Q: Good Morning
Seeking your opinion on reinvesting in NWH after tax loss sell in November?
Thx
Seeking your opinion on reinvesting in NWH after tax loss sell in November?
Thx
5i Research Answer:
We would rather consider other REITs over NWH due to recent struggles and cutting of the company's distribution in September. NWH underperformed last year with the higher rate environment but it also weakened fundamentally which is why we would look elsewhere. In a lower rate environment that is expected in 2024, we think NWH has some potential to bounce back, but it is still risky. With stable tenants we had expected more from the REIT, but cash flow is expected to again drop in 2024, and we are always reluctant after a cut, as often the first cut is not the last.