Slides
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NHI NATIONAL HEALTH INVESTORS Q2 2026 Business Update AUGUST 10 , 2026
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Disclaimers This presentation, as well as information included in oral statements made, or to be made, by our senior management contain forward-looking statements that are based on current expectations, estimates, beliefs and assumptions. Words such as “may,” “will,” “anticipates,” “expects,” “intends,” “plans,” “believes,” “seeks,” “estimates” and variations of these words and similar expressions are intended to identify forward-looking statements. These statements are not guarantees of future performance and are subject to risks, uncertainties and other factors, some of which are beyond our control and difficult to predict and could cause actual results to differ materially from those expressed or implied in the forward-looking statements. 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 assumptions change. In light of these and other uncertainties, the inclusion of a forward-looking statement in this presentation should not be regarded as a representation by us that our plans and objectives will be achieved. You should not place undue reliance on these forward-looking statements. Factors which could cause our actual results to be materially different from those in or implied by the forward looking statements we make, many of which are beyond our control, include, among other things, the operating success of our tenants, managers and borrowers for collection of our lease and interest income; the success of property development and construction activities; the risk that the cash flows of our tenants, managers and borrowers would be adversely affected by increased liability claims and liability insurance costs; risks related to environmental laws and the costs associated with liabilities related to hazardous substances; risks associated with pandemics, epidemics or outbreaks; the risk of damage from catastrophic weather and other natural or man-made disasters and the physical effects of climate change; our ability to reinvest cash in real estate investments in a timely manner and on acceptable terms; the risk that the illiquidity of real estate investments could impede our ability to respond to adverse changes in the performance of our properties; operational risks with respect to our senior housing operating portfolio structured communities; risks related to our ability to maintain the privacy and security of Company information; disruptions to the management and operations of our business and the uncertainties caused by activist investors; adverse economic effects from international trade disputes (including threatened or implemented tariffs imposed by the U.S. or by foreign countries) or similar events impacting economic activity; our dependence on the ability to continue to qualify for taxation as a real estate investment trust; and other risk which are described under the heading “Risk Factors” in Item 1A in our Form 10-K for the year ended December 31, 2025 and under the heading “Risk Factors” in Item 1A in our Form 10-Q for the quarter ended June 30, 2026. In this presentation we refer to non-GAAP financial measures. These non-GAAP measures are not prepared in accordance with generally accepted accounting principles. Reconciliations to certain non-GAAP measures can be found at the end of this presentation, in the Company’s quarterly supplementals which can be found on our website at www.nhireit.com, and in our quarterly Form 10-Q filings and annual Form 10-K filing. Throughout this presentation, certain abbreviations and acronyms are used to simplify the format. A list of definitions is provided at the end of this presentation to clarify the meaning of any reference that may be ambiguous. 2
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Overview of Second Quarter 2026 3 Real Estate Investments • Lease revenue excluding straight-line, lease amortization, and escrow reimbursement revenue of $68.9 million increased 2.8% compared to Q2 2025. The increase was driven primarily by properties acquired since the end of Q2 2025, increases to the percentage rent current year revenue, and annual escalators. The increase was offset $2.2 million from transitioned properties on August 1, 2025 as well as the $0.6 million from dispositions; • Deferral repayments and percentage rent attributable to Bickford were approximately $1.3 million in Q2 2026; and • Interest income and other revenue declined by 16.1% to $5.2 million compared to $6.1 million in the prior year period. The Mortgage and other notes receivable balance declined by approximately $43.7 million to $209.3 million compared to the prior year period. Senior Housing Operating Portfolio (SHOP) 1 • Total SHOP • Q2 2026 SHOP revenue increased 215.0% compared to the prior year period and 20.8% sequentially due to the transition of the acquisition of nine properties on February 1, 2026, and seven properties on May 1, 2026; • Q2 2026 SHOP occupancy was 85.9% and RevPOR was $4,543; • Q2 2026 NOI of $11.0 million increased 188.5% compared to the prior year period and 24.0% sequentially; and • Q2 2026 SHOP NOI margin of 24.6% decreased 250 bps compared to the prior year period and increased 60 bps sequentially; • Same-Store (“SS”) SHOP • On a SS basis for 15 properties, SHOP revenue decreased 0.8% driven by a 3.8% increase in RevPOR offset by a 400-bps decline in occupancy to 85.8%; and • SS SHOP NOI decreased by 6.2% compared to the prior year period and