Q INVESTOR UPDATE. March 10, 2016

Transcription

1 Q INVESTOR UPDATE March 10, 2016

2 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 December 31, 2015, as filed on SEDAR. 1

3 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 8.0M 122 $2.7BN SQUARE FEET PROPERTIES TOTAL ASSETS NOI DIVERSIFICATION (3) 95.9% 10.0 OCCUPANCY (3) YEAR WALE (3) 7.3% IFRS CAP RATE REGIONS ASSET MIX $675M 8.5% MARKET CAP DISTRIBUTION YIELD (1) 92.0% PAYOUT RATIO (2) 1. Based on NWH.UN s closing unit price of $9.44/unit as of March 8, Based on the REIT s distribution policy of $0.80/unit per annum and based on normalized AFFO of $0.87/unit. 3. Occupancy, WALE, and NOI diversification metrics are consolidated and have been adjusted to exclude the 13 assets held for sale in Canada. NOI diversification is based on the REIT s 24.5% proportionate ownership of Vital Trust. 2

4 TRANSFORMATIONAL 2015 Strategic International Growth Operational Strength Scalable Platform Defensive Healthcare Assets Canadian Medical Office Building (MOB) Consolidation Defensive High Quality Portfolio Improved Market Profile Positioned for Growth Core Healthcare Focus Major Global Markets Asset & Capital Diversification Improved Portfolio Metrics Increase in Market cap. Reduced Payout Ratio Reduced Leverage Increased NAV Aligned & Integrated Global Platform Leverage Institutional Relationships Identified Expansions and Developments Actionable Acquisition Pipeline 3

5 DASHBOARD As Reported Normalized Run Rate Deliver stable property operating performance, cash flow and distributions Capital markets seasoning Reflects impact of completed transactions month target Renewed emphasis on capital allocation target 50% International asset mix AFFO/unit (1) $0.82/unit $0.87/unit $0.90 to $0.95/unit LTV (2) 49.2% / 55.5% 49.2% / 55.5% ~50.0% NAV (3) $10.71/unit ~$10.71/unit ~$11.00/unit Occupancy / WALE (4) 95.9% 10.0 years 95.9% 10.0 years ~96.0% ~10.5 years Portfolio Quality 1. Reported AFFO/Unit represents total AFFO on a weighted average basis for the twelve month period ending December 31, The normalized/run rate is based on Q4-15 AFFO/unit annualized. 2. LTV excluding and including convertible debentures is 49.2% and 55.5% respectively, both metrics are shown on a fully consolidated basis (Vital Trust at 100%). 3. NAV represents adjusted NAV, which is based on net equity plus add-backs of deferred tax liability, net derivative financial instruments, DUP liability, and an adjustment to the Vital intangible asset. 4. Occupancy and WALE metrics have been adjusted to exclude the 13 assets held for sale in Canada. 4

6 2016 GOALS 2015 RESULTS 2016 GOALS TARGET Balance sheet optimized Completed ~$300M of financing $0.07/unit of annual interest savings Portfolio repositioned Canadian non-core asset dispositions substantially complete Merger integration complete Integrated Global platform Reduced portfolio risk Increased scale and diversification Major market focus Shift to core healthcare asset classes MOB s, Clinics, Hospitals, Aged Care Provide Stable & Defensive Operating Results Inflation indexed triple-net rents Stable & improving occupancy levels Focus on core healthcare tenancies Grow leading international platforms: Australasia: Strategic growth Brazil: Focus on AAA assets Canada: Asset management & development Germany: Continue MOB consolidation Establish institutional capital relationships A healthcare moment Leverage leading management platform Drive incremental fee revenue ~85% Payout Ratio ~50% LTV ~$11.00 NAV/Unit $5.0BN Portfolio Leading position in each core market Increased focus on core healthcare infrastructure Achieve differentiated valuation Capital markets seasoning Improve market profile Healthcare real estate warrants a premium valuation US experience Defensive financial profile Target ~80% AFFO payout Target ~40% LTV 5

