EX-99 2 f07yeprex99.htm 2007 YEAR END RESULTS PRESS RELEASE 2007 YE Press Release






EXHIBIT 99



For Release: February 28, 2008

Contact: Kenneth D. DenBesten, SVP Finance, Secretary

Phone: (615) 890-9100

NHI reports 2007 year end results

MURFREESBORO, Tenn. -National Health Investors, Inc., (NYSE:NHI) announced net income for the year ended December 31, 2007 of $96,435,000 or $3.48 per common share basic and $3.47 per common share diluted, compared to net income of $69,228,000 or $2.50 per common share basic and $2.49 per common share diluted for 2006. Net income for the year ended December 31, 2007 included income from recoveries of previous writedowns, gains on the sale and deconsolidation of certain facilities, gains from loan payoffs and other asset sales totaling $38,916,000 or $1.40 per basic and diluted share of common stock, compared to income in 2006 from similar items of $15,688,000 or $.57 per basic share and $.56 per diluted share of common stock.

Funds from operations ("FFO") for the year ended December 31, 2007 was $94,912,000, or $3.43 per basic and $3.42 per diluted share of common stock compared to $74,221,000, or $2.68 per basic and $2.67 per diluted share of common stock in 2006. Funds from operations for the year ended December 31, 2007 included income from recoveries of previous writedowns, gains from non real estate asset sales, and gains from loan payoffs totaling $25,736,000 or $.93 per basic and diluted share of common stock, compared to income in 2006 from similar items of $9,874,000 or $.36 per basic and diluted share of common stock.

Net income for the fourth quarter ended December 31, 2007 was $29,435,000 or $1.06 per basic and diluted common share of stock, compared to net income of $23,449,000 or $.85 per basic and $.84 per diluted common share of stock for the same period in 2006.  Net income for the fourth quarter ended December 31, 2007 included income from recoveries of previous writedowns and gains on the sale and deconsolidation of certain facilities totaling $14,737,000 or $.53 per basic and diluted share of common stock, compared to income in 2006 from recoveries of previous writedowns and gains from loan payoffs totaling $9,579,000 or $.35 per basic and $.34 per diluted share of common stock.

For the fourth quarter ended December 31, 2007, FFO was $19,735,000 or $.71 per basic and diluted share of common stock compared to $26,193,000 or $.95 per basic and $.94 per diluted share of common stock for the same period in 2006.  Funds from operations for the fourth quarter ended December 31, 2007 included income from recoveries of previous writedowns and gains from non real estate asset sales totaling $2,268,000 or $.08 per basic and diluted share of common stock compared to income in 2006 from recoveries of previous writedowns and gains from loan payoffs totaling $9,579,000 or $.35 per basic and $.34 per diluted share of common stock.

On December 31, 2007, we recognized for accounting purposes a gain on sale and deconsolidation of $12,469,000, or $.45 per basic and diluted share of common stock, related to 16 facilities in Kansas, Missouri, New Hampshire, and Massachusetts that were previously recorded as a sale for tax purposes on the installment method.

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.





Page 2 NHI’s 2007 Year End Results


Condensed Statements of Income

 

 

 

 

 

 

 

(in thousands, except share and per share amounts)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Twelve Months Ended

 

 

 

December 31

 

December 31

 

 

 

2007

 

2006

 

2007

 

2006

Revenues:

 

 

 

 

 

 

 

 

Mortgage interest income

$         2,216 

  

$       3,735 

  

$     11,308 

  

$      14,981 

 

Rental income

         12,797 

 

        1,718 

 

      51,005 

 

        46,281 

 

 

 

$       15,013 

 

$     15,453 

 

$     62,313 

 

$      61,262 

Expenses:

 

 

 

 

 

 

 

 

Interest expense

$            150 

 

 $       2,023 

 

$       4,625 

 

$        8,126 

 

Depreciation

2,129 

 

         2,146 

 

9,143 

 

        8,442 

 

Amortization of loan costs

4 

 

            34 

 

           75 

 

            135 

 

Legal expense

524 

 

           190 

 

      1,079 

 

582 

 

Franchise, excise and other taxes

              (57)

 

            18 

 

        273 

 

            204 

 

General and administrative

1,220 

 

      1,853 

 

5,656 

 

        5,328 

 

Loan and realty losses (recoveries)

        (1,238)

 

        (7,934)

 

    (24,238)

 

       (7,934)

 

 

 

$         2,732 

 

$      (1,670)

 

$     (3,387)

 

$      14,883 

 

 

 

 

 

 

 

 

 

 

Income Before Non-Operating Income

$       12,281 

 

$     17,123 

 

$    65,700 

 

$      46,379 

 

Non-operating income (investment interest and other)

           3,537 

 

        4,327 

 

      13,341 

 

       12,721 

Income From Continuing Operations

$       15,818 

 

$     21,450 

 

$    79,041 

 

$      59,100 

 

 

 

 

 

 

 

