MURFREESBORO, Tenn.--(BUSINESS WIRE)--
National Health Investors, Inc. (NYSE:NHI) announced today its net
income and funds from operations ("FFO") for the three months ended
March 31, 2009.
First Quarter Highlights:
-- Net income increased from $13,399,000 to $15,049,000 or 12.3%
-- Funds from operations (FFO) increased from $15,325,000 to $16,978,000 or
10.8%
-- Recovery of a previous write-down, settlement of former tenant lease and
other gains totaled $1,879,000
Net income for the three months ended March 31, 2009 was of $15,049,000
or $0.55 per basic and diluted common share compared to net income of
$13,399,000 or $0.48 per basic and diluted common share for the same
period in 2008. Net income was favorably impacted in 2009 by $1,879,000
or $0.07 per basic and diluted common share related to the settlement of
a former tenant lease and prepayment of a mortgage loan receivable that
resulted in the recovery of a previous write-down and other gains.
Funds from operations ("FFO") for the three months ended March 31, 2009
was $16,978,000 or $0.62 per basic and diluted common share compared to
$15,325,000 or $0.55 per basic and diluted common share for the same
period in 2008. FFO was favorably impacted in 2009 by $1,879,000 or
$0.07 per basic and diluted common share related to the items described
above.
National Health Investors, Inc. is a 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 may 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
March 31,
2009 2008
Revenues:
Rental income $ 14,029 $ 12,962
Mortgage interest income 1,913 2,397
$ 15,942 $ 15,359
Expenses:
Interest expense $ 37 $ 105
Depreciation 1,951 2,007
Amortization of loan costs 4 4
Legal expense 450 134
Franchise, excise and other taxes 275 223
General and administrative 1,589 1,446
Loan and realty losses (recoveries) (640 ) -
$ 3,666 $ 3,919
Income Before Non-Operating Income $ 12,276 $ 11,440
Non-operating income (investment interest and 2,814 1,978
other)
Income From Continuing Operations $ 15,090 $ 13,418
Discontinued Operations
Income from operations - discontinued (41 ) (19 )
Net income $ 15,049 $ 13,399
Weighted average common shares outstanding:
Basic 27,574,544 27,730,686
Diluted 27,582,228 27,786,425
Earnings per share:
Basic:
Income from continuing operations $ 0.55 $ 0.48
Discontinued operations - -
Net income available to common stockholders $ 0.55 $ 0.48
Diluted:
Income from continuing operations $ 0.55 $ 0.48
Discontinued operations - -
Net income available to common stockholders $ 0.55 $ 0.48
Funds from operations
Basic $ 16,978 $ 15,325
Diluted $ 16,978 $ 15,325
Funds from operations per common share
Basic $ 0.62 $ 0.55
Diluted $ 0.62 $ 0.55
Quarterly dividend declared per common share $ 0.55 $ 0.55
In accordance with Statement of Financial Accounting Standard No. 144, the
results of operations for facilities sold, including the gain or loss on such
sales, have been reported in the current and prior periods as discontinued
operations. The reclassifications to retroactively reflect the disposition of
these facilities had no impact on previously reported net income.
