NHI Announces $107.7 Million SHOP Investment

The acquired communities are expected to yield approximately 6.6% after routine capital expenditures.

Rhea-AI Summary

National Health Investors (NYSE:NHI) invested $107.7 million, including transaction costs, to acquire six senior housing properties with 443 units.

The properties in Kentucky, Michigan and Tennessee will join its Senior Housing Operating Portfolio (SHOP), managed by Allegro Living Management. NHI expects another $2.3 million investment during the first year and an initial net operating income yield of approximately 7.0%, or 6.6% after routine capital expenditures.

NHI has approximately $164.3 million in opportunities under signed letters of intent and approximately $51.7 million under real estate purchase options. It expects to use NHC portfolio sale exchange proceeds for a significant portion; completed exchanges are expected to defer a substantial portion of the sale's taxable gain. NHI is also evaluating approximately $285 million in investments, excluding portfolio deals.

4 points · 0 major

MixediHow this balance works

How this balance works

Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.

It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.

Rhea-AI Sentiment measures something else, the tone of the wording.

How the balance worksHow Sentiment works

0 major · 3 points

Hollow bars mark forward-looking points. How the balance works

Positive

• Moderate pointSix properties with 443 units acquired for $107.7 million, including transaction costs, expand SHOP. 3.3% of market cap
• Moderate point. Forward-looking: it has not happened yet and may not happen.NHI expects completed exchanges to defer a substantial portion of taxable gain from the NHC portfolio sale.
• Moderate point. Forward-looking: it has not happened yet and may not happen.NHI is evaluating approximately $285 million in additional investments, excluding portfolio deals.
• Minor point. Forward-looking: it has not happened yet and may not happen.Initial net operating income yield expected at approximately 7.0%, or 6.6% after routine capital expenditures.

Negative

• Moderate pointApproximately $164.3 million in opportunities remain under signed letters of intent, rather than completed acquisitions. 5.1% of market cap
• Moderate pointApproximately $51.7 million in opportunities are subject to real estate purchase options. 1.6% of market cap
• Minor point. Forward-looking: it has not happened yet and may not happen.Additional investment of $2.3 million expected during the first year.

Key Figures

Acquisition investment: $107.7 million Properties and units: 6 properties; 443 units Additional investment: $2.3 million +5 more

Acquisition investment

$107.7 million

Six-property acquisition, including transaction costs

Properties and units

6 properties; 443 units

Acquired across Kentucky, Michigan and Tennessee

Additional investment

$2.3 million

Expected during the first year

Initial NOI yield

7.0%

Expected initial yield

NOI yield after capital expenditures

6.6%

After routine capital expenditures

Signed LOI opportunities

$164.3 million

Current investment opportunities under signed letters of intent

Real estate purchase options

$51.7 million

Opportunities pursuant to purchase options

Investment pipeline

$285 million

Evaluated investments; excludes portfolio deals

Historical Context

1 past event · Latest: Sep 14

1 event

1. Sep 14

   Investment pipeline update

   24h Move

   -1.5%

   Reported prior signed LOIs, purchase options, and a SHOP-focused pipeline using Section 1031 proceeds.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

noi, loi, section 1031 exchange, sale-leasebacks

4 terms

noi financial

"initial NOI yield of approximately 7.0%"

Net operating income (NOI) is the total profit a business makes from its core operations, after subtracting expenses directly related to running the business but before accounting for taxes, interest, or investments. It shows how well the company’s main activities generate earnings and helps investors assess its financial health and profitability without the influence of external factors. Think of it as the money a store earns from sales minus the costs to keep it open.

loi financial

"under signed Letters of Intent ("LOI")"

A letter of intent (LOI) is a short, nonbinding written note that outlines the basic terms two parties expect to follow when pursuing a deal such as an acquisition, partnership, or major contract. Like a handshake that records the main points before lawyers write the formal agreement, an LOI signals deal intent, timelines and key conditions — information investors use to gauge potential changes to a company’s value, while remembering the agreement can still change.

section 1031 exchange financial

"proceeds from the Section 1031 exchange transaction"

A section 1031 exchange is a U.S. tax rule that lets real estate investors swap one investment property for another and delay paying capital gains tax, as long as certain timing and property-type rules are followed. It matters to investors because it preserves more capital for reinvestment—like trading up to a bigger or better property without cashing out and triggering an immediate tax bill—helping with portfolio growth, diversification, and tax-efficient estate planning.

sale-leasebacks financial

"which include SHOP, sale-leasebacks and loans"

A sale-leaseback is a financial move where a company sells an asset it owns—often real estate or equipment—and then rents the same asset from the new owner, like selling your house and signing a long-term lease to keep living there. Investors care because it converts tied-up assets into immediate cash, which can fund growth or pay debt, but it also adds ongoing rental expenses and removes ownership from the balance sheet, affecting future cash flow and risk.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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MURFREESBORO, Tenn., Oct. 1, 2026  /PRNewswire/ -- National Health Investors, Inc. (NYSE:NHI) announced today that it invested $107.7 million, including transaction costs, for the acquisition of six properties with 443 units in Kentucky, Michigan and Tennessee.  NHI expects to make an additional investment of $2.3 million during the first year. 

