National Health Investors, Inc. (NHI): PESTLE Analysis [Nov-2025 Updated]

You're analyzing National Health Investors, Inc. (NHI) and need a clear view of the external forces shaping its 2025 outlook-the PESTLE framework is defintely the right tool for that. The core story is a powerful demographic tailwind from the 80-plus U.S. population driving demand, allowing NHI to post a strong Normalized FFO guidance midpoint of $4.90 per share and maintain a conservative net debt-to-EBITDA of just 3.6x. But this growth is shadowed by the high-stakes legal uncertainty of the National Healthcare Corporation (NHC) master lease renewal, which commences in early 2027, plus the constant economic pressure from critical labor shortages that threaten operator margins. We need to map these near-term risks to the long-term opportunity.

National Health Investors, Inc. (NHI) - PESTLE Analysis: Political factors

Medicare/Medicaid Reimbursement Rates are a Constant, High-Stakes Political Risk for Skilled Nursing Facilities (SNFs)

The single biggest political risk for National Health Investors, Inc.'s (NHI) Skilled Nursing Facility (SNF) tenants is the annual decision-making process for federal and state reimbursement rates. Your operators' rent coverage-how easily they can pay NHI-is directly tied to these government payments. Any unexpected cut or a lower-than-expected increase immediately pressures tenant margins.

For the federal side, the Centers for Medicare & Medicaid Services (CMS) finalized the Skilled Nursing Facility Prospective Payment System (SNF PPS) for Fiscal Year (FY) 2025. This rule provides a net increase of 4.2% in Medicare Part A payments to SNFs nationwide, which translates to approximately $1.4 billion in aggregate payments. This is a positive tailwind, but it's a political decision that can shift dramatically year-to-year. Still, a 4.2% boost helps operators absorb rising labor costs.

Medicaid, which is state-administered, presents a more fragmented risk. For example, in New York, the Department of Health posted January 2025 Medicaid rate sheets that included a 15 percent reduction to the capital rate component for some facilities. Plus, quality penalties remain a factor, with some homes facing a 2 percent penalty on their Medicaid rate based on quality initiative results. State budgets are tight, so Medicaid rates are defintely a political battleground.

Ongoing Legal and Renewal Discussions with National Healthcare Corporation (NHC) on Their Master Lease, a Major Governance Issue

A significant, high-stakes governance issue for NHI in 2025 is the ongoing relationship and master lease discussions with its long-time tenant, National Healthcare Corporation (NHC). This isn't just a business negotiation; it involves potential legal action that carries political weight due to the scale of the portfolio involved.

In September 2025, NHI provided formal written notice that an affiliate of NHC was in default under the Master Lease. The default is for non-compliance with several non-monetary provisions of the agreement. The tenant, NHC/OP, L.P., operates 32 skilled nursing facilities and three independent living facilities under this lease.

The financial exposure is substantial: the annual base rent for the NHC lease totals $32.2 million for 2025, plus percentage rent. The tenant was given a 30-day cure period from the September 8, 2025 notice. Failure to cure could lead NHI to declare an Event of Default and pursue remedies, which would involve a major portfolio transition and significant political and regulatory challenges given the number of facilities. This is a situation that demands a clear, firm resolution.

Increased Regulatory Scrutiny on Healthcare Provider Staffing Levels Directly Impacts Operator Profitability and Rent Coverage

The political push for improved quality of care has translated into concrete, costly regulations on staffing, which directly impacts the profitability of NHI's tenants and, consequently, NHI's rent collection stability. The Centers for Medicare & Medicaid Services (CMS) finalized a minimum staffing rule in April 2024 that creates a new baseline cost structure for SNF operators.

The rule mandates a total of 3.48 hours of nursing care per resident day (HPRD), which must include a minimum of 0.55 RN HPRD (Registered Nurse) and 2.45 Nurse Aide (NA) HPRD. It also requires an RN to be onsite 24 hours a day, seven days a week.

The compliance deadlines create a near-term financial risk for operators, who must find and hire staff in a tight labor market to meet these standards. Non-rural facilities must meet the 3.48 HPRD and 24/7 RN requirements by approximately April 2026. This regulatory mandate is a significant unfunded cost, forcing operators to increase their labor spend dramatically, which strains their ability to pay rent, even with the FY 2025 Medicare rate increase.

