National Health Investors, Inc. · NYSE:NHI
National Health Investors — Q1 2025 Earnings Presentation
25 slides from National Health Investors's earnings presentation, May 5, 2025
Slide 1: Investor Update
National Health Investors Investor Update May 5, 2025 Montage Creek Senior Living
Slide 2: Disclaimers
Disclaimers |ALTH INVESTORS, 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 ‘ions, estimates, beliefs and assumptions. Words such as “may,” “will,” “anticipates,” “expec
Slide 3: Overview of First Quarter 2025
Overview of First Quarter 2025 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 $65.3 million increased 8.0% Net Income per diluted share $0.71
Slide 4: Updated 2025 Guidance
Updated 2025 Guidance ° NATIONAL HEALTH INVESTORS 2025 Guidance Midp 2025 Guidance Assumptions & Considerat NHI’s 2025 annual guidance includes the following assumptions: + $155 million in unidentified new i at an initial yield of 8.2%; - Continued rent it asset di: i d loan Adjustments to NAREIT Fu
Slide 5: Investment Overview
t Investment Overview | vf 4 NATIONAL HEALTH INVESTORS Active Management Creates . : Significant Potential Organic Financial Strength Positions Strong Industry Dynamics Multiple Avenues for Organic , araredn Growth in SHOP Platform NHI for External Growth Support Long Term Growth + * Targeting SHOP
Slide 6: Multiple Avenues for Organic Growth
Multiple Avenues for Organic Growth (dollars in thousands) ° NATIONAL HEALTH INVESTORS Rent Resets, Internal Investment, and SHOP Conversions Create Incremental Organic Growth Opportunities SHOP Conversions * NHI is targeting select opportunities to transition triple net senior housing assets to SHO
Slide 7: Active Asset Management Creates Stronger Portfolio
- Active Asset Management Creates Stronger Portfolio NATION EBITDARM Coverage Improvement + Anchored by National Healthcare Corporation (NHC) (fixed corporate charge Properties coverage) and The Ensign Group (ENSG), NHI’s SNF coverage continues to be EBITDARM Coverage very healthy at 3.06x for the T
Slide 8: Asset Diversification Creates Stronger Portfolio
- Asset Diversification Creates Stronger Portfolio Senior Housing- Need Driven —@—=Bickford =@=Need Driven ex. Bickford 1.80x 1.60x 1.40x has experienced 1.20x significant coverage 1.00x improvement since 0.80x the start of the 0.60x portfolio optimization g ¢ ¢€ ¢ §$ §$ $$ $< $< € $< F¥< F< Fg F Fg
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 32% of annualized adjusted NOI including approximately 12% from the Bickford leased portfo
Slide 10: Senior Housing Operating Portfolio (SHOP) Opportunity
Senior Housing Operating Portfolio (SHOP) Opportunity (dollars in thousands except RevPOR) NATIONAL H Significant Organic NOI Upside in SHOP as 2025 Outlook Unchanged SHOP Upside: SHOP NOI increased by 4.9% in Q1 2025 driven mainly by a 390-bps increase in occupancy to 89.2% which resulted in a 5.2%
Slide 11: Senior Housing Operating Portfolio (SHOP) Opportunity
C) Senior Housing Operating Portfolio (SHOP) Opportunity NATIONAL HEALTH INVESTORS ‘ 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 \d disru
Slide 12: Recent Developments and Pipeline
Recent Developments and Pipeline (dollars in millions) NATIONAL HEALTH INVESTORS Date Tenant / Borrower Investrr ype 2Q2025 Encore Senior Living Construction loan 2Q2025 — Agemark Senior Living Lease 1Q2025 Senior Living Hospitality Loan 102025 Mainstay” Lease 1Q 2025 Vizion Loan 1Q2025 Juniper Comm
Slide 13: Financial Strength Positions NHI for Potential Accretive External Growth
Financial Strength Positions NHI for Potential Accretive External Growth (dollars in millions) Strong Balance Sheet Provides Ample Liquidity for Investment Liquidity as of March 31, 2025 + NHIhas maintained its target leverage in the 4.0x — 5.0x net debt to adjusted EBITDA range Cash and Restricted
