National Health Investors(NHI) - 2024 Q4 - Earnings Call Transcript

Financial Data and Key Metrics Changes - The company reported a cash rent increase of nearly 9% year over year, contributing to a 12.5% growth in NOI [8][10] - NAREIT FFO per diluted common share increased by 3.6% to $4.55 for the year and$1.24 for the fourth quarter [32] - Normalized FFO per diluted common share increased by 2.5% and 2.8% to $4.44 and$1.12, respectively [32] - FAD for the year and quarter increased by 8.7% and 10% to $204.2 million and$52.1 million, respectively [33] Business Line Data and Key Metrics Changes - Bickford's cash rental income grew approximately 17% [10] - Shop NOI increased by approximately 32%, driven by improved occupancy and margin improvement [10][29] - The discretionary senior housing portfolio had coverage of 1.7 times compared to 1.6 times in the previous period [27] Market Data and Key Metrics Changes - The company’s balance sheet leverage decreased to 4.1 times from 4.4 times in the previous quarter [9] - The shop portfolio occupancy improved by 620 basis points to 89.4% [29] - The company expects to see continued growth in the senior housing industry, which has strong tailwinds [13] Company Strategy and Development Direction - The company plans to transition select triple net senior housing assets to shop structures to enhance shareholder value [13] - The strategy includes increasing RevPAR to drive margin expansion, targeting 12% to 15% NOI growth for 2025 [14][46] - The company aims to strategically invest $225 million in new investments at an average yield of 8.1$0.90 per share for shareholders of record on March 31, 2025 [43] - The company has approximately $327 million available on its revolver and$45 million in ATM capacity [41] Q&A Session Summary Question: Rent and interest income expectations for 2025 - Management expects rent and interest income to be closer to 55% for 2025 compared to 2024 [52] Question: Comments on Bickford's occupancy - Management noted that Bickford experienced some seasonal effects and price point adjustments impacting occupancy [78] Question: Clarification on acquisition guidance - Management explained that the guidance of $225 million reflects expected closings from LOIs, with confidence in achieving this number [82][84] Question: Future of the Discovery portfolio - Management indicated that they are evaluating options for the Discovery portfolio, including potential re-tenanting [96] Question: Dividend rationale - Management stated that maintaining the current dividend aligns with long-term growth objectives and market conditions [124]