8-K

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): February 17, 2010

NATIONWIDE HEALTH PROPERTIES, INC.
(Exact name of registrant as specified in its charter)

Maryland	1-9028	95-3997619
(State or other Jurisdiction of Incorporation)	(Commission File Number)	(IRS Employer Identification No.)

610 Newport Center Drive, Suite 1150, Newport Beach, CA	92660
(Address of Principal Executive Offices)	(Zip Code)

Registrant’s telephone number, including area code: (949) 718-4400

(Former name or former address if changed since last report.)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02 Results of Operations and Financial Condition.

On Februrary 17, 2010, we issued a press release, which sets forth our results of operations for the quarter and year ended December 31, 2009. The press release referred to a supplemental information package that is available on our website, free of charge, at www.nhp-reit.com. A copy of the press release and the supplemental information package are attached hereto as Exhibits 99.1 and 99.2, respectively, and are incorporated herein by this reference.

Such information shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and is not incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act, regardless of any general incorporation language in such filing.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits.

Exhibit
Number	Description
99.1	Press release dated February 17, 2010.
99.2	Supplemental information package for the quarter and year ended December 31, 2009.

SIGNATURE

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

	NATIONWIDE HEALTH PROPERTIES, INC.
Date: February 17, 2010	By:	/s/ Abdo H. Khoury
		Abdo H. Khoury
		Executive Vice President and Chief Financial & Portfolio Officer

EX-99.1

Exhibit 99.1

NATIONWIDE HEALTH PROPERTIES, INC.
REPORTS 2009 FOURTH QUARTER AND FULL YEAR RESULTS

• Completed $90 Million Transaction and Amended and Restated Development Pipeline Agreement with PMB

• Issued $76 Million of Equity in the Fourth Quarter

• Cash Balance of $382 Million at Year End

• FAD Payout Ratio of 83% Supports $0.44 per Share Cash Dividend

• Balance Sheet and Liquidity Position Strong

NEWPORT BEACH, Calif., — February 17, 2010 /PRNewswire—FirstCall/ –– Nationwide Health Properties, Inc. (NYSE: NHP) today announced results of operations for the fourth quarter and the year ended December 31, 2009. Contemporaneously with this press release, the Company filed its Annual Report on Form 10-K for the fiscal year ended December 31, 2009 with the Securities and Exchange Commission.

“We began 2009 with the capital markets under extreme duress and the recession gripping the U.S. economy. During that difficult period, NHP’s primary goals were to fortify its already strong balance sheet and further enhance its liquidity position. These goals were clearly accomplished as evidenced by upgrades to our investment grade rating, leverage–related statistics among the very best for investment grade REITs and over $1 billion of available capital,” commented Douglas M. Pasquale, NHP’s Chairman and Chief Executive Officer. “For 2010, our strong financial position combined with improvements in the capital markets and the economy has shifted our attention to growth. In February, we acquired two PMB properties for $90 million and improved our multi-year development agreement with them. We expect to close on another five PMB properties before the end of the first quarter” Mr. Pasquale added.

FOURTH QUARTER 2009 RESULTS OF OPERATIONS

The following table presents selected unaudited financial information for the fourth quarter and the year ended December 31, 2009 as compared to the same period of 2008:

SELECTED FINANCIAL DATA
($ in thousands, except per share amounts)

	Three Months Ended December 31,
	2009		2008		$ Change			% Change
Revenue	$	98,631	$	95,894	$	2,737			2.9	%
Income from Continuing Operations	$	29,675	$	31,136	$	(1,461	)		-4.7	%
Net Income Attributable to NHP Common Stockholders	$	30,895	$	31,964	$	(1,069	)		-3.3	%
Net Income Attributable to NHP Common Stockholders Per Diluted Share	$	0.27	$	0.31	$	(0.04	)		-12.9	%
Diluted FFO	$	61,821	$	64,002	$	(2,181	)		-3.4	%
Adjusted Diluted FFO	$	62,651	$	59,361	$	3,290			5.5	%
Diluted FFO Per Share	$	0.53	$	0.60	$	(0.07	)		-11.7	%
Adjusted Diluted FFO Per Share	$	0.53	$	0.56	$	(0.03	)		-5.4	%
Diluted FAD	$	61,481	$	63,195	$	(1,714	)		-2.7	%
Adjusted Diluted FAD	$	62,311	$	58,554	$	3,757			6.4	%
Diluted FAD Per Share	$	0.52	$	0.59	$	(0.07	)		-11.9	%
Adjusted Diluted FAD Per Share	$	0.53	$	0.55	$	(0.02	)		-3.6	%

	Year Ended December 31,
	2009		2008		$ Change			% Change
Revenue	$	390,512	$	368,319	$	22,193			6.0	%
Income from Continuing Operations	$	125,194	$	106,761	$	18,433			17.3	%
Net Income Attributable to NHP Common Stockholders	$	143,040	$	260,501	$	(117,461	)		-45.1	%
Net Income Attributable to NHP Common Stockholders Per Diluted Share	$	1.31	$	2.63	$	(1.32	)		-50.2	%
Diluted FFO	$	253,357	$	236,514	$	16,843			7.1	%
Adjusted Diluted FFO	$	249,291	$	231,873	$	17,418			7.5	%
Diluted FFO Per Share	$	2.27	$	2.29	$	(0.02	)		-0.9	%
Adjusted Diluted FFO Per Share	$	2.23	$	2.24	$	(0.01	)		-0.4	%
Diluted FAD	$	251,956	$	230,968	$	20,988			9.1	%
Adjusted Diluted FAD	$	247,890	$	226,327	$	21,563			9.5	%
Diluted FAD Per Share	$	2.25	$	2.23	$	0.02			0.9	%
Adjusted Diluted FAD Per Share	$	2.22	$	2.19	$	0.03			1.4	%

2

NON-GAAP FINANCIAL MEASURES

Diluted Funds From Operations (“FFO”) and Diluted Funds Available for Distribution (“FAD”) are non-GAAP measures that we believe are important to understanding our operations. We believe diluted FFO is an important supplemental measure of operating performance because it excludes the effects of depreciation and amortization and gains (losses) from sales of facilities (both of which are based on historical costs and which may be of limited relevance in evaluating current performance). We believe diluted FAD is an important supplemental measure of operating performance because, like diluted FFO, it excludes the effects of depreciation and amortization and gains (losses) from sales of facilities (both of which are based on historical costs and which may be of limited relevance in evaluating current performance). It also excludes straight-lined rent and other non-cash items that have become more significant for us and our competitors over the last several years. We believe that net income is the most directly comparable GAAP measure to diluted FFO and diluted FAD. Reconciliations between net income and diluted FFO and net income and diluted FAD are included in the accompanying financial data. For guidance, we have also included in the accompanying financial data reconciliations between net income per share and diluted FFO and diluted FAD per share. We have also included adjusted diluted FFO and adjusted diluted FAD amounts which exclude acquisition costs and the recognition of gains on debt extinguishments in 2009.

