Q1 2022 INVESTOR UPDATE - May 12, 2022 - NorthWest Healthcare Properties
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Q1 2022
INVESTOR UPDATE
May 12, 2022
DISCLAIMER
This presentation provides a summary description of Northwest Healthcare Properties Real Estate Investment Trust (“NWH” or the “REIT”). This presentation should be read in conjunction with
and is qualified in its entirety by reference to the REIT’s most recently filed financial statements, management’s discussion and analysis, management information circular and annual information
form (the “AIF”).
This presentation contains forward-looking statements. These statements generally can be identified by the use of words such as “expect”, “anticipate”, “believe”, “foresee”, “could”, “estimate”,
“goal”, “intend”, “plan”, “seek”, “strive”, “will”, “may”, “would”, “might”, “potential”, “should”, “stabilized”, “contracted”, “guidance”, “normalized”, or “run rate” or variations of such words and
phrases. Examples of such statements in this presentation may include statements concerning: (i) the REIT’s financial position and future performance, including normalized and target financial
metrics, forecasted liquidity and potential deleveraging transactions; (ii) joint venture conditional capital commitments and negotiations, potential acquisitions, dispositions and other transactions,
including a potential UK joint venture, and transactions involving Aspen and Australian Unity; (iii) the REIT’s development pipeline and associated future value creation, (iv) the REIT’s property
portfolio, cash flow and growth prospects, liquidity, un-deployed capital, leverage ratios, future financings and asset management fees, (v) the REIT’s intention and ability to distribute available
cash to security holders, (vi) the industry in which the REIT operates and trends related thereto, and (vii) the REIT’s strategic and governance initiatives.
Such forward-looking information reflects current beliefs of the REIT and is based on information currently available to the REIT. Other unknown or unpredictable factors could also have material
adverse effects on future results, performance or achievements of the REIT. Forward-looking information involves significant risks and uncertainties, should not be read as a guarantee of future
performance or results and will not necessarily be an accurate indication of whether or not, or the times at which, or by which, such performance or results will be achieved, and readers are
cautioned not to place undue reliance on such forward-looking statements. The forward-looking statements contained in this presentation are based on numerous assumptions which may prove
incorrect and which could cause actual results or events to differ materially from the forward-looking statements. Although these forward-looking statements are based upon what the REIT
believes are reasonable assumptions, the REIT cannot assure investors that actual results will be consistent with this forward-looking information. Such assumptions include, but are not limited to,
the assumptions set forth in this presentation, as well as assumptions relating to (i) completion of anticipated acquisitions, dispositions, development, joint venture, deleveraging and other
transactions (some of which remain subject to completing documentation) on terms disclosed; (ii) the REIT’s properties continuing to perform as they have recently, (iii) the REIT successfully
integrating past and future acquisitions, including the realization of synergies in connection therewith; (iv) various general economic and market factors, including exchange rates remaining
constant, local real estate conditions remaining strong, interest rates remaining at current levels, the impacts of COVID-19 on the REIT’s business ameliorating or remaining stable; and (vii) the
availability of equity and debt financing to the REIT. These forward-looking statements may be affected by risks and uncertainties in the business of the REIT and market conditions, including that
the assumptions upon which the forward-looking statements in this presentation may be incorrect in whole or in part, as well as the various risks described in the AIF.
These forward-looking statements reflect the REIT’s expectations only as of the date of this presentation. The REIT disclaims any obligation to update or revise any forward-looking statements,
whether as a result of new information, future events or otherwise, except as required by law.
Certain information concerning Vital Trust contained in this presentation has been taken from, or is based upon, publicly available documents and records on file with regulatory bodies. Although
the REIT has no knowledge that would indicate that any of such information is untrue or incomplete, the REIT was not involved in the preparation of any such publicly available documents and
neither the REIT, nor any of their officers or trustees, assumes any responsibility for the accuracy or completeness of such information or the failure by Vital Trust to disclose events which may
have occurred or may affect the completeness or accuracy of such information but which are unknown to the REIT.
