Q INVESTOR UPDATE. May 11, 2017

Transcription

1 Q INVESTOR UPDATE May 11, 2017

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, inplace 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 ), net operating income ( NOI ) and net asset value ( NAV ) are not measures recognized under International Financial Reporting Standards ( IFRS ) and do not have standardized meanings prescribed by IFRS. FFO, AFFO, NOI, and NAV are supplemental measures of a real estate investment trust s performance and the REIT believes that FFO, AFFO, NOI, and NAV are relevant measures of its ability to earn and distribute cash returns to unitholders. The IFRS measurement most directly comparable to FFO, AFFO and NOI is net income. The IFRS measurement most directly comparable to NAV is net equity. 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, 2016, as filed on SEDAR and a reconciliation of NAV is presented herein. 1

3 CORE HEALTHCARE INFRASTRUCTURE IN MAJOR MARKETS T O R O N T O NorthWest Healthcare Properties Real Estate Investment Trust (TSX: NWH.UN) is a SÃO PAULO A U C K L A N D specialist healthcare real estate investor that owns a high quality portfolio of medical office and hospital properties located throughout major markets in Canada, Brazil, B E R L I N S Y D N E Y MELBOURNE Germany, Australia and New Zealand. ESTABLISHED RELATIONSHIPS WITH LEADING HEALTHCARE OPERATORS NWH AT A GLANCE 9.5M 142 $4.2BN SQUARE FEET (3) PROPERTIES (3) TOTAL ASSETS (3) Australasia Q1-17 NOI DIVERSIFICATION (4) Canada Q1-17 MOB/Other 95.7% 11.2 OCCUPANCY YEAR WALE 6.9% IFRS CAP RATE Q1-16 REGIONS Q1-16 ASSET MIX Germany $1.1BN 7.4% 85.0% Hospital MARKET CAP (1) DISTRIBUTION YIELD (1) PAYOUT RATIO (2) Brazil 2

4 KEY METRICS As Reported Normalized Run Rate Deliver stable property operating performance, cash flow and distributions Track to management run rate and guidance Adjusts for un-deployed cash from $93M April equity, other financing activities, Hamburg & Fulda acquisitions, Q1-17 nonrecurring items Track to management run rate and guidance AFFO/unit (5) $0.98/unit $0.94/unit ~$0.95/unit LTV (6) 40.6% / 49.9% 39.2% / 48.0% <40% / <50% NAV (7) $12.29/unit $12.55/unit ~$12.50/unit Occupancy / WALE 95.7% 11.2 years 95.7% 11.2 years 96% 11 years Portfolio Quality 3

5 TRANSFORMATIONAL GROWTH CONTINUES Total Book Value of Assets (C$mm) $4,500 $4,000 $3,500 $3,000 $2,500 $2,000 $1,500 $1,000 $500 $572 $746 $1,012 $1,282 $1,315 $1,245 $2,700 $3,686 $4,194 Strategic International Growth Operational Strength Scalable Platform Defensive Healthcare Assets Internal value creation opportunities - IPO Q1-17 Canadian Medical Office Building (MOB) Consolidation NWI investment and international growth Defensive High Quality Portfolio Improved Market Profile Positioned for Growth Core Healthcare Focus Major Global Markets Asset & Capital Diversification Improved Portfolio Metrics Increased Market Capitalization Reduced Payout Ratio Reduced Leverage Increased NAV Aligned & Integrated Global Platform Leverage Institutional Relationships Identified Expansions and Developments Actionable Acquisition Pipeline 4

6 DASHBOARD GROSS BOOK VALUE (3) NORMALIZED AFFO / UNIT +55% YoY (7x increase since inception) (8) + 8% YoY (17.5% since inception) (8) $572m $2,711m $4,194m $0.80 $0.87 $0.94 At inception Q Q Normalized At inception FY2016 Q Normalized OCCUPANCY +90bp increase YoY with International Portfolio above 98% WEIGHTED AVERAGE LEASE EXPIRY +1.4yr YoY - Long-term Stability 90.7% 94.8% 95.7% At inception Q Q Normalized At inception Q Q Normalized 5

