OTCPK:NWHU.F

Stock Analysis Report

NorthWest Healthcare Properties Real Estate Investment Trust

Executive Summary

NorthWest Healthcare Properties Real Estate Investment Trust (TSX: NWH.UN) (NorthWest) is an unincorporated, open-ended real estate investment trust established under the laws of the Province of Ontario.

Rewards

Trading at 51.5% below its fair value

Earnings are forecast to grow 43.05% per year

Earnings grew by 168.1% over the past year

Risk Analysis

Unstable dividend track record

Large one-off items impacting financial results

Shareholders have been diluted in the past year



Snowflake Analysis

Very undervalued with proven track record and pays a dividend.

Share Price & News

How has NorthWest Healthcare Properties Real Estate Investment Trust's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: NWHU.F has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

2.3%

NWHU.F

1.7%

US REITs

1.2%

US Market


1 Year Return

18.1%

NWHU.F

18.6%

US REITs

24.2%

US Market

Return vs Industry: NWHU.F matched the US REITs industry which returned 18% over the past year.

Return vs Market: NWHU.F underperformed the US Market which returned 24.7% over the past year.


Shareholder returns

NWHU.FIndustryMarket
7 Day2.3%1.7%1.2%
30 Day2.3%2.9%3.5%
90 Day0.9%-0.7%11.7%
1 Year26.5%18.1%23.5%18.6%26.9%24.2%
3 Year50.0%20.9%34.4%17.5%53.0%43.2%
5 Yearn/a45.4%15.4%75.3%56.0%

Price Volatility Vs. Market

How volatile is NorthWest Healthcare Properties Real Estate Investment Trust's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is NorthWest Healthcare Properties Real Estate Investment Trust undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: NWHU.F ($9.12) is trading below our estimate of fair value ($18.82)

Significantly Below Fair Value: NWHU.F is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: NWHU.F is good value based on its PE Ratio (14.8x) compared to the REITs industry average (37.8x).

PE vs Market: NWHU.F is good value based on its PE Ratio (14.8x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: NWHU.F is good value based on its PEG Ratio (0.3x)


Price to Book Ratio

PB vs Industry: NWHU.F is good value based on its PB Ratio (1.5x) compared to the US REITs industry average (2x).


Next Steps

Future Growth

How is NorthWest Healthcare Properties Real Estate Investment Trust forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

43.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NWHU.F's forecast earnings growth (43.1% per year) is above the savings rate (1.7%).

Earnings vs Market: NWHU.F's earnings (43.1% per year) are forecast to grow faster than the US market (14.3% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: NWHU.F's revenue (4.6% per year) is forecast to grow slower than the US market (7.5% per year).

High Growth Revenue: NWHU.F's revenue (4.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if NWHU.F's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has NorthWest Healthcare Properties Real Estate Investment Trust performed over the past 5 years?

6.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NWHU.F has a large one-off gain of CA$177.2M impacting its September 30 2019 financial results.

Growing Profit Margin: NWHU.F's current net profit margins (29.4%) are higher than last year (11.1%).


Past Earnings Growth Analysis

Earnings Trend: NWHU.F has become profitable over the past 5 years, growing earnings by 6.3% per year.

Accelerating Growth: NWHU.F's earnings growth over the past year (168.1%) exceeds its 5-year average (6.3% per year).

Earnings vs Industry: NWHU.F earnings growth over the past year (168.1%) exceeded the REITs industry 8.1%.


Return on Equity

High ROE: NWHU.F's Return on Equity (9.7%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is NorthWest Healthcare Properties Real Estate Investment Trust's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: NWHU.F has a high level of physical assets or inventory.

Debt Coverage by Assets: NWHU.F's debt is not covered by short term assets (assets are 0x debt).


Financial Institutions Analysis

Asset Level: NWHU.F's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if NWHU.F has a sufficient allowance for bad loans.

Low Risk Liabilities: NWHU.F reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if NWHU.F has an acceptable proportion of non-loan assets held.

Low Risk Deposits: NWHU.F has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if NWHU.F has an appropriate level of bad loans.


Next Steps

Dividend

What is NorthWest Healthcare Properties Real Estate Investment Trust's current dividend yield, its reliability and sustainability?

6.56%

Current Dividend Yield


Upcoming Dividend Payment

Purchase NorthWest Healthcare Properties Real Estate Investment Trust before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company6.6%marketbottom25%1.4%markettop25%3.7%industryaverage3.6%forecastin3Years6.6%

Current dividend yield vs market & industry

Notable Dividend: NWHU.F's dividend (6.67%) is higher than the bottom 25% of dividend payers in the US market (1.4%).

High Dividend: NWHU.F's dividend (6.67%) is in the top 25% of dividend payers in the US market (3.66%)


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, NWHU.F has been paying a dividend for less than 10 years.

Growing Dividend: NWHU.F has only been paying a dividend for 4 years, and since then payments have not increased.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (86.1%), NWHU.F's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: NWHU.F's dividends in 3 years are forecast to be thoroughly covered by earnings (0.5% payout ratio).


Next Steps

Management

What is the CEO of NorthWest Healthcare Properties Real Estate Investment Trust's salary, the management and board of directors tenure and is there insider trading?

3.9yrs

Average management tenure


CEO

Paul Dalla Lana (52yo)

7.7yrs

Tenure

0

Mr. Paul Dalla Lana is the Founder of NorthWest Healthcare Properties Real Estate Investment Trust and serves as its Chief Executive Officer and Chairman. Mr. Dalla Lana is the Founder of NorthWest Value P ...


