MURFREESBORO, Tenn.--(BUSINESS WIRE)--
National Health Investors, Inc. (NYSE:NHI) announced today its
normalized Funds From Operations (“FFO”) and net income for three months
ended March 31, 2011.
Financial Results
Normalized FFO for the three months ended March 31, 2011, was
$19,330,000, or $0.70 per basic and diluted common share, compared with
$17,174,000, or $0.62 per basic and diluted common share, for the same
period in 2010. Normalized FFO for the three months ended March 31, 2011
excludes $154,000 in gains on sales of marketable securities. Normalized
FFO for the three months ended March 31, 2010 excludes $1,520,000 in
collections of past due rent and other adjustments of $290,000.
FFO, as defined by the National Association of Real Estate Investment
Trusts (“NAREIT”), for the three months ended March 31, 2011, was
$19,484,000, or $0.70 per basic and diluted common share, compared with
$18,404,000, or $0.67 and $0.66 per basic and diluted common share,
respectively, for the same period in 2010. Net income for the three
months ended March 31, 2011, was $19,093,000, or $0.69 per basic and
diluted common share, compared with net income of $15,943,000, or $0.58
per basic and diluted common share, for the same period in 2010.
Recent Investment
On May 5, 2011, the Company announced in a separate press release that
it has closed a $15 million purchase of four assisted living and memory
care facilities in Louisiana and has leased them to Selah SeniorCare III
and managed by Selah Management Group at an annual initial lease rate of
$1,275,000 plus annual fixed escalators over a lease term of 15 years.
2011 Guidance
The Company’s guidance range for the full year 2011 for net income per
diluted share and Normalized FFO per share is set forth and reconciled
below:
|
|
|
|
Full-Year
2011 Range
|
| |
Low – High
|
|
Net income per diluted share
| |
$2.82 - $2.87
|
|
Plus: Real estate depreciation
| |
0.41 - 0.46
|
|
Less: gain on sale of marketable securities
| |
(0.32) - (0.32)
|
|
Less: gain on sale of real estate
| |
(0.08) - (0.08)
|
| Normalized FFO per diluted share | | $2.83 - $2.93 |
|
|
|
|
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 Thursday, May 5, 2011, at 2 p.m. ET,
to discuss first quarter results. The number to call for this
interactive teleconference is (212) 271-4657 with the confirmation
number, 21521567. The live broadcast of NHI’s quarterly conference call
will be available online at www.nhireit.com
on Thursday, May 5, 2011, at 2 p.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 psychiatric hospital, an acute care 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.nhireit.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.nhireit.com.
|
|
| Reconciliation of Funds From Operations and Normalized Funds From
Operations (1)(2) |
| (in thousands, except share and per share amounts) |
|
|
|
|
Three months ended
|
| |
March 31,
|
| |
2011
|
|
2010
|
|
Net income
| |
$
|
19,093
| | |
$
|
15,943
| |
|
Elimination of certain items in net income:
| | | | |
|
|
Real estate depreciation
| | |
2,690
| | | |
2,395
| |
|
Real estate depreciation in discontinued operations
| | |
-
| | | |
66
| |
|
Net gain on sale of real estate
| |
|
(2,299
|
)
| |
|
|
Funds from operations
| |
$
|
19,484
| | |
$
|
18,404
| |
|
Collection and recognition of past due rent
