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 six months ended June 30, 2010.
Second Quarter Highlights
-
Normalized FFO improved 22.8% to $0.70 per basic and diluted common
share compared with $0.57 in the same period of 2009
-
FFO increased 14.7% compared with the same period in 2009
-
Completed real estate and mortgage loan investments totaling $16.9
million and announced a $20 million loan participation agreement with
Capital Funding Group
Increase in Third Quarter Dividend
The Company announced it will pay a third quarter dividend of $0.605 per
common share to shareholders of record on September 30, 2010 and payable
on November 10, 2010. This dividend represents an increase of 5.2% from
the second quarter dividend which would represent an annualized dividend
of $2.42 per share.
Financial Results
Normalized FFO for the three months ended June 30, 2010, was
$19,255,000, or $0.70 per basic and diluted common share, compared with
$15,693,000, or $0.57 per basic and diluted common share, for the same
period in 2009.
FFO, as defined by the National Association of Real Estate Investment
Trusts (“NAREIT”), for the three months ended June 30, 2010, was
$19,868,000, or $0.72 per basic and diluted common share, compared with
$17,327,000, or $0.63 per basic and diluted common share, for the same
period in 2009. Net income for the three months ended June 30, 2010, was
$19,189,000, or $0.69 per basic and diluted common share, compared with
net income of $15,415,000, or $0.55 per basic and diluted common share,
for the same period in 2009.
Normalized FFO for the six months ended June 30, 2010, was $36,429,000,
or $1.32 per basic and diluted common share, compared with $30,790,000,
or $1.12 per basic and diluted common share, for the same period in 2009.
FFO for the six months ended June 30, 2010, was $38,272,000, or $1.38
per basic and diluted common share, compared with $34,304,000, or $1.24
per basic and diluted common share, for the same period in 2009. Net
income for the six months ended June 30, 2010, was $35,132,000, or $1.27
per basic and diluted common share, compared with net income of
$30,464,000, or $1.10 per basic and diluted common share, for the same
period in 2009.
2010 Guidance
The Company currently forecasts an increase in normalized FFO for 2010
from 17.2% to 18.5% compared with 2009. The Company’s guidance range for
the full year 2010 for EPS, FFO and Normalized FFO per share, with
underlying assumptions and timing of certain transactions, is set forth
and reconciled below:
|
|
Full-Year
2010 Range
|
| |
Low - High
|
|
Net income per diluted share
| |
$2.34 - $2.39
|
|
Plus: Real estate depreciation
| |
0.40 - 0.40
|
FFO per diluted share | | $2.74 - $2.79 |
| |
|
|
Less: One-time items
| |
(0.03) - (0.03)
|
| Normalized FFO per diluted share | | $2.71 - $2.76 |
| |
|
Following are current assumptions reflected in the company’s full-year
2010 guidance for the low and high end of the guidance range:
-
Total investments of $30 million in the second half of the year
(assumed for both low and high end).
-
Existing and future investments are funded through borrowings on our
revolving credit facility (assumed for the high end).
-
New debt financings of $100 million - $125 million to fund existing
and future investments (assumed for the low end).
-
Corporate G&A expenses of $8.4 million to $9.0 million (assumed for
both low and high end).
The Company’s guidance range reflects the existence of volatile economic
conditions, but does not assume any material deterioration in tenant
credit quality and/or performance of its portfolio. The guidance is
based on a number of assumptions, many of which are outside the
Company’s control and all of which are subject to change. The Company’s
guidance may change if actual results vary from these assumptions.
Investor Conference Call and Webcast
NHI will host a conference call on Wednesday, August 4, 2010, at
10 a.m. ET, to discuss second quarter results. The number to call for
this interactive teleconference is (212) 231-2906 with the confirmation
number, 21476530. The live broadcast of NHI’s quarterly conference call
will be available online at http://www.videonewswire.com/event.asp?id=70952
on Wednesday, August 4, 2010, at 10 a.m. ET. The online replay will
follow shortly after the call and continue for approximately 90 days.
