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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): August 6, 2004 (August 5, 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" ALIGN="CENTER"><U>        333-41863        </U></TD>
<TD>
<P ALIGN="CENTER"><U>   62-1470956   </U></TD></TR>
<TR VALIGN="TOP"><TD COLSPAN="2" ALIGN="CENTER">(Commission File No.)</TD>
<TD>
<P ALIGN="CENTER">(IRS Employer</TD></TR>
<TR VALIGN="TOP"><TD></TD>
<TD></TD>
<TD>
<P ALIGN="CENTER">Identification Number)</TD></TR>
<TR VALIGN="TOP"><TD></TD>
<TD></TD>
<TD></TD></TR>
<TR VALIGN="TOP"><TD COLSPAN="3">
<P ALIGN="CENTER">100 Vine Street, Suite 1202</TD></TR>
<TR VALIGN="TOP"><TD COLSPAN="3">
<P ALIGN="CENTER"><U>Murfreesboro, TN 37130</U></TD></TR>
<TR VALIGN="TOP"><TD COLSPAN="3">
<P ALIGN="CENTER">(Address of principal executive offices, including zip code)</TD></TR>
<TR VALIGN="TOP"><TD></TD>
<TD></TD>
<TD></TD></TR>
<TR VALIGN="TOP"><TD COLSPAN="3">
<P ALIGN="CENTER"><U>        (615) 890-9100        </U></TD></TR>
<TR VALIGN="TOP"><TD COLSPAN="3">
<P ALIGN="CENTER">(Registrant's telephone number, including area code)</TD></TR>
<TR VALIGN="TOP"><TD COLSPAN="3"></TD></TR>
<TR VALIGN="TOP"><TD COLSPAN="3">
<P ALIGN="CENTER"><U>          Not Applicable          </U></TD></TR>
<TR VALIGN="TOP"><TD COLSPAN="3">
<P ALIGN="CENTER">(Former name or former address, if changed since last report)</TD></TR></TABLE>
</P>
<BR WP="BR1"><BR WP="BR2">
<P><STRONG>Item 5.  Other Events</STRONG></P>

<P>	On August 5, 2004, National Health Investors, Inc. announced its second quarter
earnings.  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>

<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: August 6, 2004</TD>
<TD></TD></TR></TABLE>

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

<TABLE WIDTH="100%">
<TR VALIGN="TOP"><TD><STRONG>Number</STRONG></TD>
<TD><STRONG>Exhibit</STRONG></TD></TR>
<TR VALIGN="TOP"><TD>99</TD>
<TD>Press release, dated August 5, 2004</TD></TR></TABLE>

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

<BR WP="BR1"><BR WP="BR2">
<P><FONT FACE="Futura MdCn BT" SIZE="-2"></FONT><FONT FACE="Futura MdCn BT" SIZE="-2">For Release August 5, 2004 </FONT></P>

<P><FONT FACE="Futura MdCn BT" SIZE="-2">Contact: Gerald Coggin, Sr. VP of Investor Relations</FONT></P>

<P><FONT FACE="Futura MdCn BT" SIZE="-2">Phone: (615) 890-9100</FONT></P>

<BR WP="BR1"><BR WP="BR2">
<P><FONT FACE="Tms Rmn"></FONT><FONT FACE="Futura MdCn BT" SIZE="+3">NHI reports second quarter income</FONT></P>

<P><FONT FACE="Tms Rmn"></FONT><FONT FACE="Futura MdCn BT">	MURFREESBORO, Tenn. -- National Health Investors, Inc., (NYSE: NHI) announced income
from continuing operations for the second quarter ended June 30 of $11,008,000, or 40 cents per
basic and diluted share of common stock compared to $11,230,000, or  41 cents per basic and 40
cents per diluted share of common stock for the same period in 2003.   </FONT></P>

<P><FONT FACE="Futura MdCn BT">	Funds from operations ("FFO") for the second quarter ended June 30 was $13,567,000, or 50
cents per basic and $13,597,000, or 49 cents per diluted share of common stock compared to
$13,542,000, or 51 cents per basic and $13,580,000, or 50 cents per diluted share in 2003.  </FONT></P>

<P><FONT FACE="Futura MdCn BT">	Income from continuing operations for the six months ended June 30, was $24,591,000 or 89
cents per basic and 88 cents per diluted share of common stock compared to $21,728,000 or 78 cents
per basic and diluted share of common stock for the same period in 2003.  </FONT></P>

<P><FONT FACE="Futura MdCn BT">	For the six months ended June 30, FFO was $29,583,000 or $1.09 per basic and $29,645,000
or $1.09 per diluted share of common stock compared to $26,483,000 or 99 cents per basic and
$26,562,000 or 99 cents per diluted share in 2003.  </FONT><FONT FACE="Futura Md BT" SIZE="-1"> </FONT><FONT FACE="Futura MdCn BT"></FONT></P>

<P><FONT FACE="Tms Rmn"></FONT><FONT FACE="Arial">Net income for the three months and six months ended June 30, was $11,961,000 and $25,396,000,
respectively, versus $10,816,000 and $22,936,000, respectively, for 2003. </FONT></P>

<P><FONT FACE="Arial">For the second quarter of 2004, we sold two facilities resulting in a net gain of $1,252,000.  One facility located
in Bellingham, Washington was sold at a loss of $345,000 while the other facility located in Dawson Springs,
Kentucky was sold at a gain of $1,597,000.  For the second quarter of 2004, we also wrote off 100% of the
$3,339,000 carrying value of our 1995 REMIC and recorded a recovery of $2,246,000 from our 1993 REMIC.  </FONT></P>

<P><FONT FACE="Tms Rmn"></FONT><FONT FACE="Helvetica-Narrow"></FONT><FONT FACE="Futura MdCn BT">National Health Investors, Inc. is a long-term health care real estate investment trust that
specializes in the financing of health care real estate by first mortgage and by purchase and leaseback
transactions. The common stock of the company trades on the New York Stock Exchange with the
symbol NHI. Additional information including NHI's most recent press releases may be obtained on
NHI's web site at www.nhinvestors.com.</FONT></P>

<P><FONT FACE="Tms Rmn"></FONT><FONT FACE="Futura MdCn BT"></FONT><FONT FACE="Futura MdCn BT" 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><FONT FACE="Tms Rmn"><EM></EM></FONT><FONT FACE="Palatino"></FONT><FONT FACE="Futura MdCn BT"></FONT><FONT FACE="Futura MdCn BT" SIZE="-1">- more -</FONT></P>

<P><FONT FACE="Palatino"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Futura MdCn BT" SIZE="-1">Page 2 NHI's Second Quarter Results</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></P>

<TABLE WIDTH="100%">
<TR VALIGN="TOP"><TD><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Futura MdCn BT"><STRONG>Condensed Statements of</STRONG></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<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="Futura MdCn BT" SIZE="-1"><STRONG><U></U></STRONG></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG><U></U></STRONG></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG><U></U></STRONG></FONT><FONT FACE="Futura MdCn BT" SIZE="-1">(in thousands, except share and per share</EM></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1"></TD>
<TD ALIGN="CENTER"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Futura MdCn BT" SIZE="-1">Three Months Ended</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="CENTER"></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><U></U></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><U></U></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Futura MdCn BT" SIZE="-1">Six Months Ended June</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1"></TD></TR></TABLE>

