Supplemental Information

February 25, 2008

Multi-Year MOB Transaction

EXHIBIT 99.4

1

February 25, 2008 | Multi-Year MOB Transaction Supplemental Information

Disclaimer

Certain information contained in this presentation 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, including statements regarding the proposed

transaction between NHP and PMB and the benefits of the proposed

transaction.  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 the PMB

transaction

include

(without

limitation)

the

following:

delay

or

failure

to

obtain

third

party

consents;

the

exclusion

of

certain

properties

(which

may include properties described herein) from the transaction;

uncertainty

as

to

whether

the

transaction

will

be

completed;

the

failure

to

achieve

the

perceived

advantages

from

the

transaction;

larger

than

expected or unexpected costs associated with the transaction;

unexpected

liabilities

resulting

from

the

transaction;

potential

litigation

associated with the transaction; and the retention of key personnel

after the transaction. 

Other

risks

and

uncertainties

associated

with

our

business,

many

of

which will apply to the assets acquired in the PMB transaction,

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

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 NHP 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

Ground lease summary

Proforma

MOB

portfolio

impact

on

geography

by

investment,

NOI

and

square

footage

15

NHP MOB PORTFOLIO OVERVIEW (PROFORMA)______________________________________

Proforma

impact on geography by investment and NOI

Geographic location

MOB pricing by region

Development pipeline valuation

Proforma

impact on tenant concentration by investment and NOI

Lease expiration schedule

29

MOB MARKET OVERVIEW_________________________________________________________

MOB market size and investment attributes

Recent MOB market transactions

3

EXECUTIVE SUMMARY____________________________________________________________

Proforma

impact on asset type by investment and NOI

Tenant improvements and leasing commissions

Portfolio by property size, age and vacancy level

Net Operating Income (NOI) by state

Hospital systems credit ratings

Hospital systems

Portfolio cap rate adjustments

27

DEVELOPMENT PIPELINE VALUATION (ESTIMATE)___________________________________

PMB transaction satisfies NHP strategic goals

Proforma

impact on revenue from private pay sources

19

NHP COMBINED PORTFOLIO OVERVIEW (PROFORMA)________________________________

6

ACQUISITION PORTFOLIO  OVERVIEW______________________________________________

February 25, 2008 | Multi-Year MOB Transaction Supplemental Information

Executive summary

With this multi-year transaction, NHP has the ability to acquire a

sizeable portfolio of high quality MOBs, control a development

pipeline at a discount to fair market value, and take a 50%

ownership stake in a full-service property management

company.

The cap rate for the $915 million acquisition portfolio is 6.1%.

Individual MOB cap rates range from 5.7% to 7.1%. The cap

rates were based on location, strength of hospital, age of

building, occupancy and size of the portfolio.

The

multi-year

transaction

will

improve

NHP’s

asset,

tenant,

and

geographic diversification:

Transaction overview

Substantial

increase

in

NHP’s

overall

portfolio

size

Creates

asset

and

tenant

diversification

within

NHP’s

portfolio,

while developing a full-service MOB platform

Newly acquired assets consist of attractive Class A, high

occupancy assets

Most MOBs

are located on campus, creating relationships with

significant investment grade hospital systems

MOBs

produce very stable, recession-resistant cash flows

Ability, but not the obligation, to further expand into MOB space

though pipeline agreement

Multi-year

transaction

improves

NHP’s

risk

profile

ALF/ILF

SNF

MOB

Top 5 tenants

California MOBs

56%

29%

8%

46%

0%

47%

26%

21%

38%

51%

Before

After

56%

27%

11%

44%

0%

43%

22%

30%

34%

54%

Before

After

Net Operating Income

Gross Investment

Acquisition

Year

Number of

Buildings

Gross

Investment

Rentable

SQFT

Price per

SQFT

2007

7

$120

      366,483

$327

2008

16

$485

   1,282,777

$378

[A]

2009

3

$180

      287,742

$626

[A]

2010

2

$130

      247,625

$525

[A]

