National Health Investors Inc.
) announced the purchase and leaseback agreement with Washington
based Milestone Retirement Communities LLC. The purchase and
leaseback consideration is worth $9 million.
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NATL HEALTH INV (NHI): Free Stock Analysis
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Through this 101-unit acquisition, National Health gets hold of
three out of sixteen of the operating segments of Milestone. Of
these three facilities, two are in Oregon and the third one is
located in Idaho. The facilities will be leased for 10 years with
annual fixed escalators and a lease rate of 7.75%. The deal also
entails Milestone to lease and operate its facilities for the
The transaction was financed from National Health's revolving
credit facility. The company's filing, at the end of the third
quarter of 2012, stated that this facility has a withdrawal
capacity of a $145 million and we consider this to be more than
sufficient to fund the recent agreement.
National Health expects the agreement to consolidate its present
growth portfolio. The Zack Consensus Estimate for the full year
2012 is pegged at $3.17, reflecting a year-over-year increase of
National Health is dedicated to financing of healthcare real
estate through purchase and leaseback and through mortgage loans.
It has undertaken several purchase and leaseback deals to fortify
its fundamentals, strengthen its relationship with other
companies and to establish itself globally. Earlier in the third
quarter of 2012, National Health announced the acquisition of
Senior Living campus in Loma Linda in October 2012 for $12
million. The latest on the list was financing the Capital Funding
Group with $10 million for its healthcare loan investments in
November 2012. Concurrent to the deal with Milestone it also
agreed upon an acquisition of Charleston house, located in Beaver
Dam for $20.2 million.
National health currently holds a Zacks #2 Rank which translates
into a short term Buy rating.
) which closely competes with the company currently holds a Zacks
#3 Rank translating into a short term Hold rating.