Northwest Healthcare Properties Real Estate Investment Trust Reports Fourth Quarter And Year End 2025 Results, Provides Updates On Strategic Initiatives, And Announces Name Change To Vital Infrastructure Property Trust

(MENAFN- Newsfile Corp) Northwest Healthcare Properties Real Estate Investment Trust Reports Fourth Quarter and Year End 2025 Results, Provides Updates on Strategic Initiatives, and Announces Name Change to Vital Infrastructure Property Trust

February 24, 2026 8:58 PM EST | Source: Northwest Healthcare Properties REIT

Toronto, Ontario--(Newsfile Corp. - February 24, 2026) - Northwest Healthcare Properties Real Estate Investment Trust (TSX: NWH) (the "REIT" or "Northwest"), a global investor and operator of healthcare infrastructure assets in North America, Australia, Brazil, and Europe, announced its results for the three months and year ended December 31, 2025. The REIT also provided updates on its portfolio repositioning strategy and capital initiatives, and announced a corporate name change to Vital Infrastructure Property Trust ("Vital Infrastructure").

Zach Vaughan, CEO of the REIT, commented, "This past year was transformational for the REIT as we executed on our strategy to simplify the business, strengthen the balance sheet, and sharpen our focus on high quality healthcare infrastructure. We delivered steady operating performance, improved our leverage and liquidity position, and advanced key portfolio initiatives, including monetizing our New Zealand management contract and progressing the planned sale of our European portfolio. As we move forward under our new name, Vital Infrastructure, we remain focused on driving long-term unitholder value through disciplined capital allocation and a portfolio of essential, defensive healthcare real estate."

Q4 2025 Highlights ⁽¹⁾

Highlights for Q4 2025 and events subsequent to the quarter are set out below:

• Revenue from investment properties was $107.6 million, an increase of 4.8% from Q4 2024, primarily driven by same-property revenue growth and foreign exchange impacts, partially offset by dispositions of non-core assets completed during 2024 and 2025.
  
• Same Property Net Operating Income ("SPNOI")⁽²⁾ increased by 3.0% to $65.0 million compared to Q4 2024, reflecting steady growth across all regions. The growth was primarily driven by inflationary rent adjustments, rentalised capital expenditures, and improved recoveries.
  
• General and administrative expenses, excluding unit-based compensation expense and employee termination benefits and related expenses, were $11.8 million, an increase of $0.8 million from Q4 2024. The year-over-year increase was primarily driven by lower salary capitalization to development due to reduced development activity, as well as the impact of a weaker Canadian dollar on expenses at the REIT's foreign subsidiaries. For the full year, G&A expenses on the same basis were $1.5 million lower in 2025 compared to 2024, reflecting headcount reductions and ongoing operational simplification initiatives, partially offset by the weaker Canadian dollar relative to the Euro and U.S. dollar.
  
• Net loss for Q4 2025 was $27.0 million, compared to net income of $2.9 million in Q4 2024. The year-over-year change primarily reflects a $51.6 million loss recognized on the internalization of Vital Trust and a $21.6 million foreign exchange loss related to the revaluation of third-party debt and intercompany balances. These impacts were partially offset by a $28.2 million favourable change in the fair value of financial instruments, and lower income tax expense compared to the prior year.
  
• Adjusted funds from operations ("AFFO")⁽²⁾ was $0.12 per unit in Q4 2025 compared to $0.11 per unit in Q3 2025 and $0.10 per unit in Q4 2024, resulting in an AFFO payout ratio of 75%, down from 85% in Q3 2025 and 90% in Q4 2024.
  
• The REIT recorded fair value losses on investment properties of $37.9 million in Q4 2025, compared to fair value losses of $29.9 million in Q4 2024. The movements were mainly attributable to changes in valuation parameters, incorporating market evidence and rent reviews. The REIT's portfolio capitalization rate on proportionate basis⁽²⁾ was 6.9% as at December 31, 2025.
  
• Consolidated debt to gross book value (IFRS)⁽²⁾ decreased to 46.4% at December 31, 2025 from 50.0% at December 31, 2024. On a proportionate basis⁽²⁾, leverage decreased by approximately 600 basis points year-over-year to 52.4%, primarily reflecting debt repayments funded through asset dispositions and capital initiatives. The REIT's proportionate economic weighted average interest rate declined to 4.71% at December 31, 2025, from 5.49% at December 31, 2024.
  
• Operating performance remained strong in Q4 2025, supported by a stable, long-term lease maturity profile with a weighted-average lease expiry ("WALE") of 12.3 years⁽¹⁾ and a global portfolio occupancy rate of 96.4%⁽¹⁾.

Internalization of Management at Vital Trust

On December 30, 2025, Vital Trust completed the previously announced internalization of its external management structure. As part of the transaction, Vital Trust terminated its existing management arrangements and paid the REIT a management termination payment of $170.0 million (NZ$214.0 million).

