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<TABLE WIDTH="100%">
<TR VALIGN="TOP"><TD COLSPAN="3" ALIGN="CENTER"><FONT SIZE="+1"><STRONG>UNITED STATES</STRONG></FONT></TD></TR>
<TR VALIGN="TOP"><TD COLSPAN="3" ALIGN="CENTER"><FONT SIZE="+1"><STRONG>SECURITIES AND EXCHANGE COMMISSION</STRONG></FONT></TD></TR>
<TR VALIGN="TOP"><TD COLSPAN="3">
<P ALIGN="CENTER"><STRONG>Washington, D.C.  20549</STRONG></TD></TR>
<TR VALIGN="TOP"><TD></TD>
<TD></TD>
<TD></TD></TR>
<TR VALIGN="TOP"><TD COLSPAN="3">
<P ALIGN="CENTER"><FONT SIZE="+1"><STRONG>FORM 8-K</STRONG></FONT></TD></TR>
<TR VALIGN="TOP"><TD></TD>
<TD></TD>
<TD></TD></TR>
<TR VALIGN="TOP"><TD COLSPAN="3">
<P ALIGN="CENTER">CURRENT REPORT PURSUANT</TD></TR>
<TR VALIGN="TOP"><TD COLSPAN="3">
<P ALIGN="CENTER">TO SECTION 13 OR 15(d) OF THE</TD></TR>
<TR VALIGN="TOP"><TD COLSPAN="3">
<P ALIGN="CENTER">SECURITIES EXCHANGE ACT OF 1934</TD></TR>
<TR VALIGN="TOP"><TD></TD>
<TD></TD>
<TD></TD></TR>
<TR VALIGN="TOP"><TD COLSPAN="3">
<P ALIGN="CENTER">Date of Report (Date of earliest event reported): May 2, 2005 (May 2, 2005)</TD></TR>
<TR VALIGN="TOP"><TD></TD>
<TD></TD>
<TD></TD></TR>
<TR VALIGN="TOP"><TD COLSPAN="3">
<P ALIGN="CENTER"><STRONG><FONT SIZE="+1"><U>                    National Health Investors, Inc.                    </U></STRONG></FONT><STRONG></STRONG></TD></TR>
<TR VALIGN="TOP"><TD COLSPAN="3">
<P ALIGN="CENTER">(Exact name of Registrant as specified in its charter)</TD></TR>
<TR VALIGN="TOP"><TD></TD>
<TD></TD>
<TD></TD></TR>
<TR VALIGN="TOP"><TD COLSPAN="3">
<P ALIGN="CENTER"><U>        Maryland      </U></TD></TR>
<TR VALIGN="TOP"><TD COLSPAN="3">
<P ALIGN="CENTER">(State or Other Jurisdiction of Incorporation)</TD></TR>
<TR VALIGN="TOP"><TD COLSPAN="2"></TD>
<TD></TD></TR>
<TR VALIGN="TOP"><TD COLSPAN="2" ALIGN="CENTER"><U>        001-10822        </U></TD>
<TD>
<P ALIGN="CENTER"><U>   62-1470956   </U></TD></TR>
<TR VALIGN="TOP"><TD COLSPAN="2" ALIGN="CENTER">(Commission File No.)</TD>
<TD>
<P ALIGN="CENTER">(IRS Employer</TD></TR>
<TR VALIGN="TOP"><TD></TD>
<TD></TD>
<TD>
<P ALIGN="CENTER">Identification Number)</TD></TR>
<TR VALIGN="TOP"><TD></TD>
<TD></TD>
<TD></TD></TR>
<TR VALIGN="TOP"><TD COLSPAN="3">
<P ALIGN="CENTER">100 Vine Street, Suite 1202</TD></TR>
<TR VALIGN="TOP"><TD COLSPAN="3">
<P ALIGN="CENTER"><U>Murfreesboro, TN 37130</U></TD></TR>
<TR VALIGN="TOP"><TD COLSPAN="3">
<P ALIGN="CENTER">(Address of principal executive offices, including zip code)</TD></TR>
<TR VALIGN="TOP"><TD></TD>
<TD></TD>
<TD></TD></TR>
<TR VALIGN="TOP"><TD COLSPAN="3">
<P ALIGN="CENTER"><U>        (615) 890-9100        </U></TD></TR>
<TR VALIGN="TOP"><TD COLSPAN="3">
<P ALIGN="CENTER">(Registrant's telephone number, including area code)</TD></TR>
<TR VALIGN="TOP"><TD COLSPAN="3"></TD></TR>
<TR VALIGN="TOP"><TD COLSPAN="3">
<P ALIGN="CENTER"><U>          Not Applicable          </U></TD></TR>
<TR VALIGN="TOP"><TD COLSPAN="3">
<P ALIGN="CENTER">(Former name or former address, if changed since last report)</TD></TR></TABLE>
</P>
<BR WP="BR1"><BR WP="BR2">
<P><STRONG>Item 2.02 Results of Operations and Financial Condition.</STRONG></P>

<P>	On May 2, 2005, National Health Investors, Inc. issued a press release announcing its
2005 first quarter results.  A copy of the press release is filed an Exhibit 99 to this Current Report
on Form 8-K and is incorporated by reference herein.</P>

<P ALIGN="CENTER">SIGNATURES</P>

<P>	Pursuant to the requirements of the Securities and Exchange Act of 1934, the registrant
has duly caused this report to be signed on its behalf by the undersigned hereunto duly
authorized.</P>

<TABLE WIDTH="100%">
<TR VALIGN="TOP"><TD></TD>
<TD>National Health Investors, Inc.</TD></TR>
<TR VALIGN="TOP"><TD></TD>
<TD></TD></TR>
<TR VALIGN="TOP"><TD></TD>
<TD></TD></TR>
<TR VALIGN="TOP"><TD></TD>
<TD>By: <U>/s/ W. Andrew Adams               </U></TD></TR>
<TR VALIGN="TOP"><TD></TD>
<TD>Name: W. Andrew Adams</TD></TR>
<TR VALIGN="TOP"><TD></TD>
<TD>Title: Chief Executive Officer</TD></TR>
<TR VALIGN="TOP"><TD></TD>
<TD></TD></TR>
<TR VALIGN="TOP"><TD></TD>
<TD></TD></TR>
<TR VALIGN="TOP"><TD></TD>
<TD></TD></TR>
<TR VALIGN="TOP"><TD></TD>
<TD>By:<U>/s/ Donald K. Daniel                   </U></TD></TR>
<TR VALIGN="TOP"><TD></TD>
<TD>Name:  Donald K. Daniel</TD></TR>
<TR VALIGN="TOP"><TD></TD>
<TD>Title: Principal Accounting Officer</TD></TR>
<TR VALIGN="TOP"><TD>Date: May 2, 2005</TD>
<TD></TD></TR></TABLE>

<BR WP="BR1"><BR WP="BR2">
<BR WP="BR1"><BR WP="BR2">
<BR WP="BR1"><BR WP="BR2">
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<BR WP="BR1"><BR WP="BR2">
<BR WP="BR1"><BR WP="BR2">
<BR WP="BR1"><BR WP="BR2">
<P ALIGN="CENTER">Exhibit Index</P>

<TABLE WIDTH="100%">
<TR VALIGN="TOP"><TD><STRONG>Number</STRONG></TD>
<TD><STRONG>Exhibit</STRONG></TD></TR>
<TR VALIGN="TOP"><TD>99</TD>
<TD>Press release, dated May 2, 2005</TD></TR></TABLE>

