q1 2016 investor update - NorthWest Healthcare Properties

Q1 2016
INVESTOR UPDATE
May 12, 2016
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 (the “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 financial results, in-place and contracted run rates, payout ratios and other metrics; (ii) the REIT’s property portfolio, cash flow and growth prospects, (iii) liquidity, leverage
ratios, future refinancings, fees earned by the asset manager to Vital Trust, anticipated capital expenditures, future general and administrative expenses, including estimated
synergies and contracted acquisition and development opportunities, and (iv) the REIT’s intention and ability to distribute available cash to security holders.
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) the REIT
successfully realizing the operational and financial benefits described herein, including the realization of synergies, completion of anticipated acquisition and development
opportunities, and generation of cash flow; and (ii) general economic and market factors, including exchange rates, local real estate conditions, interest rates and 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 risks related to increases or decreases in the prices of
real estate; currency risk; project development, expansion targets and operational delays; marketability; additional funding requirements; governmental regulations, licenses and
permits; environmental regulation and liability; competition; uninsured risks; contingent liabilities and guarantees, including the outcome of pending litigation; litigation; health and
safety; trustees’ and officers’ conflicts of interest; the ability of the REIT to integrate the operations of NWI; the ability of the REIT to continue to develop and grow; and management
of the REIT’s success in anticipating and managing the foregoing factors, as well as the risks described in the Circular and the AIF. The reader is cautioned that the foregoing list of
factors is not exhaustive of the factors that may affect forward-looking statements. Other risks and uncertainties not presently known to the REIT or that the REIT presently believes
are not material could also cause actual results or events to differ materially from those expressed in its forward-looking statements. Additional information on these and other factors
that could affect the operations or financial results of the REIT are included in reports filed by the REIT with applicable securities regulatory authorities.
These forward-looking statements, which reflect the REIT’s expectations only as of the date of this presentation. The REIT disclaims any obligation to update or revise any forwardlooking 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”) and net operating income (“NOI”) are not measures recognized under International Financial Reporting
Standards (“IFRS”) and do not have standardized meanings prescribed by IFRS. FFO, AFFO and NOI are supplemental measures of a real estate investment trust’s performance and the
REIT believes that FFO, AFFO and NOI are relevant measures of its ability to earn and distribute cash returns to unitholders. The IFRS measurement most directly comparable to FFO,
AFFO and NOI is net income. A reconciliation of NOI, FFO and AFFO to net income 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, 2016, as filed on SEDAR.
1
CORE HEALTHCARE INFRASTRUCTURE IN MAJOR MARKETS
TORONTO
NorthWest Healthcare Properties Real
AUCKLAND
Estate Investment Trust (TSX: NWH.UN)
SÃO PAULO
provides investors with access to a portfolio
of high quality international healthcare real
estate infrastructure located throughout
major markets in Canada, Brazil, Germany,
B E R L I N
SYDNEY
Australia and New Zealand.
ESTABLISHED RELATIONSHIPS WITH LEADING HEALTHCARE OPERATORS
NWH AT A GLANCE
1.
2.
3.
7.8M
120
$2.7BN
SQUARE FEET
PROPERTIES
TOTAL ASSETS
96.1%
10.1
7.3%
OCCUPANCY (3)
YEAR WALE (3)
IFRS CAP RATE
$785M
8.2%
MARKET CAP
DISTRIBUTION YIELD
(1)
NOI
DIVERSIFICATION (3)
REGIONS
ASSET MIX
92.0%
(1)
PAYOUT RATIO (2)
2
Based on NWH.UN’s closing unit price of $9.77/unit as of May 11, 2016 and market cap includes the recent equity issuance dated April 2016.
Based on the REIT’s distribution policy of $0.80/unit per annum and is based on normalized Q1-16 AFFO of $0.87/unit.
Occupancy, WALE, and NOI diversification metrics are consolidated and exclude the 5 assets held for sale in Canada and include Vital Trust management fee income. NOI diversification is based on 24.5% proportionate ownership of Vital Trust.
DASHBOARD
As Reported


AFFO/unit (1)
LTV (2)
NAV (3)
Occupancy
/ WALE (4)
Deliver stable property
operating performance, cash
flow and distributions
Normalized