<TABLE WIDTH="100%">
<TR VALIGN="TOP"><TD></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG><U></U></STRONG></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG><U></U>2004</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG></TD>
<TD ALIGN="RIGHT"></STRONG><U></U></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><U></U>2003</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Futura MdCn BT" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"><U></U></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><U><STRONG></U></STRONG></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG><U></U>2004</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG></TD>
<TD ALIGN="RIGHT"></STRONG><U></U></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><U></U>2003</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Futura MdCn BT" SIZE="-1"></TD></TR>
<TR VALIGN="TOP"><TD></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG>Revenues:</STRONG></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<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="Futura MdCn BT" SIZE="-1"><STRONG></STRONG></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG></STRONG></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG></STRONG></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"></FONT><FONT FACE="Futura MdCn BT" SIZE="-1">	Mortgage interest income</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG>$</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG>4,818 </STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG></STRONG>$</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Futura MdCn BT" SIZE="-1">4,705</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Futura MdCn BT" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG>$</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG>9,669</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG></STRONG>$</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Futura MdCn BT" SIZE="-1">10,248</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Futura MdCn BT" SIZE="-1"></TD></TR>
<TR VALIGN="TOP"><TD></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Futura MdCn BT" SIZE="-1">	Rental income</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG></STRONG></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG>12,300 </STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG></TD>
<TD ALIGN="RIGHT"></STRONG></FONT><FONT FACE="Futura MdCn BT" SIZE="-1">13,044</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Futura MdCn BT" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG></STRONG></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG>24,479</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG></TD>
<TD ALIGN="RIGHT"></STRONG></FONT><FONT FACE="Futura MdCn BT" SIZE="-1">26,366</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Futura MdCn BT" SIZE="-1"></TD></TR>
<TR VALIGN="TOP"><TD></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Futura MdCn BT" SIZE="-1">	Facility operating revenue</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG></STRONG></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG>20,769 </STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG></TD>
<TD ALIGN="RIGHT"></STRONG></FONT><FONT FACE="Futura MdCn BT" SIZE="-1">19,833</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Futura MdCn BT" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG></STRONG></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG>41,169</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG></TD>
<TD ALIGN="RIGHT"></STRONG></FONT><FONT FACE="Futura MdCn BT" SIZE="-1">38,954</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Futura MdCn BT" SIZE="-1"></TD></TR>
<TR VALIGN="TOP"><TD></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG></STRONG></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG>37,887 </STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG></TD>
<TD ALIGN="RIGHT"></STRONG></FONT><FONT FACE="Futura MdCn BT" SIZE="-1">37,582</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Futura MdCn BT" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG></STRONG></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG>75,317</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG></TD>
<TD ALIGN="RIGHT"></STRONG></FONT><FONT FACE="Futura MdCn BT" SIZE="-1">75,568</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Futura MdCn BT" SIZE="-1"></TD></TR>
<TR VALIGN="TOP"><TD></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG>Expenses:</STRONG></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<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="Futura MdCn BT" SIZE="-1"><STRONG></STRONG></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG></STRONG></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG></STRONG></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"></FONT><FONT FACE="Futura MdCn BT" SIZE="-1">	Interest</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG></STRONG></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG>3,083</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG></TD>
<TD ALIGN="RIGHT"></STRONG></FONT><FONT FACE="Futura MdCn BT" SIZE="-1">3,176</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Futura MdCn BT" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG></STRONG></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG>6,203</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG></TD>
<TD ALIGN="RIGHT"></STRONG></FONT><FONT FACE="Futura MdCn BT" SIZE="-1">7,164</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Futura MdCn BT" SIZE="-1"></TD></TR>
<TR VALIGN="TOP"><TD></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Futura MdCn BT" SIZE="-1">	Depreciation</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG></STRONG></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG>3,481</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG></TD>
<TD ALIGN="RIGHT"></STRONG></FONT><FONT FACE="Futura MdCn BT" SIZE="-1">3,743</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Futura MdCn BT" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG></STRONG></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG>7,016</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG></TD>
<TD ALIGN="RIGHT"></STRONG></FONT><FONT FACE="Futura MdCn BT" SIZE="-1">7,513</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Futura MdCn BT" SIZE="-1"></TD></TR>
<TR VALIGN="TOP"><TD></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Futura MdCn BT" SIZE="-1">	Amortization of loan cost</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG></STRONG></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG>37</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG></TD>
<TD ALIGN="RIGHT"></STRONG></FONT><FONT FACE="Futura MdCn BT" SIZE="-1">40</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Futura MdCn BT" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG></STRONG></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG>74</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG></TD>
<TD ALIGN="RIGHT"></STRONG></FONT><FONT FACE="Futura MdCn BT" SIZE="-1">223</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Futura MdCn BT" SIZE="-1"></TD></TR>
<TR VALIGN="TOP"><TD></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Futura MdCn BT" SIZE="-1">        Legal expense</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG></STRONG></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG>769</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG></TD>
<TD ALIGN="RIGHT"></STRONG></FONT><FONT FACE="Futura MdCn BT" SIZE="-1">265</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Futura MdCn BT" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG></STRONG></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG>918</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG></TD>
<TD ALIGN="RIGHT"></STRONG></FONT><FONT FACE="Futura MdCn BT" SIZE="-1">184</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Futura MdCn BT" SIZE="-1"></TD></TR>
<TR VALIGN="TOP"><TD></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Futura MdCn BT" SIZE="-1">	Franchise and excise tax</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG></STRONG></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG>66</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG></TD>
<TD ALIGN="RIGHT"></STRONG></FONT><FONT FACE="Futura MdCn BT" SIZE="-1">67</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Futura MdCn BT" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG></STRONG></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG>136</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG></TD>
<TD ALIGN="RIGHT"></STRONG></FONT><FONT FACE="Futura MdCn BT" SIZE="-1">463</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Futura MdCn BT" SIZE="-1"></TD></TR>
<TR VALIGN="TOP"><TD></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Futura MdCn BT" SIZE="-1">	General and administrative</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG></STRONG></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG>1,064</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG></TD>
<TD ALIGN="RIGHT"></STRONG></FONT><FONT FACE="Futura MdCn BT" SIZE="-1">720</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Futura MdCn BT" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG></STRONG></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG>1920</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG></TD>
<TD ALIGN="RIGHT"></STRONG></FONT><FONT FACE="Futura MdCn BT" SIZE="-1">1,434</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Futura MdCn BT" SIZE="-1"></TD></TR>
<TR VALIGN="TOP"><TD></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Futura MdCn BT" SIZE="-1">        Loan, remic, and security</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<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="Futura MdCn BT" SIZE="-1"><STRONG></STRONG></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG></STRONG></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG></STRONG></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"></FONT><FONT FACE="Futura MdCn BT" SIZE="-1">	     losses, net</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG></STRONG></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG>1,093</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG></TD>
<TD ALIGN="RIGHT"></STRONG></FONT><FONT FACE="Futura MdCn BT" SIZE="-1">---</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Futura MdCn BT" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG></STRONG></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG>(896)</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG></TD>
<TD ALIGN="RIGHT"></STRONG></FONT><FONT FACE="Futura MdCn BT" SIZE="-1">1,500</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Futura MdCn BT" SIZE="-1"></TD></TR>
<TR VALIGN="TOP"><TD></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Futura MdCn BT" SIZE="-1">	Facility operating expenses </FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG></STRONG></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG>20,080</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG></TD>
<TD ALIGN="RIGHT"></STRONG></FONT><FONT FACE="Futura MdCn BT" SIZE="-1">19,498</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Futura MdCn BT" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG></STRONG></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG>40,282     </STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG></TD>
<TD ALIGN="RIGHT"></STRONG></FONT><FONT FACE="Futura MdCn BT" SIZE="-1">38,160</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Futura MdCn BT" SIZE="-1"></TD></TR>
<TR VALIGN="TOP"><TD></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG></STRONG></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG>29,673</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG></TD>
<TD ALIGN="RIGHT"></STRONG></FONT><FONT FACE="Futura MdCn BT" SIZE="-1">27,509</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Futura MdCn BT" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG></STRONG></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG>55,653</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG></TD>
<TD ALIGN="RIGHT"></STRONG></FONT><FONT FACE="Futura MdCn BT" SIZE="-1">56,641</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Futura MdCn BT" 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="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG></STRONG></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG><U></U></STRONG></FONT>Income before non-operating income</STRONG></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG></STRONG></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG>8,214</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG></TD>
<TD ALIGN="RIGHT"></STRONG></FONT><FONT FACE="Futura MdCn BT" SIZE="-1">10,073</FONT><FONT FACE="Tms Rmn"></FONT></TD>
<TD><FONT FACE="Tms Rmn"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Tms Rmn"></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG></STRONG></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG>19,664</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG></TD>
<TD ALIGN="RIGHT"></STRONG></FONT><FONT FACE="Futura MdCn BT" SIZE="-1">18,927</FONT><FONT FACE="Tms Rmn"></FONT></TD>
<TD><FONT FACE="Tms Rmn"></TD></TR>
<TR VALIGN="TOP"><TD></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG>Non-operating income</STRONG> (investment</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD></TD></TR>
<TR VALIGN="TOP"><TD></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG></STRONG></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG></STRONG></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG></STRONG></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"></FONT><FONT FACE="Tms Rmn">         interest and other)</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG></STRONG></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG>      2,794</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG></TD>
<TD ALIGN="RIGHT"></STRONG><U></U></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><U></U>1,157</FONT><FONT FACE="Tms Rmn"></FONT></TD>
<TD><FONT FACE="Tms Rmn"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Tms Rmn"></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG></STRONG></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG>4,927</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG></TD>
<TD ALIGN="RIGHT"></STRONG></FONT><FONT FACE="Futura MdCn BT" SIZE="-1">2,801</FONT><FONT FACE="Tms Rmn"></FONT></TD>
<TD><FONT FACE="Tms Rmn"></TD></TR>
<TR VALIGN="TOP"><TD></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG>Income from continuing operations</STRONG></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG></STRONG></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG>11,008 </STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG></TD>
<TD ALIGN="RIGHT"></STRONG></FONT><FONT FACE="Futura MdCn BT" SIZE="-1">11,230</FONT><FONT FACE="Tms Rmn"></FONT></TD>
<TD><FONT FACE="Tms Rmn"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Tms Rmn"></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG></STRONG></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG>24,591</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG></TD>
<TD ALIGN="RIGHT"></STRONG></FONT><FONT FACE="Futura MdCn BT" SIZE="-1">21,728</FONT><FONT FACE="Tms Rmn"></FONT></TD>
<TD><FONT FACE="Tms Rmn"></TD></TR>
<TR VALIGN="TOP"><TD></FONT><FONT FACE="Tms Rmn"></FONT><FONT FACE="Futura MdCn BT" SIZE="-1">Discontinued operations</FONT><FONT FACE="Tms Rmn"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn"></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>
<TD></TD></TR>
<TR VALIGN="TOP"><TD></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG></STRONG></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG></STRONG></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG></STRONG></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"></FONT><FONT FACE="Tms Rmn">	</STRONG>Operating loss -</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG></STRONG></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG>(299)</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG></TD>
<TD ALIGN="RIGHT"></STRONG></FONT><FONT FACE="Futura MdCn BT" SIZE="-1">(414)</FONT><FONT FACE="Tms Rmn"></FONT></TD>
<TD><FONT FACE="Tms Rmn"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Tms Rmn"></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG></STRONG></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG>(447)</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG></TD>
<TD ALIGN="RIGHT"></STRONG></FONT><FONT FACE="Futura MdCn BT" SIZE="-1">(724)</FONT><FONT FACE="Tms Rmn"></FONT></TD>
<TD><FONT FACE="Tms Rmn"></TD></TR>
<TR VALIGN="TOP"><TD></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG>	</STRONG>Gain on sale of real estate</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG></STRONG></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG>1,252  </STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG></TD>
<TD ALIGN="RIGHT"></STRONG></FONT><FONT FACE="Futura MdCn BT" SIZE="-1">---</FONT><FONT FACE="Tms Rmn"></FONT></TD>
<TD><FONT FACE="Tms Rmn"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Tms Rmn"></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG></STRONG></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG>1,252</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG></TD>
<TD ALIGN="RIGHT"></STRONG></FONT><FONT FACE="Futura MdCn BT" SIZE="-1">1,932</FONT><FONT FACE="Tms Rmn"></FONT></TD>
<TD><FONT FACE="Tms Rmn"></TD></TR>
<TR VALIGN="TOP"><TD></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG>	</STRONG></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG></STRONG></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG>953</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG></TD>
<TD ALIGN="RIGHT"></STRONG></FONT><FONT FACE="Futura MdCn BT" SIZE="-1">(414)</FONT><FONT FACE="Tms Rmn"></FONT></TD>
<TD><FONT FACE="Tms Rmn"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Tms Rmn"></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG></STRONG></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG>805</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG></TD>
<TD ALIGN="RIGHT"></STRONG></FONT><FONT FACE="Futura MdCn BT" SIZE="-1">1,208</FONT><FONT FACE="Tms Rmn"></FONT></TD>
<TD><FONT FACE="Tms Rmn"></TD></TR>
<TR VALIGN="TOP"><TD></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG>Net Income</STRONG></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG></STRONG></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG>11,961</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG></TD>
<TD ALIGN="RIGHT"></STRONG></FONT><FONT FACE="Futura MdCn BT" SIZE="-1">10,816</FONT><FONT FACE="Tms Rmn"></FONT></TD>
<TD><FONT FACE="Tms Rmn"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Tms Rmn"></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG></STRONG></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG>25,396</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG></TD>
<TD ALIGN="RIGHT"></STRONG></FONT><FONT FACE="Futura MdCn BT" SIZE="-1">22,936</FONT><FONT FACE="Tms Rmn"></FONT></TD>
<TD><FONT FACE="Tms Rmn"></TD></TR>
<TR VALIGN="TOP"><TD></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Futura MdCn BT" SIZE="-1">Dividends to preferred</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG></STRONG></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG>117</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG></TD>
<TD ALIGN="RIGHT"></STRONG></FONT><FONT FACE="Futura MdCn BT" SIZE="-1">398</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Futura MdCn BT" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG></STRONG></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG>514</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG></TD>
<TD ALIGN="RIGHT"></STRONG></FONT><FONT FACE="Futura MdCn BT" SIZE="-1">795</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Futura MdCn BT" SIZE="-1"></TD></TR>
<TR VALIGN="TOP"><TD></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Futura MdCn BT" SIZE="-1">Net income applicable to common</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG>$</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG>11,844</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG></STRONG>$</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Futura MdCn BT" SIZE="-1">10,418</FONT><FONT FACE="Tms Rmn"></FONT></TD>
<TD><FONT FACE="Tms Rmn"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Tms Rmn"></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG>$</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG>24,882</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG></STRONG>$</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Futura MdCn BT" SIZE="-1">22,141</FONT><FONT FACE="Tms Rmn"></FONT></TD>
<TD><FONT FACE="Tms Rmn"></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="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG></STRONG></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG></STRONG></FONT><FONT FACE="Futura MdCn BT" SIZE="-1">Income from continuing operations per common share:</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1"></TD></TR></TABLE>

