EX-99.2 3 dex992.htm SUPPLEMENTAL INFORMATION PACKAGE FOR THE QUARTER ENDED MARCH 31, 2008. Supplemental information package for the quarter ended March 31, 2008.
March 31, 2008
Supplemental Information
EXHIBIT 99.2

1
March 31, 2008—
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.
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;
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.

2
March 31, 2008—
Contents
Reconciliation of 2008 Net Income Guidance to Diluted FFO and Diluted FAD Guidance
Forward
Capital
Commitments:
Acquisition
Obligations,
Capital
Expenditures
&
Expansions
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
25
PORTFOLIO OVERVIEW_____________________________________________________________________
1st
Quarter 2008 Investments
18
INVESTMENTS & DISPOSITIONS________________________________________________________________
Lease Expirations and Mortgage Loans Receivable Principal Payments
Expected Dispositions
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
4
FINANCIAL RESULTS_________________________________________________________________________
3
COMPANY FACT SHEET______________________________________________________________________

3
March 31, 2008—
Company Fact Sheet
REIT structure provides opportunity to invest directly in real estate and
indirectly in healthcare industry
Quality healthcare real estate portfolio
Long-term triple-net master leases with quality operators
Strong affiliations with premiere hospital systems in growing medical office
building markets
Senior housing care a vital component of U.S. economy
High dividend yield and high dividend coverage
Financial stability
Well positioned to take advantage of investment opportunities and to
conservatively grow earnings and dividends
NHP is one of the few healthcare REITs with investment grade ratings by
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
in
senior
housing
facilities, long-term care facilities and medical office buildings throughout the
United States. NHP generally acquires real estate and then leases the assets
under long-term triple-net master leases to senior housing and long-term care
operators
and
various
types
of
leases
to
multiple
tenants
in
the
case
of
medical
office buildings.
As
a
REIT
specializing
in
healthcare
real
estate,
NHP
provides
a
focused
investment strategy with a well diversified portfolio. NHP employs a conservative,
long-term approach to real estate investments with an experienced professional
management team having extensive operating, real estate and finance
backgrounds.
$3.9 billion in healthcare real estate
571 properties in 43 states
259
Assisted and Independent Living
181
Skilled Nursing
57  Medical Office Buildings
17
Other
23  Assets Held For Sale
34  Unconsolidated JV Facilities
Over 80 multi-facility operators
Market Facts
Enterprise Value
$5.0 billion
Closing Price
$33.75
Market Capitalization
$3.2 billion
Dividend & Yield
$1.76 (5.2%)
52 week range
$22.63 –
$36.99
Shares Outstanding
96.2 million
Company Profile
Investor Highlights
Our Portfolio
WI
(7%)
MA
(7%)
WA
(4%)
CA
(9%)
TX
(15%)
Credit Ratings
S&P  BBB-
Moody’s Baa3 (positive outlook)
Fitch BBB-
(positive outlook)
as of March 31, 2008
as of March 31, 2008

4
March 31, 2008—
FINANCIAL RESULTS

5
March 31, 2008—
Consolidated Statement of Operations
In thousands, except per share data
2008
2007
Revenues:
Triple-net lease rent
$           70,516
$           62,911
Medical office building operating rent
10,930
2,763
81,446
65,674
Interest and other income
5,267
4,271
86,713
69,945
Expenses:
Interest and amortization of deferred financing costs
24,738
22,743
Depreciation and amortization
27,550
19,813
General and administrative
6,498
5,617
Medical office building operating expenses
4,864
1,414
63,650
49,587
Income before minority interests and unconsolidated joint venture
23,063
20,358
Minority interests in net loss (income) of consolidated joint ventures
9
(17)
Income from unconsolidated joint venture
1,053
218
Income from continuing operations
24,125
20,559
Discontinued operations:
Gain on sale of facilities, net
10,866
66
Income from discontinued operations
2,464
5,423
13,330
5,489
Net income
37,455
26,048
Preferred stock dividends
(2,062)
(3,791)
Income available to common stockholders
35,393
$        
22,257
$        
Basic earnings per share (EPS):
Income from continuing operations
$               0.23
$               0.19
Discontinued operations
0.14
0.06
Income available to common stockholders
$               0.37
$               0.25
Diluted EPS:
Income from continuing operations
$               0.23
$               0.19
Discontinued operations
0.14
0.06
Income
$               0.37
$               0.25
Weighted average shares outstanding for EPS:
Basic
95,274
88,188
Diluted
95,783
88,676
Three Months Ended March 31,

6
March 31, 2008—
Reconciliation of Net Income to Funds From Operations (FFO)
See Financial Measures Definitions
2008
2007
Net income to FFO
Net income
37,455
$            
26,048
$            
Preferred stock dividends
(2,062)
               
(3,791)
               
Real estate related depreciation and amortization
28,589
              
22,294
              
Depreciation in income from unconsolidated joint venture
1,115
                
164
                    
Gains on sale of facilities
(10,866)
             
(66)
                     
FFO available to common stockholders
54,231
              
44,649
              
Series B preferred dividend add-back
2,062
                
2,062
                
Diluted FFO
56,293
$            
46,711
$            
Weighted average shares outstanding for FFO
Diluted weighted average shares outstanding
95,783
              
88,676
              
Series B preferred stock add-back
4,728
                
4,698
                
Fully diluted weighted average shares outstanding
100,511
            
93,374
              
Diluted per share amounts:
FFO
0.56
$                
0.50
$                
Dividends declared per common share
0.44
$                
0.41
$                
FFO payout ratio
79%
82%
FFO Coverage
1.27
                   
1.22
                   
In thousands, except per share data
Three Months Ended March 31,

7
March 31, 2008—
Reconciliation of Net Income to Funds Available for Distribution
(FAD)
See Financial Measures Definitions
2008
2007
Net income to FAD:
Net income
37,455
$            
26,048
$            
Preferred stock dividends
(2,062)
               
(3,791)
               
Real estate related depreciation and amortization
28,589
              
22,294
              
Gains on sale of facilities
(10,866)
             
(66)
                     
Straight-lined rent
(2,837)
               
(937)
                   
Amortization of above and below market lease intangibles
124
                    
38
                      
Non-cash stock-based compensation expense
1,331
                
1,020
                
Deferred finance cost amortization
747
                    
687
                    
Lease commissions and tenant and capital improvements
(847)
                   
(613)
                   
NHP's share of FAD reconciling items from unconsolidated joint venture
Real estate related depreciation and amortization
1,115
                
164
                    
Deferred finance cost amortization
19
                      
-
                     
FAD available to common stockholders
52,768
              
44,844
              
Series B preferred dividend add-back
2,062
                
2,062
                
Diluted FAD
54,830
$            
46,906
$            
Weighted average shares outstanding for FAD
Weighted average shares outstanding
95,783
              
88,676
              
Series B preferred stock add-back
4,728
                
4,698
                
Fully diluted weighted average shares outstanding
100,511
            
93,374
              
Diluted per share amounts:
FAD
0.55
$                
0.50
$                
Dividends declared per common share
0.44
$                
0.41
$                
FAD payout ratio
80%
82%
FAD Coverage
1.25
                   
1.22
                   
In thousands, except per share data
Three Months Ended March 31,

8
March 31, 2008—
Reconciliation of 2008 Net Income Guidance to Diluted FFO and Diluted FAD Guidance
See Financial Measures Definitions
All amounts on a per share basis
Low
High
Net Income Guidance
$       2.72
$       2.77
Real estate related depreciation and amortization
1.14
1.14
Less: gains on sale
(1.66)
(1.66)
Dilution from convertible preferred stock
(0.02)
(0.02)
Diluted FFO Guidance
2.18
2.23
Straight-lined rent
(0.11)
(0.11)
Non-cash stock-based compensation expense
0.05
0.05
Deferred finance cost amortization
0.03
0.03
Lease commissions and tenant and capital improvements
(0.05)
(0.06)
Diluted FAD Guidance
$       2.10
$       2.14

9
March 31, 2008—
Consolidated Balance Sheets
March 31,
December 31,
2008
2007
Assets
Real estate related investments:
Land
286,771
$           
301,100
$           
Buildings and improvements
2,747,883
          
2,896,876
          
3,034,654
3,197,976
Less accumulated depreciation
(416,364)
            
(410,865)
            
Net real estate
2,618,290
2,787,111
Mortgage loans receivable, net
112,591
             
121,694
             
Investment in unconsolidated joint venture
50,417
               
52,637
               
Net real estate related investments
2,781,298
2,961,442
Cash and cash equivalents
30,117
               
19,407
               
Receivables, net
3,164
                 
3,808
                 
Assets held for sale
168,550
             
-
                      
Other assets
200,186
             
159,696
             
Total assets
3,183,315
$        
3,144,353
$        
Liabilities and Stockholders' Equity
Credit facility
56,000
$             
41,000
$             
Senior notes due 2008 - 2038
1,156,500
          
