National Health Investors(US:NHI)2023-05-09 20:09Investment Portfolio - As of March 31, 2023, National Health Investors, Inc. had investments in 178 facilities across 31 states, with an original cost of approximately $2.4 billion[147]. - The Real Estate Investments segment includes 105 senior housing properties and 72 skilled nursing facilities, generating a total net operating income (NOI) of $62,679,000, which accounts for 89.7% of total real estate properties[154]. - The Medical Facilities segment includes 66 properties, generating a total NOI of $22,269,000, which is 31.9% of total NOI[154]. - The SHOP segment comprises 15 independent living facilities with a total of 1,734 units, contributing an NOI of $1,901,000[152]. - The Senior Housing - Need-Driven category includes 80 properties with a total NOI of $20,382,000, representing 29.2% of total NOI[154]. - The Senior Housing - Discretionary category consists of 18 properties with a total NOI of $17,441,000, accounting for 24.9% of total NOI[154]. Financial Performance - Total revenues for Q1 2023 reached $82.388 million, reflecting a 15.5% increase from $71.327 million in Q1 2022[186]. - Net income attributable to common stockholders surged to $34.484 million in Q1 2023, compared to $8.399 million in Q1 2022[186]. - Total portfolio NOI for the three months ended March 31, 2023, was $69,889,000, a slight increase from $68,236,000 in the same period of 2022, representing a year-over-year growth of 2.4%[156]. - Consolidated net operating income (NOI) reached $69.970 million in Q1 2023, compared to $68.289 million in Q1 2022[237]. - Funds From Operations (FFO) per diluted common share for Q1 2023 increased by $0.11 or 10.5% compared to Q1 2022, primarily due to reduced pandemic-related rent concessions[225]. - Normalized FFO per diluted common share for Q1 2023 increased by $0.01 or 0.9% compared to Q1 2022[226]. - Normalized Funds Available for Distribution (FAD) for Q1 2023 decreased by $4.9 million or 9.36% compared to Q1 2022, mainly due to increased interest and payroll expenses[228]. Debt and Liquidity - Outstanding debt as of March 31, 2023, was $1.2 billion[193]. - The company has a total debt of $1,176.0 million as of March 31, 2023, with a significant portion being long-term obligations[204]. - The company has a $700 million unsecured revolving credit facility, which matures in March 2026, with interest rates based on SOFR plus a margin[194]. - The company reported a total NOI of $67.988 million from Real Estate Investments segment in Q1 2023, slightly down from $68.236 million in Q1 2022[237]. - The company intends to distribute at least 90% of its annual taxable income for the year ending December 31, 2023, and has historically distributed at least 100%[212]. - Total contractual payment obligations as of March 31, 2023, amounted to $1,336.3 million, with $316.4 million due in less than one year[218]. Operational Risks - The company operates primarily through fixed-rate investments in real estate assets, with a portion of its debt bearing interest at variable rates, exposing it to interest rate risks[143]. - National Health Investors, Inc. relies on external sources of capital to fund future investments, which may be impacted by market conditions and credit ratings[143]. - The company is subject to risks associated with governmental regulations and reimbursement rates, particularly from Medicare and Medicaid, which could affect its tenants' financial performance[140]. Market and Economic Factors - The average effective annualized NOI per bed for skilled nursing facilities (SNFs) was $9,901, while for assisted living facilities (ALFs) it was $16,608 per unit as of March 31, 2023[157]. - The company granted approximately $30.1 million in pandemic-related rent concessions to tenants, net of repayments, as of March 31, 2023[159]. - The company recorded impairment charges of approximately $0.3 million on three properties classified as held for sale during the three months ended March 31, 2023[165]. - A reserve for estimated credit losses was established at $15.0 million as of March 31, 2023, reflecting ongoing financial monitoring[183]. Shareholder Returns - A quarterly dividend of $0.90 per share was declared on May 5, 2023, payable on August 4, 2023[214]. - The Board of Directors authorized a revised stock repurchase program allowing the company to purchase up to $160.0 million in shares over one year[209]. - No common stock was repurchased during the three months ended March 31, 2023; cumulative repurchases in 2022 totaled 2,468,354 shares for approximately $151.6 million[210].