Funds from operations (“FFO”), adjusted funds from operations (“AFFO”), net operating income (“NOI”), same property NOI (“SPNOI”), and net asset value (“NAV”) are not measures recognized
under International Financial Reporting Standards (“IFRS”) and do not have standardized meanings prescribed by IFRS. FFO, AFFO, NOI, SPNOI, and NAV are supplemental measures of a real estate
investment trust’s performance and the REIT believes that FFO, AFFO, NOI, SNOI and NAV are relevant measures of its ability to earn and distribute cash returns to unitholders. The IFRS
measurement most directly comparable to FFO, AFFO, NOI and SPNOI is net income. The IFRS measurement most directly comparable to NAV is net equity. An explanation and reconciliation of
Non-IFRS measures is presented in the REIT’s management’s discussion and analysis of financial condition and results of operations of the REIT for the period ended March 31, 2022 as filed on
SEDAR.
1
TORONTO
Focused Healthcare Real Estate Investment Partner
9 Global scale, local relationships
Partner of choice for leading operators
LONDON
SÃO PAULO
9 Defensive operating fundamentals
Cure focus underpinned by government funding
PHOENIX
9 A proven track record
Annual total shareholder return of 13.1%
B E R L I N S Y D N E Y
9 Scalable platform with embedded growth
Robust acquisition and development pipeline
+70% Global Gateway City Exposure
Established Relationships with Leading Healthcare Operators
NWH AT A GLANCE CONSOLIDATED NO
NOII
DIVERSIFICATION(4)
18.1M 229 $10.3B
SQUARE FEET* PROPERTIES* TOTAL ASSETS(3)
97.0% 14.6 5.2%
OCCUPANCY* YEAR WALE* IFRS CAP RATE
$3.0B 6.4% 95%
MARKET CAP (1) DISTRIBUTION YIELD(1) PAYOUT RATIO (2)
2
*Q1 2022 PF completion of US portfolio acquisition
WHY INVEST IN HEALTHCARE REAL ESTATE
$3 Trillion ‘niche’ Excellent demand Defensive
healthcare real estate fundamentals characteristics;
market with growing indexation delivering
demand growth
• $8 Tn spent annually on global • Supportive demographic trends • Healthcare real estate has been
healthcare with growing & ageing among the top performing real
• Healthcare spending growing at populations particularly in the estate asset classes since before
4%-7% annually key 65+ demographic the global financial crisis
• Rising prevalence of chronic • Essential nature of healthcare
• Among largest global industries
conditions is driving demand makes the asset class recession
accounting for over 10% of
resilient as demonstrated during
global GDP • Wellness trends are increasing
the GFC and C-19
“consumption” of healthcare
Delivering Superior Risk Adjusted Returns
3
NORTHWEST’S FOCUS
CURE CARE
Higher Acuity Lower Acuity
NWH FOCUS
Hospital Ambulatory Care & MOB Life Sciences Skilled Assisted Living Independent
Outpatient Nursing/Aged Living
Care
Healthcare precincts drive long-
Evolution term value creations through;
¾ Higher value tenants &
retention
¾ Higher rent growth
¾ Up zoning
¾ ESG compliant
4
HIGHLIGHTS OF THE QUARTER
+2% +15%
$0.21 YoY $14.73 YoY 320 bps YoY 2.2% YoY
AFFO/Unit NAV/Unit LTV Reduction SPNOI
US MARKET ENTRY & AFFO GROWTH LEVERAGE & VALUE CREATION
