National Health Investors Inc (NYSE:NHI) reported second-quarter 2025 earnings that surpassed analyst expectations, driven by strong portfolio performance and strategic acquisitions. The healthcare real estate investment trust (REIT) posted revenue of $90.66 million, exceeding the consensus estimate of $87.80 million. Normalized funds from operations (FFO) per diluted share came in at $1.22, significantly higher than the $0.76 analysts had projected.
Key Financial Highlights
- Revenue outperformance: The $90.66 million in Q2 revenue represents a 3.3% beat over estimates, reflecting growth in rental income and SHOP segment performance.
- Strong FFO growth: Normalized FFO of $1.22 per share was up 3.4% year-over-year and well ahead of expectations.
- Dividend increase: The company announced a quarterly dividend hike, signaling confidence in cash flow sustainability.
- Portfolio expansion: NHI completed $63.5 million in new acquisitions, including a six-property memory care portfolio with an initial lease yield of 8%.
Market Reaction
Despite the earnings beat, NHI’s stock showed muted immediate after-hours movement, suggesting the results were largely anticipated. Over the past month, shares have gained 3.5%, reflecting investor optimism ahead of the earnings release. The lack of a sharp post-earnings rally could indicate that much of the positive outlook was already priced in.
Outlook vs. Analyst Estimates
NHI raised its full-year 2025 guidance, projecting normalized FFO per share between $4.78 and $4.82, up from prior expectations of $4.68 to $4.73. This revised outlook aligns closely with the current analyst consensus of $4.80 for the year. For Q3 2025, analysts expect revenue of $90.60 million and normalized FFO of $0.80 per share—figures that NHI appears well-positioned to meet given its recent performance.
Strategic Developments
- Discovery Senior Living transition: NHI moved seven properties into its SHOP segment, expecting improved operational control and growth potential.
- Strong liquidity position: With $750 million in available capital, the company is actively pursuing additional acquisitions, including $129.9 million in deals under signed letters of intent.
- Debt management: NHI repaid $75.7 million in Fannie Mae debt, reducing leverage to 3.9x net debt-to-adjusted EBITDA, below its target range.
For a deeper dive into NHI’s earnings trends and future estimates, see the earnings estimates page.
Disclaimer: This article is for informational purposes only and does not constitute investment advice.