The payment was primarily funded through an equity offering by Vital Trust in which the REIT did not participate, reducing the REIT's ownership interest to approximately 23.9% (December 31, 2024 - 28.3%). Proceeds from the transaction were used to repay outstanding indebtedness, contributing to reduced leverage and an enhanced liquidity profile.

Financing Activity

The REIT used the Vital Trust internalization proceeds to repay the $91.5 million outstanding under its secured revolving credit facility and $35.7 million under a corporate term loan secured by its Vital Trust units, which carried a weighted average effective interest rate of 5.09%.

During the fourth quarter and subsequent to year end, the REIT also repaid or refinanced several additional debt facilities, including Canadian mortgages and Australian term loans.

Currently, the REIT's 2026 debt maturities total $391.9 million on a proportionate basis⁽²⁾, of which approximately 50% or approximately $196.4 million relate to term debt maturing in the fourth quarter of 2026, with the remainder comprised of mortgage maturities. As of year end, the REIT had approximately $465.5 million of available liquidity, consisting of cash and undrawn credit facilities.

On February 5, 2026, DBRS Morningstar confirmed the REIT's Issuer Rating and Senior Unsecured Debentures credit rating at BBB (low) with Stable trends.

Operations and Leasing ⁽²⁾

SPNOI⁽²⁾ increased by 3.0% in Q4 2025 compared to the prior year period, primarily driven by inflationary rent adjustments, rentalised capital investments, and improved recoveries, reflecting steady growth in underlying lease income.

Regionally, SPNOI⁽²⁾ increased by 0.3% in North America, 4.6% in Brazil, 3.7% in Europe and 4.4% in Australasia. Growth in North America was impacted by higher property operating costs associated with the transition to external facilities and operations management in Canada during the fourth quarter. Excluding the impact of these costs, North America SPNOI growth would have been 1.8%.

During the quarter, the REIT completed approximately 286,850 square feet of new, renewal and early leasing at an 85% renewal rate.

Healthscope Update

Healthscope Pty Ltd ("HSO") is the REIT's second largest tenant, occupying 12 properties and accounting for 6.6% of the REIT's proportionate revenues for the three months ended December 31, 2025. In May 2025, HSO's parent entities entered receivership, with its lenders appointing McGrathNicol Restructuring to oversee an orderly sale process, while all hospitals continue to operate as usual. The receiver-led sale process commenced in July 2025 and remains ongoing, with the receiver prioritizing the disposition of HSO's on balance sheet assets, which is now largely complete.

As part of a bid submitted by Calvary Health Care ("Calvary") for the REIT's portfolio of 12 assets, the REIT entered into a conditional lease agreement with Calvary on terms acceptable to the REIT. The agreement remains subject to the approval of the receiver which has not yet been obtained, as the receiver continues to evaluate potential alternatives, including conversion of HSO to a not-for-profit structure. As discussions are ongoing, there can be no assurance as to the outcome or the potential impact on the REIT.

As of today, all rent owing to the REIT has been paid and HSO continues to meet its lease obligations.
Portfolio Strategy Advancements

Disposition Activity

During the quarter, the REIT completed the disposition of three investment properties for total proceeds of $79.9 million, representing one property in Canada and two held through Vital Trust.

Canadian Development Commitment

During the quarter, the REIT entered into an agreement with a large Canadian hospital system to develop a new four-story, 119,000 square foot health services building adjacent to the hospital's main campus. The project will expand access to ambulatory, community-based, and complementary health services in one of Canada's fastest-growing regions and demonstrates the REIT's opportunities to invest in critical healthcare infrastructure and partner with publicly funded hospitals in Canada.

Under the agreement, Northwest has entered into a long-term ground lease with the hospital and will fund, develop and manage the new health services building, with an estimated total cost of $112.0 million, which is expected to commence in the fourth quarter of 2026 and be completed in the fourth quarter of 2029.

European Portfolio Sale

As at December 31, 2025, the REIT classified 30 income-producing properties and 3 properties under development in Europe as held for sale, comprising 23 wholly-owned properties in Germany and the Netherlands with a fair value of $384.0 million, and 10 properties held through the REIT's joint venture in the Netherlands with a fair value of $259.7 million ($77.9 million at the REIT's 30% interest).

In connection with the classification of the wholly-owned properties, the REIT reclassified $221.1 million of related mortgages with a weighted average interest rate of 2.83% to liabilities associated with assets held for sale on its consolidated balance sheet. Mortgages related to the joint venture properties total $139.8 million $42.0 million at the REIT's 30% interest), with a weighted average interest rate of 4.67%, and remain within the joint venture.

