In the latest episode of the Northwest Healthcare Properties REIT saga, the boardroom gets a refresh with new players Robert "Bobby" Julien and Graham Garner stepping onto the scene. Julien is the chief executive of the Kolter Group. He is well versed in NWH’s situation given his management of the affiliated Kolter Capital, which owns approximately 9.6% of the REIT's units, and Garner, a jack-of-all-trades diving into multiple committees, are poised to shake things up amidst a strategic review that's more suspenseful than your favorite thriller.
The plot thickened last year with the REIT cutting its distribution by a stark 55%, a move that's caused ripples of discontent, including from former CEO Paul Dalla Lana, who's not just sitting on the sidelines with his 10% stake. He's looking for a rewrite of the current narrative, one that might put him back in a leading role.
Meanwhile, the REIT is offloading assets like hotcakes, trying to patch up an $81.3 million quarterly loss hole and strengthen a wobbly balance sheet. Analysts, notably Michael Markidis, are watching from the stands, waiting for a play that'll change the game, but the REIT's moves so far have them holding their breath rather than cheering.
CEO Craig Mitchell is attempting a financial Houdini act, focusing on asset sales and debt dodging as the path to redemption. Yet, with the REIT's units trading at bargain basement prices, the market's left wondering if this storyline will lead to triumph or tragedy.
As the curtain rises on this boardroom drama, one thing's clear: the addition of Julien and Garner might just be the plot twist Northwest Healthcare needs. But will it be enough to turn the tide in a narrative filled with financial twists and turns? Only time will tell.
