National Health Investors: A Healthcare REIT with Earnings Growth

Nov.13.09 | About: National Health (NHI)

NHI is listed in the Financial table section of our High Dividend Stocks by Sector Tables . This month they reported growth in earnings and revenue for the 3-month and 9-month periods ending 9/30/09:

Total revenues for the three months ended September 30, 2009, increased 25.6%. Net income increased 9.5%. 
Diluted 2009 EPS was $.63 per share vs. $.57 per share in 2008.

Net income for the nine months ended September 30, 2009 increased 8.6%. 
Diluted 2009 EPS was $1.74 per share vs. $1.59 per share in 2008. Total revenues for the nine months ended September 30, 2009 increased 9.3%.

NHI has investments in real estate and mortgage notes receivable in 125 health care properties located in 18 states consisting of 84 skilled nursing facilities, 15 assisted living facilities, 4 medical office buildings, 4 retirement centers, 1 acute care hospital and 17 residential projects for the developmentally disabled. These investments consisted of approximately $230,658,000 of net real estate investments with 16 lessees and $98,372,000 aggregate carrying value of loans to 14 borrowers.

Of the 76 health care properties leased to operators, 41 are leased to National HealthCare Corporation ("NHC"), a publicly-held company and NHI’s largest customer. The current lease with NHC expires December 31, 2021 (excluding 3 additional 5-year renewal options).

NHI beats its peers handily in several key ratios, including financial strength, valuation, profitability, and management effectiveness, in our Industry Comparison Chart .

NHI’s current dividend yield is approx. 7%, and it traded on Thursday just below $32.00.

They recently announced that they’ll pay a $.55 dividend on Jan. 29, 2010, to shareholders of record as of December 31, 2009.

There are no options available for NHI.

Disclosure: No positions