National Health Investors, Inc. (NYSE: NHI) announced today that its RIDEA joint-venture with Bickford Senior Living has acquired 17 assisted living and memory care communities for a total purchase price of $135 million.
The 17 communities are comprised of 14 communities purchased from a subsidiary of Care Investment Trust, Inc. (OTCQX: CVTR) for approximately $123 million, and three communities purhcased from affiliates of Bickford for $12 million.
NHI owns 85% of the joint-venture, while Bickford owns 15%. The acquisition brings the total number of properties in the joint venture to 30, three of which are under construction.
“This acquisition is evidence of the positive benefits of our joint-venture with Bickford which offers both organize and external growth potential,” said NHI President and CEO Justin Hutchens. “This relationship combined Bickford’s twenty-plus years of experience in compassionately caring for seniors with the financial strength of NHI.”
The 17 communities located in Illinois, Indiana, Iowa and Nebraska total 750 units with 90.6% average occupancy and an average age of 12 years.
The properties also have trailing twelve months net operating income of approximately $11.5 million after a 5% management fee to the operator and $500 per unit of capital expenditures.
“NHI has been the perfect partner for us since 2009,” said Bickford president Michael Eby. “Since we both share the same resident-focused philosophy, our growth plans are truly aligned. We are very excited about our future with Justin and his team as our partner.”
NHI currently forecasts normalized FFO for 2013 from $3.48 to $3.54 per diluted common share.
Written by Jason Oliva