Q3 2015
INVESTOR UPDATE
November 12, 2015
1
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 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”) 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 September 30, 2015, as filed on SEDAR.
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NorthWest Healthcare Properties Real Estate Investment Trust (TSX: NWH.UN) provides investors with access to a portfolio of high quality international healthcare real estate infrastructure located throughout major markets in Canada, Brazil, Germany, Australia and New Zealand.
CORE HEALTHCARE INFRASTRUCTURE IN MAJOR MARKETS
NWH AT A GLANCE
ASSET MIX REGIONS
8.0M 123 $2.5BN SQUARE FEET
T O R O N T O
S Ã O P A U L O
B E R L I N
A U C K L A N D
S Y D N E Y
PROPERTIES TOTAL ASSETS
95.8% 9.9 OCCUPANCY (3) YEAR WALE (3)
$620M 9.3% MARKET CAP DISTRIBUTION YIELD (1)
ESTABLISHED RELATIONSHIPS WITH LEADING HEALTHCARE OPERATORS
7.4%
NOI DIVERSIFICATION (3)
IFRS CAP RATE
95.7% PAYOUT RATIO (2)
1. Based on NWH.UN’s closing unit price of $8.60/unit as of November 3, 2015. 2. Based on the REIT’s distribution policy of $0.80/unit per annum and based on normalized AFFO of $0.84/unit. 3. Occupancy ,WALE, and NOI diversification metrics have been adjusted to exclude the 16 assets held for sale in Canada. NOI diversification is based on the REIT’s 24.5% proportionate ownership of Vital Trust.
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Completed $105M of property level debt refinancing – Estimated annual interest savings of $0.02/unit of AFFO
Significant progress on non-core Canadian asset dispositions – 1 asset sold in Q3-15 and 7 under firm contract expected to close by Q1-16 – 4 assets under conditional contract
Completed ~$26M out of the ~$77M in accretive expansion projects in Australia – Generated an increase of rent of ~$2.5M, improving same store NOI – Additional ~$51M of expansion projects more than half-way complete with expected timing
ranging from Q4-15 to Q2-16. – Continued progress on the REIT’s Canadian development projects
Enhanced liquidity achieved through ~$125M of corporate financing – Renewed and increased the REIT’s revolving credit facility to $75M – Successful issuance of $53M of 5.50% convertible debentures
Purchased 700K of NWH REIT units at ~15% discount to Q3-15 NAV – Pursuant to the REIT’s normal course issuer bid – Average unit purchase price of $8.01
Q3 2015 SIGNIFICANT EVENTS
NWH HAS MADE SIGNIFICANT PROGRESS ON ITS CORE MANAGEMENT INTIATIVES:
BALANCE SHEET OPTIMIZATION
PORTFOLIO REPOSITIONING
MERGER INTEGRATION AND SYNERGIES
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DASHBOARD
As Reported Run Rate Portfolio
$0.80/unit
57.1%
$9.49/unit
$0.90 to $0.95/unit
~$10.00/unit
Annualized AFFO/unit
LTV (1)
NAV
12 – 18 month target
Renewed emphasis on capital allocation – target 50% International asset mix
Deliver stable property operating performance, cash flow and distributions
Capital markets seasoning
Normalized
$0.84/unit
~$9.49/unit
Reflects impact of completed transactions
Portfolio Quality
Occupancy / WALE (1)
57.1% ~50.0%
95.8% 9.9 years
95.8% 9.9 years
~96.0% ~10.5 years
1. Occupancy and WALE metrics have been adjusted to exclude the 16 assets held for sale in Canada.
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Goal
Progress
Progress on 12-18 Month Priorities
Portfolio Repositioning Balance Sheet Optimization Integration & Synergies
Execute early refinancings
Refinance high interest rate corporate debt
Extend maturities
Execute on contracted expansions and development
Non-core asset dispositions and select accretive international acquisitions
Deliver $1.5M of G&A synergies
Leverage platform for institutional investment and strategic partnerships
Achieve seasoned multiple in 12-18 months
8 of the 17 assets identified sold or under firm contract totaling ~$45M and additional 4 assets under conditional contract.
~65% completion on developments in Australia and Canada.
GOAL TRACKING
Issued C$53M convertible debentures at 5.50% to repay 8.95% Brazil debt
Refinanced ~$50M German debt at lower interest rates and lengthened the overall term
Commitments for Canadian 2016 refinancings to reduce rates from ~5.4% to ~3.3%
Reduced listing, audit, and other G&A costs due to single entity
Initiated research coverage from National Bank Financial and Canaccord Genuity with others expected in Q3/Q4 on back of property tours to Brazil and Germany in October 2015.
