NHI Expands Discovery Relationship with $128.4 Million Joint Venture
June 04 2019 - 6:00AM
Business Wire
- Commits $6 Million to Mortgage Loan -
National Health Investors, Inc. (NYSE: NHI) announced today that
it has entered into a property-company joint venture with
affiliates of its current tenant, Discovery Senior Living
(“Discovery”). Six properties, located in Pennsylvania, Maryland
and Indiana, will be purchased by the joint venture for
$128,350,000, including up to $1,500,000 in estimated closing costs
and expenses. The properties consist of 145 independent units, 356
assisted living units and 95 memory care units and will be leased
to affiliates of Discovery in a 10-year lease with a 6.5% initial
annual cash yield with a CPI-based escalator with a 2% floor and 3%
cap beginning in year two. There are two five-year extension
options. NHI, the managing member, will own 97.5% of the joint
venture equity and Discovery will own 2.5%.
NHI has committed to a senior mortgage loan of $6,000,000 at 7%
annual interest extended to affiliates of Discovery for an
additional property in Indiana for which the joint venture will
have the option to purchase at stabilization. The facility consists
of 52 assisted living units and 22 memory care units. The loan is
scheduled to be closed by June 30.
Eric Mendelsohn, NHI President and CEO, stated, “NHI has had a
long-standing relationship with Discovery, which is a
highly-regarded, sophisticated operator of independent, assisted
and memory care communities. We are excited to further develop that
relationship through a joint venture on these properties that
provide an excellent fit into NHI’s portfolio.”
About Discovery
Discovery Senior Living, based out of Bonita Springs, FL, was
formed in 1991. With almost three decades of experience, the
award-winning management group has been developing, building,
marketing, and operating upscale, luxury senior-living communities
across the United States. With a flourishing portfolio of more than
9,500 existing home or homes under development, Discovery Senior
Living has become a recognized industry leader in creating
world-class, resort-style communities. For more information, visit
www.discoveryseniorliving.com.
About NHI
Incorporated in 1991, National Health Investors, Inc. (NYSE:
NHI) is a real estate investment trust specializing in
sale-leaseback, joint-venture, mortgage and mezzanine financing of
need-driven and discretionary senior housing and medical
investments. NHI’s portfolio consists of independent, assisted and
memory care communities, entrance-fee retirement communities,
skilled nursing facilities, medical office buildings and specialty
hospitals. For more information, visit www.nhireit.com.
This press release includes forward-looking statements within
the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended. All statements regarding the Company's, tenants',
operators', borrowers’ or managers' expected future financial
position, results of operations, cash flows, funds from operations,
dividend and dividend plans, financing opportunities and plans,
capital market transactions, business strategy, budgets, projected
costs, operating metrics, capital expenditures, competitive
positions, acquisitions, investment opportunities, dispositions,
acquisition integration, growth opportunities, expected lease
income, continued qualification as a real estate investment trust
(“REIT”), plans and objectives of management for future operations,
continued performance improvements, ability to service and
refinance our debt obligations, ability to finance growth
opportunities, and similar statements including, without
limitation, those containing words such as “may”, “will”,
“believes”, “anticipates”, “expects”, “intends”, “estimates”,
“plans”, and other similar expressions are forward-looking
statements. Forward-looking statements involve known and unknown
risks and uncertainties that may cause our actual results in future
periods to differ materially from those projected or contemplated
in the forward-looking statements. Such risks and uncertainties
include, among other things; the operating success of our tenants
and borrowers for collection of our lease and interest income; the
success of property development and construction activities, which
may fail to achieve the operating results we expect; the risk that
our tenants and borrowers may become subject to bankruptcy or
insolvency proceedings; risks related to governmental regulations
and payors, principally Medicare and Medicaid, and the effect that
lower reimbursement rates would have on our tenants’ and borrowers’
business; the risk that the cash flows of our tenants and borrowers
would be adversely affected by increased liability claims and
liability insurance costs; risks related to environmental laws and
the costs associated with liabilities related to hazardous
substances; the risk that we may not be fully indemnified by our
lessees and borrowers against future litigation; the success of our
future acquisitions and investments; our ability to reinvest cash
in real estate investments in a timely manner and on acceptable
terms; the potential need to incur more debt in the future, which
may not be available on terms acceptable to us; our ability to meet
covenants related to our indebtedness which impose certain
operational; the risk that the illiquidity of real estate
investments could impede our ability to respond to adverse changes
in the performance of our properties; risks associated with our
investments in unconsolidated entities, including our lack of sole
decision-making authority and our reliance on the financial
condition of other interests; our dependence on revenues derived
mainly from fixed rate investments in real estate assets, while a
portion of our debt bears interest at variable rates; the risk that
our assets may be subject to impairment charges; and our dependence
on the ability to continue to qualify for taxation as a real estate
investment trust. Many of these factors are beyond the control of
the Company and its management. The Company assumes no obligation
to update any of the foregoing or any other forward looking
statements, except as required by law, and these statements speak
only as of the date on which they are made. Investors are urged to
carefully review and consider the various disclosures made by NHI
in its periodic reports filed with the Securities and Exchange
Commission, including the risk factors and other information
disclosed in NHI’s Annual Report on Form 10-K for the most recently
ended fiscal year. Copies of these filings are available at no cost
on the SEC’s web site at http://www.sec.gov or on NHI’s web site at
http://www.nhireit.com.
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version on businesswire.com: https://www.businesswire.com/news/home/20190604005286/en/
Roger R. HopkinsChief Accounting Officer(615) 890-9100
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