NHI as of March 31, 2026 shows total assets of $2.89B against total liabilities of $1.36B, producing book equity of $1.52B. Under the liquidation lens, the recovery picture is materially negative. The dominant asset is real estate properties net of accumulated depreciation ($2.56B net PP&E per PropertyPlantAndEquipmentNet, with gross of $3.40B and accumulated depreciation of $844M). Applying a 50-70% haircut to the net carrying value of real estate yields a liquidation range of approximately $1.28B-$1.79B for that asset class. Mortgages and other notes receivable net of allowance stand at $206M; at a 90-95% recovery rate this contributes roughly $185M-$196M. Cash of $25M recovers at par. Other assets ($21M) and deferred rent receivables ($79M) recover at heavily discounted rates if at all in a wind-down. Total asset-side liquidation recovery is estimated at roughly $1.50B-$2.10B at the midpoint, which is insufficient to cover $1.36B of face-value liabilities plus the additional off-balance-sheet obligations. The liability stack at face value includes $1.27B of net debt (principal $1.28B), accrued liabilities, dividends payable ($44.6M), and deferred revenue. Remaining loan commitments ($32.4M unfunded) and development commitments ($9.7M) do not extinguish on windup and must be settled at face. Post-wind-down, recovery to equity is thin at best and could be negative depending on real estate disposition haircuts. The material change since the prior filing (December 31, 2025 10-K) is the revolving credit draw-up from $204M to $309M, total principal debt rising from $1.18B to $1.28B. Additionally, a significant pending transaction disclosed in the Risk Factors section—the sale of the entire NHC property portfolio—represents a material contingent asset realization event not yet reflected on the balance sheet. The filing discloses this sale in MD&A and risk factors but does not separately tag NHC-portfolio fair value or expected proceeds in XBRL, so the magnitude is unquantifiable from tagged data alone. A post-period disclosure (April 2026) references a signed Purchase and Sale Agreement with NHC/OP, L.P.; if consummated, proceeds would materially alter the liability coverage ratio. The Bank Term Loan ($125M) matures in June 2026, creating a near-term refinancing obligation that is the most acute liquidity event on the balance sheet.
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