Real estate investment trust National Health Investors (NHI) has expanded its association with Navion Senior Solutions by making a slew of investments totaling about $13.2 million.
These investments include the acquisition of a 48 unit assisted living and memory care community for $6.6 million, funding for expanding an existing community, and a corporate loan.
National Health Investors provided Navion with $3 million for expanding a 10 unit senior housing community called Carolina Reserve of Durham. Furthermore, a 10-year, $3.6 million corporate loan was provided to Navion for future development expenses at an interest rate of 8%.
Eric Mendelsohn, President and CEO, National Health Investors said, “We are excited to expand our relationship with Navion as they grow their footprint in the Southeast.” (See National Health Investors stock analysis on TipRanks)
Mendelsohn added, “Navion, led by industry veteran Stephen Morton, is an exceptional regional operator that has been able to improve occupancy and margins in our communities since we first partnered in 2017 and we look forward to growing this relationship.”
Recently, Wells Fargo analyst Todd Stender reiterated a Hold rating on the stock and raised the price target to $74 (11.7% upside potential) from $66.
Stender noted that while operator occupancies are under strain, NHI’s focus on triple net leases has helped the company to maintain better cash flow versus its larger peers.
Based on 3 Holds and 1 Sell, consensus among analysts is a Hold. The NHI average analyst price target of $72.25 implies 9.1% upside potential.
Shares have dropped about 6% over the past month.
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