National Health Investors, Inc. Q4 FY2025 earnings call

• CEO D. Eric Mendelsohn noted solid Q4 with normalized FFO per share growth of 8.9% YOY. SHOP platform was a core contributor with total NOI up 125% YOY and 48% sequentially. Full year normalized FFO per share grew 10.6%, total FAD grew 13.7% exceeding initial guidance. Announced $392M in investments in 2025, most active year since 2016, with $218M in Q4. Already closed on one $105.5M deal in 2026, largest SHOP acquisition to date. Pipeline over $488M with $111M under signed LOIs. Industry tailwinds for senior housing favorable. Continues to invest in SHOP capabilities, added 35 employees (46% increase from 2022), increased SHOP investment by 106% in 12 months to ~$740M, contributing 12% of annualized NOI. Targeting SHOP investments in need-driven senior living communities in secondary suburban markets. • CIO Kevin Carlton Pascoe said 2025 had $392.4M in investments at 8.1% average initial yield, Q4 had $217.5M. February acquired largest SHOP deal to date $105.5M for nine properties. Pipeline active with $110.6M under LOIs and $488M incremental pipeline. Planned dispositions of seven non-strategic properties. SHOP NOI up 124.9% YOY due to transitions and acquisitions. Same-store SHOP portfolio NOI declined 0.9% YOY but up 8.7% sequentially. Triple net portfolio had solid trends, cash lease revenue up ~7.2% YOY. Purchased a property in Jamison, PA with unique lease terms. • CFO John L. Spaid provided details on Q4 and full-year results. Net income per share down in Q4 and prior year. NAREIT FFO per share down 1.6% in Q4 but up 2.2% full year. Normalized FFO per share up 8.9% Q4 and 10.6% full year. Interest expense down 6.4% Q4. Weighted average common diluted shares up 5.4%. Closed on $217.5M in new investments in Q4, $392M full year. Balance sheet in great shape, net debt to adjusted EBITDA ratio 3.8 times, available liquidity ~$875M. Announced change in leverage policy, lowering from 4-5 times to 3.5-4.5 times net debt to adjusted EBITDA. Declared $0.92 per share dividend. 2026 guidance: NAREIT FFO and NFFO per share midpoint growth 6.9% and 1.2%, total FAD midpoint growth 7.8% to $250.2M, $230M in additional future investments, 70% SHOP investments.

SHOP platform was a core contributor with total NOI up 125% YOY and 48% sequentially. Cash rental income from triple net portfolio up ~7% due to acquisitions, interest income down 19% in Q4. Full year normalized FFO per share grew 10.6%, total FAD grew 13.7%. SHOP NOI up ~57% vs 2024 with 7.6% same-store growth and $6M from transitions/acquisitions. Cash rental revenue up ~10% YOY. SHOP investment in 2025 was $392M, well above initial guidance, with $218M in Q4. As of end of year, SHOP investment was ~$740M, contributing 12% of annualized NOI. Triple net portfolio had solid trends, cash lease revenue up ~7.2% YOY. SHOP NOI for Q4 ended 12/31 increased 124.9% YOY. Same-store SHOP portfolio NOI declined 0.9% YOY but up 8.7% sequentially. 2026 guidance for SHOP same-store NOI is 7%-8% increase, more weighted to second half with occupancy recovery and units coming back into service.

• 2026 guidance released with normalized FFO per share growth at midpoint 1.2%, but adjusting for non-recurring items, normalized growth rate in 5%-6% range. Midpoint of 2026 NFFO per share guidance implies two-year CAGR of ~6%. 2026 guidance includes ~$111M of dispositions of non-strategic assets. 2026 NOI expectations for SHOP properties at midpoint $39.6M. 2026 total FAD midpoint growth 7.8% to $250.2M. 2026 additional future investments $230M at average NOI yield 7.8%, 70% SHOP investments.

• Uncertainties with forward-looking statements, may involve risks or uncertainties not guarantees of future performance. • Interest rate environment could impact debt service coverage ratio. • Dispositions of non-strategic assets could impact growth if not managed properly. • Performance of SHOP segment could be affected by transitional impacts, management changes, or unforeseen operational issues. • Lease negotiations with NHC could be uncertain and impact the portfolio. • Bickford rent repayment may not proceed as expected, affecting cash flow. • Market conditions for senior housing could change, impacting investment activity and property performance.

Q: On same-store SHOP guidance for 2026, curious if initial guidance is reflective of current view and timing of corrective measures.

A: Kevin said they want to deliver confident guidance, there are things in back half of year like 16 units coming online in May, first half of year is softer with holidays, expect better results in second half.

Q: On SHOP pipeline momentum continuing in 2026, A: Kevin said they give guidance based on what they have visibility into and can execute on, and they outpaced 2025 expectations and aim to do same in 2026.

Q: On NHC lease negotiations, A: Eric said they are in the thick of it, in quiet period.

Q: On SHOP challenges and approach to new deals/manage agreements, A: Kevin said it impacts deal thinking, focused on senior housing campus-style products with continuum, management agreements have flexibility if needed.

Q: On long-term growth profile of secondary suburban markets for SHOP, A: Eric said migration to these markets is happening, Bickford and others can staff with full-time employees, growth is more about managing and underwriting responsibly.

Q: On SHOP growth and guidance for 2026, comparing non-same-store and same-store performance, A: Kevin said there are transitions with some transitional impacts, one group performing to expectation, forward look with near-term noise but transitions have gone pretty well, will see same-store perk up in third and fourth quarter.

Q: On $111M dispositions in guidance, driving higher volume and what assets, A: Kevin said it's operator relationship and non-core asset situation, focusing capital on relationships with growth potential.

Q: On NHC lease renewal impact on repositioning/selling, A: Eric said proceeds would be redeployed into SHOP.

Q: On SHOP same-store NOI guidance and longer-term view, A: Kevin said 7%-8% same-store guidance for 15 legacy Holiday assets, longer-term view is high single-digit to low double-digit growth, focus on margins.

Q: On Bickford deferred rent payback, A: Kevin said after rent reset, will negotiate alternatives for value, it would take a few years to pay off, NHI will get value.

Q: On CCRCs activity, A: Kevin said CCRC portfolio is good, been looking at opportunities, will be rigorous with underwriting.

Q: On Bickford deferred rent value options, A: Kevin said there are options like acquisition valuation adjustments, will finalize rent reset in April, Bickford has been paying down balance steadily.

Q: On NHC lease renegotiation, A: Eric said in quiet period, can't comment much.