increased 18.6% sequentially and the SS NOI margin declined by 150-basis points compared to the prior year period and increased 400 bps sequentially to 25.4%. Balance Sheet 1 • Net Debt to Adjusted EBITDA at an annualized 4.1x is within NHI’s updated target range of 3.5x – 4.5x; pro forma Net Debt to Adjusted EBITDA of 2.5x • Total liquidity of approximately $792 million at June 30, 2026, and pro forma liquidity of approximately $1.3 billion. Portfolio Activity • Announced 2026 year-to-date investments totaling $237.2 million including $212.4 million of SHOP investments; • Completed the sale of 35 properties to NHC for cash consideration of $560.0 million resulting in a net gain of approximately $541.6 million; • In addition to NHC, NHI completed 2026 year-to-date dispositions totaling $117.4 million of 6 properties at an average yield of 8.2%; • NHI has signed LOIs totaling $127.3 million and an incremental pipeline of $420.0 million focused on private pay senior housing; and Summary of Quarterly Financial Results 1 Key Operating and Balance Sheet Highlights (in thousands except per share and percentages) Q2 2025 Q1 2026 Q2 2026 Net Income per diluted share $0.79 $0.82 $1.15 NAREIT FFO per diluted share $1.19 $1.23 $1.19 Normalized FFO per share $1.22 $1.23 $1.19 Funds Available for Distribution (FAD) $55,957 $62,471 $61,620 Diluted shares outstanding 46,822 48,548 48,498 FAD Payout Ratio 76.3% 71.3% 73.3% SHOP NOI $3,821 $8,891 $11,022 SHOP NOI Margin 26.9% 24.0% 24.6% 1 Refer to Appendix for definitions and relevant non-GAAP reconciliations
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2026 Guidance 4 2026 Guidance Range 1 2026 Guidance Assumptions & Considerations NHI’s 2026 annual guidance includes the following assumptions: • $180.0 million in unidentified new investments; • Approximately $665 million in expected disposition proceeds in 2026 resulting in a gain ranging between $565.9 million - $566.3 million; • Continued fulfillment of existing commitments; • Same-Store SHOP NOI annual growth on 15 properties in a range of 1.0% - 3.0%; and • Total SHOP NOI on 42 properties, before the assumption for unidentified new SHOP investments ranging between $44.1 million - $45.1 million. In addition to the assumptions listed above, NHI’s guidance range is based on several other assumptions, many of which are outside the Company’s control and all of which are subject to change. The guidance range may change if actual results vary from these assumptions. 1 Refer to Appendix for definitions and relevant non-GAAP reconciliations 2 Net of amounts attributable to non-controlling interests 3 Includes credit loss expense, non-real estate depreciation, net, amortizations associated with debt facilities and participating securities (in millions except per share amounts) Low High Net income attributable to common stockholders $ 703.0 $ 705.2 Adjustments to NAREIT Funds From Operations (FFO) Depreciation (net) 2 94.4 95.0 Gains on sales and impairments of real estate (565.9) (566.3) Participating securities 0.8 1.0 NAREIT FFO 232.3 234.9 Adjustments to Normalized Funds From Operations (NFFO) Other - - NFFO 232.3 234.9 Adjustments to Funds Available for Distribution (FAD) Straight-line revenue and lease incentive amortizations, net 2 (0.1) (0.3) Equity method investment adjustments (1.7) (1.5) Equity method investment non-refundable fees received 1.6 1.8 Non-cash stock-based compensation 7.5 7.2 SHOP 2 and equity method investment recurring capital expenditures (4.0) (3.8) Other 2, 3 5.0 5.4 FAD $ 240.6 $ 243.7 Weighted average diluted common shares 49.0 49.0 NAREIT FFO per diluted common share $ 4.74 $ 4.79 NFFO per diluted common share $ 4.74 $ 4.79
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Investment Overview 5 Broad diversification across 33 states and 36 operating partners Triple-net lease structure provides stable cash flows and strong credit mitigates downside risk EBITDARM coverage trends continue to strengthen across asset classes Increasing concentration in private-pay senior housing enhances NHI’s valuation profile versus other healthcare real estate sectors Pro forma private pay senior housing annualized NOI 1 represents 79.4% of annualized NOI compared to 68.8% in Q12026 and 65.7% in Q2 2025 Expanded SHOP exposure strengthens long-term growth outlook Pro forma SHOP annualized NOI1 represents 15.3% of annualized NOI compared to 11.0% in Q1 2026 and 5.1% in Q2 2025 Strong balance sheet provides substantial acquisition capacity Pro forma liquidity and net debt to EBITDA 2 of approximately $1.3 billion and 2.6x, respectively Active investment pipeline supports continued expansion $420.0 million actionable pipeline and $127.3 million under LOI at an initial NOI yield of 6.8% Constrained supply environment supports pricing power and occupancy growth Inventory growth at approximately 0.5% versus 2.1% historic average New starts more than 60% below historic levels; construction at 2.2% of inventory (50% below historic average) Favorable demographic tailwinds 85+ population growth expected to accelerate significantly over the next 15 years Diversified Portfolio Limits Concentration Risk Significant Senior Housing Growth Opportunity Financial Strength Positions NHI for External Growth Strong Industry Dynamics Support Long Term Growth 3 1 See slide 6 for detail 2 See slide 8 for detail 3 University of Virginia’s Weldon Cooper Center for Public Service; National Investment Center for Senior Housing & Care (“NIC”); NIC data is from NICMAP Primary & Secondary markets through Q2 2026.