CEO Compensation Analysis

Compensation vs Market: Paul's total compensation ($USD0.00) is below average for companies of similar size in the US market ($USD3.86M).

Compensation vs Earnings: Paul's compensation has been consistent with company performance over the past year.


Management Age and Tenure

3.9yrs

Average Tenure

54yo

Average Age

Experienced Management: NWHU.F's management team is considered experienced (3.9 years average tenure).


Board Age and Tenure

4.7yrs

Average Tenure

57yo

Average Age

Experienced Board: NWHU.F's board of directors are considered experienced (4.7 years average tenure).


Insider Trading

Insider Buying: NWHU.F insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$23,23223 Dec 19
Brian Petersen
EntityIndividual
Role
Member of the Board of Directors
Independent Trustee
Shares2,500
Max PriceUS$9.29
SellUS$189,70626 Mar 19
Mike Brady
EntityIndividual
Role
Chief Legal Officer
Executive VP
Shares22,221
Max PriceUS$8.57
SellUS$144,47114 Mar 19
Silver and White Management, Inc
EntityCompany
Shares17,248
Max PriceUS$8.38
BuyUS$20,19226 Feb 19
Brian Petersen
EntityIndividual
Role
Member of the Board of Directors
Independent Trustee
Shares2,500
Max PriceUS$8.08

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 28.2%.


Management Team

  • Mike Brady

    Executive VP

    • Tenure: 4.5yrs
    • Compensation: CA$528.09k
  • Bernie Crotty (57yo)

    President & Trustee

    • Tenure: 10yrs
  • Craig Mitchell

    Chief Executive Officer of NorthWest Healthcare Properties Management

    • Tenure: 1.4yrs
    • Compensation: CA$2.38m
  • Jan Krizan (50yo)

    Managing Director of Germany

    • Tenure: 7yrs
    • Compensation: CA$2.38m
  • Peter Riggin (56yo)

    COO & MD of Canada

    • Tenure: 3yrs
    • Compensation: CA$489.85k
  • Paul Dalla Lana (52yo)

    Chairman & CEO

    • Tenure: 7.7yrs
  • Shailen Chande

    Chief Financial Officer

    • Tenure: 3.3yrs
    • Compensation: CA$790.11k
  • Terry Schmitt

    Regional General Manager of Western Canada

    • Gerson Amado

      Managing Director of Brazil

      • Tenure: 9yrs
    • Dave Casimiro

      Regional General Manager of Ontario Canada


      Board Members

      • Karen Weaver (60yo)

        Independent Trustee

        • Tenure: 1.7yrs
        • Compensation: CA$80.25k
      • Bernie Crotty (57yo)

        President & Trustee

        • Tenure: 10yrs
      • Colin Loudon (67yo)

        Lead Independent Trustee

        • Tenure: 1.9yrs
        • Compensation: CA$156.00k
      • Paul Dalla Lana (52yo)

        Chairman & CEO

        • Tenure: 7.7yrs
      • Robert Baron (54yo)

        Independent Trustee

        • Tenure: 4.7yrs
        • Compensation: CA$126.00k
      • Brian Petersen (52yo)

        Independent Trustee

        • Tenure: 5.3yrs
        • Compensation: CA$154.00k
      • Christopher Naylor (64yo)

        Independent Trustee

        • Tenure: 4.7yrs
        • Compensation: CA$142.50k

      Company Information

      NorthWest Healthcare Properties Real Estate Investment Trust's company bio, employee growth, exchange listings and data sources


      Key Information

      • Name: NorthWest Healthcare Properties Real Estate Investment Trust
      • Ticker: NWHU.F
      • Exchange: OTCPK
      • Founded:
      • Industry: Health Care REITs
      • Sector: Real Estate
      • Implied Market Cap: CA$2.091b
      • Market Cap: CA$1.430b
      • Listing Market Cap: CA$1.601b
      • Shares outstanding: 170.86m
      • Website: https://www.nwhreit.com

      Number of Employees


      Location

      • NorthWest Healthcare Properties Real Estate Investment Trust
      • 180 Dundas Street West
      • Suite 1100
      • Toronto
      • Ontario
      • M5G 1Z8
      • Canada

      Listings

      TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
      NWH.UNTSX (The Toronto Stock Exchange)YesNew Trust UnitsCACADMay 2015
      NWHU.FOTCPK (Pink Sheets LLC)YesNew Trust UnitsUSUSDMay 2015

      Biography

      NorthWest Healthcare Properties Real Estate Investment Trust (TSX: NWH.UN) (NorthWest) is an unincorporated, open-ended real estate investment trust established under the laws of the Province of Ontario. As at September 30, 2019 the REIT provides investors with access to a portfolio of high quality international healthcare real estate infrastructure comprised of interests in a diversified portfolio of 171 income-producing properties and 14.0 million square feet of gross leasable area located throughout major markets in Canada, Brazil, Europe, Australia and New Zealand. The REIT's portfolio of medical office buildings, clinics, and hospitals is characterized by long term indexed leases and stable occupancies. With a fully integrated and aligned senior management team, the REIT leverages over 200 professionals in nine offices in five countries to serve as a long term real estate partner to leading healthcare operators. 


      Company Analysis and Financial Data Status

      All financial data provided by Standard & Poor's Capital IQ.
      DataLast Updated (UTC time)
      Company Analysis2020/01/21 00:51
      End of Day Share Price2020/01/16 00:00
      Earnings2019/09/30
      Annual Earnings2018/12/31


      Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.