National Health Investors and The Pennant Group reported second-quarter earnings results on Wednesday earnings calls.
National Health Investors
Revenues for the second quarter exceeded expectations, according to NHI Chief Financial Officer John Spade, who added that they positively affected net income, funds from operations and funds available for distribution.
Senior housing operating portfolio net operating income increased by 39.9% year over year to approximately $3 million.
“While the NOI result was slightly below our internal expectation, we’re encouraged that occupancy continues to move higher, and we remain confident in our guidance growth rate for the year and the longer-term upside potential of this portfolio,” President and CEO Eric Mendelsohn said.
The Murfreesboro, TN-based real estate investment trust is raising its guidance for the remainder of the year, reflecting midpoint normalized FFO per share growth of 4.8% and a midpoint FAD growth of 7% compared with 2023.
“The increased guidance continues to be broad-based, with several factors contributing to the improved outlook compared to our original February guidance,” Mendelsohn said.
In addition to collecting deferred rent from Bickford Senior Living, Mendelsohn said the REIT has $19.6 million in net deferral balances tied to senior housing operating revenue goals.
On Tuesday, the REIT announced a third-quarter dividend of $0.90 per common share.
For additional coverage of the NHI earnings call, see McKnight’s Senior Living.
The Pennant Group
“Excellent” second quarter results “reflect strong performance in our mature operations, coupled with robust acquisition activity,” Pennant CEO Brent Guerisoli said in a press release issued in conjunction with the second-quarter earnings results call.
“We are updating our annual guidance based on the sustainable momentum we see in the business, and the accretive additions that will contribute to the bottom line through the remainder of 2024,” he added.
The Eagle, ID-based company said it expects total revenue to be $654 million to $694.5 million, full-year adjusted earnings per diluted share to be $0.89 to $0.95, and full-year adjusted earnings before interest, taxes, depreciation and amortization to be $50.7 million to $53.8 million.
“This updated guidance incorporates current operations and organic growth, diluted weighted average shares outstanding of approximately $30.7 million and a 25.8% effective tax rate. It anticipates continued strong operating performance through the end of the year, hospice reimbursement rate adjustments, increased interest expense expense and contributions from our joint ventures and management agreements,” Chief Financial Officer Lynette Walbom said Wednesday.
“It excludes unannounced acquisitions, the announced purchase of Signature’s Oregon assets, startup, share-based compensation, acquisition-related costs, or one-time implementation and unusual items,” Walbom added.
For additional coverage of The Pennant Group’s earnings call, see McKnight’s Senior Living.