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Senior housing 60.0% Skilled nursing 15.8% Specialty hospital 1.9% SHOP 20.5% Other4 1.7% $3.62bn Investment2 Senior housing 60.2% Skilled nursing 11.9% Specialty hospital 2.0% SHOP 24.4% Other4 1.5% $3.50bn Investment3 Senior housing 57.8% Skilled nursing 27.4% Specialty hospital 2.0% SHOP 11.0% Other4 1.8% $322mm Adj. NOI2 Senior housing 64.1% Skilled nursing 16.5% Specialty hospital 2.3% SHOP 15.3% Other4 1.9% $289mm Adj. NOI3 Total Investment Annualized Adjusted NOI As of March 31, 2026 Jun 30, 2026 Pro Forma 3As of March 31, 2026 June 30, 2026 Pro Forma 3 Increased Private Pay Senior Housing Concentration 6 Capitalization Rates 1 Class A Class B Class C Core Markets Independent Living 6.1% 7.1% 7.7% Assisted Living 6.8% 7.8% 8.9% Memory Care 8.3% 9.3% 10.1% Skilled Nursing 11.0% 12.1% 12.8% Non-Core Markets Independent Living 6.8% 7.7% 8.4% Assisted Living 7.2% 8.4% 9.4% Memory Care 8.7% 9.7% 10.6% Skilled Nursing 11.7% 12.7% 13.3% 1 Source: CBRE U.S. Senior Housing & Care Investor Survey H2 2025. 2 As of March 31, 2026. Investment includes $3.4 billion in gross real estate and $0.2 million in mortgage notes and other n otes receivable, net of credit loss reserves. See Appendix for Adjusted NOI reconciliation. 3 Pro forma basis assumes transactions are annualized from June 30, 2026. Assumes sale of NHC properties with gross book val ue of $133.8 million and $40.3 million in annualized cash revenue. Assumes additional dispositions of 2 properties with gross book value of $27.8 million and $1.9 in annualized cash revenue. The timing and amount of the adjustments to these measures cannot be allocated or quantified with certainty and, accordingly, a r econciliation to the comparable GAAP financial measures is not available without unreasonable effort 4 Other consists primarily of investments in non- mortgage notes receivable. • Pro forma Senior Housing and SHOP Investment and adjusted NOI concentrations increase significantly to 84.6% of Total Investment and 79.4% of annualized adjusted NOI • Significant embedded organic growth upside in SHOP adjusted NOI driven by high single-digit to low double digit internal growth • Shift in concentration enhances NHI’s overall value proposition due to valuation disparity between private pay senior housing and SNF cap rates Private Pay Enhances Value Proposition
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2026 Investments: $237.2 million at an average initial yield of 7.74% Recent Investments and Pipeline Significant Pipeline Creates Pathway for External Growth Opportunities 7 (dollars in millions) 1 Represents contractual rent or interest / purchase price. SHOP yields are after routine capex. 2 Excludes first year expected capital investments of $3.6 million for Generations and $3.3 million for Allegro. 3 Investment funded partially with the satisfaction of a mortgage which contained a purchase option for NHI. 4 Property acquired in a deed in lieu of foreclosure transaction to satisfy the repayment of a $10.0 million mortgage note receivable. Investment History with New & Existing Relationships Pipeline: Approximately $420.0 million excluding several portfolio deals Signed LOIs: $127.3 million at an average NOI yield of 6.8% (6.5% after routine capex) 1 Date Tenant / Borrower Investment Type Yield 1 Investment 2 2Q 2026 Wingate Mortgage loan 8.00% $ 5.5 2Q 2026 Fellowship Senior Living Lease / Mtg Loan 8.05% 19.3 Q2 2026 Generations SHOP 7.80% 105.5 Q1 2026 Allegro Living Management SHOP 7.60% 106.9 YTD 2026 7.74% $ 237.2 Q4 2025 PLC Lease 8.00% $ 52.1 Q4 2025 Silver Wave Capital Mortgage loan 8.75% 11.3 Q4 2025 William James Group Lease 8.25% 7.0 Q4 2025 Fellowship Senior Living Mortgage loan 8.50% 18.8 Q4 2025 Senior Living Communities 3 Lease 8.25% 54.0 Q4 2025 Compass Senior Living SHOP 7.51% 74.3 Q2 2025 Encore Senior Living Construction loan 9.00% 28.0 Q2 2025 Agemark Senior Living Lease 8.00% 63.5 Q1 2025 Senior Living Hospitality Loan 9.00% 1.9 Q1 2025 Mainstay 4 Lease 8.00% 8.6 Q1 2025 Vizion Loan 9.15% 5.4 Q1 2025 Juniper Communities Lease 7.95% 46.3 Q1 2025 Generations Lease 8.00% 21.2 Total 2025 8.08% $ 392.4 6.0% 6.5% 7.0% 7.5% 8.0% 8.5% 9.0% 9.5% $- $50 $100 $150 $200 $250 $300 $350 $400 $450 $500 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 New Existing Yield
