Q4 2021 NATIONAL HEALTH INVESTORS Q4 2021 SUPPLEMENTAL TABLE OF CONTENTS COVER: Sante Silverdale, operated by Sante Partners, in Silverdale, WA. 1 Q4 2021 National Health Investors | --- | --- | |-------------------------------------|-------| | | | | COMPANY | | | COMPANY INFORMATION & LEADERSHIP | 02 | | PORTFOLIO | | | PORTFOLIO OVERVIEW | 03 | | PORTFOLIO SUMMARY | 04 | | OPERATING PARTNERS | 05 | | EBITDARM LEASE COVERAGE | 06 | | PURCHASE OPTIONS & LEASE MATURITIES | 07 | | INVESTMENTS | | | INVESTMENT ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2021 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _____________ to _____________ Commission File Number 001-10822 National Health Investors Inc (Exact name of registrant as specified in its charter) Maryland 62-14709 ...

National Health Investors, Inc. (NYSE:NHI) Q3 2021 Earnings Conference Call November 8, 2021 5:00 PM ET Company Participants Eric Mendelsohn ??? President and CEO Dana Hambly ??? Vice President, Investor Relations Kevin Pascoe ??? Chief Investment Officer John Spaid ??? Executive Vice President and Chief Financial Officer David Travis ??? Chief Accounting Officer Conference Call Participants Jordan Sadler ??? KeyBanc Capital Markets Juan Sanabria ??? BMO Rich Anderson ??? SMBC Daniel Bernstein ??? Capital O ...

Part I. Financial Information [Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) The financial statements for Q3 2021 reflect decreased total assets, revenues, and net income, primarily due to asset sales, rent concessions, and increased loan and realty losses [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) - Total assets decreased by approximately **$208.3 million**, primarily driven by a reduction in net real estate properties. Total liabilities decreased by **$234.6 million**, largely due to a reduction in debt[9](index=9&type=chunk) Condensed Consolidated Balance Sheet Summary (in thousands) | Account | September 30, 2021 (unaudited) | December 31, 2020 | | :--- | :--- | :--- | | **Total Assets** | **$2,912,177** | **$3,120,489** | | Real estate properties, net | $2,428,449 | $2,667,432 | | Mortgage and other notes receivable, net | $284,608 | $292,427 | | Cash and cash equivalents | $48,393 | $43,344 | | **Total Liabilities** | **$1,362,971** | **$1,597,544** | | Debt | $1,285,287 | $1,499,285 | | **Total Equity** | **$1,549,206** | **$1,522,945** | | **Total Liabilities and Stockholders' Equity** | **$2,912,177** | **$3,120,489** | [Condensed Consolidated Statements of Income](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) - For the nine months ended September 30, 2021, total revenues decreased by **9.0%** YoY, and net income attributable to common stockholders decreased by **28.8%** YoY. The decline was significantly impacted by a **$22.6 million** increase in loan and realty losses[11](index=11&type=chunk) Condensed Consolidated Statements of Income Summary (in thousands) | Metric | Three Months Ended Sep 30, 2021 | Three Months Ended Sep 30, 2020 | Nine Months Ended Sep 30, 2021 | Nine Months Ended Sep 30, 2020 | | :--- | :--- | :--- | :--- | :--- | | **Total Revenues** | **$73,833** | **$84,301** | **$229,048** | **$251,572** | | Rental income | $67,043 | $77,821 | $210,143 | $232,266 | | **Total Expenses** | **$62,368** | **$40,912** | **$147,287** | **$122,413** | | Loan and realty losses (gains) | $22,425 | $(193) | $23,596 | $1,002 | | **Net income attributable to common stockholders** | **$30,814** | **$42,595** | **$105,327** | **$147,986** | | **Diluted EPS** | **$0.67** | **$0.95** | **$2.31** | **$3.31** | [Condensed Consolidated Statements of Cash Flows](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) - Cash from operations decreased by **$19.0 million** YoY. Investing activities generated **$163.4 million** in cash, a significant shift from the prior year's use of **$83.4 million**, primarily due to **$203.1 million** in proceeds from real estate sales. Financing activities used significantly more cash (**$317.0 million** vs. **$57.7 million**) due to net repayments on