(Mark One) | |||||||||||||||||
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |||||||||||||||||
For the quarterly period ended | |||||||||||||||||
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |||||||||||||||||
For the transition period from | _____________ | to | _____________ |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | ||||||||||
(Address of principal executive offices) | (Zip Code) |
(Registrant’s telephone number, including area code) |
Title of each Class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
☒ | Accelerated filer | ☐ | |||||||||||||||
Non-accelerated filer | ☐ | Smaller reporting company | |||||||||||||||
Emerging growth company |
Page | |||||
March 31, 2024 | December 31, 2023 | ||||||||||
(unaudited) | |||||||||||
Assets: | |||||||||||
Real estate properties: | |||||||||||
Land | $ | $ | |||||||||
Buildings and improvements | |||||||||||
Construction in progress | |||||||||||
Less accumulated depreciation | ( | ( | |||||||||
Real estate properties, net | |||||||||||
Mortgage and other notes receivable, net of reserve of $ | |||||||||||
Cash and cash equivalents | |||||||||||
Straight-line rent receivable | |||||||||||
Assets held for sale, net | |||||||||||
Other assets, net | |||||||||||
Total Assets(a) | $ | $ | |||||||||
Liabilities and Stockholders’ Equity: | |||||||||||
Debt | $ | $ | |||||||||
Accounts payable and accrued expenses | |||||||||||
Dividends payable | |||||||||||
Deferred income | |||||||||||
Total Liabilities(a) | |||||||||||
Commitments and contingencies | |||||||||||
Redeemable noncontrolling interest | |||||||||||
National Health Investors, Inc. Stockholders’ Equity: | |||||||||||
Common stock, $ | |||||||||||
Capital in excess of par value | |||||||||||
Retained earnings | |||||||||||
Cumulative dividends | ( | ( | |||||||||
Total National Health Investors, Inc. Stockholders’ Equity | |||||||||||
Noncontrolling interests | |||||||||||
Total Equity | |||||||||||
Total Liabilities and Equity | $ | $ |
Three Months Ended | |||||||||||
March 31, | |||||||||||
2024 | 2023 | ||||||||||
(unaudited) | |||||||||||
Revenues: | |||||||||||
Rental income | $ | $ | |||||||||
Resident fees and services | |||||||||||
Interest income and other | |||||||||||
Expenses: | |||||||||||
Depreciation | |||||||||||
Interest | |||||||||||
Senior housing operating expenses | |||||||||||
Legal | |||||||||||
Franchise, excise and other taxes | ( | ||||||||||
General and administrative | |||||||||||
Taxes and insurance on leased properties | |||||||||||
Loan and realty losses (gains) | ( | ||||||||||
Gains on sales of real estate, net | |||||||||||
Gains from equity method investment | |||||||||||
Net income | |||||||||||
Add: net loss attributable to noncontrolling interests | |||||||||||
Net income attributable to stockholders | |||||||||||
Less: net income attributable to unvested restricted stock awards | ( | ||||||||||
Net income attributable to common stockholders | $ | $ | |||||||||
Weighted average common shares outstanding: | |||||||||||
Basic | |||||||||||
Diluted | |||||||||||
Earnings per common share - basic | $ | $ | |||||||||
Earnings per common share - diluted | $ | $ |
Three Months Ended | |||||||||||
March 31, | |||||||||||
2024 | 2023 | ||||||||||
(unaudited) | |||||||||||
Cash flows from operating activities: | |||||||||||
Net income | $ | $ | |||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Depreciation | |||||||||||
Amortization of debt issuance costs, debt discounts and prepaids | |||||||||||
Amortization of commitment fees and note receivable discounts | ( | ( | |||||||||
Amortization of lease incentives | |||||||||||
Straight-line rent adjustments | ( | ||||||||||
Non-cash rental income | ( | ||||||||||
Non-cash interest income on mortgage and other notes receivable | ( | ( | |||||||||
Gains on sales of real estate, net | ( | ( | |||||||||
Gains from equity method investment | ( | ||||||||||
Loan and realty losses (gains) | ( | ||||||||||
Payment of lease incentive | ( | ||||||||||
Non-cash share-based compensation | |||||||||||
Changes in operating assets and liabilities: | |||||||||||
Other assets, net | ( | ( | |||||||||
Accounts payable and accrued expenses | ( | ( | |||||||||
Deferred income | ( | ( | |||||||||
Net cash provided by operating activities | |||||||||||
Cash flows from investing activities: | |||||||||||
Investments in mortgage and other notes receivable | ( | ( | |||||||||
Collections of mortgage and other notes receivable | |||||||||||
Acquisitions of real estate | ( | ||||||||||
Proceeds from sales of real estate | |||||||||||
Investments in renovations of existing real estate | ( | ( | |||||||||
Investments in equipment | ( | ( | |||||||||
Distributions from equity method investment | |||||||||||
Net cash used in investing activities | ( | ( | |||||||||
Cash flows from financing activities: | |||||||||||
Proceeds from revolving credit facility | |||||||||||
Payments on revolving credit facility | ( | ( | |||||||||
Payments on term loans | ( | ( | |||||||||
Distributions to noncontrolling interests | ( | ( | |||||||||
Dividends paid to stockholders | ( | ( | |||||||||
Proceeds from noncontrolling interest | |||||||||||
Net cash used in financing activities | ( | ( | |||||||||
Decrease in cash and cash equivalents and restricted cash | ( | ( | |||||||||
Cash and cash equivalents and restricted cash, beginning of period | |||||||||||
Cash and cash equivalents and restricted cash, end of period | $ | $ |
Three Months Ended | |||||||||||
March 31, | |||||||||||
2024 | 2023 | ||||||||||
(unaudited) | |||||||||||
Supplemental disclosure of cash flow information: | |||||||||||
Interest paid, net of amounts capitalized | $ | $ | |||||||||
Supplemental disclosure of non-cash investing and financing activities: | |||||||||||
Real estate acquired in exchange for mortgage note receivable | $ | $ | |||||||||
Change in accounts payable related to renovations of existing real estate | $ | $ | |||||||||
Change in accounts payable related to distributions to noncontrolling interests | $ | $ | |||||||||
Reclassification of prepaid equity issuance costs to capital in excess of par value | $ | $ | |||||||||
Common Stock | Capital in Excess of Par Value | Retained Earnings | Cumulative Dividends | Total National Health Investors, Inc. Stockholders’ Equity | Noncontrolling Interests | Total Equity | |||||||||||||||||||||||||||||||||||||||||
Shares | Amount | ||||||||||||||||||||||||||||||||||||||||||||||
Balances at December 31, 2023 | $ | $ | $ | $ | ( | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||
Distributions declared to noncontrolling interests, excluding $ | — | — | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||||||||||||
Net income, excluding a loss of $ | — | — | — | — | ( | ||||||||||||||||||||||||||||||||||||||||||
Grants of restricted stock | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Share-based compensation | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
Dividends declared, $ | — | — | — | — | ( | ( | — | ( | |||||||||||||||||||||||||||||||||||||||
Balances at March 31, 2024 | $ | $ | $ | $ | ( | $ | $ | $ |
Common Stock | Capital in Excess of Par Value | Retained Earnings | Cumulative Dividends | Total National Health Investors Stockholders’ Equity | Noncontrolling Interests | Total Equity | |||||||||||||||||||||||||||||||||||||||||
Shares | Amount | ||||||||||||||||||||||||||||||||||||||||||||||
Balances at December 31, 2022 | $ | $ | $ | $ | ( | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||
Noncontrolling interests capital contribution | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Distributions declared to noncontrolling interests | — | — | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||||||||||||
Net income, excluding a loss of $ | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||
Equity issuance cost | — | — | ( | — | — | ( | — | ( | |||||||||||||||||||||||||||||||||||||||
Share-based compensation | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
Dividends declared, $ | — | — | — | — | ( | ( | — | ( | |||||||||||||||||||||||||||||||||||||||
Balances at March 31, 2023 | $ | $ | $ | $ | ( | $ | $ | $ |
March 31, 2024 | March 31, 2023 | ||||||||||
Beginning of period: | |||||||||||
Cash and cash equivalents | $ | $ | |||||||||
Restricted cash (included in Other assets, net) | |||||||||||
Cash, cash equivalents, and restricted cash | $ | $ | |||||||||
End of period: | |||||||||||
Cash and cash equivalents | $ | $ | |||||||||
Restricted cash (included in Other assets, net) | |||||||||||
Cash, cash equivalents, and restricted cash | $ | $ |
As of March 31, 2024 | Revenues1 | |||||||||||||||||||||||||||||||||||||
Asset | Gross Real | Notes | Three Months Ended March 31, | |||||||||||||||||||||||||||||||||||
Class | Estate2 | Receivable | 2024 | 2023 | ||||||||||||||||||||||||||||||||||
Senior Living Communities, LLC (“Senior Living”) | EFC | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||
National HealthCare Corporation (“NHC”) | SNF | |||||||||||||||||||||||||||||||||||||
Bickford | ALF | |||||||||||||||||||||||||||||||||||||
All others, net | Various | |||||||||||||||||||||||||||||||||||||
Escrow funds received from tenants | ||||||||||||||||||||||||||||||||||||||
for property operating expenses | Various | — | — | |||||||||||||||||||||||||||||||||||
$ | $ | |||||||||||||||||||||||||||||||||||||
Resident fees and services3 | ||||||||||||||||||||||||||||||||||||||
$ | $ |
Three Months Ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
Current year | $ | $ | |||||||||
Prior year final certification1 | |||||||||||
Total percentage rent income | $ | $ |
Three Months Ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
Bickford1 | $ | $ | |||||||||
All others | |||||||||||
Total rental income from cash basis operators | $ | $ |
Remainder of 2024 | $ | ||||
2025 | |||||
2026 | |||||
2027 | |||||
2028 | |||||
2029 | |||||
Thereafter | |||||
$ |
Three Months Ended | |||||||||||
March 31, | |||||||||||
2024 | 2023 | ||||||||||
Lease payments based on fixed escalators | $ | $ | |||||||||
Lease payments based on variable escalators | |||||||||||
Straight-line rent, net of write-offs | ( | ||||||||||
Escrow funds received from tenants for property operating expenses | |||||||||||
Amortization of lease incentives | ( | ( | |||||||||
Rental income | $ | $ |
2024 | 2023 | 2022 | 2021 | 2020 | Prior | Total | |||||||||||||||||
Mortgages | |||||||||||||||||||||||
more than 1.5x | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||
between 1.0x and 1.5x | |||||||||||||||||||||||
less than 1.0x | |||||||||||||||||||||||
Mezzanine | |||||||||||||||||||||||
more than 1.5x | |||||||||||||||||||||||
between 1.0x and 1.5x | |||||||||||||||||||||||
less than 1.0x | |||||||||||||||||||||||
Non-performing | |||||||||||||||||||||||
between 1.0x and 1.5x | |||||||||||||||||||||||
less than 1.0x | |||||||||||||||||||||||
Revolver | |||||||||||||||||||||||
more than 1.5x | |||||||||||||||||||||||
between 1.0x and 1.5x | |||||||||||||||||||||||
Credit loss reserve | ( | ||||||||||||||||||||||
$ |
Beginning balance at January 1, 2024 | $ | ||||
Provision for expected credit losses | ( | ||||
Balance at March 31, 2024 | $ |
March 31, 2024 | December 31, 2023 | ||||||||||
SHOP accounts receivable, net of allowance of $ | $ | $ | |||||||||
Real estate investments accounts receivable and prepaid expenses | |||||||||||
Lease incentive payments, net | |||||||||||
Regulatory escrows | |||||||||||
Restricted cash | |||||||||||
$ | $ |
March 31, 2024 | December 31, 2023 | ||||||||||
Revolving credit facility - unsecured | $ | $ | |||||||||
Bank term loans - unsecured | |||||||||||
2031 Senior Notes - unsecured, net of discount of $ | |||||||||||
Private placement notes - unsecured | |||||||||||
Fannie Mae term loans - secured, non-recourse | |||||||||||
Unamortized loan costs | ( | ( | |||||||||
$ | $ |
Remainder of 2024 | $ | ||||
2025 | |||||
2026 | |||||
2027 | |||||
2028 | |||||
2029 | |||||
Thereafter | |||||
Less: discount | ( | ||||
Less: unamortized loan costs | ( | ||||
$ |
Amount | Inception | Maturity | Fixed Rate | |||||||||||||||||
$ | September 2016 | September 2024 | ||||||||||||||||||
November 2015 | November 2025 | |||||||||||||||||||
January 2015 | January 2027 | |||||||||||||||||||
$ |
Three Months Ended | |||||||||||
March 31, | |||||||||||
2024 | 2023 | ||||||||||
Interest expense on debt at contractual rates | $ | $ | |||||||||
Capitalized interest | ( | ( | |||||||||
Amortization of debt issuance costs, debt discount and other | |||||||||||
Total interest expense | $ | $ |
Beginning balance January 1, 2024 | $ | ||||
Provision for expected credit losses | |||||
Balance at March 31, 2024 | $ |
Three Months Ended | |||||
March 31, 2024 | |||||
Balance at January 1, | $ | ||||
Net loss | ( | ||||
Distributions | ( | ||||
Balance at March 31, | $ |
Three Months Ended March 31, 2024 | ||||||||||||||||||||
Date of Declaration | Date of Record | Date Paid/Payable | Quarterly Dividend | |||||||||||||||||
November 3, 2023 | December 29, 2023 | January 26, 2024 | $ | |||||||||||||||||
February 16, 2024 | March 28, 2024 | May 3, 2024 | $ | |||||||||||||||||
Three Months Ended March 31, 2023 | ||||||||||||||||||||
Date of Declaration | Date of Record | Date Paid/Payable | Quarterly Dividend | |||||||||||||||||
November 6, 2022 | December 30, 2022 | January 27, 2023 | $ | |||||||||||||||||
February 17, 2023 | March 31, 2023 | May 5, 2023 | $ | |||||||||||||||||
2024 | 2023 | ||||||||||
Dividend yield | |||||||||||
Expected volatility | |||||||||||
Expected lives | |||||||||||
Risk-free interest rate |
Weighted Average | |||||||||||||||||
Number | Weighted Average | Remaining | |||||||||||||||
of Shares | Exercise Price | Contractual Life (Years) | |||||||||||||||
Options outstanding, January 1, 2023 | $ | ||||||||||||||||
Options granted | $ | ||||||||||||||||
Options forfeited | ( | $ | |||||||||||||||
Options expired | ( | $ | |||||||||||||||
Options outstanding, March 31, 2023 | $ | ||||||||||||||||
Exercisable at March 31, 2023 | $ | ||||||||||||||||
Options outstanding, January 1, 2024 | $ | ||||||||||||||||
Options granted | $ | ||||||||||||||||
Options expired | ( | $ | |||||||||||||||
Options outstanding, March 31, 2024 | $ | ||||||||||||||||
Exercisable at March 31, 2024 | $ |
Three Months Ended | |||||||||||
March 31, | |||||||||||
2024 | 2023 | ||||||||||
Share-based compensation components: | |||||||||||
Restricted stock expense | $ | $ | |||||||||
Stock option expense | |||||||||||
Total share-based compensation expense | $ | $ |
Three Months Ended | |||||||||||
March 31, | |||||||||||
2024 | 2023 | ||||||||||
Net income | $ | $ | |||||||||
Add: net loss attributable to noncontrolling interests | |||||||||||
Net income attributable to stockholders | |||||||||||
Less: net income attributable to unvested restricted stock awards | ( | ||||||||||
Net income attributable to common stockholders - basic | $ | $ | |||||||||
BASIC: | |||||||||||
Weighted average common shares outstanding | |||||||||||
DILUTED: | |||||||||||
Weighted average common shares outstanding | |||||||||||
Stock options | |||||||||||
Weighted average dilutive common shares outstanding | |||||||||||
Earnings per common share - basic | $ | $ | |||||||||
Earnings per common share - diluted | $ | $ | |||||||||
Incremental anti-dilutive shares excluded: | |||||||||||
Net share effect of stock options with an exercise price in excess of the average market price for our common shares | |||||||||||
Regular dividends declared per common share | $ | $ |
Carrying Amount | Fair Value Measurement | ||||||||||||||||||||||
March 31, 2024 | December 31, 2023 | March 31, 2024 | December 31, 2023 | ||||||||||||||||||||
Level 2 | |||||||||||||||||||||||
Variable rate debt | $ | $ | $ | $ | |||||||||||||||||||