• Total minimum nursing care: 3.48 hours per resident day (HPRD).
• Minimum Registered Nurse (RN) care: 0.55 RN HPRD.
• Minimum Nurse Aide (NA) care: 2.45 NA HPRD.
• Additional requirement: 24/7 onsite RN presence.

Commitment to Submitting a Proposal to Remove the Classified Board Structure at the 2025 Annual Meeting

Corporate governance is a political factor within the company-investor ecosystem. NHI's Board of Directors committed to a significant governance enhancement in early 2025 by agreeing to put forward a proposal to remove the classified board structure (also known as declassification).

This commitment was followed through, and at the Annual Meeting of Stockholders held on May 21, 2025, the proposal to amend the Company's Articles of Incorporation to declassify the Board was approved by the stockholders. This action is a clear response to investor feedback, increasing accountability by allowing all directors to stand for election annually, rather than staggered terms. This move reduces one source of political friction with activist investors and aligns NHI with modern corporate governance standards. It shows the Board is listening.

National Health Investors, Inc. (NHI) - PESTLE Analysis: Economic factors

You're looking at National Health Investors, Inc. (NHI) and trying to figure out how the current economic climate-especially interest rates and operational volatility-is shaping its investment thesis. The headline here is that NHI is successfully navigating a high-rate environment by leveraging its strong balance sheet for accretive acquisitions, but you still have to watch for softness in their core operations.

The economic picture for a healthcare Real Estate Investment Trust (REIT) like NHI is a two-sided coin: high interest rates make debt expensive, but they also make NHI's capital more defintely attractive to operators who need to grow or restructure. This dynamic is driving their external growth strategy, even as internal portfolio performance shows some bumps.

Full-year 2025 Normalized FFO guidance midpoint is $4.90 per share, reflecting over 10% growth year-over-year.

The most direct measure of economic performance for a REIT is its Funds From Operations (FFO), which essentially tells you the cash flow from operations. National Health Investors, Inc. (NHI) has raised its full-year 2025 Normalized FFO guidance midpoint to a robust $4.90 per share. This is a significant increase, representing approximately 10.4% growth over the prior year. Here's the quick math: this growth is being fueled by new investments and the successful transition of properties into the higher-growth Senior Housing Operating Portfolio (SHOP) model, which is a joint venture structure (a way for REITs to participate directly in the property's operating income, not just the rent).

This strong guidance is a clear signal that the company's strategic capital allocation is paying off, overcoming broader economic headwinds that might otherwise drag down performance. It's a testament to management's ability to execute on its pipeline.

High interest rates make REIT capital attractive for operators, leading to $303.2 million in year-to-date investments in 2025.

The elevated interest rate environment, where the Federal Reserve has kept borrowing costs high, is actually an opportunity for National Health Investors, Inc. (NHI). When traditional bank financing is expensive for senior housing operators, a well-capitalized REIT becomes the preferred funding source. This has allowed NHI to deploy capital at attractive rates.

As of the end of the third quarter of 2025, the company announced year-to-date investments totaling $303.2 million. These investments, which include new acquisitions and loan funding, are coming in at initial yields that are accretive, meaning they immediately add to the company's per-share earnings. This is how NHI is turning a macro-economic risk (high rates) into a micro-economic opportunity (high-yield deals).

The composition of this new investment is key:

• Closed a $74.3 million SHOP acquisition on October 1, 2025.
• Closed a $52.5 million Continuing Care Retirement Community (CCRC) acquisition on October 31, 2025.
• The pipeline includes approximately $195 million under signed Letters of Intent (LOIs).

Strong balance sheet with net debt to adjusted EBITDA at a conservative 3.6x, well below the 4.0x-5.0x target.

A conservative balance sheet is crucial in a volatile economy, giving National Health Investors, Inc. (NHI) both stability and dry powder. The company's net debt to adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) ratio stood at a conservative 3.6x as of September 30, 2025. This metric, which measures leverage, is comfortably below the company's own target range of 4.0x-5.0x.

This low leverage position is a major competitive advantage, especially when capital markets are tight. It means NHI has approximately $1.1 billion in total available liquidity, which allows them to move quickly on new acquisitions and fund their pipeline without having to rely on expensive or dilutive equity raises right away. They are in a position of strength when many competitors are constrained.

Same-store SHOP NOI growth guidance revised down to 7% to 9% for 2025, indicating operational volatility.