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Financial Strength Positions NHI for Potential Accretive External Growth 8 Pro Forma Liquidity 1 Cash and cash equivalents $ 30.4 Credit Facility Availability 422.0 Escrow funds for 1031 exchanges 334.0 ATM capacity___________________________________ 500.0 Total Liquidity $ 1,286.4 4.1x 2.5x Q2 2026 Pro Forma Net Debt to Annualized Adjusted EBITDA 2 Capacity for Future Capital Deployment Greatly Enhanced Amount Interest Fixed / Years to Financial Instrument Outstanding Rate Variable Maturity Maturity Revolver (Daily SOFR + 105) $ 278.0 4.68% Variable Oct-28 2.3 Senior Unsecured Notes due 2031 400.0 3.00% Fixed Feb-31 4.6 Senior Unsecured Notes due 2033 350.0 5.35% Fixed Feb-33 6.6 Total Debt $ 1,028.0 Weighted Average 4.25% 4.6 Pro Forma Debt Maturity 1 • On a pro forma basis, liquidity is estimated at approximately $1.3 billion which includes a $500.0 million At-the-Market (“ATM”) equity program • On a pro forma basis, net debt to annualized adjusted EBITDA is estimated to improve from 4.1x at June 30, 2026, to 2.5x which is well below the Company’s target range of 3.5x – 4.5x • On a pro forma basis, weighted average debt maturity increases to 4.6 years from 4.0 years with no maturities until 2028 1 Pro forma basis assumes transactions occurred on July 1, 2026. Assumes $221.0 million from NHC sale proceeds, $20.0 million escrowed for liquidated damages related to the NHC sale , and $19.0 million in disposition proceeds applied to revolving credit facility balance. Assumes $100.0 million private placement note paid off using the revolving credit facility. The $700.0 million revolving credit facility had a $438.0 million outstanding on June 30, 2026. 2 See Appendix for Q2 2026 net debt to adjusted EBITDA reconciliation. 3 Pro forma basis assumes transactions are annualized from June 30, 2026. Assumes $40.3 million in annualized NHC cash revenue and $1.9 million in annualized cash revenue from other dispositions. The timing and amount of the adjustments to these measures cannot be allocated or quantified with certainty and, accordingly, a reconciliation to the comparable GAAP financial measures is not available without unreasonable effort 3 (dollars in millions)
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Diversified Portfolio Across the Senior Housing Care Continuum 9 Geographically Diverse Portfolio Spans the Senior Housing Care Continuum1 2 SPECIALTY HOSPITAL 117 SENIOR HOUSING 33 SKILLED NURSING 42 SHOP 194 Properties 36 Operating Partners 33 States Portfolio Overview Senior housing 60.2% Skilled nursing 11.9% Specialty hospital 2.0% SHOP 24.4% Other2 1.5% $3.5bn Investment1 1 Data as of 6/30/26 and excludes assets held for sale. Investment includes $3.3 million in gross real estate and $0.2 million in mortgages and other notes receivable, net of credit loss reserves 2 Other consists primarily of investments in non-mortgage notes receivable Portfolio Properties Units Senior Housing Triple-net & Mortgage 117 9,678 Skilled Nursing Triple-net & Mortgage 33 4,056 Specialty Hospital Triple-net & Mortgage 2 107 Senior Housing Operating (“SHOP”) 42 4,001 Total 194 17,842 NHI’s portfolio spans the entire senior care continuum including discretionary senior housing, needs-driven senior housing, and skilled nursing and specialty hospitals. The portfolio is well diversified across asset class and product type with limited concentration risk to tenants or geography.
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Asset Diversification Creates Stronger Portfolio 10 The Senior Housing – Need Driven portfolio has experienced significant coverage improvement since the start of the portfolio optimization in 2021. The SNF/Medical and Discretionary (largely CCRC) portfolios which generate 45% of annualized adjusted NOI have proven resilient throughout. Coverage represents EBITDARM coverage for the TTM period ending in the period specified. 0.60x 0.80x 1.00x 1.20x 1.40x 1.60x 1.80x 1Q 2021 2Q 2021 3Q 2021 4Q 2021 1Q 2022 2Q 2022 3Q 2022 4Q 2022 1Q 2023 2Q 2023 3Q 2023 4Q 2023 1Q 2024 2Q 2024 3Q 2024 4Q 2024 1Q 2025 2Q 2025 3Q 2025 4Q 2025 1Q 2026 Senior Housing - Need Driven Bickford Need Driven ex. Bickford 0.60x 1.10x 1.60x 2.10x 2.60x 3.10x 1Q 2021 2Q 2021 3Q 2021 4Q 2021 1Q 2022 2Q 2022 3Q 2022 4Q 2022 1Q 2023 2Q 2023 3Q 2023 4Q 2023 1Q 2024 2Q 2024 3Q 2024 4Q 2024 1Q 2025 2Q 2025 3Q 2025 4Q 2025 1Q 2026 Senior Housing - Discretionary SNF/Medical
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5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 45,000 1Q2008 3Q2008 1Q2009 3Q2009 1Q2010 3Q2010 1Q2011 3Q2011 1Q2012 3Q2012 1Q2013 3Q2013 1Q2014 3Q2014 1Q2015 3Q2015 1Q2016 3Q2016 1Q2017 3Q2017 1Q2018 3Q2018 1Q2019 3Q2019 1Q2020 3Q2020 1Q2021 3Q2021 1Q2022 3Q2022 1Q2023 3Q2023 1Q2024 3Q2024 1Q2025 3Q2025 1Q2026 Senior Housing: Rolling 4-Quarter Units Started Favorable Industry Dynamics: A Pathway For Long Term Growth 11 Supply Growth is Slowing Inventory growth of 0.5% across the care continuum is at an historic low Rolling 4-Quarter units started in Q2 2026 were 62% below the historical average Source: National Investment Center for Senior Housing & Care (“NIC”); data is from NICMAP Primary & Secondary markets throug h Q2 2026. 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 1Q2009 3Q2009 1Q2010 3Q2010 1Q2011 3Q2011 1Q2012 3Q2012 1Q2013 3Q2013 1Q2014 3Q2014 1Q2015 3Q2015 1Q2016 3Q2016 1Q2017 3Q2017 1Q2018 3Q2018 1Q2019 3Q2019 1Q2020 3Q2020 1Q2021 3Q2021 1Q2022 3Q2022 1Q2023 3Q2023 1Q2024 3Q2024 1Q2025 3Q2025 1Q2026 Inventory Growth Senior Housing Independent Living Assisted Living
