Core Thesis - National Health Investors, Inc. (NHI) is positioned to benefit from the demographic trend of an aging population, specifically the "silver tsunami" as demand for senior housing increases [2] Company Overview - NHI is a U.S. healthcare REIT focused on owning and financing senior housing and healthcare real estate, with a share price of $88.25 and a trailing P/E of 27.11 as of February 11th [1][2] - The company has a portfolio valued at approximately $2.5 billion across 174 properties in 32 states, along with $225 million in mortgage and notes receivable [4] Financial Performance - Historically, NHI generated cash flow primarily from long-term triple-net leases, which provided stable income but limited growth potential [3] - Recently, NHI has shifted towards a Senior Housing Operating Portfolio (SHOP) to capture operational upside from improving occupancy and rate growth [3] - The company has shown consistent financial performance, with funds from operations trending higher as the SHOP portfolio expands [4] Governance and Strategic Initiatives - NHI has improved board independence and governance following a proxy battle, which includes unwinding interlocks with National HealthCare Corporation (NHC) [5] - An independent committee will oversee upcoming lease renegotiations, aligning management incentives with strategic outcomes [5] Market Conditions - The senior living market is experiencing a positive inflection due to slowed construction, tightened supply, and increased demand from the 80+ population [2] - Improving industry fundamentals and rising cash flows support a positive outlook for NHI shares, even without a potential sale [5]

Core Thesis - National Health Investors, Inc. (NHI) is positioned to benefit from the demographic trend of an aging population, particularly the 80+ cohort, as the senior living market improves post-pandemic [2][5] Company Overview - NHI is a U.S. healthcare REIT focused on senior housing and healthcare real estate, with a portfolio valued at approximately $2.5 billion across 174 properties in 32 states [2][4] - The company has a manageable balance sheet, with $1.1 billion in debt maturities primarily due between 2031 and 2033, and significant liquidity from an undrawn credit facility [4] Financial Performance - Historically, NHI generated cash flow mainly from long-term triple-net leases, but has recently shifted towards a Senior Housing Operating Portfolio (SHOP) to capture operational upside from improving occupancy and rate growth [3][4] - Funds from operations have been trending higher as the SHOP portfolio expands and lease economics with National HealthCare Corporation (NHC) approach a reset in 2026-2027 [4] Governance and Strategic Initiatives - Following a proxy battle, NHI has improved board independence and is managing lease renegotiations through an independent committee, which aligns management with strategic outcomes [5] - Governance reforms and improving industry fundamentals support a positive outlook for NHI shares, even in the absence of a transaction [5]

Core Insights - The company reported a solid fourth quarter with normalized FFO per share growth of 8.9% year-over-year and a full-year growth of 10.6% [1][22] - The SHOP platform was a significant contributor, with total NOI increasing by 125% year-over-year and 48% sequentially [1][17] - The company has a strong investment pipeline, with over $488 million in potential investments and $111 million under signed letters of intent [6][15] Financial Performance - For the fourth quarter, net income per share was $0.80, a decrease of 15.8% from the prior year, while NAREIT FFO per share was $1.22, a decrease of 1.6% [21][22] - The full-year FAD increased by 13.7% to $232.1 million, with fourth-quarter FAD increasing by 11.1% [23] - Cash rental income from the triple-net portfolio increased by approximately 7% year-over-year, driven by acquisitions [1][19] Investment Activity - The company announced investments of $392 million in 2025, significantly exceeding initial guidance of $225 million, marking the most active year since 2016 [5][14] - The company has already closed on a $105.5 million SHOP acquisition in 2026, its largest to date [5][14] - The investment strategy focuses on need-driven senior living communities in secondary suburban markets, targeting a 70% allocation to SHOP investments in 2026 [8][10] Market Dynamics - The senior housing industry is experiencing favorable tailwinds, with only 25,000 units under construction, representing just 2.2% of total inventory, the lowest level since 2012 [6][10] - Demand is expected to accelerate as the first baby boomers turn 80 this year, positioning the company well for long-term growth [6][7] Operational Strategy - The company is expanding its SHOP capabilities, increasing its investment in SHOP by 106% over the last twelve months to approximately $740 million [7][25] - The same-store NOI for the 15 legacy Holiday properties declined by less than 1% year-over-year but increased 8.7% sequentially from the third quarter [18][24] - The company is focusing on improving margins and operational efficiencies in its SHOP portfolio, with expectations for double-digit growth in the coming years [60][62] Guidance and Outlook - The company provided guidance for 2026, expecting normalized FFO per share growth of 1.2% and total FAD growth of 7.8% [11][29] - The guidance includes $230 million in additional future investments, with an average NOI yield of 7.8% [30] - The company is lowering its leverage policy to a range of 3.5 to 4.5 times net debt to adjusted EBITDA, reflecting a focus on maintaining an investment-grade rating [28][29]

