NorthWest Healthcare Properties Real Estate Investment Trust : 2023 Report

2023 NORTHWEST HEALTHCARE PROPERTIES

Sustainability

Report

Contents

p3 Introduction

Letter from the CEO About Northwest 2023 Highlights

p7 Our Approach to Sustainability

Sustainability Oversight

Key Commitments & Goals

Stakeholder Engagement

p13 Business Ethics

Data Privacy & Cybersecurity

p16 Thriving Partners

Tenant Engagement

Human Rights

p18 Inclusive Company

Developing our People

Training & Development

Employee Engagement

Diversity, Equity & Inclusion

p23 Strong Communities

Advancement of Research & Innovation

Volunteerism

p30 Healthy Planet

Environmental Management Data Collection & Consumption Metrics & Targets

Environmental Building Certification Program Green Buildings

Case Studies - Profiling the ANZ region

Task Force on Climate-Related Financial Disclosures (TFCD)

Physical Risk Assessment Biodiversity

p41 Appendices

Materiality Assessment

Sustainable Development Guidelines

Welcome to the

2023 Sustainability

Report of Northwest

Healthcare Properties

REIT ("Northwest").

We are pleased to share an overview of our commitment to sustainability and showcase the progress Northwest and its subsidiaries have achieved over the past year toward our goal of creating a healthier, more sustainable future. The sustainability data presented pertains to Northwest and Vital Healthcare Property Trust for the 2023 calendar year spanning from January 1, 2023, to December 31, 2023, unless otherwise stated. For more information about Northwest, please visit our website. Should you have any inquiries or feedback regarding this report, please reach out to Tracey Whittall, Chief Operating Officer.

Forward Looking Statements / Disclaimers

This report contains forward-looking statements with respect to Northwest, its operations, strategy, financial performance and condition. These statements generally can be identified by use of forward-looking words such as 'may', 'will', 'expect', 'estimate', 'anticipate', 'intends', 'believe', 'normalized', 'contracted', or 'continue' or the negative thereof or similar variations. Examples of such statements in this report may include statements concerning Northwest's sustainability-related objectives, strategies for achieving those objectives and other statements that are not historical facts, such as expectations regarding future events, results and performance. These forward-looking statements are not guarantees of future performance and are subject to risks, uncertainties and assumptions that could cause actual results to differ materially from those projected. Important factors that could cause actual results to differ materially from expectations include, among other things, general economic and market factors, competition, changes in government regulations and the factors described under 'Risks and Uncertainties' in Northwest's Annual Information Form and the risks and uncertainties set out in the MD&A which are available on SEDAR+ at www.sedarplus.ca.

These cautionary statements qualify all forward-looking statements attributable to Northwest and persons acting on its behalf. 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, Northwest assumes no obligation to update such statements.

Vlijtstraat 50 (A-E), Doetinchem, Netherlands

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INTRODUCTION

Letter from the CEO

I am delighted to present to you our third annual Sustainability Report, highlighting the significant progress we've made at Northwest in 2023. Building on the foundations laid in previous years, I'm thrilled to share some of our key advancements and initiatives.

"

Together, we are not just maintaining momentum; we are accelerating towards a more sustainable and resilient future.

We recognize the critical role of our employees in driving our sustainability agenda. Our dedicated teams have spearheaded numerous initiatives to promote environmental stewardship, social responsibility and corporate governance in our organization. Their unwavering commitment and passion were instrumental in progressing our sustainability efforts. As we look ahead, sustainability remains a core of our corporate strategy.

We are committed to upholding the high standards of ESG performance and governance, ensuring that sustainability remains integral to our long-term success. This is how we seek to ensure that our commitment to sustainability creates long-term value for our shareholders.

We believe the recent Board and leadership team changes reflect our dedication to ensuring that strategic and experienced leaders to guide our growth and governance. Northwest is actively enhancing its board's composition with a strong emphasis on diversity and renewal. We welcomed two new Trustees in January and our executive leadership team now comprises 50% women.