TOTAL

28

$915

   2,184,627

$419

State

Number of

Buildings

Gross

Investment

Rentable

SQFT

Price per

SQFT

CA

15

$640

   1,319,109

$485

WA

7

$120

      366,483

$327

NV

3

$70

      237,556

$295

OR

1

$30

      104,856

$286

HI

1

$30

        92,650

$324

AZ

1

$25

        63,973

$391

TOTAL

28

$915

   2,184,627

$419

Number of

Buildings

Rentable

SQFT

Credit

Rating

Catholic Healthcare West

6

399,522

A2/A/A+

Southwest Washington

7

366,483

A2/A/A+

St. Joseph Health System

2

262,702

Aa3/AA-

Providence Health System

3

241,556

Aa2/AA

Huntington Hospital

1

183,652

A+

Pomerado Hospital

1

172,000

A3

Other

8

558,712

Various

TOTAL

28

   2,184,627

$ in millions

Hospital System

[A] Price per square foot includes costs for structured parking

3

4

February 25, 2008 | Multi-Year MOB Transaction Supplemental Information

Executive summary (2)

Pacific Medical Buildings overview

San

Diego-based

firm

specializing

exclusively

in

developing

and operating MOBs, outpatient facilities and parking structures

for hospitals and medical groups, primarily in the Western

United States

The

largest

&

most

highly

regarded

MOB

developer

and

operator on the West Coast and one of the largest and most

highly regarded in the Nation.

Began

in

1971

as

the

Western

Regional

Office

of

American

Buildings, a Milwaukee-based developer of MOBs, that evolved

into PMB in 1988 through a management-led buyout

PMB pioneered the developer-owned building model. PMB

typically ground leases the required land from hospitals and

holds the buildings for long-term investment

PMB Real Estate Services (PMBRES) is a full-service property

management firm, providing asset management, leasing

services, and construction management for the PMB portfolio

Developed

over

2

million

square

feet

of

medical

office

buildings

NHP’s

MOB diversification timeline

1/24/2006: NHP announces $50 million medical office building

joint venture with The Broe

Companies, acquiring a six-state, 21

building portfolio

8/2006

–

12/2006:

20+

targets

contacted,

meetings

with

interested parties

6/2007: Pacific Medical selects NHP for “pole position”,

meetings to finalize term sheet

10/25/2007: Entered into non-binding term sheet and exclusivity

agreement with Pacific Medical Buildings

11/1/2007: Closed transaction of a seven-building, 365,000

square foot MOB portfolio in the state of Washington for $120

million. PMB selected by hospital system for future development

projects and PMB subsidiary, PMB Real Estate Services,

selected as property manager

2/25/2008: Definitive agreement signed with Pacific Medical

Buildings, providing NHP an MOB platform

Confirmatory due diligence in process, moving to close first

tranche of the transaction in April 2008

February 25, 2008 | Multi-Year MOB Transaction Supplemental Information

Executive summary (3)

The acquisition is being structured so that a significant portion

of

the

consideration

for

the

MOBs

is

expected

to

be

paid

in

the form of interests in a newly formed limited partnership in

which NHP will be the general partner and majority owner.

After a one year holding period, units of limited partnership

interest in the partnership will be exchangeable for cash, or at

NHP’s

option, shares of NHP’s

common stock, initially on a

one-for-one basis

The number of partnership units issued at each closing will be

determined based on the average closing price of NHP's

common stock during the 20 consecutive trading days ending

on the fifth trading day prior to the applicable closing, subject

to a floor of $29 and a cap of $33 for closings occurring in

2008.

2008 acquisitions will be financed with approximately:

$201 million of assumed debt at an attractive, all-in

rate of 5.9%

;

at least $100 million in partnership units; and

the remaining balance from proceeds derived from the

$305 million Emeritus portfolio sale at a 6.1% cap rate

on 2008 in-place rent.

The

blended

5.9%

rate

on

assumed

debt,

below

NHP’s

unsecured borrowing rate, mitigates financing risk in a difficult

credit environment.

