National Health Investors, Inc. · NYSE:NHI
National Health Investors — Q1 2020 Earnings Presentation
20 slides from National Health Investors's earnings presentation, May 12, 2020
Slide 1: Q1 2020 Supplemental: Heroes at Work
Q1 2020 SUPPLEMENTAL HEROES AT WORK NATIONAL HEALTH INVESTORS
Slide 2: Table of Contents
1 Q1 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
National Health Investors Q1 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 Q1 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 MAY 11, 2020 161 SENIOR HOUSING 76 SKILLED NURSING 3 HOSPITAL 2 MEDICAL OFFICE 2
Slide 5: Portfolio Summary
National Health Investors Q1 2020 4 PORTFOLIO SUMMARY as of March 31, 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 91 5,000 $ 20,683 $ 1,844 $ 18,
Slide 6: Operating Partners
5 Q1 2020 National Health Investors OPERATING PARTNERS Ownership Market Focus % of Revenue1 Bickford Senior Living manages or operates over 60 independent Private SHO 17% living, assisted living, and memory care branches throughout the country. They are also an experienced developer, constructing ov
Slide 7: EBITDARM Lease Coverage
National Health Investors Q1 2020 6 EBITDARM LEASE COVERAGE NHI TOTAL PORTFOLIO Property Type SHO SNF HOSP MOB TOTAL Properties 130 74 3 2 209 Q4'18 1.19x 2.63x 1.69x 4.76x 1.65x Q4'19 1.15x 2.76x 2.01x 5.95x 1.68x Property Class Need Driven excl. Discretionary excl. Need Driven Bickford Discretiona
Slide 8: Purchase Options & Lease Maturities
7 Q1 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 $ 308 0.10% HOSP 1 March 2025 Open B 1,957 0.64%
Slide 9: We Invest in Relationships, Not Just Properties
National Health Investors Q1 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 Q1 2020 National Health Investors RECENT INVESTMENTS Recent Lease Activity (dollars in thousands) Asset Class Investment Type Units/ Location Yield Total Funded Remaining Buildings1 Q2 2020 Autumn Trace* SHO Lease 88/2 IN 7.25% $ 14,250 $ (14,250) $ — Q1 2020 2 Life Care Services EFC JV 401/1 WA 6
Slide 11: Capitalization Overview
National Health Investors Q1 2020 10 CAPITALIZATION OVERVIEW (dollar and share amounts in thousands) QUARTER ENDED / AS OF Q1 2020 Q4 2019 Q3 2019 Q2 2019 Q1 2019 Balance Sheet Data Gross cost of real estate assets $ 3,228,132 $ 3,074,846 $ 3,060,283 $ 3,058,720 $ 2,903,317 Total assets 3,167,835 3,
Slide 12: Capital Structure
11 Q1 2020 National Health Investors CAPITAL STRUCTURE Fixed Charge Coverage UNSECURED, VARIABLE 22% 10x 8x 6.8x UNSECURED, 6x 5.8x 5.6x 5.7x 5.8x FIXED 69% DEBT1 9% SECURED, FIXED 4x 2x 0x 2016 2017 2018 2019 2020 Revolver Liquidity (dollars in millions) Net Debt to Adjusted EBITDA $800 5.0x 4.7x 4
Slide 13: A Disciplined Approach to Value Creation
National Health Investors Q1 2020 12 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 NOI1 - 9.1% CAGR (dollars in millions) Adjusted EBITDA - 8.4% CAGR (dollars
Slide 14: Performance: Dividend Per Share
13 Q1 2020 National Health Investors PERFORMANCE Normalized FFO / Share (CAGR) NHI vs Peer Avg Dividends Regular Special 10% 7.5% $5.00 8% $4.00 5.5% 5.0% 6% $3.00 4.1% 4.2% 3.8% 4% $2.00 1.9% 2.2% 2% $1.00 (4.3)% (5.2)% (3.8)% (2.2)% (0.2)% 0% $0.00 2-Year 3-Year 4-Year 5-Year 6-Year 2010 2011 2012
Slide 15: Balance Sheets
National Health Investors Q1 2020 14 BALANCE SHEETS (in thousands, except share and per share amounts) March 31, 2020 December 31, 2019 Assets (unaudited) Real estate properties Land $ 219,575 $ 213,617 Buildings and improvements 2,990,554 2,836,673 Construction in progress 18,003 24,556 3,228,132 3
Slide 16: Statements of Income
15 Q1 2020 National Health Investors STATEMENTS OF INCOME (in thousands, except share and per share amounts) Quarter Ended March 31, 2020 2019 Revenues (unaudited) (unaudited) Rental income $ 76,527 $ 70,953 Interest income and other 6,549 5,154 83,076 76,107 Expenses Depreciation 20,443 18,491 Inte
Slide 17: FFO, AFFO & FAD
National Health Investors Q1 2020 16 FFO, AFFO & FAD (in thousands, except share and per share amounts) Quarter Ended March 31, 2020 2019 Net income attributable to common stockholders $ 61,023 $ 35,679 Elimination of certain non-cash items in net income: Depreciation 20,443 18,491 Depreciation rela
Slide 18: Reconciliations
17 Q1 2020 National Health Investors RECONCILIATIONS (dollars in thousands) THREE MONTHS ENDED Adjusted EBITDA Reconciliation MARCH 31, 2020 MARCH 31, 2019 Net Income $ 61,062 $ 35,679 Interest expense 14,140 13,518 Franchise, excise, and other taxes 243 545 Depreciation 20,443 18,491 Gain on sale o
Slide 19: Glossary
National Health Investors Q1 2020 18 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 20: Q1 2020 Supplemental National Health Investors
Q1 2020 SUPPLEMENTAL NATIONAL HEALTH INVESTORS
National Health Investors — Q1 2020 Earnings Presentation on 6ix