the revolving credit facility and term loans[16](index=16&type=chunk) Condensed Consolidated Statements of Cash Flows Summary (in thousands) | Cash Flow Category | Nine Months Ended Sep 30, 2021 | Nine Months Ended Sep 30, 2020 | | :--- | :--- | :--- | | Net cash provided by operating activities | $157,501 | $176,527 | | Net cash provided by (used in) investing activities | $163,358 | $(83,418) | | Net cash used in financing activities | $(317,007) | $(57,664) | | **Increase in cash and cash equivalents** | **$3,852** | **$35,445** | [Notes to Condensed Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Notes detail the company's healthcare REIT business, significant acquisitions, dispositions, debt restructuring, COVID-19 lease concessions, and dividend reduction - The company is a self-managed REIT specializing in senior housing and medical facility investments, with a portfolio of approximately **$3.0 billion** in **208 properties** across **34 states** as of September 30, 2021[27](index=27&type=chunk) - Due to the COVID-19 pandemic, the company provided **$19.9 million** in lease concessions during the first nine months of 2021, accounting for them as variable lease payments[45](index=45&type=chunk)[119](index=119&type=chunk) - During Q3 2021, the company reclassified **three properties** to assets held for sale and recorded impairment charges of approximately **$16.6 million**. Additional impairments of **$5.9 million** were recognized on **two other properties** sold during the quarter[59](index=59&type=chunk)[60](index=60&type=chunk) - On April 1, 2021, the company's **3.25%** senior unsecured convertible notes matured and were retired for **$67.1 million**, including a **$6.1 million** conversion premium[93](index=93&type=chunk) - On January 26, 2021, the company issued **$400.0 million** of **3.00%** senior notes due **2031**, using the net proceeds of **$392.3 million** to repay a term loan and reduce borrowings on its revolving credit facility[100](index=100&type=chunk) - The quarterly dividend was reduced from **$1.1025** to **$0.90 per share** starting with the dividend declared on June 3, 2021[126](index=126&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=32&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations.) Management discusses COVID-19's impact on tenant operations, portfolio management through dispositions and investments, declining financial performance, and strategic actions to maintain liquidity and strengthen the balance sheet [Portfolio and COVID-19 Impact](index=36&type=section&id=Portfolio%20and%20COVID-19%20Impact) - As of September 30, 2021, NHI's portfolio consisted of **222 facilities** across **34 states**, including **144 senior housing properties** and **75 skilled nursing facilities**, with a total investment cost of approximately **$3.3 billion**[148](index=148&type=chunk)[153](index=153&type=chunk) - The COVID-19 pandemic continues to significantly impact tenant operations through reduced occupancy and increased costs. This has led NHI to provide rent concessions to tenants[157](index=157&type=chunk) Cumulative Rent Concessions Since Pandemic Began (in thousands) | Tenant | Deferrals | Abatements | Collections | | :--- | :--- | :--- | :--- | | Bickford | $17,500 | $2,100 | $— | | Holiday | $1,800 | $— | $— | | All Others | $5,555 | $50 | $44 | | **Total** | **$24,855** | **$2,150** | **$44** | - The company has agreed to further rent deferrals with Bickford for **Q4 2021 ($4.5 million)** and potentially **Q1 2022 (up to $4.0 million)**[159](index=159&type=chunk) [Investment and Disposition Activity](index=39&type=section&id=Investment%20and%20Disposition%20Activity) 2021 Investment Highlights (in thousands) | Investment | Asset Class | Amount | | :--- | :--- | :--- | | Vizion Health (Real Estate) | HOSP | $40,250 | | Navion (Real Estate) | SHO | $6,600 | | Montecito Medical (Note) | MOB | $50,000 | | Vizion Health-Brookhaven (Note) | HOSP | $20,000 | | Navion Senior Solutions (Note) | SHO | $3,600 | | **Total** | | **$120,450** | - During the nine months