National Health Investors, Inc. · NYSE:NHI
National Health Investors — Q1 2024 Earnings Presentation
20 slides from National Health Investors's earnings presentation, May 6, 2024
Slide 1: National Health Investors Investor Update
National Health Investors Investor Update May 6, 2024
Slide 2: Safe Harbor Statement
Safe Harbor Statement NATIONAL HEALTH INVESTORS These slides and other materials we have filed or may file with the Securities and Exchange Commission, as well as information included in oral statements made, or to be made, by our senior management contain forward-looking statements that are based o
Slide 3: Overview of First Quarter 2024
Overview of First Quarter 2024 RATIONAL IATA TNVESTORS Summary of Quarterly Financial Results Key Operating and Balance Sheet Highlights Real Estate Investments See a1 2023 , 1 2024 + Lease revenue excluding straight-line, lease amortization, and escrow reimbursement revenue of $60.5 million compare
Slide 4: Updated 2024 Guidance
Updated 2024 Guidance pty . NATIONAL HEALTH INVESTORS 2024 Guidance Increased 24 Guidance Assumptions & Considerati ‘cept per share amounts) Net income attributable to common stockholders Adjustments to NAREIT Funds From Operations (FFO) Depreciation (net) * Gains on sales (net) and impairments of r
Slide 5: Investment Overview
Hy HEALTH INVESTORS Investment Overview Optimization Creates . . Significant Organic Growth in Financial Strength Positions Strong Industry Dynamics Multiple Avenues for Organic SHOP Platform NHI for External Growth Support Long Term Growth Growth * Improving operator performance * Significant upsid
Slide 6: Optimization Creates Stronger Portfolio
Co) Optimization Creates Stronger Portfolio NAT J, HEALTH INVESTORS EBITDARM Coverage Improvement Coverage across all NHI asset classes experienced sequential improvement for the trailing twelve months (TTM) through 4Q 2023. Need Driven Senior Housing EBITDARM coverage continues to show improvement
Slide 7: Senior Housing - Need Driven Fundamentals Improving
Co) Senior Housing - Need Driven Fundamentals Improving NATIONAL HEALTH INVESTORS Senior Housing — Need Driven Main Optimization Focus im + The Senior Housing - Need Driven leased portfolio represents approximately 27% of annualized adjusted NOI including approximately 12% from the Bickford leased p
Slide 8: Multiple Avenues for Organic Growth
Multiple Avenues for Organic Growth (dollars in thousands) NATIONAL HEALTH INVESTORS Rent Resets, Internal Investment, Repayments Fuel Organic Growth * Bickford base rent increased from $31.4 million to $34.5 million effective April 1, 2024, and deferral repayments continue to be based on revenue ta
Slide 9: Senior Housing Operating Portfolio (SHOP) Opportunity
Senior Housing Operating Portfolio (SHOP) Opportunity (dollars in thousands except RevPOR) NATIONAL HEALTH INVESTORS Significant Organic NOI Upside in SHOP as Fundamentals Continue to Improve * SHOP Upside: NHI converted 15 former Holiday properties from triple-net to senior housing operating joint
Slide 10: Senior Housing Operating Portfolio (SHOP) Opportunity
G Senior Housing Operating Portfolio (SHOP) Opportunity NATIONAL HEALTH INVES * Prior to the pandemic, the 15-community portfolio that transitioned to SHOP averaged occupancy in the high-80% range which was comparable to NIC MAP IL properties in secondary markets. RS: * The pandemic, lack of investm
Slide 11: Financial Strength Positions NHI for Accretive External Growth
& Financial Strength Positions NHI for Accretive External Growth (dollars in millions) J, HEALTH INVESTORS Strong Balance Sheet Provides Ample Liquidity for Investment Date Tenant /Borrower —_—_Investment Type Investment 10.2024 Carriage Crossin ‘Mortgage loan 15.0 * Despite significant deferrals an
Slide 12: Optimization Improving ROIC
Optimization Improving ROIC Pandemic impacts start in late 2020 with first rent concessions granted Dispositions of underperforming properties begins in 2Q21 and included 44 senior housing properties and seven SNFs Bickford rent reset and SHOP formation at the beginning of 2Q22 ROIC improving as dis
Slide 13: Favorable Industry Dynamics: A Pathway For Long Term Growth
Favorable Industry Dynamics: A Pathway For Long Term Growth Nl Hy NATIONAL HEALTH INVESTORS pply Growth is Slowi Inventory growth across the care continuum at less than 1.5% New starts in 1Q 2024 were the lowest since 1Q 2011 and is near historic lows more than 50% below the historical average Inven
Slide 14: Favorable Industry Dynamics: A Pathway For Long Term Growth
Favorable Industry Dynamics: A Pathway For Long Term Growth NEY NATIONAL, RS The 85+ population is expected to grow by 4.5% annually Absorption is at historically high levels which has resulted in through 2030 compared to 0.3% in the prior decade the highest ever number of occupied senior housing un
Slide 15: Definitions
Definitions NATIONAL HEALTH INVESTOI ADJUSTED EBITDA & EBITDARM. NHI considers Adjusted EBITDA to be an important supplemental measure because it provides information which is used to evaluate the Company's performance and serves as an indication of the ability to service debt. NHI defines Adjusted
Slide 16: Appendix: Senior Housing & SNF Dispositions
Appendix: Senior Housing & SNF Dispositions (dollars in thousands) NATIONAL HEALTH INVESTORS Q2 2021 Q3 2021 03 2021 Q4 2021 Q4 2021 Q4 2021 Ql 2022 02 2022 2 2022 Q2 2022 Q2 2022 Q2 2022 03 2022 03 2022 Ql 2023 Ql 2023 Q2 2023 Q2 2023 Q2 2023 Q2 2023 Q2 2023 03 2023 Q4 2023 03 2022 1 assumes 5% man
Slide 17: Reconciliations: FFO, Normalized FFO, Normalized FAD
Reconciliations: FFO, Normalized FFO, Normalized FAD erties Three Months Ended March 31, (unaudited, $ in thousands, except share and per share amounts) 2024 2023 Net income attributable to common stockholders $i 30,915 $ 34,484 Elimination of certain non-cash items in net income: Real estate deprec
Slide 18: Reconciliations: Net Operating Income
Reconciliations: Net Operating Income Sara ETAT Three Months Ended March 31, (unaudited, $ in thousands) 2024 2023 NOI Reconciliations: Net income $ 30,657 $ 34,183 Gains from equity method investment (166) a Gains on sales of real estate, net (100) (1,397) Loan and realty losses (gains) 10 (418) Ge
Slide 19: Reconciliations: Adjusted EBITDA
Reconciliations: Adjusted EBITDA NATIONAL HEALTH INVESTORS Three Months Ended March 31, (S in thousands) 2024 2023 Net income $ 30,657 $ 34,183 Interest expense 14,869 14,027 Franchise, excise, and other taxes (187) 183 Depreciation 17,505 17,617 NHI’s share of EBITDA adjustments for unconsolidated
Slide 20: Reconciliations: ROIC
Reconciliations: ROIC NATIONAL HEALTH INVESTORS Total Assets ‘Add: Accumulated Depreciation Less: Straight-line Receivable Invested Capital Normalized FAD ‘Add: Contractual interest FAD before contractual interest ‘TIM Invested Capital ‘TTM Normalized FAD plus contractual interest ROIC 4021 $ 3,167,
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