Ahead of NHC Lease Negotiations, Activist Shareholder Calls for NHI Board Shakeup

An activist investor of National Health Investors (NYSE: NHI) has called for changes to the real estate investment trust’s (REIT’s) board of directors , ahead of lease negotiations with one of the REIT’s largest tenants, National HealthCare Corporation (NHC).

Land & Buildings Investment Management issued a letter to shareholders on Thursday, urging a shakeup in Board members in part to get optimal results from the NHC negotiations – there’s substantial upside in terms of future lease rental rates, they said. Land & Buildings is a “significant” shareholder for NHI, the company said in its letter.

Jonathan Litt, founder and CIO of Land & Buildings, penned the letter, which included the intention to vote against two incumbent board members during the annual shareholder meeting, citing conflicts of interest as the reason.


All in all, the letter calls for shareholders to take advantage of a critical opportunity to “unlock value” with their vote, referring to NHC lease negotiations. It could be a chance to improve corporate governance too, Litt said.

NHI is an “overlooked diamond in the rough” among the publicly-traded REITs with most of its income derived from senior housing assets while its skilled nursing net lease portfolio is under-rented and could provide significant future earnings growth, Litt noted in the letter.

NHI leaders told Skilled Nursing News they had no comment on the matter.


Land & Buildings has sparred with other owners and operators in the senior housing and skilled nursing sectors in the past, including Brookdale Senior Living (NYSE: BKD) and Ventas (NYSE: VTR).

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