<TABLE WIDTH="100%">
<TR VALIGN="TOP"><TD></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Futura MdCn BT" SIZE="-1">     Basic</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG>$</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG>.40</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG></STRONG>$</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Futura MdCn BT" SIZE="-1">.41</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Futura MdCn BT" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG>$</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG>.89</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG></STRONG>$</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Futura MdCn BT" SIZE="-1">.78</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Futura MdCn BT" SIZE="-1"></TD></TR>
<TR VALIGN="TOP"><TD></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Futura MdCn BT" SIZE="-1">     Diluted</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG>$</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG>.40</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG></STRONG>$</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Futura MdCn BT" SIZE="-1">.40</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Futura MdCn BT" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG>$</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG>.88</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG></STRONG>$</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Futura MdCn BT" SIZE="-1">.78</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Futura MdCn BT" 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="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG></STRONG></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG></STRONG></FONT><FONT FACE="Futura MdCn BT" SIZE="-1">Discontinued operations per</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<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="Futura MdCn BT" SIZE="-1"><STRONG></STRONG></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG></STRONG></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG></STRONG></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"></FONT><FONT FACE="Futura MdCn BT" SIZE="-1">     Basic</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG>$</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG>.03</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG></STRONG>$</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Futura MdCn BT" SIZE="-1">(.02)</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Futura MdCn BT" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG>$</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG>.03</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG></STRONG>$</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Futura MdCn BT" SIZE="-1">.05</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Futura MdCn BT" SIZE="-1"></TD></TR>
<TR VALIGN="TOP"><TD></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Futura MdCn BT" SIZE="-1">     Diluted</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG>$</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG>.03</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG></STRONG>$</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Futura MdCn BT" SIZE="-1">(.01)</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Futura MdCn BT" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG>$</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG>.03</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG></STRONG>$</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Futura MdCn BT" SIZE="-1">.04</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Futura MdCn BT" 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="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG></STRONG></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG></STRONG></FONT><FONT FACE="Futura MdCn BT" SIZE="-1">Net income per common share:</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<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="Futura MdCn BT" SIZE="-1"><STRONG></STRONG></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG></STRONG></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG></STRONG></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"></FONT><FONT FACE="Futura MdCn BT" SIZE="-1">	Basic</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG>$</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG>.43</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG></STRONG>$</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Futura MdCn BT" SIZE="-1">.39</FONT><FONT FACE="Tms Rmn"></FONT></TD>
<TD><FONT FACE="Tms Rmn"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Tms Rmn"></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG>$</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG>.92</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG></STRONG>$</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Futura MdCn BT" SIZE="-1">.83</FONT><FONT FACE="Tms Rmn"></FONT></TD>
<TD><FONT FACE="Tms Rmn"></TD></TR>
<TR VALIGN="TOP"><TD></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Futura MdCn BT" SIZE="-1">	Diluted</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG>$</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG>.43</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG></STRONG>$</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Futura MdCn BT" SIZE="-1">.39</FONT><FONT FACE="Tms Rmn"></FONT></TD>
<TD><FONT FACE="Tms Rmn"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Tms Rmn"></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG>$</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG>.91</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG></STRONG>$</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Futura MdCn BT" SIZE="-1">.82</FONT><FONT FACE="Tms Rmn"></FONT></TD>
<TD><FONT FACE="Tms Rmn"></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="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG></STRONG></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG></STRONG></FONT><FONT FACE="Futura MdCn BT" SIZE="-1">Funds from operations</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<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="Futura MdCn BT" SIZE="-1"><STRONG></STRONG></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG></STRONG></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG></STRONG></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"></FONT><FONT FACE="Futura MdCn BT" SIZE="-1">	Basic</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG>$</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG>13,567</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG></STRONG>$</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Futura MdCn BT" SIZE="-1">13,542</FONT><FONT FACE="Tms Rmn"></FONT></TD>
<TD><FONT FACE="Tms Rmn"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Tms Rmn"></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG>$</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG>29,583</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG></STRONG>$</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Futura MdCn BT" SIZE="-1">26,483</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Futura MdCn BT" SIZE="-1"></TD></TR>
<TR VALIGN="TOP"><TD></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Futura MdCn BT" SIZE="-1">	Diluted</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG>$</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG>13,597</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG></STRONG>$</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Futura MdCn BT" SIZE="-1">13,580</FONT><FONT FACE="Tms Rmn"></FONT></TD>
<TD><FONT FACE="Tms Rmn"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Tms Rmn"></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG>$</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG>29,645</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG></STRONG>$</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Futura MdCn BT" SIZE="-1">26,562</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Futura MdCn BT" 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="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG></STRONG></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG></STRONG></FONT><FONT FACE="Futura MdCn BT" SIZE="-1">Funds from operations per</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<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="Futura MdCn BT" SIZE="-1"><STRONG></STRONG></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG></STRONG></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG></STRONG></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"></FONT><FONT FACE="Futura MdCn BT" SIZE="-1">	Basic</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG>$</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG>.50</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG></STRONG>$</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Futura MdCn BT" SIZE="-1">.51</FONT><FONT FACE="Tms Rmn"></FONT></TD>
<TD><FONT FACE="Tms Rmn"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Tms Rmn"></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG>$</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG>1.09</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG></STRONG>$</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Futura MdCn BT" SIZE="-1">.99</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Futura MdCn BT" SIZE="-1"></TD></TR>
<TR VALIGN="TOP"><TD></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Futura MdCn BT" SIZE="-1">	Diluted</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG>$</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG>.49</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG></STRONG>$</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Futura MdCn BT" SIZE="-1">.50</FONT><FONT FACE="Tms Rmn"></FONT></TD>
<TD><FONT FACE="Tms Rmn"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Tms Rmn"></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG>$</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG>1.09</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG></STRONG>$</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Futura MdCn BT" SIZE="-1">.99</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Futura MdCn BT" SIZE="-1"></TD></TR>
<TR VALIGN="TOP"><TD></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Futura MdCn BT" SIZE="-1">Weighted average common shares</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<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="Futura MdCn BT" SIZE="-1"><STRONG></STRONG></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG></STRONG></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG></STRONG></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"></FONT><FONT FACE="Futura MdCn BT" SIZE="-1">	Basic</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG>27,267,605</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG></STRONG>26,720,197</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Futura MdCn BT" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG>27,021,60</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG></STRONG>26,704,594</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Futura MdCn BT" SIZE="-1"></TD></TR></TABLE>

