<HTML>
<HEAD>
<META NAME="Generator" CONTENT="Corel WordPerfect 8">
<TITLE></TITLE>
</HEAD>
<BODY TEXT="#000000" LINK="#0000ff" VLINK="#551a8b" ALINK="#ff0000" BGCOLOR="#c0c0c0">

<TABLE WIDTH="100%">
<TR VALIGN="TOP"><TD COLSPAN="3" ALIGN="CENTER"><FONT SIZE="+1"><STRONG>UNITED STATES</STRONG></FONT></TD></TR>
<TR VALIGN="TOP"><TD COLSPAN="3" ALIGN="CENTER"><FONT SIZE="+1"><STRONG>SECURITIES AND EXCHANGE COMMISSION</STRONG></FONT></TD></TR>
<TR VALIGN="TOP"><TD COLSPAN="3">
<P ALIGN="CENTER"><STRONG>Washington, D.C.  20549</STRONG></TD></TR>
<TR VALIGN="TOP"><TD></TD>
<TD></TD>
<TD></TD></TR>
<TR VALIGN="TOP"><TD COLSPAN="3">
<P ALIGN="CENTER"><FONT SIZE="+1"><STRONG>FORM 8-K</STRONG></FONT></TD></TR>
<TR VALIGN="TOP"><TD></TD>
<TD></TD>
<TD></TD></TR>
<TR VALIGN="TOP"><TD COLSPAN="3">
<P ALIGN="CENTER">CURRENT REPORT PURSUANT</TD></TR>
<TR VALIGN="TOP"><TD COLSPAN="3">
<P ALIGN="CENTER">TO SECTION 13 OR 15(d) OF THE</TD></TR>
<TR VALIGN="TOP"><TD COLSPAN="3">
<P ALIGN="CENTER">SECURITIES EXCHANGE ACT OF 1934</TD></TR>
<TR VALIGN="TOP"><TD></TD>
<TD></TD>
<TD></TD></TR>
<TR VALIGN="TOP"><TD COLSPAN="3">
<P ALIGN="CENTER">Date of Report (Date of earliest event reported): October 27, 2005 (October 27, 2005)</TD></TR>
<TR VALIGN="TOP"><TD></TD>
<TD></TD>
<TD></TD></TR>
<TR VALIGN="TOP"><TD COLSPAN="3">
<P ALIGN="CENTER"><STRONG><FONT SIZE="+1"><U>                    National Health Investors, Inc.                    </U></STRONG></FONT><STRONG></STRONG></TD></TR>
<TR VALIGN="TOP"><TD COLSPAN="3">
<P ALIGN="CENTER">(Exact name of Registrant as specified in its charter)</TD></TR>
<TR VALIGN="TOP"><TD></TD>
<TD></TD>
<TD></TD></TR>
<TR VALIGN="TOP"><TD COLSPAN="3">
<P ALIGN="CENTER"><U>        Maryland      </U></TD></TR>
<TR VALIGN="TOP"><TD COLSPAN="3">
<P ALIGN="CENTER">(State or Other Jurisdiction of Incorporation)</TD></TR>
<TR VALIGN="TOP"><TD COLSPAN="2"></TD>
<TD></TD></TR>
<TR VALIGN="TOP"><TD COLSPAN="2" ALIGN="CENTER"><U>        001-10822        </U></TD>
<TD>
<P ALIGN="CENTER"><U>   62-1470956   </U></TD></TR>
<TR VALIGN="TOP"><TD COLSPAN="2" ALIGN="CENTER">(Commission File No.)</TD>
<TD>
<P ALIGN="CENTER">(IRS Employer</TD></TR>
<TR VALIGN="TOP"><TD></TD>
<TD></TD>
<TD>
<P ALIGN="CENTER">Identification Number)</TD></TR>
<TR VALIGN="TOP"><TD></TD>
<TD></TD>
<TD></TD></TR>
<TR VALIGN="TOP"><TD COLSPAN="3">
<P ALIGN="CENTER">100 Vine Street, Suite 1202</TD></TR>
<TR VALIGN="TOP"><TD COLSPAN="3">
<P ALIGN="CENTER"><U>Murfreesboro, TN 37130</U></TD></TR>
<TR VALIGN="TOP"><TD COLSPAN="3">
<P ALIGN="CENTER">(Address of principal executive offices, including zip code)</TD></TR>
<TR VALIGN="TOP"><TD></TD>
<TD></TD>
<TD></TD></TR>
<TR VALIGN="TOP"><TD COLSPAN="3">
<P ALIGN="CENTER"><U>        (615) 890-9100        </U></TD></TR>
<TR VALIGN="TOP"><TD COLSPAN="3">
<P ALIGN="CENTER">(Registrant's telephone number, including area code)</TD></TR>
<TR VALIGN="TOP"><TD COLSPAN="3"></TD></TR>
<TR VALIGN="TOP"><TD COLSPAN="3">
<P ALIGN="CENTER"><U>          Not Applicable          </U></TD></TR>
<TR VALIGN="TOP"><TD COLSPAN="3">
<P ALIGN="CENTER">(Former name or former address, if changed since last report)</TD></TR></TABLE>
</P>
<BR WP="BR1"><BR WP="BR2">
<P>Item 2.02.   Results of Operations and Financial Condition.</P>

<P>	On October 27,  2005, National Health Investors, Inc. issued a press release announcing its third
quarter results.  A copy of the press release is filed an Exhibit 99 to this Current Report on Form 8-K and
is incorporated by reference herein.</P>

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

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

<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: October 27, 2005</TD>
<TD></TD></TR></TABLE>

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

<TABLE WIDTH="100%">
<TR VALIGN="TOP"><TD><STRONG>Number</STRONG></TD>
<TD><STRONG>Exhibit</STRONG></TD></TR>
<TR VALIGN="TOP"><TD>99</TD>
<TD>Press release, dated October 27, 2005</TD></TR></TABLE>

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

<P><FONT FACE="Arial"></FONT><EM><FONT FACE="Times New Roman" SIZE="-1"><STRONG><U></U></EM></STRONG></FONT><FONT SIZE="-1"><STRONG><EM></EM></STRONG></FONT><FONT SIZE="-2">For Release:  October 27, 2005</FONT></P>

<P><FONT SIZE="-2">Contact: Gerald Coggin, VP of Corporate Relation</FONT></P>

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

<P><FONT FACE="Futura MdCn BT" SIZE="+3"></FONT><FONT SIZE="+3"></FONT><FONT SIZE="+2">NHI reports third quarter income</FONT></P>

<P><FONT SIZE="-1"><STRONG></STRONG></FONT><STRONG>		</STRONG>MURFREESBORO, Tenn. -- National Health Investors, Inc., (NYSE: NHI) announced income from
continuing operations for the third quarter ended September 30 of $12,486,000 or 45 cents per basic and diluted share of
common stock compared to $12,084,000, or 44 cents  per basic and diluted share of common stock for the same period in
2004.   <STRONG></STRONG></P>

<P>	Funds from operations ("FFO") for the third quarter ended September 30 was $15,383,000, or 55 cents per basic and
$15,400,000, or 55 cents per diluted share of common stock compared to $14,993,000, or 55 cents per basic and $15,022,000,
or 54 cents per diluted share for the same period in 2004.  </P>

<P>	Income from continuing operations for the nine months ended September 30 was $41,440,000 or $1.50 per basic and
$1.49 per diluted share of common stock compared to $36,744,000 or $1.33 per basic and $1.32 per diluted share of common
stock for the same period in 2004.  <STRONG></STRONG></P>