Reflects impact of completed
transactions
Capital markets seasoning
Run Rate


9 – 12 month target
Renewed emphasis on capital
allocation – target 50%
International asset mix
$0.87/unit
$0.87/unit
49.2% / 55.6%
47.3% / 53.5%
~50.0%
$10.60/unit
~$10.60/unit
~$11.00/unit
96.1%
10.1 years
96.1%
10.1 years
~96.0%
~10.5 years
$0.90 to $0.95/unit
Portfolio
Quality
1.
2.
3.
4.
Reported AFFO/Unit represents total AFFO on a weighted average basis for the twelve month period ending March 31, 2016. The normalized/run rate is based on Q1-16 AFFO/unit annualized.
LTV excluding and including convertible debentures is 49.2% and 55.6% respectively, both metrics are shown on a fully consolidated basis (Vital Trust at 100%).
NAV represents adjusted NAV, which is based on net equity plus add-backs of deferred tax liability including LTT accrual, net derivative financial instruments, DUP liability, and an adjustment to the
Vital intangible asset.
Occupancy and WALE metrics have been adjusted to exclude the 5 assets held for sale in Canada.
3
DASHBOARD
GROSS BOOK VALUE (1)
ANNUALIZED AFFO / UNIT (2)
5x increase since inception(3)
$2,700m
10% increase since inception(3)
$2,711m
$572m
At inception(3)
$0.80
Q4‐2015
At inception (3)
Q1‐2016
OCCUPANCY
(1)
(2)
(3)
Q1‐2016
Long‐term Stability
96.1%
90.7%
At inception(3)
FY2015
$0.87
WEIGHTED AVERAGE LEASE EXPIRY
International Portfolio above 98%
95.9%
$0.82
10.0
10.1
Q4‐2015
Q1‐2016
4.0
Q4‐2015
Q1‐2016
At inception(3)
Defined as total assets.
Represents reported AFFO/unit. At inception based on distributions of $0.20/unit and reflects actual payout ratio for Dec 31, 2010 of ~100%.
At inception represents metrics for NorthWest Healthcare Properties based on the IPO prospectus dated of March 25, 2010.
4
TRANSFORMATIONAL 2015

Strategic
International
Growth

Operational
Strength

Scalable Platform

Defensive
Healthcare Assets
Canadian Medical Office Building (MOB) Consolidation
Positioned for
Growth
Improved
Market Profile
Defensive High
Quality Portfolio

Core Healthcare Focus

Increase in Market cap.

Aligned & Integrated Global Platform

Major Global Markets

Reduced Payout Ratio

Leverage Institutional Relationships

Asset & Capital Diversification

Reduced Leverage

Identified Expansions and Developments

Improved Portfolio Metrics

Increased NAV

Actionable Acquisition Pipeline
5
2016 GOALS
2015
RESULTS



$1.3B International Merger with
NorthWest International
‐ Exposure to high-growth
international markets with a
core healthcare focus
‐ Asset and capital
diversification
‐ Improved portfolio metrics
Positioned for growth
‐ Aligned and integrated
global platform
‐ Identified expansions and
developments
‐ Actionable acquisition
pipeline
Reduced portfolio risk
‐ Increased scale and
diversification
‐ Major market focus
(Substantially completed
Canadian dispositions)
‐ Shift to core healthcare
asset classes – MOB’s,
Clinics, Hospitals, Aged Care
2016
GOALS
TARGET

Provide Stable & Defensive Operating Results
‐ Inflation indexed triple-net rents
‐ Stable & improving occupancy levels
‐ Focus on core healthcare tenancies

$5.0BN Portfolio
‐ Leading position in each
core market
‐ Increased focus on core
healthcare infrastructure

Grow leading international platforms:
‐ Australasia: Strategic growth
‐ Brazil: Focus on AAA assets
‐ Canada: Asset management & development
‐ Germany: Continue MOB consolidation

Achieve differentiated valuation
‐ Capital markets seasoning
‐ Improve market profile
‐ Healthcare real estate
warrants a premium
valuation – US experience

Establish institutional capital relationships
‐ A “healthcare moment”
‐ Leverage leading management platform
‐ Drive incremental fee revenue

Defensive financial profile
‐ Target ~80% AFFO payout
‐ Target ~40% LTV
~85%
Payout Ratio
~50%
LTV
6
~$11.00
NAV/Unit
INVESTMENT HIGHLIGHTS
Supportive
Fundamentals
Favourable demographics and industry trends including aging
populations and rising healthcare expenditures
Attractive
Asset Class
Defensive portfolio comprising core healthcare infrastructure
located in global gateway cities supported by robust healthcare
systems and leading operators
Growth
Opportunities
Significant internal and external growth prospects underpinned
by inflation indexed leases, accretive captive expansions and
industry consolidation
Value
Opportunity
Proven &
Aligned
Currently trading at a discounted AFFO multiple and P/NAV
relative to Canadian REITs and healthcare real estate peers
10+ year public company history with highly aligned founder and
management team
DEFENSIVE, HIGH YIELDING SECURITY WITH GROWTH POTENTIAL
7
F I N A N C I A L OV E RV I E W
8
FINANCIAL HIGHLIGHTS
Q1-16
Q1-16
As Reported
Normalized
NOI
$44.7M
$45.3M
FFO
$16.1M
$18.0M
AFFO
$15.7M
$17.6M
W.A Units
Outstanding (1)
72,153
80,773
AFFO / Unit
$0.22/unit
$0.22/unit
Payout Ratio
~92.0%
~92.0%
LTV (2)
49.2% / 55.6%
47.3% / 53.5%
Net Asset Value / Unit
$10.60/unit
$10.60/unit
POSITIVE FINANCIAL
OPERATING RESULTS IN
LINE WITH
MANAGEMENT
GUIDANCE
NORMALIZED RESULTS
HAVE BEEN ADJUSTED
TO REFLECT THE
IMPACT OF RECENTLY
COMPLETED
TRANSACTIONS
NORMALIZATION ADJUSTMENTS

