National Health Investors announces its normalized Funds From Operations

National Health Investors, Inc. (NYSE:NHI) announced today its normalized Funds From Operations ("FFO"), its normalized Funds Available for Distribution ("FAD") and net income attributable to common stockholders for the three months ended March 31, 2013.

Year-To-Date Highlights

  • Increased first quarter Normalized FFO 10.4% over same quarter in 2012
  • Declared a 13.1% increase in the upcoming second quarter dividend over the same quarter in 2012
  • Increased Normalized FFO guidance for fiscal 2013 to a range of $3.42 to $3.50 per diluted common share
  • Closed a $26.3 million acquisition and leaseback of 2 properties in Texas
  • Announced a settlement resulting in a $37.1 million acquisition and $15 million note payoff

Financial Results

Normalized FFO for the three months ended March 31, 2013, was $23,595,000, or $0.85 per diluted common share, compared with $21,375,000, or $0.77 per diluted common share, for the same period in 2012, an increase of 10.4%. Normalized FAD for the three months ended March 31, 2013, was $24,405,000 or $0.87 per diluted common share, compared with $22,085,000 or $0.79 per diluted common share for the same period in 2012, an increase of 10.5%. Normalized FFO and Normalized FAD for the three months ended March 31, 2013 excludes the effect of a $4,037,000 loan impairment.

FFO, as defined by the National Association of Real Estate Investment Trusts ("NAREIT"), for the three months ended March 31, 2013, was $19,558,000, or $0.70 per diluted common share, compared with $21,375,000, or $0.77 per diluted common share, for the same period in 2012. Net income attributable to common stockholders for the three months ended March 31, 2013, was $15,743,000, or $0.56 per diluted common share, compared with $18,350,000, or $0.66 per diluted common share, for the same period in 2012.

The reconciliation of net income attributable to common stockholders to our FFO, Normalized FFO, FAD and Normalized FAD is included as tables to this press release and in supplemental data furnished on Form 8-K and is filed in our Form 10-Q with the Securities and Exchange Commission.

2013 Guidance -

The Company currently forecasts Normalized FFO for 2013 from $3.42 to $3.50 per diluted common share. The Company's guidance range for the full year 2013 for Normalized FFO per share, with underlying assumptions and timing of certain transactions, is set forth and reconciled below:

The Company'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 Company's control and all of which are subject to change. The low end of our guidance range assumes a baseline from the fourth quarter 2012, the transactions completed to date in the second quarter of 2013, the timing for terming out debt on our credit facility and assuming 3% growth from our Bickford joint venture. On the top end of that range, we are adding in assumptions for investment activity and a 6% growth from our Bickford joint venture. The Company expects to make additional investments in health care real estate during 2013 that meet its underwriting criteria and where the spreads over its cost of capital generates sufficient returns to its shareholders. These new investments are expected to be funded by the Company's liquid investments and by short-term and long-term debt financing. The Company'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 6, 2013, at 1 p.m. ET, to discuss first quarter results. The number to call for this interactive teleconference is (212) 231-2907 with the confirmation number, 21656133. The live broadcast of NHI's quarterly conference call will be available online at www.nhireit.com. The online replay will follow shortly after the call and continue for approximately 90 days.

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