<BR WP="BR1"><BR WP="BR2">
<BR WP="BR1"><BR WP="BR2">
<P ALIGN="CENTER"><FONT SIZE="-2"></FONT><FONT SIZE="-1">EXHIBIT 99</FONT></P>

<BR WP="BR1"><BR WP="BR2">
<TABLE WIDTH="100%">
<TR VALIGN="TOP"><TD><FONT FACE="Arial" SIZE="-2"></FONT><FONT FACE="Arial" SIZE="-2">For Release: May 2, 2005											</FONT><FONT FACE="Arial" SIZE="+2"><STRONG></STRONG></FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT FACE="Arial" SIZE="+2"><STRONG></STRONG></FONT><FONT FACE="Arial" SIZE="-2">Contact: Gerald Coggin, Senior VP of Corporate Relations</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT FACE="Arial" SIZE="-2">Phone: (615) 890-9100</FONT></TD></TR></TABLE>

<P><FONT FACE="Tms Rmn"></FONT><FONT FACE="Times New Roman" SIZE="+3"></FONT><FONT FACE="Arial" SIZE="+3">NHI reports first quarter income</FONT></P>

<P><FONT FACE="Tms Rmn" SIZE="+3"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Tms Rmn" SIZE="+3"></FONT><FONT FACE="Arial">MURFREESBORO, Tenn. -- National Health Investors, Inc., (NYSE: NHI) announced income from continuing
operations for the first quarter ended March 31, 2005 of $16,127,000 or 58 cents per basic and diluted share of
common stock compared to $13,618,000 or 49 cents per basic and diluted share of common stock for the same
period in 2004.  </FONT></P>

<P><FONT FACE="Arial">	Funds from operations, ("FFO") from continuing operations for the first quarter ended March 31, 2005 was
$18,902,000 or 69 cents per basic and $18,930,000, or 68 cents per diluted share of common stock compared
to $16,406,000 or 61 cents per basic and $16,438,000 or 59 cents per diluted share of common stock in 2004. </FONT></P>

<P><FONT FACE="Tms Rmn" SIZE="+3"></FONT><FONT FACE="Arial">Income and FFO from continuing operations for the first quarter of 2005 includes $4,522,000 or 16 cents per
basic and diluted share of common stock related to non-recurring income.  This non-recurring income is
attributable to security sale recoveries and gains of $9,072,000, less impairment writedowns of $4,550,000 on
realty and mortgage notes receivable.  </FONT></P>

<P><FONT FACE="Arial">Income and FFO from continuing operations for the first quarter of 2004 included $2,657,000 or 10 cents per
basic and diluted share of common stock related to non-recurring income attributable to security sale recoveries
and gains and loan recoveries.</FONT></P>

<P><FONT FACE="Arial">Accomplishments during the first quarter included:  the investment of approximately $27,500,000 in mortgages
receivable and real property; the repayment of approximately $34,500,000 of debt; improved liquidity as a result
of cash and marketable securities of $142,685,000 exceeding total debt outstanding of $121,010,000 and; a debt
to capitalization ratio of 22.3%, the lowest in our 13 year history.  </FONT></P>

<P><FONT FACE="Arial">NHI specializes in the financing of health care real estate by first mortgage and by purchase and leaseback
transactions. The common stock of the company trades on the New York Stock Exchange with the symbol NHI.
Additional information including NHI's most recent press releases may be obtained on our web site at
</FONT><FONT SIZE="+3"></FONT><FONT SIZE="+3" COLOR="#0000ff"><U></U></FONT><FONT FACE="Arial" COLOR="#0000ff"><U>www.nhinvestors.com</U></FONT><FONT FACE="Arial">.</FONT></P>

<P><FONT FACE="Tms Rmn"></FONT><FONT FACE="Futura MdCn BT"></FONT><FONT FACE="Arial" SIZE="-1"><EM>Statements in this press release that are not historical facts are forward-looking statements. NHI cautions investors that any forward-looking statements made involve risks and uncertainties and are not guarantees of future performance. All forward-looking statements
represent NHI's judgment as of the date of this release</EM>. <STRONG></STRONG></FONT></P>

<P><FONT FACE="Tms Rmn"><STRONG></STRONG></FONT><FONT FACE="Helvetica-Narrow" SIZE="-2"><U></U></FONT><FONT FACE="Arial"><U>-More-</U></FONT></P>

<P><FONT FACE="Tms Rmn"></FONT><FONT FACE="Helvetica-Narrow" SIZE="-1"><STRONG></STRONG></FONT><FONT FACE="Helvetica-Narrow" SIZE="-2"><STRONG><U></U></STRONG></FONT><FONT FACE="Helvetica-Narrow" SIZE="-2"><U></U></FONT><FONT FACE="Arial"><U></U></FONT><FONT FACE="Arial" SIZE="-1"><U>Page 2 NHI's first quarter income</U></FONT></P>

<BR WP="BR1"><BR WP="BR2">
<TABLE WIDTH="100%">
<TR VALIGN="TOP"><TD><FONT FACE="Helvetica-Narrow" SIZE="-1"></FONT><FONT SIZE="+3"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial">Condensed Statements of Income</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD></TR></TABLE>

<TABLE WIDTH="100%">
<TR VALIGN="TOP"><TD></FONT><FONT FACE="Arial" SIZE="-1"><U></U></FONT><FONT FACE="Arial" SIZE="-1"><U></U></FONT><FONT FACE="Arial" SIZE="-1"><U></U></FONT><FONT FACE="Arial" SIZE="-1"><U></U></FONT><FONT FACE="Arial" SIZE="-1"><U></U></FONT><FONT FACE="Tms Rmn" SIZE="-1">(in thousands, except share and per share amounts)</EM></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Tms Rmn" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></TD></TR></TABLE>

<TABLE WIDTH="100%">
<TR VALIGN="TOP"><TD></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">Three Months Ended March 31</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD></TR></TABLE>

<TABLE WIDTH="100%">
<TR VALIGN="TOP"><TD></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">Revenues:</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">2005</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">2004</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD></TR>
<TR VALIGN="TOP"><TD></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">	Mortgage interest income</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">$</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">3,907</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">$</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">4,851</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD></TR>
<TR VALIGN="TOP"><TD></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">	Rental income</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">11,538</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">12,120</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD></TR>
<TR VALIGN="TOP"><TD></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">	Facility operating revenue</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">22,629</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">20,400</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD></TR>
<TR VALIGN="TOP"><TD></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">38,074</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">37,371</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD></TR>
<TR VALIGN="TOP"><TD></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">Expenses:</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD></TR>
<TR VALIGN="TOP"><TD></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Tms Rmn" SIZE="-1">	Interest</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">2,470</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">3,120</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD></TR>
<TR VALIGN="TOP"><TD></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">	Depreciation</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">3,149</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">3,441</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD></TR>
<TR VALIGN="TOP"><TD></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">	Amortization of loan costs</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">72</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">37</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD></TR>
<TR VALIGN="TOP"><TD></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">      Legal expense</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">147</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">149</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD></TR>
<TR VALIGN="TOP"><TD></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">      Franchise and excise tax</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">67</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">70</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD></TR>
<TR VALIGN="TOP"><TD></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">	General and administrative</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">1,103</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">856</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD></TR>
<TR VALIGN="TOP"><TD></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">	Loan, realty and security losses (recoveries),</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">(472)</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">(1,989)</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD></TR>
<TR VALIGN="TOP"><TD></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">	Facility operating expense</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">21,365</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">20,202</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD></TR>
<TR VALIGN="TOP"><TD></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">27,901</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">25,886</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1"></TD></TR>
<TR VALIGN="TOP"><TD></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">Income Before Non-Operating Income</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">10,173</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">11,485</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD></TR>
<TR VALIGN="TOP"><TD></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">Non-operating income (investment interest &amp; other)</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">5,954</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">2,133</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD></TR>
<TR VALIGN="TOP"><TD></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">Income From Continuing Operations</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">16,127</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">13,618</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD></TR>
<TR VALIGN="TOP"><TD></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">Discontinued Operations:</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD></TR>
<TR VALIGN="TOP"><TD></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Tms Rmn"></FONT><FONT FACE="Tms Rmn"></FONT><FONT FACE="Arial" SIZE="-1">     Operating Loss - discontinued</FONT><FONT FACE="Tms Rmn"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">(81)</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">(183)</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD></TR>
<TR VALIGN="TOP"><TD></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">     Gain on sale of real estate</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">  748</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">---</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD></TR>
<TR VALIGN="TOP"><TD></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">667</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">(183)</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD></TR>
<TR VALIGN="TOP"><TD></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">Net Income</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">16,794</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">13,435</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD></TR>
<TR VALIGN="TOP"><TD></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">Dividends to preferred stockholders</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">---</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">397</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD></TR>
<TR VALIGN="TOP"><TD></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">Net income applicable to common stock</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">$</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"><U>16,794</U></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"><U></U>$</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"><U>13,038</U></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"><U></TD></TR>
<TR VALIGN="TOP"><TD></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD></TR></TABLE>

