NHI Files Lawsuit Related to Legacy Holiday Properties

Rhea-AI Summary

National Health Investors (NYSE:NHI) has initiated litigation against Welltower and its subsidiaries in the Delaware Court of Chancery, claiming repeated failures to meet legal obligations. NHI alleges that Welltower fraudulently secured leases from a third party, Holiday Retirement, without honoring rental agreements. The lawsuit asserts Welltower owes over $14.1 million in back rent. The case is titled NHI v. Welltower Entities, under case number 2021-1097-MTZ.

Positive

• None.

Negative

• Welltower Entities allegedly owe over $14.1 million in back rent.
• Claims of fraudulent inducement to secure lease assignments.
• Litigation may lead to financial uncertainty for NHI.

MURFREESBORO, TN / ACCESSWIRE / December 27, 2021 / National Health Investors, Inc. (NYSE:NHI), NHI-REIT of Next House, LLC, Myrtle Beach Retirement Resident LLC, and Vorhees Retirement Residence LLC (collectively, "NHI") have filed suit against Welltower and certain of its subsidiaries (collectively, the "Welltower Entities") in the Delaware Court of Chancery (the "Litigation"). In the Litigation, NHI contends that the Welltower Entities have failed repeatedly to honor their legal obligations to NHI. In particular, NHI asserts that the Welltower Entities acquired assets from a third party, Holiday Retirement, that included leases to NHI senior living facilities and fraudulently induced NHI to consent to the assignment of the leases, and then immediately failed to pay rent or provide a promised security agreement that was intended to secure against their default, all as part of an effort to pressure NHI to agree to new conditions outside the assignment agreement or force a sale of the properties to the Welltower Entities. The Litigation further asserts that the Welltower Entities currently owe more than $14.1 million in back rent. The litigation is styled NHI, Plaintiffs v. Welltower Entities, Defendants under case number 2021-1097-MTZ.

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 regarding the outcome of the Litigation, 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 risks discussed in the risk factors 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. 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.

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

SOURCE: National Health Investors, Inc.

View source version on accesswire.com:
https://www.accesswire.com/679788/NHI-Files-Lawsuit-Related-to-Legacy-Holiday-Properties

FAQ

What lawsuit did NHI file against Welltower?

NHI has filed a lawsuit against Welltower for failing to honor lease agreements and owes over $14.1 million in back rent.

What are the key allegations in NHI's lawsuit against Welltower?

NHI alleges that Welltower fraudulently induced them into lease agreements and subsequently failed to pay rent.

What is the litigation case number for NHI's lawsuit against Welltower?

The case is styled as NHI v. Welltower Entities, case number 2021-1097-MTZ.

How much back rent does Welltower owe NHI?

Welltower is claimed to owe over $14.1 million in back rent to NHI.