1,166,500
          
Notes and bonds payable
334,269
             
340,150
             
Accounts payable and accrued liabilities
115,432
             
107,844
             
Total liabilities
1,662,201
1,655,494
Minority interest
5,720
                 
6,166
                 
Stockholders' equity:
Series B convertible preferred stock
106,435
             
106,445
             
Common stock
9,615
                 
9,481
                 
Capital in excess of par value
1,604,746
          
1,565,249
          
Cumulative net income
1,326,206
          
1,288,751
          
Accumulated other comprehensive income
2,442
                 
2,561
                 
Cumulative dividends
(1,534,050)
         
(1,489,794)
         
Total stockholders' equity
1,515,394
1,482,693
Total liabilities and stockholders' equity
3,183,315
$        
3,144,353
$        
In thousands

10
March 31, 2008—
Capitalization
Debt
Credit facility
56,000
$             
$        41,000
Senior notes
1,156,500
1,166,500
Notes and bonds
334,269
340,150
Consolidated debt
1,546,769
1,547,650
NHP's
share of unconsolidated debt
81,483
79,234
Total debt
1,628,252
$        
1,626,884
$ 
Book Capitalization
Consolidated debt
1,546,769
$        
1,547,650
$ 
Minority interest
5,720
6,166
Total stockholders' equity
1,515,394
1,482,693
Consolidated book capitalization
3,067,883
3,036,509
Accumulated depreciation and amortization
416,364
410,865
Consolidated undepreciated
book capitalization
3,484,247
3,447,374
NHP's
share of unconsolidated debt
81,483
79,234
NHP's
share of unconsolidated depreciation and amortization
2,818
1,703
Total undepreciated
book capitalization
3,568,548
$        
3,528,311
$ 
Market capitalization
Shares
Price
Shares
Price
Common stock
96,154
33.75
$   
3,245,191
$        
94,806
31.37
$   
2,974,057
$ 
Series B preferred stock
1,064
150.00
$ 
159,653
1,064
140.00
$ 
149,023
Consolidated market equity capitalization
3,404,844
3,123,080
Consolidated debt
1,546,769
1,547,650
Consolidated market capitalization
4,951,613
4,670,730
NHP's
share of unconsolidated debt
81,483
79,234
Total market capitalization
5,033,096
$        
4,749,964
$ 
Leverage Ratios
Consolidated debt to consolidated undepreciated
book capitalization
44.4%
44.9%
Total debt to total undepreciated
book capitalization
45.6%
46.1%
Consolidated debt to consolidated market capitalization
31.2%
33.1%
Total debt to total market capitalization
32.4%
34.3%
December 31, 2007
In thousands, except stock prices and ratios
March 31, 2008

11
March 31, 2008—
Capitalization (2)
Undepreciated
Book Basis
Enterprise
Value
54% Equity
46% Debt
68% Equity
32% Debt
75%
Unsecured
25%
Secured
93%
7%
Fixed
Variable
Debt Composition

12
March 31, 2008—
Debt Maturities and Debt Composition
Principal
Rate
Principal
Rate
Principal
Rate
Principal
Rate
Principal
Rate
Principal
Rate
Q2 2008
-
$           
-
-
$              
-
-
$           
-
-
$             
-
288
$             
6.4%
288
$            
6.4%
Q3 2008
-
-
40,000
(1)
6.6%
-
-
40,000
6.6%
-
-
40,000
6.6%
Q4 2008
-
-
33,500
(2)
7.6%
-
-
33,500
7.6%
-
-
33,500
7.6%
2009
-
-
87,000
(3)
7.8%
39,010
6.6%
126,010
7.4%
-
-
126,010
7.4%
2010
56,000
3.9%
-
-
73,336
*
6.0%
*
129,336
5.1%
-
-
129,336
5.1%
2011
-
-
350,000
6.5%
5,283
7.7%
355,283
6.5%
-
-
355,283
6.5%
2012
-
-
96,000
8.3%
36,272
7.3%
132,272
8.0%
14,000
6.0%
146,272
7.8%
2013
-
-
300,000
6.3%
67,508 *
6.3%*
367,508
6.3%
-
-
367,508
6.3%
2014
-
-
-
-
8,346
5.9%
8,346
5.9%
25,616
5.8%
33,962
5.8%
2015
-
-
250,000
6.0%
18,917
6.0%
268,917
6.0%
34,027
5.9%
302,944
6.0%
2016
-
-
-
-
-
-
-
-
-
-
-
-
2017
-
-
-
-
106
5.0%
106
5.0%
-
-
106
5.0%
2018
-
-
-
-
7,800
6.1%
7,800
6.1%
-
-
7,800
6.1%
Thereafter
-
-
-
-
77,691
4.9%
77,691
4.9%
7,552
6.9%
85,243
5.1%
Total
56,000
$   
3.9%
1,156,500
$  
6.6%
334,269
$ 
6.0%
1,546,769
$  
6.4%
81,483
$       
6.0%
1,628,252
$  
6.4%
Weighted average
maturity in years
2.7
4.3
8.3
5.1
7.6
5.2
* Includes $17,108 of debt at a weighted rate of 7.6% in 2010 and $26,305 of debt at a weighted rate of 6.8% in 2013 that was repaid in connection with the April 2, 2008 Emeritus sale
Principal
Rate
% of Total
Principal
Rate
% of Total
Fixed rate debt
Senior notes
1,156,500
$  
6.6%
71.0%
$   1,166,500
6.6%
71.7%
Notes and bonds
272,054
6.3%
16.7%
277,930
6.3%
17.1%
NHP's
share of unconsolidated debt
81,483
6.0%
5.0%
79,234
6.0%
4.9%
Total fixed rate debt
1,510,037
6.5%
92.7%
1,523,664
6.5%
93.7%
Variable rate debt
Credit facility
56,000
3.9%
3.4%
41,000
5.5%
2.5%
Notes and bonds
62,215
5.2%
3.8%
62,220
5.7%
3.8%
Total variable rate debt
118,215
4.6%
7.3%
103,220
5.6%
6.3%
Total debt
1,628,252
$  
6.4%
1,626,884
$  
6.5%
(1) Notes putable
July of 2008, 2013, 2018, 2023 and 2028 with a final maturity in 2038
(2) Notes putable
November of 2008, 2013, 2018 and 2023 with a final maturity in 2028
(3) Includes $55 million of notes putable
October
of 2009, 2012, 2017 and 2027 with a final maturity in 2037
Period
March 31, 2008
December 31, 2007
Debt Composition
NHP's
Share of
Unconsolidated Debt
Consolidated Debt
In thousands
Debt Maturities
Total Debt
Senior Notes
Notes and Bonds
Credit Facility

13
March 31, 2008—
Interest and Fixed Charge Coverage
See Financial Measures Definitions
2008
2007
Reconciliation of Net Income to EBITDA:
Net income
37,455
$           
26,048
$           
Interest and amortization of deferred financing costs in continuing operations
24,738
22,743
Interest and amortization of deferred financing costs in discontinued operations
998
1,079
Depreciation and amortization in continuing operations
27,550
19,813
Depreciation and amortization in discontinued operations
1,164
2,588
Consolidated EBITDA
91,905
72,271
NHP's
share of EBITDA reconciling items from unconsolidated joint venture:
Interest and amortization of deferred financing costs
1,214
---
Depreciation and amortization
1,115
164
Total EBITDA
94,234
72,435
Gains on sale of facilities
(10,866)
(66)
Adjusted Total EBITDA
83,368
$           
72,369
$           
Adjusted Consolidated EBITDA
81,039
$           
72,205
$           
Interest Expense
Consolidated interest expense (including discontinued operations)
24,989
$           
23,135
$           
NHP's
share of interest expense from unconsolidated joint venture
1,195
-
Total interest expense
26,184
23,135
Fixed Charges:
Consolidated interest expense (including discontinued operations)
24,989
$           
23,135
$           
Preferred stock dividends
2,062
3,791
Consolidated fixed charges
27,051
26,926
NHP's
share of interest expense from unconsolidated joint venture
1,195
-
Total fixed charges
28,246
$           
26,926
$           
Consolidated Adjusted Interest Coverage Ratio
3.24
3.12
Total Adjusted Interest Coverage Ratio
3.18
3.13
Consolidated Adjusted Fixed Charge Coverage Ratio
3.00
2.68
Total Adjusted Fixed Charge Coverage Ratio
2.95
2.69
In thousands
Three Months Ended March 31,

