National Health Investors, Inc. · NYSE:NHI
National Health Investors — Q4 2024 Earnings Presentation
24 slides from National Health Investors's earnings presentation, Feb 25, 2025
Slide 1: Investor Update
National Health Investors Wie, Sater ,. < = iM ae ga: peer g: "See . ae. Investor Update February 25, 2025 Montage Creek Senior Living ‘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 Fourth Quarter 2024
Overview of Fourth Quarter 2024 FATIONAL HALIM IVISTORS Summary of Quarterly Financial Results Key Operating and Balance Sheet Highlights Real Estate Investments (Reicenicre ee eee TOE STE) 03 2024 (Q4 2024 + Lease revenue excluding straight-line, lease amortization, and escrow reimbursement revenue
Slide 4: Initial 2025 Guidance
I n itia | 2025 G u ida nce NATIONAL HEALTH INVESTORS 5 Guidance Range + 2025 Guidance Assumptions & Considerations -pt per share amounts) NHI's 2025 annual guidance includes the following assumptions: Net income attributable to common stockholders $ 141.6 $ 143.3 $ 145.0 * $225 million in unidentif
Slide 5: Investment Overview
Investment Overview Active Management Creates Significant Potential Organic Multiple Avenues for Organic ignit ial Organi Financial Strength Positions Strong Industry Dynamics Growth * Targeting SHOP conversions of existing triple net lease assets * Capex program supports organic growth and adds val
Slide 6: Multiple Avenues for Organic Growth
Multiple Avenues for Organic Growth (dollars in thousands) NHY NATIONAL HEALTH INVESTORS Rent Resets, Internal Investment, and SHOP Conversions Create Incremental Organic Growth Opportunities * SHOP Conversions NHI is targeting select opportunities to transition triple net seniors housing assets to
Slide 7: 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’s Senior Housing and Skilled Nursing asset classes sestornouite 93 2028 942028 22024 92 2024 98 2024 experienced sequential im
Slide 8: Asset Diversification Creates Stronger Portfolio
(> Asset Diversification Creates Stronger Portfolio NATIONAL HEAL! 1.80 1.60x 1.40x. 1.20x 1.00x 0.80x. 0.60x. 8 8 8 g g g S & m == Senior Housing - Need Driven 4Q.2021 10.2022 Bickford —@=-Need Driven ex. Bickford —_— g a g g g g g 5 8S 8g s s s s 8 3 8 s s s 8g 8 8 8 Rg a Rg 8 8 8 g g g g g g g g
Slide 9: Senior Housing - Need Driven Fundamentals Improving
(> 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 33% of annualized adjusted NOI including approximately 13% from the Bickford leased portf
Slide 10: Senior Housing Operating Portfolio (SHOP) Opportunity
Senior Housing Operating Portfolio (SHOP) Opportunity (dollars in thousands except RevPOR) NATIONAL H TH INVESTORS nificant Organic NOI Upside in SHOP as Fundamentals Continue to Improve SHOP Upside: SHOP NOI increased by 32% in 2024 driven mainly by a 940 basis point increase in occupancy to 87.6%.
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. The pandemic, lack of investment,
Slide 12: Recent Developments and Pipeline
Recent Developments and Pipeline NEY ‘ NATIONAL HEALTH INVESTORS (dollars in millions) Yield* Investment [| Significant Pipeline Creates Pathway for External Growth Opportunities Date Tenant / Borrower Investment Type SO.2025 GEMERAtIOE lee ce! 2024 Investments: Closed $237.5 million at an average i
Slide 13: Financial Strength Positions NHI for Potential Accretive External Growth
Financial Strength Positions NHI for Potential Accretive External Growth (dollars in millions) NATIONAL HEALTH INVESTORS Strong Balance Sheet Provides Ample Liquidity for Investment Liquidity as of December 31, 2024 + NHI has maintained its target leverage in the 4.0x — 5.0x net debt to adjusted EBI
Slide 14: Optimization Creating More Invested Capital Efficiency
- Optimization Creating More Invested Capital Efficiency NATIONAL HEALTH INVESTORS Optimization Improving ROIC Refer to Appendix for definitions and relevant non-GAAP reconciliations. Pandemic impacts start in late 2020 with first rent concessions granted Dispositions of underperforming properties b
Slide 15: Favorable Industry Dynamics: A Pathway For Long Term Growth
Favorable Industry Dynamics: A Pathway For Long Term Growth N HY NATIONAL HEALTH INVESTORS pply Growth is Slowi Inventory growth across the care continuum at 1.2% is near New starts in 4Q 2024 were the lowest since 4Q 2009 and historic lows more than 60% below the historical average Inventory Growth
Slide 16: Favorable Industry Dynamics: A Pathway For Long Term Growth
Favorable Industry Dynamics: A Pathway For Long Term Growth \ HY NATION. AL TH INVESTORS, Demand 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 n
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 HEA TH INVESTORS + Excludes $13.0 ? Excludes $1.6 million of seller financing provided by NHI 02 2021 93 2021 93 2021 42021 a4 2021 Q4 2021 a1 2022 Q2 2022 Q2 2022 a2 2022 a2 2022 a2 2022 93 2022 93 2022 a1 2023 Q1 2023 02 2
Slide 20: Reconciliations: FFO, Normalized FFO, Normalized FAD
Reconciliations: FFO, Normalized FFO, Normalized FAD hore Three Months Ended Twelve Months Ended December 31, December 31, (unaudited, $ in thousands, except share and per share amounts} 2024 3 2024 2023 “ome attributable to common stockholders $ 43,213 $ 32,026 $ 137,867 $ 135,597 Net Elimination o
Slide 21: Reconciliations: Net Operating Income & Adjusted NOI
Reconciliations: Net Operating Income & Adjusted NOI nena Three Months Ended December 31, (unaudited, dollars in thousands) Net Income $ 42,788 $ 31,718 Interest 15,241 14,852 Gains on sales of real estate (4,960) (1,221) Gain on forward equity sale agreement, net (6,261) = (Gain) loss from equity m
Slide 22: Reconciliations: Adjusted EBITDA
Reco n ci | iati ons: Adj usted E B ITDA NATIONAL HEALTH INVESTORS Three Months Ended December 31, (unaudited, dollars in thousands) Net income $ 42,788 5 31,718 Interest expense 15,241 14,852 Franchise, excise, and other taxes 94 7 Depreciation 18,680 17,112 NHI's share of EBITDA adjustments for un
Slide 23: Reconciliations: Adjusted EBITDA
Reconciliations: Adjusted EBITDA NATIONAL HEALTH INVESTORS Net income $ 39,230 $ 30,849 $ = 6,505 $ = 8,246 $ = 21,466 $ 34,230 $ = 1,558 $ 34,183 $ 29,033 $ 31,718 $ —-30,657$ 34,952 $ = 28,242 $ 42,788 Interest expense 12,840 12,715 12,282 10,198 10,862 11,412 12,445 14,027 15,086 14,852 14,869 14
Slide 24: Reconciliations: ROIC
Reconciliations: ROIC NATIONAL HEALTH INVESTOR ars 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 Invest
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