National Health Investors, Inc. · NYSE:NHI
National Health Investors — Q3 2020 Earnings Presentation
21 slides from National Health Investors's earnings presentation, Nov 10, 2020
Slide 1: Q3 2020 Supplemental
Q3 2020 NATIONAL HEALTH INVESTORS Q3 2020 SUPPLEMENTAL
Slide 2: Table of Contents; Forward Looking Statements and Risk Factors
1 Q3 2020 National Health Investors TABLE OF CONTENTS COMPANY FORWARD LOOKING STATEMENTS AND RISK FACTORS: This Supplemental Information and other materials we have filed or may file with the Securities and Exchange Commission, as well COMPANY INFORMATION & LEADERSHIP 02 as information included in o
Slide 3: We Invest in Relationships; Leadership
National Health Investors Q3 2020 2 WE INVEST IN RELATIONSHIPS NATIONAL HEALTH INVESTORS, INC. (NYSE: NHI), is a real estate investment trust specializing in sale- leaseback, joint-venture, mortgage and mezzanine financing of need-driven and discretionary senior housing and medical investments. NHI’
Slide 4: Portfolio Overview Highlights
3 Q3 2020 National Health Investors PORTFOLIO OVERVIEW HIGHLIGHTS Diversified portfolio of exceptional healthcare properties Conservatively managed balance sheet Industry leading FFO growth Strong growing dividend AS OF NOVEMBER 6, 2020 162 SENIOR HOUSING 75 SKILLED NURSING 3 HOSPITAL 2 MEDICAL OFFI
Slide 5: Portfolio Summary
National Health Investors Q3 2020 4 PORTFOLIO SUMMARY as of September 30, 2020 (dollars in thousands) Properties Units/ YTD GAAP YTD Straight YTD Cash Full Year Annualized Sq. Ft* Revenue Line Revenue Impact Cash Revenue Leases Senior Housing - Need Driven Assisted Living 94 5,131 $ 59,343 $ 4,888 $
Slide 6: Operating Partners
5 Q3 2020 National Health Investors OPERATING PARTNERS Ownership Market Focus % of Revenue1 Senior Living Communities owns and operates luxury retirement Private SHO 16% communities located in Connecticut, South Carolina, North Carolina, Florida, Georgia and Indiana. Bickford Senior Living manages o
Slide 7: EBITDARM Lease Coverage
National Health Investors Q3 2020 6 EBITDARM LEASE COVERAGE NHI TOTAL PORTFOLIO Property Type SHO SNF HOSP MOB TOTAL Properties 135 74 3 2 214 2Q19 1.20x 2.76x 1.83x 6.39x 1.68x 2Q20 1.13x 2.89x 2.31x 6.48x 1.69x Property Class Need Driven excl. Discretionary excl. Need Driven Bickford Discretionary
Slide 8: Purchase Options & Lease Maturities
7 Q3 2020 National Health Investors PURCHASE OPTIONS & LEASE MATURITIES Tenant Purchase Options (dollars in thousands) Asset Type Properties Lease Expiration 1st Option Open Year Option Type Current Cash Rent ($) % of Total1 MOB 1 February 2025 Open A $ 312 0.10% HOSP 1 March 2025 Open B 2,016 0.67%
Slide 9: We Invest in Relationships, Not Just Properties
National Health Investors Q3 2020 8 INVESTMENT RATIONALE WE INVEST IN RELATIONSHIPS, NOT JUST PROPERTIES • FOCUSED ON GROWING WITH OUR 37 OPERATING PARTNERS AND SELECT NEW CUSTOMERS • DIVERSIFIED INVESTMENT PLAN EMPHASIZING PRIVATE PAY SENIOR HOUSING PROPERTIES AND BEST-IN-CLASS SNF OPERATORS • EXPE
Slide 10: Recent Investments
9 Q3 2020 National Health Investors RECENT INVESTMENTS Recent Lease Activity (dollars in thousands) Asset Class Investment Type Units/ Location Yield Total Funded Remaining Buildings1 Q3 2020 41 Management SHO Lease 43/1 WI 7.50% $ 12,300 2 $ (12,300) $ — Q2 2020 Autumn Trace* SHO Lease 88/2 IN 7.25
Slide 11: Capitalization Overview
