National Health Investors (NHI) reported mixed Q2 results, with earnings per share of $0.79—exceeding analyst expectations by four cents—while revenue reached $70.27 million, surpassing estimates. Despite this, the stock remains volatile, declining 5.28% over three months. The healthcare REIT announced a strategic partnership to add six senior living facilities to its portfolio, marking its first multi-property RIDEA-structured deal, which promises deeper operational collaboration. Meanwhile, NHI raised its Q3 dividend to $0.92 per share, signaling confidence despite a year-over-year earnings dip attributed to $1.3 million in proxy fight costs. Adjusted Funds From Operations (FFO) rose to $1.22 per share, reflecting operational strength.
Strategic Shifts and Expansion
NHI completed the transition of six Discovery Senior Living facilities into its SHOP portfolio, sacrificing $8.8 million in near-term rental income but positioning for higher long-term yields. The SHOP segment already showed a 29.4% increase in net operating income. With $750 million available for acquisitions and a pipeline of $129.9 million under contract, NHI targets an 8% average initial yield. Analysts note its robust balance sheet (3.9x net debt-to-EBITDA) but remain divided on outlooks as the REIT pivots toward operational partnerships.