National Health Investors(NHI)2024-11-05 21:06Financial 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].