National Health Investors, Inc.

Greetings. Welcome to the National Health Investors 2Q 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. You may begin.

Thank you and welcome to the National Health Investors Conference call to review results for the second 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 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 statements 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 June 30, 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 8K 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 Mendelson.

Hello, and thanks to everyone for joining us today. We followed a strong start to the year with an even stronger quarter, which exceeded our expectations. The second quarter's outperformance was multifaceted and driven by solid execution throughout the enterprise. The faster pace of acquisitions in the first half of the year, exceptional shop NOI growth, and continued deferral collections on improving tenant fundamentals were all major contributors. Due to the outperformance and good visibility, we're raising our 2025 guidance for the second time this year. We increased the midpoint of our normalized FFO guidance per share by 9 cents to $4.80, representing year-over-year growth of 8.1%. With our improving growth and excellent coverage, we also announced last night that we are increasing the dividend for the first time in four years. Additionally, we're excited to share a milestone event for NHI. Effective August 1st, we completed the transition of seven properties from leases to shop, resulting in an increase to our annualized shop NOI of approximately $8.8 million, or 57%. Following these transitions, shop will represent almost 10% of our consolidated NOI. Given the significant organic and external growth opportunities, we expect that percentage to grow exponentially, both on a near-term and long-term basis. Since we established SHOP in April of 2022, we've been methodically preparing to grow this portfolio as we believe senior housing operations provide the highest growth potential with the best risk adjusted returns in our investment universe. Through investments and personnel, as well as other internal and external resources, we're confident that we now have established a strong foundation across our asset management, business development, accounting, and legal functions to strategically expand the SHOP portfolio at a rapid pace. Turning to the SHOP results for the quarter, SHOP NOI increased by over 29% compared to the second quarter of 2024. While there were some non-recurring benefits during the quarter, which Kevin will detail, we're pleased that the early strategy to focus on driving higher occupancy is now leading to improved REV4 growth and margin expansion. REV4 growth of 3.7% and NOI margin at 26.9 are both record results since SHOP's formation. We continue to see substantial organic upside in this portfolio. With the conversions, we expect pro forma annualized 2026 NOI growth to be double digits. The pipeline activity continues to make us optimistic that acquisitions will be a meaningful component of our growth profile for the next several years. We've announced investments of $175 million so far this year and currently have approximately $130 million under signed LOIs, which we expect to close in the next few months. This includes a shop deal valued at approximately $74 million, as well as a purchase option that we've exercised on a large entrance fee community. The incremental pipeline at nearly $350 million is entirely focused on senior housing, including a significant number of shop deals. We expect to have several signed LOIs in the next two quarters. As I just mentioned, we expect acquisitions and shop acquisitions in particular to be a major contributor to our growth profile. While we view every deal based on its own merits, we also employ a portfolio approach in which we measure any new acquisitions impact on the yield and growth of the overall shop portfolio. Obviously, we like the deals and we see many that offer tremendous NOI growth and we evaluate situations in which the deal may open up a new relationship or geography where we see significant future opportunity. Through this approach, we are also developing a stable of institutional class operating partners that should allow us to source more opportunities with more seamless integration into our platform. Overall, our goal still targets aggregate initial yields to be accretive immediately with expected multi-year exceptional NOI growth. The balance sheet continues to be in great shape and very supportive of funding the significant investment pipeline. Our net debt to adjusted EBITDA at 3.9 times is below the low end of our target range, and we have available liquidity of approximately $760 million. We believe this low leverage and strong access to capital create real competitive advantages and give us optionality when assessing our capital needs for the future. To sum all of this up, we're very excited about the multiple growth opportunities and our confidence in capitalizing on these opportunities has never been higher. As this is our first public conference call since the annual shareholders meeting in May, I want to share a few comments. First, we want to sincerely thank our shareholders for the constructive dialogue over the years and especially leading up to this year's meeting. We believe your valuable feedback has informed and validated our strategic direction. Also, your direct correspondence has resulted in considerable board changes, including this year's retirement of our two longest-tenured board members, the recent appointments of Candice Todd and Rob Chapin, and the declassification of the Board. Lastly, the outcome of the vote clearly informs our Board that there is more work to be done, particularly with Board refreshment. The Board is committed to improved governance and understands the role it plays in delivering long-term value for our shareholders. On that topic, the special board committee tasked with overseeing the NHC lease renegotiation is actively engaged with management. While we're not providing details of the engagement or the ongoing discussions with NHC, we are confident that the special committee's interests are fully aligned with our shareholders to execute a deal that delivers the best possible value. I'll now turn the call to Kevin to provide more details on our operations. Kevin.