Exhibit 13: Financial Statement Schedules

EX-13 3 exhibit13.htm EXHIBIT 13:FINANCIAL STATEMENT SCHEDULES Exhibit 13: Financial Statement Schedules

EXHIBIT 13

NATIONAL HEALTH INVESTORS, INC.

INDEX TO FINANCIAL STATEMENT SCHEDULES

Financial Statement Schedules

Report of Independent Registered Public Accounting Firm on Financial Statement Schedules

Schedule II - Valuation and Qualifying Accounts

Schedule III - Real Estate and Accumulated Depreciation

Schedule IV - Mortgage Loans on Real Estate

Report of Independent Registered Public Accounting Firm

Board of Directors and Stockholders

National Health Investors, Inc.

Murfreesboro, Tennessee

The audits referred to in our report dated February 16, 2011 relating to the consolidated financial statements of National Health Investors, Inc., which is contained in Item 8 of this Form 10-K, also included the audits of the financial statement schedules listed in the accompanying index. These financial statement schedules are the responsibility of the Company’s management. Our responsibility is to express an opinion on these financial statement schedules based upon our audits.

In our opinion such financial statement schedules, when considered in relation to the basic consolidated financial statements taken as a whole, present fairly, in all material respects, the information set forth therein.

/s/ BDO USA, LLP

Nashville, Tennessee

February 16, 2011

NATIONAL HEALTH INVESTORS, INC.
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS
FOR THE YEARS ENDED DECEMBER 31, 2010, 2009, AND 2008
(in thousands)

	Balance	Additions
	Beginning	Charged to Costs		Balance
Description	of Period	and Expenses⁽¹⁾	Deductions	End of Period

For the year ended
December 31,
2010 - Loan loss
allowance	$ —	$ —	$ —	$ —

For the year ended
December 31,
2009 - Loan loss
allowance	$ —	$ —	$ —	$ —

For the year ended
December 31,
2008 - Loan loss
allowance	$ —	$ —	$ —	$ —

(1) In the Consolidated Statements of Income, we report the net amount of our provision for loan and realty losses and our recoveries of amounts previously written down. For 2010, net recoveries were $573,000 and there was no provision for losses during the year. For 2009, net recoveries were $1,077,000 and there was no provision for losses during the year. For 2008, there were no recoveries and there was no provision for losses during the year.

NATIONAL HEALTH INVESTORS, INC.
SCHEDULE III - REAL ESTATE AND ACCUMULATED DEPRECIATION
DECEMBER 31, 2010
(in thousands)

							Gross Amount at Which
	Initial Cost to Company				Cost Capitalized		Carried at Close of Period								Date
			Buildings &		Subsequent to				Buildings &				Accumulated		Acquired/
Properties	Land		Improvements		Acquisition		Land		Improvements		Total		Depreciation		Constructed

