TMR Capital (PTC) Limited’s View on Northwest Healthcare Properties REIT

ROAD TOWN, British Virgin Islands--(BUSINESS WIRE)--TMR Capital (PTC) Limited (“TMR”), with a shareholding in Northwest Healthcare Properties REIT (“Northwest”), believes, in its opinion, that the board of Northwest (the “Board”) should consider its recommendations for strategy aimed at returning value to shareholders, which TMR has communicated to the Board as listed below:

• TMR, in its opinion, does not believe Northwest has a future as a Canadian Real Estate Investment Trust (“REIT”) given the complexity and geography of its holdings and should be restructured as follows:
  • The Canadian assets should be demerged and listed as a separate Canadian REIT
  • The US assets should be sold or merged into a US REIT
  • The European assets should be sold or merged into a European REIT
  • The Brazilian assets should be sold
  • The Australasian assets should be possibly merged and spun off or sold separately
  • Overhead expenses, which are high as a result of the abovementioned complexity, need to be reduced through increased efficiency to bring EBITDA in line with peers. TMR believes that this will occur as part of the above restructuring.
  • TMR believes operating efficiencies can increase such that the consolidated EBITDA margins can improve by at least 4 cents per share annually
• TMR has spoken to institutional investors and advisors who share similar concerns as regards the above changes
• All excess proceeds should then be returned to Northwest shareholders as special dividends.
  • TMR believes, in its opinion, with its assistance on the Board, that a breakup value in excess of C$6/share can be achieved within a finite period, excluding dividends received from the ongoing operation.
• Two TMR representatives to go on the Board and assist in the above strategy
• TMR is of the opinion that the capital markets will recognise the value of the above strategy and welcome TMR’s role on the Board

About TMR

TMR is a BVI based family office with investment activities in both North America and Europe. TMR concentrates in equities, fixed income, real estate (including healthcare). It is in parallel a value-added investor focusing on companies which need restructuring and repositioning as well as providing specialist management and directors as required. TMR has an excellent track record in identifying and assisting such companies in returning capital to shareholders on a profitable basis.

More information about TMR: https://www.tmrcapitalptc.com.