NHI Announces $62.3 Million Investment in Specialty Behavioral Health

Rhea-AI Summary

National Health Investors (NYSE: NHI) announced a $40.3 million investment for the acquisition of Brookhaven Hospital, a 64-bed behavioral health facility in Tulsa, OK. The hospital specializes in treating traumatic brain injuries and is leased to Vizion Health under a 15-year lease at an initial rate of 8.5%. NHI also provided a $20 million corporate loan to Vizion to support its acquisition of Brookhaven NeuroNetwork. NHI has committed an additional $2 million for capital improvements over the next two years.

Positive

• Acquisition of Brookhaven Hospital enhances NHI's portfolio with a focus on behavioral health.
• Lease agreement with Vizion Health features a favorable 8.5% initial rate with fixed escalators.
• NHI is investing an additional $2 million in capital improvements, expected to enhance property value.

Negative

• None.

MURFREESBORO, TN / ACCESSWIRE / June 1, 2021 / National Health Investors, Inc. (NYSE:NHI) announced today that it has invested $40.3 million for the acquisition of Brookhaven Hospital, a specialty behavioral health hospital in Tulsa, OK. Brookhaven Hospital is a 64-bed hospital that specializes in treating patients that have suffered a traumatic brain injury. The hospital is leased to Vizion Health ("Vizion"), a growing operator of behavioral health hospitals led by an executive management team with extensive experience in the industry. The lease has a 15-year maturity with two 5-year renewal options and an initial lease rate of 8.5% plus annual fixed escalators. NHI has committed $2.0 million for capital improvements over the next two years which will be added to the lease basis as the expenditures are funded.

NHI also provided a $20.0 million corporate loan to Vizion to finance its acquisition of the assets and operations of Brookhaven NeuroNetwork which includes the operations of Brookhaven Hospital and Community NeuroRehab, a network of community-based residential rehabilitation centers in Iowa and Oklahoma that acclimate individuals with brain injuries back into the community. The amortizing loan has a 5-year maturity and carries an interest rate of 8.5%.

Eric Mendelsohn, President and CEO stated, "We are excited to begin a new relationship with Vizion as they grow their behavioral health platform under a management team with decades of experience in the business. We continue to pursue accretive acquisitions with partners like Vizion and focus on long-term sustainable growth."

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 impact of COVID-19 on our tenants, borrowers, economy and the Company; 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 https://www.sec.gov or on NHI's web site at https://www.nhireit.com.

CONTACT:
Dana Hambly, Vice President, Investor Relations
Phone: (615) 890-9100

SOURCE: National Health Investors

View source version on accesswire.com:
https://www.accesswire.com/649970/NHI-Announces-623-Million-Investment-in-Specialty-Behavioral-Health

FAQ

What is the significance of NHI's $40.3 million investment in Brookhaven Hospital?

NHI's investment allows it to enhance its portfolio in the behavioral health sector, providing a steady income stream through lease agreements.

What are the terms of the lease agreement for Brookhaven Hospital?

The lease with Vizion Health has a 15-year maturity, an initial rate of 8.5%, and includes two 5-year renewal options.

How much did NHI invest in capital improvements for Brookhaven Hospital?

NHI committed $2 million for capital improvements over the next two years.

What is the purpose of the $20 million loan provided by NHI?

The loan is intended to finance Vizion Health's acquisition of Brookhaven NeuroNetwork, which includes operations and rehabilitation centers.

What type of facility is Brookhaven Hospital?

Brookhaven Hospital is a specialty behavioral health hospital focusing on patients with traumatic brain injuries.