National Health Investors has agreed to defer another $3 million in rent due for March from Bickford Senior Living, the real estate investment trust announced late Monday. Deferred rents for the first quarter of 2021 related to Bickford totaled $3.75 million, and these amounts are expected to be repaid with interest.
The Murfreesboro, TN-based REIT previously had agreed to defer approximately $447,000 for one other tenant during the quarter, an amount also expected to be repaid with interest. The firm also reported an agreement Monday with another tenant to defer approximately $58,000 per month for April and May, which is expected to be repaid in June, July and August.
The firm’s overall cash collections for the first quarter have dipped approximately 30 basis points (0.3%) compared with the fourth quarter 2020, to 93.6%, which reflects: 0.7% of contractual cash which NHI expects to collect, 4.6% in deferrals related to Bickford, 0.5% in deferrals related to one other tenant, and 0.5% related to lower forecasted revenue from transitioned properties prior to the start of the pandemic.
“We continue 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,” NHI wrote in its business update Monday. “Discussions are ongoing with other tenants with no agreements on further rent concessions yet finalized.”
The update Monday led Mizuho Securities USA Analysts Omotayo Okusanya and Zachary Silverberg to maintain NHI’s “Underperform” rating.
“We remain worried about the deteriorating financial health of NHI’s top three tenants, which make up 41% of revenues, given the impact of the COVID-19 pandemic on senior housing fundamentals,” the analysts wrote in a note to investors on Tuesday.