On August 6, 2024, National Health Investors Inc (NHI, Financial) released its 8-K filing for the second quarter of 2024. National Health Investors Inc is a housing and medical facility REIT operating through two segments: Real Estate Investments and Senior Housing Operating Portfolio (SHOP). The company's revenues are derived from rental income, mortgage and other notes receivable interest income, and resident fees and services.
Performance Overview
National Health Investors Inc (NHI, Financial) reported a net income attributable to common stockholders per diluted common share of $0.81 for Q2 2024, down from $0.92 in the same period last year. For the six months ended June 30, 2024, net income per diluted common share was $1.52, compared to $1.71 in the prior year.
Despite the decline in net income, the company reported an increase in NAREIT FFO per diluted common share to $1.18 for Q2 2024, up from $1.05 in the same period last year. Normalized FFO per diluted common share also increased to $1.18 from $1.06. Normalized FAD for Q2 2024 was $51.8 million, up from $44.6 million in the prior year.
Financial Achievements and Challenges
National Health Investors Inc (NHI, Financial) achieved several financial milestones, including a 7.9% increase in rental income, primarily due to pandemic-related rent deferral repayments and new investments. However, the company faced challenges such as a 57.8% decrease in straight-line lease revenue and increased interest expenses due to higher interest rates and borrowings.
Eric Mendelsohn, NHI President and CEO, stated,
“We had another great quarter which exceeded our expectations. Given the strong quarterly results and continued good visibility into the second half of the year we are again raising our full year guidance.”
Income Statement Highlights
| Metric | Q2 2024 | Q2 2023 |
|---|---|---|
| Rental Income | $65.76 million | $60.95 million |
| Resident Fees and Services | $13.39 million | $11.79 million |
| Interest Income and Other | $5.82 million | $5.13 million |
| Net Income Attributable to Common Stockholders | $35.23 million | $39.76 million |
Balance Sheet and Liquidity
As of June 30, 2024, NHI had $1.1 billion in net debt, including $244.5 million outstanding on its $700 million revolving credit facility. The company maintains a strong financial profile with a net debt to adjusted EBITDA ratio within the target range of 4.0x – 5.0x and is in compliance with all debt covenants.
Occupancy Rates
The following table summarizes the average portfolio occupancy for SLC, Bickford, and SHOP for the periods indicated:
| Properties | Jul-24 | Jun-24 | May-24 | Apr-24 |
|---|---|---|---|---|
| SLC Same-Store | 84.0% | 83.6% | 84.1% | 83.9% |
| Bickford Same-Store | 85.4% | 84.7% | 84.8% | 85.4% |
| SHOP | 88.2% | 87.7% | 86.8% | 86.3% |
Analysis
National Health Investors Inc (NHI, Financial) demonstrated resilience in Q2 2024 with strong FFO and FAD growth, despite a decline in net income. The company's strategic investments and portfolio optimization have contributed to its robust performance. However, challenges such as increased interest expenses and decreased straight-line lease revenue need to be addressed to sustain long-term growth.
For more detailed information, please refer to the full 8-K filing.
Explore the complete 8-K earnings release (here) from National Health Investors Inc for further details.
