| UNITED STATES | ||
| SECURITIES AND EXCHANGE COMMISSION | ||
Washington, D.C. 20549 | ||
FORM 8-K | ||
CURRENT REPORT PURSUANT | ||
TO SECTION 13 OR 15(d) OF THE | ||
SECURITIES EXCHANGE ACT OF 1934 | ||
Date of Report (Date of earliest event reported): May 10, 2005 (May 10, 2005) | ||
National Health Realty, Inc. | ||
(Exact name of Registrant as specified in its charter) | ||
Maryland | ||
(State or Other Jurisdiction of Incorporation) | ||
001-13487 | 52-2059888 | |
(Commission File No.) | (IRS Employer | |
Identification Number) | ||
100 Vine Street, Suite 1402 | ||
Murfreesboro, TN 37130 | ||
(Address of principal executive offices, including zip code) | ||
(615) 890-2020 | ||
(Registrant's telephone number, including area code) | ||
Not Applicable | ||
(Former name or former address, if changed since last report) | ||
Item 2.02. Results of Operations and Financial Condition.
On May 10,2005, National Health Realty, Inc. issued a press release announcing its 2005 first quarter results. A copy of the press release is filed as Exhibit 99 to this Current Report on Form 8-K and is incorporated by reference herein.
SIGNATURES
Pursuant to the requirements of the Securities and Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| National Health Realty, Inc. | |
| By:/s/ Robert G. Adams | |
| Name: Robert G. Adams | |
| Title: President | |
| Date: May 10, 2005 |
Exhibit Index
| Number | Exhibit |
| 99 | Press release, dated May 10, 2005 |
Exhibit 99
For Release: May 10, 2005
Contact: Gerald Coggin, Sr. VP of Corporate Relations
Phone: (615) 890-9100 ext. 1405
NHR reports first quarter income
MURFREESBORO, Tenn. -- National Health Realty, Inc., (AMEX: NHR) a long-term health care real estate investment trust, announced net income for the quarter ended March 31 of $2,783,000 compared to $3,104,000 last year.
For the three months ended March 31, net income per share was 29 cents basic and 28 cents diluted compared to 32 cents, basic and diluted, for the first quarter last year. Basic and diluted funds from operations were 42 cents per share compared to 46 cents and 45 cents per share, basic and diluted, last year. Revenues for the quarter totaled $4,900,000 compared to $5,410,000 last year.
The results of the prior year first quarter include interest income of approximately $502,000 on $30,384,000 of 10.25% mortgage notes receivable which were repaid to us on February 27, 2004. The first quarter results last year also include interest expense of approximately $163,000 on debt of $31,175,000 which we prepaid in February, 2004. Accordingly, net income decreased by $339,000, compared to the prior year due to the prepayment.
NHR owns the real property of 16 skilled nursing facilities, six assisted living centers and one retirement center. NHR also owns first and second mortgage notes totaling $13.5 million. These notes are secured by operating skilled nursing facilities and other health care properties. The company trades on the American Stock Exchange with the symbol NHR.
Statements in this press release that are not historical facts are forward looking statements. NHR cautions investors that any forward-looking statements made involve risks and uncertainties and are not guarantees of future performance. All forward-looking statements represent NHR's best judgment as of the date of this release.
