Northwest Healthcare Properties REIT (TSE:NWH.UN), a global healthcare REIT, is seeing its stock plunge today. That’s because NWH had plans for a joint venture (JV) in the UK with an institutional investor, but now, the JV has fallen through. This deal was originally announced last November and was finalized on June 7, 2023, for a net consideration of £165.8 million, so it’s surprising to see the deal collapse now.
Even though this is a setback, the company is still confident about doing business in the UK’s healthcare property sector. Northwest has been looking for other investors to get involved and help fund its UK projects. The company has a goal to own about 30% of these projects, while other investors would own the rest. This is a way of spreading the cost and the risk.
Nonetheless, not all things are going badly for NWH. 97% of the company’s properties are being rented out, and most of the leases (82.6%) increase rent every year. These positive points helped the firm increase its same-property net operating income by 4.4% in Q1 compared to the same period last year.
Is NWH.UN Stock a Buy, According to Analysts?
According to analysts, NWH.UN stock comes in as a Moderate Buy based on two Buys and three Holds assigned in the past three months. The average NWH.UN stock price target of C$9.91 implies 41.7% upside potential.