On February 24, 2026, the REIT reached an agreement to sell the combined portfolio of 33 properties to TPG Real Estate for €400 million (C$647 million) before adjustments. The transaction is expected to close in the second quarter of 2026, subject to customary closing conditions.

Net proceeds attributable to the REIT, after transaction costs and capital gains tax, are estimated to be approximately $145 million and are expected to be used to repay debt and for capital redeployment.

Canadian Acquisition

On February 19, 2026, the REIT waived its conditions on the acquisition of an approximate 73,000 square foot, up to 157 bed, transitional-care facility in Ottawa, Ontario for $49.0 million. The property is well located in a specialized and expanding medical and health services node with immediate proximity to The Ottawa Hospital's Civic Campus, University of Ottawa's Heart Institute and the planned 2.5 million square foot new Ottawa Hospital. The building is leased on a triple net basis to The Ottawa Hospital for a remaining 14.5 year term, subject to annual rent escalations. The acquisition, subject to customary closing conditions, is expected to close in the first quarter of 2026 and will be funded with existing resources.

Name Change

Today, the REIT announced that it plans to change its name to Vital Infrastructure Property Trust. The name change is expected to become effective on March 11, 2026. In connection with the name change, the REIT will also change its TSX ticker symbol for its trust units from NWH to VITL and for its 6.25% convertible debentures and 7.75% convertible debentures from NWH.H and NWH.I to VITL.H and VITL.I, respectively.

The decision to rebrand reflects the REIT's ongoing evolution into a focused healthcare infrastructure platform. The name change will not impact the REIT's capitalization, organizational structure, unitholder rights or qualification as a REIT for Canadian income tax purposes.

The transfer agent of the REIT continues to be Odyssey Trust Company (trust units). The debenture trustees of the REIT will continue to be Odyssey Trust Company (Debentures) and Computershare Trust Company (convertible debentures). No action will be required by existing unitholders and debenture holders with respect to the name change and trading symbol change.

The REIT's new corporate website, will go live on March 11, 2026.

⁽¹⁾ Following the internalization of management of Vital Trust, the REIT's retained interest in Vital Trust is reflected as an equity-accounted investment when results are presented on an IFRS basis, and as a standalone line item on the balance sheet when results are presented on a proportionate basis. As the transaction closed on December 30, 2025, there was no impact on the IFRS or proportionate income statement results for the periods presented. Vital Trust's operating results have been excluded from the REIT's leasing metrics and portfolio profile as at December 31, 2025.

⁽²⁾ Refer to Non-GAAP and Other Supplementary Measures section.

Selected Operating and Financial Information ⁽¹⁾ :

($ thousands except where otherwise indicated) (unaudited)		As at December 31, 2025				As at December 31, 2024
Assets under management (i)	$	5,630,000			$	8,282,000
Number of properties		133				172
Gross leasable area (sf)		13,032,310				15,886,309
Period end occupancy		96.4	%			96.4	%
Weighted Average Lease Expiry (Years)		12.3				13.6
Debt to Gross Book Value (IFRS)(2)		46.4	%			50.0	%
Debt to Gross Book Value (Proportionate)(2)		52.4	%			58.3	%
Weighted average overall capitalization rate (Proportionate)		6.90	%			6.15	%
Economic Weighted Average Interest Rate (Proportionate)		4.71	%			5.49	%

(i) Assets under management represent the aggregate fair value of investment properties, the REIT's investment in Vital Trust, loans receivables, lease assets, real estate related financial instruments, assets held for sale and third-party interests in these assets.

For the periods ended December 31 ($ thousands except where otherwise indicated - unaudited)		Three Months				Year Ended
	2025			2024			$ Change				2025			2024			$ Change
Net operating income	$	79,514		$	77,764		$	1,750			$	312,138		$	349,408		$	(37,270	)
Net income (loss)		(27,037	)		2,928			(29,965	)			21,221			(320,204	)		341,425
Funds from Operations ("FFO")(2) excluding accelerated amortization of deferred financing charges (i)		30,621			23,674			6,947				112,784			99,189			13,595
Adjusted Funds from Operations ("AFFO") (2)		29,502			24,281			5,221				105,581			95,649			9,932
FFO(2), excluding accelerated amortization of deferred financing charges, per unit - diluted (i)	$	0.12		$	0.10		$	0.02			$	0.45		$	0.40		$	0.05
AFFO(2) per unit - diluted	$	0.12		$	0.10		$	0.02			$	0.42		$	0.39		$	0.03
Distributions per unit	$	0.09		$	0.09		$	-			$	0.36		$	0.36		$	-
AFFO(2) payout ratio - diluted		75	%		90	%		(15)	%			86	%		92	%		(6)	%

(i) The amounts presented reflect an adjustment for accelerated amortization of deferred financing charges from the early repayment of debt. For the year ended December 31, 2025, the adjustment totalled $3.4 million related to debt repaid using proceeds from the issuance of senior unsecured debentures and the sale of Assura units. FFO including this adjustment would have been $112.8 million or $0.45 per unit. For the year ended December 31, 2024, the adjustment totalled $10.3 million, related to debt repaid using proceeds from the from the sale of the REIT's UK portfolio. FFO including this adjustment would have been $99.2 million or $0.40 per unit.