Normalization adjustments principally relate to:
‐
Acquisition of Mehrower Allee in Germany, a medical office complex comprising of 82,000 sf
‐
Repayment of Brazil debt of 10.3% using proceeds from the April 2016 equity offering
‐
Refinancing of eligible Canadian properties to a lower weighted average interest rate of ~3.0% from ~5.5%
‐
Accrued rent to Q1 2016 based on contract rental indexation adjustments in Brazil and Australia/New Zealand
‐
Non-recurring items that will not have an on-going impact in future quarters
9
1.
2.
Units outstanding has been adjusted in the normalized case for subsequent unit activity with the NCIB and DUP programs.
LTV excluding and including convertible debentures is 49.2% and 55.6% respectively, both metrics are shown on a fully consolidated basis (Vital Trust at 100%).
REGIONAL DASHBOARD
C A N A D A
NOI Growth
Occupancy
WALE
(1)
B R A Z I L
STRONG
RELATIONSHIPS WITH
LEADING OPERATORS
LEADING MEDICAL
OFFICE PLATFORM
1.0%
91.4%
4.6YR
Occupancy
WALE
AUSTRALASIA
LEADING PUBLICLY
LISTED HEALTHCARE
TRUST
NOI Growth (1)
Occupancy
WALE
1.
NOI Growth (1)
10.6%
100%
21.0YR
GERMANY
3.8%
99.5%
17.3YR
NOI Growth (1)
Occupancy
WALE
5.8%
94.6%
4.9YR
CONSOLIDATION OF
MEDICAL OFFICE
BUIDLINGS
Represents same property NOI growth (“SPNOI”) for the twelve months ended March 31, 2016 in source currency. For Australia, reported same store NOI growth is ~16.0%, however, this has been
adjusted to remove the additional rent received from the completion of brownfield projects. For Germany, reported same store NOI growth is 9.8%, however, this includes seasonality in relation to
operating expenses. For Canada, reported same store NOI growth is 0%, however, this includes a bad debt provision of ~$180K.
10
SEGMENTED FINANCIAL INFORMATION
Canada (1)
Brazil
Germany
Australasia(2)
Vital Mgr.
Corporate (3)
Combined
NORMALIZED INCOME SUMMARY:
NOI
$19.2
$7.7
$2.6
$15.3
Nil
Nil
$44.7
FFO
$12.5
$5.5
$1.4
$1.9
$2.2
($7.4)
$16.1
AFFO
$9.6
$6.0
$1.3
$1.9
$2.4
($5.5)
$15.7
$1,240.5
$377.7
$159.7
$842.8
$58.8
$45.1
$2,712.5
Adjusted Liabilities (4)
$729.5
$93.7
$81.5
$715.3
Nil
$339.9
$1,959.8
Net Assets
$511.0
$284.0
$78.2
$127.6
$58.8
($300.0)
$764.7
BALANCE SHEET SUMMARY:
Gross Assets
1.
2.
3.
4.
Reflects a full quarter of normalized income for the Canadian region for the three months ended March 31, 2016.
Represents Vital Trust on a fully consolidated basis.
Includes goodwill related to the business combination and Corporate debt including the four series of convertible debentures.
Total liabilities have been reduced by the REIT’s proportionate share of its deferred tax liability, derivative financial instruments, deferred unit liability, and an adjustment to the fair value of the Vital
Manager to arrive at adjusted liabilities.
11
CAPITALIZATION
Market
Capitalization
$785M
Enterprise Value
$2.0BN
IFRS Gross Book
Value
$2.7BN
LTV
(Excluding
Convertibles)
49.2%
55.6%
W.A. Interest
Rate
4.69%
% Fixed
1.
2.
% of debt maturing LTV
(Including
Convertibles)
% Unsecured
DEBT MATURITY PROFILE (1)
6.6%
15.1%
12.9%
22.8%
19.9%
22.7%
REGIONAL DEBT STRATEGIES
16%
84%
Type
Asset Level
Term Debt
Bank Loans and
Securitization
Asset Level
Term Debt
Asset Level
Revolving Debt
LTV
60%
80% (1)
70%
50%
~3.0%
~8.5%
~2.0%
~3.5%
25 years
10 years
50 years
Interest Only
Interest
Rates (2)
Amortization
12
Reflects the debt maturity profile as per the REIT’s Q1-16 MD&A and does not include deferred consideration.
Representative 5 year fixed interest rates. Brazil representative interest rate reflects market securitization terms and is subject to annual inflation adjustments.
QUARTERLY NAV/UNIT IMPACT


