NATIONAL HEALTH INVESTORS INCNHI
NATIONAL HEALTH INVESTORS INC Segments Disclosure
Segment Reporting
We evaluate our business and make resource allocations based on two operating segments: Real Estate Investments and SHOP. The Real Estate Investments segment consists of our investments in acquiring SHOs and medical facilities and providing financing arrangements to our tenants, operators, or affiliates of our tenants and operators, and other third parties primarily for construction, renovation and expansion projects, funding of working capital or other corporate needs and the acquisition of real estate properties. We lease these properties primarily under triple-net leases and do not have involvement in the operations at the properties. The types of properties we acquire or finance include ILFs, ALFs, EFCs, SLCs, SNFs and HOSPs. Our SHOP segment consists of senior housing communities we own, which are operated on our behalf by third-party managers in exchange for a management fee.
Our President and Chief Executive Officer serves as our Chief Operating Decision Maker (“CODM”). Our CODM reviews financial and other performance information quarterly based upon segment net operating income (“NOI”). We define NOI as total revenues less tenant reimbursements and property operating expenses. Our CODM evaluates NOI to make decisions about resource allocations to the segments and to assess the property level performance of our investment portfolios. The CODM evaluates revenues and operating expenses on a comparative basis for each segment, both sequentially and year-over-year, and also evaluates budget-to-actual variances on a quarterly basis. For our SHOP segment, the CODM reviews additional key performance indicators based on the revenues and operating expenses per occupied or available resident unit and based on revenues and functional expenses by resident.
We do not allocate non-property expenses to our operating segments in determining NOI. Our non-segment / corporate assets primarily include cash and cash equivalents, the corporate office and certain equipment.
On August 1, 2025, we entered into a series of concurrent transactions that included the transition of seven properties from the Real Estate Investments segment to the SHOP segment. The operating results of these properties have been reflected in the Real Estate Investments segment prior to August 1, 2025 and the SHOP segment from August 1, 2025 through December 31, 2025. There were no real estate property transitions in the years ended December 31, 2024 and 2023. We do not have any other inter-segment transactions. Reference the “Discovery Transitions” section in Note 3 for additional information on the transitioned properties.
The following tables provide information on our operating segments ($ in thousands):
| Year Ended December 31, 2025 | |||||||||||||||||||||||
| Real Estate | Non-Segment / | ||||||||||||||||||||||
| Investments | SHOP | Corporate | Total | ||||||||||||||||||||
| Rental income | $ | 271,600 | $ | — | $ | — | $ | 271,600 | |||||||||||||||
| Resident fees and services | — | 80,062 | — | 80,062 | |||||||||||||||||||
| Interest and other income | 23,966 | — | — | 23,966 | |||||||||||||||||||
| Total revenues | 295,566 | 80,062 | — | 375,628 | |||||||||||||||||||
| Utilities | — | 5,573 | — | 5,573 | |||||||||||||||||||
| Dietary | — | 5,736 | — | 5,736 | |||||||||||||||||||
| Labor | — | 27,532 | — | 27,532 | |||||||||||||||||||
| Taxes and insurance | 10,982 | 7,817 | — | 18,799 | |||||||||||||||||||
| Management fees | — | 3,997 | — | 3,997 | |||||||||||||||||||
Other senior housing operating expenses1 | — | 10,273 | — | 10,273 | |||||||||||||||||||
| NOI | 284,584 | 19,134 | — | 303,718 | |||||||||||||||||||
| Depreciation and amortization | 66,035 | 14,859 | 50 | 80,944 | |||||||||||||||||||
| Interest expense | 929 | — | 56,439 | 57,368 | |||||||||||||||||||
| Legal expense | — | — | 2,666 | 2,666 | |||||||||||||||||||
| Franchise, excise and other taxes | — | — | 1,080 | 1,080 | |||||||||||||||||||
| General and administrative expenses | — | — | 26,868 | 26,868 | |||||||||||||||||||
| Proxy contest and related expenses | — | — | 1,572 | 1,572 | |||||||||||||||||||
| Loan and realty gains, net | (3,447) | — | — | (3,447) | |||||||||||||||||||
| Gains on sales of real estate properties, net | (456) | — | — | (456) | |||||||||||||||||||
| Gains from equity method investment | (3,664) | — | — | (3,664) | |||||||||||||||||||
| Net income (loss) | $ | 225,187 | $ | 4,275 | $ | (88,675) | $ | 140,787 | |||||||||||||||
| Capital expenditures | $ | 259,496 | $ | 87,486 | $ | 49 | $ | 347,031 | |||||||||||||||
