Home / Markets / Industries / Finance
Monday, November 10, 2008
NHI Reports Third Quarter Income
Comtex
MURFREESBORO, Tenn., Nov 10, 2008 (BUSINESS WIRE) ----National Health Investors, Inc. (NYSE:NHI) announced its net income and funds from operations ("FFO") for the three and nine month periods ended September 30, 2008.
Net income for the three months ended September 30, 2008 was $15,951,000 or $.57 per basic and diluted common share.
Net income previously reported for the same period in 2007 was $36,538,000 or $1.32 per basic and $1.31 per diluted common share and included a recovery (income) of an earlier writedown of a mortgage loan receivable of $21,300,000 or $.77 per basic and $.76 per diluted common share. Adjusting for the above-mentioned item, net income for the same period in 2007 would have been $15,238,000 or $.55 per basic and diluted common share.
FFO for the three months ended September 30, 2008 was $17,869,000, or $.64 per basic and diluted common share.
FFO previously reported for the same period in 2007 was $39,486,000 or $1.43 per basic and $1.42 per diluted common share and included the recovery (income) item above of $23,100,000 or $.77 per basic and $.76 per diluted common share. Adjusting for this item, FFO for the same period in 2007 would have been $18,186,000 or $.66 per basic and diluted common share.
Net income for the nine months ended September 30, 2008 was $44,143,000 or $1.59 per basic and diluted common share.
Net income previously reported for the same period in 2007 was $67,000,000 or $2.42 per basic and $2.41 per diluted common share and included items (income) favorably impacting net income of $24,179,000 or $.88 per basic and $.87 per diluted common share attributable to recoveries of earlier writedowns of mortgage loan receivables, gains from realty sales and a gain from a note collection. Adjusting for these items, net income for the same period in 2007 would have been $42,821,000 or $1.54 per basic and diluted common share.
FFO for the nine months ended September 30, 2008 was $49,910,000 or $1.80 per basic and diluted common share.
FFO previously reported for the same period in 2007 was $75,177,000 or $2.71 per basic and $2.70 per diluted common share and included the items above (excluding realty sales not in FFO) of $23,468,000 or $.85 per basic and $.84 per diluted common share. Adjusting for these items, FFO for the same period in 2007 would have been $51,709,000 or $1.86 per basic and diluted common share.
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 Nine Months Ended September 30 September 30 2008 2007 2008 2007 Revenues: Mortgage interest income $ 2,400 $ 2,599 $ 7,214 $ 9,092 Rental income 13,220 12,989 40,017 38,052 $ 15,620 $ 15,588 $ 47,231 $ 47,144 Expenses: Interest expense $ 62 $ 465 $ 247 $ 4,475 Depreciation 1,925 2,083 5,936 6,163 Amortization of loan costs 3 3 11 71 Legal expense 310 161 1,041 554 Franchise, excise and other taxes 108 68 525 330 General and administrative 453 1,227 2,241 4,438 Loan and realty losses (recoveries) - (21,300 ) - (23,000 ) $ 2,861 $ (17,293 ) $ 10,001 $ (6,969 ) Income Before Non-Operating Income $ 12,759 $ 32,881 $ 37,230 $ 54,113 Non-operating income (investment Interest and other) 701 2,556 4,464 9,010 Income From Continuing Operations $ 13,460 $ 35,437 $ 41,694 $ 63,123 Discontinued Operations Income from operations - discontinued 2,491 1,101 2,449 3,208 Net gain on sale of real estate - - - 669 $ 2,491 $ 1,101 $ 2,449 $ 3,877 Net income $ 15,951 $ 36,538 $ 44,143 $ 67,000 Weighted average common shares outstanding: Basic 27,767,394 27,703,539 27,750,377 27,703,439 Diluted 27,785,708 27,786,198 27,783,141 27,787,604 Earnings per share: Basic: Income from continuing operations $ 0.48 $ 1.28 $ 1.50 $ 2.28 Discontinued operations 0.09 0.04 0.09 0.14 Net income available to common stockholders $ 0.57 $ 1.32 $ 