Form 8-K

Supplemental information

September 30, 2007

Supplemental Information (Unaudited )

Exhibit 99.2

September 30, 2007—

Disclaimer

Certain information contained in this document 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,

the

use

forward-looking

terminology

such

“may,”

“will,”

“anticipates,”

“expects,”

“believes,”

“intends,”

“should”

or comparable

terms or the negative thereof.

All forward-looking statements included in this document are based

on information available to us on the date hereof. These statements

speak only as of the date hereof, and we assume no obligation to

update such forward-looking statements for any reason or to update

the reasons actual results could differ materially from those

anticipated in these forward-looking statements, even if new

information becomes available in the future. These statements

involve risks and uncertainties that could cause actual results to differ

materially from those described in the statements.

These risks and uncertainties 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 by

our tenants; our reliance on two operators for a significant percentage

of our revenues; occupancy levels at certain facilities; our level of

indebtedness; changes in the ratings of our debt securities; access to

the capital markets and the cost 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; our ability to meet

acquisition goals; the ability of our operators to repay deferred rent or

loans in future periods; the ability of our operators to obtain and

maintain adequate liability and other insurance; our ability to attract

new operators 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 medium-term 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 real estate investment trusts and our status as

a real estate investment trust; and the risk factors described in our

most recent annual report on Form 10-K and any subsequent

quarterly reports on Form 10-Q filed with the SEC.

September 30, 2007—

Contents

Portfolio Performance Measures Definitions

Medical Office Building Portfolio Performance Metrics

Unconsolidated JV Portfolio Performance Metrics

Geographic Benchmarks

Tenant Benchmarks

Consolidated Portfolio Performance Metrics—Same Store and Total

Portfolio Summary

Financial Measures Definitions

PORTFOLIO OVERVIEW_____________________________________________________________________

3RD

Quarter 2007 Investments

INVESTMENTS & DISPOSITIONS________________________________________________________________

Lease Expirations and Mortgage Loans Receivable Principal Payments

Expected Dispositions

Year to Date 3rd

Quarter 2007 Investments

Unconsolidated Joint Venture Financial Statements

Interest and Fixed Charge Coverage

Debt Maturities and Debt Composition

Capitalization

Consolidated Balance Sheets

Reconciliation of Net Income to Funds Available for Distribution (FAD)

Reconciliation of Net Income to Funds From Operations (FFO)

Consolidated Statement of Operations

FINANCIAL RESULTS_________________________________________________________________________

COMPANY FACT SHEET______________________________________________________________________

September 30, 2007—

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

one

the

few

healthcare

REITs

with

investment

grade

ratings

Moody’s, Standard & Poors

and Fitch.

Nationwide Health Properties, Inc. (NHP), incorporated October 1985, is a

publicly

traded

real

estate

investment

trust

(REIT)

that

invests

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

leases

multiple

tenants

the

case

medical

office buildings.

REIT

specializing

healthcare

real

estate,

NHP

provides

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.

$3.5 billion in healthcare real estate

536 properties in 43 states

274

Assisted and Independent Living

193

Skilled Nursing

28 Medical Office Buildings

Other

21 Unconsolidated JV Facilities

Over 80 multi-facility operators

Market Facts

Enterprise Value

$4.5 billion

Closing Price

$30.13

Market Capitalization

$3.0 billion

Dividend & Yield

$1.64 (5.4%)

52 week range

$22.63 –

$35.01

Shares Outstanding

92.1 million

Company Profile

Investor Highlights

Our Portfolio

(6%)

(9%)

(6%)

(9%)

(14%)

Credit Ratings

S&P BBB-

Moody’s Baa3

Fitch BBB-

as of September 30, 2007

September 30, 2007—

FINANCIAL RESULTS

September 30, 2007—

Consolidated Statement of Operations

In thousands, except per share data

2007

2006

2007

2006

Revenues:

Triple net lease rent

$ 76,904

$ 61,242

$ 218,757

$ 163,333

Medical office building operating rent

3,560

2,479

9,133

6,902

80,464

63,721

227,890

170,235

Interest and other income

6,566

4,060

15,845

9,866

87,030

67,781

243,735

180,101

Expenses:

Interest and amortization of deferred financing costs

25,387

24,890

75,484

65,492

Depreciation and amortization

25,880

19,886

71,337

51,174

General and administrative

6,087

4,165

17,501

11,819

Medical office building operating expenses

1,897

1,513

5,103

3,895

59,251

50,454

169,425

132,380

Income before minority interest and unconsolidated joint venture

27,779

17,327

74,310

47,721

Minority interest in net loss of consolidated joint ventures

160

139

287

Income from unconsolidated joint venture

547

---

1,242

---

Gain on sale of facilities to joint venture

29,350

---

29,949

---

Income from continuing operations

57,752

17,487

105,640

48,008

Discontinued operations

Gain on sale of facilities, net

8,682

61,285

17,508

Income (loss) from discontinued operations

(49)

5,550

4,297

17,305

(10)

14,232

65,582

34,813

Net income

57,742

31,719

171,222

82,821

Preferred stock dividends

(3,791)

(11,372)

Income available to common stockholders

53,951

27,928

159,850

71,449

Basic earnings per share (EPS):

Income from continuing operations excluding gains

$ 0.27

$ 0.17

$ 0.72

$ 0.49

Gains in income from continuing operations

0.32

0.33

Income from continuing operations

0.59

0.17

1.05

0.49

Discontinued operations

0.17

0.73

0.46

Income available to common stockholders

$ 0.59

$ 0.34

$ 1.78

$ 0.95

Diluted EPS:

Income from continuing operations excluding gains

$ 0.28

$ 0.17

$ 0.71

$ 0.49

Gains in income from continuing operations

0.30

0.33

Income from continuing operations

0.58

0.17

1.04

0.49

Discontinued operations

0.17

0.73

0.46

Income

$ 0.58

$ 0.34

$ 1.77

$ 0.95

Weighted average shares outstanding for EPS:

Basic

91,089

81,679

89,690

74,959

Diluted

96,255

82,003

90,158

75,288

Series B Convertible Preferred Dividends in Diluted EPS

$ 2,062

$ -

Three Months Ended September 30,

Nine Months Ended September 30,

September 30, 2007—

Reconciliation of Net Income to Funds From Operations (FFO)

See Financial Measures Definitions

2007

2006

2007

2006

Net income to FFO

Net income

57,742

31,719

171,222

82,821

Preferred stock dividends

(3,791)

(11,372)

Real estate related depreciation and amortization

25,799

21,319

72,375

55,869

Depreciation in income from unconsolidated joint venture

503

---

1,034

---

Gains on sale of facilities

(29,389)

(8,682)

(91,234)

(17,508)

FFO available to common stockholders

50,864

40,565

142,025

109,810

Series B preferred dividend add-back

2,062

6,187

Diluted FFO

52,926

42,627

148,212

115,997

Impairments

---

Non-recurring settlement of delinquent tenant obligations

(1,965)

---

(1,965)

---

Normalized diluted FFO

50,961

42,627

146,247

116,080

Weighted average shares outstanding for FFO

Diluted weighted average shares outstanding

96,255

82,003

90,158

75,288

Series B preferred stock add-back

4,689

4,704

4,686

Fully diluted weighted average shares outstanding

96,255

86,692

94,862

79,974

Diluted per share amounts:

FFO

0.55

0.49

1.56

1.45

Normalized FFO

0.53

0.49

1.54

1.45

Dividends declared per common share

0.41

0.39

1.23

1.15

Normalized FFO payout ratio

77%

80%

79%

Normalized FFO Coverage

1.29

1.26

1.25

1.26

Reconciliation of 2007 Net Income Guidance to 2007 Diluted FFO Guidance

Low

High

Net income

2.36

2.38

Less: preferred stock dividends

(0.06)

Real estate related depreciation and amortization

1.08

Less: gains on sale

(1.19)

Dilution from convertible preferred stock

(0.12)

Diluted FFO guidance

2.07

2.09

Non-recurring settlement of delinquent tenant obligations

(0.02)

Normalized diluted FFO guidance

$ 2.05

$ 2.07

In thousands, except per share data

Three Months Ended September 30,

Nine Months Ended September 30,

September 30, 2007—

Reconciliation of Net Income to Funds Available for Distribution

(FAD)

See Financial Measures Definitions

2007

2006

2007

2006

Net income to FAD:

Net income

57,742

31,719

171,222

82,821

Preferred stock dividends

(3,791)

(11,372)

Real estate related depreciation and amortization

25,799

21,319

72,375

55,869

Gains on sale of facilities

(29,389)

(8,682)

(91,234)

(17,508)

Straight-lined rent

(226)

(386)

(1,924)

(391)

Amortization of above and below market lease intangibles

(49)

217

Non-cash stock-based compensation expense

1,248

659

3,486

1,853

Deferred finance cost amortization

683

750

2,066

1,947

Lease commissions and tenant and capital improvements

(565)

(542)

(1,498)

(1,269)

Impairments

---

NHP's share of FAD reconciling items from unconsolidated joint venture

Real estate related depreciation and amortization

503

---

1,034

---

Deferred finance cost amortization

---

FAD available to common stockholders

51,961

41,121

144,203

112,250

Series B preferred dividend add-back

2,062

6,187

Diluted FAD

54,023

43,183

150,390

118,437

Non-recurring settlement of delinquent tenant obligations

(1,965)

---

(1,965)

---

Normalized diluted FAD

52,058

43,183

148,425

118,437

Weighted average shares outstanding for FAD

Weighted average shares outstanding

96,255

82,003

90,158

75,288

Series B preferred stock add-back

4,689

4,704

4,686

Fully diluted weighted average shares outstanding

96,255

86,692

94,862

79,974

Diluted per share amounts:

FAD

0.56

0.50

1.59

1.48

Normalized FAD

0.54

0.50

1.56

1.48

Dividends declared per common share

0.41

0.39

1.23

1.15

Normalized FAD payout ratio

76%

78%

79%

78%

Normalized FAD Coverage

1.32

1.28

1.27

1.29

In thousands, except per share data

Three Months Ended September 30,

Nine Months Ended September 30,

September 30, 2007—

Consolidated Balance Sheets

September 30,

December 31,

2007

2006

Assets

Real estate related investments:

Land

296,011

267,303

Buildings and improvements

2,822,405

2,581,484

3,118,416

2,848,787

Less accumulated depreciation

(416,425)

(372,201)

Net real estate

2,701,991

2,476,586

Mortgage loans receivable, net

130,558

106,929

Investment in unconsolidated joint venture

34,278

---

Net real estate related investments

2,866,827

2,583,515

Cash and cash equivalents

14,953

14,695

Receivables, net

4,092

7,787

Assets held for sale

---

9,484

Other assets

103,778

89,333

Total assets

2,989,650

2,704,814

Liabilities and Stockholders' Equity

Credit facility

216,000

139,000

Senior notes due 2008 - 2038

866,500

887,500

Notes and bonds payable

329,636

355,411

Accounts payable and accrued liabilities

99,620

77,829

Total liabilities

1,511,756

1,459,740

Minority interest

2,201

1,265

Stockholders' equity:

Series A preferred stock

90,049

Series B convertible preferred stock

106,445

106,450

Common stock

9,209

8,624

Capital in excess of par value

1,481,510

1,298,703

Cumulative net income

1,235,515

1,064,293

Accumulated other comprehensive income

1,183

1,231

Cumulative dividends

(1,448,218)

(1,325,541)

Total stockholders' equity

1,475,693

1,243,809

Total liabilities and stockholders' equity

2,989,650

2,704,814

In thousands

September 30, 2007—

Capitalization

Actual

Pro Forma

Debt

Credit facility

216,000

$ 10,000

$ 139,000

Senior notes

866,500

1,166,500

887,500

Notes and bonds

329,636

355,411

Consolidated debt

1,412,136

1,506,136

1,381,911

NHP's share of unconsolidated debt

47,743

Total debt

1,459,879

1,553,879

1,381,911

Book Capitalization

Consolidated debt

1,412,136

1,506,136

1,381,911

Minority interest

2,201

1,265

Total stockholders' equity

1,475,693

1,385,644

1,243,809

Consolidated book capitalization

2,890,030

2,893,981

2,626,985

Accumulated depreciation and amortization

416,425

372,201

Consolidated undepreciated book capitalization

3,306,455

3,310,406

2,999,186

NHP's share of unconsolidated debt

47,743

NHP's share of unconsolidated depreciation and amortization

1,034

Total undepreciated book capitalization

3,355,232

3,359,183

2,999,186

Market capitalization

Price

Common stock

92,087

30.13

2,774,570

86,238

30.22

2,606,127

Series A preferred stock

900

100.00

90,049

900

100.00

90,049

Series B preferred stock

1,064

130.02

138,400

1,064

134.00

142,636

Consolidated market equity capitalization

3,003,019

2,912,970

2,838,812

Consolidated debt

1,412,136

1,506,136

1,381,911

Consolidated market capitalization

4,415,155

4,419,106

4,220,723

NHP's share of unconsolidated debt

47,743

Total market capitalization

4,462,898

4,466,849

4,220,723

Leverage Ratios

Consolidated debt to consolidated undepreciated book capitalization

42.7%

45.5%

46.1%

Total debt to total undepreciated book capitalization

43.5%

46.3%

46.1%

Consolidated debt to consolidated market capitalization

32.0%

34.1%

32.7%

Total debt to total market capitalization

32.7%

34.8%

32.7%

* The Pro Forma column shows the capitalization after giving effect to the Series A Preferred Stock repayment on October 1, 2007 and the $297 million of

expected net proceeds from the $300 million notes issuance on October 19, 2007.

September 30, 2007

December 31, 2006

In thousands, except stock prices and ratios

September 30, 2007—

Debt Maturities and Debt Composition

(1)

Principal

Rate

% of Total

Principal

Rate

% of Total

Fixed rate debt

Senior notes

866,500

6.7%

59.4%

$ 887,500

6.7%

64.2%

Notes and bonds

271,632

6.3%

18.6%

295,045

6.4%

21.4%

NHP's

share of unconsolidated debt

47,743

6.0%

3.3%

0.0%

Total fixed rate debt

1,185,875

6.6%

81.2%

1,182,545

6.6%

85.6%

Variable rate debt

Credit facility

216,000

6.0%

14.8%

139,000

6.2%

10.1%

Notes and bonds

58,004

5.9%

4.0%

60,366

5.4%

4.4%

Total variable rate debt

274,004

6.0%

18.8%

199,366

6.0%

14.4%

Total debt

1,459,879

6.5%

1,381,911

6.5%

(1) As of September 30, 2007 -

does not includes $300 million 6.25% notes maturing February 1,

2013 issued on October 19, 2007.