<TABLE WIDTH="100%">
<TR VALIGN="TOP"><TD></U></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">Income from continuing operations per common share:</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD></TR></TABLE>

<TABLE WIDTH="100%">
<TR VALIGN="TOP"><TD></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">         Basic</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">$</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">.58</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">$</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">.49</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD></TR>
<TR VALIGN="TOP"><TD></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">         Diluted</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">$</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">.58</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">$</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">.49</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD></TR>
<TR VALIGN="TOP"><TD></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">Discontinued operations per common share:</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD></TR>
<TR VALIGN="TOP"><TD></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Tms Rmn" SIZE="-1">         Basic</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">$</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">.03</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">$</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">---</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD></TR>
<TR VALIGN="TOP"><TD></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">         Diluted</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">$</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">.03</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">$</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">(.01)</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD></TR>
<TR VALIGN="TOP"><TD></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">Net income per common share:</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD></TR>
<TR VALIGN="TOP"><TD></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Tms Rmn" SIZE="-1">	Basic</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">$</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">.61</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">$</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">.49</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD></TR>
<TR VALIGN="TOP"><TD></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">	Diluted</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">$</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">.61</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">$</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">.48</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD></TR>
<TR VALIGN="TOP"><TD></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">Funds from operations</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD></TR>
<TR VALIGN="TOP"><TD></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Tms Rmn" SIZE="-1">	Basic</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">$</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">18,902</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">$</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">16,406</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD></TR>
<TR VALIGN="TOP"><TD></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">	Diluted</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">$</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">18,930</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">$</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">16,438</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD></TR>
<TR VALIGN="TOP"><TD></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">Funds from operations per common share</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD></TR>
<TR VALIGN="TOP"><TD></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Tms Rmn" SIZE="-1">	Basic</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">$</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">.69</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">$</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">.61</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD></TR>
<TR VALIGN="TOP"><TD></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">	Diluted</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">$</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">.68</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">$</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">.59</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD></TR>
<TR VALIGN="TOP"><TD></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">Weighted average common shares outstanding</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD></TR></TABLE>

<TABLE WIDTH="100%">
<TR VALIGN="TOP"><TD></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Tms Rmn" SIZE="-1">	Basic</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">27,580,665</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">26,782,468</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD></TR></TABLE>

<TABLE WIDTH="100%">
<TR VALIGN="TOP"><TD></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">	Diluted</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">27,774,954</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">27,071,585</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD></TR>
<TR VALIGN="TOP"><TD></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">      Diluted Shares for FFO purposes</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">27,774,954</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">27,748,503</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD></TR></TABLE>

<TABLE WIDTH="100%">
<TR VALIGN="TOP"><TD></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD></TR>
<TR VALIGN="TOP"><TD></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">Dividends per common share</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">$</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">.45</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">$</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">.425</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD></TR>
<TR VALIGN="TOP"><TD></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD></TR></TABLE>

<CENTER>
<TABLE ALIGN="CENTER" WIDTH="100%">
<TR VALIGN="TOP"><TD></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">Balance Sheet Data</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD></TR></TABLE>
</CENTER>

<CENTER>
<TABLE ALIGN="CENTER" WIDTH="100%">
<TR VALIGN="TOP"><TD></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">(in thousands)</EM></FONT><FONT FACE="Tms Rmn"></FONT></TD>
<TD><FONT FACE="Tms Rmn">
<P ALIGN="RIGHT"></FONT><FONT FACE="Times New Roman" SIZE="-1"><STRONG><U></U></STRONG></FONT><FONT FACE="Times New Roman" SIZE="-1"><U></U></FONT><FONT FACE="Arial" SIZE="-1">March 31</FONT><FONT FACE="Tms Rmn"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">December</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD></TR></TABLE>
</CENTER>

<CENTER>
<TABLE ALIGN="CENTER" WIDTH="100%">
<TR VALIGN="TOP"><TD></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">2005</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">2004</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">Real estate properties, net</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">$</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">267,454</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">$</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">278,170</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">Mortgages receivable, net</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">130,732</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">112,072</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">Preferred stock investment</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">38,132</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">38,132</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">Cash and marketable securities</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">142,685</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">190,313</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">Debt</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">119,962</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">154,432</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">Convertible debt</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">1,048</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">1,116</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">Stockholders' equity</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">420,441</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">425,539</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD></TR></TABLE>
</CENTER>
</P>
<BR WP="BR1"><BR WP="BR2">
<P ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">-More-</FONT><FONT FACE="Tms Rmn" SIZE="+3"></FONT><FONT FACE="Arial" SIZE="-1"></FONT></P>

<P><FONT FACE="Arial" SIZE="-1">Page 3 NHI's first quarter income</FONT></P>

<P><FONT FACE="Arial" SIZE="-1">Reconciliation of Funds From Operations <SUP>(1)(2)</SUP></FONT></P>

<P><FONT FACE="Arial" SIZE="-1">	The following table reconciles net income to funds from operations:</FONT></P>

<TABLE WIDTH="100%">
<TR VALIGN="TOP"><TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD></TR></TABLE>

<TABLE WIDTH="100%">
<TR VALIGN="TOP"><TD></TD>
<TD ALIGN="CENTER"><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">Three Months Ended March 31</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD></TR></TABLE>

