National Health Investors(NHI) - 2021 Q1 - Quarterly Report

PART I. FINANCIAL INFORMATION This section presents the company's financial statements, management's discussion, market risk disclosures, and internal controls Item 1. Financial Statements This section presents NHI's unaudited condensed consolidated financial statements and detailed explanatory notes Condensed Consolidated Balance Sheets This table summarizes the company's assets, liabilities, and equity at specific reporting dates | Metric | March 31, 2021 | December 31, 2020 | | :-------------------------------- | :------------------------------ | :------------------------------- | | Total Assets | $3.18 billion | $3.12 billion | | Total Liabilities | $1.62 billion | $1.60 billion | | Total Equity | $1.56 billion | $1.52 billion | | Cash and cash equivalents | $113.38 million | $43.34 million | | Debt | $1.52 billion | $1.50 billion | Condensed Consolidated Statements of Income This table details the company's revenues, net income, and earnings per common share for the reported periods | Metric | Three Months Ended March 31, 2021 | Three Months Ended March 31, 2020 | | :----------------------------------------- | :----------------------------------------------- | :----------------------------------------------- | | Revenues | $80.89 million | $83.08 million | | Net income | $35.38 million | $61.06 million | | Net income attributable to common stockholders | $35.33 million | $61.02 million | | Earnings per common share - basic | $0.78 | $1.37 | | Earnings per common share - diluted | $0.78 | $1.37 | Condensed Consolidated Statements of Comprehensive Income This table presents the company's net income and other comprehensive income components | Metric | Three Months Ended March 31, 2021 | Three Months Ended March 31, 2020 | | :----------------------------------------- | :----------------------------------------------- | :----------------------------------------------- | | Net income | $35.38 million | $61.06 million | | Total other comprehensive income (loss) | $1.77 million | $(8.70) million | | Comprehensive income | $37.16 million | $52.36 million | | Comprehensive income attributable to common stockholders | $37.10 million | $52.32 million | Condensed Consolidated Statements of Cash Flows This table outlines cash flows from operating, investing, and financing activities and their impact on cash balances | Cash Flow Activity | Three Months Ended March 31, 2021 | Three Months Ended March 31, 2020 | | :------------------------------------- | :----------------------------------------------- | :----------------------------------------------- | | Net cash provided by operating activities | $56.91 million | $57.08 million | | Net cash used in investing activities | $(9.13) million | $(51.02) million | | Net cash provided by financing activities | $22.11 million | $58.08 million | | Increase in cash and cash equivalents and restricted cash | $69.89 million | $64.15 million | | Cash and cash equivalents and restricted cash, end of period | $116.23 million | $79.82 million | Condensed Consolidated Statements of Equity This section details changes in the company's equity components, including common stock and capital Equity Component (as of March 31, 2021) | Equity Component (as of March 31, 2021) | Amount | | :-------------------------------------- | :-------------------- | | Common stock, $0.01 par value | $459 thousand | | Capital in excess of par value | $1.59 billion | | Cumulative dividends in excess of net income | $(37.23) million | | Accumulated other comprehensive loss | $(5.38) million | | Total National Health Investors, Inc. Stockholders' Equity | $1.55 billion | | Noncontrolling interests | $10.53 million | | Total Equity | $1.56 billion | - The number of common shares issued and outstanding increased from 45,185,992 at December 31, 2020, to 45,850,599 at March 31, 2021[23] Notes to Condensed Consolidated Financial Statements These notes provide detailed explanations of accounting policies, significant transactions, and financial instruments Note 1. Organization and Nature of Business This note describes NHI's REIT structure and investment focus in healthcare real estate - National Health Investors, Inc. (NHI) is a self-managed REIT specializing in sale-leaseback, joint venture, mortgage, and mezzanine financing for senior housing and medical facilities[25] Investment Type (as of March 31, 2021) | Investment Type | Details (as of March 31, 2021) | | :------------------------------ | :----------------------------- | | Total Investments | $3.3 billion | | Health Care Real Estate Properties | 228 properties in 34 states | | Senior Housing Communities (SHO) | 151 | | Skilled Nursing Facilities | 72 | | Hospitals | 3 | | Medical Office Buildings | 2 | | Mortgages and other notes receivable | $306.2 million (net of $4.9M reserve) | Note 2. Basis of Presentation and Significant Accounting Policies This note outlines the accounting principles used in preparing the financial statements and key policy elections - The financial statements are prepared in accordance with U.S. GAAP for interim statements, reflecting all necessary recurring adjustments for fair presentation[26] - The company consolidates wholly-owned subsidiaries and entities where it has a controlling interest, including certain Variable Interest Entities (VIEs) if deemed the primary beneficiary[27] Cash Component | Cash Component | March 31, 2021 | March 31, 2020 | | :---------------------------- | :------------- | :------------- | | Cash and cash equivalents | $113.38 million | $46.05 million | | Restricted cash | $2.85 million | $33.77 million | | Total | $116.23 million | $79.82 million | - NHI elected not to apply lease modification guidance under ASC 842 for COVID-19 related concessions, accounting for them as variable lease payments. During Q1 2021, $4.2 million in lease concessions were provided[37] Note 3. Real Estate Properties and Investments This note details the company's real estate portfolio, tenant concentrations, and future rent obligations Tenant (as of March 31, 2021) | Tenant (as of March 31, 2021) | Asset Class | Number of Properties | Revenues (3 Months Ended March 31, 2021) | % Total Revenue | | :---------------------------- | :---------- | :------------------- | :--------------------------------------- | :-------------- | | Senior Living Communities | EFC | 10 | $12.72 million | 16% | | Bickford Senior Living | ALF | 48 | $10.21 million | 13% | | Holiday Retirement | ILF | 26 | $10.19 million | 13% | | National HealthCare Corporation (NHC) | SNF | 42 | $9.45 million | 12% | - At March 31, 2021, NHI had a net investment of $40.2 million in six properties with currently exercisable tenant purchase options, and $100.1 million in 11 properties with options exercisable between 2022 and 2028[41] - In January 2021, a tenant notified intent to acquire a behavioral hospital for approximately $26.4 million in July 2021, with a net investment of $21.1 million at March 31, 2021[42] Future Minimum Base Rent | Future Minimum Base Rent | Amount | | :-------------------------------------- | :----- | | Remainder of 2021 | $215.17 million | | 2022 | $287.82 million | | 2023 | $283.51 million | | 2024 | $277.00 million | | 2025 | $273.51 million | | 2026 | $277.82 million | | Thereafter | $1.16 billion | | Total | $2.77 billion | - Effective April 30, 2021, NHI agreed to sell six properties leased to Bickford for $52.9 million, including a $13.0 million Company-financed second mortgage. This transaction satisfied a prior agreement to waive $2.1 million in Q3 2020 rent[48] [Note 4. Mortgage and Other Notes Receivable](index=15&type=section&id=Note%204.%20Mortgage%20and%2