Financial Data and Key Metrics Changes - The company reported a Normalized FFO per share growth of 8.9% year-over-year for Q4 2025, with a full-year growth of 10.6% [4][22] - Total FAD increased by 13.7% year-over-year, reaching $232.1 million for the full year [23] - Net income per share for Q4 2025 was $0.80, a decrease of 15.8% from the prior year, primarily due to non-recurring gains in the previous year [21] Business Line Data and Key Metrics Changes - The SHOP platform's total NOI increased by 125% year-over-year, with a same-store growth of 7.6% [4][5] - Cash rental income from the triple net portfolio increased by approximately 7% year-over-year, driven by acquisitions [4][18] - The company announced investments of $392 million in 2025, significantly exceeding the initial guidance of $225 million [6] Market Data and Key Metrics Changes - The senior housing market is experiencing favorable tailwinds, with fewer than 25,000 units under construction, representing only 2.2% of total inventory, the lowest level since 2012 [7] - Demand is expected to accelerate as the first baby boomers turn 80, positioning the company to capitalize on long-term growth [8] Company Strategy and Development Direction - The company plans to allocate 70% of its investment activity in 2026 to the SHOP segment, focusing on need-driven senior living communities in secondary suburban markets [9][10] - The company is actively expanding its SHOP capabilities and has increased its SHOP investment by 106% over the last 12 months to approximately $740 million [8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving a normalized growth rate of 5%-6% for 2026, despite a guidance midpoint of only 1.2% due to non-recurring items in 2025 [11] - The company is optimistic about long-term FFO per share growth and is investing in resources to scale future growth, particularly in the SHOP segment [12] Other Important Information - The company announced a change in its leverage policy, lowering the range from 4x-5x to 3.5x-4.5x net debt to adjusted EBITDA [28] - A new board member, Lily Donohue, was welcomed, bringing extensive experience in senior living operations [12][13] Q&A Session Summary Question: Same-store SHOP guidance for 2026 - Management indicated that the guidance reflects current visibility and plans for corrective measures that could enhance upside potential [33][35] Question: Momentum in SHOP pipeline for 2026 - Management expects the momentum to continue, with a focus on executing based on reasonable visibility [37] Question: NHC lease negotiations - Management described the current posture as being in a quiet period regarding negotiations, with no specific updates available [40][41] Question: Pricing power in secondary markets - Management emphasized that each market is different, but they believe there is potential for revenue growth through responsible rate increases [54][56] Question: Higher volume of dispositions - Management explained that the higher volume is driven by reallocating resources from non-core assets to focus on relationships with greater growth potential [59][60]