Skilled Nursing Facilities
Anniston, AL	$	70	$	4,477	$	-	$	70	$	4,477	$	4,547	$	2,896	10/17/1991
Moulton, AL		25		688		-		25		688		713		688	10/17/1991
Avondale, AZ		453		6,678		-		453		6,678		7,131		2,571	8/13/1996
Brooksville, FL		1,217		16,166		-		1,217		16,166		17,383		370	2/1/2010
Crystal River, FL		912		12,117		-		912		12,117		13,029		278	2/1/2010
Dade City, FL		605		8,042		-		605		8,042		8,647		184	2/1/2010
Hudson, FL		1,290		22,393		-		1,290		22,393		23,683		6,732	10/17/1991
Merritt Island, FL		701		8,869		-		701		8,869		9,570		5,627	10/17/1991
New Port Richey, FL		228		3,023		-		228		3,023		3,251		69	2/1/2010
Plant City, FL		405		8,777		-		405		8,777		9,182		6,019	10/17/1991
Stuart, FL		787		9,048		-		787		9,048		9,835		5,692	10/17/1991
Trenton, FL		851		11,312		-		851		11,312		12,163		259	2/1/2010
Rossville, GA		52		865		-		52		865		917		865	10/17/1991
Grangeville, ID		122		2,491		-		122		2,491		2,613		966	8/13/1996
Glasgow, KY		33		1,751		-		33		1,751		1,784		1,323	10/17/1991
Madisonville, KY		198		431		-		198		431		629		391	10/17/1991
Desloge, MO		178		3,804		-		178		3,804		3,982		2,517	10/17/1991
Joplin, MO		175		4,034		-		175		4,034		4,209		2,109	10/17/1991
Kennett, MO		180		4,928		-		180		4,928		5,108		3,365	10/17/1991
Maryland Heights, MO		482		5,514		-		482		5,514		5,996		4,206	10/17/1991
St. Charles, MO		149		4,790		-		149		4,790		4,939		3,180	10/17/1991
Anderson, SC		308		4,643		-		308		4,643		4,951		3,562	10/17/1991
Greenwood, SC		222		3,457		-		222		3,457		3,679		2,659	10/17/1991
Laurens, SC		42		3,426		-		42		3,426		3,468		2,367	10/17/1991
Orangeburg, SC		300		3,715		-		300		3,715		4,015		230	9/25/2008
Athens, TN		38		1,463		-		38		1,463		1,501		1,272	10/17/1991
Chattanooga, TN		143		2,309		-		143		2,309		2,452		1,828	10/17/1991
Columbia, TN		154		1,367		-		154		1,367		1,521		1,139	10/17/1991
Dickson, TN		90		3,541		-		90		3,541		3,631		2,513	10/17/1991
Franklin, TN		47		1,130		-		47		1,130		1,177		830	10/17/1991
Hendersonville, TN		363		2,991		-		363		2,991		3,354		1,387	10/17/1991
Johnson City, TN		85		1,918		-		85		1,918		2,003		1,639	10/17/1991
Knoxville, TN		384		2,692		-		384		2,692		3,076		2,010	10/17/1991
Lewisburg, TN		46		995		-		46		995		1,041		870	10/17/1991
McMinnville, TN		73		3,618		-		73		3,618		3,691		2,512	10/17/1991
Milan, TN		41		1,826		-		41		1,826		1,867		1,355	10/17/1991
Pulaski, TN		54		3,917		-		54		3,917		3,971		2,662	10/17/1991
Lawrenceburg, TN		98		2,901		-		98		2,901		2,999		1,869	10/17/1991
Dunlap, TN		35		3,679		-		35		3,679		3,714		2,194	10/17/1991
Smithville, TN		35		3,816		-		35		3,816		3,851		2,497	10/18/1991
Somerville, TN		26		678		-		26		678		704		572	10/19/1991
Sparta, TN		80		1,602		-		80		1,602		1,682		1,140	10/20/1991

NATIONAL HEALTH INVESTORS, INC.
SCHEDULE III - REAL ESTATE AND ACCUMULATED DEPRECIATION
DECEMBER 31, 2010
(in thousands)

							Gross Amount at Which
	Initial Cost to Company				Cost Capitalized		Carried at Close of Period								Date
			Buildings &		Subsequent to				Buildings &				Accumulated		Acquired/
Properties	Land		Improvements		Acquisition		Land		Improvements		Total		Depreciation		Constructed

Springfield, TN		44		854		-		44		854		898		854	10/21/1991
Paris, TX		60		12,040		-		60		12,040		12,100		550	6/30/2009
San Antonio, TX		300		12,150		-		300		12,150		12,450		602	6/30/2009
East Houston, TX		650		14,550		-		650		14,550		15,200		658	6/30/2009
NW Houston, TX		1,100		14,700		-		1,100		14,700		15,800		628	7/31/2009
Bristol, VA		176		2,510		-		176		2,510		2,686		1,693	10/17/1991
		14,107		252,686		-		14,107		252,686		266,793		92,399

