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 and six months ended June 30, 2013.
Year-To-Date Highlights
-
Increased second quarter Normalized FFO 14.1% over same quarter in 2012
-
Closed or announced over $220 million of new investments
-
Amended and expanded an unsecured credit facility of $370 million
including a $250 million revolving credit facility and $120 million of
7-year term loans
Financial Results
Normalized FFO for the three months ended June 30, 2013, was
$24,398,000, or $0.87 per diluted common share, compared with
$21,386,000, or $0.77 per diluted common share, for the same period in
2012, an increase of 14.1%. Normalized FFO excluded the effects of
$561,000 in transaction and debt issuance costs written off in 2013.
Normalized FAD for the three months ended June 30, 2013, was $23,792,000
or $0.85 per diluted common share, compared with $21,010,000 or $0.76
per diluted common share for the same period in 2012, an increase of
11.8%. Normalized FAD excluded the effects of $561,000 in transaction
and debt issuance costs written off in 2013.
FFO, as defined by the National Association of Real Estate Investment
Trusts (“NAREIT”), for the three months ended June 30, 2013, was
$23,837,000, or $0.85 per diluted common share, compared with
$19,971,000, or $0.72 per diluted common share, for the same period in
2012. Net income attributable to common stockholders for the three
months ended June 30, 2013, was $19,920,000, or $0.71 per diluted common
share, compared with $16,928,000, or $0.61 per diluted common share, for
the same period in 2012.
Normalized FFO for the six months ended June 30, 2013, was $47,994,000,
or $1.72 per diluted common share, compared with $42,761,000, or $1.54
per diluted common share, for the same period in 2012, an increase of
12.2%. Normalized FAD for the six months ended June 30, 2013, was
$48,197,000 or $1.73 per diluted common share, compared with $43,093,000
or $1.55 per diluted common share for the same period in 2012, an
increase of 11.8%. Normalized FFO and Normalized FAD for the six months
ended June 30, 2013 excludes the effect of a $4,037,000 loan impairment
and the effects of $561,000 in transaction and debt issuance costs
written off in 2013.
FFO, as defined by the National Association of Real Estate Investment
Trusts (“NAREIT”), for the six months ended June 30, 2013, was
$43,396,000, or $1.55 per diluted common share, compared with
$41,346,000, or $1.49 per diluted common share, for the same period in
2012. Net income attributable to common stockholders for the six months
ended June 30, 2013, was $35,663,000, or $1.28 per diluted common share,
compared with $35,278,000, or $1.27 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 $3.48 to
$3.54 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
| |
$
|
2.74
| |
|
$
|
2.77
|
|
Plus: Real estate depreciation
| |
.60
| | |
.63
|
|
Plus: Loan impairment
| |
.14
|
| |
.14
|
| Normalized FFO per diluted common share | | $ | 3.48 |
| | $ | 3.54 |
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 second quarter of 2013,
the recently announced transactions and the timing for further terming
out our revolving credit facility. On the top end of that range, we are
adding in assumptions for investment activity and the timing for further
terming out our revolving credit facility. The Company expects to make
new investments in health care real estate during the remainder of 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 Tuesday, August 6, 2013, at 1 p.m.
ET, to discuss second quarter results. The number to call for this
interactive teleconference is (212) 231-2936 with the confirmation
number, 21668878. 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.
About National Health Investors
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.
| 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,
|
| |
2013
| |
2012
| |
2013
| |
2012
|
|
Net income attributable to common stockholders
| |
$
|
19,920