Financial Data and Key Metrics Changes - The company reported a Normalized FFO per share growth of 8.9% year-over-year for Q4 2025, with a full-year growth of 10.6% [4][22] - Total FAD increased by 13.7% year-over-year, reaching $232.1 million for the full year [23] - Net income per share for Q4 was $0.80, a decrease of 15.8% from the prior year, primarily due to prior year gains from derivative accounting [21] Business Line Data and Key Metrics Changes - The Seniors Housing Operating Portfolio (SHOP) platform saw a total NOI increase of 125% year-over-year, with same-store growth of 7.6% [4][5] - Cash rental income from the triple net portfolio increased by approximately 7% year-over-year [4] - SHOP NOI for Q4 increased by 124.9% to $7.3 million compared to the prior year [24] Market Data and Key Metrics Changes - There were fewer than 25,000 units under construction in Q4, representing just 2.2% of total inventory, the lowest level since 2012 [7] - Demand for senior housing is accelerating as the first baby boomers turn 80 this year, indicating favorable industry tailwinds [7] Company Strategy and Development Direction - The company plans to allocate 70% of its investment activity in 2026 to SHOP, targeting need-driven senior living communities in secondary suburban markets [9] - The company is focusing on partnerships with operators that demonstrate high resident satisfaction and is expanding its SHOP capabilities [8][9] - A new Board member, Lilly Donohue, was welcomed, bringing extensive experience in senior living operations [12][13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term growth potential of FFO per share and the attractiveness of senior housing industry fundamentals [12] - The company anticipates a 1.2% growth in Normalized FFO per share for 2026, with an adjusted growth rate estimated at 5%-6% [11] - Management highlighted the importance of maintaining a strong balance sheet and a lower leverage policy to support growth [28] Other Important Information - The company announced a dividend of $0.92 per share for shareholders of record on March 31, 2026 [28] - The company has a robust liquidity position with approximately $875 million available, including cash and revolver capacity [27] Q&A Session Summary Question: Same-store SHOP guidance for 2026 - Management indicated that the guidance reflects current expectations and future plans for corrective measures, with potential for upside [32][34] Question: NHC lease negotiations - Management described the current posture as being in a quiet period regarding NHC lease negotiations [40] Question: SHOP growth and performance - Management noted that the new SHOP portfolio is expected to perform well, with double-digit growth anticipated [53] Question: Pricing power in secondary markets - Management emphasized that pricing power varies by market, but they expect to achieve 7%-8% growth through effective rate increases [57] Question: Dispositions and capital recycling - Management explained that the higher volume of dispositions is driven by reallocating resources to more strategic relationships [61]

Financial Data and Key Metrics Changes - The company reported a Normalized FFO per share growth of 8.9% year-over-year for Q4 2025, with a full-year growth of 10.6% [5][22] - Total FAD growth for the year was 13.7%, exceeding initial guidance [5][23] - Net income per share for Q4 2025 was $0.80, a decrease of 15.8% from the prior year [21] Business Line Data and Key Metrics Changes - SHOP platform's total NOI increased by 125% year-over-year and 48% sequentially [5][24] - Cash rental income from the triple net portfolio increased by approximately 7% year-over-year [5][19] - SHOP NOI for the quarter was $7.3 million, a 124.9% increase compared to Q4 2024 [24] Market Data and Key Metrics Changes - There were fewer than 25,000 units under construction in the senior housing market, representing just 2.2% of total inventory, the lowest level since 2012 [7] - Demand for senior housing is expected to accelerate as the first baby boomers turn 80 this year [8] Company Strategy and Development Direction - The company plans to allocate 70% of its investment activity in 2026 to the SHOP segment, targeting need-driven senior living communities in secondary suburban markets [10] - The company is focused on building partnerships with operators that demonstrate high resident satisfaction [10] - A new Board member, Lily Donohue, was welcomed, bringing extensive experience in senior living operations [14] Management's Comments on Operating Environment and Future Outlook - Management expressed enthusiasm about the long-term growth potential in the senior housing industry, citing favorable fundamentals [13] - The company expects a normalized growth rate in the 5%-6% range for 2026, with a guidance for Normalized FFO per share growth of 1.2% at the midpoint [12][29] - The company is well-positioned financially, with a net debt to adjusted EBITDA ratio of less than 4x [11][27] Other Important Information - The company announced a change in its leverage policy, lowering the range from 4x-5x to 3.5x-4.5x net debt to adjusted EBITDA [28] - The company made $392 million in new investments in 2025, the highest level since 2016 [26] Q&A Session Summary Question: Same-store SHOP guidance for 2026 - Management indicated that the guidance reflects current expectations and potential corrective measures could provide upside [33][35] Question: NHC lease negotiations - Management described the current posture as being in a quiet period regarding NHC [40][42] Question: SHOP growth and performance - Management noted that the new SHOP portfolio is expected to perform well, with double-digit growth anticipated [54][55] Question: Pricing power in secondary markets - Management emphasized that pricing strategies are tailored to local market fundamentals, with potential for 7%-8% growth [56][57] Question: Dispositions and capital recycling - Management explained that dispositions are driven by operator relationships and reallocating resources to more strategic growth opportunities [62]

National Health Investors Investor Update February 26, 2026 Although we believe that the assumptions on which these forward-looking statements are based are reasonable, any of those assumptions could prove to be inaccurate, and as a result, the forward-looking statements based on those assumptions also could be inaccurate. While we may elect to update these forward-looking statements at some point in the future, we disclaim any obligation to do so, except as may be required by law, even if our estimates or ...

