NHI Invests $9.34 Million for an Assisted Living & Memory Care Community in Minnesota & Further Expands Relationship with 41 ...
January 06 2020 - 6:00AM
Business Wire
National Health Investors, Inc. (NYSE:NHI) announced today that
it has purchased Coventry of Mahtomedi, a 48-unit assisted living
and memory care community in Mahtomedi, MN. The community was
purchased for $9.34 million, including closing costs of
approximately $134,000, at an initial yield of 7.23% and was added
to the existing master lease with 41 Management, LLC, a growing
Midwest operator owned by Thomas Ostrom.
The 41 Management, LLC master lease covers five communities in
Minnesota including four properties that NHI transitioned from
Bickford on October 1, 2019. The master lease is for 15 years,
includes two 5-year renewal options, and has fixed annual
escalators at 2.5%.
NHI also announced today that it is providing a $3.87 million
mortgage loan to refinance debt on The Courtyard of Bellevue, a
43-unit assisted living and memory care community in Bellevue, WI
that opened in March 2019 and is managed by 41 Management. The term
of the loan is for one year with two 6-month renewal options and
bears interest at a rate of 13%. NHI has an option to purchase the
facility upon stabilization.
NHI President and CEO Eric Mendelsohn stated, “We are very
pleased to expand our relationship with 41 Management through these
transactions. We expect that the Minnesota portfolio will be a good
fit for Tom Ostrom and his team as they grow their footprint in the
Midwest. Further, that transition puts Bickford in a better
position to focus on their core portfolio which, as we have
discussed in the past, continues to show improvement.”
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 limitations and a breach of those covenants could
materially adversely affect our financial condition and results of
operations; 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/20200106005315/en/
Dana Hambly Director, Investor Relations Phone: (615)
890-9100
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