National Health Investors, Inc.

Welcome to National Health Investor's first quarter 2025 earnings webcast and conference call. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. Please note this conference is being recorded. I will now turn the conference over to your host, Dana Hambly, Vice President, Finance and Investor Relations. You may begin.

Thank you and welcome to the National Health Investors Conference Call to review results for the first quarter of 2025. On the call today are Eric Mendelson, President and CEO, Kevin Pascoe, Chief Investment Officer, John Spade, Chief Financial Officer, and David Travis, Chief Accounting Officer. The results as well as notice of the accessibility of this conference call were released after the market closed yesterday in a press release that's been covered by the financial media. Any statements in this conference call which are not historical facts are forward-looking statements. NHI cautions investors that any forward-looking statement may involve risks or uncertainties and are not guarantees of future performance. All forward-looking statements represent NHI's judgment as of the date of this conference call. Investors are urged to carefully review various disclosures made by NHI and its periodic reports filed with the Securities and Exchange Commission, including the risk factors and other information disclosed in NHI's Form 10-K for the year ended December 31, 2024, and Form 10-Q for the quarter ended March 31, 2025. Copies of these filings are available on the SEC's website at sec.gov or on NHI's website at nhireet.com. In addition, certain terms used in this call are non-GAAP financial measures, reconciliations of which are provided in NHI's earnings release and related tables and schedules, which have been furnished on Form 8-K to the SEC. Listeners are encouraged to review those reconciliations provided in the earnings release together with all other information provided in that release. I'll now turn the call over to our CEO, Eric Mendelsohn.

Hello, and thanks to everyone for joining today. We're off to a great start in 2025 with first quarter results that exceeded our expectations driven by a faster pace of acquisitions and upside to our cash rent collections from better than expected deferral payments and the NHC percentage rent. As a result of the strong start and building momentum, we're raising our normalized FFO guidance midpoint by $0.08 per share to $4.71 representing year-over-year growth of 6.1%. We've announced investments of $174.9 million so far this year, and we're far from done as the number of sellers seems to be growing. We have an active pipeline of approximately $264 million that Kevin and his team are working on right now, and the funnel of other opportunities is many times larger than that. The pipeline includes multiple shop deals and excludes larger portfolios. On the topic of large portfolios, you'll notice that we recorded a $1.2 million charge in transaction costs for the quarter. These costs were related to a large shop portfolio to which we allocated significant resources. Ultimately, this was not the right deal for our shareholders, and we will not pursue growth for growth's sake. We are, however, keenly focused on growing our shop portfolio, and we're excited about the many opportunities that we're seeing. Last quarter, we talked for the first time about growing shop through internal conversions. We're making great progress on transitioning a portfolio of six properties currently leased to Discovery to a new idea partnership. We see good NOI upside to this portfolio and we'll plan to share more details as the conversion progresses. We're taking extra time to ensure that this transition goes smoothly as this can serve as our template for future additions of assisted living communities into the RIDEA structure. We've been positioning the company for this opportunity through our portfolio optimization and are thrilled to be on the front end of this long-term value-creating opportunity for our shareholders. In our existing shop operation, the first quarter result experienced typical seasonality. Our belief in that trajectory is unchanged, and we're therefore maintaining our outlook for 12% to 15% NOI growth this year, and continued strong performance in later years. As I mentioned at the start, our cash rent collections exceeded expectations in large part due to the pace of acquisitions. We've acquired approximately $131 million in real estate year-to-date with three new partners, including Generations, Juniper Communities, and AgeMark. We've long admired all three of these companies and are already exploring additional avenues to grow these relationships. The balance sheet continues to be in great shape and very supportive of funding the significant investment pipeline. As John will detail in his comments, we are including $155 million in incremental investments in our guidance on top of the investments already announced, reflecting our high conviction in the near-term outlook. I think it's safe to say that given the fast start and good visibility on the pipeline, we're optimistic we can surpass last year's investment total of $237.5 million. Last quarter, I said that we were pleased with the execution in 2024 and very optimistic that 2025 would be an even more productive year. That is proving to be consistent with our mantra to quote, under promise and over deliver, unquote. I'll now turn the call to Kevin to provide more details on our operations. Kevin. Thank you, Eric.