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<TABLE WIDTH="100%">
<TR VALIGN="TOP"><TD COLSPAN="3" ALIGN="CENTER"><FONT SIZE="+1"><STRONG>UNITED STATES</STRONG></FONT><FONT FACE="Arial"></FONT></TD></TR>
<TR VALIGN="TOP"><TD COLSPAN="3" ALIGN="CENTER"><FONT FACE="Arial"></FONT><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): January 30, 2004 (January 29, 2004)</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">
<P ALIGN="CENTER"><U>        333-41863        </U></TD>
<TD>
<P ALIGN="CENTER"><U>   62-1470956   </U></TD></TR>
<TR VALIGN="TOP"><TD COLSPAN="2">
<P 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">
<BR WP="BR1"><BR WP="BR2">
<P><STRONG>Item 12.  Results of Operations and Financial Condition</STRONG> </P>

<P>		On January 29, 2004, National Health Investors, Inc. made its year end earnings
announcement.  A copy of the press release is furnished as an exhibit to this Form 8-K and is
incorporated herein by reference.</P>

<BR WP="BR1"><BR WP="BR2">
<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>

<BR WP="BR1"><BR WP="BR2">
<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: January 30, 2004</TD>
<TD></TD></TR></TABLE>

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

<BR WP="BR1"><BR WP="BR2">
<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 January 29, 2004</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"></FONT><FONT FACE="Arial" SIZE="-1">EXHIBIT 99</FONT></P>

<BR WP="BR1"><BR WP="BR2">
<BR WP="BR1"><BR WP="BR2">
<P><FONT FACE="Arial" SIZE="-2">For Release: January 29, 2004</FONT></P>

<P><FONT FACE="Arial" SIZE="-2">Contact: Gerald Coggin VP and Dir. of Investor Relations</FONT></P>

<P><FONT FACE="Arial" SIZE="-2">Phone: (615) 890-9100</FONT><FONT FACE="Arial" SIZE="-1"></FONT></P>

<BR WP="BR1"><BR WP="BR2">
<P><FONT FACE="Arial"></FONT><FONT FACE="Arial" SIZE="+2"><STRONG>NHI announces 2003 year end results</STRONG></FONT><FONT FACE="Arial"></FONT></P>

<P><FONT FACE="Arial" SIZE="-1">		MURFREESBORO, Tenn. -- National Health Investors, Inc., (NYSE: NHI and NHIPr) announced income
from continuing operations for the year ended Dec. 31, 2003 of $43,624,000 or $1.57 per common share, basic and
$1.56 per common share, diluted, compared to income from continuing operations of $25,521,000 or 90 cents per
common share, basic and diluted for 2002.  </FONT></P>

<P><FONT FACE="Arial" SIZE="-1">		Net income for the year ended Dec. 31, 2003 was $43,808,000 or $1.58 per common share, basic and
$1.57 per common share, diluted, compared to net income of $30,787,000 or $1.10 per common share, basic and
diluted for 2002.</FONT></P>

<P><FONT FACE="Arial" SIZE="-1">		Funds from operations ("FFO") from continuing operations for the year ended Dec. 31, 2003 were
$57,088,000 or $2.14 per common share basic, and $57,237,000 or $2.12 per common share, diluted, compared to
$39,475,000 or $1.49 per common share, basic, and $39,776,000 or $1.48 per common share , diluted, for 2002.  </FONT></P>

<P><FONT FACE="Arial" SIZE="-1">		Income from continuing operations for the fourth quarter ended Dec. 31, 2003 was $9,927,000 or 35
cents per common and diluted share compared to a loss from continuing operations of $4,782,000 or 20 cents per
common share, basic and diluted for 2002.</FONT></P>

<P><FONT FACE="Arial" SIZE="-1">		Net income for the fourth quarter ended Dec. 31, 2003 was $9,817,000 or 35 cents per common share,
basic and diluted, compared to a net loss of $4,892,000 or 20 cents per common share, basic and diluted for 2002.</FONT></P>

<P><FONT FACE="Arial" SIZE="-1">		Funds from continuing operations for the fourth quarter ended Dec. 31, 2003 were $13,319,000 or 50
cents per common share basic, and $13,353,000 or 49 cents per common share, diluted, compared to funds applied to
operations of $1,179,000 or 4 cents per common share, basic and diluted for 2002.</FONT></P>

<P><FONT FACE="Arial" SIZE="-1">		Income and FFO during the quarter ended Dec. 31, 2003 included additional mortgage interest income
of $1,465,000 compared to the previous quarter from our real estate mortgage investment conduits.  Separately, NHI
recorded a loss of $2,000,000 on a first mortgage loan writedown.  The net effect of these items was a decline in income
and FFO of $535,000 or two cents per share, basic and diluted for the fourth quarter.  </FONT></P>

<P><FONT FACE="Arial" SIZE="-1">		"At December 31, 2003, cash and marketable securities totaled approximately 74% of total debt
outstanding," said President Andy Adams.  "Even with this unsurpassed liquidity, our debt to capitalization ratio declined
to 28.5%, the lowest level in our 12 year history."</FONT></P>

<P><FONT FACE="Arial" SIZE="-1">		NHI will hold its annual meeting on April 20 at 4:00 p.m. Central Time.  </FONT></P>

<P><FONT FACE="Arial" SIZE="-1">		NHI specializes in the financing of health care real estate by first mortgage and by purchase and
leaseback transactions. The common and preferred stocks of the company trade on the New York Stock Exchange with
the symbols NHI and NHIPr respectively.  Additional information including NHI's most recent press releases may be
obtained on our web site at </FONT><FONT FACE="Times New Roman"></FONT><FONT FACE="Times New Roman" COLOR="#0000ff"><U></U></FONT><FONT FACE="Arial" SIZE="-1" COLOR="#0000ff"><U>www.nhinvestors.com</U></FONT><FONT FACE="Arial" SIZE="-1">.</FONT></P>

<P><FONT FACE="Times New Roman"><EM>		</EM></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></FONT></P>

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

<P><FONT FACE="Arial" SIZE="-1">Page 2 NHI's year end results</FONT></P>

<BR WP="BR1"><BR WP="BR2">
<TABLE WIDTH="100%">
<TR VALIGN="TOP"><TD><FONT FACE="Times New Roman" SIZE="-1"></FONT><FONT FACE="Times New Roman" SIZE="-1"></FONT><FONT FACE="Arial">Condensed Statements of Income	</FONT><FONT FACE="Arial" SIZE="-1"><U></U></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"><U></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></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="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="Arial" SIZE="-1">(in thousands except share and per share</FONT><FONT FACE="Arial" SIZE="-1"></FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1">Three Months Ended December 31<U></U></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"><U></TD>
<TD ALIGN="CENTER"></U></FONT><FONT FACE="Arial" SIZE="-1">Year Ended December 31</FONT></TD></TR></TABLE>