FOURTH QUARTER 2009 INVESTMENT ACTIVITY

During the fourth quarter of 2009, we sold three facilities for $7.3 million in gross proceeds and we invested approximately $16 million in revenue producing capital expenditures at a blended yield of 8.2% on our existing triple net portfolio.

Pacific Medical Buildings Update

In February of 2010, we acquired the Poway, CA medical office building for $74.0 million and a 71% interest in a joint venture which owns a medical office building in Gilbert, AZ for $6.3 million. Additionally, we committed to loan the joint venture $8.8 million.

We have also signed the amended and restated pipeline agreement whereby Pacific Medical Buildings will be responsible for development and NHP will be responsible for project financing for approved development projects. Other modifications to the development agreement provide NHP with improved terms, including preferred returns, a reduced promote interest to PMB and pricing determined at the time of acquisition rather than at the pre-development stage.

We anticipate acquiring majority interests in joint ventures that own the Mission, Orange, and Pasadena, CA assets and the 55.05% interest in the two San Bernardino, CA assets that we do not already own by the end of the first quarter 2010.

3

FOURTH QUARTER 2009 FINANCING TRANSACTIONS

During the fourth quarter of 2009, we issued 2.3 million shares of our common stock through our at-the-market equity offering program at an average price of $33.27 per share, resulting in net proceeds of approximately $76.2 million. From January 1, 2010 to February 16, 2010, we issued 635,000 shares of our common stock through our at-the-market equity offering program at an average price of $35.03 per share, resulting in net proceeds of approximately $22.0 million.

On October 1, 2009, we retired $2.6 million of senior notes with an interest rate of 6.90% that were put to us.

During the fourth quarter of 2009, shareholders of our Series B convertible preferred stock converted 235,540 preferred shares into 1,061,195 shares of our common stock. Subsequent to year end, 512,727 shares of Series B preferred stock converted into 2,314,944 shares of our common stock and we redeemed the remaining 917 shares of our Series B convertible preferred stock.

2010 GUIDANCE

Our adjusted diluted FFO guidance per share range is from $2.05 to $2.09 and our adjusted diluted FAD guidance per share range is from $2.01 to $2.05. Our guidance includes shares issued under our at-the-market equity offering program through February 16, 2010 and the Pacific Medical Buildings transactions and excludes any other acquisitions, investments, impairments or capital transactions occurring in 2010. Additionally, certain costs associated with acquisitions which were previously capitalized are now required to be expensed. While our guidance does not assume any acquisitions other than the transactions with Pacific Medical Buildings, we will incur certain costs that will be expensed for any acquisitions we may make and those costs could be material.

Reconciliation of 2009 Adjusted Diluted FFO to 2010 Adjusted Diluted FFO High Guidance

	High Guidance
	Amount			Per Share
2009 adjusted diluted FFO	$	249,291		$	2.23
Internal triple net portfolio growth (1)		5,147			0.05
Internal medical office building portfolio growth (2)		(900	)		(0.01	)
Reduction in straight-line rent (3)		(1,900	)		(0.02	)
Leakage and reserves (4)		(8,750	)		(0.08	)
PMB acquisition (5)		9,900			0.09
Share issuances (6)		N/A			(0.17	)
2010 adjusted diluted FFO — high guidance	$	252,788		$	2.09

⁽¹⁾ Primarily reflects our annual rent escalators

⁽²⁾ Reflects reduction in non-recurring revenue items and renewal/lease-up expectations for 2010

⁽³⁾ Reflects the adjustment to rental revenue on our triple net portfolio as cash rents received are greater in 2010 than in 2009 and therefore the straight line rent adjustment is lower

⁽⁴⁾ In addition to the ordinary course leakage set forth in our accompanying Supplemental Information Package, reflects reserves for expected lower rent payments compared to 2009 on three unrelated triple net leased facilities

⁽⁵⁾ Expected 2010 FFO contribution from the PMB transaction described in this earnings release

⁽⁶⁾ Dilution resulting from issuance to February 16, 2010 of shares of common stock

CONFERENCE CALL INFORMATION

We have scheduled a conference call and webcast on Thursday, February 18, 2010 at 8:30 a.m. Pacific Time (11:30 a.m. Eastern Time) to discuss these results. The conference call is accessible by dialing 866-271-6130 and referencing conference ID number 46478175 or by logging on to our website at http://www.nhp-reit.com. The international dial-in number is 617-213-8894. The earnings release and any additional financial information that may be discussed on the conference call and webcast will also be available at the same location on our website. A digitized replay of the conference call will be available from 11:30 a.m. Pacific Time (2:30 p.m. Eastern Time) that day until 9:00 p.m. Pacific Time (Midnight Eastern Time) on March 18, 2010. Callers can access the replay by dialing 888-286-8010 or 617-801-6888 and entering conference ID number 31632000. Webcast replays will also be available on our website for at least 12 months following the conference call. Our supplemental information package for the quarter and the year ended December 31, 2009 is available on our website, free of charge, at http://www.nhp-reit.com by selecting “Investor Relations” followed by “Financial Information” and is included in our Current Report on Form 8-K filed February 17, 2010 with the SEC also containing this release. Shareholders may receive free of charge a complete set of our audited financial statements upon request.

4

ABOUT NATIONWIDE HEALTH PROPERTIES, INC.

Nationwide Health Properties, Inc. is a real estate investment trust (REIT) that invests primarily in healthcare real estate in the United States. As of December 31, 2009, the Company’s portfolio of properties, including mortgage loans and properties owned by unconsolidated joint ventures, totaled 576 properties among the following segments: 279 senior housing facilities, 197 skilled nursing facilities, 82 medical office buildings, 11 continuing care retirement communities and 7 specialty hospitals. For more information on Nationwide Health Properties, Inc., visit our website at http://www.nhp-reit.com.

