Truist Securities' revised price target of $72 suggests that the analyst expects the stock to continue trading near the same 15.5x FFO multiple. This valuation also indicates a more than 40% premium to the company's net asset value (NAV), which is consistent with the stock's current trading level.
Based on InvestingPro's Fair Value analysis, the stock appears to be trading above its intrinsic value. Based on InvestingPro's Fair Value analysis, the stock appears to be trading above its intrinsic value.
The revision of the price target was primarily attributed to the need to account for a credit loss reserve linked to Senior Living Management (SLM (NASDAQ:SLM)), impacting the forecasted funds from operations (FFO) for the year 2024. Additionally, a minor adjustment was made to the 2025 FFO estimate, decreasing it by only one cent per share. Notably, InvestingPro data shows the company has maintained dividend payments for 34 consecutive years, currently offering a 5.15% yield.
National Health Investors (NYSE:NHI)' stock has experienced a significant retreat, dropping 18% over the last three months. This decline is compared to a 10% fall in the VNQ, an index that tracks real estate investment trusts. Despite this, the stock's valuation remains slightly higher than its historical average, with a P/E ratio of 23.92x. It's worth noting that despite recent declines, the stock has delivered a strong 30% return year-to-date.
Truist Securities' revised price target of $72 suggests that the analyst expects the stock to continue trading near the same 15.5x FFO multiple. This valuation also indicates a more than 40% premium to the company's net asset value (NAV), which is consistent with the stock's current trading level.
In other recent news, National Health Investors reported mixed third-quarter results. The company demonstrated growth in occupancy rates and net operating income (NOI), which increased by 30.4% year-over-year. However, it also faced a decrease in normalized funds from operations (FFO) by 4.6% and issues with a tenant, Senior Living Management, unable to meet lease obligations. Q3 net income was reported at $0.65 per diluted share, while Funds Available for Distribution (FAD) grew by 2.5% to $49.4 million.
National Health Investors' investment activity has exceeded $205 million this year, including a significant acquisition in North Carolina. Looking forward, the company anticipates an annual investment rate of $200 to $400 million and expects a reacceleration in NOI by early to mid-2025.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.