<TABLE WIDTH="100%">
<TR VALIGN="TOP"><TD></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Futura MdCn BT" SIZE="-1">	Diluted shares for net</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG>27,534,171</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG></TD>
<TD ALIGN="RIGHT"></STRONG></FONT><FONT FACE="Futura MdCn BT" SIZE="-1">26,976,36</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Futura MdCn BT" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG></STRONG></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG>27,299,44</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG></STRONG>26,960,445</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Futura MdCn BT" SIZE="-1"></TD></TR>
<TR VALIGN="TOP"><TD></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Futura MdCn BT" SIZE="-1">	Diluted shares for FFO</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG>27,534,171</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG></TD>
<TD ALIGN="RIGHT"></STRONG></FONT><FONT FACE="Futura MdCn BT" SIZE="-1">26,976,36</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Futura MdCn BT" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG></STRONG></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG>27,299,44</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG></STRONG>26,960,445</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Futura MdCn BT" 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="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG></STRONG></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG></STRONG></FONT><FONT FACE="Futura MdCn BT" SIZE="-1">Dividends per common share</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG>$</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG>.4250</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG></STRONG>$</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Futura MdCn BT" SIZE="-1">.40</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Futura MdCn BT" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG>$</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG>.85</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG></STRONG>$      </FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Futura MdCn BT" SIZE="-1">.80</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Futura MdCn BT" 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>

<BR WP="BR1"><BR WP="BR2">
<BR WP="BR1"><BR WP="BR2">
<P ALIGN="CENTER"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG></STRONG></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG></STRONG></FONT><FONT FACE="Futura MdCn BT" SIZE="-1">-more-</FONT></P>

<BR WP="BR1"><BR WP="BR2">
<P><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Futura MdCn BT" SIZE="-1">Page 3 NHI's Second Quarter Results</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></P>

<TABLE WIDTH="100%">
<TR VALIGN="TOP"><TD><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG>Balance Sheet Data</STRONG></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<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="Futura MdCn BT" SIZE="-1"><STRONG></STRONG></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG></STRONG></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG></STRONG></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"></FONT><FONT FACE="Futura MdCn BT" SIZE="-1">(in thousands)</EM></FONT><FONT FACE="Tms Rmn"></FONT></TD>
<TD><FONT FACE="Tms Rmn">
<P ALIGN="RIGHT"></FONT><FONT FACE="Times New Roman" SIZE="-1"><STRONG><U></U>June 30</STRONG></FONT><FONT FACE="Tms Rmn"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"></FONT><FONT FACE="Futura MdCn BT" SIZE="-1">Decembe</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD></TR></TABLE>

<TABLE WIDTH="100%">
<TR VALIGN="TOP"><TD></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG></STRONG></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG>2004</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG></TD>
<TD ALIGN="RIGHT"></STRONG></FONT><FONT FACE="Futura MdCn BT" SIZE="-1">2003</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Futura MdCn BT" SIZE="-1"></TD></TR>
<TR VALIGN="TOP"><TD></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Futura MdCn BT" SIZE="-1">Real estate properties, net</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG>$</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG>281,677</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG></STRONG>$</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Futura MdCn BT" SIZE="-1">289,46</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Futura MdCn BT" SIZE="-1"></TD></TR>
<TR VALIGN="TOP"><TD></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Futura MdCn BT" SIZE="-1">Mortgages receivable, net</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG></STRONG></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG>143,019</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG></TD>
<TD ALIGN="RIGHT"></STRONG></FONT><FONT FACE="Futura MdCn BT" SIZE="-1">149,89</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Futura MdCn BT" SIZE="-1"></TD></TR>
<TR VALIGN="TOP"><TD></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Futura MdCn BT" SIZE="-1">Preferred stock investments</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG></STRONG></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG>38,132</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG></TD>
<TD ALIGN="RIGHT"></STRONG></FONT><FONT FACE="Futura MdCn BT" SIZE="-1">38,132</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Futura MdCn BT" SIZE="-1"></TD></TR>
<TR VALIGN="TOP"><TD></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Futura MdCn BT" SIZE="-1">REMIC investments</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG></STRONG></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG>-0-</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG></TD>
<TD ALIGN="RIGHT"></STRONG></FONT><FONT FACE="Futura MdCn BT" SIZE="-1">16,043</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Futura MdCn BT" SIZE="-1"></TD></TR>
<TR VALIGN="TOP"><TD></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Futura MdCn BT" SIZE="-1">Cash and marketable securities</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG></STRONG></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG>145,415</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG></TD>
<TD ALIGN="RIGHT"></STRONG></FONT><FONT FACE="Futura MdCn BT" SIZE="-1">120,52</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Futura MdCn BT" SIZE="-1"></TD></TR>
<TR VALIGN="TOP"><TD></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Futura MdCn BT" SIZE="-1">Debt</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG></STRONG></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG>156,608</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG></TD>
<TD ALIGN="RIGHT"></STRONG></FONT><FONT FACE="Futura MdCn BT" SIZE="-1">162,10</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Futura MdCn BT" SIZE="-1"></TD></TR>
<TR VALIGN="TOP"><TD></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Futura MdCn BT" SIZE="-1">Convertible debt</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG></STRONG></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG>1,185</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG></TD>
<TD ALIGN="RIGHT"></STRONG></FONT><FONT FACE="Futura MdCn BT" SIZE="-1">1,351</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Futura MdCn BT" SIZE="-1"></TD></TR>
<TR VALIGN="TOP"><TD></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Futura MdCn BT" SIZE="-1">Stockholders' equity</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG></STRONG></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG>413,873</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG></TD>
<TD ALIGN="RIGHT"></STRONG></FONT><FONT FACE="Futura MdCn BT" SIZE="-1">409,64</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Futura MdCn BT" SIZE="-1"></TD></TR>
<TR VALIGN="TOP"><TD></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD></TR></TABLE>
</P>
<BR WP="BR1"><BR WP="BR2">
<BR WP="BR1"><BR WP="BR2">
<P></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG>Reconciliation of Funds From Operations <SUP>(1)</SUP></FONT></P>

<BR WP="BR1"><BR WP="BR2">
<P><FONT FACE="Futura MdCn BT" 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="Futura MdCn BT" SIZE="-1"><EM></EM></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><EM>(in thousands, except share and per share amounts)</EM></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="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG><U></U></STRONG></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG><U></U></STRONG></FONT>Three Months Ended</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="CENTER"></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><U></U></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><U></U></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Futura MdCn BT" SIZE="-1">Six Months Ended</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD></TR></TABLE>

<TABLE WIDTH="100%">
<TR VALIGN="TOP"><TD></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG><U></U></STRONG></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG><U></U>2004</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG></TD>
<TD ALIGN="RIGHT"></STRONG><U></U></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><U></U>2003</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Futura MdCn BT" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"><U></U></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><U><STRONG></U></STRONG></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG><U></U>2004</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG></TD>
<TD ALIGN="RIGHT"></STRONG><U></U></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><U></U>2003</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT FACE="Tms Rmn" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD></TR>
<TR VALIGN="TOP"><TD></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG></STRONG></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG></STRONG></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG></STRONG></FONT><FONT FACE="Futura MdCn BT" SIZE="-1">Net income</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG>$</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG>11,961</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG></STRONG>$</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Futura MdCn BT" SIZE="-1">10,816</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Futura MdCn BT" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG>$</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG>25,396</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG></STRONG>$</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Futura MdCn BT" SIZE="-1">22,936</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Futura MdCn BT" SIZE="-1">Dividends to preferred stockholders</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG></STRONG></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG>(117)</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG></TD>
<TD ALIGN="RIGHT"></STRONG></FONT><FONT FACE="Futura MdCn BT" SIZE="-1">(398)</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Futura MdCn BT" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG></STRONG></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG>(514)</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG></TD>
<TD ALIGN="RIGHT"></STRONG></FONT><FONT FACE="Futura MdCn BT" SIZE="-1">(795)</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Futura MdCn BT" SIZE="-1">Net income applicable to common</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG></STRONG></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG>11,844</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG></TD>
<TD ALIGN="RIGHT"></STRONG></FONT><FONT FACE="Futura MdCn BT" SIZE="-1">10,418</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Futura MdCn BT" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG></STRONG></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG>24,882</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG></STRONG> </FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Futura MdCn BT" SIZE="-1">22,141</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Futura MdCn BT" SIZE="-1">Elimination of non-cash items in net</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD></TR>
<TR VALIGN="TOP"><TD></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG></STRONG></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG></STRONG></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG></STRONG></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"></FONT><FONT FACE="Futura MdCn BT" SIZE="-1">        Real estate depreciation</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG></STRONG></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG>2,972</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG></TD>
<TD ALIGN="RIGHT"></STRONG></FONT><FONT FACE="Futura MdCn BT" SIZE="-1">3,063</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Futura MdCn BT" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG></STRONG></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG>5,941</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG></TD>
<TD ALIGN="RIGHT"></STRONG></FONT><FONT FACE="Futura MdCn BT" SIZE="-1">6,153</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Futura MdCn BT" SIZE="-1">        Real estate depreciation in</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD></TR>
<TR VALIGN="TOP"><TD></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG></STRONG></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG></STRONG></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG></STRONG></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"></FONT><FONT FACE="Futura MdCn BT" SIZE="-1">              operations</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG>      </STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG>3</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG></TD>
<TD ALIGN="RIGHT"></STRONG></FONT><FONT FACE="Futura MdCn BT" SIZE="-1">61</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Futura MdCn BT" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG></STRONG></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG>12</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG></TD>
<TD ALIGN="RIGHT"></STRONG></FONT><FONT FACE="Futura MdCn BT" SIZE="-1">121</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Futura MdCn BT" SIZE="-1">    	Gain on sale of real estate</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG></STRONG></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG>(1,252)</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG></TD>
<TD ALIGN="RIGHT"></STRONG></FONT><FONT FACE="Futura MdCn BT" SIZE="-1">---</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Futura MdCn BT" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG></STRONG></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG>(1,252)</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG></TD>
<TD ALIGN="RIGHT"></STRONG></FONT><FONT FACE="Futura MdCn BT" SIZE="-1">(1,932)</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Futura MdCn BT" SIZE="-1">Basic funds from operations</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD></TR>
<TR VALIGN="TOP"><TD></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG></STRONG></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG></STRONG></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG></STRONG></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"></FONT><FONT FACE="Futura MdCn BT" SIZE="-1">	common stockholders</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG></STRONG></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG>13,567</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG></TD>
<TD ALIGN="RIGHT"></STRONG></FONT><FONT FACE="Futura MdCn BT" SIZE="-1">13,542</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Futura MdCn BT" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG></STRONG></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG>29,583</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG></TD>
<TD ALIGN="RIGHT"></STRONG></FONT><FONT FACE="Futura MdCn BT" SIZE="-1">26,483</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT FACE="Tms Rmn" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD></TR>
<TR VALIGN="TOP"><TD></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG></STRONG></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG></STRONG></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG></STRONG></FONT><FONT FACE="Futura MdCn BT" SIZE="-1">Interest on convertible subordinated</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG></STRONG></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG>30</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG></TD>
<TD ALIGN="RIGHT"></STRONG></FONT><FONT FACE="Futura MdCn BT" SIZE="-1">38</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Futura MdCn BT" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG></STRONG></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG>62</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG></TD>
<TD ALIGN="RIGHT"></STRONG></FONT><FONT FACE="Futura MdCn BT" SIZE="-1">79</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT FACE="Tms Rmn" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD></TR>
<TR VALIGN="TOP"><TD></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG></STRONG></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG></STRONG></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG></STRONG></FONT><FONT FACE="Futura MdCn BT" SIZE="-1">Diluted funds from operations</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD></TR>
<TR VALIGN="TOP"><TD></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG></STRONG></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG></STRONG></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG></STRONG></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"></FONT><FONT FACE="Futura MdCn BT" SIZE="-1">	common stockholders</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG>$</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG>13,597</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG></STRONG>$</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Futura MdCn BT" SIZE="-1">13,580</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Futura MdCn BT" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG>$</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG>29,645</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG></STRONG>$</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Futura MdCn BT" SIZE="-1">26,562</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT FACE="Tms Rmn" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD></TR>
<TR VALIGN="TOP"><TD></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG></STRONG></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG></STRONG></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG></STRONG></FONT><FONT FACE="Futura MdCn BT" SIZE="-1">Basic funds from operations per</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG>$</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG>.50</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG></STRONG>$</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Futura MdCn BT" SIZE="-1">.51</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Futura MdCn BT" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG>$</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG>1.09</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG></STRONG>$</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Futura MdCn BT" SIZE="-1">.99</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Futura MdCn BT" SIZE="-1">Diluted funds from operations per</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG>$</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG>.49</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG></STRONG>$</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Futura MdCn BT" SIZE="-1">.50</FONT><FONT FACE="Tms Rmn"></FONT></TD>
<TD><FONT FACE="Tms Rmn"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Tms Rmn"></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG>$</STRONG></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG>1.09</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG></STRONG>$</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Futura MdCn BT" SIZE="-1">.99</FONT><FONT FACE="Tms Rmn"></FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT FACE="Tms Rmn"></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="Tms Rmn"></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG></STRONG></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG></STRONG></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG></STRONG></FONT><FONT FACE="Futura MdCn BT" SIZE="-1">Shares for basic funds from</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG></STRONG></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG>27,267,60</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG></TD>
<TD ALIGN="RIGHT"></STRONG></FONT><FONT FACE="Futura MdCn BT" SIZE="-1">26,720,1</FONT><FONT FACE="Tms Rmn"></FONT></TD>
<TD><FONT FACE="Tms Rmn"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Tms Rmn"></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG></STRONG></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG>27,021,60</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG></TD>
<TD ALIGN="RIGHT"></STRONG></FONT><FONT FACE="Futura MdCn BT" SIZE="-1">26,704,5</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD></TR></TABLE>

