National Health Investors(NHI) - 2024 Q4 - Annual Results

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]