Northwest Healthcare Properties REIT Receives Investment-Grade Credit Rating of BBB (Low) with Stable Trend from Morningstar DBRS
Northwest Healthcare Properties Real Estate Investment Trust (TSX: NWH.UN), referred to as “Northwest” or “the REIT,” has announced a significant development in its ongoing journey to enhance financial strength and institutional credibility. The company, a prominent owner and operator of healthcare real estate across key global markets including North America, Brazil, Europe, and Australasia, has been assigned an inaugural investment-grade issuer credit rating of BBB (low) with a Stable trend by Morningstar DBRS.
This milestone represents a major achievement for Northwest, which has spent the last several years positioning itself as a premier healthcare REIT with a diversified and resilient portfolio. The BBB (low) credit rating from Morningstar DBRS is a vote of confidence in the REIT’s operating model, geographic diversity, and financial management. It reflects not only the current strength of Northwest’s business, but also its long-term stability and growth prospects.
Affirming Strength Through Diversification and Quality
According to Northwest, the credit rating is a reflection of the trust’s strong fundamentals, including its broad geographic footprint and a tenant base composed primarily of leading healthcare systems and operators. With more than 230 properties across eight countries, the REIT’s portfolio is highly diversified both geographically and by tenant type. This diversification significantly mitigates risk and contributes to the REIT’s overall financial resilience.
“Today marks a significant milestone for Northwest,” said Craig Mitchell, Chief Executive Officer of Northwest Healthcare Properties REIT. “This rating affirms the strength of our global healthcare real estate portfolio, our diverse tenant base, and the high-quality operating platform we’ve built. It also reinforces our strategic objective of building a resilient, institutional-quality healthcare REIT.”
Mitchell emphasized that the REIT’s long-term strategy has always focused on sustainable growth supported by strong governance and prudent financial management. Achieving an investment-grade credit rating is a direct result of these strategic efforts and serves as a foundation for future initiatives.
Financial Discipline and Operational Execution
Stephanie Karamarkovic, Chief Financial Officer of Northwest, highlighted the financial management achievements that led to the credit rating, noting improvements in leverage, liquidity, and overall capital structure.
“The assignment of an investment-grade credit rating validates our execution and progress towards strengthening the balance sheet,” said Karamarkovic. “While we have significantly reduced leverage and improved our cost of capital, our focus remains on further strengthening our financial position.”
Over the past several quarters, Northwest has implemented a number of initiatives aimed at enhancing financial flexibility. These include optimizing its capital structure, reducing exposure to short-term debt, and increasing liquidity through strategic asset sales and refinancing initiatives. The REIT has also taken steps to reduce its payout ratio and improve cash flow sustainability—important factors considered by credit rating agencies.
Impact of the Rating on Future Strategy
The newly assigned BBB (low) credit rating opens up several strategic advantages for Northwest. It increases the trust’s appeal to institutional investors, broadens access to more favorable financing options, and may lower borrowing costs over time. For a capital-intensive sector like real estate—especially in specialized asset classes such as healthcare infrastructure—access to cost-effective capital is crucial.
With this investment-grade rating, Northwest is better positioned to pursue accretive acquisitions, support development projects, and maintain a strong pipeline of long-term leasing relationships with leading healthcare operators around the world. Moreover, the stable trend attached to the rating signals that Morningstar DBRS expects Northwest’s financial and operating outlook to remain steady, barring any unforeseen circumstances.
This additional layer of financial credibility also benefits existing stakeholders—such as shareholders, lenders, and tenants—who can be assured of Northwest’s disciplined approach to growth and risk management.
Building an Institutional-Quality Healthcare REIT
Northwest’s vision has always been centered around establishing a healthcare real estate platform that meets the expectations of institutional investors and partners. The REIT focuses on essential healthcare infrastructure—such as hospitals, medical office buildings, and specialty clinics—that are mission-critical to the delivery of healthcare services in their respective markets.
The healthcare real estate sector is known for its defensive characteristics, including long lease terms, stable occupancy, and inflation-protected rent escalations. These attributes are particularly appealing in uncertain economic environments, and Northwest’s strategic alignment with healthcare operators creates a durable business model with long-term visibility.
By maintaining deep relationships with hospital systems, universities, and government healthcare programs, Northwest creates value through stability and long-term partnerships. The REIT’s emphasis on assets that serve an essential public good also enhances its resilience during periods of macroeconomic volatility.
Global Platform with Local Expertise
What further sets Northwest apart from many of its peers is its truly global platform. With operations in multiple continents, the REIT can pursue growth in a variety of economic and regulatory environments. At the same time, it maintains localized expertise in each region, ensuring that asset and tenant management are handled with precision and cultural awareness.
Northwest’s ability to operate effectively in diverse markets—including Canada, Australia, Germany, Brazil, the UK, and New Zealand—has been a cornerstone of its success. The REIT leverages its global footprint to identify high-quality investment opportunities and to deploy capital in a disciplined, return-focused manner.
The credit rating assigned by Morningstar DBRS takes into account the REIT’s proven ability to manage complex cross-border operations while maintaining high levels of portfolio performance and tenant satisfaction.
Future Priorities
Looking ahead, Northwest is expected to continue focusing on balance sheet optimization, operational efficiency, and strategic portfolio management. The REIT’s management team has expressed a commitment to maintaining financial discipline and exploring opportunities to strengthen its investment-grade profile over time.
Further deleveraging, strategic dispositions, and prudent capital allocation are expected to remain core components of Northwest’s financial strategy. In addition, the REIT will continue exploring potential partnerships and joint ventures that align with its long-term growth objectives.
Northwest also remains attuned to evolving market conditions and is positioning itself to respond to changes in interest rates, inflation, and global capital flows. With healthcare demand continuing to rise due to aging populations and increased public health spending, the REIT is well-positioned to grow alongside these trends.
The assignment of a BBB (low) credit rating with a stable outlook from Morningstar DBRS is a pivotal development for Northwest Healthcare Properties REIT. It represents the culmination of years of strategic planning, operational execution, and financial stewardship. With this rating in place, the REIT now has greater access to capital markets, enhanced stakeholder confidence, and a stronger foundation for future growth.
Northwest continues to demonstrate that healthcare real estate—when managed with expertise, diversification, and a global perspective—can deliver long-term, sustainable value for investors. As it moves forward, the REIT remains committed to delivering high-quality infrastructure to the healthcare sector while achieving institutional-grade performance on all fronts.