FORWARD LOOKING STATEMENTS

Certain information contained in this release includes forward-looking statements. Forward-looking statements include statements regarding our expectations, beliefs, intentions, plans, objectives, goals, strategies, future events or performance and underlying assumptions and other statements which are not statements of historical facts. These statements may be identified, without limitation, by the use of forward-looking terminology such as “may,” “will,” “anticipates,” “expects,” “believes,” “intends,” “should” or comparable terms or the negative thereof. These forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those described in the statements. Risks and uncertainties associated with our business include (without limitation) the following: deterioration in the operating results or financial condition, including bankruptcies, of our tenants; non-payment or late payment of rent, interest or loan principal amounts by our tenants; our reliance on two tenants for a significant percentage of our revenue; occupancy levels at certain facilities; our level of indebtedness; changes in the ratings of our debt securities; maintaining compliance with our debt covenants; access to the capital markets and the cost and availability of capital; the effect of proposed healthcare reform legislation or government regulations, including changes in the reimbursement levels under the Medicare and Medicaid programs; the general distress of the healthcare industry; increasing competition in our business sector; the effect of economic and market conditions and changes in interest rates; the amount and yield of any additional investments; risks associated with acquisitions, including our ability to identify and complete favorable transactions, delays or failures in obtaining third party consents or approvals, the failure to achieve perceived benefits, unexpected costs or liabilities and potential litigation; the ability of our tenants to pay contractual rent and/or interest escalations in future periods; the ability of our tenants to obtain and maintain adequate liability and other insurance; our ability to attract new tenants for certain facilities; our ability to sell certain facilities for their book value; our ability to retain key personnel; potential liability under environmental laws; the possibility that we could be required to repurchase some of our senior notes; changes in or inadvertent violations of tax laws and regulations and other factors that can affect our status as a real estate investment trust; and other factors discussed from time to time in our news releases, public statements and/or filings with the Securities and Exchange Commission, especially the “Risk Factors” sections of our Annual and Quarterly Reports on Forms 10-K and 10-Q. Forward-looking information is provided by us pursuant to the safe harbor established under the Private Securities Litigation Reform Act of 1995 and should be evaluated in the context of these factors. We disclaim any intent or obligation to update these forward-looking statements.

Contact:
Abdo H. Khoury
Chief Financial and Portfolio Officer
Nationwide Health Properties, Inc.
(949) 718-4400

***Financial Tables to Follow***

5

NATIONWIDE HEALTH PROPERTIES, INC.
CONSOLIDATED INCOME STATEMENTS
(In thousands, except per share data)

	Three Months Ended December 31,						Year Ended December 31,
	2009			2008			2009			2008
	(Unaudited)
Revenue:
Triple-net lease rent	$	74,427		$	72,115		$	295,757		$	283,052
Medical office building operating rent		17,510			17,229			68,319			60,287
		91,937			89,344			364,076			343,339
Interest and other income		6,694			6,550			26,436			24,980
		98,631			95,894			390,512			368,319
Expenses:
Interest and amortization of deferred financing costs		23,091			25,492			93,630			101,045
Depreciation and amortization		31,804			30,624			124,264			116,375
General and administrative		6,928			6,513			27,353			26,051
Acquisition costs		830			—			830			—
Medical office building operating expenses		7,704			7,849			28,906			26,631
		70,357			70,478			274,983			270,102
Operating income		28,274			25,416			115,529			98,217
Income from unconsolidated joint ventures		1,401			1,079			5,101			3,903
Gain on debt extinguishment, net		—			4,641			4,564			4,641
Income from continuing operations		29,675			31,136			125,194			106,761
Discontinued operations
Gains on sale of facilities, net		2,756			1,552			23,908			154,995
(Loss) income from discontinued operations		(57	)		704			(44	)		6,251
		2,699			2,256			23,864			161,246
Net income		32,374			33,392			149,058			268,007
Net (income) loss attributable to noncontrolling interests		(484	)		24			(668	)		131
Net income attributable to NHP		31,890			33,416			148,390			268,138
Preferred stock dividends		(995	)		(1,452	)		(5,350	)		(7,637	)
Income available to NHP common stockholders	$	30,895		$	31,964		$	143,040		$	260,501
Basic earnings per share (EPS):
Income from continuing operations attributable to NHP common stockholders	$	0.25		$	0.30		$	1.11		$	1.01
Discontinued operations attributable to NHP common stockholders		0.02			0.02			0.23			1.66
Net income attributable to NHP common stockholders	$	0.27		$	0.32		$	1.34		$	2.67
Diluted EPS:
Income from continuing operations attributable to NHP common stockholders	$	0.25		$	0.29		$	1.09		$	1.00
Discontinued operations attributable to NHP common stockholders		0.02			0.02			0.22			1.63
Net income attributable to NHP common stockholders	$	0.27		$	0.31		$	1.31		$	2.63
Weighted average shares outstanding for EPS:
Basic		112,575			100,353			106,329			97,246
Diluted		115,009			102,404			108,547			98,763

6

NATIONWIDE HEALTH PROPERTIES, INC.
RECONCILIATIONS OF NET INCOME TO NON-GAAP FINANCIAL MEASURES
(In thousands, except per share data)
(Unaudited)

Reconciliation of Net Income to Adjusted Diluted FFO

	Three Months Ended December 31,						Year Ended December 31,
	2009			2008			2009			2008
Net income	$	32,374		$	33,392		$	149,058		$	268,007
Preferred stock dividends		(995	)		(1,452	)		(5,350	)		(7,637	)
Net (income) loss attributable to noncontrolling interests		(484	)		24			(668	)		131
Real estate related depreciation and amortization		31,415			30,837			123,666			118,603
Depreciation in income from unconsolidated joint ventures		1,272			1,301			5,209			4,768
Gains on sale of facilities, net		(2,756	)		(1,552	)		(23,908	)		(154,995	)
FFO available to NHP common stockholders		60,826			62,550			248,007			228,877
Series B preferred dividend add-back		995			1,452			5,350			7,637
Diluted FFO		61,821			64,002			253,357			236,514
Acquisition costs		830			—			830			—
Gain on extinguishment of debt, net		—			(4,641	)		(4,564	)		(4,641	)
Gain on extinguishment of debt, net from unconsolidated joint venture		—			—			(332	)		—
Adjusted diluted FFO	$	62,651		$	59,361		$	249,291		$	231,873
Weighted average shares outstanding for diluted FFO:
Diluted weighted average shares outstanding (1)		115,116			102,455			108,621			98,855
Series B preferred stock conversion add-back if not already converted		2,517			3,896			3,154			4,526
Fully diluted weighted average shares outstanding		117,633			106,351			111,775			103,381
Diluted FFO per share	$	0.53		$	0.60		$	2.27		$	2.29
Adjusted diluted FFO per share	$	0.53		$	0.56		$	2.23		$	2.24
Dividends declared per common share	$	0.44		$	0.44		$	1.76		$	1.76
Adjusted diluted FFO payout ratio		83	%		79	%		79	%		79	%
Adjusted diluted FFO coverage		1.20			1.27			1.27			1.27

(1) Diluted weighted average shares outstanding includes the effect of all participating and non-participating share-based payment awards which for us consists of stock options and other share-based payment awards if the effect is dilutive. The dilutive effect of all share-based payment awards is calculated using the treasury stock method. Additionally, our redeemable OP units are included as if converted to common stock on a one-for-one basis.

