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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): July 23, 2003 (July 22, 2003)</TD></TR>
<TR VALIGN="TOP"><TD></TD>
<TD></TD>
<TD></TD></TR>
<TR VALIGN="TOP"><TD COLSPAN="3">
<P ALIGN="CENTER"><STRONG><FONT SIZE="+1"><U>                    National Health Investors, Inc.                    </U></STRONG></FONT><STRONG></STRONG></TD></TR>
<TR VALIGN="TOP"><TD COLSPAN="3">
<P ALIGN="CENTER">(Exact name of Registrant as specified in its charter)</TD></TR>
<TR VALIGN="TOP"><TD></TD>
<TD></TD>
<TD></TD></TR>
<TR VALIGN="TOP"><TD COLSPAN="3">
<P ALIGN="CENTER"><U>        Maryland      </U></TD></TR>
<TR VALIGN="TOP"><TD COLSPAN="3">
<P ALIGN="CENTER">(State or Other Jurisdiction of Incorporation)</TD></TR>
<TR VALIGN="TOP"><TD COLSPAN="2"></TD>
<TD></TD></TR>
<TR VALIGN="TOP"><TD COLSPAN="2">
<P ALIGN="CENTER"><U>        333-41863        </U></TD>
<TD>
<P ALIGN="CENTER"><U>   62-1470956   </U></TD></TR>
<TR VALIGN="TOP"><TD COLSPAN="2">
<P ALIGN="CENTER">(Commission File No.)</TD>
<TD>
<P ALIGN="CENTER">(IRS Employer</TD></TR>
<TR VALIGN="TOP"><TD></TD>
<TD></TD>
<TD>
<P ALIGN="CENTER">Identification Number)</TD></TR>
<TR VALIGN="TOP"><TD></TD>
<TD></TD>
<TD></TD></TR>
<TR VALIGN="TOP"><TD COLSPAN="3">
<P ALIGN="CENTER">100 Vine Street, Suite 1202</TD></TR>
<TR VALIGN="TOP"><TD COLSPAN="3">
<P ALIGN="CENTER"><U>Murfreesboro, TN 37130</U></TD></TR>
<TR VALIGN="TOP"><TD COLSPAN="3">
<P ALIGN="CENTER">(Address of principal executive offices, including zip code)</TD></TR>
<TR VALIGN="TOP"><TD></TD>
<TD></TD>
<TD></TD></TR>
<TR VALIGN="TOP"><TD COLSPAN="3">
<P ALIGN="CENTER"><U>        (615) 890-9100        </U></TD></TR>
<TR VALIGN="TOP"><TD COLSPAN="3">
<P ALIGN="CENTER">(Registrant's telephone number, including area code)</TD></TR>
<TR VALIGN="TOP"><TD COLSPAN="3"></TD></TR>
<TR VALIGN="TOP"><TD COLSPAN="3">
<P ALIGN="CENTER"><U>          Not Applicable          </U></TD></TR>
<TR VALIGN="TOP"><TD COLSPAN="3">
<P ALIGN="CENTER">(Former name or former address, if changed since last report)</TD></TR></TABLE>
</P>
<BR WP="BR1"><BR WP="BR2">
<BR WP="BR1"><BR WP="BR2">
<P><STRONG>Item 12.  Results of Operations and Financial Condition</STRONG> </P>

<BR WP="BR1"><BR WP="BR2">
<P>	On July 22, 2003, National Health Investors, Inc. made its second quarter earnings
announcement.  A copy of the press release is furnished as an exhibit to this Form 8-K and is
incorporated herein by reference.</P>

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

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

<BR WP="BR1"><BR WP="BR2">
<TABLE WIDTH="100%">
<TR VALIGN="TOP"><TD></TD>
<TD>National Health Investors, Inc.</TD></TR>
<TR VALIGN="TOP"><TD></TD>
<TD></TD></TR>
<TR VALIGN="TOP"><TD></TD>
<TD></TD></TR>
<TR VALIGN="TOP"><TD></TD>
<TD>By: <U>/s/ W. Andrew Adams               </U></TD></TR>
<TR VALIGN="TOP"><TD></TD>
<TD>Name: W. Andrew Adams</TD></TR>
<TR VALIGN="TOP"><TD></TD>
<TD>Title: Chief Executive Officer</TD></TR>
<TR VALIGN="TOP"><TD></TD>
<TD></TD></TR>
<TR VALIGN="TOP"><TD></TD>
<TD></TD></TR>
<TR VALIGN="TOP"><TD></TD>
<TD></TD></TR>
<TR VALIGN="TOP"><TD></TD>
<TD>By:<U>/s/ Donald K. Daniel                   </U></TD></TR>
<TR VALIGN="TOP"><TD></TD>
<TD>Name:  Donald K. Daniel</TD></TR>
<TR VALIGN="TOP"><TD></TD>
<TD>Title: Principal Accounting Officer</TD></TR>
<TR VALIGN="TOP"><TD>Date: July 23, 2003</TD>
<TD></TD></TR></TABLE>

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

<BR WP="BR1"><BR WP="BR2">
<TABLE WIDTH="100%">
<TR VALIGN="TOP"><TD><STRONG>Number</STRONG></TD>
<TD><STRONG>Exhibit</STRONG></TD></TR>
<TR VALIGN="TOP"><TD>99</TD>
<TD>Press release, dated July 22, 2003.</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="Times New Roman"></FONT><FONT FACE="Arial" SIZE="-1"><STRONG></STRONG></FONT><FONT FACE="Times New Roman" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"><STRONG></STRONG></FONT><FONT SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-2"></FONT>For Release: July 22, 2003 </FONT></P>

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

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

<BR WP="BR1"><BR WP="BR2">
<P><FONT FACE="Arial" SIZE="+2">NHI reports second quarter income</FONT></P>

<P><FONT FACE="Arial" SIZE="-2"></FONT><FONT FACE="Arial">	MURFREESBORO, Tenn. -- National Health Investors, Inc., (NYSE: NHI and NHIPr)
announced funds from operations ("FFO") from continuing operations for the second quarter
ended June 30, of $14,319,000 or 53 cents per diluted share of common stock compared to
$14,221,000 or 53 cents per share in 2002.  </FONT></P>

<P><FONT FACE="Arial">	For the six months ended June 30, FFO from continuing operations was $28,039,000 or $1.04
per diluted share of common stock compared to $25,257,000 or 94 cents per share in 2002.</FONT></P>

<P><FONT FACE="Arial" SIZE="-1">	</FONT><FONT FACE="Arial">Income from continuing operations applicable to common stock for the second quarter ended
June 30 was $10,816,000 or 39 cents per diluted share of common stock compared to
$10,635,000 or 39 cents per diluted share of common stock for the same period in 2002.  </FONT></P>

<P><FONT FACE="Arial">	Income from continuing operations applicable to common stock for the six months ended June
30, was $21,004,000 or 75 cents per diluted share of common stock compared to $17,949,000 or
64 cents per diluted share of common stock for the same period in 2002.  </FONT></P>

<P><FONT FACE="Arial">	Net income for the three months and six months ended June 30, were $10,816,000 and
$22,936,000, respectively, versus $14,772,000 and $22,409,000, respectively, for 2002. </FONT></P>

<P><FONT FACE="Arial">	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 and preferred stocks of the company trade on the New York
Stock Exchange with the symbols NHI and NHIPr, respectively. Additional information including
NHI's most recent press releases may be obtained on NHI's web site at www.nhinvestors.com.</FONT><FONT FACE="Times New Roman"></FONT><FONT FACE="Times New Roman" COLOR="#0000ff"><U></U></FONT><FONT FACE="Times New Roman"></FONT><FONT FACE="Times New Roman">		</FONT><FONT FACE="Arial" SIZE="-1"><EM>Statements in this press release that are not historical facts are forward-looking statements. NHI cautions
investors that any forward-looking statements made involve risks and uncertainties and are not guarantees of future
performance. All forward-looking statements represent NHI's judgment as of the date of this release. </EM></FONT></P>

<P ALIGN="CENTER"><FONT FACE="Times New Roman">-more-</FONT></P>

<BR WP="BR1"><BR WP="BR2">
<P><FONT FACE="Arial">Page 2 NHI's Second Quarter Results</FONT><FONT FACE="Times New Roman" SIZE="-1"></FONT></P>

<TABLE WIDTH="100%">
<TR VALIGN="TOP"><TD><FONT FACE="Times New Roman" SIZE="-1"></FONT><FONT FACE="Arial"><STRONG>Condensed Statements of</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD></TR></TABLE>

<TABLE WIDTH="100%">
<TR VALIGN="TOP"><TD></FONT><FONT FACE="Arial" SIZE="-1"><STRONG><U></U></STRONG></FONT><FONT FACE="Arial" SIZE="-1"><STRONG><U></U></STRONG></FONT><FONT FACE="Arial" SIZE="-1"><U></U></FONT><FONT FACE="Arial" SIZE="-1"><U></U></FONT><FONT FACE="Arial" SIZE="-1"><U></U>(in thousands, except share and per share</EM></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="CENTER"></FONT><FONT FACE="Arial" SIZE="-1">Three Months Ended</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="CENTER"><U></U></FONT><FONT FACE="Arial" SIZE="-1"><U></U></FONT><FONT FACE="Arial" SIZE="-1">Six Months Ended June 30</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD></TR></TABLE>