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Page 2 NHR earnings
| Condensed Statements of Income |
| (in thousands except share and per share amounts) | Three Months Ended March 31 |
| 2005 | 2004 | ||||
| Revenues: | |||||
| Rental income | $ | 4,307 | $ | 4,340 | |
| Mortgage interest income | 593 | 1,070 | |||
| 4,900 | 5,410 | ||||
| Expenses: | |||||
| Interest | 164 | 328 | |||
| Depreciation of real estate | 1,468 | 1,491 | |||
| Amortization of loan costs | --- | 8 | |||
| General and administrative | 266 | 189 | |||
| 1,898 | 2,016 | ||||
| Income before minority interest in consolidated | |||||
| consolidated subsidiaries and | |||||
| non-operating income | 3,002 | 3,394 | |||
| Non-operating Income (investment & | |||||
| interest income) | 123 | 102 | |||
| Minority interest in consolidated subsidiaries | (342) | (392) | |||
| Net Income | $ | 2,783 | $ | 3,104 | |
| Net income per common share: | |||||
| Basic | $ | .29 | $ | .32 | |
| Diluted | $ | .28 | $ | .32 | |
| Funds from operations: | |||||
| Basic | $ | 4,090 | $ | 4,425 | |
| Diluted | $ | 4,090 | $ | 4,425 | |
| Funds from operations per share: | |||||
| Basic | $ | .42 | $ | .46 | |
| Diluted | $ | .42 | $ | .45 | |
| Weighted average common share: | |||||
| Basic | 9,712,655 | 9,590,588 | |||
| Diluted | 9,774,491 | 9,814,093 | |||
| Common dividends declared | $ | .3325 | $ | .3325 | |
| Balance Sheet Data | March 31 | Dec. 31 | |||
| (in thousands) | 2005 | 2004 | |||
| Real estate properties, net | $ | 119,458 | $ | 120,926 | |
| Mortgages receivable | 13,457 | 13,553 | |||
| Long-term debt | 15,725 | 16,150 | |||
| Stockholders' equity | 114,205 | 113,998 | |||
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Page 3 NHR earnings
Reconciliation of Funds From Operations(1)
The following table reconciles net income applicable to common stockholders to funds from operations applicable to common stockholders:
| Three Months Ended | |
| March 31 |
| 2005 | 2004 | |||
| (in thousands) | ||||
| Net income applicable to common stockholders' | $ | 2,783 | $ | 3,104 |
| Adjustments: | ||||
| Real estate depreciation | 1,468 | 1,491 | ||
| Minority interest in NHR/OP, L.P. share of add back for | ||||
| real estate related depreciation | (161) | (170) | ||
| Funds from operations applicable to common stockholders | $ | 4,090 | $ | 4,425 |
| Basic funds from operations per share | $ | .42 | $ | .46 |
| Diluted funds from operations per share | $ | .42 | $ | .45 |
| Weighted average shares: | ||||
| Basic | 9,712,655 | 9,590,588 | ||
| Diluted | 9,774,491 | 9,814,093 |
(1)We believe that funds from operations is an important supplemental measure of operating performance. We, therefore, disclose funds from operations, although it is a measurement that is not defined by accounting principles generally accepted in the United States. We generally use the National Association of Real Estate Investment Trusts (NAREIT) measure of funds from operations. We define funds from operations as income before extraordinary items adjusted for certain non-cash items, primarily real estate depreciation, less gains/losses on sales of facilities. 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. Funds from operations does not represent cash generated from operating activities as defined by accounting principles generally accepted in the United States (funds from operations does not include changes in operating assets and liabilities) and, therefore, should not be considered as an alternative to net income as the primary indicator of operating performance or to cash flow as a measure of liquidity.
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Page 4 NHR earnings
| National Health Realty, Inc. Portfolio Summary March 31, 2005 |
| Portfolio Statistics | Investment |
| Properties | Investment | Percentage | ||||
| Equity Ownership | 23 | $ 119,458,000 | 90% | |||
| Mortgage Loan Receivables | 5 | 13,457,000 | 10% | |||
| Total Real Estate Portfolio | 28 | $ 132,915,000 | 100% | |||
| Equity Ownership | Properties | Beds | Investments |
| Nursing Homes | 16 | 1,908 | $ 72,811,000 | |||
| Assisted Living | 6 | 488 | 32,119,000 | |||
| Retirement Homes | 1 | 58 | 14,528,000 | |||
| 23 | 2,454 | $ 119,458,000 | ||||
| Mortgage Loan Receivables | Properties | Beds | Investment |
| Nursing Homes | 5 | 714 | $ 13,457,000 | |||
| Summary of Facilities By Type: |
| Percentage of | Total | |||||
| Properties | Total Dollars | Dollars | ||||
| Nursing Homes | 21 | 64.90% | $ 86,268,000 | |||
| Assisted Living | 6 | 24.17% | 32,119,000 | |||
| Retirement Homes | 1 | 10.93% | 14,528,000 | |||
| 28 | 100.00% | $ 132,915,000 | ||||
| Summary of Facilities By State: |
| Percent | ||||||
| Asst. | Retire- | Investment | Total | |||
| LTC | Living | ment | Amount | Portfolio | ||
| 1 | Florida | 8 | 3 | 59,312,000 | 44.62% | |
| 2 | Tennessee | 2 | 2 | 1 | 34,686,000 | 26.10% |
| 3 | South Carolina | 7 | 28,934,000 | 21.77% | ||
| 4 | Indiana | 3 | 3,874,000 | 2.91% | ||
| 5 | Alabama | 1 | 3,634,000 | 2.73% | ||
| 6 | Missouri | 1 | 2,475,000 | 1.86% | ||
| 21 | 6 | 1 | 132,915,000 | 100.00% |
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