National Health Investors, Inc. (NYSE:NHI) announced last week a $55.5 million purchase/leaseback transaction involving four Texas skilled nursing facilities with 595 beds owned by affiliates of Legend Healthcare, LLC, a privately-owned company (“Legend”). Legend is currently a lease customer of NHI and specializes in the operation of transitional care and skilled nursing facilities. Three of the four facilities were purchased by NHI on June 30, 2009, for a total of $39.7 million, with the fourth facility expected to be purchased by NHI for $15.8 million no later than August 1, 2009. NHI purchased the facilities from its cash balances.  The four facilities are being leased to Legend over 15 years at an initial lease rate of 10% plus annual increases and Legend has the option after 7 years to purchase the facilities.

“This transaction is representative of the execution of our business strategy which is focused on investing in high quality real estate assets with a solid return to NHI shareholders,” stated Andy Adams, NHI Chairman and CEO.
Justin Hutchens, NHI President and COO stated, “We are delighted to expand our business relationship with Legend Healthcare. Their operations continue to demonstrate excellent patient care delivery and strong financial
performance.”