UPDATE: NHI Announces Settlements in Nonproft Suits, Sees $40M for Charitable Purposes in Tennessee, NHC Agrees to Lease from NHI 7 Facilities; NHI Raises Qtr. Dividend to $0.735/Share, Updates FY13 Normalized Outlook

National Health Investors, Inc., (NYSE: NHI), National HealthCare Corporation(NYSE: NHC), the court-appointed Receiver for twoTennessee nonprofits, SeniorTrust of Florida, Inc., ("SeniorTrust") andElderTrust of Florida, Inc., ("ElderTrust), and the Tennessee Attorney Generalannounced today that they have agreed to resolve a long-standing dispute thathas been the subject of litigation. The resolution of the litigation, togetherwith the Receiver's sale of 14 nursing homes and liquidation of thenonprofits' assets, will ultimately result in approximately $40M forcharitable purposes in Tennessee.The Tennessee Attorney General had previously asked the Davidson CountyChancery Court to place both of these nonprofits in receivership. The Receiversubsequently filed suit against National Health Investors, Inc. ("NHI") andNational HealthCare Corporation ("NHC").NHI helped to establish SeniorTrust and ElderTrust, two Tennessee 501(c)(3)nonprofit corporations, in 2000. Between 2001 and 2004, NHI sold a group ofskilled nursing facilities in Missouri and Kansas to SeniorTrust and a groupof skilled nursing facilities in Massachusetts and New Hampshire toElderTrust. The Receiver's primary dispute with NHI concerned the financialterms on which NHI had sold and financed the purchase of the facilities to thenonprofit.In 2007, NHC acquired the lease of a long-term care facility in Chattanooga,Tennessee, known as Standifer Place from SeniorTrust. The Receiver's primarydispute with NHC concerned the financial terms on which NHC acquired thelease.The Receiver for SeniorTrust and ElderTrust claimed that the financial termsof the various transactions with NHI and NHC were unfair to the nonprofits, aclaim NHI and NHC disputed.As part of the negotiated resolution, NHI will discount amounts it claimsremain due from SeniorTrust and ElderTrust. SeniorTrust and ElderTrust willpay those discounted amounts, and NHI will acquire ElderTrust's skillednursing facilities in Massachusetts and New Hampshire.NHC has managed the skilled nursing facilities owned by SeniorTrust andElderTrust since the facilities were acquired from NHI. As part of thenegotiated resolution, NHC paid additional amounts to resolve the Receiver'sclaims. As a result of the settlement, NHC also has agreed to lease from NHIthe seven skilled nursing facilities in Massachusetts and New Hampshire whichwere formerly owned by ElderTrust.The Office of the Tennessee Attorney General, which oversees Tennesseenonprofits, expressed satisfaction with the settlement of these disputes,which is subject to approval by the court in which the receiverships arepending. “We believe this settlement is in the best interest of the public andupholds the appropriate use of Tennessee charities,” said Attorney General BobCooper. “The Court will ultimately determine how these funds can be used forcharitable purposes, and the Office of the Attorney General will seek andwelcome public input in that process.”Separately, National Health Investors raised quarterly dividend from $0.695 to $0.735/share. Now sees FY13 normalized FFO guidance of $3.42-3.50 vs $3.38 analyst estimate.