7 INVESTMENT HIGHLIGHTS Supportive Fundamentals Attractive Asset Class Growth Opportunities Value Opportunity Favourable demographics and industry trends including aging populations and rising healthcare expenditures Defensive portfolio comprising core healthcare infrastructure located in global gateway cities supported by robust healthcare systems and leading operators Significant internal and external growth prospects underpinned by inflation indexed leases, accretive captive expansions and industry consolidation Currently trading at a discounted AFFO multiple and P/NAV relative to Canadian REITs and healthcare real estate peers Proven & Aligned 10+ year public company history with highly aligned founder and management team DEFENSIVE, HIGH YIELDING SECURITY WITH GROWTH POTENTIAL 6

8 FINANCIAL OVERVIEW 7

9 FINANCIAL HIGHLIGHTS POSITIVE FINANCIAL OPERATING RESULTS IN LINE WITH MANAGEMENT GUIDANCE NORMALIZED RESULTS HAVE BEEN ADJUSTED TO REFLECT THE IMPACT OF RECENTLY COMPLETED TRANSACTIONS Q4-15 As Reported Q4-15 Normalized NOI $44.3M $45.2M FFO $13.2M $14.9M AFFO $14.0M $15.7M W.A Units Outstanding (1) 71,715 72,031 AFFO / Unit $0.20/unit $0.22/unit Payout Ratio ~100.0% ~92.0% LTV (2) 49.2% / 55.5% 49.2% / 55.5% Net Asset Value / Unit $10.71/unit $10.71/unit NORMALIZATION ADJUSTMENTS Normalization adjustments principally relate to: Repayment of Brazil debt at 8.95% the convertible debenture proceeds and existing resources Refinancing of Canadian properties down from a weighted average interest rate of ~5.5% to ~3.0% Accrued rent to Q based on contract rental indexation adjustments in Brazil and Australia/New Zealand Rentalisation from completed expansion projects in Australia at the end of Q Non-recurring items that will not have an on-going impact in future quarters 1. Units outstanding has been adjusted in the normalized case for subsequent unit activity with the NCIB and DUP programs. 2. LTV excluding and including convertible debentures is 49.2% and 55.5% respectively, both metrics are shown on a fully consolidated basis (Vital Trust at 100%). 8

10 REGIONAL DASHBOARD C A N A D A B R A Z I L LEADING MEDICAL OFFICE PLATFORM STRONG RELATIONSHIPS WITH LEADING OPERATORS 5.7% Occupancy 2.2% NOI Growth (1) 90.7% Occupancy NOI Growth (1) 100% WALE 4.6YR WALE 21.2YR AUSTRALASIA GERMANY LEADING PUBLICLY LISTED HEALTHCARE 3.6% 2.8% TRUST NOI Growth (1) 95.7% CONSOLIDATION OF MEDICAL OFFICE BUIDLINGS Occupancy NOI Growth (1) 99.5% Occupancy WALE 17.4YR WALE 5.0YR 1. Represents same property NOI growth ( SPNOI ) for the twelve months ended December 31, 2015 in source currency. For Brazil, annual inflation indexation adjustments effective January 2016 are ~10.6%, based on the trailing twelve months of the inflation index. For Australia, reported same store NOI growth is ~10.7%, however, this has been adjusted to remove the additional rent received from the rentalization of completed brownfield projects. 9

11 SEGMENTED FINANCIAL INFORMATION Canada (1) Brazil Germany Australasia (2) Vital Mgr. Corporate (3) Combined NORMALIZED INCOME SUMMARY: NOI $20.6 $6.9 $2.3 $14.5 Nil Nil $44.3 FFO $13.6 $3.3 $1.4 $1.6 $2.0 ($8.7) $13.2 AFFO $10.5 $4.2 $1.3 $1.6 $2.1 ($5.7) $14.0 BALANCE SHEET SUMMARY: Gross Assets $1,280.2 $349.6 $167.1 $810.5 $58.8 $45.9 $2,712.0 Adjusted Liabilities (4) $756.8 $90.2 $85.9 $664.9 Nil $345.9 $1,943.8 Net Assets $523.4 $259.3 $81.2 $145.1 $58.8 ($300.0) $ Reflects a full quarter of normalized income for the Canadian region for the three months ended December 31, 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 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. 10