7 FINANCIAL AND OPPERATIONAL METRICS GROSS BOOK VALUE GBV has increased from $2.7BN to $4.2.BN, a ~55% increase PORTFOLIO QUALITY Portfolio Quality improved - occupancy up from ~95% to ~96% with longer lease terms from ~10 years to ~11 years. Normalized GBV YoY % Q1-16 Q2-16 Q3-16 Q4-16 Q1-17 Occupancy % 97.0% 95.7% 95.9% 96.0% 95.6% 94.8% 94.9% 95.0% % % % 91.0% 90.0% Q1-16 Q2-16 Q3-16 Q4-16 Q1-17 Wale SP NOI NAV (7) Cash Flow SP NOI increased 6.0% in Q1-17 vs. Q1-16. Normalized NAV has increased from $10.60 to $12.55 ~18.4% increase SP NOI Growth 9% 8% 7% 6% 5% 4% 3% 2% 1% 0% 4.1% 4.7% 4.7% 7.6% 6.0% Q1-16 Q2-16 Q3-16 Q4-16 Q Normalized NAVPU Q1-16 Q2-16 Q3-16 Q4-16 Q1-17 6

8 FINANCIAL AND OPPERATIONAL METRICS FINANCIAL PROFILE Annualized AFFO / Unit has increased from $0.87 to $0.94, 8.0% increase. Payout Ratio has reduced from ~92% to 85%. CAPITALIZATION Consolidated LTV (Excl. Converts) has decreased from ~49% (Q1-16) to ~39% (Q1-17 Normalized) AFFOPU AFFO payout ratio 65% % 91% % % % 85.1% 0.94 Q1-16 Q2-16 Q3-16 Q4-16 Q1-17 Q1-17 N 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 60% 55% 50% 45% 40% 35% 55.6% 54.2% 51.2% 51.5% 49.2% 49.9% 48.1% 47.9% 43.1% 41.5% 40.6% 39.1% Q1-16 Q2-16 Q3-16 Q4-16 Q1-17 Q1-17 N LTV Excl. Converts LTV Incl. Converts CAPITAL RAISE CAPITAL MARKETS AND LIQUIDITY Total capital issuance of ~$633M; $486M in NWH (includes April 06 offering); $147M in Vital. Equity Raise Debt Vital Q1-16 Q2-16 Q3-16 Q4-16 Q1-17 LTM 7

9 2017 YTD - $102M OF STRATEGIC INTERNATIONAL ACQUISITIONS February 2017 February 2017 February 2016 March 2017 April 2017 Acquisition of a Medical Office Building complex consisting of 2 buildings in for EUR$20.8M. Increase interest to 22.9% (+3%) of GHC REIT for a total investment of $C13.2M during Q1/17. April NW announced off-market takeover offer for all GHC outstanding units it does not already own. Acquisition of Abbotsford Private Hospital in Perth Australia for A$20 at ~ 6.95% cap rate for 25 years lease term with Health Care as Tenant Acquisition of Grafton Aged Care Facility and adjacent area for potential future expansion and Epworth Eastern Hospital fit-out for a combined value of A$27.6 Acquisition of Ormiston Hospital in New Zealand for A$33.0 at ~ 6.65% cap rate Germany Generation Vital Trust (1) Vital Trust (2) Vital Trust (3) Total Size (C$M) ~$31 ~$13 ~$19 ~$29 ~$31 ~$123 GLA (Square Feet) ~1.7 Cap Rate ~6% - ~7% ~7% ~7% ~7% Occupancy ~97% - 100% 100% 100% ~99.0% WALE (yrs) ~8.0 - ~25.0 ~25.0 ~6.0 ~15.6 8

