NHI - Earnings call transcript Q3 2024 | National Health Investors, Inc.

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Operator

Greetings, and welcome to the National Health Investors Third Quarter 2024 Earnings Webcast and Conference Call. Please note, this conference is being recorded. I will now turn the conference over to your host, Dana Hambly, Vice President of Finance and Investor Relations. Sir, the floor is yours.

Dana Hambly

Thank you, and welcome to the National Health Investors conference call to review results of the third quarter of 2024.

On the call today are Eric Mendelsohn, President and CEO; Kevin Pascoe, Chief Investment Officer; John Spaid, Chief Financial Officer; and David Travis, Chief Accounting Officer. covered as released the yesterday call, after press that's well conference of in which as media. Any release were financial facts call the been statements. are results not notice this are accessibility of this a statements historical The in the forward-looking conference by market closed and guarantees of future NHI cautions statements forward-looking not any may involve are investors that risks or uncertainties performance. call. judgment as of date All statements conference represent NHI's forward-looking of the this disclosures made Exchange are NHI to risk ended urged the review various December XXXX, with in and Investors periodic year its Securities factors disclosed XX, quarter filed September for and Commission by XX, reports Form information carefully and the XX-K Form XXXX. NHI's ended the and XX-Q the other including for filings available sec.gov SEC's website these NHI's at of the are nhireit.com. at website on on or Copies

in have terms which and are In to which schedules, are used on Listeners the are in encouraged SEC. financial and of related Mendelsohn. NHI's provided together addition, you, this earnings provided the over release release Form that Eric X-K the been measures, and reconciliations to call certain furnished tables non-GAAP our earnings release. I'll other to thanks call joining all for us those reconciliations today. CEO, provided review now information Hello, in turn Dana. everyone with to in Thank

D. Mendelsohn

the of results The from strong across with quarter portfolio the much and our reflected occupancy third coverage major through largely sequentially second quarter fundamentals asset all EBITDARM improving continued classes.

start more growth show follow. upside at we for quarter margin levels the occupancy drive likely which continues XX.X% rate to can we is Our growth strong significant to at and SHOP with believe approaching to

notified our days ensure and On of Year-to-date, new of discuss basis million detail, residents. September to obligations. I'm transitioning closed of excited securing within our acquisition properties XX lease proud investments very will portfolio and includes on the approximately growing inability our no their pipeline. note, one to Arbor management living yield to investment in tenants activity Management, Senior interest impacts average Spring response for Kevin quick senior North in $XXX leased the Living communities late This more and their of the in of team's Carolina, cash pay in us adverse our X.X%. As positive more million we've $XXX initial over a of acquisition we're of at an since about largest recent totaling XXXX. each

million Board more of this close and/or this signed opportunities to billion. than that we have year. we next LOI amount, sourced have of year early opportunities We approved Of expect $XX.X $X.X investment

In addition, we're evaluating pipeline of approximately an million. incremental $XXX

And also ever are career. open, of We not I skilled see portfolios, nobody years not entire large our investment seen growth. pipeline this opportunities and long frankly, factors window actionable be in which including exceptional several deals my are nursing certain how numbers, shop I've of in included supporting pursuing level can this several while stays

multiyear over portfolio months one, a of fundamentals improved last been the noise the as include: Just these and industry our optimization the capital factors of has significantly improved XX from cost has reduced. few

scaled and million to us offering providers back and oversubscribed XX%. Two, the traditional upsize completely. evidenced, or exited the banks completed was industry by that shares exposure equity of have capital successful housing private the deal have forward significantly their X.XX senior As a the and allowed include a sector we offering basis on to either

debt currently of ourselves, X% inventory new three, lowest starts REITs and underway. We're back demographic such since replaced and some as are about at equity; XXXX, as still as tremendous the growth will and tailwind excited While has future at level access we our been. as at we ever believe well-capitalized the other given or have the expect lows tailwinds is by and approximately that the and cost industry historic participants, ready capital position best they we of at advantage the major be point course, to

growth by strong the believe have all we business preparation and company position. supported multifaceted, to SHOP succeed a Our the internally that cycle have we both added is financial of and profile expanding externally through for and depth stages in the positioned is platform.

