Financial Performance - Net income attributable to common stockholders per diluted common share for Q4 2024 was $0.95, up from $0.74 in Q4 2023, while annual net income per diluted common share remained at $3.13[5] - The company reported a net income of $43.2 million for Q4 2024, compared to $32.0 million in Q4 2023, representing a year-over-year increase of 35%[30] - Net income attributable to common stockholders for 2025 is projected to be between $141.6 million and $145.0 million[25] - The company's diluted earnings per share for the year ended December 31, 2024, was $3.13, consistent with the previous year[38] Funds from Operations - NAREIT FFO per diluted common share for Q4 2024 was $1.24, compared to $1.09 in Q4 2023, with annual NAREIT FFO per diluted common share increasing to $4.55 from $4.39[5] - NAREIT Funds From Operations (FFO) for 2025 is expected to range from $214.7 million to $218.1 million[25] - Normalized FFO (NFFO) for 2025 is also projected to be between $214.7 million and $218.1 million[25] - The company emphasizes the importance of FFO and Normalized FFO as supplemental measures of operating performance for better comparability across periods[34] Funds Available for Distribution - Normalized FAD for Q4 2024 was $52.1 million, an increase from $47.3 million in Q4 2023, with annual normalized FAD rising to $204.2 million from $187.8 million[5] - Funds Available for Distribution (FAD) is anticipated to be between $219.8 million and $223.6 million for 2025[25] - Normalized Funds Available for Distribution (FAD) is adjusted for non-cash items and is a key measure of liquidity for the REIT[36] Revenue and Income Growth - Total revenues for the year ended December 31, 2024, were $335,181,000, up from $319,835,000 in 2023, reflecting a growth of 4.8%[38] - Rental income recognized from tenants increased by $5.1 million, or 8.3%, primarily due to new investments funded since December 2023[5] - Rental income for Q4 2024 was $65,784,000, an increase of 3.5% from $60,721,000 in Q4 2023[38] - Consolidated net operating income (NOI) for Q4 2024 was $72.2 million, up from $66.6 million in Q4 2023, reflecting a growth of 8%[31] Investment Activity - NHI closed on $237.5 million in new investments during 2024, marking the most active year since 2019, and has signed LOIs for investments totaling $152.3 million with an average yield of approximately 8.2%[7] - The company has $225 million in unidentified new investments with an initial average yield of 8.1%[28] - The company acquired a 109-unit assisted living and memory care community in Colorado for $21.2 million in January 2025, with an initial lease rate of 8.0%[10] Debt and Equity - As of December 31, 2024, NHI had $1.1 billion in net debt, with $331.2 million outstanding on its $700.0 million revolving credit facility[14] - NHI's net debt to adjusted EBITDA ratio is at the low end of the target range of 4.0x – 5.0x, maintaining compliance with all debt covenants[17] - The company's total debt as of December 31, 2024, was $1,146,041,000, slightly up from $1,135,051,000 in 2023[39] - National Health Investors' stockholders' equity increased to $1,366,475,000 as of December 31, 2024, from $1,253,952,000 in 2023, indicating a growth of 9%[39] Operational Metrics - Net operating income from the Senior Housing Operating Portfolio (SHOP) segment totaled $3.2 million, a 12.5% increase from the prior year, driven by higher occupancy[5] - Same-store occupancy for SLC properties improved to 85.7% in January 2025 from 84.1% in May 2024[23] - SHOP NOI growth is projected to be between 12% and 15% year-over-year[28] - Net operating income (NOI) is used to evaluate the operating performance of real estate, defined as total revenues less tenant reimbursements and property operating expenses[37]

