MURFREESBORO, Tenn.--(BUSINESS WIRE)--
National Health Investors, Inc., (NYSE:NHI) announced today its net
income and funds from operations ("FFO") for the fourth quarter and year
ended December 31, 2008.
Net income for the year ended December 31, 2008 was $57,510,000 or $2.08
per basic common share and $2.07 per diluted common share, compared to
net income of $96,435,000 or $3.48 per basic common share and $3.47 per
diluted common share for 2007. The comparability of net income for the
year ended December 31, 2008 to the same period one year ago was
affected by income from recoveries of previous writedowns, gains on the
sale and deconsolidation of certain facilities, gains from loan payoffs
and other asset sales, gains on the disposal of certain non-realty
assets and certain writedowns of discontinued operations and marketable
securities. Adjusting for the above-mentioned items, net income for 2008
would have been $56,127,000 or $2.03 per basic and $2.02 per diluted
common share, compared to $57,519,000 or $2.08 per basic and $2.07 per
diluted common share for 2007. Revenues for 2008 were $63,005,000
compared to $62,158,000 in 2007.
FFO for the year ended December 31, 2008 was $65,207,000, or $2.35 per
basic and diluted common share compared to $94,912,000 or $3.43 per
basic and $3.42 per diluted common share in 2007. Adjusting for the
above-mentioned items which affect the comparability of results to the
same period one year ago, FFO for 2008 would have been $63,824,000 or
$2.30 per basic and diluted common share, compared to $69,176,000 or
$2.50 per basic and $2.49 per diluted common share for 2007.
Net income for the three months ended December 31, 2008 was $13,367,000
or $.48 per basic and diluted common share compared to net income of
$29,435,000 or $1.06 per basic and diluted common share for the same
period in 2007. Adjusting for the above-mentioned items which affect the
comparability of results to the same period one year ago, net income for
the fourth quarter of 2008 would have been $13,505,000 or $.49 per basic
and diluted common share compared to net income of $14,698,000 or $.53
per basic and diluted common share for the same period in 2007. Revenues
for the fourth quarter of 2008 were $15,774,000 compared to $15,014,000
for the fourth quarter of 2007.
FFO for the three months ended December 31, 2008, was $15,297,000 or
$.55 per basic and diluted common share compared to $19,735,000 or $.71
per basic and diluted common share for the same period in 2007.
Adjusting for the above-mentioned items which affect the comparability
of results to the same period one year ago, FFO for the fourth quarter
of 2008 would have been $15,435,000 or $.56 per basic and diluted common
share compared to $17,467,000 or $.63 per basic and diluted common share
for the same period in 2007.
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 Twelve Months Ended
December 31 December 31
2008 2007 2008 2007
Revenues:
Mortgage interest $ 2,452 $ 2,216 $ 9,666 $ 11,308
income
Rental income 13,322 12,798 53,339 50,850
$ 15,774 $ 15,014 $ 63,005 $ 62,158
Expenses:
Interest expense $ 60 $ 150 $ 308 $ 4,625
Depreciation 1,952 2,029 7,888 8,192
Amortization of 3 4 15 75
loan costs
Legal expense 557 525 1,598 1,079
Franchise, excise 121 (57 ) 647 273
and other taxes
General and 1,346 1,219 3,585 5,657
administrative
Loan and realty
losses - (1,238 ) - (24,238 )
(recoveries)
$ 4,039 $ 2,632 $ 14,041 $ (4,337 )
Income Before
Non-Operating $ 11,735 $ 12,382 $ 48,964 $ 66,495
Income
Non-operating
income (investment 2,023 3,454 6,487 12,464
Interest and
other)
Income From
Continuing $ 13,758 $ 15,836 $ 55,451 $ 78,959
Operations
Discontinued
Operations
Income from
operations - (391 ) 1,130 2,059 4,338
discontinued
Net gain on sale - 12,469 - 13,138
of real estate
$ (391 ) $ 13,599 $ 2,059 $ 17,476
Net income $ 13,367 $ 29,435 $ 57,510 $ 96,435
Weighted average
common shares
outstanding:
Basic 27,573,294 27,703,539 27,706,106 27,703,464
Diluted 27,578,380 27,772,637 27,731,951 27,783,862
Earnings per share:
Basic:
Income from
continuing $ 0.49 $ 0.57 $ 2.00 $ 2.85
operations
Discontinued (0.01 ) 0.49 0.08 0.63
operations
Net income
available to $ 0.48 $ 1.06 $ 2.08 $ 3.48
common
stockholders
Diluted:
Income from
continuing $ 0.49 $ 0.57 $ 2.00 $ 2.84
operations
Discontinued (0.01 ) 0.49 0.07 0.63
operations
Net income
available to $ 0.48 $ 1.06 $ 2.07 $ 3.47
common
stockholders
Funds from
operations
Basic $ 15,297 $ 19,735 $ 65,207 $ 94,912
Diluted $ 15,297 $ 19,735 $ 65,207 $ 94,912
Funds from
operations per
common share
Basic $ 0.55 $ 0.71 $ 2.35 $ 3.43
Diluted $ 0.55 $ 0.71 $ 2.35 $ 3.42
Dividends declared $ 0.69 $ 1.35 $ 2.42 $ 2.85
per common share
In accordance with Statement of Financial Accounting Standard No. 144, the
results of operations for facilities meeting the accounting criteria as being
sold or held for sale, including the gain or loss on such sales, have been
reported in the current and prior periods as discontinued operations. The
reclassifications to retrospectively reflect the disposition of these facilities
had no impact on previously reported net income.
