A High-Risk Investment that Pays a 6.5% Dividend

Healthcare has been changing rapidly, and nothing has become more obvious than the evolution of office space. Many services are being offered remotely, leaving medical office space at risk. For example, some 85% of family doctor visits are reported to be easily accomplished via an online consultation. Such service delivery does not require specialized office space.

For some hands-on services, however, high-end, specialized office space is needed. That is where Northwest Healthcare Properties REIT comes into play. Bad management, however, has taken this niche dividend payer into the high-risk category. Poor decisions on expansion, lack of focus, and asset management have resulted in the stock value dropping from $10 a share some two years ago to just $5.47 today. Ouch. It also has assets in a variety of countries and jurisdictions, which can be difficult to monitor and optimize.

Again, the issue is a lack of focus. I completed an Ask Hank analysis, and the report is below. Ask Hank was able to grab the audited financials, so I didn’t need to download them myself. I love the 6.5% dividend, but will management maintain the focus needed to fix this? Will future AI affect the need for hospitals and specialized office space? That is the added risk, and that’s why they are in my High-Risk ETF.

This information is for Educational Purposes only. Do not make portfolio changes without speaking with your financial advisor. I am not a financial advisor.

FULL NORTHWEST HEALTHCARE PROPERTIES REIT (NWH) HANK-STYLE ANALYSIS

Northwest Healthcare Properties REIT (NWH) is a global healthcare real estate investment trust with assets across Canada, the United States, Europe, Brazil, Australia, and the Asia-Pacific region. Its portfolio includes hospitals, specialty medical facilities, outpatient clinics, medical office buildings, and other essential healthcare real estate. NWH benefits from long-term, inflation-indexed leases, high occupancy rates (historically above 96%), and a global tenant mix primarily made up of government-backed or essential healthcare service providers.

Recent operational and financial results show NWH executing a significant restructuring and deleveraging strategy. In 2024, the REIT completed approximately $1.4 billion in non-core asset sales, repaid around $1.1 billion of debt, and refinanced an additional $1.0 billion. These actions materially reduced refinancing risk and improved balance-sheet stability. According to Q4 2024 updates, same-property NOI grew approximately 4–5%, occupancy remained strong, and weighted average lease expiry (WALE) was approximately 13.6 years. NWH continues transitioning toward more unsecured financing to improve liquidity and flexibility.

Strengths of NWH include its defensive asset class (healthcare properties), globally diversified portfolio, long-duration leases, predictable income streams, inflation protection, and strong occupancy. The REIT’s focus on essential-service tenants reduces business cycle sensitivity. Recent deleveraging and asset sales demonstrate active management and a shift toward a more focused, higher-quality portfolio.

Risks include historical over-leverage, fair-value volatility tied to global interest-rate shifts and cap-rate changes, refinancing exposure, foreign-exchange risk from multi-region operations, and ongoing execution requirements tied to its repositioning strategy. While asset sales improve leverage, they also reduce diversification, and management must execute consistently to maintain momentum. Furthermore, global healthcare policy, local regulatory risks, and integration across multiple continents introduce structural complexity.

Under a Hank-style scorecard, NWH scores approximately 70/100. This reflects strong portfolio durability, long-term lease strength, effective balance-sheet repair, and defensive sector positioning, balanced against leverage history, valuation uncertainty, and cross-border complexity. From a portfolio perspective, NWH can serve as a core-satellite holding for investors seeking defensive real estate exposure, stable long-term income potential, and global diversification—assuming continued execution and prudent capital management.

This information is for Educational Purposes only. Do not make portfolio changes without speaking with your financial advisor. I am not a financial advisor.

Last Time the Market Was This Expensive, Investors Waited 14 Years to Break Even

In 1999, the S&P 500 peaked. Then it took 14 years to gradually recover by 2013.

Today? Goldman Sachs sounds crazy forecasting 3% returns for 2024 to 2034.

But we’re currently seeing the highest price for the S&P 500 compared to earnings since the dot-com boom.

So, maybe that’s why they’re not alone; Vanguard projects about 5%.

In fact, now just about everything seems priced near all time highs. Equities, gold, crypto, etc.

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It’s post war and contemporary art.

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_{*Investing involves risk. Past performance is not indicative of future returns. Important Reg A disclosures: masterworks.com/cd.}