National Health Investors Reports Q2 2023 Earnings
National Health Investors (NHI) recently held its Q2 2023 earnings call to discuss the company’s financial results for the second quarter. The call included key executives, including President and CEO Eric Mendelsohn. NHI cautioned investors that any statements made during the call that are not historical facts are forward-looking statements and may involve risks and uncertainties.
During the second quarter, NHI experienced stable cash collections and increased deferral repayments. However, the company was impacted by one-time concessions specific to two senior housing operators, which amounted to approximately $1.9 million or $0.04 per share compared to the first quarter of 2023.
Despite these challenges, NHI remains optimistic about the long-term outlook for the senior housing and skilled nursing portfolios. The company has been working on portfolio optimization through property sales, with seven properties sold in the second quarter alone. These efforts have led to improved EBITDARM coverage and favorable occupancy trends.
NHI’s Senior Housing Operating Portfolio (SHOP) has also shown signs of improvement, with increased move-in trends and a boost in NOI to $2.1 million. The company expects further improvement in SHOP NOI in the second half of the year. NHI’s balance sheet remains strong, with leverage at just 4.6 times and over $500 million of revolver capacity.
Looking ahead, NHI is focused on external growth opportunities and is actively seeking new acquisitions. The company believes that the current market conditions, including higher interest rates and limited capital availability, favor buyers. NHI has adjusted its guidance to reflect the impact of this quarter’s concessions but expects better results in the coming quarters.
Overall, NHI remains optimistic about the long-term prospects of the industry and is well-positioned to pursue growth opportunities.