Canada
Brazil
Germany
Australasia
NOI increases
($8.6M)
$8.5M
-
$5.2M
-
$5.1M
Implied cap rate
changes
$8.9M
-
-
-
-
$8.9M
Other (1)
($4.9M)
($1.0M)
-
($3.9M)
-
($8.8M)
Total
($4.6M)
$7.5M
-
$1.3M
-
$4.2M
Per Unit
($0.06)
$0.10
-
$0.02
-
$0.06
Total
Value Attributable To:
1.
Other represents the combined $4.9M loss on the sale for the 8 assets sold during the quarter, the 1 asset sold subsequent to
the quarter, and the three assets under conditional contract, representing the balance of the Canadian disposition program. For
Vital Trust, it represents the non-controlling interest of ~75%.
13
‐
Canada: Strength in core GTA assets, partially
‐
Brazil: S&P credit rating upgrades for its
‐
Australasia/Vital Manager: Completion of
offset by weakness in Alberta
major tenant Rede D’Or, on the back of
US$2BN of private equity investment from the
Carlyle Group/GIC and improved rental
coverage ratios. NOI increases due to annual
indexed leases based on three months of
inflation at ~2.6%.
expansion projects in Q1-2016 coupled with
inflation indexed rents and strong market
reviews, continue to drive NOI growth.
Balanced currency environment
‐
Vital
Mgr.
millions
Growth across all regions
Offsetting currency gains/losses reflecting
diversified capital exposure during the quarter
‐
Brazil Real up by 4.4%
‐
Euro down by 2.3%
‐
New Zealand down by 5.4%
RISK MANAGEMENT – FOREIGN EXCHANGE
RENTAL INDEXATION
ACTS AS NATURAL
CURRENCY HEDGE
LOCAL CURRENCY
PROPERTY /
CORPORATE DEBT TO
REDUCE INVESTMENT
RISK
102.5
95.4
90.6
79.5
OVER A 10 YEAR
PERIOD, PORTFOLIO
INDEX HAS REMAINED
RELATIVELY IN-LINE
WITH ITS BASE VALUE
Mar-16
BRAZIL – SAME PROPERTY NOI GROWTH
CAGR
+7.7%
+0.4%
14
Currency depreciation in
Brazil has been offset by
annual rental indexation
P O R T F O L I O OV E R V I E W
15
PORTFOLIO OVERVIEW
CANADA
GERMANY
$2.7BN International Platform
Canada / Brazil / Germany / Australia & NZ
62 Medical Office Buildings
19 Medical Office Buildings
1,200 tenants
350 Tenants
2 Active Developments
2 Development Sites
Toronto
Berlin
BRAZIL
VITAL PROPERTY TRUST
São Paulo
Melbourne
Auckland
5 Hospitals /~900 Beds
New Zealand Listed Entity
2 Committed Developments
34 Properties
S&P Rated Tenants
1 Active Development
16
PORTFOLIO DIVERSIFICATION
DIVERSIFIED
PORTFOLIO IN
STRATEGIC
INTERNATIONAL
MARKETS AND STABLE,
CORE HEALTHCARE
REAL ESTATE ASSET
CLASSES
DIVERSIFIED TENANT
BASE WITH STRATEGIC
PARTNERSHIPS WITH
LEADING HEALTHCARE
OPERATORS IN LOCAL
MARKETS
NOI DIVERSIFICATION
BY GEOGRAPHY (1)
TOP 10 TENANTS BY GROSS RENT (2)
Tenant
Region
% of Gross
Rent
1
Rede D'Or SL
13.9%
Healthe Care
3.7%
Bantrel Corporation
2.9%
CLSC/CSSS
2.9%
Hospital Sabara
1.8%
Shoppers Drug Mart
1.4%
Lawtons Drugs
1.4%
Winnipeg Regional Health
1.3%
Alberta Health Services
1.3%
Province of Ontario
1.1%
2
3
4
5
6
NOI DIVERSIFICATION
BY ASSET MIX (1)
7
8
9
10
Top 10 Tenants
1.
2.
31.7%
In the REIT’s Q1-2016 MD&A, the diversification charts for the countries and asset mix are based on investment value and GLA respectively. The pie charts above reflect proportionate NOI, excluding the
assets held for sale and include Vital management fee income.
Gross rent has been adjusted to reflect the REIT’s 24.5% proportionate interest in Vital Trust as well as recording Hospital Sabara at its gross rent (before financing).
17
REPRESENTATIVE INVESTMENTS
Dundas-Edward
Centre
Assets
Size
Tenants
MOB + Hospital Admins /
Traditional Office
~410k Square Feet
Province of Ontario, Sick
Kids Hospital, and other
medical tenancies
Rede D’Or Hospital
Portfolio
Assets
Size
Tenants
German MOB
Portfolio
3 Hospitals
Assets
446 Beds / ~573k Square
Feet
Size
Hospital Operator Rede D’Or
S.L.
S&P “A-” Rated
Tenants
14 MOBs
~410k Square Feet
~200 Medical Practitioners
& Related Services
SportsMed Private
Hospital
Assets
Size
Tenants
1 Hospital
45 beds / expansion
potential
SportsMed
Cap Rate (1)
~6.0%
Cap Rate (1)
~9.2%
Cap Rate (1)
~6.4%
Cap Rate (1)
~8.0%
Occ.
~94%
Occ.