Selected Income Statement Data
(in thousands)
December 31, December 31,
2008 2007
Net income as reported in financial statements $ 57,510 $ 96,435
Less: income from recoveries of previous writedowns,
gains on the sale and deconsolidation of certain
facilities, gains from loan payoffs and other asset (1,383 ) (38,916 )
sales, gains on the disposal of certain non-realty
assets and certain writedowns of discontinued
operations and marketable securities.
Net income adjusted by items affecting comparability $ 56,127 $ 57,519
Selected Balance Sheet Data
(in thousands)
December 31 December 31
2008 2007
Real estate properties, net $ 181,332 $ 187,455
Mortgages receivable, net 108,640 141,655
Preferred stock investment 38,132 38,132
Cash and marketable securities 126,836 131,172
Notes and bonds payable 3,987 9,512
Stockholders' equity 429,615 446,138
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 Twelve Months Ended
December 31 December 31
2008 2007 2008 2007
Net income 13,367 29,435 57,510 96,435
Elimination of
non-cash items in
net income:
Real estate 1,930 1,823 7,658 7,868
depreciation
Real estate
depreciation in - 946 39 3,789
discontinued
operations
Gain on sale of
real - - - (42 )
estate-continuing
operations
Gain on sale of
real - (12,469 ) - (13,138 )
estate-discontinued
operations
Basic funds from 15,297 19,735 65,207 94,912
operations
Other Adjustments - - - -
Diluted funds from $ 15,297 $ 19,735 $ 65,207 $ 94,912
operations
Basic funds from $ 0.55 $ 0.71 $ 2.35 $ 3.43
operations per share
Diluted funds from $ 0.55 $ 0.71 $ 2.35 $ 3.42
operations per share
Shares for basic
funds from 27,573,294 27,703,539 27,706,106 27,703,464
operations per share
Shares for diluted
funds from 27,578,380 27,772,637 27,731,951 27,783,862
operations per share
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, 2008
Portfolio Statistics Investment
Properties Investment Percentage
Real Estate Properties 72 $ 181,332,000 62.5 %
Mortgages and Notes Receivables 51 108,640,000 37.5 %
Total Portfolio 123 $ 289,972,000 100.0 %
Real Estate Properties Properties Beds Investments
Long term Care Centers 49 6,788 $ 102,264,000
Assisted Living Facilities 14 1,133 56,106,000
Medical Office Buildings 4 124,427 sq.ft. 9,140,000
Independent Living Facilities 4 458 7,531,000
Hospitals 1 55 6,291,000
Total Real Estate Properties 72 $ 181,332,000
Mortgages and Notes Receivables Properties Beds Investments
Long term Care Centers 34 3,581 $ 104,890,000
Developmentally Disabled 17 108 3,750,000
Total Mortgage Portfolio 51 $ 108,640,000
Total Portfolio 123 $ 289,972,000
Summary of Facilities by Type:
Percentage of Total
Properties Total Dollars Dollars
Long term Care Centers 83 71.4 % $ 207,154,000
Assisted Living Facilities 14 19.3 % 56,106,000
Medical Office Buildings 4 3.2 % 9,140,000
Independent Living Facilities 4 2.6 % 7,531,000
Hospitals 1 2.2 % 6,291,000
Developmentally Disabled 17 1.3 % 3,750,000
Total Portfolio 123 100.0 % $ 289,972,000
Portfolio by Operator Type
# of Percentage of Total
Properties Total Dollars Dollars
Regional 47 58.0 % $ 168,263,000
Public 65 32.1 % 92,973,000
Small Operator 11 9.9 % 28,736,000
Total Portfolio 123 100.0 % $ 289,972,000
Public Operators Percentage
Of Total Dollar
Portfolio Amount
National HealthCare Corp. 19.7 % $ 57,217,000
Sunrise Senior Living Services 4.2 % 12,282,000
Community Health Systems, Inc. 4.1 % 11,780,000
Sun Healthcare 2.8 % 7,944,000
Res-Care, Inc. 1.3 % 3,750,000
Total Public Operators 32.1 % $ 92,973,000
National Health Investors, Inc. Summary of Facilities by State December 31, 2008
Percent
Acute Dev. Asst. Retire- Investment Total
LTC Care MOB Disab. Living ment Total Amount Portfolio
Florida 11 1 14 4 30 $ 71,516,000 24.7 %
Texas 8 2 10 47,377,000 16.3 %
Tennessee 20 3 3 2 28 26,072,000 9.0 %
Missouri 8 1 9 20,430,000 7.0 %
Virginia 8 8 19,274,000 6.6 %
Arizona 1 4 5 16,898,000 5.8 %
Kansas 5 5 13,382,000 4.6 %
Massachusetts 4 4 14,596,000 5.0 %
New Jersey 1 1 12,282,000 4.2 %
Georgia 6 6 9,445,000 3.3 %
New Hampshire 3 3 8,862,000 3.1 %
Kentucky 2 1 3 7,148,000 2.5 %
South 4 1 5 10,567,000 3.6 %
Carolina
Idaho 1 1 2 4,829,000 1.7 %
Pennsylvania 1 1 4,069,000 1.4 %
Alabama 2 2 1,860,000 0.6 %
Illinois 1 1 1,365,000 0.5 %
83 1 4 17 14 4 123 $ 289,972,000 100.0 %
Source: National Health Investors, Inc.
Contact: National Health Investors, Inc.
Roger R. Hopkins, 615-890-9100
Chief Accounting Officer