National Health Investors To Sell NHC Portfolio for $560 Million

Overview of the Transaction

On April 21, 2026, National Health Investors, Inc. (NHI) announced a significant sale agreement involving its portfolio, which includes 32 skilled nursing facilities and three independent living facilities, to National HealthCare Corporation (NHC) for a reported $560 million. This agreement underscores NHI’s strategic shift toward private-pay senior housing and aims to bolster its financial health.

Financial Implications

The sale is expected to incur transaction costs ranging from $6 million to $8 million, with a closing date anticipated for July 1, 2026, pending customary closing conditions. Following the transaction, NHI’s skilled nursing investment exposure will decrease to approximately 12.2% of total investments, while its focus on private-pay senior housing is projected to represent around 22% of total investments and 13.8% of annualized net operating income (NOI) on a pro forma basis.

Strengthening the Balance Sheet

This strategic move is designed to enhance NHI's balance sheet significantly. Following this transaction, net debt-to-annualized EBITDA is expected to decline to approximately 2.3x, while available liquidity should expand to about $1.4 billion. These metrics illustrate the company's strengthened financial foundation and its capacity for future investments.

Capital Recycling and Governance Enhancements

NHI's CEO, Eric Mendelsohn, expressed optimism regarding the portfolio sale, highlighting its potential to accelerate the company’s capital recycling strategy by providing substantial capital for reinvestment. Additionally, the transaction is set to improve corporate governance by mitigating any potential conflicts of interest, particularly in light of the pending departures of certain board members.

Future Outlook

The funds from this sale are intended to pay off outstanding debt and support future investment opportunities in line with NHI's capital allocation strategy. The company plans to keep its stakeholders informed about subsequent developments in its financial status during their next earnings release.

Key Takeaways

NHI plans to sell its portfolio of skilled nursing and independent living facilities to NHC for $560 million.

The transaction aims to shift focus towards private-pay senior housing and improve overall financial health.

NHI expects a reduction in skilled nursing exposure and an increase in liquidity post-sale.

The sale is scheduled to close on July 1, 2026, pending customary conditions.

Proceeds will be utilized to pay down debt and invest in new opportunities, reinforcing NHI's capital strategy.