7

NATIONWIDE HEALTH PROPERTIES, INC.
RECONCILIATIONS OF NET INCOME TO NON-GAAP FINANCIAL MEASURES
(In thousands, except per share data)
(Unaudited)

Reconciliation of Net Income to Adjusted Diluted FAD

	Three Months Ended December 31,						Year Ended December 31,
	2009			2008			2009			2008
Net income	$	32,374		$	33,392		$	149,058		$	268,007
Preferred stock dividends		(995	)		(1,452	)		(5,350	)		(7,637	)
Net (income) loss attributable to noncontrolling interests		(484	)		24			(668	)		131
Real estate related depreciation and amortization		31,415			30,837			123,666			118,603
Gains on sale of facilities, net		(2,756	)		(1,552	)		(23,908	)		(154,995	)
Straight-lined rent		(1,509	)		(2,388	)		(6,275	)		(10,263	)
Amortization of intangible assets and liabilities		(157	)		(148	)		(564	)		(559	)
Non-cash stock-based compensation expense		1,780			1,528			7,007			5,800
Deferred finance cost amortization		765			908			3,101			3,173
Lease commissions and tenant and capital improvements		(1,257	)		(716	)		(4,733	)		(3,715	)
Unconsolidated joint ventures:
Real estate related depreciation and amortization		1,272			1,301			5,209			4,768
Straight-line rent		17			(12	)		(26	)		(66	)
Amortization of intangible assets and liabilities		—			—			5			—
Deferred finance cost amortization		21			21			84			84
FAD available to NHP common stockholders		60,486			61,743			246,606			223,331
Series B preferred dividends		995			1,452			5,350			7,637
Diluted FAD		61,481			63,195			251,956			230,968
Acquisition costs		830			—			830			—
Gain on extinguishment of debt, net		—			(4,641	)		(4,564	)		(4,641	)
Gain on extinguishment of debt, net from unconsolidated joint venture		—			—			(332	)		—
Adjusted diluted FAD	$	62,311		$	58,554		$	247,890		$	226,327
Weighted average shares outstanding for diluted FAD:
Diluted weighted average shares outstanding (1)		115,116			102,455			108,621			98,855
Series B preferred stock add-back if not already converted		2,517			3,896			3,154			4,526
Fully diluted weighted average shares outstanding		117,633			106,351			111,775			103,381
Diluted FAD per share	$	0.52		$	0.59		$	2.25		$	2.23
Adjusted diluted FAD per share	$	0.53		$	0.55		$	2.22		$	2.19
Dividends declared per common share	$	0.44		$	0.44		$	1.76		$	1.76
Adjusted diluted FAD payout ratio		83	%		80	%		79	%		80	%
Adjusted diluted FAD coverage		1.20			1.25			1.26			1.24

(1) Diluted weighted average shares outstanding includes the effect of all participating and non-participating share-based payment awards which for us consists of stock options and other share-based payment awards if the effect is dilutive. The dilutive effect of all share-based payment awards is calculated using the treasury stock method. Additionally, our redeemable OP units are included as if converted to common stock on a one-for-one basis.

8

NATIONWIDE HEALTH PROPERTIES, INC.
RECONCILIATION OF NET INCOME TO NON-GAAP FINANCIAL MEASURES
(In thousands, except per share data)

2010 Guidance Reconciliation of Net Income to Adjusted Diluted FFO and FAD Per Share

	Year Ended December 31, 2010
	Guidance
	Low			High
Net income	$	152,007		$	157,007
Preferred stock dividends		(10	)		(10	)
Real estate related depreciation and amortization		116,652			116,652
Depreciation in income from unconsolidated joint ventures		4,692			4,692
Net income attributable to noncontrolling interests		(3,695	)		(3,695	)
Gains on sales of facilities, net		(22,268	)		(22,268	)
FFO available to common stockholders		247,378			252,378
Series B preferred dividends		10			10
Diluted FFO		247,388			252,388
Acquisition costs		400			400
Adjusted Diluted FFO		247,788			252,788
Straight-line rent		(4,074	)		(4,074	)
Amortization of intangible assets and liabilities		(285	)		(285	)
Non-cash stock-based compensation expense		7,026			7,026
Deferred finance cost amortization		3,075			3,075
Lease commissions and tenant and capital improvements		(11,012	)		(11,012	)
Unconsolidated Joint Ventures:
Straight-lined rent		(5	)		(5	)
Deferred finance cost amortization		84			84
Adjusted Diluted FAD	$	242,597		$	247,597
Diluted FFO per share	$	2.04		$	2.09
Adjusted Diluted FFO per share	$	2.05		$	2.09
Adjusted Diluted FAD per share	$	2.01		$	2.05
Weighted average shares outstanding:
Diluted weighted average shares outstanding		118,869			118,869
NHP/PMB OP units		2,107			2,107
Total		120,976			120,976

9

NATIONWIDE HEALTH PROPERTIES, INC.
CONSOLIDATED BALANCE SHEETS
(In thousands)