14
March 31, 2008—
Unconsolidated Joint Venture Financial Statements
In thousands
Three Months Ended
Three Months Ended
March 31, 2008
December 31, 2007
March 31, 2008
March 31, 2007
Assets
Revenues
Land
35,042
$                   
35,042
$                   
Rent
11,228
$                    
1,176
$                    
Buildings and improvements
498,079
496,188
Interest and other income
26
2
Gross real estate
533,121
531,230
Total revenues
11,254
1,178
Accumulated depreciation
(11,271)
(6,811)
Net real estate
521,850
524,419
Expenses
Cash
3,318
3,689
Interest and amortization of deferred finance costs
4,854
-
Receivables
5
-
Depreciation and amortization
4,460
655
Other assets
5,255
2,825
General and administrative*
1,557
72
Total assets
530,428
$                 
530,933
$                 
Total expenses
10,871
727
Liabilities and equity
Net income
383
$                         
451
$                       
Notes payable
325,933
$                 
316,935
$                 
Accounts payable and accrued liabilities
8,057
3,461
NHP Income and FFO from Joint Venture
Total liabilities
333,990
320,396
Share of net income -
25%
96
$                           
113
$                       
Management fee*
957
105
Equity contributions
220,761
215,970
Income from joint venture
1,053
218
Retained earnings
2,144
1,761
Share of depreciation -
25%
1,115
164
Distributions
(21,279)
(7,194)
FFO from joint venture
2,168
$                      
382
$                       
Other comprehensive
income
(5,188)
-
Total equity
196,438
210,537
* NHP's
management fee is included in the joint venture's general and administrative expense
Total liabilities and equity
530,428
$                 
530,933
$                 
NHP's
investment in joint venture
50,417
$                   
52,637
$                   
Income Statement
Balance Sheet

15
March 31, 2008—
Financial Measures Definitions
Adjusted EBITDA:
We believe that adjusted EBITDA is an important supplemental operating and
liquidity measure primarily because it is used in the calculation of the Adjusted
Interest Coverage Ratio and the Adjusted Fixed Charge Coverage Ratio and
we present it solely for the purpose of being used in those calculations. 
Adjusted EBITDA is calculated by adding back any gains and losses on the
sale of real estate and any impairments to EBITDA for a given period.  We
believe
adjusted
EBITDA
is
most
useful
as
a
liquidity
measure
in
the
ratio
calculations noted above to enable investors to determine and compare a
company’s ability to meet its interest and Fixed Charges obligations. 
However,
the
methodology
for
calculating
it
makes
net
income
the
most
directly
comparable
GAAP
measure.
As
such,
we
believe
investors
should
consider adjusted EBITDA, cash flows from operating activities and net
income when evaluating our ability to meet our interest and Fixed Charges
obligations.  The usefulness of adjusted EBITDA is limited because it doesn’t
reflect, among other things, required principal payments, cash expenditures,
capital expenditures or capital commitments.  Adjusted EBITDA does not
represent
net
income
or
cash
flows
from
operations
as
defined
by
GAAP
and
should not considered as an alternative to either of those measures.  Our
calculation of Adjusted EBITDA may not be comparable to similar measures
reported by other companies.
Adjusted Fixed Charge Coverage Ratio:
We believe that the adjusted fixed charge coverage ratio is an important
supplemental liquidity measure that reflects a company’s ability to meet its
interest and preferred dividend payment obligations and allows investors to
compare interest and dividend paying capabilities among different companies. 
We calculate the adjusted fixed charge coverage ratio by dividing Adjusted
EBITDA by Fixed Charges.  In addition, credit rating agencies utilize similar
ratios
in
evaluating
the
credit
ratings
on
our
debt
instruments.
This
ratio’s
usefulness is limited by the same factors that limit the usefulness of the
components Adjusted EBITDA and Fixed Charges.  Our calculation of the
adjusted
fixed
charge
coverage
ratio
should
not
be
considered
an
alternative
to the ratio of earnings to fixed charges as defined by Item 503(d) of
Regulation S-K and it may not be comparable to similar ratios reported by
other companies.
Adjusted Interest Coverage Ratio:
We believe that the adjusted interest coverage ratio is an important
supplemental liquidity measure that reflects a company’s ability to meet its
interest payment obligations and allows investors to compare interest paying
capabilities among different companies.  We calculate the adjusted interest
coverage ratio by dividing Adjusted EBITDA by interest expense (including
capitalized interest, if any).  In addition, credit rating agencies utilize similar
ratios
in
evaluating
the
credit
ratings
on
our
debt
instruments.
This
ratio’s
usefulness is limited by the same factors that limit the usefulness of the
component Adjusted EBITDA.  Our calculations of the adjusted interest
coverage ratio may not be comparable to similar ratios reported by other
companies.
EBITDA:
We believe that EBITDA is an important supplemental operating and liquidity
measure primarily because it is used in the calculation of Adjusted EBITDA
which is in turn used in the calculation of the Adjusted Interest Coverage
Ratio and the Adjusted Fixed Charge Coverage Ratio and we present it solely
for the purpose of being used in those calculations.  EBITDA is calculated by
adding interest, taxes, depreciation and amortization to net income.  The real
estate industry uses EBITDA as a non-GAAP measure of both operating
performance and liquidity.  We believe it is most useful as a liquidity measure
in the ratio calculations noted above to enable investors to determine and
compare a company’s ability to meet its interest and Fixed Charges
obligations.  However, the methodology for calculating it makes net income
the most directly comparable GAAP measure.  As such, we believe investors
should
consider
EBITDA,
cash
flows
from
operating
activities
and
net
income
when evaluating our ability to meet our interest and Fixed Charges
obligations.  The usefulness of EBITDA is limited because it doesn’t reflect,
among other things, required principal payments, cash expenditures, capital
expenditures or capital commitments.  EBITDA does not represent net
income or cash flows from operations as defined by GAAP and should not
considered as an alternative to either of those measures.  Our calculation of
EBITDA may not be comparable to similar measures reported by other
companies.

16
March 31, 2008—
Financial Measures Definitions (2)
FAD Payout Ratio and FFO Coverage:
The FAD payout ratio is calculated by dividing the common dividend per
share by diluted FAD per share for any given period.  FAD coverage is
calculated by dividing diluted FAD per share by the common dividend per
share for any given period.  We believe that both of these amounts are
important supplemental liquidity measures that enable investors to compare
dividend security among REITs.
Fixed Charges:
Fixed charges is a measure of the total interest and preferred stock dividend
obligations of a company.  It is calculated by adding interest expense
(including capitalized interest, if any) and preferred stock dividends for any
given period and is utilized in calculating the Adjusted Fixed Charge
Coverage Ratio.  It’s usefulness is limited as, among other things, it does not
include required principal payments or any other contractual obligations a
company may have.  Our calculation of fixed charges should not be
considered an alternative to fixed charges as defined by Item 503(d) of
Regulation S-K and it may not be comparable to fixed charges reported by
other companies.
Funds Available for Distribution (“FAD”):
While
net
income
and
its
related
per
share
amounts
as
defined
by
generally
accepted
accounting
principles
("GAAP")
are
the
most
appropriate
earnings
measures, we believe that FAD and its related per share amounts are
important
supplemental
measures
of
operating
performance.
GAAP
requires
the use of straight-line depreciation of historical costs and implies that real
estate values diminish predictably and ratably over time.  However, real
estate values have historically risen and fallen based on various market
conditions and other factors.  FFO was developed as a supplemental
measure of operating performance primarily in order to exclude historical cost
based depreciation and amortization and its effects as it does not generally
reflect the actual change in value of real estate over time.  FAD was
developed as a supplemental measure of operating performance primarily to
exclude non-cash revenues and expenses that are included in FFO.  FAD is
defined as net income (computed in accordance with GAAP) excluding gains
and
losses
from
the
sale
of
real
estate
plus
real
estate
related
depreciation
and amortization, plus or minus straight-lined rent (plus cash in excess of rent
or minus rent in excess of cash), plus or minus amortization of above or
below market lease intangibles, plus non-cash stock based compensation,
plus deferred finance cost amortization plus any impairments minus lease
commissions,
tenant
improvements
and
capital
improvements
paid.
The
same adjustments are made to reflect our share of these same items from
unconsolidated joint ventures.  We believe that the use of FAD and its related
per share amounts and FFO and its related per share amounts in conjunction
with the required GAAP disclosures provides investors with a more
comprehensive understanding of the operating results of a real estate
investment trust ("REIT") and enables investors to compare the operating
results between REITs without having to account for differences caused by
different depreciation assumptions and different non-cash revenues and
expenses.   Additionally, FAD is widely used by industry analysts as a
measure
of
operating
performance
for
equity
REITs.
FAD
does
not
represent
cash flow from operating activities or net income as defined by GAAP and,
therefore should not be considered as an alternative to cash flow as a
measure of liquidity or net income as the primary indicator of operating
performance.  Our calculations of FAD may not be comparable to FAD
reported by other REITs or analysts that define it differently than we do.
Funds from Operations (“FFO”):
While
net
income
and
its
related
per
share
amounts
as
defined
by
generally
accepted
accounting
principles
("GAAP")
are
the
most
appropriate
earnings
measures, we believe that FFO and its related per share amounts are
important
supplemental
measures
of
operating
performance.
GAAP
requires
the use of straight-line depreciation of historical costs and implies that real
estate values diminish predictably and ratably over time.  However, real
estate values have historically risen and fallen based on various market
conditions and other factors.  FFO was developed as a supplemental
measure of operating performance primarily in order to exclude historical cost
based depreciation and amortization and its effects as it does not generally
reflect the actual change in value of real estate over time.  We
calculate FFO
in accordance with the National Association of Real Estate Investment Trusts'
definition.  FFO is defined as net income (computed in accordance with
GAAP) excluding gains and losses from the sale of real estate plus real
estate related depreciation and amortization.  The same adjustments are
made to reflect our share of gains and losses from the sale of real estate and
real estate related depreciation and amortization from unconsolidated joint
ventures.  We believe that the use of FFO and its related per share amounts
in conjunction with the required GAAP disclosures provides investors with a