The work undertaken in 2023 saw the launch of our inaugural Reflect Reconciliation Action Plan in February 2024. We seek to engage with, learn from and connect with First Nations peoples, as the Traditional Custodians of the land, ensuring we integrate reconciliation practices into our day-to-day business.

Our achievements in sustainability were externally recognized through our NZX-listed platform, Vital Healthcare Property Trust ("Vital") which holds 27% of our total AUM, being named Sector Leader (1st place) by GRESB for healthcare real estate globally with the Northwest REIT being ranked second.

Early in 2024, Northwest completed its first

6-star Green Star building at Playford Health Hub (Stage 2) in South Australia with work well underway for a second 6-star Green Star building in Queensland, Australia also for Vital. This is the highest environmental certification available.

We also continued to advance our climate and Net Zero by 2050 strategies. Vital received assurance for its GHG inventory for 2022 and 2023 and an assurance process is underway for Northwest. This will assist in setting near-term and long-term emissions reduction targets

towards our net zero by 2050 goal. We recognize the importance of cultivating and enhancing relationships with our healthcare tenant partners. We aim to enhance our tenants' experience and provide the infrastructure necessary for them to deliver better patient outcomes.

I want to express my gratitude to our partners, tenants, unitholders, employees and community members for their ongoing support and dedication as we continue our sustainability journey.

There is still much work to be done. As we look ahead, we remain committed to driving meaningful change across our business through collaboration and continuous improvement.

Thank you for your ongoing trust and partnership.

Craig Mitchell

Chief Executive Officer

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INTRODUCTION

About Northwest

Hospitals &	Medical Office	Life Science
107 Healthcare Facilities	108 Buildings	4 Facilities

Founded in 2004 and publicly traded since 2010, Northwest Healthcare Properties REIT (TSX: NWH.UN) is a global real estate investor and asset manager focused on properties and partnerships at the intersection of healthcare, knowledge and research.

We're a real estate investment trust with $9.9billion of assets under management. We own and operate a portfolio of 219 high-quality properties with a focus

on hospitals, clinics and medical office buildings (MOBs) across 8 countries.

Europe

& the UK

69 Properties

55 employees

46% 53%

1%

Canada, USA

$9.9B	219	97%
Assets Under Management	Properties	Occupancy
(AUM)
13.3 Years	1,943	276
Weighted Average Lease Expiry	Tenants	Employees
(WALE)
8 Countries	17.7M sq ft
Australia, New Zealand, The	Gross Lettable Area
United Kingdom, The Netherlands,	(GLA)
Germany, Brazil, USA, Canada

• Brazil
  87 Properties

167 employees

30% 69%

1%

Hospitals and Healthcare Facilities		Medical Office Buildings		Life Sciences

Australia &

New Zealand

63 Properties

54 employees

78% 19%

3%

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Committed to Healthcare Real Estate Globally

We are dedicated to pursuing our mission of connecting place and possibility for leaders in healthcare, education and research. Northwest stewards meaningful properties that create, refine and deliver innovative healthcare solutions for the communities in which we operate.

Vital Healthcare Property Trust

In New Zealand, Northwest is the manager of Vital Healthcare Property Trust ("Vital"), a strategic investment made in 2011 that now represents more than one-quarter of our assets under management. Vital and Northwest share a deep commitment to a sustainable future and

to environmental, social and governance issues. Vital has made significant progress in assessing and managing its sustainability progress through initiatives, such as reporting to GRESB and CDP.

Under the Financial Sector (Climate-related Disclosures and Other Matters) Amendments Act 2021, Vital is classified as a climate reporting entity and is required to produce a climate statement, according to disclosure requirements set by the External Reporting Board (XRB). New Zealand are early adopters of mandating climate- related disclosures that follow the TCFD recommendations.

