NHI CEO: Our Growing Investment Pipeline Will Fuel Years of ‘Exceptional Growth’
National Health Investors (NYSE: NHI) is gearing up for increased investments this year, driven by a more favorable cost of capital and narrower bid-ask spreads. CEO Eric Mendelsohn shared that the company has closed on $56.6 million in investments in 2024 and has letters of intent for deals worth $155.4 million.
Mendelsohn expressed optimism during an earnings call, stating that they are in the early stages of exceptional growth with external investments expected to drive cash-flow growth. As of the second quarter, NHI owned 194 properties, with a focus on senior housing communities.
With a pipeline of potential opportunities valued at $1.8 billion, NHI is exploring various growth avenues, including joint-venture portfolio deals. While deal flow remains strong, the REIT is cautious and aims for thorough scrutiny before committing to significant transactions.
Additionally, NHI continues to concentrate on its SHOP segment, targeting improvements in occupancy and margins. The company anticipates reducing move-in incentives as occupancy nears 90%, leading to enhanced operating leverage and profitability.
