MURFREESBORO, Tenn.--(BUSINESS WIRE)--
National Health Investors, Inc. (NYSE:NHI) announced today its
normalized Funds From Operations (“FFO”), its normalized Funds Available
for Distribution (“FAD”) and net income attributable to common
stockholders for the three months ended March 31, 2013.
Year-To-Date Highlights
-
Increased first quarter Normalized FFO 10.4% over same quarter in 2012
-
Declared a 13.1% increase in the upcoming second quarter dividend over
the same quarter in 2012
-
Increased Normalized FFO guidance for fiscal 2013 to a range of $3.42
to $3.50 per diluted common share
-
Closed a $26.3 million acquisition and leaseback of 2 properties in
Texas
-
Announced a settlement resulting in a $37.1 million acquisition and
$15 million note payoff
Financial Results
Normalized FFO for the three months ended March 31, 2013, was
$23,595,000, or $0.85 per diluted common share, compared with
$21,375,000, or $0.77 per diluted common share, for the same period in
2012, an increase of 10.4%. Normalized FAD for the three months ended
March 31, 2013, was $24,405,000 or $0.87 per diluted common share,
compared with $22,085,000 or $0.79 per diluted common share for the same
period in 2012, an increase of 10.5%. Normalized FFO and Normalized FAD
for the three months ended March 31, 2013 excludes the effect of a
$4,037,000 loan impairment.
FFO, as defined by the National Association of Real Estate Investment
Trusts (“NAREIT”), for the three months ended March 31, 2013, was
$19,558,000, or $0.70 per diluted common share, compared with
$21,375,000, or $0.77 per diluted common share, for the same period in
2012. Net income attributable to common stockholders for the three
months ended March 31, 2013, was $15,743,000, or $0.56 per diluted
common share, compared with $18,350,000, or $0.66 per diluted common
share, for the same period in 2012.
The reconciliation of net income attributable to common stockholders to
our FFO, Normalized FFO, FAD and Normalized FAD is included as tables to
this press release and in supplemental data furnished on Form 8-K and is
filed in our Form 10-Q with the Securities and Exchange Commission.
2013 Guidance -
The Company currently forecasts Normalized FFO for 2013 from $3.42 to
$3.50 per diluted common share. The Company’s guidance range for the
full year 2013 for Normalized FFO per share, with underlying assumptions
and timing of certain transactions, is set forth and reconciled below:
|
|
Full-Year 2013 Range
|
| |
Low
|
|
High
|
|
Net income per diluted share attributable to common stockholders
| |
$
|
2.71
|
|
$
|
2.76
|
|
Plus: Real estate depreciation
| |
.57
| |
.60
|
|
Plus: Loan impairment
| |
.14
| |
.14
|
| Normalized FFO per diluted common share | | $ | 3.42 | | $ | 3.50 |
| | | | | |
|
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 low end of
our guidance range assumes a baseline from the fourth quarter 2012, the
transactions completed to date in the second quarter of 2013, the timing
for terming out debt on our credit facility and assuming 3% growth from
our Bickford joint venture. On the top end of that range, we are adding
in assumptions for investment activity and a 6% growth from our Bickford
joint venture. The Company expects to make additional investments in
health care real estate during 2013 that meet its underwriting criteria
and where the spreads over its cost of capital generates sufficient
returns to its shareholders. These new investments are expected to be
funded by the Company’s liquid investments and by short-term and
long-term debt financing. 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 Monday, May 6, 2013, at 1 p.m. ET, to
discuss first quarter results. The number to call for this interactive
teleconference is (212) 231-2907 with the confirmation number, 21656133.
The live broadcast of NHI’s quarterly conference call will be available
online at www.nhireit.com.
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, RIDEA transactions, and mortgage
loans. NHI’s investments involve skilled nursing facilities, assisted
living facilities, independent living facilities, medical office
buildings, and hospitals. 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 www.sec.gov
or on NHI’s web site at www.nhireit.com.
