Core Insights - The article emphasizes the dual tailwinds benefiting National HealthCare Corporation (NHC), which are a rapidly growing elderly population and a cooling labor market, expected to enhance NHC's long-term fundamentals [1] Group 1: Company Overview - NHC is positioned to capitalize on demographic trends, particularly the increasing elderly population, which is likely to drive demand for healthcare services [1] - The cooling labor market is anticipated to strengthen NHC's operational capabilities and cost management [1] Group 2: Investment Focus - The analysis focuses on under-the-radar companies with limited analyst coverage, particularly in defensive sectors such as healthcare, utilities, and consumer staples [1]

Group 1 - iREIT+HOYA Capital focuses on income-producing asset classes that provide sustainable portfolio income, diversification, and inflation hedging [1] - The service offers a free two-week trial for potential investors to explore exclusive income-focused portfolios [1] Group 2 - Growth stocks are diverse and not limited to the tech sector, with a focus on defensive stocks for medium- to long-term investment horizons [2]

Financial Data and Key Metrics Changes - The company reported a net income per share of $0.79, down 2.5% from the prior year [24] - NAREIT FFO per share increased by 0.8% to $1.19, while normalized FFO per share rose by 3.4% to $1.22 compared to the prior year [24] - FAD for the quarter increased by 8.1% to $56 million [25] - The company raised the midpoint of its normalized FFO guidance per share by $0.09 to $4.80, representing year-over-year growth of 8.1% [7][31] Business Line Data and Key Metrics Changes - SHOP NOI increased by over 29% year-over-year to $3.8 million [18][25] - The annualized SHOP NOI increased by approximately $8.8 million or 57% following the transition of seven properties from leases to SHOP [8] - SHOP revenues for the six months ended June 30 increased by 5.7% to $28.2 million [25] Market Data and Key Metrics Changes - The company has approximately $130 million in unsigned LOIs expected to close in the next few months, including a SHOP deal valued at approximately $74 million [11] - The liquidity at the end of the quarter was approximately $760 million, which includes escrowed forward equity and cash [29] Company Strategy and Development Direction - The company is focusing on expanding its SHOP portfolio, which is believed to provide the highest growth potential with the best risk-adjusted returns [9] - The company aims to maintain a leverage-neutral approach while also having the flexibility to utilize equity for funding investments [41][43] - The company is committed to improving governance and has made significant board changes in response to shareholder feedback [14] Management Comments on Operating Environment and Future Outlook - Management expressed optimism about the growth opportunities and confidence in capitalizing on these opportunities [13] - The company expects double-digit NOI growth for the SHOP segment in 2026 [17] - Management noted some recent softness in occupancy but remains optimistic about reversing this trend [19][52] Other Important Information - The company announced a dividend increase of 2.2%, marking the first increase since 2021 [30] - The company completed the acquisition of a senior housing portfolio for $63.5 million during the quarter [27] Q&A Session Summary Question: What is driving the delay in closing some investments? - Management characterized it as a timing issue, with a robust pipeline still in place [36][37] Question: Are there larger portfolio transactions being evaluated? - Management confirmed that larger deals are being evaluated but emphasized the importance of having the right operating partner [39][40] Question: How is the relationship with Discovery being managed? - Management indicated that Discovery remains a partner and that there is ongoing NOI growth within that portfolio [48] Question: What caused the recent softness in occupancy? - Management attributed it to changes in local leadership and higher than normal move-outs, expecting a return to normal trends [52][53] Question: Can you provide an update on NHC discussions? - Management confirmed ongoing discussions and noted that NHC's coverage has improved to over four times [66][67]

Financial Data and Key Metrics Changes - The company reported a net income per share of $0.79, down 2.5% from the prior year [23] - NAREIT FFO per share increased by 0.8% to $1.19, while normalized FFO per share rose 3.4% to $1.22 compared to the prior year [23] - FAD for the quarter increased by 8.1% to $56 million [24] - The company raised its normalized FFO guidance per share by $0.09 to $4.80, representing year-over-year growth of 8.1% [7][31] Business Line Data and Key Metrics Changes - SHOP NOI increased by over 29% year-over-year to $3.8 million [8][17] - The annualized SHOP NOI increased by approximately $8.8 million or 57% following the transition of seven properties from leases to SHOP [7] - SHOP revenues for the six months ended June 30 increased by 5.7% to $28.2 million [25] Market Data and Key Metrics Changes - The company has approximately $130 million in unsigned LOIs expected to close in the next few months, including a SHOP deal valued at approximately $74 million [10] - The incremental pipeline is nearly $350 million, focused entirely on senior housing, with a significant number of SHOP deals [10] Company Strategy and Development Direction - The company aims to expand its SHOP portfolio, believing it offers the highest growth potential with the best risk-adjusted returns [8] - The focus is on driving higher occupancy and improving RevPOR growth, which increased by 3.7% compared to 2024 [9][18] - The company is committed to improving governance and board refreshment, responding to shareholder feedback [12][13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in capitalizing on multiple growth opportunities, with a strong balance sheet supporting funding [12] - The company expects double-digit NOI growth for the SHOP segment in 