NHI Expands Discovery Relationship with $128.4 Million Joint Venture

– Commits $6 Million to Mortgage Loan –

MURFREESBORO, Tenn.–(BUSINESS WIRE)–National Health Investors, Inc. (NYSE: NHI) announced today that it has
entered into a property-company joint venture with affiliates of its
current tenant, Discovery Senior Living (“Discovery”). Six properties,
located in Pennsylvania, Maryland and Indiana, will be purchased by the
joint venture for $128,350,000, including up to $1,500,000 in estimated
closing costs and expenses. The properties consist of 145 independent
units, 356 assisted living units and 95 memory care units and will be
leased to affiliates of Discovery in a 10-year lease with a 6.5% initial
annual cash yield with a CPI-based escalator with a 2% floor and 3% cap
beginning in year two. There are two five-year extension options. NHI,
the managing member, will own 97.5% of the joint venture equity and
Discovery will own 2.5%.

NHI has committed to a senior mortgage loan of $6,000,000 at 7% annual
interest extended to affiliates of Discovery for an additional property
in Indiana for which the joint venture will have the option to purchase
at stabilization. The facility consists of 52 assisted living units and
22 memory care units. The loan is scheduled to be closed by June 30.

Eric Mendelsohn, NHI President and CEO, stated, “NHI has had a
long-standing relationship with Discovery, which is a highly-regarded,
sophisticated operator of independent, assisted and memory care
communities. We are excited to further develop that relationship through
a joint venture on these properties that provide an excellent fit into
NHI’s portfolio.”

About Discovery

Discovery Senior Living, based out of Bonita Springs, FL, was formed in
1991. With almost three decades of experience, the award-winning
management group has been developing, building, marketing, and operating
upscale, luxury senior-living communities across the United States. With
a flourishing portfolio of more than 9,500 existing home or homes under
development, Discovery Senior Living has become a recognized industry
leader in creating world-class, resort-style communities. For more
information, visit www.discoveryseniorliving.com.

About NHI

Incorporated in 1991, National Health Investors, Inc. (NYSE: NHI) is a
real estate investment trust specializing in sale-leaseback,
joint-venture, mortgage and mezzanine financing of need-driven and
discretionary senior housing and medical investments. NHI’s portfolio
consists of independent, assisted and memory care communities,
entrance-fee retirement communities, skilled nursing facilities, medical
office buildings and specialty hospitals. For more information, visit www.nhireit.com.

This press release includes 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.
statements regarding the Company’s, tenants’, operators’, borrowers’ or
managers’ expected future financial position, results of operations,
cash flows, funds from operations, dividend and dividend plans,
financing opportunities and plans, capital market transactions, business
strategy, budgets, projected costs, operating metrics, capital
expenditures, competitive positions, acquisitions, investment
opportunities, dispositions, acquisition integration, growth
opportunities, expected lease income, continued qualification as a real
estate investment trust (“REIT”), plans and objectives of management for
future operations, continued performance improvements, ability to
service and refinance our debt obligations, ability to finance growth
opportunities, and similar statements including, without limitation,
those containing words such as “may”, “will”, “believes”, “anticipates”,
“expects”, “intends”, “estimates”, “plans”, and other similar
expressions are forward-looking statements.
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 the forward-looking statements. Such
risks and uncertainties include, among other things; the operating
success of our tenants and borrowers for collection of our lease and
interest income; the success of property development and construction
activities, which may fail to achieve the operating results we expect;
the risk that our tenants and borrowers may become subject to bankruptcy
or insolvency proceedings; risks related to governmental regulations and
payors, principally Medicare and Medicaid, and the effect that lower
reimbursement rates would have on our tenants’ and borrowers’ business;
the risk that the cash flows of our tenants and borrowers would be
adversely affected by increased liability claims and liability insurance
costs; risks related to environmental laws and the costs associated with
liabilities related to hazardous substances; the risk that we may not be
fully indemnified by our lessees and borrowers against future
litigation; the success of our future acquisitions and investments; our
ability to reinvest cash in real estate investments in a timely manner
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 covenants related to our indebtedness which impose
certain operational; the risk that the illiquidity of real estate
investments could impede 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 sole decision-making
authority and our reliance on the financial condition of other
interests; our dependence on revenues derived mainly from fixed rate
investments in real estate assets, while a portion of our debt bears
interest at variable rates; the risk that our assets may be subject to
impairment charges; and our dependence on the ability to continue to
qualify for taxation as a real estate investment trust. Many of these
factors are beyond the control of the Company and its management.
Company assumes no obligation to update any of the foregoing or any
other forward looking statements, except as required by law, and these
statements speak only as of the date on which they are made.
are urged to carefully review and consider the various disclosures made
by NHI in its periodic reports filed with the Securities and Exchange
Commission, including the risk factors and other information disclosed
in NHI’s Annual Report on Form 10-K for the most recently ended fiscal
year. Copies of these filings are available at no cost on the SEC’s web
site at
or on NHI’s web site at


Roger R. Hopkins
Chief Accounting Officer
(615) 890-9100

error: Content is protected !!