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|
|
|
|
| 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,
|
| |
2013
| |
2012
|
|
Net income attributable to common stockholders
| |
$
|
15,743
| | |
$
|
18,350
|
|
Elimination of certain non-cash items in net income:
| | | | |
|
Real estate depreciation in continuing operations
| |
3,883
| | |
2,924
|
|
Real estate depreciation related to noncontrolling interest
| |
(68
|
)
| |
—
|
|
Real estate depreciation in discontinued operations
| |
—
|
| |
101
|
|
Funds from operations
| |
$
|
19,558
| | |
$
|
21,375
|
|
Loan impairment
| |
4,037
|
| |
—
|
|
Normalized FFO
| |
$
|
23,595
|
| |
$
|
21,375
|
| | | |
|
BASIC | | | | |
|
Weighted average common shares outstanding
| |
27,876,176
| | |
27,776,104
|
|
FFO per common share
| |
$
|
0.70
| | |
$
|
0.77
|
|
Normalized FFO per common share
| |
$
|
0.85
| | |
$
|
0.77
|
| | | |
|
DILUTED | | | | |
|
Weighted average common shares outstanding
| |
27,911,584
| | |
27,803,222
|
|
FFO per common share
| |
$
|
0.70
| | |
$
|
0.77
|
|
Normalized FFO per common share
| |
$
|
0.85
| | |
$
|
0.77
|
| | | |
|
| | | |
|
(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 certain
items which, due to their infrequent or unpredictable nature, may
create some difficulty in comparing FFO for the current period to
similar prior periods, and may include, but are not limited to,
impairment of assets, gains and losses attributable to the
acquisition and disposition of assets and liabilities, recoveries
of previous write-downs, and changes in the fair value of interest
rate swap agreements. |
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|
|
|
|
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|
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Reconciliation of Funds Available for Distribution and
Normalized Funds Available for Distribution(1)(2) |
| (in thousands, except share and per share amounts) |
|
| |
| |
| |
Three Months Ended
|
| | March 31,
|
| |
2013
| |
2012
|
|
Net income attributable to common stockholders
| |
$
|
15,743
| | |
$
|
18,350
| |
|
Elimination of certain non-cash items in net income:
| | | | |
|
Depreciation in continuing operations
| |
4,415
| | |
3,264
| |
|
Depreciation related to noncontrolling interest
| |
(87
|
)
| |
—
| |
|
Depreciation in discontinued operations
| |
—
| | |
101
| |
|
Straight-line lease revenue, net
| |
(1,283
|
)
| |
(1,063
|
)
|
|
Non-cash stock based compensation
| |
1,580
|
| |
1,433
|
|
|
Funds available for distribution
| |
$
|
20,368
| | |
$
|
22,085
| |
|
Loan impairment
| |
4,037
|
| |
—
|
|
|
Normalized FAD
| |
$
|
24,405
|
| |
$
|
22,085
|
|
| | | |
|
BASIC | | | | |
|
Weighted average common shares outstanding
| |
27,876,176
| | |
27,776,104
| |
|
FAD per common share
| |
$
|
0.73
| | |
$
|
0.80
| |
|
Normalized FAD per common share
| |
$
|
0.88
| | |
$
|
0.80
| |
| | | |
|
DILUTED | | | | |
|
Weighted average common shares outstanding
| |
27,911,584
| | |
27,803,222
| |
|
FAD per common share
| |
$
|
0.73
| | |
$
|
0.79
| |
|
Normalized FAD per common share
| |
$
|
0.87
| | |
$
|
0.79
| |
| | | |
|
| | | |
|
(1) Management believes that FAD and
normalized FAD are important supplemental measures of a REIT’s net
earnings available to common stockholders. Since other REITs may
not use our definition of FAD; caution should be exercised when
comparing our Company’s FAD to that of other REITs. FAD in and of
itself does not represent cash generated from operating activities
