EX-99 2 fex99ye06.htm EXHIBIT 99 - PRESS RELEASE Exhibit 99: NHI Press Release - 2006 Year End Results

EXHIBIT 99




For Release:  March 15, 2007

Contact: Kenneth D. DenBesten, SVP Finance, Secretary

Phone: (615) 890-9100

NHI reports 2006 year end results

MURFREESBORO, Tenn. -National Health Investors, Inc., (NYSE:NHI) announced net income for the year ended December 31, 2006 of $69,228,000 or $2.50 per common share, basic and $2.49 per common share diluted, compared to net income of $54,408,000 or $1.96 per common share, basic and diluted for 2005. Net income for the year ended December 31, 2006 included income from recoveries of previous writedowns, gains from loan payoffs, gains from asset sales and prepayment penalties totaling $15,688,000 or 57 cents per basic share and 56 cents per diluted share of common stock, compared to income in 2005 from similar items of $6,349,000 or 23 cents per basic and diluted share of common stock.

Funds from operations ("FFO") for the year ended December 31, 2006 was $74,221,000, or $2.68 per basic and $2.67 per diluted share of common stock compared to $63,372,000, or $2.29 per basic and $63,453,000, or $2.28 per diluted share in 2005. Funds from operations for the year ended December 31, 2006 included income from recoveries of previous writedowns, gains from loan payoffs, and prepayment penalties totaling $9,874,000 or 36 cents per basic and diluted share of common stock, compared to income in 2005 from similar items of $3,799,000 or 14 cents per basic and diluted share of common stock.

Net income for the fourth quarter ended December 31, 2006 was $23,449,000 or 85 cents per basic and 84 cents per diluted common share of stock, compared to net income of $12,259,000 or 44 cents per common share, basic and diluted for the same period in 2005.  Net income for the fourth quarter ended December 31, 2006 included income from recoveries of previous writedowns and gains from loan payoffs totaling $9,579,000 or 35 cents per basic and 34 cents per diluted share of common stock, compared to income in 2005 from similar items of $471,000 or two cents per basic and diluted share of common stock.

For the fourth quarter ended December 31, 2006, FFO was $26,193,000 or 95 cents per basic and 94 cents per diluted share of common stock compared to $15,307,000 or 55 cents per basic and $15,322,000 or 55 cents per diluted share for the same period in 2005.  Funds from operations for the fourth quarter ended December 31, 2006 included income from recoveries of previous writedowns and gains from loan payoffs totaling $9,579,000 or 35 cents per basic and 34 cents per diluted share of common stock compared to income in 2005 from similar items of $564,000 or two cents per basic and diluted share of common stock.

National Health Investors, Inc. is a long-term health care real estate investment trust that specializes in the financing of health care real estate by first mortgage and by purchase and leaseback transactions. The common stock of the company trades on the New York Stock Exchange with the symbol NHI. Additional information including NHI's 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 made 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.

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Page 2 NHI’s year end results


Condensed Statements of Income

 

 

 

 

 

 

 

(in thousands, except share and per share amounts)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Year Ended

 

 

 

December 31

 

December 31

 

 

 

2006

 

2005

 

2006

 

2005

Revenues:

 

 

 

 

 

 

 

 

Mortgage interest income

 $      3,735

 

 $      3,685

 

 $     14,981

 

 $     18,226

 

Rental income

       11,718

 

       10,987

 

       46,281

 

       44,005

 

Facility operating revenues

       23,512

 

       21,200

 

       89,462

 

       84,693

 

 

 

 $    38,965

 

 $    35,872

 

 $  150,724

 

 $  146,924

Expenses:

 

 

 

 

 

 

 

 

Interest expense

 $      2,026

 

 $      2,056

 

 $      8,131

 

 $      8,556

 

Depreciation

         3,053

 

         3,127

 

       11,845

 

       12,199

 

Amortization of loan costs

              34

 

              34

 

            135

 

            174

 

Legal expense

            200

 

            203

 

            592

 

            570

 

Franchise, excise and other taxes

              18

 

            235

 

            204

 

            622

 

General and administrative

         1,868

 

         1,106

 

         5,344

 

         4,310

 

Loan and realty losses (recoveries)

        (7,934)

 

           (565)

 

        (7,934)

 

       10,837

 

Facility operating expenses

       20,581

 

       20,110

 

       82,181

 

       79,452

 

 

 

 $    19,846  

 

 $    26,306

 

 $  100,498

 

 $  116,720

 

 

 

 

 

 

 

 

 

 

Income Before Non-Operating Income

 $     19,119

 

 $      9,566

 

 $     50,226

 

 $     30,204

 

