National Health Investors, Inc. (NHI), a healthcare real estate investment trust (REIT), recently acquired a 181-unit senior living campus in Loma Linda, California for $12 million. The transaction was funded with available cash and borrowings on National Health‘s revolving credit facility.
The campus includes 98 independent living units and 83 skilled nursing beds. The existing lessee, Chancellor Health Care, LLC, will continue to manage the property for 15 years. The lease terms provide renewal options with annual fixed escalators and a lease rate of 9%.
With this deal, National Health has strengthened its relationship with Chancellor Health Care, a premium operator with expertise in senior living facilities and over 20 years of operating experience. This deal further enables National Health to fortify its presence in Southern California
Earlier in the second quarter of 2012, National Health entered into a $320 million unsecured credit facility to fund new healthcare real estate investments and pay down revolving borrowings. Additionally, the company acquired a new 125-bed skilled nursing facility in Texas for $13.5 million.
Based in Murfreesboro, Tennessee, National Health specializes in financing healthcare real estate through purchase and leaseback transactions and by mortgage loans. The company’s investments involve skilled nursing facilities, assisted living facilities, independent living facilities, medical office buildings and hospitals.
National Health currently retains a Zacks #3 Rank, which translates into a short-term Hold rating. We have a long-term Neutral recommendation on the stock. One of its competitors, HCP, Inc (HCP) also holds a Zacks #2 Rank, which translates into a short term Buy rating.
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NATL HEALTH INV (NHI): Free Stock Analysis Report
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