12 CAPITALIZATION Market Capitalization $675M DEBT MATURITY PROFILE (1) Enterprise Value $2.1BN IFRS Gross Book Value $2.7BN LTV (Excluding Convertibles) LTV (Including Convertibles) 49.2% 55.5% % of debt maturing 11.2% 15.0% 11.5% 21.1% 20.2% 21.1% REGIONAL DEBT STRATEGIES W.A. Interest Rate 4.82% % Unsecured 19% % Fixed 81% 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 1. Reflects the debt maturity profile as per the REIT s Q4-15 MD&A and does not include deferred consideration. 2. Representative 5 year fixed interest rates. Brazil representative interest rate reflects market securitization terms and is subject to annual inflation adjustments. 11

13 NAV GROWTH Positive investment property revaluations Annual revaluations with each of the regions exhibiting strong NOI increases, on the back of continued leasing and occupancy improvements as well as strong growth in same property rents. Growth across all regions Canada: Softness in the West, partially offset by strength in Ontario and the REIT s asset management initiatives Value Attributable To: Canada Brazil Germany Australasia Vital Mgr. NOI increases $9.7M $9.9M $6.6M $22.8M $12.0M $61.0M Implied cap rate changes Total ($21.4M) $10.4M $3.4M $20.3M - $24.7M Other (1) $8.9M $8.9M Total ($2.8M) $20.3M $10.0M $43.1M $12.0M $82.6M Brazil: S&P credit rating upgrades for its 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 twelve months of inflation at ~10.5%. Australasia/Vital Manager: Completion of expansion projects in December 2015 coupled with inflation indexed rents and strong market reviews, continue to drive NOI growth. Favourable currency environment Strong currency performance reflecting diversified capital exposure during the quarter Brazil Real up by 3.8% Euro up by 1.2% New Zealand up by 10.9% Per Unit ($0.04) $0.28 $0.14 $0.60 $0.17 $ Other represents the $1.6M gain on sale of 3 assets sold during the quarter and the balance on asset management activities at Riley Parkwood 12

14 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 BRAZIL SAME PROPERTY NOI GROWTH Dec-15 CAGR +7.6% +0.1% Currency depreciation in Brazil has been offset by annual rental indexation 13

15 PORTFOLIO OVERVIEW 14

16 PORTFOLIO OVERVIEW CANADA GERMANY $2.7BN International Platform Canada / Brazil / Germany / Australia & NZ 70 Medical Office Buildings 1,450 tenants 2 Active Developments 19 Medical Office Buildings 350 Tenants 2 Development Sites BRAZIL Toronto Berlin VITAL PROPERTY TRUST São Paulo Melbourne Auckland 5 Hospitals /~900 Beds 2 Committed Developments S&P Rated Tenants New Zealand Listed Entity 28 Properties 2 Active Developments 15

17 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) NOI DIVERSIFICATION BY ASSET MIX (1) TOP 10 TENANTS BY GROSS RENT (2) Tenant Region %of Gross Rent Rede D'Or SL 12.3% Healthe Care 3.5% Bantrel Corporation 2.9% CLSC/CSSS 2.2% Hospital Sabara 1.7% Shoppers Drug Mart 1.5% Lawtons Drugs 1.3% Alberta Health Services 1.3% Province of Ontario 1.0% Centric Health 0.9% Top 10 Tenants 28.8% 1. In the REIT s Q 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. 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). 16

18 REPRESENTATIVE INVESTMENTS Dundas-Edward Centre Rede D Or Hospital Portfolio German MOB Portfolio SportsMed Private Hospital Assets MOB + Hospital Admins / Traditional Office Assets 3 Hospitals Assets 14 MOBs Assets 1 Hospital Size ~410k Square Feet Size 446 Beds / ~573k Square Feet Size ~410k Square Feet Size 45 beds / expansion potential Tenants Province of Ontario, Sick Kids Hospital, and other medical tenancies Tenants Hospital Operator Rede D Or S.L. S&P A- Rated Tenants ~200 Medical Practitioners & Related Services Tenants 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 ~6 Years Lease Term ~25 Years Lease Term ~5 Years Lease Term ~17 Years Rental Increase Contract Rents Rental Increase Annual Inflation Index Rental Increase Annual Inflation Index Rental Increase Annual Inflation Index Acquisition Date Jan 2011 Acquisition Date Dec 2013 Acquisition Date Jun 2014 & Aug 2014 Acquisition Date December IFRS cap rates as at December 31,