2026 and has adjusted its full-year NOI growth rate to a range of 13% to 16% [18][31] - Management noted some recent softness in occupancy but remains optimistic about reversing this trend [18][52] Other Important Information - The company completed the acquisition of a senior housing portfolio for $63.5 million and closed on a $28 million senior housing construction loan [27] - The company has a liquidity of approximately $760 million, including cash and revolver capacity [29] Q&A Session Summary Question: What is driving the delay in closing some investments? - Management characterized it as a timing issue, with a robust pipeline still in place [36][37] Question: Are there larger portfolio transactions being evaluated? - Management confirmed that larger deals are still being evaluated, but they are focusing on tangible opportunities under $100 million [39][40] Question: How is the relationship with Discovery being managed? - Management stated that Discovery remains a partner, with ongoing NOI growth expected from the portfolio [47] Question: What caused the recent softness in occupancy? - Management attributed it to changes in local leadership and higher than normal move-outs, expecting a return to normal trends [52][53] Question: What is the status of discussions with NHC? - Discussions are ongoing, with improved coverage reported for NHC [66][67]

Financial Performance - Net income per diluted share increased to $0.79 in Q2 2025 from $0.74 in Q1 2025 and $0.81 in Q2 2024[8] - NAREIT FFO per diluted share increased to $1.19 in Q2 2025 from $1.14 in Q1 2025 and $1.18 in Q2 2024[8] - Normalized FFO per share increased to $1.22 in Q2 2025 from $1.15 in Q1 2025 and $1.18 in Q2 2024[8] - Funds Available for Distribution (FAD) was $55.957 million in Q2 2025, compared to $56.001 million in Q1 2025 and $51.779 million in Q2 2024[8] - The FAD payout ratio was 76.3% in Q2 2025, compared to 74.9% in Q1 2025 and 75.5% in Q2 2024[8] Senior Housing Operating Portfolio (SHOP) - SHOP NOI increased 29.4% year-over-year to $3.8 million in Q2 2025[12, 21] - SHOP NOI margin increased 480 bps year-over-year to 26.9% in Q2 2025[12, 21] - Average SHOP occupancy increased 210 bps year-over-year to 89.1% in Q2 2025[12, 21] - Revenue per Occupied Room (RevPOR) increased 3.7% year-over-year to $3,071 in Q2 2025[12, 21] Investments and Capital Structure - NHI settled approximately 0.8 million shares for proceeds of $58.0 million and sold approximately 1.3 million shares on a forward basis for net proceeds of approximately $93.2 million during the quarter[12] - Total liquidity was approximately $758.7 million as of June 30, 2025[12, 46] - Net Debt to Adjusted EBITDA at an annualized 3.9x is below the low end of NHI's target range of 4.0x – 5.0x[12]

Exhibit 99.1 Contact: John L. Spaid, Chief Financial Officer Phone: (615) 890-9100 NHI Announces Second Quarter 2025 Results MURFREESBORO, Tenn. – (Wednesday, August 6, 2025) National Health Investors, Inc. (NYSE: NHI) announced today its results for the three and six months ended June 30, 2025. CEO Comments "We had another great quarter which exceeded our expectations. Given the strong quarterly results and continued good visibility into the second half of the year we are again raising our full year guidan ...

PART I. FINANCIAL INFORMATION [Item 1. Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited condensed consolidated financial statements, including balance sheets, statements of income, cash flows, and equity, along with detailed notes explaining the company's organization, accounting policies, investment activities, debt, equity, and segment performance [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Condensed Consolidated Balance Sheets (in thousands) | Metric | June 30, 2025 | December 31, 2024 | | :---------------------------------- | :------------ | :---------------- | | Total assets | $2,695,959 | $2,614,371 | | Total liabilities | $1,198,665 | $1,229,194 | | Total equity | $1,487,973 | $1,375,387 | | Real estate properties, net | $2,316,452 | $2,211,253 | | Debt, net | $1,118,835 | $1,146,041 | [Condensed Consolidated Statements of Income](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) Condensed Consolidated Statements of Income (in thousands, except per share amounts) **Three Months Ended June 30,** | Metric | 2025 | 2024 | Change ($) | Change (%) | | :---------------------------------- | :----- | :----- | :--------- | :--------- | | Total Revenues | $90,662 | $84,970 | $5,692 | 6.7% | | Total Expenses | $55,607 | $51,771 | $3,836 | 7.4% | | Net Income | $36,689 | $34,952 | $1,737 | 5.0% | | Net Income Attributable to Common Stockholders | $36,938 | $35,227 | $1,711 | 4.9% | | Diluted EPS | $0.79 | $0.81 | $(0.02) | (2.5%) | **Six Months Ended June 30,** | Metric | 2025 | 2024 | Change ($) | Change (%) | | :---------------------------------- | :----- | :----- | :--------- | :--------- | | Total Revenues | $179,958 | $166,482 | $13,476 | 8.1% | | Total Expenses | $111,615 | $102,891 | $8,724 | 8.5% | | Net Income | $70,506 | $65,610 | $4,896 | 7.5% | | Net Income Attributable to Common Stockholders | $71,051 | $66,142 | $4,909 | 7.4% | | Diluted EPS | $1.53 | $1.52 | $0.01 | 0.7% | [Condensed Consolidated Statements of Cash Flows](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Condensed Consolidated Statements of Cash Flows (in thousands) | Metric | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | Change ($) | Change (%) | | :---------------------------------- | :----------------------------- | :----------------------------- | :--------- | :--------- | | Net cash provided by operating activities | $106,295 | $101,566 | $4,729 | 4.7% | | Net cash used in investing activities | $(123,785) | $(29,544) | $(94,241) | NM | | Net cash provided by (used in) financing activities | $10,311 | $(79,736) | $90,047 | NM | | Decrease in cash, cash equivalents and restricted cash | $(7,179) | $(7,714) | $535 | (6.9%) | - Investing activities in 2025 included **$130,984 thousand** in acquisitions of real estate properties, a significant increase from **$9,866 thousand** in 2024[14](index=14&type=chunk) - Financing activities in 2025 included **$123,484 thousand** from issuance of common shares, net, compared to none in 2024[14](index=14&type=chunk) [Condensed Consolidated Statements of Equity](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Equity) - Total equity increased from **$1,375,387 thousand** at December 31, 2024, to **$1,487,973 thousand** at June 30, 2025[18](index=18&type=chunk) - Issuance of common shares, net, contributed **$65,483 thousand** in Q1 2025 and **$58,001 thousand** in Q2 2025[18](index=18&type=chunk) - Dividends declared were **$0.90 per common share** for both quarters in 2025 and 2024[18](index=18&type=chunk)[20](index=20&type=chunk) [Note 1. Organization and Nature of the Business](index=9&type=section&id=Note%201.