<TABLE WIDTH="100%">
<TR VALIGN="TOP"><TD></TD>
<TD></TD>
<TD ALIGN="CENTER"><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">2005</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD><FONT FACE="Tms Rmn" SIZE="-1"></TD>
<TD ALIGN="CENTER"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">2004</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"><EM>(in thousands, except share and per share amounts)</EM></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD></TR>
<TR VALIGN="TOP"><TD></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD></TR>
<TR VALIGN="TOP"><TD></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Tms Rmn" SIZE="-1">Net income</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">$</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">16,794</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">$</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">13,435</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">Dividends to preferred stockholders</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">---</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">(397)</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT FACE="Tms Rmn" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD></TR>
<TR VALIGN="TOP"><TD></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Tms Rmn" SIZE="-1">Net income applicable to common stockholders</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">16,794</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">13,038</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">Elimination of non-cash items in net income:</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD></TR>
<TR VALIGN="TOP"><TD></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">     Real estate depreciation</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">2,834</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">2,893</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">     Real estate depreciation in discontinued operations</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">22</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">78</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">     Gain on sale of real estate</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">(748)</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">---</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">     Dividends to preferred stockholders, if dilutive</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">---</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">397</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">Basic funds from operations applicable to common stockholders</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">18,902</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">16,406</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT FACE="Tms Rmn" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD></TR>
<TR VALIGN="TOP"><TD></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Tms Rmn" SIZE="-1">Interest on convertible subordinated debentures</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">28</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">32</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT FACE="Tms Rmn" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD></TR>
<TR VALIGN="TOP"><TD></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Tms Rmn" SIZE="-1">Diluted funds from operations applicable to common stockholders</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">$</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">18,930</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">$</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">16,438</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT FACE="Tms Rmn" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD></TR>
<TR VALIGN="TOP"><TD></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Tms Rmn" SIZE="-1">Basic funds from operations per share</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">$</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">.69</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">$</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">.61</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">Diluted funds from operations per share</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">$</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">.68</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">$</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">.59</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT FACE="Tms Rmn" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD></TR>
<TR VALIGN="TOP"><TD></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Tms Rmn" SIZE="-1">Shares for basic funds from operations per share</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">27,580,665</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">26,782,468</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">Shares for diluted funds from operations per share</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">27,774,954</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">27,748,503</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD></TR></TABLE>

<BR WP="BR1"><BR WP="BR2">
<P><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"><EM><SUP>(1) </SUP>We believe that funds from operations is an important supplemental measure of operating performance for a real estate
investment trust.  Because the historical cost accounting convention used for real estate assets requires straight-line
depreciation (except on land), such accounting presentation implies that the value of real estate assets diminishes predictably
over time.  Since real estate values instead have historically risen and fallen with market conditions, presentations of operating
results for a real estate investment trust that uses historical cost accounting for depreciation could be less informative, and
should be supplemented with a measure such as FFO.  The term FFO was designed by the real estate investment trust
industry to address this issue.  Our measure may not be comparable to similarly titled measures used by other REITs.
Consequently, our funds from operations may not provide a meaningful measure of our performance as compared to that of
other REITs.  Since other REITs may not use our definition of FFO, caution should be exercised when comparing our
Company's FFO to that of other REITs.  Funds from operations in and of itself does not represent cash generated from
operating activities in accordance with GAAP (funds from operations does not include changes in operating assets and
liabilities) and therefore should not be considered an alternative to net earnings as an indication of operating performance, or
to net cash flow from operating activities as determined by GAAP in the United States, as a measure of liquidity and is not
necessarily indicative of cash available to fund cash needs.</EM></FONT></P>

<P><FONT FACE="Arial" SIZE="-1"><EM><SUP>(2)</SUP> We have complied with the SEC's interpretation that recurring impairments taken on real property may not be added back
to net income in the calculation of FFO.  The SEC's position is that recurring impairments on real property are not an
appropriate adjustment.  </EM></FONT></P>

<P ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1"></FONT><FONT SIZE="+3"></FONT><FONT FACE="Arial" SIZE="-1">-More-</FONT></P>

<BR WP="BR1"><BR WP="BR2">
<P><FONT FACE="Tms Rmn" SIZE="+3"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">Page 4 NHI's first quarter income</FONT></P>

<TABLE WIDTH="100%">
<TR VALIGN="TOP"><TD ALIGN="CENTER"><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">National Health Investors, Inc.         Portfolio Summary      March 31, 2005</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD></TR></TABLE>

<TABLE WIDTH="100%">
<TR VALIGN="TOP"><TD ALIGN="CENTER"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD></TR>
<TR VALIGN="TOP"><TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD></TR></TABLE>

<TABLE WIDTH="100%">
<TR VALIGN="TOP"><TD><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">Portfolio Statistics</FONT></TD>
<TD><FONT FACE="Arial" SIZE="-1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">Investment</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD></TR></TABLE>

<TABLE WIDTH="100%">
<TR VALIGN="TOP"><TD></TD>
<TD></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">Properties</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD><FONT FACE="Tms Rmn" SIZE="-1">&nbsp;</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">Investment</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD><FONT FACE="Tms Rmn" SIZE="-1">&nbsp;</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">Percentage</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT FACE="Tms Rmn" SIZE="-1"></TD>
<TD></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">Equity Ownership</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">94</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD><FONT FACE="Tms Rmn" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">270,004,000</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD><FONT FACE="Tms Rmn" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">64%</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT FACE="Tms Rmn" SIZE="-1"></TD>
<TD></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">Mortgage Loan Receivables</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">65</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD><FONT FACE="Tms Rmn" SIZE="-1">&nbsp;</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">132,732,000</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD><FONT FACE="Tms Rmn" SIZE="-1">&nbsp;</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">36%</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT FACE="Tms Rmn" SIZE="-1"></TD>
<TD></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">Total Real Estate Portfolio</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">159</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD><FONT FACE="Tms Rmn" SIZE="-1">&nbsp;</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">402,736,000</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD><FONT FACE="Tms Rmn" SIZE="-1">&nbsp;</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">100%</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT FACE="Tms Rmn" SIZE="-1"></TD>
<TD></TD>
<TD ALIGN="RIGHT"></TD>
<TD></TD>
<TD ALIGN="RIGHT"></TD>
<TD></TD>
<TD></TD></TR></TABLE>

<TABLE WIDTH="100%">
<TR VALIGN="TOP"><TD></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Tms Rmn" SIZE="-1">Equity Ownership</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">Properties</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD><FONT FACE="Tms Rmn" SIZE="-1">&nbsp;</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">Beds</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD><FONT FACE="Tms Rmn" SIZE="-1">&nbsp;</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">Investments</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD></TR></TABLE>

<TABLE WIDTH="100%">
<TR VALIGN="TOP"><TD></TD>
<TD><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">Nursing Home</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">70</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD><FONT FACE="Tms Rmn" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">9,366</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD><FONT FACE="Tms Rmn" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"> $       181,848,000 </FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT FACE="Tms Rmn" SIZE="-1"></TD>
<TD></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">Assisted Living</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">14</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD><FONT FACE="Tms Rmn" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">1,185</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD><FONT FACE="Tms Rmn" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">            59,267,000 </FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT FACE="Tms Rmn" SIZE="-1"></TD>
<TD></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">Medical Office Buildings</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">4</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD><FONT FACE="Tms Rmn" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">124,427 sq.ft.</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD><FONT FACE="Tms Rmn" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">            10,750,000 </FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT FACE="Tms Rmn" SIZE="-1"></TD>
<TD></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">Retirement Homes</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">5</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD><FONT FACE="Tms Rmn" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">426</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD><FONT FACE="Tms Rmn" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">            10,615,000 </FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT FACE="Tms Rmn" SIZE="-1"></TD>
<TD></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">Hospitals</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">1</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD><FONT FACE="Tms Rmn" SIZE="-1">&nbsp;</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">55</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD><FONT FACE="Tms Rmn" SIZE="-1">&nbsp;</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">             7,524,000 </FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT FACE="Tms Rmn" SIZE="-1"></TD>
<TD></TD>
<TD ALIGN="RIGHT"></TD>
<TD></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">94</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD><FONT FACE="Tms Rmn" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"> $       270,004,000 </FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT FACE="Tms Rmn" SIZE="-1"></TD>
<TD></TD>
<TD ALIGN="RIGHT"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD></TR></TABLE>