This transaction is a real estate joint venture (JV) between

NHP and property owners

Property owners (PMB) contribute properties to the JV

partnership in exchange for cash and/or partnership units (i.e.,

limited partnership interests in the JV partnership)

Property owners (PMB) receive:

Tax deferral and tax protections

Securities that reflect the performance of NHP shares

Liquidity rights

A somewhat simplified version of our structure is:

NHP

General

Partner

NHP

Limited

Partner

PMB Limited

Partners

JV

Partnership

Property

Owning LLCs

PMB Properties

Transaction structure overview

Financing of acquisition portfolio

5

6

ACQUISITION PORTFOLIO OVERVIEW

7

February 25, 2008 | Multi-Year MOB Transaction Supplemental Information

PMB transaction would satisfy strategic goals

Geographic location

Existing properties

Under construction

Gilbert

Henderson

Reno (2)

Hillsboro

Santa Clarita

Chula Vista

Pasadena

Mission Viejo

Poway

Orange

Burbank (2)

Torrance

Lynwood

Castro Valley

San Gabriel

OREGON

CALIFORNIA

NEVADA

ARIZONA

Honolulu

HAWAII

Vancouver (7)

WASHINGTON

San Bernardino (2)

Pomona

Strategic goals: MOB size, diversification and growth

ACQUISITION PORTFOLIO

•

Multi-year transaction includes $915 million of modern, Class A

buildings located in six Western states

Existing MOB portfolio

24 Facilities (19 on campus)

High quality, West Coast portfolio (11 MOBs in CA)

Purchase

price

=

$630

million,

approximately

1,700,000

square

feet

= $371 per square foot

Under construction

4 on campus medical office buildings in California

Purchase

price

=

$285

million,

approximately(500,000

square feet

= $570 per square foot

DEVELOPMENT PIPELINE

•

Enhance returns through development pipeline of up to $1 billion

based on project costs

•

Assuming a development costs range of between $400 to $500 per

square foot,  $1 billion development pipeline would add between 2.0

and

2.5 million square feet

•

Assuming NHP exercises its option to acquire any of these assets,

the purchase price will reflect a discount to fair market value (see

page 28 for example).

MANAGEMENT

•

50% ownership of management company. NHP has major decision

approval rights with two out of four managers.

•

10-year management agreement for acquisition portfolio and future

pipeline, as well as management of third-party portfolios

8

February 25, 2008 | Multi-Year MOB Transaction Supplemental Information

Acquisition portfolio breakdown by hospital system

Hospital breakout by square feet (28 buildings)

Huntington Hospital

8.4%

Providence Health

System

11.1%

Pomerado Hospital

7.9%

St. Joseph

Hospital System

12.0%

Southwest

Washington

16.8%

Other

25.6%

Catholic

Healthcare West

18.3%

9

February 25, 2008 | Multi-Year MOB Transaction Supplemental Information

Acquisition portfolio breakdown by credit rating

Credit rating breakout by square feet (28 buildings)

A/A2, 61.5%

A-/A3, 23.8%

BBB+, 2.5%

BBB , 4.8%

No Rating, 7.4%

10

February 25, 2008 | Multi-Year MOB Transaction Supplemental Information

Acquisition portfolio breakdown by state and size

CA

69.2%

OR

3.7%

HI

3.6%

AZ

2.6%

NV

7.6%

WA

13.3%

100,000—

150,000 sqft

17.9%

150,000—

200,000 sqft

7.1%

50,000—100,000

sqft

53.6%

<25,000 sqft

10.7%

25,000—50,000

sqft

10.7%

Portfolio by property size (28 buildings)

Net operating income (28 buildings)

Total = $55,510,000

Minimum

8,000

Maximum

183,652

Mean

78,022

Median

68,810

11

Acquisition portfolio breakdown by age and vacancy

< 1994

19%

2000 -

2003

21%

2003

Forward

51%

1995 -

1999

9%

0.0% vacancy

39%

5.1—10.0%

vacancy

29%

10.0—20.0%

vacancy

11%

0.1—5.0%

vacancy

21%

Vacancy level (28 buildings)

Year built (28 buildings)

