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  "documentTitle": "National Healthcare Corporation (NHC)",
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  "presentationDate": "2025-06-17 00:00:00",
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  "notes": "The slide outlines a conflict of interest involving the Adams brothers and proposes three potential outcomes for NHC, starting with a 'bad' scenario.",
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      "text": "1. Bad – NHC and NHI renegotiate the lease at fair market rents well before the December 2026 lease end date. We estimate the new rent, based on estimated lease coverage ratios and a recent comparable lease, to be 64% higher than 2024 full-year rent, or $25.7 million, reducing NHC EBITDA by 19%, and increasing NHI annual FFO/share by 12%.",
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      "text": "NHC may lose 19% to 38% of EBITDA with substantial downside and reputational risk if the company overplays its hand",
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      "text": "This cozy relationship between NHC and NHI was orchestrated by brothers Andrew Adams and Robert Adams at the expense of NHI shareholders. The Adams brothers each ran one of the companies while sitting on each other's boards and populated the boards primarily with local Murfreesboro, TN loyalists. However, we believe the days of NHC taking advantage of NHI are numbered.",
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      "text": "Believes NHC faces three potential outcomes with the NHI lease renewal – all of which could lead to a significant decline in NHC earnings and likely material share price weakness",
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      "text": "National Healthcare Corporation’s (NYSE: NHC) egregiously one-sided lease with National Health Investors (NYSE: NHI) expires year-end 2026. This master lease was originally signed in 1991 and includes 28 skilled nursing facilities, five assisted living centers, and three independent living centers. NHC has enjoyed dramatically below market rents during this time while NHC profits ballooned. NHI conversely received little rent growth over the decades despite the improving economics of their properties.",
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      "kind": "paragraph",
      "text": "Stamford, CT (June 17, 2025) – Today, Land & Buildings Investment Management, LLC (together with its affiliates, “Land & Buildings”) issued the following statement:",
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      "text": "Believes recent developments put NHI in catbird seat in renegotiation and company could see a 12% increase in annual FFO/share when rents are marked to market with potentially more upside if released to a best-in-class operator",
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      "text": "Shareholders sent a clear message to the remaining NHI conflicted board members during this year's proxy contest with Land & Buildings that they are not invincible, with Robert Adams having retained his seat by a scant 1%. With Robert Adams, James Jobe and Robert McCabe up for election at the 2026 NHI annual meeting, shareholders will have the opportunity to vote against these legacy directors if the company drags its feet or attempts to sign a lease which is not in the best interest of NHI shareholders.",
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      "text": "1 Company filings\n2 In October 2024, CareTrust (CTRE) announced a $500 million acquisition and lease of 31 skilled nursing facilities with 3,290 beds in 30 facilities located in Tennessee and 1 in Alabama that equated to approximately $13,678 per bed in annual rent, 64% higher than the 2024 disclosed NHI rent per bed for the NHC assets, a majority of which are also located in Tennessee.\n3 Based on full-year 2024 NHC EBITDA as estimated by Land & Buildings.",
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      "kind": "title",
      "text": "Land and Buildings Details Why National Healthcare Corp. Could Lose Big as Lease Negotiation with National Health Investors Progresses",
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