17
March 31, 2008—
Financial Measures Definitions (3)
more comprehensive understanding of the operating results of a real estate
investment trust ("REIT") and enables investors to compare the operating
results between REITs without having to account for differences caused by
different depreciation assumptions.   Additionally, FFO is widely used by
industry analysts as a measure of operating performance for equity REITs. 
FFO does not represent cash flow from operating activities or net income as
defined by GAAP and, therefore should not be considered as an alternative to
cash
flow
as
a
measure
of
liquidity
or
net
income
as
the
primary
indicator
of
operating performance.  Our calculations of FFO may not be comparable to
FFO reported by other REITs that do not define the term in accordance with
the NAREIT definition or that interpret that definition differently than we do.
Gross Investment:
We
define
Gross
Investment
as
our
total
investment
in
a
property
which
includes land, building, improvements, equipment as well as any other
identifiable
assets
included
in
the
caption
Other
Assets
on
our
balance
sheets. Items classified in Other Assets generally pertain to our medical office
buildings and may include such things as tenant improvements, leasing
commissions, above/(below) market lease value, lease in place value and
other items.
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.

18
March 31, 2008—
INVESTMENTS & DISPOSITIONS

19
March 31, 2008—
1    Quarter 2008 Investments
st
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
14
215
10
22,000
$      
102,000
$         
9.3%
Skilled nursing facilities
-
-
-
-
-
$                  
0.0%
Continuing care retirement communities
-
-
-
-
-
$                  
0.0%
Total senior housing and long-term care
14
215
10
22,000
102,000
$         
9.3%
Medical office buildings
1
-
28,157
5
2,000
71
$                   
7.4%
Total acquisitions
15
215
28,157
24,000
9.1%
Capital expenditures
-
-
-
9,000
Total investments
15
215
28,157
33,000
Loans
Assisted and independent living facilities
-
-
-
-
-
$                  
0.0%
Skilled nursing facilities
-
-
-
-
-
$                  
0.0%
Total senior housing and long-term care
-
-
-
-
-
$                  
0.0%
Other loans
30,000
7.3%
Total loans
30,000
7.3%
Total Consolidated
Assisted and independent living facilities
14
215
10
22,000
102,000
$         
9.3%
Skilled nursing facilities
-
-
-
-
-
$                  
0.0%
Continuing care retirement communities
-
-
-
-
-
$                  
0.0%
Total senior housing and long-term care
14
215
10
22,000
102,000
$         
9.3%
Other loans
30,000
7.3%
Medical office buildings
1
-
28,157
2,000
71
$                   
7.4%
Total acquisitions
15
215
28,157
54,000
8.1%
Capital expenditures
-
-
-
9,000
Total investments
15
215
28,157
63,000
Unconsolidated Joint Venture
Assisted and independent living facilities
-
-
-
-
-
$                  
0.0%
Skilled nursing facilities
-
-
-
-
-
$                  
0.0%
Total acquisitions
-
-
-
-
-
$                  
0.0%
Capital expenditures
-
-
2,000
Total investments
-
-
2,000
Total Investments
Assisted and independent living facilities
14
215
10
22,000
102,000
$         
9.3%
Skilled nursing facilities
-
-
-
-
-
$                  
0.0%
Continuing care retirement communities
-
-
-
-
-
$                  
0.0%
Total senior housing and long-term care
14
215
10
22,000
102,000
$         
9.3%
Medical office buildings
1
-
28,157
2,000
71
$                   
7.4%
Total real estate acquisitions
15
215
28,157
24,000
9.1%
Total loans
-
-
-
30,000
7.3%
Total acquisitions
15
215
28,157
54,000
8.1%
Capital expenditures
-
-
-
11,000
Total investments
15
215
28,157
65,000
$      
5
5

20
March 31, 2008—
ALF ACQUISITION | Wisconsin Portfolio (January 2008)
Purchase Price: $13M
Price per Unit: $98
Lease: Triple-Net, NHP
Ownership: 100% NHP
Average Age: 8 years
No. of Facilities: 10
Facility Type: ALF
EBITDARM coverage: 1.7x
Occupancy: 92%
Key Stats
Wisconsin
Portfolio Location

21
March 31, 2008—
ALF
ACQUISITION
|
Southern Wisconsin Portfolio (February 2008)
Purchase Price: $9M
Price per unit: $108
Lease: Triple-Net, NHP
Ownership: 100% NHP
Average Age: 10 years
No. of Facilities: 4
Facility Type: ALF
EBITDARM Coverage: 1.4x
Occupancy: 96%
Key Stats
Southern Wisconsin
Portfolio Location

22
March 31, 2008—
Expected Dispositions
Investment
Actual
Full Year
Gross
Required at 8.5%
% Financing
Revenue
Revenue
Proceeds
Gain
Assumed Yield
From Proceeds
For the First Quarter 2008
Purchase options
1,488,000
$   
1,525,000
$      
18,500,000
$        
11,066,000
$   
17,941,000
$   
103%
Loan payoffs
954,000
1,023,000
9,035,000
89,000
12,035,000
75%
2,442,000
$   
2,548,000
$      
27,535,000
$        
11,155,000
$   
29,976,000
$   
92%
Projected for the Remainder of 2008
Certain
[A]
Purchase options
812,000
$      
1,658,000
$      
13,869,000
$        
7,276,000
$     
19,506,000
71%
Strategic asset sales
13,601,000
18,148,000
305,000,000
134,583,000
213,341,000
143%
Total certain
14,413,000
$ 
19,806,000
$    
318,869,000
$      
141,859,000
$ 
232,847,000
$ 
137%
High
[B]
Purchase options
931,000
$      
2,026,000
$      
20,250,000
$        
7,276,000
$     
23,835,000
85%
Loan payoffs*
1,198,000
2,684,000
23,080,000
9,902,000
31,576,000
73%
Asset recycling
-
239,000
1,400,000
-
2,812,000
50%
Lease restructuring
212,000
365,000
-
-
4,294,000
Total high
2,341,000
$   
5,314,000
$      
44,730,000
$        
17,178,000
$   
62,517,000
$   
72%
Total Actual & Projected 2008
Total actual
2,442,000
$   
2,548,000
$      
27,535,000
$        
11,155,000
$   
29,976,000
$   
92%
Total certain
14,413,000
$ 
19,806,000
$    
318,869,000
$      
141,859,000
$ 
232,847,000
$ 
137%
Total high
2,341,000
5,314,000
44,730,000
17,178,000
62,517,000
72%
19,196,000
$ 
27,668,000
$    
391,134,000
$      
170,192,000
$ 
325,340,000
$ 
120%
*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