Fixed rate debt | $ | $ | $ | $ | |||||||||||||||||||
Level 3 | |||||||||||||||||||||||
Mortgage and other notes receivable, net | $ | $ | $ | $ |
For the three months ended March 31, 2024: | Real Estate Investments | SHOP | Non-segment/Corporate | Total | |||||||||||||||||||
Rental income | $ | $ | $ | $ | |||||||||||||||||||
Resident fees and services | |||||||||||||||||||||||
Interest income and other | |||||||||||||||||||||||
Total revenues | |||||||||||||||||||||||
Senior housing operating expenses | |||||||||||||||||||||||
Taxes and insurance on leased properties | |||||||||||||||||||||||
NOI | |||||||||||||||||||||||
Depreciation | |||||||||||||||||||||||
Interest | |||||||||||||||||||||||
Legal | |||||||||||||||||||||||
Franchise, excise and other taxes | ( | ( | |||||||||||||||||||||
General and administrative | |||||||||||||||||||||||
Loan and realty losses | |||||||||||||||||||||||
Gains on sales of real estate, net | ( | ( | |||||||||||||||||||||
Gains from equity method investment | ( | ( | |||||||||||||||||||||
Net income (loss) | $ | $ | $ | ( | $ | ||||||||||||||||||
Total assets | $ | $ | $ | $ |
For the three months ended March 31, 2023: | Real Estate Investments | SHOP | Non-segment/Corporate | Total | |||||||||||||||||||
Rental income | $ | $ | $ | $ | |||||||||||||||||||
Resident fees and services | |||||||||||||||||||||||
Interest income and other | |||||||||||||||||||||||
Total revenues | |||||||||||||||||||||||
Senior housing operating expenses | |||||||||||||||||||||||
Taxes and insurance on leased properties | |||||||||||||||||||||||
NOI | |||||||||||||||||||||||
Depreciation | |||||||||||||||||||||||
Interest | |||||||||||||||||||||||
Legal | |||||||||||||||||||||||
Franchise, excise and other taxes | |||||||||||||||||||||||
General and administrative | |||||||||||||||||||||||
Loan and realty gains | ( | ( | |||||||||||||||||||||
Gains on sales of real estate, net | ( | ( | |||||||||||||||||||||
Net income (loss) | $ | $ | ( | $ | ( | $ | |||||||||||||||||
Total assets | $ | $ | $ | $ |
Date | Name | Source of Exposure | Carrying Amount | Maximum Exposure to Loss | Note Reference | ||||||||||||
2014 | Senior Living | Notes and straight-line receivable | $ | $ | Notes 3, 4 | ||||||||||||
2016 | Senior Living Management | Notes | $ | $ | — | ||||||||||||
2018 | Bickford | Notes | $ | $ | Notes 3, 4 | ||||||||||||
2019 | Encore Senior Living | Various1 | $ | $ | — | ||||||||||||
2020 | Timber Ridge OpCo | Various2 | $ | $ | Notes 6, 7 | ||||||||||||
2020 | Watermark Retirement | Notes and straight-line receivable | $ | $ | — | ||||||||||||
2021 | Montecito Medical Real Estate | Notes and funding commitment | $ | $ | Note 4 | ||||||||||||
2021 | Vizion Health | Notes and straight-line receivable | $ | $ | — | ||||||||||||
2021 | Navion Senior Solutions | Various3 | $ | $ | — | ||||||||||||
2023 | Kindcare Senior Living | Notes4 | $ | $ | — |
Real Estate Investments and SHOP | |||||||||||||||||||||||||||||||||||
Properties | Beds/Units | NOI1 | % Total | Gross Investment | |||||||||||||||||||||||||||||||
Real Estate Properties | |||||||||||||||||||||||||||||||||||
Senior Housing - Need-Driven | |||||||||||||||||||||||||||||||||||
Assisted Living | 71 | 3,882 | $ | 15,834 | 23.2 | % | $ | 762,982 | |||||||||||||||||||||||||||
Senior Living Campus | 8 | 995 | 3,529 | 5.1 | % | 214,693 | |||||||||||||||||||||||||||||
Total Senior Housing - Need-Driven | 79 | 4,877 | 19,363 | 28.3 | % | 977,675 | |||||||||||||||||||||||||||||
Senior Housing - Discretionary | |||||||||||||||||||||||||||||||||||
Independent Living | 7 | 903 | 1,891 | 2.8 | % | 108,486 | |||||||||||||||||||||||||||||
Entrance-Fee Communities | 11 | 2,931 | 15,048 | 22.0 | % | 746,485 | |||||||||||||||||||||||||||||
Total Senior Housing - Discretionary | 18 | 3,834 | 16,939 | 24.8 | % | 854,971 | |||||||||||||||||||||||||||||
Total Senior Housing | 97 | 8,711 | 36,302 | 53.1 | % | 1,832,646 | |||||||||||||||||||||||||||||
Medical Facilities | |||||||||||||||||||||||||||||||||||
Skilled Nursing Facilities | 65 | 8,614 | 21,645 | 31.7 | % | 557,996 | |||||||||||||||||||||||||||||
Hospitals | 1 | 64 | 1,022 | 1.5 | % | 41,466 | |||||||||||||||||||||||||||||
Total Medical Facilities | 66 | 8,678 | 22,667 | 33.2 | % | 599,462 | |||||||||||||||||||||||||||||
Disposals and Held for Sale | 485 | 0.7 | % | ||||||||||||||||||||||||||||||||
Total Real Estate Properties | 163 | 17,389 | 59,454 | 87.0 | % | 2,432,108 | |||||||||||||||||||||||||||||
Mortgage and Other Notes Receivable | |||||||||||||||||||||||||||||||||||
Senior Housing - Need-Driven | 9 | 612 | 1,995 | 2.9 | % | 99,818 | |||||||||||||||||||||||||||||
Senior Housing - Discretionary | 1 | 251 | 593 | 0.9 | % | 32,700 | |||||||||||||||||||||||||||||
Skilled Nursing Facilities | 7 | 731 | 858 | 1.3 | % | 44,933 | |||||||||||||||||||||||||||||
Other Notes Receivable | — | — | 2,496 | 3.6 | % | 96,898 | |||||||||||||||||||||||||||||
Total Mortgage and Other Notes Receivable | 17 | 1,594 | 5,942 | 8.7 | % | 274,349 | |||||||||||||||||||||||||||||
SHOP | |||||||||||||||||||||||||||||||||||
Independent Living | 15 | 1,732 | 2,942 | 4.3 | % | 348,708 | |||||||||||||||||||||||||||||
Total | 195 | 20,715 | $ | 68,338 | 100 | % | $ | 3,055,165 | |||||||||||||||||||||||||||
1Excludes Non-segment/Corporate NOI | |||||||||||||||||||||||||||||||||||
Portfolio Summary | Properties | NOI | % Portfolio | Gross Investment | |||||||||||||||||||||||||||||||
Real Estate Properties | 163 | $ | 59,454 | 87.0 | % | $ | 2,432,108 | ||||||||||||||||||||||||||||
Mortgage and Other Notes Receivable | 17 | 5,942 | 8.7 | % | 274,349 | ||||||||||||||||||||||||||||||
SHOP | 15 | 2,942 | 4.3 | % | 348,708 | ||||||||||||||||||||||||||||||
Total Portfolio | 195 | $ | 68,338 | 100 | % | $ | 3,055,165 | ||||||||||||||||||||||||||||
Portfolio by Operator Type | |||||||||||||||||||||||||||||||||||
Public | 55 | $ | 18,039 | 26.4 | % | $ | 411,740 | ||||||||||||||||||||||||||||
National Chain (Privately Owned) | 3 | 2,825 | 4.1 | % | 172,385 | ||||||||||||||||||||||||||||||
Regional | 117 | 43,500 | 63.7 | % | 2,088,594 | ||||||||||||||||||||||||||||||
Small | 5 | 547 | 0.8 | % | 33,738 | ||||||||||||||||||||||||||||||
Disposals and Held for Sale | 485 | 0.7 | % | ||||||||||||||||||||||||||||||||
Total Real Estate Investments Portfolio | 180 | 65,396 | 95.7 | % | 2,706,457 | ||||||||||||||||||||||||||||||
SHOP | 15 | 2,942 | 4.3 | % | 348,708 | ||||||||||||||||||||||||||||||
Total Portfolio | 195 | $ | 68,338 | 100 | % | $ | 3,055,165 | ||||||||||||||||||||||||||||
Three Months Ended March 31, | ||||||||||||||
Location | 2024 | 2023 | ||||||||||||
South Carolina | $ | 8,573 | $ | 8,336 | ||||||||||
Texas | 7,822 | 7,902 | ||||||||||||
Florida | 6,764 | 7,068 | ||||||||||||
Tennessee | 5,408 | 4,655 | ||||||||||||
Washington | 3,430 | 3,524 | ||||||||||||
All others | 36,341 | 38,404 | ||||||||||||
NOI | $ | 68,338 | $ | 69,889 |
As of March 31, 2024 | Revenues1 | |||||||||||||||||||||||||||||||||||||
Asset | Gross Real | Notes | Three Months Ended March 31, | |||||||||||||||||||||||||||||||||||
Class | Estate2 | Receivable | 2024 | 2023 | ||||||||||||||||||||||||||||||||||
Senior Living | EFC | $ | 573,631 | $ | 48,200 | $ | 12,815 | 16% | $ | 12,833 | 16% | |||||||||||||||||||||||||||
NHC | SNF | 133,770 | — | 11,246 | 14% | 9,807 | 12% | |||||||||||||||||||||||||||||||
Bickford | ALF | 429,043 | 16,747 | 10,054 | 12% | 11,162 | 14% | |||||||||||||||||||||||||||||||
All others, net | Various | 1,307,634 | 209,402 | 31,409 | 39% | 34,267 | 41% | |||||||||||||||||||||||||||||||
Escrow funds received from tenants | ||||||||||||||||||||||||||||||||||||||
for property operating expenses | Various | — | — | 2,733 | 3% | 2,619 | 3% | |||||||||||||||||||||||||||||||
$ | 2,444,078 | $ | 274,349 | 68,257 | 70,688 | |||||||||||||||||||||||||||||||||
Resident fees and services3 | 13,256 | 16% | 11,700 | 14% | ||||||||||||||||||||||||||||||||||
$ | 81,513 | $ | 82,388 |
Three Months Ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
Bickford1 | $ | 9,364 | $ | 7,807 | |||||||
All others | 2,401 | 4,199 | |||||||||
Total rental income from cash basis operators | $ | 11,765 | $ | 12,006 |
Properties | 1Q23 | 2Q23 | 3Q23 | 4Q23 | 1Q24 | March 2024 | |||||||||||||||||
Senior Living Same-Store | 9 | 83.5% | 82.2% | 81.9% | 83.0% | 83.4% | 83.8% | ||||||||||||||||
Senior Living | 10 | 82.7% | 81.4% | 81.0% | 82.4% | 82.8% | 83.1% | ||||||||||||||||
Bickford Same-Store1 | 38 | 81.3% | 81.6% | 83.8% | 84.8% | 85.4% | 85.4% | ||||||||||||||||
Bickford2 | 39 | 81.6% | 82.0% | 84.2% | 85.2% | 85.9% | 85.8% | ||||||||||||||||
SHOP | 15 | 75.2% | 75.5% | 79.0% | 83.2% | 85.3% | 86.3% |
NHI Real Estate Investments Portfolio1 | ||||||||||||||||||||
By asset type | SHO | SNF | MEDICAL NON-SNF | TOTAL | ||||||||||||||||
Properties | 91 | 68 | 1 | 160 | ||||||||||||||||
4Q22 Coverage | 1.23x | 2.50x | 2.65x | 1.73x | ||||||||||||||||
4Q22 Occupancy | 84.9% | 77.8% | 76.5% | 81.2% | ||||||||||||||||
4Q23 Coverage | 1.45x | 2.82x | 3.03x | 2.00x | ||||||||||||||||
4Q23 Occupancy | 84.3% | 81.4% | 79.7% | 82.8% | ||||||||||||||||
Market served | Need Driven | Need Driven excl. Bickford | Discretionary | Discretionary excl. Senior Living | Medical | Medical excl. NHC | ||||||||||||||
Properties | 77 | 39 | 14 | 5 | 69 | 34 | ||||||||||||||
4Q22 Coverage | 1.13x | 1.02x | 1.35x | 1.76x | 2.50x | 2.11x | ||||||||||||||
4Q22 Occupancy | 85.7% | 87.0% | 83.7% | 85.3% | 77.8% | 70.5% | ||||||||||||||
4Q23 Coverage | 1.35x | 1.16x | 1.54x | 1.63x | 2.83x | 2.07x | ||||||||||||||
4Q23 Occupancy | 85.0% | 86.6% | 83.2% | 84.3% | 81.4% | 73.6% | ||||||||||||||
Major tenants | NHC2 | Senior Living3 | Bickford4 | |||||||||||||||||
Properties | 35 | 10 | 38 | |||||||||||||||||
4Q22 Coverage | 3.07x | 1.17x | 1.26x | |||||||||||||||||
4Q22 Occupancy | 83.8% | 82.6% | 84.0% | |||||||||||||||||
4Q23 Coverage | 3.80x | 1.48x | 1.58x | |||||||||||||||||
4Q23 Occupancy | 87.9% | 81.9% | 82.9% | |||||||||||||||||
Three Months Ended | |||||||||||||||||||||||
March 31, | Period Change | ||||||||||||||||||||||
2024 | 2023 | $ | % | ||||||||||||||||||||
Revenues: | |||||||||||||||||||||||
Rental income | |||||||||||||||||||||||
SHOs leased to Bickford | $ | 9,364 | $ | 9,276 | $ | 88 | 0.9 | % | |||||||||||||||
SHOs leased to Senior Living Management | 639 | 914 | (275) | (30.1) | % | ||||||||||||||||||
SHOs leased to Chancellor Health Care | 1,278 | 1,969 | (691) | (35.1) | % | ||||||||||||||||||
SNFs leased to NHC | 11,192 | 10,115 | 1,077 | 10.6 | % | ||||||||||||||||||
Other new and existing leases | 37,527 | 36,021 | 1,506 | 4.2 | % | ||||||||||||||||||
Disposals and assets held for sale | 485 | 2,587 | (2,102) | (81.3) | % | ||||||||||||||||||
60,485 | 60,882 | (397) | (0.7) | % | |||||||||||||||||||
Straight-line rent adjustments, new and existing leases | (308) | 2,097 | (2,405) | NM | |||||||||||||||||||
Amortization of lease incentives | (723) | (299) | (424) | NM | |||||||||||||||||||
Escrow funds received from tenants for taxes and insurance | 2,733 | 2,619 | 114 | 4.4 | % | ||||||||||||||||||
Total Rental Income | 62,187 | 65,299 | (3,112) | (4.8) | % | ||||||||||||||||||
Resident fees and services | 13,256 | 11,700 | 1,556 | 13.3 | % | ||||||||||||||||||
Interest income and other | |||||||||||||||||||||||
Encore Senior Living mortgage loan | 1,130 | 868 | 262 | 30.2 | % | ||||||||||||||||||
Capital Funding Group | 1,432 | 985 | 447 | 45.4 | % | ||||||||||||||||||
Loan payoffs | — | 225 | (225) | (100.0) | % | ||||||||||||||||||
Other new and existing mortgages and notes | 3,380 | 3,230 | 150 | 4.6 | % | ||||||||||||||||||
Total Interest Income from Mortgage and Other Notes | 5,942 | 5,308 | 634 | 11.9 | % | ||||||||||||||||||
Other income | 128 | 81 | 47 | 58.0 | % | ||||||||||||||||||
Total Revenues | 81,513 | 82,388 | (875) | (1.1) | % | ||||||||||||||||||
Expenses: | |||||||||||||||||||||||
Depreciation | |||||||||||||||||||||||
ALFs leased to Bickford | 2,782 | 2,823 | (41) | (1.5) | % | ||||||||||||||||||
SHOs leased to Silverado | 254 | 170 | 84 | 49.4 | % | ||||||||||||||||||
Current year disposals and assets held for sale | — | 45 | (45) | (100.0) | % | ||||||||||||||||||
Other new and existing assets | 14,469 | 14,579 | (110) | (0.8) | % | ||||||||||||||||||
Total Depreciation | 17,505 | 17,617 | (112) | (0.6) | % | ||||||||||||||||||
Interest | 14,869 | 14,027 | 842 | 6.0 | % | ||||||||||||||||||
Senior housing operating expenses | 10,314 | 9,799 | 515 | 5.3 | % | ||||||||||||||||||
Legal | 236 | 122 | 114 | 93.4 | % | ||||||||||||||||||
Franchise, excise and other taxes | (187) | 183 | (370) | NM | |||||||||||||||||||
Taxes and insurance on leased properties | 2,733 | 2,619 | 114 | 4.4 | % | ||||||||||||||||||
Loan and realty losses (gains) | 10 | (418) | 428 | NM | |||||||||||||||||||
General and administrative | 5,642 | 5,653 | (11) | (0.2) | % | ||||||||||||||||||
Total Expenses | 51,122 | 49,602 | 1,520 | 3.1 | % | ||||||||||||||||||
Income before investment and other gains and losses | 30,391 | 32,786 | (2,395) | (7.3) | % | ||||||||||||||||||
Gains on sales of real estate, net | 100 | 1,397 | (1,297) | (92.8) | % | ||||||||||||||||||
Gains from equity method investment | 166 | — | 166 | NM | |||||||||||||||||||
Net income | 30,657 | 34,183 | (3,526) | (10.3) | % | ||||||||||||||||||
Add: net loss attributable to noncontrolling interests | 290 | 301 | (11) | (3.7) | % | ||||||||||||||||||
Net income attributable to stockholders | 30,947 | 34,484 | (3,537) | (10.3) | % | ||||||||||||||||||
Less: net income attributable to unvested restricted stock awards | (32) | — | (32) | NM | |||||||||||||||||||
Net income attributable to common stockholders | $ | 30,915 | $ | 34,484 | $ | (3,569) | (10.3) | % | |||||||||||||||
NM - not meaningful |
Three Months Ended March 31, | One Year Change | ||||||||||||||||||||||
2024 | 2023 | $ | % | ||||||||||||||||||||
Cash and cash equivalents and restricted cash, January 1 | $ | 24,617 | $ | 21,516 | $ | 3,101 | 14.4 | % | |||||||||||||||
Net cash provided by operating activities | 40,827 | 31,048 | 9,779 | 31.5 | % | ||||||||||||||||||
Net cash used in investing activities | (16,193) | (27,521) | 11,328 | (41.2) | % | ||||||||||||||||||
Net cash used in financing activities | (35,922) | (9,516) | (26,406) | NM | |||||||||||||||||||
Cash and cash equivalents and restricted cash, March 31 | $ | 13,329 | $ | 15,527 | $ | (2,198) | (14.2) | % |
SOFR Spread | ||||||||||||||||||||
Debt Ratings | Revolver | Revolver Facility Fee | $200m Term Loan | |||||||||||||||||
A+/A1 | 0.725% | 0.125% | 0.75% | |||||||||||||||||
A/A2 | 0.725% | 0.125% | 0.80% | |||||||||||||||||
A-/A3 | 0.725% | 0.125% | 0.85% | |||||||||||||||||
BBB+/Baa1 | 0.775% | 0.150% | 0.90% | |||||||||||||||||
BBB/Baa2 | 0.850% | 0.200% | 1.00% | |||||||||||||||||
BBB-/Baa3 | 1.050% | 0.250% | 1.25% | |||||||||||||||||
Lower than BBB-/Baa3 | 1.400% | 0.300% | 1.65% |
Consolidated Total Debt | $ | 1,139,266 | |||
Less: cash and cash equivalents | (11,357) | ||||
Consolidated Net Debt | $ | 1,127,909 | |||
Adjusted EBITDA | $ | 64,259 | |||
Annualizing adjustment | 192,778 | ||||
Annualized impact of recent investments | 842 | ||||
$ | 257,879 | ||||
Consolidated Net Debt to Annualized Adjusted EBITDA | 4.4x |
As of | ||||||||
March 31, 2024 | ||||||||
Real estate properties, net | $ | 1,814,819 | ||||||
Other assets, net | 364,120 | |||||||
Note receivable due from non-guarantor subsidiary | 81,396 | |||||||
Totals assets | $ | 2,260,335 | ||||||
Debt | $ | 1,063,292 | ||||||
Other liabilities | 68,650 | |||||||
Total liabilities | $ | 1,131,942 | ||||||
Redeemable noncontrolling interest | $ | 9,425 | ||||||
Noncontrolling interests | $ | 860 |
Three Months Ended | ||||||||
March 31, 2024 | ||||||||
Revenues | $ | 74,190 | ||||||
Interest revenue on note due from non-guarantor subsidiary | 1,161 | |||||||
