The S&P/TSX Composite Index moved up 32 points on Tuesday, March 28. Some of the worst performing sectors included Health Care and Information Technology. In this piece, I want to target a health care focused real estate investment trust (REIT) that offers great value in a choppy market.
Northwest Healthcare REIT (TSX:NWH.UN) is a Toronto-based REIT that is focused on investing in a global portfolio of high quality health care real estate. Shares of this REIT have dropped 9.8% in 2023 as of close on March 28. The stock has plunged 38% year over year.
This REIT is set to unveil its final batch of fiscal 2022 results on March 31, 2023. In Q3 2022, Northwest Healthcare delivered revenue growth of 21% to $115 million. Meanwhile, it posted same property net operating income (NOI) growth of 2.5% while portfolio occupancy was reported at a strong 97%. Total assets under management (AUM) climbed 24% year-over-year to $10.6 billion.
Net asset value (NAV) per unit increased 2.7% from Q3 FY2021 to $13.97. Moreover, the number of Northwest Healthcare properties rose to 233 compared to 192 in the previous year. Investors should be excited about the future for this REIT in the burgeoning health care space.
Shares of Northwest Healthcare REIT possess a very attractive price-to-earnings ratio of 6.9. Better yet, Northwest offers a monthly distribution of $0.067 per share. That represents a monster 9.3% yield.