(2) Notes putable

July of 2008, 2013, 2018, 2023 and 2028 with a final maturity in 2038

(3) Notes putable

November of 2008, 2013, 2018 and 2023 with a final maturity in 2028

(4) Includes $55 million of notes putable

in October of 2009, 2012, 2017 and 2027 with a final maturity in 2037

September 30, 2007

December 31, 2006

Debt Composition

Principal

Rate

Principal

Rate

Principal

Rate

Principal

Rate

Principal

Rate

Principal

Rate

Q4 2007

Q1 2008

10,000

6.7%

10,000

6.7%

213

6.4%

10,213

6.7%

Q2 2008

288

6.4%

288

Q3 2008

40,000

(2)

6.6%

40,000

6.6%

40,000

6.6%

Q4 2008

33,500

(3)

7.6%

33,500

7.6%

33,500

7.6%

2009

87,000

(4)

7.8%

38,809

6.9%

125,809

7.5%

125,809

7.5%

2010

216,000

6.0%

74,114

6.0%

290,114

6.0%

290,114

6.0%

2011

350,000

6.5%

5,402

7.7%

355,402

6.5%

355,402

6.5%

2012

96,000

8.3%

38,157

7.5%

134,157

8.1%

14,000

6.0%

148,157

7.9%

2013

75,239

6.3%

75,239

6.3%

75,239

6.3%

2014

8,406

5.9%

8,406

5.9%

25,616

5.8%

34,022

5.8%

2015

250,000

6.0%

11,282

6.4%

261,282

6.0%

261,282

6.0%

2016

Thereafter

78,227

5.3%

78,227

5.3%

7,626

6.9%

85,853

5.4%

Total

216,000

6.0%

866,500

6.7%

329,636

6.2%

1,412,136

6.5%

47,743

6.0%

1,459,879

6.5%

Weighted average

maturity in years

3.2

4.5

8.7

5.3

8.7

5.4

Period

NHP's

Share of

Unconsolidated Debt

Consolidated Debt

In thousands

Debt Maturities

Total Debt

Senior Notes

Notes and Bonds

Credit Facility

September 30, 2007—

Interest and Fixed Charge Coverage

See Financial Measures Definitions

2007

2006

2007

2006

Reconciliation of Net Income to EBITDA:

Net income

57,742

31,719

171,222

82,821

Interest and amortization of deferred financing costs

25,387

24,890

75,484

65,492

Depreciation and amortization in continuing operations

25,880

19,886

71,337

51,174

Depreciation and amortization in discontinued operations

1,570

1,371

5,099

Consolidated EBITDA

109,043

78,065

319,414

204,586

NHP's share of EBITDA reconciling items from unconsolidated joint venture

Interest and amortization of deferred financing costs

508

---

849

---

Depreciation and amortization

503

---

1,034

---

Total EBITDA

110,054

78,065

321,297

204,586

Gains on sale of facilities

(29,389)

(8,682)

(91,234)

(17,508)

Adjusted Total EBITDA

80,665

69,383

230,063

187,078

Adjusted Consolidated EBITDA

79,654

69,383

228,180

187,078

Interest Expense

Consolidated interest expense

24,704

24,140

73,418

63,545

NHP's share of interest expense from unconsolidated joint venture

502

---

839

---

Total interest expense

25,206

24,140

74,257

63,545

Fixed Charges:

Consolidated Interest expense

24,704

24,140

73,418

63,545

Preferred stock dividends

3,791

11,372

Consolidated fixed charges

28,495

27,931

84,790

74,917

NHP's share of interest expense from unconsolidated joint venture

502

---

839

---

Total fixed charges

28,997

27,931

85,629

74,917

Consolidated Adjusted Interest Coverage Ratio

3.22

2.87

3.11

2.94

Total Adjusted Interest Coverage Ratio

3.20

2.87

3.10

2.94

Consolidated Adjusted Fixed Charge Coverage Ratio

2.80

2.48

2.69

2.50

Total Adjusted Fixed Charge Coverage Ratio

2.78

2.48

2.69

2.50

In thousands

Three Months Ended September 30,

Nine Months Ended September 30,

September 30, 2007—

Unconsolidated Joint Venture Financial Statements

In thousands

Three Months Ended

Nine Months Ended

September 30, 2007

Assets

Revenues

Land

16,682

Rent

4,857

9,857

Buildings and improvements

314,015

Interest and other income

Gross real estate

330,697

Total revenues

4,938

9,950

Accumulated depreciation

(4,137)

Net real estate

326,560

Expenses

Cash

3,343

Interest and amortization of deferred finance costs

2,031

3,397

Receivables

Depreciation and amortization

2,011

4,137

Other assets

1,180

General and administrative*

542

1,106

Total assets

331,085

Total expenses

4,584

8,640

Liabilities and equity

Net income

354

1,310

Notes payable

190,970

Accounts payable and accrued liabilities

3,014

NHP Income and FFO from Joint Venture

Total liabilities

193,984

Share of net income - 25%

328

Management fee*

458

914

Equity

137,101

Income from joint venture

547

1,242

Share of depreciation - 25%

503

1,034

Total liabilities and equity

331,085

FFO from joint venture

1,050

2,276

NHP's investment in joint venture

34,278

* NHP's management fee is included in the joint venture's general and administrative expense

Balance Sheet

Income Statement

September 30, 2007—

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

most

useful

liquidity

measure

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

makes

net

income

the

most

directly

comparable

GAAP

measure.

such,

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

cash

flows

from

operations

defined

GAAP

and

should not 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

evaluating

the

credit

ratings

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

considered

alternative to

the

ratio

earnings

fixed

charges

defined

Item

503(d)

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

evaluating

the

credit

ratings

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

considered as an alternative to either of those measures. Our calculation of

EBITDA may not be comparable to similar measures reported by other

companies.

September 30, 2007—

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

per

amounts

defined

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

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

supplemental

measure

of operating performance primarily in order to exclude historical cost based

depreciation and

amortization

and

its

effects

does

not

generally

reflect

the actual

change

value

real

estate

over

time.

FAD

was

developed

supplemental measure of operating performance primarily to exclude non-

cash

revenues

and

expenses

that

are

included

FFO.

FAD

defined

net

income

(computed

accordance

with

GAAP)

excluding

gains

and

losses

from

the

sale

real

estate

plus

real

estate

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

account

for

differences

caused

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

analysts

that

define

differently

than

do.

Funds from Operations (“FFO”):

While net

income

and

its

per

amounts

defined

generally

accepted accounting

principles

("GAAP")

are

the

most

appropriate

earnings

measures,

believe

that

FFO

and

its

per

amounts

are

important supplemental

measures

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

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

value

real

estate

over

time.

calculate

FFO in

accordance with the National Association of Real Estate Investment Trusts'

definition. FFO

defined

net

income

(computed

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

September 30, 2007—

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

account

for

differences

caused

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

measure

liquidity

net

income

the

primary

indicator

operating performance. Our calculations of FFO may not be comparable to

FFO

reported

other

REITs

that

not

define

the

term

accordance

with

the NAREIT definition or that interpret that definition differently than we do.

Gross Investment:

define

Gross

Investment

our

total

investment

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.

Normalized FAD:

Normalized FAD excludes from FAD any material one-time items reflected in

the financial statements for a given period.

Normalized 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

Normalized

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.

