National Health Investors, Inc. (NHI) entered into a purchase‑and‑sale agreement on April 21 2026 to sell 32 skilled nursing facilities and three independent‑living facilities to National HealthCare Corporation (NHC) for $560 million. The transaction is expected to close on July 1 2026 and will generate transaction costs estimated between $6 million and $8 million.
The proceeds will be used to repay outstanding borrowings, reducing NHI’s net debt‑to‑annualized EBITDA ratio to roughly 2.3× and increasing available liquidity to about $1.4 billion. By divesting a portfolio that generated $39.7 million in cash lease revenue in 2025, NHI is repositioning its asset mix toward higher‑margin private‑pay senior housing, which is expected to improve long‑term valuation multiples.
Post‑transaction, the Senior Housing Operating Portfolio (SHOP) will represent about 22.0% of total investments and 13.8% of annualized net operating income, while skilled nursing exposure will fall to 12.2% of investments and 16.5% of NOI. NHI plans to redeploy the proceeds into new senior‑housing acquisitions, leveraging a robust pipeline of opportunities and a disciplined underwriting approach.
President and CEO Eric Mendelsohn said the deal “provides significant capital and financial flexibility, accelerates our capital recycling strategy, and positions us to pursue attractive investment opportunities.” He added that the company remains disciplined in underwriting and focused on generating long‑term value for shareholders.
Analysts reacted to the announcement with mixed views. Truist Securities lowered its price target to $89 from $92, citing a reduction in NHI’s FFO estimates, while Cantor Fitzgerald maintained an overweight rating with a $94 target and Wells Fargo increased its target to $86. The mixed reaction reflects differing assessments of the short‑term financial impact versus the long‑term benefits of a higher‑margin portfolio and a stronger balance sheet.
NHI’s valuation as of April 21 was a P/E of 27.6, above its historical average, and the company maintained a 4.34% dividend yield with a 36‑year consecutive payment record. The sale aligns with an industry trend toward private‑pay senior housing, which offers higher margins and lower regulatory risk compared to skilled nursing facilities.
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