ended September 30, 2021, the company completed real estate dispositions with net proceeds of **$216.0 million**, resulting in a net gain of **$20.5 million** after accounting for impairments[170](index=170&type=chunk) - In Q3 2021, **three transition properties** were reclassified to assets held for sale, resulting in impairment charges of **$16.6 million**. An additional **$5.9 million** in impairments were recognized on **two other properties** that were sold[171](index=171&type=chunk)[172](index=172&type=chunk) [Tenant Performance and Monitoring](index=41&type=section&id=Tenant%20Performance%20and%20Monitoring) - **Four tenants**—Senior Living Communities, NHC, Bickford Senior Living, and Holiday Retirement—each accounted for **10% or more** of total revenues for the nine months ended September 30, 2021[179](index=179&type=chunk) - Following the acquisition of its management services by Atria Senior Living, Holiday Retirement has not paid contractual rent since July 30, 2021. NHI has placed the tenant on a cash basis, with **$4.8 million** in rent due but unrecognized for August and September 2021[180](index=180&type=chunk) EBITDARM Coverage Ratio (Trailing 12-Months as of June 30) | Asset Type | 2Q21 | 2Q20 | | :--- | :--- | :--- | | SHO | 1.06x | 1.17x | | SNF | 2.80x | 2.90x | | **TOTAL** | **1.64x** | **1.74x** | - The senior housing (SHO) portfolio coverage declined, primarily due to softening occupancy and rising expenses, exacerbated by the COVID-19 pandemic. Bickford's coverage fell to **0.97x** and Holiday's to **0.94x**[188](index=188&type=chunk)[189](index=189&type=chunk) [Results of Operations Analysis](index=45&type=section&id=Results%20of%20Operations%20Analysis) - For Q3 2021 vs Q3 2020, rental income decreased by **$10.8 million (13.8%)**, primarily due to **$5.8 million** in rent concessions, Holiday's nonpayment of **$4.8 million**, and property dispositions[196](index=196&type=chunk)[198](index=198&type=chunk) - For the nine months ended Sep 30, 2021 vs 2020, rental income decreased by **$22.1 million (9.5%)**, driven by **$17.2 million** in rent concessions, Holiday's nonpayment, and dispositions[199](index=199&type=chunk)[200](index=200&type=chunk) - Loan and realty losses increased by **$22.6 million** for both the three and nine-month periods, primarily from **$22.5 million** in impairment charges on **five properties** in Q3 2021[198](index=198&type=chunk)[200](index=200&type=chunk) [Liquidity and Capital Resources](index=49&type=section&id=Liquidity%20and%20Capital%20Resources) - As of September 30, 2021, the company had **$48.4 million** in unrestricted cash and **$550.0 million** available on its revolving credit facility[201](index=201&type=chunk) - In January 2021, the company issued **$400 million** in **3.00%** senior notes due **2031** and used the proceeds to repay a **$100 million** term loan and reduce borrowings on its credit facility[213](index=213&type=chunk) - The company's Consolidated Net Debt to Annualized Adjusted EBITDA ratio was approximately **4.8x** for the three months ended September 30, 2021[221](index=221&type=chunk) - During the first nine months of 2021, the company sold **661,951 common shares** through its ATM program, generating net proceeds of approximately **$47.9 million**[230](index=230&type=chunk) [FFO & FAD](index=57&type=section&id=FFO%20%26%20FAD) - Normalized FFO per diluted share for the nine months ended September 30, 2021, decreased by **16.1%** to **$3.55** from **$4.23** in the prior year, primarily due to the effects of the COVID-19 pandemic[247](index=247&type=chunk)[253](index=253&type=chunk) FFO & FAD Reconciliation Summary (in thousands, except per share) | Metric | Nine Months Ended Sep 30, 2021 | Nine Months Ended Sep 30, 2020 | | :--- | :--- | :--- | | Net income attributable to common stockholders | $105,327 | $147,986 | | NAREIT FFO attributable to common stockholders | $162,233 | $188,538 | | Normalized FFO attributable to common stockholders | $162,043 | $188,918 | | Normalized FAD attributable to common stockholders | $163,561 | $180,738 | | **Normalized FFO per diluted share** | **$3.55** | **$4.23** | [Quantitative and Qualitative Disclosures About Market Risk](index=54&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk.) The company manages interest rate risk on variable-rate debt through swaps, with no unhedged exposure as of Q3 2021, while stock price volatility impacts compensation expense - As of September 30, 2021, the company had **no outstanding variable rate debt** exposed to interest rate risk, as its **$400 million** in variable-rate bank term loans are hedged through interest-rate swaps that expire in **December 2021**[257](index=257&type=chunk)[258](index=258&type=chunk) - A **50 basis-point** increase in market rates would decrease the estimated fair value of the company's mortgage and other loans by approximately **$7.2 million**[263](index=263&type=chunk) - Elevated stock price volatility since the start of the COVID-19 pandemic has increased the fair value of stock option grants, resulting in higher stock-based compensation expense. The fair value of options granted in February 2021 was **$14.54 per share**, **$9.00 higher** than grants in Q1 2020[265](index=265&type=chunk)[266](index=266&type=chunk) [Controls and Procedures](index=55&type=section&id=Item%204.%20Controls%20and%20Procedures.) Management concluded that disclosure controls and procedures were effective as of September 30, 2021, with no material changes to internal controls during the quarter - Based on an evaluation as of September 30, 2021, the CEO and CFO concluded that the company's disclosure controls and procedures were **effective**[267](index=267&type=chunk) - There were no changes in internal control over financial reporting during the nine months ended September 30, 2021, that have materially affected, or are reasonably likely to materially affect, internal controls[269](index=269&type=chunk) Part II. Other Information [Legal Proceedings](index=56&type=section&id=Item%201.%20Legal%20Proceedings) The company is subject to ordinary course legal claims, with a specific lawsuit settled in September 2021 entitling NHI to **$0.4 million** - A lawsuit filed by East Lake Capital Management LLC in June 2018 was settled on September 22, 2021. Under the agreement, NHI is entitled to receive **$0.4 million** in Q4 2021 to settle all claims[272](index=272&type=chunk) [Risk Factors](index=56&type=section&id=Item%201A.%20Risk%20Factors) No material changes to previously disclosed risk factors were reported during the nine months ended September 30, 2021 - There were no material changes to the risk factors disclosed in the company's Annual Report on Form 10-K for the year ended December 31, 2020, during the nine months ended September 30, 2021[273](index=273&type=chunk) [Exhibits](index=57&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including key corporate documents, debt indentures, and CEO/CFO certifications - The exhibits filed include amendments to master leases, indentures related to the January 2021 senior notes offering, and CEO/CFO certifications[275](index=275&type=chunk)

National Health Investors, Inc. (NYSE:NHI) Q2 2021 Earnings Conference Call August 10, 2021 12:00 PM ET Company Participants Dana Hambly - Director, IR Eric Mendelsohn - President, CEO & Director John Spaid - EVP, Finance & CFO Kevin Pascoe - CIO Conference Call Participants Jordan Sadler - KeyBanc Capital Markets Juan Sanabria - BMO Rich Anderson - SMBC Connor Siversky - Berenberg Daniel Bernstein - Capital One Securities Operator Greetings, and welcome to the National Health Investors Second Quarter 2021 ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) Commission File Number 001-10822 National Health Investors Inc (Exact name of registrant as specified in its charter) Maryland 62-1470956 (State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification No.) 222 Robert Rose Drive Murfreesboro Tennessee 37129 (Address of principal executive offices) (Zip Code) (615) 890-9100 (Registrant's telephone number, including area code) Securities ...

