Nhi Announces Planned $560m Portfolio Sale To National Healthcare Corporation, Sharpening Focus On Private-pay Senior Living

National Health Investors (NYSE: NHI) intends to sell a portfolio of 32 skilled nursing facilities and three independent living properties for $560 million to one of its current operating partners, National HealthCare Corporation (NYSE American: NHC).

The transaction is expected to close on July 1 subject to all closing conditions being met. Attached to the proposed deal is an estimated transaction cost of $6 to $8 million. 

On a pro forma basis, the Senior Housing Operating Portfolio (SHOP) for NHI is set to account for approximately 22% of total investments and 13.8% of the company’s annualized net operating income (NOI) going forward. Following the completion of the sale, NHI’s exposure to skilled nursing will drop to roughly 12.2% of its total investments and 16.5% of its annualized NOI.

“We are pleased to have reached an agreement on the NHC portfolio, which provides NHI with significant capital and financial flexibility,” President and CEO Eric Mendelsohn said in a press release. “This transaction accelerates our capital recycling strategy, increases our concentration in private-pay senior housing, and positions us to pursue attractive investment opportunities. We remain disciplined in our underwriting and focused on generating long-term value for stockholders.”

The transaction is expected to increase NHI’s shift towards private-pay senior living options, which the company views as a higher-quality and more attractive asset class compared to skilled nursing. NHI expects to redeploy sale proceeds into senior housing investments, including SHOP assets, and through its capital allocation strategy and potential 1031 exchanges.

NHI has an active senior housing investment pipeline in the works, including $105.5 million already invested in SHOP this year, with $110.6 million in signed letters of intent to purchase additional senior living assets and a prospective deal pipeline of $488 million, according to an investor presentation published on Tuesday.

The 35 properties currently leased by NHC generated a cash lease revenue of approximately $39.7 million in 2025. 

A spokesperson for NHI declined to comment further on the proposed transaction as of Tuesday afternoon.

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