1.59 $ 2.42 Diluted: Income from continuing operations $ 0.48 $ 1.27 $ 1.50 $ 2.27 Discontinued operations 0.09 0.04 0.09 0.14 Net income available to common stockholders $ 0.57 $ 1.31 $ 1.59 $ 2.41 Funds from operations Basic $ 17,869 $ 39,486 $ 49,910 $ 75,177 Diluted $ 17,869 $ 39,486 $ 49,910 $ 75,177 Funds from operations per common share Basic $ 0.64 $ 1.43 $ 1.80 $ 2.71 Diluted $ 0.64 $ 1.42 $ 1.80 $ 2.70 Dividends declared per common share $ 0.55 $ 0.50 $ 1.65 $ 1.50 In accordance with Statement of Financial Accounting Standard No. 144, the results of operations for facilities meeting the accounting criteria as being sold or held for sale, 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) September 30 December 31 2008 2007 Real estate properties, net $ 183,283 $ 187,455 Mortgages receivable, net 109,935 141,655 Assets held for sale, net 629 - Preferred stock investment 38,132 38,132 Cash and marketable securities 136,060 131,172 Notes and bonds payable 5,705 9,512 Stockholders' equity 446,256 446,138
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 Nine Months Ended September 30 September 30 2008 2007 2008 2007 Net income 15,951 36,538 44,143 67,000 Elimination of non-cash items in net income: Real estate depreciation 1,905 2,201 5,728 6,719 Real estate depreciation in discontinued operations 13 747 39 2,169 Gain on sale of real estate-continuing operations - - - (42 ) Gain on sale of real estate-discontinued operations - - - (669 ) Basic funds from operations 17,869 39,486 49,910 75,177 Other Adjustments - - - - Diluted funds from operations $ 17,869 $ 39,486 $ 49,910 $ 75,177 Basic funds from operations per share $ 0.64 $ 1.43 $ 1.80 $ 2.71 Diluted funds from operations per share $ 0.64 $ 1.42 $ 1.80 $ 2.70 Shares for basic funds from operations per share 27,767,394 27,703,539 27,750,377 27,703,439 Shares for diluted funds from operations per share 27,785,708 27,786,198 27,783,141 27,787,604 (1) Management believes that funds from operations (FFO) is an important supplemental measure of operating performance for a real estate investment trust.Because the historical cost accounting convention used for real estate assets requires straight-line depreciation (except on land), such accounting presentation implies that the value of real estate assets diminishes predictably over time.Since real estate values instead have historically risen and fallen with market conditions, presentations of operating results for a real estate investment trust that uses historical cost accounting for depreciation could be less informative, and should be supplemented with a measure such as FFO.The term FFO was designed by the real estate investment trust industry to address this issue.Our measure may not be comparable to similarly titled measures used by other REITs.Consequently, our funds from operations may not provide a meaningful measure of our performance as compared to that of other REITs.Since other REITs may not use our definition of FFO, caution should be exercised when comparing our Company's FFO to that of other REITs.Funds from operations in and of itself does not represent cash generated from operating activities in accordance with GAAP (funds from operations does not include changes in operating assets and liabilities) and therefore should not be considered an alternative to net earnings as an indication of operating performance, or to net cash flow from operating activities as determined by GAAP in the United States, as a measure of liquidity and is not necessarily indicative of cash available to fund cash needs. (2) Our computations above are intended to comply with the SEC's interpretation that recurring impairments taken on real property may not be added back to net income in the calculation of FFO.The SEC's position is that recurring impairments on real property are not an appropriate adjustment.