$753M 5.5%
Acquisition Price Portfolio cap rate 52.1%
49.6% 49.8% 48.8%
48.5%
+90% 55%
Indexation LTV 44.3%
43.1% 43.8%
41.9% 42.5%
Q1 21 Q2 21 Q3 21 Q4 21 Q1 22
Consolidated Proportionate
$0.83 $0.84 $12.77 $14.73
Q1-21 AFFO/Unit
+2% YoY Q1-22 AFFO/Unit
+15% YoY
Q1-21 NAV/Unit Q1-22 NAV/Unit
Annualized Annualized
5
2022 STRATEGIC PRIORITIES
CORE DEFENSIVE ACCELERATING GROWTH RAPIDLY GROWING ASSET
PORTFOLIO PROFILE MANGEMENT PLATFORM
• NWH’s portfolio is highly
defensive:
• US market entry to
accelerate growth: 9 • Total management fees
+23% YoY
9 Long-WALE of ~15 9 Largest healthcare RE
years market globally; • Asset manager expected
9 Highly diversified 9 High transaction to continue rapid growth
geographically velocity; in 2022
including exposure to 9 Acquisition cap rates at
USD; ~100 bp premium to • New fund initiatives incl:
9 Inflation protection
from inflation indexed
other markets 9 $2.2B AUS JV upsize
9 $2.5Bn UK JV
9
& annual contractual • Healthcare Precinct including ~$1B seed
rent growth strategy: portfolio (2H-22)
9 Opportunity to develop 9 $765M US JV (2H-22)
core real estate at the 9 $5.0B Global
intersection of Healthcare Precinct
healthcare, education Fund (2H-22)
and life science
MATCHING THE RIGHT CAPITAL WITH ATTRACTIVE INVESTMENT OPPORTUNITIES
TO DRIVE VALUE CREATION ACROSS A RAPIDLY EXPANDING ASSET MANAGEMENT
PLATFORM
6
DEFENSIVE UNDERLYING PORTFOLIO
Operating Metrics Diversification
~97% 8 >2,000
Portfolio Occupancy Countries Tenants
Diverse tenants encompass
80% 15 yr hospitals operators,
Inflation Indexed rehabilitation clinics, life
WALE sciences and individual
Rents
STABLE practitioners
OPERATING
FUNDAMENTALS
> 80%
Tenants with One of Australia’s Leading
Government Support Hospital Operators
>$350B
One of Germany’s leading Brazil’s Leading
Stable Private Funding from Public
Rehabilitation Clinic Operators Hospital Operator
Healthcare Funding Healthcare Systems
Government Funding Strategic Relationships
7
HIGH INDEXATION
THE REIT’S z Due to the long duration of most of Northwest’s leases; rents generally escalate each year
INTERNATIONAL z Within international markets ~99% of leases are indexed minimizing the impact of the current
inflationary environment
PORTFOLIO IS
z The international portfolio is also characterized by a weighted average lease term of 17 years
CHARACTERIZED BY A and occupancy of ~99% indicating long term stability in rental income
LONG WALE OF 17 z Canadian portfolio continues to increase percentage of inflation indexed leases. With shorter
YEARS AND 99% term leases, renewal spreads are in line with inflation.
INDEXATION WHICH
MINIMIZES THE IMPACT International Portfolio Indexation Canadian Portfolio Metrics
OF THE INFLATIONARY
ENVIRONMENT 100% 99% 99% 99%
91%
$1.2B 84%
AUM MOB
91% 5 Yr
Occupancy WALE
Brazil Europe ANZ USA Total
International
Portfolio
8
UK JV POSITIONED FOR COMPLETION
KEY METRICS & HISTORY TIMELINE
• 2020: 10 hospital portfolio acquired for
27% YOY AUM GROWTH SINCE 2020 ~$620M at a weighted average cap rate
$1B+ of ~6%
$980M
• 2021: Aspen acquisition and restructuring
