NHI Announces Third Quarter 2016 Results

National Health Investors, Inc. (NYSE:NHI) announced today its net income attributable to common stockholders, its Funds From Operations ("FFO"), its Normalized Funds From Operations, its Normalized Adjusted Funds From Operations ("AFFO"), and its Normalized Funds Available for Distribution ("FAD") for the three and nine months ended September 30, 2016.

Highlights
  • Announced $447.7 million in acquisitions and loans year-to-date
  • Issued $54 million of common equity on ATM during quarter; $104.2 million year-to-date
  • Net income attributable to common stockholders down 6.7% compared to third quarter 2015; up 13.1% year-to-date
  • Normalized AFFO up 2.8% over third quarter 2015; up 5.5% year-to-date
  • Maintained low leverage balance sheet at 4.4x net debt-to-annualized EBITDA
  • Portfolio lease coverage remains strong at 1.90x
  • Signed definitive agreement with Bickford Senior Living converting RIDEA portfolio to triple-net tenancy

Financial Results
  • Net income attributable to common stockholders per diluted common share for the three months ended September 30, 2016, was $.83, a decrease of 6.7% over the same period in the prior year. Net income attributable to common stockholders per diluted common share for the nine months ended September 30, 2016, was $2.84, an increase of 13.1% over the same period in the prior year.
  • Normalized FFO per diluted common share for the three months ended September 30, 2016, was $1.23, an increase of 1.7% over the same period in the prior year. Normalized FFO per diluted common share for the nine months ended September 30, 2016, was $3.60, an increase of 3.2% over the same period in the prior year.
  • Normalized AFFO per diluted common share for the three months ended September 30, 2016 was $1.10, an increase of 2.8% over the same period in the prior year. Normalized AFFO per diluted common share for the nine months ended September 30, 2016 was $3.24, an increase of 5.5% over the same period in the prior year.
  • Normalized FAD per diluted common share for the three months ended September 30, 2016, was $1.10, an increase of 1.9% over the same period in the prior year. Normalized FAD per diluted common share for the nine months ended September 30, 2016, was $3.28, an increase of 5.1% over the same period in the prior year.
  • FFO per diluted common share for the three months ended September 30, 2016, was $1.21, a decrease of .8% over the same period in the prior year. FFO per diluted common share for the nine months ended September 30, 2016, was $3.82, an increase of 8.8% over the same period in the prior year.
  • FFO and net income attributable to common stockholders for the three months ended September 30, 2016 include a $1.7 million gain on the sale of our non-controlling interest in an equity method investee, a $1.2 million write-off of a deferred tax asset, the result of the same transaction, and a $1.1 million write-off of straight-line rent receivable due to the planned transition of a 126-unit senior housing portfolio. FFO and net income attributable to common stockholders for the nine months ended September 30, 2016 additionally includes gains on sales of marketable securities of $23.5 million and $14.7 million in write-offs of a lease intangible and straight-line rent receivable, both due to the transition of a lease on a portfolio of 15 skilled nursing facilities to The Ensign Group. Net income for the nine months ended September 30, 2016 includes additional gains on sales of real estate of $1.7 million.

The Company defines Normalized FFO as FFO adjusted for infrequent or unpredictable items detailed in the accompanying reconciliations. We define Normalized AFFO as Normalized FFO excluding the effects of straight-line lease revenue, amortization of debt issuance costs and the non-cash amortization of the original issue discount of our unsecured convertible notes. The Company defines Normalized FAD as Normalized AFFO excluding the effect of non-cash compensation expense. These supplemental non-GAAP performance measures may not be comparable to similarly titled measures used by other REITs.

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