<P>	For the nine months ended September 30, FFO was $48,065,000 or $1.74 per basic and $48,131,000 or $1.73 per
diluted share of common stock compared to $44,555,000 or $1.64 per basic and $44,646,000 or $1.63 per diluted share for
the same period in 2004.  <FONT SIZE="-1"> </FONT></P>

<P><FONT FACE="Arial"></FONT>	Net income for the three months and nine months ended September 30, was $12,540,000 and $42,149,000,
respectively, versus $12,032,000 and $37,428,000, respectively, for the same period in 2004. </P>

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

<P><FONT FACE="Futura MdCn BT"></FONT><FONT 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 SIZE="-1">-more-</FONT></P>

<BR WP="BR1"><BR WP="BR2">
<P><FONT SIZE="-1"></FONT><FONT SIZE="-1">Page 2 NHI's third quarter results</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><FONT SIZE="-1"></FONT><FONT FACE="Times New Roman"><STRONG></STRONG></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"><U></U></FONT><FONT SIZE="-1"><U></U></FONT><FONT SIZE="-1"><U></U></FONT><FONT SIZE="-1"><U></U></FONT><FONT SIZE="-1"><U></U></FONT>(in thousands, except share and per share</EM></FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1"></TD>
<TD ALIGN="CENTER"></FONT><FONT SIZE="-1">Three Months Ended Sept. 30</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="CENTER"><U></U></FONT><FONT SIZE="-1"><U></U></FONT><FONT SIZE="-1">Nine Months Ended Sept. 30</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1"></TD></TR></TABLE>

<TABLE WIDTH="100%">
<TR VALIGN="TOP"><TD></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"><U></U></FONT><FONT SIZE="-1"><U></U>2005</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1"></TD>
<TD ALIGN="RIGHT"><U></U></FONT><FONT SIZE="-1"><U></U>2004</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"><U></U></FONT><FONT SIZE="-1"><U></U></FONT><FONT SIZE="-1"><U></U>2005</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1"></TD>
<TD ALIGN="RIGHT"><U></U></FONT><FONT SIZE="-1"><U></U>2004</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1"></TD></TR>
<TR VALIGN="TOP"><TD></FONT><FONT SIZE="-1">Revenues:</FONT></TD>
<TD ALIGN="RIGHT"><FONT 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 SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1">	Mortgage interest income</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">$</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">6,710</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">$</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">4,281</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT SIZE="-1">$</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">14,541</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">$</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">13,950</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1"></TD></TR>
<TR VALIGN="TOP"><TD></FONT><FONT SIZE="-1">	Rental income</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT SIZE="-1">11,298</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT SIZE="-1">12,126</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1">34,357</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT SIZE="-1">36,485</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1"></TD></TR>
<TR VALIGN="TOP"><TD></FONT><FONT SIZE="-1">	Facility operating revenues</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT SIZE="-1">23,490</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT SIZE="-1">21,841</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1">69,973</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT SIZE="-1">63,010</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1"></TD></TR>
<TR VALIGN="TOP"><TD></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1">41,498</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT SIZE="-1">38,248</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1">118,871</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT SIZE="-1">113,445</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1"></TD></TR>
<TR VALIGN="TOP"><TD></FONT><FONT SIZE="-1">Expenses:</FONT></TD>
<TD ALIGN="RIGHT"><FONT 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 SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1">	Interest</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT SIZE="-1">2,101</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT SIZE="-1">3,105</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1">6,500</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT SIZE="-1">9,308</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1"></TD></TR>
<TR VALIGN="TOP"><TD></FONT><FONT SIZE="-1">	Depreciation</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT SIZE="-1">3,185</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT SIZE="-1">3,387</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1">9,510</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT SIZE="-1">10,215</FONT></TD>
<TD><FONT SIZE="-1"></TD></TR>
<TR VALIGN="TOP"><TD></FONT><FONT SIZE="-1">	Amortization of loan cost</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT SIZE="-1">34</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT SIZE="-1">37</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1">140</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT SIZE="-1">111</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1"></TD></TR>
<TR VALIGN="TOP"><TD></FONT><FONT SIZE="-1">        Legal expense</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT SIZE="-1">45</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT SIZE="-1">197</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1">367</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT SIZE="-1">1,115</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1"></TD></TR>
<TR VALIGN="TOP"><TD></FONT><FONT SIZE="-1">	Franchise, excise and other taxes</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT SIZE="-1">102</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT SIZE="-1">79</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1">387</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT SIZE="-1">215</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1"></TD></TR>
<TR VALIGN="TOP"><TD></FONT><FONT SIZE="-1">	General and administrative</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT SIZE="-1">1,033</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT SIZE="-1">952</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1">3,205</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT SIZE="-1">2,872</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1"></TD></TR>
<TR VALIGN="TOP"><TD></FONT><FONT SIZE="-1">	Loan, REMIC, realty, and security </FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1"></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 ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD></TR>
<TR VALIGN="TOP"><TD></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1">              losses, (recoveries), net</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT SIZE="-1">2,852</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT SIZE="-1">--- </FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1">6,380</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT SIZE="-1">(896)</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1"></TD></TR>
<TR VALIGN="TOP"><TD></FONT><FONT SIZE="-1">	Facility operating expense</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT SIZE="-1">21,947</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT SIZE="-1">20,001</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1">65,751</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT SIZE="-1">60,282</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1"></TD></TR>
<TR VALIGN="TOP"><TD></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1">31,299</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT SIZE="-1">27,758</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1">92,240</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT SIZE="-1">83,222</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1"></TD></TR>
<TR VALIGN="TOP"><TD></FONT><FONT SIZE="-1">Income before non-operating income</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT SIZE="-1">10,199</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT SIZE="-1">10,490</FONT></TD>
<TD></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1"></FONT><FONT SIZE="-1">26,631</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT SIZE="-1">30,223</FONT></TD>
<TD></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1"></FONT><FONT SIZE="-1">Non-operating income (investments</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD></TD></TR>
<TR VALIGN="TOP"><TD></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1">         and other)</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT SIZE="-1">2,287</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT SIZE="-1">1,594</FONT></TD>
<TD></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1"></FONT><FONT SIZE="-1">14,809</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT SIZE="-1">6,521</FONT></TD>
<TD></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1"></FONT><FONT SIZE="-1">Income from continuing operations</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT SIZE="-1">12,486</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT SIZE="-1">12,084</FONT></TD>
<TD></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1"></FONT><FONT SIZE="-1">41,440</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT SIZE="-1">36,744</FONT></TD>
<TD></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1">Discontinued operations</FONT></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>
<TD></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1">	Operating income (loss)-</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT SIZE="-1">29</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT SIZE="-1">(52)</FONT></TD>
<TD></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1"></FONT><FONT SIZE="-1">(64)</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT SIZE="-1">(568)</FONT></TD>
<TD></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1"></FONT><FONT SIZE="-1">	Net gain on sale of real estate</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT SIZE="-1">25</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT SIZE="-1">--- </FONT></TD>
<TD></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1"></FONT><FONT SIZE="-1">773</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT SIZE="-1">1,252</FONT></TD>
<TD></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1"></FONT><FONT SIZE="-1">	</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT SIZE="-1">54</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT SIZE="-1">(52)</FONT></TD>
<TD></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1"></FONT><FONT SIZE="-1">709</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT SIZE="-1">684</FONT></TD>
<TD></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1"></FONT><FONT SIZE="-1">Net Income</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT SIZE="-1">12,540</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT SIZE="-1">12,032</FONT></TD>
<TD></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1"></FONT><FONT SIZE="-1">42,149</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT SIZE="-1">37,428</FONT></TD>
<TD></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1"></FONT><FONT SIZE="-1">Dividends to preferred stockholders</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT SIZE="-1">---</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT SIZE="-1">--- </FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1">--- </FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT SIZE="-1">(514)</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1"></TD></TR>
<TR VALIGN="TOP"><TD></FONT><FONT SIZE="-1">Net income applicable to common stock</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">$</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">12,540</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">$</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">12,032</FONT></TD>
<TD></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">$</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">42,149</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">$</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">36,914</FONT></TD>
<TD></TD></TR>
<TR VALIGN="TOP"><TD></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD></TR></TABLE>

