Results calls review: CareTrust REIT, National Health Investors, National Healthcare Corporation – Business Daily News
The gradual recovery is evident in three new earnings reports.
While the senior care industry is “not out of the woods yet,” CareTrust REIT Chairman and CEO Greg Stapley said on the results conference call Monday that he was “very satisfied. Of the third quarter results of the San Clemente, Calif., Real estate investment trust.
CareTrust reports normalized operating funds of $ 36.7 million, which is an increase of 13% over the previous year and a normalized FFO per share of $ 0.38. The REIT reported normalized funds available for distribution of $ 39 million, an increase of 15.1% from a year earlier, and a normalized ADF per share of $ 0.40.
During the quarter, CareTrust acquired the 119-bed Sedona Trace health and wellness center in Austin, TX, and the 122-bed Cedar Pointe health and wellness center near Cedar Park, which the REIT then leased to affiliates of The Ensign Group. CareTrust funded the purchase price of approximately $ 32.5 million from its $ 600 million unsecured revolving credit facility. The REIT now has $ 80 million outstanding on its $ 600 million revolving line of credit, with no debt due until 2024.
âThe recovery in occupancy rates that began earlier this year for our skilled nursing providers continued into the third quarter,â Stapley said in a statement. Press release released Monday in conjunction with the call for results.
CareTrust reported that 96.2% of its contract rents were collected in the third quarter.
âWith the exception of a small short-term delay, our tenants were able to pay their rents throughout the year despite the effect of the pandemic,â Stapley said on the call.
The occupation is strong and would be much more advanced without the tight labor market, âsaid Dave Sedgwick, President and COO of CareTrust.
âSeveral of our tenants say they have turned away patients simply because they don’t have the staff to take care of more,â said Stapley.
Learn more about the earnings call McKnight Seniors Residence and McKnight Long Term Care News.
National health investors
National Health Investors made significant progress in the third quarter, Eric Mendelsohn, NHI president and CEO, said in Monday’s earnings call.
The Murfreesboro, Tennessee-based real estate investment trust sold 19 properties for about $ 216 million, including 16 underperforming senior units for about $ 173 million at a low single-digit cap rate, and is working on the divestiture of another subset of underperforming seniors housing. properties at similar capitalization rates.
Mendelsohn said the REIT expects the transaction to be completed in the first quarter of 2022.
âWhile there are many I’s to point and T’s to jump through, we’re happy to have established frameworks that fundamentally transform our relationship with Bickford and our holiday legacy,â he said.
âWe have reduced our tenant concentrations with Bickford and Holiday and established frameworks that we believe significantly improve NHI’s coverage and growth profiles. Our balance sheet is in good shape because we have reduced our debt despite the postponements of our tenants and the non-payment of rents from Holiday. We have the full capacity of our gun and have little need to issue new shares as we look to growth, âMendelsohn said.
In August 2021, NHI sold a portfolio of eight properties leased to Holiday with an aggregate net book value of $ 113.6 million for a total cash consideration of $ 115 million, including transaction costs of 0. $ 9 million, and recorded a gain of approximately $ 1.9 million associated with this transaction. Rental income was $ 0.9 million and $ 5.9 million for the three and nine months ended September 30, 2021, respectively, and $ 2.5 million and $ 7.5 million for the three and nine months ended September 30, 2020, respectively, according to a Press release released Monday in conjunction with the call for results.
On September 30, NHI sold a retirement home located in Florida for a cash consideration of $ 14 million which was received on October 1, 2021, including transaction costs of $ 1.2 million and recorded a gain of approximately $ 9.4 million. Rental income was $ 0.3 million and $ 0.8 million for the three and nine months ended September 30, 2021, respectively, and $ 0.3 million and $ 1 million for the three and nine months ended September 30, 2020, respectively, the company said.
NHI collected 85.6% of contractual cash due for the third quarter. NHI has granted rent deferrals totaling approximately $ 5.8 million. Of that total, approximately $ 3.5 million of deferrals were related to Bickford Senior Living, $ 0.6 million to Holiday and approximately $ 1.7 million to three other tenants. NHI collected 85.6% of contractual cash due for the quarter. The remaining balance is made up of the following: 4.4% deferrals related to Bickford, 0.8% deferrals related to Holiday; 2.0% carry-overs linked to three other operators; 0.5% related to the decline in expected income from properties in transition before the pandemic began and 6.7% related to non-payment of contractual rent during vacations.
Rent deferrals were approximately $ 19.9 million. Of that total, approximately $ 13.8 million in deferrals were related to Bickford, $ 1.8 million to Holiday and approximately $ 4.3 million to four other tenants.
NHI has agreed with Bickford to defer $ 4.5 million in contractual rent due for the fourth quarter of 2021 and plans to grant up to $ 4 million in the first quarter of 2022. The REIT also has an agreement with two other tenants regarding additional rent deferrals of approximately $ 0.5. million euros for the fourth quarter of 2021.
Learn more about the earnings call McKnight Seniors Residence .
National Health Care Society
National Healthcare Corporation reported a third-quarter loss of $ 3.3 million, compared to net income of $ 12.8 million for the same period a year ago, the Murfreesboro, Tennessee-based company reported. in a press release. Press release Friday.
âThe decline in our reported GAAP earnings for the third quarter of 2021 is due to unrealized losses in our portfolio of marketable equity securities,â the company said.
Net revenue from operations and CARES Act revenue for the third quarter totaled $ 276.7 million compared to $ 250. 6 million for the third quarter of 2020, an increase of 10.4%.
NHC’s skilled nursing facility occupancy rate increased 90 basis points in the third quarter compared to the second quarter.