Expenses | 46,591 | |||||||
Gains from equity method investee | 166 | |||||||
Gains on sales of real estate | 100 | |||||||
Net income | $ | 29,026 | ||||||
Net income attributable to NHI and the subsidiary guarantors | $ | 29,316 |
Three Months Ended March 31, 2024 | ||||||||||||||||||||
Date of Declaration | Date of Record | Date Paid/Payable | Quarterly Dividend | |||||||||||||||||
November 3, 2023 | December 29, 2023 | January 26, 2024 | $0.90 | |||||||||||||||||
February 16, 2024 | March 28, 2024 | May 3, 2024 | $0.90 | |||||||||||||||||
Three Months Ended March 31, 2023 | ||||||||||||||||||||
Date of Declaration | Date of Record | Date Paid/Payable | Quarterly Dividend | |||||||||||||||||
November 6, 2022 | December 30, 2022 | January 27, 2023 | $0.90 | |||||||||||||||||
February 17, 2023 | March 31, 2023 | May 5, 2023 | $0.90 | |||||||||||||||||
Total | Less than 1 year | 1-3 years | 3-5 years | More than 5 years | |||||||||||||||||||||||||
Debt, including interest1 | $ | 1,302,237 | $ | 129,838 | $ | 728,503 | $ | 24,000 | $ | 419,896 | |||||||||||||||||||
Loan commitments | 44,218 | 12,473 | 31,745 | — | — | ||||||||||||||||||||||||
Development commitments | 2,927 | — | 2,927 | — | — | ||||||||||||||||||||||||
$ | 1,349,382 | $ | 142,311 | $ | 763,175 | $ | 24,000 | $ | 419,896 |
Asset Class | Type | Total | Funded | Remaining | |||||||||||||||||||||||||
Loan Commitments: | |||||||||||||||||||||||||||||
Encore Senior Living | SHO | Construction | $ | 50,725 | $ | (50,026) | $ | 699 | |||||||||||||||||||||
Senior Living | SHO | Revolving Credit | 20,000 | (15,500) | 4,500 | ||||||||||||||||||||||||
Timber Ridge OpCo | SHO | Working Capital | 5,000 | — | 5,000 | ||||||||||||||||||||||||
Watermark Retirement | SHO | Working Capital | 5,000 | (2,726) | 2,274 | ||||||||||||||||||||||||
Montecito Medical Real Estate | MOB | Mezzanine | 50,000 | (20,255) | 29,745 | ||||||||||||||||||||||||
Carriage Crossing1 | SHO | Mortgage | 2,000 | — | 2,000 | ||||||||||||||||||||||||
$ | 132,725 | $ | (88,507) | $ | 44,218 |
Asset Class | Type | Total | Funded | Remaining | |||||||||||||||||||||||||
Development Commitments: | |||||||||||||||||||||||||||||
Woodland Village | SHO | Renovation | $ | 7,515 | $ | (7,425) | $ | 90 | |||||||||||||||||||||
Navion Senior Solutions1 | SHO | Renovation | 4,500 | (2,726) | 1,774 | ||||||||||||||||||||||||
Vizion Health | HOSP | Renovation | 2,000 | (1,216) | 784 | ||||||||||||||||||||||||
SHOP | ILF | Renovation | 1,500 | (1,221) | 279 | ||||||||||||||||||||||||
$ | 15,515 | $ | (12,588) | $ | 2,927 |
Asset Class | Total | Funded | Remaining | ||||||||||||||||||||
Contingencies (Lease Inducements): | |||||||||||||||||||||||
Navion Senior Solutions | SHO | $ | 4,850 | $ | (2,700) | $ | 2,150 | ||||||||||||||||
Discovery | SHO | 4,000 | — | 4,000 | |||||||||||||||||||
Ignite Medical Resorts | SNF | 2,000 | — | 2,000 | |||||||||||||||||||
IntegraCare | SHO | 750 | — | 750 | |||||||||||||||||||
$ | 11,600 | $ | (2,700) | $ | 8,900 |
Three Months Ended | |||||||||||
March 31, | |||||||||||
2024 | 2023 | ||||||||||
Net income attributable to common stockholders | $ | 30,915 | $ | 34,484 | |||||||
Elimination of certain non-cash items in net income: | |||||||||||
Real estate depreciation | 17,309 | 17,518 | |||||||||
Real estate depreciation related to noncontrolling interests | (411) | (396) | |||||||||
Gains on sales of real estate, net | (100) | (1,397) | |||||||||
Impairments of real estate | — | 338 | |||||||||
NAREIT FFO attributable to common stockholders | 47,713 | 50,547 | |||||||||
Non-cash write-off of straight-line rent receivable | 786 | — | |||||||||
Non-cash rental income | — | (2,500) | |||||||||
Normalized FFO attributable to common stockholders | 48,499 | 48,047 | |||||||||
Straight-line lease revenue, net | (478) | (2,097) | |||||||||
Straight-line lease revenue, net, related to noncontrolling interests | (4) | 24 | |||||||||
Non-real estate depreciation | 196 | 98 | |||||||||
Non-real estate depreciation related to noncontrolling interests | (32) | (9) | |||||||||
Amortization of lease incentives | 723 | 299 | |||||||||
Amortization of lease incentive related to noncontrolling interests | (127) | (53) | |||||||||
Amortization of original issue discount | 80 | 80 | |||||||||
Amortization of debt issuance costs | 740 | 526 | |||||||||
Amortization related to equity method investment | (356) | (291) | |||||||||
Straight-line lease expense related to equity method investment | 9 | (4) | |||||||||
Note receivable credit loss expense (benefit) | 10 | (756) | |||||||||
Non-cash share-based compensation | 2,155 | 2,105 | |||||||||
Equity method investment capital expenditures | (68) | (105) | |||||||||
Equity method investment non-refundable fees received | 280 | 239 | |||||||||
Equity method investment distributions | (166) | — | |||||||||
SHOP recurring capital expenditures | (529) | (407) | |||||||||
SHOP recurring capital expenditures related to noncontrolling interests | 43 | 43 | |||||||||
Normalized FAD attributable to common stockholders | $ | 50,975 | $ | 47,739 | |||||||
BASIC | |||||||||||
Weighted average common shares outstanding | 43,388,841 | 43,388,742 | |||||||||
NAREIT FFO attributable to common stockholders per share | $ | 1.10 | $ | 1.16 | |||||||
Normalized FFO attributable to common stockholders per share | $ | 1.12 | $ | 1.11 | |||||||
DILUTED | |||||||||||
Weighted average common shares outstanding | 43,424,550 | 43,391,429 | |||||||||
NAREIT FFO attributable to common stockholders per share | $ | 1.10 | $ | 1.16 | |||||||
Normalized FFO attributable to common stockholders per share | $ | 1.12 | $ | 1.11 | |||||||
Three Months Ended | |||||||||||
March 31, | |||||||||||
2024 | 2023 | ||||||||||
Net income | $ | 30,657 | $ | 34,183 | |||||||
Interest expense | 14,869 | 14,027 | |||||||||
Franchise, excise and other taxes | (187) | 183 | |||||||||
Depreciation | 17,505 | 17,617 | |||||||||
NHI’s share of EBITDA adjustments for unconsolidated entities | 719 | 495 | |||||||||
Note receivable credit loss expense (benefit) | 10 | (756) | |||||||||
Gains on sales of real estate, net | (100) | (1,397) | |||||||||
Impairments of real estate | — | 338 | |||||||||
Non-cash write-off of straight-line rent receivable | 786 | — | |||||||||
Non-cash rental income | — | (2,500) | |||||||||
Adjusted EBITDA | $ | 64,259 | $ | 62,190 | |||||||
Interest expense at contractual rates | $ | 14,088 | $ | 13,440 | |||||||
Principal payments | 105 | 103 | |||||||||
Fixed Charges | $ | 14,193 | $ | 13,543 | |||||||
Fixed Charge Coverage | 4.5x | 4.6x |
Three Months Ended | |||||||||||
March 31, | |||||||||||
NOI Reconciliations: | 2024 | 2023 | |||||||||
Net income | $ | 30,657 | $ | 34,183 | |||||||
Gains from equity method investment | (166) | — | |||||||||
Gains on sales of real estate, net | (100) | (1,397) | |||||||||
Loan and realty losses (gains) | 10 | (418) | |||||||||
General and administrative | 5,642 | 5,653 | |||||||||
Franchise, excise and other taxes | (187) | 183 | |||||||||
Legal | 236 | 122 | |||||||||
Interest | 14,869 | 14,027 | |||||||||
Depreciation | 17,505 | 17,617 | |||||||||
Consolidated NOI | $ | 68,466 | $ | 69,970 | |||||||
NOI by segment: | |||||||||||
Real Estate Investments | $ | 65,396 | $ | 67,988 | |||||||
SHOP | 2,942 | 1,901 | |||||||||
Non-Segment/Corporate | 128 | 81 | |||||||||
Total NOI | $ | 68,466 | $ | 69,970 | |||||||
March 31, 2024 | December 31, 2023 | ||||||||||||||||||||||||||||||||||
Balance1 | % of total | Rate2 | Balance1 | % of total | Rate2 | ||||||||||||||||||||||||||||||
Fixed rate: | |||||||||||||||||||||||||||||||||||
Private placement term loans - unsecured | $ | 225,000 | 19.6 | % | 4.28 | % | $ | 225,000 | 19.6 | % | 4.28 | % | |||||||||||||||||||||||
2031 Senior notes - unsecured | 400,000 | 34.8 | % | 3.00 | % | 400,000 | 34.9 | % | 3.00 | % | |||||||||||||||||||||||||
Fannie Mae term loans - secured, non-recourse | 76,136 | 6.6 | % | 3.96 | % | 76,241 | 6.7 | % | 3.96 | % | |||||||||||||||||||||||||
Variable rate: | |||||||||||||||||||||||||||||||||||
Bank term loan - unsecured | 200,000 | 17.4 | % | 6.68 | % | 200,000 | 17.4 | % | 6.69 | % | |||||||||||||||||||||||||
Revolving credit facility - unsecured | 248,500 | 21.6 | % | 6.48 | % | 245,000 | 21.4 | % | 6.49 | % | |||||||||||||||||||||||||
$ | 1,149,636 | 100.0 | % | 4.71 | % | $ | 1,146,241 | 100.0 | % | 4.70 | % | ||||||||||||||||||||||||
1 Differs from carrying amount due to unamortized discounts and loan costs. | |||||||||||||||||||||||||||||||||||
2 Total is weighted average rate. |
Balance1 | Fair Value2 | FV reflecting change in interest rates | |||||||||||||||||||||
Fixed rate: | -50 bps | +50 bps | |||||||||||||||||||||
Private placement term loans - unsecured | $ | 225,000 | $ | 215,755 | $ | 217,572 | $ | 213,959 | |||||||||||||||
2031 Senior notes | 400,000 | 324,349 | 336,350 | 316,340 | |||||||||||||||||||
Fannie Mae term loans | 76,136 | 74,191 | 74,579 | 73,805 | |||||||||||||||||||
1 Differs from carrying amount due to unamortized discounts and loan costs. | |||||||||||||||||||||||
2 The change in fair value of our fixed rate debt was due primarily to the overall change in interest rates. |
Exhibit No. | Description | ||||
3.1 | Articles of Incorporation of National Health Investors, Inc. (incorporated by reference to Exhibit 3.1 to Form S-3 Registration Statement No. 333-192322) | ||||
3.2 | Articles of Amendment to Articles of Incorporation of National Health Investors, Inc. dated as of June 8, 1994, (incorporated by reference to Exhibit 3.2 to the Registration Statement on Form S-3 Registration Statement No. 333-194653 of National Health Investors, Inc.) | ||||
3.3 | Amendment to Articles of Incorporation (incorporated by reference to Exhibit A to the Company’s Definitive Proxy Statement filed March 23, 2009) | ||||
3.4 | Amendment to Articles of Incorporation approved by shareholders on May 2, 2014 (incorporated by reference to Exhibit 3.3 to the Company’s Form 10-Q filed August 4, 2014) | ||||
3.5 | Amendment to Articles of Incorporation approved by shareholders on May 6, 2020 (incorporated by reference to Exhibit 3.6 to the Company’s Form 10-Q filed August 10, 2020) | ||||
3.6 | Amended and Restated Bylaws as approved February 17, 2023, as amended April 27, 2023 (incorporated by reference to Exhibit 3.5 to the Company’s Form 10-Q filed May 9, 2023) | ||||
*10.1 | Change in Control Severance Agreement, dated February 26, 2024, by and between National Health Investors, Inc. and D. Eric Mendelsohn (incorporated by reference to Exhibit 10.1 to the Company’s Form 8-K filed February 26, 2024). | ||||
*10.2 | Change in Control Severance Agreement, dated February 26, 2024, by and between National Health Investors, Inc. and Kristin S. Gaines (incorporated by reference to Exhibit 10.2 to the Company’s Form 8-K filed February 26, 2024). | ||||
*10.3 | Change in Control Severance Agreement, dated February 26, 2024, by and between National Health Investors, Inc. and Kevin C. Pascoe (incorporated by reference to Exhibit 10.3 to the Company’s Form 8-K filed February 26, 2024). | ||||
*10.4 | Change in Control Severance Agreement, dated February 26, 2024, by and between National Health Investors, Inc. and John L. Spaid (incorporated by reference to Exhibit 10.4 to the Company’s Form 8-K filed February 26, 2024). | ||||
*10.5 | Change in Control Severance Agreement, dated February 26, 2024, by and between National Health Investors, Inc. and David L. Travis (incorporated by reference to Exhibit 10.5 to the Company’s Form 8-K filed February 26, 2024). | ||||
31.1 | |||||
31.2 | |||||
32 | |||||
101.INS | XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document | ||||
101.SCH | Inline XBRL Taxonomy Extension Schema Document | ||||
101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document | ||||
101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document | ||||
101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document | ||||
101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document | ||||
104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) |
NATIONAL HEALTH INVESTORS, INC. | ||||||||
(Registrant) | ||||||||
Date: | May 6, 2024 | /s/ D. Eric Mendelsohn | ||||||
D. Eric Mendelsohn | ||||||||
President, Chief Executive Officer and Director | ||||||||
(duly authorized officer) | ||||||||
Date: | May 6, 2024 | /s/ John L. Spaid | ||||||
John L. Spaid | ||||||||
Chief Financial Officer | ||||||||
(Principal Financial Officer) |
Date: | May 6, 2024 | /s/ D. Eric Mendelsohn | ||||||
D. Eric Mendelsohn | ||||||||
President, Chief Executive Officer and Director | ||||||||
(Principal Executive Officer) |
Date: | May 6, 2024 | /s/ John L. Spaid | ||||||
John L. Spaid | ||||||||
Chief Financial Officer | ||||||||
(Principal Financial Officer) |
Date: | May 6, 2024 | /s/ D. Eric Mendelsohn | ||||||
D. Eric Mendelsohn | ||||||||
President, Chief Executive Officer and Director | ||||||||
(Principal Executive Officer) | ||||||||
Date: | May 6, 2024 | /s/ John L. Spaid | ||||||
John L. Spaid | ||||||||
Chief Financial Officer | ||||||||
(Principal Financial Officer) |
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands |
Mar. 31, 2024 |
Dec. 31, 2023 |
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Real estate properties: | ||||
Land | $ 180,749 | $ 180,749 | ||
Buildings and improvements | 2,596,232 | 2,593,696 | ||
Construction in progress | 6,389 | 5,913 | ||
Real estate properties, gross | 2,783,370 | 2,780,358 | ||
Less accumulated depreciation | (690,790) | (673,276) | ||
Real estate properties, net | 2,092,580 | 2,107,082 | ||
Mortgage and other notes receivable, net of reserve of $15,475 and $15,476, respectively | 258,874 | 245,271 | ||
Cash and cash equivalents | 11,357 | 22,347 | ||
Straight-line rent receivable | 84,257 | 84,713 | ||
Assets held for sale, net | 5,004 | 5,004 | ||
Other assets, net | 26,053 | 24,063 | ||
Total Assets | [1] | 2,478,125 | 2,488,480 | |
Liabilities and Stockholders’ Equity: | ||||
Debt | 1,139,266 | 1,135,051 | ||
Accounts payable and accrued expenses | 26,782 | 34,304 | ||
Dividends payable | 39,082 | 39,069 | ||
Deferred income | 5,429 | 6,009 | ||
Total Liabilities | [1] | 1,210,559 | 1,214,433 | |
Commitments and contingencies | ||||
Redeemable noncontrolling interest | 9,425 | 9,656 | ||
National Health Investors, Inc. Stockholders’ Equity: | ||||
Common stock | 434 | 434 | ||
Capital in excess of par value | 1,605,912 | 1,603,757 | ||
Retained earnings | 2,497,791 | 2,466,844 | ||
Cumulative dividends | (2,856,165) | (2,817,083) | ||
Total National Health Investors, Inc. Stockholders’ Equity | 1,247,972 | 1,253,952 | ||
Noncontrolling interests | 10,169 | 10,439 | ||
Total Equity | 1,258,141 | 1,264,391 | ||
Total Liabilities and Equity | $ 2,478,125 | $ 2,488,480 | ||
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Condensed Consolidated Statement Of Equity (Parenthetical) - USD ($) $ in Thousands |
3 Months Ended | |
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Mar. 31, 2024 |
Mar. 31, 2023 |
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Statement of Stockholders' Equity [Abstract] | ||
Distributions | $ 6 | |
Net loss attributable to redeemable noncontrolling interest | $ 225 | $ 305 |
Dividends to common stockholders (in dollars per share) | $ 0.90 | $ 0.90 |
Organization and Nature of Business |
3 Months Ended |