<TABLE WIDTH="100%">
<TR VALIGN="TOP"><TD></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">Mortgage Loan Receivables</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">Properties</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">&nbsp;</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">Beds</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">&nbsp;</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">Investments</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD></TR></TABLE>

<TABLE WIDTH="100%">
<TR VALIGN="TOP"><TD></TD>
<TD><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">Nursing Homes</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">46</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD><FONT FACE="Tms Rmn" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">5,005</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD><FONT FACE="Tms Rmn" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"> $       120,786,000 </FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT FACE="Tms Rmn" SIZE="-1"></TD>
<TD></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">Assisted Living</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">1</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD><FONT FACE="Tms Rmn" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">95</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD><FONT FACE="Tms Rmn" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">             5,500,000 </FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT FACE="Tms Rmn" SIZE="-1"></TD>
<TD></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">Retirement Homes</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">1</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD><FONT FACE="Tms Rmn" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">60</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD><FONT FACE="Tms Rmn" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">             2,041,000 </FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT FACE="Tms Rmn" SIZE="-1"></TD>
<TD></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">Developmentally Disabled</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">17</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD><FONT FACE="Tms Rmn" SIZE="-1">&nbsp;</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">108</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD><FONT FACE="Tms Rmn" SIZE="-1">&nbsp;</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">             4,405,000 </FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT FACE="Tms Rmn" SIZE="-1"></TD>
<TD></TD>
<TD ALIGN="RIGHT"></TD>
<TD></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">65</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD><FONT FACE="Tms Rmn" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"> $       132,732,000 </FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT FACE="Tms Rmn" SIZE="-1"></TD>
<TD></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">Remic II Investment</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">            </FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD><FONT FACE="Tms Rmn" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">459</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD><FONT FACE="Tms Rmn" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">              </FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT FACE="Tms Rmn" SIZE="-1"></TD>
<TD></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">Total Mortgage Portfolio</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">65</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD><FONT FACE="Tms Rmn" SIZE="-1"></TD>
<TD></TD>
<TD></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"> $       132,732,000 </FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT FACE="Tms Rmn" SIZE="-1"></TD>
<TD></TD>
<TD ALIGN="RIGHT"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD></TR></TABLE>

<TABLE WIDTH="100%">
<TR VALIGN="TOP"><TD></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">Summary of Facilities by Type:</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD></TR></TABLE>

<TABLE WIDTH="100%">
<TR VALIGN="TOP"><TD></TD>
<TD></TD>
<TD ALIGN="RIGHT"></TD>
<TD></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Tms Rmn" SIZE="-1">Percentage of</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD><FONT FACE="Tms Rmn" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">Total</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT FACE="Tms Rmn" SIZE="-1"></TD>
<TD></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">Properties</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD><FONT FACE="Tms Rmn" SIZE="-1">&nbsp;</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">Total Dollars</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD><FONT FACE="Tms Rmn" SIZE="-1">&nbsp;</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">Dollars</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT FACE="Tms Rmn" SIZE="-1"></TD>
<TD></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">Nursing Homes</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">116</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD><FONT FACE="Tms Rmn" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">75.14%</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD><FONT FACE="Tms Rmn" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"> $       302,634,000 </FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT FACE="Tms Rmn" SIZE="-1"></TD>
<TD></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">Assisted Living</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">15</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD><FONT FACE="Tms Rmn" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">16.08%</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD><FONT FACE="Tms Rmn" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">            64,767,000 </FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT FACE="Tms Rmn" SIZE="-1"></TD>
<TD></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">Medical Office Buildings</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">4</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD><FONT FACE="Tms Rmn" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">2.67%</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD><FONT FACE="Tms Rmn" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">            10,750,000 </FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT FACE="Tms Rmn" SIZE="-1"></TD>
<TD></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">Retirement Homes</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">6</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD><FONT FACE="Tms Rmn" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">3.14%</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD><FONT FACE="Tms Rmn" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">            12,656,000 </FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT FACE="Tms Rmn" SIZE="-1"></TD>
<TD></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">Hospitals</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">1</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD><FONT FACE="Tms Rmn" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">1.87%</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD><FONT FACE="Tms Rmn" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">             7,524,000 </FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT FACE="Tms Rmn" SIZE="-1"></TD>
<TD></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">Developmentally Disabled</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">17</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD><FONT FACE="Tms Rmn" SIZE="-1">&nbsp;</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">1.09%</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD><FONT FACE="Tms Rmn" SIZE="-1">&nbsp;</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">             4,405,000 </FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT FACE="Tms Rmn" SIZE="-1"></TD>
<TD></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">159</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD><FONT FACE="Tms Rmn" SIZE="-1">&nbsp;</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">100.00%</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD><FONT FACE="Tms Rmn" SIZE="-1">&nbsp;</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"> $       402,736,000 </FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD></TR></TABLE>

<BR WP="BR1"><BR WP="BR2">
<P><FONT FACE="Arial" SIZE="-1">Page 5 NHI's first quarter income</FONT></P>

<TABLE WIDTH="100%">
<TR VALIGN="TOP"><TD></TD>
<TD></TD>
<TD ALIGN="RIGHT"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD></TR></TABLE>

<TABLE WIDTH="100%">
<TR VALIGN="TOP"><TD><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Tms Rmn" SIZE="-1">Portfolio by Operator Type</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD></TR></TABLE>