<CENTER>
<TABLE ALIGN="CENTER" WIDTH="100%">
<TR VALIGN="TOP"><TD></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"><STRONG></STRONG></FONT><FONT FACE="Arial" SIZE="-1"><STRONG>2003</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">2002</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"><U></U></FONT><FONT FACE="Arial" SIZE="-1"><U></U><STRONG></STRONG></FONT><FONT FACE="Arial" SIZE="-1"><STRONG>2003</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">2002</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD></TR>
<TR VALIGN="TOP"><TD></FONT><FONT FACE="Arial" SIZE="-1"><STRONG>Revenues:</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD></TR>
<TR VALIGN="TOP"><TD><STRONG></STRONG></FONT><FONT FACE="Arial" SIZE="-1"><STRONG></STRONG></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"><STRONG></STRONG></FONT><FONT FACE="Arial" SIZE="-1">	Mortgage interest income<STRONG></STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"><STRONG>$</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"><STRONG>4,705</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">$</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">8,109</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1"><STRONG>$</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"><STRONG>10,248</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">$</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">13,888</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD></TR>
<TR VALIGN="TOP"><TD></FONT><FONT FACE="Arial" SIZE="-1">	Rental income<STRONG></STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"><STRONG></TD>
<TD ALIGN="RIGHT"></STRONG></FONT><FONT FACE="Arial" SIZE="-1"><STRONG>13,080</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">11,869</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1"><STRONG></STRONG></FONT><FONT FACE="Arial" SIZE="-1"><STRONG>26,437</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">23,859</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD></TR>
<TR VALIGN="TOP"><TD></FONT><FONT FACE="Arial" SIZE="-1">	Investment income</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"><STRONG></STRONG></FONT><FONT FACE="Arial" SIZE="-1"><STRONG>1,157</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">1,469</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1"><STRONG></STRONG></FONT><FONT FACE="Arial" SIZE="-1"><STRONG>2,801</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">2,708</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD></TR>
<TR VALIGN="TOP"><TD></FONT><FONT FACE="Arial" SIZE="-1">	Facility operating revenues</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"><STRONG></STRONG></FONT><FONT FACE="Arial" SIZE="-1"><STRONG>23,313</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">22,552</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1"><STRONG></STRONG></FONT><FONT FACE="Arial" SIZE="-1"><STRONG>45,932</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">43,474</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD></TR>
<TR VALIGN="TOP"><TD></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"><STRONG></STRONG></FONT><FONT FACE="Arial" SIZE="-1"><STRONG><U>42,255</U></STRONG></FONT><FONT FACE="Arial" SIZE="-1"><U></U></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1"><U>43,999</U></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1"><STRONG></STRONG></FONT><FONT FACE="Arial" SIZE="-1"><STRONG><U>85,418</U></STRONG></FONT><FONT FACE="Arial" SIZE="-1"><U></U></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1"><U>83,929</U></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD></TR>
<TR VALIGN="TOP"><TD></FONT><FONT FACE="Arial" SIZE="-1"><STRONG>Expenses:</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD></TR>
<TR VALIGN="TOP"><TD><STRONG></STRONG></FONT><FONT FACE="Arial" SIZE="-1"><STRONG></STRONG></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"><STRONG></STRONG></FONT><FONT FACE="Arial" SIZE="-1">	Interest</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"><STRONG></STRONG></FONT><FONT FACE="Arial" SIZE="-1"><STRONG>3,176</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">4,215</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1"><STRONG></STRONG></FONT><FONT FACE="Arial" SIZE="-1"><STRONG>7,164</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">8,828</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD></TR>
<TR VALIGN="TOP"><TD></FONT><FONT FACE="Arial" SIZE="-1">	Depreciation of real estate</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"><STRONG></STRONG></FONT><FONT FACE="Arial" SIZE="-1"><STRONG>3,863</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">3,912</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1"><STRONG></STRONG></FONT><FONT FACE="Arial" SIZE="-1"><STRONG>7,751</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">7,899</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD></TR>
<TR VALIGN="TOP"><TD></FONT><FONT FACE="Arial" SIZE="-1">	Amortization of loan cost</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"><STRONG></STRONG></FONT><FONT FACE="Arial" SIZE="-1"><STRONG>40</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">472</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1"><STRONG></STRONG></FONT><FONT FACE="Arial" SIZE="-1"><STRONG>223</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">566</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD></TR>
<TR VALIGN="TOP"><TD></FONT><FONT FACE="Arial" SIZE="-1">        Legal expense</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"><STRONG></STRONG></FONT><FONT FACE="Arial" SIZE="-1"><STRONG>265</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">166</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1"><STRONG></STRONG></FONT><FONT FACE="Arial" SIZE="-1"><STRONG>184</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">302</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD></TR>
<TR VALIGN="TOP"><TD></FONT><FONT FACE="Arial" SIZE="-1">	Franchise and excise tax</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"><STRONG></STRONG></FONT><FONT FACE="Arial" SIZE="-1"><STRONG>67</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">171</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1"><STRONG></STRONG></FONT><FONT FACE="Arial" SIZE="-1"><STRONG>463</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">235</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD></TR>
<TR VALIGN="TOP"><TD></FONT><FONT FACE="Arial" SIZE="-1">	General and administrative</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"><STRONG></STRONG></FONT><FONT FACE="Arial" SIZE="-1"><STRONG>721</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">651</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1"><STRONG></STRONG></FONT><FONT FACE="Arial" SIZE="-1"><STRONG>1,434</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">791</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD></TR>
<TR VALIGN="TOP"><TD></FONT><FONT FACE="Arial" SIZE="-1">	Loan losses</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"><STRONG></STRONG></FONT><FONT FACE="Arial" SIZE="-1"><STRONG>---</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">2,000</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1"><STRONG></STRONG></FONT><FONT FACE="Arial" SIZE="-1"><STRONG>1,500</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">4,500</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD></TR>
<TR VALIGN="TOP"><TD></FONT><FONT FACE="Arial" SIZE="-1">	Facility operating expenses </FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"><STRONG></STRONG></FONT><FONT FACE="Arial" SIZE="-1"><STRONG>23,307</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">21,777</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1"><STRONG></STRONG></FONT><FONT FACE="Arial" SIZE="-1"><STRONG>45,695</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">42,859</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD></TR>
<TR VALIGN="TOP"><TD></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"><STRONG></STRONG></FONT><FONT FACE="Arial" SIZE="-1"><STRONG>31,439</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">33,364</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1"><STRONG></STRONG></FONT><FONT FACE="Arial" SIZE="-1"><STRONG>64,414</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">65,980</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD></TR>
<TR VALIGN="TOP"><TD></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD></TR>
<TR VALIGN="TOP"><TD></FONT><FONT FACE="Arial" SIZE="-1"><STRONG></STRONG></FONT><FONT FACE="Arial" SIZE="-1"><STRONG></STRONG></FONT><FONT FACE="Arial" SIZE="-1"><STRONG></STRONG></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">Income from continuing operations</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"><STRONG></TD>
<TD ALIGN="RIGHT"></STRONG></FONT><FONT FACE="Arial" SIZE="-1"><STRONG>10,816</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">10,635</FONT></TD>
<TD><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1"><STRONG></STRONG></FONT><FONT FACE="Arial" SIZE="-1"><STRONG>21,004</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">17,949</FONT></TD>
<TD><FONT FACE="Arial" SIZE="-1"></TD></TR>
<TR VALIGN="TOP"><TD></FONT><FONT FACE="Arial" SIZE="-1">Discontinued operations</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD></TD></TR>
<TR VALIGN="TOP"><TD><STRONG></STRONG></FONT><FONT FACE="Arial" SIZE="-1"><STRONG></STRONG></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"><STRONG></STRONG></FONT><FONT FACE="Arial" SIZE="-1">	</STRONG>Operating income - discontinued</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"><STRONG></STRONG></FONT><FONT FACE="Arial" SIZE="-1"><STRONG>---</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">350</FONT></TD>
<TD><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1"><STRONG></STRONG></FONT><FONT FACE="Arial" SIZE="-1"><STRONG>---</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">673</FONT></TD>
<TD><FONT FACE="Arial" SIZE="-1"></TD></TR>
<TR VALIGN="TOP"><TD></FONT><FONT FACE="Arial" SIZE="-1"><STRONG>	</STRONG>Gain on sale of real estate</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"><STRONG></STRONG></FONT><FONT FACE="Arial" SIZE="-1"><STRONG>---</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">3,787</FONT></TD>
<TD><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1"><STRONG></STRONG></FONT><FONT FACE="Arial" SIZE="-1"><STRONG>1,932</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">3,787</FONT></TD>
<TD><FONT FACE="Arial" SIZE="-1"></TD></TR>
<TR VALIGN="TOP"><TD></FONT><FONT FACE="Arial" SIZE="-1"><STRONG>	</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"><STRONG></TD>
<TD ALIGN="RIGHT"></STRONG></FONT><FONT FACE="Arial" SIZE="-1"><STRONG>---</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">4,137</FONT></TD>
<TD><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1"><STRONG></STRONG></FONT><FONT FACE="Arial" SIZE="-1"><STRONG>1,932</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">4,460</FONT></TD>
<TD><FONT FACE="Arial" SIZE="-1"></TD></TR>
<TR VALIGN="TOP"><TD></FONT><FONT FACE="Arial" SIZE="-1"><STRONG>Net Income</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"><STRONG></STRONG></FONT><FONT FACE="Arial" SIZE="-1"><STRONG>10,816</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">14,772</FONT></TD>
<TD><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1"><STRONG></STRONG></FONT><FONT FACE="Arial" SIZE="-1"><STRONG>22,936</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">22,409</FONT></TD>
<TD><FONT FACE="Arial" SIZE="-1"></TD></TR>
<TR VALIGN="TOP"><TD></FONT><FONT FACE="Arial" SIZE="-1">Dividends to preferred stockholders</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"><STRONG></STRONG></FONT><FONT FACE="Arial" SIZE="-1"><STRONG><U>398</U></STRONG></FONT><FONT FACE="Arial" SIZE="-1"><U></U></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1"><U>398</U></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1"><STRONG></STRONG></FONT><FONT FACE="Arial" SIZE="-1"><STRONG><U>795</U></STRONG></FONT><FONT FACE="Arial" SIZE="-1"><U></U></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1"><U>795</U></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD></TR>
<TR VALIGN="TOP"><TD></FONT><FONT FACE="Arial" SIZE="-1">Net income applicable to common</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"><STRONG>$</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"><STRONG><U>10,418</U></STRONG></FONT><FONT FACE="Arial" SIZE="-1"><U></U></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">$</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"><U>14,374</U></FONT></TD>
<TD><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1"><STRONG>$</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"><STRONG><U>22,141</U></STRONG></FONT><FONT FACE="Arial" SIZE="-1"><U></U></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">$</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"><U>21,614</U></FONT></TD>
<TD><FONT FACE="Arial" SIZE="-1"></TD></TR>
<TR VALIGN="TOP"><TD></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD></TR></TABLE>
</CENTER>