10 HIGHLIGHTS OF UNCONDITIONAL BID FOR GENERATION REIT NORTHWEST HAS ANNOUNCED A BEST AND FINAL BID TO ACQUIRE 100% OF THE UNITS OF GENERATION HEALTHCARE REIT NorthWest has made an unconditional takeover offer to acquire all of the units in Generation Healthcare REIT ( Generation ) that it does not already at a Best and Final price of A$2.30 per Unit. On May 11, 2017 NWH owned 28.7% of outstanding Generation units Maximum cash consideration of A$392M will be fully funded from existing and committed resources The transaction is accretive to AFFOPU in 2018 while delivering additional growth over time through Generation s organic prospects Compelling strategic rationale: Further scales and simplifies NorthWest s structure: Additional C$598 million in directowned high-quality properties. Provides added optionality for its regional investment strategy and planned institutional capital initiatives Strongly aligned with existing NorthWest strategy: Generation portfolio has a major market focus, centred around Australia s three largest cities (Sydney, Melbourne and Brisbane), a stable and growing cash flow profile and a core healthcare strategy Increased exposure to Australian private Healthcare: Australia is the world s 5th largest private healthcare market with large, sophisticated healthcare operators seeking real estate capital Improved portfolio characteristics: Improves the REIT s market leading direct ownership portfolio occupancy and weighted average lease profile Increased exposure to compelling organic growth prospects: Generation has a significant pipeline (~A$110m) of accretive expansion and development opportunities and almost all of its leases are indexed to inflation 9

11 F I N A N C I A L O V E RV I E W 10

12 FINANCIAL HIGHLIGHTS POSITIVE FINANCIAL OPERATING RESULTS IN LINE WITH MANAGEMENT GUIDANCE NORMALIZED RESULTS HAVE BEEN ADJUSTED TO REFLECT THE IMPACT OF RECENTLY COMPLETED TRANSACTIONS Q1-17 As Reported Q1-17 Normalized NOI $52.9M $53.3M FFO $24.5M $26.0M AFFO $23.1M $25.0M W.A Units Outstanding 94, ,323 AFFO / Unit (4) $0.25/unit $0.24/unit Payout Ratio 82.0% 85.0% LTV (5) 40.6% / 49.9% 39.2% / 48.0% NAV / Unit (6) $12.29/unit $12.55/unit NORMALIZATION ADJUSTMENTS Normalization adjustments principally relate to: - Acquisition of 2 properties in Germany in February 2017 funded with a combination of equity and debt - Public offering of 9,179,300 trust units (C$ 97.8M) in April Repayment of facilities and revolving debt with proceeds of January and April equity offering - Accrued rent to 2017 based on contract rental indexation adjustments in Brazil - Adjustment for the Vital Incentive Fee accrued in the quarter - Other non-recurring items that will not have an on-going impact in future quarters. 11

13 REGIONAL DASHBOARD C A N A D A B R A Z I L SP NOI Growth -1.4% (9) Occupancy 91.9% LEADING MEDICAL OFFICE BUILDING PLATFORM STRONG RELATIONSHIPS WITH LEADING OPERATORS 6.7% SP NOI Growth (9) Occupancy 100% WALE 4.9YR WALE 21.4YR A U S T R A L A S I A G E R M A N Y LEADING PUBLICLY LISTED HEALTHCARE TRUSTS 2.4% 3.6% SP NOI Growth (9) Occupancy 98.8% WALE 18.2YR SP NOI Growth (9) Occupancy 94.7% WALE 4.9YR CONSOLIDATION OF MEDICAL OFFICE BUILDINGS 12

14 SEGMENTED FINANCIAL INFORMATION (10) Canada Brazil Germany Vital Vital Mgr. Mgr. GHC Generation Mgr. Corporate Combined NORMALIZED INCOME SUMMARY: NOI $18.9 $13.7 $3.2 $ $53.3 FFO $13.0 $10.7 $2.2 $0.7 $4.8 $0.7 $0.5 ($6.7) $26.0 AFFO $10.0 $11.0 $2.0 $0.7 $5.3 $0.6 $0.5 ($5.2) $25.0 NORMALIZED BALANCE SHEET SUMMARY: Gross Assets $1,240 $712 $224 $1,144 $54 $119 $68 $84 $3,659 Total Liabilities (7) $697 $136 $113 $407 $5 - $1 $492 $1,851 Unitholders' Equity $542 $576 $112 $217 $62 $119 $67 ($408) $1,288 13

