Latest Update on Hot Stock: National Health Investors, Inc. (NYSE: NHI)

On 26 Feb 2019, shares of National Health Investors, Inc. (NYSE: NHI) plunged/surged -0.71% in trading session and finally closed at $79.52. The company most recent volume stood at 140,561 shares as compared to average volume of 220,014 shares. Over the one year trading period, the stock has a high price of $84.57 and its low price is recorded at $64.33. The company has a market cap of $3.358B.

National Health Investors, Inc. (NHI) reported recently its net income, its Funds From Operations (“FFO”), its Normalized Funds From Operations and its Normalized Adjusted Funds From Operations (“AFFO”) for the three months and year ended December 31, 2018.

FIRST QUARTER 2018 Highlights

  • Reported or completed $205.4M in real estate and note investments in the fourth quarter; $364.3M for the year
  • Maintained low leverage balance sheet at 4.5x net debt-to-annualized adjusted EBITDA
  • Ample liquidity with $466M accessible to draw on revolving credit facility
  • Fixed charge coverage remains conservative at 6.0x
  • Portfolio lease coverage remains strong at 1.64x
  • GAAP net income of $.87 per diluted ordinary share for the fourth quarter; $3.67 for the year
  • Normalized FFO per diluted ordinary share up 3.2% for the year
  • Normalized AFFO per diluted ordinary share up 5.0% over fourth quarter 2017; up 6.1% for the year

Financial Results

  • Net income per diluted ordinary share for the three months ended December 31, 2018, was $.87, a decrease of 3.3% from the same period in the previous year. Net income per diluted ordinary share for the year ended December 31, 2018, was $3.67, a decrease of 5.2% from the previous year and includes straight-line rent receivable write-downs of $4,752,000 and a $363,000 write-down on an uncollectible note receivable. Net income for the year ended December 31, 2017 included gains on sales of marketable securities of $10.0M.
  • Normalized FFO per diluted ordinary share for the three months ended December 31, 2018, was $1.35, unchanged from the previous year. Normalized FFO per diluted ordinary share for the year ended December 31, 2018, was $5.46, an raise of 3.2% over the previous year.
  • Normalized AFFO per diluted ordinary share for the three months ended December 31, 2018 was $1.27, an raise of 5.0% over the same period in the previous year. Normalized AFFO per diluted ordinary share for the year ended December 31, 2018 was $5.04, an raise of 6.1% over the previous year.
  • NAREIT FFO per diluted ordinary share for the three months ended December 31, 2018, was $1.30, a decrease of .8% from the same period in the previous year and includes the write-downs mentioned above. NAREIT FFO per diluted ordinary share for the year ended December 31, 2018, was $5.36, a decrease of 2.5% from the previous year. NAREIT FFO for the year ended December 31, 2017 included gains on sales of marketable securities of $10.0M.

FFO, as defined by the National Association of Real Estate Investment Trusts (“NAREIT”) and applied by us, is net income (computed in accordance with GAAP), not including gains (or losses) from sales of real estate property, plus real estate depreciation and amortization, and after adjustments for unconsolidated joint ventures and joint ventures, if any. The Company defines Normalized FFO as FFO adjusted for certain items which may create some difficulty in comparing FFO for the current period to similar previous periods. We define Normalized AFFO as Normalized FFO not including 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. These supplemental non-GAAP performance measures may not be comparable to similarly titled measures used by other REITs.

In the trailing 12 months period

NHI return on assets ratio of the Company was 5.80% and return on equity ratio was 11.40% while its return on investment ratio was 5.80%.

The stock price switched up -3.01% 20-Days Simple Moving Average added 0.13% from 50-Days Simple Moving Average and rose 4.50% from 200 Days Simple Moving Average.

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