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Core healthcare infrastructure and major market focus – Improve portfolio quality and reduce risk
Capital markets seasoning – Deliver stable property operating performance, cash flow and
distributions
Reiterate run rate AFFO guidance of $0.90 - $0.95/unit – 12 to 18 month target – Combination of balance sheet optimization, portfolio
repositioning and merger integration – Target ~50% leverage and NAV growth through execution of
contracted development and expansion projects
Q3 2015 HIGHLIGHTS
FINANCIAL PERFORMANCE (1)
$44.1M NOI
$15.0M AFFO
$0.20/Unit AFFO / Unit
95.7% Payout Ratio
57.1% LTV (2)
$9.49/Unit NAV 2)
HIGH QUALITY PORTFOLIO
Occupancy
WALE
Gross Assets
STRATEGY & OUTLOOK POSITIVE HEALTHCARE FUNDAMENTALS
Aging Population
Stability &
Growth
Growing Populations &
Wealth Creation
The Rise of Private
Healthcare
Increased Healthcare Spending
9.9
95.8%
1. Financial metrics are presented on a normalized basis for the quarter ended September 30, 2015. 2. LTV and NAV have been presented on a fully consolidated basis including 100% of Vital Trust. On a proportionate basis, the REIT’s LTV and NAV/unit would be 63.0% and $9.50/unit, respectively.
$2.5B
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REGIONAL DASHBOARD
C A N A D A B R A Z I L
A U S T R A L A S I A G E R M A N Y
LEADING MEDICAL OFFICE PLATFORM
CONSOLIDATION OF MEDICAL OFFICE BUIDLINGS
STRONG RELATIONSHIPS WITH LEADING OPERATORS
2.9% NOI Growth (1)
90.9% Occupancy
4.5YR WALE
LEADING PUBLICLY LISTED HEALTHCARE TRUST 1.5% NOI Growth (1)
94.9% Occupancy
4.8YR WALE
NOI Growth (1)
100% Occupancy
21.5YR WALE
3.2% NOI Growth (1)
99.4% Occupancy
17.3YR WALE
6.2%
1. Represents annualized same property NOI growth (“SPNOI”) for three months ended September 30, 2015 in source currency. For Germany, SPNOI for the quarter reflects normalized operating cost adjustments; excluding these adjustments SPNOI for the quarter is 9.4%. For Australia, SP NOI for the quarter reflects an adjustment for the increased rent due to the completion of the Hurstville development project; excluding these adjustments SPNOI is 7.5%.
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F I N A N C I A L O V E R V I E W
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FINANCIAL HIGHLIGHTS
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:
- Repayment of Brazil debt at 8.95% with newly issued convertible debentures at 5.50%
- Accrued rent to Q3 2015 based on contract rental indexation adjustments in Brazil and Australia/New Zealand
- Public company G&A synergies from the recent business combination
- Non-recurring items that will not have an on-going impact in future quarters
Q3-15 As Reported
Q3-15 Normalized
NOI $43.6M $44.1M
FFO $15.5M $16.1M
AFFO $14.4M $15.0M
W.A Units Outstanding (1) 71,927 71,748
AFFO / Unit $0.20/unit $0.21/unit
Payout Ratio 99.8% 95.7%
LTV (2) 57.1% 57.1%
Net Asset Value / Unit $9.49/unit $9.49/unit
1. Units outstanding has been adjusted for unit purchases under the REIT’s NCIB estimated to October 15, 2015. The REIT had 71,748 basic units outstanding as at September 30, 2015. 2. LTV is presented on a fully consolidated basis including 100% of Vital Trust. On a proportionate basis, the REIT’s LTV is 63.0%.
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SEGMENTED FINANCIAL INFORMATION
1. Reflects a full quarter of normalized income for the Canadian region for the three months ended September 30, 2015. 2. Represents Vital Trust on a fully consolidated basis. 3. Includes goodwill related to the business combination and Corporate debt including the four series of convertible debentures. 4. Total liabilities have been reduced by the deferred tax liability, derivative financial instruments and deferred unit liability to arrive at adjusted liabilities.
