MURFREESBORO, TN / ACCESSWIRE / May 20, 2021 / National Health Investors, Inc. (NYSE:NHI) today provided a business update regarding its monthly contractual cash collections.
Recent Deferral Activity
As previously announced, NHI agreed to defer $2.0 million in rent due for May 2021 from Bickford Senior Living ("Bickford"). Deferred rents related to Bickford total $8.75 million for 2021. These amounts are expected to be repaid with interest.
NHI agreed to defer approximately $0.4 million for two other tenants in May which is expected to be repaid with interest.
As disclosed in NHI's first quarter of 2021 results, NHI is in negotiations with Holiday Retirement ("Holiday") that could result in rent concessions starting in the second quarter of 2021. The Company expects to collect a substantial portion of current monthly rent from Holiday which may be supplemented with a portion of its $10.6 million lease deposit.
The Company continues to work diligently with any operators that need assistance related to the ongoing COVID-19 pandemic to find solutions to support them until business operations begin to stabilize. Discussions are ongoing with other tenants with no agreements on further rent concessions yet finalized.
NHI has collected 77.5% of contractual cash due for May through the date of this press release. The remaining balance for the month is comprised of the following: 2.0% of contractual cash which NHI expects to collect; 7.5% in deferrals related to Bickford; 1.5% in deferrals related to two other tenants; 10.9% related to Holiday's monthly rent; and 0.6% related to lower forecasted revenue from transitioned properties prior to the start of the pandemic.
For the second quarter-to-date of 2021, NHI has collected 81.5% of contractual cash due which reflects the following: 1.0% of contractual cash which NHI expects to collect; 9.3% in deferrals related to Bickford; 2.3% in deferrals related to three other tenants; 5.4% related to Holiday's monthly rent; and 0.5% related to lower forecasted revenue from transitioned properties prior to the start of the pandemic. Please see the Company's Form 10-Q for the quarter ended March 31, 2021 for more information regarding rent concessions.
Incorporated in 1991, National Health Investors, Inc. (NYSE: NHI) is a real estate investment trust specializing in sale-leaseback, joint-venture, mortgage and mezzanine financing of need-driven and discretionary senior housing and medical investments. NHI's portfolio consists of independent, assisted and memory care communities, entrance-fee retirement communities, skilled nursing facilities, medical office buildings and specialty hospitals. For more information, visit www.nhireit.com.
This press release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements regarding the Company's, tenants', operators', borrowers' or managers' expected future financial position, results of operations, cash flows, funds from operations, dividend and dividend plans, financing opportunities and plans, capital market transactions, business strategy, budgets, projected costs, operating metrics, capital expenditures, competitive positions, acquisitions, investment opportunities, dispositions, acquisition integration, growth opportunities, expected lease income, continued qualification as a real estate investment trust ("REIT"), plans and objectives of management for future operations, continued performance improvements, ability to service and refinance our debt obligations, ability to finance growth opportunities, and similar statements including, without limitation, those containing words such as "may," "will," "believes," "anticipates," "expects," "intends," "estimates," "plans," and other similar expressions are forward-looking statements. Forward-looking statements involve known and unknown risks and uncertainties that may cause our actual results in future periods to differ materially from those projected or contemplated in the forward-looking statements. Such risks and uncertainties include, among other things; the impact of COVID-19 on our tenants, borrowers, economy and the Company; the operating success of our tenants and borrowers for collection of our lease and interest income; the success of property development and construction activities, which may fail to achieve the operating results we expect; the risk that our tenants and borrowers may become subject to bankruptcy or insolvency proceedings; risks related to governmental regulations and payors, principally Medicare and Medicaid, and the effect that lower reimbursement rates would have on our tenants' and borrowers' business; the risk that the cash flows of our tenants and borrowers would be adversely affected by increased liability claims and liability insurance costs; risks related to environmental laws and the costs associated with liabilities related to hazardous substances; the risk that we may not be fully indemnified by our lessees and borrowers against future litigation; the success of our future acquisitions and investments; our ability to reinvest cash in real estate investments in a timely manner and on acceptable terms; the potential need to incur more debt in the future, which may not be available on terms acceptable to us; our ability to meet covenants related to our indebtedness which impose certain operational limitations and a breach of those covenants could materially adversely affect our financial condition and results of operations; the risk that the illiquidity of real estate investments could impede our ability to respond to adverse changes in the performance of our properties; risks associated with our investments in unconsolidated entities, including our lack of sole decision-making authority and our reliance on the financial condition of other interests; our dependence on revenues derived mainly from fixed rate investments in real estate assets, while a portion of our debt bears interest at variable rates; the risk that our assets may be subject to impairment charges; and our dependence on the ability to continue to qualify for taxation as a real estate investment trust. Many of these factors are beyond the control of the Company and its management. The Company assumes no obligation to update any of the foregoing or any other forward-looking statements, except as required by law, and these statements speak only as of the date on which they are made. Investors are urged to carefully review and consider the various disclosures made by NHI in its periodic reports filed with the Securities and Exchange Commission, including the risk factors and other information disclosed in NHI's Annual Report on Form 10-K for the most recently ended fiscal year. Copies of these filings are available at no cost on the SEC's web site at https://www.sec.gov or on NHI's web site at https://www.nhireit.com.
Contact: Dana Hambly, Vice President, Investor Relations
Phone: (615) 890-9100
SOURCE: National Health Investors, Inc.
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