# Northwest Healthcare Properties – NWH.UN



## Andrew (May 22, 2009)

I just bought a bunch of NWH.UN (Medical REIT)

Reasoning:

Book value is $13.20 per share. Stock is trading at $10.25 per share, which is a substantial discount to book value. There may be opportunity for price appreciation. Risk is that this may be an indicating that their assets are impaired and the market is expecting a write down in fair value.
Interest rates may stay low for longer than expected. This will benefit REITs which are interest rate sensitive. Lower interest rates for longer should have a positive impact on REITs
Dividend yield is almost 8%. Opportunity to earn a decent income return even if the stock price stays flat.
Payout ratio is improving over time, hopefully making the dividend more sustainable.
Company has good geographic diversification in terms of assets and revenue diversification among property types and customers.
Chances are doctors and medical companies make good tenants that pay their rent and have low vacancy rates.

What am I missing?


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## HaroldCrump (Jun 10, 2009)

There is already a thread for this stock.

http://canadianmoneyforum.com/showthread.php/15747-Any-thoughts-on-Northwest-Healthcare-(NWH-UN-TO)

Perhaps the mods can move this post under that.


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## PatInTheHat (May 7, 2012)

This has been a tough one to own. Pretty much always goes down, even when REITs are up.

I'm not sure what's missing either as it has always appeared to be an excellent investment to me.


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## favelle75 (Feb 6, 2013)

I bought in at $11.10 some time ago. Nice divvies...but stock hasn't really done anything.


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## londoncalling (Sep 17, 2011)

http://finance.yahoo.com/news/northwest-healthcare-properties-reit-northwest-120200290.html

I see this as an interesting move. Great for those that own NWI. Don't own but have watched from the sidelines for years. May consider a position in NWH at some point. I like the move to global diversification, increased lease terms, and newer buildings. Not sure about the cost of the move. thoughts?


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## HaroldCrump (Jun 10, 2009)

londoncalling said:


> http://finance.yahoo.com/news/northwest-healthcare-properties-reit-northwest-120200290.html
> 
> I see this as an interesting move. Great for those that own NWI. Don't own but have watched from the sidelines for years. May consider a position in NWH at some point. I like the move to global diversification, increased lease terms, and newer buildings. Not sure about the cost of the move. thoughts?


I was a NWI shareholder until the conversion was announced.
I think the conversion rate was a fair deal for NWI holders, however, not so much since then.

I preferred NWI to NWH because of international exposure, esp. the New Zealand business, which is really the crown jewel of this corporation.
NWH suffers from typical Canadian economic malaise.

As you can see, the combined entity has sold off since the merger (actually the sell off had started as soon as news was announced).
The combined entity now suffers from the Brazilian slowdown and BRL depreciation as well.
The overall yield is less too.

Another factor to keep in mind is that the proprietor - Paul D. Lana - owns a very large share of the company and most of his personal N/W is tied up in this corporation.
NWI holders that got NWH shares will benefit from the increased liquidity, though, so there is some silver lining.


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