The healthcare real estate investment trust National Health Investors, Inc., has purchased six Florida skilled nursing facilities from the Care Foundation of America, Inc., for $67 million.
The facilities total 780 beds and have been part of NHI's mortgage loan portfolio for 16 years. The purchase resulted in the dismissal of pending litigation between NHI and CFA.
NHI, based in Murfreesboro, Tenn., said it would fund the purchase with $23.3 million in principal and interest on a mortgage note due to NHI from CFA, $29.7 million in cash deposits and $14 million in advances from NHI's revolving credit facility.
The six Florida facilities are leased to affiliates of Health Services Management, Inc., for approximately $6.2 million annually. NHI earnings for the facilities (before interest, taxes, depreciation, amortization and rents) for the fiscal year ending Nov. 30, 2009 totaled $10.6 million.
Justin Hutchens, NHI's president and COO, said the firm has also closed on a $100 million unsecured revolving credit facility to fund new healthcare real estate investments. The new credit facility bears interest at a margin of 250 basis points over LIBOR with a floor of 1 percent and matures in February 2011, he said.
National Health Investors specializes in the financing of healthcare real estate by purchase and leaseback transactions and by mortgage loans. The firm's investments involve skilled nursing facilities, assisted living facilities, independent living facilities, medical office buildings and an acute care hospital.