Selected Balance Sheet Data
(in thousands)
March 31, December 31,
2009 2008
Real estate properties, net $ 179,381 $ 181,332
Mortgages receivable, net 102,694 108,640
Preferred stock investment 38,132 38,132
Cash and marketable securities 104,935 100,242
Bonds payable 2,762 3,987
Stockholders' equity 427,460 429,615
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
March 31,
2009 2008
Net income 15,049 13,399
Elimination of non-cash items in net income:
Real estate depreciation 1,929 1,908
Real estate depreciation in discontinued operations - 18
Basic funds from operations 16,978 15,325
Diluted funds from operations $ 16,978 $ 15,325
Basic funds from operations per share $ 0.62 $ 0.55
Diluted funds from operations per share $ 0.62 $ 0.55
Shares for basic funds from operations per share 27,574,544 27,730,686
Shares for diluted funds from operations per share 27,582,228 27,786,425
(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 REI 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 (excluding corporate
office) March 31, 2009
Portfolio Statistics Investment
Properties Percentage Investment
Real Estate Properties 72 63.6% $ 179,352,000
Mortgages and Notes Receivables 49 36.4% 102,694,000
Total Real Estate Portfolio 121 100.0% $ 282,046,000
Real Estate Properties Properties Beds Investments
Long Term Care Centers 49 6,788 $ 100,962,000
Assisted Living Facilities 14 1,141 55,693,000
Medical Office Buildings 4 124,427 sq.ft. 9,038,000
Independent Living Facilities 4 456 7,442,000
Hospitals 1 55 6,217,000
Total Real Estate Properties 72 $ 179,352,000
Mortgage Notes Receivables Properties Beds Investments
Long Term Care Centers 32 3,581 $ 98,999,000
Developmentally Disabled 17 108 3,695,000
Total Mortgage Notes Receivable 49 3,689 102,694,000
Total Real Estate Portfolio 121 $ 282,046,000
Summary of Facilities by Type:
Percentage of Total
Properties Total Dollars Dollars
Long Term Care Centers 81 71.0% $ 199,961,000
Assisted Living Facilities 14 19.7% 55,693,000
Medical Office Buildings 4 3.2% 9,038,000
Independent Living Facilities 4 2.6% 7,442,000
Hospitals 1 2.2% 6,217,000
Developmentally Disabled 17 1.3% 3,695,000
Total Real Estate Portfolio 121 100.0% $ 282,046,000
Portfolio by Operator Type
Percentage of Total
Properties Total Dollars Dollars
Regional 48 58.1% $ 163,856,000
Public 65 32.5% 91,644,000
Small Operator 8 9.4% 26,546,000
121 100.0% $ 282,046,000
Public Operators Percentage
Dollar Of Total
Amount Portfolio
National HealthCare Corp. $ 56,223,000 20.0%
Sunrise Senior Living Services 12,202,000 4.3%
Community Health Systems, Inc. 11,650,000 4.1%
Sun Healthcare 7,874,000 2.8%
Res-Care, Inc. 3,695,000 1.3%
Total Public Operators $ 91,644,000 32.5%
National Health Investors, Inc. Summary of Facilities by State March 31. 2009
Percent
Acute Dev. Asst. Retire- Investment Total
LTC Care MOB Disab. Living ment Total Amount Portfolio
Florida 11 - 1 14 4 - 30 $ 70,919,000 25.1%
Texas 8 - 2 - - - 10 47,025,000 16.7%
Tennessee 20 - - 3 3 2 28 25,662,000 9.1%
Missouri 8 - - - - 1 9 20,203,000 7.2%
Arizona 1 - - - 4 - 5 16,771,000 5.9%
Virginia 7 - - - - - 7 16,059,000 5.7%
Massachusetts 4 - - - - - 4 14,268,000 5.1%
Kansas 5 - - - - - 5 13,338,000 4.7%
New Jersey - - - - 1 - 1 12,202,000 4.3%
South 4 - - - 1 - 5 10,449,000 3.7%
Carolina
New Hampshire 3 - - - - - 3 8,663,000 3.1%
Georgia 5 - - - - - 5 7,418,000 2.6%
Kentucky 2 1 - - - - 3 7,053,000 2.5%
Idaho 1 - - - - 1 2 4,785,000 1.7%
Pennsylvania - - - - 1 - 1 4,044,000 1.4%
Alabama 2 - - - - - 2 1,835,000 0.7%
Illinois - - 1 - - - 1 1,352,000 0.5%
81 1 4 17 14 4 121 $ 282,046,000 100.0%
Source: National Health Investors, Inc.
Contact: National Health Investors, Inc.
Roger R Hopkins, Chief Accounting Officer, 615-890-9100