National Health Investors acquires four senior living properties for $74.3 million

Published 02/10/2025, 11:06
National Health Investors acquires four senior living properties for $74.3 million

MURFREESBORO - National Health Investors, Inc. (NYSE:NHI), a healthcare REIT with a market capitalization of $3.79 billion and trading near its 52-week high of $82.86, has invested $74.3 million to acquire four senior housing properties with 344 units in Oklahoma and Oregon, according to a press release statement issued Thursday.According to InvestingPro analysis, NHI has maintained dividend payments for 35 consecutive years, currently offering a 4.61% yield, making it an attractive option for income-focused investors.

The properties will be added to NHI’s Senior Housing Operating Portfolio and will continue to be managed by Compass Senior Living, an existing operator partner. The acquisition was partially funded by canceling a $9.5 million mortgage loan that carried an 8.5% interest rate. The communities are expected to generate an initial yield of approximately 7.5% after routine capital expenditures, contributing to the company’s strong 7.21% revenue growth over the last twelve months.

"We have been exploring avenues to grow with Compass since our first investment with them last year," said Eric Mendelsohn, President and CEO of NHI.

Dennis Garboden, President of Compass Senior Living, expressed enthusiasm about the transaction, noting the company is "excited about the road ahead for these excellent four locations."

The acquisition contributes to NHI’s year-to-date investments of approximately $249.2 million in 2025, which have averaged an initial yield of 8.0%. The company reports having approximately $132.4 million under signed letters of intent at an average yield of about 8.1%, and is evaluating additional investment opportunities of approximately $278 million.

Compass Senior Living currently operates 39 locations across 10 states, offering independent living, assisted living, and memory care services.

National Health Investors is a real estate investment trust specializing in senior housing and healthcare investments through various financing structures including sale-leasebacks, joint ventures, and mortgage financing. The company maintains a GREAT financial health score according to InvestingPro, which offers comprehensive analysis and additional insights through its detailed Pro Research Report, available for over 1,400 US stocks.

In other recent news, National Health Investors reported its second-quarter 2025 earnings, surpassing analysts’ expectations. The company achieved an earnings per share of $0.79, exceeding the forecasted $0.7526, and reported revenue of $70.27 million, which was higher than the expected $67.73 million. Following these results, Truist Securities raised its price target for National Health Investors from $77 to $81, maintaining a Buy rating on the stock. Additionally, Cantor Fitzgerald initiated coverage on National Health Investors with an Overweight rating, setting a $90 price target.

In other developments, National Health Investors priced a $350 million senior notes offering with a 5.350% interest rate due in 2033. The offering is expected to close on September 26, 2025, subject to customary conditions. Furthermore, the company issued a formal notice of default to NHC/OP, L.P., an affiliate of National HealthCare Corporation, for non-compliance with certain non-monetary provisions in their Master Lease agreement. The tenant had been previously notified of these issues and given a deadline to address them.

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