National Health Investors Accelerates Growth in Senior Housing Market

National Health Investors (NHI), a real estate investment trust (REIT), is significantly expanding its holdings in senior living properties. The company recently finalized a major acquisition, underscoring a focused growth strategy within the Senior Housing Operating Portfolio (SHOP) sector. This move raises questions about whether shareholder returns can keep pace with management's ambitious expansion goals.

The REIT has completed the purchase of nine properties for a total investment of $105.5 million, inclusive of transaction costs. These assets, located across Kentucky, South Carolina, and Tennessee, add 460 units to NHI's portfolio. Allegro Living Management will assume operational control of the facilities.

An initial net operating income (NOI) yield of approximately 8.0% is anticipated from this investment. Following standard capital expenditure allocations for maintenance, the stabilized yield is projected to settle around 7.6%. NHI has also budgeted for an additional $3.3 million in capital improvements during the first year of ownership.

Building a Robust Pipeline for Future Growth

This transaction is not an isolated event but part of a deliberate capital deployment plan. The company's growth pipeline appears substantial:

Should investors sell immediately? Or is it worth buying National Health Investors?

• Signed Agreements: Letters of intent (LOI) are already in place for deals worth approximately $108.5 million, targeting an average yield of 7.5%.
• Active Evaluation: NHI is currently reviewing further opportunities valued at roughly $250 million, with a continued emphasis on single-asset senior housing properties.
• Long-Term Target: Management has set a strategic objective for the SHOP segment to contribute a minimum of 20% to the company's total net operating income by 2026.

This expansion follows a period of active capital management. In December 2025, the company announced investments totaling $89.2 million. To fund its growth initiatives and reduce leverage, NHI successfully issued $350 million in senior notes due 2033 back in September 2025.

Upcoming Financial Report to Provide Clarity

The confidence displayed through these acquisitions builds upon an already optimistic outlook. In the third quarter of 2025, NHI raised its full-year guidance, reflecting positive momentum in the senior living real estate sector.

Investors will gain detailed insight into the financial impact of this accelerated investment activity later this month. National Health Investors is scheduled to release its fourth-quarter and full-year 2025 results after the U.S. market closes on Thursday, February 26, 2026. A conference call with analysts will follow on Friday, February 27.