Real estate investment trust National Health Investors, Inc. (NHI) has invested $40.3 million to acquire Brookhaven Hospital in Tulsa.
Brookhaven is a specialty behavioral health hospital with expertise in treating patients with traumatic brain injury.
Brookhaven has been leased to Vizion Health, which operates behavioral health hospitals. The lease is for 15 years with two 5 year renewal options. NHI has committed $2 million over the next two years for capital improvements, which will be added to the lease.
Additionally, NHI has also provided Vizion a corporate loan of $20 million to acquire assets and operations of Brookhaven NeuroNetwork, which includes Brookhaven hospital and Community NeuroRehab.
Community NeuroRehab is a community-based residential rehabilitation center network in Iowa and Oklahoma for people with brain injuries.
NHI President and CEO Eric Mendelsohn said, “We are excited to begin a new relationship with Vizion as they grow their behavioral health platform under a management team with decades of experience in the business. We continue to pursue accretive acquisitions with partners like Vizion and focus on long-term sustainable growth.” (See National Health Investors stock analysis on TipRanks)
Recently, Wells Fargo analyst Todd Stender reiterated a Hold rating on the stock and raised the price target to $74 (8.5% upside potential) from $66.
Stender highlighted that while operator occupancies are under pressure, NHI’s focus on triple net leases has helped the company to maintain better cash flow as compared to its larger peers.
Consensus among analysts is that National Health Investors is a Hold based on 3 Holds and 1 Sell. The average analyst price target of $73.75 implies 8.1% upside potential.
Shares have gained about 17.3% over the past year.