While the overall financial guidance is strong due to new deals, the core operational performance in the existing portfolio shows economic sensitivity. The same-store SHOP Net Operating Income (NOI) growth guidance for 2025 was revised down to a range of 7% to 9%, a notable drop from the previous guidance of 13%-16%. This is a classic example of micro-economic volatility.

This revision reflects a challenging operating environment for their tenants, driven by factors like persistent labor cost inflation and a slower-than-expected rebound in occupancy in certain markets. For example, the same-store NOI for the SHOP portfolio actually declined by 2.2% year-over-year in the third quarter of 2025. This is a clear risk you need to factor in, as it means organic growth is under pressure, and the company is relying heavily on acquisitions to hit its overall FFO targets.

Here is a summary of the key 2025 economic metrics:

The next concrete step for you is to model the impact of a 7% versus a 9% same-store NOI outcome on their 2026 FFO projections, to see just how much risk is baked into the stock price.

National Health Investors, Inc. (NHI) - PESTLE Analysis: Social factors

Powerful demographic tailwind from the 80-plus U.S. population growing at approximately three times the rate of the 2010s.

The most significant social factor driving National Health Investors, Inc. (NHI) is the explosive growth of the oldest-old population, which is the primary consumer of its assets. The U.S. population aged 65 and over grew at its fastest rate since the late 1800s between 2010 and 2020, with a 38.6% increase. This trend is accelerating in the 80-plus cohort, the group most likely to need high-acuity care. For perspective, the U.S. centenarian population (100+) grew by 50% between 2010 and 2020, demonstrating the compounding effect of longevity on demand. This demographic shift provides a powerful, long-term revenue tailwind for NHI's senior housing and skilled nursing operators.

Here's the quick math on the aging population's impact:

• The 65-and-over population rose to 61.2 million people from 2023 to 2024, an increase of 3.1% in a single year.
• By 2030, over 20% of the total U.S. population will be over 65 years old.
• This massive cohort entering the high-need age bracket is the core driver of occupancy and rent growth for NHI's portfolio.

Increasing demand for high-acuity care, particularly memory care, driving NHI's investment focus.

As the population ages, the acuity (severity of medical need) of residents increases, particularly for specialized care like memory care. Alzheimer's disease alone affects over 6 million Americans as of 2025, a number projected to double by 2050. This creates a non-discretionary, high-margin demand segment that NHI is actively targeting, shifting capital toward facilities that can handle this complexity.

NHI's 2025 investment activity clearly maps to this trend. In March 2025, the company invested $46.3 million in a senior housing community that included 22 memory care units. Following that, in April 2025, NHI acquired a portfolio of six memory care communities with 205 units for $63.5 million. This focus on specialized assets, where the median price for memory care in the U.S. is approximately $6,935 per month, helps insulate the portfolio from general market volatility. The Senior Housing Operating Portfolio (SHOP) reflects this strength, reporting an average occupancy of 89.1% in Q2 2025, a 210 basis point increase year-over-year.

Critical labor shortages and wage inflation for healthcare workers strain operator margins, a major risk to rent coverage.

While demand is strong, the most immediate and acute risk to NHI's cash flow comes from the labor market. The operators who lease NHI's properties are struggling with critical staffing shortages and soaring wage inflation, which directly compresses their net operating income (NOI) and, consequently, their ability to cover rent payments (rent coverage). This is a defintely real and present danger.

The shortage is measurable and costly across the sector. The U.S. is projected to face a shortage of 78,610 full-time Registered Nurses (RNs) in 2025, with RN vacancy rates hitting 9.6%. To attract and retain staff, operators are forced to increase compensation significantly, with workers in the lowest-earning healthcare occupations seeing wage increases of approximately 13% between 2015 and 2024. This cost pressure is further evidenced by the fact that 63% of U.S. healthcare employers are offering sign-on bonuses in 2025, and the cost of RN turnover alone is an average of $61,110 per nurse for U.S. hospitals.

NHI's portfolio is concentrated in senior housing (assisted living, memory care) and skilled nursing facilities.

NHI's portfolio is strategically diversified across the care continuum but remains concentrated in the two core need-driven segments: senior housing (assisted living, memory care, independent living) and skilled nursing facilities (SNFs). This concentration allows NHI to benefit from the aging demographic while managing the differing reimbursement and operational risks of each segment.

The company's focus is clear: maintain stable cash flow from its SNF assets while growing its senior housing exposure. The Skilled Nursing Facility (SNF) portfolio showed resilience in Q1 2025, with a solid rent coverage ratio of 3.06 times. Meanwhile, the forward-looking investment pipeline is heavily weighted toward the growth sector, with a largely $264 million senior housing-focused pipeline in progress as of May 2025.