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 skilled nursing facilities, assisted living
facilities, independent living facilities, medical office buildings, an
acute care hospital, an acute psychiatric hospital and a transitional
rehabilitation center. 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.Investors
are urged to carefully review and consider the various disclosures made
by NHI in its periodic reports filed with the Securities and Exchange
Commission, including the risk factors and other information disclosed
in NHI’s Annual Report on Form 10-K for the most recently ended fiscal
year. Copies of these filings are available at no cost on the SEC's web
site at http://www.sec.gov
or on NHI’s web site at http://www.nhinvestors.com.
|
|
|
|
|
|
|
|
|
|
Reconciliation of Funds From Operations and Normalized Funds
From Operations(1)(2) |
| (in thousands, except share and per share amounts) |
|
|
| |
| |
| |
| | | |
Three months ended
| |
Six months ended
|
| | | |
June 30,
| |
June 30,
|
| | | |
2010
|
|
2009
| |
2010
|
|
2009
|
| | | | | | | | | | | | | |
|
|
Net income
| |
$
|
19,189
| | |
$
|
15,415
| | |
$
|
35,132
| | |
$
|
30,464
| |
|
Real estate depreciation in continuing operations
| | |
2,654
| | | |
1,635
| | | |
5,087
| | | |
3,287
| |
|
Real estate depreciation in discontinued operations
| | |
29
| | | |
277
| | | |
57
| | | |
553
| |
|
Net gain on sale of real estate
| |
|
(2,004
|
)
| |
|
-
|
| |
|
(2,004
|
)
| |
|
-
|
|
|
Funds from operations
| |
$
|
19,868
| | |
$
|
17,327
| | |
$
|
38,272
| | |
$
|
34,304
| |
|
Collection and recognition into income of past due rent
| | |
-
| | | |
-
| | | |
(1,520
|
)
| | |
-
| |
|
Recoveries of previous write-downs
| | |
(573
|
)
| | |
-
| | | |
(573
|
)
| | |
(1,077
|
)
|
|
Recognition of deferred credits
| | |
-
| | | |
(1,493
|
)
| | |
-
| | | |
(1,493
|
)
|
|
Settlement payment on terminated lease
| | |
-
| | | |
-
| | | |
-
| | | |
(642
|
)
|
|
Other one-time items
| |
|
(40
|
)
| |
|
(141
|
)
| |
|
250
|
| |
|
(302
|
)
|
|
Normalized FFO
| |
$
|
19,255
|
| |
|
15,693
|
| |
|
36,429
|
| |
|
30,790
|
|
| | | | | | | | | | | | | |
|
|
Weighted average common shares outstanding:
| | | | | | | | | | | | |
|
Basic
| | |
27,665,629
| | | |
27,578,000
| | | |
27,649,003
| | | |
27,576,272
| |
|
Diluted
| | |
27,729,034
| | | |
27,592,050
| | | |
27,705,257
| | | |
27,587,139
| |
| | | | | | | | | | | | | |
|
|
FFO per share:
| | | | | | | | | | | | |
|
Basic
| |
$
|
0.72
| | |
$
|
0.63
| | |
$
|
1.38
| | |
$
|
1.24
| |
|
Diluted
| |
$
|
0.72
| | |
$
|
0.63
| | |
$
|
1.38
| | |
$
|
1.24
| |
| | | | | | | | | | | | | |
|
|
Normalized FFO per share:
| | | | | | | | | | | | |
|
Basic
| |
$
|
0.70
| | |
$
|
0.57
| | |
$
|
1.32
| | |
$
|
1.12
| |
|
Diluted
| |
$
|
0.70
| | |
$
|
0.57
| | |
$
|
1.32
| | |
$
|
1.12
| |
| | | | | | | | | | | | |
|
| | | | | | | | | | | | |
|
| (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) Normalized FFO excludes from FFO any material one-time items
reflected in GAAP net income. Excluded items may include, but are
not limited to, impairments of assets, gains and losses attributable
to the acquisition and disposition of assets and liabilities, and
recoveries of previous write-downs. |
|
| | |
| | |
| | | | | |
|
| | | | | |
|
| | | | | |
|
| | | | | |
|
| Selected Balance Sheet Data | | | | | | |
| (in thousands) | | | | | | |
| | |
June 30, 2010
| | |
December 31, 2009
|
|
Real estate properties, net
| |
$
|
326,577
| |
$
|
223,861
|
|
Mortgages receivable, net
