National Health Investors Reports Mixed Q3 Results with 3.5% Revenue Growth and 2.7% Net Income Decline

National Health Investors, Inc. (NHI) reported its financial results for the third quarter and the nine months ended September 30, 2024, highlighting a mixed performance in revenue and profitability compared to the previous fiscal period.

For the three months ended September 30, 2024, NHI generated rental income of $63.3 million, reflecting a 1.7% increase from $62.3 million in the same period of 2023. This growth was attributed to new investments, although it was partially offset by a decrease from cash basis tenants and properties disposed of. Resident fees and services also rose to $13.8 million, up 11.4% from $12.4 million in the prior year. Total revenues for the quarter reached $82.9 million, a 3.5% increase from $80.1 million in 2023. However, net income for the quarter decreased to $28.2 million, down 2.7% from $29.0 million in the previous year.

For the nine months ended September 30, 2024, NHI reported total revenues of $249.4 million, a 3.8% increase from $240.4 million in 2023. Rental income for this period increased by 1.5% to $191.3 million, driven by higher contributions from cash basis tenants and new investments. However, net income for the nine months fell to $93.9 million, an 8.6% decrease from $102.7 million in the same period last year.

The company’s total assets as of September 30, 2024, were $2.5 billion, down from $2.5 billion at the end of 2023. Total liabilities increased slightly to $1.1 billion from $1.1 billion. NHI's retained earnings rose to $2.6 billion, compared to $2.5 billion at the end of 2023.

Strategically, NHI made several notable investments and acquisitions. In June 2024, the company acquired a 110-unit assisted living facility in Wisconsin for $32.1 million. Additionally, in October 2024, NHI announced the acquisition of a portfolio of ten assisted living and memory care communities in North Carolina for $121 million. The company also entered into forward sale agreements in August 2024 to sell up to 2.76 million shares of common stock, which may impact future earnings per share.

NHI's financial health remains stable, with a fixed charge coverage ratio of approximately 4.6x for the nine months ended September 30, 2024. The company continues to comply with the financial ratios required by its credit facilities, maintaining a robust liquidity position with $381 million available under its $700 million unsecured revolving credit facility.