19 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 3 assets in Q4-15 for ~$21.0M, slightly above IFRS values Subsequently sold 8 assets in 2016 (year to date) 5 assets actively marketed/under conditional contracts CANADA Q CANADA Proforma SP NOI Growth 2.2% 2.8% Occupancy 90.7% 93.1% WALE PORTFOLIO Q PORTFOLIO Proforma 3.2% 3.5% 94.3% 95.9% EXISTING PORTFOLIO (1) PROFORMA PORTFOLIO (1) 30bps 160bps 0.4yr 1. Based on NOI by region proportionally consolidated reflecting a 24.5% interest in Vital Trust. Redeployment of disposition proceeds is assumed to be in Brazil & Germany based on a 25/75 split, respectively. 18

20 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 $125M OF INCOME AND VALUE ENHANCING PROJECTS TO ITS PORTFOLIO Completed 3 expansion projects in Australia in Dec 15 totaling ~$27M of costs Completed Hurstville (Phase II), Belmont, and Maitland in December; generating an incremental $2.4M in rent $125M of committed low risk development & expansions $27.2M Australian hospital expansions to be funded through existing resources $49.0M 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 $11.1M of stabilized net operating income Potential to generate up to an incremental $0.05 of AFFO/Unit (1) $13.9M of stabilized value accretion Potential to generate up to an incremental $0.17 of NAV/Unit (1) Country Projects 2 2 Est. Completion Q to Q Q / Q Project Cost Cost to Complete Pre-Leased Occupancy Project Yield Project NOI Potential Value Accretion % 8.5% % 10.5% Q % 7.1% Assuming projects are 100% debt funded at the existing region s financing costs and is for indicative purposes only. 19

21 DEVELOPMENT PROJECTS CANADA Barrie Medical Centre Barrie, ON Toronto West Health Centre Etobicoke, ON Acquired in early 2015 Project cost ~$26.0M Stabilized Yield 6.5% Acquired in early 2015 Project cost ~$25.5M Stabilized Yield 6.5% Opening Date May 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. 20

22 ACQUISTION PROFILE GERMANY Asset under contract: Purchase Price ~ 15.0M (~C$23.0M) # of Buildings 2x Asset Type Rentable Area Medical Office Buildings 82,000 sf Occupancy ~98% Building Age Lease Terms: Cap Rate ~7.0% WALE ~5.0 years Tenants 53 tenants (85% medical / 15% retail) Lease Type Double-net; ~80% with renewal options Rental Growth Inflation-indexed 21

23 STRATEGY & OUTLOOK 22

24 KEY DRIVERS OF HEALTH CARE REAL ESTATE Aging Population >65 population cohort growing rapidly in developed countries 580mm people worldwide over 65 by 2018, ~10% of global population Consolidation & Cost Savings Scale required for efficiency and quality Rise of Public Private partnerships Increased Healthcare Spending $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 23

25 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% 4.0% 4.9% 3.7% 4.2% 3.3% 2.0% 2.0% 1.7% 1.5% -- (2.0%) (4.0%) 1. Source: Green Street Advisors (May 2014) Big 3 HC REITs Major Sectors 24

26 RELATIVE VALUATION THE REIT IS TRADING AFFO MULTIPLE AT A SIGNIFICANT DISCOUNT TO ITS PEERS ON BOTH AN AFFO MULTIPLE AND NET ASSET VALUE BASIS 18x 12x 6x $ x $ x $ x $ x 0 NWH.UN Canadian REITS (EV > $1BN) Internationally Focused Canadian REITS US Healthcare REITS (Top 5) 0 7.2% $ % (11.9%) $9.44 (11.6%) $9.71 (12.7%) $9.35 Implied Share Price PREMIUM / (DISCOUNT) TO NAV - Based on NWH.UN s closing unit price of $9.44/unit as of March 8, 2016 and normalized AFFO/Unit of $0.87 per year ($0.22/unit for the quarter) - NAV is based on Q reported NAV/unit of $