The properties and healthcare operations will be included in NHI's Senior Housing Operating Portfolio ("SHOP") segment and will be managed by Allegro Living Management, an affiliate of Allegro Living which is an existing relationship for NHI.  The communities are expected to generate an initial NOI yield of approximately 7.0% and 6.6% after routine capital expenditures.

Investment Activity and Pipeline

• The Company currently has approximately $164.3 million of investment opportunities under signed Letters of Intent ("LOI") and approximately $51.7 million pursuant to real estate purchase options.  The Company expects to utilize the proceeds from the Section 1031 exchange transaction initiated by the NHC portfolio sale for a significant portion of these opportunities.  If completed, these exchanges are expected to defer recognition of a substantial portion of the taxable gain arising from the NHC portfolio sale.
• In addition to the signed LOIs, the Company is currently evaluating a pipeline of approximately $285 million in investments which include SHOP, sale-leasebacks and loans with purchase options primarily for senior housing properties. The pipeline excludes portfolio deals.

About National Health Investors, Inc.
National Health Investors, Inc. (NYSE: NHI), established in 1991 as a Maryland corporation, is a self-managed real estate investment trust ("REIT"). The Company owns, leases, operates and finances the development of high-quality real estate properties, focusing on senior housing communities and medical facilities. The Company operates through two reportable segments: Real Estate Investments and SHOP. The Company's investments in real estate properties include independent living facilities, assisted living facilities, entrance-fee communities, senior living campuses, skilled nursing facilities and hospitals. For more information, visit www.nhireit.com.

Forward-Looking Statements

This press release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements regarding the Company's expected future financial positions, results of operations, cash flows, funds from operations, dividend and dividend plans, financing opportunities and plans, capital market transactions, business strategy, budgets, projected costs, operating metrics, capital expenditures, competitive positions, acquisitions, investment opportunities, dispositions, acquisition integration, growth opportunities, expected rental income, continued qualification as a REIT, plans and objectives of management for future operations, continued performance improvements, ability to service and refinance debt obligations, ability to finance growth opportunities, and similar statements including, without limitation, those containing words such as "may", "will", "should", "believes", "anticipates", "expects", "intends", "estimates", "plans", "projects", "target", "likely" and other similar expressions are forward-looking statements. Forward-looking statements involve known and unknown risks and uncertainties that may cause the actual results in future periods to differ materially from those projected or contemplated in the forward-looking statements. Such risks and uncertainties include those risks and uncertainties which are described under the heading "Risk Factors" in Item 1A of the Company's Annual Report on Form 10-K for the year ended December 31, 2025 and the Company's the Quarterly Report on Form 10-Q for the quarter ended June 30, 2026. Many of these factors are beyond the control of the Company and its management. The Company assumes no obligation to update any forward-looking statements, except as required by law, and these statements speak only as of the date on which they are made. Investors are urged to carefully review and consider the various disclosures made by the Company in its periodic reports filed with the Securities and Exchange Commission ("SEC"), including the risk factors and other information in the above referenced Annual Report on Form 10-K and Quarterly Report on Form 10-Q. Copies of these filings are available at no cost on the SEC's website at https://www.sec.gov or on the Company's website at www.nhireit.com.

Contact: Dana Hambly, Vice President, Investor Relations
Phone: (615) 890-9100

 

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SOURCE National Health Investors, Inc.

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What properties did NHI acquire in its $107.7 million SHOP investment?

NHI acquired six properties with 443 units in Kentucky, Michigan and Tennessee for $107.7 million, including transaction costs. The properties and healthcare operations will be included in its Senior Housing Operating Portfolio and managed by Allegro Living Management.

What investments are included in NHI's approximately $285 million pipeline?

The pipeline includes SHOP investments, sale-leasebacks and loans with purchase options, primarily for senior housing properties. It is being evaluated in addition to the signed letters of intent and excludes portfolio deals.