Assisted Living Facilities
Gilbert, AZ		451		3,142		-		451		3,142		3,593		940	12/31/1998
Glendale, AZ		387		3,824		-		387		3,824		4,211		1,143	12/31/1998
Tucson, AZ		919		6,656		-		919		6,656		7,575		1,974	12/31/1998
Bartow, FL		225		3,192		-		225		3,192		3,417		8	11/30/2010
Daytona Beach , FL		320		2,668		-		320		2,668		2,988		798	12/23/1998
Lakeland, FL		250		3,167		-		250		3,167		3,417		8	11/30/2010
Maitland, FL		4,004		14,589		-		4,004		14,589		18,593		6,732	8/6/1996
St. Cloud, FL		307		3,117		-		307		3,117		3,424		8	11/30/2010
W. Palm Beach, FL		2,771		4,286		-		2,771		4,286		7,057		3,347	8/6/1996
Clinton, IA		133		3,215		-		133		3,215		3,348		44	4/13/1982
Iowa City, IA		297		2,725		-		297		2,725		3,022		42	12/19/1967
Peoria, IL		403		4,532		-		403		4,532		4,935		133	8/25/1953
Lafayette, IN		546		4,583		-		546		4,583		5,129		61	5/2/1939
Midland, MI		504		6,612		-		504		6,612		7,116		190	10/19/2009
Battle Creek, MI		398		3,093		-		398		3,093		3,491		94	10/19/2009
Lansing, MI		340		7,908		-		340		7,908		8,248		239	10/19/2009
Saginaw, MI		248		4,212		-		248		4,212		4,460		126	10/19/2009
Champlin, MN		980		4,430		-		980		4,430		5,410		111	3/10/2010
Hugo, MN		400		3,800		-		400		3,800		4,200		85	3/10/2010
Maplewood, MN		1,700		6,510		-		1,700		6,510		8,210		160	3/10/2010
North Branch, MN		595		2,985		-		595		2,985		3,580		81	3/10/2010
Edison, NJ		4,229		13,030		-		4,229		13,030		17,259		5,614	8/6/1996
Weatherly, PA		439		3,960		-		439		3,960		4,399		528	9/1/2005
Conway, SC		344		2,877		-		344		2,877		3,221		860	12/31/1998
Gallatin, TN		326		2,277		-		326		2,277		2,603		671	3/31/1999
Kingsport, TN		354		2,568		-		354		2,568		2,922		768	12/31/1998
Tullahoma, TN		191		2,216		-		191		2,216		2,407		653	3/31/1999
		22,061		126,174		-		22,061		126,174		148,235		25,418

Medical Office Buildings
Crestview, FL		165		3,349		-		165		3,349		3,514		1,907	6/30/1993
Pasadena, TX		631		6,341		-		631		6,341		6,972		3,669	1/1/1995
		796		9,690		-		796		9,690		10,486		5,576

NATIONAL HEALTH INVESTORS, INC.
SCHEDULE III - REAL ESTATE AND ACCUMULATED DEPRECIATION
DECEMBER 31, 2010
(in thousands)

							Gross Amount at Which
	Initial Cost to Company				Cost Capitalized		Carried at Close of Period								Date
			Buildings &		Subsequent to				Buildings &				Accumulated		Acquired/
Properties	Land		Improvements		Acquisition		Land		Improvements		Total		Depreciation		Constructed

Independent Living Facilities
Nampa, ID		243		4,182		-		243		4,182		4,425		1,598	8/13/1996
St. Charles, MO		344		3,181		-		344		3,181		3,525		2,052	10/17/1991
Johnson City, TN		55		4,077		-		55		4,077		4,132		2,180	10/17/1991
Chattanooga, TN		9		1,567		-		9		1,567		1,576		1,003	10/17/1991
		651		13,007		-		651		13,007		13,658		6,833

Acute Psychiatric Hospital
La Mesa, CA		4,180		8,320		-		4,180		8,320		12,500		255	3/10/2010

Acute Care Hospital
Jackson, KY		540		10,163		-		540		10,163		10,703		4,997	6/12/1992

Total continuing operations properties		42,335		420,040		-		42,335		420,040		462,375		135,478
Corporate assets		158		664		-		158		664		822		65
	$	42,493	$	420,704	$	-	$	42,493	$	420,704	$	463,197	$	135,543

NOTES TO SCHEDULE III - REAL ESTATE AND ACCUMULATED DEPRECIATION

(A) See Notes 3 and 15 of Notes to Consolidated Financial Statements.
(B) Depreciation is calculated using estimated useful lives up to 40 years for all completed facilities.
(C) Subsequent to NHC's transfer of the original real estate properties in 1991, we have purchased from
NHC $33,909,000 of additions to those properties. As the additions were purchased from NHC rather than
developed by us, the $33,909,000 has been included as Initial Cost to Company.
(D) This schedule excludes assets held for sale with an original cost of $49,950,000 and accumulated depreciation of $13,097,000.

