National Health Investors Inc. (NHI - Free Report) announced the purchasing of five memory care facilities in Texas and Illinois for $61.8 million. The acquisition is likely to bolster the portfolio of this Murfreesboro, TN-based healthcare real estate investment trust (REIT).
These facilities, totaling 223 units will be leased back to The LaSalle Group, a new tenant of National Health Investors, for 15 years. The lease carries an initial cash yield of 7% and has three renewal options.
National Health Investors is a real estate investment trust, which invests in income producing health care properties, primarily in the long-term care industry. The relationship with The LaSalle Group, the Dallas, TX-based family-owned business is likely to be accretive for the REIT going forward.
Currently, National Health Investors carries a Zacks Rank #3 (Hold).
Shares of National Health Investors underperformed the Zacks categorized REIT and Equity Trust - Other industry, over the past three months. During this time, shares of the company lost 2.3%, whereas the industry gained 1.8%.
Stocks to Consider
Investors interested in the REIT space, may consider stocks like Global Net Lease, Inc. (GNL - Free Report) , CoreSite Realty Corporation (COR - Free Report) and CorEnergy Infrastructure Trust, Inc. (CORR - Free Report) . All these stocks carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
In the last 30 days, Global Net Lease’s FFO per share for first-quarter 2017 escalated 11.1% to 60 cents.
In the last 30 days, CoreSite Realty’s FFO per share for first-quarter 2017 increased 0.9% to $1.06.
CorEnergy Infrastructure Trust’s first-quarter 2017 FFO per share estimates moved up 6.5% to $1.14, in the last 30 days.
Note: FFO, a widely used metric to gauge the performance of REITs, is obtained after adding depreciation and amortization and other non-cash expenses to net income. All EPS numbers presented in this write up represent FFO per share.
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