National Health Investors Looks Toward the Midwest and West in Acquisitions

Eric Mendelsohn, president and CEO of National Health Investors (NYSE: NHI), participated in a video interview at Nareit’s REITweek: 2018 Investor Conference in New York.

Even though National Health Investors executed $95 million in transactions in the first half of this year, Mendelsohn said it has been a light year for the company.

“We look forward to doing between $200 million and $400 million on a regular basis,” he said. “There’s been some market turbulence that makes cost of capital an issue at certain times, so we have to keep that in mind as we do our acquisitions.”

Mendelsohn added that in a rising interest rate environment, REIT stocks react much like bonds, which can be a tricky situation for companies. “Our cost of capital fluctuates depending on how the market is treating our stock,” he said.

He noted that there has been a recent recovery, so turbulence is likely in the rearview mirror now. “I would also say that other private REITs and private equity are dealing with the same issue, so I think it’s an even landscape,” he added.

Mendelsohn also said the geographic footprint of National Health Investors may change heading into the future.

“We recently made a new hire of a business development person in Denver, Colorado, so we’re somewhat westward-facing at the moment,” he said. “At this time, we are focused on the Southeast and the Midwest, and we’d like to see some more acquisitions in the Midwest and the West.”