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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