Non-operating income (investment Interest and other)

          4,327

 

         2,500

 

        12,721

 

        22,331

Income From Continuing Operations

 $     23,446

 

 $    12,066

 

 $     62,947

 

 $     52,535

 

 

 

 

 

 

 

 

 

 

Discontinued Operations

 

 

 

 

 

 

 

 

Operating income-discontinued operations

               3

 

            193

 

            467

 

         1,100

 

Net gain on sales of real estate

                -

 

                -

 

         5,814

 

            773

 

 

 

 $            3

 

 $         193

 

 $      6,281

 

 $      1,873

 

 

 

 

 

 

 

 

 

 

Net income

 $    23,449

 

 $     12,259

 

 $     69,228

 

 $     54,408

 

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding:

 

 

 

 

 

 

 

 

Basic

 27,699,239

 

 27,769,694

 

 27,744,868

 

 27,699,887

 

Diluted

 27,778,612

 

 27,835,147

 

 27,778,764

 

 27,830,886

 

 

 

 

 

 

 

 

 

 

Earnings per share:

 

 

 

 

 

 

 

 

Basic:

 

 

 

 

 

 

 

 

 

Income from continuing operations

 $        0.84

 

 $        0.43

 

 $        2.27

 

 $        1.89

 

 

Discontinued operations

           0.01

 

           0.01

 

           0.23

 

           0.07

 

 

Net income available to common stockholders

           0.85

 

           0.44

 

           2.50

 

           1.96

 

 

 

 

 

 

 

 

 

 

 

Diluted:

 

 

 

 

 

 

 

 

 

Income from continuing operations

 $        0.83

 

 $        0.43

 

 $        2.26

 

 $        1.89

 

 

Discontinued operations

           0.01

 

           0.01

 

           0.23

 

           0.07

 

 

Net income available to common stockholders

           0.84

 

           0.44

 

           2.49

 

           1.96

 

 

 

 

 

 

 

 

 

 

Funds from operations

 

 

 

 

 

 

 

 

Basic

 $     26,193

 

 $     15,307

 

 $     74,221

 

 $     63,372

 

Diluted

 $     26,193

 

 $     15,322

 

 $     74,221

 

 $     63,453

 

 

 

 

 

 

 

 

 

 

Funds from opertions per common share

 

 

 

 

 

 

 

 

Basic

 $        0.95

 

 $        0.55

 

 $        2.68

 

 $        2.29

 

Diluted

 $        0.94

 

 $        0.55

 

 $        2.67

 

 $        2.28

 

 

 

 

 

 

 

 

 

 

Dividends declared per common share

 $        0.93

 

 $        0.45

 

 $        2.37

 

 $        1.80


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Page 3 NHI’s year end results


Balance Sheet Data

 

 

 

(in thousands)

 

 

 

 

December 31

 

2006

 

2005

Real estate properties, net

 $235,199

 

 $263,129

Morgages receivable, net

     99,532

 

   118,800

Preferred stock investment

     38,132

 

     38,132

Cash and marketable securities

   177,765

 

   152,022

Debt

   113,492

 

   117,252

Convertible debt

             -

 

         201

Stockholders' equity

   431,671

 

   424,968


Reconciliation of Funds From Operations (1)(2)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The following table reconciles net income to funds from operations available to common stockholders:

 

 

 

(in thousands, except share and per share amounts)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Year Ended

 

 

December 31

 

December 31

 

 

2006

 

2005

 

2006

 

2005

Net income

       23,449

 

       12,259

 

       69,228

 

       54,408

Elimination of non-cash items in net income:

 

 

 

 

 

 

 

 

Real estate depreciation

         2,744

 

         2,844

 

       10,668

 

       11,049

 

Real estate depreciation in discontinued operations

                -

 

            114

 

            139

 

           469

 

Loss (gain) on sale of real estate

                -

 

              90

 

        (5,814)

 

        (2,554)

Basic funds from operations

       26,193

 

       15,307

 

       74,221

 

       63,372

 

 

 

 

 

 

 

 

 

Interest on convertible subordinated

 

 

 

 

 

 

 

 

debentures

                -

 

              15

 

                -

 

              81

 

 

 

 

 

 

 

 

 

Diluted funds from operations

 $     26,193

 

 $     15,322

 

 $     74,221

 

 $     63,453

 

 

 

 

 

 

 

 

 

Basic funds from operations per share

 $        0.95

 

 $        0.55

 

 $        2.68

 

 $        2.29

Diluted funds from operations per share

 $        0.94

 

 $        0.55

 

 $        2.67

 

 $        2.28

 

 

 

 

 

 

 

 

 

Shares for basic funds from operations per share

 27,699,239

 

 27,769,694

 

 27,744,868

 

 27,699,887

Shares for diluted funds from operations per share

 27,778,612

 

 27,835,147

 

 27,778,764

 

 27,830,886

 

 

 

 

 

 

 

 

 

(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.  Funds from operations in and of itself 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) 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.  




