National Health Investors, Inc. · NYSE:NHI
National Health Investors — Q1 2025 Earnings Presentation
25 slides from National Health Investors's earnings presentation, May 6, 2025
Slide 1: National Health Investors Investor Update
National Health Investors Investor Update May 5, 2025 Montage Creek Senior Living
Slide 2: Disclaimers
Disclaimers This presentation, as well as information included in oral statements made, or to be made, by our senior management contain forward- looking statements that are based on current expectations, estimates, beliefs and assumptions. Words such as “may,” “will,” “anticipates,” “expects,” “inte
Slide 3: Overview of First Quarter 2025
Overview of First Quarter 2025 Summary of Quarterly Financial Results 1 Key Operating and Balance Sheet Highlights Real Estate Investments (in thousands except per share and percentages) Q1 2024 Q4 2024 Q1 2025 • Lease revenue excluding straight-line, lease amortization, and escrow reimbursement rev
Slide 4: Updated 2025 Guidance
Updated 2025 Guidance 2025 Guidance Midpoints 1 2025 Guidance Assumptions & Considerations As of Feb-25 As of May-25 NHI’s 2025 annual guidance includes the following assumptions: (in millions except per share amounts) Midpoint Midpoint • $155 million in unidentified new investments at an initial av
Slide 5: Investment Overview
Investment Overview Active Management Creates Significant Potential Organic Financial Strength Positions Strong Industry Dynamics Multiple Avenues for Organic Growth in SHOP Platform NHI for External Growth Support Long Term Growth 1 Growth • Targeting SHOP conversions of • Significant upside opport
Slide 6: Multiple Avenues for Organic Growth
Multiple Avenues for Organic Growth (dollars in thousands) Rent Resets, Internal Investment, and SHOP Conversions Create Incremental Organic Growth Opportunities • SHOP Conversions • NHI is targeting select opportunities to transition triple net senior housing assets to SHOP structures where the Com
Slide 7: Active Asset Management Creates Stronger Portfolio
Active Asset Management Creates Stronger Portfolio EBITDARM Coverage Improvement Trailing Twelve Month (TTM) EBITDARM Coverage 1, 2 Need Driven Senior Housing EBITDARM coverage continues to show improvement Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Senior Housing as a result of dispositions, rent rest
Slide 8: Asset Diversification Creates Stronger Portfolio
Asset Diversification Creates Stronger Portfolio Senior Housing - Need Driven Bickford Need Driven ex. Bickford 1.80x The Senior Housing – 1.60x Need Driven portfolio 1.40x has experienced 1.20x significant coverage 1.00x improvement since 0.80x the start of the 0.60x portfolio optimization in 2021.
Slide 9: Senior Housing - Need Driven Fundamentals Improving
Senior Housing - Need Driven Fundamentals Improving Senior Housing – Need Driven Main Optimization Focus • The Senior Housing – Need Driven leased portfolio represents approximately 32% of annualized adjusted NOI including approximately 12% from the Bickford leased portfolio and 20% from other Need
Slide 10: Senior Housing Operating Portfolio (SHOP) Opportunity
Senior Housing Operating Portfolio (SHOP) Opportunity (dollars in thousands except RevPOR) Significant Organic NOI Upside in SHOP as 2025 Outlook Unchanged • SHOP Upside: SHOP NOI increased by 4.9% in Q1 2025 driven mainly by a 390-bps increase in occupancy to 89.2% which resulted in a 5.2% increase
Slide 11: Senior Housing Operating Portfolio (SHOP) Opportunity
Senior Housing Operating Portfolio (SHOP) Opportunity • 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. The pandemic, lack of investment, and disruption from multi
Slide 12: Recent Developments and Pipeline
Recent Developments and Pipeline (dollars in millions) Date Tenant / Borrower Investment Type Yield 1 Investment Significant Pipeline Creates Pathway for External Growth Opportunities 2Q 2025 Encore Senior Living Construction loan 9.00% $ 28.0 2Q 2025 Agemark Senior Living Lease 8.00% 63.5 1Q 2025 S
Slide 13: Financial Strength Positions NHI for Potential Accretive External Growth
