NHI reports normalized FFO of $16.65M for fourth-quarter 2009

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, 2009.

2009 Highlights

• Normalized FFO improved to $2.33 per basic and diluted common share compared with $2.29 in 2008
• FFO increased 11.3% compared with 2008
• Completed leaseback transactions of four skilled nursing facilities and five assisted living facilities for a total of $83.8 million
• Agreed to purchase six skilled nursing facilities in Florida for $67 million, which closed in February 2010 and concluded NHI’s relationship with Care Foundation of America (“CFA”)
• Subsequent to year-end, closed on a new $100 million revolving credit facility to fund new investments

Financial Results

Normalized FFO for the three months ended December 31, 2009 was $16,650,000, or $0.60 per basic and diluted common share, compared with $15,468,000, or $0.56 per basic and diluted common share, for the same period in 2008. 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. Normalized FFO for the three months ended December 31, 2008 excludes asset write-downs and realized losses on the sale of marketable securities of $1,485,000 and other one-time income items totaling $1,313,000.

FFO, as defined by the National Association of Real Estate Investment Trusts (“NAREIT”), for the three months ended December 31, 2009 was $18,594,000, or $0.67 per basic and diluted common share, compared with $15,296,000, or $0.55 per basic and diluted common share, for the same period in 2008. Net income for the three months ended December 31, 2009 was $16,291,000, or $0.59 and $0.58 per basic and diluted common share, respectively, compared with net income of $13,367,000, or $0.50 and $0.49 per basic and diluted common share, respectively, for the same period in 2008.

Normalized FFO for 2009 was $64,341,000, or $2.33 per basic and diluted common share, compared with $63,668,000, or $2.29 per basic and diluted common share, for 2008. Normalized FFO for 2009 excludes the collection of past due rent and interest from two customers totaling $2,654,000, recoveries of previous write-downs and gains of $3,480,000, the recognition into income related to the cancellation of liabilities totaling $1,493,000 and other one-time items totaling $626,000. Normalized FFO for 2008 excludes asset write-downs and losses on the sale of marketable securities of $4,461,000, the recognition into income of deferred credits totaling $4,121,000, a restricted stock forfeiture of $566,000, and other one-time income items totaling $1,313,000.

FFO for 2009 was $72,594,000, or $2.63 per basic and diluted common share, compared with $65,207,000, or $2.35 per basic and diluted common share, for 2008. Net income for 2009 was $64,229,000, or $2.33 and $2.32 per basic and diluted common share, respectively, compared with $57,510,000, or $2.08 and $2.07 per basic and diluted common share, respectively, for 2008.

2010 Outlook and Guidance Policy

Based on the transactions completed in 2009 and to date in 2010, NHI expects to report continued year-over-year Normalized FFO growth in 2010. NHI expects to initiate 2010 Normalized FFO guidance and the corresponding future investment and expense assumptions in conjunction with the Company’s first quarter results in early May.