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Page 4 NHI’s year end results


National Health Investors, Inc.    Portfolio Summary    December 31, 2006

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Portfolio Statistics

 

Investment

 

 

 

 

Properties

Percentage

 

Investment

 

Real Estate Properties

90

72%

 

 $   235,199,000

 

Mortgages and Notes Receivable

49

28%

 

        90,782,000

 

Total Real Estate Portfolio

139

100%

 

 $   325,981,000

 

 

 

 

 

 

Real Estate Properties

Properties

Beds

 

 Investments

 

Long-Term Care Centers

66

                 8,555

 

 $   149,537,000

 

Assisted Living

14

                 1,161

 

        59,080,000

 

Medical Office Buildings

4

 124,427 sq.ft.

 

          9,983,000

 

Retirement Homes

5

                    534

 

          9,700,000

 

Hospitals

1

                      55

 

          6,899,000

 

Total Real Estate Properties

90

 

 

 $   235,199,000

 

 

 

 

 

 

Mortgages and Notes Receivable

Properties

Beds

 

 Investments

 

Long-Term Care Centers

31

                 3,377

 

 $     84,716,000

 

Retirement Homes

1

                      60

 

          1,936,000

 

Developmentally Disabled

17

                    108

 

          4,130,000

 

Total Mortgages and Notes Receivable

49

 

 

 $     90,782,000

 

Total Real Estate Portfolio

139

 

 

 $   325,981,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Percentage of

 

 

Summary of Facilities by Type

Properties

Total Dollars

 

Total Dollars

 

Long-Term Care Centers

97

71.86%

 

 $   234,253,000

 

Assisted Living

14

18.12%

 

        59,080,000

 

Medical Office Buildings

4

3.06%

 

          9,983,000

 

Retirement Homes

6

3.57%

 

        11,636,000

 

Hospitals

1

2.12%

 

          6,899,000

 

Developmentally Disabled

17

1.27%

 

          4,130,000

 

Total Real Estate Portfolio

139

100.00%

 

 $   325,981,000



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Page 5 NHI’s year end results



 

 

 

Percentage of

 

 

Portfolio by Operator Type

Properties

Total Dollars

 

Total Dollars

 

Public

62

26.68%

 

 $     86,981,000

 

Regional

65

61.82%

 

      201,521,000

 

Small Operator

12

11.50%

 

        37,479,000

 

Total Real Estate Portfolio

139

100.00%

 

 $   325,981,000


 

 

 

 

 

 

 

 

 

 

National Health Investors, Inc.     Summary of Facilities by State    December 31, 2006

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Percent

 

 

Acute

 

Dev.

Asst.

Retire-

 

Investment

Total

 

LTC

Care

MOB

Disab.

Living

Ment

Total

Amount

Portfolio

Florida

12

 

1

14

4

 

31

 $     78,285,000

24.02%

Texas

19

 

2

 

 

1

22

        73,832,000

22.65%

Tennessee

20

 

 

3

3

2

28

        29,190,000

8.95%

Virginia

8

 

 

 

 

 

8

        19,879,000

6.10%

Missouri

8

 

 

 

 

1

9

        18,720,000

5.74%

Arizona

1

 

 

 

4

 

5

        17,953,000

5.51%

New Hampshire

3

 

 

 

 

1

4

        13,932,000

4.27%

New Jersey

0

 

 

 

1

 

1

        12,919,000

3.96%

Kansas

7

 

 

 

 

 

7

        11,144,000

3.42%

Massachusetts

4

 

 

 

 

 

4

        10,252,000

3.14%

Georgia

6

 

 

 

 

 

6

          9,999,000

3.07%

Kentucky

2

1

 

 

 

 

3

          7,925,000

2.43%

South Carolina

3

 

 

 

1

 

4

          7,329,000

2.25%

Idaho

1

 

 

 

 

1

2

          5,183,000

1.59%

Pennsylvania

0

 

 

 

1

 

1

          4,267,000

1.31%

Alabama

2

 

 

 

 

 

2

          2,063,000

0.63%

Wisconsin

1

 

 

 

 

 

1

          1,636,000

0.50%

Illinois

0

 

1

 

 

 

1

          1,473,000

0.45%

 

97

1

4

17

14

6

139

 $   325,981,000

100.00%

 

 

 

 

 

 

 

 

 

 


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