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National Health Investors (NHI)
NYSE:NHI
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National Health Investors
(NYSE:NHI)
74Outperform
Positive Factors
Acquisition
NHI acquired a $121.3m 10-community portfolio at 8.23% initial yield.
Earnings
1Q25 earnings beat with a positive growth in key financial metrics.
Guidance
2025 FAD guidance raised above previous estimates, indicating confidence in future performance.
Negative Factors
Cash Flow
NHI does have a $3.6m reserve against a mezz loan to SLM, which drove the CFFO cut.
Legal Costs
NHI will incur marginally higher legal/transition costs.
Occupancy
Bickford's occupancy has also slipped, indicating potential operational challenges.
National Health Investors (NHI) vs. S&P 500 (SPY)
Market Cap
$3.51B
Dividend Yield4.82%
Average Volume (3M)233.06K
Price to Earnings (P/E)23.7
Beta (1Y)0.42
Revenue Growth7.44%
EPS Growth4.23%
CountryUS
Employees30
SectorReal Estate
Sector Strength66
IndustryREIT - Healthcare Facilities
Share Statistics
EPS (TTM)0.74
Shares Outstanding46,693,672
10 Day Avg. Volume242,596
30 Day Avg. Volume233,059
Financial Highlights & Ratios
PEG Ratio19.11
Price to Book (P/B)2.41
Price to Sales (P/S)0.00
P/FCF Ratio16.85
Enterprise Value/Market Cap0.96
Enterprise Value/Revenue2.53
Enterprise Value/Gross Profit10.18
Enterprise Value/Ebitda3.24
Forecast
1Y Price Target
$83.25Price Target Upside10.75% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering5
National Health Investors Business Overview & Revenue Model
Company DescriptionNational Health Investors, Inc. (NHI) is a real estate investment trust (REIT) that specializes in acquiring, owning, and financing real estate properties in the healthcare sector. Primarily, NHI invests in senior housing and medical facilities across the United States. The company partners with experienced operators and healthcare providers to maintain a portfolio of properties that are leased to operators on a triple-net basis, ensuring a steady income stream.
How the Company Makes MoneyNHI generates revenue primarily through lease agreements with healthcare operators who manage the properties in its portfolio. These leases are typically structured as triple-net leases, where the tenant is responsible for property taxes, insurance, and maintenance costs, providing a stable and predictable cash flow for NHI. The company's income is primarily derived from rental income paid by its tenants, which include senior living communities, skilled nursing facilities, and medical office buildings. Additionally, NHI may earn income from mortgage interest and fees associated with the financing of healthcare facilities. Strategic partnerships with reputable operators and a focus on high-demand healthcare sectors contribute significantly to its profitability.
National Health Investors Financial Statement Overview
Summary
National Health Investors shows solid financial performance with strong profitability margins and efficient cash flow management. Revenue and profit growth are consistent, and the balance sheet is stable. However, the moderately high leverage, typical in the REIT industry, requires careful management to mitigate financial risk.Income Statement
The company's gross profit margin remains strong, hovering around 96.7% in TTM, indicating efficient cost management. The net profit margin increased to approximately 41.2% in TTM, demonstrating improved profitability. Revenue growth has been consistent, with a TTM increase to $342.97 million from $335.18 million in the prior annual period. EBIT and EBITDA margins are also robust, reflecting healthy operational performance. However, the growth rate has slowed compared to earlier periods, suggesting potential saturation.78
Positive
Balance Sheet
The debt-to-equity ratio is approximately 0.89 in TTM, indicating moderate leverage for a REIT. The return on equity improved to nearly 9.9% in TTM, showing effective utilization of shareholder funds. The equity ratio is stable at about 51.2%, reflecting a solid capital structure. While the debt level is significant, the company maintains a favorable equity position, balancing risk and potential returns.75
Positive
Cash Flow
