Company Profile

Company Overview

NHP is a $2.6 billion(1) healthcare REIT with a high-quality portfolio focused on two segments, Medical Office Buildings (“MOB”) and Senior Housing Operating Properties (“SHOP”)

 

High

Quality Portfolio
üHigh-quality portfolio featuring 207 healthcare properties that are 74% MOB and 26% SHOP(2)
üGeographically diversified portfolio across 32 states with select concentrations in states that management believes to have favorable demographic tailwinds
üNHP has a forward Leasing Pipeline(3) of 49,114 SF that, upon commencement, is expected to further increase MOB portfolio Occupancy(3) to 91.2%(4) from 90.3% as of Q2'24
üProactive MOB leasing activity with 15 lease renewals completed in Q2'24 totaling over 76,790 SF at a positive Lease Renewal Rental Spread of 9.4% which is expected to be recognized over the weighted-average term of these renewed leases of 6.1 years

Strategic Disposition Initiative(5)
üDuring the second quarter, NHP closed on the disposition of one SHOP asset for a sale price of $3.3 million and subsequent to quarter end, closed on the disposition of a seven-property MOB portfolio at a sale price of $50.5 million

üNon-binding executed letters of intent on an additional eight MOB properties and one SHOP property for a total estimated sale price of $78.7 million(6)

Meaningful Performance Improvement 
üAFFO(7) has improved by 13.8% year-over-year from $3.8 million in Q2’23, and over 200% QoQ from $1.4 million in Q1’24, to $4.4 million in Q2’24 as a result of improved property level performance and managed expenses
üYear-over-year, HTI’s exposure to MOB assets increased from 63% to 77%(2) in part due to high-quality MOB acquisitions, which management believes to have more predictable cash flows than SHOP assets, and strategic SHOP dispositions
üYear-over-year, SHOP segment Occupancy(3) increased by 3.1%, from 73.3% as of Q2’23 to 76.4% in Q2'24  
ü Year-over-year, MOB segment NOI(7) improved by 1.9% from $24.5 million in Q2’23 to $24.9 million in Q2'24 as a result of accretive acquisitions and favorable leasing
üAs of Q2'24, NHP maintained Net Leverage(3) of 44.5%

Experienced Management Team
üProven track record with significant public REIT market experience
üDedicated SHOP management team that collectively has over 50 years of SHOP operating experience
(1) Based on gross asset value of $2.6 billion, net of gross market lease intangible liabilities of $21.0 million as of June 30, 2024.
(2) Percentages are based on NOI for the three months ended June 30, 2024. See Appendix: Financial Definitions for Non-GAAP reconciliations. See here for Non-GAAP reconciliations.
(3) See Definitions in the Appendix for a full description.
(4) Leasing Pipeline data as of August 15, 2024. Assumes executed leases commence and signed LOIs lead to definitive leases on their contemplated terms, which is not assured.
(5) Refer to Strategic Disposition Initiative for additional information.
(6) There can be no assurance that the contemplated dispositions will lead to completed transactions on their current terms, or at all.
(7) See Definitions in the Appendix: Financial Definitions for a full description of capitalized term and for Non-GAAP reconciliations See here for Non-GAAP reconciliations.