100%
Occ.
~95%
Occ.
100%
Lease Term
Rental
Increase
Acquisition
Date
~6 Years
Contract Rents
Jan 2011
Lease Term
Rental
Increase
Acquisition
Date
~25 Years
Lease Term
Annual Inflation Index
Dec 2013
18
1.
IFRS cap rates as at March 31, 2016.
~5 Years
Lease Term
Rental
Increase
Annual Inflation Index
Rental
Increase
Acquisition
Date
Jun 2014 & Aug 2014
Acquisition
Date
~17 Years
Annual Inflation Index
December 2010
NON-CORE ASSET DISPOSITIONS IN CANADA
THE REIT CONTINUES
TO FOCUS ON
BUILDING SCALABLE
PORTFOLIOS IN
GLOBAL GATEWAY
CITIES
RENEWED EMPHASIS
ON CAPITAL
ALLOCATION –
TARGET 50%
INTERNATIONAL
PORTFOLIO MIX
OVER TIME
 The REIT currently has identified 17 non-core asset dispositions
–
–
Combined IFRS value of ~$100M; Outstanding mortgages of ~$70M
Estimated net proceeds of ~$30M after transaction costs
 During the quarter the REIT made significant progress on its disposition program
–
–
–
Sold 8 assets in Q1-16 for ~$49M, consistent with IFRS values
Subsequently sold 1 asset on April 1, 2016
4 remaining assets under conditional contracts
CANADA
Q1-2016
CANADA
Proforma
PORTFOLIO
Q1-2016
PORTFOLIO
Proforma
SP NOI Growth
1.0%
2.0%
3.8%
4.3%
Occupancy
91.4%
93.6%
94.8%
96.1%
4.6
4.6
9.8
10.1
WALE
EXISTING PORTFOLIO (1)
PROFORMA PORTFOLIO (1)
19
1.
Based on NOI by region proportionally consolidated reflecting a 24.5% interest in Vital Trust and includes Vital Trust management fee income.
Redeployment of disposition proceeds is assumed to be in Brazil & Germany based on a 25/75 split, respectively.
50bps
130bps
0.3yr
ACCRETIVE DEVELOPMENT & EXPANSIONS
WITH A TRACK
RECORD OF
COMPLETING MORE
THAN $325M OF
DEVELOPMENT AND
EXPANSIONS, THE
REIT IS LEVERAGING
ITS EXPERIENCE TO
DELIVER AN
ADDITIONAL $117M
OF INCOME AND
VALUE ENHANCING
PROJECTS TO ITS
PORTFOLIO
 Completed 1 expansion projects in Australia during the quarter totaling ~$14M of costs
–
Completed Marian Centre in Perth, Australia; generating an incremental $1.4M in rent
 $117.2M of committed low risk development & expansions
–
–
–
$14.4M Australian hospital expansions to be funded through existing resources
$51.2M Brazil hospital expansions to be funded through a combination of existing resources and property financing
$51.6M Canadian development to be funded through property level financing
 $10.2M of stabilized net operating income
–
Potential to generate up to an incremental $0.05 of AFFO/Unit (1)
 $13.4M of stabilized value accretion
–
Potential to generate up to an incremental $0.17 of NAV/Unit (1)
Country
Projects
Est.
Completion
Project
Cost
Cost to
Complete
Pre-Leased
Occupancy
Project
Yield
Project
NOI
Potential
Value
Accretion
1
Q2 2016
14.4
8.2
100.0%
8.5%
1.2
1.4
2
Q4 2016 /
Q4 2018
512
51.2
100.0%
10.5%
5.4
7.5
2
Q3 2016
51.6
12.4
74.3%
7.1%
3.6
4.5
117.2
71.7
10.2
13.4
5
20
1.
Assuming projects are 100% debt funded at the existing region’s financing costs and is for indicative purposes only.
DEVELOPMENT PROJECTS – CANADA
Barrie Medical Centre
Barrie, ON
Toronto West Health Centre
Etobicoke, ON
Acquired in early 2015
Acquired in early 2015
Project cost ~$26.0M
Project cost ~$25.5M
Stabilized Yield 6.5%
Stabilized Yield 6.5%
Family Health Team Opened May 10, 2016
Completion Date Summer 2016
Ground-up development of a new ~80,000 SF
medical office building to house the Barrie
Family Health Team.
Existing redevelopment of a medical building complex,
consisting of two buildings of ~80,000 SF. Redevelopment
will be home to the Etobicoke Family Health Team.
21
ACQUISTION PROFILE – GERMANY
Asset under contract:
Purchase Price
~€13.5M (~C$19.6M)
# of Buildings
2x
Asset Type
Rentable Area
Occupancy
Building Age
Medical Office Buildings
82,000 sf
~97%
1985 – 2007
Lease Terms:
Cap Rate
WALE
~7.0%
~4.0 years
Tenants
53 tenants
(85% medical / 15% retail)
Lease Type
Double-net;
~80% with renewal options
Rental Growth
Inflation-indexed
22
S T R AT E GY & O U T LO O K
23
KEY DRIVERS OF HEALTH CARE REAL ESTATE
Aging Population