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Mar. 31, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Nature of Business | Organization and Nature of Business National Health Investors, Inc. (“NHI,” the “Company,” “we,” “us,” or “our”), established in 1991 as a Maryland corporation, is a self-managed real estate investment trust (“REIT”) specializing in sale-leaseback, joint venture and mortgage and mezzanine financing of need-driven and discretionary senior housing and medical facility investments. We operate through two reportable segments: Real Estate Investments and Senior Housing Operating Portfolio (“SHOP”). Our Real Estate Investments segment consists of real estate investments and leases, and mortgage and other notes receivables in independent living facilities (“ILF”), assisted living facilities (“ALF”), entrance-fee communities (“EFC”), senior living campuses (“SLC”), skilled nursing facilities (“SNF”) and a hospital (“HOSP”). As of March 31, 2024, we had gross investments of approximately $2.4 billion in 163 healthcare real estate properties located in 31 states and leased pursuant primarily to triple-net leases to 25 tenants consisting of 97 senior housing communities, 65 SNFs and one HOSP, excluding one property classified as an asset held for sale. Our portfolio of nine mortgages along with other notes receivable totaled $274.3 million, excluding an allowance for expected credit losses of $15.5 million, as of March 31, 2024. Our SHOP segment is comprised of two ventures that own the operations of ILFs. For this segment, as of March 31, 2024, we had gross investments of approximately $348.7 million in 15 ILFs located in eight states with a combined 1,732 units that are operated on behalf of the Company by independent managers pursuant to the terms of separate management agreements. The third-party managers, or related parties of the managers, own equity interests in the respective ventures. Units, beds and property count disclosures in these footnotes to the condensed consolidated financial statements are outside the scope of our independent registered accounting firm’s review.
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Basis of Presentation and Significant Accounting Policies |
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Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Basis of Presentation and Significant Accounting Policies | Basis of Presentation and Significant Accounting Policies Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with United States generally accepted accounting principles (“GAAP”) for interim financial statements. In our opinion, the accompanying unaudited condensed consolidated financial statements reflect all adjustments consisting of normal recurring adjustments necessary for a fair presentation. Interim results of operations are not necessarily indicative of the results that may be achieved for a full year. The condensed consolidated financial statements and related notes do not include all information and footnotes required by GAAP for annual reports. These interim condensed consolidated financial statements should be read in conjunction with our audited consolidated financial statements and notes thereto as of and for the year ended December 31, 2023, included in our Annual Report on Form 10-K for the year ended December 31, 2023 filed with the Securities and Exchange Commission (the “SEC”). Principles of Consolidation The condensed consolidated financial statements include the accounts of the Company, and its wholly owned subsidiaries, joint ventures and subsidiaries in which we have a controlling interest. We also consolidate certain entities when control of such entities can be achieved through means other than voting rights (“variable interest entities” or “VIEs”) if the Company is deemed to be the primary beneficiary of such entities. All material intercompany transactions and balances are eliminated in consolidation. Our consolidated total assets and liabilities include two consolidated ventures comprising our SHOP activities, each formed with a separate partner - Merrill Gardens, L.L.C. (“Merrill”) and DSHI NHI Holiday LLC (the “Discovery member”), a related party of Discovery Senior Living (“Discovery”). We consider both ventures to be VIEs as the members of each, as a group, lack the characteristics of a controlling financial interest. We are deemed to be the primary beneficiary of each VIE because we have the ability to control the activities that most significantly impact each VIE’s economic performance. Reference Notes 5 and 16 for further discussion of our SHOP ventures. We also consolidate two real estate partnerships formed with our partners, Discovery Senior Housing Investor XXIV, LLC, a related party of Discovery and LCS Timber Ridge LLC (“LCS”) to invest in senior housing facilities. We consider both partnerships to be VIEs, as either the members, as a group, lack the characteristics of a controlling financial interest or the total equity at risk is insufficient to finance activities without additional subordinated financial support. NHI directs the activities that most significantly impact economic performance of these partnerships, subject to limited protective rights extended to our partners for specified business decisions. Because of our control of these partnerships, we include their assets, liabilities, noncontrolling interests and operations in our condensed consolidated financial statements. Reference Note 16 for further discussion of these real estate partnerships. We use the equity method of accounting when we own an interest in an entity over which we can exert significant influence but cannot control the entity’s operations. We discontinue equity method accounting if our investment in an entity (and net advances) is reduced to zero unless we have guaranteed obligations of the entity or are otherwise committed to provide further financial support for the entity. Reference Note 6 for further discussion of our equity method investment. We have concluded that the Company is not the primary beneficiary for certain investments where we lack either directly or through related parties the power to direct the activities that most significantly impact their economic performance. See Note 16 for information on unconsolidated VIEs. Noncontrolling Interests Contingently redeemable noncontrolling interests are recorded at their initial carrying amounts upon issuance and are subsequently adjusted to reflect their share of gains or losses and distributions attributable to the noncontrolling interests. In periods where they are or will become probable of redemption, an adjustment to the redemption value of the noncontrolling interests is also recognized through “Capital in excess of par value” on the Company’s Condensed Consolidated Balance Sheets and included in our computation of earnings per share. As of March 31, 2024, the Merrill SHOP venture noncontrolling interest was classified in mezzanine equity, as discussed further in Note 10. The noncontrolling interests associated with our two consolidated real estate partnerships and our Discovery member SHOP venture were classified in equity as of March 31, 2024. Cash and Cash Equivalents and Restricted Cash Cash equivalents consist of all highly liquid investments with original maturities of three months or less. Restricted cash includes amounts required to be held on deposit or subject to an agreement (e.g., with a qualified intermediary subject to an exchange agreement pursuant to Section 1031 of the Internal Revenue Code of 1986, as amended (the “Internal Revenue Code”) or in accordance with agency agreements governing our mortgages). The following table sets forth our “Cash and cash equivalents and restricted cash” reported within the Company’s Condensed Consolidated Statements of Cash Flows ($ in thousands):
Concentration of Credit Risks Our credit risks primarily relate to cash and cash equivalents and investments in mortgage and other notes receivable. Cash and cash equivalents are primarily held in bank accounts and overnight investments. We maintain our bank deposit accounts with large financial institutions in amounts that may exceed federally insured limits. We have not experienced any losses in such accounts. Our mortgage and other notes receivable consist primarily of secured loans on facilities. Our financial instruments, principally our investments in notes receivable, are subject to the possibility of loss of the carrying values as a result of the failure of other parties to perform according to their contractual obligations which may make the instruments less valuable. We obtain collateral in the form of mortgage liens and other protective rights for notes receivable and continually monitor these rights in order to reduce such possibilities of loss. We evaluate the need to provide for reserves for potential losses on our financial instruments based on management’s periodic review of our portfolio on an instrument-by-instrument basis. Impairment of Long-Lived Assets We evaluate the recoverability of the carrying amount of our long-lived assets when events or circumstances, including significant physical changes, significant adverse changes in general economic conditions or significant deterioration of the underlying cash flows of the long-lived assets, indicate that the carrying amount of the long-lived assets may not be recoverable. The need to recognize an impairment charge is based on estimated undiscounted future cash flows compared to the carrying amount. If recognition of an impairment charge is necessary, it is measured as the amount by which the carrying amount of the property exceeds the estimated fair value of the long-lived asset. Revenue Recognition Rental Income - Our leases generally provide for rent escalators throughout the term of the lease. Base rental income is recognized using the straight-line method over the term of the lease to the extent that lease payments are considered collectable and the lease provides for specific contractual escalators. Under certain leases, we receive additional contingent rent, which is calculated on the increase in revenues of the tenant over a base year or base quarter. We recognize contingent rent annually or quarterly based on the actual revenues of the tenant once the target threshold has been achieved. Lease payments that depend on a factor directly related to future use of the property, such as an increase in annual revenues over a base year, are considered to be contingent rent and are excluded from the schedule of minimum lease payments. The Company reviews its operating lease receivables for collectability on a regular basis, taking into consideration changes in factors such as the tenant’s payment history, the financial condition of the tenant, business conditions in which the tenant operates and economic conditions in the area where the property is located. In the event that collectability with respect to any tenant is not probable, a direct write-off of the receivable is made as an adjustment to rental income and any future rental revenue is recognized only when the tenant makes a rental payment. Reference Note 3 for further discussion. Resident Fees and Services - Resident fee and services revenue associated with our SHOP activities is recognized as the related performance obligations are satisfied and includes resident room charges, community fees and other resident charges. Residency agreements are generally short-term (30 days to one year), and entitle the resident to certain room and care services for a monthly fee billed in advance. Revenue for certain related services is billed monthly in arrears. The Company has elected the lessor practical expedient within Accounting Standards Codification (“ASC”) 842, Leases, not to separate the lease and nonlease components within our resident agreements as the timing and pattern of transfer to the resident are the same. The Company has determined that the nonlease component is the predominant component within the contract and will recognize revenue under ASC 606, Revenue Recognition from Contracts with Customers. Interest Income from Mortgage and Other Notes Receivable Interest income is recognized based on the interest rates and principal amounts outstanding on the notes receivable. We identify a mortgage note as non-performing based on various criteria including timeliness of required payments, compliance with other provisions under the related note agreement, and an evaluation of the borrower’s current financial condition for indicators that it is probable it cannot pay its contractual amounts. A non-performing loan is returned to accrual status at such time as the note becomes contractually current and management believes all future principal and interest will be received according to the contractual terms of the note. As of March 31, 2024, we had two mortgage notes receivable and a mezzanine loan totaling an aggregate of $26.5 million due from affiliates of two operators/borrowers, including Bickford Senior Living (“Bickford”), designated as non-performing. Income Taxes We intend at all times to qualify as a REIT under Sections 856 through 860 of the Internal Revenue Code. Accordingly, we will generally not be subject to U.S. federal income tax, provided that we continue to qualify as a REIT and make distributions to stockholders equal to or in excess of 90% our taxable income. A failure to qualify under the applicable REIT qualification rules and regulations would have a material adverse impact on our financial position, results of operations and cash flows. Certain activities that we undertake may be conducted by subsidiary entities that have elected to be treated as taxable REIT subsidiaries (“TRSs”). TRSs are subject to federal, state, and local income taxes. Accordingly, a provision for income taxes has been made in the condensed consolidated financial statements. Segments We operate our business through two reportable segments: Real Estate Investments and SHOP. In our Real Estate Investments segment, we invest in (i) senior housing and healthcare real estate and lease those properties to healthcare operating companies under primarily triple-net leases that obligate tenants to pay all property-related expenses and (ii) mortgage and other notes receivable throughout the United States. Our SHOP segment is comprised of the operations of 15 ILFs located throughout the United States that are operated on behalf of the Company by independent managers pursuant to the terms of separate management agreements. Reference Notes 5 and 15 for additional information. Earnings Per Share Our unvested restricted stock awards contain non-forfeitable rights to dividends, and accordingly, these awards are deemed to be participating securities. Therefore, the Company applies the two-class method to calculate basic and diluted earnings. Under the two-class method, we allocate net income attributable to stockholders to common stockholders and holders of unvested restricted stock by using the weighted-average shares of each class outstanding for quarter-to-date and year-to-date periods, based on their respective participation rights to dividends declared and undistributed earnings. Basic earnings per common share is computed by dividing net income attributable to common stockholders by the weighted average number of shares of common stock outstanding during the period. Diluted earnings per common share reflects the effect of dilutive securities. Recent Accounting Pronouncements In November 2023, the Financial Accounting Standards Board issued Accounting Standard Update (“ASU”) 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. The ASU enhances segment disclosures by requiring public entities to provide investors with additional, more detailed information about a reportable segment’s expenses. The ASU also requires disclosure of the chief operating decision maker’s (“CODM”) title and position on an annual basis, as well as an explanation of how the CODM uses the reported measures and other disclosures. The amendment is effective for the Company for the year ending December 31, 2024. We are currently evaluating the impact of this standard on our consolidated financial statements and related disclosures.