$620M initiatives generated $150M+ of fair value
uplift. Cheshire Hospital acquisition of
$150M resulted in a regional AUM of ~$1B
2020 2021 2022
JV GROWTH STRATEGY
£600M (~$1B) ~5% 100%
UK Portfolio value - Of rents indexed
Portfolio cap rate
Achieving critical mass to inflation £600M (~$1B) £1.5B (~$2.5B)
Current AUM 3-5 yr AUM
100% +$350M
Occupancy Net Proceeds
LEADING UK PORTFOLIO WITH GREATER LONDON CONCENTRATION
9PLANNED US JV
ILLUSTRATIVE METRICS
~$750M 27 1.2M 5.5% Fully
Portfolio Assets Sq. Ft. GLA WACR Stabilized
OPPORTUNITY HIGH QUALITY PORTFOLIO
z Opportunity to expand global asset
management platform to a dynamic US
market generating significant fees and value
creation
z Targeting partnership with institutional sponsor
which is expected to lead to future growth
opportunities while reducing equity
requirements
>95% >10 Year >90%
Occupancy WALE Indexation
10GLOBAL JV FORMATION DRIVES NAV GROWTH
Pre-2020 2020-2022 2022+
Region
Capital
Partner(s)
TBD
Target
AUM($B) +$6.2B ~$5.0B ~$3.5B
Valuation* $400M $225M $125M
$625M $750M
UK + US JV
Current Valuation Target Valuation
11
* Based on implied 13x Year 1 Manager EBITDA mutlipleBALANCE SHEET OPTIMIZATION
Proforma LTV
Forecast
-320 bps
YoY 54.2%
52.1%
49.6% 49.8% 48.8%
48.5%
44.7%
47.5% 42.1%
44.3% 43.8%
43.1% 42.5%
41.9%
37.6%
35.3%
Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 US Acquisition UK & US JV Series G
& Sub events Conversion*
Consolidated Proportionate
Net
Debt/EBITDA
8.5x 9.8x ~7.0x
JV formation in the UK and US
and debt optimization results in
Floating improved metrics
Rate 64% 21%
Exposure
12
* Assumes Series G debentures are in the money and convert to equity at a strike price of $13.35GLOBAL HEALTHCARE PRECINCT STRATEGY
1 Intersection of
NORTHWEST IS healthcare,
HEALTHCARE AT THE CORE
INVESTING IN THE CORE education, and life
science
OF HEALTHCARE,
RESEARCH AND
2
KNOWLEDGE Growing PROJECT PIPELINE EXPANDING
PRECINCTS Opportunity WITH POTENTIAL VALUE OF $2.5B
3
Differentiated ATTRACTIVE RISK ADJUSTED
Return Profile RETURNS
13FINANCIAL HIGHLIGHTS
14FINANCIAL DASHBOARD
Q1-21 Annualized Q1-22 Annualized
AFFO/unit (5) $0.83/unit $0.84/unit
LTV (6)/
44.3% / 52.1% 42.5% / 48.8%
Proportionate LTV
NAV (7) $12.77/unit $14.73/unit
Accretive JV Debt
Developments Deployment Repayment
15DELIVERING NAV GROWTH
15% YOY NAV/UNIT GROWTH ON PRIMARILY DRIVEN BY FAIR VALUE GAINS
$0.44 ($0.24)
$1.82 ($0.06)
$14.73
$12.77
Q1-21 NAV/Unit IPP revaluation Global Manager FX Other Q1-22 NAV/Unit
NAV growth driven by +$300M fair value gains & ~$100M valuation uplift from AUS JV expansion
Global Asset
Institutionalization Development
UK & US Joint Management
of Healthcare
Venture Initiatives Platform Accretion
Real Estate
Expansion
16EVOLUTION OF ASSET MANAGEMENT PLATFORM
SUCCESSFUL HISTORICAL CHART OF AUM AND OWNERSHIP
EXECUTION OF UK & US $12B
$10.3B $10.3B
100%
90%
JV WILL RESULT IN $10B
70%
$9.2B
80%
$6.5B $7.8B $5.4B
70%
LOOK-THROUGH $8B
56%
57%
60%
61% 48% 60%
OWNERSHIP $6B $3.4B $4.B
$4.1B 50%
$4.1B 40%
DECREASING TO ~48% $4B
$2.5B
30%
$1.2B
$6.2B
$5.2B $4.9B 20%
$2B $4.B $4.4B
$2.9B 10%
$B 0%
