Supplemental information package for the quarter ended March 31, 2009

March 31, 2009—

Disclaimer

Certain information contained in this release includes forward-looking

statements. Forward-looking statements include statements regarding

our expectations, beliefs, intentions, plans, objectives, goals,

strategies, future events or performance and underlying assumptions

and other statements which are not statements of historical facts.

These statements may be identified, without limitation, by the use of

forward-looking

terminology

such

“may,”

“will,”

“anticipates,”

“expects,”

“believes,”

“intends,”

“should”

or comparable terms or the

negative thereof.

These forward-looking statements involve risks and uncertainties that

could cause actual results to differ materially from those described in

the statements. Risks and uncertainties associated with our business

include

(without

limitation)

the

following:

deterioration

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 tenants for a significant percentage of our revenue; occupancy

levels

certain

facilities;

our

level

indebtedness;

changes

the

ratings of our debt securities; maintaining compliance with our debt

covenants; access

to the capital markets and the cost and availability

of capital; government regulations, including changes in the

reimbursement levels under the Medicare and Medicaid programs;

the general distress of the healthcare industry; increasing competition

in our business sector; the effect of economic and market conditions

and changes in interest rates; the amount and yield of any additional

investments; risks associated with acquisitions, including our ability to

identify

and

complete

favorable

transactions,

delays

failures

obtaining third party consents or approvals, the failure to achieve

perceived benefits, unexpected costs or liabilities and potential

litigation; the ability of our tenants to repay straight-line rent or loans

in future periods; the ability of our tenants to obtain and maintain

adequate liability and other insurance; our ability to attract new

tenants for certain facilities; our ability to sell certain facilities for their

book value; our ability to retain key personnel; potential liability under

environmental laws; the possibility that we could be required to

repurchase some of our senior notes; the rights and influence of

holders of our outstanding preferred stock; changes in or inadvertent

violations of tax laws and regulations and other factors that can affect

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 us pursuant to the safe

harbor established under the Private Securities Litigation Reform Act

1995

and

should

evaluated

the

context

these

factors.

disclaim any intent or obligation to update these forward-looking

statements.

March 31, 2009—

Contents

COMPANY FACT SHEET______________________________________________________________________

FINANCIAL RESULTS_________________________________________________________________________

Consolidated Statement of Operations

Reconciliation of Net Income to Funds From Operations (FFO)

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

Reconciliation of 2009 Net Income Guidance to Diluted FFO and Diluted FAD Guidance

Consolidated Balance Sheets

Other Assets

Capitalization

Debt Maturities and Debt Composition

Debt Covenants: Credit Facility & Bond Covenants

Interest and Fixed Charge Coverage

Unconsolidated Joint Venture Financial Statements

Financial Measures Definitions

INVESTMENTS & DISPOSITIONS________________________________________________________________

1st Quarter 2009 Investments

Expected Dispositions

Projected Funding Obligations through 2011

Lease Expirations and Mortgage Loans Receivable Principal Payments

PORTFOLIO OVERVIEW_____________________________________________________________________

Portfolio Summary

Consolidated Portfolio Performance Metrics—Same Store and Total

Tenant Benchmarks

Geographic Benchmarks

Unconsolidated JV Portfolio Performance Metrics

Medical Office Building Portfolio Performance Metrics

Portfolio Performance Measures Definitions

March 31, 2009—

Company Fact Sheet

REIT structure provides opportunity to invest directly in real estate and

indirectly in healthcare industry

Quality healthcare real estate portfolio

Long-term triple-net master leases with quality operators

Strong affiliations with premiere hospital systems in growing medical office

building markets

Senior housing care a vital component of U.S. economy

High dividend yield and high dividend coverage

Financial stability

Well positioned to take advantage of investment opportunities and to

conservatively grow earnings and dividends

NHP is one of the few healthcare REITs with investment grade ratings by Fitch,

Moody’s, and Standard & Poors.

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

publicly

traded

real

estate

investment

trust

(REIT)

that

invests

senior

housing

facilities, long-term care facilities and medical office buildings throughout the

United States. NHP generally acquires real estate and then leases the assets

under long-term triple-net master leases to senior housing and long-term care

operators

and

various

types

leases

multiple

tenants

the

case

medical

office buildings.

REIT

specializing

healthcare

real

estate,

NHP

provides

focused

investment strategy with a well diversified portfolio. NHP employs a conservative,

long-term approach to real estate investments with an experienced professional

management team having extensive operating, real estate and finance

backgrounds.

$4.3 billion in healthcare real estate

579 properties in 43 states

260

Assisted and Independent Living

186

Skilled Nursing

80 Medical Office Buildings

Other

36 Unconsolidated JV Facilities

Over 78 multi-facility tenants

Market Facts

Enterprise Value

$3.9 billion

Closing Price

$22.19

Market Capitalization

$2.3 billion

Dividend & Yield

$1.76 (7.9%)

52 week range

$18.13 –

$39.99

Shares & OP Units

105.1 million

Company Profile

Investor Highlights

Our Portfolio

(6%)

(12%)

(13%)

Credit Ratings

Fitch BBB (stable)

Moody’s Baa2 (stable)

S&P BBB-

(positive outlook)

as of March 31, 2009

March 31, 2009—

Consolidated Statement of Operations

In thousands, except per share data

2009

2008

Revenue:

Triple-net lease rent

74,263

69,073

Medical office building operating rent

16,653

10,930

90,916

80,003

Interest and other income

6,335

5,267

97,251

85,270

Expenses:

Interest and amortization of deferred financing costs

24,071

24,738

Depreciation and amortization

31,029

27,283

General and administrative

6,931

6,498

Medical office building operating expenses

6,834

4,864

68,865

63,383

Operating income

28,386

21,887

Income from unconsolidated joint ventures

1,013

1,053

Income from continuing operations

29,399

22,940

Discontinued operations:

Gains on sale of facilities, net

21,152

10,866

Income from discontinued operations

3,640

21,234

14,506

Net income

50,633

37,446

Net

(income)

loss

attributable

noncontrolling

interests

(27)

Three Months Ended March 31,

Net income attributable to NHP

50,606

37,455

Preferred stock dividends

(1,452)

(2,062)

Net income attributable to NHP common stockholders

49,154

35,393

Basic earnings per share (EPS):

Income from continuing operations attributable to NHP common stockholders

0.27

0.22

Discontinued operations attributable to NHP common stockholders

0.21

0.15

Net income attributable to NHP common stockholders

0.48

0.37

Diluted EPS:

Income from continuing operations attributable to NHP common stockholders

0.27

0.22

Discontinued operations attributable to NHP common stockholders

0.20

0.15

Net income attributable to NHP common stockholders

0.47

0.37

Weighted average shares outstanding for EPS:

Basic

102,355

95,274

Diluted

104,408

95,783

March 31, 2009—

(1)

Diluted weighted average shares outstanding includes the effect of all participating and non-participating share-based payment awards

which for us consists of stock options, restricted stock awards, restricted stock units and other share-based payment awards if the effect is

dilutive. The dilutive effect of all share-based payment awards is calculated using the treasury stock method. Additionally, our redeemable

OP units are included as if converted to common stock on a one-for-one basis.