September 30, 2007—

INVESTMENTS & DISPOSITIONS

September 30, 2007—

3rd

Quarter 2007 Investments

Gross investment in thousands

Investment

Number of

Square

Average

Gross

Per Bed/Unit

Initial

Facilities

Beds/Units/

Feet

Age

Investment

Square Foot

Yield

Owned Facilities

Assisted and independent living facilities

385

36,000

94,000

8.6%

Skilled nursing facilities

1,019

58,000

57,000

8.7%

Total senior housing and long-term care

1,404

94,000

67,000

8.7%

Medical office buildings

313,549

56,000

179

7.1%

Total acquisitions

1,404

313,549

150,000

8.1%

Capital expenditures

7,000

Total investments

1,404

313,549

157,000

NHP Contributions to Unconsolidated Joint Venture

3rd Quarter 2007

Assisted and independent living facilities

702

102,000

145,000

7.6%

Year to Date 2007

Assisted and independent living facilities

1,187

143,000

120,000

7.8%

September 30, 2007—

Year to Date 3rd

Quarter 2007 Investments

Gross investment in thousands

Building

Investment

Number of

Square

Average

Gross

Per Bed/Unit

Initial

Facilities

Beds/Units

Feet

Age

Investment

Square Foot

Yield

Owned Facilities

Assisted and independent living facilities

2,276

199,000

87,000

8.4%

Skilled nursing facilities

2,459

133,000

54,000

8.6%

Continuing care retirement communities

527

39,000

74,000

8.8%

Total senior housing and long-term care

5,262

371,000

71,000

8.5%

Medical office buildings

454,665

79,000

174

7.2%

Total acquisitions

5,262

454,665

450,000

8.3%

Capital expenditures

17,000

Total investments

5,262

454,665

467,000

Loans

Assisted and independent living facilities

406

14,000

34,000

11.8%

Skilled nursing facilities

582

5,000

9,000

14.3%

Total senior housing and long-term care

988

19,000

12.5%

Other loans

28,000

10.0%

Total loans

47,000

11.0%

Total Consolidated

Assisted and independent living facilities

2,682

213,000

79,000

8.6%

Skilled nursing facilities

3,041

138,000

45,000

8.8%

Continuing care retirement communities

527

39,000

74,000

8.8%

Total senior housing and long-term care

6,250

390,000

62,000

8.7%

Other loans

28,000

10.0%

Medical office buildings

454,665

79,000

174

7.2%

Total acquisitions

6,250

454,665

497,000

8.5%

Capital expenditures

17,000

Total investments

6,250

454,665

514,000

Unconsolidated Joint Venture

Assisted and independent living facilities

212

37,000

175,000

8.0%

Skilled nursing facilities

1,028

151,000

147,000

8.3%

Total acquisitions

1,240

188,000

152,000

8.2%

Capital expenditures

Total investments

1,240

188,000

Total Investments

Assisted and independent living facilities

2,488

236,000

95,000

8.3%

Skilled nursing facilities

3,487

284,000

81,000

8.5%

Continuing care retirement communities

527

39,000

74,000

8.8%

Total senior housing and long-term care

6,502

559,000

86,000

8.4%

Medical office buildings

454,665

79,000

174

7.2%

Total real estate acquisitions

6,502

454,665

638,000

8.3%

Total loans

988

47,000

11.0%

Total acquisitions

107

7,490

454,665

685,000

8.5%

Capital expenditures

17,000

Total investments

107

7,490

454,665

702,000

September 30, 2007—

Expected Dispositions

Investment

2007

Full Year

Gross

Required at 8.5%

% Financing

Revenue

Proceeds

Gain

Assumed Yield

From Proceeds

First Nine Months of 2007

Purchase options

390,000

524,000

3,750,000

1,048,000

6,165,000

61%

Loan payoffs

142,000

603,000

4,750,000

7,094,000

67%

Lease restructuring

262,000

355,000

4,176,000

Strategic asset sales

5,469,000

10,937,000

128,000,000

60,132,000

128,671,000

99%

6,263,000

12,419,000

136,500,000

61,180,000

146,106,000

93%

Projected Fourth Quarter 2007

Certain

[A]

Purchase options

323,000

4,768,000

44,026,000

11,132,000

56,094,000

78%

High

[B]

Purchase options

17,000

475,000

5,000,000

851,000

5,588,000

89%

Loan payoffs*

394,000

3,531,000

30,784,000

9,961,000

41,541,000

74%

Asset recycling

209,000

1,512,000

16,537,000

4,827,000

17,788,000

93%

Lease restructuring

41,000

245,000

2,882,000

Total high

661,000

5,763,000

52,321,000

15,639,000

67,799,000

77%

Projected fourth quarter 2007

984,000

10,531,000

96,347,000

26,771,000

123,894,000

78%

Total Projected 2007

Total certain

6,586,000

17,187,000

180,526,000

72,312,000

202,200,000

89%

Total high

661,000

5,763,000

52,321,000

15,639,000

67,800,000

77%

7,247,000

22,950,000

232,847,000

87,951,000

270,000,000

86%

*The gain on the loan payoff represents the gain deferred at the

time we financed the sale of the facilities

[A] Projected dispositions categorized as “Certain”

represent items where NHP received written notice from the tenant or entered into agreements related to the facilities

[B] Projected dispositions categorized as “High”

represent items where NHP estimates a high probability of disposition based on an analysis of facility performance,