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

<TABLE WIDTH="100%">
<TR VALIGN="TOP"><TD></FONT><FONT SIZE="-1">     Basic</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">$</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">.45</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">$</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">.44</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT SIZE="-1">$</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">1.50</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">$</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">1.33</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1"></TD></TR>
<TR VALIGN="TOP"><TD></FONT><FONT SIZE="-1">     Diluted</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">$</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">.45</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">$</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">.44</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT SIZE="-1">$</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">1.49</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">$</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">1.32</FONT></TD>
<TD ALIGN="RIGHT"><FONT 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 SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1">Discontinued operations per common share:</FONT></TD>
<TD ALIGN="RIGHT"><FONT 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 SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1">     Basic</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">$</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">---</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">$</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">--- </FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT SIZE="-1">$</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">.02</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">$</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">.03</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">  </FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1">     Diluted</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">$</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">---</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">$</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">(.01)</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT SIZE="-1">$</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">.03</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">$</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">.03</FONT></TD>
<TD ALIGN="RIGHT"><FONT 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 SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1">Net income per common share:</FONT></TD>
<TD ALIGN="RIGHT"><FONT 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 SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1">	Basic</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">$</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">.45</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">$</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">.44</FONT></TD>
<TD></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">$</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">1.52</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">$</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">1.36</FONT></TD>
<TD></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1"></FONT><FONT SIZE="-1">	Diluted</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">$</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">.45</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">$</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">.43</FONT></TD>
<TD></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">$</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">1.52</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">$</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">1.35</FONT></TD>
<TD></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 SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1">Funds from operations:</FONT></TD>
<TD ALIGN="RIGHT"><FONT 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 SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1">	Basic</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">$</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">15,383</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">$</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">14,993</FONT></TD>
<TD></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">$</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">48,065</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">$</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">44,555</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1"></TD></TR>
<TR VALIGN="TOP"><TD></FONT><FONT SIZE="-1">	Diluted</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">$</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">15,400</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">$</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">15,022</FONT></TD>
<TD></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">$</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">48,131</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">$</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">44,646</FONT></TD>
<TD ALIGN="RIGHT"><FONT 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 SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1">Funds from operations per common share:</FONT></TD>
<TD ALIGN="RIGHT"><FONT 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 SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1">	Basic</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">$</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">.55</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">$</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">.55</FONT></TD>
<TD></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">$</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">1.74</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">$</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">1.64</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1"></TD></TR>
<TR VALIGN="TOP"><TD></FONT><FONT SIZE="-1">	Diluted</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">$</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">.55</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">$</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">.54</FONT></TD>
<TD></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">$</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">1.73</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">$</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">1.63</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1"></TD></TR>
<TR VALIGN="TOP"><TD></FONT><FONT SIZE="-1">Weighted average common shares</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD></TR></TABLE>

<TABLE WIDTH="100%">
<TR VALIGN="TOP"><TD></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1">	Basic</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">27,741,424</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">27,488,855</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1">27,676,367</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">27,178,491</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1"></TD></TR></TABLE>

<TABLE WIDTH="100%">
<TR VALIGN="TOP"><TD></FONT><FONT SIZE="-1">	Diluted</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">27,860,177</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT SIZE="-1">27,769,366</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1">27,829,214</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">27,457,222</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1"></TD></TR></TABLE>

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

<TABLE WIDTH="100%">
<TR VALIGN="TOP"><TD></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1">Dividends per common share</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">$</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">.450</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">$</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">.425</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT SIZE="-1">$</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">1.35</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">$</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">1.275</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1"></TD></TR></TABLE>

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

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

<TABLE WIDTH="100%">
<TR VALIGN="TOP"><TD></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"><EM>(in thousands)</EM></FONT></TD>
<TD>
<P ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE="-1"><STRONG><U></U></STRONG></FONT><FONT SIZE="-1">Sept. 30</FONT></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1"></FONT><FONT SIZE="-1">December 31</FONT></TD></TR></TABLE>

<TABLE WIDTH="100%">
<TR VALIGN="TOP"><TD></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1">2005</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT SIZE="-1">2004</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1"></TD></TR>
<TR VALIGN="TOP"><TD></FONT><FONT SIZE="-1">Real estate properties, net</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">$</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">266,010</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">$</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">278,170</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1"></TD></TR>
<TR VALIGN="TOP"><TD></FONT><FONT SIZE="-1">Mortgages receivable, net</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT SIZE="-1">119,460</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT SIZE="-1">112,072</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1"></TD></TR>
<TR VALIGN="TOP"><TD></FONT><FONT SIZE="-1">Preferred stock investments</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT SIZE="-1">38,132</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT SIZE="-1">38,132</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1"></TD></TR>
<TR VALIGN="TOP"><TD></FONT><FONT SIZE="-1">Cash and marketable securities</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT SIZE="-1">155,801</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT SIZE="-1">190,313</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1"></TD></TR>
<TR VALIGN="TOP"><TD></FONT><FONT SIZE="-1">Debt</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT SIZE="-1">118,446</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT SIZE="-1">154,432</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1"></TD></TR>
<TR VALIGN="TOP"><TD></FONT><FONT SIZE="-1">Convertible debt</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT SIZE="-1">582</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT SIZE="-1">1,116</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1"></TD></TR>
<TR VALIGN="TOP"><TD></FONT><FONT SIZE="-1">Stockholders' equity</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT SIZE="-1">424,959</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT SIZE="-1">425,539</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1"></TD></TR></TABLE>

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

<P><FONT SIZE="-1"></FONT><FONT FACE="Helvetica-Narrow" SIZE="-2"><U></U></FONT><FONT SIZE="-2"><U></U></FONT><FONT SIZE="-1"><U>Page 3 NHI's third quarter results</U></FONT></P>

<BR WP="BR1"><BR WP="BR2">
<P><FONT SIZE="-1"></FONT><FONT SIZE="-2"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1">Reconciliation of Funds From Operations <SUP>(1)(2)</SUP></FONT></P>

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

<P><FONT 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 SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"><U></U></FONT><FONT SIZE="-1"><U></U></FONT><FONT SIZE="-1"><U></U></FONT><FONT SIZE="-1"><U></U></FONT><FONT SIZE="-1"><U></U></FONT><FONT SIZE="-1"><U></U></FONT><FONT SIZE="-1"><U></U>Three Months Ended Sept. 30</FONT><FONT SIZE="-2"></FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-2"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="CENTER"><U></U></FONT><FONT SIZE="-2"><U></U></FONT><FONT SIZE="-2"></FONT><FONT SIZE="-1">Nine Months Ended Sept. 30</FONT><FONT SIZE="-2"></FONT></TD></TR></TABLE>