National Health Investors, Inc. (NHI) - PESTLE Analysis: Technological factors

The technological landscape for National Health Investors, Inc. (NHI) in 2025 is not about the REIT itself installing fiber, but about how it strategically enables its operating partners to use technology to drive operational efficiency and care quality. This focus is a critical differentiator, especially in the Senior Housing Operating Portfolio (SHOP) segment, where NHI directly benefits from improved Net Operating Income (NOI).

Supporting operators in adopting technology like integrated nurse call systems viewable on smartphones/tablets.

NHI is actively working with its operator bench to modernize systems, recognizing that outdated infrastructure creates a competitive lag. The push is to move beyond legacy equipment, like the traditional stationary pull-cord nurse call system, to integrated, mobile solutions. The modern nurse call system is now integrated into applications that are viewable on a caregiver's smartphone or tablet, allowing staff to respond faster and more efficiently. This shift is essential for managing the high-acuity needs of residents in assisted living and memory care, directly supporting NHI's strategy to partner with operators who can manage complex operations.

Increasing use of in-room ambient monitoring technology to detect resident falls and improve care efficiency.

A key technology NHI's operators are adopting is in-room ambient monitoring, which uses non-intrusive sensors to detect motion and events, like resident falls. This technology improves care efficiency by moving from reactive to predictive care and helps address ongoing staffing challenges by prioritizing alerts. This type of technology investment is considered critical for the future of assisted living and memory care, often integrating with artificial intelligence (AI) to provide real-time insights for staff. The broader Ambient Assisted Living (AAL) market, which includes these systems, is a massive tailwind, estimated at USD 11.09 billion in 2025 and projected to grow at a 22.27% Compound Annual Growth Rate (CAGR) through 2030.

NHI acts as a clearinghouse for sharing best practices and vetted technology systems among its 30+ operator partners.

While NHI is a capital provider, its strategic alignment with operators functionally positions it as a clearinghouse for best practices and vetted technology. The company's leadership spends significant time evaluating new operator partnerships based on their ability to manage complex operations and leverage technology. By adding 'next generation' operators like Agemark Senior Living and Juniper Communities in 2025, NHI is building a bench of partners who are already utilizing advanced systems to track health data points and create 'more touch points' for residents. This selective partnership model ensures that successful tech deployments are implicitly shared and prioritized across its portfolio, driving overall performance.

Here's the quick math: The focus on operational technology is directly tied to NHI's financial performance in its most hands-on segment.

Technology adoption is a key differentiator for operational performance in the competitive senior housing market.

Honesty, technology is no longer optional; it is the defintely key differentiator in the competitive senior housing market. The 'next generation of operators' that NHI seeks out are those who use technology in ways that were unimaginable a decade ago. This is crucial because the aging Baby Boomer generation is more tech-savvy and demands a higher level of service and safety, which only tech-enabled operations can deliver. NHI's strategy to transition properties into its SHOP (Senior Housing Operating Portfolio) model, where it shares in the operational upside, makes the technological proficiency of its partners a paramount concern. The significant year-over-year same-store SHOP NOI growth, guided at 7% to 9% for 2025, is the concrete proof that better technology translates directly into better financial returns.

The core technological opportunities for NHI's portfolio include:

• Integrate nurse call data with electronic health records (EHRs) to improve care coordination.
• Use AI-supported systems to analyze ambient monitoring data for predictive health interventions.
• Adopt platforms that streamline staff workflows to mitigate labor shortages.

The next step for you is to cross-reference the technology platforms used by NHI's new operator partners, like Juniper Communities and Agemark Senior Living, to identify the most successful, vetted solutions. Finance: Track capital expenditure allocation for technology upgrades in the SHOP portfolio by the end of the quarter.

National Health Investors, Inc. (NHI) - PESTLE Analysis: Legal factors

The legal landscape for National Health Investors, Inc. (NHI) in 2025 is dominated by high-stakes contract negotiations and continuous, costly regulatory compliance. The most significant near-term legal risk is the renewal of the master lease with National HealthCare Corporation (NHC), a situation that has already led to legal action regarding non-monetary defaults.

Ongoing legal uncertainty surrounding the NHC master lease renewal, which commences January 1, 2027.

