National Health Investors (NHI) will cut the dividend by 18.4 percent to 90 cents per share in 2021. Last year the REIT raised its quarterly dividend by 5.0 percent to $1.1025 per share, marking the 18th consecutive year of dividend increases by NHI. A new annual rate of $3.60 yields 5.3% at a stock price of $67.
NHI has declared a second quarter dividend of $0.90 per share that is payable in cash on August 6, 2021 to common shareholders of record as of June 30, 2021. The second quarter dividend represents an 18.4% reduction from the first quarter dividend of $1.1025 per share. The reduction in the dividend will conserve approximately $28 million in 2021 based on the current share count.
"The NHI Board of Directors is committed to preserving a prudent and conservative capital structure that ensures the Company has sufficient flexibility to manage through the impact of the pandemic and as a result declared a second quarter dividend of $0.90 per share. We believe this action puts NHI in a better position to significantly improve the quality of our real estate portfolio through lease restructurings, asset sales, and accretive acquisitions while still being committed to a sustainable dividend to our shareholders," said Eric Mendelsohn, President and CEO.
Mr. Mendelsohn concluded, "We have said that we are motivated to use the pandemic to transform NHI into a stronger company. Today's action is another indication that the transformation is underway. We expect that right-sizing our dividend provides sufficient capacity to assist our operators through the business recovery while maintaining our balance sheet strength and ultimately return to growth."
National Health Investors, Inc. is a real estate investment trust specializing in sale-leaseback, joint-venture, mortgage and mezzanine financing of need-driven and discretionary senior housing and medical investments. NHI's portfolio consists of independent, assisted and memory care communities, entrance-fee retirement communities, skilled nursing facilities, medical office buildings and specialty hospitals.