Northwest Healthcare REIT (TSX:NWH.UN) is a Toronto-based real estate investment trust (REIT) that owns and operates a global portfolio of high-quality healthcare real estate. The stock has been hit hard by turbulence after it was forced to scuttle plans to create a United Kingdom-based joint venture with an institutional investor. Despite this setback, Northwest has maintained its faith in U.K. healthcare real estate fundamentals. This recent retreat should not sour investors on this exciting REIT going forward.
Today, I want to discuss why Northwest Healthcare is a super steal in late June.
How has this dividend stock performed over the past year?
Shares of Northwest Healthcare REIT dropped 3.22% on Thursday, June 22. This top REIT has now plunged 30% in the year-to-date period at the time of this writing. Investors can take a closer look at its performance with the interactive price chart below.
Before we get into the company’s recent earnings, it is worth reviewing the overall health of the healthcare real estate sector. Indeed, healthcare real estate has performed extremely well in the months and years that have followed the worst of the COVID-19 pandemic. Spending on healthcare construction has increased significantly in the first half of the 2020s. Canadian investors should be eager to buy and hold a top stock in this exciting space.
Should investors be pleased with Northwest’s recent earnings?
Northwest Healthcare REIT released its first-quarter (Q1) fiscal 2023 earnings on May 12. The REIT delivered revenue growth of 29% year over year to $135 million. Meanwhile, it reported adjusted funds from operations (AFFO) of $0.17 while same-property net operating income (NOI) posted 4.4% growth largely due to annual rent indexation. Moreover, the REIT reported strong portfolio occupancy of 97% with its international portfolio delivering 98.2% portfolio occupancy.
Total assets under management (AUM) climbed 13% year over year to $10.8 billion in the first quarter of fiscal 2023. Meanwhile, net asset value (NAV) per unit slipped 1.4% to $13.16. The number of properties owned by Northwest rose to 233 in Q1 fiscal 2023 — up from the 202 properties it owned in Q1 fiscal 2022.
This dividend stock is on track for very strong earnings growth going forward. Moreover, analysts are still largely bullish on the future of this healthcare-focused REIT.
Here’s why this dividend stock is a steal today!
Shares of Northwest Healthcare REIT are currently trading in favourable value territory compared to its industry peers. The Relative Strength Index (RSI) is a technical indicator that measures the price momentum of a given security. This REIT last had an RSI of 22. That puts Northwest Healthcare REIT well in technically oversold territory at the time of this writing. Now is a terrific time to snatch up this dividend stock on a very sharp dip.
Speaking of the dividend stock, Northwest Healthcare REIT is an income beast that has few equals on the TSX. This REIT currently offers a monthly distribution of $0.067 per share. That represents a monster 12% yield.