27 INVESTOR FACTSHEET Ticker Listed Exchange Distribution Payable NWH.UN TSX Monthly Distribution Type 100% Return of Capital for 2015 Unit Price $9.44 (March 8, 2016) Market Capitalization $675M Distribution Yield ~8.5% 52 Week Trading Range $7.45 $9.44 Volume Weighted Avg. Price (VWAP) (20 day) $8.89 Average Daily Volume (20 day) 136,000 NAV Q $

28 CONTACT INFORMATION NORTHWEST HEALTHCARE PROPERTIES REIT Paul Dalla Lana, Chairman & CEO Ext Vincent Cozzi, President & CIO Ext Shailen Chande, VP Investments Ext

29 A P P E N D I X 1 REGIONAL PORTFOLIO OVERVIEWS 28

30 PORTFOLIO PROFILE COMBINED PORTFOLIO COMPRISES 122 PROPERTIES TOTALING 8.0MM SQUARE FEET OF GLA IN FIVE COUNTRIES STRONG OPERATING FUNDAMENTALS WITH OCCUPANCY OF ~96%, WALE OF ~10 YEARS AND 68% / 32% MOB/HOSPITAL MIX GLOBAL HEALTHCARE REAL ESTATE INFRASTRUCTURE Q Number of Properties Total Asset Mix (2) 100% MOB GLA (Million Square Feet) Canada Brazil Germany Non- Core Core Australasia (1) Combined Platform Proforma Platform % MOB 100% MOB 100% Hospital 100% MOB ~15% MOB / ~85% Hospital 68% MOB / 32% Hospital 67% MOB / 33% Hospital Gross Assets (3) $1,280 $78 $1,202 $350 $167 $810 $2,700 (4) $2,530 (4) Occupancy 90.7% 76.4% 93.1% 100.0% 95.7% 99.5% 94.3% 95.9% WALE (Years) Avg. Building Age (Years) ~32 ~37 ~31 ~11 ~15 ~15 ~26 ~22 to 25 Weighted Average Cap 6.6% 9.2% 6.4% 7.6% 7.3% 7.2% Rate (5) 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 December 31, Based on total assets of NWH and Vital Trust on a fully consolidated basis, including corporate assets which are not shown; $2.1 billion in proportionate ownership 5. Per IFRS financial statements as of December 31,

31 CANADA: LARGEST PORTFOLIO OF MOB ASSETS INVESTMENT AND MARKET OVERVIEW YT NT NU Canada s largest non-government owner/manager of MOBs and healthcare related facilities Portfolio of 70 properties comprising GLA of 4.6 million sf and ~1,500 tenants 90.7% occupancy and ~4.6 year WALE BC AB SK Spruce Grove (1) Edmonton (4) Airdrie (1) Kamloops (1) Calgary (7) MB Winnipeg (2) ON QC NL PE NB 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 ON Sudbury (2) QC Saint Hubert (1) Lindsay (1) Montreal (1) Orillia (1) Vaudreuil-Dorion (1) Midland (1) Collingwood (1) Whitby (1) Port Hope (1) Mississauga (1) Guelph (2) Toronto (10) Cambridge (1) Oakville (1) Hamilton (3) London (2) St. Thomas (1) Chatham (1) Windsor (2) CANADA Moncton (1) Quebec City (4) Fredericton (1) New Glasgow (1) Lower Sackville (1) Levis (1) Joliette (1) Halifax (2) Dartmouth (1) Laval (1) Lachenaie (1) Longueuil (2) NS Ottawa (1) Richelieu (1) NB PE Le Carrefour Medical Laval, QC Dundas-Edward Centre Toronto, ON 30

