MURFREESBORO, Tenn.--(BUSINESS WIRE)--
National Health Investors, Inc. (NYSE:NHI) announced today its
normalized Funds From Operations ("FFO") and net income for the three
months and year ended December 31, 2009.
2009 Highlights
-- Normalized FFO improved to $2.33 per basic and diluted common share
compared with $2.29 in 2008
-- FFO increased 11.3% compared with 2008
-- Completed leaseback transactions of four skilled nursing facilities and
five assisted living facilities for a total of $83.8 million
-- Agreed to purchase six skilled nursing facilities in Florida for $67
million, which closed in February 2010 and concluded NHI's relationship
with Care Foundation of America ("CFA")
-- Subsequent to year-end, closed on a new $100 million revolving credit
facility to fund new investments
Financial Results
Normalized FFO for the three months ended December 31, 2009 was
$16,650,000, or $0.60 per basic and diluted common share, compared with
$15,468,000, or $0.56 per basic and diluted common share, for the same
period in 2008. Normalized FFO for the three months ended December 31,
2009 excludes $1,944,000 in gains and recoveries of previous write-downs
on the sale of marketable securities. Normalized FFO for the three
months ended December 31, 2008 excludes asset write-downs and realized
losses on the sale of marketable securities of $1,485,000 and other
one-time income items totaling $1,313,000.
FFO, as defined by the National Association of Real Estate Investment
Trusts ("NAREIT"), for the three months ended December 31, 2009 was
$18,594,000, or $0.67 per basic and diluted common share, compared with
$15,296,000, or $0.55 per basic and diluted common share, for the same
period in 2008. Net income for the three months ended December 31, 2009
was $16,291,000, or $0.59 and $0.58 per basic and diluted common share,
respectively, compared with net income of $13,367,000, or $0.50 and
$0.49 per basic and diluted common share, respectively, for the same
period in 2008.
Normalized FFO for 2009 was $64,341,000, or $2.33 per basic and diluted
common share, compared with $63,668,000, or $2.29 per basic and diluted
common share, for 2008. Normalized FFO for 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 $3,480,000, the
recognition into income related to the cancellation of liabilities
totaling $1,493,000 and other one-time items totaling $626,000.
Normalized FFO for 2008 excludes asset write-downs and losses on the
sale of marketable securities of $4,461,000, the recognition into income
of deferred credits totaling $4,121,000, a restricted stock forfeiture
of $566,000, and other one-time income items totaling $1,313,000.
FFO for 2009 was $72,594,000, or $2.63 per basic and diluted common
share, compared with $65,207,000, or $2.35 per basic and diluted common
share, for 2008. Net income for 2009 was $64,229,000, or $2.33 and $2.32
per basic and diluted common share, respectively, compared with
$57,510,000, or $2.08 and $2.07 per basic and diluted common share,
respectively, for 2008.
2010 Outlook and Guidance Policy
Based on the transactions completed in 2009 and to date in 2010, NHI
expects to report continued year-over-year Normalized FFO growth in
2010. NHI expects to initiate 2010 Normalized FFO guidance and the
corresponding future investment and expense assumptions in conjunction
with the Company's first quarter results in early May.