Consolidation & Cost
Savings


Scale required for efficiency and
quality
>65 population cohort growing
rapidly in developed countries
580mm people worldwide over 65 by
2018, ~10% of global population
Increased Healthcare
Spending

Rise of Public Private partnerships

$7.2 trillion global healthcare
spending
 10.6% of global GDP
Growing at 5.2% per annum
The Rise of Private
Healthcare


Budget pressures affecting the
sustainability of public healthcare
funding
Governments mandating lower costs
and improved quality
Growing Populations and
Wealth Creation


Emerging economies demanding
better access to quality care
Patients seeking more choice and
control
1. Source: Deloitte 2015 Global Healthcare sector outlook
COMPELLING NEED FOR CAPITAL, FACILITIES AND REAL ESTATE SOLUTIONS
24
HEALTHCARE REAL ESTATE OPPORTUNITIES
THE U.S. EXPERIENCE
$1 Trillion
Estimated U.S. Healthcare Real Estate Market Exceeds $1 Trillion
$100 Billion &
< 15%
Largest Healthcare REITs Acquired More Than $100 Billion over
Last 10 Years, But Still Owns Less than 15% of the Market
Return & Stability
Large U.S Healthcare REITs Historically Generated Better Returns
with Less Volatility
HISTORICAL NOI GROWTH OF “BIG 3 HEALTHCARE REITS (1)
6.0%
4.9%
3.7%
4.0%
2.0%
1.7%
1.5%
2007
2008
2009
2.0%
4.2%
3.3%
-2010
2011
(2.0%)
(4.0%)
1. Source: Green Street Advisors (May 2014)
Big 3 HC REITs
Major Sectors
25
2012
2013
RELATIVE VALUATION
AFFO MULTIPLE
THE REIT IS TRADING
AT A SIGNIFICANT
DISCOUNT TO ITS
PEERS ON BOTH AN
AFFO MULTIPLE AND
NET ASSET VALUE
BASIS
$15.57•
20x
$13.14 •
15x
15.1x
$9.77
10x
17.9x
$9.31•
10.7x
11.2x
0
Canadian REITS
(EV > $1BN)
NWH.UN
Internationally
Focused Canadian
REITS
US Healthcare
REITS (Top 5)
15.4%
5.7%
0
(3.6%)
$11.20 •
$12.23 •
$10.22 •
5%
(7.8%)
$9.77
PREMIUM / (DISCOUNT) TO NAV
• Implied Share Price
-
Based on NWH.UN’s closing unit price of $9.77/unit as of May 11, 2016 and normalized AFFO/Unit of $0.87 per year ($0.22/unit for the quarter)
NAV is based on Q1 2016 adjusted NAV/unit of $10.60
26
INVESTOR FACTSHEET
Ticker
NWH.UN Listed Exchange
TSX
Distribution Payable
Monthly
Distribution Type
100% Return of Capital for 2015
Unit Price
$9.77 (May 11, 2016)
Market Capitalization $785M
Distribution Yield
~8.2%
52‐Week Trading Range
$7.45 ‐ $9.77
Volume Weighted Avg. Price (VWAP) (20‐day)
$9.50
Average Daily Volume (20‐day)
143,000
NAV Q1‐2016 $10.60
27
CONTACT INFORMATION
NORTHWEST HEALTHCARE PROPERTIES REIT
Paul Dalla Lana, Chairman & CEO
416-366-2000 Ext. 1001
Vincent Cozzi, President & CIO
416-366-2000 Ext. 1005
Shailen Chande, VP – Investments
416-366-2000 Ext. 1106
28
A P P E N D I X
1
REGIONAL PORTFOLIO
OVERVIEWS
29
PORTFOLIO PROFILE
COMBINED
PORTFOLIO
COMPRISES 120
PROPERTIES
TOTALING 7.8MM
SQUARE FEET OF GLA
IN FIVE COUNTRIES
STRONG OPERATING
FUNDAMENTALS
WITH OCCUPANCY OF
~96%, WALE OF ~10
YEARS AND 61% /
39% MOB/HOSPITAL
MIX
GLOBAL HEALTHCARE REAL ESTATE INFRASTRUCTURE
Canada
Q1 2016
Brazil
Germany
Australasia
(1)
Combined
Platform
Core
Platform
Total
NonCore
Core
Number of
Properties
62
5
57
5
19
34
120
115
Asset Mix (2)
100%
MOB
100%
MOB
100%
MOB
100%
Hospital
100% MOB
~15% MOB /
~85% Hospital
67% MOB /
33% Hospital
61% MOB /
39% Hospital
GLA (Million
Square Feet)
4.2
0.3
3.8
1.0
0.8
1.8
7.8
7.5
Gross Assets (3)
$1,240
$24
$1,216
$377
$160
$843
$2,711 (4)
$2,687 (4)
Occupancy
91.4%
67.5%
93.6%
100.0%
94.6%
99.5%
94.8%
96.1%
WALE (Years)
4.6
5.2
4.6
21.0
4.9
17.3
9.8
10.1
Avg. Building
Age (Years)
~32
~37
~31
~11
~15
~15
~26
~26
Weighted
Average Cap
Rate (5)
6.5%
9.2%
6.4%
7.6%
7.3%
7.3%
1. Shown on a fully consolidated basis. NWH owns a 24.5% interest in Vital Trust
2. Based on proportionally consolidated NOI
3. Gross assets (IFRS) as of March 31, 2016
4. Based on total assets of NWH and Vital Trust on a fully consolidated basis, including corporate assets which are not shown; approximately $2.1 billion in proportionate ownership
5. Per IFRS financial statements as of March 31, 2016
30
CANADA: LARGEST PORTFOLIO OF MOB ASSETS
INVESTMENT AND MARKET OVERVIEW

