Morningstar DBRS Finalizes Provisional Credit Rating of BBB (low) With Stable Trend on Northwest Healthcare Properties Real Estate Investment Trust's Inaugural Offering of Senior Unsecured Debentures

DBRS Limited (Morningstar DBRS) finalized its provisional credit rating of BBB (low) with a Stable trend on Northwest Healthcare Properties Real Estate Investment Trust's (Northwest or the Trust) Senior Unsecured Debentures, including its CAD 200 million 5.019% Series A Senior Unsecured Debentures, due February 18, 2028 (the Series A Debentures), and CAD 300 million 5.514% Series B Senior Unsecured Debentures, due February 18, 2030 (the Series B Debentures; together with the Series A Debentures, the Debentures).

The Debentures are direct senior unsecured obligations of Northwest and rank equally and rateably with all other unsecured and unsubordinated indebtedness of the Trust, except to the extent prescribed by law. The Debentures are guaranteed by each subsidiary of Northwest that has provided a guarantee pursuant to the Trust's credit agreement.

Morningstar DBRS understands that Northwest intends to use the net proceeds of the offering to repay outstanding indebtedness, including the 2025 convertible debentures.

Please refer to the most recent Morningstar DBRS press release on Northwest dated February 5, 2025 (https://dbrs.morningstar.com/research/447413), for more information on the Trust's Issuer rating.

ENVIRONMENTAL, SOCIAL, AND GOVERNANCE CONSIDERATIONS
There were no Environmental/Social/Governance factor(s) that had a significant or relevant effect on the credit analysis.

A description of how Morningstar DBRS considers ESG factors within the Morningstar DBRS analytical framework can be found in the Morningstar DBRS Criteria: Approach to Environmental, Social, and Governance Factors in Credit Ratings (August 13, 2024) at https://dbrs.morningstar.com/research/437781.

BUSINESS RISK ASSESSMENT (BRA) AND FINANCIAL RISK ASSESSMENT (FRA)
(A) Weighting of BRA Factors
In the analysis of the Trust, the BRA factors were considered in the order of importance contemplated in the methodology.

(B) Weighting of FRA Factors
In the analysis of the Trust, the FRA factors were considered in the order of importance contemplated in the methodology.

(C) Weighting of the BRA and the FRA
In the analysis of the Trust, the BRA carries greater weight than the FRA.

Notes:
All figures are in Canadian dollars unless otherwise noted.

Morningstar DBRS applied the following principal methodology:
-- Global Methodology for Rating Entities in the Real Estate Industry (April 15, 2024) https://dbrs.morningstar.com/research/431170.

Morningstar DBRS credit ratings may use of one or more sections of the Morningstar DBRS Global Corporate Criteria (February 3, 2025 https://dbrs.morningstar.com/research/447186) which covers, for example, topics such as holding companies and parent/subsidiary relationships, guarantees, recovery, and common adjustments to financial ratios.

The credit rating methodologies used in the analysis of this transaction can be found at: https://dbrs.morningstar.com/about/methodologies.

A description of how Morningstar DBRS analyzes corporate finance transactions and how the methodologies are collectively applied can be found at: https://dbrs.morningstar.com/research/431153.

The related regulatory disclosures pursuant to the National Instrument 25-101 Designated Rating Organizations are hereby incorporated by reference and can be found by clicking on the link under Related Documents or by contacting us at info-DBRS@morningstar.com.

The credit ratings were initiated at the request of the rated entity.

The rated entity or its related entities did participate in the credit rating process for these credit rating actions.

Morningstar DBRS had access to the accounts, management, and other relevant internal documents of the rated entity or its related entities in connection with these credit rating actions.

These are solicited credit ratings.

The conditions that lead to the assignment of a Negative or Positive trend are generally resolved within a 12-month period. Morningstar DBRS trends and credit ratings are under regular surveillance.

Lead Analyst: Christopher Tsichlas, Senior Vice President, Sector Lead - North American Corporate Real Estate Ratings

Rating Committee Chair: Brenda Lum, Managing Director - North American Corporate Real Estate Ratings

Initial Rating Date: February 5, 2025

Information regarding Morningstar DBRS ratings, including definitions, policies, and methodologies, is available on https://dbrs.morningstar.com or contact us at info-DBRS@morningstar.com.

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