National Health Investors(NHI)2025-02-25 21:11Real 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].