the tenant's financial condition and current financing options available

September 30, 2007—

Lease Expirations and Mortgage Loans Receivable Principal Payments

Dollars in thousands

Minimum

Number of

Minimum

Number of

Minimum

Number of

Minimum

Number of

Minimum

Percent

Number of

Year

Rent

Facilities

Rent

Facilities

Rent

Facilities

Rent

Facilities

Rent

of Total

Facilities

2007

274

498

772

2008

5,735

3,764

9,499

2009

273

4,091

4,364

2010

4,575

7,759

12,334

2011

8,579

2012

7,586

3,272

1,466

1,562

13,886

2013

13,010

3,200

363

16,573

2014

10,171

4,383

6,408

20,962

2015

1,756

3,622

3,075

8,453

2016

10,314

15,723

2,505

28,542

10%

Thereafter

120,000

195

33,449

4,103

2,514

160,066

56%

259

173,694

266

88,340

173

12,340

9,656

284,030

100%

458

Minimum

Number of

Minimum

Number of

Minimum

Percent

Number of

Principal

Percent

Number of

Year

Rent

Facilities

Rent

Facilities

Rent

of Total

Facilities

Payments

of Total

Facilities

2007

9,860

2008

29,837

20%

2009

38,745

26%

2010

987

2011

1,073

2012

5,510

21%

1,169

2013

9,777

2014

1,397

2015

3,651

2016

1,262

10,441

Thereafter

6,516

12,458

18,974

74%

42,717

28%

13,288

12,458

25,746

100%

149,654

100%

Assisted and Independent

Consolidated

Skilled Nursing

Total JV

Mortgage Loans Receivable

Consolidated Lease Expirations

Unconsolidated JV Lease Expirations

Assisted and Independent

Skilled Nursing

Continuing Care

Consolidated Triple-Net

Other Triple Net

September 30, 2007—

PORTFOLIO OVERVIEW

September 30, 2007—

Portfolio Summary

Gross investment, NOI and security deposits in thousands

Building

Investment

Percentage of

Percentage

Number of

Square

Gross

Per Bed/Unit/

Investment

of NOI by

Facilities

Beds/Units

Feet

Investment

Square Foot

by Category

NOI

Category

Owned Facilities

Assisted and independent living facilities

266

19,753

1,896,411

96,000

58%

140,465

59%

Skilled nursing facilities

173

19,316

905,924

47,000

28%

62,620

26%

Continuing care retirement communities

1,852

132,633

72,000

9,079

Specialty hospitals

303

68,031

225,000

5,927

Total senior housing and long-term care

456

41,224

3,002,999

73,000

92%

218,091

91%

Triple-net medical office buildings

209,970

39,590

189

666

Total triple-net

458

41,224

209,970

3,042,589

93%

218,757

91%

Multi-tenant medical office buildings

1,010,667

98,621

4,030

Total owned

484

41,224

1,220,637

3,141,210

96%

222,787

93%

Mortgage Loans Receivable

Assisted and independent living facilities

631

46,482

74,000

7,044

Skilled nursing facilities

2,805

64,505

23,000

4,197

Continuing care retirement communities

428

19,571

46,000

1,010

Total mortgage loans receivable

3,864

130,558

38,000

12,251

Assets Held for Sale

111

Other Income

3,594

Total Consolidated Portfolio

515

45,199

1,220,637

3,271,768

100%

238,632

100%

Consolidated Portfolio by Type

Assisted and independent living facilities

274

20,384

1,942,893

95,000

59%

147,509

63%

Skilled nursing facilities

193

22,121

970,429

44,000

30%

66,817

28%

Continuing care retirement communities

2,280

152,204

67,000

10,089

Specialty hospitals

303

68,031

225,000

5,927

Total senior housing and long-term care

485

45,088

3,133,557

73,000

96%

230,342

98%

Medical office buildings

1,220,637

138,211

132

4,696

Assets held for sale

111

Total consolidated

515

45,199

1,220,637

3,271,768

100%

235,038

100%

Other Income

3,594

Unconsolidated JV Ownership

Assisted and independent living facilities

1,399

180,035

129,000

54%

2,590

26%

Skilled nursing facilities

1,028

150,662

147,000

46%

7,267

74%

Total JV owned

2,427

330,697

135,000

100%

9,857

100%

Total Portfolio

536

47,626

1,220,637

3,602,465

248,489

* Multi-tenant medical office building gross investment includes $22,794

of amounts classified as other assets

Triple-Net Leased Security Information

Owned

Mortgages

Total

Owned

Mortgages

Total

Owned

Bank letters of credit

54,331

3,091

57,422

3,380

Master Leases

84%

100%

Cash deposits

20,410

1,302

21,712

Property Tax

67%

38%

66%

57%

74,741

4,393

79,134

3,461

Cap Ex

46%

14%

44%

95%

Consolidated

Percentage with Impounds

Security Deposits

Consolidated

September 30, 2007—

Portfolio Performance Summary

Gross investment and annualized cash rent in thousands

Number of

Average

Gross

Annualized

Current

EBITDARM

Facilities

Age

Investment

Cash Rent/NOI

Yield

Occupancy

Coverage

Owned Facilities

Assisted and independent living facilities

266

1,896,411

186,781

9.8%

86.3%

1.32x

Skilled nursing facilities

173

905,924

88,645

9.8%

84.2%

1.97x

Continuing care retirement communities

132,633

13,170

9.9%

89.2%

1.75x

Specialty hospitals

68,031

7,699

11.3%

70.6%

2.41x

Total senior housing and long-term care

456

3,002,999

296,295

9.9%

85.4%

1.57x

Triple-net medical office buildings

39,590

2,960

7.5%

74.0%

Total triple-net

458

3,042,589

299,255

9.8%

Multi-tenant medical office buildings

98,621

7,246

7.3%

86.3%

Total owned

484

3,141,210

306,501

9.8%

Mortgage Loans Receivable

Assisted and independent living facilities

46,482

5,085

10.9%

92.5%

1.63x

Skilled nursing facilities

64,505

8,115

12.6%

79.8%

2.15x

Continuing care retirement communities

19,571

2,013

10.3%

71.2%

0.61x

Total mortgage loans receivable

130,558

15,213

11.7%

81.1%

1.78x

Assets Held for Sale

Total NHP Consolidated Portfolio

515

3,271,768

321,714

9.8%

82.9%

1.58x

Consolidated Portfolio by Type

Assisted and independent living facilities

274

1,942,894

191,866

9.9%

86.4%

1.33x

Skilled nursing facilities

193

970,429

96,760

10.0%

83.7%

1.99x

Continuing care retirement communities

152,204

15,182

10.0%

85.8%

1.60x

Specialty hospitals

68,031

7,699

11.3%

70.6%

2.41x

Total senior housing and long-term care

485

3,133,558

311,508

9.9%

85.2%

1.58x

Medical Office Buildings

138,211

10,206

7.4%

84.2%

Assets held for sale

Total consolidated

515

3,271,768

321,714

9.8%

Unconsolidated JV Ownership

Assisted and independent living facilities

180,035

13,995

7.8%

89.5%

1.55x

Skilled nursing facilities

150,662

12,458

8.3%

91.5%

1.72x

Total JV owned

330,697

26,453

8.0%

90.6%

1.66x

Total Portfolio

536

3,602,465

348,167

9.7%

83.2%

1.58x

* Medical office building cost per square foot and gross investment reflects total purchase price including amounts classified as other assets

September 30, 2007—

Consolidated Portfolio Performance by Asset Type (excluding MOBs)

SEP 2007

JUN 2007

Q/Q Chg

SEP 2006

Y/Y Chg

SEP 2007

JUN 2007 [A]

SEP 2006

Assisted and independent living

Annualized Facility Revenue ($000s)

540,892

539,907

0.2%

517,429

4.5%

693,795

694,559

600,253

Occupancy

88.0%

87.7%

0.3%

88.7%

-0.7%

86.4%

86.3%

88.7%

Monthly revenue per occupied bed/unit

3,097

3,105

-0.3%

2,941

5.3%

3,047

2,990

2,900

Annualized Facility EBITDARM ($000s)

205,094

207,257

-1.0%

187,891

9.2%

257,766

261,169

216,357

Facility EBITDARM %

37.9%

38.4%

-0.5%

36.3%

1.6%

37.2%

37.6%

36.0%

NHP Annualized Cash Rent ($000s)

148,806

146,126

1.8%

142,881

4.1%

191,866

189,823

161,524

Facility EBITDARM coverage

1.38x

1.42x

-2.8%

1.32x

4.8%

1.34x

1.38x

1.34x

Facility EBITDAR coverage

1.20x

1.23x

-3.0%

1.13x

5.5%

1.16x

1.19x

1.15x

Facility EBITDAR - Capex coverage

1.14x

1.17x

-3.1%

1.07x

5.7%

1.10x

1.13x

1.10x

Skilled nursing facilities

Annualized Facility Revenues ($000s)

1,079,723

1,070,680

0.8%

1,009,495

7.0%

1,207,614

1,367,988

1,258,259

Occupancy

83.4%

82.5%

0.8%

83.6%

-0.3%

83.7%

81.5%

81.6%

Monthly revenue per occupied bed/unit

5,778

5,786

-0.1%

5,347

8.1%

5,761

5,541

5,495

Q-Mix (Private + Medicare)

45.0%

44.9%

0.1%

40.8%

4.2%

45.5%

51.4%

45.6%

Annualized Facility EBITDARM ($000s)

173,239

168,835

2.6%

166,133

4.3%

192,728

221,205

212,989

16.0%

15.8%

0.3%

16.5%

-0.4%

16.0%

16.2%

16.9%

NHP Annualized Cash Rent ($000s)

