NHI provides business update and declares second quarter 2021 dividend
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MURFREESBORO, TN / ACCESSWIRE / June 3, 2021 / National Health Investors, Inc. (NYSE: NHI) today provided an update on a deferral agreement with Holiday Retirement (“Holiday”), updated its May and second quarter contractual cash receipts and declared a dividend for the second trimester.
Vacation postponement agreement
NHI has entered into an agreement with Holiday which defers the rent by $ 600,000 per month for May, June and July 2021. The company has also agreed to release $ 600,000 per month to be applied to the rent for May, June and July 2021 of the feasting security deposit totaling $ 10.6 million prior to this deferral agreement. The remaining monthly base rent of $ 1.7 million will be paid in cash. Deferred payments under this agreement bear interest at 8% and are expected to be repaid over 18 months from January 1, 2022. NHI continues to assess actions to optimize the vacation portfolio which may include additional deferrals, sales of assets and lease restructurings.
NHI collected 87.1% of the contractual cash due for May. The remaining balance for the month is made up of the following: 7.5% deferrals related to Bickford Senior Living (“Bickford”); 2.3% carry-over related to leave; 2.5% of postponements, granted or pending, linked to two tenants; and 0.6% related to the decline in expected revenues from properties in transition before the start of the pandemic.
For the second quarter through May 2021, NHI received 86.2% of contractual cash owed, reflecting the following: 9.3% deferrals related to Bickford; 1.1% carry-over related to vacations; 2.8% of postponements, granted or pending, concern three tenants; and 0.6% related to the decline in expected revenues from properties in transition before the start of the pandemic. Please see the Company’s Form 10-Q for the quarter ended March 31, 2021 for more information on lease grants.
NHI declared a second quarter dividend of $ 0.90 per share which is payable in cash on August 6, 2021 to common shareholders of record on June 30, 2021. The second quarter dividend represents an 18.4% reduction from the dividend of the first quarter of $ 1.1025 per share. share. The dividend cut will keep around $ 28 million in 2021 based on the current number of shares.
“NHI’s board of directors is committed to preserving a prudent and conservative capital structure that guarantees the company sufficient flexibility to manage the impact of the pandemic and, as a result, declared a dividend of 0.90 $ per share in the second quarter. We believe this action puts NHI in a better position to significantly improve the quality of our real estate portfolio through lease restructurings, asset sales and accretive acquisitions while committing to pay a sustainable dividend to our clients. shareholders, ”said Eric Mendelsohn, President and CEO.
Mr Mendelsohn concluded: “We have said that we are motivated to use the pandemic to transform NHI into a stronger company. Today’s action is another indication that transformation is underway. We expect that the right sizing of our dividend will provide sufficient capacity to support our operators throughout the recovery in activity while maintaining the strength of our balance sheet and ultimately return to growth.
Established in 1991, National Health Investors, Inc. (NYSE: NHI) is a real estate investment trust specializing in sale and leaseback, joint ventures, mortgages and mezzanine financing of senior housing and discretionary medical investments. and meeting needs. NHI’s portfolio consists of independent, assisted and memory-care communities, fee-paying retirement communities, skilled nursing facilities, medical office buildings and specialist hospitals. For more information visit www.nhireit.com.
This press release contains 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 expected future financial condition of the Company, tenants, operators, borrowers or managers, operating results, cash flows, operating funds, dividend and dividend plans, financing opportunities and plans, capital market transactions, business strategy, budgets, projected costs, operating parameters, capital expenditures, competitive positions, acquisitions, investment opportunities, divestitures, integration of acquisitions, opportunities growth, expected rental income, continued qualification as a real estate investment trust (“REIT”), management’s plans and objectives for future operations, continuous performance improvement, the ability to service and refinance our obligations debt, the ability to finance growth opportunities and similar statements, including, but not limited to ter, 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 forward-looking statements. These risks and uncertainties include, among others; the impact of COVID-19 on our tenants, our borrowers, our economy and Society; the operational success of our tenants and borrowers in collecting our rental and interest income; the success of real estate development and construction activities, which may not achieve the operating results we expect; the risk that our tenants and borrowers will be subject to bankruptcy or insolvency proceedings; risks related to government regulations and payers, primarily Medicare and Medicaid, and the effect that lower repayment rates would have on the businesses of our tenants and borrowers; the risk that our tenants ‘and borrowers’ cash flows will be adversely affected by increased liability claims and liability insurance costs; risks associated with environmental laws and costs associated with liabilities related to hazardous substances; the risk that we may not be fully indemnified by our tenants and borrowers against future litigation; the success of our future acquisitions and investments; our ability to reinvest cash in real estate investments on a timely basis 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 debt-related covenants that impose certain operational limitations and a breach of these covenants could have a material adverse effect on our financial condition and results of operations; the risk that the illiquidity of real estate investments may hamper 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 exclusive decision-making power and our dependence on the financial position of other interests; our dependence on income derived primarily from fixed rate investments in real estate assets, while a portion of our debt bears interest at variable rates; the risk that our assets will be subject to impairment charges; and our reliance on the ability to continue to qualify for tax 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 statements or any other forward-looking statement, except as required by law, and such statements speak only as of the date on which they are made. Investors are urged to carefully consider and consider the various disclosures made by NHI in its periodic reports filed with the Securities and Exchange Commission, including risk factors and other information disclosed in NHI’s annual report on Form 10-K for the last closed fiscal year. . Copies of these documents are available free of charge on the SEC’s website at https://www.sec.gov or on the NHI website at https://www.nhireit.com.
Contact: Dana Hambly, Vice-President, Investor Relations
Telephone: (615) 890-9100
SOURCE: National health investors
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