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

<CENTER>
<TABLE ALIGN="CENTER" WIDTH="100%">
<TR VALIGN="TOP"><TD></FONT><FONT FACE="Arial" SIZE="-1">     Basic</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"><STRONG>$</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"><STRONG>.39</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">$</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">.39</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1"><STRONG>$</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"><STRONG>.76</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">$</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">.65</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD></TR>
<TR VALIGN="TOP"><TD></FONT><FONT FACE="Arial" SIZE="-1">     Diluted</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"><STRONG>$</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"><STRONG>.39</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">$</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">.39</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1"><STRONG>$</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"><STRONG>.75</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">$</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">.64</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD></TR>
<TR VALIGN="TOP"><TD></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD></TR>
<TR VALIGN="TOP"><TD></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"><STRONG></STRONG></FONT><FONT FACE="Arial" SIZE="-1"><STRONG></STRONG></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">Discontinued operations per common</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD></TR>
<TR VALIGN="TOP"><TD><STRONG></STRONG></FONT><FONT FACE="Arial" SIZE="-1"><STRONG></STRONG></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"><STRONG></STRONG></FONT><FONT FACE="Arial" SIZE="-1">     Basic</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"><STRONG>$</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"><STRONG>---</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">$</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">.15</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1"><STRONG>$</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"><STRONG>.07</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">$</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">.17</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">  </FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT FACE="Arial" SIZE="-1">     Diluted</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"><STRONG>$</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"><STRONG>---</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">$</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">.15</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1"><STRONG>$</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"><STRONG>.07</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">$</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">.17</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD></TR>
<TR VALIGN="TOP"><TD></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD></TR>
<TR VALIGN="TOP"><TD></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"><STRONG></STRONG></FONT><FONT FACE="Arial" SIZE="-1"><STRONG></STRONG></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">Net income per common share:</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD></TR>
<TR VALIGN="TOP"><TD><STRONG></STRONG></FONT><FONT FACE="Arial" SIZE="-1"><STRONG></STRONG></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"><STRONG></STRONG></FONT><FONT FACE="Arial" SIZE="-1">	Basic</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"><STRONG>$</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"><STRONG>.39</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">$</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">.54</FONT></TD>
<TD><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1"><STRONG>$</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"><STRONG>.83</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">$</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">.82</FONT></TD>
<TD><FONT FACE="Arial" SIZE="-1"></TD></TR>
<TR VALIGN="TOP"><TD></FONT><FONT FACE="Arial" SIZE="-1">	Diluted</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"><STRONG>$</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"><STRONG>.39</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">$</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">.54</FONT></TD>
<TD><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1"><STRONG>$</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"><STRONG>.82</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">$</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">.81</FONT></TD>
<TD><FONT FACE="Arial" SIZE="-1"></TD></TR>
<TR VALIGN="TOP"><TD></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD></TR>
<TR VALIGN="TOP"><TD></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"><STRONG></STRONG></FONT><FONT FACE="Arial" SIZE="-1"><STRONG></STRONG></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">Funds from operations</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD></TR>
<TR VALIGN="TOP"><TD><STRONG></STRONG></FONT><FONT FACE="Arial" SIZE="-1"><STRONG></STRONG></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"><STRONG></STRONG></FONT><FONT FACE="Arial" SIZE="-1">	Basic</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"><STRONG>$</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"><STRONG>14,281</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">$</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">14,149</FONT></TD>
<TD><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1"><STRONG>$</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"><STRONG>27,960</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">$</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">25,053</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD></TR>
<TR VALIGN="TOP"><TD></FONT><FONT FACE="Arial" SIZE="-1">	Diluted</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"><STRONG>$</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"><STRONG>14,319</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">$</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">14,221</FONT></TD>
<TD><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1"><STRONG>$</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"><STRONG>28,039</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">$</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">25,257</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD></TR>
<TR VALIGN="TOP"><TD></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD></TR>
<TR VALIGN="TOP"><TD></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"><STRONG></STRONG></FONT><FONT FACE="Arial" SIZE="-1"><STRONG></STRONG></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">Funds from operations per common</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD></TR>
<TR VALIGN="TOP"><TD><STRONG></STRONG></FONT><FONT FACE="Arial" SIZE="-1"><STRONG></STRONG></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"><STRONG></STRONG></FONT><FONT FACE="Arial" SIZE="-1">	Basic</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"><STRONG>$</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"><STRONG>.53</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">$</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">.53</FONT></TD>
<TD><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1"><STRONG>$</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"><STRONG>1.05</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">$</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">.95</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD></TR>
<TR VALIGN="TOP"><TD></FONT><FONT FACE="Arial" SIZE="-1">	Diluted</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"><STRONG>$</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"><STRONG>.53</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">$</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">.53</FONT></TD>
<TD><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1"><STRONG>$</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"><STRONG>1.04</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">$</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">.94</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD></TR>
<TR VALIGN="TOP"><TD></FONT><FONT FACE="Arial" SIZE="-1">Weighted average common shares</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD></TR></TABLE>
</CENTER>

<CENTER>
<TABLE ALIGN="CENTER" WIDTH="100%">
<TR VALIGN="TOP"><TD><STRONG></STRONG></FONT><FONT FACE="Arial" SIZE="-1"><STRONG></STRONG></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"><STRONG></STRONG></FONT><FONT FACE="Arial" SIZE="-1">	Basic</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"><STRONG>26,720,197</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">26,473,742</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"><STRONG>26,704,59</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">26,274,332</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD></TR></TABLE>
</CENTER>

<CENTER>
<TABLE ALIGN="CENTER" WIDTH="100%">
<TR VALIGN="TOP"><TD></FONT><FONT FACE="Arial" SIZE="-1">	Diluted shares for net income</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"><STRONG>26,976,360</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">26,930,077</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1"><STRONG></STRONG></FONT><FONT FACE="Arial" SIZE="-1"><STRONG>26,960,44</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">26,917,314</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD></TR>
<TR VALIGN="TOP"><TD></FONT><FONT FACE="Arial" SIZE="-1">	Diluted shares for FFO purposes</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"><STRONG>26,976,360</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">26,930,077</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1"><STRONG></STRONG></FONT><FONT FACE="Arial" SIZE="-1"><STRONG>26,960,44</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">26,917,314</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD></TR></TABLE>
</CENTER>

<CENTER>
<TABLE ALIGN="CENTER" WIDTH="100%">
<TR VALIGN="TOP"><TD></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD></TR>
<TR VALIGN="TOP"><TD></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"><STRONG></STRONG></FONT><FONT FACE="Arial" SIZE="-1"><STRONG></STRONG></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">Dividends per common share</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"><STRONG>$</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"><STRONG>.40</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">$</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">.35</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1"><STRONG>$</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"><STRONG>.80</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">$</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">.70</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD></TR></TABLE>
</CENTER>

<CENTER>
<TABLE ALIGN="CENTER" 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>
</CENTER>

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

<TABLE WIDTH="100%">
<TR VALIGN="TOP"><TD><STRONG></STRONG></FONT><FONT FACE="Arial" SIZE="-1"><STRONG></STRONG></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"><STRONG></STRONG></FONT><FONT FACE="Arial" SIZE="-1">(in thousands)</EM></FONT><FONT FACE="Times New Roman" SIZE="-1"><STRONG><U></U></STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE="-1"><STRONG><U></U>June 30</STRONG></FONT><FONT FACE="Times New Roman" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">December</FONT></TD></TR></TABLE>