87,023

87,014

0.0%

85,567

1.7%

96,760

106,542

102,353

Facility EBITDARM coverage

1.99x

1.94x

2.6%

1.94x

2.5%

1.99x

2.08x

Facility EBITDAR coverage

1.37x

1.33x

3.4%

1.35x

1.4%

1.37x

1.43x

1.47x

Facility EBITDAR - Capex coverage

1.28x

1.24x

3.7%

1.26x

1.6%

1.28x

1.35x

1.39x

[A] Coverages previously reported for the skilled nursing facilities excluded the Complete Care Services portfolio which sold on June 29, 2007

SAME PROPERTY (PERFORMANCE)

TOTAL

September 30, 2007—

Consolidated Portfolio Performance (excluding MOBs )

SEP 2007

JUN 2007

Q/Q Chg

SEP 2006

Y/Y Chg

SEP 2007

JUN 2007

SEP 2006

NHP Consolidated Portfolio

(excluding MOBs)

Annualized Facility Revenue ($000s)

1,779,008

1,767,167

0.7%

1,677,611

6.0%

2,089,876

2,249,038

2,009,200

Occupancy

85.3%

85.0%

0.3%

85.8%

-0.5%

85.1%

83.9%

82.3%

Monthly revenue per occupied bed/unit

4,656

4,645

0.2%

4,350

7.0%

4,502

4,437

4,396

Annualized Facility EBITDARM ($000s)

414,929

411,995

0.7%

388,876

6.7%

493,347

524,352

464,198

Facility EBITDARM %

23.3%

0.0%

23.2%

0.1%

23.6%

23.3%

23.1%

Total NHP Annualized Cash Rent ($000s)

255,291

252,217

1.2%

247,165

3.3%

311,500

318,830

282,591

NHP Rent (Payor

Mix)

Private

68.8%

67.9%

0.9%

67.0%

1.8%

71.3%

68.9%

66.1%

Medicare

11.3%

12.0%

-0.6%

11.9%

-0.6%

10.5%

11.5%

12.1%

Medicaid

19.7%

20.0%

-0.3%

21.0%

-1.3%

18.1%

19.4%

21.7%

Other

0.2%

0.0%

0.1%

0.2%

0.1%

Total NHP Annualized Cash Rent

100.0%

Facility EBITDARM coverage

1.63x

-0.5%

1.57x

3.3%

1.58x

1.64x

Facility EBITDAR coverage

1.28x

-0.5%

1.23x

3.5%

1.25x

1.29x

Facility EBITDAR -

Capex

coverage

1.21x

-0.4%

1.16x

3.7%

1.18x

1.23x

1.22x

Total Portfolio | Facility Payor

Mix

SEP 2007

JUN 2007

SEP 2006

SEP 2007

JUN 2007

SEP 2006

SEP 2007

JUN 2007

SEP 2006

Private

98.8%

99.0%

18.2%

16.7%

15.8%

49.3%

46.0%

43.6%

Medicare

0.3%

0.1%

27.3%

28.7%

28.0%

18.0%

19.6%

19.8%

Medicaid

0.8%

54.0%

55.9%

32.4%

34.1%

36.4%

Other

0.0%

0.5%

0.6%

0.4%

0.3%

0.2%

Total Tenant Revenue

100.00%

100.0%

Q-Mix (Private + Medicare)

99.2%

45.5%

45.4%

43.8%

67.3%

65.6%

63.4%

* Excludes

assets

held

for

sale,

medical

office

buildings

and

assets

ALF/ILF

SNF

Total

SAME PROPERTY (PERFORMANCE)

TOTAL

September 30, 2007—

Tenant Concentration

Gross investment and annualized cash rent in thousands

Number of

Beds/Units

Gross

Percent by

Annualized

Percent by

Average

Remaining

EBITDARM

Tenant Concentration

Facilities

Inservice

Investment

Cash Rent/NOI

Cash Rent

Age

Term

Coverage

Brookdale

Senior Living

[A]

7,967

464,195

14.2%

56,612

17.6%

15.9

1.51x

Hearthstone Senior Services

3,122

431,297

13.2%

35,774

11.1%

13.8

1.23x

Emeritus Corporation

[A]

2,152

252,368

7.7%

23,736

7.4%

11.1

1.43x

Wingate Healthcare

2,516

237,066

7.3%

20,473

6.4%

12.2

1.62x

Atria Senior Living

2,343

124,583

3.8%

20,090

6.2%

9.0

1.15x

Top 5

193

18,100

1,509,509

46.1%

156,685

48.7%

13.8

1.40x

Laureate Group

1,526

118,946

3.6%

10,660

3.3%

5.3

1.45x

Senior Services of America

1,092

106,775

3.3%

8,811

2.7%

13.8

1.39x

Carillon Assisted Living

928

105,847

3.2%

8,464

2.6%

14.3

1.30x

Beverly Enterprises

3,112

103,405

3.2%

14,150

4.4%

6.7

2.14x

Epoch Senior Living

859

81,067

2.5%

8,231

2.6%

8.3

2.00x

Top 10

262

25,617

2,025,548

61.9%

207,000

64.3%

12.6

1.47x

Magnolia Health Systems

606

76,568

2.3%

2,253

0.7%

17.5

1.38x

Nexion

Health Management

2,019

56,220

1.7%

7,389

2.3%

5.1

1.88x

Primrose Retirement Associates

429

55,016

1.7%

4,317

1.3%

14.3

1.20x

Health Systems

1,056

48,974

1.5%

4,895

1.5%

9.6

1.67x

Trans Healthcare

1,062

46,676

1.4%

5,432

1.7%

2.5

0.65x

Top 15

325

30,789

2,309,002

70.6%

231,287

71.9%

12.0

1.46x

Other -

Senior Housing and

Long-Term Care Tenants

162

13,492

824,555

25.2%

80,221

24.9%

10.0

1.92x

Medical Office Buildings

138,211

4.2%

10,206

3.2%

Total NHP Consolidated Portfolio

515

44,281

3,271,768

100.0%

321,714

100.0%

11.3

1.58x

* Performance metrics exclude assets held for sale and JV assets

[A] Public company tenant

September 30, 2007—

Geographic Performance Metrics

Gross investment and annualized cash rent in thousands

Number of

Medicaid as

Revenue

Number of

Beds/Units

Gross

Percent by

Annualized

Percent by

Percent of

Average

per occupied

Facilities

Inservice

Investment

Cash Rent

[A]

