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NHI Reports Second Quarter Income

17:08 EDT Friday, August 08, 2008

MURFREESBORO, Tenn. (Business Wire) -- National Health Investors, Inc. (NYSE:NHI) announced net income for the three months ended June 30, 2008 of $14,793,000 or 53 cents per common share, basic and diluted, compared to net income of $14,981,000 or 54 cents per common share, basic and diluted for the same period in 2007. Net income previously reported for the three months ended June 30, 2007 included $711,000 or 3 cents per common share, basic and diluted, attributable to realty sales.

Funds from operations ("FFO") for the three months ended June 30, 2008 was $16,716,000, or 60 cents per common share, basic and diluted, compared to $17,556,000 or 63 cents per common share, basic and diluted, for the same period in 2007.

Net income for the six months ended June 30, 2008 was $28,192,000 or $1.02 basic and $1.01 diluted earnings per common share, compared to $30,462,000 or $1.10 per common share, basic and diluted, for the same period in 2007. Net income previously reported for the six months ended June 30, 2007 included $2,879,000 or 10 cents per common share, basic and diluted, attributable to recoveries of previous loan writedowns, gains from loan payoffs and gains from realty sales.

FFO for the six months ended June 30, 2008 was $32,041,000 or $1.15 per common share, basic and diluted, compared to $35,691,000 or $1.29 basic and $1.28 diluted earnings per common share for the same period in 2007.

National Health Investors, Inc. is a long-term 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 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.


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

                       Three Months Ended        Six Months Ended
                            June 30                   June 30
                    ------------------------ -------------------------
                        2008        2007         2008         2007
                    ------------ ----------- ------------ ------------
Revenues:
   Mortgage
    interest income $     2,417  $     3,322 $     4,814  $     6,493
   Rental income         13,835       12,901      26,797       25,217
                    ------------ ----------- ------------ ------------
                    $    16,252  $    16,223 $    31,611  $    31,710
                    ------------ ----------- ------------ ------------
Expenses:
   Interest expense $        80  $     2,002 $       185  $     4,010
   Depreciation           2,022        2,465       4,047        4,748
   Amortization of
    loan costs                4           34           8           68
   Legal expense            597          188         731          392
   Franchise,
    excise and
    other taxes             194          191         417          262
   General and
    administrative          343        1,589       1,790        3,210
   Loan and realty
    losses
    (recoveries)              -            -           -       (1,700)
                    ------------ ----------- ------------ ------------
                    $     3,240  $     6,469 $     7,178  $    10,990
                    ------------ ----------- ------------ ------------

Income Before Non-
 Operating Income   $    13,012  $     9,754 $    24,433  $    20,720
   Non-operating
    income
    (investment
    Interest and
    other)                1,785        3,390       3,763        7,084
                    ------------ ----------- ------------ ------------
Income From
 Continuing
 Operations         $    14,797  $    13,144 $    28,196  $    27,804
                    ------------ ----------- ------------ ------------

Discontinued
 Operations
   Income from
    operations -
    discontinued             (4)       1,168          (4)       1,989
   Net gain on
    dispositions
    and
    deconsolidation           -          669           -          669
                    ------------ ----------- ------------ ------------
                    $        (4) $     1,837 $        (4) $     2,658
                    ------------ ----------- ------------ ------------

Net income          $    14,793  $    14,981 $    28,192  $    30,462
                    ============ =========== ============ ============

Weighted average
 common shares
 outstanding:
   Basic             27,753,051   27,703,539  27,741,868   27,703,389
   Diluted           27,777,291   27,799,749  27,781,858   27,788,307

Earnings per share:
   Basic:
      Income from
       continuing
       operations   $      0.53  $      0.47 $      1.02  $      1.00
      Discontinued
       operations             -         0.07           -         0.10
                    ------------ ----------- ------------ ------------
      Net income
       available to
       common
       stockholders $      0.53  $      0.54 $      1.02  $      1.10
                    ============ =========== ============ ============

   Diluted:
      Income from
       continuing
       operations   $      0.53  $      0.47 $      1.01  $      1.00
      Discontinued
       operations             -         0.07           -         0.10
                    ------------ ----------- ------------ ------------
      Net income
       available to
       common
       stockholders $      0.53  $      0.54 $      1.01  $      1.10
                    ============ =========== ============ ============

Funds from
 operations
   Basic            $    16,716  $    17,556 $    32,041  $    35,691
   Diluted          $    16,716  $    17,556 $    32,041  $    35,691

Funds from
 operations per
 common share
   Basic            $      0.60  $      0.63 $      1.15  $      1.29
   Diluted          $      0.60  $      0.63 $      1.15  $      1.28

Dividends declared
 per common share   $      0.55  $      0.50 $      1.10  $      1.00

In accordance with Statement of Financial Accounting Standard No. 144,
 the results of operations for facilities meeting the accounting
 criteria as being 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.

Selected Balance Sheet Data
(in thousands)

                                                 June 30   December 31
                                                   2008       2007
                                                ---------- -----------
Real estate properties, net                     $  183,411 $   187,455
Mortgages receivable, net                          111,727     141,655
Preferred stock investment                          38,132      38,132
Cash and marketable securities                     136,542     131,172
Notes and bonds payable                              7,857       9,512
Stockholders' equity                               441,960     446,138

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        Six Months Ended
                             June 30                  June 30
                     ------------------------ ------------------------
                        2008         2007        2008         2007
                     ----------- ------------ ----------- ------------
Net income                14,793      14,981       28,192      30,462
Elimination of non-
 cash items in net
 income:
   Real estate
    depreciation           1,923       2,058        3,849       3,627
   Real estate
    depreciation in
    discontinued
    operations                 -       1,228            -       2,313
   Gain on sale of
    real estate-
    continuing
    operations                 -         (42)           -         (42)
   Gain on sale of
    real estate-
    discontinued
    operations                 -        (669)           -        (669)
                     ----------- ------------ ----------- ------------
Basic funds from
 operations               16,716      17,556       32,041      35,691
                     ----------- ------------ ----------- ------------