Reconciliation of Net Income to Funds From Operations (FFO)

See Financial Measures Definitions

2009

2008

Net income to FFO:

Net income

50,633

37,446

Net

(income)

loss

attributable

noncontrolling

interests

(27)

Preferred stock dividends

(1,452)

(2,062)

Real estate related depreciation and amortization

30,808

28,589

Depreciation in income from unconsolidated joint ventures

1,307

1,115

Gains on sale of facilities, net

(21,152)

(10,866)

FFO available to NHP common stockholders

60,117

54,231

Series B preferred dividend add-back

1,452

2,062

Diluted FFO

61,569

56,293

Weighted average shares outstanding for diluted FFO:

Diluted weighted average shares outstanding (1)

104,451

95,783

Series B preferred stock add-back if not already converted

3,358

4,728

Fully diluted weighted average shares outstanding

107,809

100,511

Diluted per share amounts:

FFO

0.57

0.56

Dividends declared per common share

0.44

Diluted FFO payout ratio

77%

79%

Diluted FFO coverage

1.30

1.27

In thousands, except per share data

Three Months Ended March 31,

March 31, 2009—

Reconciliation

Net

Income

Funds

Available

for

Distribution

(FAD)

2009

2008

Net income to FAD:

Net income

50,633

37,446

Net

(income)

loss

attributable

noncontrolling

interests

(27)

Preferred stock dividends

(1,452)

(2,062)

Real estate related depreciation and amortization

30,808

28,589

Gains on sale of facilities, net

(21,152)

(10,866)

Straight-lined rent

(1,590)

(2,837)

Amortization of intangible assets and liabilities

(222)

(124)

Non-cash stock-based compensation expense

1,573

1,331

Deferred finance cost amortization

814

747

Lease commissions and tenant and capital improvements

(726)

(847)

NHP’s

share of FAD reconciling items from unconsolidated joint ventures:

Real estate related depreciation and amortization

1,307

1,115

Straight-lined rent

(12)

(11)

Deferred finance cost amortization

FAD available to NHP common stockholders

59,975

52,509

Series B preferred dividend add-back

1,452

2,062

Diluted FAD

61,427

54,571

Diluted weighted average shares outstanding (1)

104,451

95,783

Series B preferred stock add-back if not already converted

3,358

4,728

Fully diluted weighted average shares outstanding

107,809

100,511

Diluted per share amounts:

FAD

0.57

0.54

Dividends declared per common share

0.44

Diluted FAD payout ratio

77%

81%

Diluted FAD coverage

1.30

1.23

In thousands, except per share data

Three Months Ended March 31,

(1)

Diluted weighted average shares outstanding includes the effect of all participating and non-participating share-based payment awards which for us consists of stock

options, restricted stock awards, restricted stock units and other share-based payment awards if the effect is dilutive. The dilutive effect of all share-based payment

awards is calculated using the treasury stock method. Additionally, our redeemable OP units are included as if converted to common stock on a one-for-one basis.

Weighted average shares outstanding for diluted FAD:

See Financial Measures Definitions

March 31, 2009—

Reconciliation of 2009 Net Income Guidance to Recurring Diluted FFO and Recurring Diluted FAD Guidance

See Financial Measures Definitions

Low

High

Net income

160,828

164,978

Preferred stock dividends

(5,811)

Real estate related depreciation and amortization

117,036

Depreciation in income from unconsolidated joint ventures

5,112

Minority interest -

NHP/PMB

234

Gains on sale of facilities, net

(36,988)

FFO available to common stockholders

240,411

244,561

Series B preferred dividend add-back

5,811

Diluted FFO

246,222

250,372

Gain on extinguishment of debt, net

(4,650)

Recurring diluted FFO

241,572

245,722

Straight-lined rent

(6,356)

Amortization of intangible assets and liabilities

(640)

Non-cash stock-based compensation expense

7,112

Deferred finance cost amortization

3,234

Lease commissions and tenant and capital improvements

(5,608)

Unconsolidated joint ventures:

Straight-lined rent

(26)

Deferred finance cost amortization

Recurring diluted FAD

$ 239,372

$ 243,522

Recurring diluted FFO per share

2.22

2.26

Recurring diluted FAD per share

2.20

2.24

Weighted average shares outstanding for recurring diluted FFO and FAD:

Diluted weighted average shares outstanding (1)

105,240

Series B preferred stock conversion

3,375

Fully diluted weighted average shares outstanding

108,615

Guidance

In thousands, except per share data

Year Ended December 31, 2009

(1)

Diluted weighted average shares outstanding includes the effect of all participating and non-participating share-based payment awards which for us consists

of stock options, restricted stock awards, restricted stock units and other share-based payment awards if the effect is dilutive. The dilutive effect of all share-

based payment awards is calculated using the treasury stock method. Additionally, our redeemable OP units are included as if converted to common stock

on a one-for-one basis.

March 31, 2009—

Consolidated Balance Sheets

March 31,

December 31,

2009

2008

Assets

Investments in real estate:

Land

318,846

320,394

Buildings and improvements

3,070,629

3,079,819

3,389,475

3,400,213

Less accumulated depreciation

(512,674)

(490,112)

2,876,801

2,910,101

Mortgage loans receivable, net

116,975

112,399

Mortgage loan receivable from related party

47,500

Investments in unconsolidated joint ventures

50,096

54,299

Net real estate related investments

3,091,372

3,124,299

Cash and cash equivalents

80,285

82,250

Receivables, net

6,591

6,066

Asset held for sale

4,542

Intangible assets

108,428

109,434

Other assets

133,314

131,534

3,419,990

3,458,125

Liabilities and Equity

Unsecured senior credit facility

Senior notes

1,029,233

1,056,233

Notes and bonds payable

440,409

435,199

Accounts payable and accrued liabilities

124,112

144,566

Total liabilities

1,593,754

1,635,998

Redeemable OP unitholder

interests

56,096

56,778

Equity:

NHP stockholders' equity:

Series B convertible preferred stock

74,918

Common stock

10,248

10,228

Capital in excess of par value

1,791,155

1,786,193

Cumulative net income

1,607,495

1,556,889

Accumulated other comprehensive (loss) income

(1,826)

1,846

Cumulative dividends

(1,716,195)

(1,669,407)

Total NHP stockholders' equity

1,765,795

1,760,667

Noncontrolling

interests

4,345

4,682

Total equity

1,770,140

1,765,349

3,419,990

3,458,125

In thousands

March 31, 2009—

Capitalization

March 31, 2009

December 31, 2008

Debt

Unsecured senior credit facility

$ -

Senior notes

1,029,233

1,056,233

Notes and bonds payable

440,409

435,199

Consolidated debt

1,469,642

1,491,432

NHP's

share of unconsolidated debt

91,022

91,108

Total debt

1,560,664

1,582,540

Book Capitalization

Consolidated debt

1,469,642

1,491,432

Redeemable

unitholder

interests

56,096

56,778

Total equity

1,770,140

1,765,349

Consolidated book capitalization

3,295,878

3,313,559

Accumulated

depreciation and amortization

512,674

490,112

Consolidated

undepreciated

book

capitalization

3,808,552

3,803,671

NHP's

share of unconsolidated debt

91,022

91,108

NHP's

share of unconsolidated accum. depreciation and amortization

7,873

6,670

Total undepreciated

book capitalization

3,907,447

3,901,449

Enterprise Value

Price

Common stock

102,483

22.19

2,274,098

102,280

28.72

2,937,480

Limited partnership units

1,830

22.19

40,598

1,830

28.72

52,545

Series B preferred stock

749

97.30

72,896

749

126.00

94,397

Consolidated market equity capitalization

2,387,592

3,084,422

Consolidated debt

1,469,642

1,491,432

Consolidated enterprise value

3,857,234

4,575,854

NHP's

share of unconsolidated debt

91,022

91,108

Total enterprise value

3,948,256

4,666,962

Leverage Ratios

Consolidated debt to consolidated undepreciated

book capitalization

38.6%

39.2%

Total debt to total undepreciated

book capitalization

39.9%

40.6%

Consolidated debt to consolidated enterprise value

38.1%

32.6%

Total debt to total enterprise value

39.5%

33.9%

In thousands, except stock prices and ratios

March 31, 2009—

Debt Maturities and Debt Composition

Principal

Rate

Principal

Rate

Principal

Rate

Principal

Rate

Principal

Rate

Principal

Rate

2009

60,000

(1)

