Benzinga | Jan 26, 2022 05:00PM EST

NHI Provides Business Update

National Health Investors, Inc. (NYSE:NHI) today provided a business update regarding recent portfolio activity, litigation related to the legacy Holiday Retirement ("Holiday"), monthly deferral and contractual cash collections, and average occupancy from its three largest senior housing operators through December 2021.

Legacy Holiday Properties Update

As previously announced in January 2022, NHI exercised its rights under the Membership Pledge and Security Agreement between NHI and Welltower Victory II TRS, LLC (the "Pledgor") dated July 30, 2021 (the "Pledge Agreement") to vest in NHI as the landlord all Pledgor's voting and other consensual rights over Well Churchill Leasehold Owner, LLC (the "Tenant") during the continuance of Tenant's Events of Default. NHI subsequently filed a motion in the Delaware Court of Chancery to expedite the consideration of NHI's claims to enforce its rights under the Pledge Agreement. The motion to expedite was granted. NHI is seeking to expeditiously advance the transition of the remaining Holiday properties to new operators with as little disruption to residents as possible.

The Tenant has not made contractual rental payments since the July 2021 transaction with Holiday, with total unpaid rent exceeding $16 million. NHI continues to hold an $8.8 million security deposit which it anticipates applying to past due rent in the first quarter of 2022.

Deferral Update

NHI agreed to defer approximately $2.0 million in rent due for January from Bickford Senior Living ("Bickford"). As previously disclosed, NHI has agreed with Bickford to defer up to $4.0 million in contractual rent in the first quarter of 2022. NHI agreed to defer approximately $0.4 million in rent for two other tenants in January which is expected to be repaid with interest.

Collections

NHI collected 80.4% of contractual cash due for January. The remaining balance for the month is comprised of the following: 1.1% in outstanding rent NHI expects to collect; 7.8% in deferrals related to Bickford; 1.7% in deferrals agreed to with two other tenants; 8.4% in unpaid rent related to the legacy Holiday properties; and 0.6% related to lower forecasted revenue from transitioned properties prior to the start of the pandemic.

Please see the Company's Form 10-Q for the quarter ended September 30, 2021, and prior press releases for more information regarding rent concessions.

Occupancy

The following table summarizes the average monthly portfolio occupancy for Senior Living Communities ("SLC"), Bickford, and Holiday for the periods indicated, excluding development properties in operation less than 24 months, notes receivable, and properties disposed or transitioned to new operators.

Properties Dec-21 Nov-21 Oct-21 Sep-21 Aug-21 Jul-21 Jun-21 May-21

SLC 9 81.8% 81.9% 81.5% 80.9% 80.4% 80.0% 79.1% 78.6%

Bickford 42 80.9% 81.8% 81.3% 80.7% 80.3% 79.6% 78.2% 77.3%

Holiday 17 77.2% 79.1% 78.9% 78.9% 77.5% 77.1% 76.3% 75.7%

Properties Apr-21 Mar-21 Feb-21 Jan-21 Dec-20 Nov-20 Oct-20 Sep-20

SLC 9 77.9% 77.8% 78.1% 77.3% 76.2% 77.1% 78.6% 78.9%

Bickford 42 76.6% 74.6% 74.9% 75.5% 77.1% 79.7% 80.5% 81.6%

Holiday 17 75.3% 75.1% 75.0% 76.7% 78.1% 78.6% 79.5% 80.5%