The master lease with National HealthCare Corporation (NHC) is a critical legal and financial issue, set to expire on December 31, 2026. This lease covers a substantial portfolio of properties, specifically 32 skilled nursing facilities (SNFs) and three independent living communities across seven states. The legal terms stipulate that NHC has the right to renew the lease at a fair market rent rate, but the negotiation process itself is fraught with risk.

In a clear sign of legal tension, an NHC affiliate was notified by NHI of a non-monetary default on the master lease in July 2025, having failed to remedy the non-compliance by August 29, 2025. This default gives NHI the right to pursue any and all remedies available under the master lease if the tenant fails to cure the issue within 30 days. This active legal maneuvering is intended to strengthen NHI's hand in the renewal talks, where activist investors estimate a renegotiated fair market rent could be as much as 64% higher than the 2024 full-year rent, potentially boosting NHI's annual Funds From Operations (FFO) per share by 12%. If no agreement is reached by the expiration date, the lease terms specify a holdover rent of 150% of the current rent, a significant financial penalty for NHC. The financial impact of the current lease is visible, with the quarterly percentage rent for the NHC lease rising to $1.6 million in the first quarter of 2025, up from $1.4 million in 2024.

Formation of a Special Committee of Non-Interested Directors to advise on the NHC master lease negotiations.

To address shareholder concerns about potential conflicts of interest-given the historical ties between the two companies-the Board of Directors established a Special Committee of Non-Interested Directors in early 2025. This is a crucial legal governance step to ensure the negotiations are conducted at arm's length and in the best interest of NHI stockholders. The committee is currently comprised of four members: Messrs. McCabe and Chapin and Mses. Colden and Todd. They have the full authority of the Board to determine the best path forward for the company. To further ensure a precise, market-driven valuation, NHI also retained Blueprint Healthcare Real Estate Advisors, an independent national consultancy firm, to advise and assist in the renewal process. This move is a textbook example of de-risking a major legal negotiation through enhanced corporate governance.

Compliance with complex state and federal healthcare licensing and property regulations is a continuous operational cost and risk.

As a healthcare real estate investment trust (REIT), NHI's business is fundamentally exposed to the intricate web of state and federal healthcare regulations, even though its tenants bear the direct operating compliance burden. The risk is that a tenant's regulatory failure can lead to license revocation, impacting property value and rent payments. Compliance costs are continuous for the operators, driven by changes like the Centers for Medicare & Medicaid Services (CMS) updates for Calendar Year (CY) 2025, which increase the focus on value-based care and quality measures. Furthermore, the legal environment for healthcare transactions is becoming more restrictive at the state level. Several states, including Oregon, Illinois, and Indiana, have either implemented or proposed new laws that require advance notice or even prior approval for 'material change transactions,' which often include real estate sale-leaseback arrangements-NHI's core business model. This legislative trend adds a layer of legal complexity and time to any new investment or disposition strategy.

• Federal Regulatory Trend: The January 2025 Executive Order 14192 introduced a '10-for-1' requirement, aiming to reduce the regulatory burden, but the specific impact on healthcare is still being determined.
• State Transaction Scrutiny: New state laws are targeting private equity and REIT involvement in healthcare, potentially restricting the ability to execute sale-leaseback deals without extensive regulatory review.
• Operator Compliance Burden: Tenants face new legal requirements, such as the proposed January 2025 updates to the HIPAA Security Rule, mandating stricter cybersecurity measures like the encryption of electronic personal health information (ePHI).

Foreclosure proceedings initiated against real estate collateral for a non-performing mortgage loan in 2024, showing active legal risk management.

NHI actively manages legal risk associated with its loan portfolio, as evidenced by its actions on a non-performing loan in late 2024 and early 2025. As of December 31, 2024, the company had a $10.0 million mortgage note receivable and a $14.5 million mezzanine loan from affiliates of SLM that were classified as non-performing. The legal process for the mortgage loan concluded quickly. In February 2025, NHI successfully received ownership of the property securing the $10.0 million mortgage note receivable in lieu of foreclosure. This legal resolution allowed the company to take control of the asset without a protracted court battle.

Here's the quick math on the resolution:

The resolution of the mortgage note, even with the fair value of the property at $8.6 million being less than the loan amount, shows a pragmatic approach to legal risk. Getting ownership quickly is defintely better than a long, drawn-out foreclosure. This active management of non-performing assets is a necessary part of the REIT model, and the legal team's ability to execute a deed-in-lieu of foreclosure is a positive sign for mitigating further losses.