23
March 31, 2008—
Forward Capital Commitments | Acquisition Obligations, Capital Expenditures & Expansions
Operator/Manager
Est. Take Down
Beds/Units/SQFT
Property Type
Amount ($000s)
Est. NOI ($000s)
Initial Yield
[A]
PMB -
Santa Clarita, CA 
Apr 2008
78,164
MOB
$                    35,394
$               2,236
6.3%
[A]
PMB -
Lynwood, CA
Apr 2008
54,246
MOB
19,224
$               1,208
6.3%
[A]
PMB -
Castro Valley, CA
Apr 2008
19,070
MOB
7,742
$                  487
6.3%
[A]
PMB -
Burbank, CA
Apr 2008
69,620
MOB
34,921
$               2,113
6.1%
[A]
PMB -
San Gabriel, CA
Apr 2008
58,249
MOB
21,534
$               1,353
6.3%
[A]
PMB -
Torrance, CA
Apr 2008
58,634
MOB
13,823
$                  836
6.1%
[B]
PMB -
Henderson, NV
May 2008
84,666
MOB
26,713
$               1,736
6.5%
Nexion
-
Lancaster, TX
Jun 2008
120
SNF
6,360
$                  620
9.8%
Southwest LTC -
Marshall, TX
Jun 2008
125
SNF
6,400
$                  656
10.3%
PMB -
Hillsboro, OR
Jun 2008
104,856
MOB
32,979
$               2,073
6.3%
PMB -
Poway, CA
Jun 2008
172,000
MOB
90,495
$               5,264
5.8%
PMB -
Chula Vista, CA
Nov 2008
67,000
MOB
22,738
$               1,429
6.3%
PMB -
Mission Viejo, CA
Dec 2008
136,732
MOB
96,380
$               5,606
5.8%
PMB -
Reno, NV (1)
Dec 2008
60,953
MOB
16,808
$               1,056
6.3%
PMB -
Reno, NV (2)
Dec 2008
91,937
MOB
21,884
$               1,375
6.3%
PMB -
Honolulu, HI
Dec 2008
92,650
MOB
28,281
$               1,975
7.0%
2008 Total
$                  481,676
$             30,024
6.2%
PMB -
Burbank, CA
Jul 2009
93,772
MOB
60,432
$               3,399
5.6%
PMB -
Orange, CA
Jul 2009
125,970
MOB
88,570
$               5,035
5.7%
PMB -
Pasadena, CA
Jan 2010
183,652
MOB
105,480
$               6,093
5.8%
PMB -
Gilbert, AZ
Jun 2010
63,973
MOB
24,555
$               1,463
6.0%
Willowcreek
-
Hillsboro, OR
Jun 2014
230
ALF
59,000
$               4,720
8.0%
Remaining Total
$                  338,037
$             20,710
6.1%
$                  819,712
$             50,734
6.2%
Original
Amount Funded
Remaining
Additional
Avg. Yield on
Commitment
To Date
Commitment
NOI
Funded Amount
NHP Consolidated
173,953
$              
35,521
$                 
$                  138,432
$               3,126
8.8%
Unconsolidated Joint Venture
23,917
$                 
1,716
$                   
$                    22,201
$                   146
8.5%
Combined
Expansion,
Renovation
&
Capex
Total
$             197,870
$               37,237
$                  160,633
$               3,272
8.8%
NHP Consolidated Acquisition Obligations
NHP Consolidated Total Acquisition Obligations
Expansion, Renovation & Capital Expenditures
[A] First tranche of Pacific Medical Buildings transaction closed on April 1, 2008
[B] Pacific Medical Buildings MOB transaction closed on May 1, 2008

24
March 31, 2008—
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
2008
1,379
$      
3
1,168
$     
2
-
$         
-
-
$         
-
2,547
$      
0%
2009
343
5
4,091
8
-
-
-
-
4,434
2%
13
5
2010
4,575
6
8,322
18
-
-
-
-
12,897
5%
24
2011
-
-
8,681
21
-
-
-
-
8,681
3%
21
2012
7,586
8
3,255
7
2,062
2
-
-
12,903
5%
17
2013
11,499
11
2,418
5
363
1
-
-
14,280
5%
17
2014
8,346
12
1,077
3
4,872
3
-
-
14,295
5%
18
2015
1,756
4
3,627
5
-
-
4,952
2
10,335
4%
11
2016
10,614
10
15,724
32
-
-
2,505
5
28,843
10%
47
2017
2,510
9
5,029
15
-
-
-
-
7,539
3%
24
Thereafter
122,217
*
205
*
28,852
46
4,103
4
4,083
6
159,255
58%
261
170,825
$ 
273
82,244
$  
162
11,400
$  
10
11,540
$   
13
276,009
$ 
100%
458
* The above amounts include $16,149 of rent on the 23 Emeritus facilities sold on April 2, 2008
Minimum
Number of
Minimum
Number of
Minimum
Number of
Minimum
Percent
Number of
Principal
Percent
Number of
Year
Rent
Facilities
Rent
Facilities
Rent
Facilities
Rent
of Total
Facilities
Payments
of Total
Facilities
2008
-
$          
-
-
$        
-
-
$        
-
-
$          
0%
-
29,058
$    
21%
7
2009
-
-
-
-
-
-
-
0%
-
39,597
29%
11
2010
-
-
-
-
-
-
-
0%
-
14,745
11%
3
2011
-
-
-
-
-
-
-
0%
-
658
1%
-
2012
5,643
6
-
-
-
-
5,643
13%
6
715
1%
-
2013
-
-
-
-
-
-
-
0%
-
9,277
7%
-
2014
-
-
-
-
-
-
-
0%
-
842
1%
-
2015
-
-
-
-
-
-
-
0%
-
3,036
2%
1
2016
1,262
1
-
-
-
-
1,262
3%
1
9,758
7%
2
2017
-
-
-
-
-
-
-
0%
-
578
0%
-
Thereafter
13,316
12
20,928
14
2,480
1
36,724
84%
27
27,579
20%
4
20,221
$   
19
20,928
$  
14
2,480
$    
1
43,629
$   
100%
34
135,843
$ 
100%
28
Assisted and Independent
Consolidated
Skilled Nursing
Total JV
Continuing Care
Mortgage Loans Receivable
Consolidated Lease Expirations
Assisted and Independent
Unconsolidated JV Lease Expirations
Skilled Nursing
Continuing Care
Consolidated Triple-Net
Other Triple Net

25
March 31, 2008—
PORTFOLIO OVERVIEW

26
March 31, 2008—
Portfolio Summary
Gross investment, NOI and security deposits in thousands
Building
Investment
Percentage of
Percentage
Number of
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
250
17,694
1,682,715
$    
95,000
$       
50%
42,478
$          
52%
Skilled nursing facilities
162
18,190
847,486
47,000
$       
25%
22,026
27%
Continuing care retirement communities
10
1,952
124,265
64,000
$       
4%
3,007
4%
Specialty hospitals
7
303
70,585
233,000
$     
2%
1,968
2%
Total senior housing and long-term care
429
38,139
2,725,051
71,000
$       
81%
69,479
85%
Triple-net medical office buildings
6
266,483
55,396
208
$            
1%
1,037
1%
Total triple-net
435
38,139
266,483
2,780,447
82%
70,516
86%
Multi-tenant medical office buildings
51
2,142,693
331,646
155
$            
10%
6,066
8%
Total owned
486
38,139
2,409,176
3,112,093
92%
76,582
94%
Mortgage Loans Receivable
Assisted and independent living facilities
9
668
47,555
71,000
$       
1%
1,434
2%
Skilled nursing facilities
19
2,675
55,909
21,000
$       
2%
1,995
2%
Continuing care retirement communities
-
180
9,127
51,000
$       
0%
187
0%
Total mortgage loans receivable
28
3,523
112,591
32,000
$       
3%
3,616
4%
Other Income
1,651
2%
Assets Held for Sale
23
1,634
185,879
5%
Total Consolidated Portfolio
537
43,296
2,409,176
3,410,563
$    
100%
81,849
$          
100%
Consolidated Portfolio by Type
Assisted and independent living facilities
259
18,362
1,730,270
$    
94,000
$       
51%
43,912
$          
54%
Skilled nursing facilities
181
20,865
903,395
43,000
$       
27%
24,021
29%
Continuing care retirement communities
10
2,132
133,392
63,000
$       
4%
3,194
4%
Specialty hospitals
7
303
70,585
233,000
$     
2%
1,968
2%
Total senior housing and long-term care
457
41,662
2,837,642
68,000
$       
84%
73,095
89%
Medical office buildings
57
2,409,176
387,042
161
$            
11%
7,103
9%
Total owned and mortgage loans receivable
514
41,662
2,409,176
3,224,684
95%
80,198
98%
Other Income
1,651
2%
Assets held for sale
23
1,634
185,879
5%
Total consolidated
537
43,296
2,409,176
3,410,563
100%
81,849
100%
Unconsolidated JV Ownership
Assisted and independent living facilities
19
1,806
250,726
139,000
$     
47%
5,323
47%
Skilled nursing facilities
14
1,884
252,735
134,000
$     
47%
5,283
47%
Continuing care retirement communities
1
148
29,660
200,000
$     
6%
622
6%
Total JV owned
34
3,838
533,121
139,000
$     
100%
11,228
100%
Other Income
26
0%
Total JV
11,254
100%
Total Portfolio
571
47,134
2,409,176
3,943,684
$    
93,103
$          
* Multi-tenant medical office building gross investment includes
77,439
$     
of amounts classified as other assets
Triple-Net Leased Security Information
JV
JV
Owned
Mortgages
Total
Owned
Owned
Mortgages
Total
Owned
Bank letters of credit
53,599
$          
2,228
$       
55,827
$     
9,900
$      
Master Leases
84%
100%
Cash deposits
21,854
850
22,704
81
Property Tax
70%
46%
69%
74%
75,453
$          
3,078
$       
78,531
$     
9,981
$      
Cap Ex
48%
14%
46%
59%
Consolidated
Percentage with Impounds
Security Deposits
Consolidated

