EX-99 2 earningspressreleaseq109_99.htm PRESS RELEASE ATTACHMENT For Release: May 1, 2009

Exhibit 99




For Release: May 1, 2009

Contact: Roger R Hopkins, Chief Accounting Officer

Phone: (615) 890-9100

NHI reports first quarter income

MURFREESBORO, Tenn. - National Health Investors, Inc. (NYSE:NHI) announced today its net income and funds from operations (“FFO”) for the three months ended March 31, 2009.

First Quarter Highlights:

·

Net income increased from $13,399,000 to $15,049,000 or 12.3%

·

Funds from operations (FFO) increased from $15,325,000 to $16,978,000 or 10.8%

·

Recovery of a previous write-down, settlement of former tenant lease and other gains totaled $1,879,000

Net income for the three months ended March 31, 2009 was of $15,049,000 or $0.55 per basic and diluted common share compared to net income of $13,399,000 or $0.48 per basic and diluted common share for the same period in 2008.  Net income was favorably impacted in 2009 by $1,879,000 or $0.07 per basic and diluted common share related to the settlement of a former tenant lease and prepayment of a mortgage loan receivable that resulted in the recovery of a previous write-down and other gains.

Funds from operations ("FFO") for the three months ended March 31, 2009 was $16,978,000 or $0.62 per basic and diluted common share compared to $15,325,000 or $0.55 per basic and diluted common share for the same period in 2008.  FFO was favorably impacted in 2009 by $1,879,000 or $0.07 per basic and diluted common share related to the items described above.

National Health Investors, Inc. is a 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 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.

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Page 2 NHI’s First Quarter 2009 Results


Condensed Statements of Income

 

 

 

 

(in thousands, except share and per share amounts)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

 

 

 March 31,

 

 

 

 

 2009

 

 2008

 

Revenues:

 

 

 

 

 

Rental income

 $               14,029 

 

 $         12,962 

 

 

Mortgage interest income

                  1,913 

 

            2,397 

 

 

 

 

 $               15,942 

 

 $         15,359 

 

Expenses:

 

 

 

 

 

Interest expense

 $                      37 

 

 $              105 

 

 

Depreciation

                   1,951 

 

            2,007 

 

 

Amortization of loan costs

                          4 

 

                     4 

 

 

Legal expense

                      450 

 

                 134 

 

 

Franchise, excise and other taxes

                      275 

 

                223 

 

 

General and administrative

                    1,589 

 

              1,446 

 

 

Loan and realty losses (recoveries)

                   (640)

 

                    - 

 

 

 

 

 $                 3,666 

 

 $           3,919 

 

 

 

 

 

 

 

 

Income Before Non-Operating Income

 $                12,276

 

 $         11,440 

 

 

Non-operating income (investment interest and other)

                 2,814

 

            1,978 

 

Income From Continuing Operations

 $                15,090

 

 $         13,418 

 

 

 

 

 

 

 

 

Discontinued Operations

 

 

 

 

 

Income from operations - discontinued

                     (41)

 

               (19)

 

 

 

 

 

 

 

 

Net income

 $               15,049 

 

 $         13,399 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding:

 

 

 

 

 

Basic

         27,574,544 

 

   27,730,686 

 

 

Diluted

           27,582,228 

 

    27,786,425 

 

 

 

 

 

 

 

 

Earnings per share:

 

 

 

 

 

Basic:

 

 

 

 

 

 

Income from continuing operations

 $                   0.55 

 

 $             0.48 

 

 

 

Discontinued operations

                         - 

 

                     - 

 

 

 

Net income available to common stockholders

 $                   0.55 

 

 $             0.48 

 

 

 

 

 

 

 

 

 

Diluted:

 

 

 

 

 

 

Income from continuing operations

 $                   0.55 

 

 $             0.48 

 

 

 

Discontinued operations

                          - 

 

                     - 

 

 

 

Net income available to common stockholders

 $                   0.55 

 

 $             0.48 

 

 

 

 

 

 

 

 

Funds from operations

 

 

 

 

 

Basic

 $               16,978 

 

 $         15,325 

 

 

Diluted

 $               16,978 

 

 $         15,325 

 

 

 

 

 

 

 

 

Funds from operations per common share

 

 

 

 

 

Basic

 $                   0.62 

 

 $             0.55 

 

 

Diluted

 $                   0.62 

 

 $             0.55 

 

 

 

 

 

 

 

 

Quarterly dividend declared per common share

 $                   0.55 

 

 $             0.55 

 

 

 

 

 

 

 

 

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.


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Page 3 NHI’s First Quarter 2009 Results


Selected Balance Sheet Data

 

 

 

(in thousands)

 

 

 

 

March 31,

 

December 31,

 

 2009

           

 2008

Real estate properties, net

 $          179,381

 

 $       181,332

Mortgages receivable, net

             102,694

 

          108,640

Preferred stock investment

               38,132

 

             38,132

Cash and marketable securities

             104,935

 

          100,242

Bonds payable

                  2,762

 

               3,987

Stockholders' equity

             427,460

 

          429,615


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

 

 

 

March 31,

 

 

 

 2009

 

 2008

 

Net income

       15,049

 

       13,399

 

Elimination of non-cash items in net income:

 

 

 

 

 

Real estate depreciation

         1,929

 

        1,908

 

 

Real estate depreciation in discontinued operations

             -

 

             18

 

Basic funds from operations

       16,978

 

        15,325

 

 

 

 

 

 

 

Diluted funds from operations

 $      16,978

 

 $     15,325

 

 

 

 

 

 

 

