National Health Investors : Investor Presentation - June 2025

Published: 2025-06-02 06:19:05 ET NHI

Published on 06/02/2025 at 06:19

Montage Creek Senior Living

Summary of Quarterly Financial Results 1

Key Operating and Balance Sheet Highlights

Summary of Quarterly Financial Results 1

Key Operating and Balance Sheet Highlights

(in thousands except per share and percentages)

Q1 2024

Q4 2024

Q1 2025

Net Income per diluted share

$0.71

$0.95

$0.74

NAREIT FFO per diluted share

$1.10

$1.24

$1.14

Normalized FFO per share

$1.12

$1.12

$1.15

Funds Available for Distribution (FAD)

$50,975

$52,073

$56,001

Diluted shares outstanding

43,425

45,435

45,879

FAD Payout Ratio

76.7%

79.0%

75.0%

SHOP NOI

$2,942

$3,250

$3,086

SHOP NOI Margin

22.2%

23.2%

22.1%

Real Estate Investments

Lease revenue excluding straight-line, lease amortization, and escrow reimbursement revenue of $65.3 million increased 8.0% compared to Q1 2024 and increased 4.1% compared to Q4 2024;

Deferral repayments of $2.0 million in Q1 2025 compared to $2.3 million in Q1 2024 and $2.3 million in Q4 2024. The Q1 2025 deferral repayments included approximately $1.4 million in unscheduled repayments with approximately $1.3 million of that amount repaid by Bickford;

Quarterly percentage rent for the NHC lease for 2025 is $1.6 million compared to $1.4 million in 2024. Q1 2025 included an additional $1.0 million of percentage rent related to the prior year final certification; and

Interest income and other revenue of $6.5 million compares to $6.1 million in the prior year period and $6.0 million in Q4 2024.

Senior Housing Operating Portfolio (SHOP) 1

Q1 2025 NOI of $3.1 million increased 4.9% compared to the prior year period;

Q1 2025 SHOP NOI margin of 22.1% declined 10 bps compared to the prior year period and 90 bps sequentially;

Average Q1 2025 occupancy of 89.2% increased 390 bps year-over-year and declined 20 bps sequentially;

Revenue per Occupied Room ("RevPOR") of $3,008 in Q1 2025 was up 0.7% year-over-year and flat sequentially; and

NHI continues to estimate 12% - 15% NOI growth for 2025.

Balance Sheet 1

Net Debt to Adjusted EBITDA at an annualized 4.1x is at the low end of NHI's target range of 4.0x - 5.0x;

The Company has approximately 0.9 million shares available to settle under ATM forward sales agreements for proceeds of approximately $68.9 million at March 31, 2025;

Total liquidity of approximately $865.7 million at March 31, 2025; and

In April 2025, NHI paid off approximately $60.1 million in secured debt and extended its $200 million term loan by six months to December 2025

Portfolio Activity

Announced 2025 YTD investments totaling $174.9 million at an average initial yield of approximately 8.2%;

NHI is currently evaluating a pipeline of investment opportunities valued at approximately $331.4 million (excluding large portfolio investments) that includes $126.7 million in signed LOIs of which approximately $71 million represents a SHOP investment; and

Effective May 1, 2025, NHI amended the Discovery triple net master lease on six properties which includes Discovery's agreement to cooperate in the transition of these properties to a new SHOP venture.

1 Refer to Appendix for definitions and relevant non-GAAP reconciliations 3

2025 Guidance Midpoints 1

2025 Guidance Assumptions & Considerations

As of May-25

Midpoint

As of Feb-25

Midpoint

(in millions except per share amounts)

2025 Guidance Midpoints 1

2025 Guidance Assumptions & Considerations

Net income attributable to common stockholders

Adjustments to NAREIT Funds From Operations (FFO) Depreciation (net) 2

Gains on sales (net) and impairments of real estate

NAREIT FFO

Adjustments to Normalized Funds From Operations (NFFO) 2

NFFO

Adjustments to Funds Available for Distribution (FAD)

Straight-line revenue and lease incentive amortizations (net) 3

Equity method investment adjustments

Equity method investment non-refundable fees received Non-cash stock-based compensation

SHOP 2 and equity method investment recurring capital expenditures Transaction costs

Other 4

FAD

Weighted average diluted common shares 5 NAREIT FFO per diluted common share NFFO per diluted common share

$ 143.3

73.1

-

$ 216.4

-

$ 216.4

(1.8)

(1.8)

1.6

5.5

(2.1)

-

3.9

$ 221.7

46.8

$ 4.63

$ 4.63

$ 144.9

NHI's 2025 annual guidance includes the following assumptions:

$155 million in unidentified new investments at an initial average yield of 8.2%;

Continued rent concessions, asset dispositions and loan repayments;

Continued fulfillment of existing commitments;

SHOP NOI annual growth in a range of 12% - 15%;

Continued collection of deferred rents; and

Investments and other income from announced subsequent events.

In addition to the assumptions listed above, NHI's guidance range is based on several other assumptions, many of which are outside the Company's control and all of which are subject to change. The guidance range may change if actual results vary from these assumptions.

75.7

(1.1)

$ 219.5

1.8

$ 221.3

(3.0)

(2.7)

1.8

5.5

(2.0)

1.2

2.9

$ 225.1

47.0

$ 4.67

$ 4.71

Refer to Appendix for definitions and relevant non-GAAP reconciliations

Includes estimated proxy contest expenses of $1.8 million

Net of amounts attributable to non-controlling interests

Includes credit loss reserve, non-real estate deprecation (net) and amortizations associated with debt facilities

Includes settlement of all forward equity 4

Active Management Creates Significant Potential Organic Multiple Avenues for Organic Growth in SHOP Platform

Growth

Financial Strength Positions NHI for External Growth

Strong Industry Dynamics Support Long Term Growth 1

Targeting SHOP conversions of existing triple net lease assets

Capex program supports organic growth and adds value to owned real estate

Operator performance improvement driving stronger EBITDARM coverage and continued deferral repayments

Significant upside opportunity with potential SHOP performance improvement

Margin expansion potential driven by stabilized occupancy and rate growth

Expect 2025 SHOP NOI growth in a range of 12% - 15%

Leverage well within 4.0x - 5.0x net debt to adjusted EBITDA rang

Significant investment capacity on revolver and ATM

Closed $412.4 million in 2024 & 2025 YTD investments and a

$331.4 million pipeline including

$126.7 million in signed LOIs

Supply of senior housing inventory is growing at less than 1.5% and slowing as new starts are more than 50% below historical average

Demand is surging as 85+ population growth expected to accelerate over the next 15 years

1 University of Virginia's Weldon Cooper Center for Public Service; National Investment Center for Senior Housing & Care ("NIC"); NIC data is from NICMAP Primary & Secondary markets through 1Q 2025. 5

Disclaimer

National Health Investors Inc. published this content on June 02, 2025, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on June 02, 2025 at 10:18 UTC.