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Real Estate [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investment Activity | Investment Activity Tenant Concentration The following table contains information regarding concentration in our Real Estate Investments portfolio of tenants or affiliates of tenants, that exceed 10% of total revenues for the three months ended March 31, 2024 and 2023, excluding $2.6 million for our corporate office, a credit loss reserve of $15.5 million and $348.7 million in real estate assets in the SHOP segment ($ in thousands):
1 Includes interest income on notes receivable and rental income from properties classified as assets held for sale. 2 Amounts include any properties classified as held for sale. 3 There is no tenant concentration in “Resident fees and services” because these agreements are with individual residents. At March 31, 2024, the two states in which we had an investment concentration of 10% or more were South Carolina (12.1%) and Texas (10.7%). Senior Living As of March 31, 2024, we leased ten retirement communities to Senior Living. We recognized straight-line rent revenue of $(0.7) million and $(0.3) million from Senior Living for the three months ended March 31, 2024 and 2023, respectively. NHC As of March 31, 2024, we leased three ILFs and 32 SNFs to NHC, a publicly held company, under a master lease (four of which are subleased to other parties for whom the lease payments are guaranteed to us by NHC). Straight-line rental revenue of $0.1 million and $(0.3) million was recognized from NHC for the three months ended March 31, 2024 and 2023, respectively. NHC Percentage Rent - Under the terms of our master lease agreement with NHC, rent escalates by 4% of the increase, if any, in each of the facility’s revenue over a base year and is referred to as “percentage rent.” The following table summarizes the percentage rent income from NHC ($ in thousands):
1 For purposes of the percentage rent calculation described in the master lease agreement, NHC’s annual revenue by facility for a given year is certified to NHI by March 31st of the following year. Two of the members of our Board of Directors, including our chairman, are also members of NHC’s board of directors. Bickford As of March 31, 2024, we leased 39 facilities to Bickford under four leases. During 2022, we converted Bickford to the cash basis of revenue recognition based upon information obtained from Bickford regarding its financial condition that raised substantial doubt as to its ability to continue as a going concern. During the three months ended March 31, 2024, Bickford repaid $1.5 million of its outstanding pandemic-related deferrals. During the three months ended March 31, 2023, Bickford repaid $0.2 million of its outstanding pandemic-related deferrals in addition to the reduction in deferrals of $2.5 million recognized in connection with the acquisition of an ALF located in Chesapeake, Virginia from Bickford through a note receivable conversion. As of March 31, 2024, Bickford’s outstanding pandemic-related rent deferrals were $16.5 million. Effective April 1, 2024, the combined rent for the portfolio was reset to $34.5 million per year through April 1, 2026, at which time the rent will be reset and will increase annually thereafter based on the Consumer Price Index. The minimum annual increase will be 2% with a cap on the annual increase of 3%. As part of the lease amendments, we agreed to fund up to $8.0 million of capital improvements on various properties. Rental revenue will increase at a lease rate of 8.0% applied to the amount expended. Assets Held for Sale and Long-Lived Assets As of March 31, 2024 and December 31, 2023, one property in our Real Estate Investments portfolio was classified as an asset held for sale with a net real estate balance of $5.0 million. Rental income associated with assets held for sale totaled $0.3 million and $0.5 million for the three months ended March 31, 2024 and 2023, respectively. In March 2024, we executed a purchase and sale agreement with a tenant to acquire its leased SLC for a purchase price of $38.5 million subject to the tenant’s ability to secure financing for the purchase. The purchase and sale agreement expires in December 2024. Until the tenant provides notification that it has obtained financing, the property continues to be classified as held and used and leased pursuant to the existing triple-net lease that generates approximately $2.9 million in annual rent and expires in July 2027. The property had a net investment of $19.6 million as of March 31, 2024. During the three months ended March 31, 2023, we recorded impairment charges of approximately $0.3 million on three properties in our Real Estate Investments segment. The impairment charges are included in “Loan and realty losses (gains)” in the Condensed Consolidated Statement of Income for the three months ended March 31, 2023. We reduce the carrying value of impaired properties to their estimated fair value or, with respect to the properties classified as assets held for sale, to estimated fair value less costs to sell. To estimate the fair values of the properties, we utilized a market approach which considered binding agreements for sales (Level 1 inputs), non-binding offers to purchase from unrelated third parties and/or broker quotes of estimated values (Level 3 inputs), and/or independent third-party valuations (Level 1 and 3 inputs). Cash Basis Operators We have three tenants on the cash basis of accounting for their leasing arrangements based on our assessment of each tenant’s ability to satisfy its contractual obligations. Cash rents received for the three months ended March 31, 2024 and 2023 were as follows ($ in thousands):
1Excludes $2.5 million of rental income related to the reduction of pandemic-related rent deferrals recognized in connection with the acquisition of an ALF from Bickford in 2023. Tenant Transition In the first quarter of 2024, we began negotiations with a tenant to transition its leased SNF located in Wisconsin to a new operator. We wrote off in the first quarter of 2024 the straight-line rent receivable of approximately $0.8 million associated with the existing lease that is expected to be terminated by the third quarter of 2024. Second Quarter 2024 Dispositions In the second quarter of 2024, we completed the sale of two ALFs located in Louisiana, previously leased to one of our tenants on cash basis, for net cash proceeds of $4.6 million, resulting in a gain of approximately $1.3 million. The properties were classified as held and used as of March 31, 2024 based on our assessment at that date of the buyer’s ability to obtain financing to complete the purchase. Tenant Purchase Options Certain of our leases contain purchase options allowing tenants to acquire the leased properties at a fixed base price plus a specified share in any appreciation or a fixed base price. At March 31, 2024, tenants had purchase options on three properties with an aggregate net investment of $58.0 million that will become exercisable between 2027 and 2028. Rental income from these properties with tenant purchase options was $1.8 million for both the three months ended March 31, 2024 and 2023, respectively. We cannot reasonably estimate at this time the probability that any purchase options will be exercised in the future. Consideration to be received from the exercise of any tenant purchase option is expected to exceed our net investment in the leased property or properties. Future Minimum Base Rent Future minimum lease payments to be received by us under our operating leases at March 31, 2024, were as follows ($ in thousands):
Variable Lease Payments Most of our leases contain annual escalators in rent payments. Some of our leases contain escalators that are determined annually based on a variable index or other factors that are indeterminable at the inception of the lease. The table below indicates the rental income recognized as a result of fixed and variable lease escalators ($ in thousands):
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Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Mortgage and Other Notes Receivable | Mortgage and Other Notes Receivable At March 31, 2024, our investments in mortgage notes receivable totaled $177.4 million secured by real estate and other assets of the borrowers (e.g., Uniform Commercial Code liens on personal property) related to 17 facilities and in other notes receivable totaled $96.9 million, substantially all of which are guaranteed by significant parties to the notes or by cross-collateralization of properties with the same owner. These balances exclude a credit loss reserve of $15.5 million at March 31, 2024. Our loans designated as non-performing as of March 31, 2024 and December 31, 2023 include a mortgage note receivable of $2.0 million and $2.1 million, respectively, due from Bickford and a mortgage note receivable of $10.0 million and a mezzanine loan of $14.5 million due from affiliates of one operator/borrower. This operator/borrower is also one of the tenants on the cash basis of accounting for its leases. Interest income recognized, representing cash received, from these non-performing loans was $0.5 million for both the three months ended March 31, 2024 and 2023. All other loans were on full accrual basis as of March 31, 2024. Carriage Crossing Senior Living Bloomington In February 2024, we funded $15.0 million on a mortgage note receivable with Carriage Crossing Senior Living Bloomington (“Carriage Crossing”), with an additional $2.0 million available to be funded contingent upon the performance of facility operations until March 31, 2027. The five year loan agreement has an annual interest rate of 8.75% and two one-year extensions. Montecito Medical Real Estate We have a $50.0 million mezzanine loan and security agreement with Montecito Medical Real Estate for a fund that invests in medical real estate, including medical office buildings, throughout the United States. As of March 31, 2024, we have funded $20.3 million of our commitment that was used to acquire nine medical office buildings for a combined purchase price of approximately $86.7 million. For the three months ended March 31, 2024 and 2023, we recognized interest income of $0.5 million and $0.4 million, respectively. Bickford Construction and Mortgage Loans As of March 31, 2024, we had one fully funded construction loan of $14.7 million to Bickford. The construction loan is secured by a first mortgage lien on substantially all of the related real and personal property as well as a pledge of any and all leases or agreements which may grant a right of use to the property. Usual and customary covenants extend to the agreement, including the borrower’s obligation for payment of insurance and taxes. NHI has a fair market value purchase option on the property upon stabilization of the underlying operations. At March 31, 2024, we held a $12.6 million second mortgage as a component of the purchase price consideration in connection with the sale of six properties to Bickford in 2021. This second mortgage note receivable bears interest at a 10% annual rate and matures in April 2026. Interest income was $0.3 million for both the three months ended March 31, 2024 and 2023, respectively, related to the second mortgage. We did not include this note receivable in the determination of the gain recognized upon sale of the portfolio. Therefore, this note receivable is not reflected in “Mortgage and other notes receivable, net” in the Condensed Consolidated Balance Sheets as of March 31, 2024 and December 31, 2023. During both the three months ended March 31, 2024 and 2023, Bickford repaid $0.1 million of principal on this note receivable which is reflected in “Gains on sale of real estate, net” in the Condensed Consolidated Statements of Income. Senior Living We have provided a $20.0 million revolving line of credit to Senior Living whose borrowings under the revolver are to be used for working capital needs and to finance construction projects within its portfolio, including building additional units. Beginning January 1, 2025, availability under the revolver will reduce to $15.0 million. The revolver matures in December 2029 at the time of lease maturity. At March 31, 2024, the $15.5 million outstanding under the revolver bore interest at 8.0% per annum. The Company also has a mortgage loan of $32.7 million with Senior Living that originated in July 2019 for the acquisition of a 248-unit continuing care retirement community (“CCRC”) in Columbia, South Carolina. The mortgage loan is for a term of five years with two one-year extensions and carries an interest rate of 7.25%. Additionally, the loan conveys to NHI a purchase option at a stated minimum price of $38.3 million, subject to adjustment for market conditions. Credit Loss Reserve Our principal measures of credit quality, except for construction mortgages, are debt service coverage for amortizing loans and interest or fixed charge coverage for non-amortizing loans, collectively referred to as “Coverage.” A Coverage ratio provides a measure of the borrower’s ability to make scheduled principal and interest payments. The Coverage ratios presented in the table below have been calculated utilizing the most recent date for which data is available, December 31, 2023, using EBITDARM (earnings before interest, taxes, depreciation, amortization, rent and management fees) and the requisite debt service, interest service or fixed charges, as defined in the applicable loan agreement. We categorize Coverage into three levels: (i) more than 1.5x, (ii) between 1.0x and 1.5x, and (iii) less than 1.0x. We update the calculation of Coverage on a quarterly basis. Coverage is not a meaningful credit quality indicator for construction mortgages as either these developments are not generating any operating income, or they have insufficient operating income as occupancy levels necessary to stabilize the properties have not yet been achieved. We measure credit quality for these mortgages by considering the construction and stabilization timeline and the financial condition of the borrower, as well as economic and market conditions. We consider the guidance in ASC 310-20, Receivables - Nonrefundable Fees and Other Costs, when determining whether a modification, extension or renewal constitutes a current period origination. The credit quality indicator as of March 31, 2024 is presented below for the amortized cost, net by year of origination ($ in thousands):
Due to the continuing challenges in financial markets and the potential impact on the collectability of our mortgages and other notes receivable, we forecasted a 20% increase in the probability of a default and a 20% increase in the amount of loss from a default on all loans, other than those designated as non-performing, resulting in an effective adjustment of 44%. The methodology for estimating the reserves for non-performing loans incorporates the sufficiency of the underlying collateral and the current conditions and forecasts of future economic conditions of these loans, including qualitative factors, which may differ from conditions existing in the historical period. The allowance for expected credit losses is presented in the following table for the three months ended March 31, 2024 ($ in thousands):
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Senior Housing Operating Portfolio Structure |
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Senior Housing Operating Portfolio Structure [Abstract] | |
Senior Housing Operating Portfolio Structure | Senior Housing Operating Portfolio Structure Our SHOP segment is comprised of two ventures that own the operations of 15 ILFs. These ventures are structured to comply with REIT requirements and utilize the TRS for activities that would otherwise be non-qualifying for REIT purposes. The properties in each venture are operated by a property manager in exchange for a management fee. The ventures were capitalized with preferred and common equity interests with the Company owning 100% of the preferred equity and a controlling common equity interest in each venture. The managers, or related parties of the managers, own a non-controlling common equity interest in their respective ventures. Each venture is discussed in more detail below. Merrill Managed Portfolio We have six ILFs located in California and Washington in a consolidated venture with Merrill which owns a 20% common equity interest in the venture. The operating agreement for the venture provides for contingent distributions to the members based on the attainment of certain yields on investment calculated on an annual basis. The properties are managed by Merrill pursuant to a management agreement with an initial term through March 2032 that automatically renews on a year-to-year basis thereafter unless terminated by either party with notice. The management agreement entitles Merrill to a base management fee of 5% of net revenue and a real estate services fee of 5% of real estate costs incurred during any calendar year that exceed $1,000 times the number of units at each facility. The noncontrolling interest associated with the venture was determined to be contingently redeemable and is classified in mezzanine equity as of March 31, 2024 and December 31, 2023, as discussed further in Note 10. Discovery Managed Portfolio We have nine ILFs located in Arkansas, Georgia, Ohio, Oklahoma, New Jersey, and South Carolina in a consolidated venture with the Discovery member which owns a 2% common equity interest in the venture. The operating agreement for the venture provides for contingent distributions to the members based on the attainment of certain yields on investment calculated on an annual basis. The noncontrolling interest associated with the venture is included in “Equity” on the Condensed Consolidated Balance Sheets as of March 31, 2024 and December 31, 2023. The properties are managed by separate related parties of Discovery pursuant to management agreements, each with an initial term through March 2032 that automatically renews on a year-to-year basis thereafter unless terminated by either party with notice. The management agreements entitle the managers to a base management fee of 5% of net revenue.
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Equity Method Investment |
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Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investment | Equity Method Investment Concurrently with the acquisition of a CCRC from LCS-Westminster Partnership III, LLP in January 2020, we invested $0.9 million in the operating company, Timber Ridge OpCo, LLC (“Timber Ridge OpCo”), representing a 25.0% equity interest. This investment is held by our TRS to be compliant with the provisions of the REIT Investment Diversification and Empowerment Act of 2007. As part of our investment, we provided Timber Ridge OpCo a revolving credit facility of up to $5.0 million of which no funds have been drawn. We account for our investment in Timber Ridge OpCo under the equity method and decrease the carrying value of our investment for losses in the entity and distributions to NHI for cumulative amounts up to and including our basis plus any guaranteed or implied commitments to fund operations. In February 2023, we received $2.5 million from Timber Ridge OpCo representing the Company’s proportionate share of the lease incentive earned, as discussed in Note 7, based on its equity interest in the entity. Our guaranteed and implied commitments are currently limited to the additional $5.0 million under the revolving credit facility and the $2.5 million lease incentive distribution received. As of March 31, 2024, we have recognized our share of Timber Ridge OpCo’s operating losses in excess of our initial investment. These cumulative losses of $5.0 million in excess of our original basis and the $2.5 million lease incentive distribution received are included in “Accounts payable and accrued expenses” in our Condensed Consolidated Balance Sheet as of March 31, 2024. Excess unrecognized equity method losses for this investment for both the three months ended March 31, 2024 and 2023 were $0.6 million. Cumulative unrecognized losses for this investment were $9.9 million through March 31, 2024. We recognized gains of approximately $0.2 million, representing cash distributions received related to our investment in Timber Ridge OpCo for the three months ended March 31, 2024. The Timber Ridge property is subject to early resident mortgages secured by a Deed of Trust and Indenture of Trust (the “Deed and Indenture”). As part of our acquisition, NHI-LCS JV I, LLC (“Timber Ridge PropCo”) acquired the Timber Ridge CCRC property and a subordination agreement was entered into pursuant to which the trustee acknowledged and confirmed that the security interests created under the Deed and Indenture were subordinate to any security interests granted in connection with the loan made by NHI to Timber Ridge PropCo. In addition, under the terms of the resident loan assumption agreements, during the term of the lease (seven years with two renewal options), Timber Ridge OpCo is to indemnify Timber Ridge PropCo for any repayment by Timber Ridge PropCo of these early resident mortgage liabilities under the guarantee. As a result of the subordination agreement and the resident loan assumption agreements, no liability has been recorded as of March 31, 2024. The balance secured by the Deed and Indenture was $11.8 million at March 31, 2024.
