For Release:  February 14, 2005

Contact:  Gerald Coggin, Senior VP of Corporate Relations

Phone:  (615) 890-9100

 

 

NHI reports 2004 year end results

 

            MURFREESBORO, Tenn. –National Health Investors, Inc., (NYSE:NHI) announced income from continuing operations for the year ended December 31, 2004 of $55,082,000 or $2.00 per basic and $1.99 per diluted share of common stock compared to $43,290,000, or $1.56 per basic and $1.55 per diluted share of common stock for 2003.

            Net income for the year ended December 31, 2004 was $56,379,000 or $2.05 per common share, basic and $2.03 per common share, diluted, compared to net income of $43,808,000 or $1.58 per common share, basic and $1.57 per common share, diluted for 2003. 

            Funds from operations (“FFO”) for the year ended December 31, 2004 was $66,502,000, or $2.44 per basic and $66,622,000, or $2.42 per diluted share of common stock compared to $53,110,000, or $1.99 per basic and $53,259,000, or $1.97 per diluted share in 2003.

            Income from continuing operations for the fourth quarter ended December 31, 2004 was $18,597,000, or 68 cents per basic and 67 cents per diluted share of common stock compared to $9,846,000, or 35 cents per basic and diluted share of common stock for the same period in 2003.

            Net income for the fourth quarter ended December 31, 2004 was $18,951,000 or 69 cents per common share, basic and 68 cents per common share, diluted, compared to net income of $9,817,000 or 35 cents per basic and diluted share of common stock for the same period in 2003.

            For the fourth quarter ended December 31, 2004, FFO was $21,878,000 or 80 cents per basic and $21,907,000 or 79 cents per diluted share of common stock compared to $12,495,000 or 47 cents per basic and $12,529,000 or 46 cents per diluted share for the same period in 2003.

            Net income for the year was positively impacted by recoveries of prior year writedowns, net gains on the sales of real estate, income from the early payoff of loans and improved profitability of operated facilities.  Our balance sheet continues to be one of the strongest in the industry with cash and marketable securities exceeding total debt by $34.7 million.

            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 Dec. 31

 

Year Ended December 31

 

 

2004

 

 

2003

 

2004

 

 

2003

Revenues:

 

 

 

 

 

 

 

 

 

 

     Mortgage interest income

$

4,166

 

$

6,151

$

18,116

 

$

21,046

     Rental income

 

11,519

 

 

11,840

 

48,004

 

 

55,863

     Facility operating revenues

 

26,429

 

 

20,335

 

89,439

 

 

79,272

 

$

42,114

 

$

38,326

$

155,559

 

$

156,181

Expenses:

 

 

 

 

 

 

 

 

 

 

     Interest expense

$

3,131

 

$

3,239

$

12,439

 

$

13,840

     Depreciation

 

3,912

 

 

3,777

 

14,385

 

 

15,007

     Amortization of loan costs

 

37

 

 

37

 

148

 

 

297

     Legal expense

 

177

 

 

286

 

1,292

 

 

729

     Franchise and excise taxes

 

69

 

 

20

 

284

 

 

548

     General and administrative

 

619

 

 

1,021

 

3,492

 

 

3,135

     Loan, remic, realty, and security

 

 

 

 

 

 

 

 

 

 

          losses (recoveries)

 

(2,000)

 

 

2,234

 

(2,896)

 

 

9,134

     Facility operating expenses

 

22,745

 

 

19,210

 

83,027

 

 

76,132

 

$

28,690

 

$

29,824

$

112,171

 

$

118,822

 

 

 

 

 

 

 

 

 

 

 

Income Before Non-Operating Income

$

13,424

 

$

8,502

$

43,388

 

$

37,359

     Non-operating income (investment

 

 

 

 

 

 

 

 

 

 

          Interest and other)

 

5,173

 

 

1,344

 

11,694

 

 

5,931

Income From Continuing Operations

$

18,597

 

$

9,846

$

55,082

 

$

43,290

 

 

 

 

 

 

 

 

 

 

 

Discontinued operations

 

 

 

 

 

 

 

 

 

 

     Operating (loss) income-discontinued

 

63

 

 

(29)

 

(246)

 

 

(1,017)

     Net gain on sales of real estate

 

291

 

 

---

 

1,543

 

 

1,535

 

$

354

 

$

(29)

$

1,297

 

$

518

 

 

 

 

 

 

 

 

 

 

 

Net income

$

18,951

 

$

9,817

$

56,379

 

$

43,808

Dividends to preferred stockholders

 

---

 

 

397

 

514

 

 

1,589

Net income applicable to common stock

$

18,951

 

$

9,420

$

55,865

 

$

42,219

 

 

 

 

 

 

 

 

 

 

 

Income from continuing operations per common share:

 

 

 

 

 

 

     Basic

$

.68

 

$

.35

$

2.00

 

$

1.56

     Diluted

$

.67

 

$

.35

$

1.99

 

$

1.55