Financial Performance - NHI reported a net income attributable to common stockholders of $0.80 per diluted share for Q4 2025, down from $0.95 per share in Q4 2024[6]. - Net income attributable to common stockholders for Q4 2025 was $38.1 million, compared to $43.2 million in Q4 2024[29]. - Normalized FFO attributable to common stockholders for the year ended December 31, 2025 was $231.2 million, compared to $195.8 million in 2024[29]. - Basic earnings per share for the year ended December 31, 2025, was $3.03, down 3.5% from $3.14 in 2024[41]. - Total revenues for the year ended December 31, 2025, reached $375,628,000, up 12.0% from $335,181,000 in 2024[41]. - Total expenses for the year ended December 31, 2025, were $238,961,000, an increase of 12.8% from $211,883,000 in 2024[41]. - The company reported gains from equity method investments of $3,664,000 for the year ended December 31, 2025, compared to $402,000 in 2024[41]. Operational Highlights - The company expanded its Senior Housing Operating Portfolio from 15 to 26 properties in 2025, with total SHOP investments reaching approximately $740.0 million[4]. - NHI's total investments in 2025 amounted to $392.3 million, marking the most active year since 2016[5]. - Rental income increased by $4.5 million, or 6.8%, primarily due to new investments since September 30, 2024[7]. - Total NOI for the year ended December 31, 2025 was $303.7 million, an increase from $281.8 million in 2024[30]. - SHOP segment NOI for Q4 2025 was $7.3 million, compared to $3.3 million in Q4 2024[30]. - The company has approximately $110.6 million of investment opportunities under signed Letters of Intent with an average initial yield of approximately 7.5%[18]. - $230.0 million in unidentified new investments with an initial average NOI yield of 7.8% and 70% in new SHOP investments[25]. - Same Store SHOP NOI growth projected between 7.0% - 8.0% year-over-year[25]. - Total SHOP NOI growth, excluding unidentified new SHOP investments, expected to be between $39.2 million - $40.0 million, or 105.0% - 109.0% year-over-year[25]. Debt and Guidance - The company has a net debt to adjusted EBITDA ratio of 3.8x, well within its target range of 3.5x – 4.5x[20]. - NHI's 2026 guidance includes a NAREIT FFO per diluted share range of $4.94 - $4.99[23]. - The company expects to settle all existing forward equity sales agreements by 2026[25]. Cash Flow and Future Outlook - Continued collection of deferred rents is anticipated, contributing to future cash flow stability[25]. - The company anticipates continued performance improvements and growth opportunities in future operations[44]. - The company has no obligation to update forward-looking statements, which may be affected by various risks and uncertainties[44]. Asset Management - Real estate properties, net, increased to $2,473,758,000 in 2025 from $2,211,253,000 in 2024, reflecting a growth of 11.8%[43]. - Cash and cash equivalents decreased to $19,624,000 in 2025 from $24,289,000 in 2024, a decline of 19.5%[43].