%20Organization%20and%20Nature%20of%20the%20Business) - NHI is a self-managed REIT specializing in sale-leaseback, joint venture, and financing for senior housing and medical facility investments[21](index=21&type=chunk) - The Real Estate Investments segment has **$2.7 billion** in 181 properties (115 senior housing, 65 SNFs, 1 HOSP) across 32 states, primarily under triple-net leases, and **$270.4 million** in mortgages and other notes receivable[22](index=22&type=chunk) - The SHOP segment comprises two ventures owning operations of 15 ILFs (1,732 units) in eight states, managed by third-party property managers[23](index=23&type=chunk) [Note 2. Basis of Presentation and Significant Accounting Policies](index=9&type=section&id=Note%202.%20Basis%20of%20Presentation%20and%20Significant%20Accounting%20Policies) - Financial statements are unaudited and prepared in accordance with U.S. GAAP for interim periods[24](index=24&type=chunk) - The company consolidates wholly-owned subsidiaries, joint ventures, and Variable Interest Entities (VIEs) where it is deemed the primary beneficiary, such as the Merrill and Discovery SHOP ventures and certain real estate partnerships[25](index=25&type=chunk)[26](index=26&type=chunk)[27](index=27&type=chunk) - NHI intends to qualify as a REIT, generally exempt from U.S. federal income tax, with Taxable REIT Subsidiaries (TRSs) subject to income taxes[42](index=42&type=chunk)[43](index=43&type=chunk) - Recent accounting pronouncements include ASU 2023-09 (Income Tax Disclosures, effective after Dec 15, 2024), ASU 2024-03 (Income Statement Expenses Disaggregation, effective after Dec 15, 2026), and ASU 2025-05 (Credit Losses for Accounts Receivable, effective after Dec 15, 2025)[49](index=49&type=chunk)[50](index=50&type=chunk)[51](index=51&type=chunk) [Note 3. Investment Activity](index=14&type=section&id=Note%203.%20Investment%20Activity) Real Estate Acquisitions (Six Months Ended June 30, 2025, in thousands) | Operator | Period | Properties | Asset Class | Total Acquisition Price | | :---------------------- | :------- | :--------- | :---------- | :---------------------- | | Generations, LLC | Q1 2025 | 1 | SLC | $21,200 | | Mainstay Healthcare | Q1 2025 | 1 | ALF | $8,600 | | Juniper Communities, LLC | Q1 2025 | 1 | ALF | $46,284 | | Agemark Senior Living | Q2 2025 | 6 | ALF | $63,500 | | **Total** | | | | **$139,584** | - Effective August 1, 2025, a portfolio of six senior housing properties with Discovery was transitioned from Real Estate Investments to the SHOP segment, involving a **$9.0 million** write-off of straight-line rent receivable[55](index=55&type=chunk)[176](index=176&type=chunk) - Also effective August 1, 2025, an ILF in Tulsa, Oklahoma, was transitioned from Real Estate Investments to the existing Discovery SHOP venture, with a **$3.2 million** write-off of straight-line rent receivable[57](index=57&type=chunk)[178](index=178&type=chunk) Future Minimum Lease Payments (as of June 30, 2025, in thousands) | Period | Amount | | :---------------- | :------- | | Remainder of 2025 | $131,619 | | 2026 | $269,241 | | 2027 | $220,143 | | 2028 | $215,015 | | 2029 | $206,183 | | 2030 | $197,456 | | Thereafter | $779,528 | | **Total** | **$2,019,185** | [Note 4. Mortgage and Other Notes Receivable](index=19&type=section&id=Note%204.%20Mortgage%20and%20Other%20Notes%20Receivable) - Mortgage notes receivable totaled **$169.4 million** and other notes receivable totaled **$101.0 million** as of June 30, 2025, net of credit loss reserves of **$17.5 million**[75](index=75&type=chunk) - As of June 30, 2025, two loans totaling **$13.3 million** were designated as non-performing notes (SLM mezzanine loan and Bickford unsecured loan)[76](index=76&type=chunk) - In February 2025, an assisted living facility in Oviedo, Florida, was acquired via deed in lieu of foreclosure for a **$10.0 million** non-performing mortgage from SLM, recorded at an estimated fair value of **$8.6 million**[78](index=78&type=chunk)[191](index=191&type=chunk) Credit Loss Reserves (Six Months Ended June 30, 2025, in thousands) | Metric | Amount | | :----------------------------- | :------- | | Balance at December 31, 2024 | $20,249 | | Provision for expected credit losses | $(1,384) | | Write-offs | $(1,400) | | **Balance at June 30, 2025** | **$17,465** | [Note 5. Senior Housing Operating Portfolio](index=22&type=section&id=Note%205.%20Senior%20Housing%20Operating%20Portfolio) - The SHOP segment consists of two consolidated ventures owning operations of 15 ILFs, structured to comply with REIT requirements using TRSs[89](index=89&type=chunk) - The Merrill Managed Portfolio (six ILFs) has Merrill owning a **20%** common equity interest, classified as redeemable noncontrolling interest (mezzanine equity) due to put rights[90](index=90&type=chunk)[91](index=91&type=chunk) - The Discovery Managed Portfolio (nine ILFs) has the Discovery member owning a **2%** common equity interest, classified as equity[92](index=92&type=chunk) - Effective August 1, 2025, six properties (five ALFs and one ILF) transitioned from Real Estate Investments to the newly formed Sinceri Managed Portfolio under management agreements[95](index=95&type=chunk) [Note 6. Equity Method Investment](index=23&type=section&id=Note%206.