<TABLE WIDTH="100%">
<TR VALIGN="TOP"><TD></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"><STRONG></STRONG></FONT><FONT FACE="Arial" SIZE="-1"><STRONG>2003</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">2002</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD></TR>
<TR VALIGN="TOP"><TD></FONT><FONT FACE="Arial" SIZE="-1">Real estate properties, net</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"><STRONG>$</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"><STRONG>308,207</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">$</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">304,394</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD></TR>
<TR VALIGN="TOP"><TD></FONT><FONT FACE="Arial" SIZE="-1">Mortgages receivable, net</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"><STRONG></STRONG></FONT><FONT FACE="Arial" SIZE="-1"><STRONG>173,674</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">201,236</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD></TR>
<TR VALIGN="TOP"><TD></FONT><FONT FACE="Arial" SIZE="-1">Preferred stock investments</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"><STRONG></STRONG></FONT><FONT FACE="Arial" SIZE="-1"><STRONG>38,132</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">38,132</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD></TR>
<TR VALIGN="TOP"><TD></FONT><FONT FACE="Arial" SIZE="-1">REMIC investments</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"><STRONG></STRONG></FONT><FONT FACE="Arial" SIZE="-1"><STRONG>36,366</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">36,366</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD></TR>
<TR VALIGN="TOP"><TD></FONT><FONT FACE="Arial" SIZE="-1">Cash and marketable securities</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"><STRONG></STRONG></FONT><FONT FACE="Arial" SIZE="-1"><STRONG>50,546</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">58,825</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD></TR>
<TR VALIGN="TOP"><TD></FONT><FONT FACE="Arial" SIZE="-1">Debt</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"><STRONG></STRONG></FONT><FONT FACE="Arial" SIZE="-1"><STRONG>165,964</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">161,763</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD></TR>
<TR VALIGN="TOP"><TD></FONT><FONT FACE="Arial" SIZE="-1">Convertible debt</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"><STRONG></STRONG></FONT><FONT FACE="Arial" SIZE="-1"><STRONG>1,500</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">41,633</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD></TR>
<TR VALIGN="TOP"><TD></FONT><FONT FACE="Arial" SIZE="-1">Stockholders' equity</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"><STRONG></STRONG></FONT><FONT FACE="Arial" SIZE="-1"><STRONG>405,790</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">400,429</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD></TR></TABLE>

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

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

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

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

<P><FONT FACE="Arial" 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="Arial" SIZE="-1"><EM></EM></FONT><FONT FACE="Arial"></FONT><FONT FACE="Arial"></FONT><FONT FACE="Arial" SIZE="-1"><STRONG><U></U></STRONG></FONT><FONT FACE="Arial" SIZE="-1"><STRONG><U></U></STRONG></FONT><FONT FACE="Arial" SIZE="-1">Three Months Ended</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="CENTER"><U></U></FONT><FONT FACE="Arial" SIZE="-1"><U></U></FONT><FONT FACE="Arial" SIZE="-1">Six Months Ended June</FONT></TD></TR></TABLE>

<TABLE WIDTH="100%">
<TR VALIGN="TOP"><TD></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"><STRONG></STRONG></FONT><FONT FACE="Arial" SIZE="-1"><STRONG>2003</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">2002</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"><U></U></FONT><FONT FACE="Arial" SIZE="-1"><U></U><STRONG></STRONG></FONT><FONT FACE="Arial" SIZE="-1"><STRONG>2003</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">2002</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD></TR>
<TR VALIGN="TOP"><TD></FONT><FONT FACE="Arial" SIZE="-1"><STRONG></STRONG></FONT><FONT FACE="Arial" SIZE="-1"><STRONG></STRONG></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">Net income applicable to common stockholders</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"><STRONG>$</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"><STRONG>10,418</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">$</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">14,374</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1"><STRONG>$</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"><STRONG>22,141</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">$</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">21,614</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT FACE="Arial" SIZE="-1">Adjustments:<STRONG></STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"><STRONG></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></STRONG></FONT><FONT FACE="Arial" SIZE="-1"><STRONG></STRONG></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"><STRONG></STRONG></FONT><FONT FACE="Arial" SIZE="-1">	Real estate depreciation</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"><STRONG></STRONG></FONT><FONT FACE="Arial" SIZE="-1"><STRONG>3,863</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">3,912</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1"><STRONG></STRONG></FONT><FONT FACE="Arial" SIZE="-1"><STRONG>7,751</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">7,899</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT FACE="Arial" SIZE="-1">Other Items:</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD></TR>
<TR VALIGN="TOP"><TD><STRONG></STRONG></FONT><FONT FACE="Arial" SIZE="-1"><STRONG></STRONG></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"><STRONG></STRONG></FONT><FONT FACE="Arial" SIZE="-1">	Discontinued operations:</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD></TR>
<TR VALIGN="TOP"><TD><STRONG></STRONG></FONT><FONT FACE="Arial" SIZE="-1"><STRONG></STRONG></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"><STRONG></STRONG></FONT><FONT FACE="Arial" SIZE="-1">      		Operating Income - discontinued</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"><STRONG></STRONG></FONT><FONT FACE="Arial" SIZE="-1"><STRONG>---</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">(350)</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1"><STRONG></STRONG></FONT><FONT FACE="Arial" SIZE="-1"><STRONG>---</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">(673)</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT FACE="Arial" SIZE="-1">       		Gain on sale of real estate</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"><STRONG></STRONG></FONT><FONT FACE="Arial" SIZE="-1"><STRONG>---</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">(3,787)</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1"><STRONG></STRONG></FONT><FONT FACE="Arial" SIZE="-1"><STRONG>(1,932)</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1"> (3,787)</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT FACE="Arial" SIZE="-1">Basic funds from operations applicable to</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD></TR>
<TR VALIGN="TOP"><TD><STRONG></STRONG></FONT><FONT FACE="Arial" SIZE="-1"><STRONG></STRONG></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"><STRONG></STRONG></FONT><FONT FACE="Arial" SIZE="-1">	common stockholders</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"><STRONG></STRONG></FONT><FONT FACE="Arial" SIZE="-1"><STRONG>14,281</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">14,149</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1"><STRONG></STRONG></FONT><FONT FACE="Arial" SIZE="-1"><STRONG>27,960</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">25,053</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD></TR>
<TR VALIGN="TOP"><TD></FONT><FONT FACE="Arial" SIZE="-1"><STRONG></STRONG></FONT><FONT FACE="Arial" SIZE="-1"><STRONG></STRONG></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">Interest on convertible subordinated debentures</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"><STRONG></STRONG></FONT><FONT FACE="Arial" SIZE="-1"><STRONG>38</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">72</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1"><STRONG></STRONG></FONT><FONT FACE="Arial" SIZE="-1"><STRONG>79</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">204</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD></TR>
<TR VALIGN="TOP"><TD></FONT><FONT FACE="Arial" SIZE="-1"><STRONG></STRONG></FONT><FONT FACE="Arial" SIZE="-1"><STRONG></STRONG></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">Diluted funds from operations applicable to</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD></TR>
<TR VALIGN="TOP"><TD><STRONG></STRONG></FONT><FONT FACE="Arial" SIZE="-1"><STRONG></STRONG></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"><STRONG></STRONG></FONT><FONT FACE="Arial" SIZE="-1">	common stockholders</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"><STRONG>$</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"><STRONG>14,319</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">$</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">14,221</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1"><STRONG>$</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"><STRONG>28,039</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">$</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">25,257</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD></TR>
<TR VALIGN="TOP"><TD></FONT><FONT FACE="Arial" SIZE="-1"><STRONG></STRONG></FONT><FONT FACE="Arial" SIZE="-1"><STRONG></STRONG></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">Basic funds from operations per share</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"><STRONG>$</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"><STRONG>.53</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">$</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">.53</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1"><STRONG>$</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"><STRONG>1.05</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">$</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">.95</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT FACE="Arial" SIZE="-1">Diluted funds from operations per share</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"><STRONG>$</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"><STRONG>.53</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">$</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">.53</FONT></TD>
<TD><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1"><STRONG>$</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"><STRONG>1.04</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">$</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">.94</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD></TR>
<TR VALIGN="TOP"><TD COLSPAN="2"></FONT><FONT FACE="Arial" SIZE="-1"><STRONG></STRONG></FONT><FONT FACE="Arial" SIZE="-1"><STRONG></STRONG></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">Shares for basic funds from operations per share<STRONG></STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"><STRONG>26,720,197</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">26,473,742</FONT></TD>
<TD><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1"><STRONG></STRONG></FONT><FONT FACE="Arial" SIZE="-1"><STRONG>26,704,594</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">26,274,332</FONT></TD></TR></TABLE>

<TABLE WIDTH="100%">
<TR VALIGN="TOP"><TD><FONT FACE="Arial" SIZE="-1">Shares for diluted funds from operations per share<STRONG></STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"><STRONG>26,976,360</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">26,930,077</FONT></TD>
<TD><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1"><STRONG></STRONG></FONT><FONT FACE="Arial" SIZE="-1"><STRONG>26,960,445</STRONG></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">26,917,314</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>

