NHC's Q2 2025 Earnings Call: Navigating Contradictions in Portfolio Strategy, Acquisitions, and Rate Management

NHC portfolio strategy and future definitive agreement, SHOP pipeline and acquisition activity, occupancy and rate management strategy, disposition strategy and focus, and confidence in pipeline and deal announcements are the key contradictions discussed in National Health Investors, Inc's latest 2025Q2 earnings call.



Revenue and Earnings Growth:
- National Health Investors, Inc. (NHI) Q2 2025 results exceeded expectations, with normalized FFO per share increasing by 3.4% to $1.22.
- The growth was multifaceted and driven by solid execution, faster acquisitions, SHOP NOI growth, and improving tenant fundamentals.

SHOP Portfolio Expansion:
- NHI completed the transition of 7 properties from leases to SHOP, resulting in an annualized SHOP NOI increase of approximately $8.8 million or 57%.
- The expansion is part of a strategic focus on senior housing operations, which NHI believes offers the highest growth potential and best risk-adjusted returns in its investment universe.

Dividend Increase:
- NHI announced a 2.2% increase in its dividend, the first increase since the first quarter of 2021.
- The dividend increase reflects the company's strong performance and confidence in its future growth prospects.

Investment and Acquisition Strategies:
- NHI invested $175 million so far this year and has $130 million under signed LOIs for upcoming acquisitions.
- The strategy focuses on acquisitions that offer immediate accretion to yields and multiyear exceptional NOI growth, while also considering strategic benefits such as new operating partnerships.