MURFREESBORO, Tenn.--(BUSINESS WIRE)--
National Health Investors, Inc. (NYSE:NHI) announced today its funds
from operations ("FFO") and net income for the three and six months
ended June 30, 2009.
Second Quarter Highlights:
-- FFO increased from $16,716,000 to $17,326,000 or 3.7% compared to the
same period in 2008
-- Net income increased from $14,793,000 to $15,415,000 or 4.2% compared to
the same period in 2008
-- Invested $43.7 million in three skilled nursing facilities and a
mortgage note receivable and committed to purchase a fourth skilled
nursing facility in August 2009 for $15.8 million
FFO for the three months ended June 30, 2009 was $17,326,000 or $0.63
per basic and diluted common share compared to $16,716,000 or $0.60 per
basic and diluted common share for the same period in 2008 an increase
of 3.7%. Net income for the three months ended June 30, 2009 was
$15,415,000 or $0.55 per basic and diluted common share compared to net
income of $14,793,000 or $0.53 per basic and diluted common share for
the same period in 2008, an increase of 4.2%.
During the second quarter, NHI invested $39.8 million in the purchase of
three skilled nursing facilities in Texas and committed to purchase a
fourth facility for $15.8 million in August 2009, which it has done. NHI
also invested $3.9 million in a discounted mortgage note receivable.
FFO for the six months ended June 30, 2009 was $34,304,000 or $1.24 per
basic and diluted common share compared to $32,041,000 or $1.15 per
basic and diluted common share for the same period in 2008, an increase
of 7.1%. Net income for the six months ended June 30, 2009 was
$30,464,000 or $1.10 per basic and diluted common share, compared to
$28,192,000 or $1.02 per basic and $1.01 per diluted common share for
the same period in 2008, an increase of 8.1%.
National Health Investors, Inc. is a real estate investment trust (REIT)
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 Six months ended
June 30, 2009 June 30, 2008 June 30, 2009 June 30, 2008
Revenues:
Rental income $ 13,487 $ 13,835 $ 27,516 $ 26,797
Mortgage interest 2,590 2,417 4,503 4,814
income
16,077 16,252 32,019 31,611
Expenses:
Interest expense 24 80 62 185
Depreciation 1,942 2,004 3,892 4,011
Amortization of 4 4 8 8
loan costs
Legal expense 485 597 936 731
Franchise, excise 139 194 414 417
and other taxes
General and 1,257 341 2,845 1,788
administrative
Loan and realty
losses - - (640 ) -
(recoveries)
3,851 3,220 7,517 7,140
Income Before
Non-Operating 12,226 13,032 24,502 24,471
Income
Non-operating
income
(investment 1,700 1,785 3,872 3,763
interest and
other)
Income From
Continuing 13,926 14,817 29,016 28,234
Operations
Discontinued
Operations
Income from
operations - 1,489 (24 ) 2,090 (42 )
discontinued
Net income $ 15,415 $ 14,793 $ 30,464 $ 28,192
Weighted average
common shares
outstanding:
Basic 27,578,000 27,753,051 27,576,272 27,741,868
Diluted 27,592,050 27,777,291 27,587,139 27,781,858
Earnings per
share:
Basic:
Income from
continuing $ 0.50 $ 0.53 $ 1.03 $ 1.02
operations
Discontinued 0.05 - 0.07 -
operations
Net income
available to $ 0.55 $ 0.53 $ 1.10 $ 1.02
common
stockholders
Diluted:
Income from
continuing $ 0.50 $ 0.53 $ 1.03 $ 1.01
operations
Discontinued 0.05 - 0.07 -
operations
Net income
available to $ 0.55 $ 0.53 $ 1.10 $ 1.01
common
stockholders
Funds from $ 17,326 $ 16,716 $ 34,304 $ 32,041
operations
Funds from
operations per
common share
Basic $ 0.63 $ 0.60 $ 1.24 $ 1.15
Diluted $ 0.63 $ 0.60 $ 1.24 $ 1.15
Quarterly
dividend declared $ 0.55 $ 0.55 $ 1.10 $ 1.10
per common share
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.