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5.7 6.3 7.6 10.8 2010 2020 2030E 2040E U.S. 85+ Population (in millions) Favorable Industry Dynamics: A Pathway For Long Term Growth 12 Source: University of Virginia’s Weldon Cooper Center for Public Service; National Investment Center for Senior Housing & Ca re (“NIC”); NIC data is from NICMAP Primary & Secondary markets through Q2 2026. The 85+ population growth is expected to accelerate to 1.9% by 2030 and 3.5% in the following decade Absorption remains well above historic averages resulting in the highest ever number of occupied senior housing units Demand Growth is Surging -10.0% -8.0% -6.0% -4.0% -2.0% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 1Q2009 3Q2009 1Q2010 3Q2010 1Q2011 3Q2011 1Q2012 3Q2012 1Q2013 3Q2013 1Q2014 3Q2014 1Q2015 3Q2015 1Q2016 3Q2016 1Q2017 3Q2017 1Q2018 3Q2018 1Q2019 3Q2019 1Q2020 3Q2020 1Q2021 3Q2021 1Q2022 3Q2022 1Q2023 3Q2023 1Q2024 3Q2024 1Q2025 3Q2025 1Q2026 Absorption Senior Housing Independent Living Assisted Living
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Appendix: Definitions 13 ADJUSTED EBITDA & EBITDARM NHI considers Adjusted EBITDA to be an important supplemental measure because it provides information which is used to evaluate the Company’s performance and serves as an indication of the ability to service debt. NHI defines Adjusted EBITDA as consolidated earnings before interest, taxes, depreciation and amortization, including amounts in discontinued operations, excluding real estate asset impairments and gains on dispositions and certain items which, due to their infrequent or unpredictable nature, may create some difficulty in comparing Adjusted EBITDA for the current period to similar prior periods, and may include, but are not limited to, impairment of non-real estate assets, gains and losses attributable to the acquisition and disposition of assets and liabilities, and recoveries of previous write- downs. Adjusted EBITDA also includes NHI’s proportionate share of unconsolidated equity method investments presented on a similar basis. Since others may not use the Company’s definition of Adjusted EBITDA, caution should be exercised when comparing NHI’s Adjusted EBITDA to that of other companies. EBITDARM is earnings before interest, taxes, depreciation, amortization, rent and management fees. ADJUSTED NET OPERATING INCOME Adjusted net operating income (“Adjusted NOI”) is a non-U.S. GAAP supplemental financial measure used to evaluate the operating performance of real estate. We define Adjusted NOI as total revenues, less straight-line revenue, less corporate interest income, less tenant reimbursements and property operating expenses, and adjusted for non-cash revenue items including, but not limited to, amortization of commitment fees, deferred financing costs and original issue discounts and lease incentive amortization. We believe Adjusted NOI provides investors relevant and useful information as it measures the operating performance of our properties at the property level on an unleveraged basis. We use adjusted NOI to make decisions about resource allocations and to assess the property level performance of our properties. FAD PAYOUT RATIO The Funds Available for Distribution (FAD) payout ratio is a metric used in the REIT (Real Estate Investment Trust) industry to gauge the percentage of FAD that a company distributes to shareholders as dividends. The FAD payout ratio is calculated by dividing the Company’s accrued dividends payable to common stockholders by its FAD for the period indicated. NET OPERATING INCOME Net operating income (“NOI”) is a non-U.S. GAAP supplemental financial measure used to evaluate the operating performance of real estate. NHI defines NOI as total revenues, less tenant reimbursements and property operating expenses. The Company believes NOI provides investors relevant and useful information as it measures the operating performance of properties at the property level on an unleveraged basis. NHI uses NOI to make decisions about resource allocations and to assess the property level performance of our properties. NAREIT FUNDS FROM OPERATIONS (FFO) FFO per share, as defined by the National Association of Real Estate Investment Trusts (NAREIT) and applied by us, is calculated using the two-class method with net income allocated to common stockholders and holders of unvested restricted stock by applying the respective weighted-average shares outstanding during each period. The calculation of FFO begins with net income attributable to common stockholders (computed in accordance with GAAP) and excludes gains (or losses) from sales of real estate property, impairments of real estate, and real estate depreciation and amortization after adjusting for unconsolidated partnerships and joint ventures, if any. Diluted FFO per share assumes the exercise of stock options and other potentially dilutive securities.