15 CAPITALIZATION Market Capitalization $1.1BN DEBT MATURITY PROFILE (11) Enterprise Value $3.0BN Gross Book Value $4.2BN LTV (Excluding Convertibles) 40.6% LTV (Including Convertibles) 49.9% REGIONAL DEBT STRATEGIES W.A. Interest Rate 4.32% % Unsecured Debt 18.7% % Fixed Debt 82.9% Type Asset Level Term Debt Bank Loans and Securitization Asset Level Term Debt Asset Level Revolving Debt LTV (13) ~54% ~25% ~50% ~39% Market Interest Interest ~3.9% ~7.8% ~1.9% ~4.6% Rates (14) Typical Amortization 25 years 10 years 50 years Interest Only 14

16 QUARTERLY NAV/UNIT IMPACT In Millions Canada Brazil Germany Australasia Total Value Attributable To: International Growth - Canada: Gain driven by incremental density value at development properties in Toronto, partially offset by a valuation decrease at select properties. - Brazil: Cap rate compression of 30 bp QoQ to 8.2% supported by external appraisals in Brazil. NOI increases due to annual indexed leases based on three months of inflation. - Germany: NOI and valuation parameters largely unchanged. The fair value loss is due to write-off of acquisition costs in the quarter. - Australasia:. Demand for healthcare properties continues to be strong with Vital Trust cap rates compressing about 18 bps QoQ to 6.7%. Changes QoQ $11.8 $32.9 ($2.7) $7.5 $49.2 Per Unit $0.12 $0.34 ($0.03) $0.08 $

17 RISK MANAGEMENT FOREIGN EXCHANGE POSITIVE CURRENCY ENVIRONMENT 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 FX Rate Var. % 31-Mar-17 8-May Mar-17 BRL:CAD % EUR:CAD % NZD:CAD % AUD:CAD % WITH ITS BASE VALUE F/X rates up 1.2% since Q Portfolio weighted average 1.2% 16

18 PORTFOLIO OVERVIEW 17

19 PORTFOLIO OVERVIEW CANADA GERMANY $4.2BN International Platform Canada / Brazil / Germany / Australia & NZ 22 Medical Office Buildings 463 Tenants 1 Development Site 58 Medical Office Buildings 1,114 tenants VITAL PROPERTY TRUST Toronto Berlin BRAZIL São Paulo New Zealand Listed Entity 39 Properties 5 Contracted Developments Melbourne GENERATION HEALTHCARE Auckland 7 Hospitals /~1.187 Beds 2 Tenants S&P Rated Tenant Insert GHC logo Australian Listed Entity 16 Properties 3 Contracted Developments 18

20 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 (4) Q1-17 Q1-16 REGIONS NOI DIVERSIFICATION BY ASSET MIX (4) Q1-17 Q1-16 ASSET MIX TOP 10 TENANTS BY GROSS RENT (12) Tenant Region % of Gross Rent Rede D`Or 19.6% Healthe Care 3.7% Bantrel Co. 2.6% CISSS/CIUSSS 2.5% Hospital Sabara 1.8% Winnipeg Regional Health Authority 1.2% Alberta Health Services 1.2% Lawtons Drug Stores Limited Limited 1.1% Province of Ontario 1.0% Shoppers Realty Inc. 1.0% Top 10 Tenants 35.7% 19

21 REPRESENTATIVE INVESTMENTS Toronto West Health Centre Rede D Or Hospital Portfolio Alte Holstenstrasse, Hamburg Abbotsford Private Hospital IFOR and Santa Helena Assets MOB - development Assets 2 Hospitals Assets 1 MOB Assets 1 Hospital Size 82k Square Feet Size 294 Beds + 22 surgical units/ ~475k Square Feet Size ~60k Square Feet Size 17k square feet Tenants Etobicoke Family Health Team Tenants Hospital Operator Rede D Or S.L. Fitch AA+(bra) rated Tenants ~17 Medical Practitioners & Related Services Tenants Health Care Cap Rate (23) ~6.0% Cap Rate (23) ~9.7% Cap Rate (23) ~6.2% Cap Rate (23) ~6.9% Occ. ~90% Occ. 100% Occ. ~93% Occ. 100% Lease Term ~16 Years Lease Term ~25 Years Lease Term ~6.8 Years Lease Term ~25 Years Rental Increase Contract Rents Rental Increase Annual Inflation Index Rental Increase Annual Inflation Index Rental Increase Annual Inflation Index Acquisition Date Completed Q3/16 Acquisition Date Q3/Q Acquisition Date February 2017 Acquisition Date April

