NHI Announces $63.5 Million Senior Housing Investment

Rhea-AI Summary

National Health Investors (NYSE:NHI) has invested $63.5 million to acquire a portfolio of six memory care communities in Nebraska, operated by Agemark Senior Living under the CountryHouse brand. The acquisition includes 205 units and features a master lease with a 15-year maturity and two five-year renewal options at an initial yield of 8.0% plus annual fixed escalators.

The CountryHouse communities, established in 1997, specialize in providing personalized memory care services. Both companies expressed enthusiasm about the partnership, with NHI's CEO Eric Mendelsohn highlighting Agemark's leadership in memory care, while Agemark's Managing Partner Michael Pittore emphasized the strategic alignment between both organizations.

Positive

• Acquisition of 205 memory care units across 6 communities for $63.5M
• Secured 15-year master lease with two 5-year renewal options
• Attractive 8.0% initial yield with annual fixed escalators
• Strategic expansion into specialized memory care sector

Negative

• None.

MURFREESBORO, TN / ACCESS Newswire / April 2, 2025 / National Health Investors, Inc. (NYSE:NHI) announced today that it has invested $63.5 million, inclusive of transaction costs, for the acquisition of a portfolio of six memory care communities with 205 units in Nebraska operated by Agemark Senior Living. The communities are operated under the CountryHouse brand which Agemark established in 1997 exclusively for residents requiring personalized memory care. The communities are in a master lease with a 15-year maturity and two five-year renewal options at an initial yield of 8.0% plus annual fixed escalators.

Eric Mendelsohn, President and CEO commented, "Agemark is an innovative leader in providing exceptional personalized care to memory care residents and we have long admired their commitment. That is why we are thrilled to announce our new partnership today and we are already exploring opportunities to grow this relationship."

Michael Pittore, Managing Partner for Agemark Senior Living, stated, "We are very excited to kick off this strategic relationship with NHI, which has been many years in the making. NHI's people and strategy are well-aligned with Agemark's, and this deal furthers our goal of securing long-term business with partners we can grow with so we can continue pursuing our mission of changing lives for another 40 years. Additionally, it is well-timed for both groups as we look to take advantage of growth opportunities and growing tailwinds in the market."

About National Health Investors
Incorporated in 1991, National Health Investors, Inc. (NYSE:NHI) is a real estate investment trust specializing in sale, leasebacks, joint-ventures, senior housing operating partnerships, and mortgage and mezzanine financing of need-driven and discretionary senior housing and medical investments. NHI's portfolio consists of independent living, assisted living and memory care communities, entrance-fee retirement communities, skilled nursing facilities, and specialty hospitals. For more information, visit www.nhireit.com.

About Agemark Senior Living
Agemark Senior Living has been a trusted leader in senior care for nearly 40 years, creating vibrant and welcoming communities where seniors truly feel at home. With corporate offices in Orinda, California, and Omaha, Nebraska, Agemark owns and operates a growing portfolio of 28 senior living communities under 12 brands across six states. Agemark communities are built on a foundation of personalized service and hospitality-inspired experience, delivered with empathy and expertise. Their communities offer a variety of independent living, assisted living, memory care, and respite care services. The company is proud to be a certified Great Place to Work (TM), with communities consistently recognized among U.S. News & World Report's "Best Senior Living" rankings. To learn more about Agemark, visit Agemark.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", "should", "believes", "anticipates", "expects", "intends", "estimates", "plans", "projects", "likely" 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, managers and borrowers for collection of our lease and interest income; the risk that our tenants, managers and borrowers may become subject to bankruptcy or insolvency proceedings; risks related to the concentration of a significant percentage of our portfolio to a small number of tenants; risks associated with pandemics, epidemics or outbreaks, such as the COVID-19 pandemic, on our operators' business and results of operations; risks related to governmental regulations and payors, principally Medicare and Medicaid, and the effect that changes to laws, regulations and reimbursement rates would have on our tenants' and borrowers' business; the risk that the cash flows of our tenants, managers and borrowers may be adversely affected by increased liability claims and liability insurance costs; the risk that we may not be fully indemnified by our tenants, managers and borrowers against future litigation; the success of property development and construction activities, which may fail to achieve the operating results we expect; 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; risks related to our joint venture investment with Life Care Services for Timber Ridge; inflation and increased interest rates; adverse developments affecting the financial services industry, including events or concerns involving liquidity, defaults, or non-performance by financial institutions; operational risks with respect to our SHOP structured communities; risks related to our ability to maintain the privacy and security of Company information; risks related to environmental laws and the costs associated with liabilities related to hazardous substances; the risk of damage from catastrophic weather and other natural or man-made disasters and the physical effects of climate change; 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; competition for acquisitions may result in increased prices for properties; our ability to retain our management team and other personnel and attract suitable replacements should any such personnel leave; the risk that our assets may be subject to impairment charges; risks related to our ability to raise capital through equity sales; the potential need to refinance existing debt or incur additional 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; downgrades in our credit ratings could have a material adverse effect on our cost and availability of capital; we rely on external sources of capital to fund future capital needs, and if we encounter difficulty in obtaining such capital, we may not be able to make future investments necessary to grow our business or meet maturing commitments; 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; our ability to pay dividends in the future; legislative, regulatory, or administrative changes; and our dependence on the ability to continue to qualify for taxation as a real estate investment trust and other risks which are described under the heading "Risk Factors" in Item 1A in our Form 10-K for the year ended December 31, 2024. 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 in the above referenced Form 10-K. 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 the original press release on ACCESS Newswire

FAQ

What is the value and scope of NHI's latest memory care acquisition?

NHI invested $63.5 million to acquire 6 memory care communities with 205 units in Nebraska, operated by Agemark Senior Living under the CountryHouse brand.

What are the terms of NHI's master lease agreement for the CountryHouse properties?

The master lease has a 15-year maturity with two five-year renewal options and an initial yield of 8.0% plus annual fixed escalators.

When did Agemark establish the CountryHouse brand for memory care?

Agemark established the CountryHouse brand in 1997, focusing exclusively on personalized memory care services.

What is the expected return on NHI's $63.5M memory care investment?

The investment offers an initial yield of 8.0% plus annual fixed escalators on the master lease agreement.