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orthwest Healthcare Properties Real Estate Investment Trust (TSX: NWH.UN) announces its results for the three and six months ended June 30, 2025. The REIT also suspends its distribution reinvestment plan and appoints Zachary Vaughan to its Board of Trustees.
Zachary Vaughan, CEO of Northwest, comments on the company's strong portfolio and team. He highlights the long-term demand drivers, recession-resistant cash flows, and low obsolescence risk associated with their healthcare infrastructure assets. With a unique position as a leader in this sector, Northwest is well-positioned for future growth.
The Q2 2025 results reflect continued operational momentum, with improvements in AFFO per unit, a lower payout ratio, and the execution of its capital recycling strategy. The REIT has completed over $282 million in non-core asset sales year to date.
Key highlights for Q2 2025 include:
* Revenue from investment properties was $99.0 million, a decrease of 16.9% from Q2 2024 due to non-core asset dispositions.
* Same Property Net Operating Income (SPNOI) increased by 2.8% to $73.2 million for Q2 2025, reflecting steady growth across all regions.
* General and administrative expenses decreased by $0.5 million from Q2 2024, primarily due to headcount reduction and business simplification.
* Net income for Q2 2025 was $32.6 million compared to a net loss of $127.2 million in Q2 2024.
* Adjusted funds from operations (AFFO) was $0.10 per unit in Q2 2025, resulting in an AFFO payout ratio of 88%.
* The REIT recorded fair value gains on investment properties of $13.6 million during Q2 2025, compared to fair value losses of $172.4 million in Q2 2024.
* The REIT's leverage was 48.5% at the end of Q2 2025, driven by proactive debt repayment from dispositions.
* Strong operating performance in Q2 2025 was supported by a stable, long-term lease maturity profile with a weighted-average lease expiry (WALE) of 13.5 years and a global portfolio occupancy rate of 97%.