<TABLE WIDTH="100%">
<TR VALIGN="TOP"><TD></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">2003</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">2002</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"><U></U></FONT><FONT FACE="Arial" SIZE="-1"><U></U></FONT><FONT FACE="Arial" SIZE="-1">2003</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">2002</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD></TR>
<TR VALIGN="TOP"><TD></FONT><FONT FACE="Arial" SIZE="-1">Revenues:</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></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="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">	Mortgage interest income</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">$</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">6,151</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">$</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">4,925</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">$</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">21,046</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">$</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">29,891</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD></TR>
<TR VALIGN="TOP"><TD></FONT><FONT FACE="Arial" SIZE="-1">	Rental income</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">11,934</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">11,690</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">56,243</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">47,737</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD></TR>
<TR VALIGN="TOP"><TD></FONT><FONT FACE="Arial" SIZE="-1">	Facility operating revenues</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">20,335</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">17,959</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">79,272</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">73,006</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD></TR>
<TR VALIGN="TOP"><TD></FONT><FONT FACE="Arial" SIZE="-1">	Investment interest and other</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">1,344</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">1,640</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">5,931</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">6,655</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD></TR>
<TR VALIGN="TOP"><TD></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">$</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"><U>39,764</U></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">$</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"><U>36,214</U></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">$</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"><U>162,492</U></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">$</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"><U>157,289</U></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD></TR>
<TR VALIGN="TOP"><TD></FONT><FONT FACE="Arial" SIZE="-1">Expenses:</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></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="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">	Interest</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">$</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">3,239</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">$</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">4,020</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">$</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">13,840</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">$</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">17,000</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD></TR>
<TR VALIGN="TOP"><TD></FONT><FONT FACE="Arial" SIZE="-1">	Depreciation of real estate</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">3,789</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">4,000</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">15,053</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">15,543</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD></TR>
<TR VALIGN="TOP"><TD></FONT><FONT FACE="Arial" SIZE="-1">	Amortization of loan costs</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>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">128</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">297</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">738</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD></TR>
<TR VALIGN="TOP"><TD></FONT><FONT FACE="Arial" SIZE="-1">	Facility operating expenses</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">19,210</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">18,266</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">76,132</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">72,017</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD></TR>
<TR VALIGN="TOP"><TD></FONT><FONT FACE="Arial" SIZE="-1">	Loan, realty &amp; security loss</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">2,234</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">13,555</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">9,134</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">23,055</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD></TR>
<TR VALIGN="TOP"><TD></FONT><FONT FACE="Arial" SIZE="-1">        Legal expense</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">286</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">152</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">729</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">652</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD></TR>
<TR VALIGN="TOP"><TD></FONT><FONT FACE="Arial" SIZE="-1">        Franchise and excise tax</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">20</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">(26)</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">548</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">337</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD></TR>
<TR VALIGN="TOP"><TD></FONT><FONT FACE="Arial" SIZE="-1">	General and administrative</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">1,022</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">901</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">3,135</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">2,426</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD></TR>
<TR VALIGN="TOP"><TD></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">$</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">29,837</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">$</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">40,996</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">$</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">118,868</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">$</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">131,768</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>
<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="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">Income (Loss) From Continuing Operations</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">$</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">9,927</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">$</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">(4,782)</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">$</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">43,624</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">$</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">25,521</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD></TR>
<TR VALIGN="TOP"><TD></FONT><FONT FACE="Arial" SIZE="-1">Discontinued Operations</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></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 COLSPAN="2"></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">     Operating Income (Loss) - Discontinued</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">(110)</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">(110)</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">(1,351)</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="Arial" SIZE="-1">     Net gain on sale of real estate</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>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">---</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">1,535</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">5,083</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD></TR>
<TR VALIGN="TOP"><TD></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">$</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">(110)</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">$</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">(110)</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">$</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">184</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">$</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">5,266</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>
<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="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">Net Income (Loss)</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">$</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">9,817</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">$</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">(4,892)</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">$</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">43,808</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">$</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">30,787</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD></TR>
<TR VALIGN="TOP"><TD></FONT><FONT FACE="Arial" SIZE="-1">Dividends to preferred stockholders</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1"><U>397</U></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1"><U>397</U></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"><U>1,589</U></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1"><U>1,589</U></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD></TR>
<TR VALIGN="TOP"><TD></FONT><FONT FACE="Arial" SIZE="-1">Net income (loss) applicable to common</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">$</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"><U>9,420</U></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">$</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"><U>(5,289)</U></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">$</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"><U>42,219</U></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">$</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"><U>29,198</U></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>
<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></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">Income (Loss) from continuing operations per common share	</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></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></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">	Basic</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">$</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">.35</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">$</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">(.20)</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">$</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">1.57</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">$</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">.90</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD></TR>
<TR VALIGN="TOP"><TD></FONT><FONT FACE="Arial" SIZE="-1">	Diluted</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">$</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">.35</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">$</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">(.20)</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">$</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">1.56</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">$</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">.90</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD></TR>
<TR VALIGN="TOP"><TD></FONT><FONT FACE="Arial" SIZE="-1">Discontinued operations per common</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></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="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">	Basic</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">$</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">.00</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">$</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">.00</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">$</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">.01</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">$</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">.20</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD></TR>
<TR VALIGN="TOP"><TD></FONT><FONT FACE="Arial" SIZE="-1">	Diluted</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">$</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">.00</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">$</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">.00</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">$</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">.01</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">$</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">.20</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD></TR>
<TR VALIGN="TOP"><TD></FONT><FONT FACE="Arial" SIZE="-1">Net income (loss) per common share</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></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="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">	Basic</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">$</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">.35</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">$</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">(.20)</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">$</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">1.58</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">$</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">1.10</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD></TR>
<TR VALIGN="TOP"><TD></FONT><FONT FACE="Arial" SIZE="-1">	Diluted</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">$</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">.35</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">$</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">(.20)</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">$</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">1.57</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">$</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">1.10</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>
<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="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">Funds from(to) operations</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></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="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">	Basic</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">$</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">13,319</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">$</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">(1,179)</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">$</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">57,088</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">$</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">39,475</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD></TR>
<TR VALIGN="TOP"><TD></FONT><FONT FACE="Arial" SIZE="-1">	Diluted</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">$</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">13,353</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">$</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">(1,179)</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">$</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">57,237</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">$</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">39,776</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD></TR>
<TR VALIGN="TOP"><TD COLSPAN="3"></FONT><FONT FACE="Arial" SIZE="-1">Funds from (to) operations per common share	<STRONG></STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></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="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">	Basic</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">$</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">.50</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">$</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">(.04)</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">$</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">2.14</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">$</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">1.49</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD></TR>
<TR VALIGN="TOP"><TD></FONT><FONT FACE="Arial" SIZE="-1">	Diluted</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">$</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">.49</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">$</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">(.04)</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">$</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">2.12</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">$</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">1.48</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD></TR>
<TR VALIGN="TOP"><TD COLSPAN="3"></FONT><FONT FACE="Arial" SIZE="-1">Weighted average common shares outstanding	<STRONG></STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></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></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">	Basic</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">26,766,300</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">26,648,319</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">26,727,814</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">26,453,053</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD></TR></TABLE>

