National Health Investors, Inc. · NYSE:NHI

National Health Investors — Q2 2025 Earnings Presentation

24 slides from National Health Investors's earnings presentation, Aug 6, 2025

  1. Slide 1: National Health Investors Investor Update

    National Health Investors Investor Update August 6, 2025 CountryHouse in Elkhorn operated by Agemark Senior Living

  2. 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

  3. Slide 3: Overview of Second Quarter 2025

    Overview of Second Quarter 2025 3 Real Estate Investments • Lease revenue excluding straight-line, lease amortization, and escrow reimbursement revenue of $67.0 million in Q2 2025 increased 7.3% compared to Q2 2024 and increased 2.7% compared to Q1 2025. The prior year period included a $2.5 million

  4. Slide 4: Updated 2025 Guidance

    Updated 2025 Guidance 4 2025 Guidance Midpoints 1 2025 Guidance Assumptions & Considerations NHI’s 2025 annual guidance includes the following assumptions: • $105 million in unidentified new investments at an initial average yield of 8.1%; • Continued rent concessions, asset dispositions and loan re

  5. Slide 5: Investment Overview

    Investment Overview 5 • Recent SHOP conversions have excellent growth profile • Capex program supports organic growth and adds value to owned real estate • Strong operator performance drives improved coverage and continued deferral repayments • Significant upside opportunity with potential SHOP perf

  6. Slide 6: Senior Housing Operating Portfolio (SHOP) Opportunity

    Senior Housing Operating Portfolio (SHOP) Opportunity 6 (dollars in thousands except RevPOR) • SHOP Upside: NHI continues to view the current SHOP portfolio as a source of significant organic growth as the NOI margin improves toward more historic levels achieved. With occupancy nearing stabilization

  7. Slide 7: SHOP Opportunity: SHOP-15 v. NIC MAP

    Senior Housing Operating Portfolio (SHOP) Opportunity 7 SHOP-15 v. NIC MAP Average Rent: Q2 2022 – Q2 2025 SHOP-15 v. NIC MAP Occupancy: Q2 2022 – Q2 2025 Focus on occupancy growth has SHOP performance in-line with the industry: • SHOP occupancy dropped following the portfolio’s initial transition o

  8. Slide 8: Multiple Avenues for Organic Growth

    Multiple Avenues for Organic Growth 8 • SHOP Conversions • Effective August 1, 2025, NHI transitioned six properties formerly leased to Discovery to a SHOP portfolio managed by Sinceri Senior Living (“Sinceri”) • Effective August 1, 2025, NHI expanded its SHOP joint venture with Discovery by adding

  9. Slide 9: Senior Housing - Need Driven Fundamentals Stabilizing

    Senior Housing - Need Driven Fundamentals Stabilizing 9 • The Senior Housing – Need Driven leased portfolio represents approximately 33% of annualized adjusted NOI including approximately 12% from the Bickford leased portfolio and 20% from other Need Driven operators. EBITDARM coverage for this grou

  10. Slide 10: Asset Diversification Creates Stronger Portfolio

    Asset Diversification Creates Stronger Portfolio 10 The Senior Housing – Need Driven portfolio has experienced significant coverage improvement since the start of the portfolio optimization in 2021. The SNF and Discretionary (largely CCRC) portfolios which generate ~58% of adjusted NOI have proved r

  11. Slide 11: 2025 Investments and Pipeline

    2025 Investments: Closed $174.9 million at an average initial yield of 8.2% Recent Developments and Pipeline Significant Pipeline Creates Pathway for External Growth Opportunities 11 (dollars in millions) 1 Represents contractual rent or interest / purchase price. 2 Property acquired in a deed in li

  12. Slide 12: Financial Strength Positions NHI for Potential Accretive External Growth

    Financial Strength Positions NHI for Potential Accretive External Growth Strong Balance Sheet Provides Ample Liquidity for Investment • NHI’s current leverage at 3.9x is below its target leverage of 4.0x – 5.0x net debt to adjusted EBITDA as recent acquisitions have been funded largely equity • Tota