NATIONAL HEALTH INVESTORS, INC.
SCHEDULE III - REAL ESTATE AND ACCUMULATED DEPRECIATION
FOR THE YEARS ENDED DECEMBER 31, 2010, 2009 AND 2008
(in thousands)

	December 31,
	2010		2009		2008
Investment in Real Estate:
Balance at beginning of period	$	350,786	$	310,906	$	309,407
Additions through cash expenditures		98,736		81,569		4,048
Additions through contingent liabilities		1,000		3,000		-
Additions through settlement of mortgage note		22,936		-		-
Sale of properties for cash		(5,000)		-		(133)
Impairment write-downs		-		-		(1,986)
Reclassification for assets held for sale		(5,261)		(44,689)		(430)
Balance at end of year	$	463,197	$	350,786	$	310,906

Accumulated Depreciation:
Balance at beginning of period	$	126,925	$	129,574	$	121,952
Addition charged to costs and expenses		11,203		8,620		7,943
Sale of properties		(769)		-		(91)
Reclassification for assets held for sale		(1,816)		(11,269)		(230)
Balance at end of year	$	135,543	$	126,925	$	129,574

NATIONAL HEALTH INVESTORS, INC.
SCHEDULE IV - MORTGAGE LOANS ON REAL ESTATE⁽¹⁾
DECEMBER 31, 2010
									Principal Amount
									of Loan Subject
		Final	Periodic		Original		Carrying		To Delinquent
	Interest	Maturity	Payment	Prior	Face Amount		Amount		Principal or
Description	Rate	Date	Terms	Liens	of Mortgages		of Mortgages		Interest
					(in thousands)
First Mortgages:
Skilled nursing facilities:
Manchester, NH	6.9%	2011	$69,000		$	9,006	$	4,233
Taunton, MA	6.9%	2011	$69,000			9,006		4,233
Greenfield, MA	6.9%	2011	$62,000			8,105		3,810
Quincy, MA	6.9%	2011	$41,111			5,403		2,540
Haysville, KS⁽²⁾	3.0% - 8.5%	2014	$25,000			5,884		4,740
St. Charles, MO⁽²⁾	3.0% - 8.5%	2014	$14,000			3,694		3,048
Joplin, MO⁽²⁾	3.0% - 8.5%	2014	$19,000			3,800		2,933
Council Grove, KS⁽²⁾	3.0% - 8.5%	2014	$10,000			2,860		2,412
Columbia, MO⁽²⁾	3.0% - 8.5%	2014	$8,000			2,685		2,307
Chanute, KS⁽²⁾	3.0% - 8.5%	2014	$15,000			2,984		2,299
Virginia Beach, VA	8.0%	2031	$27,000			3,814		3,049
Grundy, VA	8.0%	2032	$30,000			4,396		3,354
Others with carrying amounts less than 3% of total carrying amount of mortgages	3.0% - 9.6%	2011 - 2032						22,337

Assisted living facility in Owatonna, MN	7.47%	2018	$38,000			5,033		3,850

Construction Loan:
Transitional rehabilitation center in Mesa, Arizona	10.0%	2015	Interest Only			13,870		7,520

Second Mortgages:
2 skilled nursing facilities and 1 assisted living facility with carrying amounts less than 3% of total carrying amount of mortgages	12.0% - 14.5%	2014 - 2015						2,800

							$	75,465

NOTES TO SCHEDULE IV - MORTGAGE LOANS ON REAL ESTATE

(1) See Note 4 to Consolidated Financial Statements for more information on our mortgage loan receivables.

(2) The Company has a first mortgage receivable on 8 properties with an original amount of $26,293,000 and current carrying value of $21,322,000. The notes on these properties are separated into individual notes

per property with Note A in the original amount of $16,513,000 (carrying value $11,542,000) at 8.5% and Note B in the original amount of $9,780,000 is at 3% with all principal and interest due at maturity

All notes on the 8 properties are cross-collateralized.

NATIONAL HEALTH INVESTORS, INC.
SCHEDULE IV - MORTGAGE LOANS ON REAL ESTATE (continued)
FOR THE YEARS ENDED DECEMBER 31, 2010, 2009 AND 2008
(in thousands)

	December 31,
	2010	2009	2008
Reconciliation of mortgage loans on real estate
Balance at beginning of period	$ 94,588	$ 108,640	$ 134,605
Additions:
New mortgage loans	12,422	4,501	-
Interest accrued on construction loan	298	-	-
Total Additions	12,720	4,501	-

Deduction:
Settlement of mortgage note by real estate acquisition	22,936
Collection of principal, less recoveries of previous write-downs	8,907	18,553	25,965
Total Deductions	31,843	18,553	25,965

Balance at end of period	$ 75,465	$ 94,588	$ 108,640