National Health Investors 8K NHI reports third quarter income | NHI 7 Nov 07

EXHIBIT 99

For Release: November 6, 2007

Contact: Kenneth D. DenBesten, SVP-Finance

Phone: (615) 890-9100

NHI reports third quarter income

MURFREESBORO, Tenn. -- National Health Investors, Inc., (NYSE: NHI) announced net income for the third quarter ended September 30, 2007 of $36,538,000 or $1.32 per basic and $1.31 per diluted share of common stock, compared to $13,379,000 or 48 cents per basic and diluted share for the same period in 2006. Income for the third quarter of 2007 included $21,300,000 or 77 cents per basic and diluted share, attributable to recoveries of amounts previously written down related to a loan payoff. Adjusting for the above-mentioned item, net income for the third quarter ended September 30, 2007 would have been $15,238,000 or 55 cents per basic and diluted share, compared to $13,379,000 or 48 cents per basic and diluted share for the same period in 2006, an increase of 13.9% and 14.6%, respectively.

Funds from operations (“FFO”) basic and diluted for the third quarter ended September 30, 2007 was $39,486,000 or $1.43 per basic and $1.42 per diluted share, compared to $16,034,000 or 58 cents per basic and diluted share for the same period in 2006. Adjusting for the recovery of the previous loan writedown described above, FFO for the third quarter ended September 30, 2007 would have been $18,186,000 or 66 cents per basic and 65 cents per diluted share, compared to $16,034,000 or 58 cents per basic and diluted share for the same period in 2006, an increase of 13.4%, 13.8%, and 12.1%, respectively.

During the third quarter ended September 30, 2007, NHI paid off its $100 million unsecured public notes at maturity. Lower interest expense on the notes and lower interest income on the Company’s bank deposits combined to increase net income and FFO by $480,000 or 2 cents per basic and diluted share.

Net income for the nine months ended September 30, 2007 was $67,000,000 or $2.42 per basic share and $2.41 per diluted share, compared to $45,779,000 or $1.65 per basic and diluted share for the same period in 2006. Income for the nine months ended September 30, 2007 included $24,179,000 or 87 cents per basic and diluted share attributable to recovery amounts previously written down related to loan payoffs, gains from realty sales, and a gain from a note collection. Income for the nine months ended September 30, 2006 included $6,109,000 or 22 cents per basic and diluted share attributable to gains from realty sales and mortgage prepayment penalties. Adjusting for the above-mentioned items, net income for the nine months ended September 30, 2007 would have been $42,821,000 or $1.55 cents per basic and $1.54 per

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Page 2 NHI’s Third Quarter 2007 Results

diluted share compared to $39,670,000 or $1.43 per basic and diluted share for the same period in 2006, an increase of 7.9%, 8.4%, and 7.7%, respectively.

For the nine months ended September 30, 2007, FFO was $75,177,000 or $2.71 per basic and $2.70 per diluted share, compared to $48,028,000 or $1.73 per basic and diluted share for the same period in 2006. Adjusting for the recovery of previous loan writedowns, mortgage prepayment penalties, and a gain from a note collection, FFO for the nine months ended September 30, 2007 would have been $51,709,000 or $1.87 per basic and $1.86 per diluted share compared to $47,733,000 or $1.72 per basic and diluted share for the same period in 2006, an increase of 8.3%, 8.7%, and 8.1%, respectively,

NHI 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 our web site atwww.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 3 NHI’s Third Quarter 2007 Results


Condensed Statements of Income
(in thousands, except share and per share amounts)