Age

bed/unit

Texas

15,194

479,163

15.3%

44,712

14.4%

3.6%

2,612

Massachusetts

4,083

310,259

9.9%

28,860

9.3%

4.3%

6,591

California

3,691

209,908

6.7%

28,519

9.2%

1.5%

5,061

Wisconsin

2,704

196,673

6.3%

17,926

5.8%

1.4%

3,261

Florida

3,631

186,091

5.9%

19,933

6.4%

1.9%

4,123

Top 5

191

29,303

1,382,094

44.1%

139,949

44.9%

12.6%

3,979

Tennessee

2,232

147,351

4.7%

11,917

3.8%

1.1%

4,108

North Carolina

1,225

119,460

3.8%

9,974

3.2%

0.6%

4,227

Ohio

2,059

117,740

3.8%

11,958

3.8%

1.1%

3,470

Washington

2,073

113,494

3.6%

11,985

3.9%

0.9%

6,115

Michigan

872

106,107

3.4%

9,369

3.0%

0.0%

4,319

Top 10

278

37,764

1,986,245

63.4%

195,153

62.7%

16.2%

3,931

New York

846

101,437

3.2%

9,640

3.1%

1.2%

5,117

Indiana

1,181

94,356

3.0%

4,363

1.4%

0.6%

2,465

Arizona

855

65,215

2.1%

7,829

2.5%

0.3%

4,078

Minnesota

896

63,935

2.0%

5,432

1.7%

0.9%

3,116

Pennsylvania

1,511

63,528

2.0%

6,063

2.0%

1.0%

5,438

Top 15

341

43,053

2,374,716

75.8%

228,481

73.4%

20.1%

4,113

Other States

146

1,228

758,842

24.2%

83,027

26.7%

12.3%

4,289

Total

487

44,281

3,133,558

100.0%

311,508

100.0%

32.4%

4,162

Medical Office Buildings

138,211

10,206

Total NHP Consolidated Portfolio

515

3,271,768

321,714

* Performance metrics exclude assets held for sale, medical office buildings and JV assets

[A]

Medicaid as a percent of cash rent represents an estimate of the portion of NHP's

total senior housing and long-term care portfolio total rental income derived from

the underlying Medicaid reimbursement of our tenants and borrowers (Medicaid income of our tenant divided by total income of our tenant multiplied by the rent or interest

paid to NHP)

September 30, 2007—

Unconsolidated JV Portfolio Performance Metrics

Assisted and

Skilled

Independent Living

Nursing

Portfolio

SEP 2007

Unconsolidated JV Portfolio

Annualized Facility Revenue ($000s)

26,948

[A]

75,426

102,374

Occupancy

89.5%

91.5%

90.6%

Monthly revenue per occupied bed/unit

2,694

6,501

4,738

Q-Mix (Private + Medicare)

97.0%

59.1%

69.0%

Annualized Facility EBITDARM ($000s)

9,705

21,388

31,093

Facility EBITDARM %

36.0%

28.4%

30.4%

Total JV Annualized Cash Rent ($000s)

6,249

12,458

18,707

JV Rent (Payor Mix)

Private

97.0%

34.9%

55.6%

Medicare

0.0%

24.1%

16.1%

Medicaid

3.0%

40.9%

28.3%

Other

0.0%

Total NHP Annualized Cash Rent

100.0%

Facility EBITDARM coverage

1.55x

1.72x

1.66x

Facility EBITDAR coverage

1.34x

1.41x

1.39x

Facility EBITDAR - Capex coverage

1.21x

1.39x

1.33x

[A] Given the timing of the NHP contributions to JV in September 2007, portfolio performance data excludes the six Brookdale

and two Koelsch facillities

Total

September 30, 2007—

Medical Office Building Portfolio Performance Metrics

Gross investment dollars in thousands

Gross

Number of

Gross

Investment

Percent

Average

Rentable

Facilities

Investment

per SQFT

On Campus

Age

SQFT

Current Year

Prior Year

Change

BROE I JV

55,208

57.1%

752,989

83.6%

81.1%

2.5%

BROE II JV

32,523

177

100.0%

184,212

92.8%

NHP Multi-Tenant

10,890

180

0.0%

60,483

100.0%

NHP Triple-Net

39,590

189

50.0%

209,970

74.0%

Total MOB Portfolio

138,211

113

60.7%

1,207,654

84.2%

80.7%

3.5%

Same Property MOB Portfolio

55,208

57.1%

752,989

83.6%

81.1%

2.5%

Current Year

Prior Year

% Change

Current Year

Prior Year

% Change

Current Year

Prior Year

Change

BROE I JV

10,689

9,743

9.7%

4,619

4,502

2.6%

43.2%

46.2%

-3.0%

BROE II JV

2,697

1,767

65.5%

NHP Multi-Tenant

1,640

860

52.4%

NHP Triple-Net

2,960

Total MOB Portfolio

17,985

9,743

84.6%

10,206

4,502

126.7%

48.2%

46.2%

2.0%

Same Property MOB Portfolio

10,689

9,743

9.7%

4,619

4,502

2.6%

43.2%

46.2%

-3.0%

Gross

Building

Number of

Gross

Percent by

Investment

Square

Percent by

MOBs by state

Facilities

Investment

per SQFT

Feet

Square Feet

Texas

28,190

20.4%

304,078

24.9%

Louisiana

36,416

26.4%

393,908

32.3%

Alabama

16,703

12.1%

273

61,219

5.0%

Ohio

13,337

9.7%

199

66,902

5.5%

South Carolina

14,625

10.6%

133

109,704

9.0%

Top 5

109,271

79.1%

117

935,811

76.7%

Florida

5,822

4.2%

156

37,413

3.1%

Georgia

10,237

7.4%

123,980

10.2%

Tennessee

8,481

6.1%

149

56,973

4.7%

Virginia

4,400

3.2%

66,460

5.4%

Medical Office Buildings

138,211

100.0%

113

1,220,637

100.0%

Annualized Revenue

Annualized Cash Rent/NOI

Operating Margin

Occupancy

September 30, 2007—

Portfolio Performance Measures Definitions

Annualized Cash Rent/NOI:

The most recent monthly total cash rent due from our tenants as of the end of

the current reporting period multiplied by twelve. For our multi-tenant medical

office building portfolio, NOI rather than cash rent is annualized. 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. All facility financial information was

derived solely from information provided by our tenants and borrowers and we

have

not

verified

such

information.

use

EBITDAR

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

facility

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 on an annualized basis. 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

Annualized

Cash

Rent.

This

ratio

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) calculated on an annualized basis.

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

utilize

calculate

EBITDAR

Capex.

All

facility

financial

information

was derived solely from information provided by our tenants and borrowers

and

have

not

verified

such

information.

use

EBITDAR -

Capex

calculate

the

EBITDAR

–

Capex

(cash

flow

after

reserves

for

minimum

capex

requirements) coverage for our portfolio.

Facility EBITDAR -

Capex

Coverage:

Annualized

EBITDAR

Capex

divided

Annualized

Cash

Rent.

This

ratio

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

1.0X

would

indicate

the

EBITDAR -

Capex

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:

The revenues generated by each individual facility on an annualized basis.

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.

September 30, 2007—

Portfolio Performance Measures Definitions (2)

Gross Investment:

define

Gross

Investment

our

total

investment

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 monthly revenue generated

by each individual facility divided by the total number of actual resident days

for a 30-day month. 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, occupancy 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

represents the leased square feet divided by the total rentable square feet. In

all cases (senior housing, long-term care and medical office buildings), the

reporting period represents the month prior to quarter end. All facility

performance data were derived solely from information provided by our

tenants and borrowers and we have not verified such information.

NOI:

We define net operating income (NOI) for our senior housing and long-term

care portfolio as rent revenues since our leases are triple-net. For our medical

office building portfolio we define NOI as revenues minus medical office

building operating expenses. In some cases, revenue for medical office

buildings include expense reimbursements to common area maintenance

(CAM) charges. Our senior housing and long-term care portfolio generates

“triple-net”

rent for us, which means we receive the rent and the tenant pays all

operating expenses, property taxes and other expenses of each facility as well

as required capital expenditures and maintenance costs. We present NOI as it

effectively

presents

our

entire

portfolio

“net”

rent

basis.

NOI

may

then

used to calculate effective yields and to evaluate facility performance.

