John Kolochowski

John Kolochowski asked about the drivers behind the higher-than-expected $111 million in dispositions included in the 2026 guidance, specifically inquiring about the types of assets being sold and whether it represents capital recycling into SHOP or pruning non-core assets. Kolochowski also asked how a potential NHC lease renewal would impact NHI's ability to reposition or sell assets, and if capital would still be rotated into SHOP.

Answer

Kevin Pascoe, Chief Investment Officer, explained that dispositions are driven by operator relationships and non-core assets, aiming to reallocate capital to relationships with greater growth potential and improve asset management efficiency. Eric Mendelsohn, President and CEO, confirmed that if buildings from the NHC lease were sold, the capital would indeed be redeployed into SHOP.

John Kolochowski inquired about the drivers behind the higher-than-expected $111 million in dispositions, asking if it's primarily capital recycling into SHOP or pruning non-core assets. He also asked how a potential NHC lease renewal would impact the ability to reposition or sell assets from that portfolio for SHOP rotation.

Answer

Kevin Pascoe, Chief Investment Officer, explained that dispositions are strategic, focusing on non-core assets and operator relationships lacking growth potential, to reallocate capital more efficiently. Eric Mendelsohn, President and CEO, confirmed that any capital from potential NHC asset sales would be redeployed into the SHOP portfolio.