National Health Investors (NHI) Q4 2024 earnings summary

Executive summary

• Fourth quarter 2024 results exceeded expectations, with strong cash rent and NOI growth, improved SHOP occupancy, and significant investment activity.

• Full-year performance benefited from portfolio optimization, deferral repayments, and robust growth in Bickford's cash rental income.

• Annual NAREIT FFO, normalized FFO, and FAD all grew for the first time since 2020.

• The company is actively pursuing further internal and external growth, including transitions of triple-net assets to SHOP structures and maintaining a robust investment pipeline.

• Net debt to adjusted EBITDA at 4.1x, at the low end of the 4.0x–5.0x target range, with improved payout ratio and extended credit facility.

Financial highlights

• Cash rent increased 8.6%–9% year-over-year in Q4, with SHOP NOI up 12.5% and annual SHOP NOI up 32%.

• Net income per diluted share for 2024 was $3.13, unchanged from 2023; Q4 2024 net income per diluted share was $0.95, up from $0.74 in Q4 2023.

• NAREIT FFO per diluted share rose to $4.55 for 2024 and $1.24 for Q4 2024.

• Normalized FFO per share increased to $4.44 for 2024 and $1.12 for Q4 2024.

• FAD grew to $204.2M for 2024 and $52.1M for Q4 2024, with payout ratio improving to 79%.

• Investments of $237.5M were made in 2024 at an average yield of 8.6%, the highest since 2019.

Outlook and guidance

• 2025 guidance: NAREIT FFO and normalized FFO per diluted share expected at $4.59–$4.66; FAD projected at $219.8M–$223.6M.

• $225M in new investments at an average yield of 8.1% is included in 2025 guidance.

• SHOP NOI growth is projected at 12%–15% for 2025.

• Guidance factors in continued deferred rent collections, asset management transitions, rent concessions, asset dispositions, and potential Discovery lease modifications.