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NHI Reports 12.7% Increase in First Quarter Normalized FFO

^{Published on 2010-05-10 03:45:43 - Market Wire}
 

MURFREESBORO, Tenn.--([ BUSINESS WIRE ])--National Health Investors, Inc. (NYSE:NHI) announced today its normalized Funds From Operations (aFFOa) and net income for the three months ended March31,2010.

First Quarter Highlights

• Normalized FFO improved to $0.62 per basic and diluted common share compared with $0.55 in the same period of 2009, an increase of 12.7% per share
• FFO increased 8.4% compared with the same period in 2009
• Completed real estate and mortgage loan investments totaling $104.1 million involving nine skilled nursing facilities, five assisted living facilities and one acute psychiatric hospital

Financial Results

Normalized FFO for the three months ended March 31, 2010, was $17,174,000, or $0.62 per basic and diluted common share, compared with $15,098,000, or $0.55 per basic and diluted common share, for the same period in 2009.

FFO, as defined by the National Association of Real Estate Investment Trusts (aNAREITa), for the three months ended March 31, 2010, was $18,404,000, or $0.66 per diluted common share, compared with $16,978,000, or $0.62 per basic and diluted common share, for the same period in 2009. Net income for the three months ended March 31, 2010, was $15,943,000, or $0.58 per basic and diluted common share, respectively, compared with net income of $15,049,000, or $0.55 per basic and diluted common share, respectively, for the same period in 2009.

Investment Activity

In February 2010, the Company completed the purchase of six Florida skilled nursing facilities totaling 780 beds from Care Foundation of America, Inc. for $67,000,000. The facilities are leased to affiliates of Health Services Management, Inc. for $6,200,000 annually, plus a 3% annual escalator beginning October 1, 2011. The lease expires in 2014 and the tenant has a 3-year optional renewal term.

In March 2010, the Company completed a $12,500,000 purchase/leaseback transaction involving a 66-bed acute psychiatric hospital in La Mesa, California that is leased to Helix Healthcare for a term of 15 years at an initial lease payment of $1,500,000 plus annual fixed escalators and completed a $21,400,000 purchase/leaseback transaction involving four assisted living and memory care facilities totaling 126 units in Minnesota that are leased to Suite Living Senior Specialty Services for a term of 15 years at an initial lease payment of $2,140,000 plus annual fixed escalators. The Company also made second mortgage loans of $3,200,000 secured by three skilled nursing facilities and one assisted living facility totaling 387 beds that include terms of five years and fixed interest rates from 12% to 14%.

2010 Guidance

The Company currently forecasts an increase in normalized FFO for 2010 from 15.0% to 17.2% compared with 2009. The Companya™s guidance range for the full year 2010 for EPS, FFO and Normalized FFO per share, with underlying assumptions and timing of certain transactions, is set forth and reconciled below:

Following are current assumptions reflected in the companya™s full-year 2010 guidance for the low and high end of the guidance range:

• Additional investments of $30 million in the second half of the year (assumed for both low and high end).
• Existing and future investments are funded through borrowings on the revolving credit facility (assumed for the high end).
• New debt financings of $100 million to $125 million to fund existing and future investments (assumed for the low end).
• Corporate G&A expenses of $8.4 million to $9.0 million (assumed for both low and high end).

The Companya™s guidance range reflects the existence of volatile economic conditions, but does not assume any material deterioration in tenant credit quality and/or performance of its portfolio. The guidance is based on a number of assumptions, many of which are outside the Companya™s control and all of which are subject to change. The Companya™s guidance may change if actual results vary from these assumptions.

Investor Conference Call and Webcast

NHI will host a conference call on Monday, May 10, 2010, at 10a.m.ET, to discuss first quarter results. The number to call for this interactive teleconference is (212) 271-4651 with the confirmation number, 21463761. The live broadcast of NHIa™s quarterly conference call will be available online at [ http://www.videonewswire.com/event.asp?id=67790 ] on Monday, May 10, 2010, at 10a.m.ET. The online replay will follow shortly after the call and continue for approximately 90 days.

National Health Investors, Inc. is a healthcare real estate investment trust that specializes in the financing of healthcare real estate by purchase and leaseback transactions and by mortgage loans. NHIa™s investments involve skilled nursing facilities, assisted living facilities, independent living facilities, medical office buildings, an acute psychiatric hospital and an acute care hospital. The common stock of the company trades on the New York Stock Exchange with the symbol NHI. Additional information about NHI, including its most recent press releases, may be obtained on NHIa™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 may involve risks and uncertainties and are not guarantees of future performance. All forward-looking statements represent NHIa™s judgment as of the date of this release.Investors are urged to carefully review and consider the various disclosures made by NHI in its periodic reports filed with the Securities and Exchange Commission, including the risk factors and other information disclosed in NHIa™s Annual Report on Form 10-K for the most recently ended fiscal year. Copies of these filings are available at no cost on the SEC's web site at [ http://www.sec.gov ] or on NHIa™s web site at [ http://www.nhinvestors.com ].