<TABLE WIDTH="100%">
<TR VALIGN="TOP"><TD></TD>
<TD></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Tms Rmn" SIZE="-1"># of </FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD><FONT FACE="Tms Rmn" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">Percentage of </FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">Total </FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT FACE="Tms Rmn" SIZE="-1"></TD>
<TD></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">Properties</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD><FONT FACE="Tms Rmn" SIZE="-1">&nbsp;</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">Total Dollars</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">&nbsp;</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">Dollars</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT FACE="Tms Rmn" SIZE="-1"></TD>
<TD></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">Public</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">72</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD><FONT FACE="Tms Rmn" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">24.76%</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD><FONT FACE="Tms Rmn" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"> $         99,733,000 </FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT FACE="Tms Rmn" SIZE="-1"></TD>
<TD></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">Regional</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">80</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD><FONT FACE="Tms Rmn" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">70.64%</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD><FONT FACE="Tms Rmn" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">          284,496,000 </FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT FACE="Tms Rmn" SIZE="-1"></TD>
<TD></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">Small Operator</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">7</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD><FONT FACE="Tms Rmn" SIZE="-1">&nbsp;</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">4.60%</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD><FONT FACE="Tms Rmn" SIZE="-1">&nbsp;</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">            18,507,000 </FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT FACE="Tms Rmn" SIZE="-1"></TD>
<TD></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">159</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD><FONT FACE="Tms Rmn" SIZE="-1">&nbsp;</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">100.00%</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD><FONT FACE="Tms Rmn" SIZE="-1">&nbsp;</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"> $       402,736,000 </FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT FACE="Tms Rmn" SIZE="-1"></TD>
<TD></TD>
<TD ALIGN="RIGHT"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD></TR>
<TR VALIGN="TOP"><TD></TD>
<TD></TD>
<TD ALIGN="RIGHT"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD></TR>
<TR VALIGN="TOP"><TD></TD>
<TD></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">Public Operators</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1"></TD>
<TD></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">Percentage</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD><FONT FACE="Tms Rmn" SIZE="-1"></TD>
<TD></TD></TR>
<TR VALIGN="TOP"><TD></TD>
<TD></TD>
<TD ALIGN="RIGHT"></TD>
<TD></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Tms Rmn" SIZE="-1">Of Total</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">Dollar</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT FACE="Tms Rmn" SIZE="-1"></TD>
<TD></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Tms Rmn" SIZE="-1">&nbsp;</FONT></TD>
<TD><FONT FACE="Tms Rmn" SIZE="-1">&nbsp;</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">   Portfolio</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">&nbsp;</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">Amount</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT FACE="Tms Rmn" SIZE="-1"></TD>
<TD></TD>
<TD ALIGN="RIGHT"></TD>
<TD></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD></TR>
<TR VALIGN="TOP"><TD></TD>
<TD></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">National HealthCare Corp.</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1"></TD>
<TD></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">13.50%</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD><FONT FACE="Tms Rmn" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"> $         54,375,000 </FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT FACE="Tms Rmn" SIZE="-1"></TD>
<TD></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">Community Health Systems, Inc.</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1"></TD>
<TD></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">3.45%</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD><FONT FACE="Tms Rmn" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">            13,909,000 </FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT FACE="Tms Rmn" SIZE="-1"></TD>
<TD></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">Sunrise Senior Living Services</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1"></TD>
<TD></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">3.38%</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD><FONT FACE="Tms Rmn" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">            13,605,000 </FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT FACE="Tms Rmn" SIZE="-1"></TD>
<TD></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">Sun Healthcare</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1"></TD>
<TD></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">2.25%</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD><FONT FACE="Tms Rmn" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">             9,073,000 </FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT FACE="Tms Rmn" SIZE="-1"></TD>
<TD></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">Res-Care, Inc.</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1"></TD>
<TD></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">1.09%</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD><FONT FACE="Tms Rmn" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">             4,405,000 </FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT FACE="Tms Rmn" SIZE="-1"></TD>
<TD></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">HCA-The Healthcare Company
</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1">&nbsp;</FONT></TD>
<TD><FONT FACE="Tms Rmn" SIZE="-1">&nbsp;</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">1.08%</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD><FONT FACE="Tms Rmn" SIZE="-1">&nbsp;</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">             4,366,000 </FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT FACE="Tms Rmn" SIZE="-1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">24.76%</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD><FONT FACE="Tms Rmn" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"> $         99,733,000 </FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT FACE="Tms Rmn" SIZE="-1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD></TR>
<TR VALIGN="TOP"><TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD></TR>
<TR VALIGN="TOP"><TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD></TR></TABLE>

<P ALIGN="CENTER"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">- More -</FONT></P>

<BR WP="BR1"><BR WP="BR2">
<P><FONT FACE="Tms Rmn" SIZE="+3"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">Page 6 NHI's first quarter income</FONT></P>

<P ALIGN="CENTER"><FONT FACE="Tms Rmn" SIZE="+3"></FONT><FONT FACE="Arial" SIZE="-1">Summary of Facilities by State                  March 31, 2005</FONT></P>

<TABLE WIDTH="100%">
<TR VALIGN="TOP"><TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">Percent of</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT FACE="Tms Rmn" SIZE="-1"></TD>
<TD></TD>
<TD ALIGN="CENTER"></TD>
<TD ALIGN="CENTER"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">Acute </FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="CENTER"></FONT><FONT FACE="Arial" SIZE="-1">Dev.</FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1">Asst.</FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1">Retire-</FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="CENTER"></FONT><FONT FACE="Arial" SIZE="-1">Current</FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1">Total</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT FACE="Tms Rmn" SIZE="-1"></TD>
<TD></TD>
<TD ALIGN="CENTER"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">LTC</FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1">Care</FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1">MOB</FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1">Disab.</FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1">Living</FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1">Ment</FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1">Total</FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1">Amount</FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1">Portfolio</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">1</FONT></TD>
<TD><FONT FACE="Arial" SIZE="-1">Florida</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">17</FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="CENTER"></FONT><FONT FACE="Arial" SIZE="-1">1</FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1">14</FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1">6</FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="CENTER"></FONT><FONT FACE="Arial" SIZE="-1">38</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">     101,222,000 </FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">25.42%</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">2</FONT></TD>
<TD><FONT FACE="Arial" SIZE="-1">Texas</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">27</FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="CENTER"></FONT><FONT FACE="Arial" SIZE="-1">2</FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="CENTER"></TD>
<TD ALIGN="CENTER"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">1</FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1">30</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">       86,976,000 </FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">21.84%</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">3</FONT></TD>
<TD><FONT FACE="Arial" SIZE="-1">Tennessee</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">21</FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="CENTER"></TD>
<TD ALIGN="CENTER"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">3</FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1">3</FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1">2</FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1">29</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">       36,813,000 </FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">9.25%</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">4</FONT></TD>
<TD><FONT FACE="Arial" SIZE="-1">Missouri</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">9</FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="CENTER"></TD>
<TD ALIGN="CENTER"></TD>
<TD ALIGN="CENTER"></TD>
<TD ALIGN="CENTER"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">1</FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1">10</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">       26,534,000 </FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">6.66%</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">5</FONT></TD>
<TD><FONT FACE="Arial" SIZE="-1">New Jersey</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">2</FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="CENTER"></TD>
<TD ALIGN="CENTER"></TD>
<TD ALIGN="CENTER"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">1</FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="CENTER"></FONT><FONT FACE="Arial" SIZE="-1">3</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">       25,871,000 </FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">6.50%</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">6</FONT></TD>
<TD><FONT FACE="Arial" SIZE="-1">Virginia</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">8</FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="CENTER"></TD>
<TD ALIGN="CENTER"></TD>
<TD ALIGN="CENTER"></TD>
<TD ALIGN="CENTER"></TD>
<TD ALIGN="CENTER"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">8</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">       20,312,000 </FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">5.10%</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">7</FONT></TD>
<TD><FONT FACE="Arial" SIZE="-1">Arizona</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">1</FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="CENTER"></TD>
<TD ALIGN="CENTER"></TD>
<TD ALIGN="CENTER"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">4</FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="CENTER"></FONT><FONT FACE="Arial" SIZE="-1">5</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">       18,888,000 </FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">4.74%</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">8</FONT></TD>
<TD><FONT FACE="Arial" SIZE="-1">New Hampshire</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">3</FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="CENTER"></TD>
<TD ALIGN="CENTER"></TD>
<TD ALIGN="CENTER"></TD>
<TD ALIGN="CENTER"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">1</FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1">4</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">       15,376,000 </FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">3.86%</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">9</FONT></TD>
<TD><FONT FACE="Arial" SIZE="-1">Georgia</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">7</FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="CENTER"></TD>
<TD ALIGN="CENTER"></TD>
<TD ALIGN="CENTER"></TD>
<TD ALIGN="CENTER"></TD>
<TD ALIGN="CENTER"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">7</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">       14,973,000 </FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">3.76%</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">10</FONT></TD>
<TD><FONT FACE="Arial" SIZE="-1">Massachusetts</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">4</FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="CENTER"></TD>
<TD ALIGN="CENTER"></TD>
<TD ALIGN="CENTER"></TD>
<TD ALIGN="CENTER"></TD>
<TD ALIGN="CENTER"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">4</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">       11,315,000 </FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">2.84%</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">11</FONT></TD>
<TD><FONT FACE="Arial" SIZE="-1">Kansas</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">7</FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="CENTER"></TD>
<TD ALIGN="CENTER"></TD>
<TD ALIGN="CENTER"></TD>
<TD ALIGN="CENTER"></TD>
<TD ALIGN="CENTER"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">7</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">       11,226,000 </FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">2.82%</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">12</FONT></TD>
<TD><FONT FACE="Arial" SIZE="-1">Kentucky</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">3</FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1">1</FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="CENTER"></TD>
<TD ALIGN="CENTER"></TD>
<TD ALIGN="CENTER"></TD>
<TD ALIGN="CENTER"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">4</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">         9,186,000 </FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">2.31%</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">13</FONT></TD>
<TD><FONT FACE="Arial" SIZE="-1">South Carolina</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">3</FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="CENTER"></TD>
<TD ALIGN="CENTER"></TD>
<TD ALIGN="CENTER"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">1</FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="CENTER"></FONT><FONT FACE="Arial" SIZE="-1">4</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">         8,078,000 </FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">2.03%</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">14</FONT></TD>
<TD><FONT FACE="Arial" SIZE="-1">Idaho</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">1</FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="CENTER"></TD>
<TD ALIGN="CENTER"></TD>
<TD ALIGN="CENTER"></TD>
<TD ALIGN="CENTER"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">1</FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1">2</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">         5,492,000 </FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">1.38%</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">15</FONT></TD>
<TD><FONT FACE="Arial" SIZE="-1">Alabama</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">2</FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="CENTER"></TD>
<TD ALIGN="CENTER"></TD>
<TD ALIGN="CENTER"></TD>
<TD ALIGN="CENTER"></TD>
<TD ALIGN="CENTER"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">2</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">         2,285,000 </FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">0.57%</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">16</FONT></TD>
<TD><FONT FACE="Arial" SIZE="-1">Wisconsin</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">1</FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="CENTER"></TD>
<TD ALIGN="CENTER"></TD>
<TD ALIGN="CENTER"></TD>
<TD ALIGN="CENTER"></TD>
<TD ALIGN="CENTER"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">1</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">         2,071,000 </FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">0.52%</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">17</FONT></TD>
<TD><FONT FACE="Arial" SIZE="-1">Illinois</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">0</FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="CENTER"></FONT><FONT FACE="Arial" SIZE="-1">1</FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="CENTER"></TD>
<TD ALIGN="CENTER"></TD>
<TD ALIGN="CENTER"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">1</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">         1,568,000 </FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">0.39%</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT FACE="Tms Rmn" SIZE="-1"></TD>
<TD></TD>
<TD ALIGN="CENTER"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">116</FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1">1</FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1">4</FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1">17</FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1">15</FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1">6</FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1">159</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">     398,186,000 </FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">100.00%</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD></TR></TABLE>