Canada (1) Brazil Germany Australasia(2) Vital Mgr. Corporate (3) Combined
NORMALIZED INCOME SUMMARY:
NOI $20.6 $7.8 $2.5 $13.2 Nil Nil $44.1
FFO $15.2 $3.7 $1.5 $1.8 $1.9 ($8.0) $16.1
AFFO $10.2 $5.0 $1.3 $1.9 $1.9 ($5.3) $15.0
BALANCE SHEET SUMMARY:
Gross Assets $1,291.4 $318.1 $153.5 $666.5 $46.8 $44.9 $2,521.2
Adjusted Liabilities (4) $772.2 $168.7 $83.3 $576.8 Nil $239.2 $1,840.1
Net Assets $519.2 $149.5 $70.2 $89.8 $46.8 ($194.3) $681.1
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CAPITALIZATION
DEBT MATURITY PROFILE (1) Market
Capitalization $620M
Enterprise Value $2.0BN
IFRS Gross Book Value $2.5BN
LTV (Consolidated) 57.1%
LTV (Proportionate) 63.0%
W.A. Interest Rate 5.13%
% Unsecured 15%
% Fixed 85%
REGIONAL DEBT STRATEGIES
Type Asset Level Term Debt
Bank Loans and Securitization
Asset Level Term Debt
Asset Level Revolving Debt
LTV 60% 80% (1) 70% 50%
Interest Rates (2) ~3.0% ~9.0% ~2.0% ~3.5%
Amortization 25 years 10 years 50 years Interest Only
% of debt maturing
2.8% 18.8% 10.4% 18.3% 33.7% 16.0%
1. Reflects the repayment of a portion of Brazil debt due in 2015 on November 3 and subsequent 10-yr securitization. 80% LTV reflects market securitization terms. 2. Representative 5 year fixed interest rates. Brazil representative interest rate reflects market securitization terms and is subject to annual inflation adjustments.
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RISK MANAGEMENT – FOREIGN EXCHANGE
RENTAL INDEXATION ACTS AS NATURAL CURRENCY HEDGE
LOCAL CURRENCY PROPERTY / CORPORATE DEBT TO REDUCE INVESTMENT RISK
OVER A 10 YEAR PERIOD, PORTFOLIO INDEX HAS REMAINED RELATIVELY IN-LINE WITH ITS BASE VALUE
Currency depreciation in Brazil has been offset by annual rental indexation
+6.6%
+0.5%
CAGR
BRAZIL – SAME STORE NOI GROWTH
Sep-15
97.5
74.9
93.6 92.8
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P O R T F O L I O OV E R V I E W
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BRAZIL
5 Hospitals /~900 Beds
2 Committed Developments
S&P Rated Tenants
CANADA
73 Medical Office Buildings
1,450 tenants
2 Active Developments
VITAL PROPERTY TRUST
GERMANY
New Zealand Listed Entity
26 Properties
5 Active Developments
19 Medical Office Buildings
350 Tenants
2 Development Sites
PORTFOLIO OVERVIEW
$2.5BN International Platform Canada / Brazil / Germany / Australia & NZ
Berlin
São Paulo
Toronto
Melbourne
Auckland
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Tenant Region % of Gross Rent
Rede D'Or SL 13.3%
Healthe Care 3.1%
Bantrel Corporation 2.9%
CLSC/CSSS 2.2%
Hospital Sabara 1.7%
Shoppers Drug Mart 1.6%
Lawtons Drugs 1.3%
Alberta Health Services 1.3%
Province of Ontario 1.2%
Centric Health 0.9%
Top 10 Tenants 29.5%
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
TOP 10 TENANTS BY GROSS RENT (2)
1
2
3
6
7
8
9
10
4
5
NOI DIVERSIFICATION BY GEOGRAPHY (1)
NOI DIVERSIFICATION BY ASSET MIX (1)
1. In the REIT’s Q3-2015 MD&A, the diversification charts for the countries and asset mix are based on investment value and GLA respectively and do not match the above pie charts. The pie charts above reflect the NOI composition excluding the assets held for sale.
2. 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).