7.0%

60,000

7.0%

60,000

7.0%

2010

103,745

4.8%

103,745

4.8%

5,119

3.3%

108,864

4.7%

2011

339,040

6.5%

39,632

5.1%

378,672

6.4%

378,672

6.4%

2012

72,950

8.3%

52,182

6.9%

125,132

7.7%

14,000

6.0%

139,132

7.5%

2013

322,823

(2)

6.3%

40,132

6.0%

362,955

6.2%

362,955

6.2%

2014

22,590

6.0%

22,590

6.0%

25,616

5.8%

48,206

5.9%

2015

234,420

6.0%

60,591

5.7%

295,011

5.9%

34,028

5.9%

329,039

5.9%

2016

21,240

5.9%

21,240

5.9%

21,240

5.9%

2017

5.0%

2018

7,800

6.1%

7,800

6.1%

7,800

6.1%

Thereafter

92,399

5.1%

92,399

5.1%

12,259

6.4%

104,658

5.3%

Total

1,029,233

6.5%

440,409

5.5%

1,469,642

6.2%

91,022

5.8%

1,560,664

6.2%

Weighted average

maturity in years

3.6

7.7

4.8

7.5

5.0

Principal

Rate

% of Total

Principal

Rate

% of Total

Fixed rate debt

Senior notes

1,029,233

6.5%

65.9%

$ 1,056,233

6.5%

66.7%

Notes and bonds

331,324

6.1%

21.2%

339,110

6.1%

21.4%

NHP's

share of unconsolidated debt

85,903

5.9%

5.5%

85,960

6.0%

5.4%

Total fixed rate debt

1,446,460

6.4%

92.7%

1,481,303

6.4%

93.6%

Variable rate debt

Credit facility

Notes and bonds

109,085

3.7%

7.0%

96,089

5.6%

6.1%

NHP's

share of unconsolidated debt

5,119

3.3%

0.3%

5,148

6.0%

0.3%

Total variable rate debt

114,204

3.7%

7.3%

101,237

5.6%

6.4%

Total debt

1,560,664

6.2%

100.0%

1,582,540

6.3%

100.0%

(1) Includes

$55

million

notes

putable

October

2009,

2012,

2017

and

2027

with

final

maturity

2037

(2)

Includes

$23

million

notes

putable

July

2013,

2018,

2023

and

2028

with

final

maturity

2038

and

$30

million

notes

which

were

retired

April

2009

for

$25.4

million

Period

March 31, 2009

December 31, 2008

Debt Composition

NHP's

Share of

Unconsolidated Debt

Consolidated Debt

In thousands

Debt Maturities

Total Debt

Senior Notes

Notes and Bonds

Credit Facility

March 31, 2009—

Debt Covenants

Minimum

Maximum

Covenant

Requirement

Actual

Status

Credit Facility Covenants

Unsecured Debt to Unencumbered Asset Ratio

60%

30.6%

In Compliance

51%

of the maximum

Secured Indebtedness Ratio

0.30

0.13

In Compliance

43%

of the maximum

Fixed Charges Ratio

1.75

2.92

In Compliance

(A)

Total Liabilities to Capitalization Value

60%

36.7%

In Compliance

61%

of the maximum

Net Asset Value

820,000,000

2,687,080,000

In Compliance

(B)

Bond Covenants

Senior and Non-recourse Debt to Capital Base

225%

88.3%

In Compliance

39%

of the maximum

Senior

Debt

Tangible

Net

Worth

225%

61.8%

In Compliance

27%

of the maximum

Senior

Debt

Capital

Base

150%

61.8%

In Compliance

41%

of the maximum

Limitation on Secured Debt Under Bond Indenture

10%

0.7%

In Compliance

of the maximum

New Bond Covenants

Limitation on Secured Debt

40%

11.2%

In Compliance

28%

of the maximum

EBITDA

Interest

Expense

1.50

3.30

In Compliance

(C)

Total Indebtedness

60%

37.4%

In Compliance

62%

of the maximum

Unencumbered Assets to Unsecured Debt

150%

316.5%

In Compliance

(D)

(A) With our current EBITDA, we can increase total fixed charges

(interest expense, debt service and preferred dividends) by up to $79.5 million and stay in compliance.

(B)

With

our

current

asset

value,

can

increase

total

debt

$1.0

billion

and

stay

compliance.

(D) With our current unencumbered assets, we can increase total unsecured debt by up to $1.0 billion and stay in compliance.

March 31, 2009—

Interest and Fixed Charge Coverage

See Financial Measures Definitions

2009

2008

Reconciliation of Net Income to EBITDA:

Net

income

50,633

37,446

Net

(income)

loss

attributable

noncontrolling

interests

(27)

Interest and amortization of deferred financing costs in continuing operations

24,071

24,738

Interest and amortization of deferred financing costs in discontinued operations

998

Depreciation and amortization in continuing operations

31,029

27,283

Depreciation and amortization in discontinued operations

1,431

Consolidated EBITDA

105,800

91,905

NHP‘s share of EBITDA reconciling items from unconsolidated joint ventures:

Interest and amortization of deferred financing costs

1,328

1,214

Depreciation and amortization

1,307

1,115

Total EBITDA

108,435

94,234

Gains on sale of facilities, net

(21,152)

(10,866)

Adjusted Total EBITDA

87,283

83,368

Adjusted Consolidated EBITDA

84,648

81,039

Interest Expense:

Consolidated interest expense (including discontinued operations)

23,245

24,989

NHP's share of interest expense from unconsolidated joint ventures

1,307

1,195

Total interest expense

24,552

26,184

Fixed Charges:

Consolidated interest expense (including discontinued operations)

23,245

24,989

Preferred stock dividends

1,452

2,062

Consolidated fixed charges

24,697

27,051

NHP's

share of interest expense from unconsolidated joint ventures

1,307

1,195

Total fixed charges

26,004

28,246

Consolidated Adjusted Interest Coverage Ratio

3.64

3.24

Total Adjusted Interest Coverage Ratio

3.56

3.18

Consolidated Adjusted Fixed Charge Coverage Ratio

3.43

3.00

Total Adjusted Fixed Charge Coverage Ratio

3.36

2.95

In thousands

Three Months Ended March 31,

March 31, 2009—

Unconsolidated Joint Venture Financial Statements

In thousands

March 31, 2009

December 31, 2008

Assets

Land

38,892

Buildings and improvements

526,824

525,214

Gross real estate

565,716

564,106

Accumulated depreciation

(28,789)

(24,138)

Net real estate

536,927

539,968

Cash

4,014

3,216

Receivables

Other assets

5,739

5,964

Total assets

546,725

549,193

Liabilities and equity

Notes payable

343,613

343,842

Accounts payable and accrued liabilities

19,356

19,623

Total liabilities

362,969

363,465

Capital in excess of par value

Equity contributions

230,363

229,475

Distributions

(35,930)

(32,148)

Retained earnings

3,420

2,760

Other comprehensive income

(14,191)

(14,359)

Cumulative dividends

(3)

Total equity

183,756

185,728

Total liabilities and equity

546,725

549,193

NHP's investment in joint venture (1)

45,925

50,032

(1)

Excludes NHP's investment in PMB Real Estate Services LLC ("PMBRES") and PMB SB 399-401 East Highland LLC ("PMB SB"). NHP's

investment

PMBRES

was

$887,000

and

$967,000

March

31,

2009

and

December

31,

2008,

respectively.

NHP's

investment

PMB

SB was $3,300,000 at March 31, 2009 and December 31, 2008.

