MURFREESBORO, Tenn.--(BUSINESS WIRE)--
National Health Investors, Inc. (NYSE:NHI) announced today its
normalized Funds From Operations ("FFO") and net income for the three
and nine months ended September 30, 2009.
Third Quarter Highlights:
-- Normalized FFO improved to $0.61 per basic and diluted common share as
compared to $0.59 for the same period in 2008
-- FFO increased 10.2% compared to the same period in 2008
-- NHI completed a previously announced $15.8 million purchase/leaseback of
a skilled nursing facility built in 2007 in Texas operated by affiliates
of Legend Healthcare, LLC
Normalized FFO for the three months ended September 30, 2009 was
$16,900,000 or $0.61 per basic and diluted common share compared to
$16,460,000 or $0.59 per basic and diluted common share for the same
period in 2008. Normalized FFO for the three months ended September 30,
2009 excludes the collection of past due rent and interest from two
customers totaling $2,654,000 and other one-time items totaling
$141,000. Normalized FFO for the three months ended September 30, 2008
excludes asset write-downs of $2,712,000 and the recognition into income
of deferred credits totaling $4,121,000.
FFO, as defined by the National Association of Real Estate Investment
Trusts ("NAREIT"), for the three months ended September 30, 2009 was
$19,695,000 or $0.71 per basic and diluted common share compared to
$17,869,000 or $0.64 per basic and diluted common share for the same
period in 2008. Net income for the three months ended September 30, 2009
was $17,473,000 or $0.63 per basic and diluted common share compared to
net income of $15,951,000 or $0.57 per basic and diluted common share
for the same period in 2008.
Normalized FFO for the nine months ended September 30, 2009 was
$47,690,000 or $1.73 per basic and diluted common share compared to
$48,199,000 or $1.74 per basic and $1.73 per diluted common share for
the same period in 2008. Normalized FFO for the nine months ended
September 30, 2009 excludes the collection of past due rent and interest
from two customers totaling $2,654,000, recoveries of previous
write-downs and gains of $1,719,000, the recognition into income of
deferred credits totaling $1,493,000 and other one-time items totaling
$443,000. Normalized FFO for the nine months ended September 30, 2008
excludes asset write-downs of $2,976,000, a restricted stock forfeiture
of $566,000 and the recognition into income of deferred credits totaling
$4,121,000.
FFO for the nine months ended September 30, 2009 was $53,999,000 or
$1.96 per basic and diluted common share compared to $49,910,000 or
$1.80 per basic and diluted common share for the same period in 2008.
Net income for the nine months ended September 30, 2009 was $47,938,000
or $1.74 per basic and diluted common share, compared to $44,143,000 or
$1.59 per basic and diluted common share for the same period in 2008.
National Health Investors, Inc. is a healthcare real estate investment
trust that specializes in the financing of healthcare real estate by
purchase and leaseback transactions and by mortgage loans. NHI's
investments involve 125 properties in 18 states and include skilled
nursing facilities, assisted living facilities, independent living
facilities, medical office buildings, residential projects for the
developmentally disabled and an acute care hospital. The common stock of
the company trades on the New York Stock Exchange with the symbol NHI.
Additional information about NHI, including its 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.
Reconciliation of Funds From Operations and Normalized Funds From Operations(1)(2)(3)
(in thousands, except share and per share amounts)
Table
1
Three months ended Nine months ended
September September
2009 2008 2009 2008
Net income $ 17,473 $ 15,951 $ 47,938 $ 44,143
Elimination
of non-cash
items in net
income:
Real estate 2,222 1,905 6,061 5,728
depreciation
Real estate
depreciation
in - 13 - 39
discontinued
operations
Funds from $ 19,695 $ 17,869 $ 53,999 $ 49,910
operations
Collection
of past due
rent and (2,654 ) - (2,654 ) -
interest
amounts
Asset
write-downs
and - 2,712 (1,719 ) 2,976
(recoveries
of previous
writedowns)
Recognition
of deferred - (4,121 ) (1,493 ) (4,121 )
credits
Restricted
stock - - - (566 )
forfeiture
Other
one-time (141 ) - (443 ) -
items
Normalized
funds from $ 16,900 $ 16,460 $ 47,690 $ 48,199
operations
Weighted
average
common
shares
outstanding
Basic 27,589,161 27,767,394 27,580,568 27,750,377
Diluted 27,642,237 27,785,708 27,605,504 27,783,141
Funds from
operations
per share:
Basic $ 0.71 $ 0.64 $ 1.96 $ 1.80
Diluted $ 0.71 $ 0.64 $ 1.96 $ 1.80
Normalized
FFO per
share:
Basic $ 0.61 $ 0.59 $ 1.73 $ 1.74
Diluted $ 0.61 $ 0.59 $ 1.73 $ 1.73
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
(1) 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.