22 ACCRETIVE DEVELOPMENT & EXPANSIONS WITH A TRACK RECORD OF COMPLETING MORE THAN $325M OF DEVELOPMENTS AND EXPANSIONS, THE REIT IS LEVERAGING ITS EXPERIENCE TO DELIVER AN ADDITIONAL $230M OF INCOME AND VALUE ENHANCING PROJECTS TO ITS PORTFOLIO ~$235M of committed low risk development & expansions $178M Australian hospital expansions to be funded through existing resources $55M Brazil hospital expansions to be funded through a combination of existing resources and property financing ~$20M of stabilized net operating income Potential to generate up to an incremental ~$0.03 of AFFO/Unit ~$53M of stabilized value accretion Potential to generate up to an incremental $0.23 of NAV/Unit (on a proportionate basis) Country (15) Projects 8 2 Est. Completion Q to Q Q / Q Project Cost Cost to Complete Pre-Leased Occupancy Project Yield Project NOI Potential Value Accretion % ~8.0% % 10.5%

23 ACCRETIVE DEVELOPMENT & EXPANSIONS Generation REIT TWO PROJECTS (FRANKSTON & CASEY) ARE NEARING COMPLETION WITH CONSTRUCTION OF CLAREDON STREET EXPECTED TO COMMENCE IN Q2/17 Projects consist of major expansions to add a combination of inpatient beds, operating theaters, and parking to existing facilities Developments are 100% pre-leased to the existing operators of these facilities under longterm inflation indexed leases Weighted average development yield of 8.3% provides scope to realize potential development gains on completion Millions of A$ Projects Est. Completion Project Cost Cost to Complete Development Yield Projected NOI Potential Value Accretion Frankston Private Expansion Q % Casey Private Private Hospital Q % Epworth Freemasons Clarendon St Q %

24 ACCRETIVE DEVELOPMENT & EXPANSIONS Vital Trust FIVE DEVELOPMENT PROJECTS TOTALLING ~C$62M ARE CURRENTLY UNDERWAY. The projects include a mix of modernisation and expansion at acute surgical and mental health facilities to meet the growing demand for healthcare services ~$5.0M of stabilized net operating income (at 100% interest) ~$10M of potential development gains on completion (at 100% interest) BROWNFIELD REDEVELOPMENTS REMAINS CORE TO VITAL S BUSINESS MODEL AND A KEY DRIVER OF NOI GROWTH Million of A$ Projects Est. Completion Project Cost Cost to Complete Project Yield Project NOI Potential Value Accretion Currumbin Q ~8.0% Sportsmed Consulting Toronto Private Q Q ~7.0% ~8.0% Maitland Private Q ~8.0% Lingard Private Q ~8.0%

25 S T R AT E G Y & O U T L O O K 24

26 RELATIVE VALUATION THE REIT IS TRADING AT A SIGNIFICANT DISCOUNT TO ITS PEERS ON AN AFFO MULTIPLE BASIS (1.3%) - Based on NWH.UN s closing unit price of $10.76/unit as of May 8, 2017 and normalized AFFO/Unit of $0.94 per year ($0.24/unit for the quarter) - NWH.UN s NAV is based on Q of $

27 INVESTOR FACTSHEET Ticker Listed Exchange Distribution Payable NWH.UN TSX Monthly Distribution Type 100% Return of Capital for 2016 Unit Price $10.76 (May 08, 2017) Market Capitalization ~$1.1BN Distribution Yield ~7.4% 52-Week Trading Range $ $11.15 Volume Weighted Avg. Price (VWAP) (20-day) $10.82 Average Daily Volume (20-day) 232,611 NAV (Q1-2017) (7) $