Q-Mix:

For our long-term care portfolio, Q-Mix (abbreviation for Quality-Mix) refers to

the

combination

Tenant’s

private

and

medicare

revenues

percentage

total

revenues.

private

and

medicare

rates

are

generally

higher

long-term

care

facilities,

Tenants

can

oftentimes

improve

margins

selectively

targeting

medicare

and

private-pay

residents.

such,

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.

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.


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)


Exhibit Number		Description

99.1		Press release dated November 6, 2007.

99.2		Supplemental information package for the quarter ended September 30, 2007.


	NATIONWIDE HEALTH PROPERTIES, INC.

Date: November 6, 2007	By:	/s/ ABDO H. KHOURY
		Abdo H. Khoury Senior Vice President and Chief Financial & Portfolio Officer


CONTACT:		Abdo H. Khoury
		Chief Financial and Portfolio Officer
		(949) 718-4400


Item	2007		2006		Change
Revenues	$	87,030	$	67,781	$	19,249	28.4	%
Income from Continuing Operations	$	57,752	$	17,487	$	40,265	230.3	%
Net Income	$	57,742	$	31,719	$	26,023	82.0	%
Diluted Income from Continuing Operations Available to Common Stockholders Per Share	$	0.58	$	0.17	$	0.41	241.2	%
Diluted Income from Continuing Operations Excluding Gains on Sale Per Share	$	0.28	$	0.17	$	0.11	64.7	%
Diluted Income Available to Common Stockholders Per Share	$	0.58	$	0.34	$	0.24	70.6	%
Diluted FFO	$	52,926	$	42,627	$	10,299	24.2	%
Diluted FFO Per Share	$	0.55	$	0.49	$	0.06	12.2	%
Normalized Diluted FFO	$	50,961	$	42,627	$	8,334	19.6	%
Normalized Diluted FFO Per Share	$	0.53	$	0.49	$	0.04	8.2	%

Nine Months Ended September 30,
Revenues	$	243,735	$	180,101	$	63,634	35.3	%
Income from Continuing Operations	$	105,640	$	48,008	$	57,632	120.0	%
Net Income	$	171,222	$	82,821	$	88,401	106.7	%
Diluted Income from Continuing Operations Available to Common Stockholders Per Share	$	1.04	$	0.49	$	0.55	112.2	%
Diluted Income from Continuing Operations Excluding Gains on Sale Per Share	$	0.71	$	0.49	$	0.22	44.9	%
Diluted Income Available to Common Stockholders Per Share	$	1.77	$	0.95	$	0.82	86.3	%
Diluted FFO	$	148,212	$	115,997	$	32,215	27.8	%
Diluted FFO Per Share	$	1.56	$	1.45	$	0.11	7.6	%
Normalized Diluted FFO	$	146,247	$	116,080	$	30,167	26.0	%
Normalized Diluted FFO Per Share	$	1.54	$	1.45	$	0.09	6.2	%


Type	Amount *(millions)*		Unit Price *(thousands)*		Cap Rate		Initial Yield		CPI Ups		DARM Cover
Senior Housing	$	36	$	94	8.7	%	8.6	%	2.8	%	1.3	x
Long-Term Care	$	58	$	57	16.7	%	8.7	%	2.2	%	2.4	x
Medical Office	$	56	$	179/sf	7.1	%	7.1	%
Total	$	150
2007 CLOSED INVESTMENTS
Type	Amount *(millions)*		Unit Price *(thousands)*		Cap Rate		Initial Yield		CPI Ups		DARM Cover
Senior Housing	$	236	$	95	8.7	%	8.3	%	2.8	%	1.3	x
CCRC	$	39	$	74	11.1	%	8.8	%	2.5	%	1.6	x
Long-Term Care	$	284	$	81	11.5	%	8.5	%	2.2	%	1.9	x
Medical Office	$	79	$	174/sf	7.2	%	7.2	%
Subtotal	$	638
Loans	$	47					11.0	%
Total	$	685


	September 30, 2007			December 31, 2006
Assets
Real estate related investments:
Land	$	296,011		$	267,303
Buildings and improvements		2,822,405			2,581,484

		3,118,416			2,848,787
Less accumulated depreciation		(416,425	)		(372,201	)

Net real estate		2,701,991			2,476,586
Mortgage loans receivable, net		130,558			106,929
Investment in unconsolidated joint venture		34,278			—

Net real estate related investments		2,866,827			2,583,515
Cash and cash equivalents		14,953			14,695
Receivables, net		4,092			7,787
Assets held for sale		—			9,484
Other assets		103,778			89,333

Total assets	$	2,989,650		$	2,704,814

Liabilities and Stockholders’ Equity
Credit facility	$	216,000		$	139,000
Senior notes due 2008 - 2038		866,500			887,500
Notes and bonds payable		329,636			355,411
Accounts payable and accrued liabilities		99,620			77,829

Total liabilities		1,511,756			1,459,740
Minority interest		2,201			1,265
Stockholders’ equity:
Series A preferred stock		90,049			90,049
Series B convertible preferred stock		106,445			106,450
Common stock		9,209			8,624
Capital in excess of par value		1,481,510			1,298,703
Cumulative net income		1,235,515			1,064,293
Accumulated other comprehensive income		1,183			1,231
Cumulative dividends		(1,448,218	)		(1,325,541	)

Total stockholders’ equity		1,475,693			1,243,809

Total liabilities and stockholders’ equity	$	2,989,650		$	2,704,814


	Three Months Ended September 30,						Nine Months Ended September 30,
	2007			2006			2007			2006
Net income to FFO
Net income	$	57,742		$	31,719		$	171,222		$	82,821
Preferred stock dividends		(3,791	)		(3,791	)		(11,372	)		(11,372	)
Real estate related depreciation and amortization		25,799			21,319			72,375			55,869
Depreciation in income from unconsolidated joint venture		503			—			1,034			—
Gains on sale of facilities		(29,389	)		(8,682	)		(91,234	)		(17,508	)

FFO available to common stockholders		50,864			40,565			142,025			109,810
Series B preferred dividend add-back		2,062			2,062			6,187			6,187

Diluted FFO		52,926			42,627			148,212			115,997
Impairments		—			—			—			83
Non-recurring settlement of delinquent tenant obligations		(1,965	)		—			(1,965	)		—

Recurring diluted FFO	$	50,961		$	42,627		$	146,247		$	116,080

Weighted average shares outstanding for FFO
Diluted weighted average shares outstanding		96,255			82,003			90,158			75,288
Series B preferred stock add-back		—			4,689			4,704			4,686

Fully diluted weighted average shares outstanding		96,255			86,692			94,862			79,974

Diluted per share amounts:
FFO	$	0.55		$	0.49		$	1.56		$	1.45

Recurring FFO	$	0.53		$	0.49		$	1.54		$	1.45

Dividends declared per common share	$	0.41		$	0.39		$	1.23		$	1.15

Recurring FFO payout ratio		77	%		80	%		80	%		79	%

Recurring FFO Coverage		1.29			1.26			1.25			1.26


	Low			High
Net income	$	2.36		$	2.38
Less: preferred stock dividends		(0.06	)		(0.06	)
Real estate related depreciation and amortization		1.08			1.08
Less: gains on sale		(1.19	)		(1.19	)
Dilution from convertible preferred stock		(0.12	)		(0.12	)

Diluted FFO guidance		2.07			2.09
Non-recurring settlement of delinquent tenant obligations		(0.02	)		(0.02	)

Normalized diluted FFO guidance	$	2.05		$	2.07