Real Estate Investments - As of December 31, 2024, National Health Investors, Inc. had a gross investment of approximately $2.6 billion in real estate, comprising 188 facilities across 31 states[241]. - The Real Estate Investments segment includes 116 senior housing properties, 70 skilled nursing facilities (SNFs), and two hospitals (HOSPs), with an aggregate carrying value of mortgage and other notes receivable amounting to $289.2 million[241]. - The total portfolio consists of 203 properties, with a net operating income (NOI) of $281.3 million, representing 100% of the portfolio[249]. - The total investment in senior housing properties classified as need-driven was approximately $1.1 billion, accounting for 28.6% of total investment[248]. - The total investment in medical facilities was approximately $600.3 million, representing 30.7% of total investment[248]. - The company operates through two segments: Real Estate Investments and SHOP, with the former primarily funded through operating cash flow, debt offerings, and equity securities[240]. - The company disposed of four facilities for aggregate net proceeds of $15.2 million, with a net real estate investment of $8.9 million[278]. - The company acquired a portfolio of ten assisted living and memory care communities in North Carolina for a total purchase price of $121.0 million[270]. - The company recognized impairment charges of approximately $0.7 million for long-lived assets in 2024, reflecting adjustments to carrying values[302]. - The company recognized impairment charges of approximately $0.7 million, $1.6 million, and $51.6 million for the years ended December 31, 2024, 2023, and 2022, respectively[433]. Financial Performance - Total revenue for the year ended December 31, 2024, was $335.2 million, up $15.3 million, or 4.8%, from the previous year[306]. - Net income attributable to common stockholders was $137.9 million, reflecting an increase of $2.3 million, or 1.7%[306]. - Net cash provided by operating activities increased by $23.3 million, or 12.6%, totaling $207.8 million for the year ended December 31, 2024[310]. - Total revenues for the year ended December 31, 2024, were $305.4 million, with net income of $131.8 million[327]. - The company reported a weighted average NAREIT FFO per share of $4.55 for diluted shares in 2024, consistent with $4.39 in 2023[360]. - NAREIT FFO attributable to common stockholders increased to $200.645 million in 2024, up 5.9% from $190.369 million in 2023[360]. - Adjusted EBITDA for 2024 reached $262.550 million, representing a 5.2% increase from $249.603 million in 2023[362]. - Consolidated NOI for 2024 was $281.765 million, a 4.8% increase compared to $268.735 million in 2023[365]. - Rental income increased by $7.8 million, or 3.1%, primarily due to an increase in rent from cash basis tenants of approximately $4.2 million[307]. - Resident fees and services less senior housing operating expenses rose by $2.9 million, or 32%, driven by higher occupancy in the SHOP segment[307]. Debt and Financing - Outstanding net debt as of December 31, 2024, was $1.1 billion[313]. - The company had $368.8 million available to draw on its $700.0 million unsecured revolving Credit Facility[308]. - The company issued $400.0 million in 3.00% senior notes maturing on February 1, 2031, with net proceeds of approximately $392.3 million[320]. - The company has a stock repurchase plan allowing for the repurchase of up to $160.0 million in shares, which expired in February 2025, but no shares were repurchased in 2024[329]. - The company entered into forward equity sale agreements to sell up to 2.8 million shares at an initial price of $68.40 per share, with 1.8 million shares settled for net proceeds of $122.4 million[335][336]. - The company’s total debt rose to $1,070.3 million and total liabilities of $1,150.2 million as of December 31, 2024[327]. - The company had a total debt of $1.157 billion, with a weighted average interest rate of 4.55%[370]. - A 50 basis-point change in interest rates related to variable-rate debt could result in an annual net interest expense change of approximately $2.7 million, or $0.06 per diluted common share[368]. Cash Flow and Liquidity - The company experienced a net cash used in financing activities of $13,568,000 in 2024, a significant improvement from $169,719,000 in 2023[396]. - Total cash and cash equivalents at the end of 2024 were $26,502,000, an increase from $24,617,000 at the end of 2023[396]. - The company had approximately $10.8 million in cash and cash equivalents and $327.3 million available under the Credit Facility as of January 31, 2025[340]. - The company’s expected material cash requirements for the twelve months ended December 31, 2025, total $1,412.1 million, primarily for debt maturities and interest payments[342]. Investment and Development - The company completed new real estate investments totaling approximately $160.3 million, including a $22.2 million construction loan conversion[267]. - The company completed new mortgage notes receivable investments of $61.2 million during the year[267]. - The company approved an additional investment of up to $25.0 million in existing leased properties, with $19.6 million committed and $8.8 million expended as of December 31, 2024[346]. - Total development commitments reached $37.115 million, with $19.498 million funded and $17.617 million remaining[348]. - The company expects approximately $10.2 million in capital expenditures for its SHOP segment during 2025[350]. Credit Losses and Reserves - The company recognized credit loss charges of $4.6 million for the year ended December 31, 2024, with a credit loss reserve increase of $3.6 million during Q3 2024 related to a $14.5 million mezzanine loan due from SLM[265]. - Estimated credit losses reserve established by the company reached $20.2 million as of December 31, 2024, with a provision for expected credit losses of $4.64 million in 2024[301]. - The credit loss liability for unfunded loan commitments was $0.1 million as of December 31, 2024[345]. - The company estimates and records an allowance for credit losses upon origination of a loan, based on expected credit losses over the term of the loan[437]. Occupancy and Rent - The average effective annualized NOI for skilled nursing facilities was $9,917 per bed, while for assisted living facilities it was $17,627 per unit as of December 31, 2024[249]. - The average occupancy for Bickford properties reached 87.3% in Q4 2024, an increase from 86.2% in Q3 2024[291]. - Average portfolio occupancy for Senior Living properties improved to 84.8% in Q4 2024, compared to 83.0% in Q4 2023[291]. - Total cash rent received from cash basis operators increased to $49.981 million in 2024, up 9.5% from $45.796 million in 2023 and 41.5% from $35.331 million in 2022[286]. - Cash rent received from SLM decreased to $2.7 million in 2024, down 50% from $5.4 million in 2023, but up 27% from $3.7 million in 2022[289]. Dividends and Shareholder Returns - The company intends to comply with REIT dividend requirements, distributing at least 90% of annual taxable income, with dividends per share remaining at $3.60 for the last three years[331][334]. - Dividends paid to stockholders in 2024 totaled $156,510,000, slightly up from $156,238,000 in 2023[396]. - The company declared dividends of $3.60 per common share, totaling approximately $158.559 million[405].