Balance Sheet

March 31, 2009—

In thousands

2009

2008

Revenues

Rent

11,576

11,228

Interest and other income

Total revenues

11,606

11,254

Expenses

Interest and amortization of deferred finance costs

5,139

4,854

Depreciation and amortization

4,651

4,460

General and administrative*

1,156

1,557

Total expenses

10,946

10,871

Net income

660

383

Preferred stock dividends

(3)

Net income available to joint venture members

657

383

NHP Income and FFO from Joint Venture

Share of net income

164

Management fee*

1,017

957

Income from joint venture (1)

1,181

1,053

Share of depreciation

1,163

1,115

FFO from joint venture

2,344

2,168

* NHP's

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

(1)

Excludes

NHP's

income/loss

from

PMBRES

and

PMB

SB.

NHP's

the

loss

from

PMBRES

was

$190,000

for

the

three

months

ended

March

31,

2009.

NHP's

the

income

from

PMB

was

$21,000

for

the

three

months

ended

March

31,

2009.

Income Statement

Three Months Ended March 31,

Unconsolidated Joint Venture Financial Statements (2)

March 31, 2009—

Financial Measures Definitions

Adjusted EBITDA:

We believe that Adjusted EBITDA is an important supplemental operating and

liquidity measure primarily because it is used in the calculation of the Adjusted

Interest Coverage Ratio and the Adjusted Fixed Charge Coverage Ratio and

we present it solely for the purpose of being used in those calculations.

Adjusted EBITDA is calculated by adding back any gains and losses on the

sale of real estate and any impairments to EBITDA for a given period. We

believe

Adjusted

EBITDA

most

useful

liquidity

measure

the

ratio

calculations noted above to enable investors to determine and compare a

company’s ability to meet its interest and Fixed Charges obligations. However,

the methodology for calculating 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

alternative

either

those

measures.

Our

calculation

Adjusted EBITDA may not be comparable to similar measures reported by

other companies.

Adjusted Fixed Charge Coverage Ratio:

We believe that the Adjusted Fixed Charge Coverage Ratio is an important

supplemental liquidity measure that reflects a company’s ability to meet its

interest and preferred dividend payment obligations and allows investors to

compare interest and dividend paying capabilities among different companies.

We calculate the Adjusted Fixed Charge Coverage Ratio by dividing Adjusted

EBITDA by Fixed Charges. In addition, credit rating agencies utilize similar

ratios

evaluating

the

credit

ratings

our

debt

instruments.

This

ratio’s

usefulness is limited by the same factors that limit the usefulness of the

components

Adjusted

EBITDA

and

Fixed

Charges.

Our

calculation

the

Adjusted Fixed Charge Coverage Ratio should not be considered an

alternative

the

ratio

earnings

fixed

charges

defined

Item

503(d)

Regulation S-K and it may not be comparable to similar ratios reported by

other companies.

Adjusted Interest Coverage Ratio:

We believe that the Adjusted Interest Coverage Ratio is an important

supplemental liquidity measure that reflects a company’s ability to meet its

interest payment obligations and allows investors to compare interest paying

capabilities among different companies. We calculate the Adjusted Interest

Coverage Ratio by dividing Adjusted EBITDA by interest expense (including

capitalized interest, if any). In addition, credit rating agencies utilize similar

ratios

evaluating

the

credit

ratings

our

debt

instruments.

This

ratio’s

usefulness is limited by the same factors that limit the usefulness of the

component Adjusted EBITDA. Our calculations of the Adjusted Interest

Coverage Ratio may not be comparable to similar ratios reported by other

companies.

EBITDA:

We believe that EBITDA is an important supplemental operating and liquidity

measure primarily because it is used in the calculation of Adjusted EBITDA

which is in turn used in the calculation of the Adjusted Interest Coverage

Ratio and the Adjusted Fixed Charge Coverage Ratio and we present it solely

for the purpose of being used in those calculations. EBITDA is calculated by

adding interest, taxes, depreciation and amortization to net income. The real

estate industry uses EBITDA as a non-GAAP measure of both operating

performance and liquidity. We believe it is most useful as a liquidity measure

in the ratio calculations noted above to enable investors to determine and

compare a company’s ability to meet its interest and Fixed Charges

obligations. However, the methodology for calculating it makes net income

the most directly comparable GAAP measure. As such, we believe investors

should

consider

EBITDA,

cash

flows

from

operating

activities

and

net

income

when evaluating our ability to meet our interest and Fixed Charges

obligations. The usefulness of EBITDA is limited because it doesn’t reflect,

among other things, required principal payments, cash expenditures, capital

expenditures or capital commitments. EBITDA does not represent net income

or cash flows from operations as defined by GAAP and should not be

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

EBITDA may not be comparable to similar measures reported by other

companies.

March 31, 2009—

Financial Measures Definitions (2)

FAD Payout Ratio and FFO Coverage:

The FAD Payout Ratio is calculated by dividing the common dividend per

share by diluted FAD per share for any given period. FAD Coverage is

calculated by dividing diluted FAD per share by the common dividend per

share for any given period. We believe that both of these amounts are

important supplemental liquidity measures that enable investors to compare

dividend security among REITs.

Fixed Charges:

Fixed Charges is a measure of the total interest and preferred stock dividend

obligations of a company. It is calculated by adding interest expense

(including capitalized interest, if any) and preferred stock dividends for any

given period and is utilized in calculating the Adjusted Fixed Charge

Coverage Ratio. It’s usefulness is limited as, among other things, it does not

include required principal payments or any other contractual obligations a

company may have. Our calculation of Fixed Charges should not be

considered an alternative to fixed charges as defined by Item 503(d) of

Regulation S-K and it may not be comparable to Fixed Charges reported by

other companies.

Funds Available for Distribution (“FAD”):

While

net

income

and

its

per

amounts

defined

generally

accepted

accounting

principles

("GAAP")

are

the

most

appropriate

earnings

measures, we believe that FAD and its related per share amounts are

important

supplemental

measures

operating

performance.

GAAP requires

the use of straight-line depreciation of historical costs and implies that real

estate values diminish predictably and ratably over time. However, real

estate values have historically risen and fallen based on various market

conditions and other factors. FFO was developed 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

real

estate

plus

real

estate

depreciation

and amortization, plus or minus straight-lined rent (plus cash in excess of rent

or minus rent in excess of cash), plus or minus amortization of above or

below market lease intangibles, plus non-cash stock based compensation,

plus deferred finance cost amortization plus any impairments minus lease

commissions,

tenant

improvements

and

capital

improvements

paid.

The

same adjustments are made to reflect our share of these same items from

unconsolidated joint ventures. We believe that the use of FAD and its related

per share amounts and FFO and its related per share amounts in conjunction

with the required GAAP disclosures provides investors with a more

comprehensive understanding of the operating results of a real estate

investment trust ("REIT") and enables investors to compare the operating

results between REITs without having 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

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

per

amounts

defined

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

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

value

real

estate

over

time.

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

March 31, 2009—

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

measure

liquidity

net

income

the

primary

indicator

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

FFO reported by other REITs that do not define the term in accordance with

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

Gross Investment:

define

Gross

Investment

our

total

investment

property

which

includes

land,

building,

improvements,

equipment

well

any

other

identifiable assets such as lease-up intangible assets, above market tenant

and ground lease intangible assets (collectively “intangible assets”) included

on our balance sheets and/or below market tenant and ground lease

intangible liabilities included in the caption “Accounts Payable and Accrued

Liabilities”

on our balance sheets.

Recurring FAD:

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

the financial statements for a given period.

Recurring 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

Recurring 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.

