National Health Investors, Inc. · NYSE:NHI
National Health Investors — Q3 2024 Earnings Presentation
24 slides from National Health Investors's earnings presentation, Nov 5, 2024
Slide 1: Investor Update
National Health Investors Investor Update November 5, 2024 Spring Arbor at Cary Nt ‘NATIONAL HEALTH INVESTORS
Slide 2: Disclaimers
Disclaimers NATIONAL HEALTH INVESI 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 Third Quarter 2024
Ove rview of Th i rd Qu a rte r 2024 NATIONAL HEALTH INVESTORS Summary of Quarterly Financial Results Key Operating and Balance Sheet Highlights Real Estate Investments + Lease revenue excluding straight-line, lease amortization, and escrow reimbursement revenue of $60.1 million compares to Net Inco
Slide 4: Updated 2024 Guidance
Updated 2024 Guidance NATIONAL HEALTH INVESTORS 2024 Guidance? Midpoints Net income attributable to common stockholders Adjustments to NAREIT Funds From Operations (FFO) Depreciation (net) 2 Gains on sales (net) and impairments of real estate NAREIT FFO Adjustments to Normalized Funds From Operation
Slide 5: Investment Overview
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 performance improvement d
Slide 6: Active Management Creates Stronger Portfolio
Active Management Creates Stronger Portfolio NATIONAL H TH INVESTORS EBITDARM Coverage Improvement Tra’ g Twelve Month (TTM) EBITDARM Coverage +2 Coverage across all NHI asset classes experienced sequential improvement for the sestornouite aaa 932023 942023 an 2024 92 2024 trailing twelve months (TT
Slide 7: Asset Diversification Creates Stronger Portfolio
(> Asset Diversification Creates Stronger Portfolio NATIONAL HEAL! =@Senior Housing -Need Driven =@=eBickford <@meNeed Driven ex. Bickford 1.80x The Senior Housing — 1.60 Need Driven portfolio 1.40x has experienced 1.20% significant coverage 1.00x improvement since oo. the start of the portfolio opt
Slide 8: Senior Housing - Need Driven Fundamentals Improving
(> Senior Housing - Need Driven Fundamentals Improving NATIONAL HEALTH INVESTORS Senior Housing — Need Driven Main Optimization Focus in thousan + The Senior Housing — Need Driven leased portfolio represents approximately 30% of annualized adjusted NOI including Net Implied Cash EBITDARM approximate
Slide 9: Multiple Avenues for Organic Growth
Multiple Avenues for Organic Growth (dollars in thousands) NHY NATIONAL HEALTH INVESTORS Resets, Internal Investment, Repayments Fuel Organic Growt! * 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 tar
Slide 10: Senior Housing Operating Portfolio (SHOP) Opportunity
Senior Housing Operating Portfolio (SHOP) Opportunity (dollars in thousands except RevPOR) nificant Organic NOI Upside in SHOP as Fundamentals Continue to Improve NATIONAL H TH INVESTORS SHOP Upside: NHI converted 15 former Holiday properties from triple-net to senior housing operating joint venture
Slide 11: Senior Housing Operating Portfolio (SHOP) Opportunity
C) 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 investmen
Slide 12: Financial Strength Positions NHI for Potential Accretive External Growth
Financial Strength Positions NHI for Potential Accretive External Growth — ‘NATIONAL HEALTH INVESTORS (dollars in millions) Strong Balance Sheet Provides Ample Liquidity for Investment Variable & Fixed Rate Debt NHI has maintained its target leverage in the 4.0x — 5.0x net debt to adjusted EBITDA ra
Slide 13: Recent Developments and Pipeline
- Recent Developments and Pipeline (dollars in millions) NATIONAL HEALTH INVES RS 4Q,2024 3Q,2024 2Q 2024 2Q 2024 10.2024 4Q 2023 3Q 2023 1Q 2023 1Q 2023 4Q 2022 4Q 2022 2Q 2022 10.2022 Tenant / Borrower Spring Arbor Management Sanders Clearsky Encore Senior Living? ‘Compass Senior Living Carriage C
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: A Pathway For Long Term Growth
Favorable Industry Dynamics: A Pathway For Long Term Growth NHY NATIONAL HEALTH INVESTORS pply Growth is Slowi Inventory growth across the care continuum at approximately 1.0% is at historic lows New starts in 3Q 2024 were the lowest since 1Q 201 more than 55% below the historical average Inventory
Slide 16: Favorable Industry Dynamics: A Pathway For Long Term Growth
Favorable Industry Dynamics: A Pathway For Long Term Growth \ HY NATIONAL. Demand Growth is Surging The 85+ population is expected to grow by 4.5% annually TH INVESTORS Absorption remains well above historic averages resulting in the highest ever number of occupied senior housing units through 2030
Slide 17: Appendix: Definitions
Appendix: Definitions NATIONAL H H 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 Ad
Slide 18: Appendix: Definitions
Appendix: Definitions NATIONAL H H 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 of
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 NATIONAL HEALTH INVESI Three Months Ended Nine Months Ended September 30, September 30, (unaudited, $ in thousands, except share and per share amounts) 2024 2023 2024 2023 Net income attributable to common stockholders $ 28,511 $ 29,327 $ 94,653 $
Slide 21: Reconciliations: Net Operating Income & Adjusted NOI
Reconciliations: Net Operating Income & Adjusted NOI NATIONAL HEALTH INVESTORS Three Months Ended September 30, (unaudited, dollars in thousands) 2024 2023 ‘Net Income 28,242 3 29,033 Interest 14,939 15,086 Gains on sales of real estate (102) (737) Other non-operating income = (202) Franchise, excis
Slide 22: Reconciliations: Adjusted EBITDA
Reconciliations: Adjusted EBITDA NATIONAL HEALTH INVESI Three Months Ended September 30, (unaudited, dollars in thousands) 2024 2023 Net income $ 28,242 $ 29,033 Interest expense 14,939 15,086 Franchise, excise, and other taxes 83 2 Depreciation 17,768 17,515 NHI's share of EBITDA adjustments for un
Slide 23: Reconciliations: Adjusted EBITDA Series
Reconciliations: Adjusted EBITDA Serio ‘ALTH INVESTORS: 4202112022 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 $ 34,952 $28,242 Interest expense 12,840 12,715 12,282 10,198 10,862 11,412 12,445 14,027 14,194 15,086 14,85
Slide 24: Reconciliations: ROIC
Reconciliations: ROIC NATIONAL HEALTH INVESTOR ollars in thousands) Total Assets, ‘Add: Accumulated Depreciation Less: Straight-line Receivable Invested Capital Normalized FAD actual Inter FAD before contractual interest TTM Invested Capital TTM Normalized FAD plus contractual interest Return on Inv
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