MURFREESBORO, TN - National Health Investors, Inc. (NYSE:NHI), a real estate investment trust (REIT) specializing in senior housing and medical investments, announced today the launch of an underwritten public offering of 2 million shares of its common stock. The shares will be offered on a forward basis through agreements with BofA Securities, J.P. Morgan, Wells Fargo Securities, and BMO Capital Markets, acting as joint book-running managers.
The underwriters also have a 30-day option to purchase up to an additional 300,000 shares from the forward purchasers. These forward purchasers or their affiliates are expected to borrow and sell to the underwriters all of the shares that will be delivered in the offering.
National Health Investors will not initially receive any proceeds from the sale of shares. Instead, the company plans to settle the forward sale agreements with physical delivery of the shares within twelve months from the date of the prospectus supplement. At settlement, the company will receive cash proceeds per share equal to the forward sale price, adjusted as stipulated in the agreements.
The REIT intends to use the net proceeds from this transaction for general corporate purposes, which may include property acquisitions, debt repayment, and mortgage investments. The offering is part of a shelf registration statement and will be conducted through a preliminary prospectus supplement and the related prospectus.
In other recent news, National Health Investors (NHI) has outperformed Q2 expectations, marking the fourth consecutive quarter of surpassing projections. The company reported a substantial increase in net operating income (NOI) for its senior housing operating portfolio and raised its full-year guidance based on these robust results.
National Health Investors recorded a 39.9% year-over-year increase in NOI. The company also closed $56.6 million in investments this year and has a pipeline of over $1.8 billion. Based on these strong results, NHI has revised its 2024 guidance, projecting normalized Funds from Operations (FFO) per share growth of 4.8% and Funds Available for Distribution (FAD) growth of 7%.
NHI reported a net income per diluted common share of $0.81, with NAREIT and normalized FFO results per diluted common share both at $1.18, and FAD of $51.8 million.
The real estate investment trust also has significant liquidity, with $500 million in available ATM capacity and $455.5 million in available capacity under its revolver. NHI is focusing on external growth opportunities, including RIDEA transactions, and is selective in evaluating potential investments.
InvestingPro Insights
National Health Investors, Inc. (NHI), with its recent announcement of a public offering, is a company that has caught the attention of investors for its stability and consistent performance in the real estate investment trust sector. According to InvestingPro data, NHI boasts a market capitalization of approximately $3.24 billion and has demonstrated a strong revenue growth of 6.44% over the last twelve months as of Q2 2024. This growth is further highlighted by a quarterly revenue increase of 9.41% in Q2 2024, showcasing the company's ability to expand its financials steadily.
An InvestingPro Tip that stands out for potential investors is NHI's impressive track record of maintaining dividend payments for 34 consecutive years, reflecting a solid commitment to shareholder returns. This is complemented by a healthy dividend yield of 4.84%, which is particularly appealing to income-focused investors. Moreover, the company's stock has experienced a significant price uptick over the last six months, with a 45.01% total return, indicating robust market confidence in its performance and growth prospects.
For those considering an investment in National Health Investors, it's worth noting that the company is currently trading near its 52-week high, with a price 97.46% of the peak. This could suggest a strong market sentiment towards the stock. For more detailed analysis and additional InvestingPro Tips, interested parties can explore the full suite of insights available at https://www.investing.com/pro/NHI, which includes a total of 9 tips for NHI.
The company's strategic use of proceeds from the public offering for potential property acquisitions and debt repayment aligns with its long-term growth strategy. With analysts predicting profitability for the year and a solid performance over the last twelve months, NHI presents itself as a potentially strong candidate for investors' portfolios.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.