March 31, 2009—

Quarter 2009 Investments

Gross investment in thousands

Investment

Number of

Square

Average

Gross

Per Bed/Unit

Initial

Facilities

Beds/Units/

Feet

Age

Investment

Square Foot

Yield

Owned Facilities

Capital expenditures

9,000

(1)

Total investments

9,000

Loans

Assisted and independent living facilities

7,000

Total loans

7,000

Unconsolidated Joint Venture

Capital expenditures

2,000

(2)

Total investments

2,000

Total Investments

Total loans

7,000

Total acquisitions

7,000

Total Consolidated

Assisted and independent living facilities

Subtotal

Capital expenditures

Total Investments

7,000

9,000

16,000

10.0%

Total investments

18,000

Capital expenditures

11,000

(3)

10.0%

(1)

Includes $8 million of revenue producing capital expenditures on our existing triple net portfolio at a blended yield of 8.3%.

(2)

Represents initial investment under NHP's agreement with Brookdale Senior Living, Inc. ("Brookdale") under which NHP is a lender with an original

commitment of $8.8 million under their $230 million revolving loan facility which is secured by, among other things, certain real property owned by

Brookdale, an operator of assisted and independent living facilities. As of March 31, 2009, $5.9 million remained outstanding.

(3)

Represents revenue producing capital expenditures on our existing triple net portfolio at a blended yield of 8.0%.

March 31, 2009—

Expected Dispositions

Investment

Actual

Full Year

Gross

Required at 9.5%

% Financing

Revenue

Proceeds

Gain

Assumed Yield

From Proceeds

Actual Through March 31, 2009

Purchase options

2,597,000

3,130,000

35,000,000

21,177,000

32,947,000

106%

Loan payoffs

303,000

379,000

3,731,000

3,989,000

94%

2,900,000

3,509,000

38,731,000

21,177,000

36,936,000

105%

High

[A]

Purchase options

960,000

1,942,000

26,139,000

6,211,000

20,442,000

128%

Loan payoffs*

2,794,000

5,601,000

66,286,000

9,902,000

58,958,000

112%

Asset recycling

244,000

401,000

3,342,000

4,221,000

79%

Lease restructuring

743,000

7,821,000

Total high

3,998,000

8,687,000

95,767,000

16,113,000

91,442,000

105%

Total Actual and Projected 2009

Total actual

2,900,000

3,509,000

38,731,000

21,177,000

36,936,000

105%

Total high

3,998,000

8,687,000

95,767,000

16,113,000

91,442,000

105%

6,898,000

12,196,000

134,498,000

37,290,000

128,378,000

105%

*The gain on loan payoffs represents the gain deferred at the time we finance the sale of the facilities

[A] Projected

dispositions

categorized

“High”

represent

items

where

NHP

estimates a high probability of dispostition

based on an analysis of facility performance,

the tenant's financial condition and current financing options available

Projected for the Remainder of 2009

March 31, 2009—

Projected Funding Obligations through 2011 (as of March 31, 2009)

NHP Consolidated Acquisition Obligations

Est. Closing

Date

Amount

($000s)

Initial

Yield

2009

2010

2011

Total

[A]

PMB -

Pomona, CA

Dec 2009

37,500

7.0%

37,500

NHP Consolidated Total Acquisition Obligations

37,500

Expansion, Renovation & Capital Expenditures

2009

2010

2011

Total

[B]

NHP Consolidated

51,096

32,049

17,553

100,698

Unconsolidated Joint Venture

488

294

1,077

Total Expansion, Renovation & Capital Expenditures

51,584

32,343

17,847

101,775

Debt Maturities & Principal Payments

2009

2010

2011

Total

Amount ($000s)

65,000

111,000

386,000

562,000

Rate

7.0%

4.7%

6.4%

6.1%

Total Forward Capital Commitments

154,084

143,343

403,847

701,275

Estimated Proceeds from Purchase Options, Loan Payoffs and Asset

Sales

95,767

Cash Balance as of March 31, 2009

80,285

Remaining Availability on Credit Facility

700,000

Total Funding Availabity as of March 31, 2009

876,052

General Notes:

The $ 700 million credit facility matures in December of 2010, but can be extended at NHP's option to December 2011

Above analysis does not include future potential additional capital sources such as retained operating cash flows, formation of joint ventures or capital transactions

Cash Required ($000s)

[A] The total reflects an estimate through December 2011 only and does not include a June 2014 obligation for $59 million (Willowcreek -

Hillsboro, OR).

However, if certain operating covenants are not achieved, the construction lender has the right to put the obligation to NHP. The first covenant test date is

December 2009.

[B] The total reflects an estimate of commitments through December 2011 only; the total remaining commitment after 2011 equals $20.3 million

March 31, 2009—

Conditional Pacific Medical Buildings Acquisition Obligations through 2011 (as of March 31, 2009)

NHP

Consolidated

Conditional

Obligations

[A]

Initial

Yield

2009

2010

2011

Total

[B]

PMB -

Poway, CA

PMB -

Mission Viejo, CA

PMB -

Honolulu, HI

7.0%

PMB -

Reno, NV

PMB -

Orange, CA

PMB -

Gilbert, AZ

6.0%

24,355

PMB -

Burbank, CA

5.8%

58,231

5.9%

82,586

Est. Closing Date

Purchase Price Per Contribution Agreement ($000s)

Obligation terminated

April 2010

Obligation terminated

Feb 2010

[A] Pursuant to the contribution agreement, NHP is under no obligation to acquire properties if the trailing 20-day average rate for the JP Morgan JULI BBB

[B] The total reflects an estimate through December 2010 only and does not include a April 2012 conditional obligation for $104.5 million (PMB -

Pasadena, CA)

7 to 10 REIT index (measured five business days before any anticipated closing date) exceeds 7.34%. As of March 31, 2009, the index was 13.14%.

March 31, 2009—

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

2009

701

623

1,324

2010

4,695

8,333

551

13,579

2011

6,389

2012

7,586

4,441

1,511

1,800

15,338

2013

11,499

5,657

363

17,519

2014

8,346

3,486

4,872

16,704

2015

1,756

1,997

3,231

6,984

2016

11,286

13,333

4,037

28,656

11%

2017

2,510

5,029

1,863

9,402

2018

1,335

2,794

4,129

Thereafter

107,290

183

33,441

4,103

5,539

150,373

56%

258

157,004

251

85,523

170

11,400

16,470

270,397

100%

457

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

2009

67,778

37%

2010

27,925

15%

2011

33,550

18%

2012

5,643

13%

606

2013

16,054

2014

668

2015

2,997

2016

1,300

595

2017

15,483

2018

5,914

Thereafter

13,316

20,928

2,480

36,724

84%

12,214

20,259

20,928

2,480

43,667

100%

183,784

100%

(1) Excludes PMBRES and PMB SB.

