The following is a summary of the National Health Investors, Inc. (NHI) Q1 2024 Earnings Call Transcript:
Financial Performance:
National Health Investors exceeded Q1 expectations with a 6.8% YoY increase in Funds Available for Distribution (FAD) to $51 million.
The quarterly net income and NAREIT FFO per diluted common share declined by 10.1% and 5.2% respectively, but normalized FFO per diluted common share improved by 0.9%.
They have a solid balance sheet with $970 million capacity, and the net debt to adjusted EBITDA ratio improved to 4.4x from 4.6x.
The company has raised their full year guidance for 2024 with expectations of 5-6% growth at the high point compared to the full year 2023 results.
Business Progress:
The increased FAD guidance is due to planned organic growth, deferral repayments, rent step-ups, significant potential for NOI growth in SHOP, and capex projects concentrated on the existing real estate portfolio.
Their Senior Housing sector has seen EBITDARM coverage increase for the last eight consecutive periods, reaching 1.45x.
A $25 million NOI-producing CapEx program targeting the leased real estate portfolio, with $19 million already committed.
The SHOP portfolio reported a 54.8% YoY increase in NOI to $2.9 million, expecting a 25% to 30% growth in 2024.
NHI is focusing on external growth, with a pipeline currently over $300 million. They have also shown interest in deals valued over $100 million.
The company aims to increase occupancy in the Senior Housing Operating Portfolio (SHOP) over the 90% mark, consider working with additional operators, enter new relationships, and plan Bickford rent resets.
More details: National Health Investors Inc IR
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