28 A P P E N D I X 1 I N V E S T M E N T T H E S I S 27

29 INVESTMENT HIGHLIGHTS Supportive Fundamentals Attractive Asset Class Growth Opportunities Favourable demographics and industry trends Aging populations Rising healthcare expenditures Defensive core healthcare infrastructure Global gateway cities Leading healthcare operators Significant internal and external growth opportunities Inflation indexed leases Accretive expansions + industry consolidation Value Opportunity Currently trading at an AFFO multiple discount to Canadian REIT peers Proven & Aligned 10+ year public company track record Highly aligned founder and management DEFENSIVE, HIGH YIELDING SECURITY WITH GROWTH POTENTIAL 28

30 KEY DRIVERS OF HEALTH CARE REAL ESTATE Aging Population >65 population cohort growing rapidly in developed countries 604mm people worldwide over 65 by 2020, ~10% of global population Consolidation & Cost Savings Scale required for efficiency and quality Rise of Public Private partnerships Increased Healthcare Spending $8.7 trillion global healthcare spending by % 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 Source: Deloitte 2017 Global Healthcare sector outlook COMPELLING NEED FOR CAPITAL, FACILITIES AND REAL ESTATE SOLUTIONS 29

31 HEALTHCARE REAL ESTATE OPPORTUNITIES NWH s Market Opportunity U.S. Healthcare Opportunity NWH s markets comprise a total population of ~350 million, slightly larger than the United States Total healthcare real estate opportunity estimated to be comparable to the US (~$1 Trillion) across NWH s markets Significant potential consolidation opportunity with NWH s platform currently comprising ~$3.7 billion Estimated U.S. healthcare real estate market exceeds $1 Trillion Largest healthcare REITs acquired over $100 Billion over last 10 years; still own less than 15% of the market Large U.S Healthcare REITs historically generated better returns with lower volatility HISTORICAL NOI GROWTH OF BIG 3 HEALTHCARE REITS (1) Source: Green Street Advisors (January 2017) 30

32 A P P E N D I X 2 REGIONAL PORTFOLIO O V E R V I E W S 31

33 PORTFOLIO PROFILE PROFORMA PORTFOLIO COMPRISES 142 PROPERTIES TOTALING 9.5M SQUARE FEET OF GLA IN FIVE COUNTRIES STRONG OPERATING FUNDAMENTALS WITH OCCUPANCY OF 95.7%, WALE OF 11.2 YEARS AND 64% MOB/OTHER 36% HOSPITAL MIX BY GLA GLOBAL HEALTHCARE REAL ESTATE INFRASTRUCTURE Q PF Number of Properties Asset Mix GLA (Million Square Feet) Canada Brazil Germany Vital Trust GHC Proforma Platform % MOB 100% Hospital 100% MOB ~19% MOB & Other / ~81% Hospital 74% MOB & Other / ~26% Hospital 64% MOB & Other / 36% Hospital Gross Assets $1,239 $712 $224 $1,144 $668 $4.0B Occupancy 91.9% 100.0% 94.7% 98.8% 98.4% 95.7% WALE (Years) Avg. Building Age (Years) ~29 ~12 ~24 ~19 ~12 ~22 Weighted Average Cap Rate 6.6% 8.2% 5.8% 6.7% 6.5% 6.9% 32

34 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 58 properties comprising GLA of 4.0 million sf and ~1,114 tenants 91.9% occupancy and ~4.9 year WALE BC AB SK Spruce Grove (1) Edmonton (4) Airdrie (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 Collingwood (1) Barrie (1) Whitby (1) Mississauga (1) Guelph (2) Toronto (10) Cambridge (1) Oakville (1) London (2) Hamilton (3) CANADA QC NB PE Moncton (1) Quebec City (3) Fredericton (1) New Glasgow (1) Lower Sackville (1) Levis (1) Joliette (1) Halifax (2) Laval (1) Lachenaie (1) Longueuil (2) NS Ottawa (1) Richelieu (1) Saint Hubert (1) Montreal (1) Vaudreuil-Dorion (1) Le Carrefour Medical Laval, QC Dundas-Edward Centre Toronto, ON 33