| | |
$
|
16,928
| | |
$
|
35,663
| | |
$
|
35,278
| |
|
Elimination of certain non-cash items in net income:
| | | | | | | | |
|
Real estate depreciation in continuing operations
| |
3,985
| | |
2,942
| | |
7,868
| | |
5,866
| |
|
Real estate depreciation related to noncontrolling interest
| |
(68
|
)
| |
—
| | |
(135
|
)
| |
—
| |
|
Real estate depreciation in discontinued operations
| |
—
|
| |
101
|
| |
—
|
| |
202
|
|
|
Funds from operations
| |
$
|
23,837
| | |
$
|
19,971
| | |
$
|
43,396
| | |
$
|
41,346
| |
|
Gains on sales of marketable securities
| |
—
| | |
(30
|
)
| |
—
| | |
(30
|
)
|
|
Loan costs expensed due to credit facility amendment
| |
353
| | |
—
| | |
353
| | |
—
| |
|
Non-cash write-off of straight-line rent receivable
| |
—
| | |
963
| | |
—
| | |
963
| |
|
Write-offs and expenses due to early lease termination
| |
—
| | |
297
| | |
—
| | |
297
| |
|
Acquisition costs under business combination accounting
| |
208
| | |
95
| | |
208
| | |
95
| |
|
Legal settlement
| |
—
| | |
90
| | |
—
| | |
90
| |
|
Loan impairment
| |
—
|
| |
—
|
| |
4,037
|
| |
—
|
|
|
Normalized FFO
| |
$
|
24,398
|
| |
$
|
21,386
|
| |
$
|
47,994
|
| |
$
|
42,761
|
|
| | | | | | | |
|
BASIC | | | | | | | | |
|
Weighted average common shares outstanding
| |
27,876,176
| | |
27,792,834
| | |
27,871,120
| | |
27,784,469
| |
|
FFO per common share
| |
$
|
0.86
| | |
$
|
0.72
| | |
$
|
1.56
| | |
$
|
1.49
| |
|
Normalized FFO per common share
| |
$
|
0.88
| | |
$
|
0.77
| | |
$
|
1.72
| | |
$
|
1.54
| |
| | | | | | | |
|
DILUTED | | | | | | | | |
|
Weighted average common shares outstanding
| |
27,913,727
| | |
27,820,831
| | |
27,907,600
| | |
27,812,027
| |
|
FFO per common share
| |
$
|
0.85
| | |
$
|
0.72
| | |
$
|
1.55
| | |
$
|
1.49
| |
|
Normalized FFO per common share
| |
$
|
0.87
| | |
$
|
0.77
| | |
$
|
1.72
| | |
$
|
1.54
| |
| | | | | | | |
|
| (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. |
|
|
|
|
| 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
| |
Six Months Ended
|
| | June 30,
| | June 30,
|
| |
2013
| |
2012
| |
2013
| |
2012
|
|
Net income attributable to common stockholders
| |
$
|
19,920
| | |
$
|
16,928
| | |
$
|
35,663
| | |
$
|
35,278
| |
|
Elimination of certain non-cash items in net income:
| | | | | | | | |
|
Depreciation in continuing operations
| |
4,558
| | |
3,295
| | |
8,973
| | |
6,559
| |
|
Depreciation related to noncontrolling interest
| |
(87
|
)
| |
—
| | |
(175
|
)
| |
—
| |
|
Depreciation in discontinued operations
| |
—
| | |
101
| | |
—
| | |
202
| |
|
Straight-line lease revenue, net
| |
(1,413
|
)
| |
(14
|
)
| |
(2,695
|
)
| |
(1,077
|
)
|
|
Non-cash stock based compensation
| |
253
|
| |
248
|
| |
1,833
|
| |
1,679
|
|
|
Funds available for distribution
| |
$
|
23,231
| | |
$
|
20,558
| | |
$
|
43,599
| | |
$
|
42,641
| |
|
Gains on sales of marketable securities
| |
—
| | |
(30
|
)
| |
—
| | |
(30
|
)
|
|
Loan costs expensed due to credit facility amendment
| |
353
| | |
—
| | |
353
| | |
—
| |
|
Write-offs and expenses due to early lease termination
| |
—
| | |
297
| | |
—
| | |
297
| |
|
Acquisition costs under business combination accounting
| |
208
| | |
95
| | |
208
| | |
95
| |
|
Legal settlement
| |
—
| | |
90
| | |
—
| | |
90
| |
|
Loan impairment
| |
—
|
| |
—
|
| |
4,037
|
| |
—
|
|
|
Normalized FAD
| |
$
|
23,792
|
| |
$
|
21,010
|
| |
$
|
48,197
|
| |
$
|
43,093
|
|
| | | | | | | |
|
BASIC | | | | | | | | |
|
Weighted average common shares outstanding
| |
27,876,176
| | |
27,792,834
| | |
27,871,120
| | |
27,784,469
| |
|
FAD per common share
| |
$
|
0.83
| | |
$
|
0.74
| | |
$
|
1.56
| | |
$
|
1.53
| |
|
Normalized FAD per common share
| |
$
|
0.85
| | |
$
|
0.76
| | |
$
|
1.73
| | |
$
|
1.55
| |
| | | | | | | |
|
DILUTED | | | | | | | | |
|
Weighted average common shares outstanding
| |
27,913,727
| | |
27,820,831
| | |
27,907,600
| | |
27,812,027
| |
|
FAD per common share
| |
$
|
0.83
| | |
$
|
0.74
| | |
$
|
1.56
| | |
$
|
1.53
| |
|