<TABLE WIDTH="100%">
<TR VALIGN="TOP"><TD><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Futura MdCn BT" SIZE="-1">Shares for diluted funds from operations</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG>27,534,17</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG></TD>
<TD ALIGN="RIGHT"></STRONG></FONT><FONT FACE="Futura MdCn BT" SIZE="-1">26,976,3</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Futura MdCn BT" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"><STRONG></STRONG></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG></STRONG></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG>27,299,44</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Futura MdCn BT" SIZE="-1"><STRONG></TD>
<TD ALIGN="RIGHT"></STRONG></FONT><FONT FACE="Futura MdCn BT" SIZE="-1">26,960,4</FONT><FONT FACE="Tms Rmn" SIZE="-1"></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>
<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>

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

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

<BR WP="BR1"><BR WP="BR2">
<BR WP="BR1"><BR WP="BR2">
<P><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Futura MdCn BT" SIZE="-1"></FONT><FONT FACE="Futura MdCn BT" SIZE="-1">Page 4 NHI's Second Quarter Results</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></P>

<TABLE WIDTH="100%">
<TR VALIGN="TOP"><TD ALIGN="CENTER"><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"><STRONG>National Health Investors, Inc.  Portfolio Summary  June 30, 2004</STRONG></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD></TR></TABLE>

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

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

<TABLE WIDTH="100%">
<TR VALIGN="TOP"><TD></TD>
<TD></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">Properties</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">Investment</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">Percentage</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT FACE="Tms Rmn" SIZE="-1"></TD>
<TD></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">Equity Ownership</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">92</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">$   281,677,000 </FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">66%</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT FACE="Tms Rmn" SIZE="-1"></TD>
<TD></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">Mortgage Loan Receivables</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">70</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">143,019,000 </FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">34%</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT FACE="Tms Rmn" SIZE="-1"></TD>
<TD></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">Total Real Estate Portfolio</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">  162</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">   $   424,696,000 </FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">100%</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD></TR></TABLE>

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

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

<TABLE WIDTH="100%">
<TR VALIGN="TOP"><TD><FONT FACE="Tms Rmn" SIZE="-1">&nbsp;</FONT><FONT FACE="Arial" SIZE="-1"></FONT></TD>
<TD><FONT FACE="Arial" SIZE="-1">Nursing Homes</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">66</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">8,950</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"> $     180,120,000 </FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT FACE="Tms Rmn" SIZE="-1">&nbsp;</FONT><FONT FACE="Arial" SIZE="-1"></FONT></TD>
<TD><FONT FACE="Arial" SIZE="-1">Assisted Living</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">16</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">1,438</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">              71,602,000 </FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT FACE="Tms Rmn" SIZE="-1">&nbsp;</FONT><FONT FACE="Arial" SIZE="-1"></FONT></TD>
<TD><FONT FACE="Arial" SIZE="-1">Medical Office Buildings</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">4</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">124,427 sq.ft.</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">              11,098,000 </FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT FACE="Tms Rmn" SIZE="-1">&nbsp;</FONT><FONT FACE="Arial" SIZE="-1"></FONT></TD>
<TD><FONT FACE="Arial" SIZE="-1">Retirement Homes</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">5</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">426</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">              11,057,000 </FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT FACE="Tms Rmn" SIZE="-1">&nbsp;</FONT><FONT FACE="Arial" SIZE="-1"></FONT></TD>
<TD><FONT FACE="Arial" SIZE="-1">Hospitals</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">1</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">55</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">               7,800,000 </FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT FACE="Tms Rmn" SIZE="-1"></TD>
<TD></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">92</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Tms Rmn" SIZE="-1">&nbsp;</FONT><FONT FACE="Arial" SIZE="-1"><STRONG></STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"><STRONG></STRONG>$     281,677,000</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD></TR></TABLE>

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

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

<TABLE WIDTH="100%">
<TR VALIGN="TOP"><TD><FONT FACE="Tms Rmn" SIZE="-1">&nbsp;</FONT><FONT FACE="Arial" SIZE="-1"></FONT></TD>
<TD><FONT FACE="Arial" SIZE="-1">Nursing Homes</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">51</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">5,585</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"> $     130,750,000 </FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT FACE="Tms Rmn" SIZE="-1">&nbsp;</FONT><FONT FACE="Arial" SIZE="-1"></FONT></TD>
<TD><FONT FACE="Arial" SIZE="-1">Assisted Living</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">1</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">90</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">               5,634,000 </FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT FACE="Tms Rmn" SIZE="-1">&nbsp;</FONT><FONT FACE="Arial" SIZE="-1"></FONT></TD>
<TD><FONT FACE="Arial" SIZE="-1">Retirement Homes</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">1</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">60</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">               2,125,000 </FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT FACE="Tms Rmn" SIZE="-1">&nbsp;</FONT><FONT FACE="Arial" SIZE="-1"></FONT></TD>
<TD><FONT FACE="Arial" SIZE="-1">Developmentally Disabled</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">17</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">108</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">               4,510,000 </FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT FACE="Tms Rmn" SIZE="-1">&nbsp;</FONT><FONT FACE="Arial" SIZE="-1"></FONT></TD>
<TD><FONT FACE="Arial" SIZE="-1">&nbsp;</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">70</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Tms Rmn" SIZE="-1">&nbsp;</FONT><FONT FACE="Arial" SIZE="-1"><STRONG></STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"><STRONG></STRONG> $     143,019,000 </FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT FACE="Tms Rmn" SIZE="-1"></TD>
<TD></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">REMIC II Investment </FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"><STRONG>-&nbsp;</STRONG></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">2,313</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">-</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT FACE="Tms Rmn" SIZE="-1"></TD>
<TD></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">&nbsp;Total Mortgage Portfolio</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">70</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Tms Rmn" SIZE="-1">&nbsp;</FONT><FONT FACE="Arial" SIZE="-1"><STRONG></STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"><STRONG></STRONG>  $     143,019,000 </FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT FACE="Tms Rmn" SIZE="-1">&nbsp;</FONT><FONT FACE="Arial" SIZE="-1"></FONT></TD>
<TD><FONT FACE="Arial" SIZE="-1">&nbsp;</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Tms Rmn" SIZE="-1">&nbsp;</FONT><FONT FACE="Arial" SIZE="-1"></FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1">&nbsp;</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD><FONT FACE="Tms Rmn" SIZE="-1">&nbsp;</FONT></TD></TR></TABLE>

