10-Q · May 4, 2026
National Health Investors, Inc. reported a significant increase in revenue and net income in Q1 2026, driven largely by new acquisitions and improved operational metrics. The company’s revenue rose to $115.1 million, a…
Earnings analysis · 10-Q
NHI earnings analysis
Filed August 10, 2026 · Our reading of the company's report
The latest report
NHI delivered strong Q2 growth, with revenue of $121.319 million and diluted EPS of $1.15, both materially above the prior-year period; revenue also exceeded consensus, although EPS missed the $1.26 estimate. Growth was…
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NHI delivered strong Q2 growth, with revenue of $121.319 million and diluted EPS of $1.15, both materially above the prior-year period; revenue also exceeded consensus, although EPS missed the $1.26 estimate. Growth was driven primarily by the SHOP portfolio, while Real Estate Investments remained broadly stable. Operating cash flow improved to $118.413 million for the first six months, and the July 1 sale of 35 NHC properties for $560.0 million materially increased liquidity. Offsetting concerns include higher debt, variable-rate exposure, declining SHOP occupancy and ongoing Bickford credit risk.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
Reported figures
- Earnings per share
- $1.15
- Gross margin
- 100.0%
What stood out
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Revenue Accelerated and Beat Consensus
Q2 revenue was $121.319 million, up $6.319 million, or 5.5%, from $115.000 million in Q1 2026 and up $30.657 million, or 33.8%, year over year. Revenue exceeded the $113.609 million consensus estimate by $7.710 million, or 6.8%.
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EPS Rose Sharply Year Over Year
Diluted EPS was $1.15, up $0.33, or 40.2%, from $0.82 in Q1 2026 and up $0.36, or 45.6%, from $0.79 in Q2 2025. EPS was $0.11 below the $1.26 consensus estimate.
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SHOP Scale Drove Segment Growth
SHOP revenue increased to $44.779 million from $14.217 million year over year, while SHOP NOI rose to $11.022 million from $3.821 million. Management attributed the increase to acquisitions and seven properties transitioned into SHOP in August 2025.
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Real Estate Investments Remained Stable
Real Estate Investments revenue was $76.540 million versus $76.445 million year over year, while NOI increased to $73.798 million from $73.531 million. Rental income increased 1.6% to $71.390 million, supported by acquisitions and annual rent escalators.
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Operating Cash Flow Improved
Six-month operating cash flow increased 11.4% to $118.413 million from $106.295 million. Investment spending totaled $241.018 million, consisting primarily of $229.886 million of acquisitions and $11.132 million of investments in existing real estate and equipment.
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Large NHC Disposition Increased Liquidity
NHI completed the sale of 35 NHC-leased properties on July 1, 2026 for $560.0 million in cash consideration. The portfolio had an aggregate net carrying value of $13.6 million at June 30, 2026, creating substantial liquidity for redeployment or balance-sheet management.
What to watch
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Redeployment Risk After NHC Sale
The 10-Q added a specific risk that NHI may not redeploy the NHC proceeds at comparable returns. The company received $560.0 million in cash for 35 properties and stated that suitable investments, market conditions, competition and cost of capital could prevent comparable returns.
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Higher Leverage and Rate Exposure
Debt, net increased to $1.275 billion from $1.164 billion at December 31, 2025, an increase of $110.708 million. Variable-rate debt was $438.0 million, and management estimates that a 50-basis-point rate increase would raise annual interest expense by approximately $2.2 million.
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Bickford Credit and Collection Risk
Bickford remains a cash-basis tenant, and management said concerns about its ability to continue as a going concern had not been alleviated. Bickford had $15.899 million of mortgage and other notes outstanding, including a $14.7 million construction loan, while its Q2 occupancy was 84.7%.
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SHOP Occupancy Declined
SHOP occupancy declined to 85.9% in Q2 2026 from 86.6% in Q1 2026 and 89.1% in Q2 2025. The decline increases operating sensitivity because SHOP senior housing operating expenses were $33.757 million in Q2, up from $10.396 million year over year.
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Weak Loan Coverage Concentration
The mortgage and other notes portfolio included $53.672 million of mortgage notes and $9.795 million of mezzanine loans with coverage below 1.0x. Total credit loss reserves were $15.264 million, despite a $0.133 million credit loss benefit during the first six months.
Management's outlook
No numeric revenue or EPS guidance was provided in the 10-Q. Management expects operating cash flows to fund dividends at the current rate and believes liquidity is sufficient for short- and long-term commitments. Management also expects to redeploy proceeds from the NHC disposition, but provided no quantitative outlook.
Earlier filings 1
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.