Other Adjustments              -           -            -           -
                     ----------- ------------ ----------- ------------

Diluted funds from
 operations          $    16,716 $    17,556  $    32,041 $    35,691
                     =========== ============ =========== ============

Basic funds from
 operations per
 share               $      0.60 $      0.63  $      1.15 $      1.29
Diluted funds from
 operations per
 share               $      0.60 $      0.63  $      1.15 $      1.28

Shares for basic
 funds from
 operations per
 share                27,753,051  27,703,539   27,741,868  27,703,389
Shares for diluted
 funds from
 operations per
 share                27,777,291  27,799,749   27,781,858  27,788,307

National Health Investors, Inc. Portfolio Summary June 30, 2008


Portfolio Statistics                        Investment
                               Properties   Percentage   Investments
                              ----------------------------------------
   Real Estate Properties              72          62.1% $183,411,000
   Mortgages and Notes
    Receivables                        52          37.9%  111,727,000
                              ----------------------------------------
      Total Real Estate
       Portfolio                      124         100.0% $295,138,000


Real Estate Properties         Properties      Beds      Investments
                              ----------------------------------------
Long term Care Centers                 49         6,835  $102,984,000
   Assisted Living Facilities          14         1,133    56,934,000
   Medical Office Buildings             4 124,427 sq.ft.    9,344,000
   Independent Living
    Facilities                          4           458     7,710,000
   Hospitals                            1            55     6,439,000
                              ----------------------------------------
      Total Real Estate
       Properties                      72                $183,411,000
                              -----------                -------------


Mortgages and Notes
 Receivables                   Properties      Beds      Investments
                              ----------------------------------------
   Long term Care Centers              34         3,581  $107,196,000
   Developmentally Disabled            17           108     3,852,000
   Assisted Living Facilities           1            78       679,000
                              ----------------------------------------
      Total Mortgages and
       Notes Receivable                52                $111,727,000
                              -----------                -------------
         Total Real Estate
          Portfolio                   124                $295,138,000
                              ===========                =============


Summary of Facilities by                  Percentage of     Total
 Type:                         Properties Total Dollars    Dollars
                              ----------------------------------------
   Long term Care Centers              83          71.2% $210,180,000
   Assisted Living Facilities          15          19.5%   57,613,000
   Medical Office Buildings             4           3.2%    9,344,000
   Independent Living
    Facilities                          4           2.6%    7,710,000
   Hospitals                            1           2.2%    6,439,000
   Developmentally Disabled            17           1.3%    3,852,000
                              ----------------------------------------
      Total Real Estate
       Portfolio                      124         100.0% $295,138,000
                              ========================================


Portfolio by Operator Type        # of    Percentage of     Total
                               Properties Total Dollars    Dollars
                              ----------------------------------------
   Regional                            46          54.6% $161,174,000
   Public                              66          32.4%   95,540,000
   Small Operator                      12          13.0%   38,424,000
                              ----------------------------------------
                                      124         100.0% $295,138,000
                              ========================================

Public Operators                                            Percentage
                                                  Dollar     Of Total
                                                  Amount    Portfolio
                                                ----------- ----------
   National HealthCare Corp.                    $59,124,000      20.0%
   Sunrise Senior Living Services                12,441,000       4.2%
   Community Health Systems, Inc.                12,040,000       4.1%
   Sun Healthcare                                 8,083,000       2.7%
   Res-Care, Inc.                                 3,852,000       1.3%
                                                ----------- ----------
      Total Public Operators                    $95,540,000      32.4%
                                                =========== ==========

 National Health Investors, Inc. Summary of Facilities by State June
                               30, 2008


                                   Acute       Dev.   Asst.   Retire-
                              LTC  Care   MOB Disab.  Living   ment
                             -----------------------------------------
Florida                        11           1     14       4
Texas                           8           2
Tennessee                      20                  3       3        2
Missouri                        8                                   1
Virginia                        8
Arizona                         1                          4
Kansas                          6
Massachusetts                   4
New Jersey                                                 1
Georgia                         6
New Hampshire                   3                          1
Kentucky                        2      1
South Carolina                  3                          1
Idaho                           1                                   1
Pennsylvania                                               1
Alabama                         2
Illinois                                    1
                             -----------------------------------------
                               83      1    4     17      15        4
                             =========================================

                                                             Percent
                                               Investment     Total
                                       Total     Amount     Portfolio
                                      --------------------------------
Florida                                   30  $ 74,151,000      25.1%
Texas                                     10    48,081,000      16.3%
Tennessee                                 28    26,800,000       9.1%
Missouri                                   9    20,877,000       7.1%
Virginia                                   8    19,431,000       6.6%
Arizona                                    5    17,152,000       5.8%
Kansas                                     6    15,706,000       5.3%
Massachusetts                              4    15,222,000       5.2%
New Jersey                                 1    12,441,000       4.2%
Georgia                                    6     9,595,000       3.3%
New Hampshire                              4     9,242,000       3.1%
Kentucky                                   3     7,338,000       2.5%
South Carolina                             4     6,763,000       2.3%
Idaho                                      2     4,917,000       1.7%
Pennsylvania                               1     4,119,000       1.4%
Alabama                                    2     1,911,000       0.6%
Illinois                                   1     1,392,000       0.5%
                                      --------------------------------
                                         124  $295,138,000     100.0%
                                      ================================

National Health Investors, Inc.
Roger R. Hopkins, 615-890-9100
Chief Accounting Officer

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