<TABLE WIDTH="100%">
<TR VALIGN="TOP"><TD></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-2"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"><U></U></FONT><FONT SIZE="-1"><U></U>2005</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1"></TD>
<TD ALIGN="RIGHT"><U></U></FONT><FONT SIZE="-1"><U></U>2004</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"><U></U></FONT><FONT SIZE="-1"><U></U></FONT><FONT SIZE="-1"><U></U>2005</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1"></TD>
<TD ALIGN="RIGHT"><U></U></FONT><FONT SIZE="-1"><U></U>2004</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT 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 SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1">Net income</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">$</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">12,540</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">$</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">12,032</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT SIZE="-1">$</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">42,149</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">$</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">37,428</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1">Dividends to preferred stockholders</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT SIZE="-1">---</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT SIZE="-1">---</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1">---</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT SIZE="-1">(514)</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1">Net income applicable to common stockholders</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT SIZE="-1">12,540</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT SIZE="-1">12,032</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1">42,149</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT SIZE="-1">36,914</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1">Elimination of non-cash items in net income:</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD></TR>
<TR VALIGN="TOP"><TD></FONT><FONT SIZE="-1"><U></U></FONT><FONT SIZE="-1"><U></U></FONT><FONT SIZE="-1"><U></U></FONT><FONT SIZE="-1"><U></U></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"><U></U></FONT><FONT SIZE="-1"><U></U></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1">     Real estate depreciation</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT SIZE="-1">2,868</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT SIZE="-1">2,883</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1">8,538</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT SIZE="-1">8,659</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1">     Real estate depreciation in discontinued</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD></TR>
<TR VALIGN="TOP"><TD></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1">                        operations</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT SIZE="-1">---</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT SIZE="-1">78</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1">22</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT SIZE="-1">234</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1">     Gain on sale of real estate</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT SIZE="-1">(25)</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT SIZE="-1">---</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1">(2,644)</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT SIZE="-1">(1,252)</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1">Basic funds from operations applicable to</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD></TR>
<TR VALIGN="TOP"><TD></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1">	common stockholders</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT SIZE="-1">15,383</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT SIZE="-1">14,993</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1">48,065</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT SIZE="-1">44,555</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT 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 SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1">Interest on convertible subordinated debentures</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT SIZE="-1">17</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT SIZE="-1">29</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1">66</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT SIZE="-1">91</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT 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 SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1">Diluted funds from operations applicable to</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD></TR>
<TR VALIGN="TOP"><TD></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1">	common stockholders</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">$</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">15,400</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">$</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">15,022</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT SIZE="-1">$</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">48,131</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">$</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">44,646</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT 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 SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1">Basic funds from operations per share</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">$</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">.55</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">$</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">.55</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT SIZE="-1">$</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">1.74</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">$</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">1.64</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1">Diluted funds from operations per share</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">$</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">.55</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">$</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">.54</FONT></TD>
<TD></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">$</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">1.73</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">$</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">1.63</FONT></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>
<TR VALIGN="TOP"><TD><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1">Shares for basic funds from operations per share</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT SIZE="-1">27,741,424</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT SIZE="-1">27,488,855</FONT></TD>
<TD></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1"></FONT><FONT SIZE="-1">27,676,367</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT SIZE="-1">27,178,491</FONT></TD></TR></TABLE>

<TABLE WIDTH="100%">
<TR VALIGN="TOP"><TD><FONT SIZE="-1">Shares for diluted funds from operations per share</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">27,860,177</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT SIZE="-1">27,769,366</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1">27,829,214</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT SIZE="-1">27,457,222</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 SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1">(1)	<EM>Management believes that funds from operations is an important supplemental measure of operating performance for a real estate
investment trust.  Because the historical cost accounting convention used for real estate assets requires straight-line depreciation
(except on land), such accounting presentation implies that the value of real estate assets diminishes predictably over time.  Since
real estate values instead have historically risen and fallen with market conditions, presentations of operating results for a real
estate investment trust that used historical cost accounting for depreciation could be less informative, and should be
supplemented with a measure such as FFO.  The term FFO was designed by the real estate investment trust industry to address
this issue.  Our measure may not be comparable to similarly titled measures used by other REITs.  Consequently, our funds from
operations may not provide a meaningful measure of our performance as compared to that of other REITs.  Since other REITs
may not use our definition of FFO, caution should be exercised when comparing our Company's FFO to that of other REITs.
Funds from operations in and of itself does not represent cash generated from operating activities in accordance with GAAP
(funds from operations does not include changes in operating assets and liabilities) and, therefore, should not be considered an
alternative to net earnings as an indication of operating performance, or to net cash flow from operating activities as determined
by GAAP in the United States, as a measure of liquidity and is not necessarily indicative of cash available to fund cash needs.
</EM></FONT><FONT SIZE="-2"></FONT><FONT SIZE="-1"></FONT></P>

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

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

<BR WP="BR1"><BR WP="BR2">
<BR WP="BR1"><BR WP="BR2">
<P><FONT SIZE="-2"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1">Page 4 NHI's third quarter results</FONT></P>

<BR WP="BR1"><BR WP="BR2">
<TABLE WIDTH="100%">
<TR VALIGN="TOP"><TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD></TR></TABLE>

<TABLE WIDTH="100%">
<TR VALIGN="TOP"><TD ALIGN="CENTER"><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1">National Health Investors, Inc.        Portfolio Summary        September 30, 2005</FONT></TD></TR></TABLE>

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

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

<TABLE WIDTH="100%">
<TR VALIGN="TOP"><TD></TD>
<TD></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1">Properties</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">Investment</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">Percentage</FONT></TD></TR>
<TR VALIGN="TOP"><TD ALIGN="RIGHT"><FONT SIZE="-1"></FONT><FONT SIZE="-1" COLOR="#ffffff">1</FONT><FONT SIZE="-1"></FONT></TD>
<TD><FONT SIZE="-1">Equity Ownership</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">94</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1"> 266,010,000</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">69%</FONT></TD></TR>
<TR VALIGN="TOP"><TD ALIGN="RIGHT"><FONT SIZE="-1"></FONT><FONT SIZE="-1" COLOR="#ffffff">2</FONT><FONT SIZE="-1"></FONT></TD>
<TD><FONT SIZE="-1">Mortgage Loan Receivables</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">64</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1"> 119,460,000</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">31%</FONT></TD></TR>
<TR VALIGN="TOP"><TD ALIGN="RIGHT"><FONT SIZE="-1"></FONT><FONT SIZE="-1" COLOR="#ffffff">3</FONT><FONT SIZE="-1"></FONT></TD>
<TD><FONT SIZE="-1">Total Real Estate Portfolio</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">158</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1"> 385,470,000</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">100%</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD></TR></TABLE>

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

<TABLE WIDTH="100%">
<TR VALIGN="TOP"><TD ALIGN="RIGHT"></TD>
<TD><FONT SIZE="-1"></FONT><FONT SIZE="-1">Nursing Homes</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">69</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">9,242</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">$177,612,000</FONT></TD></TR>
<TR VALIGN="TOP"><TD ALIGN="RIGHT"><FONT SIZE="-1"></FONT><FONT SIZE="-1" COLOR="#ffffff">2</FONT><FONT SIZE="-1"></FONT></TD>
<TD><FONT SIZE="-1">Assisted Living</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">15</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">1,328</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">60,178,000</FONT></TD></TR>
<TR VALIGN="TOP"><TD ALIGN="RIGHT"><FONT SIZE="-1"></FONT><FONT SIZE="-1" COLOR="#ffffff">3</FONT><FONT SIZE="-1"></FONT></TD>
<TD><FONT SIZE="-1">Medical Office Buildings</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">4</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">124,427 sq.ft.</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">10,528,000</FONT></TD></TR>
<TR VALIGN="TOP"><TD ALIGN="RIGHT"><FONT SIZE="-1"></FONT><FONT SIZE="-1" COLOR="#ffffff">4</FONT><FONT SIZE="-1"></FONT></TD>
<TD><FONT SIZE="-1">Retirement Homes</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">5</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">426</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">10,352,000</FONT></TD></TR>
<TR VALIGN="TOP"><TD ALIGN="RIGHT"><FONT SIZE="-1"></FONT><FONT SIZE="-1" COLOR="#ffffff">5</FONT><FONT SIZE="-1"></FONT></TD>
<TD><FONT SIZE="-1">Hospitals</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">1</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">55</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">7,340,000</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1"></TD>
<TD></TD>
<TD ALIGN="RIGHT"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1">94</FONT></TD>
<TD><FONT SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT SIZE="-1">$266,010,000</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD></TR></TABLE>