  13. Slide 13: Optimization Creating More Invested Capital Efficiency

    Optimization Creating More Invested Capital Efficiency 13 Optimization Improved ROIC • Pandemic impacts start in late 2020 with first rent concessions granted • Dispositions of underperforming properties begins in 2Q21 and included 48 senior housing properties and seven SNFs • Bickford rent reset an

  14. Slide 14: Favorable Industry Dynamics: Supply Growth is Slowing

    5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 45,000 1Q 20 08 3Q 20 08 1Q 20 09 3Q 20 09 1Q 20 10 3Q 20 10 1Q 20 11 3Q 20 11 1Q 20 12 3Q 20 12 1Q 20 13 3Q 20 13 1Q 20 14 3Q 20 14 1Q 20 15 3Q 20 15 1Q 20 16 3Q 20 16 1Q 20 17 3Q 20 17 1Q 20 18 3Q 20 18 1Q 20 19 3Q 20 19 1Q 20 20 3Q 20 20 1Q 2

  15. Slide 15: Favorable Industry Dynamics: Demand Growth is Surging

    5.7 6.3 7.6 10.8 2010 2020 2030E 2040E U.S. 85+ Population (in millions) Favorable Industry Dynamics: A Pathway For Long Term Growth 15 Source: University of Virginia’s Weldon Cooper Center for Public Service; National Investment Center for Senior Housing & Care (“NIC”); NIC data is from NICMAP Prim

  16. Slide 16: Appendix: Definitions

    Appendix: Definitions 16 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 con

  17. Slide 17: Appendix: Definitions

    Appendix: Definitions 17 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

  18. Slide 18: Reconciliations: FFO, Normalized FFO, Normalized FAD

    Reconciliations: FFO, Normalized FFO, Normalized FAD 18 (unaudited, $ in thousands, except share and per share amounts) Q2 2025 Q2 2024 Q1 2025 Net income attributable to common stockholders $ 36,938 $ 35,227 $ 34,113 Elimination of certain non-cash items in net income: Real estate depreciation 19,4

  19. Slide 19: Reconciliations: Net Operating Income & Adjusted NOI

    Reconciliations: Net Operating Income & Adjusted NOI 19 Three Months Ended June 30, (unaudited, dollars in thousands) 2025 2024 Net Income $ 36,689 $ 34,952 Interest 15,001 14,854 Gains on sales of real estate (110) (1,517) (Gain) loss from equity method investment (1,524) (236) Franchise, excise an

  20. Slide 20: Reconciliations: SHOP NOI

    Reconciliations: SHOP NOI 20 ($ in thousands) 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 2024 Q1 2025 Q2 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 $ 14,217 Labor (16,165) (4,227) (4,2

  21. Slide 21: Reconciliations: Adjusted EBITDA

    Reconciliations: Adjusted EBITDA 21 Three Months Ended June 30, (unaudited, dollars in thousands) 2025 2024 Net income $ 36,689 $ 34,952 Interest expense 15,001 14,854 Franchise, excise, and other taxes 243 47 Depreciation 19,918 17,490 Gains on sales of real estate, net (110) (1,517) Notes receivab

  22. Slide 22: Reconciliations: Adjusted EBITDA

    Reconciliations: Adjusted EBITDA 22 (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 Q2 2025 Net income $ 39,230 $ 30,849 $ 6,505 $ 8,246 $ 21,466 $ 34,230 $ 1,558 $ 34,183 $ 39,448 $ 29,033 $ 31,71

  23. Slide 23: Reconciliations: ROIC

    Reconciliations: ROIC 23 (dollars in thousands) 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 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 $ 2,508,785 Add: Accumulated Depreciation 555,762 576,605 597,638 618,299 622,943

  24. Slide 24: Appendix: Senior Housing & SNF Dispositions

    Appendix: Senior Housing & SNF Dispositions 24 1 Excludes $13.0 million second mortgage provided by NHI 2 Excludes $1.6 million of seller financing provided by NHI (dollars in thousands) Net Operator Units Properties Proceeds Q2 2021 Bickford Senior Living 1 247 6 $39,924 Q3 2021 Holiday Retirement

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