National Health Investors has acquired two senior living communities for a total purchase price of $12.7 million.
The two communities in Oregon and Michigan were acquired through separate transactions and expand the NHI-Chancellor Health Care partnership to five communities. The deal also establishes a new partnership for the Murfreesboro company with The Brook Retirement Communities.
Golden Age Senior Living in Portland, Oregon is a 40-bed memory care facility. The community will be leased to Chancellor Health Care for 15 years. The Brook of Roscommon in Roscommon, Michigan is a 42-unit independent and assisted living community that will be leased to The Brook Retirement Communities.
“We are very happy to be expanding our relationship with Chancellor Health Care with the acquisition of Golden Age, and to add a new partner, The Brook Retirement Communities. These acquisitions are representative of our desire to continue our practice of partnering with strong regional operators,” Eric Mendelsohn, NHI’s President and CEO, said in a release.
Just as the dust is settling on the second-quarter earnings season, John Ransom at Raymond James has raised his rating on shares of Community Health Systems to 'outperform' from 'market perform.' He had gone in the other direction following the Supreme Court's Obamacare ruling in June, but the stock has since retreated near to pre-ruling levels. His new price target for the stock is $70. It was changing hands Friday morning (Ticker: CYH) at about $57.60.
Another analyst has weighed in on the prospects for shares of National Health Investors following word of the pending exit of CEO Justin Hutchens. And just like Juan Sanabria at Bank of America Merrill Lynch, John Kim at BMO Capital Markets says Hutchens' departure is a blow for NHI. He sees "very little managerial depth" at the Murfreesboro-based company and has lowered his rating on the company to 'market perform' from 'outperform.' He also has trimmed his price target more than 10 percent to $65. NHI (Ticker: NHI) is trading at about $58.50.
Bank of America Merrill Lynch analyst Juan Sanabria is a little unsettled by the looming and unexpected departure at National Health Investors of CEO Justin Hutchens. Sanabria on Tuesday downgraded shares of the Murfreesboro-based real estate investment trust to ‘underperform’ from ‘neutral,’ saying Hutchens’ exit creates added uncertainty. NHI shares (Ticker: NHI) slipped a bit Wednesday to $59.29. So far this year, they’re down about 15 percent.
Under CEO Justin Hutchens, senior living real estate investment trust National Health Investors has tripled its asset base to about $2 billion while its market cap now stands at more than $2.3 billion. In a recent interview with Senior Housing News, Hutchens discusses some of the ways he plans to further build NHI's footprint. California looks to be a key growth market thanks to its tighter regulations but Texas and Florida likely won't figure as prominently because their barriers to entry are lower.
Read the full Q&A here.
Justin Hutchens, president and CEO of National Health Investors, this week sold about 8 percent of his shares in the company, grossing almost $420,000. The move came after NHI stock shares rose more than 6 percent in about three weeks to get back into positive territory for the year. The stock (Ticker: NHI) is up 25 percent over the past six months. Hutchens still directly owns $4.8 million worth of the Murfreesboro-based company.
POSTDATA: WARRANTY DEEDS