Listed on the Toronto Stock

Exchange (TSX: NWH)

CAD$9.9B	219
Assets Under Management	Properties
8	276
Countries	Employees
Australia, New Zealand, The United Kingdom,	Across ten offices
The Netherlands, Germany, Brazil, USA, Canada

Listed on the New Zealand

Stock Exchange (NZX: VHP)

CAD$2.7B	38
Assets Under Management	Properties
23	15
Properties	Properties
in Australia	in New Zealand

Wakefield Hospital, Wellington, New Zealand

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8	5
Appendices

INTRODUCTION

2023 Highlights

Queen Street Palace, Alberta, Canada

GRESB Sector Leader

Vital was acknowledged as a GRESB Sector Leader (ranked first) for ESG in healthcare, for listed entities globally across performance, management and developments.

GRESB 4 star

Northwest achieved strong results by GRESB having achieved a 2nd place ranking in both the Standing Investments Benchmark and the Development Benchmark for globally listed healthcare participants.

Carbon Disclosure Project

Vital's CDP score was elevated to a B- in 2023, improving from a C score two years prior. This advancement underscores our commitment to proactively monitoring our environmental impact and our dedicated efforts to reduce greenhouse gas emissions.

Assurance of GHG Inventory

Vital has received limited assurance certification for the 2022 and 2023 emissions data through Toitu Envirocare.

Climate Related

Disclosure (CRD)

Under New Zealand legislation, Vital will submit a Climate Related Disclosure (CRD) prior to October 2024, aligning to the XRB Aotearoa New Zealand Climate Standards, which will include information covering Governance, Strategy, Risk Management and Metrics and Targets.

Places for Quality Care

Continued to build and manage places for quality care within communities including providing employees two days of paid time off to volunteer while also sponsoring community-based organizations and projects.

Tenant Satisfaction

Continued execution of property- level workplans with the learnings from our first global tenant survey, to drive efforts to maximize tenant satisfaction (2,000+ tenants).

Global Employee Engagement

Completed global employee engagement survey which provided a baseline for future benchmarking and identified areas of focus.

Reconciliation Action Plan (RAP)

Launched inaugural Reflect Reconciliation Acton Plan (RAP) which the first and important step in our reconciliation journey.

Greenhouse Gas

Emissions Program

Initiated establishing Greenhouse Gas (GHG) emissions program, including tracking progress.

Research Support

Honored ongoing commitment to support research about the impacts of the pandemic on health systems across the world, by making the third of five committed, annual $1M contributions in support of such research.

Inclusive Company

Acknowledged the five "World" days, with leadership from Women in Real Estate (WIRE) committee with a series of REIT-wide events.

Artwork by T'Keyah Ware

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2023

Our Approach to Sustainability

Northwest believes that by creating, renewing and enhancing healthcare infrastructure, we can positively impact our tenant partners, our employees, the planet and the communities in which we operate.

Enablers

Our sustainability framework forms the foundation of our initiatives and guides our efforts and investment across these areas:

Thriving	Inclusive	Strong	Healthy
Partners	Company	Communities	Planet
Preparing lasting	Building for our	Investing in the	Deepening our
tenant spaces for	current team	communities	contribution to a
health and healing.	members as well as	we serve.	healthy planet.
	our future employees.

In 2022, we formalized our ESG Policy, to set out the REIT's ESG approach and articulate specific ESG-related goals in line with this framework. We recognize sustainability as a strategic objective guided by our core enablers.

Governance

Our governance framework and dedicated sustainability teams ensure that we uphold our responsibility to the environment, our communities and our stakeholders.

Sustainability Integration into Investments

By integrating sustainability into our investment processes, we seize opportunities to generate long-term value, while mitigating risks associated with environmental and social factors.

Green Leases

Continuing the implementation of green leases underscores our commitment to promoting healthier, more sustainable spaces for our tenants and communities.

Reporting and Disclosure

We strive to be transparent through reporting and disclosures, demonstrating our accountability and commitment to driving positive change and fostering trust and collaboration with our stakeholders.

