NHI fourth quarter normalized FFO improves to $0.72 per basic and diluted common share

National Health Investors, Inc. (NYSE:NHI) announced today its normalized Funds From Operations ("FFO") and net income for the three months and year ended December 31, 2010.

2010 Highlights

• Normalized FFO improved to $2.76 per basic and diluted common share compared with $2.33 in 2009
• Funded and made commitments totaling $141,420,000 in leaseback transactions, mortgage loans and a construction loan involving health care real estate
• Closed on a new $100 million credit facility in November, expandable to $200 million, to fund new investments

Financial Results

Normalized FFO for the three months ended December 31, 2010 was $20,031,000, or $0.72 per basic and diluted common share, compared with $16,650,000, or $0.60 per basic and diluted common share, for the same period in 2009. Normalized FFO for the three months ended December 31, 2010 excludes $378,000 in certain adjustments. Normalized FFO for the three months ended December 31, 2009 excludes $1,944,000 in gains and recoveries of previous write-downs on the sale of marketable securities.

FFO, as defined by the National Association of Real Estate Investment Trusts ("NAREIT"), for the three months ended December 31, 2010 was $19,653,000, or $0.71 per basic and diluted common share, compared with $18,594,000, or $0.67 per basic and diluted common share, for the same period in 2009. Net income for the three months ended December 31, 2010 was $16,955,000, or $0.62 and $0.61 per basic and diluted common share, respectively, compared with net income of $16,291,000, or $0.59 and $0.58 per basic and diluted common share, respectively, for the same period in 2009.

Normalized FFO for the year ended December 31, 2010 was $76,483,000, or $2.76 per basic and diluted common share, compared with $64,341,000, or $2.33 per basic and diluted common share, for 2009. Normalized FFO for 2010 excludes the collection of past due rent of $1,520,000, recoveries of previous write-downs of $573,000, expenses of $378,000 related to an abandoned capital offering and certain other adjustments of $248,000. Normalized FFO for 2009 excludes the collection of past due rent and interest from two customers of $2,654,000, recoveries of previous writedowns and gains of $3,480,000, the recognition into income of deferred credits totaling $1,493,000 and other adjustments totaling $626,000.

FFO for 2010 was $77,950,000 or $2.82 and $2.81 per basic and diluted common share, respectively, compared to $72,594,000, or $2.63 per basic and diluted common share, for 2009. Net income for 2010 was $69,421,000 or $2.51 and $2.50 per basic and diluted share, respectively, compared to $64,229,000, or $2.33 and $2.32 per basic and diluted common share, respectively, for 2009.

2011 Guidance

Based on new investments made in 2010 and the timing of expected investments in 2011, the Company forecasts an increase in normalized FFO for 2011. The Company's guidance range for the full year 2011 for net income per diluted share and Normalized FFO per share 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 Company's guidance may change if actual results vary from these assumptions.