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National Health (NHI) Notes Higher Rent Receipts, Occupancy Down
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Despite the coronavirus outbreak-led market disruptions, National Health Investors, Inc. (NHI - Free Report) , commonly known as NHI, issued a business update related to monthly contractual rent collections and average occupancy from its three largest senior housing operators — Bickford, Senior Living Communities or SLC and Holiday.
Particularly, its rent collections continue to remain strong, with December rent collections coming in at 96.3%, up from November contractual rent of 87.7%. Moreover, fourth-quarter rent collections improved from 92.7% (as of Nov 16) to 93.9%.
Bickford, which operates 47 properties for the company, had rent deferrals amounting to $750,000 or 2.8% of contractual cash due for December and $3.75 million or 4.6% of fourth-quarter contractual rent due for the December-end quarter.
The remaining balance of uncollected rent for December and the fourth quarter is primarily in connection to a previously-disclosed additional tenant concession and lower projected revenues from properties transitioned before the start of the pandemic.
Notably, NHI’s senior housing business has been adversely impacted by the COVID-19 pandemic. The company has witnessed incidences of COVID-19 outbreaks. This along with probable slower move-ins and a high level of move-outs is anticipated to have resulted in occupancy erosion at its senior housing portfolio.
In fact, Bickford, reported occupancy of 79.5% in November, declining 110 basis points (bps) from October’s reported occupancy of 80.6%.
Holiday, operating 26 properties for NHI, also witnessed a decline in monthly occupancy. Occupancy as of November end was 70%, falling 80 bps and 150 bps from 77.8% and 78.5% in October and September, respectively.
Lastly, SLC, which operates nine properties for NHI, witnessed a monthly occupancy decline of 150 bps to 77.1% in November.
Although strong rent collections from senior housing operators are expected to support top-line growth, unfavorable occupancy trends in its senior housing portfolio will likely impact fourth-quarter earnings.
Apart from the coronavirus outbreak-led occupancy woes, the senior housing market has been reeling with high-supply conditions in certain markets and rising labor costs. This is concerning for NHI because elevated supply usually curtails landlords’ pricing power and limits growth in occupancy level.
Moreover, shares of this Zacks Rank #3 (Hold) company have lost 13.7% over the past year, wider than the industry’s decline of 3%.
Rexford Industrial Realty, Inc.(REXR - Free Report) FFO per share estimates for the current year have been revised upward by 1.6% to $1.30 over the past two months. The company carries a Zacks Rank of 2, currently.
City Office REIT, Inc.’s (CIO - Free Report) Zacks Consensus Estimate for ongoing-year FFO per share has moved 5.3% north to $1.20 in two months’ time. The company has a Zacks Rank of 2 at present.
Note: Anything related to earnings presented in this write-up represent funds from operations (FFO) — a widely used metric to gauge the performance of REITs.
These Stocks Are Poised to Soar Past the Pandemic
The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.
Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.
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National Health (NHI) Notes Higher Rent Receipts, Occupancy Down
Despite the coronavirus outbreak-led market disruptions, National Health Investors, Inc. (NHI - Free Report) , commonly known as NHI, issued a business update related to monthly contractual rent collections and average occupancy from its three largest senior housing operators — Bickford, Senior Living Communities or SLC and Holiday.
Particularly, its rent collections continue to remain strong, with December rent collections coming in at 96.3%, up from November contractual rent of 87.7%. Moreover, fourth-quarter rent collections improved from 92.7% (as of Nov 16) to 93.9%.
Bickford, which operates 47 properties for the company, had rent deferrals amounting to $750,000 or 2.8% of contractual cash due for December and $3.75 million or 4.6% of fourth-quarter contractual rent due for the December-end quarter.
The remaining balance of uncollected rent for December and the fourth quarter is primarily in connection to a previously-disclosed additional tenant concession and lower projected revenues from properties transitioned before the start of the pandemic.
Notably, NHI’s senior housing business has been adversely impacted by the COVID-19 pandemic. The company has witnessed incidences of COVID-19 outbreaks. This along with probable slower move-ins and a high level of move-outs is anticipated to have resulted in occupancy erosion at its senior housing portfolio.
In fact, Bickford, reported occupancy of 79.5% in November, declining 110 basis points (bps) from October’s reported occupancy of 80.6%.
Holiday, operating 26 properties for NHI, also witnessed a decline in monthly occupancy. Occupancy as of November end was 70%, falling 80 bps and 150 bps from 77.8% and 78.5% in October and September, respectively.
Lastly, SLC, which operates nine properties for NHI, witnessed a monthly occupancy decline of 150 bps to 77.1% in November.
Although strong rent collections from senior housing operators are expected to support top-line growth, unfavorable occupancy trends in its senior housing portfolio will likely impact fourth-quarter earnings.
Apart from the coronavirus outbreak-led occupancy woes, the senior housing market has been reeling with high-supply conditions in certain markets and rising labor costs. This is concerning for NHI because elevated supply usually curtails landlords’ pricing power and limits growth in occupancy level.
Moreover, shares of this Zacks Rank #3 (Hold) company have lost 13.7% over the past year, wider than the industry’s decline of 3%.
Stocks to Consider
CubeSmart’s (CUBE - Free Report) Zacks Consensus Estimate for 2020 funds from operations (FFO) per share has moved up 1.2% to $1.65 over the past month. The company currently carries a Zacks Rank of 2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Rexford Industrial Realty, Inc.(REXR - Free Report) FFO per share estimates for the current year have been revised upward by 1.6% to $1.30 over the past two months. The company carries a Zacks Rank of 2, currently.
City Office REIT, Inc.’s (CIO - Free Report) Zacks Consensus Estimate for ongoing-year FFO per share has moved 5.3% north to $1.20 in two months’ time. The company has a Zacks Rank of 2 at present.
Note: Anything related to earnings presented in this write-up represent funds from operations (FFO) — a widely used metric to gauge the performance of REITs.
These Stocks Are Poised to Soar Past the Pandemic
The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.
Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.
See the 5 high-tech stocks now>>