National Health Investors Acquires Community in CA - Analyst Blog

National Health Investors Inc. ( NHI ), a Murfreesboro, TN-based real estate investment trust (REIT), recently announced a deal to acquire a 56-unit assisted living community in Sacramento, CA, for $11.5 million. National Health Investors' revolving credit facility was utilized to fund this acquisition.

Built in 1999, this living community property offers memory care services in Sacramento. Currently, this property is 94% occupied and generates monthly revenue of $7,300 per occupied unit.

A subsidiary of Chancellor Health Care (CHC), which has experience in managing long-term senior care communities, will lease and operate the property for an initial time period of 15 years, with options for two renewals of 10 years each. The starting lease rate has been set at 8% plus fixed annual escalators.

National Health Investors is a REIT, engaged in income generating health care properties, mainly in the long-term care industry. It is involved in healthcare real estate financing through joint ventures, leaseback, mortgage and mezzanine financing. It invests in long-term healthcare facilities, medical office buildings, retirement centers, acute care hospitals and assisted living facilities.

This latest acquisition is a smart addition to National Health Investors' portfolio and its immediate leasing should translate into cash flow.

National Health Investors currently holds a Zacks Rank #2 (Buy). Some other equity REITs worth considering include The GEO Group, Inc. ( GEO ), Parkway Properties Inc. ( PKY ) and Aviv REIT, Inc. ( AVIV ). All of these stocks sport a Zacks Rank #1 (Strong Buy).

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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