Core Viewpoint - National Health Investors, Inc. (NHI) is set to release its third-quarter results for the period ending September 30, 2025, on November 6, 2025, after market close [1] Company Announcement - NHI will host a conference call on November 7, 2025, at 10:00 a.m. to discuss the earnings release [1]

Core Insights - National Health Investors, Inc. has invested $74.3 million for the acquisition of four properties with a total of 344 units located in Oklahoma and Oregon [1] - The acquired properties will be integrated into NHI's Senior Housing Operating Portfolio (SHOP) segment [1] - Compass Senior Living will continue to manage the healthcare operations of the newly acquired properties, maintaining an existing relationship with NHI [1]

Group 1 - The article does not provide any specific content or data related to a company or industry [1]

Group 1 - National Health Investors, Inc. announced the pricing of an offering of $350 million aggregate principal amount of 5.350% Senior Notes due 2033 [1] - The Notes will be issued at 98.903% of par value with a coupon of 5.350% [1]

Core Insights - Senior housing is one of the fastest growing real estate sectors, with Welltower (WELL) being the primary beneficiary of same-store NOI growth, but it is now considered overvalued compared to its peers [1][24] - National Health Investors (NHI) shows similar growth potential to WELL but trades at a significantly lower multiple, making it a more attractive investment option [2][49] - The overall fundamentals of senior housing are strong, driven by demographic trends, high absorption rates, reduced construction, occupancy growth potential, and increased affordability due to rising nest eggs [10][11] Industry Overview - REITs have resumed growth, with organic same-store NOI growth averaging 2.9% annually, and healthcare is identified as the top growth sector [3][6] - Senior housing specifically has experienced low double-digit growth, contributing significantly to the healthcare sector's 6.6% same-store NOI growth [9][10] - The aging population, referred to as the "silver tsunami," is a key driver for increased demand in senior housing [10][11] Market Dynamics - The period from 2015 to 2019 saw ambitious development leading to a supply glut, which was exacerbated by the COVID-19 pandemic, resulting in negative absorption [13][15] - Senior housing began to recover in 2022, with absorption rates improving and occupancy recovering from below 80% to nearly 90% [17][18] - Current occupancy levels indicate potential for further growth, as full occupancy is around 96% [18] Company Analysis - Welltower's stock has seen a five-year price return of +181%, but its valuation is now considered excessive, trading at 38.4X AFFO compared to peers like NHI, which trades at 16X AFFO [22][34][49] - Welltower's growth appears to be a recovery from pandemic losses rather than sustainable growth, leading to a disconnect between its market price and underlying earnings [32][39] - NHI's portfolio, with a significant portion in triple net leases, has shown strong fundamentals and similar growth potential to WELL, but at a much better valuation [45][48] Financial Metrics - Welltower's current pricing reflects an implied cap rate of 3%, significantly lower than the average cap rate of over 8% for other healthcare REITs [34][36] - NHI's same-store NOI grew by 29% year-over-year, driven by occupancy gains and margin expansion, indicating strong operational performance [46][48] - The consensus estimates for NHI's AFFO suggest solid growth potential, making it an attractive investment compared to WELL [50][51]

Core Viewpoint - Senior housing is one of the fastest-growing real estate sectors, with Welltower (WELL) being the primary beneficiary of this growth. However, it is now considered overvalued compared to its peers, particularly National Health Investors (NHI), which offers similar growth potential at a significantly lower valuation [1][2][24]. Industry Overview - The senior housing sector is experiencing strong fundamentals driven by demographic trends, high absorption rates, reduced construction, occupancy upside, and increased affordability due to rising nest eggs among seniors [10][11]. - The average annual organic same-store NOI growth for REITs is 2.9%, with healthcare being the top growth sector, largely due to senior housing, which is growing in the low double digits [3][6][9]. Market Dynamics - The senior housing market faced a supply glut in 2018 and 2019, leading to negative absorption during the COVID pandemic. However, recovery began in 2022, with absorption rates rebounding to about 5% annually, while new supply has remained low at around 1% [13][17][18]. - Occupancy rates have improved from below 80% to nearly 90%, with full occupancy around 96%, indicating further growth potential [18]. Company Analysis - Welltower's stock has seen a five-year price return of +181%, but its valuation is now considered excessive, trading at 38.4X AFFO, compared to peers like NHI, which trades at 16X AFFO [22][32][34]. - NHI's growth potential is similar to that of Welltower, but it has retained a more stable structure with less volatility during the pandemic, resulting in a stronger long-term FFO/share growth rate [40][48]. Financial Metrics - Welltower's current pricing reflects an implied cap rate of 3%, significantly lower than the average cap rate of over 8% for other healthcare REITs, raising concerns about its valuation sustainability [34][36]. - NHI's same-store NOI grew by 29% year-over-year, driven by occupancy gains and higher revenue per occupied room (REVPOR), showcasing its strong operational performance [46][51]. Investment Recommendation - Given the current market conditions and valuations, it is suggested that investors consider reallocating from Welltower to NHI for better value and growth potential in the senior housing sector [52].

