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National Health Investors, Inc. (NYSE: NHI) today provided a business update regarding its monthly contractual cash collections and average occupancy from its three largest senior housing operators.
Recent Deferral Agreements
In April, NHI entered into a rent deferral agreement with Bickford Senior Living (“Bickford”) which includes a deferral not to exceed $3.0 million for April and a deferral not to exceed $2.0 million for May. Per the agreement, NHI granted Bickford a deferral of $3.0 million for April. All deferred amounts under the agreement, including the previously disclosed $3.0 million for March, bear interest at 8% from the date of the deferral and are expected to be repaid over a period of 18 months commencing on October 1, 2021.
The Company continues to work diligently with any operators that need assistance related to the ongoing COVID-19 pandemic to find solutions to support them until business operations begin to stabilize. Discussions are ongoing with other tenants and while agreements on further rent concessions have yet to be finalized, the Company expects that future concessions are forthcoming.
NHI has collected 83.5% of contractual cash due for April through the date of this press release. The remaining balance for the month is comprised of the following: 3.2% of contractual cash which NHI expects to either collect or defer pending ongoing discussions; 11.0% in deferrals related to Bickford; 1.8% in deferrals related to two other tenants; and 0.5% related to lower forecasted revenue from transitioned properties prior to the start of the pandemic.
Year-to-date, NHI has collected 91.6% of contractual cash due with the remaining balance comprised of the following: 0.8% of contractual cash which NHI expects to either collect or defer pending ongoing discussions; 6.2% in deferrals related to Bickford; 0.9% in deferrals related to two other tenants; and 0.5% related to lower forecasted revenue from transitioned properties prior to the start of the pandemic. Please see the Company’s Form 10-K for the year ended December 31, 2020 for more information regarding rent concessions.
The following table summarizes the average monthly portfolio occupancy for Senior Living Communities (“SLC”), Bickford, and Holiday Retirement (“Holiday”) for the periods indicated, excluding development properties in operation less than 24 months, notes receivable, and properties transitioned to new operators or disposed.