27
March 31, 2008—
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
250
12
1,682,715
$    
160,663
$        
9.5%
84.9%
1.28x
Skilled nursing facilities
162
28
847,486
89,307
10.5%
83.6%
1.95x
Continuing care retirement communities
10
24
124,265
12,071
9.7%
84.6%
1.59x
Specialty hospitals
7
16
70,585
7,858
11.1%
81.1%
2.38x
Total senior housing and long-term care
429
18
2,725,051
269,898
9.9%
84.2%
1.55x
Triple-net medical office buildings
6
9
55,396
4,150
7.5%
91.1%
Total triple-net
435
2,780,447
274,048
9.9%
Multi-tenant medical office buildings
51
17
331,646
24,455
7.4%
90.7%
Total owned
486
17
3,112,093
298,503
9.6%
Mortgage Loans Receivable
Assisted and independent living facilities
9
12
47,555
5,380
11.3%
94.2%
1.46x
Skilled nursing facilities
19
34
55,909
7,590
13.6%
85.1%
2.23x
Continuing care retirement communities
-
36
9,127
728
8.0%
96.5%
3.29x
Total mortgage loans receivable
28
25
112,591
13,698
12.2%
87.0%
1.98x
Assets Held for Sale
23
10
185,879
18,148
9.8%
91.0%
1.46x
Total NHP
Consolidated Portfolio
537
17
3,410,563
$    
330,348
$        
9.7%
84.0%
1.57x
Consolidated Portfolio by Type
Assisted and independent living facilities
259
12
1,730,270
$    
166,043
$        
9.6%
85.0%
1.28x
Skilled nursing facilities
181
28
903,395
96,897
10.7%
83.7%
1.97x
Continuing care retirement communities
10
25
133,392
12,799
9.6%
85.6%
1.68x
Specialty hospitals
7
16
70,585
7,858
11.1%
81.1%
2.38x
Total senior housing and long-term care
457
18
2,837,642
283,596
10.0%
84.4%
1.57x
Medical Office Buildings
57
15
387,042
28,605
7.4%
90.3%
Assets held for sale
23
10
185,879
18,148
9.8%
91.0%
1.46x
Total consolidated
537
17
3,410,563
330,348
9.7%
Unconsolidated JV Ownership
Assisted and independent living facilities
19
12
250,726
21,091
8.4%
89.0%
1.23x
Skilled nursing facilities
14
19
252,735
21,008
8.3%
91.4%
1.77x
Continuing care retirement communities
1
11
29,660
2,480
8.4%
91.6%
1.59x
Total JV owned
34
15
533,121
44,578
8.4%
90.2%
1.51x
Total Portfolio
571
17
3,943,684
$    
374,927
$        
9.5%
84.3%
1.56x
* Medical office building cost per square foot and gross investment reflects total purchase price including amounts classified as other assets

28
March 31, 2008—
Portfolio Performance Summary (2)
Independent
and
Assisted Living
Private Pay
71%
Medicaid
19%
Medicare
10%
Top 5   = 41%
Top 10 = 57%
Top 15 = 66%
Asset Type
Pay Source
Locations
Tenant/Operator
56%
Skilled Nursing
27%
Other
6%
MOBs
11%
WA
WI
(7%)
MA
(7%)
(4%)
CA
(9%)
TX
(15%)
[A] Assumes sale of Emeritus portfolio on April 2, 2008
[A]
[A]

29
March 31, 2008—
Portfolio Performance Summary | Asset Class Composition Trends
62%
61%
62%
63%
56%
56%
30%
30%
29%
28%
27%
27%
2%
2%
2%
2%
11%
11%
6%
7%
7%
7%
6%
6%
4Q06
1Q07
2Q07
3Q07
4Q07
1Q08
ALF
SNF
MOB
Other

30
March 31, 2008—
Portfolio Performance Summary | Private Pay Composition Trends
65%
68%
71%
71%
71%
71%
23%
21%
18%
18%
19%
19%
12%
11%
11%
11%
10%
10%
4Q06
1Q07
2Q07
3Q07
4Q07
1Q08
Private
Medicaid
Medicare

31
March 31, 2008—
50%
48%
49%
49%
46%
41%
4Q06
1Q07
2Q07
3Q07
4Q07
1Q08
Top 5
Top 10
Top 15
Portfolio Performance Summary | Top Tenant Concentration Trends
67%
65%
65%
64%
61%
57%
76%
75%
73%
71%
69%
66%

32
March 31, 2008—
Consolidated Portfolio Performance by Asset Type (excluding MOBs)
* Excludes Emeritus portfolio assets sold on April 2, 2008
MAR 2008
DEC 2007
Q/Q Chg
MAR 2007
Y/Y Chg
MAR 2008
DEC 2007
MAR 2007
Assisted and independent living
Annualized Facility Revenue ($000s)
515,602
$      
508,324
$     
1.4%
484,865
$      
6.3%
593,719
$      
579,710
$      
505,735
$      
Occupancy
85.6%
87.2%
-1.6%
86.7%
-1.2%
85.0%
86.9%
87.4%
Monthly revenue per occupied bed/unit
3,394
$          
3,065
$         
10.7%
3,153
$          
7.6%
3,393
$          
2,678
$          
2,602
$          
Annualized Facility EBITDARM ($000s)
191,094
$      
188,510
$     
1.4%
181,785
$      
5.1%
212,825
$      
210,027
$      
189,905
$      
Facility EBITDARM %
37.1%
37.1%
0.0%
37.5%
-0.4%
35.8%
36.2%
37.6%
NHP Annualized Cash Rent ($000s)
145,212
$      
143,737
$     
1.0%
140,316
$      
3.5%
166,043
$      
163,662
$      
146,311
$      
Facility EBITDARM coverage
1.32x
1.31x
0.3%
1.30x
1.6%
1.28x
1.28x
1.30x
Facility EBITDAR coverage
1.14x
1.13x
0.3%
1.12x
1.4%
1.10x
1.11x
1.13x
Facility EBITDAR - Capex coverage
1.08x
1.07x
0.1%
1.06x
1.4%
1.04x
1.04x
1.06x
Skilled nursing facilities
Annualized Facility Revenues ($000s)
973,153
$      
961,099
$     
1.3%
946,034
$      
2.9%
1,185,186
$   
1,146,494
$   
965,314
$      
Occupancy
83.1%
83.1%
0.0%
82.1%
1.0%
83.7%
83.5%
81.6%
Monthly revenue per occupied bed/unit
6,166
            
5,682
           
8.5%
6,053
            
1.9%
6,397
            
5,638
            
6,035
            
Q-Mix (Private + Medicare)
43.9%
42.8%
1.1%
41.0%
3.0%
43.7%
41.9%
40.3%
Annualized Facility EBITDARM ($000s)
157,194
$      
154,383
$     
1.8%
148,504
$      
5.9%
191,343
$      
185,513
$      
151,588
$      
Facility EBITDARM %
16.2%
16.1%
0.1%
15.7%
0.5%
16.1%
16.2%
15.7%
NHP Annualized Cash Rent ($000s)
80,824
$        
80,465
$       
0.4%
79,564
$        
1.6%
96,897
$        
96,256
$        
80,848
$        
Facility EBITDARM coverage
1.94x
1.92x
1.4%
1.87x
4.2%
1.97x
1.93x
1.87x
Facility EBITDAR coverage
1.34x
1.32x
1.6%
1.27x
5.6%
1.36x
1.33x
1.28x
Facility EBITDAR - Capex coverage
1.25x
1.23x
1.7%
1.18x
6.1%
1.27x
1.24x
1.18x
SAME PROPERTY (PERFORMANCE)
TOTAL