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

<TABLE WIDTH="100%">
<TR VALIGN="TOP"><TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD></TR>
<TR VALIGN="TOP"><TD></TD>
<TD><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1">Nursing Homes</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">46</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">5,005 </FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1"> $113,108,000</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1"></TD>
<TD></FONT><FONT SIZE="-1">Retirement Homes</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">1</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">60 </FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1"> 2,019,000 </FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1"></TD>
<TD></FONT><FONT SIZE="-1">Developmentally Disabled</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">17</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">108 </FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1"> 4,333,000 </FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1"></TD>
<TD></TD>
<TD ALIGN="RIGHT"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1">64</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT SIZE="-1">$119,460,000 </FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1"></TD>
<TD></FONT><FONT SIZE="-1">Remic II Investment</FONT></TD>
<TD><FONT SIZE="-1">&nbsp;</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">459 </FONT></TD>
<TD><FONT SIZE="-1">&nbsp;</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1"></TD>
<TD></FONT><FONT SIZE="-1">Total Mortgage Portfolio</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">64</FONT></TD>
<TD><FONT SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT SIZE="-1">$119,460,000 </FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD></TR></TABLE>

<TABLE WIDTH="100%">
<TR VALIGN="TOP"><TD></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1">Summary of Facilities by Type:</FONT></TD>
<TD><FONT SIZE="-1"></TD>
<TD></TD>
<TD></TD></TR></TABLE>

<TABLE WIDTH="100%">
<TR VALIGN="TOP"><TD></TD>
<TD></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1">Percentage of </FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">Total</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1"></TD>
<TD></TD>
<TD ALIGN="RIGHT"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1">Properties</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">Total Dollars</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">Dollars</FONT></TD></TR>
<TR VALIGN="TOP"><TD ALIGN="RIGHT"><FONT SIZE="-1"></FONT><FONT SIZE="-1" COLOR="#ffffff">1</FONT><FONT SIZE="-1"></FONT></TD>
<TD><FONT SIZE="-1">Nursing Homes</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">115</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">75.42%</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">$290,720,000</FONT></TD></TR>
<TR VALIGN="TOP"><TD ALIGN="RIGHT"><FONT SIZE="-1"></FONT><FONT SIZE="-1" COLOR="#ffffff">2</FONT><FONT SIZE="-1"></FONT></TD>
<TD><FONT SIZE="-1">Assisted Living</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">15</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">15.61%</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">60,178,000</FONT></TD></TR>
<TR VALIGN="TOP"><TD ALIGN="RIGHT"><FONT SIZE="-1"></FONT><FONT SIZE="-1" COLOR="#ffffff">3</FONT><FONT SIZE="-1"></FONT></TD>
<TD><FONT SIZE="-1">Medical Office Buildings</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">4</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">2.73%</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">10,528,000</FONT></TD></TR>
<TR VALIGN="TOP"><TD ALIGN="RIGHT"><FONT SIZE="-1"></FONT><FONT SIZE="-1" COLOR="#ffffff">4</FONT><FONT SIZE="-1"></FONT></TD>
<TD><FONT SIZE="-1">Retirement Homes</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">6</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">3.21%</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">12,371,000</FONT></TD></TR>
<TR VALIGN="TOP"><TD ALIGN="RIGHT"><FONT SIZE="-1"></FONT><FONT SIZE="-1" COLOR="#ffffff">5</FONT><FONT SIZE="-1"></FONT></TD>
<TD><FONT SIZE="-1">Hospitals</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">1</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">1.90%</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">7,340,000</FONT></TD></TR>
<TR VALIGN="TOP"><TD ALIGN="RIGHT"><FONT SIZE="-1"></FONT><FONT SIZE="-1" COLOR="#ffffff">6</FONT><FONT SIZE="-1"></FONT></TD>
<TD><FONT SIZE="-1">Developmentally Disabled</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">17</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">1.12%</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">4,333,000</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1"></TD>
<TD></TD>
<TD ALIGN="RIGHT"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1">158</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">100.00%</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">$385,470,000</FONT></TD></TR></TABLE>

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

<BR WP="BR1"><BR WP="BR2">
<P><FONT SIZE="-1">Page 5 NHI's third quarter results</FONT></P>

<BR WP="BR1"><BR WP="BR2">
<TABLE WIDTH="100%">
<TR VALIGN="TOP"><TD><FONT SIZE="-1"></FONT><FONT SIZE="-1">Portfolio by Operator Type</FONT></TD>
<TD><FONT SIZE="-1"></TD>
<TD></TD>
<TD></TD></TR></TABLE>

<TABLE WIDTH="100%">
<TR VALIGN="TOP"><TD></TD>
<TD></TD>
<TD ALIGN="RIGHT"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"># of </FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">Percentage of</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">Total</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1"></TD>
<TD></TD>
<TD ALIGN="RIGHT"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1">Properties</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">Total Dollars</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">Dollars</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1"></TD>
<TD></FONT><FONT SIZE="-1">Public</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">71</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">24.94%</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">$ 96,144,000</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1"></TD>
<TD></FONT><FONT SIZE="-1">Regional</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">80</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">68.31%</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">263,321,000</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1"></TD>
<TD></FONT><FONT SIZE="-1">Small</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">7</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">6.75%</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">26,005,000</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1"></TD>
<TD></TD>
<TD ALIGN="RIGHT"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1">158</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">100.00%</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">$385,470,000</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD ALIGN="RIGHT"></TD></TR>
<TR VALIGN="TOP"><TD></TD>
<TD></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1">NHC Managed Assets</FONT></TD>
<TD><FONT SIZE="-1"></TD>
<TD></TD>
<TD ALIGN="RIGHT"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"> 51,628,000</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1"></TD>
<TD></FONT><FONT SIZE="-1">Total Assets (incl Marketable securities)</FONT></TD>
<TD><FONT SIZE="-1"></TD>
<TD></TD>
<TD ALIGN="RIGHT"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"> 443,488,000</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1"></TD>
<TD></TD>
<TD></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1">11.64%</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD ALIGN="RIGHT"></TD></TR>
<TR VALIGN="TOP"><TD></TD>
<TD></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1">Net Real Estate</FONT></TD>
<TD><FONT SIZE="-1"></TD>
<TD></TD>
<TD ALIGN="RIGHT"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1">266,010,000</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1"></TD>
<TD></FONT><FONT SIZE="-1">Mortgages</FONT></TD>
<TD><FONT SIZE="-1"></TD>
<TD></TD>
<TD ALIGN="RIGHT"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1">119,460,000</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1"></TD>
<TD></FONT><FONT SIZE="-1">Other Notes Receivable</FONT></TD>
<TD><FONT SIZE="-1"></TD>
<TD></TD>
<TD ALIGN="RIGHT"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1">                     -  </FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1"></TD>
<TD></FONT><FONT SIZE="-1">Preferred Stock</FONT></TD>
<TD><FONT SIZE="-1"></TD>
<TD></TD>
<TD ALIGN="RIGHT"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"> 38,132,000</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1"></TD>
<TD></FONT><FONT SIZE="-1">Marketable Securities</FONT></TD>
<TD><FONT SIZE="-1"></TD>
<TD></TD>
<TD ALIGN="RIGHT"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1">19,886,000</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1"></TD>
<TD></FONT><FONT SIZE="-1">REMICS</FONT></TD>
<TD><FONT SIZE="-1"></TD>
<TD></TD>
<TD ALIGN="RIGHT"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1">                     - </FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1"></TD>
<TD></FONT><FONT SIZE="-1">    Total Portfolio</FONT></TD>
<TD><FONT SIZE="-1"></TD>
<TD></TD>
<TD ALIGN="RIGHT"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1">443,488,000</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD ALIGN="RIGHT"></TD></TR>
<TR VALIGN="TOP"><TD></TD>
<TD></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1">Public Operators</FONT></TD>
<TD><FONT SIZE="-1"></TD>
<TD></TD>
<TD ALIGN="RIGHT"></TD></TR>
<TR VALIGN="TOP"><TD></TD>
<TD></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1">Percentage of</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">Dollar</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1"></TD>
<TD></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1">Total Portfolio</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">Amount</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1"></TD>
<TD></FONT><FONT SIZE="-1">National HealthCare Corp.</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT SIZE="-1">13.39%</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">$51,628,000</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1"></TD>
<TD></FONT><FONT SIZE="-1">Community Health Systems, Inc.</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT SIZE="-1">3.53%</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">13,603,000</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1"></TD>
<TD></FONT><FONT SIZE="-1">Sunrise Senior Living Services</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT SIZE="-1">3.47%</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">13,394,000</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1"></TD>
<TD></FONT><FONT SIZE="-1">Sun Healthcare</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT SIZE="-1">2.31%</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1"> 8,921,000</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1"></TD>
<TD></FONT><FONT SIZE="-1">Res-Care, Inc.</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT SIZE="-1">1.12%</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">4,333,000</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1"></TD>
<TD></FONT><FONT SIZE="-1">HCA-The Healthcare Company</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT SIZE="-1">1.11%</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">4,265,000</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1"></TD>
<TD></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1">24.94%</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">$96,144,000</FONT></TD></TR></TABLE>