<TABLE WIDTH="100%">
<TR VALIGN="TOP"><TD></FONT><FONT FACE="Arial" SIZE="-1">	Diluted</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">27,026,532</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">26,648,31</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">26,985,571</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">26,853,420</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>
<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="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">Dividends per common share</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">$</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">.50</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">$</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">.35</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">$</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">1.70</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">$</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">1.40</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>
<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="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">Balance Sheet Data</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></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></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">(in thousands)</FONT><FONT FACE="Times New Roman" SIZE="-1"><STRONG><U></U></STRONG></FONT><FONT FACE="Times New Roman" SIZE="-1"><U></U></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE="-1"><U></U>Dec. 31</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">Dec. 31</FONT></TD></TR></TABLE>

<TABLE WIDTH="100%">
<TR VALIGN="TOP"><TD></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">2003</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">2002</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD></TR>
<TR VALIGN="TOP"><TD></FONT><FONT FACE="Arial" SIZE="-1">Real estate properties, net</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">$</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">289,465</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">$</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">304,394</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD></TR>
<TR VALIGN="TOP"><TD></FONT><FONT FACE="Arial" SIZE="-1">Mortgages receivable, net</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">149,892</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">201,236</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD></TR>
<TR VALIGN="TOP"><TD></FONT><FONT FACE="Arial" SIZE="-1">Preferred stock investment</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></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></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD></TR>
<TR VALIGN="TOP"><TD></FONT><FONT FACE="Arial" SIZE="-1">REMIC investments</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">16,043</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">36,366</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD></TR>
<TR VALIGN="TOP"><TD></FONT><FONT FACE="Arial" SIZE="-1">Cash and marketable securities</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">120,522</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">58,825</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD></TR>
<TR VALIGN="TOP"><TD></FONT><FONT FACE="Arial" SIZE="-1">Debt and credit facilities</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">162,100</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">161,763</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD></TR>
<TR VALIGN="TOP"><TD></FONT><FONT FACE="Arial" SIZE="-1">Convertible debt</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">1,351</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">41,633</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD></TR>
<TR VALIGN="TOP"><TD></FONT><FONT FACE="Arial" SIZE="-1">Stockholders' equity</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">409,644</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">400,429</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD></TR></TABLE>

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

<P><FONT FACE="Arial" SIZE="-1">Page3 NHI's Year End Results</FONT></P>

<BR WP="BR1"><BR WP="BR2">
<P><FONT FACE="Arial" SIZE="-1">Reconciliation of Funds From Operations <SUP>(1)</SUP></FONT></P>

<BR WP="BR1"><BR WP="BR2">
<P><FONT FACE="Arial" SIZE="-1">	The following table reconciles net income applicable to common stockholders to funds from operations applicable to common
stockholders:</FONT></P>

<BR WP="BR1"><BR WP="BR2">
<P><FONT FACE="Arial" SIZE="-1">(in thousands, except share and per share amounts)</FONT></P>

<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>
<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></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial"></FONT><FONT FACE="Arial"></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">Three Months Ended Dec.</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="CENTER"><U></U></FONT><FONT FACE="Arial" SIZE="-1"><U></U></FONT><FONT FACE="Arial" SIZE="-1">Year Ended Dec. 31</FONT></TD></TR></TABLE>

<TABLE WIDTH="100%">
<TR VALIGN="TOP"><TD></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">2003</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">2002</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"><U></U></FONT><FONT FACE="Arial" SIZE="-1"><U></U></FONT><FONT FACE="Arial" SIZE="-1">2003</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">2002</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></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="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">Net income  (loss) applicable to common</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">$</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">9,420</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">$</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">(5,289)</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">$</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">42,219</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">$</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">29,198</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT FACE="Arial" SIZE="-1">Adjustments:</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></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="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">	Real estate depreciation</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">3,789</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">4,000</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">15,053</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">15,543</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT FACE="Arial" SIZE="-1">Other Items:</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></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="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">	Discontinued operations:</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></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="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">      		Operating (Income) loss  - discontinued</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">110</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">110</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">1,351</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">(183)</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT FACE="Arial" SIZE="-1">       		(Gain) loss on sale of real estate</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>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">---</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">(1,535)</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">(5,083)</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT FACE="Arial" SIZE="-1">Basic funds from (to) operations applicable to</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></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="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">	common stockholders</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">13,319</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">(1,179)</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">57,088</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">39,475</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></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="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">Interest on convertible subordinated debentures</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">34</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>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">149</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">301</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></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="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">Diluted funds from (to) operations applicable to</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></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="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">	common stockholders</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">$</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">13,353</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">$</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">(1,179)</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">$</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">57,237</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">$</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">39,776</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></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="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">Basic funds from (to) operations per share</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">$</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">.50</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">$</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">(.04)</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">$</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">2.14</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">$</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">1.49</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT FACE="Arial" SIZE="-1">Diluted funds from (to) operations per share</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">$</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">.49</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">$</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">(.04)</FONT></TD>
<TD><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">$</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">2.12</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">$</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">1.48</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<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="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">Shares for basic funds from operations per share</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">26,766,300</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">26,648,319</FONT></TD>
<TD><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">26,727,814</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">26,453,053</FONT></TD></TR></TABLE>

<TABLE WIDTH="100%">
<TR VALIGN="TOP"><TD><FONT FACE="Arial" SIZE="-1">Shares for diluted funds from operations per share</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">27,026,532</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">26,648,319</FONT></TD>
<TD><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">26,985,571</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">26,853,420</FONT></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></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD></TR></TABLE>

<BR WP="BR1"><BR WP="BR2">
<BR WP="BR1"><BR WP="BR2">
<P><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"></FONT>(1) </SUP>We believe that funds from operations is an important supplemental measure of operating performance.  We,
therefore, disclose funds from operations, although it is a measurement that is not defined by accounting principles
generally accepted in the United States.  We generally use the National Association of Real Estate Investment Trusts
(NAREIT) measure of funds from operations.  We define funds from operations as income before extraordinary items
adjusted for certain non-cash items, primarily real estate depreciation, less gains/losses on sales of facilities.  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.  Funds from
operations does not represent cash generated from operating activities as defined by accounting principles generally
accepted in the United States (funds from operations does not include changes in operating assets and liabilities) and,
therefore, should not be considered as an alternative to net income as the primary indicator of operating performance or
to cash flow as a measure of liquidity.  </FONT></P>

<BR WP="BR1"><BR WP="BR2">
<P><FONT FACE="Arial" SIZE="-1"><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.</FONT></P>

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

<P><FONT FACE="Arial" SIZE="-1">Page 4 NHI's Year End Results</FONT></P>

<P><FONT FACE="Arial" SIZE="-1">
<TABLE WIDTH="100%"></FONT>
<TR VALIGN="TOP"><TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1">National Health Investors, Inc.  Portfolio Summary  December 31, 2003</FONT></P>

