Land & Buildings pushes for governance changes at NHI

STAMFORD, Conn. - Land & Buildings Investment Management, LLC, a significant shareholder of National Health Investors, Inc. (NYSE: NHI), has publicly advocated for changes to the company's board of directors, emphasizing the need for independent oversight and expertise. The investment firm, which has nominated two candidates for election at NHI's annual stockholders' meeting on May 21, 2025, has expressed concerns over what it perceives as NHI's outdated corporate governance and conflicts of interest that may be affecting the company's performance.

According to Land & Buildings, NHI's stockholder returns have lagged behind its peers in the senior housing real estate investment trust (REIT) sector, which they attribute to the board's composition and governance practices. The firm points to the board's alleged interconnectedness, including relationships with NHI's major tenant, National Healthcare Corp. (NHC), as detrimental to stockholder value.

The investment management firm has proposed Adam Troso and Jim Hoffmann as new board members, highlighting their real estate investment experience and independence as assets that could help steer NHI towards improved performance and stockholder returns. Land & Buildings believes that the current board lacks the necessary real estate and capital markets expertise to oversee potential acquisitions that could significantly impact earnings.

Land & Buildings has also highlighted a lease renewal with NHC as a critical opportunity for NHI to improve cash flows and stockholder value. The firm questions the current board's ability to negotiate effectively due to perceived conflicts of interest and suggests that its nominees could bring an independent perspective to these negotiations.

The push for board changes comes amid Land & Buildings' belief that NHI has the potential to close the valuation gap with its senior housing REIT peers through better governance and strategic acquisitions. They estimate that NHI has the potential for more than 50% upside by adjusting rents to market rates and aligning more closely with industry valuations.

This report is based on a press release statement from Land & Buildings Investment Management, LLC.

In other recent news, Welltower Inc. has reported several significant developments. Moody's Ratings upgraded Welltower's long-term issuer rating to A3 from Baa1, citing robust revenue and earnings growth over the past year. This upgrade reflects the company's financial policy that emphasizes organic growth and equity-funded investments. Additionally, S&P Global Ratings raised Welltower's issuer credit rating to 'A-' from 'BBB+', highlighting the company's reduced leverage and strong operating performance.

Wells Fargo also upgraded Welltower's stock rating to Overweight, setting a new price target of $158. The analysts expressed confidence in Welltower's senior housing operations and financial structure. In terms of strategic financial moves, Welltower announced a $7.5 billion at-the-market equity offering, allowing the company to sell shares as needed through sales agents.

Evercore ISI raised its price target for Welltower shares to $145, following the company's acquisition of the Amica Senior Lifestyles portfolio valued at $3.24 billion. This acquisition is expected to positively impact Welltower's financial performance, with slight increases in funds from operations estimates for fiscal years 2025 and 2026. Collectively, these developments indicate Welltower's continued focus on strengthening its financial position and expanding its healthcare property portfolio.

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