National Health Investors(US:NHI)2025-05-05 20:09Financial Performance - Net income attributable to common stockholders per diluted common share for Q1 2025 was $0.74, up from $0.71 in Q1 2024, reflecting a 4.2% increase[5] - NAREIT FFO per diluted common share for Q1 2025 was $1.14, compared to $1.10 in Q1 2024, representing a 3.6% increase[5] - Normalized FFO per diluted common share for Q1 2025 was $1.15, an increase from $1.12 in Q1 2024, indicating a 2.7% growth[5] - Net income attributable to common stockholders for Q1 2025 was $34.1 million, an increase from $30.9 million in Q1 2024, representing a year-over-year growth of 7.0%[29] - NAREIT Funds From Operations (FFO) attributable to common stockholders for Q1 2025 was $52.4 million, compared to $47.7 million in Q1 2024, reflecting a 9.0% increase[21] - Normalized FFO attributable to common stockholders for Q1 2025 was $52.6 million, up from $48.5 million in Q1 2024, indicating an 8.6% year-over-year growth[21] - Consolidated net operating income (NOI) for Q1 2025 was $75.6 million, compared to $68.5 million in Q1 2024, marking a 10.0% increase[22] - Rental income for Q1 2025 was $68.9 million, an increase from $62.2 million in Q1 2024, representing a growth of 11.0%[29] - The company provided a 2025 guidance range for NAREIT FFO attributable to common stockholders between $218.3 million and $220.7 million[17] - The company anticipates SHOP NOI growth in a range of 12% to 15% year-over-year[18] Investments and Growth - Rental income recognized from tenants increased by $6.7 million, or 10.7%, primarily due to new investments funded since March 2024[5] - The company has announced investments totaling $174.9 million year-to-date at an average initial yield of 8.2%[6] - NHI is evaluating a pipeline of approximately $264.0 million in investments, including SHOP, sale-leaseback, and loans with purchase options[9] - The company reported $155.0 million in unidentified new investments at an initial average yield of 8.2%[18] - The company is focused on growth opportunities and the successful integration of future acquisitions to enhance its portfolio[31] Debt and Financial Position - As of March 31, 2025, the company had $1.3 billion in net debt, with $447.2 million outstanding on its revolving credit facility[10] - The 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[11] - Total debt increased to $1,262,985 thousand from $1,146,041 thousand, reflecting a rise of 10.2%[30] - Stockholders' equity grew to $1,426,474 thousand, up from $1,366,475 thousand, marking an increase of 4.4%[30] - Management acknowledges the potential need for refinancing existing debt, which may not be available on favorable terms[32] Operational Metrics - Average portfolio occupancy for SHOP was 88.9% in March 2025, slightly down from 89.0% in February 2025[15] - Weighted average diluted common shares outstanding increased to 45.9 million in Q1 2025 from 43.4 million in Q1 2024[21] - Real estate properties increased to $2,270,257 thousand as of March 31, 2025, up from $2,211,253 thousand at December 31, 2024, representing a growth of 2.66%[30] - Cash and cash equivalents rose significantly to $135,004 thousand from $24,289 thousand, indicating a substantial increase of 457.5%[30] Risks and Future Outlook - The company emphasizes the importance of maintaining qualification as a real estate investment trust (REIT) for future operations and financial stability[31] - Forward-looking statements highlight potential risks including tenant bankruptcy, regulatory changes, and economic impacts from international trade disputes[32] - There is a reliance on fixed-rate investments while facing risks from variable-rate debt, which could impact financial performance[32] - The company plans to continue paying dividends, contingent on future cash flows and operational success[32]