Selected Balance Sheet Data
(in thousands)
June 30, 2009 December 31, 2008
Real estate properties, net $ 217,956 $ 181,332
Mortgages receivable, net 105,745 108,640
Preferred stock investment, at cost 38,132 38,132
Cash and cash equivalents 65,254 100,242
Marketable securities 23,726 26,594
Bonds payable 2,762 3,987
Stockholders' equity 430,424 429,615
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 Six months ended
June 30, 2009 June 30, 2008 June 30, 2009 June 30, 2008
Net income $ 15,415 $ 14,793 $ 30,464 $ 28,192
Elimination of
non-cash items in
net income:
Real estate 1,911 1,910 3,840 3,823
depreciation
Real estate
depreciation in - 13 - 26
discontinued
operations
Funds from $ 17,326 $ 16,716 $ 34,304 $ 32,041
operations
Basic funds from $ 0.63 $ 0.60 $ 1.24 $ 1.15
operations per share
Diluted funds from $ 0.63 $ 0.60 $ 1.24 $ 1.15
operations per share
Shares for basic
funds from 27,578,000 27,753,051 27,576,272 27,741,868
operations per share
Shares for diluted
funds from 27,592,050 27,777,291 27,587,139 27,781,858
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. FFO 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.
Investments in Real Estate (excluding corporate office) and Mortgage Notes
Receivable
June 30, 2009
Portfolio Statistics Investment
Properties Percentage Investment
Real Estate Properties 75 67.3 % $ 217,166,000
Mortgages and Notes Receivables 50 32.7 % 105,745,000
Total Real Estate Portfolio 121 100.0 % $ 322,911,000
Real Estate Properties Properties Beds Investment
Long Term Care Centers 52 7,158 $ 139,450,000
Assisted Living Facilities 14 1,141 55,280,000
Medical Office Buildings 4 124,427 sq.ft. 8,938,000
Independent Living Facilities 4 456 7,354,000
Hospitals 1 55 6,144,000
Total Real Estate Properties 75 $ 217,166,000
Mortgage Notes Receivables Properties Beds Investment
Long Term Care Centers 32 3,481 $ 98,193,000
Assisted Living 1 70 $ 3,911,000
Developmentally Disabled 17 108 3,641,000
Total Mortgage Notes Receivable 50 3,659 105,745,000
Total Real Estate Portfolio 125 $ 322,911,000
Summary of Facilities by Type:
Investment
Properties Percentage Investment
Long Term Care Centers 84 73.6 % $ 237,643,000
Assisted Living Facilities 15 18.3 % 59,191,000
Medical Office Buildings 4 2.8 % 8,938,000
Independent Living Facilities 4 2.3 % 7,354,000
Hospitals 1 1.9 % 6,144,000
Developmentally Disabled 17 1.1 % 3,641,000
Total Real Estate Portfolio 125 100.0 % $ 322,911,000
Portfolio by Operator Type
Investment
Properties Percentage Investment
Public 65 27.9 % $ 90,356,000
Regional 51 62.7 % 202,351,000
Small Operator 9 9.4 % 30,204,000
125 100.0 % $ 322,911,000
Public Operators
Investment
Investment Percentage
National HealthCare Corp. $ 55,269,000 17.0%
Sunrise Senior Living, Inc. 12,122,000 3.8%
Community Health Systems, Inc. 11,520,000 3.6%
Sun Healthcare Group, Inc. 7,804,000 2.4%
Res-Care, Inc. 3,641,000 1.1%
Total Public Operators $ 90,356,000 27.9%
National Health Investors, Inc. Summary of Facilities by State June 30, 2009
Percent
Asst. Independent Dev. Investment Total
LTC Living MOB Living Hospitals Disab. Total Amount Portfolio
Texas 11 - 2 - - - 13 86,426,000 26.8 %
Florida 11 4 1 - - 14 30 $ 70,372,000 21.8 %
Tennessee 20 3 - 2 - 3 28 25,287,000 7.8 %
Missouri 8 - - 1 - - 9 19,977,000 6.2 %
Arizona 1 4 - - - - 5 16,644,000 5.1 %
Virginia 7 - - - - - 7 15,989,000 4.9 %
Massachusetts 4 - - - - - 4 13,939,000 4.3 %
Kansas 5 - - - - - 5 13,297,000 4.1 %
New Jersey - 1 - - - - 1 12,122,000 3.8 %
South 4 1 - - - - 5 10,335,000 3.2 %
Carolina
New Hampshire 3 - - - - - 3 8,463,000 2.6 %
Georgia 5 - - - - - 5 7,282,000 2.3 %
Kentucky 2 - - - 1 - 3 6,959,000 2.2 %
Idaho 1 - - 1 - - 2 4,740,000 1.5 %
Pennsylvania - 1 - - - - 1 4,020,000 1.2 %
Minnesota - 1 - - - - 1 3,911,000 1.2 %
Alabama 2 - - - - - 2 1,810,000 0.6 %
Illinois - - 1 - - - 1 1,338,000 0.4 %
84 15 4 4 1 17 125 $ 322,911,000 100.0 %
Source: National Health Investors, Inc.
Contact: National Health Investors, Inc.
Roger R. Hopkins, Chief Accounting Officer, 615-890-9100