Basic funds from operations per share

 $         0.62

 

 $        0.55

 

Diluted funds from operations per share

 $          0.62

 

 $         0.55

 

 

 

 

 

 

 

Shares for basic funds from operations per share

    27,574,544

 

    27,730,686

 

Shares for diluted funds from operations per share

    27,582,228

 

    27,786,425

 


(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 First Quarter 2009 Results


National Health Investors, Inc.     Portfolio Summary (excluding corporate office)      March 31, 2009

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Portfolio Statistics

 

Investment

 

 

 

Properties

Percentage

Investment

 

Real Estate Properties

                       72

63.6%

 $        179,352,000

 

Mortgages and Notes Receivables

                       49

36.4%

 102,694,000

 

     Total Real Estate Portfolio

                     121

                     100.0%

 $        282,046,000

 

 

 

 

 

 

 

 

 

 

Real Estate Properties

Properties

Beds

Investments

 

Long Term Care Centers

                       49

                        6,788

 $        100,962,000

 

Assisted Living Facilities

                       14

                        1,141

             55,693,000

 

Medical Office Buildings

                         4

 124,427 sq.ft.

               9,038,000

 

Independent Living Facilities

                         4

                           456

               7,442,000

 

Hospitals

                         1

                             55

             6,217,000

 

    Total Real Estate Properties

                       72

 

 $        179,352,000

 

 

 

 

 

Mortgage Notes Receivables

Properties

Beds

Investments

 

Long Term Care Centers

                       32

                        3,581

 $          98,999,000

 

Developmentally Disabled

                       17

                           108

             3,695,000

 

    Total Mortgage Notes Receivable

                       49

                        3,689

         102,694,000

 

        Total Real Estate Portfolio

                     121

 

 $        282,046,000

 

 

 

 

 

 

 

 

 

 

Summary of Facilities by Type:

 

 

 

 

 

 

Percentage of

Total

 

 

Properties

Total Dollars

Dollars

 

Long Term Care Centers

                       81

71.0%

 $        199,961,000

 

Assisted Living Facilities

                       14

19.7%

             55,693,000

 

Medical Office Buildings

                         4

3.2%

               9,038,000

 

Independent Living Facilities

                         4

2.6%

               7,442,000

 

Hospitals

                         1

2.2%

               6,217,000

 

Developmentally Disabled

                       17

                       1.3%

             3,695,000

 

    Total Real Estate Portfolio

                     121

                   100.0%

 $        282,046,000


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Page 5 NHI’s First Quarter 2009 Results


Portfolio by Operator Type

 

 

 

 

 

 

Percentage of

Total

 

 

Properties

Total Dollars

Dollars

 

Regional

                       48

58.1%

        $        163,856,000

 

Public

                       65

32.5%

             91,644,000

 

Small Operator

                         8

9.4%

          26,546,000

 

 

                     121

            100.0%

 $        282,046,000


Public Operators

 

 

Percentage

 

 

 

Dollar

Of Total

 

 

 

Amount

Portfolio

 

National HealthCare Corp.

 $      56,223,000

                 20.0%         

 

Sunrise Senior Living Services

          12,202,000

                4.3%        

 

Community Health Systems, Inc.

          11,650,000

                4.1%        

 

Sun Healthcare

            7,874,000

                2.8%        

 

Res-Care, Inc.

         3,695,000

                1.3%        

 

    Total Public Operators

 $      91,644,000

             32.5%        


National Health Investors, Inc.    Summary of Facilities by State    March 31. 2009

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Percent

 

 

Acute

 

Dev.

Asst.

Retire-

 

Investment

Total

 

LTC

Care

MOB

Disab.

Living

ment

Total

Amount

Portfolio

Florida

      11

  -  

            1

         14

          4

  -  

       30

 $         70,919,000

25.1%

Texas

       8

  -  

            2

  -  

  -  

  -  

      10

           47,025,000

16.7%

Tennessee

    20

  -  

  -  

         3

          3

          2

       28

         25,662,000

9.1%

Missouri

       8

  -  

  -  

  -  

  -  

          1

         9

         20,203,000

7.2%

Arizona

        1

  -  

  -  

  -  

         4

  -  

         5

         16,771,000

5.9%

Virginia

        7

  -  

  -  

  -  

  -  

  -  

         7

         16,059,000

5.7%

Massachusetts

         4

  -  

  -  

  -  

  -  

  -  

         4

         14,268,000

5.1%

Kansas

         5

  -  

  -  

  -  

  -  

  -  

         5

         13,338,000

4.7%

New Jersey

 -  

  -  

  -  

  -  

         1

  -  

         1

         12,202,000

4.3%

South Carolina

         4

  -  

  -  

  -  

         1

  -  

         5

         10,449,000

3.7%

New Hampshire

         3

  -  

  -  

  -  

  -  

  -  

          3

           8,663,000

3.1%

Georgia

         5

  -  

  -  

  -  

  -  

  -  

          5

           7,418,000

2.6%

Kentucky

         2

         1

  -  

  -  

  -  

  -  

          3

           7,053,000

2.5%

Idaho

         1

  -  

  -  

  -  

  -  

          1

          2

           4,785,000

1.7%

Pennsylvania

 -  

  -  

  -  

  -  

           1

  -  

          1

           4,044,000

1.4%

Alabama

         2

  -  

  -  

  -  

  -  

  -  

          2

            1,835,000

0.7%

Illinois

         -  

           -  

            1

           -  

            -  

           -  

         1

             1,352,000

         0.5%

 

       81

          1

            4

        17

         14

           4

      121

 $       282,046,000

     100.0%



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