Exhibit 99
For Release: August 7, 2009
Contact: Roger R Hopkins, Chief Accounting Officer
Phone: (615) 890-9100
NHI reports second quarter results
MURFREESBORO, Tenn. - National Health Investors, Inc. (NYSE:NHI) announced today its funds from operations (“FFO”) and net income for the three and six months ended June 30, 2009.
Second Quarter Highlights:
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FFO increased from $16,716,000 to $17,326,000 or 3.7% compared to the same period in 2008
·
Net income increased from $14,793,000 to $15,415,000 or 4.2% compared to the same period in 2008
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Invested $43.7 million in three skilled nursing facilities and a mortgage note receivable and committed to purchase a fourth skilled nursing facility in August 2009 for $15.8 million
FFO for the three months ended June 30, 2009 was $17,326,000 or $0.63 per basic and diluted common share compared to $16,716,000 or $0.60 per basic and diluted common share for the same period in 2008 an increase of 3.7%. Net income for the three months ended June 30, 2009 was $15,415,000 or $0.55 per basic and diluted common share compared to net income of $14,793,000 or $0.53 per basic and diluted common share for the same period in 2008, an increase of 4.2%.
During the second quarter, NHI invested $39.8 million in the purchase of three skilled nursing facilities in Texas and committed to purchase a fourth facility for $15.8 million in August 2009, which it has done. NHI also invested $3.9 million in a discounted mortgage note receivable.
FFO for the six months ended June 30, 2009 was $34,304,000 or $1.24 per basic and diluted common share compared to $32,041,000 or $1.15 per basic and diluted common share for the same period in 2008, an increase of 7.1%. Net income for the six months ended June 30, 2009 was $30,464,000 or $1.10 per basic and diluted common share, compared to $28,192,000 or $1.02 per basic and $1.01 per diluted common share for the same period in 2008, an increase of 8.1%.
National Health Investors, Inc. is a real estate investment trust (REIT) 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 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 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.
-more-
Page 2 NHI’s Second Quarter 2009 Results
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Condensed Statements of Income |
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(in thousands, except share and per share amounts) |
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| Three months ended |
| Six months ended |
| June 30, 2009 |
| June 30, 2008 |
| June 30, 2009 |
| June 30, 2008 |
Revenues: |
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Rental income | $ 13,487 |
| $ 13,835 |
| $ 27,516 |
| $ 26,797 |
Mortgage interest income | 2,590 |
| 2,417 |
| 4,503 |
| 4,814 |
| 16,077 |
| 16,252 |
| 32,019 |
| 31,611 |
Expenses: |
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Interest expense | 24 |
| 80 |
| 62 |
| 185 |
Depreciation | 1,942 |
| 2,004 |
| 3,892 |
| 4,011 |
Amortization of loan costs | 4 |
| 4 |
| 8 |
| 8 |
Legal expense | 485 |
| 597 |
| 936 |
| 731 |
Franchise, excise and other taxes | 139 |
| 194 |
| 414 |
| 417 |
General and administrative | 1,257 |
| 341 |
| 2,845 |
| 1,788 |
Loan and realty losses (recoveries) | - |
| - |
| (640) |
| - |
| 3,851 |
| 3,220 |
| 7,517 |
| 7,140 |
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Income Before Non-Operating Income | 12,226 |
| 13,032 |
| 24,502 |
| 24,471 |
Non-operating income (investment interest and other) | 1,700 |
| 1,785 |
| 3,872 |
| 3,763 |
Income From Continuing Operations | 13,926 |
| 14,817 |
| 29,016 |
| 28,234 |
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Discontinued Operations |
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Income from operations - discontinued | 1,489 |
| (24) |
| 2,090 |
| (42) |
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Net income | $ 15,415 |
| $ 14,793 |
| $ 30,464 |
| $ 28,192 |
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Weighted average common shares outstanding: |
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Basic | 27,578,000 |
| 27,753,051 |
| 27,576,272 |
| 27,741,868 |
Diluted | 27,592,050 |
| 27,777,291 |
| 27,587,139 |
| 27,781,858 |
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Earnings per share: |
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Basic: |
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Income from continuing operations | $ 0.50 |
| $ 0.53 |
| $ 1.03 |
| $ 1.02 |
Discontinued operations | 0.05 |
| - |
| 0.07 |
| - |
Net income available to common stockholders | $ 0.55 |
| $ 0.53 |
| $ 1.10 |
| $ 1.02 |
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Diluted: |
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Income from continuing operations | $ 0.50 |
| $ 0.53 |
| $ 1.03 |
| $ 1.01 |
Discontinued operations | 0.05 |
| - |
| 0.07 |
| - |
Net income available to common stockholders | $ 0.55 |
| $ 0.53 |
| $ 1.10 |
| $ 1.01 |
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Funds from operations | $ 17,326 |
| $ 16,716 |
| $ 34,304 |
| $ 32,041 |
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Funds from operations per common share |
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Basic | $ 0.63 |
| $ 0.60 |
| $ 1.24 |
| $ 1.15 |
Diluted | $ 0.63 |
| $ 0.60 |
| $ 1.24 |
| $ 1.15 |
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Quarterly dividend declared per common share | $ 0.55 |
| $ 0.55 |
| $ 1.10 |
| $ 1.10 |
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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. |
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Reconciliation of Funds From Operations(1)(2) |
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The following table reconciles net income to funds from operations available to common stockholders: |
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(in thousands, except share and per share amounts) |
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| Three months ended |
| Six months ended |
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| June 30, 2009 |
| June 30, 2008 |
| June 30, 2009 |
| June 30, 2008 |
Net income | $ 15,415 |
| $ 14,793 |
| $ 30,464 |
| $ 28,192 |
Elimination of non-cash items in net income: |
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| Real estate depreciation | 1,911 |
| 1,910 |
| 3,840 |
| 3,823 |
| Real estate depreciation in discontinued operations | - |
| 13 |
| - |
| 26 |
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Funds from operations | $ 17,326 |
| $ 16,716 |
| $ 34,304 |
| $ 32,041 |
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Basic funds from operations per share | $ 0.63 |
| $ 0.60 |
| $ 1.24 |
| $ 1.15 |
Diluted funds from operations per share | $ 0.63 |
| $ 0.60 |
| $ 1.24 |
| $ 1.15 |
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Shares for basic funds from operations per share | 27,578,000 |
| 27,753,051 |
| 27,576,272 |
| 27,741,868 |
Shares for diluted funds from operations per share | 27,592,050 |
| 27,777,291 |
| 27,587,139 |
| 27,781,858 |
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| (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. & nbsp;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. FFO 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. |
