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1. Company Snapshot

1.a. Company Description

Incorporated in 1991, National Health Investors, Inc.(NYSE: NHI) is a real estate investment trust specializing in sale-leaseback, joint-venture, mortgage and mezzanine financing of need-driven and discretionary senior housing and medical investments.NHI's portfolio consists of independent, assisted and memory care communities, entrance-fee retirement communities, skilled nursing facilities, medical office buildings and specialty hospitals.

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1.b. Last Insights on NHI

National Health Investors' recent performance has been driven by several positive factors. The company has filed definitive proxy materials with the Securities and Exchange Commission, outlining its commitment to board refreshment and governance enhancements. Additionally, National Health Investors has mailed a letter to stockholders highlighting its superior shareholder returns and refreshed board. The company has also announced a $63.5 million senior housing investment, further solidifying its position in the industry.

1.c. Company Highlights

2. National Health Investors Beats Expectations with Strong Q3 Earnings

National Health Investors reported a strong third quarter, with normalized FFO per share increasing 28% to $1.32 compared to the prior year third quarter, beating analyst estimates of $1.24. The company's NAREIT FFO results per share for the third quarter compared to the prior year period increased 5.8% to $1.09 per share. The strong performance was driven by the transition of 7 properties to the SHOP portfolio, resulting in consolidated SHOP NOI growth of approximately 63% compared to the prior year's quarter. As Eric Mendelsohn, President and CEO, noted, "We've surpassed last year's investment total with more deals expected to close this year, and we're working on a strong active pipeline that should generate similar or higher external investment activity in 2026."

Publication Date: Nov -15

📋 Highlights
  • SHOP Portfolio Growth:: Transition of 7 properties boosted consolidated SHOP NOI by 63% YoY, with a $74.3M acquisition announced for October 1.
  • Guidance Update:: Raised NFFO per share growth guidance to over 10% at midpoint, marking the strongest annual growth since 2014.
  • Liquidity & Balance Sheet:: $81.6M cash on hand and $600M revolving capacity post-$75M bank term loan repayment, improving leverage ratios.
  • Future Investment Pipeline:: $195M in planned Q4 2025–Q1 2026 investments with an average yield of 8.4%, targeting $1B+ in total opportunities.

Financial Performance

The company's third quarter results were above expectations, with FAD for the third quarter ended September 30 compared to the prior year period, increasing 26% to $62.2 million. The company's guidance was raised for the third time this year, with the updated guidance representing over 10% NFFO per share growth at the midpoint, which would be the strongest annual growth since 2014. The company's balance sheet ended the third quarter in great shape with improvements in leverage ratios and liquidity, with $81.6 million in cash on the balance sheet and $600 million in revolving capacity.

SHOP Portfolio Performance

The SHOP portfolio continues to drive growth, with the transition of 7 properties to the SHOP portfolio resulting in consolidated SHOP NOI growth of approximately 63% compared to the prior year's quarter. The company is confident that the SHOP portfolio will more than double again in 2026 to at least 20%. The assets being added are higher quality properties with more consistent growth, and the company is working to develop a team with operations expertise.

Valuation

With a P/E Ratio of 24.86 and an EV/EBITDA of 16.83, the company's valuation appears to be pricing in significant growth expectations. The company's ROE of 10.23% and ROIC of 91.24% indicate strong profitability. The Dividend Yield of 4.69% provides a relatively stable source of return. As the company continues to grow its SHOP portfolio and drive operational improvements, investors will be watching to see if the company can meet or exceed expectations.

3. NewsRoom

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SHO vs. NHI: Which Stock Is the Better Value Option?

Dec -01

Source: zacks.com

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Commonwealth of Pennsylvania Public School Empls Retrmt SYS Acquires 696 Shares of National Health Investors, Inc. $NHI

Nov -24

Source: defenseworld.net

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National Health Investors (NHI) Moves to Buy: Rationale Behind the Upgrade

Nov -21

Source: zacks.com

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National Health Investors Q3: Beat And Raise From Senior Housing Boom

Nov -20

Source: seekingalpha.com

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Buried Treasure: Your Map To 13 Strong-Yielding Bargain REITs

Nov -17

Source: seekingalpha.com

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SHO or NHI: Which Is the Better Value Stock Right Now?