National Health Investors, Inc. (NHI) - PESTLE Analysis: Environmental factors

You need a clear picture of how National Health Investors, Inc. (NHI) is managing its environmental footprint, especially as ESG (Environmental, Social, and Governance) factors increasingly affect capital costs and investor sentiment. The direct takeaway is this: NHI has formalized its ESG structure in 2025, establishing an accountability framework, but its primary environmental challenge remains the energy consumption and waste generated by its large, triple-net-leased property portfolio.

As a real estate investment trust (REIT), NHI's environmental impact is mostly indirect, coming from the operations of its tenants-the senior housing and medical facilities. Still, the market is demanding transparency, so the company is moving to measure and mitigate these factors. Honestly, this is a smart move to manage long-term risk and attract mission-aligned capital.

Published its Inaugural Sustainability Report in 2025, formalizing its Environmental, Social, and Governance (ESG) strategy.

NHI published its Inaugural Corporate Sustainability Report in the first quarter of 2025, a critical step in formalizing what had previously been an informal commitment. This report, though primarily highlighting activities from the 2023 fiscal year, sets the baseline and strategic direction for its ESG efforts going forward. This initial report was a direct response to investor inquiries and a need to document specific actions on sustainability issues.

The report's publication in 2025 signals a new level of accountability to stakeholders, aligning the company with broader real estate and healthcare industry trends. What this estimate hides is the challenge of a triple-net lease structure, where over 85% of the annualized cash net operating income comes from 175 properties where the tenant, not NHI, controls daily environmental decisions. That makes top-down environmental directives tricky.

Established a management ESG Committee to oversee environmental sustainability and social impact initiatives.

To give the ESG strategy teeth, NHI established a management ESG Committee in 2024, which became fully operational in 2025. This committee is not just a token group; it includes the Chief Financial Officer, the Vice President of Finance and Investor Relations, and the Vice President of HR/Benefits and Compliance. Here's the quick math: putting the CFO on the committee defintely links environmental strategy directly to financial performance and capital allocation.

The committee is tasked with overseeing all strategies related to the Company's social impact and environmental sustainability. It meets at least quarterly with the chairperson of the Nominating and Corporate Governance Committee of the Board, which ensures board-level oversight and accountability for progress on environmental initiatives.

Focus areas for negative impact reduction include GHG emissions and waste management across its property portfolio.

The inaugural report identified the primary areas where NHI's operations and portfolio cause negative environmental impacts: GHG Emissions and Waste generation. Given the nature of healthcare and senior living facilities-high energy use for climate control and high waste volume-this is a realistic assessment.

As a first action, NHI embarked on an inventory of its Scope 1, 2, and 3 greenhouse gas (GHG) emissions for its entire portfolio, obtaining data from approximately 95% of its leased properties and 100% of its Senior Housing Operating Portfolio (SHOP) properties. To mitigate its primary sources of emissions, which include energy use and travel, NHI has started purchasing carbon offsets.

Here is the 2023 baseline data, reported in the 2025 Sustainability Report, which serves as the starting point for future reduction targets:

This data is crucial because it sets the measurable goalpost for future environmental performance. The company's focus is now shifting to capital investments in its SHOP properties to create more sustainable buildings, following the completion of deferred maintenance projects.

• Measure and track portfolio-wide energy and water consumption.
• Implement energy-efficient capital expenditures in SHOP properties.
• Reduce waste generation through tenant engagement and best practices.

The company's primary positive impact is in providing real estate for health centers and residential care.

The core business model is inherently positive from a social and health perspective, which is a significant part of the 'E' in ESG for a healthcare REIT. NHI's positive contribution is primarily in providing the essential real estate infrastructure for health centers and residential care, which directly addresses societal needs, particularly for the vulnerable senior population.

The portfolio includes more than 200 senior living facilities across the U.S., encompassing independent living, assisted living, memory care communities, skilled nursing facilities, medical office buildings, and specialty hospitals. This positive impact is quantified by external ESG ratings, which note that NHI creates significant positive value in categories like Physical Diseases (by providing care facilities), Jobs, and Taxes. In 2025 alone, NHI committed approximately $249.2 million in new investments, expanding this positive footprint.

Next step: Finance needs to integrate the 2023 GHG baseline into the 2026 capital expenditure budget to prioritize energy-saving retrofits in the SHOP portfolio by the end of Q1 2026.