%20Equity%20Method%20Investment) - NHI holds a **25%** equity interest in Timber Ridge OpCo, LLC, a CCRC operating company, accounted for under the equity method[96](index=96&type=chunk) - Recognized gains from equity method investment of **$1.5 million** for the three months ended June 30, 2025, and **$1.9 million** for the six months ended June 30, 2025, significantly up from **$0.2 million** and **$0.4 million** in the prior year periods, respectively[97](index=97&type=chunk) - Cumulative unrecognized losses for this investment totaled **$15.4 million** through June 30, 2025[97](index=97&type=chunk) [Note 7. Other Assets](index=24&type=section&id=Note%207.%20Other%20Assets) Other Assets, Net (in thousands) | Metric | June 30, 2025 | December 31, 2024 | | :---------------------------------- | :------------ | :---------------- | | Total other assets, net | $18,831 | $22,753 | | Restricted cash | $683 | $2,213 | - The company recognized **$1.2 million** of transaction costs related to an acquisition in its SHOP segment that did not materialize in Q1 2025[99](index=99&type=chunk) [Note 8. Debt](index=24&type=section&id=Note%208.%20Debt) - Total debt, net, decreased to **$1,118,835 thousand** as of June 30, 2025, from **$1,146,041 thousand** at December 31, 2024[100](index=100&type=chunk) Aggregate Principal Maturities of Outstanding Debt (as of June 30, 2025, in thousands) | Period | Amount | | :---------------- | :------- | | Remainder of 2025 | $250,000 | | 2026 | — | | 2027 | $100,000 | | 2028 | $378,000 | | 2029 | — | | 2030 | — | | Thereafter | $400,000 | | **Total** | **$1,128,000** | - The **$700.0 million** unsecured revolving credit facility's maturity date was extended to October 2028[101](index=101&type=chunk) - All outstanding Fannie Mae term loans, totaling **$75.7 million**, were repaid in the second quarter of 2025[108](index=108&type=chunk)[219](index=219&type=chunk) [Note 9. Commitments, Contingencies and Uncertainties](index=26&type=section&id=Note%209.%20Commitments,%20Contingencies%20and%20Uncertainties) - Total working capital, mortgage, construction, revolving credit, and mezzanine loan commitments amounted to **$179.3 million**, with **$106.6 million** funded as of June 30, 2025[111](index=111&type=chunk) - Aggregate development commitments totaled **$23.4 million**, with **$7.5 million** funded[112](index=112&type=chunk) - Aggregate contingent lease inducement commitments were **$12.9 million**[112](index=112&type=chunk) - The credit loss liability for unfunded loan commitments was **$0.1 million** as of June 30, 2025[114](index=114&type=chunk)[240](index=240&type=chunk) [Note 10. Redeemable Noncontrolling Interest](index=27&type=section&id=Note%2010.%20Redeemable%20Noncontrolling%20Interest) - Merrill's noncontrolling interest in the SHOP venture is classified as redeemable noncontrolling interest (mezzanine equity) due to put rights, though a redemption event is not currently probable[116](index=116&type=chunk) - The balance of redeemable noncontrolling interest was **$9,321 thousand** as of June 30, 2025[117](index=117&type=chunk) [Note 11. Equity and Dividends](index=27&type=section&id=Note%2011.%20Equity%20and%20Dividends) - The remaining **1.0 million shares** from the August 2024 forward equity sale agreement were settled in Q1 2025 for **$65.5 million**[118](index=118&type=chunk)[230](index=230&type=chunk) - Under the ATM equity program, **0.2 million shares** were sold on a forward basis in March 2025 for **$15.5 million**, and **1.3 million shares** were sold on a forward basis in June 2025 for **$91.8 million**[120](index=120&type=chunk)[122](index=122&type=chunk)[233](index=233&type=chunk)[235](index=235&type=chunk) - As of June 30, 2025, **1.4 million shares** remain available under ATM forward sales agreements, representing **$102.3 million** in net proceeds[123](index=123&type=chunk)[236](index=236&type=chunk) - A quarterly dividend of **$0.90 per common share** was declared for Q1 and Q2 2025 and 2024, with a **$0.92 per common share** dividend declared on August 5, 2025[125](index=125&type=chunk)[229](index=229&type=chunk) [Note 12. Share-Based Compensation](index=28&type=section&id=Note%2012.%20Share-Based%20Compensation) - **29,500 restricted stock awards** were issued in February 2025, vesting over five years[127](index=127&type=chunk) - Options to purchase **567,000 shares** of common stock were granted in Q2 2025[128](index=128&type=chunk) Share-Based Compensation Expense (in thousands) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :---------------------------------- | :----------------------------- | :----------------------------- | :----------------------------- | :----------------------------- | | Restricted stock awards | $351 | $186 | $575 | $344 | | Stock options | $720 | $501 | $3,054 | $2,498 | | **Total share-based compensation expense** | **$1,071** | **$687** | **$3,629** | **$2,842** | - Unrecognized share-based compensation expense totaled **$5.1 million** as of June 30, 2025[131](index=131&type=chunk) [Note 13. Earnings Per Share](index=30&type=section&id=Note%2013.%20Earnings%20Per%20Share) Earnings Per Share (except share amounts) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :---------------------------------- | :----------------------------- | :----------------------------- | :----------------------------- | :----------------------------- | | Basic EPS | $0.79 | $0.81 | $1.54 | $1.52 | | Diluted EPS | $0.79 | $0.81 | $1.53 | $1.52 | | Weighted average common shares outstanding - diluted | 46,822,465 | 43,563,654 | 46,350,498 | 43,494,103 | [Note 14. Fair Value of Financial Instruments](index=31&type=section&id=Note%2014.%20Fair%20Value%20of%20Financial%20Instruments) Fair Values of Financial Instruments (as of June 30, 2025, in thousands) | Instrument | Carrying Amount | Fair Value | Level | | :---------------------------------- | :-------------- | :--------- | :---- | | Variable rate debt | $573,258 | $578,000 | 2 | | Fixed rate debt | $545,577 | $490,511 | 2 | | Mortgage and other notes receivable, net | $252,939 | $248,610 | 3 | [Note 15. Segment Reporting](index=31&type=section&id=Note%2015.