Real Estate Investments - As of December 31, 2025, the aggregate gross carrying value of the Real Estate Investments segment was $2.7 billion, including 189 properties across 32 states[208]. - The total number of properties in the investment portfolio was 215, with a total gross carrying amount of $3.51 billion as of December 31, 2025[216]. - The total NOI for the Real Estate Investments segment was $284.6 million, representing 93.7% of the total NOI[217]. - The properties in the Real Estate Investments segment are primarily structured as triple-net leases with initial terms of 10 to 15 years[209]. - The company transitioned 7 properties to the SHOP segment, contributing $4.4 million to the SHOP segment NOI for the year ended December 31, 2025[217]. - The Real Estate Investments segment contributed $284.584 million to NOI in 2025, an increase from $269.127 million in 2024, which is a 5.7% rise[333]. SHOP Segment - The SHOP segment included 26 properties with a total of 3,009 units and a gross carrying value of $634.3 million as of December 31, 2025[210]. - The company transitioned seven properties from the Real Estate Investments segment into the SHOP segment during 2025[223]. - The SHOP segment's NOI increased to $19,134,000 in 2025, compared to $12,170,000 in 2024, representing a significant growth of 57.3%[333]. Acquisitions and Investments - Total asset acquisitions for the year ended December 31, 2025, amounted to $325.6 million, including $50.8 million for the settlement of mortgage and other notes receivable[223]. - The company acquired a portfolio of four SHOs in October 2025 for $74.3 million, which included two SLCs and two ALFs, with a total of 339 units[224]. - A 120-unit ALF in New Jersey was acquired in March 2025 for $46.3 million, with an initial annual lease rate of 8.0% and fixed annual escalators of 2.0%[221]. - The company recognized an estimated fair value of $8.6 million for an 88-unit ALF in Florida acquired in February 2025, settling a $10.0 million non-performing mortgage note[220]. - A 251-unit CCRC in South Carolina was acquired in October 2025 for $52.5 million, with an initial annual lease rate of 8.25%[225]. Financial Performance - Total revenues for the year ended December 31, 2025, increased by $40.4 million, or 12.1%, to $375.6 million compared to $335.2 million in 2024[275]. - Net cash provided by operating activities was $236.6 million, an increase of $28.8 million, or 13.9%, from $207.8 million in 2024[279]. - Total expenses increased by $27.1 million, or 12.8%, to $239.0 million in 2025, driven by higher senior housing operating expenses and legal costs[275]. - The company reported revenues of $360.5 million and net income of $142.7 million for the year ended December 31, 2025[298]. - Net income attributable to common stockholders for 2025 was $141.976 million, up from $137.867 million in 2024, representing a 1.6% increase[329]. - Adjusted EBITDA for 2025 reached $287.650 million, compared to $262.550 million in 2024, indicating a 9.5% increase[331]. Debt and Liquidity - Outstanding indebtedness as of December 31, 2025, was $1.2 billion[283]. - The company has a $700 million Credit Facility maturing in October 2028, with $496 million available to draw as of December 31, 2025[285]. - The company expects to meet its short-term liquidity needs primarily through cash generated from operations and borrowings under its Credit Facility[314]. - Total contractual obligations as of December 31, 2025 amounted to $1,454.3 million, with $208.3 million due within one year[315]. Credit Ratings and Dividends - Credit ratings from Moody's, Fitch, and S&P reaffirmed at Baa3 and BBB- with a "Stable" outlook, indicating stable creditworthiness[294]. - The company declared dividends of $3.64 per share for the year ended December 31, 2025, maintaining a strong dividend policy[303]. - The company intends to comply with REIT dividend requirements, distributing at least 90% of its annual taxable income[301]. Occupancy and Tenant Performance - Average occupancy rates for Senior Living properties were 84.9% in Q4 2025, while Bickford properties had an occupancy rate of 83.9%[251]. - The occupancy rate for Senior Living properties in Q3 2025 is 86.5%, up from 85.7% in Q3 2024[253]. - The occupancy rate for Medical properties in Q3 2025 is 83.1%, an increase from 82.8% in Q3 2024, showing positive trends in this segment[253]. - Total tenant concentrations amounted to $2,658,853, with 78.7% of revenues derived from major tenants in 2025[239]. Expected Credit Losses - As of December 31, 2025, the company reduced the carrying value of mortgage and other notes receivable by a reserve for expected credit losses of $15.4 million[272]. - The company recognized a provision for expected credit losses of $(3.4) million for the year ended December 31, 2025, compared to $4.6 million in 2024[272]. - The company had two non-performing loans as of December 31, 2025, with a total principal balance of $13.3 million, fully covered by credit loss reserves[271].

Core Viewpoint - National Health Investors, Inc. announced a quarterly dividend of $0.92 per common share, scheduled for payment on May 1, 2026, to stockholders of record as of March 31, 2026 [1] Company Overview - National Health Investors, Inc. is a self-managed real estate investment trust (REIT) established in 1991 as a Maryland corporation [1]