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Appendix: Definitions 14 NAREIT FUNDS FROM OPERATIONS (FFO) FFO per share, as defined by the National Association of Real Estate Investment Trusts (NAREIT) and applied by us, is calculated using the two-class method with net income allocated to common stockholders and holders of unvested restricted stock by applying the respective weighted-average shares outstanding during each period. The calculation of FFO begins with net income attributable to common stockholders (computed in accordance with GAAP) and excludes gains (or losses) from sales of real estate property, impairments of real estate, and real estate depreciation and amortization after adjusting for unconsolidated partnerships and joint ventures, if any. Diluted FFO per share assumes the exercise of stock options and other potentially dilutive securities. NORMALIZED FUNDS FROM OPERATIONS (NORMALIZED FFO) Normalized FFO excludes from FFO certain items which, due to their infrequent or unpredictable nature, may create some difficulty in comparing FFO for the current period to similar prior periods, and may include, but are not limited to, impairment of non-real estate assets, gains and losses attributable to the acquisition and disposition of non-real estate assets and liabilities, and recoveries of previous write-downs. FFO and Normalized FFO are important supplemental measures of operating performance for a REIT. Because the historical cost accounting convention used for real estate assets requires depreciation (except on land), such accounting presentation implies that the value of real estate assets diminishes predictably over time. Since real estate values instead have historically risen and fallen with market conditions, presentations of operating results for a REIT that uses historical cost accounting for depreciation could be less informative and should be supplemented with a measure such as FFO. The term FFO was designed by the REIT industry to address this issue. NORMALIZED FUNDS AVAILABLE FOR DISTRIBUTION (FAD) Normalized FAD is an important supplemental performance measure for a REIT. GAAP requires a lessor to recognize contractual lease payments into income on a straight-line basis over the expected term of the lease. This straight-line adjustment has the effect of reporting lease income that is significantly more or less than the contractual cash flows received pursuant to the terms of the lease agreement. GAAP also requires the original issue discount of our senior unsecured notes and debt issuance costs to be amortized as non-cash adjustments to earnings. We also adjust Normalized FAD for the net change in our allowance for expected credit losses, non-cash stock-based compensation, SHOP recurring capital expenditures as well as certain noncash items related to our equity method investments such as straight-line lease expense and amortization of purchase accounting adjustments. Normalized FAD is an important supplemental measure of liquidity for a REIT as a useful indicator of the ability to distribute dividends to stockholders. OCCUPANCY Occupancy is the average percentage of all units in our SHOP segment that are occupied during the time period described. NHI defines occupancy as the average number of units occupied in any given time period divided by the total number of available units. RETURN ON INVESTED CAPITAL (ROIC) ROIC is a performance metric that intends to measure the percentage return earned on capital invested by a company. NHI calculates ROIC as TTM Normalized FAD plus contractual interest divided by the average of total assets plus accumulated deprecation less straight-line rent receivable over the TTM period. RevPOR RevPOR is the average monthly revenue generated by occupied units in the SHOP segment. NHI defines RevPOR as monthly resident fees and services revenue divided the number of monthly occupied units for the period presented.
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Appendix: Definitions 15 Same-Store (SS) We define Same-Store as properties owned, consolidated and operational for the full period in both comparison periods and that are not otherwise excluded; provided, however, that we may include selected properties that otherwise meet the Same-Store criteria if they are included in substantially all of, but not a full, period for one or both of the comparison periods, and in our judgment such inclusion provides a more meaningful presentation of our segment performance. Newly acquired properties, recently developed or redeveloped properties, and properties undergoing operator transitions in our SHOP reportable business segment will be included in Same-Store after five full quarters from the date of acquisition, transition, or being placed into service. Our SHOP and NNN that have undergone operator or business model transitions will be included in Same-Store once operating under consistent operating structures for the full period in both periods presented. Properties are excluded from Same-Store if they are: (i) sold, classified as held for sale or properties whose operations were classified as discontinued operations in accordance with GAAP; (ii) impacted by significant disruptive events such as flood or fire; (iii) those properties that are currently undergoing a significant disruptive redevelopment; or (iv) those properties that are scheduled to undergo operator or business model transitions, or have transitioned operators or business models after the start of the prior comparison period.