Group 1 - iREIT+HOYA Capital focuses on income-producing asset classes that provide sustainable portfolio income, diversification, and inflation hedging [1] - The emphasis on growth stocks is highlighted as essential for market value, especially during the holiday season [2] - The article expresses a long position in NHI shares, indicating a beneficial investment stance [3] Group 2 - The content serves informational purposes and does not constitute financial advice, encouraging readers to conduct their own due diligence [4] - Past performance is noted as not guaranteeing future results, with no specific investment recommendations provided [5]

Financial Data and Key Metrics - Net income per diluted common share for Q3 2024 was $0.65, down from $0.68 in the same period last year [25] - NAREIT and normalized FFO per diluted common share decreased 4.6% to $1.03 compared to the prior year's third quarter [26] - FAD for the quarter increased 2.5% to $49.4 million from $48.2 million in the prior year's third quarter [26] - SHOP NOI increased 30.4% year-over-year and 2.5% sequentially to $3 million [22] - SHOP occupancy improved to 88.6% from 79% year-over-year, contributing to a 320 basis points margin expansion to 22% [23] Business Line Data and Key Metrics - Senior Living Management (SLM) ceased lease and interest payments, leading to a $1 million reduction in lease and interest payments [27] - Bickford's EBITDARM coverage improved to 1.72x, up from 1.45x in Q2 2024 [16] - Bickford's occupancy improved by 80 basis points sequentially to 86.2% [17] - The SNF portfolio reported EBITDARM coverage of 3.04x, up from 2.97x in the previous quarter [22] - The discretionary senior housing portfolio, including entrance fee properties, had EBITDARM coverage of 1.64x, up from 1.6x in the previous quarter [21] Market Data and Key Metrics - SHOP occupancy improved by 160 basis points sequentially, reaching 89.1% by the end of September [23] - Resident fees increased by 11.4% year-over-year, driven by occupancy improvements [23] - The company expects to reduce move-in incentives as occupancy approaches 90%, leading to margin improvements [24] Company Strategy and Industry Competition - The company closed $205 million in investments year-to-date at an average initial yield of 8.4%, including a $121 million acquisition of the Spring Arbor portfolio [7] - The company has a pipeline of $1.9 billion in investment opportunities, with $59.8 million in board-approved deals expected to close this year or early next year [7] - The company is pursuing large portfolios, including SHOP and skilled nursing deals, not included in the pipeline numbers [8] - The company's cost of capital has improved significantly over the last 12 months, supported by industry fundamentals and reduced portfolio optimization noise [8] - The company sees tailwinds from low inventory growth (1%) and new starts at the lowest level since 2010, along with demographic trends [9] Management Commentary on Operating Environment and Future Outlook - Management is optimistic about the future, citing strong financial positioning and multi-faceted growth opportunities [9] - The company expects to recapture a significant portion of lost NOI from SLM transitions by 2025 [20] - Management tightened SHOP NOI growth guidance to 28%-30%, up from 25%-30% [24] - The company is monitoring the long-term bond market in 2025, given its reliance on the revolving credit facility for liquidity [32] Other Important Information - The company completed a $189 million equity offering, with $65 million in future proceeds available [29] - The company amended its $700 million revolving credit facility, extending the maturity to October 2028 [31] - The company declared a $0.90 per share dividend for shareholders of record December 31, 2024 [34] - Chairman Andy Adams will retire effective December 31, 2024 [11] Q&A Session Summary Question: Thoughts on PACS and NHI's coverage post-transition - PACS is a smaller customer, with less than 3% of revenue, and half of that related to assisted living [38] - EBITDARM coverage for PACS properties is over 2x, based on prior operator performance [38] - The company is monitoring PACS closely but sees no immediate concerns [39] Question: Expected yields and mix in the investment pipeline - The pipeline includes debt, triple net lease, and SHOP deals, with expected yields of 8% or more [41] - SHOP yields may compress slightly as the market becomes more competitive [41] Question: Recovery expectations for SLM-related NOI - The company expects to recover normal rent levels by the second half of 2025 [47] - Two properties are cash-flowing and expected to return to full rent by early 2025 [49] - One property is expected to sell within 30-60 days, with interest accruing post-sale [50] Question: Impact of the election on healthcare and labor costs - Management is cautiously optimistic about the regulatory environment under the new administration [55] - Labor costs have stabilized, with no expected retrenchment in employment rates [60] Question: Board updates and state-level election impacts - The company is finalizing a new independent board member, to be presented in the next proxy season [63] - State-level subsidy programs for skilled nursing operators are being closely monitored [65] Question: Investment pace and overhead - The company expects to close $200-$400 million in investments annually, with potential for higher volumes if cost of capital remains attractive [69] - The company recently hired a Senior Vice President of Legal Affairs to support increased deal activity [70] Question: SHOP NOI growth and rate increases - The company expects to reduce incentives as occupancy stabilizes above 90%, leading to margin improvements [72] - Rate increases are expected to flow through to the bottom line by early to mid-2025 [72] Question: SHOP strategy and length of stay trends - The company's strategy of using pricing to drive occupancy has been successful, with nearly half of buildings reaching 90% occupancy [76] - Length of stay has stabilized but remains below pre-pandemic levels, influencing pricing decisions [79] Question: Medicare Advantage and SNF exposure - Management is cautiously optimistic about potential rate increases and a favorable regulatory environment under the new administration [81]