The company demonstrates a strong cash flow position with a consistent rise in free cash flow, up 2.8% in TTM. The operating cash flow to net income ratio is approximately 1.51, indicating efficient cash generation relative to net income. Free cash flow to net income ratio is robust at 1.48, underscoring the firm's capacity to generate cash above net earnings. Overall, cash flow management is a significant strength.82
Very Positive
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 342.96M | 335.18M | 319.83M | 278.19M | 298.71M | 332.81M | Gross Profit |
| 331.65M | 324.02M | 308.32M | 268.41M | 287.08M | 323.16M | EBIT |
| 186.46M | 183.86M | 178.79M | 81.11M | 132.19M | 220.80M | EBITDA |
| 268.28M | 264.16M | 259.94M | 151.99M | 212.99M | 303.95M | Net Income Common Stockholders |
| 141.20M | 137.99M | 135.65M | 23.06M | 62.19M | 135.37M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 11.36M | 24.29M | 22.35M | 19.29M | 37.41M | 43.34M | Total Assets |
| 2.48B | 2.61B | 2.49B | 2.51B | 2.84B | 3.12B | Total Debt |
| 1.14B | 1.15B | 1.14B | 1.15B | 1.25B | 1.51B | Net Debt |
| 1.13B | 1.12B | 1.11B | 1.13B | 1.21B | 1.47B | Total Liabilities |
| 1.21B | 1.23B | 1.21B | 1.22B | 1.32B | 1.60B | Stockholders Equity |
| 1.25B | 1.37B | 1.25B | 1.27B | 1.51B | 1.51B |
| Cash Flow | Free Cash Flow | ||||
| 209.35M | 203.70M | 180.71M | 180.71M | 210.79M | 218.29M | Operating Cash Flow |
| 213.42M | 207.77M | 184.45M | 185.34M | 210.86M | 232.15M | Investing Cash Flow |
| -251.59M | -192.31M | -11.63M | 197.94M | 185.28M | -89.71M | Financing Cash Flow |
| 162.12M | -13.57M | -169.72M | -401.25M | -402.99M | -111.76M |
National Health Investors Technical Analysis
Positive
75.17
Price Trends
74.07
Positive
71.11
Positive
73.43
Positive
Market Momentum
0.32
Positive
51.91
Neutral
24.26
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NHI, the sentiment is Positive. The current price of 75.17 is below the 20-day moving average (MA) of 75.44, above the 50-day MA of 74.07, and above the 200-day MA of 73.43, indicating a neutral trend. The MACD of 0.32 indicates Positive momentum. The RSI at 51.91 is Neutral, neither overbought nor oversold. The STOCH value of 24.26 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NHI.
National Health Investors Risk Analysis
National Health Investors disclosed 42 risk factors in its most recent earnings report. National Health Investors reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
National Health Investors Peers Comparison
Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $5.59B | 31.80 | 7.02% | 4.13% | 43.27% | 80.97% | |
75 Outperform | $4.25B | 30.06 | 5.15% | 6.71% | 7.81% | 179.16% | |
74 Outperform | $3.51B | 23.68 | 10.56% | 4.82% | 7.44% | 4.23% | |
74 Outperform | $1.65B | 18.27 | 9.39% | 6.33% | 4.46% | 2.24% | |
72 Outperform | $5.73B | ― | -1.93% | 2.82% | 11.66% | ― | |
60 Neutral | $2.82B | 10.41 | 0.43% | 8531.49% | 6.00% | -17.35% | |
42 Neutral | $2.96B | ― | -28.86% | 7.78% | 19.56% | -12.73% |
* Real Estate Sector Average
Performance Comparison
NHI
National Health Investors
75.17
12.55
20.04%
LTC
LTC Properties
35.99
3.47
10.67%
SBRA
Sabra Healthcare REIT
17.87
4.36
32.27%
MPW
Medical Properties
5.07
0.23
4.75%
CTRE
CareTrust REIT
29.18
4.90
20.18%
AHR
American Healthcare REIT, Inc.
35.51
21.71
157.32%
National Health Investors Earnings Call Summary
Earnings Call Date:May 05, 2025
(Q1-2025)
| % Change Since: -1.14%|
Next Earnings Date:Aug 11, 2025
Earnings Call Sentiment Positive
The earnings call reflected a generally positive sentiment with strong financial performance and significant investment activity outweighing concerns about specific transaction costs and SHOP segment performance. The company demonstrated robust acquisition momentum and financial health, although some headwinds remain in certain segments.Q1-2025 Updates
Positive Updates
Strong Start to 2025
First quarter results exceeded expectations due to faster acquisitions and better-than-expected cash rent collections. Normalized FFO guidance midpoint increased by $0.08 per share to $4.71, representing a 6.1% year-over-year growth.
Significant Investments
Announced investments of $174.9 million year-to-date, with an active pipeline of approximately $264 million, indicating strong acquisition momentum.