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OUR APPROACH TO SUSTAINABILITY

Sustainability Oversight

Northwest's Board of Trustees ("Board") and management are dedicated to fostering sustainability as guided by the organization's ESG policy.

Official opening of the GenesisCare integrated cancer centre, Stage 1 of the Macarthur Health Precinct, Sydney, Australia.

The Board actively oversees our approach to ESG matters, including the approval and periodic review of our sustainability strategy and goals and receives quarterly updates from management on the progress of ESG initiatives.

The full Northwest Board oversees climate-related risks and opportunities, detailed in our TCFD framework on pages 38-42, but ESG-related risks are assigned to specialized Board committees.

Northwest has introduced two new global committees to enhance its governance structure and strategic alignment:

ɉ The Capital Market Committee, chaired by the

CFO, has been established to adopt a holistic

approach to managing the company's capital.

Its main objective is to safeguard and optimize

the interests of unitholders, providing strategic

oversight and ensuring that financial strategies

align with the overall goals of the organization.

BOARD LEVEL OVERSIGHT

	BOARD
	OF
TRUSTEES
CGN	AUDIT
COMMITEE

The Corporate Governance and Nominating ("CGN") Committee is responsible for annually reviewing the Diversity Policy of the REIT and evaluating the effectiveness of its implementation. This includes ensuring that it is reflected in the composition of the Board and senior management.

The Audit Committee oversees IT governance, including privacy and cybersecurity concerns, as detailed in the committee charters on

the Corporate Governance webpage.

Northwest is supported by a dedicated Global Sustainability Team of corporate and regional members, that reports directly to the COO. This team updates the Executive Leadership Team and the Board on crucial sustainability matters, including the handling of climate-related risks and opportunities and leading associated projects.

ɉ The Senior Corporate & Regional Committee,

chaired by the COO, aims to foster collaboration

and communication among the senior

leadership, across corporate and regional

levels. This committee plays a crucial role in

ensuring that leadership efforts are cohesive,

which is essential for effectively implementing

our corporate and sustainability strategies.

We believe that integrating these committees into the existing organizational structure helps ensure cohesive movement towards common objectives, particularly in areas like sustainability and capital management. Linking these strategic functions directly with the Board's oversight and the operational execution led by the Global Sustainability Team, enhances our ability to navigate complex global markets and sustainability challenges.

EXECUTIVE

OVERSIGHT	EXECUTIVE LEADERSHIP TEAM	CEO, PRESIDENT, CFO, COO

			SENIOR	CAPTAIL MARKETS - CFO
		CAPITAL	SENIOR CORPORATE
INFORM		CORPORATE
	& REGIONAL - COO
		MARKETS	& REGIONAL
		COMMITTEE	COMMITTEE

			COO & REGIONAL
MANAGE
	GLOBAL SUSTAINABILITY TEAM	REPRESENTATION

IDENTIFY

SUSTAINABILITY WORKING GROUPS

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Artist's Impression of Playford Health Hub, South Australia

Board Composition & Diversity

Northwest is committed to fostering an open and inclusive workplace culture, which extends to the Board. The CGN Committee values and considers diversity as part of its overall annual evaluation of Trustee nominees for election or re-election, as well as candidates for the Executive Leadership Team. Recommendations concerning Trustee nominees are, foremost, based on merit and performance, but diversity is taken into consideration, as it is beneficial for a diversity of backgrounds, views and experiences to be present at the Board and senior management levels.

In furtherance of the REIT's commitment to diversity at the Board level, the Board has adopted a Diversity Policy. In accordance with the Diversity Policy, the CGN Committee will consider a number of factors when seeking and considering new Trustees for nomination, or evaluating Trustee nominees for reelection, including gender identity, age, sexual orientation, disability, geography, culture, ethnicity, business and educational experience, professional expertise, personal skills and perspectives.

In 2023, two new women were nominated to the Board, comprising approximately 25% of the Board, with further progression expected in 2024.