35 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 ~21.4 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-, Fitch National Rating: AA+) FEDERAL DISTRICT Brasilia GOIAS BAHIA Salvador Hospital Santa Helena Hospital Santa Luzia Hospital Coração Existing Assets 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 Ifor Hospital Infantil Sabará São Paulo Hospital Caxias D Or Rio de Janeiro 34

36 GERMANY: STRATEGICALLY LOCATED MOB ASSETS INVESTMENT AND MARKET OVERVIEW BREMEN SCHLESWIG- HOLSTEIN NIEDERSACHSEN HAMBURG 1 MECKLENBURG-VORPOMMERN BERLIN 7 Berlin Assets High quality MOB assets located in the major markets including Berlin, Frankfurt, Ingolstadt and Leipzig 95.7% 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 NORDRHEIN-WESTFALEN SAXONY-ASPHALT BRANDENBURG HESSEN Fulda 2 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 35

37 AUSTRALASIA (1): STRATEGIC INVESTMENT IN VITAL TRUST INVESTMENT AND MARKET OVERVIEW AUSTRALIA Manager and 24.7% strategic shareholder of Vital Trust (NZX:VHP), Australasia s largest listed healthcare real estate owner with 21 private hospitals, 9 MOBs, 5 aged care assets and 4 development lots 98.8% occupancy and ~18.2 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, inflation-indexed leases 4 SOUTH AUSTRALIA 3 NEW SOUTH WALES 12 VICTORIA 6 NEW ZEALAND TASMANIA 1 Epworth Eastern Medical Centre Melbourne, AU Marian Centre Perth, AU 9 Epworth Eastern Hospital Melbourne, AU Ascot Hospital Auckland, NZ 36

38 AUSTRALASIA (2): STRATEGIC INVESTMENT IN GENERATION HEALTHCARE PORTFOLIO OVERVIEW Epworth Victoria Parade Hospital Melbourne CBD, Victoria Epworth Freemasons Private Hospital Melbourne CBD, Victoria Generation Healthcare REIT (ASX:GHC) is a leading Australian listed healthcare REIT with over $668M in existing assets and a $112M+ development pipeline of yields at ~8.0% on average. Portfolio of 16 Properties of ~1.1M Square Feet 6 hospitals, 5 medical centers, 3 residential aged care, and 2 lands development parcels currently under construction Strong occupancy and long-term lease expiry profile 98.4% occupancy and ~12.0 year WALE Australian Red Cross Blood Clinic Brisbane, Queensland Melbourne Suburb, Victoria Major Market Focus WESTERN AUSTRALIA NORTHERN TERRITORY SOUTH AUSTRALIA Casey Specialist Centre QUEENSLAND NEW SOUTH WALES VICTORIA TASMANIA STRATEGIC FIT 37 The portfolio is centered around Australia s three largest cities: Sydney (pop: ~4.9m), Melbourne (pop: 4.5m), and Brisbane (pop: ~2.3m) Stable, Growing & Accretive Cashflow Long-term inflation indexed leases to some of the region s largest hospital operators Track record of earnings growth through accretive acquisitions, expansions, and developments Core Healthcare Strategy 10+ years of dedicated healthcare focus Strong healthcare operator relationships Healthscope, Epworth Foundation, and St. John of God

