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Investment Q&A

Not investment advice or solicitation to buy/sell securities. Do your own due diligence and/or consult an advisor.

Q: I am trying to like this company enough to buy in, but have a problem. They have not raised their dividend since they started. It would seem that they grow by aquisitions, funded by issuing stock, but are not able to get a good enough deal to net better than the 6.2 % they are paying now. That doesn't speak well for management. What is the point of growth if it does not get more return? Their payout ratio is apparently 94%.
I always think that for a company that does that, they would at least increase their 6.2% if they fired the management who are - to quote Shakespeare - up to "much ado about nothing". That salary that is spent NOT increasing my payment (at least enough to keep up with inflation!) could go to the bottom line!
In fact, if they are raising their rent by inflation then the net should go up by inflation. The fact it does not generally means they are not managing their costs well at all.
So, that being said, can you muster any argument that could convince me this is worth buying? Hopefully I am missing something!
Thanks!
Paul K.

Read Answer Asked by Paul on June 02, 2021

Q: NWH.UN's proposed purchase of Australian Unity Healthcare: https://www.newswire.ca/news-releases/northwest-healthcare-properties-real-estate-investment-trust-announces-2-6bn-proposal-to-acquire-australian-unity-healthcare-property-trust-884830846.html

Earlier 5i had summarized NWHs last results as "cash flow per unit of 20 cents missed estimates of 22 cents. 98.6% of rent was collected. Revenue was unchanged at $92.6M. Payout ratio 97% (87% normalized). Occupancy 97%. Assets rose 16.2%. Net asset value increased 2%. Leverage ratios declined. Considering covid, we would consider it a fairly decent quarter overall." and have ranked it fairly "low risk" as REITS go.

What impact, if any, do you feel if it's bid (if approved ) to acquire Australian Unity Healthcare Property Trust (at a 16% premium) would have on the above and on NWH's share price?

If there is a significant drop in the share price of NWH.UN would you see this as a "buy"?

Thanks!

Read Answer Asked by Cory on June 01, 2021

Q: In the past you have mentioned you felt the dividend is vulnerable, wondering if anything has changed or do you still feel this way? Could you list a few Canadian REITS you would feel more comfortable with yielding above 5%?

Thanks

Read Answer Asked by Mackenzie on May 25, 2021

Q: CRT.UN is my only real estate exposure in my current unregistered portfolio (5% of the unregistered, 1.8% of the total, portfolios). Exploring replacing that with BAM.A (which you answered for me a few weeks ago, not part of this question) or with NWH.UN.
Re: CRT -- pro: better debt level than NWH (?); con: I already have similar exposure to CTC
Re: NWH -- pro: I currently have no other health care exposure (except the tiny portion of Telus); slightly better global diversification; higher dividend; con: higher debt; no historic dividend increases
Any other considerations? What are your thoughts on this potential swap?
Thanks again for all your comments and service.

Read Answer Asked by Lotar on May 03, 2021

Q: Hi,
How would you rank the companies in regards to financial risk and growth?
Thank you

Read Answer Asked by Edward on April 27, 2021

Q: I noticed in a question you answered on April 21st you stated that you prefer NWH.UN over CSH.UN. My question is would you make the switch from Chartwell to Northwest Healthcare. In my case I can sell 1600 shares of Chartwell and get 1475 shares of Northwest Looks like my month dividend would also increase over 116 dollars a month too. Thoughts?

Thanks

Read Answer Asked by Jimmy on April 22, 2021

Q: Hello, I currently own CAR.UN, CSH.UN & NWH.UN for income earning
REITs.in a RRIF account. Considering adding SGR.UN or SRU.UN. Which one with a brief why.
Thanks
Roy

Read Answer Asked by Roy on April 14, 2021

Q: Would appreciate it very much ranking the above based on your expectation of total return over 3 to 5 years period. I wish to consolidate these number into less positions. In particular I am thinking of selling FCR at a loss and perhaps add to GRT.un or one of the others,

Thanks

Read Answer Asked by Saad on March 23, 2021

Q: Hi, I put away some extra cash into my RRSP before March 1 and unsure where to put the funds. I'm thinking of adding to my holdings in each of the following stocks. I have less than a full position in each, except for DIV and NWH where I have a full position at this time. Generally want to put funds into something not too risky, but not just top up my existing ETF holdings (which I generally do if I don't have a better idea where to put the money).
Thanks
Michael

Read Answer Asked by Michael on March 04, 2021

Q: looking to buy this bundle...can you rank from must have to lest favourite..many thanks...

Read Answer Asked by adam on February 22, 2021

Q: Hi 5i
In my tfsa I have the following by percentage
Fsly.us 1.76 %
Fts 1.44 %
Nwh.un 1.82 %
Rnw 1.5 %
Well 1.23 %
I'm in the green with all of them, but i have available cash and don't want to add more stocks to my portfolio ( 26 right now ) So my question if I add to these stocks what would be your thoughts?
Thx
Gerry

Read Answer Asked by Gerry on February 18, 2021

Q: I asked a question before Christmas about trimming or dumping my above laggards which I havenít seen an answer to.
Thanks

Read Answer Asked by Craig on January 05, 2021