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Assets MOB + Hospital Admins / Traditional Office
Size ~410k Square Feet
Tenants Province of Ontario, Sick Kids Hospital, and other
medical tenancies
Cap Rate (1) ~6.0%
Occ. ~94%
Lease Term ~6 Years
Rental Increase Contract Rents
Acquisition Date Jan 2011
Assets 3 Hospitals
Size 446 Beds / ~573k Square Feet
Tenants Hospital Operator Rede D’Or
S.L. S&P “A-” Rated
Cap Rate (1) ~9.4%
Occ. 100%
Lease Term ~25 Years
Rental Increase Annual Inflation Index
Acquisition Date Dec 2013
Assets 1 Hospital
Size 31 beds / To expand to 66 beds during 2015
Tenants Healthe Care
Cap Rate (1) ~9.0%
Occ. 100%
Lease Term ~20 Years
Rental Increase Annual Inflation Index
Acquisition Date Aug 2014
Assets 14 MOBs
Size ~410k Square Feet
Tenants ~200 Medical Practitioners & Related Services
Cap Rate (1) ~6.6%
Occ. ~95%
Lease Term ~5 Years
Rental Increase Annual Inflation Index
Acquisition Date Jun 2014 & Aug 2014
REPRESENTATIVE INVESTMENTS
Rede D’Or Hospital Portfolio
German MOB Portfolio
Marian Health Centre
Dundas-Edward Centre
1. IFRS cap rates as at September 30, 2015.
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The REIT currently has identified 17 non-core asset dispositions – Combined IFRS value of ~$105M; 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 1 asset for $5.3M, in-line with IFRS values – 7 assets under firm contract with a combined IFRS value of ~$40M expected to close by Q1-16 – 4 assets under conditional contract
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
CANADA Q3-2015
CANADA Proforma
SP NOI Growth 2.9% 3.8%
Occupancy 90.9% 93.2%
WALE 4.5 4.5
PORTFOLIO Q3-2015
PORTFOLIO Proforma
3.5% 3.9%
94.2% 95.7%
9.3 9.9
150bps
40bps
0.6yr
EXISTING PORTFOLIO (1) PROFORMA PORTFOLIO (1)
1. Based on NOI by region proportionally consolidated reflecting a 24% interest in Vital Trust. Redeployment of disposition proceeds is assumed to be in Brazil & Germany based on a 25/75 split, respectively.
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Completed ~$26M Hurstville (Phase I) expansion project in Australia – Additional floors added to the building; generating an incremental $2.5M in rent
$150M of committed low risk development & expansions – $51.5M Australian hospital expansions to be funded through existing resources – $47.5M Brazil hospital expansions to be funded through a combination of existing resources and property financing – $51.5M Canadian development to be funded through property level financing
$13.0M of stabilized net operating income – Potential to generate up to an incremental $0.06 of AFFO/Unit (1)
$13.5M of stabilized value accretion – Potential to generate up to an incremental $0.15 of NAV/Unit (1)
ACCRETIVE DEVELOPMENT & EXPANSIONS
WITH A TRACK RECORD OF COMPLETING MORE THAN $300M OF DEVELOPMENT AND EXPANSIONS, THE REIT IS LEVERAGING ITS EXPERIENCE TO DELIVER AN ADDITIONAL $150M OF INCOME AND VALUE ENHANCING PROJECTS TO ITS PORTFOLIO
Country Projects Est. Completion
Project Cost
Cost to Complete
Pre-Leased Occupancy
Project Yield
Project NOI
Potential Value
Accretion
5 Q4 2015 to Q2 2016 51.5 24.0 100.0% 8.8% 4.5 3.5
2 Q4 2016 / Q4 2018 47.5 47.5 100.0% 10.5% 5.0 5.5
2 Q4 2016 51.5 24.5 73.9% 7.1% 3.5 4.5
9 150.0 95.5 13.0 13.5
1. Assuming projects are 100% debt funded at the existing region’s financing costs and is for indicative purposes only.
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EXPANSION PROFILE – AUSTRALIA
Hurstville Private Hospital Sydney
Acquired in May 2012
Purchase price A$12.6M
Cap rate 9.5%
Redevelopment spend of A$34.0M
30 June 2015 valuation A$58.2M
Cap rate 8.25%
Stage 1 completed July 2015. Hospital continued to function throughout development.
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Acquired in early 2015
Project cost ~$26.0M
Stabilized Yield 6.5%
Acquired in early 2015
Project cost ~$25.5M
Stabilized Yield 6.5%
Ground-up development of a new ~80,000 SF medical office building to house the Barrie Family Health Team.
Barrie Medical Centre Barrie, ON
Toronto West Health Centre Etobicoke, ON
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.
