National Health Investors, Inc. · NYSE:NHI
National Health Investors — Q2 2024 Earnings Presentation
24 slides from National Health Investors's earnings presentation, Aug 6, 2024
Slide 1: Investor Update
National Health = = Investors =~ Investor Update August 6, 2024
Slide 2: Disclaimers
Disclaimers NATIONAL HEALTH INVES! 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,” “anticip
Slide 3: Overview of Second Quarter 2024
Ove rvi ew of Seco n d Qu a rte r 2 024 NATIONAL HHALTH INVESTORS ummary of erly Financial Results Key Operating and Balance Sheet Highlights Real Estate Investments Qi 2024 * Lease revenue excluding straight-line, lease amortization, and escrow reimbursement revenue of $62.5 million compares to Net
Slide 4: Updated 2024 Guidance
Updated 2024 Guidance pty . NATIONAL HEALTH INVESTORS 2024 Guidance? Increased 24 Guidance Assumptions & Considerati As of May-24 ‘cept per share amounts) Midpoint Net income attributable to common stockholders $ 129.3 Adjustments to NAREIT Funds From Operations (FFO) Depreciation (net) * 66.9 Gains
Slide 5: Investment Overview
Hy HEALTH INVESTORS Investment Overview Active Management Creates Significant Potential Organic Multiple Avenues for Organic ignit ial Organi Growth in SHOP Platform Financial Strength Positions NHI for External Growth Strong Industry Dynamics Support Long Term Growth Growth Potential operator perfo
Slide 6: Active Management Creates Stronger Portfolio
Active Management Creates Stronger Portfolio NATIONAL HEALTH INVESTORS EBITDARM Coverage Improvement Trailing Twelve Month (TTM) EBITDARM Coverage +2 Coverage across all NHI asset classes experienced sequential improvement for the seroeniouiieg aan 92.2028 932023 98 2028 032024 trailing twelve month
Slide 7: Asset Diversification Creates Stronger Portfolio
Co) Asset Diversification Creates Stronger Portfolio ‘NATIONAL HEAL! =@=Senior Housing - Need Driven —O—Bickford ‘—=@= Need Driven ex. Bickford 1.80 The Senior Housing — 1.60x Need Driven portfolio 1.40 has experienced 1.20% significant coverage 1.00% improvement since 0.80% the start of the 0.60x p
Slide 8: Senior Housing - Need Driven Fundamentals Improving
Co) Senior Housing - Need Driven Fundamentals Improving NATIONAL HEALTH INVESTORS Senior Housing — Need Driven Main Optimization Focus + The Senior Housing - Need Driven leased portfolio represents approximately 28% of annualized adjusted NOI including approximately 13% from the Bickford leased port
Slide 9: 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 10: Senior Housing Operating Portfolio (SHOP) Opportunity
Senior Housing Operating Portfolio (SHOP) Opportunity (dollars in thousands except RevPOR) J, HEALTH INVESTORS nificant 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 ventures
Slide 11: Senior Housing Operating Portfolio (SHOP) Opportunity
G Senior Housing Operating Portfolio (SHOP) Opportunity NATIONAL HEALTH INVESTORS * 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 investmen
Slide 12: Financial Strength Positions NHI for Potential Accretive External Growth
Financial Strength Positions NHI for Potential Accretive External Growth (dollars in millions) NATIONAL HEALTH INVESTORS Variable & Fixed Rate Debt Strong Balance Sheet Provides Ample Liquidity for Investment * Despite significant deferrals and rent restructuring, NHI has maintained its target lever
Slide 13: Recent Developments and Pipeline
& Recent Developments and Pipeline (dollars in millions) NATIONAL HEALTH INVESTORS Date 2Q 2024 2Q2024 1Q.2024 4Q 2023 3Q 2023 1Q.2023 1Q.2023 4Q 2022 4Q, 2022 2Q2022 1Q.2022 Tenant / Borrower Encore Senior Living * Compass Senior Living Carriage Crossing Innovation Senior Living Capital Funding Gro
Slide 14: Optimization Creating More Invested Capital Efficiency
& Optimization Creating More Invested Capital Efficiency NATIONAL HEALTH INVESTORS Optimization Improving ROIC * Pandemic impacts start in late 2020 with first rent concessions granted * Dispositions of underperforming properties begins in 2Q21 and included 46 senior housing properties and seven SNF
Slide 15: Favorable Industry Dynamics: Supply Growth is Slowing
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 4Q 201 is near historic lows more than 50% below the historical average Inventory
Slide 16: Favorable Industry Dynamics: Demand Growth is Surging
Favorable Industry Dynamics: A Pathway For Long Term Growth NEY D) nd Growth is Surging The 85+ population is expected to grow by 4.5% annually Absorption remains well above historic averages resulting in through 2030 compared to 0.3% in the prior decade the highest ever number of occupied senior ho
Slide 17: Appendix: Definitions
Appendix: Definitions NATIONAL HEALTH INVESTORS 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
Slide 18: Appendix: Definitions
Appendix: Definitions NATIONAL HEALTH INVESTORS 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
Slide 19: Appendix: Senior Housing & SNF Dispositions
Appendix: Senior Housing & SNF Dispositions (dollars in thousands) NATIONAL HEALTH INVESTORS Annualized Annuali Implie EBITDARM. 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 2
Slide 20: Reconciliations: FFO, Normalized FFO, Normalized FAD
Reconciliations: FFO, Normalized FFO, Normalized FAD erties Three Months Ended Six Months Ended June 30, June 30, (unaudited, $ in thousands, except share and per share amounts) 2024 2023 2024 2023 Net income attributable to common stockholders $ 35,227 $ 39,760 $ 66,142 $ 74,244 Elimination of cert
Slide 21: Reconciliations: Net Operating Income & Adjusted NOI
Reconciliations: Net Operating Income & Adjusted NOI Sara ETAT Three Months Ended June 30, (unaudited, dollars in thousands) 2024 2023 Net Income $ 34,952 $ 39,447 Interest 14,854 14,194 Gains on sales of real estate (1,517) (11,366) Loss on early retirement of debt - va (Gain) loss from equity meth
Slide 22: Reconciliations: Adjusted EBITDA
Reco ncl I iat i ons: Adj u ste d E B ITDA XATIONAI. HEALTH INVESTORS Three Months Ended June 30, (unaudited, dollars in thousands) 2024 2023 Net income $ 34,952 $ 39,447 Interest expense 14,854 14,194 Franchise, excise, and other taxes 47 258 Depreciation 17,490 17,730 NHI's share of EBITDA adjustm
Slide 23: Reconciliations: Adjusted EBITDA
Reco nci I iat i ons: Adj u ste d E B ITDA NATIONAL HHALTH INVESTORS Net income $ 35,384 $ 39,230 $ = -30,849$ = 6505 $ = 8,246 $ 21,466 $ 34,230 $ = 1,558 $ 34,183 $ 39,448 $ 29,033 $ = 31,718 $ = 30,657 $ 34,952 Interest expense 12,973 12,840 12,715 12,282, 10,198 10,862, 14,412 12,445 14,027 14,1
Slide 24: Reconciliations: ROIC
Reconciliations: ROIC TIONAL HEALTH [NVESTOI ars in thousands) Total Assets $3,167,835 $3,166,971 $3,139,273 $3,120,346 $3,183,273 $3,077,445 $2,912,177 $2,838,876 $2,802,503 ‘Add: Accumulated Depreciation 534,905 555,762 «576,605 597,638 «618,299 622,943 593,215 576,668 = 582,175 Less: Straight-lin
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