	December 31,			December 31,
	2009			2008
Assets
Investments in real estate:
Land	$	318,457		$	320,394
Buildings and improvements		3,088,183			3,079,819
		3,406,640			3,400,213
Less accumulated depreciation		(585,294	)		(490,112	)
		2,821,346			2,910,101
Mortgage loans receivable, net		110,613			112,399
Mortgage loan receivable from related party		47,500			47,500
Investments in unconsolidated joint ventures		51,924			54,299
Net real estate related investments		3,031,383			3,124,299
Cash and cash equivalents		382,278			82,250
Receivables, net		6,605			6,066
Asset held for sale		—			4,542
Intangible assets		93,657			109,434
Other assets		133,152			131,534
Total assets	$	3,647,075		$	3,458,125
Liabilities and Equity
Unsecured senior credit facility	$	—		$	—
Senior notes		991,633			1,056,233
Notes and bonds payable		431,456			435,199
Accounts payable and accrued liabilities		132,915			144,566
Total liabilities		1,556,004			1,635,998
Redeemable OP unitholder interests		57,335			56,778
Equity:
NHP stockholders’ equity
Series B convertible preferred stock		51,364			74,918
Common stock		11,432			10,228
Capital in excess of par value		2,128,843			1,786,193
Cumulative net income		1,705,279			1,556,889
Accumulated other comprehensive (loss) income		(823	)		1,846
Cumulative dividends		(1,862,996	)		(1,669,407	)
Total NHP stockholders’ equity		2,033,099			1,760,667
Noncontrolling interests		637			4,682
Total equity		2,033,736			1,765,349
Total liabilities and equity	$	3,647,075		$	3,458,125

10

EX-99.2

Exhibit 99.2

December 31, 2009 Supplemental Information

Disclaimer Certain information contained in this release includes forward-looking statements. Forward-looking statements include statements regarding our expectations, beliefs, intentions, plans, objectives, goals, strategies, future events or performance and underlying assumptions and other statements which are not statements of historical facts. These statements may be identified, without limitation, by the use of forward-looking terminology such as "may," "will," "anticipates," "expects," "believes," "intends," "should" or comparable terms or the negative thereof. These forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those described in the statements. Risks and uncertainties associated with our business include (without limitation) the following: deterioration in the operating results or financial condition, including bankruptcies, of our tenants; non-payment or late payment of rent, interest or loan principal amounts by our tenants; our reliance on two tenants for a significant percentage of our revenue; occupancy levels at certain facilities; our level of indebtedness; changes in the ratings of our debt securities; maintaining compliance with our debt covenants; access to the capital markets and the cost and availability of capital; government regulations, including changes in the reimbursement levels under the Medicare and Medicaid programs; the general distress of the healthcare industry; increasing competition in our business sector; the effect of economic and market conditions and changes in interest rates; the amount and yield of any additional investments; risks associated with acquisitions, including our ability to identify and complete favorable transactions, delays or failures in obtaining third party consents or approvals, the failure to achieve perceived benefits, unexpected costs or liabilities and potential litigation; the ability of our tenants to pay contractual rent and/or interest escalations in future periods; the ability of our tenants to obtain and maintain adequate liability and other insurance; our ability to attract new tenants for certain facilities; our ability to sell certain facilities for their book value; our ability to retain key personnel; potential liability under environmental laws; the possibility that we could be required to repurchase some of our senior notes; the rights and influence of holders of our outstanding preferred stock; changes in or inadvertent violations of tax laws and regulations and other factors that can affect our status as a real estate investment trust; and other factors discussed from time to time in our news releases, public statements and/or filings with the Securities and Exchange Commission, especially the risk factors set forth in our most recent annual report on Form 10-K and any subsequent quarterly reports on Form 10-Q. Forward-looking information is provided by us pursuant to the safe harbor established under the Private Securities Litigation Reform Act of 1995 and should be evaluated in the context of these factors. We disclaim any intent or obligation to update these forward- looking statements.

Contents

Company Fact Sheet REIT structure provides opportunity to invest directly in real estate and indirectly in healthcare industry Quality healthcare real estate portfolio Long-term triple-net master leases with quality operators Strong affiliations with premiere hospital systems in growing medical office building markets Senior housing care a vital component of U.S. economy High dividend yield and high dividend coverage Financial stability Well positioned to take advantage of investment opportunities and to conservatively grow earnings and dividends NHP is one of the few healthcare REITs with investment grade ratings by Fitch, Moody's, and Standard & Poors. Nationwide Health Properties, Inc. (NHP), incorporated in October 1985, is a publicly traded real estate investment trust (REIT) that invests in senior housing facilities, long-term care facilities and medical office buildings throughout the United States. NHP generally acquires real estate and then leases the assets under long-term triple-net master leases to senior housing and long-term care operators and various types of leases to multiple tenants in the case of medical office buildings. As a REIT specializing in healthcare real estate, NHP provides a focused investment strategy with a well diversified portfolio. NHP employs a conservative, long-term approach to real estate investments with an experienced professional management team having extensive operating, real estate and finance backgrounds. $4.3 billion in healthcare real estate 576 properties in 43 states 260 Assisted and Independent Living 183 Skilled Nursing 80 Medical Office Buildings 17 Other 36 Unconsolidated JV Facilities Over 78 multi-facility tenants Market Facts Enterprise Value $5.3 billion Closing Price $35.18 Market Capitalization $4.2 billion Dividend & Yield $1.76 (5.0%) 52 week range $18.16 - $35.92 Shares & OP Units 116.0 million Company Profile Investor Highlights Our Portfolio WI (6%) MA (6%) WA (6%) CA (12%) TX (13%) Credit Ratings Fitch BBB (stable) Moody's Baa2 (stable) S&P BBB- (positive outlook) as of December 31, 2009 as of December 31, 2009

FINANCIAL RESULTS

Consolidated Income Statements

Reconciliation of Net Income to Funds From Operations (FFO) See Financial Measures Definitions

Reconciliation of Net Income to Funds Available for Distribution (FAD) See Financial Measures Definitions

Reconciliation of 2010 Net Income Guidance to Adjusted Diluted FFO and FAD Guidance See Financial Measures Definitions

Consolidated Balance Sheets

Other Assets

Capitalization

Capitalization (2) MOBs NHP/PMB 66 NHP/PMB Under Contruction 34 Equity Debt Investments 64 36 MrktCap TotDebt Investments 71 29 Undepreciated Book Basis Enterprise Value 64% Equity 36% Debt 71% Equity 29% Debt 66% Unsecured 34% Secured MOBs NHP/PMB 93 NHP/PMB Under Contruction 7 93% 7% Fixed Variable Debt Composition Based on total debt including NHP's share of unconsolidated joint venture

Debt Maturities and Debt Composition

Debt Covenants

Credit Facility Covenants

Bonds Covenants (Bonds Issued Prior to 2006)

New Bond Covenants (Bonds Issued After 2006)

