National Health downgraded on price

NEW YORK — Shares of National Health Investors Inc. fell Tuesday after an analyst downgraded the real estate company, saying its stock is fairly valued.

Jerry Doctrow of Stifel Nicolaus said he was changing his rating on the stock to "Hold" less than a week after initiating coverage with a "Buy" rating and $29 target price.

In a research note, the analyst said, "We are not in the habit of quick ratings changes but believe National Health Investors shares are now fully valued despite the company's strong balance sheet and recently announced acquisitions that we believe support our 2010 FFO ... growth estimates."

Last month the Murfreesboro, Tenn., company announced a $55.5 million sale/leaseback deal for four skilled nursing facilities in Texas.

FFO, or funds from operations, is a key gauge of performance by real estate investment trusts. The measurement adds depreciation and amortization expenses, as well as gains or losses on the sale of rental property, back to net income.

The Murfreesboro, Tenn., company specializes in the purchase and leaseback of health care real estate and in the making of mortgage loans to health care operators. At the end of the first quarter it owned more than 100 facilities in 17 states, including long-term care facilities and assisted living facilities.

Shares of National Health Investors fell 99 cents, or 3.4 percent to $28.31 in afternoon trading.

Back To Top