National Health Investors Q3 2020 10 CAPITALIZATION OVERVIEW (dollar and share amounts in thousands) QUARTER ENDED / AS OF Q3 2020 Q2 2020 Q1 2020 Q4 2019 Q3 2019 Balance Sheet Data Gross cost of real estate assets $ 3,264,564 $ 3,247,138 $ 3,228,132 $ 3,074,846 $ 3,060,283 Total assets 3,139,273 3,
Slide 12: Capital Structure
11 Q3 2020 National Health Investors CAPITAL STRUCTURE Fixed Charge Coverage UNSECURED, VARIABLE 35% 10 8 6.8x UNSECURED, 6 5.8x 5.6x 5.7x 6.3x FIXED 56% DEBT1 4 9% 2 SECURED, FIXED 0 2016 2017 2018 2019 2020 Revolver Liquidity (dollars in millions) Net Debt to Adjusted EBITDA $800 5.0x 4.7x 4.8x $7
Slide 13: Select Debt Covenants
National Health Investors Q3 2020 12 SELECT DEBT COVENANTS Select Credit Facility and Private Placement Covenants 1 Credit Facility Requirement Q3 2020 Q2 2020 Q1 2020 Q4 2019 Q3 2019 Leverage ratio <= 60% 44% 43% 43% 41% 41% Unencumbered leverage ratio <= 60% 48% 48% 48% 42% 42% Secured leverage ra
Slide 14: A Disciplined Approach to Value Creation
13 Q3 2020 National Health Investors FINANCIAL A DISCIPLINED • STEADY REVENUE AND CASH FLOW GROWTH APPROACH TO • STRONG RELATIVE LONG-TERM PERFORMANCE • CONSISTENT DIVIDEND GROWTH AND HEALTHY VALUE CREATION PAYOUT RATIO Cash NOI: 9.1% CAGR (dollars in millions) Adjusted EBITDA: 8.4% CAGR (dollars in
Slide 15: Performance; Dividend Per Share
National Health Investors Q3 2020 14 PERFORMANCE Normalized FFO / Share (CAGR) NHI vs Peer Avg Dividends / Share (CAGR) NHI vs Peer Avg 10% 10% 8% 8% 6.2% 5.1% 5.0% 5.1% 5.2% 5.3% 6% 6% 3.8% 3.9% 3.7% 3.8% 4% 4% 2.3% 2.2% 1.7% 2% 1.5% 2% (8.1)% (6.4)% (6.1)% (4.6)% (2.5)% (7.9)% (5.1)% (4.6)% (3.6)%
Slide 16: Balance Sheets
15 Q3 2020 National Health Investors BALANCE SHEETS (in thousands, except share and per share amounts) September 30, 2020 December 31, 2019 Assets (unaudited) Real estate properties Land $ 220,423 $ 213,617 Buildings and improvements 3,041,613 2,836,673 Construction in progress 2,528 24,556 3,264,56
Slide 17: Statements of Income
National Health Investors Q3 2020 16 STATEMENTS OF INCOME (in thousands, except share and per share amounts) Quarter Ended September 30, 2020 2019 Revenues (unaudited) (unaudited) Rental income $ 77,821 $ 75,247 Interest income and other 6,480 6,435 84,301 81,682 Expenses Depreciation 20,836 19,695
Slide 18: FFO, AFFO & FAD
17 Q3 2020 National Health Investors FFO, AFFO & FAD (in thousands, except share and per share amounts) Quarter Ended September 30, 2020 2019 Net income attributable to common stockholders $ 42,595 $ 42,758 Elimination of certain non-cash items in net income: Depreciation 20,836 19,695 Depreciation
Slide 19: Reconciliations
National Health Investors Q3 2020 18 RECONCILIATIONS (dollars in thousands) Quarter Ended September 30, Adjusted EBITDA Reconciliation 2020 2019 Net Income $ 42,661 $ 42,755 Interest expense 12,892 14,661 Franchise, excise, and other taxes 164 121 Depreciation 20,836 19,695 NHI's share of EBITDA adj
Slide 20: Glossary
19 Q3 2020 National Health Investors GLOSSARY ANNUALIZED REVENUES The term Annualized Revenue refers to the amount of revenue that our We believe that FFO and normalized FFO are important supplemental portfolio would generate if all leases and mortgages were in effect for measures of operating perfo
Slide 21: Q3 2020 National Health Investors
Q3 2020 NATIONAL HEALTH INVESTORS
National Health Investors — Q3 2020 Earnings Presentation on 6ix