National Health Investors Q3 2024 Supplemental ONAL HEALTH INVEST TABLE OF CONTENTS | --- | --- | |-------------------------------------|-------| | | | | COMPANY | | | COMPANY INFORMATION & LEADERSHIP | 02 | | PORTFOLIO | | | PORTFOLIO OVERVIEW | 03 | | REAL ESTATE INVESTMENTS | 04 | | SENIOR HOUSING OPERATING PORTFOLIO | 05 | | OPERATING PARTNERS | 06 | | EBITDARM LEASE COVERAGE & OCCUPANCY | 07 | | PURCHASE OPTIONS & LEASE MATURITIES | 08 | | INVESTMENTS | | | INVESTMENT RATIONALE | 09 | | RECENT INVESTME ...

Core Insights - National Health Investors (NHI) reported revenue of $82.94 million for the quarter ended September 2024, reflecting a 3.5% increase year-over-year [1] - Earnings per share (EPS) for the quarter was $1.03, up from $0.68 in the same quarter last year [1] - The reported revenue exceeded the Zacks Consensus Estimate of $80.7 million by 2.78%, while the EPS fell short of the consensus estimate of $1.07 by 3.74% [1] Revenue Breakdown - Rental income was $63.32 million, surpassing the average estimate of $62.52 million, with a year-over-year increase of 1.7% [3] - Interest income and other revenues totaled $5.86 million, slightly above the estimated $5.81 million, marking a 6.8% increase from the previous year [3] - Resident fees and services generated $13.77 million, exceeding the estimate of $13.53 million, representing an 11.4% year-over-year growth [3] Stock Performance - Over the past month, shares of National Health Investors have declined by 6.1%, compared to a 0.5% decrease in the Zacks S&P 500 composite [4] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [4]

Core Viewpoint - National Health Investors (NHI) reported quarterly funds from operations (FFO) of $1.03 per share, missing the Zacks Consensus Estimate of $1.07 per share, representing a -3.74% surprise [1] - The company posted revenues of $82.94 million for the quarter ended September 2024, surpassing the Zacks Consensus Estimate by 2.78% [2] Financial Performance - NHI's FFO for the same quarter last year was $1.08 per share, indicating a year-over-year decline [1] - Over the last four quarters, NHI has surpassed consensus FFO estimates three times [2] - The company has also topped consensus revenue estimates three times over the last four quarters [2] Stock Performance - NHI shares have increased approximately 35.9% since the beginning of the year, outperforming the S&P 500's gain of 19.8% [3] - The current consensus FFO estimate for the coming quarter is $1.13 on revenues of $85.08 million, and for the current fiscal year, it is $4.48 on revenues of $329.27 million [7] Industry Outlook - The Zacks Industry Rank for REIT and Equity Trust - Other is currently in the top 27% of over 250 Zacks industries, indicating a favorable industry outlook [8] - Empirical research shows a strong correlation between near-term stock movements and trends in estimate revisions, which can impact NHI's stock performance [5]

