NHI earnings analysis
What we found in NHI's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
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.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- 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%.
- 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.
- 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.
- 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.
- 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.
- 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.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- 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.
- 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.
- 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%.
- 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.
- 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.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $1.15
- Gross margin
- 100.0%
- Segment
- Real Estate Investments: Q2 revenue $76.540 million; Q2 NOI $73.798 million.
- Segment
- SHOP: Q2 revenue $44.779 million; Q2 NOI $11.022 million.
- Segment
- Non-segment/corporate: Q2 revenue $0; Q2 net loss $(25.960) million.
What they said about what is next.
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.
The filing reads better than the one before it.
What came before.
- 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…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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