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

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

<P><FONT FACE="Arial" SIZE="-1">Page 4 NHI's second quarter results</FONT></P>

<BR WP="BR1"><BR WP="BR2">
<TABLE WIDTH="100%">
<TR VALIGN="TOP"><TD ALIGN="CENTER">
<BR WP="BR1"><BR WP="BR2">
<P ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">National Health Investors, Inc. Portfolio Summary June 30, 2003</FONT></TD></TR></TABLE>

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

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

<TABLE WIDTH="100%">
<TR VALIGN="TOP"><TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="CENTER"></TD>
<TD ALIGN="CENTER"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD></TR>
<TR VALIGN="TOP"><TD ALIGN="RIGHT"></TD>
<TD><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT>Equity Ownership</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">96</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">$</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">308,207,000 </FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">60%</FONT></TD></TR>
<TR VALIGN="TOP"><TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD></FONT><FONT FACE="Arial" SIZE="-1">Mortgage Loan Receivables</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">87</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">204,728,000 </FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">40%</FONT></TD></TR>
<TR VALIGN="TOP"><TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD></FONT><FONT FACE="Arial" SIZE="-1">Total Real Estate Portfolio</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">183</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">$</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">   512,935,000 </FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">100%</FONT></TD></TR>
<TR VALIGN="TOP"><TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="CENTER"></TD>
<TD ALIGN="CENTER"></TD>
<TD ALIGN="CENTER"></TD>
<TD ALIGN="CENTER"></TD></TR>
<TR VALIGN="TOP"><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 ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD></TR></TABLE>

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

<TABLE WIDTH="100%">
<TR VALIGN="TOP"><TD></TD>
<TD><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">Nursing Homes</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">70</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">9,396</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">$</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">197,557,000</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT FACE="Arial" SIZE="-1"></TD>
<TD></FONT><FONT FACE="Arial" SIZE="-1">Assisted Living</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">16</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">1,305</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">       79,217,000 </FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT FACE="Arial" SIZE="-1"></TD>
<TD></FONT><FONT FACE="Arial" SIZE="-1">Medical Office Buildings</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">4</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">124,427 sq.ft</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">11,590,000</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT FACE="Arial" SIZE="-1"></TD>
<TD></FONT><FONT FACE="Arial" SIZE="-1">Retirement Homes</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">5</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">471</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">11,674,000</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT FACE="Arial" SIZE="-1"></TD>
<TD></FONT><FONT FACE="Arial" SIZE="-1">Hospitals</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">1</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">55</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">          8,169,000 </FONT></TD></TR>
<TR VALIGN="TOP"><TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">96</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">$</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"> 308,207,000 </FONT></TD></TR>
<TR VALIGN="TOP"><TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD></TR>
<TR VALIGN="TOP"><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 ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD></TR></TABLE>

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

<TABLE WIDTH="100%">
<TR VALIGN="TOP"><TD ALIGN="RIGHT"></TD>
<TD><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">Nursing Homes</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">53</FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">5,872</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">$</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">155,229,000 </FONT></TD></TR>
<TR VALIGN="TOP"><TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD></FONT><FONT FACE="Arial" SIZE="-1">Assisted Living</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">2</FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">156</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">          6,219,000 </FONT></TD></TR>
<TR VALIGN="TOP"><TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD></FONT><FONT FACE="Arial" SIZE="-1">Retirement Homes</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">1</FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">60</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">          2,332,000 </FONT></TD></TR>
<TR VALIGN="TOP"><TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD></FONT><FONT FACE="Arial" SIZE="-1">Developmentally Disabled</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">17</FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">108</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">          4,582,000 </FONT></TD></TR>
<TR VALIGN="TOP"><TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">73</FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">$</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">168,362,000 </FONT></TD></TR>
<TR VALIGN="TOP"><TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD></FONT><FONT FACE="Arial" SIZE="-1">Remic </FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">14</FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">1,971</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">       30,020,000 </FONT></TD></TR>
<TR VALIGN="TOP"><TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD></FONT><FONT FACE="Arial" SIZE="-1">Remic II Investment </FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="CENTER"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">2,313</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">          6,346,000 </FONT></TD></TR>
<TR VALIGN="TOP"><TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD></FONT><FONT FACE="Arial" SIZE="-1">Total Mortgage Portfolio</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">87</FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">$</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">     204,728,000 </FONT></TD></TR>
<TR VALIGN="TOP"><TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD></TR>
<TR VALIGN="TOP"><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 ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="CENTER"></TD>
<TD ALIGN="CENTER"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD></TR></TABLE>

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

<TABLE WIDTH="100%">
<TR VALIGN="TOP"><TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">Properties</FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="CENTER"></FONT><FONT FACE="Arial" SIZE="-1">Total Dollars</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">Dollars</FONT></TD></TR>
<TR VALIGN="TOP"><TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD></FONT><FONT FACE="Arial" SIZE="-1">Nursing Homes</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">137</FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="CENTER"></FONT><FONT FACE="Arial" SIZE="-1">75.87%</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">$</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">   389,153,000 </FONT></TD></TR>
<TR VALIGN="TOP"><TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD></FONT><FONT FACE="Arial" SIZE="-1">Assisted Living</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">18</FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="CENTER"></FONT><FONT FACE="Arial" SIZE="-1">16.66%</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">       85,435,000 </FONT></TD></TR>
<TR VALIGN="TOP"><TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD></FONT><FONT FACE="Arial" SIZE="-1">Medical Office Buildings</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">4</FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="CENTER"></FONT><FONT FACE="Arial" SIZE="-1">2.26%</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">       11,590,000 </FONT></TD></TR>
<TR VALIGN="TOP"><TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD></FONT><FONT FACE="Arial" SIZE="-1">Retirement Homes</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">6</FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="CENTER"></FONT><FONT FACE="Arial" SIZE="-1">2.73%</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">       14,006,000 </FONT></TD></TR>
<TR VALIGN="TOP"><TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD></FONT><FONT FACE="Arial" SIZE="-1">Hospitals</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">1</FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="CENTER"></FONT><FONT FACE="Arial" SIZE="-1">1.59%</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">          8,169,000 </FONT></TD></TR>
<TR VALIGN="TOP"><TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD></FONT><FONT FACE="Arial" SIZE="-1">Developmentally Disabled</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">17</FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="CENTER"></FONT><FONT FACE="Arial" SIZE="-1">0.89%</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">          4,582,000 </FONT></TD></TR>
<TR VALIGN="TOP"><TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">183</FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="CENTER"></FONT><FONT FACE="Arial" SIZE="-1">100.00%</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">$</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">   512,935,000 </FONT></TD></TR>
<TR VALIGN="TOP"><TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="CENTER"></TD>
<TD ALIGN="CENTER"></TD>
<TD ALIGN="CENTER"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD></TR></TABLE>

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

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<TABLE WIDTH="100%">
<TR VALIGN="TOP"><TD><FONT FACE="Arial" SIZE="-1">Page 5 NHI's second quarter results</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD></TR></TABLE>

<TABLE WIDTH="100%">
<TR VALIGN="TOP"><TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></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="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"># of </FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">Percentage of</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">Total</FONT></TD></TR>
<TR VALIGN="TOP"><TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">Properties</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">Total Dollars</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">Dollars</FONT></TD></TR>
<TR VALIGN="TOP"><TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD></TR>
<TR VALIGN="TOP"><TD ALIGN="RIGHT"></TD>
<TD></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">Public</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">103</FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">51.96%</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">$</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"> 266,531,000 </FONT></TD></TR>
<TR VALIGN="TOP"><TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD></FONT><FONT FACE="Arial" SIZE="-1">Regional</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">66</FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">39.26%</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">     201,388,000 </FONT></TD></TR>
<TR VALIGN="TOP"><TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD></FONT><FONT FACE="Arial" SIZE="-1">Small Operator</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">14</FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">8.78%</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">       45,016,000 </FONT></TD></TR>
<TR VALIGN="TOP"><TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">183</FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">100.00%</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">$</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"> 512,935,000 </FONT></TD></TR>
<TR VALIGN="TOP"><TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="CENTER"></TD>
<TD ALIGN="CENTER"></TD>
<TD ALIGN="CENTER"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD></TR></TABLE>