<TABLE WIDTH="100%">
<TR VALIGN="TOP"><TD><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">Summary of Facilities By Type:</FONT></TD>
<TD><FONT FACE="Arial" SIZE="-1">&nbsp;</FONT></TD>
<TD><FONT FACE="Arial" SIZE="-1">&nbsp;</FONT></TD>
<TD><FONT FACE="Arial" SIZE="-1">&nbsp;</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD></TR></TABLE>

<TABLE WIDTH="100%">
<TR VALIGN="TOP"><TD><FONT FACE="Tms Rmn" SIZE="-1">&nbsp;</FONT><FONT FACE="Arial" SIZE="-1"></FONT></TD>
<TD><FONT FACE="Arial" SIZE="-1">&nbsp;</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">Percentage of </FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">Total </FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT FACE="Tms Rmn" SIZE="-1">&nbsp;</FONT><FONT FACE="Arial" SIZE="-1"></FONT></TD>
<TD><FONT FACE="Arial" SIZE="-1">&nbsp;</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">Properties</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">Total Dollars</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">Dollars</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT FACE="Tms Rmn" SIZE="-1">&nbsp;</FONT><FONT FACE="Arial" SIZE="-1"></FONT></TD>
<TD><FONT FACE="Arial" SIZE="-1">Nursing Homes</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">117</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">73.20%</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"> $    310,870,000 </FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT FACE="Tms Rmn" SIZE="-1">&nbsp;</FONT><FONT FACE="Arial" SIZE="-1"></FONT></TD>
<TD><FONT FACE="Arial" SIZE="-1">Assisted Living</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">17</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">18.19%</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">              77,236,000 </FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT FACE="Tms Rmn" SIZE="-1">&nbsp;</FONT><FONT FACE="Arial" SIZE="-1"></FONT></TD>
<TD><FONT FACE="Arial" SIZE="-1">Medical Office Buildings</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">4</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">2.61%</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">              11,098,000 </FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT FACE="Tms Rmn" SIZE="-1">&nbsp;</FONT><FONT FACE="Arial" SIZE="-1"></FONT></TD>
<TD><FONT FACE="Arial" SIZE="-1">Retirement Homes</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">6</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">3.10%</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">              13,182,000 </FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT FACE="Tms Rmn" SIZE="-1">&nbsp;</FONT><FONT FACE="Arial" SIZE="-1"></FONT></TD>
<TD><FONT FACE="Arial" SIZE="-1">Hospitals</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">1</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">1.84%</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">               7,800,000 </FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT FACE="Tms Rmn" SIZE="-1">&nbsp;</FONT><FONT FACE="Arial" SIZE="-1"></FONT></TD>
<TD><FONT FACE="Arial" SIZE="-1">Developmentally Disabled</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">17</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">1.06%</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">               4,510,000 </FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT FACE="Tms Rmn" SIZE="-1">&nbsp;</FONT><FONT FACE="Arial" SIZE="-1"></FONT></TD>
<TD><FONT FACE="Arial" SIZE="-1">&nbsp;</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">162</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">100.00%</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"> $    424,696,000 </FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT FACE="Tms Rmn" SIZE="-1">&nbsp;</FONT><FONT FACE="Arial" SIZE="-1"></FONT></TD>
<TD><FONT FACE="Arial" SIZE="-1"></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="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">Portfolio by Operator Type</FONT></TD>
<TD><FONT FACE="Arial" SIZE="-1">&nbsp;</FONT></TD>
<TD><FONT FACE="Arial" SIZE="-1">&nbsp;</FONT></TD>
<TD><FONT FACE="Arial" SIZE="-1">&nbsp;</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD></TR></TABLE>

<TABLE WIDTH="100%">
<TR VALIGN="TOP"><TD><FONT FACE="Tms Rmn" SIZE="-1">&nbsp;</FONT><FONT FACE="Arial" SIZE="-1"></FONT></TD>
<TD><FONT FACE="Arial" SIZE="-1">&nbsp;</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"># of </FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">Percentage of </FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">Total </FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT FACE="Tms Rmn" SIZE="-1">&nbsp;</FONT><FONT FACE="Arial" SIZE="-1"></FONT></TD>
<TD><FONT FACE="Arial" SIZE="-1">&nbsp;</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">Properties</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">Total Dollars</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">Dollars</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT FACE="Tms Rmn" SIZE="-1">&nbsp;</FONT><FONT FACE="Arial" SIZE="-1"></FONT></TD>
<TD><FONT FACE="Arial" SIZE="-1">&nbsp;</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1">&nbsp;</FONT><FONT FACE="Arial" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">&nbsp;</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD><FONT FACE="Tms Rmn" SIZE="-1">&nbsp;</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT FACE="Tms Rmn" SIZE="-1">&nbsp;</FONT><FONT FACE="Arial" SIZE="-1"></FONT></TD>
<TD><FONT FACE="Arial" SIZE="-1">Public</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">72</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">29.16%</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">         $    123,821,000 </FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT FACE="Tms Rmn" SIZE="-1">&nbsp;</FONT><FONT FACE="Arial" SIZE="-1"></FONT></TD>
<TD><FONT FACE="Arial" SIZE="-1">Regional</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">84</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">67.88%</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">               288,300,000 </FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT FACE="Tms Rmn" SIZE="-1">&nbsp;</FONT><FONT FACE="Arial" SIZE="-1"></FONT></TD>
<TD><FONT FACE="Arial" SIZE="-1">Small Operator</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">6</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">2.96%</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">                 12,575,000 </FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT FACE="Tms Rmn" SIZE="-1">&nbsp;</FONT><FONT FACE="Arial" SIZE="-1"></FONT></TD>
<TD><FONT FACE="Arial" SIZE="-1">&nbsp;</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">162</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">100.00%</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">         $    424,696,000 </FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT FACE="Tms Rmn" SIZE="-1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD ALIGN="CENTER"></TD></TR>
<TR VALIGN="TOP"><TD></TD>
<TD ALIGN="CENTER"></TD>
<TD ALIGN="CENTER"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Tms Rmn" SIZE="-1">Percentage </FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD></TR>
<TR VALIGN="TOP"><TD ALIGN="CENTER"></TD>
<TD ALIGN="CENTER"></TD>
<TD ALIGN="CENTER"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Tms Rmn" SIZE="-1">Of Total</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">Dollar</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD></TR>
<TR VALIGN="TOP"><TD ALIGN="CENTER"><FONT FACE="Tms Rmn" SIZE="-1"></TD>
<TD></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">OPERATOR</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Tms Rmn" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">Portfolio</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">Amount</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT FACE="Tms Rmn" SIZE="-1"></TD>
<TD></TD>
<TD ALIGN="CENTER"></TD>
<TD></TD>
<TD></TD></TR>
<TR VALIGN="TOP"><TD ALIGN="CENTER"></TD>
<TD></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">National HealthCare Corp.</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Tms Rmn" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">13.41%</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Helv" SIZE="-1">          $     56,935,000 </FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD></TR>
<TR VALIGN="TOP"><TD ALIGN="CENTER"><FONT FACE="Tms Rmn" SIZE="-1"></TD>
<TD></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Helv" SIZE="-1">National Health Investors, Inc.</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Tms Rmn" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">4.77%</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Helv" SIZE="-1">                 20,255,000 </FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD></TR>
<TR VALIGN="TOP"><TD ALIGN="CENTER"><FONT FACE="Tms Rmn" SIZE="-1"></TD>
<TD></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Helv" SIZE="-1">Community Health Systems, Inc.</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Tms Rmn" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">3.38%</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Helv" SIZE="-1">                 14,368,000 </FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD></TR>
<TR VALIGN="TOP"><TD ALIGN="CENTER"><FONT FACE="Tms Rmn" SIZE="-1"></TD>
<TD></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Helv" SIZE="-1">Sunrise Senior Living Services</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Tms Rmn" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">3.28%</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Helv" SIZE="-1">                 13,921,000 </FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD></TR>
<TR VALIGN="TOP"><TD ALIGN="CENTER"><FONT FACE="Tms Rmn" SIZE="-1"></TD>
<TD></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Helv" SIZE="-1">Sun Healthcare</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Tms Rmn" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">2.19%</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Helv" SIZE="-1">                   9,302,000 </FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD></TR>
<TR VALIGN="TOP"><TD ALIGN="CENTER"><FONT FACE="Tms Rmn" SIZE="-1"></TD>
<TD></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Helv" SIZE="-1">HCA-The Healthcare Company</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Tms Rmn" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">1.07%</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Helv" SIZE="-1">                   4,530,000 </FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD></TR>
<TR VALIGN="TOP"><TD ALIGN="CENTER"><FONT FACE="Tms Rmn" SIZE="-1"></TD>
<TD></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Helv" SIZE="-1">Res-Care, Inc.</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Tms Rmn" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">1.06%</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Helv" SIZE="-1">                   4,510,000 </FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD></TR>
<TR VALIGN="TOP"><TD ALIGN="CENTER"><FONT FACE="Tms Rmn" SIZE="-1"></TD>
<TD></TD>
<TD ALIGN="CENTER"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">29.16%</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Helv" SIZE="-1">          $   123,821,000 </FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD></TR></TABLE>

<TABLE WIDTH="100%">
<TR VALIGN="TOP"><TD></TD>
<TD ALIGN="CENTER">
<BR WP="BR1"><BR WP="BR2"><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT>- more -<FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD></TR></TABLE>

<BR WP="BR1"><BR WP="BR2">
<P><FONT FACE="Futura MdCn BT" SIZE="-1">Page 5 NHI's Second Quarter Results</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></P>