convinced this are we of for years remains exceptional that and come. growth days said it I case As quarter the to that early last the in we many are

items I address. over, of Before a have turning to the call couple

I acknowledge employees safe and thank to and short residents that patients all efforts recent have heroic, were your by and been operators nothing deeply to want their of keep of hurricanes, you. First, impacted the the we

visionary leadership in Second, Andy of call a Adams, seen, grateful mentorship. the pioneer He Chairman, us been productive more announcing December his provide details X-K from of our the to but retirement. I'll his touch Kevin operations. have XX. Andy recently we staying over are and forward you the we will beginning, CEO NHI him to an long turn incredibly missed, has best that with as and the very be is we now in and for effective as wish look and on He in many a founding industry, retiring from to our Kevin? will and the in its role XXXX. serving Chairman inception be filed from

Kevin Pascoe

met. a been have X-year NHI care on of that pipeline developing a is in group but rehab options investments new rate our a coverage X an of as loan certain I'll In party up overview plenty million a to in a and carries August, of management $X for in the on licensing fund deals. Florida. X-year an City, million purchase relationship in billion for asset [indiscernible] closed $XXX major call well projects the with have Thank last development of NHI, property we you, over loan and and properties experience our $XX.X facility August, Lake completed. X%. The asset classes. has has as with option focus to inpatient extension This after Eric. is X of acquisitions health my comments requirements Since the

above also million, yield NHI. The at X.X%. still to of approved our had including X.XX% The it well $XXX.X escalators. senior North of X% ] managed We be Arbor, properties funded. will and earn-out average costs Carolina is to $XX.X coverage an when added $XX base a properties needs-driven million and a million acquisition the incentive, be of in if by a cover is of an for average deals we the lease [ also is full, announced relationship includes new with initial for Board and XX-property which the which with for yield transaction fixed Spring The housing recently in portfolio coverage is continue communities

are included stages had an chance multiple next $XXX of the a We of closing million including months. Not actionable also deals, of portfolio evaluating shop the in and skilled pipeline negotiations. XX in pipeline and various nursing investments are within which that reasonable

Management. Asset to Turning

from good rent with With had improvement the sequential second increase. positive another increase, and Also, the representing they by in mid-single-digit and with with occupancy coverage occupancy, coverage need-driven Bickford flat up X.XXx, exception to quarter. Bickford's healthy by They at implemented very price EBITDARM points sequentially when repaid operational $X.X we coverage performance. basis the of EBITDARM SLM, Adjusting at operators excluding the in again primarily tenth and coverage improved The recently a the in collections XX had deferrals, quarter Bickford for Bickford, was X.XXx. The X growth. X.XXx. X.XXx we're deferral quarterly straight improving of a April X.XXx, driven XX.X%. been have we The happy would focus trends reported growth. the need-driven shop million was resulting period at

quarter, last recently properties. change potential a this noted was and we of a see added in assets we As in function upside the

to been ], exposure since cease for as Regarding XXXX, to we action another had years transitioning sold property operator. were healthy coverage, to seller The transition financing. to SLM, synergy as is underperforming X and Prior or NHI leased James to property and held process occurred multiple capable The are properties this we leaving X for have reducing early is already we new as their an operator other of property well a property in with to have properties remaining a providing payment the more them the sale pleased to operator. later X. October this on The a leach we next year Group transitioned X EBITDARM selling [ expected as X loans. William to properties close expected our have

X We when are the multiple for details more loans evaluating and scenarios we'll provide available.

significant opportunities NOI a a some team expenses and to closely start in recapture relationship incur to William November, loss next for NHI, are but looking from living and the XXXX, at this we already Group. other the a is transitioned we to with separate group. portion new to expect We past community the management second This of but in grow have worked senior James SLM, should transition year. In

[indiscernible] housing the period. the of Our at entrance improved X.Xx This X.XXx, fee discretionary X.XXx our The an includes from and in skilled from X.XXx. nursing which which [indiscernible] improvement sequentially together XX% portfolio portfolio, X.XXx. to SNF senior includes portfolio solid sequential coverage compared interest-free [indiscernible] reported which portfolios, in

throughout in build Lastly, SHOP, momentum to the continues portfolio.