2018 2019 2020 2021 Q1 2022 PF Post UK &
US JV
Owned AUM Third Party AUM Look-through Ownership
BASE FEES CAGR OF ~29% RETURNS COMPARISON
$6,500M $100.M $100
$6,000M $5.9B $90.M Investment Direct JV
$5,500M (5% Cap Rate)
$80.M
$4.9B
$5,000M $68.7M Ownership 100% 30%
$70.M
$4,500M LTV 65% 65%
$60.M
$4,000M $47.5M Interest Rate ~3%
$3.3B $50.M ~3%
$3,500M $40.7M
$40.M NOI $5 $1.5
$3,000M $29.9M $22.4M
$30.M Fees N/A $0.4
$2,500M
$13.M Interest Expense ($1.9) ($0.6)
$2,000M $20.M
$25.1M $28.M
$1,500M $16.9M $10.M Total Return $3.1 $1.3
$1,000M $.M Equity Required $35 $10.5
Q1 2020 LTM Q1 2021 LTM Q1 2022 LTM
Base Fees Other Fees AUM ROE 9% 12%
17SIGNIFICANT VALUE CREATION IN GLOBAL ASSET MANAGER
Total Deployed & Available NWH
$B Status Term
~$11B OF ACTIVE Active
Capacity Committed Capacity Ownership
Australian Core
GLOBAL CAPITAL Hospital JV
Active $3.5 $3.2 $0.3 30% Perpetuity
COMMITMENTS Australian JV
Active $2.2 - $2.2 30% Perpetuity
Expansion
DRIVING SIGNIFICANT
Vital Active $2.7 $2.7 Open 27% Perpetuity
VALUE CREATION IN
European JV Active
THE REIT’S ASSET $2.8 $0.5 $2.3 30% 12 Years
MANAGER Total Commitments ~$11 $6.4 $4.8
Under
UK Healthcare Fund $2.5 $1.0 $1.5* 20%-30% +10 Years
Negotiation
Under
US Co-investment $0.8 $0.8 - 30%-50% Perpetuity
Negotiation
Global Healthcare
Preliminary $5.0 - $5.0 ~30% TBD
Precinct Fund
Under
Negotiation Total ~$20 $8.2 $11.3
$125M
$100M
$750M
$625M
$525M
Q4-21 AUS JV Expansion Q1-22 Under Negotiation Proforma
Valuation Valuation
AUM ($B) $9.0 $2.2 $11.2 $3.3 $14.5
18
* Capacity net of seed portfolioPROPORTIONATE INCOME STATEMENT
DEFENSIVE OPERATING
PERFORMANCE AND
ACCRETIVE INVESTMENT Increase driven by SPNOI
ACTIVITY COMBINED growth and investment activity
WITH MANAGEMENT Driven by increased
FEE GROWTH DRIVES deployment within global
asset manager
FINANCIAL RESULTS
10 bps
2.2% +21%
Reduction in
SPNOI Growth Base Fees
WAIR to 3.3%
19PROPORTIONATE BALANCE SHEET
~15% NAV PER UNIT
GROWTH DRIVEN BY
IMPROVED PROPERTY Includes +$300M Fair
VALUATIONS, $100M Value Gain
UPLIFT IN THE GLOBAL
MANAGER AND 320 BPS
OF DELEVERAGING
~$550M
Equity Issuance primarily
deployed towards
deleveraging
3.3% ~15% ~320 bps
WAIR NAV/Unit Growth LTV Reduction
20RISK MANAGEMENT – FOREIGN EXCHANGE
OVER A 15 YEAR
PERIOD, THE REIT’S
NOI WEIGHTED
FOREIGN EXCHANGE
INDEX HAS REMAINED
RELATIVELY STABLE
RENTAL INDEXATION
ACTS AS NATURAL
CURRENCY HEDGE
PORTFOLIO SECURED
WITH LOCAL
CURRENCY DEBT
WHEREVER POSSIBLE
TO MINIMIZE FX RISK • Canada: FFX X • Europe: FX volatility • Au
Australia:
stra
st
tralililia
a: FX
appreciation due to expected due to appreciation due to
flight to stability regional conflict proximity to China’s
economic recovery
• Brazil: FX appreciation • UK: Stable FX due to
due to rising global greater certainty and • New Zealand: FX
commodity prices flight to stability within stability expected since
driven by the Europe the country is relatively
inflationary environment insulated from regional
conflicts
21GLOBAL HEALTHCARE
TRENDS
22HEALTHCARE TRENDS IMPACT ON HEALTHCARE REAL ESTATE
HEALTHCARE TRENDS are driving real estate opportunities.