<BR WP="BR1"><BR WP="BR2"></TD></TR></TABLE>

<TABLE WIDTH="100%">
<TR VALIGN="TOP"><TD><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="Arial" SIZE="-1">Investment</FONT>

<P><FONT FACE="Arial" SIZE="-1">Percentage</FONT></TD></TR></TABLE>

<TABLE WIDTH="100%">
<TR VALIGN="TOP"><TD></TD>
<TD></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">Properties</FONT></TD>
<TD><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">Investment</FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1"></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="Arial" SIZE="-1">Equity Ownership</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">94</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">289,465,000</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">64%</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT FACE="Arial" SIZE="-1"></TD>
<TD></FONT><FONT FACE="Arial" SIZE="-1">Mortgage Loan Receivables</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">73</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">161,342,000</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">36%</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT FACE="Arial" SIZE="-1"></TD>
<TD></FONT><FONT FACE="Arial" SIZE="-1">Total Real Estate Portfolio</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">167</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">&nbsp;</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">   450,807,000</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">&nbsp;</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">100%</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT FACE="Arial" SIZE="-1"></TD>
<TD></TD>
<TD ALIGN="CENTER"></TD>
<TD ALIGN="CENTER"></TD>
<TD ALIGN="CENTER"></TD>
<TD ALIGN="CENTER"></TD>
<TD ALIGN="CENTER"></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="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">Equity Ownership</FONT></TD>
<TD ALIGN="RIGHT"><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></TD></TR></TABLE>

<TABLE WIDTH="100%">
<TR VALIGN="TOP"><TD></TD>
<TD><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">Nursing Homes</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">68</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">9,142</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">$</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"> 186,110,000 </FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT FACE="Arial" SIZE="-1"></TD>
<TD></FONT><FONT FACE="Arial" SIZE="-1">Assisted Living</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">16</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">1,350</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">        72,701,000 </FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT FACE="Arial" SIZE="-1"></TD>
<TD></FONT><FONT FACE="Arial" SIZE="-1">Medical Office Buildings</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">4</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">124,427 sq.ft.</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">        11,335,000 </FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT FACE="Arial" SIZE="-1"></TD>
<TD></FONT><FONT FACE="Arial" SIZE="-1">Retirement Homes</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">5</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">471</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">        11,334,000 </FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT FACE="Arial" SIZE="-1"></TD>
<TD></FONT><FONT FACE="Arial" SIZE="-1">Hospitals</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">1</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">&nbsp;</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">55</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">&nbsp;</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">          7,985,000 </FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT FACE="Arial" SIZE="-1"></TD>
<TD></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">94</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></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">   289,465,000 </FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT FACE="Arial" SIZE="-1"></TD>
<TD></TD>
<TD></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="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">Mortgage Loan Receivables</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">Properties</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">Beds</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">Investments</FONT></TD></TR></TABLE>

<TABLE WIDTH="100%">
<TR VALIGN="TOP"><TD></TD>
<TD><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">Nursing Homes</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">50</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">5,512</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">$</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">132,376,000 </FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT FACE="Arial" SIZE="-1"></TD>
<TD></FONT><FONT FACE="Arial" SIZE="-1">Assisted Living</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">2</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">156</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">          6,164,000 </FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT FACE="Arial" SIZE="-1"></TD>
<TD></FONT><FONT FACE="Arial" SIZE="-1">Retirement Homes</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">1</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">60</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">          2,185,000 </FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT FACE="Arial" SIZE="-1"></TD>
<TD></FONT><FONT FACE="Arial" SIZE="-1">Developmentally Disabled</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">17</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">108</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">          4,574,000 </FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT FACE="Arial" SIZE="-1"></TD>
<TD></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">70</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">&nbsp;</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">&nbsp;</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"> $</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">145,299,000 </FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT FACE="Arial" SIZE="-1"></TD>
<TD></FONT><FONT FACE="Arial" SIZE="-1">Remic</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">3</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">390</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">        9,697,000 </FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT FACE="Arial" SIZE="-1"></TD>
<TD></FONT><FONT FACE="Arial" SIZE="-1">Remic II Investment</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">&nbsp;</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">2,313</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">          6,346,000 </FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT FACE="Arial" SIZE="-1"></TD>
<TD></FONT><FONT FACE="Arial" SIZE="-1">Total Mortgage Portfolio</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">73</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">$</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">      161,342,000 </FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT FACE="Arial" SIZE="-1"></TD>
<TD></TD>
<TD></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="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">Summary of Facilities by Type:</FONT></TD>
<TD><FONT FACE="Arial" 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="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"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">Percentage of</FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="CENTER"></FONT><FONT FACE="Arial" SIZE="-1">Total </FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT FACE="Arial" SIZE="-1"></TD>
<TD></TD>
<TD ALIGN="CENTER"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">Properties</FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1">&nbsp;</FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1">Total Dollars</FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1">&nbsp;</FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1">Dollars</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT FACE="Arial" SIZE="-1"></TD>
<TD></FONT><FONT FACE="Arial" SIZE="-1">Nursing Homes</FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1">121</FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="CENTER"></FONT><FONT FACE="Arial" SIZE="-1">74.21%</FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1">$</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"> 334,529,000</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT FACE="Arial" SIZE="-1"></TD>
<TD></FONT><FONT FACE="Arial" SIZE="-1">Assisted Living</FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1">18</FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="CENTER"></FONT><FONT FACE="Arial" SIZE="-1">17.49%</FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">        78,865,000 </FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT FACE="Arial" SIZE="-1"></TD>
<TD></FONT><FONT FACE="Arial" SIZE="-1">Medical Office Buildings</FONT></TD>
<TD ALIGN="CENTER"><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">2.51%</FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">        11,335,000 </FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT FACE="Arial" SIZE="-1"></TD>
<TD></FONT><FONT FACE="Arial" SIZE="-1">Retirement Homes</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">3.00%</FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">        13,519,000 </FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT FACE="Arial" SIZE="-1"></TD>
<TD></FONT><FONT FACE="Arial" SIZE="-1">Hospitals</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"></FONT><FONT FACE="Arial" SIZE="-1">1.77%</FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">          7,985,000 </FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT FACE="Arial" SIZE="-1"></TD>
<TD></FONT><FONT FACE="Arial" SIZE="-1">Developmentally Disabled</FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1">17</FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1">&nbsp;</FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1">1.01%</FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1">&nbsp;</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">          4,574,000 </FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT FACE="Arial" SIZE="-1"></TD>
<TD></TD>
<TD ALIGN="CENTER"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">167</FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1">&nbsp;</FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1">100.00%</FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1">&nbsp;$</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">450,807,000 </FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT FACE="Arial" SIZE="-1"></TD>
<TD></TD>
<TD ALIGN="CENTER"></TD>
<TD ALIGN="CENTER"></TD>
<TD ALIGN="CENTER"></TD>
<TD ALIGN="CENTER"></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="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 by Operator Type</FONT></TD>
<TD><FONT FACE="Arial" SIZE="-1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD></TR>
<TR VALIGN="TOP"><TD></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"></FONT><FONT FACE="Arial" SIZE="-1"># of</FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1">&nbsp;</FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1">Percentage of</FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1">&nbsp;</FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1">Total</FONT></TD></TR></TABLE>