33
March 31, 2008—
Consolidated Portfolio Performance (excluding MOBs )
MAR 2008
DEC 2007
Q/Q Chg
MAR 2007
Y/Y Chg
MAR 2008
DEC 2007
MAR 2007
NHP Consolidated Portfolio
(excluding MOBs)
Annualized Facility Revenue ($000s)
1,631,999
$  
1,610,112
$ 
1.4%
1,565,467
$  
4.2%
1,957,167
$  
1,901,592
$  
1,605,617
$  
Occupancy
84.4%
85.1%
-0.7%
84.4%
0.0%
84.4%
85.2%
75.8%
Monthly revenue per occupied bed/unit
5,010
$         
4,577
$        
9.5%
4,805
4.3%
5,104
4,279
4,321
Annualized Facility EBITDARM ($000s)
382,334
$     
376,485
$    
1.6%
361,910
$     
5.6%
444,406
$     
434,960
$     
373,114
$     
Facility EBITDARM %
23.4%
23.4%
0.0%
23.1%
0.3%
22.7%
22.9%
23.2%
Total NHP Annualized Cash Rent ($000s)
242,584
$     
241,337
$    
0.5%
235,006
$     
3.2%
283,596
$     
280,619
$     
242,281
$     
NHP Rent (Payor
Mix)
Private
69.2%
71.7%
-2.5%
68.3%
0.9%
68.3%
70.8%
68.8%
Medicare
10.8%
9.9%
0.9%
11.0%
-0.2%
11.1%
10.2%
10.8%
Medicaid
19.9%
18.3%
1.6%
20.6%
-0.7%
20.4%
18.8%
20.3%
Other
0.2%
0.2%
0.0%
0.2%
0.0%
0.2%
0.2%
0.1%
Total NHP Annualized Cash Rent
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
Facility EBITDARM coverage
1.58x
1.56x
0.7%
1.54x
2.4%
1.57x
1.55x
1.54x
Facility EBITDAR coverage
1.24x
1.23x
0.7%
1.21x
2.8%
1.22x
1.21x
1.21x
Facility EBITDAR -
Capex
coverage
1.17x
1.16x
0.6%
1.13x
2.9%
1.15x
1.14x
1.14x
Total
Portfolio
|
Facility
Payor
Mix
MAR 2008
DEC 2007
MAR 2007
MAR 2008
DEC 2007
MAR 2007
MAR 2008
DEC 2007
MAR 2007
Private
99.0%
98.9%
98.9%
16.5%
16.5%
14.7%
49.1%
50.8%
53.3%
Medicare
0.1%
0.1%
0.3%
27.1%
27.1%
27.6%
17.7%
18.3%
19.2%
Medicaid
0.8%
0.9%
0.8%
55.8%
55.8%
57.2%
32.8%
30.5%
27.2%
Other
0.0%
0.0%
0.0%
0.5%
0.6%
0.5%
0.4%
0.3%
0.3%
Total Tenant Revenue
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
Q-Mix (Private + Medicare)
99.1%
99.1%
99.2%
43.7%
43.6%
42.3%
66.8%
69.1%
72.5%
*
Excludes
assets
held
for
sale,
medical
office
buildings
and
JV
assets
ALF/ILF
SNF
Total
SAME PROPERTY (PERFORMANCE)
TOTAL

34
March 31, 2008—
Tenant Concentration
Gross investment and annualized cash rent in thousands
Number of
Number of
Beds/Units
Gross
Percent by
Annualized
Percent by
Average
Remaining
EBITDARM
Tenant Concentration
Facilities
Inservice
Investment
Investment
Cash Rent/NOI
Cash Rent
Age
Term
Coverage
1
Brookdale
Senior Living
[A]
96
5,619
464,195
$       
14.4%
50,795
$         
16.3%
13
14.4
1.49x
2
Hearthstone Senior Services
32
3,122
431,297
13.4%
35,774
11.5%
9
13.3
1.19x
3
Wingate Healthcare
19
2,516
240,103
7.5%
20,532
6.6%
19
11.7
1.70x
4
Senior Services of America
17
1,298
118,967
3.7%
10,736
3.4%
14
13.3
1.33x
5
Laureate Group
9
1,526
118,946
3.7%
9,893
3.2%
15
4.8
1.52x
Top 5
173
14,081
1,373,508
42.6%
127,730
40.9%
13
13.3
1.43x
6
Carillon Assisted Living
9
928
105,847
3.3%
8,676
2.8%
7
13.8
1.31x
7
Beverly Enterprises
28
3,112
103,414
3.2%
14,469
4.6%
31
6.2
2.12x
8
Atria Senior Living
12
1,906
92,259
2.9%
14,907
4.8%
30
12.2
1.18x
9
Magnolia Health Systems
18
1,505
76,773
2.4%
6,342
2.0%
29
18.8
1.88x
10
Emeritus Corporation
[A]
6
533
70,177
2.2%
6,187
2.0%
10
8.6
1.15x
Top 10
246
22,065
1,821,978
56.5%
178,311
57.1%
15
12.7
1.46x
11
Nexion
Health Management
18
2,019
56,220
1.7%
7,447
2.4%
27
4.6
2.00x
12
Primrose Retirement Associates
8
429
55,016
1.7%
4,436
1.4%
8
13.8
1.11x
13
Epic Group
7
892
52,364
1.6%
4,423
1.4%
35
8.1
2.06x
14
Trans Healthcare
7
1,062
46,676
1.5%
5,497
1.8%
40
2.0
0.74x
15
HEALTHSOUTH
[A]
2
120
45,645
1.4%
4,948
1.6%
17
5.9
1.13x
Top 15
288
26,587
2,077,899
64.4%
205,063
65.7%
17
11.9
1.46x
Other -
Senior Housing and
Long-Term Care Tenants
169
15,224
759,743
23.6%
78,533
25.2%
20
10.7
1.85x
Medical Office Buildings
57
387,042
12.0%
28,605
9.2%
15
Total
514
41,811
3,224,684
100.0%
312,201
100.0%
17
11.5
1.57x
Assets Held For Sale
23
1,634
185,879
18,148
Total NHP Consolidated Portfolio
537
43,445
3,410,563
$    
330,348
$       
* Performance metrics exclude assets held for sale and JV assets
[A] Public company tenant

35
March 31, 2008—
Geographic Performance Metrics
Gross investment and annualized cash rent in thousands
Number of
Medicaid as
Number of
Beds/Units
Gross
Percent by
Annualized
Percent by
Percent of
Facilities
Inservice
Investment
Investment
Cash Rent
Cash Rent
Cash Rent
[A]
1
Texas
58
10,917
451,532
$      
15.9%
42,863
$        
15.1%
3.6%
2
Massachusetts
19
2,535
214,485
7.6%
18,689
6.6%
2.3%
3
Wisconsin
49
2,757
210,472
7.4%
18,844
6.6%
1.2%
4
Washington
16
1,465
203,344
7.2%
11,422
4.0%
0.7%
5
California
26
2,603
183,130
6.5%
26,184
9.2%
1.3%
Top 5
168
20,277
1,262,963
44.5%
118,002
41.6%
9.1%
6
Tennessee
21
1,972
159,942
5.6%
13,001
4.6%
1.3%
7
Florida
26
2,425
153,857
5.4%
13,244
4.7%
1.6%
8
Ohio
19
1,673
129,202
4.6%
12,133
4.3%
1.2%
9
North Carolina
11
1,120
111,135
3.9%
9,372
3.3%
0.5%
10
Indiana
23
1,829
110,290
3.9%
9,616
3.4%
0.8%
Top 10
268
29,296
1,927,389
67.9%
175,368
61.8%
14.6%
11
Michigan
18
1,023
106,054
3.7%
9,848
3.5%
0.0%
12
New York
6
846
101,437
3.6%
9,773
3.5%
0.9%
13
Missouri
16
1,131
97,551
3.4%
5,382
1.9%
0.5%
14
Minnesota
13
889
63,951
2.3%
5,634
2.0%
0.8%
15
Arizona
7
704
60,805
2.1%
7,357
2.6%
0.3%
Top 15
328
33,889
2,357,186
83.1%
213,361
75.2%
17.0%
Other States
106
6,288
480,456
16.9%
70,236
24.8%
1.8%
Total
457
41,811
2,837,642
$   
100.0%
283,596
$      
100.0%
18.7%
Medical Office Buildings
57
387,042
28,605
Assets Held For Sale
23
185,879
18,148
Total NHP Consolidated Portfolio
537
3,410,563
$   
330,348
$      
* 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)

36
March 31, 2008—
Geographic Performance Metrics
Gross investment and annualized cash rent in thousands
Number of
Revenue 
Number of
Beds/Units
Gross
Annualized
EBITDARM
per occupied
Average
Remaining
% SNF by
Facilities
Inservice
Investment
Cash Rent
Coverage
bed/unit
Age
Term
Cash Rent
1
Texas
58
10,917
451,532
$        
42,863
$       
1.69x
2,730
$        
14
8.7
24.9%
2
Massachusetts
19
2,535
214,485
18,689
1.78x
7,533
23
11.3
81.6%
3
Wisconsin
49
2,757
210,472
18,844
1.50x
3,364
16
10.3
17.0%
4
Washington
16
1,465
203,344
11,422
2.09x
5,178
18
16.6
36.4%
5
California
26
2,603
183,130
26,184
1.26x
5,617
18
10.7
16.8%
Top 5
168
20,277
1,262,963
118,002
1.62x
4,088
17
11.5
31.9%
6
Tennessee
21
1,972
159,942
13,001
1.32x
4,099
15
9.3
23.8%
7
Florida
26
2,425
153,857
13,244
1.90x
5,211
18
10.3
20.7%
8
Ohio
19
1,673
129,202
12,133
1.10x
4,971
15
8.1
24.7%
9
North Carolina
11
1,120
111,135
9,372
1.47x
3,461
7
13.2
3.7%
10
Indiana
23
1,829
110,290
9,616
1.53x
4,417
23
16.7
65.2%
Top 10
268
29,296
1,927,389
175,368
1.57x
4,227
17
11.5
30.3%
11
Michigan
18
1,023
106,054
9,848
1.66x
6,646
10
12.2
5.1%
12
New York
6
846
101,437
9,773
1.35x
7,035
16
10.2
50.7%
13
Missouri
16
1,131
97,551
5,382
1.86x
4,790
12
6.6
98.5%
14
Minnesota
13
889
63,951
5,634
1.34x
4,425
24
10.9
40.9%
15
Arizona
7
704
60,805
7,357
1.25x
8,150
15
8.8
6.7%
Top 15
328
33,889
2,357,186
213,361
1.55x
3,272
16
10.9
31.3%
Other States
129
7,922
480,456
70,236
1.70x
5,002
18
8.6
22.1%
Total
457
41,811
2,837,642
$     
283,596
$     
1.57x
4,632
$        
17
-
29.0%
Medical Office Buildings
57
387,042
28,605
15
Assets Held For Sale
23
185,879
18,148
10
Total NHP Consolidated Portfolio
537
3,410,563
$     
330,348
$     
17
* Performance metrics exclude assets held for sale, medical office buildings and JV assets
Note:
Lease
terms
for
NHP
facilties
generally
are
between
ten
and
fifteen
years
with
renewal
options,
if
exercised,
that
add
ten
to
fifteen
additional
years.
In
general,
NHP
receives
contractual
rent
escalators
in
the
range
of
1.5%
to
2.5%
for
skilled
nursing
assets
and
2.0%
to
3.0%
for
assisted
living
assets