Risk Management

The Board, in conjunction with the REIT's senior management team, is responsible for identifying the principal risks of the REIT's business, with the Board having ultimate oversight to ensure identified risks are being appropriately managed. This includes relevant sustainability risks such as diversity and inclusion, cybersecurity, business ethics and climate change, among others. As part of our ESG Policy, we also adopted a goal to integrate ESG and climate-related risks into the REIT's overall risk management process. Our risk management program includes consideration of physical and transition risks, including both climate change mitigation (resource efficiency and emissions reduction) and adaptation (including integration of climate resilience into our investment decision-making).

Northwest identifies its business risks by equipping employees with knowledge about the risks in their respective functions. This is augmented with reviews by third parties, including our auditors, our legal counsel and other expert advisors who are periodically engaged by senior management and/or the Board. New investments undergo significant risk assessments during pre-acquisition due diligence, with third-party consultants providing written reports with specific remediation steps, as required,

based on the assessment of the building and any applicable environmental considerations. All third- party reports are shared among the Northwest team and the reports' recommendations form the basis for on-going management reviews, to ensure the causes and effects of issues are addressed.

The risk factors identified for the business are published in our Annual Information Form, which is referenced in our quarterly MD&A and is available through SEDAR+ on our website. Our risks cover those pertaining to the ownership of real property, as well as the specifics of operating as a REIT, including corporate structure. Risks are classified as either operational, which are managed on an ongoing basis by all applicable employees, or strategic, which are managed and reported on to the Board by senior management. The primary goal of our risk program is to minimize exposure to risks, use policies and procedures to guide actions and behaviors and to promote a risk- aware culture. The REIT is continuously undertaking

a review of risk management across its global operations, to address evolving risks and to leverage local best practices into a harmonized program, taking advantage of the REIT's global operating platform.

Policies & Procedures

We maintain various ESG-related policies as part of our risk management and sustainability frameworks, to uphold the highest standards of accountability and responsibility. Our ESG policies serve as essential guidelines for identifying, assessing and mitigating risks associated with environmental impact, social considerations and corporate governance practices across our operations. Many of these policies can be found on the Sustainability or Corporate Governance pages of our website.

• ESG Policy
• Code of Business Conduct and Ethics
• Whistleblower Policy
• Diversity Policy
• Workplace Anti-violence, Harassment and Sexual Harassment Policy
• Health and Safety Policy
• Environmental Policy
• Environmental Management System (EMS)
• Reflect Reconciliation Action Plan (RAP) - ANZ Region
• Volunteerism & Corporate Social Responsibility Policy
• Insider Trading Policy
• Global Expenditures Policy
• IT Systems/Usage Policy

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OUR APPROACH TO SUSTAINABILITY

Key Commitments

& Goals

In 2021, Northwest conducted a materiality assessment (refer to page 49) to determine the sustainability-related material topics that are most relevant to the business and our stakeholders.

As part of this assessment, we engaged with a diverse number of internal and external stakeholders through surveys and interviews. The feedback from our stakeholders and the key priorities identified through this analysis, were instrumental in the development of our sustainability strategy and commitments during 2022. We established a substantial number of specific key performance indicators (KPIs) to achieve in 2023 and beyond, to continue driving progress in our sustainability journey.

The following page outlines our global core commitments and additional ambitions are detailed at the start

of each section. Our commitments align with our 5-year Sustainability Strategy and span multiple years.

Northwest achieved many of our KPIs for 2023, but we have also identified areas to reassess and recalibrate, to ensure we continue to address sustainability challenges and opportunities. As we look ahead to 2024, our focus is to build upon this momentum, by continuing

to implement, strengthen and uphold the strides we've made so far.

BPH Prins Hendriklaan 376, Brunssum, The Netherlands

In line with these commitments and KPIs, we have identified priority areas where our contributions can drive progress towards the United Nations Sustainable Development Goals (SDGs). These include:

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