Non-GAAP and Other Supplementary Measures

This news release includes certain non-GAAP financial measures, non-GAAP ratios and other specified financial measures (as defined in National Instrument 52-112, Non-GAAP and Other Financial Measures Disclosure) in addition to measures prepared in accordance with IFRS. These measures do not have standardized meanings under IFRS and may not be comparable to similar measures presented by other issuers. They should not be considered as alternatives to measures determined in accordance with IFRS. Definitions and reconciliations to the most directly comparable IFRS measures are provided below.

Non-GAAP Measure	Description and Purpose
Proportionate Basis	Proportionate basis is a non-IFRS presentation method used by the REIT to reflect its economic interest in equity-accounted joint ventures and subsidiaries by including the REIT's proportionate share of assets, liabilities, revenues, and expenses, where applicable. Following the internalization of Vital Trust and the resulting loss of control, Vital Trust is accounted for as an equity-accounted investment under IFRS. For purposes of this MD&A, the REIT's retained interest in Vital Trust is not proportionately consolidated and is instead presented as a standalone investment. As at December 31, 2025, the standalone investment in Vital Trust was measured in accordance with IFRS, based on the number of Vital Trust units owned multiplied by the closing unit price on the New Zealand Securities Exchange on December 30, 2025. Management believes the proportionate basis presentation provides useful information by more closely reflecting the underlying economics of the REIT's investments. However, this presentation is not defined under IFRS and may not be comparable to similar measures presented by other issuers.
Net Operating Income ("NOI")	NOI represents revenue from investment properties, including straight-line rent and lease termination income, less property operating costs. It reflects the operating performance of the REIT's income-producing properties before the impact of financing, income taxes and other non-property-level items. NOI is presented as net property operating income in the REIT's consolidated financial statements prepared in accordance with IFRS and is also presented on a proportionate basis in the MD&A. Management believes NOI is an important measure of property-level operating performance used by real estate industry analysts, investors and management, and a key input in determining the fair value of the REIT's income-producing portfolio.
Same-Property NOI (Constant Currency) ("SPNOI")	SPNOI is a non-IFRS financial measure used to assess period-over-period operating performance of income-producing properties owned by the REIT for a full reporting period in both the current and comparative periods. The measure excludes NOI attributable to properties that have been acquired, disposed of, or are subject to significant change as a result of development, redevelopment or expansion activities, as well as properties held for redevelopment. SPNOI also excludes the impact of non-recurring items not expected to recur. To enhance comparability, foreign currency impacts are excluded by converting comparative-period results using current-period average exchange rates. SPNOI is derived from NOI and presented on a proportionate basis. Management believes SPNOI is useful in understanding changes in NOI attributable to occupancy, contractual rental rate changes, operating costs and realty taxes, before considering the impact of acquisitions, dispositions and development activity.
Funds from Operations ("FFO")	FFO is a non-IFRS financial measure used by the REIT to assess operating performance and is derived from IFRS net income (loss), the most directly comparable financial measure. FFO excludes items that are not considered indicative of the recurring operating performance of income-producing real estate, such as fair value adjustments, gains or losses on property dispositions, unrealized foreign exchange, deferred income taxes and transaction-related items. The measure also reflects the economic benefit of certain management fees eliminated on consolidation but realized through non-controlling interests, and excludes certain investment, financing and general and administrative costs. REALPAC has published guidance for the calculation of FFO, and the REIT generally calculates FFO in accordance with this guidance, subject to certain adjustments disclosed in the reconciliation. Management uses FFO to evaluate operating performance and believes it meaningfully reflects period-over-period changes in occupancy, rental rates, operating costs, realty taxes, transaction activity and interest costs.
