FAQs

What is a REIT?

A Real Estate Investment Trust, or REIT, is a company that combines the capital of many investors to enable small investors to make investments in real estate. Congress created REITs with the Real Estate Investment Trust Act of 1960 and has subsequently expanded their capabilities with several other pieces of legislation. One of the biggest advantages of the REIT structure is that REITs do not pay federal income tax at the corporate level, and many states provide similar tax treatment. To qualify for this treatment, REITs must meet a variety of requirements, one of the most attractive to investors being that they must distribute at least 90% of their taxable income to shareholders each year.

Why Invest in a REIT?

REITs are owned by a variety of investors, including individuals, pension funds, endowment funds, insurance companies, bank trust departments and mutual funds. These investors generally invest in a REIT for one or more of the following reasons, however this list is not exhaustive.

• Current income in the form of dividends
• Potential long-term stock appreciation
• Liquidity in a real estate investment
• Ability to leverage investments of multiple small investors
• One of the only ways for small investors to participate in the real estate market

What is FFO?

We believe that Funds From Operations (FFO) is an important supplemental measure of operating performance because it excludes the effect of depreciation and gains (losses) from sales of facilities (both of which are based on historical costs which may be of limited relevance in evaluating current performance).  Additionally, funds from operations is widely used by industry analysts as a measure of operating performance for equity REITs.  We therefore disclose funds from operations, although it is a measurement that is not defined by accounting principles generally accepted in the United States.  We calculate funds from operations in accordance with the National Association of Real Estate Investment Trusts' definition.  Funds from operations does not represent cash generated from operating activities as defined by accounting principles generally accepted in the United States (funds from operations does not include changes in operating assets and liabilities and, therefore,  should not be considered as an alternative to net income as the primary indicator of operating performance or to cash flow as a measure of liquidity). 

What is the discount when investing through the Dividend Reinvestment Program?

2%

What's NHP's Experience?

Healthcare financing is not the "flavor of the month for us" – we have been at it exclusively since 1985. It is all we do, and we will be there for you whatever your needs in both good and difficult times. In just the past three years, NHP has invested over $3.5 billion with senior housing, long-term care and other healthcare operators ranging from startup to large providers, with no minimum or maximum investment amount required – just quality people and operations.

What Can NHP Do For Me?

The healthcare real estate sector’s long-term prospects have never been better, with strong operating fundamentals and explosive potential growth on the horizon. At the same time, you are facing a variety of challenges, not the least of which are increasing competition, regulatory and liability issues, aging facilities and the constant need to be able to efficiently access a ready, reliable and reasonable source of capital. As a leading source for healthcare real estate financing, we leverage our operating experience to tailor financing solutions to fit your needs. With our recent investments we have helped both new and existing customers accomplish:

• Renovating and expanding existing facilities and developing new ones.
• Accessing capital to fuel operational growth.
• Transferring operational control from one generation to the next.
• Cashing out private equity investors, enabling management to regain control.
• Recapitalizing operating entities to improve their capital structure.