32 BRAZIL: NEWLY BUILT PRIVATE PAY HOSPITAL ASSETS INVESTMENT AND MARKET OVERVIEW RORAIMA AMAPÁ Institutional quality, core healthcare infrastructure assets in strategic markets including São Paulo, Brasilia and Rio de Janiero 100.0% occupancy and ~21.2 year WALE ACRE Manaus AMAZONAS RONDÔNIA PARA Bele m TOCANTINS MARANHÃO CEARA Fortaleza RIO GRANDE DO NORTE Natal PIAUI PERNAMBUCO Recife ALAGOAS Macieo 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-) BAHIA Salvador FEDERAL DISTRICT Brasilia GOIAS Hospital Santa Luzia Hospital Coração MATO GROSSO DO SUL SÃO PAULO Hospital Sabará Hospital Brasil PARANÁ SANTA CATARINA RIO GRANDE DO SUL Port Alegre MINAS GERAIS RIO DE JANEIRO Hospital Caxias Rio De Janeiro São Paulo Hospital Infantil Sabará São Paulo Hospital Caxias D Or Rio de Janeiro 31

33 GERMANY: STRATEGICALLY LOCATED MOB ASSETS INVESTMENT AND MARKET OVERVIEW BREMEN SCHLESWIG- HOLSTEIN NIEDERSACHSEN HAMBURG MECKLENBURG-VORPOMMERN BERLIN 6 Berlin Assets High quality MOB assets located in the major markets including Berlin, Frankfurt, Ingolstadt and Leipzig 95.7% occupancy and ~5.0 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 NORDRHEIN-WESTFALEN SAXONY-ASPHALT BRANDENBURG HESSEN Fulda 1 Frankfurt THURINGIA SACHSEN 11 Leipzig Portfolio RHINELAND-PFALZ SAARLAND BADEN-WÜRTTEMBERG BAYERN Ingolstadt 1 Adlershof 1 Berlin Polimedica Berlin Munich Berlin Neukolln Berlin Hollis Centre Ingolstadt 32

34 AUSTRALASIA: STRATEGIC INVESTMENT IN VITAL TRUST INVESTMENT AND MARKET OVERVIEW AUSTRALIA 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, and 4 development lots 99.5% occupancy and ~17.4 year WALE WESTERN AUSTRALIA NORTHERN TERRITORY QUEENSLAND 4 Stable and growing cash flows underpinned by tenancies of high quality hospital and healthcare operators with long-term, inflationindexed leases 1 SOUTH AUSTRALIA 1 NEW SOUTH WALES 6 VICTORIA 6 NEW ZEALAND TASMANIA 1 Epworth Eastern Medical Centre Melbourne, AU Marian Centre Perth, AU 6 Epworth Eastern Hospital Melbourne, AU Ascot Hospital Auckland, NZ 33

35 A P P E N D I X 2 MANAGEMENT BIOGRAPHIES 34

36 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 MANAGEMENT COMBINED REIT Paul Dalla Lana Chairman & CEO Vincent Cozzi President and CIO Founder of NWH REIT Largest unitholder of NWH President and CIO Previously Senior Vice President, Acquisitions at Ventas REGIONAL OPERATING PLATFORM AND EXPERTISE Peter Riggin President Canada Gerson Amado Managing Director Brazil Fully integrated real estate owner and operator HQ in Toronto plus five regional offices 139 professionals Leading healthcare real estate asset management platform Relationships with hospital operators Rede D Or SL and Sabara 2 professionals LOCAL MARKET KNOWLEDGE AND STRONG RELATIONSHIPS WITH LEADING HEALTHCARE PROVIDERS Teresa Neto CFO CFO Previously CFO of KEYreit and Retrocom REIT Chartered Accountant Jan Krizan Managing Director Germany Established platform with full property management and asset management capabilities Office in Berlin 19 professionals OVER 180 PROFESSIONALS ACROSS 9 OFFICES IN 5 COUNTRIES Mike Brady EVP & General Counsel EVP and General Counsel Previously a Partner at Baker & McKenzie LLP and McLean & Kerr LLP David Carr President - Australasia CEO Vital Trust Fully integrated property management and asset management Offices in Auckland and Melbourne 12 professionals 35

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