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Other Assets | Other Assets Other assets, net consist of the following ($ in thousands):
In February 2023, Timber Ridge PropCo, the consolidated senior housing partnership with LCS that owns the Timber Ridge CCRC, paid a $10.0 million lease incentive earned by Timber Ridge OpCo. The lease incentive is being amortized on a straight-line basis through the remaining initial lease term ending January 2027.
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Debt | Debt Debt consisted of the following ($ in thousands):
Aggregate principal maturities of debt as of March 31, 2024 were as follows ($ in thousands):
Unsecured revolving credit facility and bank term loan Our unsecured bank credit facility consists of a $700.0 million unsecured revolving credit facility (the “2022 Credit Agreement”) that matures in March 2026, but may be extended at our option, subject to the satisfaction of certain conditions, for two additional six-month periods. Borrowings under the 2022 Credit Agreement bear interest, at our election, at one of the following (i) Term Secured Overnight Financing Rate (“SOFR”) (plus a credit spread adjustment) plus a margin ranging from 0.725% to 1.40%, (ii) Daily SOFR (plus a credit spread adjustment) plus a margin ranging from 0.725% to 1.40% or (iii) the base rate plus a margin ranging from 0.00% to 0.40%. In each election, the actual margin is determined according to our credit ratings. The base rate means, for any day, a fluctuating rate per annum equal to the highest of (i) the agent’s prime rate, (ii) the federal funds rate on such day plus 0.50% or (iii) the adjusted Term SOFR for a one-month tenor in effect on such day plus 1.0%. In addition, the 2022 Credit Agreement requires a facility fee equal to 0.125% to 0.30%, based on our credit rating. We have a $200.0 million term loan agreement (the “2025 Term Loan”) that matures June 2025 and bears interest at a variable rate which is SOFR-based with a margin determined according to our credit ratings plus a 0.10% credit spread adjustment. At March 31, 2024, we had $451.5 million available to draw on the revolving portion of our credit facility, subject to usual and customary covenants. Among other stipulations, the unsecured credit facility agreement requires that we maintain certain financial ratios within limits set by our creditors. At March 31, 2024, we were in compliance with these ratios. Pinnacle Bank is a participating member of our banking group. A member of NHI’s Board of Directors and chairperson of the Audit Committee of the Board of Directors is also the chairman of Pinnacle Financial Partners, Inc., the holding company for Pinnacle Bank. NHI’s local banking transactions are conducted primarily through Pinnacle Bank. 2031 Senior Notes In January 2021, we issued $400.0 million in aggregate principal amount of 3.00% senior notes that mature on February 1, 2031 and pay interest semi-annually (the “2031 Senior Notes”). The 2031 Senior Notes were sold at an issue price of 99.196% of face value before the underwriters’ discount. Our net proceeds from the 2031 Senior Notes offering, after deducting underwriting discounts and expenses, were approximately $392.3 million. The 2031 Senior Notes are subject to affirmative and negative covenants, including financial covenants with which we were in compliance at March 31, 2024. Private Placement Notes Our unsecured private placement notes as of March 31, 2024, payable interest-only, are summarized below ($ in thousands):
Covenants pertaining to the unsecured private placement notes are generally conformed with those governing our credit facility, except for specific debt-coverage ratios that are more restrictive. Our unsecured private placement notes include a rate increase provision that is effective if any rating agency lowers our credit rating on our senior unsecured debt below investment grade and our compliance leverage increases to 50% or more. Fannie Mae Term Loans As of March 31, 2024, we had $60.1 million in Fannie Mae term-debt financing, that originated in March 2015, requiring interest-only payments at an annual rate of 3.79% with a 10-year maturity. The mortgages are non-recourse and secured by 11 properties leased to Bickford. In a December 2017 acquisition, we assumed additional Fannie Mae debt that amortizes through 2025 when a balloon payment will be due, is subject to prepayment penalties until September 2024, bears interest at a rate of 4.60%, and has a remaining balance of $16.0 million at March 31, 2024. Collectively, the Fannie Mae debt is secured by properties having a net book value of $100.0 million at March 31, 2024. Interest Expense The following table summarizes interest expense ($ in thousands):
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Commitments. Contingencies and Uncertainties |
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Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||
Commitments, Contingencies and Uncertainties | Commitments, Contingencies and Uncertainties In the normal course of business, we enter into a variety of commitments, typically consisting of funding revolving credit arrangements, construction and mezzanine loans to our operators to conduct expansions and acquisitions for their own account, and commitments for the funding of construction for expansion or renovation to our existing properties under lease. In our leasing operations, we offer to our tenants and to sellers of newly acquired properties a variety of inducements that originate contractually as contingencies but which may become commitments upon the satisfaction of the contingent event. Contingent payments earned will be included in the respective lease bases when funded. As of March 31, 2024, we had working capital, mortgage, construction and mezzanine loan commitments to six operators or borrowers for an aggregate of $132.7 million, of which we had funded $88.5 million toward these commitments. Loan funded amounts do not reflect the effects of discounts or commitment fees. As of March 31, 2024, we had $15.5 million of development commitments for construction and renovation for four properties of which we had funded $12.6 million toward these commitments. One of our consolidated real estate partnerships, NHI-REIT of DSL PropCo, LLC, has committed to fund up to $2.0 million toward the purchase of condominium units located at one of the facilities of which $1.0 million had been funded as of March 31, 2024. As of March 31, 2024, we had an aggregate of $8.9 million in remaining contingent lease inducement commitments in four lease agreements which are generally based on the performance of facility operations and may or may not be met by the tenant. In the second quarter of 2024, we committed to fund up to $8.0 million and $10.0 million to Bickford and Senior Living, respectively, for capital improvements on various properties in their leased portfolios. Rental revenue will increase at a lease rate of no less than 8.0% applied to the amount expended. See Note 3 for more detail. The credit loss liability for unfunded loan commitments is estimated using the same methodology as used for our funded mortgage and other notes receivable based on the estimated amount that we expect to fund. We applied the same market adjustments as discussed in Note 4. The liability for expected credit losses on our unfunded loan commitments reflected in “Accounts payable and accrued expenses” on the Condensed Consolidated Balance Sheets as of March 31, 2024 and December 31, 2023 is presented in the following table for the three months ended March 31, 2024 ($ in thousands):
Litigation Our facilities are subject to claims and suits in the ordinary course of business. Such claims may include, among other things professional liability and general liability claims, as well as regulatory proceedings related to our SHOP segment. Our managers, tenants and borrowers have indemnified, and are obligated to continue to indemnify us, against all liabilities arising from the operation of the facilities, and are further obligated to indemnify us against environmental or title problems affecting the real estate underlying such facilities. While there may be lawsuits pending against us and certain of the owners and/or lessees of the facilities, management believes that the ultimate resolution of all such pending proceedings will have no direct material adverse effect on our financial condition, results of operations or cash flows.
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Redeemable Noncontrolling Interests |
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Noncontrolling Interest [Abstract] | |||||||||||||||||||||||||||||||||||||||||||
Redeemable Noncontrolling Interests | Redeemable Noncontrolling Interest The interest held by Merrill in its SHOP venture was classified as a “Redeemable noncontrolling interest” in the mezzanine section between “Total liabilities” and “Stockholders’ equity” on our Condensed Consolidated Balance Sheets as of March 31, 2024 and December 31, 2023. Certain provisions within the operating agreement of the Merrill venture provide Merrill with put rights upon certain contingent events that are not solely within the control of the Company. Therefore, Merrill’s noncontrolling interest was determined to be contingently redeemable. The redeemable noncontrolling interest is not currently redeemable and we concluded a contingent redemption event is not probable to occur as of March 31, 2024. Consequently, the noncontrolling interest will not be subsequently remeasured to its redemption amount until such contingent event and the related redemption are probable to occur. We will continue to reflect the attribution of gains or losses to the redeemable noncontrolling interest in each period. The following table presents the change in “Redeemable noncontrolling interest” for the three months ended March 31, 2024 ($ in thousands):
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Equity and Dividends |
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Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity and Dividends | Equity and Dividends Share Repurchase Plan On February 16, 2024, our Board of Directors renewed our stock repurchase program (the “Repurchase Plan”) pursuant to which we may purchase up to $160.0 million in shares of our issued and outstanding common stock, par value $0.01 per share. The Repurchase Plan is effective for a period of one year and does not require us to repurchase any specific number of shares. The Repurchase Plan may be suspended or discontinued at any time. Shares may be repurchased from time-to-time in open market transactions at prevailing market prices, in privately negotiated transactions or by other means in accordance with the terms of Rule 10b-18 of the Securities Exchange Act of 1934, as amended, and repurchases shall be made in accordance with all applicable laws and regulations in effect. The timing and number of shares repurchased, if any, will depend on a variety of factors, including price, general market and economic conditions, alternative investment opportunities and other corporate considerations. No common stock was repurchased during the three months ended March 31, 2024 and 2023. At-the-Market (ATM) Equity Program We maintain an ATM equity program which allows us to sell our common stock directly into the market and have entered into an ATM equity offering sales agreement pursuant to which the Company may sell, from time to time, up to an aggregate sales price of $500.0 million of the Company’s common shares. No shares were issued under the ATM equity program during the three months ended March 31, 2024 and 2023. Dividends The following table summarizes dividends declared by the Board of Directors or paid during the three months ended March 31, 2024 and 2023:
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Share-Based Compensation |
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Share-Based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-Based Compensation | Share-Based Compensation The Company’s outstanding stock incentive awards have been granted under two incentive plans – the 2012 Stock Incentive Plan and the 2019 Stock Incentive Plan, as amended and restated (the “2019 Plan”). During the three months ended March 31, 2024, we granted options to purchase 431,000 shares of common stock under the 2019 Plan. In February 2024, 15,000 shares of restricted stock were issued to executive officers with a grant date fair value of $57.76 per share based on the market value of our common stock on the date of grant. The restricted stock will vest over five years, with 20% vesting on each anniversary of the date of grant. The restricted stock awards contain non-forfeitable rights to dividends or dividend equivalents during the vesting periods. The weighted average fair value of options granted during the three months ended March 31, 2024 and 2023 was $7.36 and $10.56 per option, respectively. The fair value of each grant is estimated on the date of grant using the Black-Scholes option-pricing model with the following weighted average assumptions:
The following table summarizes our outstanding stock options:
At March 31, 2024, the intrinsic value of stock options outstanding and exercisable was $11.1 million and $9.1 million, respectively. The following is a summary of share-based compensation expense, net of any forfeitures, included in “General and administrative expenses” in the Condensed Consolidated Statements of Income ($ in thousands):
As of March 31, 2024, unrecognized compensation expense totaling $3.7 million associated with stock-based awards was expected to be recognized over the following periods: remainder of 2024 - $2.0 million, 2025 - $1.1 million, 2026 - $0.3 million, 2027 - $0.1 million, and thereafter - $0.1 million.
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Earnings Per Common Share |
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Earnings Per Common Share | Earnings Per Common Share The following table summarizes the average number of common shares and the net income used in the calculation of basic and diluted earnings per common share ($ in thousands, except share and per share amounts):
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Fair Value of Financial Instruments |
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Fair Value of Financial Instruments | Fair Value of Financial Instruments Carrying amounts and fair values of financial instruments that are not carried at fair value at March 31, 2024 and December 31, 2023 in the Condensed Consolidated Balance Sheets are as follows ($ in thousands):
Fixed rate debt. Fixed rate debt is classified as Level 2 and its fair value is based on quoted prices for similar instruments or calculated utilizing model derived valuations in which significant inputs are observable in active markets. Variable rate debt. Variable rate debt is classified as Level 2 and the fair values of our borrowings under our revolving credit facility and other variable rate debt are reasonably estimated at their notional amounts due to the predominance of floating interest rates, which generally reflect market conditions. Mortgage and other notes receivable. The fair value of mortgage and other notes receivable is based on credit risk and discount rates that are not observable in the marketplace and therefore represents a Level 3 measurement. Carrying amounts of cash and cash equivalents and restricted cash, accounts receivable and accounts payable approximate fair value due to their short-term nature and are classified as Level 1.
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Segment Reporting |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting | Segment Reporting We evaluate our business and make resource allocations on our two operating segments: Real Estate Investments and SHOP. Our Real Estate Investments segment includes leases, mortgages and other note investments in ILFs, ALFs, EFCs, SLCs, SNFs and a HOSP. Under the Real Estate Investments segment, we invest in senior housing and healthcare real estate through acquisition and financing of primarily single-tenant properties. Properties acquired are primarily leased under triple-net leases, and we are not involved in the management of the properties. The SHOP segment includes multi-tenant ILFs. The SHOP properties and related operations are controlled by the Company and are operated by property managers in exchange for a management fee. See Note 5 for further discussion. Our chief operating decision maker evaluates performance based upon segment net operating income (“NOI”). We define NOI as total revenues, less tenant reimbursements and property operating expenses. We use NOI to make decisions about resource allocations and to assess the property level performance of our properties. There were no intersegment transactions for either the three months ended March 31, 2024 or 2023. Capital expenditures for the three months ended March 31, 2024 were approximately $1.7 million for the Real Estate Investments segment and $1.3 million for the SHOP segment. Capital expenditures for the three months ended March 31, 2023 were approximately $55.8 million for the Real Estate Investments segment and $1.1 million for the SHOP segment. Non-segment revenue consists mainly of other income. Non-segment assets consist of corporate assets including cash, deferred loan expenses and corporate offices and equipment among others. Non-property specific revenues and expenses are not allocated to individual segments in determining NOI. The accounting policies of the segments are the same as those described in the summary of significant accounting policies discussed in Note 2. Summary information for the reportable segments during the three months ended March 31, 2024 and 2023 is as follows ($ in thousands):
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Variable Interest Entities |
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Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Variable Interest Entities | Variable Interest Entities Consolidated Variable Interest Entities SHOP - The assets of the SHOP ventures primarily consist of real estate properties, cash and cash equivalents, and resident fees and services (accounts receivable). The obligations of the ventures primarily consist of operating expenses of the ILFs (accounts payable and accrued expenses) and capital expenditures for the properties. Aggregate assets of the consolidated SHOP ventures that can be used only to settle obligations of each respective SHOP venture primarily include approximately $259.6 million and $260.7 million of real estate properties, net, $2.9 million and $7.7 million of cash and cash equivalents, $2.6 million and $1.7 million of other assets, net, as of March 31, 2024 and December 31, 2023, respectively. Liabilities of the consolidated SHOP ventures for which creditors do not have recourse to the general credit of the Company are $2.6 million and $4.7 million as of March 31, 2024 and December 31, 2023, respectively. Reference Notes 5 and 10 for further discussion of these ventures. Real Estate Partnerships - The aggregate assets of the two consolidated real estate partnerships that can be used only to settle obligations of each respective partnership as of March 31, 2024 and December 31, 2023 include approximately $250.5 million and $252.5 million of real estate properties, net, $9.7 million and $9.7 million in straight-line rent receivable, $2.5 million and $3.2 million of cash and cash equivalents and $7.2 million and $7.8 million of other assets, net, respectively. Liabilities of these partnerships for which creditors do not have recourse to the general credit of the Company are not material. Unconsolidated Variable Interest Entities The Company’s unconsolidated VIEs are summarized below by date of initial involvement. For further discussion of the nature of the relationships, including the sources of exposure to these VIEs, see the notes to our condensed consolidated financial statements cross-referenced below ($ in thousands).