increased The margin September. [indiscernible] sequentially while by margin X.X% the by on XX.X% was to contributed Resident slightly occupancy compared to high living our occupancy quarter expectation, margin to XX% million. at the NOI of driven occupancy from improvement note points. improved year-over-year continued fees XXXX, second to X by XX.X% XX.X% a expansion points, below third quarter leverage increased XXX independent XX.X% throughout model. basis $X declined improve XX basis basis to year-over-year, XX% points Third quarter, ending to and the but and of by in

of results call We XX% or growth to to range our XX% [indiscernible] in reached occupancy of John? the annual particular, the to to over end to evidence John high for XX% NOI Spaid XX% that We and SHOP discuss buildings mark. in guidance. are this, to now from the turn to financial to XX%. I'll starting clips have see

John Spaid

talk Thank about moment, Kevin, I'll but hello, in our results. you, a our everyone. recent capital first, and activity

common quarter the share net to XX, for was ended same last $X.XX period September the XXXX, Our per year. income compared $X.XX for diluted

results and quarter in [indiscernible] third prior $XX.X as the million $X.XX [indiscernible] for quarter. X.X% for to $XX.X the from prior quarter. year's September FAD million FFO third the ended quarter the compared to year's normalized Our increased

to to million sequential cash lower credit other FFO and compared repayment also period [indiscernible]. for [ decline was $X.X cash recognized new other the capital and in ] a sequentially loss Our to expenditures rent approximately transaction deferral [indiscernible] million. net Year-to-date, in SLM million quarter the adjustments million the to the and the last year. Compared primarily nonrecurring FAD expense, X-month $X September a by reduction due as in quarter by $X.X sequentially for the due compared a higher are the and million portfolio The to well quarter second our by improvement X.X% the increased down interest lease shop down after XX.X%. in offset second Normalized was contribution ended Net recurring totaling X.X% tenant cash third $X.X same compared last income quarter $X quarter. rent $XXX,XXX. NOI as million XX.X% FAD was from interest $X.X made the for results increased third third from NOI revenue, quarter down XXXX, the has year approximately of up is XX, period X.X% SHOP changes payments basis XXXX for prior to was quarter. and SHOP

an October. participation with execution, very ]. completed turn we me structured forward We're our Res offering the component. which capital equity maturity weighted investor in X.X to maturities remaining with activity. closing, facility, million the to exchange growed proceeds, following approximately X.XX provides exchange restatement average October, Let on for At proceeds $XX [ overnight equity reset closed at mid-August, common the access a pleased recent adjustments, we approximately equity $XXX shares can our for revolving million This to date NHI future credit the extend. million options debt In Arbor over end transaction which of for in to we net the million we forward shares. Also customary million proceeds, in available improved two years delivered $XXX.X X-month our million and in X.X October the October, $XXX in of Spring of XXXX amendment in leaving for shares. In

revolver. $XXX mindful due our and and our term Since June option. We right investment-grade million loan liquidity always source more extend market monitoring of to XXXX be we'll the our also primary of revolvers, on At had year drawn closely our additional have XXXX. the the of we at our an million we're the end buying long-term liquidity, October, in $XXX requirements,

sheet balance quarter great the ended Our in shape.

to as repaid with Our debt loan mentioned, net We equity ended at within September quarter stood EBITDA policy. have well capacity. revolver And us. forward of we $XXX leverage interest was ratio available rate Xx X.Xx, adjusted $XX a proceeds. available ATM We million XX. with a the to at as the in Xx stated debt proceeds the to our And continue at variable to September remaining placement million end XX% approximately private result, due our I

last share Directors dividend a announced Board XXXX. December and of on per night, our we of XX, As for declared shareholders January XXXX, $X.XX record payable XX,

year So me guidance. XXXX let full turn now to our

and impacts average Our the the proceeds and $X.XX, our NAREIT normalized common $X.XX weighted FAD received. per year at FFO guidance from equity to shares million August in reflects and issued respectively. compared updated for the midpoint for FFO today shares guidance reflects of full diluted October is increased XXXX $X.X diluted the share midpoints forward

thank all joining today. So concludes for our prepared call our remarks. you again, once That

So please for with open that, the lines operator, questions.

