1) What do you think of the concept (healthcare facilities)
2) why was there a big drop a couple years ago, and has this been resolved or still an issue
3) what is the payout percentage and debt level
4) how are distributions taxed (I’m looking for ROC)
5) buy up to 2% or just stay away
Thank-you
NWH.UN is a REIT that owns a portfolio of healthcare real estate located globally. The company’s properties include assets ranging from core infrastructure hospitals to specialty hospitals and ambulatory care centers. The asset class is highly defensive with long-term demographic tailwinds.
The big drop in the share price a few years ago was due to the fair value adjustment of investment properties, where the company wrote down its assets by around $570M to reflect the market value of its properties.
The company’s debt level is quite high, currently standing at 9.6x net debt/EBITDA. In 2024 (2025 data is not available yet), NWH.UN’s distributions were taxed 38.9% as ROC, while the rest were taxed as income.
Overall, it is a deep value type of name, but the debt level is quite high, which is a risk.