<TABLE WIDTH="100%">
<TR VALIGN="TOP"><TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD></TR>
<TR VALIGN="TOP"><TD></TD>
<TD><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"></FONT>Public</FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1">98</FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="CENTER"></FONT><FONT FACE="Arial" SIZE="-1">47.79%</FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1">$</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"> 215,443,000 </FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT FACE="Arial" SIZE="-1"></TD>
<TD></FONT><FONT FACE="Arial" SIZE="-1">Regional</FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1">56</FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="CENTER"></FONT><FONT FACE="Arial" SIZE="-1">43.58%</FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">      196,455,000 </FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT FACE="Arial" SIZE="-1"></TD>
<TD></FONT><FONT FACE="Arial" SIZE="-1">Small Operator</FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1">13</FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1">&nbsp;</FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1">8.63%</FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1">&nbsp;</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">        38,909,000 </FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT FACE="Arial" SIZE="-1"></TD>
<TD></TD>
<TD ALIGN="CENTER"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">167</FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1">&nbsp;</FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1">100.00%</FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1">$&nbsp;</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"> 450,807,000 </FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT FACE="Arial" SIZE="-1"></TD>
<TD></TD>
<TD ALIGN="CENTER"></TD>
<TD ALIGN="CENTER"></TD>
<TD ALIGN="CENTER"></TD>
<TD ALIGN="CENTER"></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="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">Public Operators:</FONT></TD></TR></TABLE>

<TABLE WIDTH="100%">
<TR VALIGN="TOP"><TD></TD>
<TD ALIGN="CENTER"></TD>
<TD ALIGN="CENTER"></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">Percentage</FONT></P>

<P><FONT FACE="Arial" SIZE="-1">Of Total</FONT></P>

<P><FONT FACE="Arial" SIZE="-1">Portfolio</FONT></TD>
<TD><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="CENTER"></FONT><FONT FACE="Arial" SIZE="-1">Dollar</FONT></P>

<P><FONT FACE="Arial" SIZE="-1">Amount</FONT></TD></TR></TABLE>

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

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

<TABLE WIDTH="100%">
<TR VALIGN="TOP"><TD></TD>
<TD><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"></FONT>National HealthCare Corp.</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="CENTER"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">13.41%</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">$</FONT></TD>
<TD><FONT FACE="Arial" SIZE="-1">      60,457,000 </FONT></TD>
<TD><FONT FACE="Arial" SIZE="-1"></TD></TR>
<TR VALIGN="TOP"><TD></TD>
<TD></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">National Health Investors, Inc.</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD></TD>
<TD ALIGN="CENTER"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">5.04%</FONT></TD>
<TD><FONT FACE="Arial" SIZE="-1"></TD>
<TD></FONT><FONT FACE="Arial" SIZE="-1">      22,735,000 </FONT></TD>
<TD><FONT FACE="Arial" SIZE="-1"></TD></TR>
<TR VALIGN="TOP"><TD></TD>
<TD></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">Community Health Systems, Inc.</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD></TD>
<TD ALIGN="CENTER"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">3.26%</FONT></TD>
<TD><FONT FACE="Arial" SIZE="-1"></TD>
<TD></FONT><FONT FACE="Arial" SIZE="-1">      14,676,000</FONT></TD>
<TD><FONT FACE="Arial" SIZE="-1"></TD></TR>
<TR VALIGN="TOP"><TD></TD>
<TD></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">Sunrise Senior Living Services</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD></TD>
<TD ALIGN="CENTER"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">3.13%</FONT></TD>
<TD><FONT FACE="Arial" SIZE="-1"></TD>
<TD></FONT><FONT FACE="Arial" SIZE="-1">      14,132,000</FONT></TD>
<TD><FONT FACE="Arial" SIZE="-1"></TD></TR>
<TR VALIGN="TOP"><TD></TD>
<TD></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">Mariner Post Acute Network</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD></TD>
<TD ALIGN="CENTER"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">2.48%</FONT></TD>
<TD><FONT FACE="Arial" SIZE="-1"></TD>
<TD></FONT><FONT FACE="Arial" SIZE="-1">      11,197,000</FONT></TD>
<TD><FONT FACE="Arial" SIZE="-1"></TD></TR>
<TR VALIGN="TOP"><TD></TD>
<TD></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">Sun Healthcare</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD></TD>
<TD ALIGN="CENTER"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">2.10%</FONT></TD>
<TD><FONT FACE="Arial" SIZE="-1"></TD>
<TD></FONT><FONT FACE="Arial" SIZE="-1">        9,454,000 </FONT></TD>
<TD><FONT FACE="Arial" SIZE="-1"></TD></TR>
<TR VALIGN="TOP"><TD></TD>
<TD></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">HCA-The Healthcare Company</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD></TD>
<TD ALIGN="CENTER"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">1.03%</FONT></TD>
<TD><FONT FACE="Arial" SIZE="-1"></TD>
<TD></FONT><FONT FACE="Arial" SIZE="-1">        4,644,000 </FONT></TD>
<TD><FONT FACE="Arial" SIZE="-1"></TD></TR>
<TR VALIGN="TOP"><TD></TD>
<TD></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">Res-Care, Inc.</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD></TD>
<TD ALIGN="CENTER"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">1.01%</FONT></TD>
<TD><FONT FACE="Arial" SIZE="-1"></TD>
<TD></FONT><FONT FACE="Arial" SIZE="-1">        4,574,000 </FONT></TD>
<TD><FONT FACE="Arial" SIZE="-1"></TD></TR>
<TR VALIGN="TOP"><TD></TD>
<TD></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">Centennial HealthCare Corp.</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD></TD>
<TD ALIGN="CENTER"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">0.08%</FONT></TD>
<TD><FONT FACE="Arial" SIZE="-1"></TD>
<TD></FONT><FONT FACE="Arial" SIZE="-1">           382,000 </FONT></TD>
<TD><FONT FACE="Arial" SIZE="-1"></TD></TR>
<TR VALIGN="TOP"><TD></TD>
<TD></TD>
<TD ALIGN="RIGHT"></TD>
<TD></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">31.55%</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">$</FONT></TD>
<TD><FONT FACE="Arial" SIZE="-1">   142,251,000 </FONT></TD>
<TD><FONT FACE="Arial" SIZE="-1"></TD></TR></TABLE>
</P>
<BR WP="BR1"><BR WP="BR2">
<P></FONT><FONT FACE="Times New Roman" SIZE="-1"></FONT><FONT FACE="Times New Roman" SIZE="-1">												</FONT></P>

