National Health Investors Acquires Six-Property Senior Housing Portfolio for $107.7 Million Across Kentucky, Michigan and Tennessee
Oct. 1, 2026 — National Health Investors, Inc. (NYSE: NHI) has acquired six senior housing properties totaling 443 units across Kentucky, Michigan and Tennessee for $107.7 million, including transaction costs. The real estate investment trust expects to invest an additional $2.3 million during the first year, bringing its all-in basis to approximately $110.0 million, or roughly $248,000 per unit.
Deal Structure and Financial Terms
The six properties will be incorporated into National Health Investors' Senior Housing Operating Portfolio, known as SHOP, through which the company participates directly in the operating economics of senior housing communities rather than collecting fixed rent. At the $107.7 million purchase price, the implied cost is approximately $243,000 per unit across the 443-unit portfolio.
The communities are expected to generate an initial NOI yield of approximately 7.0%, or 6.6% after routine capital expenditures. At the stated 7.0% yield, the portfolio implies roughly $7.5 million of initial annual net operating income. After accounting for routine capital expenditures at the 6.6% yield, recurring NOI on the acquisition basis would be approximately $7.1 million.
Allegro Living Management, an affiliate of Allegro Living and an existing operator relationship for National Health Investors, will manage the communities.
Pipeline and 1031 Exchange Strategy
The acquisition is part of an active deployment period for National Health Investors. The company currently has approximately $164.3 million of investment opportunities under signed letters of intent and approximately $51.7 million under real estate purchase options. Beyond those commitments, the company is evaluating an approximately $285 million pipeline consisting primarily of SHOP investments, sale-leasebacks and loans with purchase options for senior housing properties. That pipeline figure excludes portfolio deals.
National Health Investors said it expects to use proceeds from a Section 1031 exchange initiated in connection with its NHC portfolio sale to fund a significant portion of these opportunities. If completed, those exchanges are expected to defer recognition of a substantial portion of the taxable gain arising from that disposition, providing a tax-efficient source of acquisition capital.
The October transaction follows a separate $105.5 million acquisition of nine assisted living properties totaling 460 units that National Health Investors completed in February 2026, also placed in SHOP and managed by Allegro-related operations. The two announced acquisitions together represent $213.2 million of purchase price across 15 properties and 903 units, at an average purchase price of approximately $236,000 per unit.
Senior Housing Market Context
The acquisition comes as senior housing operating fundamentals have strengthened. Occupancy across NIC MAP's 31 primary markets reached 89.5% in the first quarter of 2026, the 19th consecutive quarterly increase and the highest level in the series since 2006. Independent living occupancy exceeded 91%, while assisted living occupancy reached 87.9%.
New supply has provided limited competitive pressure. Construction starts are down 85% from peak levels in primary markets and 94% in secondary markets, with overall construction activity at a 17-year low. A typical senior housing project requires approximately 29 months from groundbreaking through stabilized occupancy, limiting near-term inventory additions. CBRE projects annual senior housing rent growth of more than 5% over the next 36 months, and NIC expects sector occupancy to exceed 90% during 2026.
Average senior housing cap rates compressed to approximately 6.2% in the fourth quarter of 2025, with more than 84% of CBRE survey respondents expecting further compression in 2026. National Health Investors' disclosed 7.0% initial NOI yield is above that sector-wide average, though the comparison is not exact given differences in care type, market, operator, property age and management structure. Senior housing transaction volume reached nearly $27 billion in 2025, up from $17.3 billion in 2024 and the highest level since 2015. REITs and other public-market buyers accounted for 32% of 2025 transaction volume, compared with 24% in 2024.
About National Health Investors
National Health Investors, Inc., established in 1991 as a Maryland corporation, is a self-managed real estate investment trust. The company owns, leases, operates and finances the development of real estate properties focused on senior housing communities and medical facilities. Its portfolio includes independent living facilities, assisted living facilities, entrance-fee communities, senior living campuses, skilled nursing facilities and hospitals. The company operates through two reportable segments: Real Estate Investments and SHOP. National Health Investors' SHOP net operating income increased 188.5% year over year in the second quarter of 2026, driven by the transition and acquisition of 27 properties.
Investor relations contact: Dana Hambly, Vice President, Investor Relations, (615) 890-9100.
Sources
National Health Investors, Inc. — NHI Announces $107.7 Million SHOP Investment (Oct. 1, 2026)