For Release:  May 2nd, 2005

Contact:  Gerald Coggin, Senior VP of Corporate Relations

Phone:  (615) 890-9100

 

NHI reports first quarter income

 

MURFREESBORO, Tenn. -- National Health Investors, Inc., (NYSE: NHI) announced income from continuing operations for the first quarter ended March 31, 2005 of $16,127,000 or 58 cents per basic and diluted share of common stock compared to $13,618,000 or 49 cents per basic and diluted share of common stock for the same period in 2004. 

            Funds from operations, (“FFO”) from continuing operations for the first quarter ended March 31, 2005 was $18,902,000 or 69 cents per basic and $18,930,000, or 68 cents per diluted share of common stock compared to $16,406,000 or 61 cents per basic and $16,438,000 or 59 cents per diluted share of common stock in 2004. 

Income and FFO from continuing operations for the first quarter of 2005 includes $4,522,000 or 16 cents per basic and diluted share of common stock related to non-recurring income.  This non-recurring income is attributable to security sale recoveries and gains of $9,072,000, less impairment writedowns of $4,550,000 on realty and mortgage notes receivable. 

Income and FFO from continuing operations for the first quarter of 2004 included $2,657,000 or 10 cents per basic and diluted share of common stock related to non-recurring income attributable to security sale recoveries and gains and loan recoveries.

Accomplishments during the first quarter included:  the investment of approximately $27,500,000 in mortgages receivable and real property; the repayment of approximately $34,500,000 of debt; improved liquidity as a result of cash and marketable securities of $142,685,000 exceeding total debt outstanding of $121,010,000 and; a debt to capitalization ratio of 22.3%, the lowest in our 13 year history. 

NHI 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 our 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 March 31

 

 

Revenues:

 

2005

 

2004

 

 

            Mortgage interest income

$

3,907

$

4,851

 

 

            Rental income

 

11,538

 

12,120

 

 

            Facility operating revenue

 

22,629

 

20,400

 

 

 

 

38,074

 

37,371

 

 

Expenses:

 

 

 

 

 

 

            Interest

 

2,470

 

3,120

 

 

            Depreciation

 

3,149

 

3,441

 

 

            Amortization of loan costs

 

72

 

37

 

 

      Legal expense

 

147

 

149

 

 

      Franchise and excise tax

 

67

 

70

 

 

            General and administrative

 

1,103

 

856

 

 

            Loan,realty & security losses (recoveries),net

 

(472)

 

(1,989)

 

 

            Facility operating expense

 

21,365

 

20,202

 

 

 

 

27,901

 

25,886

 

 

Income Before Non-Operating Income

 

10,173

 

11,485

 

 

Non-operating income (investment interest & other)

 

5,954

 

2,133

 

 

Income From Continuing Operations

 

16,127

 

13,618

 

 

Discontinued Operations:

 

 

 

 

 

 

     Operating Loss – discontinued

 

(81)

 

(183)

 

 

     Gain on sale of real estate

 

  748

 

---

 

 

 

 

667

 

(183)

 

 

Net Income

 

16,794

 

13,435

 

 

Dividends to preferred stockholders

 

---

 

397

 

 

Net income applicable to common stock

$

16,794

$

13,038

 

 

 

 

 

 

 

 

 

Income from continuing operations per common share:

 

 

 

 

 

         Basic

$

.58

$

.49

 

 

         Diluted

$

.58

$

.49

 

 

Discontinued operations per common share:

 

 

 

 

 

 

         Basic

$

.03

$

---

 

 

         Diluted

$

.03

$

(.01)

 

 

Net income per common share:

 

 

 

 

 

 

            Basic

$

.61

$

.49

 

 

            Diluted

$

.61

$

.48

 

 

Funds from operations

 

 

 

 

 

 

            Basic

$

18,902

$

16,406

 

 

            Diluted

$

18,930

$

16,438

 

 

Funds from operations per common share

 

 

 

 

 

 

            Basic

$

.69

$

.61

 

 

            Diluted

$

.68

$

.59

 

 

Weighted average common shares outstanding

 

 

 

 

 

 

            Basic

27,580,665

26,782,468

 

 

            Diluted

27,774,954

 

27,071,585

 

 

      Diluted Shares for FFO purposes

27,774,954

 

27,748,503

 

 

 

 

 

 

 

 

 

Dividends per common share

$

.45

$

.425

 

 

 

 

 

 

 

 

Balance Sheet Data

 

 

 

 

 

(in thousands)

March 31

 

December 31

 

 

 

2005

 

2004

 

Real estate properties, net

$

267,454

$

278,170

 

Mortgages receivable, net

 

130,732

 

112,072

 

Preferred stock investment

 

38,132

 

38,132

 

Cash and marketable securities

 

142,685

 

190,313

 

Debt

 

119,962

 

154,432

 

Convertible debt

 

1,048

 

1,116

 

Stockholders’ equity

 

420,441

 

425,539

 
                       

 

 

Reconciliation of Funds From Operations (1)(2)

 

            The following table reconciles net income to funds from operations:

 

 

 

 

 

 

 

Three Months Ended March 31