DEVELOPMENT PROJECTS – CANADA
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S T R A T E G Y & O U T L O O K
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RELATIVE VALUATION
THE REIT IS TRADING AT A SIGNIFICANT DISCOUNT TO ITS PEERS ON BOTH AN AFFO MULTIPLE AND NET ASSET VALUE BASIS
AFFO MULTIPLE
PREMIUM / (DISCOUNT) TO NAV
$11.90 •
$9.49•
$12.94•
10.2x
14.2x
11.3x
15.4x
0
18x
12x
6x
$8.40 • $8.48 •
$8.88 •
(9.4%)
0
10%
NWH.UN Canadian REITS (EV > $1BN)
Internationally Focused Canadian
REITS
US Healthcare REITS (Top 5)
• Implied Share Price
$8.60
$8.60
- Based on NWH.UN’s closing unit price of $8.60/unit as of November 2, 2015 and normalized AFFO/Unit of $0.84 per year ($0.21/unit for the quarter) - NAV is based on Q3 2015 reported NAV/unit of $9.49.
(6.4%)
(11.6%) (10.6%)
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INVESTOR FACTSHEET
Ticker NWH.UN
Listed Exchange TSX
Distribution Payable Monthly
Distribution Type 100% Return of Capital for 2014
Unit Price $8.60 (November 2, 2015)
Market Capitalization $620M
Distribution Yield ~9.3%
52-Week Trading Range $7.45 - $10.05
Volume Weighted Avg. Price (VWAP) (20-day) $8.53
Average Daily Volume (20-day) 55,000
NAV Q3-2015 (IFRS) $9.49
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CONTACT INFORMATION
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
NORTHWEST HEALTHCARE PROPERTIES REIT
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R E G I O N A L P O R T F O L I O O V E R V I E W S
A P P E N D I X 1
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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 September 30, 2015 4. Based on total assets of NWH and Vital Trust on a fully consolidated basis, including corporate assets which are not shown; $2.0 billion in proportionate ownership 5. Per IFRS financial statements as of September 30, 2015
PORTFOLIO PROFILE
GLOBAL HEALTHCARE REAL ESTATE INFRASTRUCTURE COMBINED PORTFOLIO COMPRISES 123 PROPERTIES TOTALING 8.0MM SQUARE FEET OF GLA IN FIVE COUNTRIES
STRONG OPERATING FUNDAMENTALS WITH OCCUPANCY OF ~96%, WALE OF ~10 YEARS AND 67% / 33% MOB/HOSPITAL MIX
Q3 2015
Canada Brazil Germany Australasia (1)
Combined Platform
Proforma Platform
Total Non-Core Core
Number of Properties 73 16 57 5 19 26 123 107
Asset Mix (2) 100% MOB
100% MOB
100% MOB
100% Hospital 100% MOB ~15% MOB /
85% Hospital 70% MOB /
30% Hospital 67% MOB /
33% Hospital
GLA (Million Square Feet) 4.6 0.8 3.8 1.0 0.7 1.7 8.0 7.2
Gross Assets (3) $1,290 $100 $1,190 $318 $154 $667 $2,520 (4) $2,420 (4)
Occupancy 90.9% 79.2% 93.2% 100.0% 94.9% 99.4% 94.2% 95.8%
WALE (Years) 4.5 4.4 4.5 21.5 4.8 17.3 9.3 9.9
Avg. Building Age (Years) ~32 ~11 ~15 ~15 ~26 ~22 to 25
Weighted Average Cap Rate (5)
6.6% 9.4% 6.4% 8.0% 7.4% 7.4%
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CANADA: LARGEST PORTFOLIO OF MOB ASSETS
Dundas-Edward Centre Toronto, ON
Le Carrefour Medical Laval, QC
YT
SK
QC
ON
NU
NT
NL
MB
BC AB
NB PE
NS
Winnipeg (2) Kamloops (1)
Edmonton (4)
Calgary (7)
Airdrie (1)
Spruce Grove (1)
INVESTMENT AND MARKET OVERVIEW
Canada’s largest non-government owner/manager of MOBs and healthcare related facilities Portfolio of 73 properties comprising GLA of 4.6 million sf and
~1,500 tenants 90.9% occupancy and ~4.5 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
QC PE ON
NS
NB
Levis (1)
Laval (1) Lachenaie (1) Joliette (1)
Hamilton (3)
Halifax (2)
Guelph (2)
Fredericton (1)
Dartmouth (1)
Collingwood (1)
Chatham (1)
Cambridge (1)
Richelieu (1)
Quebec City (4)
Port Hope (1)
Ottawa (1)
Orillia (1)
Oakville (1)
New Glasgow (1) Moncton (1)