<BR WP="BR1"><BR WP="BR2">
<TABLE WIDTH="100%">
<TR VALIGN="TOP"><TD ALIGN="CENTER"><FONT SIZE="-1"></FONT><FONT SIZE="-2"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1">National Health Investors, Inc.</FONT></TD>
<TD ALIGN="CENTER"><FONT SIZE="-1">Summary of Facilities by State</FONT></TD>
<TD ALIGN="CENTER"><FONT SIZE="-1">September 30, 2005</FONT></TD></TR></TABLE>

<TABLE WIDTH="100%">
<TR VALIGN="TOP"><TD></TD>
<TD></TD>
<TD ALIGN="CENTER"></TD>
<TD ALIGN="CENTER"></TD>
<TD ALIGN="CENTER"></TD>
<TD ALIGN="CENTER"></TD>
<TD ALIGN="CENTER"></TD>
<TD ALIGN="CENTER"></TD>
<TD ALIGN="CENTER"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT">
<P ALIGN="CENTER"><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1">Percent</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1"></TD>
<TD></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1">Acute</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT SIZE="-1">Dev.</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">Asst.</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">Retire-</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1"></TD>
<TD ALIGN="RIGHT">
<P ALIGN="CENTER"></FONT><FONT SIZE="-1">Investment</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">
<P ALIGN="CENTER">Total</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1"></TD>
<TD></TD>
<TD ALIGN="RIGHT"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1">LTC</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">Care</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">MOB</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">Disab.</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">Living</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">ment</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">Total</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">
<P ALIGN="CENTER">Amount</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">
<P ALIGN="CENTER">Portfolio</FONT></TD></TR></TABLE>

<TABLE WIDTH="100%">
<TR VALIGN="TOP"><TD ALIGN="RIGHT"><FONT SIZE="-1">1</FONT></TD>
<TD><FONT SIZE="-1">Florida</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">17</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT SIZE="-1">1</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">14</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">5</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT SIZE="-1">37</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">$ 89,877,000</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">23.32%</FONT></TD></TR>
<TR VALIGN="TOP"><TD ALIGN="RIGHT"><FONT SIZE="-1">2</FONT></TD>
<TD><FONT SIZE="-1">Texas</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">27</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT SIZE="-1">2</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1">1</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">30</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1"> 85,284,000</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">22.12%</FONT></TD></TR>
<TR VALIGN="TOP"><TD ALIGN="RIGHT"><FONT SIZE="-1">3</FONT></TD>
<TD><FONT SIZE="-1">Tennessee</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">20</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1">3</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">3</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">2</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">28</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1"> 34,731,000</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">9.01%</FONT></TD></TR>
<TR VALIGN="TOP"><TD ALIGN="RIGHT"><FONT SIZE="-1">4</FONT></TD>
<TD><FONT SIZE="-1">Missouri</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">9</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1">1</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">10</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1"> 26,442,000</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">6.86%</FONT></TD></TR>
<TR VALIGN="TOP"><TD ALIGN="RIGHT"><FONT SIZE="-1">5</FONT></TD>
<TD><FONT SIZE="-1">New Jersey</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">2</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1">1</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT SIZE="-1">3</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1"> 25,482,000</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">6.61%</FONT></TD></TR>
<TR VALIGN="TOP"><TD ALIGN="RIGHT"><FONT SIZE="-1">6</FONT></TD>
<TD><FONT SIZE="-1">Virginia</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">8</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1">8</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1"> 20,192,000</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">5.24%</FONT></TD></TR>
<TR VALIGN="TOP"><TD ALIGN="RIGHT"><FONT SIZE="-1">7</FONT></TD>
<TD><FONT SIZE="-1">Arizona</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">1</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1">4</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT SIZE="-1">5</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1"> 18,621,000</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">4.83%</FONT></TD></TR>
<TR VALIGN="TOP"><TD ALIGN="RIGHT"><FONT SIZE="-1">8</FONT></TD>
<TD><FONT SIZE="-1">New Hampshire</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">3</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1">1</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">4</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1"> 15,153,000</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">3.93%</FONT></TD></TR>
<TR VALIGN="TOP"><TD ALIGN="RIGHT"><FONT SIZE="-1">9</FONT></TD>
<TD><FONT SIZE="-1">Georgia</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">7</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1">7</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">14,929,000</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">3.87%</FONT></TD></TR>
<TR VALIGN="TOP"><TD ALIGN="RIGHT"><FONT SIZE="-1">10</FONT></TD>
<TD><FONT SIZE="-1">Massachusetts</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">4</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1">4</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">11,164,000</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">2.90%</FONT></TD></TR>
<TR VALIGN="TOP"><TD ALIGN="RIGHT"><FONT SIZE="-1">11</FONT></TD>
<TD><FONT SIZE="-1">Kansas</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">7</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1">7</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">11,196,000</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">2.90%</FONT></TD></TR>
<TR VALIGN="TOP"><TD ALIGN="RIGHT"><FONT SIZE="-1">12</FONT></TD>
<TD><FONT SIZE="-1">Kentucky</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">3</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">1</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1">4</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1"> 8,946,000</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">2.32%</FONT></TD></TR>
<TR VALIGN="TOP"><TD ALIGN="RIGHT"><FONT SIZE="-1">13</FONT></TD>
<TD><FONT SIZE="-1">South Carolina</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">3</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1">1</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT SIZE="-1">4</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1"> 7,855,000</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">2.04%</FONT></TD></TR>
<TR VALIGN="TOP"><TD ALIGN="RIGHT"><FONT SIZE="-1">14</FONT></TD>
<TD><FONT SIZE="-1">Idaho</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">1</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1">1</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">2</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">5,404,000</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">1.40%</FONT></TD></TR>
<TR VALIGN="TOP"><TD ALIGN="RIGHT"><FONT SIZE="-1">15</FONT></TD>
<TD><FONT SIZE="-1">Pennsylvania</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">0</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1">1</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT SIZE="-1">1</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1"> 4,392,000</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">1.14%</FONT></TD></TR>
<TR VALIGN="TOP"><TD ALIGN="RIGHT"><FONT SIZE="-1">16</FONT></TD>
<TD><FONT SIZE="-1">Alabama</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">2</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1">2</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1"> 2,211,000</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">0.57%</FONT></TD></TR>
<TR VALIGN="TOP"><TD ALIGN="RIGHT"><FONT SIZE="-1">17</FONT></TD>
<TD><FONT SIZE="-1">Wisconsin</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">1</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1">1</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1"> 2,050,000</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">0.53%</FONT></TD></TR>
<TR VALIGN="TOP"><TD ALIGN="RIGHT"><FONT SIZE="-1">18</FONT></TD>
<TD><FONT SIZE="-1">Illinois</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">0</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT SIZE="-1">1</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></TD>
<TD ALIGN="RIGHT"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1">1</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1"> 1,541,000</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">0.40%</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1"></TD>
<TD></TD>
<TD ALIGN="RIGHT"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1">115</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">1</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">4</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">17</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">15</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">6</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">158</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">$385,470,000</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">100.00%</FONT></TD></TR></TABLE>