39 A P P E N D I X 3 M A N A G E M E N T B I O G R A P H I E S 38

40 GLOBAL PLATFORM WITH REGIONAL CAPABILITY AND EXPERTISE HIGHLY EXPERIENCED AND ALIGNED EXECUTIVE MANAGEMENT TEAM FULLY ESTABLISHED, SCALABLE REGIONAL TEAMS WITH EXPERTISE IN HEALTHCARE PROPERTY OPERATIONS, ACQUISITIONS AND DEVELOPMENT MANAGEMENT COMBINED REIT Paul Dalla Lana Chairman & CEO Bernard Crotty President Founder of NWH & NWI REITs Largest unitholder of REIT Previously President NWI REIT and Trustee NWH REIT REGIONAL OPERATING PLATFORM AND EXPERTISE Gerson Amado Managing Director Brazil Jan Krizan Managing Director Germany Leading healthcare real estate asset management platform Relationships with hospital operators Office in Sao Paulo / 6 professionals Established platform with full property and asset management capabilities Office in Berlin 19 professionals LOCAL MARKET KNOWLEDGE AND STRONG RELATIONSHIPS WITH LEADING HEALTHCARE PROVIDERS Shailen Chande CFO Previously VP, Finance and Investments NWI REIT and its predecessor companies Chartered Accountant David Carr CEO Vital Trust Fully integrated property management and asset management Offices in Auckland and Melbourne 12 professionals OVER 180 PROFESSIONALS ACROSS 9 OFFICES IN 5 COUNTRIES Peter Riggin COO & MD Canada Previously President Canada, NWH REIT and CEO NWH REIT Miles Wentworth CEO Generation REIT Fully integrated asset & development management Office in Melbourne 6 professionals 39

41 NOTES 1. Based on NWH.UN s closing unit price of $10.76/unit as of May 8, Based on the REIT s distribution policy of $0.80/unit per annum and normalized Q1-17 AFFO of $0.94/unit. 3. Based on total assets of NWH, Vital Trust and GHC on a fully consolidated basis including post-quarter acquisitions. NHW owns a 24.7% interest in Vital Trust and 28.7% interest in Generation. 4. 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 in Canada and include i) the REIT s 22.7% (based on ownership interest at quarter end) on and 24.7% proportionate ownership of GHC and Vital Trust, respectively and ii) Vital and Generation management fee income. 5. Reported AFFO/Unit represents quarterly AFFO annualized for the three month period ending March 31, Normalized AFFO/unit is based on Q1-17 Reported AFFO/unit and adjusted for completed acquisitions, and financings as presented in the REIT s Q1-17 MD&A PART XIII. 6. LTV excludes/includes convertible debentures and is shown on a fully consolidated basis (Vital Trust at 100%). On a proportionate ownership basis, Reported LTV is 40.6% / 49.9% and Normalized LTV is 45.8% / 57.8%, respectively. 7. NAV is based on unitholder s equity plus add-backs of (i) $200.4M of Class B and D exchangeable units; (ii) $93.5M related to the REIT s proportionate share of its deferred tax liability; (iii) $7.0M net derivative financial instruments; (iv) $17.0M DUP liability; (v) $2.5M accrued Ontario LTT; and, (vi) $13.5M adjustment to the fair value of the Vital Manager. Normalized NAV is based on reported NAV adjusted for (i) Post Q1-17 F/X rates, (ii) April Equity Offering, (iii) Vital Cap Rate compression. 8. At inception represents metrics for NorthWest Healthcare Properties based on the IPO prospectus dated of March 25, Represents same property NOI growth YoY ( SPNOI ) for the three months ended March 31, 2017 in and excludes non-cash amortization and non-recurring transactions. 10. Represents Financial Statements as of March 31, 2017 adjusted for normalization adjustments, presented in the REIT s Q1-17 MD&A PART XIII. 11. Reflects the debt maturity profile as per the REIT s Q1-17 MD&A and does not include deferred consideration. 12. Gross rent has been adjusted to reflect the REIT s 24.7% proportionate interest in Vital Trust as well as recording Hospital Sabara at its gross rent (before financing) and includes projected gross rent from the REIT s 22.7% proportionate ownership of GHC. 13. LTV s are excluding corporate debt (ie. convertible debentures and revolving credit lines) and are shown on a regional basis. 14. Represent estimate of current market rates. 15. Assuming projects are 100% debt funded at the existing region s financing costs and is for indicative purposes only. Does not include development pipeline from announced acquisitions. 40

42 CONTACT INFORMATION NORTHWEST HEALTHCARE PROPERTIES REIT Paul Dalla Lana, Chairman & CEO Ext Shailen Chande, CFO Ext

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