Normalized FFO excludes from FFO any material one-time items reflected in
GAAP net income. Excluded items may include, but are not limited to,
(2) impairments of assets, gains and losses attributable to the acquisition and
disposition of assets and liabilities, and recoveries of previous
write-downs.
Our computations above are intended to comply with the SEC's interpretation
(3) 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.
Selected Balance Sheet Data
(in thousands)
Table 2
September 30, 2009 December 31, 2008
Real estate properties, net $ 231,442 $ 181,332
Mortgages receivable, net 98,372 108,640
Preferred stock investment, at 38,132 38,132
cost
Cash and cash equivalents 63,571 100,242
Marketable securities 22,960 26,594
Bonds payable 1,400 3,987
Stockholders' equity 435,872 429,615
Condensed Statements of Income
(in thousands, except share and per share amounts)
Table
3
Three months ended Nine months ended
September 30, September 30,
2009 2008 2009 2008
Revenues:
Rental income $ 17,054 $ 13,220 $ 44,570 $ 40,017
Mortgage
interest 2,568 2,400 7,071 7,214
income
19,622 15,620 51,641 47,231
Expenses:
Interest 15 62 77 247
expense
Depreciation 2,317 1,925 6,210 5,935
Amortization 3 3 9 11
of loan costs
Legal expense 337 310 1,272 1,041
Franchise,
excise and 135 108 549 525
other taxes
General and 1,194 453 4,040 2,242
administrative
Loan and
realty losses - - (640 ) -
(recoveries)
4,001 2,861 11,517 10,001
Income Before
Non-Operating 15,621 12,759 40,124 37,230
Income
Non-operating
income
(investment 1,856 701 5,728 4,464
interest and
other)
Income From
Continuing 17,477 13,460 45,852 41,694
Operations
Discontinued
Operations
Income from
operations - (4 ) 2,491 2,086 2,449
discontinued
Net income $ 17,473 $ 15,951 $ 47,938 $ 44,143
Weighted
average common
shares
outstanding:
Basic 27,589,161 27,767,394 27,580,568 27,750,377
Diluted 27,642,237 27,785,708 27,605,504 27,783,141
Earnings per
share:
Basic:
Income from
continuing $ 0.63 $ 0.48 $ 1.66 $ 1.50
operations
Discontinued - 0.09 0.08 0.09
operations
Net income
available to $ 0.63 $ 0.57 $ 1.74 $ 1.59
common
stockholders
Diluted:
Income from
continuing $ 0.63 $ 0.48 $ 1.66 $ 1.50
operations
Discontinued - 0.09 0.08 0.09
operations
Net income
available to $ 0.63 $ 0.57 $ 1.74 $ 1.59
common
stockholders
Funds from $ 19,695 $ 17,869 $ 53,999 $ 49,910
operations
Funds from
operations per
common share
Basic $ 0.71 $ 0.64 $ 1.96 $ 1.80
Diluted $ 0.71 $ 0.64 $ 1.96 $ 1.80
Quarterly
dividend $ 0.55 $ 0.55 $ 1.65 $ 1.65
declared per
common share
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.
Source: National Health Investors, Inc.
Contact: National Health Investors, Inc.
Roger R Hopkins, 615-890-9100
Chief Accounting Officer