Interest and Fixed Charge Coverage See Financial Measures Definitions

Unconsolidated Joint Venture Financial Statements - Balance Sheet

Unconsolidated Joint Venture Financial Statements - Income Statements

Financial Measures Definitions Adjusted EBITDA: We believe that Adjusted EBITDA is an important supplemental operating and liquidity measure primarily because it is used in the calculation of the Adjusted Interest Coverage Ratio and the Adjusted Fixed Charge Coverage Ratio and we present it solely for the purpose of being used in those calculations. Adjusted EBITDA is calculated by adding back any gains and losses on the sale of real estate and any impairments to EBITDA for a given period. We believe Adjusted EBITDA is most useful as a liquidity measure in the ratio calculations noted above to enable investors to determine and compare a company's ability to meet its interest and Fixed Charges obligations. However, the methodology for calculating it makes net income the most directly comparable GAAP measure. As such, we believe investors should consider Adjusted EBITDA, cash flows from operating activities and net income when evaluating our ability to meet our interest and Fixed Charges obligations. The usefulness of Adjusted EBITDA is limited because it doesn't reflect, among other things, required principal payments, cash expenditures, capital expenditures or capital commitments. Adjusted EBITDA does not represent net income or cash flows from operations as defined by GAAP and should not be considered as an alternative to either of those measures. Our calculation of Adjusted EBITDA may not be comparable to similar measures reported by other companies. Adjusted Fixed Charge Coverage Ratio: We believe that the Adjusted Fixed Charge Coverage Ratio is an important supplemental liquidity measure that reflects a company's ability to meet its interest and preferred dividend payment obligations and allows investors to compare interest and dividend paying capabilities among different companies. We calculate the Adjusted Fixed Charge Coverage Ratio by dividing Adjusted EBITDA by Fixed Charges. In addition, credit rating agencies utilize similar ratios in evaluating the credit ratings on our debt instruments. This ratio's usefulness is limited by the same factors that limit the usefulness of the components Adjusted EBITDA and Fixed Charges. Our calculation of the Adjusted Fixed Charge Coverage Ratio should not be considered an alternative to the ratio of earnings to fixed charges as defined by Item 503(d) of Regulation S-K and it may not be comparable to similar ratios reported by other companies. Adjusted Interest Coverage Ratio: We believe that the Adjusted Interest Coverage Ratio is an important supplemental liquidity measure that reflects a company's ability to meet its interest payment obligations and allows investors to compare interest paying capabilities among different companies. We calculate the Adjusted Interest Coverage Ratio by dividing Adjusted EBITDA by interest expense (including capitalized interest, if any). In addition, credit rating agencies utilize similar ratios in evaluating the credit ratings on our debt instruments. This ratio's usefulness is limited by the same factors that limit the usefulness of the component Adjusted EBITDA. Our calculations of the Adjusted Interest Coverage Ratio may not be comparable to similar ratios reported by other companies. EBITDA: We believe that EBITDA is an important supplemental operating and liquidity measure primarily because it is used in the calculation of Adjusted EBITDA which is in turn used in the calculation of the Adjusted Interest Coverage Ratio and the Adjusted Fixed Charge Coverage Ratio and we present it solely for the purpose of being used in those calculations. EBITDA is calculated by adding interest, taxes, depreciation and amortization to net income. The real estate industry uses EBITDA as a non-GAAP measure of both operating performance and liquidity. We believe it is most useful as a liquidity measure in the ratio calculations noted above to enable investors to determine and compare a company's ability to meet its interest and Fixed Charges obligations. However, the methodology for calculating it makes net income the most directly comparable GAAP measure. As such, we believe investors should consider EBITDA, cash flows from operating activities and net income when evaluating our ability to meet our interest and Fixed Charges obligations. The usefulness of EBITDA is limited because it doesn't reflect, among other things, required principal payments, cash expenditures, capital expenditures or capital commitments. EBITDA does not represent net income or cash flows from operations as defined by GAAP and should not be considered as an alternative to either of those measures. Our calculation of EBITDA may not be comparable to similar measures reported by other companies.

Financial Measures Definitions (2) FAD Payout Ratio and FFO Coverage: The FAD Payout Ratio is calculated by dividing the common dividend per share by diluted FAD per share for any given period. FAD Coverage is calculated by dividing diluted FAD per share by the common dividend per share for any given period. We believe that both of these amounts are important supplemental liquidity measures that enable investors to compare dividend security among REITs. Fixed Charges: Fixed Charges is a measure of the total interest and preferred stock dividend obligations of a company. It is calculated by adding interest expense (including capitalized interest, if any) and preferred stock dividends for any given period and is utilized in calculating the Adjusted Fixed Charge Coverage Ratio. It's usefulness is limited as, among other things, it does not include required principal payments or any other contractual obligations a company may have. Our calculation of Fixed Charges should not be considered an alternative to fixed charges as defined by Item 503(d) of Regulation S-K and it may not be comparable to Fixed Charges reported by other companies. Funds Available for Distribution ("FAD"): While net income and its related per share amounts as defined by generally accepted accounting principles ("GAAP") are the most appropriate earnings measures, we believe that FAD and its related per share amounts are important supplemental measures of operating performance. GAAP requires the use of straight-line depreciation of historical costs and implies that real estate values diminish predictably and ratably over time. However, real estate values have historically risen and fallen based on various market conditions and other factors. FFO was developed as a supplemental measure of operating performance primarily in order to exclude historical cost based depreciation and amortization and its effects as it does not generally reflect the actual change in value of real estate over time. FAD was developed as a supplemental measure of operating performance primarily to exclude non-cash revenues and expenses that are included in FFO. FAD is defined as net income (computed in accordance with GAAP) excluding gains and losses from the sale of real estate plus real estate related depreciation and amortization, plus or minus straight-lined rent (plus cash in excess of rent or minus rent in excess of cash), plus or minus amortization of above or below market lease intangibles, plus non-cash stock based compensation, plus deferred finance cost amortization plus any impairments minus lease commissions, tenant improvements and capital improvements paid. The same adjustments are made to reflect our share of these same items from unconsolidated joint ventures. We believe that the use of FAD and its related per share amounts and FFO and its related per share amounts in conjunction with the required GAAP disclosures provides investors with a more comprehensive understanding of the operating results of a real estate investment trust ("REIT") and enables investors to compare the operating results between REITs without having to account for differences caused by different depreciation assumptions and different non-cash revenues and expenses. Additionally, FAD is widely used by industry analysts as a measure of operating performance for equity REITs. FAD does not represent cash flow from operating activities or net income as defined by GAAP and, therefore should not be considered as an alternative to cash flow as a measure of liquidity or net income as the primary indicator of operating performance. Our calculations of FAD may not be comparable to FAD reported by other REITs or analysts that define it differently than we do. Funds from Operations ("FFO"): While net income and its related per share amounts as defined by generally accepted accounting principles ("GAAP") are the most appropriate earnings measures, we believe that FFO and its related per share amounts are important supplemental measures of operating performance. GAAP requires the use of straight-line depreciation of historical costs and implies that real estate values diminish predictably and ratably over time. However, real estate values have historically risen and fallen based on various market conditions and other factors. FFO was developed as a supplemental measure of operating performance primarily in order to exclude historical cost based depreciation and amortization and its effects as it does not generally reflect the actual change in value of real estate over time. We calculate FFO in accordance with the National Association of Real Estate Investment Trusts' definition. FFO is defined as net income (computed in accordance with GAAP) excluding gains and losses from the sale of real estate plus real estate related depreciation and amortization. The same adjustments are made to reflect our share of gains and losses from the sale of real estate and real estate related depreciation and amortization from unconsolidated joint ventures. We believe that the use of FFO and its related per share amounts in conjunction with the required GAAP disclosures provides investors with a