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

<P ALIGN="CENTER"><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1">-30-<STRONG></STRONG></FONT></P>

</BODY>
</HTML>
[{"type": "8-K", "sequence": "1", "filename": "nhi905er.htm", "secsgml_size_bytes": 88722}]
{"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": "051160564"}, "business-address": {"street1": "100 VINE ST STE 1400", "street2": "CITY CENTER", "city": "MURFREESBORO", "state": "TN", "zip": "37130", "phone": "6158909100"}, "mail-address": {"street1": "P.O. BOX 1102", "city": "MURFREESBORO", "state": "TN", "zip": "37133-1102"}}
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.  20549
FORM 8-K
CURRENT REPORT PURSUANT
TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): October 27, 2005 (October 27, 2005)
National Health Investors, Inc.
(Exact name of Registrant as specified in its charter)
Maryland
(State or Other Jurisdiction of Incorporation)
001-10822
62-1470956
(Commission File No.)
(IRS Employer
Identification Number)
100 Vine Street, Suite 1202
Murfreesboro, TN 37130
(Address of principal executive offices, including zip code)
(615) 890-9100
(Registrant's telephone number, including area code)
Not Applicable
(Former name or former address, if changed since last report)
Item 2.02.   Results of Operations and Financial Condition.
On October 27,  2005, National Health Investors, Inc. issued a press release announcing its third
quarter results.  A copy of the press release is filed an Exhibit 99 to this Current Report on Form 8-K and
is incorporated by reference herein.
SIGNATURES
Pursuant to the requirements of the Securities and Exchange Act of 1934, the registrant has duly
caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
National Health Investors, Inc.
By:
/s/ W. Andrew Adams
Name: W. Andrew Adams
Title: Chief Executive Officer
By:
/s/ Donald K. Daniel
Name:  Donald K. Daniel
Title: Principal Accounting Officer
Date: October 27, 2005
Exhibit Index
Number
Exhibit
99
Press release, dated October 27, 2005
EXHIBIT 99
For Release:  October 27, 2005
Contact: Gerald Coggin, VP of Corporate Relation
Phone: (615) 890-9100
NHI reports third quarter income
MURFREESBORO, Tenn. -- National Health Investors, Inc., (NYSE: NHI) announced income from
continuing operations for the third quarter ended September 30 of $12,486,000 or 45 cents per basic and diluted share of
common stock compared to $12,084,000, or 44 cents  per basic and diluted share of common stock for the same period in
2004.
Funds from operations ("FFO") for the third quarter ended September 30 was $15,383,000, or 55 cents per basic and
$15,400,000, or 55 cents per diluted share of common stock compared to $14,993,000, or 55 cents per basic and $15,022,000,
or 54 cents per diluted share for the same period in 2004.
Income from continuing operations for the nine months ended September 30 was $41,440,000 or $1.50 per basic and
$1.49 per diluted share of common stock compared to $36,744,000 or $1.33 per basic and $1.32 per diluted share of common
stock for the same period in 2004.
For the nine months ended September 30, FFO was $48,065,000 or $1.74 per basic and $48,131,000 or $1.73 per
diluted share of common stock compared to $44,555,000 or $1.64 per basic and $44,646,000 or $1.63 per diluted share for
the same period in 2004.
Net income for the three months and nine months ended September 30, was $12,540,000 and $42,149,000,
respectively, versus $12,032,000 and $37,428,000, respectively, for the same period in 2004.
National Health Investors, Inc. is a long-term health care real estate investment trust that specializes in the financing of
health care real estate by first mortgage and by purchase and leaseback transactions. The common stock of the company
trades on the New York Stock Exchange with the symbol NHI. Additional information including NHI's most recent press
releases may be obtained on NHI's web site at www.nhinvestors.com.
Statements in this press release that are not historical facts are forward-looking statements. NHI cautions investors that any forward-looking
statements made involve risks and uncertainties and are not guarantees of future performance. All forward-looking statements represent NHI's judgment
as of the date of this release.
-more-
Page 2 NHI's third quarter results
(in thousands, except share and per share
Three Months Ended Sept. 30
Nine Months Ended Sept. 30
2005
2004
2005
2004
Revenues:
Mortgage interest income
$
6,710
$
4,281
$
14,541
$
13,950
Rental income
11,298
12,126
34,357
36,485
Facility operating revenues
23,490
21,841
69,973
63,010
41,498
38,248
118,871
113,445
Expenses:
Interest
2,101
3,105
6,500
9,308
Depreciation
3,185
3,387
9,510
10,215
Amortization of loan cost
34
37
140
111
Legal expense
45
197
367
1,115
Franchise, excise and other taxes
102
79
387
215
General and administrative
1,033
952
3,205
2,872
Loan, REMIC, realty, and security
losses, (recoveries), net
2,852
---
6,380
(896)
Facility operating expense
21,947
20,001
65,751
60,282
31,299
27,758
92,240
83,222
Income before non-operating income
10,199
10,490
26,631
30,223
Non-operating income (investments
and other)
2,287
1,594
14,809
6,521
Income from continuing operations
12,486
12,084
41,440
36,744
Discontinued operations
Operating income (loss)-
29
(52)
(64)
(568)
Net gain on sale of real estate
25
---
773
1,252
54
(52)
709
684
Net Income
12,540
12,032
42,149
37,428
Dividends to preferred stockholders
---
---
---
(514)
Net income applicable to common stock
$
12,540
$
12,032
$
42,149
$
36,914
Income from continuing operations per common share:
Basic
$
.45
$
.44
$
1.50
$
1.33
Diluted
$
.45
$
.44
$
1.49
$
1.32
Discontinued operations per common share:
Basic
$
---
$
---
$
.02
$
.03
Diluted
$
---
$
(.01)
$
.03
$
.03
Net income per common share:
Basic
$
.45
$
.44
$
1.52
$
1.36
Diluted
$
.45
$
.43
$
1.52
$
1.35
Funds from operations:
Basic
$
15,383
$
14,993
$
48,065
$
44,555
Diluted
$
15,400
$
15,022
$
48,131
$
44,646
Funds from operations per common share:
Basic
$
.55
$
.55
$
1.74
$
1.64
Diluted
$
.55
$
.54
$
1.73
$
1.63
Weighted average common shares
Basic
27,741,424
27,488,855
27,676,367
27,178,491
Diluted
27,860,177
27,769,366
27,829,214
27,457,222
Dividends per common share
$
.450
$
.425
$
1.35
$
1.275
Balance Sheet Data
(in thousands)
Sept. 30