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<TABLE WIDTH="100%">
<TR VALIGN="TOP"><TD></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Times New Roman" SIZE="-1">Public Operators:</FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD></TR>
<TR VALIGN="TOP"><TD ALIGN="CENTER"></TD>
<TD ALIGN="CENTER"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Times New Roman" SIZE="-1"></FONT><FONT FACE="Times New Roman" SIZE="-1"></FONT><FONT FACE="Times New Roman" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Times New Roman" SIZE="-1">Percentage</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></TD></TR>
<TR VALIGN="TOP"><TD ALIGN="CENTER"></TD>
<TD ALIGN="CENTER"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Times New Roman" SIZE="-1"></FONT><FONT FACE="Times New Roman" SIZE="-1"></FONT><FONT FACE="Times New Roman" SIZE="-1"></FONT><FONT FACE="Times New Roman" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">Of Total </FONT></TD>
<TD><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1">Dollar</FONT><FONT FACE="Times New Roman" SIZE="-1"></FONT></TD></TR>
<TR VALIGN="TOP"><TD ALIGN="CENTER"><FONT FACE="Times New Roman" SIZE="-1"></TD>
<TD ALIGN="CENTER"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Times New Roman" SIZE="-1"></FONT><FONT FACE="Times New Roman" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">Portfolio</FONT><FONT FACE="Times New Roman" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">Amount</FONT><FONT FACE="Times New Roman" SIZE="-1"></FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT FACE="Times New Roman" SIZE="-1"></TD>
<TD></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD></TR>
<TR VALIGN="TOP"><TD></FONT><FONT FACE="Times New Roman" SIZE="-1"></FONT><FONT FACE="Times New Roman" SIZE="-1"></FONT><FONT FACE="Times New Roman" SIZE="-1"></FONT><FONT FACE="Times New Roman" SIZE="-1"></FONT><FONT FACE="Times New Roman" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">National HealthCare Corp.</FONT><FONT FACE="Times New Roman" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Times New Roman" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">12.53%</FONT><FONT FACE="Times New Roman" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">$</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">     64,294,000 </FONT><FONT FACE="Times New Roman" SIZE="-1"></FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT FACE="Times New Roman" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">Marriott Senior Living Services</FONT><FONT FACE="Times New Roman" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Times New Roman" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">8.75%</FONT><FONT FACE="Times New Roman" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">        44,897,000 </FONT><FONT FACE="Times New Roman" SIZE="-1"></FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT FACE="Times New Roman" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">Integrated Health Services</FONT><FONT FACE="Times New Roman" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Times New Roman" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">8.08%</FONT><FONT FACE="Times New Roman" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">        41,464,000 </FONT><FONT FACE="Times New Roman" SIZE="-1"></FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT FACE="Times New Roman" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">ElderTrust of Florida</FONT><FONT FACE="Times New Roman" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Times New Roman" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">5.62%</FONT><FONT FACE="Times New Roman" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">        28,818,000 </FONT><FONT FACE="Times New Roman" SIZE="-1"></FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT FACE="Times New Roman" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">National Health Investors, Inc.</FONT><FONT FACE="Times New Roman" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Times New Roman" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">5.54%</FONT><FONT FACE="Times New Roman" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">        28,430,000 </FONT><FONT FACE="Times New Roman" SIZE="-1"></FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT FACE="Times New Roman" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">Mariner Post Acute Network</FONT><FONT FACE="Times New Roman" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Times New Roman" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">3.29%</FONT><FONT FACE="Times New Roman" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">        16,860,000 </FONT><FONT FACE="Times New Roman" SIZE="-1"></FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT FACE="Times New Roman" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">Community Health Systems, Inc.</FONT><FONT FACE="Times New Roman" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Times New Roman" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">2.92%</FONT><FONT FACE="Times New Roman" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">          14,989,000 </FONT><FONT FACE="Times New Roman" SIZE="-1"></FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT FACE="Times New Roman" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">Sun Healthcare</FONT><FONT FACE="Times New Roman" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Times New Roman" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">1.87%</FONT><FONT FACE="Times New Roman" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">          9,607,000 </FONT><FONT FACE="Times New Roman" SIZE="-1"></FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT FACE="Times New Roman" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">Midwest Nursing Home Investors, L.L.C.</FONT><FONT FACE="Times New Roman" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Times New Roman" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">1.23%</FONT><FONT FACE="Times New Roman" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">          6,324,000 </FONT><FONT FACE="Times New Roman" SIZE="-1"></FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT FACE="Times New Roman" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">HCA - The Healthcare Company</FONT><FONT FACE="Times New Roman" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Times New Roman" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">0.93%</FONT><FONT FACE="Times New Roman" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">          4,770,000 </FONT><FONT FACE="Times New Roman" SIZE="-1"></FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT FACE="Times New Roman" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">Res-Care, Inc.</FONT><FONT FACE="Times New Roman" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Times New Roman" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">0.89%</FONT><FONT FACE="Times New Roman" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">          4,582,000 </FONT><FONT FACE="Times New Roman" SIZE="-1"></FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT FACE="Times New Roman" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">Centennial HealthCare Corp.</FONT><FONT FACE="Times New Roman" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Times New Roman" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">0.29%</FONT><FONT FACE="Times New Roman" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">          1,497,000 </FONT><FONT FACE="Times New Roman" SIZE="-1"></FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT FACE="Times New Roman" SIZE="-1"></TD>
<TD></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Times New Roman" SIZE="-1"></FONT><FONT FACE="Times New Roman" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">51.96%</FONT><FONT FACE="Times New Roman" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">$</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">266,532,000</FONT><FONT FACE="Times New Roman" SIZE="-1"></FONT></TD></TR></TABLE>

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

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<P><FONT FACE="Arial" SIZE="-1">Page 6 NHI's second quarter results</FONT></P>

<TABLE WIDTH="100%">
<TR VALIGN="TOP"><TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1">Summary of Facilities by State June 30, 2003</FONT></TD>
<TD><FONT FACE="Arial" SIZE="-1"></TD></TR></TABLE>

<TABLE WIDTH="100%">
<TR VALIGN="TOP"><TD ALIGN="CENTER"></TD>
<TD ALIGN="CENTER"></TD>
<TD ALIGN="CENTER"></TD>
<TD ALIGN="CENTER"></TD>
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<TD ALIGN="CENTER"></TD>
<TD ALIGN="CENTER"></TD>
<TD ALIGN="CENTER"></TD>
<TD ALIGN="CENTER"></TD>
<TD ALIGN="CENTER"></TD>
<TD ALIGN="CENTER"></TD></TR>
<TR VALIGN="TOP"><TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="CENTER"></FONT><FONT FACE="Arial" SIZE="-1"><STRONG></STRONG></FONT><FONT FACE="Arial" SIZE="-1"><STRONG></STRONG></FONT><FONT FACE="Arial" SIZE="-1"><STRONG></STRONG></FONT><FONT FACE="Arial" SIZE="-1"><STRONG></STRONG></FONT><FONT FACE="Arial" SIZE="-1">LTC</FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1">Acute</FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1">MOB</FONT></TD>
<TD ALIGN="CENTER"><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">Total</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">Current</FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1">Percent of</FONT></TD></TR></TABLE>

