Health care notes: NHI restructuring JV – Nashville Post (subscription)


Also: Healthcare Realty has $98M of deals in pipeline

authors Geert De Lombaerde

The leaders of National Health Investors have struck a deal with their peers at Bickford Senior Living to convert their joint venture covering almost 40 properties into a more conventional lease arrangement.

A number of details still need to be arranged and approvals obtained but the companies agreement calls for NHI to pay Bickford $25.1 million for the latter’s 15 percent stake in the JV’s real estate. Coming the other way will be $8.1 million to buy out NHI’s 85 percent interest in the venture’s senior housing operations.

“The close working relationship between NHI and Bickford cannot be overstated,” said NHI President and CEO Eric Mendelsohn. “The new structure and financial impacts of this change will better position NHI for predictable cash flows and will help us maintain an active development pipeline.”

NHI and Bickford, which is the Murfreesboro-based company’s largest assisted-living tenant in terms of lease revenue, set up their joint venture in 2012 and have since added a number of properties. Their restructuring deal is expected to be completed by year’s end.

Shares of NHI (Ticker: NHI) ended Thursday at $78.01, up about 1 percent on the day. So far in 2016, they’ve risen almost 30 percent.

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Healthcare Realty Trust executives are working to buy two medical office buildings in Seattle and Washington, D.C. for a combined $98 million. The deal, which are expected to close in October, will grow West End-based Healthcare Trust’s property portfolio by about 3 percent. The MOBs total 191,000 square feet and are fully leased.

Healthcare Realty execs detailed their M&A activities as part of their second-quarter results showing year-over-year growth of almost 11 percent in normalized funds from operations.

Healthcare Realty Trust shares (Ticker: HR) rose 1.7 percent to $35.71 Thursday, pushing the company’s market capitalization back above $4 billion. Year to date, they’re up 26 percent.

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