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 = 8.3% 8.3% 8.3% 8.3% 8.2% 8.0% 79% 7.7% 776 7.6% 75% 75% 73% ill 7.2% 1020 2Q20 3020 4020 1021 2Q21 3021 4Q21 1Q22 2
Slide 15: Favorable Industry Dynamics: Supply Growth is Slowing
C) Favorable Industry Dynamics: A Pathway For Long Term Growth NATIONAL HEALTH INVESTORS pply Growth is Slowi Inventory growth across the care continuum at 1.2% is near New starts in 1Q 2025 were the lowest ever recorded and historic lows 64% below the historical average Inventory Growth Senior Hous
Slide 16: Favorable Industry Dynamics: Demand Growth is Surging
NATIONAL HE. ‘VEST C) Favorable Industry Dynamics: A Pathway For Long Term Growth Demand Growth is Surging The 85+ population growth is expected to accelerate to 1.9% Absorption remains well above historic averages resulting in by 2030 and 3.5% in the following decade the highest ever number of occu
Slide 17: Appendix: Definitions
Appendix: Definitions NATIONAL HEALTH 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
Slide 18: Appendix: Definitions
Appendix: Definitions NATIONAL HEALTH 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
Slide 19: Appendix: Senior Housing & SNF Dispositions
Appendix: Senior Housing & SNF Dispositions (dollars in thousands) ° NATIONAL HEALTH INVESTORS + Excludes $13.0 million second mortgage provided by NHI ? Excludes $1.6 milion of seller financing provided by NHI Q2 2021 93 2021 04 2024 03 2022 ickford Senior Living * Holiday Retirement Senior Living
Slide 20: Reconciliations: FFO, Normalized FFO, Normalized FAD
° NATIONAL HEALTH INVESTORS Reconciliations: FFO, Normalized FFO, Normalized FAD Three Months Ended| Three Months Ended March December 31, (unaudited, $ in thousands, except share and per share amounts) (unaudited, $ in thousands, except share and per share amounts) Net income attributable to common
Slide 21: Reconciliations: Net Operating Income & Adjusted NOI
Reconciliations: Net Operating Income & Adjusted NOI ° NATIONAL HEALTH INVESTORS Net Income Interest Gains on sales of real estate (Gain) loss from equity method investment Franchise, excise and other taxes Legal Loan and realty gains (losses) General and administrative Depreciation Proxy and relate
Slide 22: Reconciliations: SHOP NOI
Reconciliations: SHOP NOI NATIONAL HEALTH INVESTORS - 14. 2024 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 Labor (16,165) (4,227) (17,166) (4,299) Dietary (3,763) (1,004) (4,287) (1,045) Utilities (3,537) (933) (3,887) (1,097) Taxes
Slide 23: Reconciliations: Adjusted EBITDA
Reconciliations: Adjusted EBITDA ° NATIONAL HEALTH INVESTORS Net income Interest expense Franchise, excise, and other taxes Depreciation NHI's share of EBITDA adjustments for unconsolidated entities Gains on sales of real estate, net Write-off of transaction costs Note receivable credit loss Adjuste
Slide 24: Reconciliations: Adjusted EBITDA
Reconciliations: Adjusted EBITDA StioNurMALAINTESTORS Net income $ 39230 $ 30849 $ 6505 $ 8.286 $ 21,466 $ 34,230 $ 1558 $ 34,183 $ 39,448 $ 29033 -$ ©3718 $ ©3657 $ 34952 -$ 28,282 $4,788 $33,817 Interest expense 12,840 2s 12,282 10,198 10,862 412 12,445 14027 14194 15,086 14882 14,869 14854 14,939
Slide 25: Reconciliations: ROIC
Reconciliations: ROIC NATIONAL HEALTH INV $3,166,971 $3,139,273 $3,120,346 $3,183,273 $3,077,445 $2,912,177 $2,838,876 $2,802,503 $2,587,291 555,762 $76,605 597,638 618,299 622,043 $93,215 576,668 © 582,175 $93,036 (89,090) (92,418) (95,703) 98,354) (97,723) (99,895) (96,198) (94,739) 79,697) Invest
National Health Investors — Q1 2025 Earnings Presentation on 6ix