SHOP Portfolio Growth
Progress made on transitioning a portfolio of six properties to a new RIDEA partnership, with expected NOI growth of 12% to 15% for the year.
Solid Financial Performance
Net income per diluted common share increased by 4.2% to $0.74, and normalized FFO per diluted common share increased by 2.7% to $1.15 compared to the prior year period.
Healthy Balance Sheet
Net debt to adjusted EBITDA ratio is 4.1x, with $135 million in cash and strong liquidity to support the investment pipeline.
Negative Updates
Transaction Costs
Recorded a $1.2 million charge in transaction costs for a large SHOP portfolio that was ultimately not pursued, impacting net income and FFO metrics.
SHOP Performance Concerns
First quarter SHOP NOI growth was only 4.9% year-over-year, attributed to seasonality and incentives, leading to concerns about meeting full-year growth targets.
SLM Portfolio Challenges
Legacy SLM portfolio largely repositioned, with $2.5 million partial loan repayment, indicating ongoing challenges in this segment.
Company Guidance
During the first quarter 2025 earnings call for National Health Investors (NHI), the company provided several key metrics and updates. NHI raised its normalized Funds From Operations (FFO) guidance midpoint by $0.08 per share to $4.71, representing a year-over-year growth of 6.1%. The company has announced $174.9 million in investments so far in 2025 and is actively pursuing a pipeline worth approximately $264 million. They expect the total investments for the year to surpass the previous year's total of $237.5 million. NHI is maintaining its outlook for a 12% to 15% growth in Net Operating Income (NOI) from its Senior Housing Operating Portfolio (SHOP). The company also reported a 4.9% year-over-year increase in SHOP NOI for the quarter, with resident fees up 5.2% and occupancy improving by 390 basis points to 89.2%. Additionally, FFO per diluted common share increased by 2.7% to $1.15, while Funds Available for Distribution (FAD) grew by 9.9% to $56 million. The company announced a $0.90 per share dividend for the second quarter and highlighted a strong balance sheet with a net debt to adjusted EBITDA ratio of 4.1x.National Health Investors Corporate Events
Business Operations and StrategyFinancial Disclosures
National Health Investors Releases Investor Update Presentation
Neutral
May 5, 2025
On May 5, 2025, National Health Investors, Inc. released an investor update presentation available on their website. The update provides insights into the company’s financial strategies and operational plans, highlighting potential risks and uncertainties that could impact future performance, such as tenant financial health, regulatory changes, and economic conditions.
Spark’s Take on NHI Stock
According to Spark, TipRanks’ AI Analyst, NHI is a Outperform.
National Health Investors scores well due to its robust financial performance, technical momentum, and positive earnings outlook. The recent governance changes further align with strategic goals, although caution is warranted due to revenue challenges and market conditions. The stock remains a solid choice for investors seeking stability and income.
To see Spark’s full report on NHI stock, click here.
Financial Disclosures
National Health Investors Releases Q1 2025 Financial Update
Neutral
May 5, 2025
National Health Investors has released its Supplemental Information for the quarter ended March 31, 2025. This release provides stakeholders with updated financial data and insights into the company’s performance, which may influence their understanding of the company’s current market position and future prospects.
Spark’s Take on NHI Stock
According to Spark, TipRanks’ AI Analyst, NHI is a Outperform.
National Health Investors scores well due to its robust financial performance, technical momentum, and positive earnings outlook. The recent governance changes further align with strategic goals, although caution is warranted due to revenue challenges and market conditions. The stock remains a solid choice for investors seeking stability and income.
To see Spark’s full report on NHI stock, click here.
Financial Disclosures
National Health Investors Releases Q4 2024 Financial Update
Neutral
Feb 25, 2025
National Health Investors has released its Supplemental Information for the quarter ended December 31, 2024. This release provides stakeholders with updated financial data and insights into the company’s performance during the specified period, which may impact its operational strategies and market positioning.
Business Operations and Strategy
National Health Investors Issues Strategic Investor Update
Neutral
Feb 25, 2025
On February 25, 2025, National Health Investors, Inc. issued an investor update available on their website. This update highlights the company’s strategic focus on maintaining its real estate investment trust status and addressing various operational risks, including those related to tenant financial health, regulatory changes, and environmental factors. The announcement underscores the company’s commitment to navigating potential challenges in the senior housing and medical investment sectors, emphasizing the importance of strategic management and risk mitigation for future growth.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.