Operator

first coming BMO. Our Juan Sanabria Instructions] question with is from [Operator

Robin Haneland

This is Robin sitting Haneland Juan. for on in

Just curious PACS NHI's comment around transition? the And your What on post prestige on PACs. can today? coverage preliminary thoughts is you

Kevin Pascoe

is Kevin. This

than performance buildings, recently over underlying prior on that's know at of on customer coverage as our As look assisted operator it relates is level we They're an not they're we the a half about these EBITDARM of based X% Furthermore, revenue PAC, skilled. and of to Xx of properties, which probably as less the the related you the living, to ours. is transitioned. received on smaller and those

So related communities. massive a of as seeing through but our any suite underwriting, we big them, we to or even don't full from changes to have changes weren't existing financials revenue our business the

the see stable. some as We have we of more get out. come currently, information around So some questions some that's We'll need to definitely information. those more

plan them some the up -- we couple coming have some meetings We already in next of with had weeks.

be it find closely. more relates we would them. from haven't definitely So to as But but it out monitoring we'll that seen portfolio, date, be our anything to concern interested cause we'll to

Robin Haneland

And for unusual in your the revenue having or peers versus portfolio, any do you mix see your PACs outsized portfolio? steel

Kevin Pascoe

a been transition. it's recent Again,

current month rate the financials this we a long don't a have really them. run of X So at point. on from or It's experience probably

discrepancies order on through the anything like numbers or So, expected far, there again, And that, so no. payments underwriting, or pay wasn't represent us. outsized any or huge that to

yet. end have don't But dig we'll we it. on So to into focused again, on just anything be that more

Robin Haneland

Got it.

yields Just how well. and pipeline wanted to the here? touch [indiscernible] on the What's as between is SHOP-related? What are the much expected mix

Kevin Pascoe

looking pipeline, investment the on So a range we're of at opportunities.

Some of debt. it is

is some net SHOP it's of of Some it we as lease, triple disclosed.

at us, on what risk-based we really looking we've product up going in that based. is mix it's seen we're still deals to or speaking, end of again, So depend range, securing. more from Generally similar X% that yields the and

competitive those at still we market. yields get where our front be us. a of good a enter to but and we more as SHOP some feel still in So Maybe bit. about start investments going compressed to that's we're of and the target do into more have we of

Robin Haneland

one last for And me.

the acquisition, occupancy, On sizes cases. comment you the smaller sub-XX Spring the portfolio are portfolio's assets RevPAR just given breakeven Arbor can the units and in most on

Kevin Pascoe

Yes.

So fair on we buildings underwriting of have amount one. that each of the each a went done to

more are primary a them markets, of markets. are more secondary some little in Some

markets. in their of RevPAR So the one, their a as market there's for We revenue on local local strong per range see having going -- for to each revenue resident be and again, them fundamentals. depending

would is we on on if of of smaller that the we we it which particularly portfolio. a markets. this generally of trending and continue run, -- are creation they some to there the range. look area at to with Raleigh at can that side. a because also breakeven is some bit we But earnout buildings you bigger value little they and you're which again do are, They're have think -- XX% bit much occupancy mentioned, expect. why room on They bigger type that an Some call little the ahead that offered size as XX% There's markets, this looking them Raleigh better, of the in

Operator

Anderson is Rich next coming Our with question from Wedbush.

Richard Anderson

so so that. got right, So are this I transitioned, on loans, on SLM, sold, TBD X just X

$X.X they're rent, You paying million -- $X.X in you were in million interest.

had describe the I And there? interim -- your in The transitioned new basis well of that expectation X as is, what's million period? new for How $X think a right. the terms will the cash I recovery or of you whatever $X that would NOI XXXX? be on in properties expectation that, of

Kevin Pascoe

I of David that we operational I'm or Kevin. Rich, how that perspective. then and how second accounting A on let operators to our kind back piece, on that treat we're lot this levels be proposing the in fast is from or the this. But normal move address an levels income John in can weigh half rent of of what I'll getting XXXX. to on depends we

as a that the some, the we options allowing happen. not have on range do to selling -- taking think loans, we it we to of all, relates can the but loans, for back process sale a properties, foreclosing I that include

working all right that's we're So that now. stuff on

sort and move loan. going quickly, figure communities of on the think little it to I a for of need with or be. move and just it's best what going on the portion in through NHI not we'll to take sell our are that make that is or something but do to time value out we're there's we the all option amount and the that whether these properties, going appropriate time So to sure bit to try we're of