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

<TABLE WIDTH="100%">
<TR VALIGN="TOP"><TD><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">1.</FONT></TD>
<TD><FONT FACE="Arial" SIZE="-1">Florida</FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1">25</FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="CENTER"></FONT><FONT FACE="Arial" SIZE="-1">1</FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1">14</FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1">7</FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="CENTER"></FONT><FONT FACE="Arial" SIZE="-1">47</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">$      145,146,000 </FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1">28.30%</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT FACE="Arial" SIZE="-1">2.</FONT></TD>
<TD><FONT FACE="Arial" SIZE="-1">Texas</FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1">28</FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="CENTER"></FONT><FONT FACE="Arial" SIZE="-1">2</FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="CENTER"></FONT><FONT FACE="Arial" SIZE="-1">1</FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1">1</FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1">32</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">      101,503,000 </FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1">19.79%</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT FACE="Arial" SIZE="-1">3.</FONT></TD>
<TD><FONT FACE="Arial" SIZE="-1">Tennessee</FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1">21</FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="CENTER"></TD>
<TD ALIGN="CENTER"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">3</FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1">3</FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1">2</FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1">29</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">        42,629,000 </FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1">8.32%</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT FACE="Arial" SIZE="-1">4.</FONT></TD>
<TD><FONT FACE="Arial" SIZE="-1">Missouri</FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1">9</FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="CENTER"></TD>
<TD ALIGN="CENTER"></TD>
<TD ALIGN="CENTER"></TD>
<TD ALIGN="CENTER"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">1</FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1">10</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">        27,834,000 </FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1">5.43%</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT FACE="Arial" SIZE="-1">5.</FONT></TD>
<TD><FONT FACE="Arial" SIZE="-1">New Jersey</FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1">2</FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="CENTER"></TD>
<TD ALIGN="CENTER"></TD>
<TD ALIGN="CENTER"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">1</FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="CENTER"></FONT><FONT FACE="Arial" SIZE="-1">3</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">        27,233,000 </FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1">5.31%</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT FACE="Arial" SIZE="-1">6.</FONT></TD>
<TD><FONT FACE="Arial" SIZE="-1">Arizona</FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1">1</FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="CENTER"></TD>
<TD ALIGN="CENTER"></TD>
<TD ALIGN="CENTER"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">4</FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="CENTER"></FONT><FONT FACE="Arial" SIZE="-1">5</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">        19,823,000 </FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1">3.86%</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT FACE="Arial" SIZE="-1">7.</FONT></TD>
<TD><FONT FACE="Arial" SIZE="-1">Virginia</FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1">7</FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="CENTER"></TD>
<TD ALIGN="CENTER"></TD>
<TD ALIGN="CENTER"></TD>
<TD ALIGN="CENTER"></TD>
<TD ALIGN="CENTER"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">7</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">        19,773,000 </FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1">3.85%</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT FACE="Arial" SIZE="-1">8.</FONT></TD>
<TD><FONT FACE="Arial" SIZE="-1">New Hampshire</FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1">3</FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="CENTER"></TD>
<TD ALIGN="CENTER"></TD>
<TD ALIGN="CENTER"></TD>
<TD ALIGN="CENTER"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">1</FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1">4</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">        18,201,000 </FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1">3.55%</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT FACE="Arial" SIZE="-1">9.</FONT></TD>
<TD><FONT FACE="Arial" SIZE="-1">Georgia</FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1">7</FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="CENTER"></TD>
<TD ALIGN="CENTER"></TD>
<TD ALIGN="CENTER"></TD>
<TD ALIGN="CENTER"></TD>
<TD ALIGN="CENTER"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">7</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">        18,112,000 </FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1">3.53%</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT FACE="Arial" SIZE="-1">10.</FONT></TD>
<TD><FONT FACE="Arial" SIZE="-1">Kansas</FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1">7</FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="CENTER"></TD>
<TD ALIGN="CENTER"></TD>
<TD ALIGN="CENTER"></TD>
<TD ALIGN="CENTER"></TD>
<TD ALIGN="CENTER"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">7</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">        13,083,000 </FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1">2.55%</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT FACE="Arial" SIZE="-1">11.</FONT></TD>
<TD><FONT FACE="Arial" SIZE="-1">Massachusetts</FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1">4</FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="CENTER"></TD>
<TD ALIGN="CENTER"></TD>
<TD ALIGN="CENTER"></TD>
<TD ALIGN="CENTER"></TD>
<TD ALIGN="CENTER"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">4</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">        12,932,000 </FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1">2.52%</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT FACE="Arial" SIZE="-1">12.</FONT></TD>
<TD><FONT FACE="Arial" SIZE="-1">Washington</FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1">5</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">5</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">        10,366,000 </FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1">2.02%</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT FACE="Arial" SIZE="-1">13.</FONT></TD>
<TD><FONT FACE="Arial" SIZE="-1">Kentucky</FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1">4</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">5</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">        10,228,000 </FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1">1.99%</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT FACE="Arial" SIZE="-1">14.</FONT></TD>
<TD><FONT FACE="Arial" SIZE="-1">South Carolina</FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1">3</FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="CENTER"></TD>
<TD ALIGN="CENTER"></TD>
<TD ALIGN="CENTER"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">1</FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="CENTER"></FONT><FONT FACE="Arial" SIZE="-1">4</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">        8,902,000 </FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1">1.74%</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT FACE="Arial" SIZE="-1">15.</FONT></TD>
<TD><FONT FACE="Arial" SIZE="-1">Colorado</FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1">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"></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">3</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">          8,125,000 </FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1">1.58%</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT FACE="Arial" SIZE="-1">16.</FONT></TD>
<TD><FONT FACE="Arial" SIZE="-1">Idaho</FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1">1</FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="CENTER"></TD>
<TD ALIGN="CENTER"></TD>
<TD ALIGN="CENTER"></TD>
<TD ALIGN="CENTER"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">1</FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1">2</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">          5,802,000 </FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1">1.13%</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT FACE="Arial" SIZE="-1">17.</FONT></TD>
<TD><FONT FACE="Arial" SIZE="-1">Illinois</FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1">1</FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="CENTER"></FONT><FONT FACE="Arial" SIZE="-1">1</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">2</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">          4,508,000 </FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1">0.88%</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT FACE="Arial" SIZE="-1">18.</FONT></TD>
<TD><FONT FACE="Arial" SIZE="-1">Michigan</FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1">2</FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="CENTER"></TD>
<TD ALIGN="CENTER"></TD>
<TD ALIGN="CENTER"></TD>
<TD ALIGN="CENTER"></TD>
<TD ALIGN="CENTER"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">2</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">          3,307,000 </FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1">0.64%</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT FACE="Arial" SIZE="-1">19.</FONT></TD>
<TD><FONT FACE="Arial" SIZE="-1">Alabama</FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1">2</FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="CENTER"></TD>
<TD ALIGN="CENTER"></TD>
<TD ALIGN="CENTER"></TD>
<TD ALIGN="CENTER"></TD>
<TD ALIGN="CENTER"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">2</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">          2,616,000 </FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1">0.51%</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT FACE="Arial" SIZE="-1">20.</FONT></TD>
<TD><FONT FACE="Arial" SIZE="-1">Pennsylvania</FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1">1</FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="CENTER"></TD>
<TD ALIGN="CENTER"></TD>
<TD ALIGN="CENTER"></TD>
<TD ALIGN="CENTER"></TD>
<TD ALIGN="CENTER"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">1</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">          2,249,000 </FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1">0.44%</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT FACE="Arial" SIZE="-1">21.</FONT></TD>
<TD><FONT FACE="Arial" SIZE="-1">Wisconsin</FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1">1</FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="CENTER"></TD>
<TD ALIGN="CENTER"></TD>
<TD ALIGN="CENTER"></TD>
<TD ALIGN="CENTER"></TD>
<TD ALIGN="CENTER"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">1</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">          2,108,000 </FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1">0.41%</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT FACE="Arial" SIZE="-1">22.</FONT></TD>
<TD><FONT FACE="Arial" SIZE="-1">North Carolina</FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1">0</FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="CENTER"></TD>
<TD ALIGN="CENTER"></TD>
<TD ALIGN="CENTER"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">1</FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="CENTER"></FONT><FONT FACE="Arial" SIZE="-1">1</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">          2,046,000 </FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1">0.40%</FONT></TD></TR>
<TR VALIGN="TOP"><TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="CENTER"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">137</FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1">1</FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1">4</FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1">17</FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1">18</FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1">6</FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1">183</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">$      506,589,000 </FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1">98.76%</FONT></TD></TR>
<TR VALIGN="TOP"><TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="CENTER"></TD>
<TD ALIGN="CENTER"></TD>
<TD ALIGN="CENTER"></TD>
<TD ALIGN="CENTER"></TD>
<TD ALIGN="CENTER"></TD>
<TD ALIGN="CENTER"></TD>
<TD ALIGN="CENTER"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="CENTER"></TD></TR>
<TR VALIGN="TOP"><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></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">Remic II</FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1">          6,346,000 </FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1">1.24%</FONT></TD></TR>
<TR VALIGN="TOP"><TD ALIGN="RIGHT"><FONT FACE="Arial" SIZE="-1"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1"></FONT><FONT FACE="Arial" SIZE="-1">$      512,935,000 </FONT></TD>
<TD ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1">100.00%</FONT></TD></TR></TABLE>

