Thanks
Dave
On Aug 11 NWH announced the distribtution was being maintained. Total debt is $3.6B; debt-to-assets ratio is 50.8%, which is higher than we like but has been improving. In the quarter, occupancy was 96%. Cash flow per unit was 13c, missing estimates of 18c. Revenue of $126.5M slightly beat estimates. Revenue rose, but cash flow per unit fell from 19c. We would not consider NWH as 'need to own' stocks today. NWH investors are concerned about a distribution cut. The payout ratio will be 100% in 2024. In addition to (very weak) momentum, our concern lies in the distribution and debt levels. While cheap, the distribution is at risk of being cut, and debt is too high for our comfort if we see an economic slowdown.