National Health Investors, Inc. (NYSE:NHI) announced today that its RIDEA joint-venture with Bickford Senior Living (“Bickford”) has acquired 17 assisted living and memory care communities for a total purchase price of $135 million. NHI owns 85% of the joint-venture and Bickford owns 15%. The acquisition brings the total number of properties in the joint-venture to 30, of which 3 are under construction. Wells Fargo Securities, LLC served as financial advisor to NHI on this transaction.
The 17 assisted living and memory care communities are comprised of 14 communities purchased from a subsidiary of Care Investment Trust, Inc. (OTCQX:CVTR) for approximately $123 million, and 3 communities purchased from affiliates of Bickford for approximately $12 million.
Justin Hutchens, NHI’s CEO and President stated, “This acquisition is evidence of the positive benefits of our joint-venture with Bickford which offers both organic and external growth potential. This relationship combines Bickford’s twenty-plus years of experience in compassionately caring for seniors with the financial strength of NHI.”
“NHI has been the perfect partner for us since 2009,” said Bickford president Michael Eby. “Since we both share the same resident-focused philosophy, our growth plans are truly aligned. We are very excited about our future with Justin and his team as our partner.”Key Transaction Highlights
- 17 facilities totaling 750 units with 90.6% average occupancy and an average age of 12 years
- Locations: Illinois, Indiana, Iowa and Nebraska
- 17 facilities have trailing twelve months net operating income of approximately $11.5 million after a 5% management fee to the operator and $500 per unit of capital expenditures
- Acquisition financed by: (1) borrowings of approximately $56.2 million on NHI's revolving credit facility with interest rates of LIBOR plus 140bps; and (2) assumption of approximately $78.8 million of Fannie Mae secured debt maturing on July 1, 2015 (repayable without penalty December 31, 2014) with interest rates between 6.845% and 7.17%
| Full-Year 2013
|Net income per diluted share attributable to common stockholders||$||2.74||$||2.77|
|Plus: Real estate depreciation||0.60||0.63|
|Plus: Loan impairment||0.14||0.14|
|Normalized FFO per diluted common share||$||3.48||$||3.54|