Canada’s real estate sector has experienced major volatility after a series of sharp interest rate hikes. Real estate investment trusts (REITs) have been a fantastic source of income for prospective investors over the past decade. This new environment means that investors will need to be more selective. Today, I want to zero-in on a healthcare focused REIT that you can depend on for the long term.
The Northwest Healthcare REIT (TSX:NWH.UN) is a Toronto-based real estate investment trust that is focused on owning and operating a portfolio of high-quality healthcare real estate. Shares of this REIT have dropped 3.9% in 2022 as of mid-afternoon trading on July 29. The stock is still up 1.4% in the year-over-year period.
Western nations are seeing increased demand for health care facilities due to an aging population. The lack of adequate space became apparent during the COVID-19 pandemic. That makes Northwest a dependable bet going forward.
Investors can expect to see the REIT’s next batch of results on August 11. In Q1 2022, Northwest Healthcare delivered revenue growth of 10% to $102 million. Meanwhile, it posted strong portfolio occupancy of 97%. Moreover, total assets under management (AUM) jumped 23% to $9.5 billion. Net asset value (NAV) per unit rose 15% year-over-year to $14.73.
Shares of this REIT possess a very favourable price-to-earnings ratio of 6.6. It offers a monthly dividend of $0.067 per share. That represents a tasty 6% yield.