			Three Months Ended		Nine Months Ended
			September 30		September 30
			2007	2006	2007	2006
Revenues:
	Mortgage interest income		$ 2,599	$ 3,380	$ 9,092	$ 11,246
	Rental income		12,989	11,377	38,207	34,564
	Facility operating revenues		23,493	22,454	69,012	65,950
			$ 39,081	$ 37,211	$ 116,311	$ 111,760
Expenses:
	Interest expense		$ 465	$ 2,034	$ 4,478	$ 6,104
	Depreciation		3,157	2,914	9,587	8,750
	Amortization of loan costs		3	34	70	101
	Legal expense		161	166	553	392
	Franchise, excise and other taxes		68	53	330	187
	General and administrative		1,227	1,159	4,437	3,476
	Loan and realty losses (recoveries)		(21,300)	-	(23,000)	-
	Facility operating expenses		21,482	20,628	64,008	61,601
			$ 5,263	$ 26,988	$ 60,463	$ 80,611

Income Before Non-Operating Income			$ 33,818	$ 10,223	$ 55,848	$ 31,149
	Non-operating income (investment Interest and other)		2,720	3,170	9,803	8,394
Income From Continuing Operations			$ 36,538	$ 13,393	$ 65,651	$ 39,543

Discontinued Operations
	Operating income-discontinued operations		-	(14)	680	422
	Net gain on sales of real estate		-	-	669	5,814
			$ -	$ (14)	$ 1,349	$ 6,236

Net income			$ 36,538	$ 13,379	$ 67,000	$ 45,779

Weighted average common shares outstanding:
	Basic		27,703,539	27,699,239	27,703,439	27,760,247
	Diluted		27,786,198	27,723,570	27,787,604	27,778,983

Earnings per share:
	Basic:
		Income from continuing operations	$ 1.32	$ 0.48	$ 2.37	$ 1.42
		Discontinued operations	-	-	0.05	0.23
		Net income available to common stockholders	1.32	0.48	2.42	1.65

	Diluted:
		Income from continuing operations	$ 1.31	$ 0.48	$ 2.36	$ 1.42
		Discontinued operations	-	-	0.05	0.23
		Net income available to common stockholders	1.31	0.48	2.41	1.65

Funds from operations
	Basic		$ 39,486	$ 16,034	$ 75,177	$ 48,028
	Diluted		$ 39,486	$ 16,034	$ 75,177	$ 48,028

Funds from operations per common share
	Basic		$ 1.43	$ 0.58	$ 2.71	$ 1.73
	Diluted		$ 1.42	$ 0.58	$ 2.70	$ 1.73

Dividends declared per common share			$ 0.50	$ 0.48	$ 1.50	$ 1.44

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Page 4 NHI’s Third Quarter 2007 Results


Selected Balance Sheet Data
(in thousands)
	September 30	December 31
	2007	2006
Real estate properties, net	$ 226,538	$ 235,199
Mortgages receivable, net	76,460	99,532
Preferred stock investment	38,132	38,132
Cash and marketable securities	137,371	203,278
Debt	10,966	113,492
Stockholders' equity	454,566	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		Nine Months Ended
		September 30		September 30
		2007	2006	2007	2006
Net income		36,538	13,379	67,000	45,779
Elimination of non-cash items in net income:
	Real estate depreciation	2,948	2,641	8,871	7,840
	Real estate depreciation in discontinued operations	-	14	17	223
	Gain on sale of real estate-continuing operations	-	-	(42)	-
	Gain on sale of real estate-discontinued operations	-	-	(669)	(5,814)
Basic funds from operations		39,486	16,034	75,177	48,028

Other Adjustments		-	-	-	-

Diluted funds from operations		$ 39,486	$ 16,034	$ 75,177	$ 48,028

Basic funds from operations per share		$ 1.43	$ 0.58	$ 2.71	$ 1.73
Diluted funds from operations per share		$ 1.42	$ 0.58	$ 2.70	$ 1.73

Shares for basic funds from operations per share		27,703,539	27,699,239	27,703,439	27,760,247
Shares for diluted funds from operations per share		27,786,198	27,723,570	27,787,604	27,778,983

	⁽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 informati ve, 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 av ailable 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 5 NHI’s Third Quarter 2007 Results