 

 

 

Discontinued Operations

 

 

 

 

 

 

 

 

Income from operations - discontinued

1,148 

 

       1,999 

 

4,256 

 

        4,314

 

Net gain on dispositions and deconsolidation

         12,469 

 

                - 

 

     13,138 

 

          5,814

 

 

 

$       13,617 

 

$       1,999 

 

$    17,394 

 

$      10,128 

 

 

 

 

 

 

 

 

 

 

Net income

$       29,435 

 

$     23,449 

 

$    96,435 

 

$      69,228 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding:

 

 

 

 

 

 

 

 

Basic

    27,703,539 

 

27,699,239 

 

27,703,464 

 

 27,744,868 

 

Diluted

    27,772,637 

 

27,778,612 

 

27,783,862 

 

 27,778,764 

 

 

 

 

 

 

 

 

 

 

Earnings per share:

 

 

 

 

 

 

 

 

Basic:

 

 

 

 

 

 

 

 

 

Income from continuing operations

$           0.57 

 

$         0.78 

 

$         2.85 

 

$          2.13 

 

 

Discontinued operations

            0.49 

 

          0.07 

 

          0.63 

 

           0.37 

 

 

Net income available to common stockholders

$           1.06 

 

$         0.85 

 

$         3.48 

 

$          2.50 

 

 

 

 

 

 

 

 

 

 

 

Diluted:

 

 

 

 

 

 

 

 

 

Income from continuing operations

$           0.57 

 

$         0.78 

 

$         2.84 

 

$          2.13 

 

 

Discontinued operations

            0.49 

 

           0.06 

 

         0.63 

 

           0.36 

 

 

Net income available to common stockholders

$           1.06 

 

$         0.84 

 

$         3.47 

 

$          2.49 

 

 

 

 

 

 

 

 

 

 

Funds from operations

 

 

 

 

 

 

 

 

Basic

$       19,735 

 

$     26,193 

 

$     94,912 

 

$      74,221 

 

Diluted

$       19,735 

 

$     26,193 

 

$     94,912 

 

$      74,221 

 

 

 

 

 

 

 

 

 

 

Funds from operations per common share

 

 

 

 

 

 

 

 

Basic

$           0.71 

 

$         0.95 

 

$         3.43 

 

$          2.68 

 

Diluted

$           0.71 

 

$         0.94 

 

$         3.42 

 

$          2.67 

 

 

 

 

 

 

 

 

 

 

Dividends declared per common share

$           1.35 

 

$         0.93 

 

$         2.85 

 

$          2.37 

 

 

 

 

 

 

 

 

 

 

In accordance with Statement of Financial Accounting Standard No. 144, the results of operations for facilities sold, including the gain or loss on such sales, have been reported in the current and prior periods as discontinued operations.  The reclassifications to retroactively reflect the disposition of these facilities had no impact on previously reported net income.







Page 3 NHI’s 2007 Year End Results


Selected Balance Sheet Data

(in thousands)

 

 

 

 

December 31

 

December 31

 

2007

   

2006

Real estate properties, net

 $      187,455

 

 $    235,199

Mortgages receivable, net

         141,655

 

         99,532

Preferred stock investment

           38,132

 

         38,132

Cash and marketable securities

         131,172

 

       203,278

Notes and bonds payable

             9,512

 

       113,492

Stockholders' equity

         446,138

 

       431,671


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

 

Twelve Months Ended

 

 

December 31

 

December 31

 

 

2007

 

2006

 

2007

 

2006

Net income

     29,435

 

       23,449

 

       96,435

 

        69,228

Elimination of non-cash items in net income:

 

 

 

 

 

 

 

 

Real estate depreciation

       2,030

 

          1,948

 

          8,788

 

          7,623

 

Real estate depreciation in discontinued operations

          739

 

             796

 

          2,869

 

          3,184

 

Gain on sale of real estate-continuing operations

              -

 

                 -

 

            (42)

 

                -

 

Gain on sale of real estate-discontinued operations

     (12,469)

 

                 -

 

     (13,138)

 

        (5,814)

Basic funds from operations

        19,735

 

       26,193

 

        94,912

 

       74,221

 

 

 

 

 

 

 

 

 

Other Adjustments

                 -

 

                 -

 

                 -

 

                 -

 

 

 

 

 

 

 

 

 

Diluted funds from operations

$     19,735

 

$     26,193

 

$     94,912

 

$      74,221

 

 

 

 

 

 

 

 

 

Basic funds from operations per share

$         0.71

 

$         0.95

 

$         3.43

 

$          2.68

Diluted funds from operations per share

$         0.71

 

$         0.94

 

$         3.42

 

$          2.67

 

 

 

 

 

 

 

 

 

Shares for basic funds from operations per share

27,703,539

 

27,699,239

 

27,703,464

 

27,744,868

Shares for diluted funds from operations per share

27,772,637

 

27,778,612

 

27,783,862

 

27,778,764


(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.  






