NorthWest Healthcare Properties Real Estate Investment Trust (NWH-UN) investor relations material

Executive summary

• CEO Zachary Vaughan, appointed July 2025, emphasized disciplined capital allocation, strategic asset management, and the REIT's defensive, high-occupancy healthcare portfolio with stable, inflation-indexed cash flows and low obsolescence risk.

• Q2 2025 saw operational momentum with improved AFFO per unit, a lower payout ratio, and over $282M in non-core asset sales year to date.

• The sector is attracting increased interest from real estate and infrastructure investors, with successful exits such as the Assura investment.

• The DRIP was suspended to optimize capital structure and focus on NAV growth.

Financial highlights

• Q2 2025 AFFO per unit was $0.10, up 18.6%–19.9% year-over-year, with an AFFO payout ratio improved to 88% from 105% a year ago.

• Revenue from investment properties was $99.0M, down 16.9% year-over-year due to asset dispositions, partially offset by same property revenue growth.

• Net income for Q2 2025 was $32.6M, reversing a net loss of $127.2M in Q2 2024, driven by lower interest expense, fair value gains, and FX gains.

• Consolidated same property NOI was $73.2M, up 2.8% year-over-year, with all regions contributing positively.

• Leverage reduced to 48.5% from 50.0% at year-end 2024, aided by debt repayment from asset sales.

Outlook and guidance

• Focus remains on disciplined capital allocation, further debt reduction, reinvestment in core assets, and pursuing accretive growth opportunities.

• G&A cost ratio expected to normalize to approximately 5.5% by year-end as efficiency initiatives take hold.

• Healthscope/HSO rent deferral arrangements expected to be repaid by March 31, 2026, or upon asset sale completion; new owner expected Q4 2025.

• Management anticipates continued SPNOI growth in the 2–3% range for most regions, with Brazil higher due to inflation.

• Asset management fee growth is expected to resume in 2026 as market activity picks up.