Nationwide Health Properties Inc. said Thursday that it may be able to accommodate a key tenant's restructuring efforts without hurting its own earnings or cash flow.
The Newport Beach real estate investment trust, which specializes in health care facilities, said the strength of its portfolio should help it weather the problems of Alterra Healthcare Corp.
Alterra, based in Wauwatosa, Wis., said Monday that it is launching a restructuring effort and warned that it might miss some debt and lease payments. The nation's largest operator of assisted living facilities for the frail elderly said it is working with its lenders and lessors to defer some payments after cash flow was slower than projected.
Nationwide Health said it has investments in 54 properties leased to Alterra with a total investment of about $192 million. The facilities accounted for 12% of the company's revenue last year.
Overall occupancy for the portfolio is 91%.
On Tuesday, Health Care REIT Inc., which has 38 assisted living facilities leased to Alterra, said the Wisconsin company is current on its rent obligations.