%20Segment%20Reporting) Total Revenues by Segment (Six Months Ended June 30, 2025, in thousands) | Segment | Amount | | :-------------------------- | :------- | | Real Estate Investments | $151,725 | | SHOP | $28,156 | | Non-Segment / Corporate | $77 | | **Total** | **$179,958** | Net Operating Income (NOI) by Segment (Six Months Ended June 30, 2025, in thousands) | Segment | Amount | | :-------------------------- | :------- | | Real Estate Investments | $145,924 | | SHOP | $6,907 | | Non-Segment / Corporate | $77 | | **Total** | **$152,908** | - Capital expenditures for the Real Estate Investments segment increased to **$141.8 million** in 2025 from **$35.0 million** in 2024, while SHOP segment capital expenditures decreased to **$2.5 million** from **$3.7 million**[138](index=138&type=chunk) [Note 16. Variable Interest Entities](index=35&type=section&id=Note%2016.%20Variable%20Interest%20Entities) - Consolidated SHOP ventures had aggregate assets of **$258.5 million** (real estate properties, net) and liabilities of **$4.4 million** as of June 30, 2025[148](index=148&type=chunk) - Consolidated real estate partnerships had aggregate assets of **$240.3 million** (real estate properties, net) as of June 30, 2025[149](index=149&type=chunk) Unconsolidated Variable Interest Entities (Maximum Exposure to Loss as of June 30, 2025, in thousands) | Name | Carrying Amounts to Loss | Maximum Exposure | | :------------------------------ | :----------------------- | :--------------- | | Senior Living | $86,446 | $87,446 | | Senior Living Management | $12,000 | $12,000 | | Bickford | $16,127 | $28,150 | | Encore Senior Living | $35,558 | $35,625 | | Timber Ridge OpCo | $(2,756) | $2,244 | | Senior Living Hospitality Group | $13,026 | $14,050 | | Montecito Medical Real Estate | $9,391 | $39,002 | | Vizion Health | $19,888 | $20,309 | | Navion Senior Solutions | $7,636 | $9,786 | | Kindcare Senior Living | $801 | $801 | | Mainstay Healthcare | $9,062 | $9,062 | [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations.](index=37&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations.) This section provides management's perspective on the company's financial performance, liquidity, and capital resources, including an executive overview, detailed analysis of investment activities, tenant performance, and key financial metrics like FFO, FAD, and Adjusted EBITDA [Cautionary Statement Regarding Forward Looking Statements](index=37&type=section&id=Cautionary%20Statement%20Regarding%20Forward%20Looking%20Statements) - The report contains forward-looking statements that involve known and unknown risks and uncertainties, which could cause actual results to differ materially from projections[153](index=153&type=chunk)[154](index=154&type=chunk) - Key risks include dependence on operator success, potential for bankruptcy, tenant concentration, regulatory changes, increased liability claims, illiquidity of real estate investments, and the ability to raise capital[154](index=154&type=chunk)[155](index=155&type=chunk) [Executive Overview](index=40&type=section&id=Executive%20Overview) - NHI is a self-managed REIT specializing in senior housing and medical facility investments, operating through two segments: Real Estate Investments and Senior Housing Operating Portfolio (SHOP)[158](index=158&type=chunk) - The Real Estate Investments segment includes 197 facilities (125 senior housing, 70 SNFs, 2 HOSPs) with an aggregate gross carrying value of **$2.7 billion**, and **$270.4 million** in mortgage and other notes receivable[159](index=159&type=chunk) - The SHOP segment comprises two consolidated ventures owning operations of 15 ILFs with 1,732 units, managed by third-party property managers[164](index=164&type=chunk) - Senior housing properties are categorized as need-driven (ALFs, SLCs) or discretionary (ILFs, EFCs), while medical facilities (SNFs, HOSPs) primarily receive payments from Medicare, Medicaid, and health insurance[160](index=160&type=chunk)[161](index=161&type=chunk)[162](index=162&type=chunk)[163](index=163&type=chunk) [Recent Investments Activity](index=43&type=section&id=Recent%20Investments%20Activity) Real Estate Acquisitions (Six Months Ended June 30, 2025, in thousands) | Operator | Period | Properties | Asset Class | Total Acquisition Price | | :---------------------- | :------- | :--------- | :---------- | :---------------------- | | Generations, LLC | Q1 2025 | 1 | SLC | $21,200 | | Mainstay Healthcare | Q1 2025 | 1 | ALF | $8,600 | | Juniper Communities, LLC | Q1 2025 | 1 | ALF | $46,284 | | Agemark Senior Living | Q2 2025 | 6 | ALF | $63,500 | | **Total** | | | | **$139,584** | - In March 2025, a mezzanine loan agreement with Vizion Health affiliates was amended, providing an additional **$5.4 million** in funding, with an outstanding principal balance of **$17.7 million** as of June 30, 2025[173](index=173&type=chunk) - In May 2025, the company entered into a construction loan agreement to fund up to **$28.0 million** for the development of an 84-unit assisted living and memory care facility[174](index=174&type=chunk) - Effective August 1, 2025, a portfolio of six senior housing properties and an ILF in Tulsa, Oklahoma, were transitioned from the Real Estate Investments segment to the SHOP segment, resulting in write-offs of straight-line rent receivables totaling **$12.2 million**[176](index=176&type=chunk)[178](index=178&type=chunk) [Tenant Leases](index=44&type=section&id=Tenant%20Leases) - Tenant leases are typically structured as triple-net leases with initial terms of **10 to 15 years**, including annual rent escalators[179](index=179&type=chunk) - One senior living community is subject to a purchase and sale agreement for approximately **$39.0 million**, expiring in October 2025[180](index=180&type=chunk) - Tenants hold purchase options on four properties with an aggregate net carrying value of **$76.0 million**, with exercise dates between 2028 and 2031[181](index=181&type=chunk) [Tenant Concentrations](index=45&type=section&id=Tenant%20Concentrations) Top