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 and year ended December 31, 2012.
2012 Highlights
-
Made investments and commitments totaling $178.5 million in properties
and loans primarily in private-pay senior housing assets
-
Closed on a new $320 million bank credit facility, expandable to $450
million to fund new healthcare real estate investments
-
Agreed with our largest customer to a lease extension through 2026
-
Increased the regular quarterly common dividend 5.8% year-over-year
-
Declared a $.22 per common share special dividend at year-end
Financial Results
Normalized FFO for the three months ended December 31, 2012, was
$23,369,000, or $0.84 per basic and diluted common share, compared with
$21,448,000, or $0.77 per basic and diluted common share, for the same
period in 2011, an increase of 9.0%. Normalized FAD for the three months
ended December 31, 2012, was $22,771,000 or $0.82 per basic and diluted
common share, compared with $20,908,000 or $0.75 per basic and diluted
common share for the same period in 2011, an increase of 8.9%.
Normalized FFO and Normalized FAD for the three months ended December
31, 2012 excludes the effect on income of loan recoveries, investment
gains and other adjustments totaling $9,513,000.
FFO, as defined by the National Association of Real Estate Investment
Trusts (“NAREIT”), for the three months ended December 31, 2012, was
$32,882,000, or $1.18 per basic and diluted common share, compared with
$21,038,000, or $0.76 per basic and diluted common share, for the same
period in 2011. Net income attributable to common stockholders for the
three months ended December 31, 2012, was $41,105,000, or $1.48 per
basic and diluted common share, compared with $18,114,000, or $0.65 per
basic and diluted common share, for the same period in 2011. During the
three months ended December 31, 2012, we recorded a gain of $11,966,000
on the sale of an assisted living facility in New Jersey.
Normalized FFO for the year ended December 31, 2012, was $88,487,000, or
$3.18 per basic and diluted common share, compared with $80,176,000, or
$2.89 and $2.88 per basic and diluted common share, respectively, for
the same period in 2011, an increase of 10.4%. Normalized FFO excludes
the effects of investment gains, loan writedowns and recoveries and
other adjustments totaling $5,601,000 in 2012, and excluded the effects
of investment gains, the change in fair value of an interest rate swap
agreement and other adjustments totaling $8,666,000 in 2011. Normalized
FAD for the year ended December 31, 2012, was $87,599,000, or $3.15 per
basic and diluted common share, compared with $80,419,000, or $2.90 and
$2.89 per basic and diluted common share, respectively, for the same
period in 2011, an increase of 8.9%. Normalized FAD excludes the effects
of investment gains, loan recoveries and other adjustments totaling
$6,564,000 in 2012, and excluded the effects of investment gains, the
change in fair value of an interest rate swap agreement and other
adjustments totaling $8,666,000 in 2011.
FFO, as defined by the National Association of Real Estate Investment
Trusts (“NAREIT”), for the year ended December 31, 2012, was
$94,088,000, or $3.38 per basic and diluted common share, compared with
$88,842,000, or $3.21 and $3.20 per basic and diluted common share,
respectively, for the same period in 2011. Net income attributable to
common stockholders for the year ended December 31, 2012, was
$90,731,000, or $3.26 per basic and diluted common share, respectively,
compared with net income of $81,132,000, or $2.93 and $2.92 per basic
and diluted common share, for the same period in 2011.
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 is filed on Form 8-K and in our Form 10-K and
supplemental data filed with the Securities and Exchange Commission.
2013 Guidance -
The Company currently forecasts Normalized FFO for 2013 from $3.30 to
$3.38 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
| | |
|
$
|
2.76
|
|
|
|
|
$
|
2.81
| |
|
Plus: Real estate depreciation
| | |
|
.54
|
| | |
|
.57
|
|
| Normalized FFO per diluted common share | | |
| $ | 3.30 |
| | |
| $ | 3.38 |
|
| | | | | | | | | | | |
|
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
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 new 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 Friday, February 15, 2013, at 1 p.m.
