National Health Investors has funded the refinance of a skilled nursing facility portfolio in the state of Texas. The $42.5 million senior loan was provided to an affiliate of Capital Funding Group, and the properties are leased by subsidiaries of The Ensign Group. The five-year loan has an annual interest rate of 7.25% with two one-year extensions.
The REIT also announced that it exercised its option to acquire Bickford of Virginia Beach, a 60-unit assisted living/memory care community in Virginia Beach. The acquisition was primarily funded with the satisfaction of a $14 million construction loan due from Bickford Senior Living. The community was added to an existing master lease with Bickford at an initial cash lease yield of 8% based on a $17.2 million investment.
In addition to the acquisition, NHI agreed to a $3 million credit to Bickford’s outstanding deferral balance. The Virginia Beach community’s pro forma EBITDARM coverage through the twelve months ended June 30, 2022, was 1.68x and is therefore expected to improve Bickford’s total coverage with NHI.
