X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

NEWPORT BEACH, CA-Nationwide Health Properties had its corporate credit rating lowered by Standard & Poor’s Monday from triple B to triple B minus, reflecting a modest increase in the proportion of revenues derived from troubled operators.

The locally based $1.5-billion real estate investment trust also had the ratings on its $727.9 million in outstanding securities lowered. However, the company’s outlook has been revised proportionately from negative to stable.

Comprised of 330 investments (88% equity and 12% mortgage), the REIT’s portfolio is spread over 37 states and 59 operators. The health care-focused portfolio is diversified: 44% of its investments are in assisted-living facilities, 15% in continuing-care retirement facilities and 41% in nursing homes.

Nationwide expects to take a modest number of facilities back from troubled operators, which could have a slight impact on earnings. Although the company’s financial position has weakened, it is still moderately conservative due to a manageable debt profile and limited near-term capital requirements.

Most of Nationwide’s operators remain current on their monthly rent/interest obligations, and appear to be working to reduce costs in response to reduced Medicare reimbursement rates. With little breathing room on its line-of-credit and limited access to equity capital, Nationwide has no plans to fund new development beyond present commitments of less than $1 million.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

GlobeSt. APARTMENTS Fall 2021Event

Join 1000+ of the industry's top owners, investors, developers, brokers & financiers at THE MULTIFAMILY EVENT OF THE YEAR!

Get More Information
 

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.