Q2 2026 National Health Investors, Inc. Earnings Call Transcript
Key Points
- Completed the sale of the NHC portfolio, significantly strengthening the balance sheet by reducing leverage to well below the long-term target range and providing strong liquidity for future investments.
- Expanded the SHOP platform by 137% year-over-year to approximately $850 million, representing 24% of total company investment, with newer acquisitions performing within original investment assumptions.
- Reported strong triple-net portfolio fundamentals with full contractual rent collections, healthy occupancy, and improved EBITDARM coverage (senior housing at 1.62 and SNF at 2.66).
- Increased the quarterly dividend by $0.02 per share to $0.94, reflecting confidence in the company's financial position and future cash flows.
- Maintained a robust investment pipeline with approximately $127.3 million under signed LOIs and an additional $420 million in deals being evaluated, positioning the company for continued external growth.
- Successfully completed the CFO transition and hired a new COO, enhancing organizational structure to support the growing SHOP portfolio and increase acquisition capacity.
- Same-store SHOP NOI on the 15 legacy Holiday properties declined 6.3% year-over-year, although it improved sequentially by 18.9% from the first quarter.
- Normalized FFO per share decreased 2.5% year-over-year, impacted by expenses related to the CFO transition and non-cash deferred income tax expenses.
- General and administrative expenses increased 44% year-over-year due to ramping up the SHOP growth strategy and one-time CFO transition costs.
- Interest expense increased 5.4% year-over-year due to higher average interest rates and a higher balance on the revolving credit facility.
- The company faces pressure to redeploy approximately $334 million of NHC sale proceeds under Section 1031 to avoid a special dividend, with a competitive acquisition market potentially limiting attractive opportunities.
- Occupancy growth in the SHOP portfolio has been challenged by increased move-outs and units taken offline, requiring focused efforts to rebuild the sales pipeline and drive volume.
Good morning and welcome to the NHI second-quarter 2026 earnings webcast and conference call. (Operator Instructions)
It is now my pleasure to turn the floor over to your host, Dana Hambly. The floor is yours.
Thank you and welcome to the National Health Investors second-quarter 2026 conference call. On the call today are Eric Mendelsohn, President and CEO; Kevin Pascoe, Chief Investment Officer; Todd Siefert, Chief Financial Officer; and David Travis, Chief Accounting Officer.
Yesterday, NHI released its second-quarter results and conference call information in a press release after market close. Today's remarks may include forward-looking statements, which are subject to risks or uncertainties and are not guarantees of future performance.
Investors are urged to carefully review NHI's filings with the Securities and Exchange Commission, including its Form 10-K for the year ended December 31, 2025, and Form 10-Q for the quarter ended June 30, 2026, for a
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