ET, to discuss fourth quarter results. The number to call for this
interactive teleconference is (212) 231-2902 with the confirmation
number, 21645930. 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.
|
|
| Reconciliation of Funds From Operations and Normalized Funds From
Operations(1)(2) |
| (in thousands, except share and per share amounts) |
|
|
| |
|
| |
|
| |
|
| |
| | |
Three Months Ended
| | |
Twelve Months Ended
|
| | | December 31,
| | |
December 31,
|
| | |
2012
| | |
2011
| | |
2012
| | |
2011
|
|
Net income attributable to common stockholders
| | |
$
|
41,105
| | | |
$
|
18,114
| | | |
$
|
90,731
| | | |
$
|
81,132
| |
|
Elimination of certain non-cash items in net income:
| | | | | | | | | | | | |
|
Real estate depreciation in continuing operations
| | |
3,712
| | | |
2,823
| | | |
14,989
| | | |
10,615
| |
|
Real estate depreciation related to noncontrolling interest
| | |
(68
|
)
| | |
—
| | | |
(68
|
)
| | |
—
| |
|
Real estate depreciation in discontinued operations
| | |
99
| | | |
101
| | | |
402
| | | |
443
| |
|
Net gain on sales of real estate
| | |
(11,966
|
)
| | |
—
|
| | |
(11,966
|
)
| | |
(3,348
|
)
|
|
Funds from operations
| | |
$
|
32,882
| | | |
$
|
21,038
| | | |
$
|
94,088
| | | |
$
|
88,842
| |
|
Investment and other gains
| | |
(4,730
|
)
| | |
—
| | | |
(4,760
|
)
| | |
(9,899
|
)
|
|
Loan write-downs (recoveries), net
| | |
(4,495
|
)
| | |
—
| | | |
(2,195
|
)
| | |
(99
|
)
|
|
Non-cash write-off of straight-line rent receivable
| | |
—
| | | |
—
| | | |
963
| | | |
—
| |
|
Write-offs and expenses due to early lease termination
| | |
—
| | | |
—
| | | |
297
| | | |
—
| |
|
Change in fair value of interest rate swap agreement
| | |
—
| | | |
275
| | | |
—
| | | |
1,197
| |
|
Legal settlements
| | |
—
| | | |
—
| | | |
365
| | | |
—
| |
|
Other items
| | |
(288
|
)
| | |
135
|
| | |
(271
|
)
| | |
135
|
|
|
Normalized FFO
| | |
$
|
23,369
|
| | |
$
|
21,448
|
| | |
$
|
88,487
|
| | |
$
|
80,176
|
|
| | | | | | | | | | | |
|
BASIC | | | | | | | | | | | | |
|
Weighted average common shares outstanding
| | |
27,848,002
| | | |
27,741,961
| | | |
27,811,813
| | | |
27,719,096
| |
|
FFO per common share
| | |
$
|
1.18
| | | |
$
|
.76
| | | |
$
|
3.38
| | | |
$
|
3.21
| |
|
Normalized FFO per common share
| | |
$
|
.84
| | | |
$
|
.77
| | | |
$
|
3.18
| | | |
$
|
2.89
| |
| | | | | | | | | | | |
|
DILUTED | | | | | | | | | | | | |
|
Weighted average common shares outstanding
| | |
27,868,245
| | | |
27,784,915
| | | |
27,838,720
| | | |
27,792,592
| |
|
FFO per common share
| | |
$
|
1.18
| | | |
$
|
.76
| | | |
$
|
3.38
| | | |
$
|
3.20
| |
|
Normalized FFO per common share
| | |
$
|
.84
| | | |
$
|
.77
| | | |
$
|
3.18
| | | |
$
|
2.88
| |
| | | | | | | | | | | |
|
| | | | | | | | | | | |
|
(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
| | |
Twelve Months Ended
|
| | | December 31,
| | |
December 31,
|
| | |
2012
| | |
2011
| | |
2012
| | |
2011
|
|
Net income attributable to common stockholders
| | |
$
|
41,105
| | | |
$
|
18,114
| | | |
$
|
90,731
| | | |
$
|
81,132
| |
|
Elimination of certain non-cash items in net income:
| | | | | | | | | | | | |
|
Depreciation in continuing operations
| | |
