National Health Investors, Inc. — Third Quarter 2026 Earnings Summary

Financial Performance:

• Net income attributable to common stockholders per diluted share was $11.47 for the quarter ended September 30, 2026, compared to $0.69 in the prior year period.
• Net income attributable to common stockholders per diluted share was $13.52 for the nine months ended September 30, 2026, compared to $2.22 in the prior year period.
• NAREIT Funds From Operations (FFO) per diluted share increased 2.8% to $1.12 for the quarter and 3.5% to $3.54 for the nine months ended September 30, 2026, compared to the prior year periods.
• Normalized FFO per diluted share decreased 15.2% to $1.12 for the quarter and 4.1% to $3.54 for the nine months ended September 30, 2026, compared to the prior year periods.
• Normalized Funds Available for Distribution (FAD) decreased $5.1 million to $57.1 million for the quarter and increased $7.0 million to $181.2 million for the nine months ended September 30, 2026, compared to the prior year periods.
• The Company recognized a $541.6 million gain on the sale of the National Healthcare Corporation (NHC) leased portfolio completed on July 1, 2026.
• Total gains on dispositions of real estate properties for the nine months ended September 30, 2026, were $567.5 million.
• Rental income decreased $1.5 million (2.5%) for the quarter, primarily due to an $11.8 million decrease from 42 dispositions and a $6.0 million decrease from seven properties transitioned to the SHOP segment.
• Resident fees and services, less senior housing operating expenses, increased $6.6 million for the quarter, primarily due to the acquisition of 20 properties in the SHOP segment.
• Depreciation and amortization increased $5.5 million (27.4%) for the quarter, driven by $6.2 million from properties acquired after July 1, 2025.
• Interest expense decreased $1.2 million (9.0%) for the quarter, offset by a $4.5 million increase from 2033 Senior Notes issued in September 2025.
• Loan and realty losses, net, were $9.7 million for the quarter, including $9.9 million of impairment on a property in the Real Estate Investments segment.
• Consolidated net debt was $1.0 billion as of September 30, 2026, with a net debt to annualized adjusted EBITDA ratio of 3.6x.
• The Company held $46.6 million in cash and cash equivalents, $231.7 million in restricted cash, and $108.3 million in deposits for future acquisitions as of September 30, 2026.

Guidance and Future Outlook:

• The 2026 full-year guidance range for Net income attributable to common stockholders is $687.0 million to $687.6 million.
• The 2026 full-year guidance range for NAREIT FFO attributable to common stockholders is $228.5 million to $229.2 million.
• The 2026 full-year guidance range for Normalized FFO attributable to common stockholders is $228.5 million to $229.2 million.
• The 2026 full-year guidance range for FAD attributable to common stockholders is $236.6 million to $237.7 million.
• The 2026 full-year guidance range for NAREIT FFO per diluted share is $4.68 to $4.70.
• The 2026 full-year guidance range for Normalized FFO per diluted share is $4.68 to $4.70.
• Guidance assumptions include $190 million in unidentified new investments and continued fulfillment of existing commitments.
• Same Store SHOP NOI growth is projected at 1% - 3% for 15 properties and 0% - 1% for 26 properties in Q4 2026 compared to Q4 2025.
• Total SHOP NOI is projected to be between $43.8 million and $44.3 million for 2026, including $1.8 million from an October 1, 2026 acquisition.

Business Segments and Product Lines:

• The SHOP segment NOI was $11.5 million for the quarter and $31.4 million for the nine months ended September 30, 2026, compared to $4.9 million and $11.8 million, respectively, in the prior year periods.
• The Real Estate Investments segment NOI was $63.0 million for the quarter and $212.1 million for the nine months ended September 30, 2026, compared to $66.1 million and $212.1 million, respectively, in the prior year periods.
• In July 2026, the Company sold its portfolio of 35 properties leased to NHC/OP, L.P., recognized $560.0 million in cash consideration, and a $541.6 million gain.
• In July 2026, the Company sold two skilled nursing facilities in Texas for $18.9 million, recognizing a $1.5 million gain.
• In October 2026, the Company acquired a portfolio of six senior housing communities in Kentucky, Michigan, and Tennessee for $107.7 million, including $1.2 million in closing costs.
• In October 2026, the Company purchased an assisted living facility in Michigan from Bickford for $16.8 million, with a lease rate of 8.70% expiring in May 2033.
• In October 2026, the Company purchased an inpatient rehabilitation hospital in Florida from The Sanders Trust, LLC for $34.6 million, with a lease rate of 8.25% expiring in October 2046.
• In November 2026, the Company sold an assisted living facility in Illinois for $3.3 million.
• The Company closed more than $395 million in investments year-to-date.
• The Company has approximately $285.3 million of investment opportunities under signed Letters of Intent with an expected average initial NOI yield of approximately 6.5%.
• The Company is evaluating a pipeline of approximately $400 million of investments, excluding portfolio deals.

Market and Competitive Landscape:

• The Company maintains investment grade credit ratings from Moody's, S&P Global, and Fitch Ratings.
• The Company's focus remains on disciplined capital allocation and stronger operating execution to translate growth into long-term value for stockholders.
• The Company operates through two reportable segments: Real Estate Investments and SHOP.

Risks and Challenges:

• Normalized FFO for the quarter and nine months ended September 30, 2026, included $1.1 million of transaction costs related to acquisitions the Company stopped pursuing.
• Legal expense of $1.1 million in the quarter consisted primarily of costs incurred for a large transaction in the SHOP segment which the Company is no longer pursuing.
• The Company recognized $9.9 million of impairment to a real estate property from the Real Estate Investments segment which was reclassified to assets held for sale in the current quarter.
• Guidance assumptions include several factors outside the Company's control, and the guidance range may change if actual results vary from these assumptions.

Management Commentary and Tone:

• CEO Eric Mendelsohn stated that SHOP and private-pay senior housing remain central to the long-term growth strategy.
• Management has invested in the executive team to strengthen operating execution and improve portfolio performance.
• The strengthened team has developed a focused plan to address underperformance and position the portfolio for sustainable NOI growth consistent with underwriting standards.
• The Company's activity reflects continued confidence in private-pay senior housing and the ability to source attractive opportunities.

Other Key Points:

• On November 6, 2026, the Board of Directors declared a $0.94 per share dividend payable on January 29, 2027, to common stockholders of record as of December 31, 2026.
• The Company has $500.0 million available under its ATM equity program as of September 30, 2026.
• The Company sold a total of 42 real estate properties from the Real Estate Investments segment during the nine months ended September 30, 2026, for aggregate net proceeds of $672.1 million.
• The Company acquired 20 properties in the SHOP segment since the fourth quarter of 2025.
• The Company is in compliance with all debt covenants as of September 30, 2026.