NHI offers a variety of creative financing

Sale/Leaseback

An operator sells its real estate for cash and simultaneously signs a long-term lease with the buyer. This arrangement is also utilized for open market acquisition when the REIT purchases the property and leases it to a new operator. Mostly used for: portfolio expansion, building enhancements, partner buyout, freeing up equity

Mezz Financing

A hybrid of debt and equity financing typically used to finance the expansion of existing companies. Mezzanine financing is debt capital that gives the lender the rights to convert to an ownership or equity interest in the company if the loan is not paid back in time and in full. It is generally subordinated to debt provided by senior lenders such as banks and venture capital companies. Mostly used for: bridging the gap between debt and equity as part of a debt financing

Joint Venture

The REIT Investment Diversification and Empowerment Act of 2007 (RIDEA) allows REITs to own both real estate and operations. The operating cash flow is taxed in a taxable REIT subsidiary. Mostly used for: portfolio expansion, partner buy-out, freeing up equity

Construction Financing

Funds borrowed to finance the construction of an assisted living community, skilled nursing facility or specialty hospital. NHI typically finances in the form of a lease at 100% approved project cost excluding working capital. Mostly used for: existing customers and established operators developing new communities