]

Closed at $9.58, and currently pressed up against it's 52 week low ($9.55), which happens to also be it's lowest point since inception.

 

[Homerhomer]

Hmmm ... if one is sick, will one skip the doctor/medical lab or skip a big Mac or shopping trip?

I think it goes different way, people eat big mac and then get sick...... that's why I own both ;-)

However I don't think MCD and TGT is a fair comparison as far as quality of tenants is concerned, it should rather be compared to corner stores, small offices, fish and chips fast foods and so on, and the quality of medical tenants in comparison to those is much higher and much more stable. In addition medical actually may be more stable than large retail, if you loose one dr you probably still have 49 others in the building and only need to worry about 2%, you loose target and that may be 50% loss of the revenue from one location,

 

[2tire2work]

Bought some at 9.60 yesterday

 

[Andrew]

I own quite a bit of NWH. I was reading their latest annual information form on Sedar and this paragraph has me concerned.

Non-Competition Agreement
Pursuant to the Non-Competition Agreement, and subject to the exceptions set out below, Paul Dalla Lana, NW
Trust and/or any of its affiliates will not, during the period that is the longer of: (i) the period during which such
person owns, directly or indirectly, 10% or more of the securities of the REIT, calculated on a fully diluted basis;
and (ii) March 25, 2014, the date which is four years from completion of the IPO (the “Term”), individually or in
partnership or jointly or in conjunction with any person(s), directly or indirectly:

Translation - I am concerned that the founder who sold a large part of his stake in the company at the IPO (now only has a ~25% stake) now may be selling the rest of his position or directing his talents elsewhere.

 

[HaroldCrump]

What do you mean now only has a ~25% stake?
He's had ~ 25% stake for a long time now, via NW Trust
Go as far back as 2012 and NW Trust's stake varies around 23%, give or take.

 

[Andrew]

What do you mean now only has a ~25% stake?
He's had ~ 25% stake for a long time now, via NW Trust
Go as far back as 2012 and NW Trust's stake varies around 23%, give or take.

~25% stake post IPO. I am concerned that the recent drop in price of NWH may be because he has started to sell off that 25% stake.

 

[HaroldCrump]

You could be right.
Keep an eye out for insider selling reports.

Their last quarter results were not good, so that could be another reason for the sell off.
No improvement in NOI, only marginal reduction in AFFO payout ratio, occupancy not increased, high debt, etc.

If your theory is correct, that means Paul Dalla Lana is shifting his priorities to NWH International.
You can hedge your NWH position by taking a long position in MOB as well.
I did just that, a while ago.

When NWVP announced the RTO of GT Canada, I had an inkling that he is going to do just that (i.e. transfer properties between the two companies).
You can see that whatever NWH has lost in value, MOB has gained, and then some.

These are both niche, low volume, and highly sectorial stocks, so extra caution is required.

 

[favelle75]

Good find Andrew. I own a few NWH.UN shares... Been watching then tank lately, wondering what was going on.

 

[Andrew]

You could be right.
Keep an eye out for insider selling reports.

Their last quarter results were not good, so that could be another reason for the sell off.
No improvement in NOI, only marginal reduction in AFFO payout ratio, occupancy not increased, high debt, etc.

If your theory is correct, that means Paul Dalla Lana is shifting his priorities to NWH International.
You can hedge your NWH position by taking a long position in MOB as well.
I did just that, a while ago.

When NWVP announced the RTO of GT Canada, I had an inkling that he is going to do just that (i.e. transfer properties between the two companies).
You can see that whatever NWH has lost in value, MOB has gained, and then some.

These are both niche, low volume, and highly sectorial stocks, so extra caution is required.

Good point on the MOB hedge. I may do just that.

 

[Eder]

I sold mine today for a loss...I found a couple better opportunities for the funds and still H&R, Rio Can and have recently added to my First Capital Realty holdings.