It seems that National Health Investors is doing just fine during this pandemic, as are its operators, apparently. The Tennessee-based REIT reported that it has collected 99.7% of its contractual rent in April, 100% in May, and so far, 99.4% in June. That should make shareholders feel pretty good right now.
On the occupancy front, excluding communities that have been open less than 24 months, it was not quite as rosy but nothing they can’t handle. For 41 same-community properties operated by Bickford Senior Living, occupancy has dropped 240 basis points, from 86.6% in March to 84.2% in May. The first quarter averaged 87.3%.
Senior Living Communities’ nine communities with NHI have only lost 160 basis points of occupancy since March, dropping from 80.6% to 79.0%. The first quarter average 80.4%, so they seem to be staying pretty much on target despite the pandemic.
NHI’s Holiday Retirement Corporation portfolio of 26 independent living communities has fared the worst. Its occupancy has declined by 350 basis points since March, from 86.7% to 83.2%. Holiday’s first quarter average occupancy was even higher at 87.3%, for a drop of 410 basis points since then.
All things considered, it could have been a lot worse, but we like the fact that its contractual lease payments have almost been entirely paid during the worst of the pandemic.
