Why I Sold National Health Investors


  • I originally bought NHI, in part, because it was one of the few senior housing REITs fully invested in triple-net leased properties.
  • With the conversion of 15 properties into SHOP assets, that is no longer the case. More SHOP conversions could be ahead.
  • Though aging demographics still promise a long-term tailwind of demand, I have lost confidence that senior housing operators will be able to profitably benefit from this tailwind.
  • While I am not bearish on NHI, my optimism in it has dried up. Other similar-yielding REITs have more attractive growth potential.
  • Looking for a helping hand in the market? Members of High Yield Landlord get exclusive ideas and guidance to navigate any climate. Learn More »

Dark cloud over Mixed Race businessman

John M Lund Photography Inc/DigitalVision via Getty Images

Thesis: The Original "Buy" Thesis Has Broken

Over the last year, senior housing landlord National Health Investors (NYSE:NHI) has navigated a storm of overdue deferred rent balances, rent restructuring agreements, tenant transitions, and conversions

NHI rent coverage

NHI Q3 2022 Update

NHI business udpate

NHI Q3 2022 Update

NHI SHOP portfolio

NHI Q3 2022 Update

NHI balance sheet

NHI Q3 2022 Update

Data by YCharts

Data by YCharts

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This article was written by

Austin Rogers profile picture
Become a “Passive Landlord” with our 8% Yielding Real Estate Portfolio.

My adult life can be broken out into three distinct phases. In my early 20s, I earned a bachelor's degree in Cinema & Media Arts (emphasis in screenwriting), but I hated working in Hollywood. Too much schmoozing and far too much traffic. So, after leaving California, I earned a Master of Fine Arts in Creative Writing from Western State Colorado University. I loved writing fiction, but it didn't pay the bills.

In my mid-20s, I became a real estate agent and gained some very valuable experience in residential and commercial real estate. But my passion for writing never went away.

Now, in my early 30s, I write for Jussi Askola's excellent marketplace service, High Yield Landlord, as well as its sister service, High Yield Investor. I also perform freelance research for a family office that owns and manages over 40 net lease commercial properties in Texas and Arkansas. Writing about finance and investing scratches that creative itch while paying the bills - the best of both worlds.

I'm a Millennial with a long-term horizon and am fascinated with the magic of compound interest and dividend growth investing. I also have an interest in macroeconomic trends, though I am but an amateur in that field.

Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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