X cash the side, buildings flowing. of rent the On were

say, something closer That's rather full and of back come to rent. also so to paying that XXXX speak, to those first than part expect I'd we're sooner online, later, We something with now, to we with rent workingthrough are and current sure amount. CapEx have in the negative them a scheduled where them we're making for position that putting getting not buildings

we X stabilized we're doing to So But the X that rate get are mindful it transitioned, NOI. well. of can to them we until sell. expect And the run a on a one, those we just of other that bridge then

that part current transitioned expect does of that James days. And transition we planned in them last we be next sell, asset in the we'll XX XX the to other in to interest, once then the one did couple on turnaround free then as pay already would which stabilized. one, plan was accruing So Georgia a rent record. quarters order We give track a They to have our Group. William building to get of the it of

have working back get have they building capital online. adequate We -- the to

So the if that's it there's a in focused really why and we're hole, back that XXXX. come on quicker one wouldn't

really on said, I them put we the it's have turned we've a got team building. management one record They getting good in That there. why So in think is which around, back a track buildings just place. good

quick I think that's kind one. of of overview each a

Richard Anderson

why the time taking a On offer rent there Or free seeing those X? is cash despite to from are as it is into start X well XXXX that? there why flowing, that flow cash

Kevin Pascoe

made that be characterize from wouldn't payrolls operator I less utilities.There's buildings items There's to on. previous took there's than minimal that out. certain CapEx the prior to it's quickly have to in things. mining these Well, to There's repair We be the but for store so, rent. the moderate PTO done that had paid wasn't for X of made. that your be is a couple for The weeks. immediate doing rent, that transition very In of reason has as deposits the operator. free got it amount We

made before time we make have rent. days over amounts small and fixed were it understood that really size the because start XX again, that rent They appropriately. transition standpoint the there more we stream, is to to cash very they operations then something them allowing we're from have some they even sure charging sure expect low. we date. I So instituted where make I next can to stable rent But before, a an wanted we

Richard Anderson

be? you might of Okay. you new who line be Any the when think announcing Chairman time will

D. Mendelsohn

one. that end is the Well, it will probably after be Eric. the take I'll retirement at This year. of Andy's

So stay tuned.

Richard Anderson

Any that insulated to then for point health your do care in like from bite last seat generally you're from anything and ACA potential feel or specifically? changes somewhat the you could this come And Okay. last me, terms the Or night, your down. changes? back at concerns with of business election

D. Mendelsohn

letters our but Elizabeth to pretty days, circulating there's early some minuses. were Warren some There pluses definitely still were Markey It's some and industry. that Senator threatening

I'm impacts administration the was of will actually the SEMA. lessen. assuming previous recall, under you those of CMS So industry if She Head very was And friendly. the

So I'm cautiously optimistic.

Richard Anderson

expiration? the guess still to along I of And on discussions far Or you talk are Okay. How talking NHC? table also Is it in with about? already in about one thing. last the too terms early that

D. Mendelsohn

them with discussions have We periodically.

you marketability we to know, engaged advise pricing Blueprint dynamics. help and market about As and us

discussions the ongoing. are So

Operator

question Our coming America. from is next Joshua Bank Dennerlein of with

Unknown Analyst

you This was Josh your jump, levels thinking are curious, terms Grant rates? going behalf sizable Dennerlein. occupancy occupancy is Farrell your having to how and a in about same-store I forward ability push of on shop sequential of

Kevin Pascoe

Sure. we held to make then half from XX%. here buildings that get been sure strategically the is to a get push. incentives revenue seen This standpoint get and flat almost to get occupancy goal to Kevin. of That's there. RevPAR percent. is fairly Again, XX-plus using We've really the the to We've really

So as should to incentives ones, to see communities -- start lessened we be those those the stabilize. burn short-term off particularly start as

additional there should those it some days. those have see it, in lot expansion we call of margin the think last, to we buildings. to XX as relates gotten A XX So really

see a again, where incentives. But Frankly, sure the getting The increase We're mid-single-digit then they're us getting rate. a to taken rates year. to think we revenue street we gas well we're to run there what want staying looking it start as pretty the this want flow occupancy terms there. the we off before going at through From to foot continue good to it as go. would of see, are And operators bottom we as really in to we like on to So to see? but it's there, I doing occupancy well. relates we we're see take longer stabilize, should we that make the our little with a are than line

Unknown Analyst

with question, I Farrell. It's had Josh too. another

Just housing and like under be like SNF industries kind the could the senior the across policies lot costs SNF enacted. the how maybe maybe from new should environment of we I'm think labor better about some a are maybe think how assuming Like administration. like lower a jobs of do income, the that we of about perspective? that versus regulatory

