Q: What are your thoughts on this outfit?
Interest rates are going down, so should be good for them
Interest rates are going down, so should be good for them
5i Research Answer:
NWH.UN is up 11% this year, as it benefits from lower rates and recovers from its big distribution cut last year. It has sold some assets to improve its balance sheet. But, growth is low and even with the cut the payout ratio was 105% in the Q2. Lower cash flow is expected in 2024 with some recovery in 2025. The worst may be over for the unit price, but it is still hard to give this a strong endorsement.