<BR WP="BR1"><BR WP="BR2">
<P ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1"></FONT><FONT SIZE="+3"></FONT><FONT FACE="Arial" SIZE="-1">-30-</FONT></P>

</BODY>
</HTML>
[{"type": "8-K", "sequence": "1", "filename": "nhi305er.htm", "description": "FIRST QUARTER 2005 EARNINGS RELEASE", "secsgml_size_bytes": 111082}]
{"company-data": {"conformed-name": "NATIONAL HEALTH INVESTORS INC", "cik": "0000877860", "assigned-sic": "6798", "irs-number": "621470956", "state-of-incorporation": "MD", "fiscal-year-end": "1231"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "001-10822", "film-number": "05792572"}, "business-address": {"street1": "100 VINE ST STE 1400", "street2": "CITY CENTER", "city": "MURFREESBORO", "state": "TN", "zip": "37130", "phone": "6158909100"}, "mail-address": {"street1": "P.O. BOX 1102", "city": "MURFREESBORO", "state": "TN", "zip": "37133-1102"}}
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.  20549
FORM 8-K
CURRENT REPORT PURSUANT
TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): May 2, 2005 (May 2, 2005)
National Health Investors, Inc.
(Exact name of Registrant as specified in its charter)
Maryland
(State or Other Jurisdiction of Incorporation)
001-10822
62-1470956
(Commission File No.)
(IRS Employer
Identification Number)
100 Vine Street, Suite 1202
Murfreesboro, TN 37130
(Address of principal executive offices, including zip code)
(615) 890-9100
(Registrant's telephone number, including area code)
Not Applicable
(Former name or former address, if changed since last report)
Item 2.02 Results of Operations and Financial Condition.
On May 2, 2005, National Health Investors, Inc. issued a press release announcing its
2005 first quarter results.  A copy of the press release is filed an Exhibit 99 to this Current Report
on Form 8-K and is incorporated by reference herein.
SIGNATURES
Pursuant to the requirements of the Securities and Exchange Act of 1934, the registrant
has duly caused this report to be signed on its behalf by the undersigned hereunto duly
authorized.
National Health Investors, Inc.
By:
/s/ W. Andrew Adams
Name: W. Andrew Adams
Title: Chief Executive Officer
By:
/s/ Donald K. Daniel
Name:  Donald K. Daniel
Title: Principal Accounting Officer
Date: May 2, 2005
Exhibit Index
Number
Exhibit
99
Press release, dated May 2, 2005
EXHIBIT 99
For Release: May 2, 2005
Contact: Gerald Coggin, Senior VP of Corporate Relations
Phone: (615) 890-9100
NHI reports first quarter income
MURFREESBORO, Tenn. -- National Health Investors, Inc., (NYSE: NHI) announced income from continuing
operations for the first quarter ended March 31, 2005 of $16,127,000 or 58 cents per basic and diluted share of
common stock compared to $13,618,000 or 49 cents per basic and diluted share of common stock for the same
period in 2004.
Funds from operations, ("FFO") from continuing operations for the first quarter ended March 31, 2005 was
$18,902,000 or 69 cents per basic and $18,930,000, or 68 cents per diluted share of common stock compared
to $16,406,000 or 61 cents per basic and $16,438,000 or 59 cents per diluted share of common stock in 2004.
Income and FFO from continuing operations for the first quarter of 2005 includes $4,522,000 or 16 cents per
basic and diluted share of common stock related to non-recurring income.  This non-recurring income is
attributable to security sale recoveries and gains of $9,072,000, less impairment writedowns of $4,550,000 on
realty and mortgage notes receivable.
Income and FFO from continuing operations for the first quarter of 2004 included $2,657,000 or 10 cents per
basic and diluted share of common stock related to non-recurring income attributable to security sale recoveries
and gains and loan recoveries.
Accomplishments during the first quarter included:  the investment of approximately $27,500,000 in mortgages
receivable and real property; the repayment of approximately $34,500,000 of debt; improved liquidity as a result
of cash and marketable securities of $142,685,000 exceeding total debt outstanding of $121,010,000 and; a debt
to capitalization ratio of 22.3%, the lowest in our 13 year history.
NHI specializes in the financing of health care real estate by first mortgage and by purchase and leaseback
transactions. The common stock of the company trades on the New York Stock Exchange with the symbol NHI.
Additional information including NHI's most recent press releases may be obtained on our web site at
www.nhinvestors.com
.
Statements in this press release that are not historical facts are forward-looking statements. NHI cautions investors that any forward-looking statements made involve risks and uncertainties and are not guarantees of future performance. All forward-looking statements
represent NHI's judgment as of the date of this release
.
-More-
Page 2 NHI's first quarter income
Condensed Statements of Income
(in thousands, except share and per share amounts)
Three Months Ended March 31
Revenues:
2005
2004
Mortgage interest income
$
3,907
$
4,851
Rental income
11,538
12,120
Facility operating revenue
22,629
20,400
38,074
37,371
Expenses:
Interest
2,470
3,120
Depreciation
3,149
3,441
Amortization of loan costs
72
37
Legal expense
147
149
Franchise and excise tax
67
70
General and administrative
1,103
856
Loan, realty and security losses (recoveries),
(472)
(1,989)
Facility operating expense
21,365
20,202
27,901
25,886
Income Before Non-Operating Income
10,173
11,485
Non-operating income (investment interest & other)
5,954
2,133
Income From Continuing Operations
16,127
13,618
Discontinued Operations:
Operating Loss - discontinued
(81)
(183)
Gain on sale of real estate
748
---
667
(183)
Net Income
16,794
13,435
Dividends to preferred stockholders
---
397
Net income applicable to common stock
$
16,794
$
13,038
Income from continuing operations per common share:
Basic
$
.58
$
.49
Diluted
$
.58
$
.49
Discontinued operations per common share:
Basic
$
.03
$
---
Diluted
$
.03
$
(.01)
Net income per common share:
Basic
$
.61
$
.49
Diluted
$
.61
$
.48
Funds from operations
Basic
$
18,902
$
16,406
Diluted
$
18,930
$
16,438
Funds from operations per common share
Basic
$
.69
$
.61
Diluted
$
.68
$
.59
Weighted average common shares outstanding
