The following is a summary of the NorthWest Healthcare Properties Real Estate Investment Trust (NWHUF) Q3 2024 Earnings Call Transcript:

Financial Performance:

• Q3 revenue from investment properties decreased by 12% due to the disposition of non-core properties, partially offset by rent escalations and indexation.

• Same property net operating income increased by 5% to $70.7 million.

• FFO per unit was $0.11, an increase from $0.09 per unit in Q3 2023, mainly attributable to improvements in interest expense and G&A expenses.

• AFFO per unit remained stable at $0.09 per unit, with a payout ratio of 99%.

• General and administrative expenses decreased by $2.1 million, driven by operational efficiency initiatives.

Business Progress:

• Successfully executed the sale of the UK portfolio to Assura, generating $885 million, which was used to repay debts.

• Reduced the overall debt exposure significantly, repaying, refinancing, or extending a total of $1.1 billion in debt.

• Improved the lease maturity profile in Brazil, including the renewal of significant leases and listing properties for sale.

• Strengthened the lease term of the global portfolio, improving the weighted average lease expiry to 13.4 years from 12.9 years in Q2 2024.

Opportunities:

• The ongoing demand for healthcare real estate, supported by long-term inflation-indexed leases and backed typically by government funding, represents a robust investment proposition.

• Significant potential for streamlining operations further and enhancing investor returns through strategic asset dispositions and debt management.

Risks:

• A substantial portion of the 2025 debt maturities has been addressed, reducing financial exposure, but a minor amount remains that requires refinancing or repayment.

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