Financial Strength Positions NHI for Potential Accretive External Growth (dollars in millions) Strong Balance Sheet Provides Ample Liquidity for Investment Liquidity as of March 31, 2025 • NHI has maintained its target leverage in the 4.0x – 5.0x net debt to adjusted EBITDA range Cash and Restricted
Slide 14: Optimization Creating More Invested Capital Efficiency
Optimization Creating More Invested Capital Efficiency Optimization Improving ROIC • Pandemic impacts start in late 2020 8.3% 8.3% 8.3% 8.3% 8.3% 8.3% with first rent concessions granted 8.2% 8.0% 8.1% • Dispositions of underperforming 7.9% 7.9% properties begins in 2Q21 and 7.8% 7.8% included 46 se
Slide 15: Favorable Industry Dynamics: A Pathway For Long Term Growth
Favorable Industry Dynamics: A Pathway For Long Term Growth Supply Growth is Slowing Inventory growth across the care continuum at 1.2% is near New starts in 1Q 2025 were the lowest ever recorded and historic lows 64% below the historical average Inventory Growth Senior Housing: Rolling 4-Quarter Un
Slide 16: Favorable Industry Dynamics: A Pathway For Long Term Growth
Favorable Industry Dynamics: A Pathway For Long Term Growth Demand Growth is Surging The 85+ population growth is expected to accelerate to 1.9% Absorption remains well above historic averages resulting in by 2030 and 3.5% in the following decade the highest ever number of occupied senior housing un
Slide 17: Appendix: Definitions
Appendix: Definitions 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 EBITDA as consol
Slide 18: Appendix: Definitions
Appendix: Definitions NAREIT FUNDS FROM OPERATIONS (FFO) FFO per share, as defined by the National Association of Real Estate Investment Trusts (NAREIT) and applied by us, is calculated using the two-class method with net income allocated to common stockholders and holders of unvested restricted sto
Slide 19: Appendix: Senior Housing & SNF Dispositions
Appendix: Senior Housing & SNF Dispositions (dollars in thousands) Net Operator Units Properties Proceeds Q2 2021 Bickford Senior Living 1 247 6 $39,924 Q3 2021 Holiday Retirement 1,030 9 119,799 Q3 2021 Senior Living Management 131 1 12,847 Q4 2021 Brookdale Senior Living 76 1 11,880 Q4 2021 Senior
Slide 20: Reconciliations: FFO, Normalized FFO, Normalized FAD
Reconciliations: FFO, Normalized FFO, Normalized FAD Three Months Ended Three Months Ended March 31, December 31, (unaudited, $ in thousands, except share and per share amounts) 2025 2024 (unaudited, $ in thousands, except share and per share amounts) 2024 Net income attributable to common stockhold
Slide 21: Reconciliations: Net Operating Income & Adjusted NOI
Reconciliations: Net Operating Income & Adjusted NOI Three Months Ended March 31, (unaudited, dollars in thousands) 2025 2024 Net Income $ 33,817 $ 30,657 Interest 14,337 14,869 Gains on sales of real estate (114) (100) (Gain) loss from equity method investment (415) (166) Franchise, excise and othe
Slide 22: Reconciliations: SHOP NOI
Reconciliations: SHOP NOI ($ in thousands) 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 2024 Q1 2025 Total revenues $ 35,796 $ 11,700 $ 11,793 $ 12,367 $ 12,950 $ 48,809 $ 13,256 $ 13,390 $ 13,771 $ 14,004 $ 54,421 $ 13,939 Labor (16,165) (4,227) (17,166) (4,299) Dietary
Slide 23: Reconciliations: Adjusted EBITDA
Reconciliations: Adjusted EBITDA Three Months Ended March 31, (unaudited, dollars in thousands) 2025 2024 Net income $ 33,817 $ 30,657 Interest expense 14,337 14,869 Franchise, excise, and other taxes 269 (187) Depreciation 19,157 17,505 NHI's share of EBITDA adjustments for unconsolidated entities
Slide 24: Reconciliations: Adjusted EBITDA
Reconciliations: Adjusted EBITDA (dollars in thousands) Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q4 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Net income $ 39,230 $ 30,849 $ 6,505 $ 8,246 $ 21,466 $ 34,230 $ 1,558 $ 34,183 $ 39,448 $ 29,033 $ 31,718 $ 30,657
Slide 25: Reconciliations: ROIC
Reconciliations: ROIC (dollars in thousands) 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 Total Assets $ 3,166,971 $ 3,139,273 $ 3,120,346 $ 3,183,273 $ 3,077,445 $ 2,912,177 $ 2,838,876 $ 2,802,503 $ 2,587,291 Add: Accumulated Depreciation 555,762 576,605 597,638 618,299 622,943 593,215 576,668 582
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