NHI Collects Nearly 83% of Rent for November, Nursing Home Tenants Not Among Deferrals

National Health Investors (NYSE: NHI) has collected 82.7% of tenant rent for November, with deferrals still in place for at least one of its tenants through the next several months.

Bickford Senior Living, one of NHI’s seniors housing operators receiving rent deferrals, makes up 3.8% of the remaining balance for the month, the real estate investment trust (REIT) said in a Monday business update, while 8.3% in unpaid rent is tied to Holiday Retirement and 1.8% is listed as deferrals for two “other tenants.”

Murfreesboro, Tenn.-based NHI also factored in 1.5% of rent it still expects to be collected, and less than 1% from transitioned properties that the REIT anticipates will have lower revenue compared to the start of the pandemic.

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So far this quarter, NHI has collected 81.1% of its rent.

Its skilled nursing properties, which make up 32% of NHI’s assets and largely consist of operator giants Ensign Group (NASDAQ: ENSG) and National Healthcare Corporation (NYSE: NHC), represent close to 60% of NHI’s annualized cash revenue, along with entrance fee communities.

NHI CEO Eric Mendelsohn said during the company’s third quarter earnings call that SNF operators serve as a “blueprint” for long-term stability and growth moving into the end of the year, led by “best-in-class operators” Ensign and NHC.

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Meanwhile, NHI has reduced its tenant concentrations with seniors housing partners Bickford and Holiday, completing dispositions of 19 properties for $216 million with plans to divest more in the new year, Mendelsohn said earlier this month.

NHI had agreed to defer $4.5 million in contractual rent for Bickford’s fourth quarter dues, and up to $4 million in the first quarter of 2022. Seventeen Holiday properties, acquired by another public health care REIT, did not submit rent for the third quarter totaling $4.8 million, and has not paid rent for the fourth quarter so far, NHI said, another $4.3 million.

“A default notice has been sent,” NHI said of the Holiday rent; the REIT holds $8.8 million in security deposits for the properties.

Chief Investment Officer Kevin Pascoe said pipeline activity will pick up once dispositions and restructuring is concluded; currently, more than 50% of NHI assets are in seniors housing, split between assisted living and independent housing. Hospital and medical office building assets only represent 2% of NHI assets.

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.

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