Eric Mendelsohn, president and CEO of National Health Investors, Inc. (NYSE: NHI), sat down for a video interview at Nareit’s REITweek: 2024 Investor Conference, held in New York from June 3-6.
He emphasized the growing demand for senior housing driven by the increasing number of elderly individuals.
"They're making more 80-year-olds every year than ever before,” Mendelsohn said. “That's our target demographic." He added that the scarcity of new developments, due to high interest rates, has further fueled this demand, allowing NHI to thrive.
Mendelsohn noted that socialization in senior housing helps with cognitive impairments, contrasting it with the isolation of staying at home. He highlighted NHI's competitive edge over private equity and banks in securing capital, thanks to their lower leverage and investment-grade rating. Looking ahead, he identified interest rates as the key issue impacting the sector, reiterating its crucial role in maintaining the REIT’s advantage over competitors.
"Our secret sauce, if you will, is being low-levered," Mendelsohn explained, emphasizing the benefits of NHI’s strategic positioning in the current market.