Tenant Concentrations (% of Total Revenues, Six Months Ended June 30, 2025) | Tenant | % of Total Revenues | | :-------------------------- | :------------------ | | Senior Living Communities, LLC | 15% | | Bickford Senior Living | 12% | | National HealthCare Corporation (NHC) | 11% | | All others, net | 43% | | Escrow funds received from tenants | 3% | | Resident fees and services | 16% | - Bickford Senior Living has been on a cash basis of revenue recognition since Q2 2022 due to financial condition concerns[185](index=185&type=chunk) - The master lease for NHC, covering three ILFs and 32 SNFs, expires on December 31, 2026, with two five-year extension options[186](index=186&type=chunk) - Lease payments received from cash basis tenants decreased to **$22,939 thousand** for the six months ended June 30, 2025, from **$26,854 thousand** in the prior year[188](index=188&type=chunk) [Occupancy](index=46&type=section&id=Occupancy) Average Portfolio Occupancy (Q2 2025 vs. Q2 2024) | Segment | Q2 2025 | Q2 2024 | | :-------------- | :------ | :------ | | Senior Living | 83.9% | 83.1% | | Bickford | 85.2% | 85.4% | | SHOP | 89.1% | 87.0% | [Tenant Monitoring](index=47&type=section&id=Tenant%20Monitoring) - The company uses EBITDARM (Earnings Before Interest, Taxes, Depreciation, Amortization, Rent, and Management Fees) as a primary performance measure for tenants to assess their ability to meet obligations[194](index=194&type=chunk) Real Estate Investments Portfolio Coverage (Trailing 12-month, Q1 2025 vs. Q1 2024) | Property Type | Q1 2025 Coverage | Q1 2024 Coverage | Q1 2025 Occupancy | Q1 2024 Occupancy | | :-------------------- | :--------------- | :--------------- | :---------------- | :---------------- | | Senior Housing | 1.54x | 1.46x | 86.3% | 84.5% | | Skilled Nursing Facilities (SNF) | 3.04x | 2.97x | 83.9% | 81.9% | | Non-SNF Medical | 2.72x | 3.27x | 77.5% | 80.4% | | **Total** | **2.06x** | **2.01x** | **85.1%** | **83.2%** | Key Customer Coverage (Trailing 12-month, Q1 2025 vs. Q1 2024) | Customer | Q1 2025 Coverage | Q1 2024 Coverage | Q1 2025 Occupancy | Q1 2024 Occupancy | | :--------------- | :--------------- | :--------------- | :---------------- | :---------------- | | NHC | 4.16x | 3.96x | 88.8% | 88.2% | | Senior Living | 1.49x | 1.49x | 83.5% | 81.9% | | Bickford | 1.66x | 1.71x | 86.0% | 84.2% | [Critical Accounting Policies and Estimates](index=49&type=section&id=Critical%20Accounting%20Policies%20and%20Estimates) - There have been no significant changes to critical accounting policies and estimates from the Annual Report on Form 10-K for the year ended December 31, 2024[197](index=197&type=chunk) - No impairment charges were recognized during the three and six months ended June 30, 2025, compared to a **$0.7 million** impairment charge in the prior year period[198](index=198&type=chunk) - Credit loss reserves totaled **$17.5 million** for mortgage and other notes receivable and **$0.1 million** for unfunded loan commitments as of June 30, 2025[200](index=200&type=chunk) [Results of Operations](index=50&type=section&id=Results%20of%20Operations) - For the three months ended June 30, 2025, rental income increased by **$4.5 million** (**6.9%**), resident fees and services (net of operating expenses) increased by **$0.9 million** (**29.4%**), and interest income increased by **$0.4 million** (**6.9%**)[203](index=203&type=chunk) - Legal expenses increased by **$0.9 million**, and proxy contest expenses of **$1.3 million** were incurred in Q2 2025, with no comparable costs in Q2 2024[203](index=203&type=chunk) - Loan and realty (gains) losses, net, shifted from a **$1.1 million** net loss in Q2 2024 to a **$1.4 million** net gain in Q2 2025, primarily due to a **$1.8 million** reduction in credit loss reserves in 2025 and a **$0.7 million** impairment charge in 2024[203](index=203&type=chunk) - For the six months ended June 30, 2025, rental income increased by **$11.2 million** (**8.7%**), resident fees and services (net of operating expenses) increased by **$1.0 million** (**17.2%**), and interest income increased by **$0.9 million** (**7.7%**)[205](index=205&type=chunk) - Legal expenses increased by **$2.1 million**, including **$1.2 million** for an unrealized SHOP transaction, and proxy contest expenses of **$1.6 million** were incurred in 2025, with no comparable costs in 2024[205](index=205&type=chunk) [Liquidity and Capital Resources](index=55&type=section&id=Liquidity%20and%20Capital%20Resources) - As of June 30, 2025, the company had **$322.0 million** available on its **$700.0 million** revolving credit facility, **$18.6 million** in unrestricted cash, and **$102.3 million** of undrawn net proceeds from ATM forward sales agreements[206](index=206&type=chunk) Cash Flow Summary (Six Months Ended June 30, in thousands) | Metric | 2025 | 2024 | Change ($) | Change (%) | | :---------------------------------- | :----- | :----- | :--------- | :--------- | | Net cash provided by operating activities | $106,295 | $101,566 | $4,729 | 4.7% | | Net cash used in investing activities | $(123,785) | $(29,544) | $(94,241) | NM | | Net cash provided by (used in) financing activities | $10,311 | $(79,736) | $90,047 | NM | - Total outstanding indebtedness was **$1.1 billion** as of June 30, 2025, with the **$700.0 million** revolving credit facility's maturity extended to October 2028 and the **$200.0 million** term loan's maturity extended to December 2025[212](index=212&type=chunk)[213](index=213&type=chunk)[215](index=215&type=chunk) - All **$75.7 million** of Fannie Mae term loans were repaid in Q2 2025[219](index=219&type=chunk) Contractual Obligations (as of June 30, 2025, in thousands) | Obligation Type | Total | Less than 1 Year | 1 - 3 Years | 3 - 5 Years | More than 5 Years | | :---------------------- | :---------- | :--------------- | :---------- | :---------- | :---------------- | | Debt, including interest | $1,280,419 | $294,905 | $171,109 | $409,099 | $405,306 | | Loan commitments | $72,720 | $41,109 | $31,611 | — | — | | Development commitments | $15,867 | — | $15,867 | — | — | | **Total** | **$1,369,006** | **$336,014** | **$218,587** | **$409,099** | **$405,306** | [FFO and FAD](index=61&type=section&id=FFO%20and%20FAD) - NAREIT FFO attributable to common stockholders per diluted share increased by **$0.07** (**3.1%**) to **$2.34** for the six months ended June 30, 2025, compared to **$2.27** in the prior year[251](index=251&type=chunk) - Normalized FFO attributable to common stockholders per diluted share increased by **$0.08** (**3.5%**) to **$2.37** for the six months ended June 30, 2025, compared to **$2.29** in the prior year[251](index=251&type=chunk) - Normalized FAD attributable to common stockholders increased by **$9.2 million** (**8.9%**) to **$111,958 thousand** for the six months ended June 30, 2025, compared to **$102,758 thousand** in the prior year[251](index=251&type=chunk) - Normalized FAD for 2025 includes a **$1.164 million** adjustment for transaction costs related to a large SHOP transaction that did not materialize[249](index=249&type=chunk) [Adjusted EBITDA](index=64&type=section&id=Adjusted%20EBITDA) - Adjusted EBITDA increased by **$7.2 million** (**5.5%**) to **$138,408 thousand** for the six months ended June 30, 2025, compared to **$131,193 thousand** in the prior year[253](index=253&type=chunk) - The Fixed Charge Coverage Ratio was **5.0x** for the six months ended June 30, 2025, up from **4.6x** in the prior year[253](index=253&type=chunk) [Net Operating Income](index=65&type=section&id=Net%20Operating%20Income) - Total Net Operating Income (NOI) increased by **$12.7 million** (**9.1%**) to **$152,908 thousand** for the six months ended June 30, 2025, compared to **$140,196 thousand** in the prior year[255](index=255&type=chunk) Net Operating Income (NOI) by Segment (Six Months Ended June 30, 2025, in thousands) | Segment | Amount | | :-------------------------- | :------- | | Real Estate Investments | $145,924 | | SHOP | $6,907 | | Non-segment / corporate | $77 | | **Total** | **$152,908** | [Item 3. Quantitative and Qualitative Disclosures About Market Risk.](index=66&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk.) This section discusses the company's exposure to market risks, primarily focusing on interest rate fluctuations and their potential impact on debt, cash flows, and the fair value of financial instruments, as well as inflation risk [Interest Rate Risk](index=66&type=section&id=Interest%20Rate%20Risk) - As of June 30, 2025, **$578.0 million** of outstanding indebtedness was subject to variable interest rates[256](index=256&type=chunk) - A **50 basis point** (bps) increase or decrease in variable interest rates would annually change interest expense by approximately **$2.9 million**, or **$0.06 per common share**[257](index=257&type=chunk) Interest Rates on Debt (as of June 30, 2025, in thousands) | Debt Type | Balance | % of Total | Weighted Average Interest Rate | | :-------------------------- | :---------- | :--------- | :----------------------------- | | Fixed rate | $550,000 | 48.8% | 3.49% | | Variable rate | $578,000 | 51.2% | 5.54% | | **Total** | **$1,128,000** | **100.0%** | **4.48%** | - A **50 bps** increase in market interest rates would decrease the estimated fair value of mortgages and notes by approximately **$1.4 million**[260](index=260&type=chunk) [Inflation Risk](index=67&type=section&id=Inflation%20Risk) - Tenant leases generally include annual rent escalators (fixed or CPI-based) and require tenants to pay all property operating expenses, which are expected to partially offset inflationary increases[261](index=261&type=chunk) [Item 4. Controls and Procedures.](index=67&type=section&id=Item%204.%20Controls%20and%20Procedures.) This section confirms the effectiveness of the company's disclosure controls and procedures and reports no material changes in internal control over financial reporting during the quarter [Evaluation of Disclosure Control and Procedures](index=67&type=section&id=Evaluation%20of%20Disclosure%20Control%20and%20Procedures) - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of June 30, 2025[262](index=262&type=chunk) [Changes in Internal Control over Financial Reporting](index=67&type=section&id=Changes%20in%20Internal%20Control%20over%20Financial%20Reporting) - No changes in internal control over financial reporting were identified during the three months ended June 30, 2025, that materially affected or are reasonably likely to materially affect these controls[264](index=264&type=chunk) PART II. OTHER INFORMATION [Item 1. Legal Proceedings](index=68&type=section&id=Item%201.%20Legal%20Proceedings) This section states that the company's facilities are subject to routine legal claims and lawsuits, but management believes their ultimate resolution will not have a material adverse effect on the company's financial condition, results of operations, or cash flows - The company's facilities are subject to claims and potential lawsuits in the ordinary course of business[265](index=265&type=chunk) - Property managers, tenants, and borrowers are obligated to indemnify NHI against liabilities arising from operations, environmental, or title issues[265](index=265&type=chunk) - Management believes the ultimate resolution of all pending legal proceedings will not materially adversely affect the company's financial condition, results of operations, or cash flows[265](index=265&type=chunk) [Item 1A. Risk Factors](index=68&type=section&id=Item%201A.%20Risk%20Factors) This section notes that there have been no material changes to the risk factors previously disclosed in the Annual Report on Form 10-K, except for the addition of risks related to stockholder activism efforts - No material changes to risk factors from the Annual Report on Form 10-K for the year ended December 31, 2024, except for new risks related to stockholder activism[266](index=266&type=chunk) - Stockholder activism efforts could cause substantial costs, divert management's attention, and adversely affect the business[267](index=267&type=chunk) [Item 5. Other Information](index=68&type=section&id=Item%205.