National Health Investors, Inc. Portfolio Summary September 30, 2007

Portfolio Statistics			Investment
		Properties	Percentage	Investment
	Real Estate Properties	89	76.7%	$ 226,538,000
	Mortgages and Notes Receivables	36	23.3%	68,985,000
	Total Real Estate Portfolio	125	100%	$ 295,523,000
		��
	Other Notes Receivables	0		7,475,000
	Total Portfolio	125		$ 302,998,000

Real Estate Properties		Properties	Beds	Investments
	Nursing Homes	65	8,364	$ 142,723,000
	Assisted Living	14	1,161	58,176,000
	Medical Office Buildings	4	124,427 sq.ft.	9,664,000
	Retirement Homes	5	534	9,315,000
	Hospitals	1	55	6,660,000
	Total Real Estate Properties	89		$ 226,538,000

Mortgages and Notes Receivables		Properties	Beds	Investments
	Nursing Homes	19	2,049	$ 64,989,000
	Developmentally Disabled	17	108	3,996,000
	Total Mortgages and Notes Receivable	36	2,157	$ 68,985,000
	Total Real Estate Portfolio	125		$ 295,523,000


Summary of Facilities by Type:
			Percentage of	Total
		Properties	Total Dollars	Dollars
	Nursing Homes	84	70.3%	$ 207,712,000
	Assisted Living	14	19.7%	58,176,000
	Medical Office Buildings	4	3.3%	9,664,000
	Hospitals	1	2.3%	6,660,000
	Retirement Homes	5	3.2%	9,315,000
	Developmentally Disabled	17	1.4%	3,996,000
	Total Real Estate Portfolio	125	100.0%	$ 295,523,000

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Page 6 NHI’s Third Quarter 2007 Results


Portfolio by Operator Type
		# of	Percentage of	Total
		Properties	Total Dollars	Dollars
	Regional	50	58.42%	$ 172,633,000
	Public	62	28.32%	83,684,000
	Small Operator	13	13.27%	39,206,000
		125	100.00%	$ 295,523,000


Public Operators			Percentage
		Dollar	Of Total
		Amount	Portfolio
	National HealthCare Corp.	$ 42,370,000	14.34%
	Sunrise Senior Living Services	12,682,000	4.29%
	Community Health Systems, Inc.	12,442,000	4.21%
	Sun Healthcare	8,312,000	2.81%
	Res-Care, Inc.	3,996,000	1.35%
	HCA-The Healthcare Company	3,882,000	1.31%
	Total Public Operators	$ 83,684,000	28.32%


National Health Investors, Inc. Summary of Facilities by State September 30, 2007

									Percent
		Acute		Dev.	Asst.	Retire-		Investment	Total
	LTC	Care	MOB	Disab.	Living	ment	Total	Amount	Portfolio
Florida	11		1	14	4		30	$ 78,926,000	26.7%
Texas	8		2				10	49,342,000	16.7%
Tennessee	20			3	3	2	28	27,954,000	9.5%
Virginia	8						8	19,655,000	6.7%
Missouri	8					1	9	18,290,000	6.2%
Arizona	1				4		5	17,553,000	5.9%
New Hampshire	3					1	4	13,121,000	4.4%
New Jersey	0				1		1	12,682,000	4.3%
Kansas	7						7	11,193,000	3.8%
Georgia	6						6	9,820,000	3.3%
Massachusetts	4						4	9,661,000	3.3%
Kentucky	2	1					3	7,622,000	2.6%
South Carolina	3				1		4	7,041,000	2.4%
Idaho	1					1	2	5,050,000	1.7%
Pennsylvania	0				1		1	4,193,000	1.4%
Alabama	2						2	1,987,000	0.7%
Illinois	0		1				1	1,433,000	0.5%
	84	1	4	17	14	5	125	$ 295,523,000	100%

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National Health Investors (NHI) 8-KNHI reports third quarter income