Dividend Yield of 5+% From a Health Care Facility Provider: Is this the Investment You Should Be Making?

August 20, 2019

Eric Mendelsohn is the President and Chief Executive Officer of National Health Investors, Inc. He has more than 20 years of health care real estate and financing experience.

Previously, Mr. Mendelsohn was with Emeritus Senior Living for nine years, most recently as a Senior Vice President of Corporate Development, where he was responsible for the financing and acquisition of assisted living properties, home health care companies and executing corporate finance strategies.

Prior to Emeritus, Mr. Mendelsohn was with the University of Washington as a transaction officer, where he worked on the development, acquisition and financing of research, clinic and medical properties. Prior to that, he was a practicing transaction attorney, representing lenders and landlords.

In this 2,213 word interview, exclusively in the Wall Street Transcript, Mr. Mendelsohn details how to create a successful medical real estate business.

“We currently have over 240 properties, and as I said, most of them are in senior housing. We try to curate our mix, if you will, but being a REIT is a very opportunistic business. You have to play the cards that you’re dealt, and the types of deals that you want to do are not always available or not always available at a price that makes sense for your cost of capital.

We try very hard to make all of our acquisitions accretive. There is a school of thought where an acquisition doesn’t need to be accretive in the beginning and that you’ll get a return through property appreciation.

Some REITs are exploring that as a business model, but we are very conservative with our investment philosophy and believe that we should only pay a price that allows us to make money year one based on our cost of capital.

The second part of your question, if I had to pick a property type that I could focus on, I would really like to explore owning more behavioral health.”

Read the entire 2,213 word interview and get the full disclosure from this successful dividend payer.