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

<P><FONT FACE="Arial" SIZE="-1">Page 5 NHI's Year End Results</FONT></P>

<BR WP="BR1"><BR WP="BR2">
<TABLE WIDTH="100%">
<TR VALIGN="TOP"><TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1">Summary of Facilities by State   December 31, 2003</FONT></TD></TR></TABLE>

<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="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>Percent of</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT FACE="Arial" 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="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></TD></TR>
<TR VALIGN="TOP"><TD><FONT FACE="Arial" SIZE="-1"></TD>
<TD></TD>
<TD ALIGN="CENTER"></FONT><FONT FACE="Arial" 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></TD></TR>
<TR VALIGN="TOP"><TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1">1</FONT></TD>
<TD><FONT FACE="Arial" SIZE="-1">Florida</FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1">20</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">7</FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="CENTER"></FONT><FONT FACE="Arial" SIZE="-1">42</FONT></TD>
<TD><FONT FACE="Arial" SIZE="-1">     117,972,000 </FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1">26.17%</FONT></TD></TR>
<TR VALIGN="TOP"><TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1">2</FONT></TD>
<TD><FONT FACE="Arial" SIZE="-1">Texas</FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1">28</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"></FONT><FONT FACE="Arial" SIZE="-1">1</FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1">1</FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1">32</FONT></TD>
<TD><FONT FACE="Arial" SIZE="-1">      98,838,000 </FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1">21.92%</FONT></TD></TR>
<TR VALIGN="TOP"><TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1">3</FONT></TD>
<TD><FONT FACE="Arial" SIZE="-1">Tennessee</FONT></TD>
<TD ALIGN="CENTER"><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></TD>
<TD><FONT FACE="Arial" SIZE="-1">       39,558,000 </FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1">8.77%</FONT></TD></TR>
<TR VALIGN="TOP"><TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1">4</FONT></TD>
<TD><FONT FACE="Arial" SIZE="-1">Missouri</FONT></TD>
<TD ALIGN="CENTER"><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></TD>
<TD><FONT FACE="Arial" SIZE="-1">       27,388,000 </FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1">6.08%</FONT></TD></TR>
<TR VALIGN="TOP"><TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1">5</FONT></TD>
<TD><FONT FACE="Arial" SIZE="-1">New Jersey</FONT></TD>
<TD ALIGN="CENTER"><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></TD>
<TD><FONT FACE="Arial" SIZE="-1">       26,844,000 </FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1">5.95%</FONT></TD></TR>
<TR VALIGN="TOP"><TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1">6</FONT></TD>
<TD><FONT FACE="Arial" SIZE="-1">Arizona</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"></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></TD>
<TD><FONT FACE="Arial" SIZE="-1">       19,556,000 </FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1">4.34%</FONT></TD></TR>
<TR VALIGN="TOP"><TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1">7</FONT></TD>
<TD><FONT FACE="Arial" SIZE="-1">Virginia</FONT></TD>
<TD ALIGN="CENTER"><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></TD>
<TD><FONT FACE="Arial" SIZE="-1">       19,347,000 </FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1">4.29%</FONT></TD></TR>
<TR VALIGN="TOP"><TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1">8</FONT></TD>
<TD><FONT FACE="Arial" SIZE="-1">New Hampshire</FONT></TD>
<TD ALIGN="CENTER"><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></TD>
<TD><FONT FACE="Arial" SIZE="-1">       17,192,000 </FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1">3.81%</FONT></TD></TR>
<TR VALIGN="TOP"><TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1">9</FONT></TD>
<TD><FONT FACE="Arial" SIZE="-1">Georgia</FONT></TD>
<TD ALIGN="CENTER"><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></TD>
<TD><FONT FACE="Arial" SIZE="-1">       17,082,000 </FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1">3.79%</FONT></TD></TR>
<TR VALIGN="TOP"><TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1">10</FONT></TD>
<TD><FONT FACE="Arial" SIZE="-1">Massachusetts </FONT></TD>
<TD ALIGN="CENTER"><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></TD>
<TD><FONT FACE="Arial" SIZE="-1">       12,479,000 </FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1">2.77%</FONT></TD></TR>
<TR VALIGN="TOP"><TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1">11</FONT></TD>
<TD><FONT FACE="Arial" SIZE="-1">Kansas</FONT></TD>
<TD ALIGN="CENTER"><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></TD>
<TD><FONT FACE="Arial" SIZE="-1">       11,639,000 </FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1">2.58%</FONT></TD></TR>
<TR VALIGN="TOP"><TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1">12</FONT></TD>
<TD><FONT FACE="Arial" SIZE="-1">Kentucky</FONT></TD>
<TD ALIGN="CENTER"><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></TD>
<TD><FONT FACE="Arial" SIZE="-1">        9,438,000 </FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1">2.09%</FONT></TD></TR>
<TR VALIGN="TOP"><TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1">13</FONT></TD>
<TD><FONT FACE="Arial" SIZE="-1">South Carolina</FONT></TD>
<TD ALIGN="CENTER"><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></TD>
<TD><FONT FACE="Arial" SIZE="-1">         8,655,000 </FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1">1.91%</FONT></TD></TR>
<TR VALIGN="TOP"><TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1">14</FONT></TD>
<TD><FONT FACE="Arial" SIZE="-1">Idaho</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">1</FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1">2</FONT></TD>
<TD><FONT FACE="Arial" SIZE="-1">         5,713,000 </FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1">1.27%</FONT></TD></TR>
<TR VALIGN="TOP"><TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1">15</FONT></TD>
<TD><FONT FACE="Arial" SIZE="-1">Colorado</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"></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></TD>
<TD><FONT FACE="Arial" SIZE="-1">         3,735,000 </FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1">0.83%</FONT></TD></TR>
<TR VALIGN="TOP"><TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1">16</FONT></TD>
<TD><FONT FACE="Arial" SIZE="-1">Alabama</FONT></TD>
<TD ALIGN="CENTER"><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></TD>
<TD><FONT FACE="Arial" SIZE="-1">         2,512,000 </FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1">0.56%</FONT></TD></TR>
<TR VALIGN="TOP"><TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1">17</FONT></TD>
<TD><FONT FACE="Arial" SIZE="-1">North Carolina</FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1">0</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">1</FONT></TD>
<TD><FONT FACE="Arial" SIZE="-1">         2,011,000 </FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1">0.45%</FONT></TD></TR>
<TR VALIGN="TOP"><TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1">18</FONT></TD>
<TD><FONT FACE="Arial" SIZE="-1">Illinois</FONT></TD>
<TD ALIGN="CENTER"><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></TD>
<TD><FONT FACE="Arial" SIZE="-1">         1,636,000 </FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1">0.36%</FONT></TD></TR>
<TR VALIGN="TOP"><TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1">19</FONT></TD>
<TD><FONT FACE="Arial" SIZE="-1">Wisconsin</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"></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></TD>
<TD><FONT FACE="Arial" SIZE="-1">         1,441,000 </FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1">0.32%</FONT></TD></TR>
<TR VALIGN="TOP"><TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1">20</FONT></TD>
<TD><FONT FACE="Arial" SIZE="-1">Washington</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"></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></TD>
<TD><FONT FACE="Arial" SIZE="-1">        1,425,000 </FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1">0.32%</FONT></TD></TR>
<TR VALIGN="TOP"><TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1"></TD>
<TD></TD>
<TD ALIGN="CENTER"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">121</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">18</FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1">6</FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1">167</FONT></TD>
<TD><FONT FACE="Arial" SIZE="-1">     444,461,000 </FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1">98.59%</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT FACE="Arial" SIZE="-1"></TD>
<TD></TD>
<TD ALIGN="CENTER"></TD>
<TD ALIGN="CENTER"></TD>
<TD ALIGN="CENTER"></TD>
<TD ALIGN="CENTER"></TD>
<TD ALIGN="CENTER"></TD>
<TD ALIGN="CENTER"></TD>
<TD ALIGN="CENTER"></TD>
<TD></TD>
<TD ALIGN="CENTER"></TD></TR></TABLE>

