National Health Investors (NHI) Q4 2024 earnings summary

Executive summary

• Fourth quarter 2024 results exceeded expectations, driven by strong portfolio contributions, organic growth from rent step-ups, deferral repayments, and improved EBITDARM coverage trends.

• SHOP (senior housing operating portfolio) occupancy accelerated, generating 12.5% NOI growth in Q4 and 32% for the year, with Q4 occupancy at 89.4%.

• Portfolio investments in 2024 totaled $237.5M at an average yield of 8.6%, the highest since 2019; Q4 investments were $153.2M at 8.5% yield.

• Annual NAREIT FFO, normalized FFO, and FAD all grew for the first time since 2020, with full-year results exceeding the high end of original guidance.

• Net debt to adjusted EBITDA at 4.1x, at the low end of the 4.0x–5.0x target range; $75M in private placement notes retired and revolving credit facility extended to 2028.

Financial highlights

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

• NAREIT FFO per diluted share increased 3.6% for the year and 13.8% for Q4, reaching $4.55 and $1.24, respectively.

• Normalized FFO per diluted share rose to $4.44 for the year and $1.12 for Q4 2024.

• FAD increased 8.7% for the year and 10% for Q4, totaling $204.2M and $52.1M; payout ratio improved to 79.0%.

• Lease revenue (excluding certain items) was $62.7M in Q4 2024, up from $57.7M in Q4 2023.

Outlook and guidance

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

• FAD guidance midpoint is $221.7M, up 8.6%.

• 2025 guidance includes $225M in new investments at an average yield of 8.1%, with 12–15% SHOP NOI growth expected.

• Deferred rent collections expected to slow to ~$4M in 2025 from $11M in 2024.

• Assumptions include continued rent concessions, asset dispositions, and robust investment pipeline.