In This Article:
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Cash Rent Increase: Nearly 9% year-over-year growth.
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NOI Growth: 12.5% in Q4 and approximately 32% for the year.
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Investments: Over $150 million in Q4 at an initial yield of 8.5%; $235 million for the year at an average yield of 8.6%.
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Balance Sheet Leverage: Decreased to 4.1 times from 4.4 times in Q3.
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Net Income Per Share: $3.13 for the year, unchanged from the prior year.
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NAREIT FFO Per Share: Increased 3.6% for the year to $4.55 and 13.8% for Q4 to $1.24.
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Normalized FFO Per Share: Increased 2.5% for the year to $4.44 and 2.8% for Q4 to $1.12.
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FAD: Increased 8.7% for the year to $204.2 million and 10% for Q4 to $52.1 million.
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Shop Occupancy: Improved by 620 basis points to 89.4%.
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Shop NOI: Increased 12.5% year-over-year to $3.2 million in Q4.
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REVPOR Growth: Increased 60 basis points in Q4.
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Dividend: $0.90 per share declared for Q1 2025.
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2025 Guidance: NAREIT FFO per share expected to increase 1.8% to $4.63; Normalized FFO per share expected to increase 4.3%.
Release Date: February 26, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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National Health Investors Inc (NYSE:NHI) reported a nearly 9% year-over-year increase in cash rent, driven by solid organic growth and increased investment activity.
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Shop occupancy accelerated, contributing to a 12.5% NOI growth, with investments of over $150 million during the quarter at an initial yield of 8.5%.
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The company announced over $235 million in investments at an average yield of approximately 8.6%, marking its most active year since 2019.
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NHI delivered growth in annual NAREIT FFO, normalized FFO, and FAD for the first time since 2020, exceeding the high end of its original February guidance.
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The balance sheet leverage improved, ticking down to 4.1 times from 4.4 times in the third quarter, indicating strong financial management.
Negative Points
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The Discovery Senior Living properties have not performed as expected, leading to evaluations for transitioning the properties to another operator.
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NHI's guidance includes assumptions for additional costs and concessions related to normal asset management transitions, dispositions, and loan repayments.
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The company is facing challenges with the SLM portfolio, including a $14.5 million mezzanine loan that is still in flux and may impact future financial performance.
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Deferred rent collections are expected to slow down significantly in 2025 compared to 2024, with only about $4 million baked into the guidance.
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The interest rate environment has increased the cost of capital, which could weigh on future investment opportunities and financial performance.