Page 4 NHI’s 2007 Year End Results


National Health Investors, Inc.     Portfolio Summary      December 31, 2007

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Portfolio Statistics

 

Investment

 

 

 

Properties

Percentage

Investment

 

Real Estate Properties

72

57.0%

 $     187,455,000

 

Mortgages and Notes Receivables

52

40.9%

134,605,000

 

     Total Real Estate Portfolio

124

97.9%

 $     322,060,000

 

Other Notes Receivables

0

2.1%

7,050,000

 

     Total Portfolio

124

100.0%

 $     329,110,000

 

 

 

 

 

Real Estate Properties

Properties

Beds

Investments

 

Long term Care Centers

49

               6,835

 $     105,660,000

 

Assisted Living Facilities

14

                1,133

          57,761,000

 

Medical Office Buildings

4

 124,427 sq.ft.

             9,557,000

 

Independent Living Facilities

4

                 458

             7,890,000

 

Hospitals

1

                   55

             6,587,000

 

    Total Real Estate Properties

72

 

 $     187,455,000

 

 

 

 

 

Mortgage Notes Receivables

Properties

Beds

Investments

 

Long term Care Centers

34

                       3,581

 $     129,530,000

 

Developmentally Disabled

17

                          108

             3,949,000

 

Assisted Living Facilities

1

                            78

             1,126,000

 

    Total Mortgage Notes Receivable

52

 

 $     134,605,000

 

        Total Real Estate Portfolio

124

 

 $     322,060,000

 

 

 

 

 


Summary of Facilities by Type:

 

 

 

 

 

 

Percentage of

Total

 

 

       Properties

         Total Dollars

Dollars

 

Long term Care Centers

83

73.0%

       $      235,190,000

 

Assisted Living Facilities

15

18.3%

          58,887,000

 

Medical Office Buildings

4

3.0%

             9,557,000

 

Independent Living Facilities

4

2.4%

             7,890,000

 

Hospitals

1

2.0%

             6,587,000

 

Developmentally Disabled

17

1.2%

             3,949,000

 

    Total Real Estate Portfolio

124

100.0%

 $     322,060,000








Page 5 NHI’s 2007 Year End Results


Portfolio by Operator Type

 

 

 

 

 

# of

  Percentage of

Total

 

 

     Properties

Total Dollars

Dollars

 

Regional

50

56.2%

    $     181,117,000

 

Public

62

31.7%

        101,983,000

 

Small Operator

12

12.1%

          38,960,000

 

 

124

100.0%

 $     322,060,000


Public Operators

 

 

Percentage

 

 

 

Dollar

Of Total

 

 

 

Amount

Portfolio

 

National HealthCare Corp.

 $      61,055,000

19.0%

 

Sunrise Senior Living Services

             12,600,000

3.9%

 

Community Health Systems, Inc.

          12,308,000

3.8%

 

Sun Healthcare

            8,235,000

2.6%

 

Res-Care, Inc.

            3,949,000

1.2%

 

HCA-The Healthcare Company

            3,836,000

1.2%

 

    Total Public Operators

 $    101,983,000

                31.7%


National Health Investors, Inc.    Summary of Facilities by State    December 31, 2007

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Percent

 

 

 

  Acute

 

Dev.

Asst.

  Retire-

 

          Investment

Total

 

 

  LTC

Care

  MOB

  Disab.

  Living

ment

  Total

Amount

      Portfolio

 

Florida

11

 

1

14

4

 

30

 $    77,354,000

24.0%

 

Texas

8

 

2

 

 

 

10

       48,922,000

15.2%

 

Tennessee

20

 

 

3

3

2

28

       27,562,000

8.6%

 

Massachusetts

4

 

 

 

 

 

4

       25,216,000

7.8%

 

Missouri

8

 

 

 

 

1

9

       22,908,000

7.1%

 

Virginia

8

 

 

 

 

 

8

       19,582,000

6.1%

 

Kansas

6

 

 

 

 

 

6

       18,397,000

5.7%

 

Arizona

1

 

 

 

4

 

5

       17,419,000

5.4%

 

New Hampshire

3

 

 

 

1

 

4

       15,310,000

4.8%

 

New Jersey

 

 

 

 

1

 

1

       12,600,000

3.9%

 

Georgia

6

 

 

 

 

 

6

        9,759,000

3.0%

 

Kentucky

2

1

 

 

 

 

3

        7,527,000

2.3%

 

South Carolina

3

 

 

 

1

 

4

        6,948,000

2.2%

 

Idaho

1

 

 

 

 

1

2

        5,006,000

1.6%

 

Pennsylvania

 

 

 

 

1

 

1

        4,168,000

1.3%

 

Alabama

2

 

 

 

 

 

2

        1,962,000

0.6%

 

Illinois

 

 

1

 

 

 

1

        1,420,000

0.4%

 

 

83

1

4

17

15

4

124

$   322,060,000

100.0%