At National Health Investors, it seems to be all about SHOP, SHOP, SHOP. Although it is a small portfolio at just 15 properties, it is becoming mighty. September’s occupancy was 89.1%, compared with 81.2% a year ago, representing a 790-basis point increase. From July 2023, the increase was 1190 basis points. It is now the highest occupancy portfolio of the major property groups for NHI. The sequential increase from August was 60 basis points.
The SHOP NOI increased 30.4% year over year and represents the highest quarterly result since the portfolio’s formation in April 2022. As we have written previously, SHOP portfolios are performing well, and REITs are expanding them.
All is not fabulous at NHI , however, as at least one portfolio (Senior Living Management) is still having troubles at some of its communities. As of October 1, four properties leased to SLM were transitioned out of the leases, one to a new operator and three to interim management agreements.
The REIT is growing, having closed $205.6 million in new investments this year with an average yield of 8.4%. In addition, they have signed LOIs for another $59.8 million with an average yield of 8.8%, plus a pipeline of potentially $350 million of acquisitions, excluding portfolio deals. And, they are providing $27.7 million in construction debt for an inpatient rehab facility in Lake City, Florida at an interest rate of 9.0%. Growth here we come.
