The Globe and Mail reports in its Tuesday edition that fund manager Jamie Murray at Toronto's Murray Wealth Group is keen on Northwest Healthcare Properties REIT. The Globe's Brenda Bouw writes that Northwest had a bad year in 2023. Mr. Murray says it had too much debt as interest rates increased, but it brought in a new chief executive officer who cut the distribution and then began rationalizing assets to reduce debt and bring the balance sheet back to a more manageable level. "We think you can hang the 'mission accomplished' banner," Mr. Murray said. "Its payout ratio going into 2025 should fall meaningfully below 100 per cent, ensuring it will have enough cash to pay out distributions. Also, the properties it owns, including hospitals or medical office buildings worldwide, are doing well. It's the health care sector, which means long-term leases and businesses that tend to do well regardless of the economic cycle. The company is in a much better position, but the stock hasn't reacted much. We first acquired units in 2022 and then tripled our position with several purchases through 2024. At the $5 a unit level, we think it's the most attractive REIT on the market today. Risks include a return to rising interest rates."
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