National Health Investors, Inc. Portfolio Summary September 30, 2008 Portfolio Statistics Investment Properties Percentage Investments Real Estate Properties 73 63% $ 183,912,000 Mortgages and Notes Receivables 51 37% 109,935,000 Total Real Estate Portfolio 124 100.0% $ 293,847,000 Real Estate Properties Properties Beds Investments Long term Care Centers 50 6,923 $ 104,164,000 Assisted Living Facilities 14 1,133 56,520,000 Medical Office Buildings 4 124,427 sq.ft. 9,242,000 Independent Living Facilities 4 458 7,621,000 Hospitals 1 55 6,365,000 Total Real Estate Properties 73 $ 183,912,000 Mortgages and Notes Receivables Properties Beds Investments Long term Care Centers 34 3,581 $ 106,133,000 Developmentally Disabled 17 108 3,802,000 Total Mortgages and Notes Receivable 51 $ 109,935,000 Total Real Estate Portfolio 124 $ 293,847,000 Summary of Facilities by Type: Percentage of Total Properties Total Dollars Dollars Long term Care Centers 84 71.6% $ 210,297,000 Assisted Living Facilities 14 19.2% 56,520,000 Medical Office Buildings 4 3.1% 9,242,000 Independent Living Facilities 4 2.6% 7,621,000 Hospitals 1 2.2% 6,365,000 Developmentally Disabled 17 1.3% 3,802,000 Total Real Estate Portfolio 124 100.0% $ 293,847,000 Portfolio by Operator Type # of Percentage of Total Properties Total Dollars Dollars Regional 48 57.8% $ 169,979,000 Public 65 32.1% 94,273,000 Small Operator 11 10.1% 29,595,000 124 100.0% $ 293,847,000
Public Operators Percentage Dollar Of Total Amount Portfolio National HealthCare Corp. $ 58,187,000 19.8 % Sunrise Senior Living Services 12,361,000 4.2 % Community Health Systems, Inc. 11,910,000 4.1 % Sun Healthcare 8,013,000 2.7 % Res-Care, Inc. 3,802,000 1.3 % Total Public Operators $ 94,273,000 32.1 %
National Health Investors, Inc. Summary of Facilities by State September 30, 2008 Percent Acute Dev. Asst. Retire- Investment Total LTC Care MOB Disab. Living ment Total Amount Portfolio Florida 11 1 14 4 30 $ 72,568,000 24.7 % Texas 8 2 10 47,729,000 16.2 % Tennessee 20 3 3 2 28 26,454,000 9.0 % Missouri 8 1 9 20,652,000 7.0 % Virginia 8 8 19,353,000 6.6 % Arizona 1 4 5 17,025,000 5.8 % Kansas 6 6 14,047,000 4.8 % Massachusetts 4 4 14,908,000 5.1 % New Jersey 1 1 12,361,000 4.2 % Georgia 6 6 9,539,000 3.2 % New Hampshire 3 3 9,051,000 3.1 % Kentucky 2 1 3 7,243,000 2.5 % South Carolina 4 1 5 10,685,000 3.6 % Idaho 1 1 2 4,873,000 1.7 % Pennsylvania 1 1 4,094,000 1.4 % Alabama 2 2 1,886,000 0.6 % Illinois 1 1 1,379,000 0.5 % 84 1 4 17 14 4 124 $ 293,847,000 100.0 %
SOURCE: National Health Investors, Inc.
National Health Investors, Inc. Roger R. Hopkins, Chief Accounting Officer, 615-890-9100
Copyright Business Wire 2008 ********************************************************************** As of Thursday, 11-06-2008 23:59, the latest Comtex SmarTrend� Alert, an automated pattern recognition system, indicated an UPTREND on 11-04-2008 for NHI @ $30.11. For more information on SmarTrend, contact your market data provider or go to www.mysmartrend.com SmarTrend is a registered trademark of Comtex News Network, Inc. Copyright � 2004-2008 Comtex News Network, Inc. All rights reserved.
FOX Translator
No data currently available.
No data currently available.
Think telemarketer. Except, it's much worse because you can't avoid this call. Instead, when you get one, it's time to pay up, because the bet you placed with borrowed money is eating itself.
Buying stocks on margin is risky because you're essentially "playing" with someone else's money. If the shares you purchased tank, your losses will likely be more than if you had bought the shares with your own cash. This is why the New York Stock Exchange and the Nasdaq impose certain restrictions on the practice.
Initially, you¿re only allowed to borrow half of the money from your broker when buying on margin. You set up a margin account and from then on must keep a maintenance balance of at least 25% of the market value of your stocks.
If the market value of your investment falls below this minimum, you're required to make up the difference by either depositing money into your account or selling some of the stock. If your broker notifies you that you've dipped below this minimum, it's called a margin call.
If you fail to adjust your account accordingly, the broker is authorized to sell shares in your account to make up the difference. The broker can even sell other stock in your margin account to make up for the loss that selling the shares didn't cover.
As an example, say you buy $8,000 in stocks of any given company. You borrow the maximum $4,000 from your broker and pay the rest yourself. Now, if and when the total value of these shares changes, you must make sure you maintain at least $2,000 (25%) in equity. In other words, if the total value were to drop below $6,000, you¿d be in trouble since you only put in $4,000 of your own money to begin with.
