National Health Investors(US:NHI)2025-11-06 21:12Real Estate Investments - As of September 30, 2025, National Health Investors, Inc. had a gross carrying value of $2.5 billion in real estate properties leased to 30 tenants, including 118 senior housing properties and 68 skilled nursing facilities[181]. - The Real Estate Investments segment includes 188 properties across 32 states, with an additional $224.6 million in mortgage and other notes receivable[181]. - Revenues in the Real Estate Investments segment primarily come from triple-net leases and interest income from financing arrangements for construction and acquisition projects[180]. - As of September 30, 2025, the total net operating income (NOI) for the real estate investments portfolio was $192,903,000, representing 86.2% of total NOI[188]. - The total number of properties in the real estate investments portfolio was 174, with a carrying amount of $2,549,823,000[188]. - The occupancy rate for the Real Estate Investments Portfolio in Q2 2025 was 85.2%, an increase from 83.9% in Q2 2024[224]. - NOI from Real Estate Investments segment for Q3 2025 was $66,022, nearly flat compared to $66,275 in Q3 2024[285]. SHOP Segment - The SHOP segment consists of 17 independent living facilities, four senior living campuses, and one assisted living facility, totaling 2,670 residential units with a gross carrying value of $551.8 million[186]. - The SHOP segment had a total of 22 properties, contributing $11,831,000 to the total NOI, which is 5.3% of the overall NOI[188]. - The average effective annualized NOI for the SHOP segment was $8,846 per unit as of September 30, 2025[190]. - The company experienced a transition of six senior housing properties into the SHOP segment, with a net carrying value of $125.3 million as of September 30, 2025[198]. - NOI from SHOP segment for Q3 2025 increased to $4,924, up 62.9% from $3,027 in Q3 2024[285]. Financial Performance - The company’s total NOI for the nine months ended September 30, 2025, was $223,777,000, an increase from $209,294,000 in the same period of 2024[189]. - Total revenues for Q3 2025 were $89.847 million, an increase of 8.3% from $82.944 million in Q3 2024[231]. - Net income attributable to common stockholders rose by 15.1% to $32.812 million in Q3 2025 compared to $28.511 million in Q3 2024[231]. - Total cash rental income increased by 18.5% to $71.237 million in Q3 2025 from $60.094 million in Q3 2024[231]. - Net income attributable to common stockholders increased by $9.2 million, or 9.7%, to $103.9 million for the nine months ended September 30, 2025[234]. - Funds From Operations (FFO) per diluted share increased by $0.11, or 3.2%, for the nine months ended September 30, 2025, compared to the same period in 2024[276]. - Normalized FFO per diluted share increased by $0.36, or 10.7%, for the nine months ended September 30, 2025, over the same period in 2024[277]. - Adjusted EBITDA for Q3 2025 was $75,378,000, compared to $64,364,000 in Q3 2024, indicating a 17.56% increase[283]. Debt and Liquidity - The company relies on external capital sources for funding future investments, which may impact growth if capital is not readily available[178]. - The company is exposed to interest rate risk as a portion of its debt bears interest at variable rates, while revenues are derived mainly from fixed-rate investments[178]. - Outstanding indebtedness as of September 30, 2025, was $1.1 billion[243]. - The company has a $700.0 million unsecured revolving credit facility maturing in October 2028, with an effective interest rate decrease of 0.10% following an amendment on October 31, 2025[244]. - The company repaid $75.0 million on its unsecured bank term loan in September 2025, extending its maturity to June 2026[246]. - The company has identified potential areas of concern regarding operators' liquidity to meet obligations, emphasizing the importance of balance sheet analysis[223]. - The company expects to meet short-term liquidity needs primarily through cash generated from operations and borrowings under its Credit Facility[270]. Regulatory and Operational Risks - The company’s investments are concentrated in healthcare properties, which may increase exposure to regulatory and operational risks[173]. - The company faces risks related to governmental regulations, particularly concerning Medicare and Medicaid reimbursement rates, which could impact tenant operations[173]. - The company’s financial condition may be adversely affected by the operating success of its tenants, managers, and borrowers, particularly in the context of potential bankruptcies[173]. Shareholder Returns - The company declared a quarterly dividend of $0.92 per common share on November 5, 2025, payable on January 30, 2026[261]. - The company maintains an ATM equity program allowing for the sale of up to $500.0 million of common stock directly into the market[264]. - In June 2025, the company entered into ATM forward sales agreements, selling 1.3 million shares at a weighted average price of $71.41, totaling $91.8 million[267]. - The company intends to comply with REIT dividend requirements, distributing at least 90% of annual taxable income for the year ended December 31, 2025[260].