MURFREESBORO, Tenn.--(BUSINESS WIRE)--
National Health Investors, Inc. (NYSE:NHI) announced net income
for the year ended December 31, 2006 of $69,228,000 or $2.50 per
common share, basic and $2.49 per common share diluted, compared to
net income of $54,408,000 or $1.96 per common share, basic and diluted
for 2005. Net income for the year ended December 31, 2006 included
income from recoveries of previous writedowns, gains from loan
payoffs, gains from asset sales and prepayment penalties totaling
$15,688,000 or 57 cents per basic share and 56 cents per diluted share
of common stock, compared to income in 2005 from similar items of
$6,349,000 or 23 cents per basic and diluted share of common stock.
Funds from operations ("FFO") for the year ended December 31, 2006
was $74,221,000, or $2.68 per basic and $2.67 per diluted share of
common stock, compared to $63,372,000, or $2.29 per basic and
$63,453,000, or $2.28 per diluted share in 2005. Funds from operations
for the year ended December 31, 2006 included income from recoveries
of previous writedowns, gains from loan payoffs, and prepayment
penalties totaling $9,874,000 or 36 cents per basic and diluted share
of common stock, compared to income in 2005 from similar items of
$3,799,000 or 14 cents per basic and diluted share of common stock.
Net income for the fourth quarter ended December 31, 2006 was
$23,449,000 or 85 cents per basic and 84 cents per diluted common
share of stock, compared to net income of $12,259,000 or 44 cents per
common share, basic and diluted for the same period in 2005. Net
income for the fourth quarter ended December 31, 2006 included income
from recoveries of previous writedowns and gains from loan payoffs
totaling $9,579,000 or 35 cents per basic and 34 cents per diluted
share of common stock, compared to income in 2005 from similar items
of $471,000 or two cents per basic and diluted share of common stock.
For the fourth quarter ended December 31, 2006, FFO was
$26,193,000 or 95 cents per basic and 94 cents per diluted share of
common stock compared to $15,307,000 or 55 cents per basic and
$15,322,000 or 55 cents per diluted share for the same period in 2005.
Funds from operations for the fourth quarter ended December 31, 2006
included income from recoveries of previous writedowns and gains from
loan payoffs totaling $9,579,000 or 35 cents per basic and 34 cents
per diluted share of common stock compared to income in 2005 from
similar items of $564,000 or two cents per basic and diluted share of
common stock.
National Health Investors, Inc. is a long-term health care real
estate investment trust that specializes in the financing of health
care real estate by first mortgage and by purchase and leaseback
transactions. The common stock of the company trades on the New York
Stock Exchange with the symbol NHI. Additional information including
NHI's most recent press releases may be obtained on NHI's web site at
www.nhinvestors.com
Statements in this press release that are not historical facts are
forward-looking statements. NHI cautions investors that any
forward-looking statements made involve risks and uncertainties and
are not guarantees of future performance. All forward-looking
statements represent NHI's judgment as of the date of this release.
Condensed Statements of Income
(in thousands, except share and per share amounts)
Three Months Ended Year Ended
December 31 December 31
----------------------- -----------------------
2006 2005 2006 2005
----------- ----------- ----------- -----------
Revenues:
Mortgage interest
income $3,735 $3,685 $14,981 $18,226
Rental income 11,718 10,987 46,281 44,005
Facility operating
revenues 23,512 21,200 89,462 84,693
----------- ----------- ----------- -----------
$38,965 $35,872 $150,724 $146,924
----------- ----------- ----------- -----------
Expenses:
Interest expense $2,026 $2,056 $8,131 $8,556
Depreciation 3,053 3,127 11,845 12,199
Amortization of loan
costs 34 34 135 174
Legal expense 200 203 592 570
Franchise, excise
and other taxes 18 235 204 622
General and
administrative 1,868 1,106 5,344 4,310
Loan and realty
losses (recoveries) (7,934) (565) (7,934) 10,837
Facility operating
expenses 20,581 20,110 82,181 79,452
----------- ----------- ----------- -----------
$19,846 $26,306 $100,498 $116,720
----------- ----------- ----------- -----------
Income Before Non-
Operating Income $19,119 $9,566 $50,226 $30,204
Non-operating income
(investment
Interest and other) 4,327 2,500 12,721 22,331
----------- ----------- ----------- -----------