Financial Performance - Net income attributable to common stockholders per diluted common share for Q3 2024 was $0.65, down from $0.68 in Q3 2023[1]. - NAREIT FFO per diluted common share for Q3 2024 was $1.03, compared to $1.08 in Q3 2023[2]. - Normalized FAD for Q3 2024 was $49.4 million, an increase from $48.2 million in Q3 2023[4]. - Net income attributable to common stockholders for the third quarter of 2024 was $28.5 million, compared to $29.3 million in the same period last year[31]. - Net income for Q3 2024 was $28,242,000, a decrease of 2.7% from $29,033,000 in Q3 2023[32]. - The company recorded a net income of $94.7 million for the nine months ended September 30, 2024, compared to $103.6 million for the same period in 2023[31]. Revenue and Income Sources - Rental income recognized from tenants increased by $1.1 million, or 1.7%, in Q3 2024[7]. - Rental income rose to $63,318,000, compared to $62,255,000 in Q3 2023, reflecting a growth of 1.7%[39]. - Resident fees and services increased to $13,771,000, up 11.4% from $12,367,000 in Q3 2023[39]. Operating Metrics - Net operating income (NOI) from the Senior Housing Operating Portfolio (SHOP) segment totaled $3.0 million, a 30.4% increase year-over-year[8]. - Consolidated net operating income (NOI) increased to $69,414,000, up 3.4% from $67,153,000 in the same quarter last year[32]. - The average occupancy for the SHOP portfolio improved to 88.6%, with a year-over-year increase of 960 basis points[9]. - NHI's same-store occupancy for SLC properties was 84.0% in September 2024, slightly down from 84.3% in August 2024[24]. - The company reported a decrease in same-store occupancy for SHOP properties to 89.1% in September 2024 from 88.5% in August 2024[24]. Guidance and Projections - NHI updated its 2024 annual guidance for NAREIT FFO per diluted common share to a range of $4.39 - $4.41, down from $4.50 - $4.54[6]. - The company expects NAREIT FFO attributable to common stockholders to be in the range of $193.8 million to $194.4 million for 2024[25]. - NHI's normalized FFO per diluted common share is projected to be between $4.43 and $4.44 for 2024[25]. - SHOP NOI growth is anticipated to be between 28% and 30% year over year[25]. Investment and Debt - NHI closed on $205.6 million in new investments in 2024 with an average initial yield of 8.4%[9]. - As of September 30, 2024, NHI had $1.1 billion in net debt, including $319.0 million outstanding on its revolving credit facility[18]. - NHI has approximately $350.0 million in a pipeline of investment opportunities, excluding portfolio deals[17]. - Debt increased slightly to $1,136,302 thousand from $1,135,051 thousand, an increase of approximately 0.1%[40]. Shareholder Metrics - The weighted average diluted common shares outstanding increased to 43,987,072 in September 2024 from 43,388,841 in August 2024[28]. - The weighted average diluted shares outstanding increased to 43,987,072 from 43,388,841 in the previous year[39]. - Earnings per common share (diluted) was $0.65, down from $0.68 in Q3 2023[39]. Expenses and Financial Position - Total expenses for the quarter were $54,804,000, an increase from $52,012,000 in Q3 2023, representing a rise of 5.4%[39]. - Interest expenses decreased slightly to $14,939,000 from $15,086,000 in Q3 2023[39]. - Real estate properties, net decreased to $2,096,824 thousand from $2,107,082 thousand, a decline of approximately 0.4%[40]. - Cash and cash equivalents decreased to $15,550 thousand from $22,347 thousand, a decline of approximately 30.5%[40]. - Stockholders' equity decreased to $1,228,950 thousand from $1,253,952 thousand, a decline of approximately 2.0%[40]. Risks and Challenges - The company continues to face risks related to tenant performance and potential bankruptcy proceedings[40]. - Future performance may be impacted by changes in governmental regulations and reimbursement rates affecting tenants[40]. Upcoming Events - NHI will host a conference call on November 6, 2024, to discuss third quarter results[27].

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2024 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _____________ to _____________ Commission File Number 001-10822 National Health Investors, Inc. (Exact name of registrant as specified in its charter) Maryla ...

National Health Investors (NHI) has been on a downward spiral lately with significant selling pressure. After declining 10.2% over the past four weeks, the stock looks well positioned for a trend reversal as it is now in oversold territory and there is strong agreement among Wall Street analysts that the company will report better earnings than they predicted earlier. How to Determine if a Stock is Oversold We use Relative Strength Index (RSI), one of the most commonly used technical indicators, for spottin ...