From good to great
National Health Investors (NYSE: NHI) added a well-run independent living community in Chehalis, Washington (40 miles south of Olympia) to its portfolio for a purchase price of $9.25 million, or $96,400 per unit, with an 8.7% cap rate. Built in phases from 1986 to the early 2000s, the community features a mix of apartment-style units and cottages, and is 95% occupied. It operates at a 35% margin on approximately $2.3 million of revenues, which can improve. Plus, sitting on 24 acres next to a medical center, there is also room to expand for NHI, which leased the community to a partnership between Marathon Development and Village Concepts Retirement Communities for a period of 15 years and... Read More »NHI’s new CEO
National Health Investors (NHI) has found its new CEO following the much publicized departure of its former chief executive, Justin Hutchens, who took over the CIO job at HCP (and dare we say the top job in a few years?). Effective October 5, Eric Mendelsohn was tapped as NHI’s CEO after already serving as interim CEO since the beginning of August. Before joining NHI as Executive Vice President of Corporate Finance in January 2015, Mr. Mendelsohn was previously at Emeritus, where, as SVP of Corporate Development, he led the way in such large transactions as the $3 billion joint venture with Blackstone and the $278 million Summerville merger. Our congratulations to Eric, well... Read More »NHI making headlines
National Health Investors (NYSE: NHI) made plenty of news this month, starting with the unexpected announcement that CEO Justin Hutchens was stepping down to become the CIO of HCP. The company also made three acquisitions this month, totaling $33.5 million. First, in a sale/leaseback transaction, NHI acquired a 42-unit independent/assisted living community in Roscommon, Michigan for $6 million, or $142,900 per unit, with a 9.2% cap rate. Occupancy was 100% at the time of the sale, and in the past three years has never been below 90%. The seller, The Brook Retirement Communities, is leasing the property back from NHI for 10 years at an initial lease rate of 7.75%, representing an 8.6%... Read More »Senior Care Market In Confused State
Stocks are gyrating wildly, sometimes for good reason and other times not so much. Okay, I have to admit that I am confused now. When Brookdale came out with poor second quarter results, its stock tanked, as it should have. But then Capital Senior Living came out with a very upbeat quarter, and its stock jumped 10%, as it should have, but then dropped by 15% over the next several days, for little reason, other than perhaps in sympathy with Brookdale shareholders. Genesis Health announced a good quarter, and its stock jumped by 10%, as it should have, and kept on rising to a 26% gain in a week when the market as a whole tanked. Hell, it didn’t even budge when China devalued its currency. ... Read More »Schedule a demo
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