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Reconciliations: FFO, Normalized FFO, Normalized FAD 16 (unaudited, $ in thousands, except share and per share amounts) Q2 2026 Q2 2025 Q1 2026 Net income attributable to common stockholders $55,576 $36,938 $40,024 Elimination of certain non-cash items in net income: Real estate depreciation 24,583 19,477 22,832 Real estate depreciation related to noncontrolling interests (404) (414) (402) Allocation to unvested restricted stock (4) - (20) Gains on sales of real estate, net _______(21,967) _______(110) _____(2,612) NAREIT FFO attributable to common stockholders 57,784 55,891 59,822 Proxy contest and related - _______1,308 __ - Normalized FFO attributable to common stockholders 57,784 57,199 59,822 Non-cash lease revenue adjustments, net 90 (459) (149) Non-real estate depreciation, net 888 377 785 Amortization of debt issuance costs and discounts, net 854 940 854 Adjustments related to equity method investments, net (324) (1,907) (399) Recurring capital expenditures, net (1,198) (494) (782) Equity method investment non-refundable entrance fees 500 623 127 Allocation to unvested restricted stock (7) - (4) Note receivable credit loss expense (benefit) (59) (1,393) (50) Deferred income taxes 732 - Non-cash stock-based compensation _________2,360 _______1,071 ______2,240 Normalized FAD attributable to common stockholders $61,620 $55,957 $62,444 BASIC Weighted average common shares outstanding 48,435,914 46,691,953 48,323,945 NAREIT FFO attributable to common stockholders per share $1.19 $1.20 $1.24 Normalized FFO attributable to common stockholders per share $1.19 $1.23 $1.24 DILUTED Weighted average common shares outstanding 48,498,181 46,822,465 48,547,893 NAREIT FFO attributable to common stockholders per share $1.19 $1.19 $1.23 Normalized FFO attributable to common stockholders per share $1.19 $1.22 $1.23 Dividends excluding dividends on unvested restricted shares $45,140 $42,677 $44,532 Normalized FAD payout ratio 73.3% 76.3% 71.3%
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Reconciliations: Net Operating Income & Adjusted NOI 17 Three Months Ended June 30, (unaudited, dollars in thousands) 2026 2025 Net Income $ 55,357 $ 36,689 Interest 15,814 15,001 Gains on sales of real estate (21,967) (110) Franchise, excise and other taxes 213 243 Legal 445 1,095 Loan and realty gains (losses) (59) (1,393) General and administrative 8,823 6,125 Depreciation 25,548 19,918 Gain (loss) from equity methd investment - (1,524) Proxy and related - 1,308 Deferred income taxes 732 - Other Income (86) - Consolidated NOI 84,820 77,352 Straight-line revenue (597) (1,034) Amortization of lease incentives 840 725 Amortization of commitment fees and discounts (158) (121) Non-segment/Corporate ___________- (35) Adjusted NOI $ 84,905 $ 76,887
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Reconciliations: SHOP NOI & Same - Store SHOP NOI 18 Total SHOP Q2 2025 Q1 2026 Q2 2026 Total revenues $ 14,217 $ 37,060 $ 44,779 Labor (4,324) (14,699) (18,297) Dietary (1,104) (2,233) (2,667) Utilities (940) (2,471) (2,277) Taxes and insurance (1,413) (2,897) (3,100) Management fees - (1,946) (2,172) Other senior housing operating expenses (2,615) (3,923) (5,244) NOI 3,821 8,891 11,022 Depreciation (2,811) (7,114) (9,192) Net income (loss) $ 1,010 $ 1,777 $ 1,830 Units 1,732 3,469 4,001 Occupancy 89.1% 86.6% 85.9% Average occupied units 1,543 3,004 3,437 RevPOR $3,071 $4,303 $4,543 NOI Margin 26.9% 24.0% 24.6% Same-Store SHOP Q2 2025 Q1 2026 Q2 2026 Total revenues $ 14,217 $ 14,054 $ 44,779 Labor (4,324) (4,467) (18,297) Dietary (1,104) (1,035) (2,667) Utilities (940) (1,129) (2,277) Taxes and insurance (1,413) (1,551) (3,100) Management fees - (710) (2,172) Other senior housing operating expenses (2,615) (2,150) (5,244) NOI 3,821 3,012 11,022 Depreciation (2,811) (2,984) (9,192) Net income (loss) $ 1,010 $ 28 $ 1,830 Units 1,732 1,732 4,001 Occupancy 89.1% 85.8% 85.9% Average occupied units 1,543 1,487 3,437 RevPOR $3,071 $3,151 $4,543 NOI Margin 26.9% 21.4% 24.6%