Assisted and Independent

Consolidated

Skilled Nursing

Total JV

Continuing Care

Mortgage Loans Receivable

Consolidated Lease Expirations

Assisted and Independent

Unconsolidated JV Lease Expirations (1)

Skilled Nursing

Continuing Care

Consolidated Triple-Net

Other Triple Net

March 31, 2009—

Portfolio Summary

Gross investment, NOI and security deposits in thousands

Building

Investment

Percentage of

Percentage

Number of

Square

Gross

Per Bed/Unit/

Investment

of NOI by

Facilities

Beds/Units

Feet

Investment

Square Foot

by Category

NOI

Category

Owned Facilities

Assisted and independent living facilities

251

17,742

1,727,370

97,000

47%

43,194

48%

Skilled nursing facilities

170

18,709

901,545

48,000

25%

23,651

26%

Continuing care retirement communities

1,952

124,808

64,000

3,148

Specialty hospitals

303

76,198

251,000

2,067

Total senior housing and long-term care

438

38,706

2,829,921

73,000

77%

72,060

80%

Triple-net medical office buildings

437,013

121,833

279

2,203

Total triple-net

457

38,706

437,013

2,951,754

80%

74,263

82%

Multi-tenant medical office buildings

2,734,054

557,443

204

15%

9,819

11%

Total owned

517

38,706

3,171,067

3,509,197

95%

84,082

93%

Mortgage Loans Receivable

Assisted and independent living facilities

668

53,485

80,000

1,405

Skilled nursing facilities

2,336

54,429

23,000

1,972

Continuing care retirement communities

180

9,061

50,000

182

Total senior housing and long-term care

3,184

116,975

37,000

3,559

Multi-tenant medical office buildings

172,000

47,500

276

792

Total mortgage loans receivable

3,184

172,000

164,475

4,351

Other Income

1,984

Total Consolidated Portfolio

543

41,890

3,343,067

3,673,672

100%

90,417

100%

Consolidated Portfolio by Type

Assisted and independent living facilities

260

18,410

1,780,855

97,000

48%

44,599

49%

Skilled nursing facilities

186

21,045

955,974

45,000

26%

25,623

29%

Continuing care retirement communities

2,132

133,869

63,000

3,330

Specialty hospitals

303

76,198

251,000

2,067

Total senior housing and long-term care

463

41,890

2,946,896

70,000

80%

75,619

84%

Medical office buildings

3,343,067

726,776

217

20%

12,814

14%

Total owned and mortgage loans receivable

543

41,890

3,343,067

3,673,672

100%

88,433

98%

Other income

1,984

Total consolidated

543

41,890

3,343,067

3,673,672

100%

90,417

100%

Unconsolidated JV Ownership

Assisted and independent living facilities

1,806

260,914

144,000

45%

5,445

45%

Skilled nursing facilities

1,884

275,132

146,000

47%

5,511

46%

Continuing care retirement communities

148

29,670

200,000

620

Total senior housing and long-term care

3,838

565,716

147,000

97%

11,576

96%

Medical office buildings

133,001

19,400

146

464

Total JV owned

3,838

133,001

585,116

100%

12,040

100%

Other income

Total JV

3,838

133,001

585,116

100%

12,070

100%

Total Portfolio

579

45,728

3,476,068

4,258,788

102,487

Consolidated

medical

office

building

gross

investment

includes

$119,722

amounts

classified

intangible assets and liabilities

Unconsolidated

medical

office

building

gross

investment

includes

$1,630

amounts

classified

intangible assets and liabilities

Triple-Net Leased Security Information

Owned

Mortgages

Total

Owned

Mortgages

Total

Owned

Bank letters of credit

55,156

2,389

57,545

9,900

Master leases

84%

100%

Cash deposits

16,599

1,124

17,723

Property tax

74%

46%

73%

74%

71,755

3,513

75,268

9,981

Cap ex

45%

44%

59%

Consolidated

Percentage with Impounds

Security Deposits

Consolidated

March 31, 2009—

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

251

1,727,370

167,248

9.7%

82.5%

1.23x

Skilled nursing facilities

170

901,545

93,803

10.4%

80.6%

1.96x

Continuing care retirement communities

124,808

12,518

10.0%

89.5%

1.60x

Specialty hospitals

76,198

8,349

11.0%

86.4%

3.04x

Total senior housing and long-term care

438

2,829,921

281,918

10.0%

82.1%

1.54x

Triple-net medical office buildings

121,833

9,099

7.5%

100.0%

Total triple-net

457

2,951,754

291,017

9.9%

Multi-tenant medical office buildings

557,443

36,905

6.6%

88.5%

Total owned

517

3,509,197

327,922

9.3%

Mortgage Loans Receivable

Assisted and independent living facilities

53,485

5,471

10.2%

89.7%

1.45x

Skilled nursing facilities

54,429

7,478

13.7%

79.3%

3.02x

Continuing care retirement communities

9,061

649

7.2%

91.4%

3.71x

Total senior housing and long-term care

116,975

13,598

11.6%

82.1%

2.42x

Multi-tenant medical office buildings

47,500

3,157

6.6%

Total mortgage loans receivable

164,475

16,755

10.2%

Total NHP Consolidated Portfolio

543

3,673,672

344,677

9.4%

1.60x

Consolidated Portfolio by Type

Assisted and independent living facilities

260

1,780,855

172,719

9.7%

82.8%

1.24x

Skilled nursing facilities

186

955,974

101,281

10.6%

80.5%

2.09x

Continuing care retirement communities

133,869

13,167

9.8%

89.7%

1.70x

Specialty hospitals

76,198

8,349

11.0%

86.4%

3.04x

Total senior housing and long-term care

463

2,946,896

295,516

10.0%

82.0%

1.60x

Medical Office Buildings

726,776

49,161

6.8%

90.8%

Total consolidated

543

3,673,672

344,677

9.4%

Unconsolidated JV Ownership

Assisted and independent living facilities

260,914

21,954

8.4%

87.0%

1.11x

Skilled nursing facilities

275,132

21,708

7.9%

92.4%

1.85x

Continuing care retirement communities

29,670

2,480

8.4%

80.1%

1.57x

Total senior housing and long-term care

565,716

46,142

8.2%

89.3%

1.48x

Medical office buildings

19,400

1,621

8.4%

87.8%

Total unconsolidated JV

585,116

47,763

8.2%

Total Portfolio

579

4,258,788

392,440

9.2%

1.56x

Medical

office

building

cost

per

square

foot

and

gross

investment

reflects

total

purchase

price

including

amounts

classified

intangilble

assets

and

liabilities

March 31, 2009—

Consolidated Portfolio Performance by Asset Type

MAR 2009

DEC 2008

Q/Q Chg

MAR 2008

Y/Y Chg

MAR 2009

DEC 2008

MAR 2008

Assisted

and

independent

living

Annualized Facility Revenue ($000s)

592,732

594,471

-0.3%

584,380

1.4%

601,723

607,276

669,185

Occupancy

83.0%

83.8%

-0.8%

84.8%

-1.8%

82.8%

83.5%

84.1%

Monthly revenue per occupied bed/unit

3,040

3,026

0.5%

2,969

2.4%

3,321

3,103

3,517

Annualized Facility EBITDARM ($000s)

211,735

211,238

0.2%

207,660

2.0%

213,828

216,541

240,063

Facility EBITDARM %

35.7%

35.5%

0.2%

35.5%

0.2%

35.5%

35.7%

35.9%

NHP Annualized Cash Rent ($000s)

167,911

166,052

1.1%

162,670

3.2%

172,719

170,993

183,686

Facility EBITDARM coverage

1.26x

1.27x

-0.9%

1.28x

-1.2%

1.24x

1.27x

1.31x

Facility EBITDAR coverage

1.08x

1.09x

-0.8%

1.10x

-1.1%

1.06x

1.09x

1.12x

Facility

EBITDAR

Capex

coverage

1.00x

1.01x

-1.4%

1.02x

-1.7%

0.98x

1.01x

1.05x

Skilled

nursing

facilities

Annualized Facility Revenues ($000s)

1,160,531

1,157,310

0.3%

1,115,606

4.0%

1,315,882

1,306,959

1,231,860

Occupancy

81.5%

82.2%

-0.7%

83.2%

-1.7%

80.5%

80.6%

80.9%

Monthly revenue per occupied bed/unit

6,204

6,131

1.2%

5,832

6.4%

6,398

6,354

5,878

Q-Mix (Private + Medicare)

45.2%

46.0%

-0.9%

43.1%

2.1%

44.9%

45.2%

40.2%

Annualized Facility EBITDARM ($000s)