37
March 31, 2008—
Unconsolidated JV Portfolio Performance Metrics
Assisted and
Skilled
Total
Independent Living
Nursing
Portfolio
MAR 2008
MAR 2008
MAR 2008
Unconsolidated JV Portfolio
Annualized Facility Revenue ($000s)
72,827
$                          
153,754
$                        
239,810
$                        
Occupancy
89.0%
91.4%
90.2%
Monthly revenue per occupied bed/unit
4,076
$                            
9,011
$                            
6,579
$                            
Q-Mix (Private + Medicare)
90.2%
52.3%
66.4%
Annualized Facility EBITDARM ($000s)
25,974
$                          
37,240
$                          
67,162
$                          
Facility EBITDARM %
35.7%
24.2%
28.0%
Total JV Annualized Cash Rent ($000s)
21,091
21,008
44,578
JV Rent (Payor
Mix)
Private
96.6%
32.0%
64.8%
Medicare
1.9%
27.4%
15.4%
Medicaid
1.5%
40.6%
19.9%
Other
0.0%
0.0%
0.0%
Total JV Annualized Cash Rent
100.0%
100.0%
100.0%
Facility EBITDARM coverage
1.23x
1.77x
1.51x
Facility EBITDAR coverage
1.06x
1.41x
1.24x
Facility EBITDAR -
Capex
coverage
1.01x
1.38x
1.20x

38
March 31, 2008—
Medical Office Building Portfolio Performance Metrics
Gross investment dollars in thousands
Gross
Number of
Gross
Investment
Percent
Average
Rentable
Ownership
Facilities
Investment
per SQFT
On Campus
Age
SQFT
Current Year
Prior Year
Change
BROE I  -
90%
20
57,176
$      
76
$            
60.0%
20
750,440
85.8%
81.0%
4.8%
BROE II -
95%
16
94,070
168
100.0%
15
558,707
91.9%
McShane
-
95%
7
48,479
120
57.1%
16
404,227
88.0%
NHP Multi-Tenant -
100%
8
131,921
309
50.0%
16
426,966
97.7%
NHP Triple-Net -
100%
6
55,396
208
16.7%
9
265,784
91.1%
Total MOB Portfolio
57
387,042
$    
161
$           
64.9%
15
2,406,124
90.3%
Current Year
Prior Year
% Change
Current Year
Prior Year
% Change
Current Year
Prior Year
Change
BROE I  -
90%
11,052
$        
11,069
$      
-0.2%
5,650
$          
5,170
$        
9.3%
51.1%
46.7%
4.4%
BROE II -
95%
11,895
6,475
54.4%
McShane
-
95%
6,797
4,192
61.7%
NHP Multi-Tenant -
100%
12,252
8,138
66.4%
NHP Triple-Net -
100%
4,150
4,150
Total MOB Portfolio
46,146
$        
28,605
$        
58.2%
Gross 
Building
Number of
Gross
Percent by
Investment
Square
Percent by
MOBs
by state
Facilities
Investment
Investment
per SQFT
Feet
Square Feet
1
Washington
7
118,364
$    
30.6%
323
$             
366,483
15.2%
2
Illinois
12
64,597
16.7%
169
383,058
15.9%
3
Missouri
7
48,479
12.5%
120
404,227
16.8%
4
Louisiana
8
36,627
9.5%
95
384,588
16.0%
5
Texas
7
32,059
8.3%
110
291,100
12.1%
Top 5
41
300,126
77.5%
164
1,829,456
76.0%
6
South Carolina
2
17,469
4.5%
159
109,704
4.6%
7
Alabama
1
16,713
4.3%
273
61,219
2.5%
8
Indiana
4
15,718
4.1%
282
55,814
2.3%
9
Ohio
1
11,376
2.9%
170
66,776
2.8%
10
Georgia
3
9,803
2.5%
80
123,294
5.1%
Top 10
52
371,205
95.9%
165
2,246,263
93.4%
11
Florida
1
6,076
1.6%
163
37,266
1.6%
12
Virginia
3
5,233
1.4%
80
65,315
2.7%
13
Tennessee
1
4,528
1.2%
79
57,280
2.4%
Medical Office Buildings
57
387,042
$    
100.0%
161
$             
2,406,124
100.0%
Annualized Revenue
Annualized Cash Rent/NOI
Operating Margin
Occupancy

39
March 31, 2008—
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.
We
use
EBITDAR
to
calculate
the
EBITDAR (cash flow) coverage for our portfolio. 
Facility EBITDAR Coverage:
Annualized EBITDAR divided by Annualized Cash Rent.  This ratio is a
measure of a facility’s ability to cover its cash rent obligations.  EBITDAR
Coverage of 1.0X would indicate the EBITDAR is just sufficient to pay the cash
rent.
The
higher
the
coverage,
the
better
able
a
facility
is
to
meet
its
rent
obligations.  This is the mid-range coverage calculation we utilize.
Facility EBITDARM:
Earnings before interest, taxes, depreciation, amortization, rent and
management fees 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
by
Annualized
Cash
Rent.
This
ratio
is
a
measure of a facility’s ability to cover its cash rent obligations assuming it
doesn’t have to pay its management fee.  EBITDARM Coverage of 1.0X
would indicate the EBITDARM is just sufficient to pay the cash rent.  The
higher the coverage, the better able a facility is to meet its rent obligations. 
This is the least restrictive coverage measure we utilize.
Facility
EBITDAR
-
Capex:
Earnings before interest, taxes, depreciation, amortization and rent less
minimum capital expenditures (capex) 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
we
utilize
to
calculate
EBITDAR
-
Capex.
All
facility
financial
information
was derived solely from information provided by our tenants and borrowers
and
we
have
not
verified
such
information.
We
use
EBITDAR
-
Capex
to
calculate
the
EBITDAR
–
Capex
(cash
flow
after
reserves
for
minimum
capex
requirements) coverage for our portfolio.
Facility
EBITDAR
-
Capex
Coverage:
Annualized
EBITDAR
-
Capex
divided
by
Annualized
Cash
Rent.
This
ratio
is
a measure of a facility’s ability to cover its cash rent obligations after it makes
the minimum capital expenditures required to maintain the facility.  EBITDAR
-
Capex
Coverage
of
1.0X
would
indicate
the
EBITDAR
-
Capex
is
just
sufficient to pay the cash rent.  The higher the coverage, the better able a
facility is to meet its rent obligations.  This is the most restrictive coverage
measure we utilize.
Facility Revenues:
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. 

40
March 31, 2008—
Portfolio Performance Measures Definitions (2)
Gross Investment:
We
define
Gross
Investment
as
our
total
investment
in
a
property
which
includes land, building, improvements, equipment as well as any other
identifiable assets included in the caption Other Assets on our balance sheets.
Items classified in Other Assets generally pertain to our medical office
buildings and may include such things as tenant improvements, leasing
commissions, above/(below) market lease value, lease in place value and
other items.
Monthly Revenue per Occupied Bed/Unit:
For our senior housing and long-term care portfolio, monthly revenue per
occupied bed or unit is derived by determining the 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 on a “net”
rent basis. NOI may then be
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
of
a
Tenant’s
private
and
medicare
revenues
as
a
percentage
of
total
revenues.
As
private
and
medicare
rates
are
generally
higher at long-term care facilities, Tenants can oftentimes improve margins
by
selectively
targeting
medicare
and
private-pay
residents.
As
such,
an
increase in the Q-Mix generally results in a corresponding increase in a
Tenant’s total revenues. 
Rentable Square Feet:
For our medical office building portfolio, rentable square feet represents the
area measured to the inside finished surface of the dominant portion of the
permanent outer building walls, excluding any major vertical penetrations of
the floor. An add-on or load factor is used to charge the tenant for a
percentage of the common areas, so that the total rentable square footage for
the building is equal to sum of each floor’s rentable area.
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.