Investor Conference Call and Webcast
NHI will host a conference call on Monday, February 22, 2010, at
10 a.m. ET, to discuss its 2009 results and guidance for 2010. The
number to call for this interactive teleconference is (212) 231-2903
with the confirmation number, 21458462. The live broadcast of NHI's
quarterly conference call will be available online at http://www.videonewswire.com/event.asp?id=66053
on Monday, February 22, 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, 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. 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)(3)
(in thousands, except share and per share amounts)
Three months ended Twelve months ended
December 31, December 31,
2009 2008 2009 2008
Net income $ 16,291 $ 13,367 $ 64,229 $ 57,510
Elimination of
non-cash items
in net income:
Real estate 2,055 1,682 7,373 6,667
depreciation
Real estate
depreciation in 248 247 992 1,030
discontinued
operations
Funds from $ 18,594 $ 15,296 $ 72,594 $ 65,207
operations
Collection of
past due rent - - (2,654 ) -
and interest
amounts
(Gains,
recoveries) and
losses on (1,944 ) 1,099 (2,403 ) 2,475
marketable
securities
Asset
write-downs and
(recoveries of - 386 (1,077 ) 1,986
previous
writedowns)
Recognition of
deferred - - (1,493 ) (4,121 )
credits
Restricted
stock - - - (566 )
forfeiture
Other one-time - (1,313 ) (626 ) (1,313 )
items
Normalized funds $ 16,650 $ 15,468 $ 64,341 $ 63,668
from operations
Weighted average
common shares
outstanding
Basic 27,603,646 27,573,294 27,586,338 27,706,106
Diluted 27,656,684 27,578,380 27,618,300 27,731,951
Funds from
operations per
share:
Basic $ 0.67 $ 0.55 $ 2.63 $ 2.35
Diluted $ 0.67 $ 0.55 $ 2.63 $ 2.35
Normalized FFO
per share:
Basic $ 0.60 $ 0.56 $ 2.33 $ 2.29
Diluted $ 0.60 $ 0.56 $ 2.33 $ 2.29
(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.
(3) 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.
Condensed Statements of Income
(in thousands, except share and per share amounts)
Three months ended Twelve months ended
December 31, December 31,
2009 2008 2009 2008
Revenues:
Rental income $ 14,255 $ 12,073 $ 55,076 $ 48,339
Mortgage interest 2,074 2,452 9,145 9,666
income
16,329 14,525 64,221 58,005
Expenses:
Interest expense 8 60 85 308
Depreciation 2,163 1,704 7,629 6,761
Amortization of loan 79 4 90 15
costs
Legal expense 681 557 1,954 1,598
Franchise, excise and 180 121 730 646
other taxes
General and 1,216 1,346 5,255 3,585
administrative
Loan and realty - - (1,077 ) -
losses (recoveries)
4,327 3,792 14,666 12,913
Income Before 12,002 10,733 49,555 45,092
Non-Operating Income
Non-operating income
(investment interest 3,289 2,023 8,581 6,487
and other)
Income From 15,291 12,756 58,136 51,579
Continuing Operations
Discontinued
Operations
Income from
operations - 1,000 611 6,093 5,931
discontinued
Net income $ 16,291 $ 13,367 $ 64,229 $ 57,510
Weighted average
common shares
outstanding:
Basic 27,603,646 27,573,294 27,586,338 27,706,106
Diluted 27,656,684 27,578,380 27,618,300 27,731,951
Earnings per share:
Basic:
Income from $ 0.55 $ 0.46 $ 2.11 $ 1.86
continuing operations
Discontinued 0.04 0.04 0.22 0.22
operations
Net income available
to common $ 0.59 $ 0.50 $ 2.33 $ 2.08
stockholders
Diluted:
Income from $ 0.54 $ 0.46 $ 2.10 $ 1.86
continuing operations
Discontinued 0.04 0.03 0.22 0.21
operations
Net income available
to common $ 0.58 $ 0.49 $ 2.32 $ 2.07
stockholders
Funds from operations $ 18,594 $ 15,296 $ 72,594 $ 65,207
Funds from operations
per common share
Basic $ 0.67 $ 0.55 $ 2.63 $ 2.35
Diluted $ 0.67 $ 0.55 $ 2.63 $ 2.35
Dividend declared per $ 0.65 $ 0.69 $ 2.30 $ 2.34(2)
common share(1)
(1) Includes special dividends of $0.10 and $0.14 per common share for the years
ended December 31, 2009 and 2008, respectively
(2) Excludes an $0.08 per common share 'spillover' dividend declared in 2008 for
2007
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)
December 31, 2009 December 31, 2008
Real estate properties, net $ 223,861 $ 181,332
Mortgages receivable, net 94,588 108,640
Preferred stock investment, at cost 38,132 38,132
Cash and cash equivalents 45,718 100,242
Marketable securities 21,322 26,594
Bonds payable - 3,987
Stockholders' equity 434,612 429,615
Source: National Health Investors, Inc.
Contact: National Health Investors, Inc.
Roger R. Hopkins, 615-890-9100
Chief Accounting Officer