<TABLE WIDTH="100%">
<TR VALIGN="TOP"><TD ALIGN="CENTER"></TD></TR>
<TR VALIGN="TOP"><TD ALIGN="CENTER"><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"><STRONG>Summary of Facilities by State - June 30, 2004</STRONG></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD></TR>
<TR VALIGN="TOP"><TD ALIGN="CENTER"><FONT FACE="Tms Rmn" SIZE="-1"></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><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">Percent of</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT FACE="Tms Rmn" SIZE="-1"></TD>
<TD></TD>
<TD ALIGN="CENTER"></TD>
<TD ALIGN="CENTER"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">Acute </FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="CENTER"></FONT><FONT FACE="Arial" SIZE="-1">Dev.</FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1">Asst.</FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1">Retire-</FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="CENTER"></FONT><FONT FACE="Arial" SIZE="-1">Current</FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1">Total</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT FACE="Tms Rmn" SIZE="-1"></TD>
<TD></TD>
<TD ALIGN="CENTER"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">LTC</FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1">Care</FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1">MOB</FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1">Disab.</FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1">Living</FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1">Ment</FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1">Total</FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1">Amount</FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1">Portfolio</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD></TR>
<TR VALIGN="TOP"><TD ALIGN="CENTER"><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">1</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">Florida</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">19</FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="CENTER"></FONT><FONT FACE="Arial" SIZE="-1">1</FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1">14</FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1">6</FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="CENTER"></FONT><FONT FACE="Arial" SIZE="-1">40</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">
$112,964,000 </FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">26.60%</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD></TR>
<TR VALIGN="TOP"><TD ALIGN="CENTER"><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">2</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">Texas</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">27</FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="CENTER"></FONT><FONT FACE="Arial" SIZE="-1">2</FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="CENTER"></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">31</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">
93,648,000 </FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">22.05%</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD></TR>
<TR VALIGN="TOP"><TD ALIGN="CENTER"><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">3</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">Tennessee</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">21</FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="CENTER"></TD>
<TD ALIGN="CENTER"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">3</FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1">3</FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1">2</FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1">29</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">
38,332,000 </FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">9.03%</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD></TR>
<TR VALIGN="TOP"><TD ALIGN="CENTER"><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">4</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">Missouri</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">9</FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="CENTER"></TD>
<TD ALIGN="CENTER"></TD>
<TD ALIGN="CENTER"></TD>
<TD ALIGN="CENTER"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">1</FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1">10</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">
27,085,000 </FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">6.38%</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD></TR>
<TR VALIGN="TOP"><TD ALIGN="CENTER"><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">5</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">New Jersey</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">2</FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="CENTER"></TD>
<TD ALIGN="CENTER"></TD>
<TD ALIGN="CENTER"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">1</FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="CENTER"></FONT><FONT FACE="Arial" SIZE="-1">3</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">
26,455,000 </FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">6.23%</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD></TR>
<TR VALIGN="TOP"><TD ALIGN="CENTER"><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">6</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">Arizona</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">1</FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="CENTER"></TD>
<TD ALIGN="CENTER"></TD>
<TD ALIGN="CENTER"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">4</FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="CENTER"></FONT><FONT FACE="Arial" SIZE="-1">5</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">
19,289,000 </FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">4.54%</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD></TR>
<TR VALIGN="TOP"><TD ALIGN="CENTER"><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">7</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">Virginia</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">7</FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="CENTER"></TD>
<TD ALIGN="CENTER"></TD>
<TD ALIGN="CENTER"></TD>
<TD ALIGN="CENTER"></TD>
<TD ALIGN="CENTER"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">7</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">
18,889,000 </FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">4.45%</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD></TR>
<TR VALIGN="TOP"><TD ALIGN="CENTER"><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">8</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">Georgia</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">7</FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="CENTER"></TD>
<TD ALIGN="CENTER"></TD>
<TD ALIGN="CENTER"></TD>
<TD ALIGN="CENTER"></TD>
<TD ALIGN="CENTER"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">7</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">
17,040,000 </FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">4.01%</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD></TR>
<TR VALIGN="TOP"><TD ALIGN="CENTER"><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">9</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">New Hampshire</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">3</FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="CENTER"></TD>
<TD ALIGN="CENTER"></TD>
<TD ALIGN="CENTER"></TD>
<TD ALIGN="CENTER"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">1</FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1">4</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">
16,336,000 </FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">3.85%</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD></TR>
<TR VALIGN="TOP"><TD ALIGN="CENTER"><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">10</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">Massachusetts</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">4</FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="CENTER"></TD>
<TD ALIGN="CENTER"></TD>
<TD ALIGN="CENTER"></TD>
<TD ALIGN="CENTER"></TD>
<TD ALIGN="CENTER"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">4</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">
11,973,000 </FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">2.82%</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD></TR>
<TR VALIGN="TOP"><TD ALIGN="CENTER"><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">11</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">Kansas</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">7</FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="CENTER"></TD>
<TD ALIGN="CENTER"></TD>
<TD ALIGN="CENTER"></TD>
<TD ALIGN="CENTER"></TD>
<TD ALIGN="CENTER"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">7</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">
11,646,000 </FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">2.74%</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD></TR>
<TR VALIGN="TOP"><TD ALIGN="CENTER"><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">12</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">Kentucky</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">3</FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1">1</FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="CENTER"></TD>
<TD ALIGN="CENTER"></TD>
<TD ALIGN="CENTER"></TD>
<TD ALIGN="CENTER"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">4</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">
9,546,000 </FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">2.25%</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD></TR>
<TR VALIGN="TOP"><TD ALIGN="CENTER"><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">13</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">South Carolina</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">3</FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="CENTER"></TD>
<TD ALIGN="CENTER"></TD>
<TD ALIGN="CENTER"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">1</FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="CENTER"></FONT><FONT FACE="Arial" SIZE="-1">4</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">
8,423,000 </FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">1.98%</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD></TR>
<TR VALIGN="TOP"><TD ALIGN="CENTER"><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">14</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">Idaho</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">1</FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="CENTER"></TD>
<TD ALIGN="CENTER"></TD>
<TD ALIGN="CENTER"></TD>
<TD ALIGN="CENTER"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">1</FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1">2</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">
5,624,000 </FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">1.32%</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD></TR>
<TR VALIGN="TOP"><TD ALIGN="CENTER"><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">15</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">Alabama</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">2</FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="CENTER"></TD>
<TD ALIGN="CENTER"></TD>
<TD ALIGN="CENTER"></TD>
<TD ALIGN="CENTER"></TD>
<TD ALIGN="CENTER"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">2</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">
2,417,000 </FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">0.57%</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD></TR>
<TR VALIGN="TOP"><TD ALIGN="CENTER"><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">16</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">North Carolina</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">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><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">
1,979,000 </FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">0.47%</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD></TR>
<TR VALIGN="TOP"><TD ALIGN="CENTER"><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">17</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">Illinois</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">0</FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="CENTER"></FONT><FONT FACE="Arial" SIZE="-1">1</FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="CENTER"></TD>
<TD ALIGN="CENTER"></TD>
<TD ALIGN="CENTER"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">1</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">
1,609,000 </FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">0.38%</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD></TR>
<TR VALIGN="TOP"><TD ALIGN="CENTER"><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">18</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">Wisconsin</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">1</FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="CENTER"></TD>
<TD ALIGN="CENTER"></TD>
<TD ALIGN="CENTER"></TD>
<TD ALIGN="CENTER"></TD>
<TD ALIGN="CENTER"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">1</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">
1,441,000 </FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">0.33%</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD></TR>
<TR VALIGN="TOP"><TD ALIGN="CENTER"><FONT FACE="Tms Rmn" SIZE="-1"></TD>
<TD></TD>
<TD ALIGN="CENTER"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">117</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">17</FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1">6</FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1">162</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Tms Rmn" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">
$424,696,000 </FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">100.00%</FONT><FONT FACE="Tms Rmn" SIZE="-1"></FONT></TD></TR></TABLE>