Outpatient / Increased
Aging Operator Increasing
Urbanization funding
population home care consolidation asset size
needs
Limited
Positive Positive Positive Positive Positive
Hospitals impact
Outpatient / Positive Positive Positive Positive Positive Positive
Medical Office
Limited Limited
Care Positive Positive Positive Positive
impact impact
Facilities
Life Sciences Positive Positive N/A N /A Positive Positive
/ Research
23INVESTMENT ACTIVITY
24CONSOLIDATED INVESTMENT ACTIVITY
2022 TRANSACTIONS
TYPE REGION C$M
US Portfolio Acquisition Acquisition US 753
Normal Course Acquisitions Acquisition Various 125
CHESHIRE HOSPITAL UNITED KINGDOM
Total 878
2021 TRANSACTIONS
HIGHLIGHTED
TYPE REGION C$M
TRANSACTIONS
AUSTRALIA GERMANY
Netherlands MOB Acquisition NL 176
Australian Unity
M&A AUS 127
Acquisition
Cheshire Hospital Acquisition UK 153
Epworth Geelong &
Acquisition AUS 117
ELIM Hospital
NORMAL COURSE
TYPE REGION C$M
TRANSACTIONS
Normal Course Acquisitions Acquisition Various 347
Normal Course Dispositions Disposition Various 55
Total 975
25COMMITTED DEVELOPMENTS
• ~$304.1M (fully consolidated; $128.8M proportionate) of committed low risk development &
THE REIT IS expansions in Australasia, Europe, Brazil and Canada to be funded through a combination of
existing resources and property financing
LEVERAGING ITS
$232.7M ($64.1M proportionate) of Australasian hospital and MOB expansions
SIGNIFICANT $18.5M ($11.9M proportionate) of European developments
EXPERTISE AND $28.9M of Brazilian hospital expansions
$24.0M of Canadian MOB development
EXPERIENCE WITHIN
THE INDUSTRY TO
Anticipated
Cost to Pre-Leased
DELIVER AN Country (8) Projects Est. Completion Project Cost Project
Complete Occupancy
Yield
ADDITIONAL $304M
OF VALUE 11
Q2 2022 to
232.7 184.5 74% 6.1%
Q4 2024
ENHANCING
PROJECTS TO ITS
2 Q2 2022 18.5 3.2 90% 5.2%
PORTFOLIO
THE REIT’S 2
Q2 2022 to
28.9 28.9 100% 7.5%
Q4 2022
DEVELOPMENT
PIPELINE OF $2B
1 Q3 2022 24.0 5.1 62% 7.1%
DRIVES FUTURE
GROWTH
16 304.1 221.7 76% 6.3%
Note: represents post-quarter close development metrics
26PORTFOLIO OVERVIEW
27ASSET MIX BY REGION AND SEGMENT
ON A PROPORTIONATE PROPORTIONATE NOI DIVERSIFICATION
BASIS HOSPITALS Q1 2022 Q1 2022
Life
ACCOUNT FOR 60% OF Australasia
Canada Hospital and Sciences
25% 2%
26% Healthcare
NET OPERATING 27%
Facilities 2%
Q1 2021 27% Q1 2021