Adjusted Funds from Operations ("AFFO")	AFFO is a non-IFRS financial measure used by the REIT to assess operating performance and recurring cash flows available for distribution and is derived from FFO, the most directly comparable financial measure. AFFO adjusts FFO for items that are non-cash in nature or that do not reflect recurring cash outflows associated with the ownership and operation of income-producing real estate, including financing-related amortization, straight-line rent differences, leasing costs, sustaining capital expenditures and unit-based compensation. The measure includes the REIT's proportionate share of adjustments related to equity-accounted investments and joint ventures. REALPAC has published guidance for the calculation of AFFO, and the REIT generally calculates AFFO in accordance with this guidance, subject to certain adjustments disclosed in the reconciliation. Management uses AFFO to evaluate operating performance and distribution sustainability and believes it reflects recurring operating cash flows, taking into account the timing of sustaining capital expenditures and leasing activity.
AFFO Payout Ratio	AFFO payout ratio is a non-IFRS financial ratio used by management to assess the sustainability of the REIT's distribution payments. The ratio is calculated as cash distributions declared divided by AFFO for the period. Management uses the ratio, together with other financial metrics, in evaluating distribution levels and long-term capital allocation decisions.
Adjusted Earnings before Interest, Taxes, Depreciation and Amortization ("Adjusted EBITDA")	Adjusted EBITDA is a non-GAAP financial measure derived from IFRS net income (loss). The measure excludes interest expense, income taxes, depreciation and amortization, fair value adjustments, unit-based compensation, unrealized foreign exchange gains and losses, gains and losses on dispositions, transaction costs and other non-operating or non-recurring items, as detailed in the applicable reconciliations. Management and lenders use Adjusted EBITDA to assess recurring operating earnings, debt service capacity and compliance with financing arrangements.
Debt	Debt is a supplementary financial measure representing the REIT's indebtedness, as defined and calculated for the purposes of the financial ratios and covenants disclosed in this MD&A. It generally includes mortgages, loans and credit facilities, lease liabilities and debentures reported in the consolidated financial statements and may include the REIT's proportionate share of debt held in joint ventures, as applicable. Debt may be presented on an IFRS or proportionate basis and, depending on the applicable definition, may exclude certain components such as convertible debentures or cash and cash equivalents; where noted, Debt is presented net of unamortized financing costs. Management and lenders use Debt to assess leverage, financing capacity and compliance with debt-related covenants, including in relation to Gross Book Value, Adjusted EBITDA and other measures, as applicable.
Debt to Adjusted EBITDA	Debt to Adjusted EBITDA is a supplementary financial ratio calculated as Debt divided by Adjusted EBITDA. For purposes of this ratio, Adjusted EBITDA is calculated on a trailing twelve-month basis. Management uses this ratio to assess the REIT's financial leverage and its ability to service and repay indebtedness using recurring operating earnings.
Gross Book Value ("GBV")	Gross Book Value is defined as total assets reported in the consolidated financial statements. This measure may be presented on an IFRS or a proportionate basis, as applicable. Gross Book Value is used, as applicable, in leverage ratios and covenant calculations in accordance with the definitions contained in the REIT's Declaration of Trust, revolving credit agreement, and senior unsecured debenture indentures, including Debt to Gross Book Value.
Debt to Gross Book Value	Debt to Gross Book Value is a supplementary financial ratio calculated as Debt divided by Gross Book Value, as defined and calculated for the purposes of the applicable financial ratios and covenants disclosed in this MD&A, and is presented on an IFRS and proportionate basis, as applicable. Management and lenders use this ratio to assess the REIT's leverage and compliance with leverage-related covenants.
Net Asset Value ("NAV")	NAV is a non-IFRS financial measure calculated as total assets less total liabilities and non-controlling interests, adjusted to reflect management's estimates of fair value, including the fair value of the Global Manager. Management uses NAV as a measure of the REIT's intrinsic value, and NAV per Unit as a valuation metric to assess whether the REIT's units are trading at a discount or premium to intrinsic value.
Per Unit Measures	FFO per Unit, AFFO per Unit, NAV per Unit and Distributions declared per Unit are calculated by dividing the applicable measure by the number of units outstanding, calculated on a basic or diluted basis, as applicable. Per unit amounts are calculated using the weighted average number of units outstanding during the period or units outstanding at period end, as applicable. Where relevant, diluted unit counts include the impact of vested trust units, exchangeable or convertible units and other dilutive instruments, in accordance with the applicable calculation methodology.

