| 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): November 1, 2005 (October 31, 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 October 31, 2005, National Health Realty, Inc. issued a press release announcing its third quarter earnings. 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: November 1, 2005 |
Exhibit Index
| Number | Exhibit |
| 99 | Press release, dated October 31, 2005 |
EXHIBIT 99
For Release October 31, 2005
Contact: Gerald Coggin, Sr., VP Corporate Relations
Phone: (615) 890-2020 ext. 1405
NHR reports third quarter results
MURFREESBORO, Tenn. -- National Health Realty, Inc., (AMEX: NHR) a real estate investment trust specializing in long-term health care investments, announced funds from operations for the quarter ended Sept. 30, 2005 of $4,108,000 or 42 cents basic and 42 cents diluted compared to $4,148,000 or 43 cents basic and 42 cents diluted, last year.
For the quarter ended Sept. 30, 2005, net income was $2,805,000 or 28 cents basic and 28 cents diluted, compared to $2,825,000 or 29 cents basic and 29 cents diluted, last year. Revenues for the quarter totaled $4,948,000 compared to $4,892,000 in 2004.
For the nine months ended Sept. 30, 2005, net income was $8,416,000 compared to $8,499,000 for the same period last year. Net income per share was 86 cents basic and 85 cents diluted compared to 89 cents basic and 87 cents diluted last year. Funds from operations per share were $1.25 basic and $1.25 diluted compared to $1.30 basic and $1.27 diluted in 2004. Revenues for the nine months totaled $14,786,000 compared to $15,188,000 in the prior year.
Revenues, net income and funds from operations reflect stable operations and were in line with the management expectations.
NHR owns the real property of 16 skilled nursing facilities, six assisted living centers and one retirement center. Additional information including NHR's most recent press releases may be obtained on NHR's web site atwww.nationalhealthrealty.com. 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 | Three Months Ended Sept. 30 | Nine Months Ended Sept. 30 |
| 2005 | 2004 | 2005 | 2004 | |||||||
| Revenues: | ||||||||||
| Rental income | $ | 4,339 | $ | 4,305 | $ | 12,984 | $ | 12.950 | ||
| Mortgage interest income | 609 | 587 | 1,802 | 2,238 | ||||||
| 4,948 | 4,892 | 14,786 | 15,188 | |||||||
| Expenses: | ||||||||||
| Interest | 195 | 131 | 539 | 631 | ||||||
| Depreciation of real estate | 1,468 | 1,491 | 4,404 | 4,474 | ||||||
| Amortization of loan and | --- | --- | --- | 8 | ||||||
| General and administrative | 297 | 194 | 817 | 813 | ||||||
| 1,960 | 1,816 | 5,760 | 5,926 | |||||||
| Income before minority interest in | ||||||||||
| Subsidiaries and non-operating | 2,988 | 3,076 | 9,026 | 9,262 | ||||||
| Non-operating Income (investment and | ||||||||||
| interest income) | 156 | 106 | 417 | 311 | ||||||
| Minority interest in consolidated | (339) | (357) | (1,027) | (1,074) | ||||||
| Net Income | $ | 2,805 | $ | 2,825 | $ | 8,416 | $ | 8,499 | ||
| Net income per common share: | ||||||||||
| Basic | $ | .28 | $ | .29 | $ | .86 | $ | .89 | ||
| Diluted | $ | .28 | $ | .29 | $ | .85 | $ | .87 | ||
| Funds from operations | ||||||||||
| Basic | $ | 4,108 | $ | 4,148 | $ | 12,325 | $ | 12,470 | ||
| Diluted | $ | 4,108 | $ | 4,148 | $ | 12,325 | $ | 12,470 | ||
| Funds from operations per share | ||||||||||
| Basic | $ | .42 | $ | .43 | $ | 1.25 | $ | 1.30 | ||
| Diluted | $ | .42 | $ | .42 | $ | 1.25 | $ | 1.27 | ||
| Weighted average common shares | ||||||||||
| Basic | 9,885,231 | 9,595,588 | 9,824,517 | 9,593,471 | ||||||
| Diluted | 9,892,227 | 9,817,726 | 9,859,813 | 9,808,542 | ||||||
| Common dividends declared | $ | .3325 | $ | .3325 | $ | .9975 | $ | .9975 | ||
| Balance Sheet Data | Sept. 30 | Dec. 31 | ||||||||
| (in thousands) | 2005 | 2004 | ||||||||
| Real estate properties, net | $ | 116,522 | $ | 120,926 | ||||||
| Mortgages receivable | 13,336 | 13,553 | ||||||||
| Long-term debt | 14,875 | 16,150 | ||||||||
| Stockholder's equity | $ | 114,199 | $ | 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 | Nine Months Ended | |
| Sept. 30 | Sept. 30 |
| (in thousands) | 2005 | 2004 | 2005 | 2004 |
| Net income applicable to common stockholder's | $ | 2,805 | $ | 2,825 | $ | 8,416 | $ | 8,499 |
| Adjustments: | ||||||||
| Real estate depreciation | 1,468 | 1,491 | 4,404 | 4,474 | ||||
| Adjustment for minority interest-affiliates | (165) | (168) | (495) | (503) | ||||
| Funds from operations applicable to common stockholders | $ | 4,108 | $ | 4,148 | $ | 12,325 | $ | 12,470 |
| Basic funds from operations per share | $ | .42 | $ | .43 | $ | 1.25 | $ | 1.30 |
| Diluted funds from operations per share | $ | .42 | $ | .42 | $ | 1.25 | $ | 1.27 |
| Weighted average shares: |
| Basic | 9,885,231 | 9,595,588 | 9,824,517 | 9,593,471 |
| Diluted | 9,892,227 | 9,817,726 | 9,859,813 | 9,808,542 |
(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 | September 30, 2005 | |
| Portfolio Statistics | |||
| Investment | |||
| Properties | Investment | Percentage | |
| Equity Ownership | 23 | $116,522,000 | 90% |
| Mortgage Loan Receivable | 5 | 13,336,000 | 10% |
| Total Real Estate Portfolio | 28 | $129,858,000 | 100% |
| Equity Ownership | Properties | Beds | Investments |
| Nursing Homes | 16 | 1,908 | $70,924,000 |
| Assisted Living | 6 | 488 | 31,262,000 |
| Retirement Homes | 1 | 58 | 14,336,000 |
| 23 | 2,454 | $116,522,000 | |
| Mortgage Loan Receivables | Properties | Beds | Investment |
| Nursing Homes | 5 | 714 | $13,336,000 |
| Summary of Facilities By Type: | |||
| Properties | Percentage of Total Dollars | Total Dollars | |
| Nursing Homes | 21 | 64.89% | $84,260,000 |
| Assisted Living | 6 | 24.07% | 31,262,000 |
| Retirement Homes | 1 | 11.04% | 14,336,000 |
| 28 | 100.00% | $129,858,000 | |
| SUMMARY OF FACILITIES BY STATE: | |||||
| Percent | |||||
| Assisted | Investment | Total | |||
| LTC | Living | Retirement | Amount | Portfolio | |
| Florida | 8 | 3 | $57,813,000 | 44.52% | |
| Tennessee | 2 | 2 | 1 | 34,067,000 | 26.23% |
| South Carolina | 7 | 28,213,000 | 21.73% | ||
| Indiana | 3 | 3,875,000 | 2.98% | ||
| Alabama | 1 | 3,501,000 | 2.70% | ||
| Missouri | 1 | 2,389,000 | 1.84% | ||
| 21 | 6 | 1 | $129,858,000 | 100.0% | |
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