National Health Investors(US:NHI)2026-02-27 16:02Financial Data and Key Metrics Changes - The company reported a Normalized FFO per share growth of 8.9% year-over-year for Q4 2025, with a full-year growth of 10.6% [4][22] - Total FAD increased by 13.7% year-over-year, reaching $232.1 million for the full year [23] - Net income per share for Q4 was $0.80, a decrease of 15.8% from the prior year, primarily due to prior year gains from derivative accounting [21] Business Line Data and Key Metrics Changes - The Seniors Housing Operating Portfolio (SHOP) platform saw a total NOI increase of 125% year-over-year, with same-store growth of 7.6% [4][5] - Cash rental income from the triple net portfolio increased by approximately 7% year-over-year [4] - SHOP NOI for Q4 increased by 124.9% to $7.3 million compared to the prior year [24] Market Data and Key Metrics Changes - There were fewer than 25,000 units under construction in Q4, representing just 2.2% of total inventory, the lowest level since 2012 [7] - Demand for senior housing is accelerating as the first baby boomers turn 80 this year, indicating favorable industry tailwinds [7] Company Strategy and Development Direction - The company plans to allocate 70% of its investment activity in 2026 to SHOP, targeting need-driven senior living communities in secondary suburban markets [9] - The company is focusing on partnerships with operators that demonstrate high resident satisfaction and is expanding its SHOP capabilities [8][9] - A new Board member, Lilly Donohue, was welcomed, bringing extensive experience in senior living operations [12][13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term growth potential of FFO per share and the attractiveness of senior housing industry fundamentals [12] - The company anticipates a 1.2% growth in Normalized FFO per share for 2026, with an adjusted growth rate estimated at 5%-6% [11] - Management highlighted the importance of maintaining a strong balance sheet and a lower leverage policy to support growth [28] Other Important Information - The company announced a dividend of $0.92 per share for shareholders of record on March 31, 2026 [28] - The company has a robust liquidity position with approximately $875 million available, including cash and revolver capacity [27] Q&A Session Summary Question: Same-store SHOP guidance for 2026 - Management indicated that the guidance reflects current expectations and future plans for corrective measures, with potential for upside [32][34] Question: NHC lease negotiations - Management described the current posture as being in a quiet period regarding NHC lease negotiations [40] Question: SHOP growth and performance - Management noted that the new SHOP portfolio is expected to perform well, with double-digit growth anticipated [53] Question: Pricing power in secondary markets - Management emphasized that pricing power varies by market, but they expect to achieve 7%-8% growth through effective rate increases [57] Question: Dispositions and capital recycling - Management explained that the higher volume of dispositions is driven by reallocating resources to more strategic relationships [61]