Financial Data and Key Metrics Changes - The net income per diluted common share for Q1 2021 was $0.78, down from $1.37 in Q1 2020, primarily due to a $21 million gain on the sale of real estate assets in the previous year, $4.2 million in rent deferrals, and a $3.6 million increase in non-cash stock-based compensation expense [21][22][23] - NAREIT FFO decreased by $0.12 to $1.23 from $1.35, and normalized FFO decreased by $0.12 or 9% to $1.24 [23][25] - Normalized FAD was essentially flat year-over-year at $59.6 million, up $550,000 sequentially from the fourth quarter [25] Business Line Data and Key Metrics Changes - The entrance fee in skilled nursing segments, which represent over 50% of cash revenue, performed well, while freestanding assisted living, memory care, and independent living segments experienced significant occupancy and margin declines [12][13] - Bickford, the largest assisted living operator, saw a 410 basis point sequential decline in average occupancy in Q1, but occupancy improved by 180 basis points in April [35][36] - Senior living communities had an average occupancy of 77.9% in Q1, up 60 basis points from the fourth quarter, while Holiday Retirement's average occupancy was 74.1%, down 310 basis points sequentially [38][39] Market Data and Key Metrics Changes - Active resident cases in the senior housing portfolio declined by 93% and by 97% in the skilled nursing portfolio since peaking in December [33] - The skilled nursing portfolio, representing 27% of annualized cash revenue, is anchored by strong tenants contributing 13% and 8% of annualized cash revenue respectively [41] Company Strategy and Development Direction - The company plans to restructure leases, sell underperforming assets, and change operators to achieve a portfolio of stronger assets and healthier EBITDARM coverage ratios [18] - A $50 million mezzanine loan with Montecito Medical was announced, aimed at investing primarily in medical office buildings, viewed as a chance to deploy capital at favorable risk-adjusted returns [16][44] - The company is focused on maintaining its investment-grade rating while exploring various levers, including capital recycling and potential changes to its dividend approach [19] Management's Comments on Operating Environment and Future Outlook - Management expects 2021 to be a difficult year as they help tenants bridge the gap to full occupancy and margin recovery, but they are optimistic about emerging stronger from the pandemic [10][11] - The company is cautious about the recovery trajectory, noting that robust pent-up demand is not yet evident in senior housing [30][46] Other Important Information - The company declared a first-quarter dividend of $1.1025, with payout ratios at 89.7% for normalized FFO and 84.9% for FAD [26] - Approximately $7.3 million in concessions for the second quarter were announced, with ongoing discussions for additional rent deferrals [27][28] Q&A Session Summary Question: Can you size the need for portfolio transformation through lease restructurings? - Management indicated that this is the year to address portfolio adjustments, estimating potential dispositions of $250 million to $400 million over the next eight months [50] Question: How big would a rent concession need to be for Holiday? - Management stated that the security deposit could cover rent for a period, but they prefer not to use it and are in ongoing discussions [55] Question: What are the repayment terms for rent concessions? - Management indicated that repayment could take between 12 to 24 months, depending on tenant cash flows [60] Question: Is Holiday current on its rent? - As of the latest update, Holiday is current on its rent, but discussions are ongoing [94] Question: What is the rationale behind the Montecito transaction? - The company is acting as a mezzanine lender, providing capital in a structure that allows for a blended cost of capital while participating in potential upside from asset sales [76][80] Question: How are rent deferrals treated in accounting? - Rent deferrals are not recognized as receivables and impact both FFO and FAD, flowing through the income statement [82]

Q1 2021 NATIONAL HEALTH INVESTORS Q1 2021 SUPPLEMENTAL TABLE OF CONTENTS 1 Q1 2021 National Health Investors | --- | --- | |-------------------------------------|-------| | COMPANY | | | COMPANY INFORMATION & LEADERSHIP | 02 | | PORTFOLIO | | | PORTFOLIO OVERVIEW | 03 | | PORTFOLIO SUMMARY | 04 | | OPERATING PARTNERS | 05 | | EBITDARM LEASE COVERAGE | 06 | | PURCHASE OPTIONS & LEASE MATURITIES | 07 | | INVESTMENTS | | | INVESTMENT RATIONALE | 08 | | RECENT INVESTMENTS | 09 | | CAPITALIZATION | | | CAPITALIZ ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) Commission File Number 001-10822 National Health Investors Inc (Exact name of registrant as specified in its charter) | Maryland | | 62-1470956 | | --- | --- | --- | | (State or other jurisdiction of incorporation or organization) | | (I.R.S. Employer Identification No.) | | 222 Robert Rose Drive | | | | Murfreesboro | Tennessee | 37129 | | (Address of principal executive offices) | | (Zip Code) | (615) 890-9100 (Re ...

National Health Investors, Inc. (NYSE:NHI) Q4 2020 Earnings Conference Call February 23, 2021 12:00 PM ET Company Participants Dana Hambly - Director, IR Eric Mendelsohn - President & CEO John Spaid - EVP & CFO Kevin Pascoe - CIO David Travis - CAO Conference Call Participants Daniel Bernstein - Capital One Securities Rich Anderson - SMBC Jordan Sadler - KeyBanc Capital Markets Omotayo Okusanya - Mizuho Securities John Kim - BMO Capital Markets Connor Siversky - Berenberg Operator Greetings, and welcome to ...