National Health Investors Executes $560 Million Strategic Disposition of Skilled Nursing Assets

NHI is offloading 35 healthcare facilities to National Healthcare Corp for $560M as it pivots toward high-value private-pay senior housing assets.

By: AXL Media

Published: Apr 23, 2026, 11:39 AM EDT

Source: Bisnow

Strategic Pivot Toward Private-Pay Revenue

The $560 million sale is the centerpiece of a deliberate shift by the Murfreesboro-based REIT to capitalize on the valuation disparity between skilled nursing facilities (SNFs) and private-pay senior housing. By offloading these assets, NHI will reduce its skilled nursing exposure to just 12.2% of its total investment. The REIT’s leadership emphasized that this transition enhances the company’s overall value proposition, as private-pay assets typically command more favorable capitalization rates and offer more predictable cash flows compared to those reliant on fluctuating Medicaid and Medicare reimbursements.

Portfolio Composition and Operational Details

The properties involved in the sale are located across seven states, including Alabama, Florida, Kentucky, Missouri, South Carolina, Tennessee, and Virginia. Notably, the buyer, NHC, is not an outside entity but the long-standing operator that has been leasing these specific assets since NHI’s inception in 1991. The portfolio includes specialized assets such as a 102-bed skilled nursing facility in Pulaski, Tennessee. Following the expected closing on July 1, NHI’s senior housing operating portfolio will represent nearly 79% of its annualized net operating income (NOI), fundamentally altering its risk profile.

Transformative Analysis: Capital Recycling and Deleveraging

NHI plans to utilize the $560 million in proceeds for a comprehensive balance sheet restructuring. A significant portion of the funds will be directed toward paying down a $700 million revolving credit facility, a $125 million term loan, and $100 million in private placement notes. This capital recycling strategy allows the REIT to deleverage in a high-interest-rate environment while simultaneously funding a "robust" $488 million investment pipeline. This proactive management of debt ensures that NHI remains agile enough to acquire premium private-pay assets as market opportunities arise throughout the remainder of 2026.