The following table reconciles net income (loss), as determined in accordance with IFRS, to net income (loss) on a proportionate basis⁽²⁾ for the three months ended December 31, 2025 and 2024:

($ thousands)		For the three months ended
	December 31, 2025			December 31, 2024
	IFRS Basis			Adjustments			Proportionate Basis (2)			IFRS Basis			Adjustments			Proportionate Basis(2)
Net property operating income
Revenue from investment properties	$	107,588		$	(15,547	)	$	92,041		$	102,702		$	(14,793	)	$	87,909
Property operating costs		(28,074	)		3,147			(24,927	)		(24,938	)		2,245			(22,693	)
		79,514			(12,400	)		67,114			77,764			(12,548	)		65,216
Other income (expenses)
Interest and other income		2,440			(1,185	)		1,255			5,930			(890	)		5,040
Management fees		3,716			2,796			6,512			3,817			2,297			6,114
Share of income (loss) from equity accounted investments		6,414			(6,414	)		-			1,359			(1,359	)		-
Finance costs		(32,529	)		2,377			(30,152	)		(38,749	)		1,645			(37,104	)
General and administrative expenses		(16,034	)		279			(15,755	)		(13,155	)		610			(12,545	)
Transaction costs		(3,674	)		199			(3,475	)		(4,393	)		1,329			(3,064	)
Foreign exchange gain (loss)		(95	)		883			788			21,510			284			21,794
Accretion of financial liabilities		(2,031	)		-			(2,031	)		(1,876	)		-			(1,876	)
Fair value adjustment of convertible debentures		195			-			195			(238	)		-			(238	)
Fair value adjustment of financial instruments		13,313			(8,140	)		5,173			(14,873	)		(1,842	)		(16,715	)
Fair value adjustment of investment properties		(37,921	)		(19,893	)		(57,814	)		(29,924	)		16,192			(13,732	)
Loss on internalization of Vital Trust		(51,595	)		2,742			(48,853	)		-			-			-
Net loss on disposals of assets		(1,525	)		476			(1,049	)		(3,274	)		587			(2,687	)
Fair value adjustment of unit-based compensation liabilities		196			-			196			4,167			-			4,167
Income (loss) before taxes		(39,616	)		(38,280	)		(77,896	)		8,065			6,305			14,370
Current income tax (expense) recovery		(48	)		512			464			(8,108	)		3,616			(4,492	)
Deferred income tax (expense) recovery		12,627			(29,282	)		(16,655	)		2,971			(4,384	)		(1,413	)
Income tax (expense) recovery		12,579			(28,770	)		(16,191	)		(5,137	)		(768	)		(5,905	)
Net income (loss)	$	(27,037	)	$	(67,050	)	$	(94,087	)	$	2,928		$	5,537		$	8,465
Less: non-controlling interests		67,050			(67,050	)		-			(5,537	)		5,537			-
Net income (loss) attributable to unitholders	$	(94,087	)	$	-		$	(94,087	)	$	8,465		$	-		$	8,465

The following table reconciles net income (loss), as determined in accordance with IFRS, to net income (loss) on a proportionate basis⁽²⁾ for the year ended December 31, 2025 and 2024:

($ thousands)		For the year ended
	December 31, 2025			December 31, 2024
	IFRS Basis			Adjustments			Proportionate Basis (2)			IFRS Basis			Adjustments			Proportionate Basis(2)
Net property operating income
Revenue from investment properties	$	422,525		$	(58,361	)	$	364,164		$	462,403		$	(57,121	)	$	405,282
Property operating costs		(110,387	)		10,955			(99,432	)		(112,995	)		8,642			(104,353	)
		312,138			(47,406	)		264,732			349,408			(48,479	)		300,929
Other income (expenses)
Interest and other income		13,555			(4,385	)		9,170			18,840			(4,323	)		14,517
Management fees		15,095			10,304			25,399			15,150			13,931			29,081
Share of income (loss) from equity accounted investments		6,986			(6,986	)		-			(30,725	)		30,725			-
Finance costs		(137,041	)		7,774			(129,267	)		(213,256	)		5,816			(207,440	)
General and administrative expenses		(61,991	)		1,225			(60,766	)		(58,174	)		2,208			(55,966	)
Transaction costs		(18,697	)		205			(18,492	)		(16,693	)		1,684			(15,009	)
Foreign exchange gain (loss)		4,560			1,980			6,540			33,879			681			34,560
Accretion of financial liabilities		(6,817	)		-			(6,817	)		(7,245	)		-			(7,245	)
Fair value adjustment of convertible debentures		(17,346	)		-			(17,346	)		(36,109	)		-			(36,109	)
Fair value adjustment of financial instruments		37,983			(2,444	)		35,539			(25,014	)		3,103			(21,911	)
Fair value adjustment of investment properties		(61,868	)		(14,663	)		(76,531	)		(368,791	)		11,717			(357,074	)
Loss on internalization of Vital Trust		(51,595	)		2,742			(48,853	)		-			-			-
Net loss on disposals of assets		(6,614	)		987			(5,627	)		(34,670	)		1,257			(33,413	)
Fair value adjustment of unit-based compensation liabilities		(1,066	)		-			(1,066	)		3,687			-			3,687
Income (loss) before taxes		27,282			(50,667	)		(23,385	)		(369,713	)		18,320			(351,393	)
Current income tax (expense) recovery		(13,427	)		6,074			(7,353	)		(21,143	)		9,654			(11,489	)
Deferred income tax (expense) recovery		7,366			(29,480	)		(22,114	)		70,652			(7,527	)		63,125
Income tax (expense) recovery		(6,061	)		(23,406	)		(29,467	)		49,509			2,127			51,636
Net income (loss)	$	21,221		$	(74,073	)	$	(52,852	)	$	(320,204	)	$	20,447		$	(299,757	)
Less: non-controlling interests		74,073			(74,073	)		-			(20,447	)		20,447			-
Net income (loss) attributable to unitholders	$	(52,852	)	$	-		$	(52,852	)	$	(299,757	)	$	-		$	(299,757	)