4,229
| | | |
3,124
| | | |
16,579
| | | |
11,549
| |
|
Depreciation related to noncontrolling interest
| | |
(87
|
)
| | |
—
| | | |
(87
|
)
| | |
—
| |
|
Depreciation in discontinued operations
| | |
99
| | | |
101
| | | |
402
| | | |
443
| |
|
Net gain on sales of real estate
| | |
(11,966
|
)
| | |
—
| | | |
(11,966
|
)
| | |
(3,348
|
)
|
|
Straight-line lease revenue, net
| | |
(1,340
|
)
| | |
(1,016
|
)
| | |
(3,664
|
)
| | |
(3,778
|
)
|
|
Non-cash stock based compensation
| | |
244
|
| | |
175
|
| | |
2,168
|
| | |
3,087
|
|
|
Funds available for distribution
| | |
$
|
32,284
| | | |
$
|
20,498
| | | |
$
|
94,163
| | | |
$
|
89,085
| |
|
Investment and other gains
| | |
(4,730
|
)
| | |
—
| | | |
(4,760
|
)
| | |
(9,899
|
)
|
|
Loan write-downs (recoveries), net
| | |
(4,495
|
)
| | |
—
| | | |
(2,195
|
)
| | |
(99
|
)
|
|
Write-offs and expenses due to early lease termination
| | |
—
| | | |
—
| | | |
297
| | | |
—
| |
|
Change in fair value of interest rate swap agreement
| | |
—
| | | |
275
| | | |
—
| | | |
1,197
| |
|
Legal settlements
| | |
—
| | | |
—
| | | |
365
| | | |
—
| |
|
Other items
| | |
(288
|
)
| | |
135
|
| | |
(271
|
)
| | |
135
|
|
|
Normalized FAD
| | |
$
|
22,771
|
| | |
$
|
20,908
|
| | |
$
|
87,599
|
| | |
$
|
80,419
|
|
| | | | | | | | | | | |
|
BASIC | | | | | | | | | | | | |
|
Weighted average common shares outstanding
| | |
27,848,002
| | | |
27,741,961
| | | |
27,811,813
| | | |
27,719,096
| |
|
FAD per common share
| | |
$
|
1.16
| | | |
$
|
.74
| | | |
$
|
3.39
| | | |
$
|
3.21
| |
|
Normalized FAD per common share
| | |
$
|
.82
| | | |
$
|
.75
| | | |
$
|
3.15
| | | |
$
|
2.90
| |
| | | | | | | | | | | |
|
DILUTED | | | | | | | | | | | | |
|
Weighted average common shares outstanding
| | |
27,868,245
| | | |
27,784,915
| | | |
27,838,720
| | | |
27,792,592
| |
|
FAD per common share
| | |
$
|
1.16
| | | |
$
|
.74
| | | |
$
|
3.38
| | | |
$
|
3.21
| |
|
Normalized FAD per common share
| | |
$
|
.82
| | | |
$
|
.75
| | | |
$
|
3.15
| | | |
$
|
2.89
| |
| | | | | | | | | | | |
|
| | | | | | | | | | | |
|
(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
| | |
Twelve Months Ended
|
| | | December 31,
| | |
December 31,
|
| | |
2012
| | |
2011
| | |
2012
| | |
2011
|
| | |
(unaudited)
| | |
(unaudited)
|
|
Revenues:
| | | | | | | | | | | | |
|
Rental income
| | |
$
|
23,783
| | | |
$
|
19,833
| | | |
$
|
85,115
| | | |
$
|
76,078
| |
|
Mortgage interest income
| | |
1,997
| | | |
1,733
| | | |
7,426
| | | |
6,652
| |
|
Investment income and other
| | |
1,039
|
| | |
1,052
|
| | |
4,412
|
| | |
4,483
|
|
| | |
26,819
|
| | |
22,618
|
| | |
96,953
|
| | |
87,213
|
|
|
Expenses:
| | | | | | | | | | | | |
|
Depreciation
| | |
4,229
| | | |
3,124
| | | |
16,579
| | | |
11,549
| |
|
Interest expense
| | |
1,316
| | | |
1,219
| | | |
3,492
| | | |
3,848
| |
|
Legal expense
| | |
342
| | | |
111
| | | |
766
| | | |
559
| |
|
Franchise, excise and other taxes
| | |
145
| | | |
194
| | | |
771
| | | |
837
| |
|
General and administrative
| | |
1,780
| | | |
1,218
| | | |
7,799
| | | |
7,588
| |
|
Loan and realty recoveries
| | |
(4,495
|
)
| | |
—
|
| | |
(2,195
|
)
| | |
(99
|
)
|
| | |
3,317
|
| | |
5,866
|
| | |