1 Notes, straight-line rent receivable, and lease receivables 2 Loan commitment, equity method investment, straight-line rent receivable and unamortized lease incentive 3 Development commitments, straight-line rent receivable, and unamortized lease incentive 4 Represents two mezzanine loans originated from the sales of real estate We are not obligated to provide support beyond our stated commitments to these tenants and borrowers whom we classify as VIEs, and accordingly, our maximum exposure to loss as a result of these relationships is limited to the amount of our commitments, as shown above and discussed in the notes. Economic loss on a lease, in excess of what is presented in the table above, if any, would be limited to that resulting from any period of non-payment of rent before we are able to take effective remedial action, as well as costs incurred in transitioning the lease to a new tenant. The potential extent of such loss would be dependent upon individual facts and circumstances, and is therefore not included in the table above. In the future, NHI may be deemed the primary beneficiary of the operations if the tenants or borrowers do not have adequate liquidity to accept the risks and rewards as the tenants and operators of the properties and NHI may be required to consolidate the financial position and results of operations of the tenants or borrowers into our condensed consolidated financial statements.
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Pay vs Performance Disclosure - USD ($) $ in Thousands |
3 Months Ended | |
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Mar. 31, 2024 |
Mar. 31, 2023 |
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Pay vs Performance Disclosure | ||
Net Income (Loss) | $ 30,947 | $ 34,484 |
Insider Trading Arrangements |
3 Months Ended |
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Mar. 31, 2024 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Basis of Presentation and Significant Accounting Policies (Policy) |
3 Months Ended |
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Mar. 31, 2024 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with United States generally accepted accounting principles (“GAAP”) for interim financial statements. In our opinion, the accompanying unaudited condensed consolidated financial statements reflect all adjustments consisting of normal recurring adjustments necessary for a fair presentation. Interim results of operations are not necessarily indicative of the results that may be achieved for a full year. The condensed consolidated financial statements and related notes do not include all information and footnotes required by GAAP for annual reports. These interim condensed consolidated financial statements should be read in conjunction with our audited consolidated financial statements and notes thereto as of and for the year ended December 31, 2023, included in our Annual Report on Form 10-K for the year ended December 31, 2023 filed with the Securities and Exchange Commission (the “SEC”).
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Principles of Consolidation | Principles of Consolidation The condensed consolidated financial statements include the accounts of the Company, and its wholly owned subsidiaries, joint ventures and subsidiaries in which we have a controlling interest. We also consolidate certain entities when control of such entities can be achieved through means other than voting rights (“variable interest entities” or “VIEs”) if the Company is deemed to be the primary beneficiary of such entities. All material intercompany transactions and balances are eliminated in consolidation. Our consolidated total assets and liabilities include two consolidated ventures comprising our SHOP activities, each formed with a separate partner - Merrill Gardens, L.L.C. (“Merrill”) and DSHI NHI Holiday LLC (the “Discovery member”), a related party of Discovery Senior Living (“Discovery”). We consider both ventures to be VIEs as the members of each, as a group, lack the characteristics of a controlling financial interest. We are deemed to be the primary beneficiary of each VIE because we have the ability to control the activities that most significantly impact each VIE’s economic performance. Reference Notes 5 and 16 for further discussion of our SHOP ventures. We also consolidate two real estate partnerships formed with our partners, Discovery Senior Housing Investor XXIV, LLC, a related party of Discovery and LCS Timber Ridge LLC (“LCS”) to invest in senior housing facilities. We consider both partnerships to be VIEs, as either the members, as a group, lack the characteristics of a controlling financial interest or the total equity at risk is insufficient to finance activities without additional subordinated financial support. NHI directs the activities that most significantly impact economic performance of these partnerships, subject to limited protective rights extended to our partners for specified business decisions. Because of our control of these partnerships, we include their assets, liabilities, noncontrolling interests and operations in our condensed consolidated financial statements. Reference Note 16 for further discussion of these real estate partnerships. We use the equity method of accounting when we own an interest in an entity over which we can exert significant influence but cannot control the entity’s operations. We discontinue equity method accounting if our investment in an entity (and net advances) is reduced to zero unless we have guaranteed obligations of the entity or are otherwise committed to provide further financial support for the entity. Reference Note 6 for further discussion of our equity method investment. We have concluded that the Company is not the primary beneficiary for certain investments where we lack either directly or through related parties the power to direct the activities that most significantly impact their economic performance. See Note 16 for information on unconsolidated VIEs.
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Noncontrolling Interests | Noncontrolling Interests Contingently redeemable noncontrolling interests are recorded at their initial carrying amounts upon issuance and are subsequently adjusted to reflect their share of gains or losses and distributions attributable to the noncontrolling interests. In periods where they are or will become probable of redemption, an adjustment to the redemption value of the noncontrolling interests is also recognized through “Capital in excess of par value” on the Company’s Condensed Consolidated Balance Sheets and included in our computation of earnings per share. As of March 31, 2024, the Merrill SHOP venture noncontrolling interest was classified in mezzanine equity, as discussed further in Note 10.
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Cash and Cash Equivalents and Restricted Cash | Cash and Cash Equivalents and Restricted Cash Cash equivalents consist of all highly liquid investments with original maturities of three months or less. Restricted cash includes amounts required to be held on deposit or subject to an agreement (e.g., with a qualified intermediary subject to an exchange agreement pursuant to Section 1031 of the Internal Revenue Code of 1986, as amended (the “Internal Revenue Code”) or in accordance with agency agreements governing our mortgages).
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Concentration of Credit Risks | Concentration of Credit Risks Our credit risks primarily relate to cash and cash equivalents and investments in mortgage and other notes receivable. Cash and cash equivalents are primarily held in bank accounts and overnight investments. We maintain our bank deposit accounts with large financial institutions in amounts that may exceed federally insured limits. We have not experienced any losses in such accounts. Our mortgage and other notes receivable consist primarily of secured loans on facilities. Our financial instruments, principally our investments in notes receivable, are subject to the possibility of loss of the carrying values as a result of the failure of other parties to perform according to their contractual obligations which may make the instruments less valuable. We obtain collateral in the form of mortgage liens and other protective rights for notes receivable and continually monitor these rights in order to reduce such possibilities of loss. We evaluate the need to provide for reserves for potential losses on our financial instruments based on management’s periodic review of our portfolio on an instrument-by-instrument basis.
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Impairment of Long-Lived Assets | Impairment of Long-Lived Assets We evaluate the recoverability of the carrying amount of our long-lived assets when events or circumstances, including significant physical changes, significant adverse changes in general economic conditions or significant deterioration of the underlying cash flows of the long-lived assets, indicate that the carrying amount of the long-lived assets may not be recoverable. The need to recognize an impairment charge is based on estimated undiscounted future cash flows compared to the carrying amount. If recognition of an impairment charge is necessary, it is measured as the amount by which the carrying amount of the property exceeds the estimated fair value of the long-lived asset.
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Revenue Recognition | Revenue Recognition Rental Income - Our leases generally provide for rent escalators throughout the term of the lease. Base rental income is recognized using the straight-line method over the term of the lease to the extent that lease payments are considered collectable and the lease provides for specific contractual escalators. Under certain leases, we receive additional contingent rent, which is calculated on the increase in revenues of the tenant over a base year or base quarter. We recognize contingent rent annually or quarterly based on the actual revenues of the tenant once the target threshold has been achieved. Lease payments that depend on a factor directly related to future use of the property, such as an increase in annual revenues over a base year, are considered to be contingent rent and are excluded from the schedule of minimum lease payments. The Company reviews its operating lease receivables for collectability on a regular basis, taking into consideration changes in factors such as the tenant’s payment history, the financial condition of the tenant, business conditions in which the tenant operates and economic conditions in the area where the property is located. In the event that collectability with respect to any tenant is not probable, a direct write-off of the receivable is made as an adjustment to rental income and any future rental revenue is recognized only when the tenant makes a rental payment. Reference Note 3 for further discussion. Resident Fees and Services - Resident fee and services revenue associated with our SHOP activities is recognized as the related performance obligations are satisfied and includes resident room charges, community fees and other resident charges. Residency agreements are generally short-term (30 days to one year), and entitle the resident to certain room and care services for a monthly fee billed in advance. Revenue for certain related services is billed monthly in arrears. The Company has elected the lessor practical expedient within Accounting Standards Codification (“ASC”) 842, Leases, not to separate the lease and nonlease components within our resident agreements as the timing and pattern of transfer to the resident are the same. The Company has determined that the nonlease component is the predominant component within the contract and will recognize revenue under ASC 606, Revenue Recognition from Contracts with Customers.
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Interest Income from Mortgage and Other Notes Receivable | Interest Income from Mortgage and Other Notes Receivable Interest income is recognized based on the interest rates and principal amounts outstanding on the notes receivable. We identify a mortgage note as non-performing based on various criteria including timeliness of required payments, compliance with other provisions under the related note agreement, and an evaluation of the borrower’s current financial condition for indicators that it is probable it cannot pay its contractual amounts. A non-performing loan is returned to accrual status at such time as the note becomes contractually current and management believes all future principal and interest will be received according to the contractual terms of the note.
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Income Taxes | Income Taxes We intend at all times to qualify as a REIT under Sections 856 through 860 of the Internal Revenue Code. Accordingly, we will generally not be subject to U.S. federal income tax, provided that we continue to qualify as a REIT and make distributions to stockholders equal to or in excess of 90% our taxable income. A failure to qualify under the applicable REIT qualification rules and regulations would have a material adverse impact on our financial position, results of operations and cash flows. Certain activities that we undertake may be conducted by subsidiary entities that have elected to be treated as taxable REIT subsidiaries (“TRSs”). TRSs are subject to federal, state, and local income taxes. Accordingly, a provision for income taxes has been made in the condensed consolidated financial statements.
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Segments | Segments We operate our business through two reportable segments: Real Estate Investments and SHOP. In our Real Estate Investments segment, we invest in (i) senior housing and healthcare real estate and lease those properties to healthcare operating companies under primarily triple-net leases that obligate tenants to pay all property-related expenses and (ii) mortgage and other notes receivable throughout the United States. Our SHOP segment is comprised of the operations of 15 ILFs located throughout the United States that are operated on behalf of the Company by independent managers pursuant to the terms of separate management agreements. Reference Notes 5 and 15 for additional information.
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Earnings Per Share | Earnings Per Share Our unvested restricted stock awards contain non-forfeitable rights to dividends, and accordingly, these awards are deemed to be participating securities. Therefore, the Company applies the two-class method to calculate basic and diluted earnings. Under the two-class method, we allocate net income attributable to stockholders to common stockholders and holders of unvested restricted stock by using the weighted-average shares of each class outstanding for quarter-to-date and year-to-date periods, based on their respective participation rights to dividends declared and undistributed earnings. Basic earnings per common share is computed by dividing net income attributable to common stockholders by the weighted average number of shares of common stock outstanding during the period. Diluted earnings per common share reflects the effect of dilutive securities
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Recent Accounting Pronouncements | Recent Accounting Pronouncements In November 2023, the Financial Accounting Standards Board issued Accounting Standard Update (“ASU”) 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. The ASU enhances segment disclosures by requiring public entities to provide investors with additional, more detailed information about a reportable segment’s expenses. The ASU also requires disclosure of the chief operating decision maker’s (“CODM”) title and position on an annual basis, as well as an explanation of how the CODM uses the reported measures and other disclosures. The amendment is effective for the Company for the year ending December 31, 2024. We are currently evaluating the impact of this standard on our consolidated financial statements and related disclosures.
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Basis of Presentation and Significant Accounting Policies (Tables) |
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Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Cash and Cash Equivalents | The following table sets forth our “Cash and cash equivalents and restricted cash” reported within the Company’s Condensed Consolidated Statements of Cash Flows ($ in thousands):
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Schedule of Restrictions on Cash and Cash Equivalents | The following table sets forth our “Cash and cash equivalents and restricted cash” reported within the Company’s Condensed Consolidated Statements of Cash Flows ($ in thousands):
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Investment Activity (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Real Estate [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Tenant Concentrations | The following table contains information regarding concentration in our Real Estate Investments portfolio of tenants or affiliates of tenants, that exceed 10% of total revenues for the three months ended March 31, 2024 and 2023, excluding $2.6 million for our corporate office, a credit loss reserve of $15.5 million and $348.7 million in real estate assets in the SHOP segment ($ in thousands):
1 Includes interest income on notes receivable and rental income from properties classified as assets held for sale. 2 Amounts include any properties classified as held for sale. 3 There is no tenant concentration in “Resident fees and services” because these agreements are with individual residents.
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Summary of NHC Percentage Rent | The following table summarizes the percentage rent income from NHC ($ in thousands):
1 For purposes of the percentage rent calculation described in the master lease agreement, NHC’s annual revenue by facility for a given year is certified to NHI by March 31st of the following year.
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Schedule of Cash Rents Received | Cash rents received for the three months ended March 31, 2024 and 2023 were as follows ($ in thousands):
1Excludes $2.5 million of rental income related to the reduction of pandemic-related rent deferrals recognized in connection with the acquisition of an ALF from Bickford in 2023.
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Schedule of Future Minimum Base Rent | Future minimum lease payments to be received by us under our operating leases at March 31, 2024, were as follows ($ in thousands):
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Schedule of Fixed and Variable Lease Payments | The table below indicates the rental income recognized as a result of fixed and variable lease escalators ($ in thousands):
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Mortgage And Other Notes Receivable (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Financing Receivable Credit Quality Indicators | The credit quality indicator as of March 31, 2024 is presented below for the amortized cost, net by year of origination ($ in thousands):
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Schedule of Financing Receivable, Allowance for Credit Loss | The allowance for expected credit losses is presented in the following table for the three months ended March 31, 2024 ($ in thousands):
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Other Assets (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Other Assets | Other assets, net consist of the following ($ in thousands):
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Debt (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Instruments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Debt | Debt consisted of the following ($ in thousands):
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Schedule of Maturities of Long-term Debt | Aggregate principal maturities of debt as of March 31, 2024 were as follows ($ in thousands):
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Schedule of Unsecured Term Loans | Our unsecured private placement notes as of March 31, 2024, payable interest-only, are summarized below ($ in thousands):
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Schedule of Interest Expense | The following table summarizes interest expense ($ in thousands):
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Commitments. Contingencies and Uncertainties (Tables) |
3 Months Ended | ||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||
Schedule of Off Balance Sheet, Credit Loss, Liability, Roll Forward | The liability for expected credit losses on our unfunded loan commitments reflected in “Accounts payable and accrued expenses” on the Condensed Consolidated Balance Sheets as of March 31, 2024 and December 31, 2023 is presented in the following table for the three months ended March 31, 2024 ($ in thousands):
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Redeemable Noncontrolling Interest (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||
Noncontrolling Interest [Abstract] | |||||||||||||||||||||||||||||||||||||||||||
Schedule of Redeemable Noncontrolling Interest | The following table presents the change in “Redeemable noncontrolling interest” for the three months ended March 31, 2024 ($ in thousands):
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Equity and Dividends (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Dividends Declared | The following table summarizes dividends declared by the Board of Directors or paid during the three months ended March 31, 2024 and 2023:
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Share-Based Compensation (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-Based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions | The fair value of each grant is estimated on the date of grant using the Black-Scholes option-pricing model with the following weighted average assumptions:
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Schedule of Stock Option Activity | The following table summarizes our outstanding stock options:
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Schedule of Disclosure of Share-Based Compensation Arrangements by Share-Based Payment Award | The following is a summary of share-based compensation expense, net of any forfeitures, included in “General and administrative expenses” in the Condensed Consolidated Statements of Income ($ in thousands):
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Earnings Per Common Share (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Earnings Per Share, Basic and Diluted | The following table summarizes the average number of common shares and the net income used in the calculation of basic and diluted earnings per common share ($ in thousands, except share and per share amounts):
|
Fair Value of Financial Instruments (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Fair Value Measurements, Nonrecurring | Carrying amounts and fair values of financial instruments that are not carried at fair value at March 31, 2024 and December 31, 2023 in the Condensed Consolidated Balance Sheets are as follows ($ in thousands):
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Segment Reporting (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Segment Reporting Information, by Segment | Summary information for the reportable segments during the three months ended March 31, 2024 and 2023 is as follows ($ in thousands):
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Variable Interest Entities (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Variable Interest Entities | The Company’s unconsolidated VIEs are summarized below by date of initial involvement. For further discussion of the nature of the relationships, including the sources of exposure to these VIEs, see the notes to our condensed consolidated financial statements cross-referenced below ($ in thousands).