| | |
-
| | | |
(1,520
|
)
|
|
Gains on sales of marketable securities
| | |
(154
|
)
| | |
-
| |
|
Other items
| |
|
-
|
| |
|
290
|
|
|
Normalized funds from operations
| |
$
|
19,330
|
| |
$
|
17,174
|
|
| | | | |
|
|
Weighted average common shares outstanding
| | | | |
|
Basic
| | |
27,696,727
| | | |
27,632,376
| |
|
Diluted
| | |
27,796,109
| | | |
27,681,479
| |
| | | | |
|
|
Funds from operations per share:
| | | | |
|
Basic
| |
$
|
0.70
| | |
$
|
0.67
| |
|
Diluted
| |
$
|
0.70
| | |
$
|
0.66
| |
| | | | |
|
|
Normalized FFO per share:
| | | | |
|
Basic
| |
$
|
0.70
| | |
$
|
0.62
| |
|
Diluted
| |
$
|
0.70
| | |
$
|
0.62
| |
| | | | |
|
| | | | |
|
| (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. |
|
|
|
|
| Condensed Statements of Income |
| (in thousands, except share and per share amounts) |
|
|
|
|
Three months ended
|
| |
March 31,
|
| |
2011
|
|
2010
|
|
Revenues:
| | | | |
|
Rental income
| |
$
|
19,020
| |
$
|
18,187
| |
|
Mortgage interest income
| |
|
1,596
| |
|
1,996
|
|
| |
|
20,616
| |
|
20,183
|
|
|
Expenses:
| | | | |
|
Depreciation
| | |
2,884
| | |
2,523
| |
|
Legal expense
| | |
188
| | |
282
| |
|
Franchise, excise and other taxes
| | |
358
| | |
278
| |
|
General and administrative
| |
|
3,774
| |
|
3,806
|
|
| |
|
7,204
| |
|
6,889
|
|
| | | |
|
|
Income Before Non-Operating Income
| | |
13,412
| | |
13,294
| |
|
Non-operating income (investment interest and other)
| | |
1,412
| | |
1,433
| |
Interest expense and amortization of loan costs, net of change in
fair value of interest rate swap agreement
| | |
741
| | |
(228
|
)
|
|
Income From Continuing Operations
| | |
15,565
| | |
14,499
| |
| | | |
|
|
Income from discontinued operations
| | |
1,229
| | |
1,444
| |
|
Net gain on sale of real estate
| |
|
2,299
| |
|
-
|
|
|
Income from discontinued operations
| |
|
3,528
| |
|
1,444
|
|
| | | |
|
|
Net income
| |
$
|
19,093
| |
$
|
15,943
|
|
| | | |
|
|
Weighted average common shares outstanding:
| | | | |
|
Basic
| | |
27,696,727
| | |
27,632,376
| |
|
Diluted
| | |
27,796,109
| | |
27,681,479
| |
| | | |
|
|
Earnings per share:
| | | | |
|
Basic:
| | | | |
|
Income from continuing operations
| |
$
|
0.56
| |
$
|
0.53
| |
|
Discontinued operations
| |
|
0.13
| |
|
0.05
|
|
|
Net income available to common stockholders
| |
$
|
0.69
| |
$
|
0.58
|
|
| | | |
|
|
Diluted:
| | | | |
|
Income from continuing operations
| |
$
|
0.56
| |
$
|
0.53
| |
|
Discontinued operations
| |
|
0.13
| |
|
0.05
|
|
|
Net income available to common stockholders
| |
$
|
0.69
| |
$
|
0.58
|
|
| | | |
|
| | | |
|
|
Dividend declared per common share
| |
$
|
0.615
| |
$
|
0.575
| |
|
|
|
|
| Selected Balance Sheet Data |
| (in thousands) |
|
|
March 31, 2011
|
|
December 31, 2010
|
|
Real estate properties, net
| |
$ 325,096
| |
$ 327,654
|
|
Mortgages receivable, net
| |
77,283
| |
75,465
|
|
Investment in preferred stock, at cost
| |
38,132
| |
38,132
|
|
Cash and cash equivalents
| |
21,097
| |
2,664
|
|
Marketable securities
| |
21,378
| |
22,476
|
|
Assets held for sale, net
| |
29,381
| |
36,853
|
|
Debt
| |
49,375
| |
37,765
|
|
Stockholders' equity
| |
447,518
| |
442,500
|
Source: National Health Investors, Inc.
Contact:
National Health Investors, Inc.
Roger R. Hopkins, 615-890-9100
Chief
Accounting Officer