27,212
|
| | |
24,282
|
|
Income before unconsolidated entity, gains on sales of marketable
securities, discontinued operations and noncontrolling interest
| | |
23,502
| | | |
16,752
| | | |
69,741
| | | |
62,931
| |
|
Income from unconsolidated entity
| | |
45
| | | |
—
| | | |
45
| | | |
—
| |
|
Gains on sales of marketable securities
| | |
4,759
|
| | |
294
|
| | |
4,877
|
| | |
10,261
|
|
|
Income from continuing operations
| | |
28,306
| | | |
17,046
| | | |
74,663
| | | |
73,192
| |
|
Discontinued operations
| | | | | | | | | | | | |
|
Income from operations - discontinued
| | |
1,000
| | | |
1,068
| | | |
4,269
| | | |
4,592
| |
|
Gain on sale of real estate
| | |
11,966
|
| | |
—
|
| | |
11,966
|
| | |
3,348
|
|
|
Income from discontinued operations
| | |
12,966
|
| | |
1,068
|
| | |
16,235
|
| | |
7,940
|
|
|
Net income
| | |
41,272
| | | |
18,114
| | | |
90,898
| | | |
81,132
| |
|
Net income attributable to noncontrolling interest
| | |
(167
|
)
| | |
—
|
| | |
(167
|
)
| | |
—
|
|
|
Net income attributable to common stockholders
| | |
$
|
41,105
|
| | |
$
|
18,114
|
| | |
$
|
90,731
|
| | |
$
|
81,132
|
|
| | | | | | | | | | | |
|
|
Weighted average common shares outstanding:
| | | | | | | | | | | | |
|
Basic
| | |
27,848,002
| | | |
27,741,961
| | | |
27,811,813
| | | |
27,719,096
| |
|
Diluted
| | |
27,868,245
| | | |
27,784,915
| | | |
27,838,720
| | | |
27,792,592
| |
| | | | | | | | | | | |
|
|
Earnings per common share:
| | | | | | | | | | | | |
|
Basic:
| | | | | | | | | | | | |
|
Income from continuing operations attributable to common stockholders
| | |
$
|
1.01
| | | |
$
|
.61
| | | |
$
|
2.68
| | | |
$
|
2.64
| |
|
Discontinued operations
| | |
.47
|
| | |
.04
|
| | |
0.58
|
| | |
0.29
|
|
|
Net income attributable to common stockholders
| | |
$
|
1.48
|
| | |
$
|
.65
|
| | |
$
|
3.26
|
| | |
$
|
2.93
|
|
| | | | | | | | | | | |
|
|
Diluted:
| | | | | | | | | | | | |
|
Income from continuing operations attributable to common stockholders
| | |
$
|
1.01
| | | |
$
|
.61
| | | |
$
|
2.68
| | | |
$
|
2.63
| |
|
Discontinued operations
| | |
.47
|
| | |
.04
|
| | |
0.58
|
| | |
0.29
|
|
|
Net income attributable to common stockholders
| | |
$
|
1.48
|
| | |
$
|
.65
|
| | |
$
|
3.26
|
| | |
$
|
2.92
|
|
| | | | | | | | | | | |
|
|
Regular dividends declared per common share
| | |
$
|
0.67
| | | |
$
|
0.65
| | | |
$
|
2.64
| | | |
$
|
2.50
| |
| | | | | | | | | | | | | | | | | | | |
|
|
|
| Selected Balance Sheet Data |
| (in thousands) |
|
|
| December 31, 2012 |
|
| December 31, 2011 |
| | | (unaudited) | | | |
|
Real estate properties, net
| | |
$
|
535,390
| | | |
$
|
394,795
|
|
Mortgages receivable, net
| | |
84,250
| | | |
78,672
|
|
Investment in preferred stock, at cost
| | |
38,132
| | | |
38,132
|
|
Cash and cash equivalents
| | |
9,172
| | | |
15,886
|
|
Marketable securities
| | |
12,884
| | | |
11,364
|
|
Assets held for sale, net
| | |
1,611
| | | |
29,381
|
|
Debt
| | |
203,250
| | | |
97,300
|
National Health Investors Stockholders’ equity
| | |
457,182
| | | |
443,485
|
| | | | | | |
|
National Health Investors, Inc.
Roger R. Hopkins,
615-890-9100
Chief Accounting Officer
Source: National Health Investors, Inc.