191,036

191,179

-0.1%

189,814

0.6%

212,165

207,874

204,668

16.5%

-0.1%

17.0%

-0.6%

16.1%

15.9%

16.6%

NHP Annualized Cash Rent ($000s)

94,605

93,328

1.4%

91,617

3.3%

101,281

102,324

95,990

Facility EBITDARM coverage

2.02x

2.05x

-1.4%

2.07x

-2.5%

2.09x

2.03x

2.13x

Facility EBITDAR coverage

1.41x

1.43x

-1.6%

1.46x

-3.9%

1.45x

1.39x

1.49x

Facility

EBITDAR

Capex

coverage

1.29x

1.32x

-2.0%

1.35x

-4.3%

1.33x

1.28x

1.38x

SAME PROPERTY (PERFORMANCE)

TOTAL

March 31, 2009—

Consolidated Portfolio Performance

MAR 2009

DEC 2008

Q/Q Chg

MAR 2008

Y/Y Chg

MAR 2009

DEC 2008

MAR 2008

Annualized Facility Revenue ($000s)

1,945,963

1,946,927

0.0%

1,876,885

3.7%

2,110,305

2,109,380

2,077,944

Occupancy

82.7%

83.2%

-0.9%

84.1%

-1.4%

82.0%

82.2%

83.0%

Monthly revenue per occupied bed/unit

5,217

4,832

7.9%

4,764

9.5%

5,372

4,929

5,030

Annualized Facility EBITDARM ($000s)

450,574

448,179

0.5%

437,266

3.0%

473,795

470,177

484,522

Facility EBITDARM %

23.2%

23.0%

0.1%

23.3%

-0.1%

22.5%

22.3%

23.3%

Total NHP Annualized Cash Rent ($000s)

283,960

280,657

1.2%

274,745

3.4%

295,516

294,596

300,135

NHP

Rent

(Payor

Mix)

Private

69.7%

69.8%

-0.1%

69.1%

0.6%

69.0%

68.8%

70.4%

Medicare

11.0%

0.0%

10.8%

0.2%

11.2%

11.3%

10.3%

Medicaid

19.1%

19.0%

0.1%

20.0%

-0.9%

19.6%

19.7%

19.2%

Other

0.2%

0.0%

0.2%

0.1%

0.2%

Total NHP Annualized Cash Rent

100.0%

Facility EBITDARM coverage

1.59x

1.60

-0.7%

1.59x

-0.3%

1.60x

1.61x

Facility EBITDAR coverage

1.24x

1.25

-0.5%

1.25x

-0.5%

1.25x

1.24x

1.27x

Facility

EBITDAR

Capex

coverage

1.15x

1.16

-0.9%

1.16x

-0.8%

1.15x

1.18x

Total

Portfolio

Facility

Payor

Mix

MAR 2009

DEC 2008

MAR 2008

MAR 2009

DEC 2008

MAR 2008

MAR 2009

DEC 2008

MAR 2008

Private

99.9%

99.1%

16.9%

17.5%

16.8%

44.8%

45.6%

48.5%

Medicare

0.0%

27.9%

27.5%

26.9%

19.5%

19.3%

17.6%

Medicaid

0.1%

0.9%

54.6%

54.4%

55.8%

35.3%

34.8%

33.6%

Other

0.0%

0.6%

0.5%

0.4%

0.3%

Total Tenant Revenue

100.0%

Q-Mix (Private + Medicare)

99.9%

99.1%

44.8%

45.0%

43.7%

64.3%

64.9%

66.1%

MAR 2009

DEC 2008

Q/Q Chg

MAR 2008

Y/Y Chg

MAR 2009

DEC 2008

MAR 2008

Medical Office Building

Revenue ($000s)*

46,411

46,549

-0.3%

44,733

3.8%

78,829

78,527

44,733

Occupancy

89.6%

91.1%

-1.5%

87.2%

2.4%

90.7%

90.2%

86.9%

Annual Revenue per occupied sq ft

1.4%

1.0%

Operating Expenses ($000s)*

19,615

19,461

0.8%

18,792

4.4%

29,363

29,679

18,792

Annual Operating Expense per occupied sq ft

2.5%

1.6%

Net Operating Income ($000s)*

26,796

27,088

-1.1%

25,940

3.3%

49,466

48,848

25,940

NOI per occupied sq ft

0.6%

0.5%

Margin %

57.7%

58.2%

-0.5%

58.0%

-0.3%

62.8%

62.2%

58.0%

*Trailing 12 months

SAME PROPERTY (PERFORMANCE)

TOTAL

SAME PROPERTY (PERFORMANCE)

TOTAL

ALF/ILF

SNF

Total

* Excludes assets held for sale, medical office buildings and JV assets

NHP Consolidated Portfolio

(excluding MOBs)

March 31, 2009—

Tenant Concentration

Gross investment and annualized cash rent in thousands

Number of

Beds/Units

Gross

Percent by

Annualized

Percent by

Average

Remaining

EBITDARM

Tenant Concentration

Facilities

Inservice

Investment

Cash Rent/NOI

Cash Rent

Age

Term

Coverage

Brookdale

Senior Living

[A]

5,945

467,746

12.7%

52,020

15.1%

10.4

1.44x

Hearthstone Senior Services

3,794

431,297

11.7%

36,579

10.6%

12.3

1.23x

ingate

Healthcare

2,528

244,629

6.7%

21,134

6.1%

10.9

1.78x

Beverly Enterprises

3,183

105,240

2.9%

14,778

4.3%

5.2

2.18x

Atria Senior Living

1,314

80,703

2.2%

12,553

3.6%

11.8

1.27x

Top 5

183

16,764

1,329,615

36.2%

137,064

39.7%

10.1

1.50x

Senior Services of America

1,515

127,814

3.5%

11,965

3.5%

11.6

1.07x

Magnolia Health Systems

2,376

125,232

3.4%

10,837

3.2%

17.9

1.36x

Laureate Group

1,526

118,946

3.2%

10,819

3.1%

3.8

1.55x

Nexion

Health Management

2,177

70,393

1.9%

8,955

2.6%

4.4

1.77x

Carillon Assisted Living

928

105,847

2.9%

8,783

2.6%

12.8

1.37x

Top 10

266

25,286

1,877,847

51.1%

188,423

54.7%

10.4

1.47x

Emeritus Corporation

[A]

533

70,177

1.9%

6,265

1.8%

7.6

1.25x

Trans Healthcare

[B]

1,062

46,676

1.3%

5,591

1.6%

4.7

0.78x

HEALTHSOUTH

[A]

120

45,602

1.2%

5,021

1.5%

4.9

2.22x

Primrose Retirement Associates

427

55,016

1.5%

4,467

1.3%

12.8

1.15x

Epic Group

892

52,690

1.4%

4,463

1.3%

7.2

1.46x

Top 15

296

28,320

2,148,008

58.4%

214,230

62.2%

10.2

1.46x

Other -

Senior Housing and

Long-Term Care Tenants

167

13,570

798,888

21.8%

81,286

23.6%

7.7

2.02x

Medical Office Buildings

726,776

19.8%

49,161

14.2%

Total NHP Consolidated Portfolio

543

41,890

3,673,672

100.0%

344,677

100.0%

9.3

1.60x

* Performance metrics exclude assets held for sale and JV assets

**Ranked by Annualized Cash Rent/NOI

[A] Public company tenant

[B] Effective November 1, 2009, four of

Trans Healthcare facilities will be trasfered

to another operator; reducing the total annualized cash rent from Trans Healthcare to

$3.2 million.