1 Amount primarily includes general and administrative costs and marketing expenses.
| Year Ended December 31, 2024 | |||||||||||||||||||||||
| Real Estate | Non-Segment / | ||||||||||||||||||||||
| Investments | SHOP | Corporate | Total | ||||||||||||||||||||
| Rental income | $ | 257,049 | $ | — | $ | — | $ | 257,049 | |||||||||||||||
| Resident fees and services | — | 54,421 | — | 54,421 | |||||||||||||||||||
| Interest and other income | 23,243 | — | 468 | 23,711 | |||||||||||||||||||
| Total revenues | 280,292 | 54,421 | 468 | 335,181 | |||||||||||||||||||
| Utilities | — | 3,887 | — | 3,887 | |||||||||||||||||||
| Dietary | — | 4,287 | — | 4,287 | |||||||||||||||||||
| Labor | — | 17,166 | — | 17,166 | |||||||||||||||||||
| Taxes and insurance | 11,165 | 6,412 | — | 17,577 | |||||||||||||||||||
| Management fees | — | 2,685 | — | 2,685 | |||||||||||||||||||
Other senior housing operating expenses1 | — | 7,814 | — | 7,814 | |||||||||||||||||||
| NOI | 269,127 | 12,170 | 468 | 281,765 | |||||||||||||||||||
| Depreciation and amortization | 61,249 | 10,157 | 37 | 71,443 | |||||||||||||||||||
| Interest expense | 3,060 | — | 56,843 | 59,903 | |||||||||||||||||||
| Legal expense | — | — | 1,052 | 1,052 | |||||||||||||||||||
| Franchise, excise and other taxes | — | — | 38 | 38 | |||||||||||||||||||
| General and administrative expenses | — | — | 20,736 | 20,736 | |||||||||||||||||||
| Loan and realty losses, net | 5,295 | — | — | 5,295 | |||||||||||||||||||
| Gains on sales of real estate properties, net | (6,678) | — | — | (6,678) | |||||||||||||||||||
| Gains from equity method investment | (402) | — | — | (402) | |||||||||||||||||||
| Gains on forward equity sales agreements, net | — | — | (6,261) | (6,261) | |||||||||||||||||||
| Net income (loss) | $ | 206,603 | $ | 2,013 | $ | (71,977) | $ | 136,639 | |||||||||||||||
| Capital expenditures | $ | 169,225 | $ | 10,984 | $ | — | $ | 180,209 | |||||||||||||||
1 Amount primarily includes general and administrative costs and marketing expenses.
| Year Ended December 31, 2023 | |||||||||||||||||||||||
| Real Estate | Non-Segment / | ||||||||||||||||||||||
| Investments | SHOP | Corporate | Total | ||||||||||||||||||||
| Rental income | $ | 249,227 | $ | — | $ | — | $ | 249,227 | |||||||||||||||
| Resident fees and services | — | 48,809 | — | 48,809 | |||||||||||||||||||
| Interest and other income | 21,448 | — | 351 | 21,799 | |||||||||||||||||||
| Total revenues | 270,675 | 48,809 | 351 | 319,835 | |||||||||||||||||||
| Utilities | — | 3,537 | — | 3,537 | |||||||||||||||||||
| Dietary | — | 3,763 | — | 3,763 | |||||||||||||||||||
| Labor | — | 16,165 | — | 16,165 | |||||||||||||||||||
| Taxes and insurance | 11,513 | 5,889 | — | 17,402 | |||||||||||||||||||
| Management fees | — | 2,434 | — | 2,434 | |||||||||||||||||||
Other senior housing operating expenses1 | — | 7,799 | — | 7,799 | |||||||||||||||||||
| NOI | 259,162 | 9,222 | 351 | 268,735 | |||||||||||||||||||
| Depreciation and amortization | 60,764 | 9,158 | 51 | 69,973 | |||||||||||||||||||
| Interest expense | 3,071 | — | 55,089 | 58,160 | |||||||||||||||||||
| Legal expense | — | — | 507 | 507 | |||||||||||||||||||
| Franchise, excise and other taxes | — | — | 449 | 449 | |||||||||||||||||||
| General and administrative expenses | — | — | 19,314 | 19,314 | |||||||||||||||||||
| Loan and realty losses, net | 1,376 | — | — | 1,376 | |||||||||||||||||||
| Gains on operations transfers, net | (20) | — | — | (20) | |||||||||||||||||||
| Gains on sales of real estate properties, net | (14,721) | — | — | (14,721) | |||||||||||||||||||
| Gains from equity method investment | (555) | — | — | (555) | |||||||||||||||||||
| Loss on early retirement of debt | — | — | 73 | 73 | |||||||||||||||||||
| Other income | (202) | — | — | (202) | |||||||||||||||||||
| Net income (loss) | $ | 209,449 | $ | 64 | $ | (75,132) | $ | 134,381 | |||||||||||||||
| Capital expenditures | $ | 56,928 | $ | 9,328 | $ | — | $ | 66,256 | |||||||||||||||
1 Amount primarily includes general and administrative costs and marketing expenses.
The following table provides a summary of our total assets by segment ($ in thousands):
| December 31, | |||||||||||
| 2025 | 2024 | ||||||||||
| Real Estate Investments segment | $ | 2,282,128 | $ | 2,325,269 | |||||||
| SHOP segment | 503,201 | 270,273 | |||||||||
| Non-segment / corporate | 11,558 | 18,829 | |||||||||
| Total assets | $ | 2,796,887 | $ | 2,614,371 | |||||||
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.