YT
NT
NU

AB
BC
Spruce Grove (1)
NL
SK
Edmonton (4)
MB
QC
Airdrie (1)
Calgary (7)

ON
Winnipeg (2)
PE
NB
Canada’s largest non-government owner/manager of MOBs and
healthcare related facilities
 Portfolio of 62 properties comprising GLA of 4.2 million sf and
~1,200 tenants
 91.4% occupancy and ~4.6 year WALE
High quality real estate with stable cash flow underpinned by
tenancies supported by the Canadian publicly funded healthcare
system
Provides stability and diversification to a broader international
healthcare real estate portfolio
NS
QC
ON
CANADA
Quebec City (3)
Levis (1)
Joliette (1)
Laval (1)
Lachenaie (1)
Longueuil (2)
Ottawa (1)
Richelieu (1)
NB
PE
Moncton (1)
New Glasgow (1)
Fredericton (1)
Lower Sackville (1)
Dartmouth (1)
Halifax (2)
NS
Saint Hubert (1)
Montreal (1)
Vaudreuil-Dorion (1)
Collingwood (1)
Whitby (1)
Mississauga (1)
Toronto (10)
Guelph (2)
Oakville (1)
Cambridge (1)
Hamilton (3)
London (2)
Le Carrefour Medical
Laval, QC
St. Thomas (1)
Chatham (1)
Windsor (2)
31
Dundas-Edward Centre
Toronto, ON
BRAZIL: NEWLY BUILT PRIVATE PAY HOSPITAL ASSETS
INVESTMENT AND MARKET OVERVIEW

