NHI Books $541.6 Million Gain on NHC Portfolio Sale

The Tip Desk · November 12, 2026 · 5 min read

Net income attributable to common stockholders was $11.47 a share in the quarter ended September 30, 2026, versus $0.69 a year earlier.

National Health Investors, Inc. (NHI) reported net income attributable to common stockholders of $11.47 a share for the quarter ended September 30, 2026, compared with $0.69 a share a year earlier, after recognizing a $541.6 million gain on the July 1 sale of the National Healthcare Corporation leased portfolio and $9.9 million of impairment on a Real Estate Investments property classified as held for sale.

The self-managed REIT, which owns, leases, operates and finances senior housing and medical facilities, said the NHC portfolio consisted of 32 skilled nursing facilities and three intermediate care facilities initially acquired in 1991. Cash consideration was $560.0 million, with $5.3 million of closing costs. The company also sold two Texas skilled nursing facilities for $18.9 million in cash and a $1.5 million gain. Gains on dispositions of real estate properties were $542.7 million for the quarter.

NAREIT FFO per diluted share rose 2.8% to $1.12 from $1.09 a year earlier. Normalized FFO per diluted share fell 15.2% to $1.12 from $1.32, a steeper year-over-year decline than the 2.5% drop to $1.19 in the second quarter. Normalized FFO included $1.1 million of transaction costs related to acquisitions the company stopped pursuing.

Normalized funds available for distribution decreased $5.1 million to $57.1 million from $62.2 million a year earlier, reversing the 11.6% year-over-year increase to $62.5 million reported in the prior quarter. Cash rental income decreased $11.8 million from the disposition of 42 properties in the Real Estate Investments segment, including the 35-property NHC portfolio.

Rental income decreased $1.5 million, or 2.5%, primarily from the $11.8 million cash-rental drop from those 42 dispositions since July 1, 2025, plus a $6.0 million cash-rental decline from seven properties transitioned to the SHOP segment in August 2025. Those decreases were partly offset by $2.8 million from five acquisitions, a $12.1 million write-off of straight-line rents receivable on the transitioned properties and $2.2 million of rent escalators.

Total NOI increased to $74.55 million from $70.98 million a year earlier. Real Estate Investments segment NOI declined to $63.03 million from $66.06 million. SHOP segment NOI rose to $11.52 million from $4.92 million, with acquisitions contributing $5.47 million, transitioned properties $2.51 million and same-store properties $3.54 million. Resident fees and services, less senior housing operating expenses, increased $6.6 million, primarily from a $5.5 million increase from 20 SHOP acquisitions since the beginning of the fourth quarter of 2025 and a $0.5 million increase from the seven transitioned properties. On a same-store basis that line increased $0.6 million.

Interest expense decreased $1.2 million, or 9.0%, from $3.4 million of 2025 term-loan repayments and a $2.4 million Credit Facility decrease, partly offset by a $4.5 million increase from 2033 Senior Notes issued in September 2025. Depreciation and amortization increased $5.5 million, or 27.4%, from $6.2 million of properties acquired after July 1, 2025, partly offset by a $1.3 million decrease from properties sold and one property classified as held for sale. Interest income from mortgage and other notes receivable decreased $1.3 million, or 20.6%. General and administrative expenses increased $1.7 million, or 26.8%. Legal expense of $1.1 million consisted primarily of costs for a large SHOP transaction the company is no longer pursuing. Loan and realty losses, net, were $9.7 million, primarily the $9.9 million impairment on the Illinois assisted living facility sold in November 2026.

In October the company acquired six senior housing communities in Kentucky, Michigan and Tennessee for $107.7 million including $1.2 million of closing costs, bought a Michigan assisted living facility from Bickford for $16.8 million with a $14.7 million loan repayment, and bought a Florida inpatient rehabilitation hospital for $34.6 million with a $27.6 million loan repayment. President and CEO Eric Mendelsohn said the company had closed more than $395 million in investments year-to-date and expected to complete significant additional investments before year-end.

As of September 30, 2026, consolidated net debt was $1.0 billion, including $203.0 million drawn on a $700.0 million revolving credit facility, with net debt to annualized adjusted EBITDA of 3.6x, within the 3.5x to 4.5x target range. Cash and cash equivalents were $46.6 million, restricted cash $231.7 million and deposits for future acquisitions $108.3 million. The company had $500.0 million available under its ATM equity program and declared a $0.94 a share dividend payable January 29, 2027.

Full-year 2026 guidance is $4.68 to $4.70 of NAREIT FFO and Normalized FFO per diluted share and $236.6 million to $237.7 million of FAD, versus the May update of $4.74 to $4.79 FFO and $240.6 million to $243.7 million FAD. Assumptions include $190 million of unidentified new investments, Same Store SHOP NOI growth of 1% to 3% on 15 properties for 2026 and 0% to 1% on 26 properties in the fourth quarter, and total SHOP NOI of $43.8 million to $44.3 million on 48 properties including $1.8 million from an October 1, 2026 acquisition.

The company said it had about $285.3 million of signed letters of intent primarily in SHOP with an expected average initial NOI yield of about 6.5% and was evaluating about $400 million of additional opportunities.