NHI Expands Navion Senior Solutions Relationship

Rhea-AI Summary

National Health Investors (NYSE:NHI) has furthered its partnership with Navion Senior Solutions by investing approximately $13.2 million in various projects. This includes acquiring a 48-unit assisted living and memory care community in Manchester, TN, for $6.6 million at a 7.5% initial yield. NHI also funded a $3.0 million expansion at a community in Durham, NC, and provided a $3.6 million corporate loan to Navion, with both financing options set at 8.0% interest. The investments aim to enhance Navion's service offerings in the Southeast.

Positive

• Acquisition of a 48-unit assisted living and memory care community for $6.6 million with a 7.5% initial yield.
• Funding of a $3.0 million expansion at Carolina Reserve of Durham with an incremental lease rate of 8.0%.
• Provision of a $3.6 million corporate loan at an interest rate of 8.0% for future development.

Negative

• None.

MURFREESBORO, TN / ACCESSWIRE / June 8, 2021 / National Health Investors, Inc. (NYSE:NHI) announced today that it has expanded its relationship with Navion Senior Solutions ("Navion") through the acquisition of an assisted living and memory care community, funding of an expansion at an existing community, and funding of a corporate loan for the primary purpose of future development costs. These investments total approximately $13.2 million.

NHI acquired a 48-unit assisted living and memory care community in Manchester, TN. The community was purchased for $6.6 million, including closing costs of $100,000, at an initial yield of 7.5%. The lease has 2.5% annual escalators and was added to the existing master lease with Navion which has a 12-year maturity and two 5-year extension options.

Additionally, NHI provided approximately $3.0 million to Navion for a 10-unit expansion at Carolina Reserve of Durham, a senior housing community that NHI purchased in December 2017. The expansion financing is added to the lease basis and has an incremental lease rate of 8.0%.

Lastly, NHI provided a 10-year corporate loan to Navion for $3.6 million with an interest rate of 8.0%. In connection with the loan, NHI has a right of first refusal to provide permanent development financing for a future project.

Eric Mendelsohn, President and CEO, stated, "We are excited to expand our relationship with Navion as they grow their footprint in the Southeast. Navion, led by industry-veteran Stephen Morton, is an exceptional regional operator that has been able to improve occupancy and margins in our communities since we first partnered in 2017 and we look forward to growing this relationship."

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

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https://www.accesswire.com/650964/NHI-Expands-Navion-Senior-Solutions-Relationship

FAQ

What recent investment has NHI made in Navion Senior Solutions?

NHI invested approximately $13.2 million, acquiring a 48-unit assisted living community and funding expansions and a corporate loan.

How much did NHI pay for the assisted living community in Manchester, TN?

NHI acquired the 48-unit assisted living community for $6.6 million.

What is the initial yield of the newly acquired community?

The initial yield of the newly acquired community in Manchester, TN, is 7.5%.

What is the interest rate on the corporate loan provided by NHI to Navion?

The corporate loan NHI provided to Navion has an interest rate of 8.0%.

How does NHI plan to enhance its relationship with Navion?

NHI aims to enhance its relationship with Navion through continued investments in assisted living and memory care developments.