Basic
27,580,665
26,782,468
Diluted
27,774,954
27,071,585
Diluted Shares for FFO purposes
27,774,954
27,748,503
Dividends per common share
$
.45
$
.425
Balance Sheet Data
(in thousands)
March 31
December
2005
2004
Real estate properties, net
$
267,454
$
278,170
Mortgages receivable, net
130,732
112,072
Preferred stock investment
38,132
38,132
Cash and marketable securities
142,685
190,313
Debt
119,962
154,432
Convertible debt
1,048
1,116
Stockholders' equity
420,441
425,539
-More-
Page 3 NHI's first quarter income
Reconciliation of Funds From Operations
(1)(2)
The following table reconciles net income to funds from operations:
Three Months Ended March 31
2005
2004
(in thousands, except share and per share amounts)
Net income
$
16,794
$
13,435
Dividends to preferred stockholders
---
(397)
Net income applicable to common stockholders
16,794
13,038
Elimination of non-cash items in net income:
Real estate depreciation
2,834
2,893
Real estate depreciation in discontinued operations
22
78
Gain on sale of real estate
(748)
---
Dividends to preferred stockholders, if dilutive
---
397
Basic funds from operations applicable to common stockholders
18,902
16,406
Interest on convertible subordinated debentures
28
32
Diluted funds from operations applicable to common stockholders
$
18,930
$
16,438
Basic funds from operations per share
$
.69
$
.61
Diluted funds from operations per share
$
.68
$
.59
Shares for basic funds from operations per share
27,580,665
26,782,468
Shares for diluted funds from operations per share
27,774,954
27,748,503
(1)
We believe that funds from operations is an important supplemental measure of operating performance for a real estate
investment trust.  Because the historical cost accounting convention used for real estate assets requires straight-line
depreciation (except on land), such accounting presentation implies that the value of real estate assets diminishes predictably
over time.  Since real estate values instead have historically risen and fallen with market conditions, presentations of operating
results for a real estate investment trust that uses historical cost accounting for depreciation could be less informative, and
should be supplemented with a measure such as FFO.  The term FFO was designed by the real estate investment trust
industry to address this issue.  Our measure may not be comparable to similarly titled measures used by other REITs.
Consequently, our funds from operations may not provide a meaningful measure of our performance as compared to that of
other REITs.  Since other REITs may not use our definition of FFO, caution should be exercised when comparing our
Company's FFO to that of other REITs.  Funds from operations in and of itself does not represent cash generated from
operating activities in accordance with GAAP (funds from operations does not include changes in operating assets and
liabilities) and therefore should not be considered an alternative to net earnings as an indication of operating performance, or
to net cash flow from operating activities as determined by GAAP in the United States, as a measure of liquidity and is not
necessarily indicative of cash available to fund cash needs.
(2)
We have complied with the SEC's interpretation that recurring impairments taken on real property may not be added back
to net income in the calculation of FFO.  The SEC's position is that recurring impairments on real property are not an
appropriate adjustment.
-More-
Page 4 NHI's first quarter income
National Health Investors, Inc.         Portfolio Summary      March 31, 2005
Portfolio Statistics
Investment
Properties
Investment
Percentage
Equity Ownership
94
270,004,000
64%
Mortgage Loan Receivables
65
132,732,000
36%
Total Real Estate Portfolio
159
402,736,000
100%
Equity Ownership
Properties
Beds
Investments
Nursing Home
70
9,366
$       181,848,000
Assisted Living
14
1,185
59,267,000
Medical Office Buildings
4
124,427 sq.ft.
10,750,000
Retirement Homes
5
426
10,615,000
Hospitals
1
55
7,524,000
94
$       270,004,000
Mortgage Loan Receivables
Properties
Beds
Investments
Nursing Homes
46
5,005
$       120,786,000
Assisted Living
1
95
5,500,000
Retirement Homes
1
60
2,041,000
Developmentally Disabled
17
108
4,405,000
65
$       132,732,000
Remic II Investment
459
Total Mortgage Portfolio
65
$       132,732,000
Summary of Facilities by Type:
Percentage of
Total
Properties
Total Dollars
Dollars
Nursing Homes
116
75.14%
$       302,634,000
Assisted Living
15
16.08%
64,767,000
Medical Office Buildings
4
2.67%
10,750,000
Retirement Homes
6
3.14%
12,656,000
Hospitals
1
1.87%
7,524,000
Developmentally Disabled
17
1.09%
4,405,000
159
100.00%
$       402,736,000
Page 5 NHI's first quarter income
Portfolio by Operator Type
# of
Percentage of
Total
Properties
Total Dollars
Dollars
Public
72
24.76%
$         99,733,000
Regional
80
70.64%
284,496,000
Small Operator
7
4.60%
18,507,000
159
100.00%
$       402,736,000
Public Operators
Percentage
Of Total
Dollar
Portfolio
Amount
National HealthCare Corp.
13.50%
$         54,375,000
Community Health Systems, Inc.
3.45%
13,909,000
Sunrise Senior Living Services
3.38%
13,605,000
Sun Healthcare
2.25%
9,073,000
Res-Care, Inc.
1.09%
4,405,000
HCA-The Healthcare Company
1.08%
4,366,000
24.76%
$         99,733,000
- More -
Page 6 NHI's first quarter income
Summary of Facilities by State                  March 31, 2005
Percent of
Acute
Dev.
Asst.
Retire-
Current
Total
LTC
Care
MOB
Disab.
Living
Ment
Total
Amount
Portfolio
1
Florida
17
1
14
6
38
101,222,000
25.42%
2
Texas
27
2
1
30
86,976,000
21.84%
3
Tennessee
21
3
3
2
29
36,813,000
9.25%
4
Missouri
9
1
10
26,534,000
6.66%
5
New Jersey
2
1
3
25,871,000
6.50%
6
Virginia
8
8
20,312,000
5.10%
7
Arizona
1
4
5
18,888,000
4.74%
8
New Hampshire
3
1
4
15,376,000
3.86%
9
Georgia
7
7
14,973,000
3.76%
10
Massachusetts
4
4
11,315,000
2.84%
11
Kansas
7
7
11,226,000
2.82%
12
Kentucky
3
1
4
9,186,000
2.31%
13
South Carolina
3
1
4
8,078,000
2.03%
14
Idaho
1
1
2
5,492,000
1.38%
15
Alabama
2
2
2,285,000
0.57%
16
Wisconsin
1
1
2,071,000
0.52%
17
Illinois
0
1
1
1,568,000
0.39%
116
1
4
17
15
6
159
398,186,000
100.00%
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