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Reconciliations: Adjusted EBITDA 19 Three Months Ended June 30, (unaudited, dollars in thousands) 2026 2025 Net income $ 55,357 $ 36,689 Interest expense 15,814 15,001 Franchise, excise, and other taxes 213 243 Depreciation 25,548 19,918 Gains on sales of real estate, net (21,967) (110) Notes receivable credit loss (benefit) expense (59) (1,393) Deferred income taxes 732 - Adjusted EBITDA 75,638 70,348 Interest expense at contractual rates 14,954 14,062 Principal payments - 110 Fixed Charges $ 14,954 $ 14,172 Fixed Charge Coverage 5.1x 5.0x Net Debt to Adjusted EBITDA Consolidated Total Debt $ 1,274,522 Less: cash and cash equivalents (30,388) Consolidated Net Debt 1,244,134 Adjusted EBITDA 75,638 Annualizing Adjustment 226,914 Annualized impact of recent investments 1,216 $ 303,768 Consolidated Net Debt to Adjusted EBITDA 4.1x
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Return on Invested Capital 20 Refer to Appendix for definitions and relevant non-GAAP reconciliations. Return on Invested Capital 8.33% 8.27% 8.16% 8.04% 7.92% 7.69% 7.53% 7.30% 7.16% 7.47% 7.58% 7.72% 7.80% 7.65% 7.81% 7.94% 8.05% 8.28% 8.29% 8.34% 8.27% 8.25% 8.45% 8.38% 8.41% 8.51% 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 1Q25 2Q25 3Q25 4Q25 1Q26 2Q26
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Reconciliations: ROIC 21 (dollars in thousands) 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 Total Assets $ 3,166,971 $ 3,139,273 $ 3,120,346 $ 3,183,273 $ 3,077,445 $ 2,912,177 $ 2,838,876 $ 2,802,503 $ 2,587,291 $ 2,508,785 $ 2,507,424 $ 2,533,230 Add: Accumulated Depreciation 555,762 576,605 597,638 618,299 622,943 593,215 576,668 582,175 593,036 599,423 611,688 625,743 Less: Straight-line Receivable (89,090) (92,418) (95,703) (98,354) (97,723) (99,895) (96,198) (94,739) (79,697) (81,959) (76,895) (79,103) Invested Capital $ 3,633,643 $ 3,623,460 $ 3,622,281 $ 3,703,218 $ 3,602,665 $ 3,405,497 $ 3,319,346 $ 3,289,939 $ 3,100,630 $ 3,026,249 $ 3,042,217 $ 3,079,870 Normalized FAD $ 60,925 $ 60,270 $ 59,003 $ 59,551 $ 52,839 $ 51,173 $ 45,911 $ 52,669 $ 56,279 $ 47,378 $ 44,712 $ 47,739 Add: Contractual Interest 12,832 11,907 11,537 12,230 12,188 12,085 11,668 9,558 10,262 10,821 11,847 13,440 FAD before contractual interest $ 73,757 $ 72,177 $ 70,540 $ 71,781 $ 65,027 $ 63,258 $ 57,579 $ 62,227 $ 66,541 $ 58,199 $ 56,559 $ 61,179 TTM Invested Capital $ 3,511,852 $ 3,555,284 $ 3,593,428 $ 3,639,943 $ 3,637,053 $ 3,591,424 $ 3,530,601 $ 3,464,133 $ 3,343,616 $ 3,228,332 $ 3,155,676 $ 3,107,781 TTM Normalized FAD plus contractual interest $ 290,548 $ 290,094 $ 289,023 $ 288,256 $ 279,525 $ 270,606 $ 257,645 $ 248,091 $ 249,605 $ 244,546 $ 243,526 $ 242,479 Return on Invested Capital 8.27% 8.16% 8.04% 7.92% 7.69% 7.53% 7.30% 7.16% 7.47% 7.58% 7.72% 7.80% (dollars in thousands) 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 1Q25 2Q25 3Q25 4Q25 1Q26 2Q26 Total Assets $ 2,498,495 $ 2,499,090 $ 2,488,480 $ 2,478,125 $ 2,476,912 $ 2,460,090 $ 2,614,371 $ 2,782,885 $ 2,695,959 $ 2,690,064 $ 2,796,887 $ 2,889,865 $ 2,964,202 Add: Accumulated Depreciation 638,631 656,155 673,276 690,790 705,829 723,606 742,295 761,462 781,390 801,614 821,982 843,828 716,370 Less: Straight-line Receivable (82,295) (83,549) (84,713) (84,257) (85,321) (86,334) (87,150) (88,311) (89,097) (77,906) (78,891) (79,303) (74,997)) Invested Capital $ 3,054,831 $ 3,071,696 $ 3,077,043 $ 3,084,659 $ 3,097,420 $ 3,097,362 $ 3,269,516 $ 3,456,036 $ 3,388,251 $ 3,413,772 $ 3,539,978 $ 3,654,389 $ 3,605,575 Normalized FAD $ 44,586 $ 48,171 $ 47,347 $ 50,975 $ 51,780 $ 49,383 $ 52,071 $ 56,001 $ 55,957 $ 62,248 $ 57,943 $ 62,741 $ 61,620 Add: Contractual Interest 13,612 14,387 14,164 14,088 14,028 14,129 14,066 13,359 14,062 13,108 13,412 14,186 14,956 FAD before contractual interest $ 58,198 $ 62,558 $ 61,511 $ 65,063 $ 65,808 $ 63,512 $ 66,137 $ 69,360 $ 70,019 $ 75,356 $ 71,355 $ 76,657 $ 76,576 TTM Average Invested Capital $ 3,060,759 $ 3,054,973 $ 3,065,131 $ 3,073,620 $ 3,077,130 $ 3,085,636 $ 3,125,200 $ 3,200,999 $ 3,261,717 $ 3,324,987 $ 3,413,511 $ 3,490,485 $ 3,520,393 TTM Normalized FAD plus contractual interest $ 234,136 $ 238,495 $ 243,447 $ 247,329 $ 254,939 $ 255,893 $ 260,518 $ 264,815 $ 269,028 $ 280,872 $ 286,090 $ 293,387 $ 299,944 Return on Invested Capital 7.65% 7.81% 7.94% 8.05% 8.28% 8.29% 8.34% 8.27% 8.25% 8.45% 8.38% 8.41% 8.52%