National Health Investors Inc. (NYSE: NHI) CEO Eric Mendelsohn said its skilled nursing operators serve as a “blueprint” for long-term stability and growth at this point in the pandemic, during a third quarter earnings call late Monday.

NHI’s skilled portfolio represents 32% of its annualized cash revenue, with National Healthcare Corporation (NYSE: NHC) and the Ensign Group (NASDAQ: ENSG) making up 15% and 9%, respectively. Entrance fee and skilled nursing segments represent close to 60% of NHI’s annualized cash revenue.

Mendelsohn said the real estate investment trust (REIT) is fortunate enough to work with the “best-in-class operators” for its SNF portfolio. Out of 222 properties, Murfreesboro, Tenn.-based NHI has 75 skilled nursing facilities in its portfolio.

Although there were no new investments during the third quarter, Mendelsohn said leadership is working to transition NHI into a stronger company as the year draws to a close, touching on the restructuring of its 120 seniors housing properties, which make up more than 50% of NHI’s entire portfolio.

NHI reduced its tenant concentrations with seniors housing operators Bickford Senior Living and Holiday Retirement — this year, NHI completed dispositions of 19 properties for $216 million and plans to rid itself of more underperforming seniors housing properties in the first quarter of 2022, Mendelsohn said.

“Our current position reminds me of a point in time in our company’s history in 2009 when we had no debt on the balance sheet and $100 million in cash,” said Mendelsohn. “We are very eager to turn the page on this chapter of our story and get back to growth with new and existing partners.”

As NHI concludes its disposition program among seniors housing partners, the REIT will be more active in rebuilding its pipeline next year, NHI chief investment officer Kevin Pascoe added.

Skilled nursing EBITDARM lease coverage for the trailing 12-month period ending June 30 was 2.8x, compared to 2.9x for the same time period last year. By comparison, senior living communities representing 19% of NHI’s cash revenue had EBITDARM coverage of 1.06x compared to 1.17x during last year’s 12-month trailing period.

EBITDARM stands for earnings before interest, taxes, depreciation, amortization, rent and management fees within a facility.

NAREIT Funds From Operations (FFO) per diluted common share was $1.16 for the third quarter, a decrease of 18.3% from the third quarter in 2020. Net income for the quarter was 67 cents per diluted common share, a 29.5% drop from 3Q last year. NHI announced a 90 cent per share dividend for shareholders payable by the end of January.