%20Other%20Information) This section states that no Rule 10b5-1 trading arrangements were adopted, modified, or terminated by the company's directors or officers during the fiscal quarter ended June 30, 2025 - No Rule 10b5-1 trading arrangements were adopted, modified, or terminated by the company's directors or officers during the fiscal quarter ended June 30, 2025[268](index=268&type=chunk) [Item 6. Exhibits](index=69&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with the Form 10-Q, including corporate governance documents, debt instruments, and various certifications and XBRL data files - Exhibits include Articles of Incorporation, Bylaws, Third Supplemental Indenture, CEO and CFO certifications (pursuant to 18 U.S.C. Section 1350 and Section 302/906 of Sarbanes-Oxley Act), and XBRL instance documents[269](index=269&type=chunk) [Signatures](index=70&type=section&id=Signatures) This section contains the official signatures of the company's President, Chief Executive Officer, and Director, D. Eric Mendelsohn, and Chief Financial Officer, John L. Spaid, certifying the report - The report was signed by D. Eric Mendelsohn, President, Chief Executive Officer and Director, and John L. Spaid, Chief Financial Officer, on August 6, 2025[272](index=272&type=chunk)

Core Insights - Strawberry Fields REIT, Inc. (STRW) and National Health Investors (NHI) are being compared for their value to investors, with STRW currently showing a stronger potential for value investment [1][3]. Valuation Metrics - STRW has a forward P/E ratio of 8.01, significantly lower than NHI's forward P/E of 15.09, indicating STRW may be undervalued [5]. - The PEG ratio for STRW is 1.00, while NHI's PEG ratio is 4.28, suggesting STRW has a better balance between price and expected earnings growth [5]. - STRW's P/B ratio stands at 1.43 compared to NHI's 2.3, further supporting STRW's position as a more attractive value option [6]. Analyst Ratings - STRW holds a Zacks Rank of 1 (Strong Buy), while NHI has a Zacks Rank of 2 (Buy), indicating a more favorable earnings estimate revision trend for STRW [3]. - STRW's solid earnings outlook and superior valuation metrics contribute to its Value grade of A, whereas NHI has a Value grade of D [6].

Group 1 - The article emphasizes the importance of income-focused investing, particularly in well-run REITs that can withstand adversity and emerge stronger [2] - National Health Investors (NHI) is highlighted as a defensive stock with a medium- to long-term investment horizon, appealing to investors seeking stability [2] - The service provided by iREIT+HOYA Capital focuses on sustainable portfolio income, diversification, and inflation hedging, catering to income-producing asset classes [1] Group 2 - The article does not provide specific financial metrics or performance data related to National Health Investors or other companies [4][5]

Financial Data and Key Metrics Changes - For Q1 2025, net income per diluted common share was $0.74, up 4.2% from the prior year [17] - Net FFO per diluted common share increased 3.6% to $1.14, while normalized FFO rose 2.7% to $1.15 compared to the prior year [17][18] - FAD for the quarter increased 9.9% to $56 million [18] - Cash rent from the Real Estate Investment segment increased by $2.6 million, attributed to acquisitions and percentage revenue rents [18] Business Line Data and Key Metrics Changes - SHOP segment NOI increased 4.9% year over year to $3.1 million, with resident fees up 5.2% driven by occupancy improvement [16][19] - The discretionary senior housing portfolio had a coverage of 1.67 times, while the SNF portfolio reported solid coverage of 3.06 times [14] Market Data and Key Metrics Changes - The company has an active investment pipeline of approximately $264 million, with a focus on senior housing [6][11] - The market shows a limited buyer pool, but an increasing number of sellers, leading to a competitive environment for acquisitions [11][78] Company Strategy and Development Direction - The company is focused on growing its SHOP portfolio through internal conversions and optimizing its existing portfolio [8][10] - A significant investment pipeline is being pursued, with a goal to surpass last year's total investments of $237.5 million [10][24] - The company is cautious about pursuing growth for growth's sake, emphasizing quality over quantity in acquisitions [7][56] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the near-term outlook, raising normalized FFO guidance midpoint by $0.08 per share to $4.71, representing a year-over-year growth of 6.1% [6][23] - The company is maintaining its outlook for 12% to 15% NOI growth for the year, despite typical seasonality in the first quarter [9][24] Other Important Information - The company recorded a $1.2 million charge in transaction costs related to a large SHOP portfolio that was ultimately not pursued [7] - The balance sheet remains strong, with a net debt to adjusted EBITDA ratio of 4.1 times, well within the stated leverage policy [21][22] Q&A Session Summary Question: Update on NHC lease process and Medicaid clarity - Management is in dialogue with NHC regarding lease renewal and navigating Medicaid issues, with an independent committee assisting in strategy [31][32] Question: Reasons for low SHOP performance in Q1 - Management noted seasonality and a one-time expense affecting performance, but remains positive about future growth [34][35] Question: Status of SLM mezzanine loans - SLM situation is largely wrapped up, with potential for additional payments as facilities are sold [36] Question: Transition process with Discovery and potential rent impacts - Management anticipates some noise during the transition but is confident in maintaining FAD guidance [41][45] Question: Insights on the large SHOP portfolio that did not close - The decision was based on the portfolio not fitting the company's growth strategy at this time [54][56] Question: Timing for bond market tapping - The company is preparing to tap the bond market later in the year, with a minimum raise of $300 million expected [87][88]