NHI reports $562.7 million quarterly profit after NHC sale

The Murfreesboro, Tennessee-based real estate investment trust said NAREIT funds from operations (FFO) rose 2.8% to $1.12 per diluted share for the quarter ended Sept. 30, compared with $1.09 a year earlier. Normalized FFO, however, fell 15.2%, to $1.12 per diluted share from $1.32. Normalized funds available for distribution declined $5.1 million to $57.1 million.

NHI recorded the NHC portfolio sale on July 1. The 35-property portfolio consisted of 32 skilled nursing facilities and three independent living facilities. The company received $560 million in cash consideration, paid $5.3 million in closing costs and recognized a $541.6 million gain. Across the first nine months of 2026, it sold 42 properties for net proceeds of $672.1 million and reported $567.5 million in gains on real estate dispositions.

The company’s senior housing operating portfolio also expanded. Acquisitions of 20 properties lifted resident fees and services, less senior housing operating expenses, by $6.6 million in the quarter and $19.6 million over nine months. NHI said it had closed more than $395 million in investments year to date and expected additional investments before year-end. Its pipeline included about $285.3 million of opportunities under signed letters of intent, primarily in senior housing, with an expected average initial net operating income yield of about 6.5%. Another roughly $400 million of potential investments was under evaluation.

At Sept. 30, NHI reported $1.0 billion in consolidated net debt, including $203 million drawn on its $700 million revolving credit facility. It also had $46.6 million in cash, $231.7 million in restricted cash and $108.3 million deposited for future acquisitions. The company said its net-debt-to-annualized-adjusted-EBITDA ratio was 3.6 times, within its target range of 3.5 to 4.5 times, and that it complied with all debt covenants.

The board declared a dividend of $0.94 per share on Nov. 6, payable Jan. 29, 2027, to shareholders of record Dec. 31. NHI’s 2026 guidance calls for diluted NAREIT and normalized FFO of $4.68 to $4.70 per share. The company said the forecast assumes $190 million in unidentified new investments, among other conditions. Its third-quarter results call was scheduled for Nov. 10, 2026.