RORAIMA
AMAPÁ

Bele
m
Manaus
AMAZONAS
PARA
Fortaleza

CEARA
MARANHÃO
RIO GRANDE
DO NORTE
Natal
Institutional quality, core healthcare infrastructure assets in
strategic markets including São Paulo, Brasilia and Rio de Janiero
 100.0% occupancy and ~21.0 year WALE
Stable cash flow with long-term, triple-net, inflation-indexed
leases, providing consistent organic growth
Long-term relationship with one of the country’s leading hospital
operators Rede D’Or São Luiz S.A. (S&P National Rating: AA-)
PIAUI
PERNAMBUCO Recife
ACRE
ALAGOAS
RONDÔNIA
Macieo
TOCANTINS
BAHIA
FEDERAL
DISTRICT
Salvador
Hospital Santa Luzia
Hospital Coração
Brasilia
GOIAS
MINAS GERAIS
MATO GROSSO
DO SUL
SÃO PAULO
Hospital Sabará
Hospital Brasil
RIO DE JANEIRO
Hospital Caxias
Rio De Janeiro
São Paulo
PARANÁ
SANTA
CATARINA
RIO GRANDE
DO SUL
Port Alegre
Hospital Infantil Sabará
São Paulo
32
Hospital Caxias D’Or
Rio de Janeiro
GERMANY: STRATEGICALLY LOCATED MOB ASSETS
INVESTMENT AND MARKET OVERVIEW

SCHLESWIGHOLSTEIN
MECKLENBURG-VORPOMMERN
HAMBURG

BREMEN
BERLIN
NIEDERSACHSEN
6
Berlin Assets

High quality MOB assets located in the major markets including Berlin,
Frankfurt, Ingolstadt and Leipzig
 94.6% occupancy and ~4.9 year WALE
Highly fragmented MOBs market in Germany presents a unique
opportunity to consolidate healthcare infrastructure assets accretively
Fully integrated property management and asset management
capabilities allow efficient operation and deal sourcing
BRANDENBURG
SAXONY-ASPHALT
NORDRHEIN-WESTFALEN
SACHSEN
HESSEN
Fulda
1
11
THURINGIA
Leipzig Portfolio
Frankfurt
RHINELAND-PFALZ
SAARLAND
Adlershof 1
Berlin
Polimedica
Berlin
Berlin Neukolln
Berlin
Hollis Centre
Ingolstadt
BAYERN
BADEN-WÜRTTEMBERG
Ingolstadt
1
Munich
33
AUSTRALASIA: STRATEGIC INVESTMENT IN VITAL TRUST
INVESTMENT AND MARKET OVERVIEW
AUSTRALIA

NORTHERN
TERRITORY

QUEENSLAND
Manager and 24.5% strategic shareholder of Vital Trust (NZX:VHP),
Australasia’s largest listed healthcare real estate owner with 17 private
hospitals, 7 MOBs, 4 aged care assets and 6 development lots
 99.5% occupancy and ~17.3 year WALE
Stable and growing cash flows underpinned by tenancies of high
quality hospital and healthcare operators with long-term, inflationindexed leases
4
WESTERN AUSTRALIA
1
SOUTH AUSTRALIA
1
NEW SOUTH WALES
6
VICTORIA
6
NEW ZEALAND
TASMANIA
1
Epworth Eastern Medical Centre
Melbourne, AU
Marian Centre
Perth, AU
Epworth Eastern Hospital
Melbourne, AU
Ascot Hospital
Auckland, NZ
6
34
A P P E N D I X
2
MANAGEMENT
BIOGRAPHIES
35
GLOBAL PLATFORM WITH REGIONAL CAPABILITY AND EXPERTISE
HIGHLY EXPERIENCED
AND ALIGNED EXECUTIVE
MANAGEMENT TEAM
FULLY ESTABLISHED,
SCALABLE REGIONAL
TEAMS WITH EXPERTISE
IN PROPERTY
MANAGEMENT,
ACQUISITIONS AND
DEVELOPMENT
LOCAL MARKET
KNOWLEDGE AND
STRONG RELATIONSHIPS
WITH LEADING
HEALTHCARE PROVIDERS
OVER 180
PROFESSIONALS ACROSS
9 OFFICES IN 5
COUNTRIES
MANAGEMENT – COMBINED REIT
REGIONAL OPERATING PLATFORM AND EXPERTISE

Paul Dalla Lana
Chairman &
CEO


Founder of NWH REIT
Largest unitholder of NWH
Peter Riggin
President –
Canada


Vincent Cozzi
President and
CIO


President and CIO
Previously Senior Vice
President, Acquisitions at
Ventas

Gerson Amado
Managing
Director –
Brazil



Teresa Neto
CFO


Mike Brady
EVP & General
Counsel


CFO
Previously CFO of KEYreit
and Retrocom REIT
Chartered Accountant
EVP and General Counsel
Previously a Partner at
Baker & McKenzie LLP and
McLean & Kerr LLP
36

Jan Krizan
Managing
Director –
Germany
139 professionals
Leading healthcare real estate
asset management platform
Relationships with hospital
operators Rede D’Or SL and
Sabara
2 professionals
Established platform with full
property management and
asset management capabilities
Office in Berlin

19 professionals

CEO – Vital
Trust
HQ in Toronto plus five
regional offices

David Carr
President Australasia
Fully integrated real estate
owner and operator


Fully integrated property
management and asset
management
Offices in Auckland and
Melbourne
12 professionals