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[{"type": "8-K", "sequence": "1", "filename": "nhi6038k.htm", "description": "NHI JUNE 2003 EARNINGS RELEASE", "secsgml_size_bytes": 122123}]
{"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": "03797640"}, "business-address": {"street1": "100 VINE ST STE 1400", "street2": "CITY CENTER", "city": "MURFREESBORO", "state": "TN", "zip": "37130", "phone": "6158909100"}, "mail-address": {"street1": "P.O. BOX 1102", "city": "MURFREESBORO", "state": "TN", "zip": "37133"}}
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.  20549
FORM 8-K
CURRENT REPORT PURSUANT
TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): July 23, 2003 (July 22, 2003)
National Health Investors, Inc.
(Exact name of Registrant as specified in its charter)
Maryland
(State or Other Jurisdiction of Incorporation)
333-41863
62-1470956
(Commission File No.)
(IRS Employer
Identification Number)
100 Vine Street, Suite 1202
Murfreesboro, TN 37130
(Address of principal executive offices, including zip code)
(615) 890-9100
(Registrant's telephone number, including area code)
Not Applicable
(Former name or former address, if changed since last report)
Item 12.  Results of Operations and Financial Condition
On July 22, 2003, National Health Investors, Inc. made its second quarter earnings
announcement.  A copy of the press release is furnished as an exhibit to this Form 8-K and is
incorporated herein by reference.
SIGNATURES
Pursuant to the requirements of the Securities and Exchange Act of 1934, the registrant
has duly caused this report to be signed on its behalf by the undersigned hereunto duly
authorized.
National Health Investors, Inc.
By:
/s/ W. Andrew Adams
Name: W. Andrew Adams
Title: Chief Executive Officer
By:
/s/ Donald K. Daniel
Name:  Donald K. Daniel
Title: Principal Accounting Officer
Date: July 23, 2003
Exhibit Index
Number
Exhibit
99
Press release, dated July 22, 2003.
EXHIBIT 99
For Release: July 22, 2003
Contact: Gerald Coggin, VP of Investor Relations
Phone: (615) 890-9100
NHI reports second quarter income
MURFREESBORO, Tenn. -- National Health Investors, Inc., (NYSE: NHI and NHIPr)
announced funds from operations ("FFO") from continuing operations for the second quarter
ended June 30, of $14,319,000 or 53 cents per diluted share of common stock compared to
$14,221,000 or 53 cents per share in 2002.
For the six months ended June 30, FFO from continuing operations was $28,039,000 or $1.04
per diluted share of common stock compared to $25,257,000 or 94 cents per share in 2002.
Income from continuing operations applicable to common stock for the second quarter ended
June 30 was $10,816,000 or 39 cents per diluted share of common stock compared to
$10,635,000 or 39 cents per diluted share of common stock for the same period in 2002.
Income from continuing operations applicable to common stock for the six months ended June
30, was $21,004,000 or 75 cents per diluted share of common stock compared to $17,949,000 or
64 cents per diluted share of common stock for the same period in 2002.
Net income for the three months and six months ended June 30, were $10,816,000 and
$22,936,000, respectively, versus $14,772,000 and $22,409,000, respectively, for 2002.
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 and preferred stocks of the company trade on the New York
Stock Exchange with the symbols NHI and NHIPr, respectively. Additional information including
NHI's most recent press releases may be obtained on 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 30
2003
2002
2003
2002
Revenues:
Mortgage interest income
$
4,705
$
8,109
$
10,248
$
13,888
Rental income
13,080
11,869
26,437
23,859
Investment income
1,157
1,469
2,801
2,708
Facility operating revenues
23,313
22,552
45,932
43,474
42,255
43,999
85,418
83,929
Expenses:
Interest
3,176
4,215
7,164
8,828
Depreciation of real estate
3,863
3,912
7,751
7,899
Amortization of loan cost
40
472
223
566
Legal expense
265
166
184
302
Franchise and excise tax
67
171
463
235
General and administrative
721
651
1,434
791
Loan losses
---
2,000
1,500
4,500
Facility operating expenses
23,307
21,777
45,695
42,859
31,439
33,364
64,414
65,980
Income from continuing operations
10,816
10,635
21,004
17,949
Discontinued operations
Operating income - discontinued
---
350
---
673
Gain on sale of real estate
---
3,787
1,932
3,787
---
4,137
1,932
4,460
Net Income
10,816
14,772
22,936
22,409
Dividends to preferred stockholders
398
398
795
795
Net income applicable to common
$
10,418
$
14,374
$
22,141
$
21,614
Income from continuing operations per common share:
Basic
$
.39
$
.39
$
.76
$
.65
Diluted
$
.39
$
.39
$
.75
$
.64
Discontinued operations per common
Basic
$
---
$
.15
$
.07
$
.17
Diluted
$
---
$
.15
$
.07
$
.17
Net income per common share:
Basic
$
.39
$
.54
$
.83
$
.82
Diluted
$
.39
$
.54
$
.82
$
.81
Funds from operations
Basic
$
14,281
$
14,149
$
27,960
$
25,053
Diluted
$
14,319
$
14,221
$
28,039
$
25,257
Funds from operations per common
Basic
$
.53
$
.53
$
1.05
$
.95
Diluted
$
.53
$
.53
$
1.04
$
.94
Weighted average common shares
Basic
26,720,197
26,473,742
26,704,59
26,274,332
Diluted shares for net income
26,976,360
26,930,077
26,960,44
26,917,314
Diluted shares for FFO purposes
26,976,360
26,930,077
26,960,44
26,917,314
Dividends per common share
$
.40
$
.35
$
.80
$
.70
Balance Sheet Data
(in thousands)
June 30
December
2003
2002
Real estate properties, net
$
308,207
$
304,394
Mortgages receivable, net
173,674
201,236
Preferred stock investments
38,132
38,132
REMIC investments
36,366
36,366
Cash and marketable securities
50,546
58,825
Debt
165,964
161,763
Convertible debt
1,500
41,633
Stockholders' equity
405,790
400,429
-more-
Page 3 NHI's second quarter results
Reconciliation of Funds From Operations
(1)
The following table reconciles net income applicable to common stockholders to funds from operations
applicable to common stockholders:
(in thousands, except share and per share amounts)
Three Months Ended
Six Months Ended June
2003
2002
2003
2002
Net income applicable to common stockholders
$
10,418
$
14,374
$
22,141
$
21,614
Adjustments:
Real estate depreciation
3,863
3,912
7,751
7,899
Other Items:
Discontinued operations:
Operating Income - discontinued
---
(350)
---
(673)
Gain on sale of real estate
---
(3,787)
(1,932)
(3,787)
Basic funds from operations applicable to
common stockholders
14,281
14,149
27,960
25,053
Interest on convertible subordinated debentures
38
72
79
204
Diluted funds from operations applicable to
common stockholders
$
14,319
$
14,221
$
28,039
$
25,257
Basic funds from operations per share
$
.53
$
.53
$
1.05
$
.95
Diluted funds from operations per share
$
.53
$
.53
$
1.04
$
.94
Shares for basic funds from operations per share
26,720,197
26,473,742
26,704,594
26,274,332
Shares for diluted funds from operations per share
26,976,360
26,930,077
26,960,445
26,917,314
(1)
We believe that funds from operations is an important supplemental measure of operating performance.
We, therefore, disclose funds from operations, although it is a measurement that is not defined by accounting
principles generally accepted in the United States.  We generally use the National Association of Real Estate
Investment Trusts (NAREIT) measure of funds from operations.  We define funds from operations as income
before extraordinary items adjusted for certain non-cash items, primarily real estate depreciation, less
gains/losses on sales of facilities.  Our measure may not be comparable to similarly titled measures used by
other REITs.  Consequently, our funds from operations may not provide a meaningful measure of our
performance as compared to that of other REITs.  Funds from operations does not represent cash generated
from operating activities as defined by accounting principles generally accepted in the United States (funds
from operations does not include changes in operating assets and liabilities) and, therefore, should not be
considered as an alternative to net income as the primary indicator of operating performance or to cash flow
as a measure of liquidity.
-more
-
Page 4 NHI's second quarter results
National Health Investors, Inc. Portfolio Summary June 30, 2003
Investment
Portfolio Statistics
Properties
Investment
Percentage
Equity Ownership
96
$
308,207,000
60%
Mortgage Loan Receivables
87
204,728,000
40%
Total Real Estate Portfolio
183
$
512,935,000
100%
Equity Ownership
Properties
Beds
Investments
Nursing Homes
70
9,396
$
197,557,000
Assisted Living
16
1,305
79,217,000
Medical Office Buildings
4
124,427 sq.ft
11,590,000
Retirement Homes
5
471
11,674,000
Hospitals
1
55
8,169,000
96
$
308,207,000
Mortgage Loan Receivables
Properties
Beds
Investments
Nursing Homes
53
5,872
$
155,229,000
Assisted Living
2
156
6,219,000
Retirement Homes
1
60
2,332,000
Developmentally Disabled
17
108
4,582,000
73
$
168,362,000
Remic
14
1,971
30,020,000
Remic II Investment
2,313
6,346,000
Total Mortgage Portfolio
87
$
204,728,000
Summary of Facilities by Type:
Percentage of
Total
Properties
Total Dollars
Dollars
Nursing Homes
137
75.87%
$
389,153,000
Assisted Living
18
16.66%
85,435,000
Medical Office Buildings
4
2.26%
11,590,000
Retirement Homes
6
2.73%
14,006,000
Hospitals
1
1.59%
8,169,000
Developmentally Disabled
17
0.89%
4,582,000
183
100.00%
$
512,935,000
-more-
Page 5 NHI's second quarter results
# of
Percentage of
Total
Properties
Total Dollars
Dollars
Public
103
51.96%
$
266,531,000
Regional
66
39.26%
201,388,000
Small Operator
14
8.78%
45,016,000
183
100.00%
$
512,935,000
Public Operators:
Percentage
Of Total
Dollar
Portfolio
Amount
National HealthCare Corp.
12.53%
$
64,294,000
Marriott Senior Living Services
8.75%
44,897,000
Integrated Health Services
8.08%
41,464,000
ElderTrust of Florida
5.62%
28,818,000
National Health Investors, Inc.
5.54%
28,430,000
Mariner Post Acute Network
3.29%
16,860,000
Community Health Systems, Inc.
2.92%
14,989,000
Sun Healthcare
1.87%
9,607,000
Midwest Nursing Home Investors, L.L.C.
1.23%
6,324,000
HCA - The Healthcare Company
0.93%
4,770,000
Res-Care, Inc.
0.89%
4,582,000
Centennial HealthCare Corp.
0.29%
1,497,000
51.96%
$
266,532,000
-more-
Page 6 NHI's second quarter results
Summary of Facilities by State June 30, 2003
LTC
Acute
MOB
Dev
Asst.
Retire-
Total
Current
Percent of
1.
Florida
25
1
14
7
47
$      145,146,000
28.30%
2.
Texas
28
2
1
1
32
101,503,000
19.79%
3.
Tennessee
21
3
3
2
29
42,629,000
8.32%
4.
Missouri
9
1
10
27,834,000
5.43%
5.
New Jersey
2
1
3
27,233,000
5.31%
6.
Arizona
1
4
5
19,823,000
3.86%
7.
Virginia
7
7
19,773,000
3.85%
8.
New Hampshire
3
1
4
18,201,000
3.55%
9.
Georgia
7
7
18,112,000
3.53%
10.
Kansas
7
7
13,083,000
2.55%
11.
Massachusetts
4
4
12,932,000
2.52%
12.
Washington
5
5
10,366,000
2.02%
13.
Kentucky
4
1
5
10,228,000
1.99%
14.
South Carolina
3
1
4
8,902,000
1.74%
15.
Colorado
3
3
8,125,000
1.58%
16.
Idaho
1
1
2
5,802,000
1.13%
17.
Illinois
1
1
2
4,508,000
0.88%
18.
Michigan
2
2
3,307,000
0.64%
19.
Alabama
2
2
2,616,000
0.51%
20.
Pennsylvania
1
1
2,249,000
0.44%
21.
Wisconsin
1
1
2,108,000
0.41%
22.
North Carolina
0
1
1
2,046,000
0.40%
137
1
4
17
18
6
183
$      506,589,000
98.76%
Remic II
6,346,000
1.24%
$      512,935,000
100.00%
-30-