NHPAP

• Strategic Portfolio Reorientation

  • The company is executing a planned strategic rotation to reorient its portfolio to focus almost entirely on the SHOP (senior housing) segment, divesting non-core OMF and SHOP assets.
  • The hard agreement to divest 86 OMF outpatient medical facilities for $528 million is complete, with only lender consent and customary closing conditions remaining. The sale of one non-core California SHOP community for $42 million (1.7% cap rate on trailing 12-month results) is also underway. The company continues to explore disposition opportunities for the remainder of its OMF portfolio.

• Acquisition and External Growth Activity

  • Q2 2026 and the immediate post-quarter period saw the most active investment stretch in company history: two midwestern SHOP communities (211 units) were acquired in June 2026 for $98 million, and 17 SHOP communities (1,003 units across multiple regions) closed in July 2026 for ~$182 million, 13 of which were acquired via the existing joint venture with Discovery Senior Living (NHP holds ~98.5% interest). NHP holds a right of first refusal and purchase option for an additional 13 Discovery-managed communities.
  • Year-to-date 2026 acquisitions total 19 properties, 1,214 units for ~$280 million, with a blended year one yield of 7.9% and projected year three yield of 9.7%. The yield spread reflects intentional underwriting of assets where operating partners can drive measurable improvement.
  • There is a robust near-term pipeline: 5 SHOP communities (178 units total) are under contract to close in Q3 2026 for $120 million combined. NHP is the stalking horse bidder for five additional SHOP communities via bankruptcy auction, and is entitled to a >$4.8 million breakup fee and expense reimbursement if it does not win the auction.
  • Most transaction consideration is planned to be paid with NHP OP units or REIT shares to deleverage the balance sheet.

• Operational Performance

  • SHOP segment same-store cash NOI growth remained in double-digits for a second consecutive quarter, with growth now broadening from occupancy recovery to include rate growth and operating leverage as the portfolio approaches stabilization.
  • A strategic leadership upgrade was completed at 6 AL communities in the Arvin portfolio during Q2 2022; the affected portfolio led company-wide occupancy gains in July 2026, with the leadership changes expected to drive long-term NOI improvements.
  • The company is proactively targeting SHOP communities with occupancy below 85% for temporary short-term concessions to accelerate occupancy growth, with the goal of unlocking long-term margin and NOI expansion.

• Balance Sheet and Governance Updates

  • The April IPO sharply reduced net debt to annualized adjusted EBITDA to 4.6x from 8.6x in Q1 2026. The company's credit facility was recast and upsized from $550 million to $1.2 billion with improved pricing and terms, and all 2026 debt maturities have been retired.
  • Al Campbell, former CFO of Mid-America Apartment Communities, was appointed as an independent director to the board, effective August 10 2026, and a search for an additional independent director is underway to strengthen corporate governance.
  • Tyler Bronner was appointed full-time EVP of Investments in July 2026, and the company is expanding its roster of operating partners, adding Priority Life for upcoming transactions.

• SHOP segment same-store cash NOI growth guidance was increased 2 percentage points at both the low and high end, to 15-18% for a full-year total of $51.6 to $52.9 million, driven by Q2 2026 outperformance on rate and margins.
• OMF segment same-store cash NOI growth guidance remains unchanged at 2.5-3.5% for a full-year total of $81.2 to $82 million, and does not include projected OMF dispositions.
• Full-year 2026 acquisition guidance is maintained at $375 to $425 million, based on updated 2026 disposition guidance of $570 million and the company's target year-end leverage position. The five SHOP properties up for auction are excluded from the guidance range, as the auction outcome is uncertain.
• Total G&A guidance is increased by $1 million to $27-28 million, and equity compensation guidance is increased by $1 million to $6-7 million, to account for higher expected non-cash equity compensation tied to board refreshment.
• Same-store recurring capital expenditure guidance remains unchanged at $22-25 million, with spending expected to be weighted to the second half of 2026.

1. SHOP (Senior Housing) Segment: Same-store cash net operating income (NOI) increased 20.1% year-over-year, reaching a projected full-year 2026 level of $51.6 to $52.9 million following an upward guidance revision. Same-store average occupancy hit 84.1% (140 basis point year-over-year improvement), same-store REVPOR increased 5.9% year-over-year to $6,390, and same-store cash NOI margin expanded 230 basis points year-over-year to 22.4%.
2. OMF (Outpatient Medical Facilities) Segment: Same-store cash NOI decreased 0.4% year-over-year to $20.2 million, with full-year 2026 same-store cash NOI projected at $81.2 to $82 million. The segment saw a 30 basis point sequential occupancy increase and 97% tenant retention rate, with the year-over-year decline driven by a one-time increase in non-reimbursable utility expenses.

• The outcome of the bankruptcy auction for the five pipeline SHOP communities is uncertain, and the transaction will only be completed if NHP wins the auction.
• Short-term temporary concessions targeting lower-occupancy SHOP communities are expected to negatively impact Q3 2026 SHOP NOI growth and temporarily delay seasonal revenue ramping, though management views this as a positive long-term strategic step.
• Forward-looking statements are inherently uncertain, and actual results may differ materially from projections due to a range of market and operational risk factors, which are detailed in the company's SEC filings, including the most recent Form 10-K.

Q: How does the post-quarter-end deal activity impact pro forma leverage and the balance sheet outlook after the OMF sale, and is the auctioned pipeline deal above the current acquisition guidance midpoint?

A: After including the completed non-core SHOP disposition, end-of-year net leverage (including preferred stock) is expected to land in the low to mid 5x range, which is the company's target range heading into 2027 and further portfolio rotation. The auctioned deal is indeed outside current guidance, but at least half of the consideration would be funded via OP/REIT units if NHP wins the auction, so it would not disrupt the target leverage range.

Q: What is driving the upside to SHOP same-store NOI that led to the guidance increase, and what is the timeline for the first OMF sale and future OMF dispositions?

A: The guidance increase was driven by stronger-than-expected Q2 2026 performance, particularly faster expense moderation on compensation, even though occupancy came in below internal forecasts. The 86-asset OMF sale went hard in mid-July, with portions expected to close in Q3 2026 and the rest in early Q4 2026, pending loan assumption approvals. There is strong inbound interest in the remaining OMF portfolio, and the company is prioritizing monetization to fund the robust SHOP acquisition pipeline.

Q: What should we expect for occupancy growth in the second half of 2026, and what is the plan for expanding the investment team and operating partner roster?

A: The guidance increase reflects Q2 outperformance, and the July occupancy pickup from the six recently re-leadership AL communities is not yet baked into guidance. The company expects strong seasonal leasing gains in Q3 and Q4, with dynamic 3-5% mid-year street rate increases already implemented at higher-occupancy properties. Tyler Bronner has been hired full-time as EVP of Investments, and new operating partner Priority Life will be added for upcoming Illinois transactions, with additional partners expected to join the roster as the pipeline grows.

Q: What are the expected yield and occupancy for the auctioned SHOP portfolio, and when will the option to acquire additional Discovery-managed communities be exercised?

A: The portfolio has mid-to-high 80% occupancy after a recent turnaround, with a year one yield in the low-to-mid 7% range and a year three yield near 9%—consistent with the blended yield profile of NHP's 2026 acquisitions. The additional 13 Discovery communities under option have a similar purchase price per unit to the recently closed 13 communities, but NHP is waiting for further occupancy and margin improvement at those assets before executing the purchase option.