<TABLE WIDTH="100%">
<TR VALIGN="TOP"><TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<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="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">Remic II</FONT></TD>
<TD><FONT FACE="Arial" SIZE="-1">         6,346,000 </FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1">1.41%</FONT></TD></TR></TABLE>

<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><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"></FONT>     450,807,000 </FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1">100.00%</FONT></TD></TR></TABLE>

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

</BODY>
</HTML>
[{"type": "8-K", "sequence": "1", "filename": "nhi8k03e.htm", "secsgml_size_bytes": 109067}]
{"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": "04557214"}, "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"}}
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): January 30, 2004 (January 29, 2004)
National Health Investors, Inc.
(Exact name of Registrant as specified in its charter)
Maryland
(State or Other Jurisdiction of Incorporation)
333-41863
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 12.  Results of Operations and Financial Condition
On January 29, 2004, National Health Investors, Inc. made its year end earnings
announcement.  A copy of the press release is furnished as an exhibit to this Form 8-K and is
incorporated herein by reference.
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: January 30, 2004
Exhibit Index
Number
Exhibit
99
Press release, dated January 29, 2004
EXHIBIT 99
For Release: January 29, 2004
Contact: Gerald Coggin VP and Dir. of Investor Relations
Phone: (615) 890-9100
NHI announces 2003 year end results
MURFREESBORO, Tenn. -- National Health Investors, Inc., (NYSE: NHI and NHIPr) announced income
from continuing operations for the year ended Dec. 31, 2003 of $43,624,000 or $1.57 per common share, basic and
$1.56 per common share, diluted, compared to income from continuing operations of $25,521,000 or 90 cents per
common share, basic and diluted for 2002.
Net income for the year ended Dec. 31, 2003 was $43,808,000 or $1.58 per common share, basic and
$1.57 per common share, diluted, compared to net income of $30,787,000 or $1.10 per common share, basic and
diluted for 2002.
Funds from operations ("FFO") from continuing operations for the year ended Dec. 31, 2003 were
$57,088,000 or $2.14 per common share basic, and $57,237,000 or $2.12 per common share, diluted, compared to
$39,475,000 or $1.49 per common share, basic, and $39,776,000 or $1.48 per common share , diluted, for 2002.
Income from continuing operations for the fourth quarter ended Dec. 31, 2003 was $9,927,000 or 35
cents per common and diluted share compared to a loss from continuing operations of $4,782,000 or 20 cents per
common share, basic and diluted for 2002.
Net income for the fourth quarter ended Dec. 31, 2003 was $9,817,000 or 35 cents per common share,
basic and diluted, compared to a net loss of $4,892,000 or 20 cents per common share, basic and diluted for 2002.
Funds from continuing operations for the fourth quarter ended Dec. 31, 2003 were $13,319,000 or 50
cents per common share basic, and $13,353,000 or 49 cents per common share, diluted, compared to funds applied to
operations of $1,179,000 or 4 cents per common share, basic and diluted for 2002.
Income and FFO during the quarter ended Dec. 31, 2003 included additional mortgage interest income
of $1,465,000 compared to the previous quarter from our real estate mortgage investment conduits.  Separately, NHI
recorded a loss of $2,000,000 on a first mortgage loan writedown.  The net effect of these items was a decline in income
and FFO of $535,000 or two cents per share, basic and diluted for the fourth quarter.
"At December 31, 2003, cash and marketable securities totaled approximately 74% of total debt
outstanding," said President Andy Adams.  "Even with this unsurpassed liquidity, our debt to capitalization ratio declined
to 28.5%, the lowest level in our 12 year history."
NHI will hold its annual meeting on April 20 at 4:00 p.m. Central Time.
NHI specializes in the financing of health care real estate by first mortgage and by purchase and
leaseback transactions. The common and preferred stocks of the company trade on the New York Stock Exchange with
the symbols NHI and NHIPr respectively.  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 year end results
Condensed Statements of Income
(in thousands except share and per share
Three Months Ended December 31
Year Ended December 31
2003
2002
2003
2002
Revenues:
Mortgage interest income
$
6,151
$
4,925
$
21,046
$
29,891
Rental income
11,934
11,690
56,243
47,737
Facility operating revenues
20,335
17,959
79,272
73,006
Investment interest and other
1,344
1,640
5,931
6,655
$
39,764
$
36,214
$
162,492
$
157,289
Expenses:
Interest
$
3,239
$
4,020
$
13,840
$
17,000
Depreciation of real estate
3,789
4,000
15,053
15,543
Amortization of loan costs
37
128
297
738
Facility operating expenses
19,210
18,266
76,132
72,017
Loan, realty & security loss
2,234
13,555
9,134
23,055
Legal expense
286
152
729
652
Franchise and excise tax
20
(26)
548
337
General and administrative
1,022
901
3,135
2,426
$
29,837
$
40,996
$
118,868
$
131,768
Income (Loss) From Continuing Operations
$
9,927
$
(4,782)
$
43,624
$
25,521
Discontinued Operations
Operating Income (Loss) - Discontinued
(110)
(110)
(1,351)
183
Net gain on sale of real estate
---
---
1,535
5,083
$
(110)
$
(110)
$
184
$
5,266
Net Income (Loss)
$
9,817
$
(4,892)
$
43,808
$
30,787
Dividends to preferred stockholders
397
397
1,589
1,589
Net income (loss) applicable to common
$
9,420
$
(5,289)
$
42,219
$
29,198
Income (Loss) from continuing operations per common share
Basic
$
.35
$
(.20)
$
1.57
$
.90
Diluted
$
.35
$
(.20)
$
1.56
$
.90
Discontinued operations per common
Basic
$
.00
$
.00
$
.01
$
.20
Diluted
$
.00
$
.00
$
.01
$
.20
Net income (loss) per common share
