National Health Investors (NHI) Q2 2024 earnings summary

Executive summary

• Q2 2024 results exceeded forecasts, marking the fourth consecutive quarter of outperformance, with stable cash collections, deferral repayments, and improving operator fundamentals.

• Portfolio includes 194 properties as of June 30, 2024, focused on senior housing and skilled nursing, with 32 operating partners and a diversified investment plan.

• Net income for Q2 2024 was $35.2 million ($0.81 per share), down 11.4% year-over-year; six-month net income was $66.1 million ($1.52 per share), down 10.9%.

• NAREIT and normalized FFO per diluted share rose to $1.18 for Q2 2024, up from $1.05 and $1.06 year-over-year.

• Management raised full-year 2024 guidance based on strong quarterly results and improved visibility.

Financial highlights

• Q2 2024 rental income was $65.8 million (+7.9% year-over-year); total revenue was $84.97 million, up from $77.88 million.

• Normalized FFO per share and FAD increased 11.4% and 16.1% year-over-year, respectively; normalized FAD for Q2 was $51.8 million.

• Net income per diluted share for Q2 2024 was $0.81, down from $0.92 in Q2 2023.

• Adjusted EBITDA for Q2 2024 was $66.9 million, up from $61.2 million year-over-year.

• Dividend declared at $0.90 per share, with a payout ratio supported by current cash flows.

Outlook and guidance

• 2024 guidance raised: midpoint normalized FFO per share growth of 4.8% and FAD growth of 7% over 2023.

• NAREIT FFO per diluted share guidance increased to $4.50–$4.54; normalized FFO to $4.52–$4.56; normalized FAD to $200.1–$201.8 million.

• Guidance reflects improved Q2 revenues, recent transactions, and maintains SHOP NOI growth range of 25%-30% year-over-year.

• Guidance does not include impacts from the current investment pipeline or signed LOIs.

• Management expects cash flows from operations to be adequate to fund dividends at the current rate for full year 2024.