Canadian Money Forum banner

Any thoughts on Northwest Healthcare (NWH.UN.TO)?

11478 Views 28 Replies 17 Participants Last post by  TomB16
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?
21 - 29 of 29 Posts
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.
I was going to sell as well....hoping for $10 and then maybe I'll cut out. Then again, its a very small position for me (1.5-2%) so maybe with the large divvy, I just let it ride?
Interesting times. 1Q17 earning call on May 16.

I expect NWH to outperform analyst expectations but time will tell. Does anyone have some insight into this REIT?
I have owned this REIT since 2010 and it has taken good care of us. There was a brief time when NWH was our largest position, when Dream Global was bought out. Now it is our third largest. I stopped adding to this position around the time they started buying everything that isn't bolted down in Australia and New Zealand but have never sold a share.

Once a company starts focusing on being big, instead of performance, I feel it has lost it's way. This is what I believe has happened to NWH. So, I will continue to hold and enjoy a decent distribution but have extreme low expectations for the future. They seem to be diluting their issue as quickly as they add equity.

I was hopeful they could digest the Australian acquisitions and bump the dividend but the answer to that is now clear.
If the stock no longer suits you why continue to hold? Is it due to cap gains in non reg? Or is there nothing out there that you think will give a return? With the recent decline in the markets now would seem like a good time to switch into something better.
  • Like
Reactions: 1
I'm not a trader. When I buy a company, I consider it a partnership.

Most of our NWH position was acquired in 2011~2012 when I was growing it as aggressively as possible. Our average price is below $10, so it's been a while.

NWH will be the first position sold as we roll into retirement but I have no interest in buying/selling anything based on anticipated performance. If they were to goose the dividend a bit, I would probably hang tight with them but it hasn't changed in many years and it doesn't look like it is going to.
As you know, REITs are reluctant to raise dividends because of their high payout ratios. However, after many years of no increases one is not getting much return after inflation. It's ok to have a few of these bond like stocks in the portfolio however, it could mean trouble down the road due to dilution, and increased debt coverage costs. If you held it for a decade you are very familiar with the company and if it was a good hold at $7 or $8 it is definitely a good sell at $12. Your response tells me you do have a plan to exit and the rationale for it. Sometimes partnerships end but if you have no place to deploy the funds it may make sense to stay the course until you need the cash. What happens between now and then is anybody's guess.
  • Like
Reactions: 1
I recently sold it. I only own one Reit and that is Dream Industrial. With the rising interest rate scenario I believe most will be challenged . A higher cost for capital and a downward pressure on their NAV.
  • Like
Reactions: 1
It's frustrating to watch a company try to get big with no regard to corporate performance. This seems to be an extremely common operating vector. The only explanation I can think of is the executive suite is hungry for power and wants their domain to be as large as possible.

Unfortunately, we still have a little bit of NWH-UN.

I had long term sell orders in place and they mostly filled but we still have 12% of the shares we had at the start of the year. When the price fell below $13, I decided to sit on the stock. In retrospect, I'm not sure that was a great idea.

Paul Dalla Lana is mildly toxic but I've seen worse CEOs. If he were replaced, it is not certain things would go better.

I have a tiny bit of healthcare related R-E management and this causes me to believe NWH-UN is being operated very inefficiently. It's a global REIT so I don't proclaim to understand the scope of their operation. If I thought I had a better understanding, I might kick our remaining tranche to the curb.
See less See more
21 - 29 of 29 Posts
This is an older thread, you may not receive a response, and could be reviving an old thread. Please consider creating a new thread.