| | |
76,087
| | |
94,588
|
|
Preferred stock investment, at cost
| | |
38,132
| | |
38,132
|
|
Cash and cash equivalents
| | |
11,744
| | |
45,718
|
|
Marketable securities
| | |
19,832
| | |
21,322
|
|
Borrowings under revolving credit facility
| | |
43,823
| | |
-
|
|
Stockholders' equity
| | |
438,523
| | |
434,612
|
|
|
|
|
|
|
|
|
|
|
| Condensed Statements of Income |
| (in thousands, except share and per share amounts) |
|
|
| |
| |
| |
| | | |
Three months ended
| |
Six months ended
|
| | | |
June 30,
| |
June 30,
|
| | | |
2010
|
|
2009
| |
2010
|
|
2009
|
|
Revenues:
| | | | | | | | | | | | |
|
Rental income
| |
$
|
17,646
| | |
$
|
12,118
| | |
$
|
35,979
| | |
$
|
24,776
| |
|
Mortgage interest income
| |
|
1,602
|
| |
|
2,590
|
| |
|
3,597
|
| |
|
4,503
|
|
| | | |
|
19,248
|
| |
|
14,708
|
| |
|
39,576
|
| |
|
29,279
|
|
| | | | | | | | | | | | | |
|
|
Expenses:
| | | | | | | | | | | | |
|
Depreciation
| | |
2,823
| | | |
1,660
| | | |
5,383
| | | |
3,327
| |
|
Legal
| | |
174
| | | |
485
| | | |
455
| | | |
936
| |
|
Franchise, excise and other taxes
| | |
252
| | | |
139
| | | |
530
| | | |
414
| |
|
General and administrative
| | |
1,331
| | | |
1,257
| | | |
5,137
| | | |
2,845
| |
|
Loan and realty losses (recoveries)
| |
|
(573
|
)
| |
|
-
|
| |
|
(573
|
)
| |
|
(1,077
|
)
|
| | | |
|
4,007
|
| |
|
3,541
|
| |
|
10,932
|
| |
|
6,445
|
|
| | | | | | | | | | | | | |
|
|
Income before non-operating items
| | |
15,241
| | | |
11,167
| | | |
28,644
| | | |
22,834
| |
|
Non-operating income
| | |
1,285
| | | |
1,700
| | | |
2,717
| | | |
3,435
| |
|
Interest expense and amortization of loan costs
| |
|
(474
|
)
| |
|
(28
|
)
| |
|
(702
|
)
| |
|
(70
|
)
|
|
Income from continuing operations
| | |
16,052
| | | |
12,839
| | | |
30,659
| | | |
26,199
| |
| | | | | | | | | | | | | |
|
|
Income from operations - discontinued
| | |
1,133
| | | |
2,576
| | | |
2,469
| | | |
4,265
| |
|
Net gain on sale of real estate
| |
|
2,004
|
| |
|
-
|
| |
|
2,004
|
| |
|
-
|
|
|
Income from discontinued operations
| |
|
3,137
|
| |
|
2,576
|
| |
|
4,473
|
| |
|
4,265
|
|
| | | | | | | | | | | | | |
|
|
Net income
| |
$
|
19,189
|
| |
$
|
15,415
|
| |
$
|
35,132
|
| |
$
|
30,464
|
|
| | | | | | | | | | | | | |
|
|
Weighted average common shares outstanding:
| | | | | | | | | | | | |
|
Basic
| | |
27,665,629
| | | |
27,578,000
| | | |
27,649,003
| | | |
27,576,272
| |
|
Diluted
| | |
27,729,034
| | | |
27,592,050
| | | |
27,705,257
| | | |
27,587,139
| |
| | | | | | | | | | | | | |
|
|
Earnings per share:
| | | | | | | | | | | | |
|
Basic:
| | | | | | | | | | | | |
| |
Income from continuing operations
| |
$
|
0.58
| | |
$
|
0.46
| | |
$
|
1.11
| | |
$
|
0.95
| |
| |
Discontinued operations
| |
|
0.11
|
| |
|
0.09
|
| |
|
0.16
|
| |
|
0.15
|
|
| |
Net income available to common stockholders
| |
$
|
0.69
|
| |
$
|
0.55
|
| |
$
|
1.27
|
| |
$
|
1.10
|
|
| | | | | | | | | | | | | |
|
|
Diluted:
| | | | | | | | | | | | |
| |
Income from continuing operations
| |
$
|
0.58
| | |
$
|
0.46
| | |
$
|
1.11
| | |
$
|
0.95
| |
| |
Discontinued operations
| |
|
0.11
|
| |
|
0.09
|
| |
|
0.16
|
| |
|
0.15
|
|
| |
Net income available to common stockholders
| |
$
|
0.69
|
| |
$
|
0.55
|
| |
$
|
1.27
|
| |
$
|
1.10
|
|
| | | | | | | | | | | | | |
|
|
Dividends declared per common share
| |
$
|
0.575
| | |
$
|
0.55
| | |
$
|
1.15
| | |
$
|
1.10
| |
Source: National Health Investors, Inc.
Contact:
National Health Investors, Inc.
Roger R. Hopkins, Chief Accounting
Officer, 615-890-9100