Minimum

Maximum

Mean

Median

0.0%

16.4%

4.8%

3.5%

12

February 25, 2008 | Multi-Year MOB Transaction Supplemental Information

Ground lease summary

Building

State

Rentable SF

Ground Lease

Expiration

Years Till

Expiration

Ground Lease Renewal

Options

1

Santa Clarita Valley Medical Plaza

CA

78,164

N/A - Fee

N/A

N/A - Fee

2

Sharp Rees-Stealy

CA

67,000

N/A - Fee

N/A

N/A - Fee

3

Liliha Medical Plaza

HI

92,650

2044

36

None

4

St. Francis Lynwood

CA

54,246

2048

40

Two - 10 Year

5

Eden Medical Plaza

CA

19,070

2053

45

Two - 10 Year

6

Burbank Medical Plaza

CA

69,620

2062

54

Two - 10 Year

7

San Gabriel Valley Medical Plaza

CA

58,249

2053

45

Two - 10 Year

8

Del E. Web Medical Plaza

NV

84,666

2039

31

Two - 10 Year

9

The Plaza at Washoe

NV

91,937

2054

46

Two - 10 Year

10

The Terrace at South Meadows

NV

60,953

2058

50

Two - 10 Year

11

Tuality 7th Avenue Medical Plaza

OR

104,856

2042

34

Two - 10 Year

12

Kenneth Watts Medical Office Building

CA

58,634

2061

53

Two - 10 Year

13

St. Joseph MOB & Parking Structure

CA

93,772

2062

54

Two - 10 Year

14

St. Joseph Medical Plaza & Cancer Center

CA

125,970

2061

53

None

15

Mission Hospital MOB & Parking Structure

CA

136,732

2057

49

None

16

Pomerado Hospital Outpatient Services Pavilion

CA

172,000

2061

53

Two - 10 Year

17

Huntington Memorial MOB

CA

183,652

2054

46

Three - 10 Year

18

Mercy Gilbert Medical Plaza

AZ

63,973

2060

52

Two - 10 Year

19

Physician's Pavilion

WA

110,101

2062

54

Two - 10 Year

20

Administration Building

WA

27,312

2062

54

Two - 10 Year

21

Medical Center Physician's Building

WA

115,284

2062

54

Two - 10 Year

22

Memorial MOB

WA

49,751

2062

54

Two - 10 Year

23

Salmon Creek MOB

WA

31,256

N/A - Fee

N/A

N/A - Fee

24

Fisher's Landing MOB

WA

24,779

N/A - Fee

N/A

N/A - Fee

25

Healthy Steps Clinic

WA

8,000

N/A - Fee

N/A

N/A - Fee

26

Western University Pomona MOB

CA

68,000

2057

49

Two - 10 Year

27

San Bernardino MOB A

CA

83,000

2080

72

None

28

San Bernardino MOB B

CA

51,000

2080

72

None

2,184,627

13

February 25, 2008 | Multi-Year MOB Transaction Supplemental Information

5%

2%

7%

7%

8%

5%

7%

7%

20%

21%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

Lease expiration schedule for the 2007 and 2008 acquired assets

14

February 25, 2008 | Multi-Year MOB Transaction Supplemental Information

$1.2

$0.8

$0.8

$2.1

$2.0

$0.5

$2.6

$2.1

$3.3

$4.3

$-

$0.5

$1.0

$1.5

$2.0

$2.5

$3.0

$3.5

$4.0

$4.5

$5.0

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

Estimated tenant improvements and leasing commissions for the 2007 and 2008 acquired assets

$ in millions

15

NHP MOB PORTFOLIO OVERVIEW (PROFORMA)