1 Notes, straight-line rent receivable, and lease receivables 2 Loan commitment, equity method investment, straight-line rent receivable and unamortized lease incentive 3 Development commitments, straight-line rent receivable, and unamortized lease incentive 4 Represents two mezzanine loans originated from the sales of real estate
|
Basis of Presentation and Significant Accounting Policies (Schedule of Cash and Cash Equivalents and Restricted Cash) (Details) - USD ($) $ in Thousands |
Mar. 31, 2024 |
Dec. 31, 2023 |
Mar. 31, 2023 |
Dec. 31, 2022 |
---|---|---|---|---|
Accounting Policies [Abstract] | ||||
Cash and cash equivalents | $ 11,357 | $ 22,347 | $ 13,875 | $ 19,291 |
Restricted cash (included in Other assets, net) | 1,972 | 2,270 | 1,652 | 2,225 |
Cash, cash equivalents, and restricted cash | $ 13,329 | $ 24,617 | $ 15,527 | $ 21,516 |
Investment Activity (Summary of NHC Percentage Rent) (Details) - National HealthCare Corporation (“NHC”) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Real Estate [Line Items] | ||
Rent income from NHC | $ 3,035 | $ 1,595 |
Current year | ||
Real Estate [Line Items] | ||
Rent income from NHC | 1,379 | 965 |
Prior year final certification | ||
Real Estate [Line Items] | ||
Rent income (loss) from NHC | $ 1,656 | $ 630 |
Investment Activity (Cash Basis Operators Narrative) (Details) |
3 Months Ended |
---|---|
Mar. 31, 2024
operator
| |
Cash Basis Lessees | |
Real Estate [Line Items] | |
Number of cash basis operators | 3 |
Investment Activity (Schedule of Cash Rents Received) (Details) - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended | |
---|---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
Dec. 31, 2023 |
|
Real Estate [Line Items] | |||
Total rental income from cash basis operators | $ 62,187 | $ 65,299 | |
Cash Basis Lessees | |||
Real Estate [Line Items] | |||
Total rental income from cash basis operators | 11,765 | 12,006 | |
Cash Basis Lessees | Bickford | |||
Real Estate [Line Items] | |||
Total rental income from cash basis operators | 9,364 | 7,807 | |
Asset acquisition, rent deferral deduction | $ 2,500 | ||
Cash Basis Lessees | All others | |||
Real Estate [Line Items] | |||
Total rental income from cash basis operators | $ 2,401 | $ 4,199 |
Investment Activity (Tenant Transition Narrative) (Details) $ in Millions |
3 Months Ended |
---|---|
Mar. 31, 2024
USD ($)
| |
Skilled Nursing Facilities | |
Real Estate [Line Items] | |
Straight-line rent receivable | $ (0.8) |
Investment Activity (Second Quarter 2024 Dispositions Narrative) (Details) $ in Thousands |
1 Months Ended | 3 Months Ended | |
---|---|---|---|
May 06, 2024
USD ($)
tenant
property
|
Mar. 31, 2024
USD ($)
|
Mar. 31, 2023
USD ($)
|
|
Real Estate [Line Items] | |||
Gains on sales of real estate, net | $ 100 | $ 1,397 | |
Assisted Living Facilities | Disposal Group, Disposed of by Sale, Not Discontinued Operations | Subsequent Event | |||
Real Estate [Line Items] | |||
Properties | property | 2 | ||
Number of tenants leased on cash basis | tenant | 1 | ||
Amount of real estate sold in cash consideration | $ 4,600 | ||
Gains on sales of real estate, net | $ 1,300 |
Investment Activity (Tenant Purchase Options Narrative) (Details) $ in Thousands |
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2024
USD ($)
property
|
Mar. 31, 2023
USD ($)
|
Dec. 31, 2023
USD ($)
|
|
Real Estate [Line Items] | |||
Real estate properties, net | $ 2,092,580 | $ 2,107,082 | |
Rental income | $ 62,187 | $ 65,299 | |
Lease Option | |||
Real Estate [Line Items] | |||
Properties | property | 3 | ||
Lease Option, Between 2027 and 2028 | |||
Real Estate [Line Items] | |||
Real estate properties, net | $ 58,000 | ||
Rental income | $ 1,800 | $ 1,800 |
Investment Activity (Schedule of Future Minimum Lease Payments) (Details) $ in Thousands |
Mar. 31, 2024
USD ($)
|
---|---|
Real Estate [Abstract] | |
Remainder of 2024 | $ 175,434 |
2025 | 237,719 |
2026 | 245,066 |
2027 | 197,770 |
2028 | 191,509 |
2029 | 174,278 |
Thereafter | 525,045 |
Future minimum lease payments | $ 1,746,821 |
Investment Activity (Schedule of Fixed and Variable Lease Payments) (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Fixed and Variable Lease Payments [Line Items] | ||
Rental income | $ 62,187 | $ 65,299 |
Straight-line rent adjustments | 308 | (2,097) |
Lease payments based on fixed escalators | ||
Fixed and Variable Lease Payments [Line Items] | ||
Rental income | 56,592 | 58,937 |
Lease payments based on variable escalators | ||
Fixed and Variable Lease Payments [Line Items] | ||
Rental income | 3,893 | 1,945 |
Straight-line rent, net of write-offs | ||
Fixed and Variable Lease Payments [Line Items] | ||
Straight-line rent adjustments | 308 | (2,097) |
Escrow funds received from tenants for property operating expenses | ||
Fixed and Variable Lease Payments [Line Items] | ||
Rental income | 2,733 | 2,619 |
Amortization of lease incentives | ||
Fixed and Variable Lease Payments [Line Items] | ||
Amortization of lease incentives | $ (723) | $ (299) |
Mortgage And Other Notes Receivable (Schedule of Financing Receivables By Allowance for Credit Loss) (Details) $ in Thousands |
3 Months Ended |
---|---|
Mar. 31, 2024
USD ($)
| |
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |
Beginning balance at January 1, 2024 | $ 15,476 |
Provision for expected credit losses | (1) |
Balance at March 31, 2024 | $ 15,475 |
Other Assets (Details) - USD ($) $ in Thousands |
1 Months Ended | 3 Months Ended | |||
---|---|---|---|---|---|
Feb. 28, 2023 |
Mar. 31, 2024 |
Mar. 31, 2023 |
Dec. 31, 2023 |
Dec. 31, 2022 |
|
Segment Reporting Information [Line Items] | |||||
Lease incentive payments, net | $ 9,946 | $ 10,669 | |||
Regulatory escrows | 6,208 | 6,208 | |||
Restricted cash | 1,972 | $ 1,652 | 2,270 | $ 2,225 | |
Other assets | 26,053 | 24,063 | |||
Payment of lease incentive | 0 | $ 10,000 | |||
Timber Ridge OpCo | |||||
Segment Reporting Information [Line Items] | |||||
Payment of lease incentive | $ 10,000 | ||||
SHOP | |||||
Segment Reporting Information [Line Items] | |||||
Accounts receivable and prepaid expenses | 2,563 | 1,620 | |||
Allowance | 375 | 343 | |||
Real Estate Investments | |||||
Segment Reporting Information [Line Items] | |||||
Accounts receivable and prepaid expenses | $ 5,364 | $ 3,296 |
Debt (Schedule of Debt) (Details) - USD ($) $ in Thousands |
Mar. 31, 2024 |
Dec. 31, 2023 |
---|---|---|
Debt Instrument [Line Items] | ||
Revolving credit facility - unsecured | $ 248,500 | $ 245,000 |
Unamortized loan costs | (8,172) | (8,912) |
Debt | 1,139,266 | 1,135,051 |
Debt instrument, unamortized discount | (2,198) | |
Bank term loans - unsecured | ||
Debt Instrument [Line Items] | ||
Bank term loans - unsecured | 200,000 | 200,000 |
2031 Senior Notes | ||
Debt Instrument [Line Items] | ||
Bank term loans - unsecured | 397,802 | 397,722 |
Debt instrument, unamortized discount | (2,198) | (2,278) |
Private placement notes - unsecured | ||
Debt Instrument [Line Items] | ||
Bank term loans - unsecured | 225,000 | 225,000 |
Fannie Mae term loans - secured, non-recourse | ||
Debt Instrument [Line Items] | ||
Fannie Mae term loans - secured, non-recourse | $ 76,136 | $ 76,241 |
Debt (Schedule of Maturities of Long-term Debt) (Details) - USD ($) $ in Thousands |
Mar. 31, 2024 |
Dec. 31, 2023 |
---|---|---|
Debt Instruments [Abstract] | ||
Remainder of 2024 | $ 75,425 | |
2025 | 325,711 | |
2026 | 248,500 | |
2027 | 100,000 | |
2028 | 0 | |
2029 | 0 | |
Thereafter | 400,000 | |
Long-term debt, gross | 1,149,636 | |
Less: discount | (2,198) | |
Less: unamortized loan costs | (8,172) | $ (8,912) |
Debt | $ 1,139,266 | $ 1,135,051 |
Debt (Schedule of Unsecured Term Loans) (Details) $ in Thousands |
Mar. 31, 2024
USD ($)
|
---|---|
September 2024 | |
Unsecured Term Loans [Line Items] | |
Amount | $ 75,000 |
Fixed Rate | 3.93% |
November 2025 | |
Unsecured Term Loans [Line Items] | |
Amount | $ 50,000 |
Fixed Rate | 4.33% |
January 2027 | |
Unsecured Term Loans [Line Items] | |
Amount | $ 100,000 |
Fixed Rate | 4.51% |
Debt (Schedule of Interest Expense) (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Debt Instruments [Abstract] | ||
Interest expense on debt at contractual rates | $ 14,087 | $ 13,440 |
Capitalized interest | (39) | (19) |
Amortization of debt issuance costs, debt discount and other | 821 | 606 |
Total interest expense | $ 14,869 | $ 14,027 |
Commitments. Contingencies and Uncertainties (Off Balance Sheet Credit Loss Liability Roll Forward Schedule) (Details) $ in Thousands |
3 Months Ended |
---|---|
Mar. 31, 2024
USD ($)
| |
Off Balance Sheet, Credit Loss [Roll Forward] | |
Provision for expected credit losses | $ 10 |
Ending balance | 289 |
Accounting Standards Update 2016-13 | |
Off Balance Sheet, Credit Loss [Roll Forward] | |
Beginning balance | $ 279 |
Redeemable Noncontrolling Interest (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Redeemable Noncontrolling Interests [Roll Forward] | ||
Beginning balance | $ 9,656 | |
Net loss | 225 | $ 305 |
Distributions | (6) | |
Ending balance | $ 9,425 |
Equity and Dividends (Narrative) (Details) - USD ($) $ / shares in Units, $ in Millions |
3 Months Ended | ||||
---|---|---|---|---|---|
May 03, 2024 |
Feb. 16, 2024 |
Mar. 31, 2024 |
Mar. 31, 2023 |
Dec. 31, 2023 |
|
Dividends Payable [Line Items] | |||||
Authorized repurchase amount | $ 160.0 | ||||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | $ 0.01 | ||
Effective period of stock repurchase plan | 1 year | ||||
Common stock repurchased (in shares) | 0 | 0 | |||
At-the market shelf registration, equity offering sales agreement, aggregate sales price | $ 500.0 | ||||
Issuance of common stock (in shares) | 0 | 0 | |||
Dividends to common stockholders (in dollars per share) | $ 0.90 | $ 0.90 | |||
Subsequent Event | |||||
Dividends Payable [Line Items] | |||||
Dividends to common stockholders (in dollars per share) | $ 0.90 |
Equity and Dividends (Schedule of Dividends Declared) (Details) - $ / shares |
Feb. 16, 2024 |
Nov. 03, 2023 |
Feb. 17, 2023 |
Nov. 06, 2022 |
---|---|---|---|---|
Equity [Abstract] | ||||
Quarterly dividend (in dollars per share) | $ 0.90 | $ 0.90 | $ 0.90 | $ 0.90 |
Share-Based Compensation (Schedule of Stock Option Valuation Assumptions) (Details) |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Share-Based Payment Arrangement [Abstract] | ||
Dividend yield | 6.40% | 7.00% |
Expected volatility | 26.10% | 39.70% |
Expected lives | 2 years 10 months 24 days | 2 years 10 months 24 days |
Risk-free interest rate | 4.49% | 4.65% |
Share-Based Compensation (Schedule of Share-Based Payments) (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Non-cash share-based compensation | $ 2,155 | $ 2,105 |
Restricted stock expense | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Non-cash share-based compensation | 158 | 0 |
Stock option expense | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Non-cash share-based compensation | $ 1,997 | $ 2,105 |
Segment Reporting (Narrative) (Details) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2024
USD ($)
operatingSegment
|
Mar. 31, 2023
USD ($)
|
|
Segment Reporting Information [Line Items] | ||
Number of operating segments | operatingSegment | 2 | |
Real Estate Investments | ||
Segment Reporting Information [Line Items] | ||
Capital expenditures | $ 1.7 | $ 55.8 |
SHOP | ||
Segment Reporting Information [Line Items] | ||
Capital expenditures | $ 1.3 | $ 1.1 |
Variable Interest Entities - Narrative (Details) $ in Thousands |
3 Months Ended | |||
---|---|---|---|---|
Mar. 31, 2024
USD ($)
realEstatePartnership
|
Mar. 31, 2023
USD ($)
|
Dec. 31, 2023
USD ($)
|
Dec. 31, 2022
USD ($)
|
|
Variable Interest Entity [Line Items] | ||||
Real estate properties, net | $ 2,092,580 | $ 2,107,082 | ||
Cash and cash equivalents | $ 11,357 | $ 13,875 | 22,347 | $ 19,291 |
Number of real estate partnerships | realEstatePartnership | 2 | |||
Other assets, net | $ 26,053 | 24,063 | ||
Subsidiaries | ||||
Variable Interest Entity [Line Items] | ||||
Real estate properties, net | 250,500 | 252,500 | ||
Cash and cash equivalents | 2,500 | 3,200 | ||
Straight line receivables | 9,700 | 9,700 | ||
Other assets, net | 7,200 | 7,800 | ||
SHOP | ||||
Variable Interest Entity [Line Items] | ||||
Real estate properties, net | 259,600 | 260,700 | ||
Cash and cash equivalents | 2,900 | 7,700 | ||
Prepaid expense | 2,600 | $ 1,700 | ||
Credit liabilities of SHOP | $ (2,600) | $ (4,700) |
Variable Interest Entities - Schedule of Variable Interest Entities (Details) $ in Thousands |
Mar. 31, 2024
USD ($)
|
---|---|
Senior Living | Straight-Line Rent Receivable | |
Variable Interest Entity [Line Items] | |
Carrying Amount | $ 87,964 |
Maximum Exposure to Loss | 92,464 |
Senior Living Management | Straight-Line Rent Receivable | |
Variable Interest Entity [Line Items] | |
Carrying Amount | 24,500 |
Maximum Exposure to Loss | 24,500 |
Bickford | Straight-Line Rent Receivable | |
Variable Interest Entity [Line Items] | |
Carrying Amount | 16,861 |
Maximum Exposure to Loss | 29,415 |
Encore Senior Living | Notes Receivable | |
Variable Interest Entity [Line Items] | |
Carrying Amount | 56,965 |
Maximum Exposure to Loss | 57,639 |
Timber Ridge OpCo | |
Variable Interest Entity [Line Items] | |
Maximum Exposure to Loss | 5,000 |
Timber Ridge OpCo | Notes Receivable | |
Variable Interest Entity [Line Items] | |
Carrying Amount | 689 |
Maximum Exposure to Loss | 5,689 |
Watermark Retirement | Notes Receivable | |
Variable Interest Entity [Line Items] | |
Carrying Amount | 9,450 |
Maximum Exposure to Loss | 11,723 |
Montecito Medical Real Estate | Notes Receivable | |
Variable Interest Entity [Line Items] | |
Carrying Amount | 20,498 |
Maximum Exposure to Loss | 50,243 |
Vizion Health | Notes Receivable | |
Variable Interest Entity [Line Items] | |
Carrying Amount | 16,173 |
Maximum Exposure to Loss | 16,173 |
Navion Senior Solutions | Notes Receivable | |
Variable Interest Entity [Line Items] | |
Carrying Amount | 7,990 |
Maximum Exposure to Loss | 7,990 |
Kindcare Senior Living | Notes Receivable | |
Variable Interest Entity [Line Items] | |
Carrying Amount | 758 |
Maximum Exposure to Loss | $ 758 |
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