Nov -13

Source: zacks.com

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Top 5 High-Yielding REITs For Income Seekers

Nov -10

Source: seekingalpha.com

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National Health Investors, Inc. (NHI) Q3 2025 Earnings Call Transcript

Nov -07

Source: seekingalpha.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (6.55%)

6. Segments

Real Estate Investments

Expected Growth: 6.5%

National Health Investors, Inc.'s 6.5% growth in Real Estate Investments is driven by increasing demand for healthcare facilities, aging population, and strategic acquisitions. Additionally, the company's diversified portfolio of medical office buildings, senior housing, and specialty hospitals contributes to its growth. Furthermore, the company's strong relationships with healthcare operators and its ability to provide capital solutions also support its growth.

Shop

Expected Growth: 6.8%

National Health Investors, Inc.'s 6.8% growth is driven by increasing demand for senior housing and healthcare services, fueled by an aging population and government incentives. Additionally, strategic acquisitions and partnerships have expanded the company's portfolio, while cost savings initiatives and efficient operations have improved profitability.

Non-segment/Corporate

Expected Growth: 7.2%

National Health Investors, Inc.'s Non-segment/Corporate growth of 7.2% is driven by increasing demand for healthcare services, strategic investments in existing properties, and effective cost management. Additionally, the company's diversified portfolio and strong relationships with operators contribute to its growth. Furthermore, the growing need for senior housing and medical facilities, fueled by an aging population, also supports the company's expansion.

7. Detailed Products

Senior Housing

National Health Investors, Inc. invests in senior housing facilities, providing a range of living options for seniors, including independent living, assisted living, and memory care.

Skilled Nursing Facilities

The company invests in skilled nursing facilities that provide 24/7 nursing care and rehabilitation services to patients who require intensive medical attention.

Medical Office Buildings

National Health Investors, Inc. invests in medical office buildings that provide outpatient care services, including physician offices, outpatient surgery centers, and diagnostic imaging centers.

Hospitals

The company invests in hospitals that provide acute care services, including emergency department services, surgical services, and inpatient care.

8. National Health Investors, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

National Health Investors, Inc. operates in a highly regulated industry, which limits the threat of substitutes. However, the company's focus on senior housing and healthcare real estate investment trusts (REITs) makes it vulnerable to substitutes in the form of other investment opportunities.

Bargaining Power Of Customers

National Health Investors, Inc. has a diverse portfolio of properties and tenants, which reduces the bargaining power of individual customers. Additionally, the company's focus on long-term relationships with its tenants limits the ability of customers to negotiate prices.

Bargaining Power Of Suppliers

National Health Investors, Inc. relies on a network of suppliers for construction, maintenance, and other services. While the company has some bargaining power due to its size and scale, suppliers may still have some negotiating power, particularly in areas with limited competition.

Threat Of New Entrants

The healthcare REIT industry has high barriers to entry, including significant capital requirements and regulatory hurdles. This limits the threat of new entrants and allows National Health Investors, Inc. to maintain its market position.

Intensity Of Rivalry

The healthcare REIT industry is highly competitive, with several large players competing for market share. National Health Investors, Inc. must continually innovate and improve its operations to maintain its competitive edge.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 49.12%
Debt Cost 8.28%
Equity Weight 50.88%
Equity Cost 8.76%
WACC 8.52%
Leverage 96.53%

11. Quality Control: National Health Investors, Inc. passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Omega Healthcare

A-Score: 6.8/10

Value: 3.5

Growth: 3.0

Quality: 8.5

Yield: 10.0

Momentum: 6.0

Volatility: 10.0

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National Health Investors

A-Score: 6.7/10

Value: 3.0

Growth: 4.3

Quality: 8.1

Yield: 9.0

Momentum: 6.0

Volatility: 10.0

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CareTrust REIT

A-Score: 6.7/10

Value: 2.2

Growth: 4.4

Quality: 7.9

Yield: 9.0

Momentum: 7.0

Volatility: 9.7

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Sabra Health Care REIT

A-Score: 6.5/10

Value: 4.1

Growth: 3.4

Quality: 6.8

Yield: 10.0

Momentum: 5.0

Volatility: 9.7

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Healthcare Realty Trust

A-Score: 5.9/10

Value: 4.4

Growth: 2.9

Quality: 3.3

Yield: 10.0

Momentum: 6.0

Volatility: 9.0

1-Year Total Return ->

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Ventas

A-Score: 5.4/10

Value: 1.3

Growth: 3.6

Quality: 4.2

Yield: 7.0

Momentum: 7.0

Volatility: 9.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

78.57$

Current Price

78.57$

Potential

-0.00%

Expected Cash-Flows