16

February 25, 2008 | Multi-Year MOB Transaction Supplemental Information

Post-Transaction

Total = $1,178,927,000

Pre-Transaction

Total = $383,927,000

Note: Post-transaction

figures

reflect

proforma

over

the

multi-year

transaction

added to existing MOB portfolio as of 12/31/2007 and assumes no

additional MOB acquisitions

Note: Pre-transaction

figures

reflect

NHP’s

MOB

portfolio

as

of

12/31/2007

NHP MOB portfolio | geography breakdown by investment

CA

0%

WA

31%

IL

17%

MO

12%

LA

10%

TX

8%

NV

0%

Other

23%

CA

54%

WA

10%

IL

5%

MO

4%

LA

3%

TX

3%

NV

6%

Other

15%

17

February 25, 2008 | Multi-Year MOB Transaction Supplemental Information

Post-Transaction

Total = $75,165,000

Pre-Transaction

Total = $27,030,000

Note: Pre-transaction

figures

reflect

NHP’s

MOB

portfolio

as

of

12/31/2007

NHP MOB portfolio | geography breakdown by NOI

Note: Post-transaction

figures

reflect

proforma

over

the

multi-year

transaction

added to existing MOB portfolio as of 12/31/2007 and assumes no

additional MOB acquisitions

CA

0%

WA

27%

IL

19%

MO

13%

LA

10%

TX

8%

NV

0%

Other

23%

CA

51%

WA

10%

IL

7%

MO

5%

LA

4%

TX

3%

NV

6%

Other

16%

18

February 25, 2008 | Multi-Year MOB Transaction Supplemental Information

Post-Transaction

Total = 4,195,401 square feet

Pre-Transaction

Total = 2,377,257 square feet

Note:

Pre-transaction

figures

reflect

NHP’s

MOB

portfolio

as

of

12/31/2007

NHP MOB portfolio | geography breakdown by square footage

Note: Post-transaction

figures

reflect

proforma

over

the

multi-year

transaction

added to existing MOB portfolio as of 12/31/2007 and assumes no

additional MOB acquisitions

CA

0%

WA

15%

IL

16%

MO

16%

LA

16%

TX

12%

NV

0%

Other

25%

CA

31%

WA

9%

IL

9%

MO

9%

LA

9%

TX

7%

NV

6%

Other

20%

19

NHP COMBINED PORTFOLIO OVERVIEW (PROFORMA)

20

February 25, 2008 | Multi-Year MOB Transaction Supplemental Information

NHP combined portfolio | asset type breakdown by investment

ALFs & ILFs

56%

Other

6%

MOBs

11%

SNFs

27%

Pre-transaction

ALFs & ILFs

43%

Other

5%

MOBs

30%

SNFs

22%

Post-transaction

Note: Post-transaction

figures

reflect

proforma

over

the

multi-year

transaction added to existing portfolio as of 12/31/2007 and

assumes the Emeritus portfolio sale and no additional acquisitions

in other asset types

Note:

Pre-transaction

figures

reflect

NHP’s

portfolio

as

of

12/31/2007

21

February 25, 2008 | Multi-Year MOB Transaction Supplemental Information

NHP combined portfolio | asset type breakdown by net operating income (NOI)

ALFs & ILFs

56%

Other

7%

MOBs

8%

SNFs

29%

Pre-transaction

ALFs & ILFs

47%

Other

6%

MOBs

21%

SNFs

26%

Post-transaction

Note: Pre-transaction

figures

reflect

NHP’s

portfolio

as

of

12/31/2007

Note: Post-transaction

figures

reflect

proforma

over

the

multi-year

transaction added to existing portfolio as of 12/31/2007 and

assumes the Emeritus portfolio sale and no additional acquisitions

in other asset types

22

February 25, 2008 | Multi-Year MOB Transaction Supplemental Information

NHP combined portfolio | tenant concentration by investment

Top 5

Tenants

44%

Other

Tenants

56%

Pre-transaction

Top 5

Tenants

34%

Other

Tenants

66%

Post-transaction

Note:

Pre-transaction

figures

reflect

NHP’s

portfolio

as

of

12/31/2007

Note: Post-transaction

figures

reflect

proforma

over

the

multi-year

transaction added to existing portfolio as of 12/31/2007 and

assumes the Emeritus portfolio sale and no additional acquisitions

in other asset types

23

February 25, 2008 | Multi-Year MOB Transaction Supplemental Information

NHP combined portfolio | tenant concentration by NOI

Top 5

Tenants

46%

Other

Tenants

54%

Pre-transaction

Top 5

Tenants

38%

Other

Tenants

62%

Post-transaction

Note:

Pre-transaction

figures

reflect

NHP’s

portfolio

as

of

12/31/2007

Note:

Post-transaction

figures

reflect

proforma

over

the

multi-year

transaction added to existing portfolio as of 12/31/2007 and

assumes the Emeritus portfolio sale and no additional acquisitions

in other asset types

24

February 25, 2008 | Multi-Year MOB Transaction Supplemental Information

NHP combined portfolio | geographic breakdown by investment

Other

51%

TX

15%

WI

6%

WA

10%

MA

7%

CA

6%

FL

5%

Pre-transaction

FL

4%

Other

45%

CA

21%

MA

5%

WA

8%

WI

5%

TX

12%

Post-transaction

Note:

Pre-transaction

figures

reflect

NHP’s

portfolio

as

of

12/31/2007

Note: Post-transaction

figures

reflect

proforma

over

the

multi-year

transaction added to existing portfolio as of 12/31/2007 and

assumes the Emeritus portfolio sale and no additional acquisitions

in other asset types

25

February 25, 2008 | Multi-Year MOB Transaction Supplemental Information

NHP combined portfolio | geographic breakdown by NOI

Other

52%

FL

5%

CA

9%

MA

9%

WA

6%

WI

5%

TX

14%

Pre-transaction

FL

4%

Other

48%

CA

18%

MA

8%

WA

5%

WI

5%

TX

12%

Post-transaction

Note:

Pre-transaction

figures

reflect

NHP’s

portfolio

as

of

12/31/2007

Note: Post-transaction

figures

reflect

proforma

over

the

multi-year

transaction added to existing portfolio as of 12/31/2007 and

assumes the Emeritus portfolio sale and no additional acquisitions

in other asset types

26

February 25, 2008 | Multi-Year MOB Transaction Supplemental Information

NHP combined portfolio | NHP revenue by pay source

Private

71%

Medicaid

19%

Medicare

10%

Pre-transaction

Private

76%

Medicaid

16%

Medicare

8%

Post-transaction

Note:

Pre-transaction

figures

reflect

NHP’s

portfolio

as

of

12/31/2007

Note: Post-transaction

figures

reflect

proforma

over

the

multi-year

transaction added to existing portfolio as of 12/31/2007 and

assumes the Emeritus portfolio sale and no additional acquisitions

in other asset types

27

DEVELOPMENT PIPELINE VALUATION (ESTIMATE)

28

February 25, 2008 | Multi-Year MOB Transaction Supplemental Information

Cap rate adjustments for development pipeline

Based on assumptions below, NHP expects the value of the discount amount

for the $1 billion development pipeline to be worth between $70 and $160

million, resulting in an expected cap rate improvement between 50 to 80 bps.

Based on assumptions below, NHP expects the value of the discount amount

for the $1 billion development pipeline to be worth between $70 and $160

million, resulting in an expected cap rate improvement between 50 to 80 bps.

Development pipeline ($000s)

Total Development Cost

1,000,000

$ 

1,000,000

$ 

1,000,000

$ 

Estimated Development Yield

8.0%

8.0%

8.0%

Estimated NOI

80,000

80,000

80,000

Estimated Stabilized Cap Rate

6.0%

6.5%

7.0%

Stabilized Value

1,333,333

1,230,769

1,142,857

Excess of Value Over Cost

333,333

230,769

142,857

NHP's Percentage Share (based on sliding scale)

47.5%

50.0%

50.0%

NHP's Purchase Price Reduction ($ amount)

158,333

115,385

71,429

Effective Purchase Price

1,175,000

1,115,385

1,071,429

Effective Reduction in Purchase Price

12%

9%

6%

Adjustment to pipeline cap rate (bps)

81

67

47

NHP's Effective Cap Rate on Pipeline

6.8%

7.2%

7.5%

29

MOB MARKET OVERVIEW

30

February 25, 2008 | Multi-Year MOB Transaction Supplemental Information

MOB market size and investment attributes

MOBs

represent $175 billion of the approximately $700

billion healthcare real estate market

The first wave of Baby Boomers turned sixty in 2006.

