National Health Investors (NHI)

Management Discussion

• •Rental income recognized from our tenants decreased $28.4 million, or 41.5%, as a result of $5.7 million from properties disposed since April 1, 2021 offset by a reduction of rent concessions of approximately $7.0 million accounted for as either variable lease payments or as modified leases and by the recognition of the Holiday escrow deposit and new investments funded since June 2021. Included in rental income for the three months ended June 30, 2022 are write offs of $18.1 million of straight-line rents receivable and $7.1 million of lease incentives related to our Bickford master lease agreements. Reference Note 3 for further discussion.
• •Funds received for reimbursement of property operating expenses totaled $2.2 million for the three months ended June 30, 2022, and are reflected as a component of rental income. These property operating expenses are recognized in operating expenses in the line item “Taxes and insurance on leased properties.” The decrease in the reimbursement income and corresponding property expenses is the result of decreased amounts received from tenants and expenses paid on their behalf.
• •Resident fees and services and Senior housing operating expenses include revenues and expenses from our SHOP activities which commenced on April 1, 2022. See Note 5 to the condensed consolidated financial statements.