Kevin Pascoe

is standpoint straight just growth seen rate This just Kevin the expense. a on of across From we the again. labor labor and classes, stabilization asset a have

at of a So looking I don't think we're employment rates. retrenchment

think looking stabilizes at the into we're how that going I future.

have Maybe we will that goes requirement away. relates gets the SNF, be minimum it to staffing out As modified there. or that do

SHOP, steady the continue. that pretty So looking at the think we -- has could on rates particularly Again, but senior labor to as like on that will employment be and thing, we're don't been housing that, see skilled and spiking there. pay would side a don't them see down, good the I going

Operator

Our coming Omotayo with Bank. Deutsche Okusanya is next question from

Omotayo Okusanya

on With get we for member? member I Board the a another Board opening the little also current search does And update Andy an about mean there's retiring, for that's could that independent also ongoing? wanted talk bit. another the to Board

D. Mendelsohn

Omotayo this is Right. Eric.

member, small finalist That my conducted. independent last that been proxy anticipation finalists. And member. add would we proxy supplemental will season. is that said of group Board has search be year, Board As new We're we for on down know, an next presented the that, our to a a you

is or them. Andy's have not one question on been a good hasn't to vote gets that will replaced shareholders yet. So and chance Whether seat discussed a

the X. you Board know, an board making X-person was member new As to addition it

wait we'll that and see So on one. probably

Omotayo Okusanya

this sticking Okay. are election, an of federal staffing, radar? the at about that that through state level the been cycle of? level the or know eye you anything guys just to kind your theme talked And have on the helpful. election keeping ACA That's at then should we've minimum at anything that on I level and aware was the we but state of

D. Mendelsohn

back subsidy of programs onion nursing will since lots states. peel of operations a given in continue on interesting of from year-to-year. that it's you been supplemental not lots made There's that when the have for a these COVID. There's operators lot payments skilled And payments

lobbyist driven. and very it's So local legislature-driven very

are some that things watching those we're closely. So

Operator

from is Austin with Our next question KeyBanc Capital Markets. Wurschmidt coming

Austin Wurschmidt

any other skilled investments pipeline that or either $XXX or in that prepared nursing investment include Do discussed of PAC? million of you deals in the the amount remarks, with the any beyond

Kevin Pascoe

This in portfolio. No, a as know them is currently. to we're just getting Kevin. Not customer our new

So we haven't talked of in ventures detail any new just yet.

Austin Wurschmidt

And new Eric, about remain in mean, your prepared upbeat remarks, you for I then, the prospect investments.

quarter, billion. referenced last of had you $X.X think a funnel I

is there need additional about So of pace investments, pipeline, guess, to how any are you I the guess to add this quickly able close as we think I time? overhead the current backfill at it? right And

D. Mendelsohn

at I've before the a between closing the in X annual Good and squeeze year consider or of this we'll question. $XXX would We're good partial year. million million and $XXX for probably run that a I million, $XXX a said is rate always end us year.

the either probably for timing pipeline, XXXX, or first larger As that's thing. second quarter

of with these housing, then As you and senior a take do their are know, buildings licensed new operators. to the long time issue especially licenses and inspections lot the a to states

Austin Wurschmidt

the significantly. possibility opportunity that feel exceed wondering pretty peers I'm like to remains there's that cost could capital exceed a that the ramp? see you I attractive. you that the of And annual extent if some seen investment there amount mean just of kind think really to you we've even is pace that start to Do that amount

D. Mendelsohn

I do. I do.

underpromising here We of habit and overdelivering. have a around

on. of from the going that of pandemic. some be could there us So still PTSD frankly, lot have And a

muscles So closings while. new been used a haven't for business and that are new

of overhead Affairs. President well. You recently Legal about did as Vice a Senior asked We hire

terms we So staffing our are of capability up and in closings. beefing

Austin Wurschmidt

highlighted, you in Helpful. And rate. quarter, on for of fairly fourth increases this seen we there? ability Should level but occupancy reacceleration some quickly upbeat guess, in growth? to SHOP. the one you implies some in see see about last NOI? cadence you how in about and then recent guidance me think in guidance of more on do growth push how moderation your reacceleration and significant mean that kind you momentum, have I updated implement year-over-year then and into the expect I just as I from year-end -- think a deceleration can really NOI do rate the we guess,