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[{"type": "8-K", "sequence": "1", "filename": "nhi2q04er.htm", "description": "SECOND QUARTER EARNINGS RELEASE", "secsgml_size_bytes": 141348}]
{"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": "04957001"}, "business-address": {"street1": "100 VINE ST STE 1400", "street2": "CITY CENTER", "city": "MURFREESBORO", "state": "TN", "zip": "37130", "phone": "6158909100"}, "mail-address": {"street1": "P.O. BOX 1102", "city": "MURFREESBORO", "state": "TN", "zip": "37133-1102"}}
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.  20549
FORM 8-K
CURRENT REPORT PURSUANT
TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): August 6, 2004 (August 5, 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 5.  Other Events
On August 5, 2004, National Health Investors, Inc. announced its second quarter
earnings.  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: August 6, 2004
Exhibit Index
Number
Exhibit
99
Press release, dated August 5, 2004
EXHIBIT 99
For Release August 5, 2004
Contact: Gerald Coggin, Sr. VP of Investor Relations
Phone: (615) 890-9100
NHI reports second quarter income
MURFREESBORO, Tenn. -- National Health Investors, Inc., (NYSE: NHI) announced income
from continuing operations for the second quarter ended June 30 of $11,008,000, or 40 cents per
basic and diluted share of common stock compared to $11,230,000, or  41 cents per basic and 40
cents per diluted share of common stock for the same period in 2003.
Funds from operations ("FFO") for the second quarter ended June 30 was $13,567,000, or 50
cents per basic and $13,597,000, or 49 cents per diluted share of common stock compared to
$13,542,000, or 51 cents per basic and $13,580,000, or 50 cents per diluted share in 2003.
Income from continuing operations for the six months ended June 30, was $24,591,000 or 89
cents per basic and 88 cents per diluted share of common stock compared to $21,728,000 or 78 cents
per basic and diluted share of common stock for the same period in 2003.
For the six months ended June 30, FFO was $29,583,000 or $1.09 per basic and $29,645,000
or $1.09 per diluted share of common stock compared to $26,483,000 or 99 cents per basic and
$26,562,000 or 99 cents per diluted share in 2003.
Net income for the three months and six months ended June 30, was $11,961,000 and $25,396,000,
respectively, versus $10,816,000 and $22,936,000, respectively, for 2003.
For the second quarter of 2004, we sold two facilities resulting in a net gain of $1,252,000.  One facility located
in Bellingham, Washington was sold at a loss of $345,000 while the other facility located in Dawson Springs,
Kentucky was sold at a gain of $1,597,000.  For the second quarter of 2004, we also wrote off 100% of the
$3,339,000 carrying value of our 1995 REMIC and recorded a recovery of $2,246,000 from our 1993 REMIC.
National Health Investors, Inc. is a long-term health care real estate investment trust that
specializes in the financing of health care real estate by first mortgage and by purchase and leaseback
transactions. The common stock of the company trades on the New York Stock Exchange with the
symbol NHI. Additional information including NHI's most recent press releases may be obtained on
NHI's 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 Second Quarter Results
Condensed Statements of
(in thousands, except share and per share
Three Months Ended
Six Months Ended June
2004
2003
2004
2003
Revenues:
Mortgage interest income
$
4,818
$
4,705
$
9,669
$
10,248
Rental income
12,300
13,044
24,479
26,366
Facility operating revenue
20,769
19,833
41,169
38,954
37,887
37,582
75,317
75,568
Expenses:
Interest
3,083
3,176
6,203
7,164
Depreciation
3,481
3,743
7,016
7,513
Amortization of loan cost
37
40
74
223
Legal expense
769
265
918
184
Franchise and excise tax
66
67
136
463
General and administrative
1,064
720
1920
1,434
Loan, remic, and security
losses, net
1,093
---
(896)
1,500
Facility operating expenses
20,080
19,498
40,282
38,160
29,673
27,509
55,653
56,641
Income before non-operating income
8,214
10,073
19,664
18,927
Non-operating income
(investment
interest and other)
2,794
1,157
4,927
2,801
Income from continuing operations
11,008
11,230
24,591
21,728
Discontinued operations
Operating loss -
(299)
(414)
(447)
(724)
Gain on sale of real estate
1,252
---
1,252
1,932
953
(414)
805
1,208
Net Income
11,961
10,816
25,396
22,936
Dividends to preferred
117
398
514
795
Net income applicable to common
$
11,844
$
10,418
$
24,882
$
22,141
Income from continuing operations per common share:
Basic
$
.40
$
.41
$
.89
$
.78
Diluted
$
.40
$
.40
$
.88
$
.78
Discontinued operations per
Basic
$
.03
$
(.02)
$
.03
$
.05
Diluted
$
.03
$
(.01)
$
.03
$
.04
Net income per common share:
Basic
$
.43
$
.39
$
.92
$
.83
Diluted
$
.43
$
.39
$
.91
$
.82
Funds from operations
Basic
$
13,567
$
13,542
$
29,583
$
26,483
Diluted
$
13,597
$
13,580
$
29,645
$
26,562
Funds from operations per
Basic
$
.50
$
.51
$
1.09
$
.99
Diluted
$
.49
$
.50
$
1.09
$
.99
Weighted average common shares
Basic
27,267,605
26,720,197
27,021,60
26,704,594
Diluted shares for net
27,534,171
26,976,36
27,299,44
26,960,445
Diluted shares for FFO
27,534,171
26,976,36
27,299,44
26,960,445
Dividends per common share
$
.4250
$
.40
$
.85
$
.80
-more-
Page 3 NHI's Second Quarter Results
Balance Sheet Data
(in thousands)
June 30
Decembe
2004
2003
Real estate properties, net
$
281,677
$
289,46
Mortgages receivable, net
143,019
149,89
Preferred stock investments
38,132
38,132
REMIC investments
-0-
16,043
Cash and marketable securities
145,415
120,52
Debt
156,608
162,10
Convertible debt
1,185
1,351
Stockholders' equity
413,873
409,64
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
Six Months Ended
2004
2003
2004
2003
Net income
$
11,961
$
10,816
$
25,396
$
22,936
Dividends to preferred stockholders
(117)
(398)
(514)
(795)
Net income applicable to common
11,844
10,418
24,882
22,141
Elimination of non-cash items in net
Real estate depreciation
2,972
3,063
5,941
6,153
Real estate depreciation in
operations
3
61
12
121
Gain on sale of real estate
(1,252)
---
(1,252)
(1,932)
Basic funds from operations
common stockholders
13,567
13,542
29,583
26,483
Interest on convertible subordinated
30
38
62
79
Diluted funds from operations
common stockholders
$
13,597
$
13,580
$
29,645
$
26,562
Basic funds from operations per
$
.50
$
.51
$
1.09
$
.99
Diluted funds from operations per
$
.49
$
.50
$
1.09
$
.99
Shares for basic funds from
27,267,60
26,720,1
27,021,60
26,704,5
Shares for diluted funds from operations
27,534,17
26,976,3
27,299,44
26,960,4
(1)
Management believes that funds from operations is an important supplemental measure of operating performance for a
real estate investment trust. Because the historical cost accounting convention used for real estate assets requires straight-line depreciation (except on land), such accounting presentation implies that the value of real estate assets diminishes
predictably over time.  Since real estate values instead have historically risen and fallen with market conditions, presentations
of operating results for a real estate investment trust that use historical cost accounting for depreciation could be less
informative, and should be supplemented with a measure such as FFO.  The term FFO was designed by the real estate
investment trust industry to address this issue.  Our measure may not be comparable to similarly titled measures used by
other REITs.  Consequently, our funds from operations may not provide a meaningful measure of our performance as
compared to that of other REITs.  Since other REITs may not use our definition of FFO, caution should be exercised when
comparing our Company's FFO to that of other REITs.  Funds from operations in and of itself does not represent cash
generated from operating activities in accordance with GAAP (funds from operations does not include changes in operating
assets and liabilities) and therefore should not be considered an alternative to net earnings as an indication of operating
performance, or to net cash flow from operating activities as determined by GAAP in the United States, as a measure of
liquidity and is not necessarily indicative of cash available to fund cash needs.
-more-
Page 4 NHI's Second Quarter Results
National Health Investors, Inc.  Portfolio Summary  June 30, 2004
Portfolio Statistics
Investment
Properties
Investment
Percentage
Equity Ownership
92
$   281,677,000
66%
Mortgage Loan Receivables
70
143,019,000
34%
Total Real Estate Portfolio
162
$   424,696,000
100%
Equity Ownership
Properties
Beds
Investments
Nursing Homes
66
8,950
$     180,120,000
Assisted Living
16
1,438
71,602,000
Medical Office Buildings
4
124,427 sq.ft.
11,098,000
Retirement Homes
5
426
11,057,000
Hospitals
1
55
7,800,000
92
$     281,677,000
Mortgage Loan Receivables
Properties
Beds
Investments
Nursing Homes
51
5,585
$     130,750,000
Assisted Living
1
90
5,634,000
Retirement Homes
1
60
2,125,000
Developmentally Disabled
17
108
4,510,000
70
$     143,019,000
REMIC II Investment
-
2,313
-
Total Mortgage Portfolio
70
$     143,019,000
Summary of Facilities By Type:
Percentage of
Total
Properties
Total Dollars
Dollars
Nursing Homes
117
73.20%
$    310,870,000
Assisted Living
17
18.19%
77,236,000
Medical Office Buildings
4
2.61%
11,098,000
Retirement Homes
6
3.10%
13,182,000
Hospitals
1
1.84%
7,800,000
Developmentally Disabled
17
1.06%
4,510,000
162
100.00%
$    424,696,000
Portfolio by Operator Type
# of
Percentage of
Total
Properties
Total Dollars
Dollars
Public
72
29.16%
$    123,821,000
Regional
84
67.88%
288,300,000
Small Operator
6
2.96%
12,575,000
162
100.00%
$    424,696,000
Percentage
Of Total
Dollar
OPERATOR
Portfolio
Amount
National HealthCare Corp.
13.41%
$     56,935,000
National Health Investors, Inc.
4.77%
20,255,000
Community Health Systems, Inc.
3.38%
14,368,000
Sunrise Senior Living Services
3.28%
13,921,000
Sun Healthcare
2.19%
9,302,000
HCA-The Healthcare Company
1.07%
4,530,000
Res-Care, Inc.
1.06%
4,510,000
29.16%
$   123,821,000
- more -
Page 5 NHI's Second Quarter Results
Summary of Facilities by State - June 30, 2004
Percent of
Acute
Dev.
Asst.
Retire-
Current
Total
LTC
Care
MOB
Disab.
Living
Ment
Total
Amount
Portfolio
1
Florida
19
1
14
6
40
$112,964,000
26.60%
2
Texas
27
2
1
1
31
93,648,000
22.05%
3
Tennessee
21
3
3
2
29
38,332,000
9.03%
4
Missouri
9
1
10
27,085,000
6.38%
5
New Jersey
2
1
3
26,455,000
6.23%
6
Arizona
1
4
5
19,289,000
4.54%
7
Virginia
7
7
18,889,000
4.45%
8
Georgia
7
7
17,040,000
4.01%
9
New Hampshire
3
1
4
16,336,000
3.85%
10
Massachusetts
4
4
11,973,000
2.82%
11
Kansas
7
7
11,646,000
2.74%
12
Kentucky
3
1
4
9,546,000
2.25%
13
South Carolina
3
1
4
8,423,000
1.98%
14
Idaho
1
1
2
5,624,000
1.32%
15
Alabama
2
2
2,417,000
0.57%
16
North Carolina
0
1
1
1,979,000
0.47%
17
Illinois
0
1
1
1,609,000
0.38%
18
Wisconsin
1
1
1,441,000
0.33%
117
1
4
17
17
6
162
$424,696,000
100.00%
-30-