INCOME 60%
61%
REGIONS ASSET MIX
INCREASING FOCUS 37%
38%
17% MOB
18%
ON HEALTHCARE 29% Brazil
31%
INFRASTRUCTURE,
Europe
INCLUDING
ACUTE/POST ACUTE Detailed Segment Breakdown
HOSPITALS AND
AUS NZ BRL CAD GER NL UK
RELATED BUILDINGS IN
EACH OF ITS MARKETS Acute hospitals
Post-acute hospitals
MOBs
Aged care
LLife Sciences
High Priority Low Priority
28STRATEGIC RELATIONSHIPS AND TENANT DIVERSIFCATION
STRATEGIC RELATIONSHIPS ALLOWING FOR BEST-
TOP 10 TENANTS BY GROSS RENT(9)
IN-CLASS PERFORMANCE
TENANT REGION % GROSS RENT • Alberta Health Services (6
Locations): Largest provincial
1
healthcare provider to 4.3 M
Healthscope
He
e Limited 13.9% Albertans
2
Rede
Re
e D’or 8.0%
3
Epworth
Ep
p Foundation 5.9%
4
Aurora Healthcare
A
Au 4.8% • Median (5 Transactions): Germany’s
largest private provider of
5
rehabilitation services
Nuffield Health
N
Nu 4.7%
6
HealtheCare
He
e 3.5%
7
Circle
C i Health Group 2.3%
• Epworth Foundation (7 transactions):
8 The largest not-for profit hospital
Evolution
Ev
v Group 1.9% operator in the Australian state of
Victoria
9
Median Kliniken
M 1.5%
10
Spire
SSp
p Healthcare 1.2%
• Rede D’Or (7 transactions):
Top 10 Tenants 47.7% Brazil’s leading hospital
operator
29CASE STUDY – EPWORTH EASTERN HOSPITAL, MELBOURNE
NON-FOR-PROFIT PRIVATE
HEALTHCARE GROUP THAT
RAISES FUNDS TO
PURCHASE ADVANCED
MEDICAL EQUIPMENT,
NorthWest has supported Epworth over 15+ years with expansion opportunities, advice and capital. Developments
FUND RESEARCH AND have added to the quality & value of assets, driving operational benefits & efficiencies that attract practitioners.
PROVIDE BEST POSSIBLE 2003-05 2014-17 2017-21
CARE TO PATIENTS Private hospital
Public and private hospitals Eastern Private Hospital
development leads to
EPWORTH EASTERN IS A drive health precinct announces major expansion
formation of precinct
LEADING HOSPITAL WITH
223 BEDS AND STATE OF • Development of Epworth Eastern • Acquisition of Ekera Medical Centre • $125m expansion of Epworth
Hospital (private) increases NorthWest assets in Eastern Hospital
THE ART EQUIPMENT AND • Establishes operator relationship precinct • Construction is in progress and
with Victoria’s largest not-for-profit • Strategic acquisition of adjacent site remains on target for late 2021
TECHNOLOGY private healthcare group for private hospital expansion completion.