December 31
2005
2004
Real estate properties, net
$
266,010
$
278,170
Mortgages receivable, net
119,460
112,072
Preferred stock investments
38,132
38,132
Cash and marketable securities
155,801
190,313
Debt
118,446
154,432
Convertible debt
582
1,116
Stockholders' equity
424,959
425,539
-more-
Page 3 NHI's third quarter results
Reconciliation of Funds From Operations
(1)(2)
The following table reconciles net income to funds from operations:
(in thousands, except share and per share amounts)
Three Months Ended Sept. 30
Nine Months Ended Sept. 30
2005
2004
2005
2004
Net income
$
12,540
$
12,032
$
42,149
$
37,428
Dividends to preferred stockholders
---
---
---
(514)
Net income applicable to common stockholders
12,540
12,032
42,149
36,914
Elimination of non-cash items in net income:
Real estate depreciation
2,868
2,883
8,538
8,659
Real estate depreciation in discontinued
operations
---
78
22
234
Gain on sale of real estate
(25)
---
(2,644)
(1,252)
Basic funds from operations applicable to
common stockholders
15,383
14,993
48,065
44,555
Interest on convertible subordinated debentures
17
29
66
91
Diluted funds from operations applicable to
common stockholders
$
15,400
$
15,022
$
48,131
$
44,646
Basic funds from operations per share
$
.55
$
.55
$
1.74
$
1.64
Diluted funds from operations per share
$
.55
$
.54
$
1.73
$
1.63
Shares for basic funds from operations per share
27,741,424
27,488,855
27,676,367
27,178,491
Shares for diluted funds from operations per share
27,860,177
27,769,366
27,829,214
27,457,222
(1)
Management believes that funds from operations is an important supplemental measure of operating performance for a real estate
investment trust.  Because the historical cost accounting convention used for real estate assets requires straight-line depreciation
(except on land), such accounting presentation implies that the value of real estate assets diminishes predictably over time.  Since
real estate values instead have historically risen and fallen with market conditions, presentations of operating results for a real
estate investment trust that used historical cost accounting for depreciation could be less informative, and should be
supplemented with a measure such as FFO.  The term FFO was designed by the real estate investment trust industry to address
this issue.  Our measure may not be comparable to similarly titled measures used by other REITs.  Consequently, our funds from
operations may not provide a meaningful measure of our performance as compared to that of other REITs.  Since other REITs
may not use our definition of FFO, caution should be exercised when comparing our Company's FFO to that of other REITs.
Funds from operations in and of itself does not represent cash generated from operating activities in accordance with GAAP
(funds from operations does not include changes in operating assets and liabilities) and, therefore, should not be considered an
alternative to net earnings as an indication of operating performance, or to net cash flow from operating activities as determined
by GAAP in the United States, as a measure of liquidity and is not necessarily indicative of cash available to fund cash needs.
(2)
We have complied with the SEC's interpretation that recurring impairments taken on real property may not be added back to
net income in the calculation of FFO.  The SEC's position is that recurring impairments on real property are not an appropriate
adjustment.
-more-
Page 4 NHI's third quarter results
National Health Investors, Inc.        Portfolio Summary        September 30, 2005
Portfolio Statistics
Investment
Properties
Investment
Percentage
1
Equity Ownership
94
266,010,000
69%
2
Mortgage Loan Receivables
64
119,460,000
31%
3
Total Real Estate Portfolio
158
385,470,000
100%
Equity Ownership
Properties
Beds
Investment
Nursing Homes
69
9,242
$177,612,000
2
Assisted Living
15
1,328
60,178,000
3
Medical Office Buildings
4
124,427 sq.ft.
10,528,000
4
Retirement Homes
5
426
10,352,000
5
Hospitals
1
55
7,340,000
94
$266,010,000
Mortgage Loan Receivables
Properties
Beds
Investments
Nursing Homes
46
5,005
$113,108,000
Retirement Homes
1
60
2,019,000
Developmentally Disabled
17
108
4,333,000
64
$119,460,000
Remic II Investment
459
Total Mortgage Portfolio
64
$119,460,000
Summary of Facilities by Type:
Percentage of
Total
Properties
Total Dollars
Dollars
1
Nursing Homes
115
75.42%
$290,720,000
2
Assisted Living
15
15.61%
60,178,000
3
Medical Office Buildings
4
2.73%
10,528,000
4
Retirement Homes
6
3.21%
12,371,000
5
Hospitals
1
1.90%
7,340,000
6
Developmentally Disabled
17
1.12%
4,333,000
158
100.00%
$385,470,000
-more-
Page 5 NHI's third quarter results
Portfolio by Operator Type
# of
Percentage of
Total
Properties
Total Dollars
Dollars
Public
71
24.94%
$ 96,144,000
Regional
80
68.31%
263,321,000
Small
7
6.75%
26,005,000
158
100.00%
$385,470,000
NHC Managed Assets
51,628,000
Total Assets (incl Marketable securities)
443,488,000
11.64%
Net Real Estate
266,010,000
Mortgages
119,460,000
Other Notes Receivable
-
Preferred Stock
38,132,000
Marketable Securities
19,886,000
REMICS
-
Total Portfolio
443,488,000
Public Operators
Percentage of
Dollar
Total Portfolio
Amount
National HealthCare Corp.
13.39%
$51,628,000
Community Health Systems, Inc.
3.53%
13,603,000
Sunrise Senior Living Services
3.47%
13,394,000
Sun Healthcare
2.31%
8,921,000
Res-Care, Inc.
1.12%
4,333,000
HCA-The Healthcare Company
1.11%
4,265,000
24.94%
$96,144,000
National Health Investors, Inc.
Summary of Facilities by State
September 30, 2005
Percent
Acute
Dev.
Asst.
Retire-
Investment
Total
LTC
Care
MOB
Disab.
Living
ment
Total
Amount
Portfolio
1
Florida
17
1
14
5
37
$ 89,877,000
23.32%
2
Texas
27
2
1
30
85,284,000
22.12%
3
Tennessee
20
3
3
2
28
34,731,000
9.01%
4
Missouri
9
1
10
26,442,000
6.86%
5
New Jersey
2
1
3
25,482,000
6.61%
6
Virginia
8
8
20,192,000
5.24%
7
Arizona
1
4
5
18,621,000
4.83%
8
New Hampshire
3
1
4
15,153,000
3.93%
9
Georgia
7
7
14,929,000
3.87%
10
Massachusetts
4
4
11,164,000
2.90%
11
Kansas
7
7
11,196,000
2.90%
12
Kentucky
3
1
4
8,946,000
2.32%
13
South Carolina
3
1
4
7,855,000
2.04%
14
Idaho
1
1
2
5,404,000
1.40%
15
Pennsylvania
0
1
1
4,392,000
1.14%
16
Alabama
2
2
2,211,000
0.57%
17
Wisconsin
1
1
2,050,000
0.53%
18
Illinois
0
1
1
1,541,000
0.40%
115
1
4
17
15
6
158
$385,470,000
100.00%
-30-