Basic
$
.35
$
(.20)
$
1.58
$
1.10
Diluted
$
.35
$
(.20)
$
1.57
$
1.10
Funds from(to) operations
Basic
$
13,319
$
(1,179)
$
57,088
$
39,475
Diluted
$
13,353
$
(1,179)
$
57,237
$
39,776
Funds from (to) operations per common share
Basic
$
.50
$
(.04)
$
2.14
$
1.49
Diluted
$
.49
$
(.04)
$
2.12
$
1.48
Weighted average common shares outstanding
Basic
26,766,300
26,648,319
26,727,814
26,453,053
Diluted
27,026,532
26,648,31
26,985,571
26,853,420
Dividends per common share
$
.50
$
.35
$
1.70
$
1.40
Balance Sheet Data
(in thousands)
Dec. 31
Dec. 31
2003
2002
Real estate properties, net
$
289,465
$
304,394
Mortgages receivable, net
149,892
201,236
Preferred stock investment
38,132
38,132
REMIC investments
16,043
36,366
Cash and marketable securities
120,522
58,825
Debt and credit facilities
162,100
161,763
Convertible debt
1,351
41,633
Stockholders' equity
409,644
400,429
-more-
Page3 NHI's Year End Results
Reconciliation of Funds From Operations
(1)
The following table reconciles net income applicable to common stockholders to funds from operations applicable to common
stockholders:
(in thousands, except share and per share amounts)
Three Months Ended Dec.
Year Ended Dec. 31
2003
2002
2003
2002
Net income  (loss) applicable to common
$
9,420
$
(5,289)
$
42,219
$
29,198
Adjustments:
Real estate depreciation
3,789
4,000
15,053
15,543
Other Items:
Discontinued operations:
Operating (Income) loss  - discontinued
110
110
1,351
(183)
(Gain) loss on sale of real estate
---
---
(1,535)
(5,083)
Basic funds from (to) operations applicable to
common stockholders
13,319
(1,179)
57,088
39,475
Interest on convertible subordinated debentures
34
---
149
301
Diluted funds from (to) operations applicable to
common stockholders
$
13,353
$
(1,179)
$
57,237
$
39,776
Basic funds from (to) operations per share
$
.50
$
(.04)
$
2.14
$
1.49
Diluted funds from (to) operations per share
$
.49
$
(.04)
$
2.12
$
1.48
Shares for basic funds from operations per share
26,766,300
26,648,319
26,727,814
26,453,053
Shares for diluted funds from operations per share
27,026,532
26,648,319
26,985,571
26,853,420
(1) We believe that funds from operations is an important supplemental measure of operating performance.  We,
therefore, disclose funds from operations, although it is a measurement that is not defined by accounting principles
generally accepted in the United States.  We generally use the National Association of Real Estate Investment Trusts
(NAREIT) measure of funds from operations.  We define funds from operations as income before extraordinary items
adjusted for certain non-cash items, primarily real estate depreciation, less gains/losses on sales of facilities.  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.  Funds from
operations does not represent cash generated from operating activities as defined by accounting principles generally
accepted in the United States (funds from operations does not include changes in operating assets and liabilities) and,
therefore, should not be considered as an alternative to net income as the primary indicator of operating performance or
to cash flow as a measure of liquidity.
(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 Year End Results
National Health Investors, Inc.  Portfolio Summary  December 31, 2003
Portfolio Statistics
Investment
Percentage
Properties
Investment
Equity Ownership
94
289,465,000
64%
Mortgage Loan Receivables
73
161,342,000
36%
Total Real Estate Portfolio
167
450,807,000
100%
Equity Ownership
Properties
Beds
Investments
Nursing Homes
68
9,142
$
186,110,000
Assisted Living
16
1,350
72,701,000
Medical Office Buildings
4
124,427 sq.ft.
11,335,000
Retirement Homes
5
471
11,334,000
Hospitals
1
55
7,985,000
94
$
289,465,000
Mortgage Loan Receivables
Properties
Beds
Investments
Nursing Homes
50
5,512
$
132,376,000
Assisted Living
2
156
6,164,000
Retirement Homes
1
60
2,185,000
Developmentally Disabled
17
108
4,574,000
70
$
145,299,000
Remic
3
390
9,697,000
Remic II Investment
2,313
6,346,000
Total Mortgage Portfolio
73
$
161,342,000
Summary of Facilities by Type:
Percentage of
Total
Properties
Total Dollars
Dollars
Nursing Homes
121
74.21%
$
334,529,000
Assisted Living
18
17.49%
78,865,000
Medical Office Buildings
4
2.51%
11,335,000
Retirement Homes
6
3.00%
13,519,000
Hospitals
1
1.77%
7,985,000
Developmentally Disabled
17
1.01%
4,574,000
167
100.00%
$
450,807,000
Portfolio by Operator Type
# of
Percentage of
Total
Public
98
47.79%
$
215,443,000
Regional
56
43.58%
196,455,000
Small Operator
13
8.63%
38,909,000
167
100.00%
$
450,807,000
Public Operators:
Percentage
Of Total
Portfolio
Dollar
Amount
National HealthCare Corp.
13.41%
$
60,457,000
National Health Investors, Inc.
5.04%
22,735,000
Community Health Systems, Inc.
3.26%
14,676,000
Sunrise Senior Living Services
3.13%
14,132,000
Mariner Post Acute Network
2.48%
11,197,000
Sun Healthcare
2.10%
9,454,000
HCA-The Healthcare Company
1.03%
4,644,000
Res-Care, Inc.
1.01%
4,574,000
Centennial HealthCare Corp.
0.08%
382,000
31.55%
$
142,251,000
- More -
Page 5 NHI's Year End Results
Summary of Facilities by State   December 31, 2003
Percent of
Acute
Dev.
Asst.
Retire-
Current
Total
LTC
Care
MOB
Disab.
Living
ment
Total
Amount
Portfolio
1
Florida
20
1
14
7
42
117,972,000
26.17%
2
Texas
28
2
1
1
32
98,838,000
21.92%
3
Tennessee
21
3
3
2
29
39,558,000
8.77%
4
Missouri
9
1
10
27,388,000
6.08%
5
New Jersey
2
1
3
26,844,000
5.95%
6
Arizona
1
4
5
19,556,000
4.34%
7
Virginia
7
7
19,347,000
4.29%
8
New Hampshire
3
1
4
17,192,000
3.81%
9
Georgia
7
7
17,082,000
3.79%
10
Massachusetts
4
4
12,479,000
2.77%
11
Kansas
7
7
11,639,000
2.58%
12
Kentucky
3
1
4
9,438,000
2.09%
13
South Carolina
3
1
4
8,655,000
1.91%
14
Idaho
1
1
2
5,713,000
1.27%
15
Colorado
1
1
3,735,000
0.83%
16
Alabama
2
2
2,512,000
0.56%
17
North Carolina
0
1
1
2,011,000
0.45%
18
Illinois
0
1
1
1,636,000
0.36%
19
Wisconsin
1
1
1,441,000
0.32%
20
Washington
1
1
1,425,000
0.32%
121
1
4
17
18
6
167
444,461,000
98.59%
Remic II
6,346,000
1.41%
450,807,000
100.00%
-30-