Income From Continuing
Operations $23,446 $12,066 $62,947 $52,535
----------- ----------- ----------- -----------
Discontinued
Operations
Operating income-
discontinued
operations 3 193 467 1,100
Net gain on sales of
real estate - - 5,814 773
----------- ----------- ----------- -----------
$3 $193 $6,281 $1,873
----------- ----------- ----------- -----------
Net income $23,449 $12,259 $69,228 $54,408
=========== =========== =========== ===========
Weighted average
common shares
outstanding:
Basic 27,699,239 27,769,694 27,744,868 27,699,887
Diluted 27,778,612 27,835,147 27,778,764 27,830,886
Earnings per share:
Basic:
Income from
continuing
operations $0.84 $0.43 $2.27 $1.89
Discontinued
operations 0.01 0.01 0.23 0.07
Net income
available to
common
stockholders 0.85 0.44 2.50 1.96
Diluted:
Income from
continuing
operations $0.83 $0.43 $2.26 $1.89
Discontinued
operations 0.01 0.01 0.23 0.07
Net income
available to
common
stockholders 0.84 0.44 2.49 1.96
Funds from operations
Basic $26,193 $15,307 $74,221 $63,372
Diluted $26,193 $15,322 $74,221 $63,453
Funds from opertions
per common share
Basic $0.95 $0.55 $2.68 $2.29
Diluted $0.94 $0.55 $2.67 $2.28
Dividends declared per
common share $0.93 $0.45 $2.37 $1.80
Balance Sheet Data
(in thousands)
December 31
2006 2005
----------- -----------
Real estate properties, net $235,199 $263,129
Morgages receivable, net 99,532 118,800
Preferred stock investment 38,132 38,132
Cash and marketable securities 177,765 152,022
Debt 113,492 117,252
Convertible debt - 201
Stockholders' equity 431,671 424,968
Reconciliation of Funds From Operations (1)(2)
The following table reconciles net income to funds from operations
available to common stockholders:
(in thousands, except share and per share amounts)
Three Months Ended Year Ended
December 31 December 31
----------------------- -----------------------
2006 2005 2006 2005
----------- ----------- ----------- -----------
Net income 23,449 12,259 69,228 54,408
Elimination of non-
cash items in net
income:
Real estate
depreciation 2,744 2,844 10,668 11,049
Real estate
depreciation in
discontinued
operations - 114 139 469
Loss (gain) on sale
of real estate - 90 (5,814) (2,554)
----------- ----------- ----------- -----------
Basic funds from
operations 26,193 15,307 74,221 63,372
----------- ----------- ----------- -----------
Interest on
convertible
subordinated
debentures - 15 - 81
----------- ----------- ----------- -----------
Diluted funds from
operations $26,193 $15,322 $74,221 $63,453
=========== =========== =========== ===========
Basic funds from
operations per share $0.95 $0.55 $2.68 $2.29
Diluted funds from
operations per share $0.94 $0.55 $2.67 $2.28
Shares for basic funds
from operations per
share 27,699,239 27,769,694 27,744,868 27,699,887
Shares for diluted
funds from operations
per share 27,778,612 27,835,147 27,778,764 27,830,886
(1) Management believes that funds from operations (FFO) is an
important supplemental measure of operating performance for a real
estate investment trust. Because the historical cost accounting
convention used for real estate assets requires straight-line
depreciation (except on land), such accounting presentation implies
that the value of real estate assets diminishes predictably over
time. Since real estate values instead have historically risen and
fallen with market conditions, presentations of operating results for
a real estate investment trust that uses historical cost accounting
for depreciation could be less informative, and should be
supplemented with a measure such as FFO. The term FFO was designed by
the real estate investment trust industry to address this issue. Our
measure may not be comparable to similarly titled measures used by
other REITs. Consequently, our funds from operations may not provide
a meaningful measure of our performance as compared to that of other
REITs. Since other REITs may not use our definition of FFO, caution
should be exercised when comparing our Company's FFO to that of other
REITs. Funds from operations in and of itself does not represent cash
generated from operating activities in accordance with GAAP (funds
from operations does not include changes in operating assets and
liabilities) and therefore should not be considered an alternative to
net earnings as an indication of operating performance, or to net
cash flow from operating activities as determined by GAAP in the
United States, as a measure of liquidity and is not necessarily
indicative of cash available to fund cash needs.