The following table reconciles same property net operating income (SPNOI) to net operating income for the periods ended as indicated:

		Three months ended December 31,			Year ended December 31,
		2025			2024			Var $			Var %			2025			2024			Var $			Var %
Same property NOI (1)
North America	$	20,359		$	20,299		$	60			0.3%		$	80,269		$	79,258		$	1,011			1.3%
Brazil		14,933			14,271			662			4.6%			57,133			54,598			2,535			4.6%
Europe		12,396			11,949			447			3.7%			47,540			45,900			1,640			3.6%
Australasia		17,301			16,572			729			4.4%			68,132			65,657			2,475			3.8%
Same property NOI (1)	$	64,989		$	63,091		$	1,898			3.0%		$	253,074		$	245,413		$	7,661			3.1%
Impact of foreign currency translation		-			(1,815	)		1,815						-			(4,062	)		4,062
Straight-line rental revenue recognition		640			(99	)		739						3,317			2,691			626
Lease termination income		-			-			-						110			104			6
Other transactions		722			440			282						1,383			12			1,371
Developments		298			125			173						2,400			849			1,551
Dispositions		465			3,473			(3,008	)					4,448			55,920			(51,472	)
NOI	$	67,114		$	65,215		$	1,899			2.9%		$	264,732		$	300,927		$	(36,195	)		(12.0)%

(1) Same property NOI is a non-IFRS measure, defined and discussed in the REIT's MD&A.

The following table reconciles net income (loss) attributable to unitholders, as determined in accordance with IFRS, to Funds from Operations for the periods ended as indicated:

($ thousands except where otherwise indicated)		Three Months				Year Ended
	2025			2024			$ Change				2025			2024			$ Change
Net income (loss) attributable to unitholders	$	(94,087	)	$	8,465		$	(102,552	)		$	(52,852	)	$	(299,757	)	$	246,905
Add / (Deduct):
Fair value adjustment of convertible debentures		(195	)		238			(433	)			17,346			36,109			(18,763	)
Fair value adjustment of Exchangeable Units		-			-			-				-			205			(205	)
Fair value adjustment of financial instruments		(5,173	)		16,715			(21,888	)			(35,539	)		21,911			(57,450	)
Fair value adjustment of investment properties		57,930			13,733			44,197				76,781			357,155			(280,374	)
Fair value adjustment of unit-based compensation liabilities		(196	)		(4,167	)		3,971				1,066			(3,687	)		4,753
Premiums on derivative financial instruments		-			-			-				-			6,725			(6,725	)
Accretion of financial liabilities		2,031			1,876			155				6,817			7,245			(428	)
Unrealized foreign exchange loss (gain)		(964	)		(21,825	)		20,861				(6,817	)		(33,258	)		26,441
Deferred tax expense (recovery)		16,655			1,414			15,241				22,115			(63,125	)		85,240
Transaction costs		3,475			3,064			411				18,492			15,105			3,387
Net loss on disposal of assets		169			3,189			(3,020	)			5,328			33,995			(28,667	)
Loss on internalization of Vital Trust		48,853			-			48,853				48,853			-			48,853
Convertible debenture issuance costs		-			-			-				-			27			(27	)
Internal leasing costs		438			300			138				1,803			1,263			540
Property taxes accounted for under IFRIC 21		(8	)		47			(55	)			-			-			-
Net adjustment for lease liabilities		(79	)		4			(83	)			(33	)		(435	)		402
Employee termination benefits and related expenses		1,570			-			1,570				5,263			3,807			1,456
Finance cost - Exchangeable Unit distributions		-			-			-				-			(63	)		63
Financing and investment-related costs		-			176			(176	)			15			3,274			(3,259	)
G&A expenses related to strategic tenant inducements and charitable pledge		202			445			(243	)			796			2,375			(1,579	)
Funds from Operations(2)	$	30,621		$	23,674		$	6,947			$	109,434		$	88,871		$	20,563
FFO(2) per Unit - Diluted	$	0.12		$	0.10		$	0.02			$	0.44		$	0.36		$	0.08
Weighted average number of units outstanding
Diluted		251,081,454			248,641,782			2,439,672				250,235,026			247,663,589			2,571,437

The following table reconciles Funds from Operations to Adjusted Funds from Operations for the periods ended as indicated:

($ thousands except where otherwise indicated)		Three Months			Year Ended
	2025			2024			$ Change			2025			2024			$ Change
Funds from Operations (2)	$	30,621		$	23,674		$	6,947		$	109,434		$	88,871		$	20,563
Add / (Deduct):
Amortization of transactional deferred financing charges		-			271			(271	)		3,350			15,405			(12,055	)
Unit-based compensation expense		2,624			2,102			522			8,333			4,463			3,870
Straight-line rental revenue		(579	)		859			(1,438	)		(3,252	)		(1,257	)		(1,995	)
Leasing costs and non-recoverable maintenance capital expenditures		(3,164	)		(2,625	)		(539	)		(12,284	)		(11,833	)		(451	)
Adjusted Funds from Operations (2)	$	29,502		$	24,281		$	5,221		$	105,581		$	95,649		$	9,932
AFFO(2) per Unit - Basic	$	0.12		$	0.10		$	0.02		$	0.42		$	0.39		$	0.03
AFFO(2) per Unit - Diluted	$	0.12		$	0.10		$	0.02		$	0.42		$	0.39		$	0.03
Distributions per Unit	$	0.09		$	0.09		$	-		$	0.36		$	0.36		$	-
Weighted average number of units outstanding
Basic		249,992,670			247,493,809			2,498,861			249,160,422			246,438,793			2,721,629
Diluted		251,081,454			248,641,782			2,439,672			250,235,026			247,663,589			2,571,437

Management's Discussion and Analysis and Consolidated Financial Statements and Notes

Information appearing in this news release is a select summary of results. This news release should be read in conjunction with the Northwest Healthcare Properties REIT Annual Report to Unitholders, which includes the audited consolidated financial statements and MD&A for the REIT, and is available at and on SEDAR+ at .

Corporate Presentation

Download the Company's Updated Corporate Presentation:

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Q4 2025 Results Conference Call

The REIT will be hosting its Q4 2025 conference call on Wednesday, February 25, 2026 at 10:00 a.m. ET. The dial-in numbers for the conference call are as follows:

North America (toll free): 1-833-752-3625

Overseas or local (Toronto): 1-647-846-8435

Link to audio webcast:

A replay will be available until March 4, 2026, by accessing:

US/Canada (toll free): 1-855-669-9658

International: 1-412-317-0088

Replay Access Code: 4156353

About Northwest

Northwest provides investors with access to a portfolio of high-quality international healthcare real estate infrastructure comprised as at February 24, 2026, of interests in a diversified portfolio of 133 income-producing properties and 13.0 million square feet of gross leasable area located throughout major markets in North America, Australia, Brazil and Europe. The REIT's portfolio of outpatient, inpatient, and other health research facilities is characterized by long-term indexed leases and stable occupancies. Northwest leverages its global workforce in seven countries to serve as a long-term real estate partner to leading healthcare operators. For additional information please visit: .

Contacts

Zach Vaughan, CEO, rel="nofollow" href="...">...

Stephanie Karamarkovic, CFO, ...

Alyssa Barry, Investor Relations, ..., ..., (416) 601-3220

Forward-Looking Statements

This press release may contain forward-looking statements with respect to the REIT, its operations, strategy, financial performance and condition. These statements can generally be identified by words such as "may", "will", "expect", "estimate", "anticipate", "intends", "believe", or "continue" or the negative thereof or similar variations.

Forward-looking statements in this press release include statements concerning driving long-term unitholder value, the receiver-led sale process for HSO, the ongoing operation of HSO's hospitals, future debt repayment and renewal, the use of proceeds from the Vital Trust internalization, the REIT's relationship with (and ownership interest in) Vital Trust going forward, the REIT's planned sale of its European portfolio, including the completion and use of proceeds therefrom, the REIT's planned Canadian development and acquisition, the REIT's proposed name change and the REIT's commitment to continue pursuing asset sales, simplifying the business, reducing costs, and strengthening its balance sheet.

The REIT's actual results and performance discussed herein could differ materially from those expressed or implied by such statements. The forward-looking statements contained in this press release are based on numerous assumptions which may prove incorrect, and which could cause actual results or events to differ materially from the forward-looking statements. These include assumptions relating to the REIT's properties continuing to perform as they have recently, various general economic and market factors, including exchange rates remaining constant, local real estate conditions remaining strong, and interest rates remaining at current levels or decreasing, the availability of equity and debt financing to the REIT and the REIT's ability to refinance, or extend the maturity of, its existing debt, the continued operation of HSO's hospitals, and the REIT's ability to successfully complete its planned dispositions, developments and acquisitions on the terms proposed. Such forward-looking statements are also qualified in their entirety by the inherent risks and uncertainties surrounding future expectations, including the risk that the transactions contemplated herein are not completed on the terms proposed or at all, and the risks described under the heading "Risk Factors" in the REIT's Annual Information Form and the risks and uncertainties set out in the MD&A, which are available on SEDAR+ at .

Unless otherwise stated, all forward-looking statements speak only as of the date of this press release, and, except as expressly required by applicable law, the REIT assumes no obligation to update such statements.

To view the source version of this press release, please visit

Source: Northwest Healthcare Properties REIT

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