Mississauga (1)
Midland (1)
Lower Sackville (1)
Longueuil (2)
London (2)
Windsor (2)
Whitby (1)
Vaudreuil-Dorion (1)
Toronto (10)
Sydney (2)
Sudbury (2)
St. Thomas (1)
Lindsay (1) Montreal (2) Saint Hubert (1)
CANADA
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BRAZIL: NEWLY BUILT PRIVATE PAY HOSPITAL ASSETS
INVESTMENT AND MARKET OVERVIEW
Institutional quality, core healthcare infrastructure assets in strategic markets including São Paulo, Brasilia and Rio de Janiero 100.0% occupancy and ~21.5 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-)
Hospital Caxias D’Or Rio de Janeiro
Hospital Infantil Sabará São Paulo
Manaus Belem Fortaleza
Natal
Recife
Macieo
Salvador
Brasilia
Rio De Janeiro São Paulo
Port Alegre
Hospital Coração Hospital Santa Luzia
Hospital Caxias Hospital Brasil
Hospital Sabará
PARA
GOIAS
FEDERAL DISTRICT
AMAZONAS
BAHIA
SÃO PAULO RIO DE JANEIRO
RIO GRANDE DO SUL
CEARA RIO GRANDE DO NORTE
ALAGOAS
PERNAMBUCO
AMAPÁ
MINAS GERAIS
RORAIMA
MARANHÃO
PIAUI
TOCANTINS RONDÔNIA
ACRE
MATO GROSSO DO SUL
PARANÁ
SANTA CATARINA
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GERMANY: STRATEGICALLY LOCATED MOB ASSETS
6
1
1
11
Berlin Assets
Leipzig Portfolio
Ingolstadt
Fulda
NORDRHEIN-WESTFALEN
NIEDERSACHSEN
BADEN-WÜRTTEMBERG
SAXONY-ASPHALT
HESSEN
RHINELAND-PFALZ
BERLIN
SACHSEN
HAMBURG
SCHLESWIG- HOLSTEIN
BRANDENBURG
BAYERN
MECKLENBURG-VORPOMMERN
SAARLAND
BREMEN
THURINGIA
INVESTMENT AND MARKET OVERVIEW
High quality MOB assets located in the major markets including Berlin, Frankfurt, Ingolstadt and Leipzig 94.9% occupancy and ~4.8 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
Polimedica Berlin
Adlershof 1 Berlin
Hollis Centre Ingolstadt
Berlin Neukolln Berlin
Munich
Frankfurt
30
AUSTRALASIA: STRATEGIC INVESTMENT IN VITAL TRUST
WESTERN AUSTRALIA
NORTHERN TERRITORY
QUEENSLAND
SOUTH AUSTRALIA
NEW SOUTH WALES
VICTORIA
TASMANIA
1
1
4
6
6
1
NEW ZEALAND
6
AUSTRALIA
Marian Centre Perth, AU
Epworth Eastern Medical Centre Melbourne, AU
Ascot Hospital Auckland, NZ
Epworth Eastern Hospital Melbourne, AU
INVESTMENT AND MARKET OVERVIEW
Manager and 24% strategic shareholder of Vital Trust (NZX:VHP), Australasia’s largest listed healthcare real estate owner with 17 private hospitals, 7 MOBs, and 2 development lots 99.4% occupancy and ~17.3 year WALE
Stable and growing cash flows underpinned by tenancies of high quality hospital and healthcare operators with long-term, inflation-indexed leases
31 31
M A N A G E M E N T B I O G R A P H I E S
A P P E N D I X 2
32
Peter Riggin President – Canada
Fully integrated real estate owner and operator
HQ in Toronto plus five regional offices
139 professionals
Gerson Amado Managing Director – Brazil
Leading healthcare real estate asset management platform
Relationships with hospital operators Rede D’Or SL and Sabara
2 professionals
Jan Krizan Managing Director – Germany
Established platform with full property management and asset management capabilities
Office in Berlin 19 professionals
David Carr President - Australasia CEO – Vital Trust
Fully integrated property management and asset management
Offices in Auckland and Melbourne
12 professionals
Paul Dalla Lana Chairman & CEO
Founder of NWH REIT Largest unitholder of NWH
Vincent Cozzi President and CIO
President and CIO Previously Senior Vice
President, Acquisitions at Ventas
Teresa Neto CFO
CFO Previously CFO of KEYreit
and Retrocom REIT Chartered Accountant
Mike Brady EVP & General Counsel
EVP and General Counsel Previously a Partner at
Baker & McKenzie LLP and McLean & Kerr LLP
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