• Public and private hospital co- • Public hospital major expansion • Epworth Eastern Hospital at
location further attracts specialists • Council designated ‘Education and capacity for 3 years
• Begins to drive early stage precinct Health precinct’ – targeted as a • New 30-year lease term over entire
formation high growth area with increased expanded hospital
density
30INVESTMENT OPPORTUNITY
31NORTHWEST OVERVIEW
GLOBAL HEALTHCARE REAL ESTATE INVESTMENT PARTNER
Global Dynamic
Capital Capital
Relationships Allocation
Accretive Strategic
Acquisition
Opportunities
NWH.UN Operator
Partnerships
Regional LISTED Brownfield
Operating Development
Platforms
TSE Opportunities
Healthcare Long Term
Precincts in Indexed
Urban Locations Leases
32ENVIRONMENTAL, SOCIAL AND GOVERANCE
NWH is committed to creating a more sustainable future through the implementation of a
comprehensive ESG program underscored by four key pillars resulting in key 2022 commitments:
Inclusive Company Thriving Partners Strong Communities Healthy Planet
Building for our current Preparing lasting Investing in the Deepening our
team members as well as tenant spaces for health communities we serve contribution to a
our future employees and healing healthy planet
• Establish a globally • Formalize a global survey • Pledge a contribution of • Achieve Net-Zero GHG
consistent employee for all tenants with an $5M in support of emissions by 2050. Over
experience with an ambition to achieve top academic research about the next 12 to 24 months,
ambition to achieve top quartile performance on the impacts of the we will round out our
quartile NPS tenant NPS pandemic on health baseline on emissions
performance systems across the world and establish a science-
• Define a three-year
based 2030 interim
• For every open senior schedule to complete air • Launch an employee
reduction target
leadership position and quality and wellness volunteer program
for as many other open reviews for 100% providing two days per • Conduct energy audits
positions as possible, landlord-controlled year of paid time off to across 100% of landlord-
with a goal of 90%, properties further support the controlled properties,
Consider at least one communities NWH serves helping to further inform
• Collaborate with tenants
woman or one minority energy reduction and
on sustainable
in the slate of conservation actions
construction guidelines
candidates
for renovations and • Submit to GRESB
• Deploy targeted developments evaluation
sustainability training
33INVESTOR FACTSHEET
Ticker NWH.UN
Listed Exchange TSX
Distribution Payable Monthly
40% Other Income/
Distribution Type 46% Return on Capital/
14% Capital Gain
Unit Price (May 12, 2021) $12.53
Market Capitalization ~$3.0B
Distribution Yield 6.4%
52-Week Trading Range $12.35-$14.42
Volume Weighted Avg. Price (VWAP) (20-day) $13.57
Average Daily Volume (90-days) ~917,000
NAV/Unit (Q1 2022)(7) $14.73
34NOTES
1. Based on NWH.UN’s closing unit price of $12.53/unit as of May 12, 2022.
2. Based on the REIT’s distribution policy of $0.80/unit per annum and Q1-2021 annualized AFFO/Unit of $0.84
3. Based on total assets under management of NWH pro-formal completion of the US portfolio acquisition, Vital Trust on a fully
consolidated basis including post-quarter acquisitions. NWH owns a 27.5% interest in Vital Trust.
4. The pie chart fully reflects consolidated NOI and includes i) post- quarter acquisitions ii) 100% of NOI from Vital Trust and iii) 100% of the
NOI from the REIT’s institutional JVs including the Healthscope portfolio and European JV.
5. AFFO/unit is based on annualized Reported AFFO/unit and adjusted for acquisitions, and financings as presented in the REIT’s –Q1 2022
MD&A PART III.
6. LTV includes convertible debentures and is shown on a fully consolidated basis (Vital Trust at 100%) and includes the HSO portfolio
accounted for using the equity method.
7. NAV is based on unitholder’s equity plus add-backs as set out in Part XII in the REIT’s Q1 2022 MD&A.
8. Presented on a fully consolidated basis. Assuming projects are 100% debt funded at the existing region’s financing costs and is for
indicative purposes only.
9. Gross rent on a fully consolidated basis.
35NON-IFRS MEASURES
Non-IFRS measures defined in Q4 2021 MD&A
1. FFO
2. AFFO
3. FFO per Unit
4. AFFO per Unit
5. AFFO Payout Ratio
6. EBITDA
7. Adjusted EBITDA
8. Investment Properties on a proportionate basis
9. Proportionate Management Fees
10. Interest Coverage
11. Cash Flows from Operation Activities Attributable to Unitholders
12. Distributions
13. Net Asset Value (“NAV”)
14. Constant Currency Same Property NOI (”Same Property NOI”/“SPNOI”)
36CONTACT INFORMATION
NORTHWEST HEALTHCARE PROPERTIES REIT
Paul Dalla Lana, Chairman & CEO
pdl@nwhreit.com
416-366-2000 Ext. 1001
Shailen Chande, CFO
shailen.chande@nwhreit.com
416-366-2000 Ext. 1002
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