Core Insights - The article emphasizes the dual tailwinds benefiting National HealthCare Corporation (NHC), which are a rapidly growing elderly population and a cooling labor market, expected to enhance NHC's long-term fundamentals [1] Group 1: Company Overview - NHC is positioned to capitalize on demographic trends, particularly the increasing elderly population, which is likely to drive demand for healthcare services [1] - The cooling labor market is anticipated to strengthen NHC's operational capabilities and cost management [1] Group 2: Investment Focus - The analysis focuses on under-the-radar companies with limited analyst coverage, particularly in defensive sectors such as healthcare, utilities, and consumer staples [1]

Group 1 - iREIT+HOYA Capital focuses on income-producing asset classes that provide sustainable portfolio income, diversification, and inflation hedging [1] - The service offers a free two-week trial for potential investors to explore exclusive income-focused portfolios [1] Group 2 - Growth stocks are diverse and not limited to the tech sector, with a focus on defensive stocks for medium- to long-term investment horizons [2]

Financial Data and Key Metrics Changes - The company reported a net income per share of $0.79, down 2.5% from the prior year [24] - NAREIT FFO per share increased by 0.8% to $1.19, while normalized FFO per share rose by 3.4% to $1.22 compared to the prior year [24] - FAD for the quarter increased by 8.1% to $56 million [25] - The company raised the midpoint of its normalized FFO guidance per share by $0.09 to $4.80, representing year-over-year growth of 8.1% [7][31] Business Line Data and Key Metrics Changes - SHOP NOI increased by over 29% year-over-year to $3.8 million [18][25] - The annualized SHOP NOI increased by approximately $8.8 million or 57% following the transition of seven properties from leases to SHOP [8] - SHOP revenues for the six months ended June 30 increased by 5.7% to $28.2 million [25] Market Data and Key Metrics Changes - The company has approximately $130 million in unsigned LOIs expected to close in the next few months, including a SHOP deal valued at approximately $74 million [11] - The liquidity at the end of the quarter was approximately $760 million, which includes escrowed forward equity and cash [29] Company Strategy and Development Direction - The company is focusing on expanding its SHOP portfolio, which is believed to provide the highest growth potential with the best risk-adjusted returns [9] - The company aims to maintain a leverage-neutral approach while also having the flexibility to utilize equity for funding investments [41][43] - The company is committed to improving governance and has made significant board changes in response to shareholder feedback [14] Management Comments on Operating Environment and Future Outlook - Management expressed optimism about the growth opportunities and confidence in capitalizing on these opportunities [13] - The company expects double-digit NOI growth for the SHOP segment in 2026 [17] - Management noted some recent softness in occupancy but remains optimistic about reversing this trend [19][52] Other Important Information - The company announced a dividend increase of 2.2%, marking the first increase since 2021 [30] - The company completed the acquisition of a senior housing portfolio for $63.5 million during the quarter [27] Q&A Session Summary Question: What is driving the delay in closing some investments? - Management characterized it as a timing issue, with a robust pipeline still in place [36][37] Question: Are there larger portfolio transactions being evaluated? - Management confirmed that larger deals are being evaluated but emphasized the importance of having the right operating partner [39][40] Question: How is the relationship with Discovery being managed? - Management indicated that Discovery remains a partner and that there is ongoing NOI growth within that portfolio [48] Question: What caused the recent softness in occupancy? - Management attributed it to changes in local leadership and higher than normal move-outs, expecting a return to normal trends [52][53] Question: Can you provide an update on NHC discussions? - Management confirmed ongoing discussions and noted that NHC's coverage has improved to over four times [66][67]

Financial Data and Key Metrics Changes - The company reported a net income per share of $0.79, down 2.5% from the prior year [23] - NAREIT FFO per share increased by 0.8% to $1.19, while normalized FFO per share rose 3.4% to $1.22 compared to the prior year [23] - FAD for the quarter increased by 8.1% to $56 million [24] - The company raised its normalized FFO guidance per share by $0.09 to $4.80, representing year-over-year growth of 8.1% [7][31] Business Line Data and Key Metrics Changes - SHOP NOI increased by over 29% year-over-year to $3.8 million [8][17] - The annualized SHOP NOI increased by approximately $8.8 million or 57% following the transition of seven properties from leases to SHOP [7] - SHOP revenues for the six months ended June 30 increased by 5.7% to $28.2 million [25] Market Data and Key Metrics Changes - The company has approximately $130 million in unsigned LOIs expected to close in the next few months, including a SHOP deal valued at approximately $74 million [10] - The incremental pipeline is nearly $350 million, focused entirely on senior housing, with a significant number of SHOP deals [10] Company Strategy and Development Direction - The company aims to expand its SHOP portfolio, believing it offers the highest growth potential with the best risk-adjusted returns [8] - The focus is on driving higher occupancy and improving RevPOR growth, which increased by 3.7% compared to 2024 [9][18] - The company is committed to improving governance and board refreshment, responding to shareholder feedback [12][13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in capitalizing on multiple growth opportunities, with a strong balance sheet supporting funding [12] - The company expects double-digit NOI growth for the SHOP segment in 2026 and has adjusted its full-year NOI growth rate to a range of 13% to 16% [18][31] - Management noted some recent softness in occupancy but remains optimistic about reversing this trend [18][52] Other Important Information - The company completed the acquisition of a senior housing portfolio for $63.5 million and closed on a $28 million senior housing construction loan [27] - The company has a liquidity of approximately $760 million, including cash and revolver capacity [29] Q&A Session Summary Question: What is driving the delay in closing some investments? - Management characterized it as a timing issue, with a robust pipeline still in place [36][37] Question: Are there larger portfolio transactions being evaluated? - Management confirmed that larger deals are still being evaluated, but they are focusing on tangible opportunities under $100 million [39][40] Question: How is the relationship with Discovery being managed? - Management stated that Discovery remains a partner, with ongoing NOI growth expected from the portfolio [47] Question: What caused the recent softness in occupancy? - Management attributed it to changes in local leadership and higher than normal move-outs, expecting a return to normal trends [52][53] Question: What is the status of discussions with NHC? - Discussions are ongoing, with improved coverage reported for NHC [66][67]