in accordance with GAAP (FAD 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 as a measure of liquidity, and is not
necessarily indicative of cash available to fund cash needs. |
| | | |
|
(2) Normalized FAD excludes from FAD certain
items which, due to their infrequent or unpredictable nature, may
create some difficulty in comparing FAD for the current period to
similar prior periods, and may include, but are not limited to,
impairment of assets, gains and losses attributable to the
acquisition and disposition of assets and liabilities, recoveries
of previous write-downs, and changes in the fair value of interest
rate swap agreements. |
|
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|
|
|
|
|
|
|
|
|
| Condensed Statements of Income |
| (in thousands, except share and per share amounts) |
|
| |
| |
| |
Three Months Ended
|
| | March 31,
|
| |
2013
| |
2012
|
| |
(unaudited)
|
|
Revenues:
| | | | |
|
Rental income
| |
$
|
25,050
| | |
$
|
21,296
|
|
Mortgage interest income
| |
1,969
| | |
1,702
|
|
Investment income and other
| |
1,052
|
| |
1,060
|
| |
28,071
|
| |
24,058
|
|
Expenses:
| | | | |
|
Depreciation
| |
4,415
| | |
3,264
|
|
Interest expense
| |
1,123
| | |
575
|
|
Legal expense
| |
277
| | |
91
|
|
Franchise, excise and other taxes
| |
144
| | |
125
|
|
General and administrative
| |
3,089
| | |
2,786
|
|
Loan impairment
| |
4,037
|
| |
—
|
| |
13,085
|
| |
6,841
|
|
Income before unconsolidated entity, discontinued operations
| | | | |
|
and noncontrolling interest
| |
14,986
| | |
17,217
|
|
Income from unconsolidated entity
| |
22
|
| |
—
|
|
Income from continuing operations
| |
15,008
| | |
17,217
|
|
Income from discontinued operations
| |
915
|
| |
1,133
|
|
Net income
| |
15,923
| | |
18,350
|
|
Net income attributable to noncontrolling interest
| |
(180
|
)
| |
—
|
|
Net income attributable to common stockholders
| |
$
|
15,743
|
| |
$
|
18,350
|
| | | |
|
|
Weighted average common shares outstanding:
| | | | |
|
Basic
| |
27,876,176
| | |
27,776,104
|
|
Diluted
| |
27,911,584
| | |
27,803,222
|
| | | |
|
|
Earnings per common share:
| | | | |
|
Basic:
| | | | |
|
Income from continuing operations attributable to common stockholders
| |
$
|
0.53
| | |
$
|
0.62
|
|
Discontinued operations
| |
0.03
|
| |
0.04
|
|
Net income attributable to common stockholders
| |
$
|
0.56
|
| |
$
|
0.66
|
| | | |
|
|
Diluted:
| | | | |
|
Income from continuing operations attributable to common stockholders
| |
$
|
0.53
| | |
$
|
0.62
|
|
Discontinued operations
| |
0.03
|
| |
0.04
|
|
Net income attributable to common stockholders
| |
$
|
0.56
|
| |
$
|
0.66
|
| | | |
|
|
Regular dividends declared per common share
| |
$
|
0.695
| | |
$
|
0.65
|
|
|
|
|
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|
| Selected Balance Sheet Data |
| (in thousands) |
|
| March 31, 2013 |
| December 31, 2012 |
| | (unaudited) | | |
|
Real estate properties, net
| |
$
|
533,285
| |
$
|
535,390
|
|
Mortgages receivable, net
| |
80,059
| |
84,250
|
|
Investment in preferred stock, at cost
| |
38,132
| |
38,132
|
|
Cash and cash equivalents
| |
6,050
| |
9,172
|
|
Marketable securities
| |
14,845
| |
12,884
|
|
Assets held for sale, net
| |
1,611
| |
1,611
|
|
Debt
| |
203,250
| |
203,250
|
|
National Health Investors Stockholders' equity
| |
457,507
| |
457,182
|
| | | |
|
| | | |
|
| | | |
|
National Health Investors, Inc.
Roger R. Hopkins, Chief Accounting
Officer, 615-890-9100
Source: National Health Investors, Inc.