Kevin Pascoe

I at Sure. we're the that, are the On buildings used. of greater think I mindful their This stabilizing being of being -- want occupancy is the targeted Kevin. incentives to XX%. just sure that than make

I As nearly that But them that to to forecast we -- there's mark growth. using start additional the can half are getting mentioned, before to that we going stop be sure of there. it's XX% making and again, incentives there's

expect see the bottom fall to We that line. to

at see being but it I we forecast don't we sooner, a not mid-XXXX, I but we we be to looking think going see and to it's want want to be. -- able until to and it winter do we're and incentives that it, it start that to to think could to -- of hold where we there's -- to use chance get happens it if we're early through that kind occupancy a have

Operator

next question Our Instructions] with John coming Wells Kiluchowski Fargo. from is [Operator

William John Kilichowski

sense growth. Kevin on need just occupancy get SHOP. to that think really to drive occupancy about incentives it properties and pursue that strategy not a forced you is or growth? you residents if and the this you've policy with? just you you that XXs using the there run operating your something difference business drive pursue of saying, on strategy? allow to opening terms purely If when if you occupancy, we understand just will But I as are of just rent back is in versus low made this what's why you were it, I be start this need Or to we and that curious in help difference to the and call in sort that remarks. most it's that receptive to I'm past, this then accelerating about number the at the RevPOR, But your what I we're think based theirs of leverage the to were peers thinking through could we're know discussing went

Kevin Pascoe

same a combination independent to talking I only This but point type. just sure model. mid-price being make it's of I model, One, a a couple Well, think an the things. it's we're of about product not want

to they So anyway. priced Could it. something pricing to with Furthermore, see it's price have But if acceleration didn't bit would occupancy. to customer to sooner? the strategy a make we've way stuck the we -- we on using little we just sense where see along were price-sensitive Perhaps. to a course chose the are out played when get us midstream starting full, of and test changing it

and it to thing occupancy out climb We've Again, we try again, I'll as see the got that and we'll in we these residents the previous where seen see sure us with operator strategy to remind you off, expedited that line. burn of on one had left the the we just, so basis. an we trough and And we the of do to up bottom wanted a is picked fall occupancy community. incentives and operations, the through make in

why did on big want So to we pricing our to It's it. mode occupancy. use we reason stuck go this, that's where one get to as to

William John Kilichowski

driving it. Got been here RevPOR? time, part Are you And length of that? I that? on still discussed is of equation that maybe -- what of then what's still stay we seeing changes this And sort do And last that? think think but limiting shortening. the have that's the Or you

Kevin Pascoe

independent had and has is I the Under say, seen length on management, stable it's out we prior really would a broader seeing a holiday both par tick stay we're really a industry. Well, the but it's they fundamental to length of at started little assisted. Atria it that's a think and in days, coming longer pandemic, under we've But we're than We of of than with where down of anyway. before it where that like see And it is property stay I types. stay, seeing across shift level, length shifted be, now. would on been to then lighter the

So that fairly seeing where they're holding were. now, below serve, but we just again, we're stay steady

back have where at much and to holding from pull too move-ins to reason incentive a we sure standpoint. cadence we level one So that's also make before why XX% we're an of that occupancy want we

churn So we there's we're before, at it what lot where decision seeing pricing. that's I a weighs than Definitely, were into more just but on think our initially.

William John Kilichowski

then the exposure impacts there. in of from were one just you sort election that how do a Or it. given Got does Curious -- keeps that within just on office? a mix it you maybe maybe there? Advantage, expand anything do think your sweep And you you think your if there Medicare shrinking exposure, it SNC think Republican to Democrat that

D. Mendelsohn

one. I'll take that

have particularly previous As I earlier, the CMS, the of And was the readthrough impressed was very I only we head was rate climate. regulatory SEMA administration capable the with and is that increases saying had on a name. the

be So administration. similar I'm cautiously new someone optimistic the there that her will in to

Operator

I'd in the like remarks. to As closing questions at to we have this turn over back no further call management queue time, for

D. Mendelsohn

and you and Thanks, look some forward or your at time other to investor for today, seeing NAREIT everyone, attending we'll for conference. and attention

Operator

Thank lines you, and conference, may and your concludes you we participation. ladies and today's for this thank time, disconnect gentlemen. at you your This

National Health Investors (NHI) 6 Nov 242024 Q3 Earnings call transcript