In 2011, Americans sixty-five and older will total forty

million—just 10 years later that number approaches sixty

million

MOBs

offer steady rent growth and predictable, recession-

resistant cash flow, and high retention rates

Major portfolio transactions continue to cause consolidation

in the sector

Increasing transaction volume has enticed more buyers

and enhanced capital market activities. Many new entrants

including foreign investors, public REITS and others

Cap rates for well-located, on campus-assets have

decreased by over 200 basis points over the past several

years

While the recent liquidity environment has affected cap

rates in traditional real estate asset classes, the effect on

the MOB sector has been minimal

Healthcare is consistently one of the fastest growing

sectors of the economy

Continued growth in outpatient delivery of healthcare and

the need for capital by providers drives real estate

development

A further increase in investment in the healthcare sector is

expected as healthcare is viewed as “ recession proof”

Medical Office Buildings (“MOB”) continue to

become a more mainstream real estate

investment class.  The following factors are

positively affecting the MOB investment market

Surgery,

Rehab &

Wellness

Centers

7%

MOB

25%

Hospitals

23%

Other

11%

Skilled

Nursing

10%

Senior

Housing

24%

MOB market size

Source: Green Street Advisors, CMS, NIC, ASHA, Irving Levin Associates,

Costar Group, Inc., American Association of Ambulatory Surgery

Centers, Prudential Real Estate Institute

Healthcare Real Estate Total

$700 Billion

31

February 25, 2008 | Multi-Year MOB Transaction Supplemental Information

7.2%

7.0%

6.9%

6.0%

$2.5-$5M

$5-$15M

$15-$50M

$50M+

Recent  MOB market transactions

MOB transactions

Transaction

State

Cap Rate

$ per SF

Murrieta Professional Plaza

CA

5.20%

$325 

2300 Crenshaw Blvd.

CA

5.70%

        257 

Thousand Oaks, CA Medical Building

CA

5.80%

        307 

El Cajon Medical Building

CA

6.00%

        169 

St. Rita's Medical Center portfolio sale

OH

6.01%

        131 

Mt. View Medical

CA

6.10%

        300 

Southwest Washington Medical Center

portfolio sale

WA

6.24%

        323 

Rainbow Medical Center

NV

6.70%

        323 

First Columbia portfolio sale

NY

6.84%

        251 

9155 Telegraph Rd

CA

6.90%

        164 

Daimler/Ohio Health portfolio sale

OH

6.94%

        171 

Erlangher Health System 

TN

NA

        309 

Memorial Health System

CO

NA

        246 

$229

$254

$282

$447

$2.5-$5M

$5-$15M

$15-$50M

$50M+

Price per square foot by transaction size

Source: Real Capital Analytics as of Q4 2007

Larger transactions command

higher price per square foot and

lower cap rates

Source: Real Capital Analytics, Shattuck Hammond Partners

February 25, 2008 | Multi-Year MOB Transaction Supplemental Information

MOB pricing by region

Volume

Price per square foot

Cap rate

Region

$mm

Number

Maximum

Average

Minimum

Maximum

Average

Minimum

West

$1,470.7

102

$976

$259

$82

9.1%

6.6%

5.0%

Northeast

640.1

50

1,376

267

63

7.5%

6.8%

6.0%

Southeast

801.4

61

528

192

41

10.4%

7.2%

6.5%

Southwest

1,065.9

71

595

237

91

9.1%

7.1%

5.7%

Mid-Atlantic

350.9

17

435

176

17

7.4%

6.9%

6.0%

Midwest

395.1

32

552

155

51

12.5%

7.7%

5.4%

Medical office total

$4,724.2 

       333 

$1,376 

$221 

$17 

12.5%

7.0%

5.0%

Medical office by region

Source:  Real Capital Analytics as of Q4 2007. Based on independent reports of properties and portfolios $5 million and greater

32

33

FOR ADDITIONAL INFORMATION

Douglas

Pasquale,

President

&

CEO

|

949.718.4404

|

doug@nhp-reit.com

Don

Bradley,

Chief

Investment

Officer

|

949.718.4415

|

don@nhp-reit.com

Abdo

Khoury,

Chief

Financial

&

Portfolio

Officer

|

949.718.4413

|

abdo@nhp-reit.com

David Snyder,

VP & Controller

|

949.718.4410 | david@nhp-reit.com