Normalized FAD per common share
| |
$
|
0.85
| | |
$
|
0.76
| | |
$
|
1.73
| | |
$
|
1.55
| |
| | | | | | | |
|
| (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. |
|
|
|
| | |
| |
|
| | |
| |
| Condensed Statements of Income |
| (in thousands, except share and per share amounts) |
| | | | | | | | | | |
|
| |
Three Months Ended
| | |
Six Months Ended
|
| | June 30,
|
| | June 30,
|
| |
2013
|
| |
2012
|
| |
2013
|
| |
2012
|
| |
(unaudited)
| | | | | | |
|
Revenues:
| | | | | | | | | | | |
|
Rental income
| |
$
|
25,012
| | |
$
|
18,921
| | |
$
|
50,062
| | |
$
|
40,217
|
|
Interest income from mortgage and other notes
| |
1,972
| | |
1,847
| | |
3,941
| | |
3,549
|
|
Investment income and other
| |
1,064
|
| |
1,054
|
| |
2,116
|
| |
2,114
|
| |
28,048
|
| |
21,822
|
| |
56,119
|
| |
45,880
|
|
Expenses:
| | | | | | | | | | | |
|
Depreciation
| |
4,558
| | |
3,295
| | |
8,973
| | |
6,559
|
|
Interest
| |
1,598
| | |
747
| | |
2,721
| | |
1,321
|
|
Legal
| |
289
| | |
128
| | |
566
| | |
220
|
|
Franchise, excise and other taxes
| |
93
| | |
229
| | |
237
| | |
354
|
|
General and administrative
| |
2,325
| | |
1,593
| | |
5,414
| | |
4,379
|
|
Loan impairment
| |
—
|
| |
—
|
| |
4,037
|
| |
—
|
| |
8,863
|
| |
5,992
|
| |
21,948
|
| |
12,833
|
Income before equity-method investee, discontinued operations and
noncontrolling interest
| |
19,185
| | |
15,830
| | |
34,171
| | |
33,047
|
|
Income from equity-method investee
| |
69
| | |
—
| | |
91
| | |
—
|
|
Investment and other gains
| |
—
|
| |
30
|
| |
—
|
| |
30
|
|
Income from continuing operations
| |
19,254
| | |
15,860
| | |
34,262
| | |
33,077
|
|
Discontinued operations
| | | | | | | | | | | |
|
Income from discontinued operations
| |
844
|
| |
1,068
|
| |
1,759
|
| |
2,201
|
|
Net income
| |
20,098
| | |
16,928
| | |
36,021
| | |
35,278
|
|
Net income attributable to noncontrolling interest
| |
(178
|
)
| |
—
|
| |
(358
|
)
| |
—
|
|
Net income attributable to common stockholders
| |
$
|
19,920
|
| |
$
|
16,928
|
| |
$
|
35,663
|
| |
$
|
35,278
|
| | | | | | | | | | |
|
|
Weighted average common shares outstanding:
| | | | | | | | | | | |
|
Basic
| |
27,876,176
| | |
27,792,834
| | |
27,871,120
| | |
27,784,469
|
|
Diluted
| |
27,913,727
| | |
27,820,831
| | |
27,907,600
| | |
27,812,027
|
| | | | | | | | | | |
|
|
Earnings per common share:
| | | | | | | | | | | |
|
Basic:
| | | | | | | | | | | |
|
Income from continuing operations attributable to common stockholders
| |
$
|
0.68
| | |
$
|
0.57
| | |
$
|
1.22
| | |
$
|
1.19
|
|
Discontinued operations
| |
0.03
|
| |
0.04
|
| |
0.06
|
| |
0.08
|
|
Net income attributable to common stockholders
| |
$
|
0.71
|
| |
$
|
0.61
|
| |
$
|
1.28
|
| |
$
|
1.27
|
| | | | | | | | | | |
|
|
Diluted:
| | | | | | | | | | | |
|
Income from continuing operations attributable to common stockholders
| |
$
|
0.68
| | |
$
|
0.57
| | |
$
|
1.21
| | |
$
|
1.19
|
|
Discontinued operations
| |
0.03
|
| |
0.04
|
| |
0.06
|
| |
0.08
|
|
Net income attributable to common stockholders
| |
$
|
0.71
|
| |
$
|
0.61
|
| |
$
|
1.27
|
| |
$
|
1.27
|
| | | | | | | | | | |
|
|
Regular dividends declared per common share
| |
$
|
0.735
| | |
$
|
0.65
| | |
$
|
1.43
| | |
$
|
1.30
|
| | | | | | | | | | | | | | |
|
|
| |
| |
| Selected Balance Sheet Data | | | | |
| (in thousands) | | | | |
| | June 30, 2013 |
| December 31, 2012 |
| | (unaudited) | | |
|
Real estate properties, net
| |
$
|
698,986
| |
$
|
535,390
|
|
Mortgage and other notes receivable, net
| |
65,229
| |
84,250
|
|
Investment in preferred stock, at cost
| |
38,132
| |
38,132
|
|
Cash and cash equivalents
| |
36,469
| |
9,172
|
|
Marketable securities
| |
14,205
| |
12,884
|
|
Assets held for sale, net
| |
1,611
| |
1,611
|
|
Debt
| |
386,778
| |
203,250
|
|
National Health Investors Stockholders' equity
| |
458,205
| |
457,182
|
| | | |
|
National Health Investors, Inc.
Roger R. Hopkins, 615-890-9100
Chief
Accounting Officer
Source: National Health Investors, Inc.