Financial Measures Definitions (3) more comprehensive understanding of the operating results of a real estate investment trust ("REIT") and enables investors to compare the operating results between REITs without having to account for differences caused by different depreciation assumptions. Additionally, FFO is widely used by industry analysts as a measure of operating performance for equity REITs. FFO does not represent cash flow from operating activities or net income as defined by GAAP and, therefore should not be considered as an alternative to cash flow as a measure of liquidity or net income as the primary indicator of operating performance. Our calculations of FFO may not be comparable to FFO reported by other REITs that do not define the term in accordance with the NAREIT definition or interpret that definition differently than we do. Enterprise Value: Enterprise Value is a measure of a company's value. We calculate Enterprise Value as market equity capitalization plus debt. Market equity capitalization is calculated as the sum of (1) the number of shares of common stock and limited partnership units multiplied by the closing price of our common stock on the last day of the period presented and (2) the number of shares of Series B preferred stock multiplied by the closing price of our Series B preferred stock on the last day of the period presented. Consolidated Enterprise Value includes our market equity capitalization, noncontrolling interests and consolidated debt, less cash and cash equivalents. Total Enterprise Value includes our market equity capitalization, noncontrolling interests, and consolidated debt, less cash and cash equivalents and our share of the debt of our unconsolidated joint ventures, less our share of the cash and cash equivalents of our unconsolidated joint ventures. Gross Investment: We define Gross Investment as our total investment in a property which includes land, building, improvements, equipment as well as any other identifiable assets such as lease-up intangible assets, above market tenant and ground lease intangible assets (collectively "intangible assets") included on our balance sheets and/or below market tenant and ground lease intangible liabilities included in the caption "Accounts Payable and Accrued Liabilities" on our balance sheets. Adjusted FAD: Adjusted FAD excludes from FAD any material one-time items reflected in the financial statements for a given period. Adjusted FFO: The NAREIT definition of FFO doesn't exclude impairments of assets. We believe that impairments are equivalent to losses on sale that are taken early due to the current requirements of GAAP, therefore we generally present Adjusted FFO, which excludes impairments, for any period where our net income includes an impairment. We also exclude any material one-time items reflected in the financial statements for a given period.

INVESTMENTS & DISPOSITIONS

4th Quarter 2009 Investments

Year to Date December 31, 2009 Investments

Expected Dispositions

Projected Funding Obligations through 2012 (as of December 31, 2009)

Conditional Pacific Medical Buildings Acquisition Obligations through 2012 (as of December 31, 2009)

Triple-Net Lease Expirations and Mortgage Loans Receivable Principal Payments

PORTFOLIO OVERVIEW

Portfolio Summary

Portfolio Performance Summary

Consolidated Portfolio Overview Private Pay Medicare Medicaid Investments 73 10 17 Top 5 = 40% Top 10 = 55% Top 15 = 62% Asset Type Pay Source Locations Tenant/Operator WI (6%) MA (6%) CA (12%) TX (13%) (based on investment) (based on investment*) (based on revenue) WA (6%) *Investment includes all asset types Private Pay 73% Medicaid 17% Medicare 10% Skilled Assissted Other MOBs Investments 26 48 6 20 Independent and Assisted Living 48% Skilled Nursing 26% MOBs 20% Other 6%

Consolidated Portfolio Performance by Asset Type

Consolidated Portfolio Performance

Consolidated Non-Stabilized Portfolio Performance by Asset Type

Tenant Concentration

Geographic Performance Metrics

Geographic Performance Metrics

Portfolio Performance Summary | Asset Class Composition Trends (by Investment)

Portfolio Performance Summary | Private Pay Composition Trends (by Revenue)

Portfolio Performance Summary | Top Tenant Concentration Trends (by Revenue)

Unconsolidated JV Portfolio Performance Metrics

Medical Office Building Portfolio Performance Metrics

Medical Office Building Lease Expirations and Mortgage Loan Receivable Principal Payments