(2) Our computations above are intended to comply with the SEC's
interpretation that recurring impairments taken on real property may
not be added back to net income in the calculation of FFO. The SEC's
position is that recurring impairments on real property are not an
appropriate adjustment.
National Health Investors, Inc. Portfolio Summary December 31, 2006
Portfolio Statistics Investment
Properties Percentage Investment
---------- ------------- -------------
Real Estate Properties 90 72% $235,199,000
Mortgages and Notes
Receivable 49 28% 90,782,000
---------- ------------- -------------
Total Real Estate Portfolio 139 100% $325,981,000
========== ============= =============
Real Estate Properties Properties Beds Investments
---------- ------------- -------------
Long-Term Care Centers 66 8,555 $149,537,000
Assisted Living 14 1,161 59,080,000
Medical Office Buildings 124,427
4 sq.ft. 9,983,000
Retirement Homes 5 534 9,700,000
Hospitals 1 55 6,899,000
---------- ------------- -------------
Total Real Estate
Properties 90 $235,199,000
Mortgages and Notes Receivable Properties Beds Investments
---------- ------------- -------------
Long-Term Care Centers 31 3,377 $84,716,000
Retirement Homes 1 60 1,936,000
Developmentally Disabled 17 108 4,130,000
---------- ------------- -------------
Total Mortgages and Notes
Receivable 49 $90,782,000
---------- -------------
Total Real Estate
Portfolio 139 $325,981,000
========== =============
Percentage of
Summary of Facilities by Type Properties Total Dollars Total Dollars
---------- ------------- -------------
Long-Term Care Centers 97 71.86% $234,253,000
Assisted Living 14 18.12% 59,080,000
Medical Office Buildings 4 3.06% 9,983,000
Retirement Homes 6 3.57% 11,636,000
Hospitals 1 2.12% 6,899,000
Developmentally Disabled 17 1.27% 4,130,000
---------- ------------- -------------
Total Real Estate Portfolio 139 100.00% $325,981,000
========== ============= =============
Percentage of
Portfolio by Operator Type Properties Total Dollars Total Dollars
---------- ------------- -------------
Public 62 26.68% $86,981,000
Regional 65 61.82% 201,521,000
Small Operator 12 11.50% 37,479,000
---------- ------------- -------------
Total Real Estate Portfolio 139 100.00% $325,981,000
---------- ------------- -------------
National Health Investors, Inc. Summary of Facilities by State
December 31, 2006
Acute Dev. Asst. Retire-
LTC Care MOB Disab. Living Ment Total
---------------------------------------------------
Florida 12 1 14 4 31
Texas 19 2 1 22
Tennessee 20 3 3 2 28
Virginia 8 8
Missouri 8 1 9
Arizona 1 4 5
New Hampshire 3 1 4
New Jersey 0 1 1
Kansas 7 7
Massachusetts 4 4
Georgia 6 6
Kentucky 2 1 3
South Carolina 3 1 4
Idaho 1 1 2
Pennsylvania 0 1 1
Alabama 2 2
Wisconsin 1 1
Illinois 0 1 1
---------------------------------------------------
97 1 4 17 14 6 139
===================================================
Percent
Investment Total
Amount Portfolio
----------------------------
Florida $78,285,000 24.02%
Texas 73,832,000 22.65%
Tennessee 29,190,000 8.95%
Virginia 19,879,000 6.10%
Missouri 18,720,000 5.74%
Arizona 17,953,000 5.51%
New Hampshire 13,932,000 4.27%
New Jersey 12,919,000 3.96%
Kansas 11,144,000 3.42%
Massachusetts 10,252,000 3.14%
Georgia 9,999,000 3.07%
Kentucky 7,925,000 2.43%
South Carolina 7,329,000 2.25%
Idaho 5,183,000 1.59%
Pennsylvania 4,267,000 1.31%
Alabama 2,063,000 0.63%
Wisconsin 1,636,000 0.50%
Illinois 1,473,000 0.45%
----------------------------
$325,981,000 100.00%
============================
Source: National Health Investors, Inc.
Contact: National Health Investors, Inc.
Kenneth D. DenBesten, 615-890-9100
SVP Finance, Secretary