Based on the provided financial report, the title of the article is: "Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Executive Overview

National Health Investors, Inc. (NHI) is a real estate investment trust (REIT) that specializes in investing in senior housing and medical facilities. The company operates through two main segments: Real Estate Investments and Senior Housing Operating Portfolio (SHOP).

The Real Estate Investments segment consists of properties leased to operators under triple-net leases. These include independent living facilities (ILFs), assisted living facilities (ALFs), entrance-fee communities (EFCs), senior living campuses (SLCs), skilled nursing facilities (SNFs), and hospitals. NHI also provides mortgage and other notes receivable financing to these types of properties.

The SHOP segment includes two ventures that own the operations of 15 ILFs, which are managed by third-party operators on behalf of NHI.

Real Estate Investments

As of March 31, 2025, NHI had investments in 190 real estate properties and $278.7 million in mortgage and other notes receivable across 32 states. The portfolio is divided into senior housing (need-driven and discretionary) and medical facilities.

Senior Housing - Need-Driven

• Includes ALFs and SLCs that primarily serve residents requiring assistance with daily living activities.
• These properties are subject to regulatory oversight.

Senior Housing - Discretionary

• Includes ILFs and EFCs that primarily serve residents making lifestyle choices to live in age-restricted communities.
• These properties have limited regulatory oversight and are more correlated with the strength of the housing market.

Medical Facilities

• Includes SNFs and hospitals that primarily serve patients requiring acute, complex, or rehabilitation medical care.
• These properties are subject to state and federal regulatory oversight.

Senior Housing Operating Portfolio (SHOP) The SHOP segment consists of 15 ILFs located in 8 states, with a total of 1,732 units. These properties are operated by third-party managers on behalf of NHI.

Portfolio Summary

• Real Estate Properties: 175 properties, $2.66 billion gross investment
• Mortgage and Other Notes Receivable: 15 notes, $278.7 million
• SHOP: 15 properties, $359.8 million

The portfolio is diversified across different operator types, with the majority (62.6%) leased to regional operators.

Geographic Concentration NHI’s portfolio is geographically diversified, with the top 5 states by net operating income (NOI) being South Carolina, Texas, Florida, North Carolina, and Tennessee.

Tenant Concentration NHI’s top tenants by revenue are Senior Living, NHC, and Bickford Senior Living, which collectively account for 39% of total revenues.

Critical Accounting Policies and Estimates There have been no significant changes to NHI’s critical accounting policies and estimates from the prior year.

Investment Activity In the first quarter of 2025, NHI acquired three senior housing properties for a total of $76.1 million. The company also amended a mezzanine loan agreement with Vizion Health, providing an additional $5.3 million in funding.

In the second quarter of 2025, NHI acquired a portfolio of six memory care communities for $63.5 million and entered into a $28.0 million construction loan for an 84-unit assisted living and memory care facility.

Impairments of Long-Lived Assets NHI did not recognize any impairment charges during the first quarter of 2025. The company leases a senior living campus that is subject to a purchase and sale agreement, which is classified as held and used.

Tenant Performance and Concentration NHI monitors the performance of its tenants through various metrics, including EBITDARM (earnings before interest, taxes, depreciation, amortization, rent, and management fees) coverage ratios. The company has identified two tenants, including Bickford Senior Living, that are on the cash basis of accounting due to concerns about their financial condition.

Liquidity and Capital Resources As of March 31, 2025, NHI had $252.8 million available on its $700.0 million credit facility, $135.0 million in unrestricted cash, and the ability to access $68.9 million through ATM forward sale agreements and $409.0 million through its at-the-market (ATM) equity program.

NHI’s primary sources of cash include rent payments, resident fees, principal and interest payments on mortgage and other notes receivable, property sales, and equity and debt offerings. The company’s primary uses of cash include debt service, new investments, dividend payments, and operating expenses.

Debt Obligations As of March 31, 2025, NHI had $1.3 billion in outstanding net debt, including:

• $700.0 million unsecured revolving credit facility
• $200.0 million term loan
• $400.0 million in 2031 senior notes
• $75.7 million in Fannie Mae term loans

NHI’s credit facility and term loan bear interest at variable rates based on SOFR, with margins determined by the company’s credit ratings. The company’s fixed charge coverage ratio was 5.1x, and its consolidated net debt to Annualized Adjusted EBITDA ratio was 4.1x as of March 31, 2025.

Equity As of March 31, 2025, NHI had 46.7 million shares of common stock outstanding, with a market value of $3.4 billion. The company’s Board of Directors has historically maintained a strong balance sheet and intends to continue making investments that meet its underwriting criteria and generate sufficient returns.

NHI has an automatic shelf registration statement and an at-the-market (ATM) equity program that allow the company to raise capital through the issuance of common stock. During the first quarter of 2025, NHI settled the remaining shares under its August 2024 forward equity sale agreement and entered into new ATM forward sale agreements.

Results of Operations For the three months ended March 31, 2025, NHI’s total revenues increased by 9.5% compared to the same period in 2024, primarily due to new investments and higher rental income. Expenses increased by 9.6%, driven by higher depreciation, legal fees, and other expenses.

Net income attributable to common stockholders increased by 10.4% to $34.1 million, reflecting the growth in the company’s portfolio and operations.

Funds from Operations (FFO) and Funds Available for Distribution (FAD) NHI’s Normalized FFO per diluted common share increased by 2.7% for the three months ended March 31, 2025, compared to the same period in 2024. Normalized FAD, which adjusts for non-cash items and other factors, increased by 9.9% over the same period.

Adjusted EBITDA NHI’s Adjusted EBITDA, a measure of the company’s ability to service its debt, was $68.1 million for the three months ended March 31, 2025, resulting in a fixed charge coverage ratio of 5.1x.

Net Operating Income (NOI) NHI’s consolidated NOI, which measures the operating performance of its real estate properties, was $75.6 million for the three months ended March 31, 2025, an increase of 10.4% compared to the same period in 2024.

Risks and Uncertainties NHI’s financial report outlines a number of risks and uncertainties the company faces, including:

• Risks associated with its investments in Timber Ridge OpCo, LLC
• Inflation and increased interest rates
• Adverse developments affecting the financial services industry
• Adverse geopolitical developments
• Operational risks with its SHOP properties
• Cybersecurity incidents and data breaches
• Environmental liabilities
• Risks from natural disasters and climate change
• Competition for acquisitions
• Reliance on external sources of capital
• Risks related to maintaining REIT status

Outlook NHI’s financial report demonstrates the company’s continued growth and diversification of its real estate portfolio and financing activities. The company’s strong liquidity position, conservative leverage, and disciplined investment approach position it to navigate the various risks and uncertainties facing the healthcare real estate sector.

However, NHI’s reliance on the financial performance of its tenants and operators, as well as the potential impact of macroeconomic factors like inflation and interest rates, remain key areas of focus. The company’s ability to maintain its REIT status and generate sufficient cash flow to fund dividends are also critical to its long-term success.

Overall, NHI appears to be well-positioned to continue executing its strategy of investing in high-quality senior housing and medical facilities, while managing its risks and leveraging its operational expertise to deliver value to shareholders.