Portfolio Performance Measures Definitions Annualized Cash Rent/NOI: The total cash rent due from our tenants is based on the trailing twelve-month period one month in arrears from the period presented. For our medical office building portfolio, NOI is equal to the actual year to date NOI for the period presented plus the forecasted NOI for the remainder of the calendar year. We use Annualized Cash Rent to calculate our EBITDARM, EBITDAR and EBITDAR - Capex coverages. Facility EBITDAR: Earnings before interest, taxes, depreciation, amortization and rent on an annualized basis. We believe EBITDAR is a good estimate of facility cash flows after payment of management fees. We use a standardized imputed management fee equal to 5% of the revenues our tenants or borrowers generate at each individual facility (Facility Revenues) which we believe represents typical management fees for our senior housing and long-term care portfolios. We receive periodic facility financial information from our tenants that we utilize to calculate EBITDAR. EBITDAR figures are based on the trailing twelve-month period one month in arrears from the period presented. All facility financial information was derived solely from information provided by our tenants and borrowers and we have not verified such information. We use EBITDAR to calculate the EBITDAR (cash flow) coverage for our portfolio. Facility EBITDAR Coverage: Annualized EBITDAR divided by Annualized Cash Rent. This ratio is a measure of a facility's ability to cover its cash rent obligations. EBITDAR Coverage of 1.0X would indicate the EBITDAR is just sufficient to pay the cash rent. The higher the coverage, the better able a facility is to meet its rent obligations. This is the mid-range coverage calculation we utilize. Facility EBITDARM: Earnings before interest, taxes, depreciation, amortization, rent and management fees based on the trailing twelve-month period one month in arrears from the period presented. We believe EBITDARM is a good estimate of facility cash flows before payment of management fees. We use a standardized imputed management fee equal to 5% of the revenues our tenants or borrowers generate at each individual facility (Facility Revenues) which we believe represents typical management fees for our senior housing and long-term care portfolios. We receive periodic facility financial information from our tenants that we utilize to calculate EBITDARM. All facility financial information was derived solely from information provided by our tenants and borrowers and we have not verified such information. We use EBITDARM to calculate the EBITDARM (cash flow before management fee) coverage for our portfolio. Facility EBITDARM Coverage: Annualized EBITDARM divided by Annualized Cash Rent. This ratio is a measure of a facility's ability to cover its cash rent obligations assuming it doesn't have to pay its management fee. EBITDARM Coverage of 1.0X would indicate the EBITDARM is just sufficient to pay the cash rent. The higher the coverage, the better able a facility is to meet its rent obligations. This is the least restrictive coverage measure we utilize. Facility EBITDAR - Capex: Earnings before interest, taxes, depreciation, amortization and rent less minimum capital expenditures (capex) based on the trailing twelve-month period one month in arrears from the period presented. We believe EBITDAR is a good estimate of facility cash flows after a reserve for minimum capital expenditures required to maintain a facility. We use a standardized imputed capital expenditure schedule in our calculations based on the type, size and age of each facility which we believe represents typical minimum capital expenditures for our senior housing and long-term care portfolios. We receive periodic facility financial information from our tenants that we utilize to calculate EBITDAR - Capex. All facility financial information was derived solely from information provided by our tenants and borrowers and we have not verified such information. We use EBITDAR - Capex to calculate the EBITDAR - Capex (cash flow after reserves for minimum capex requirements) coverage for our portfolio. Facility EBITDAR - Capex Coverage: Annualized EBITDAR - Capex divided by Annualized Cash Rent. This ratio is a measure of a facility's ability to cover its cash rent obligations after it makes the minimum capital expenditures required to maintain the facility. EBITDAR - - Capex Coverage of 1.0X would indicate the EBITDAR - Capex is just sufficient to pay the cash rent. The higher the coverage, the better able a facility is to meet its rent obligations. This is the most restrictive coverage measure we utilize. Facility Revenues: Except for medical office buildings, the revenues generated by each individual facility are based on the trailing twelve-month period one month in

Portfolio Performance Measures Definitions (2) arrears from the period presented. We receive periodic facility financial information from our tenants that we utilize to calculate Facility Revenues. All facility financial information was derived solely from information provided by our tenants and borrowers and we have not verified such information. Annualized Revenue: For medical office buildings, the revenue is equal to the actual year to date revenue for the period presented plus the forecasted revenue for the remainder of the calendar year. Gross Investment: We define Gross Investment as our total investment in a property which includes land, building, improvements, equipment as well as any other identifiable assets included in the caption Other Assets on our balance sheets. Items classified in Other Assets generally pertain to our medical office buildings and may include such things as tenant improvements, leasing commissions, above/(below) market lease value, lease in place value and other items. Monthly Revenue per Occupied Bed/Unit: For our senior housing and long-term care portfolio, monthly revenue per occupied bed or unit is derived by determining the revenue generated by each individual facility divided by the total number of actual resident days, each of which is based on the trailing twelve-month period one month in arrears from the period presented, with the resulting quotient multiplied by 30.41667. All facility performance data were derived solely from information provided by our tenants and borrowers and we have not verified such information. Occupancy: For our senior housing and long-term care portfolio, the occupancy reported is one month in arrears from the period presented and represents a facility's actual resident days (total number of beds or units occupied multiplied by the number of days in the period) divided by the total resident capacity (total number of beds or units in service for the period multiplied by the number of days in the period). For medical office buildings, facility occupancy reported is as of the period presented and represents the leased square feet divided by the total rentable square feet. All facility performance data were derived solely from information provided by our tenants, borrowers, and property managers and we have not verified such information. NOI: Net operating income ("NOI") is a non-GAAP supplemental financial measure used to evaluate the operating performance of our facilities. We define NOI for our triple-net leases segment as rent revenues. For our medical office building segment, we define NOI as revenues minus medical office building operating expenses. In some cases, revenue for medical office buildings includes expense reimbursements for common area maintenance charges. NOI excludes interest expense, non-operating expenses, amortization of deferred financing costs, depreciation and amortization expense, and discontinued operations. We present NOI as it effectively presents our portfolio on a "net" rent basis and provides relevant and useful information as it measures the operating performance at the facility level on an unleveraged basis. We use NOI to make decisions about resource allocations and to assess the property level performance of our properties. Furthermore, we believe that NOI provides investors relevant and useful information because it measures the operating performance of our real estate at the property level on an unleveraged basis. We believe that net income is the GAAP measure that is most directly comparable to NOI. However, NOI should not be considered as an alternative to net income as the primary indicator of operating performance as it excludes the items described above. Additionally, NOI as presented above may not be comparable to other REITs or companies as their definitions of NOI may differ from ours. Q-Mix: For our long-term care portfolio, Q-Mix (abbreviation for Quality-Mix) refers to the combination of a Tenant's private and medicare revenues as a percentage of total revenues. As private and medicare rates are generally higher at long-term care facilities, Tenants can oftentimes improve margins by selectively targeting medicare and private-pay residents. As such, an increase in the Q-Mix generally results in a corresponding increase in a Tenant's total revenues. Rentable Square Feet: For our medical office building portfolio, rentable square feet represents the area measured to the inside finished surface of the dominant portion of the permanent outer building walls, excluding any major vertical penetrations of the floor. An add-on or load factor is used to charge the tenant for a percentage of the common areas, so that the total rentable square footage for the building is equal to sum of each floor's rentable area.

Portfolio Performance Measures Definitions (3) Same Property (Performance): Results shown under the Same Property caption present the financial or other performance measures for only those facilities that were in our portfolio for more than twelve month at the end of all periods presented.