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National Health Investors Inc. Reports Operating Results (10-K)

February 17, 2011 | About:

National Health Investors Inc. (NYSE:NHI) filed Annual Report for the period ended 2010-12-31.

National Health Investors has a market cap of $1.28 billion; its shares were traded at around $46.25 with a P/E ratio of 16.7 and P/S ratio of 19.9. The dividend yield of National Health Investors stocks is 5.2%.Hedge Fund Gurus that owns NHI: Jim Simons of Renaissance Technologies LLC, Manning & Napier Advisors, Inc. Mutual Fund and Other Gurus that owns NHI: Chuck Royce of Royce& Associates.

Highlight of Business Operations:

National Health Investors, Inc. (NHI or the Company), a Maryland corporation incorporated in 1991, is a real estate investment trust ("REIT") which invests in income-producing health care properties primarily in the long-term care and senior housing industries. As of December 31, 2010, our portfolio consisted of real estate (excluding corporate office and assets held for sale) and mortgage investments with a carrying value totaling $402,362,000 and other investments in preferred stock and marketable securities of $60,608,000 resulting in total invested assets of $462,970,000. We are a self-managed REIT with our own management reporting directly to our Board of Directors. Our mission is to invest in health care real estate which generates current income that will be distributed to stockholders. We have pursued this mission by investing in leased properties and mortgage loans nationwide, primarily in the long-term health care industry. These investments include skilled nursing facilities, assisted living facilities, medical office buildings, independent living facilities, an acute psychiatric hospital, an acute care hospital, and a transitional rehabilitation center, all of which are collectively referred to herein as "Health Care Facilities". We have funded these investments in the past through three sources of capital: (1) current cash flow, including principal prepayments from our borrowers, (2) the sale of equity securities, and (3) debt offerings, including bank lines of credit, the issuance of convertible debt instruments, and the issuance of ordinary debt.

At December 31, 2010, our continuing operations consisted of investments in real estate and mortgage notes receivable in 118 health care facilities located in 23 states consisting of 78 skilled nursing facilities, 31 assisted living facilities, 2 medical office buildings, 4 independent living facilities, 1 acute psychiatric hospital, 1 acute care hospital and 1 transitional rehabilitation center. These investments consisted of approximately $326,897,000 of net real estate investments in 88 health care facilities with 17 lessees and $75,465,000 aggregate carrying value of mortgage notes receivable from 15 borrowers related to 30 health care facilities.

Our rental income from continuing operations in 2010 was $71,653,000 ($35,212,000 or 49% from NHC); in 2009 was $54,012,000 ($34,782,000 or 64% from NHC); and in 2008 was $47,275,000 ($33,700,000 or 71% from NHC).

As described in Note 9 to the consolidated financial statements, as of December 31, 2010, we have future funding commitments totaling $7,150,000 to a construction loan borrower, to a lessee for certain capital improvements and operating equipment, and for additional borrowings on a mortgage loan. We have $4,000,000 in future conditional payments to be made in

General. Our revenues are derived primarily from rental income and mortgage interest income. During 2010, rental income was $71,653,000 (91%) and mortgage interest income was $6,743,000 (9%) of total revenue from continuing operations of $78,396,000. The source and amount of revenues of our lessees and borrowers are determined by (i) the licensed beds or other capacity of the Health Care Facilities, (ii) the occupancy rate of the Health Care Facilities, (iii) the extent to which the services provided at each Health Care Facility are utilized by the patients, (iv) the mix of private pay, Medicare and Medicaid patients at the Health Care Facilities, and (v) the rates paid by private paying patients and by the Medicare and Medicaid programs.

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