March 31, 2009—

Medicaid

percent

cash

rent

represents

estimate

the

portion

NHP's

total

senior

housing

and

long-term

care

portfolio

total

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

Cash Rent

[A]

Texas

6,205

448,187

15.2%

44,611

15.1%

4.0%

Massachusetts

2,467

219,011

7.4%

19,283

6.5%

3.1%

Wisconsin

2,839

210,555

7.1%

19,871

6.7%

1.3%

California

2,847

189,787

6.4%

27,601

9.3%

1.7%

Tennessee

2,000

184,506

6.3%

15,049

5.1%

1.2%

Top 5

176

16,358

1,252,046

42.5%

126,415

42.7%

11.3%

Florida

2,460

149,767

5.1%

13,808

4.7%

1.6%

Indiana

2,575

143,019

4.9%

13,000

4.4%

2.6%

Ohio

1,661

117,027

4.0%

11,945

4.0%

1.2%

Washington

1,607

115,536

3.9%

12,145

4.1%

1.0%

North Carolina

1,120

111,135

3.8%

9,637

3.3%

0.6%

Top 10

280

25,781

1,888,530

64.1%

186,950

63.3%

18.3%

New York

846

101,868

3.5%

9,931

3.4%

1.3%

Michigan

1,357

100,413

3.4%

8,945

3.0%

1.0%

Minnesota

853

66,410

2.3%

5,592

1.9%

0.9%

Arizona

615

57,015

1.9%

6,838

2.3%

0.1%

Missouri

1,165

53,142

1.8%

5,513

1.9%

0.9%

Top 15

338

30,617

2,267,378

76.9%

223,769

75.7%

22.5%

Other States

125

11,273

679,518

23.1%

71,747

24.3%

12.9%

Total

463

41,890

2,946,896

100.0%

295,516

100.0%

35.4%

Medical Office Buildings

726,776

49,161

Total NHP Consolidated Portfolio

543

3,673,672

344,677

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

**Ranked by Annualized Gross Investment

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)

[A]

March 31, 2009—

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

Texas

6,205

448,187

44,611

1.57x

4,618

7.3

29.2%

Massachusetts

2,467

219,011

19,283

1.75x

8,136

10.4

81.8%

isconsin

2,839

210,555

19,871

1.58x

3,628

9.8

16.5%

California

2,847

189,787

27,601

1.43x

6,311

7.8

16.3%

Tennessee

2,000

184,506

15,049

1.04x

3,862

8.3

16.6%

Top 5

176

16,358

1,252,046

126,415

1.51x

5,232

8.7

30.9%

Florida

2,460

149,767

13,808

1.92x

5,174

9.3

20.6%

Indiana

2,575

143,019

13,000

1.30x

5,807

15.9

71.1%

Ohio

1,661

117,027

11,945

1.04x

5,051

8.1

25.5%

ashington

1,607

115,536

12,145

1.89x

5,371

10.5

42.2%

North Carolina

1,120

111,135

9,637

1.48x

3,897

12.2

3.7%

Top 10

280

25,781

1,888,530

186,950

1.52x

5,222

10.0

31.9%

New York

846

101,868

9,931

1.43x

7,454

9.2

50.3%

Michigan

1,357

100,413

8,945

1.69x

5,273

11.1

8.8%

Minnesota

853

66,410

5,592

1.42x

4,708

10.2

39.8%

Arizona

615

57,015

6,838

1.69x

8,239

8.9

0.0%

Missouri

1,165

53,142

5,513

1.93x

5,157

4.1

98.2%

Top 15

338

30,617

2,267,378

223,769

1.53x

5,338

9.5

32.7%

Other States

125

11,273

679,518

71,747

1.77x

5,362

6.5

23.1%

Total

463

41,890

2,946,896

295,516

1.60x

5,372

9.3

30.3%

Medical Office Buildings

726,776

49,161

Total NHP Consolidated Portfolio

543

3,673,672

344,677

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

**Ranked by Annualized Gross Investment

Note:

Lease

terms

for

NHP

facilties

generally

are

between

ten

and

fifteen

years

with

renewal

options,

exercised,

that

add

ten

fifteen

additional

years.

general,

NHP

receives

contractual

rent

escalators

the

range

1.5%

2.5%

for

skilled

nursing

assets

and

2.0%

3.0%

for

assisted

living

assets

March 31, 2009—

Unconsolidated JV Portfolio Performance Metrics

Assisted and

Skilled

Independent Living

Nursing

CCRC

Portfolio

MAR 2009

Unconsolidated JV Portfolio

Annualized Facility Revenue ($000s)

72,774

156,784

13,245

242,803

Occupancy

87.0%

92.4%

80.1%

89.3%

Monthly revenue per occupied bed/unit

3,782

8,221

8,436

6,088

Q-Mix (Private + Medicare)

96.6%

59.7%

100.0%

73.0%

Annualized Facility EBITDARM ($000s)

24,345

40,154

3,892

68,391

Facility EBITDARM %

33.5%

25.6%

29.4%

28.2%

Total JV Annualized Cash Rent ($000s)

21,954

21,708

2,480

46,142

JV Rent (Payor Mix)

Private

96.6%

32.5%

73.9%

65.2%

Medicare

0.0%

27.2%

26.1%

14.2%

Medicaid

3.4%

40.3%

0.0%

20.6%

Other

0.0%

Total JV Annualized Cash Rent

100.0%

Facility EBITDARM coverage

1.11x

1.85x

1.57x

1.48x

Facility EBITDAR coverage

0.94x

1.49x

1.30x

1.22x

Facility EBITDAR - Capex coverage

0.88x

1.45x

1.27x

1.17x

Total

March 31, 2009—

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

90%

57,416

60.0%

752,793

80.5%

90.0%

-9.5%

BROE

95%

94,723

170

100.0%

558,707

87.0%

92.8%

-5.8%

McShane

95%

47,947

119

57.1%

404,227

93.8%

86.4%

7.4%

Unconsolidated JV

19,400

146

100.0%

133,001

87.8%

NHP

Multi-Tenant

100%

357,357

351

76.5%

1,018,327

95.4%

NHP

Triple-Net

100%

121,833

279

5.3%

437,013

100.0%

NHP Multi-Tenant Mortgages

47,500

276

100.0%

172,000

Total MOB Portfolio

746,176

215

59.8%

3,476,068

90.7%

Current Year

Prior Year

% Change

Current Year

Prior Year

% Change

Current Year

Prior Year

Change

BROE I -

90%

11,398

11,009

3.5%

5,329

5,160

3.3%

46.8%

46.9%

-0.1%

BROE

95%

11,249

11,479

-2.0%

5,860

6,487

-9.7%

52.1%

56.5%

-4.4%

McShane

95%

7,535

7,216

4.4%

4,127

3,382

22.0%

54.8%

46.9%

7.9%

Unconsolidated JV

2,906

2,913

-0.2%

1,621

1,520

6.6%

NHP

Multi-Tenant

100%

34,947

33,493

4.3%

21,589

21,019

2.7%

61.8%

NHP

Triple-Net

100%

9,191

9,268

-0.8%

9,099

8,494

7.1%

NHP Multi-Tenant Mortgages

3,157

3,095

2.0%

3,157

3,095

2.0%

Total MOB Portfolio

80,383

78,473

2.4%

50,782

49,157

3.3%

56.6%

Gross

Building

Number of

Gross

Percent by

Investment

Square

Percent by

MOBs

by state

Facilities

Investment

per SQFT

Feet

Square Feet

California

236,467

31.7%

332

712,869

20.5%

Washington

118,627

15.9%

324

366,483

10.5%

Illinois

67,142

9.0%

175

383,058

11.0%

Missouri

47,947

6.4%

119

404,227

11.6%

Nevada

43,697

5.9%

300

145,637

4.2%

Top 5

513,879

68.9%

255

2,012,274

57.9%

Florida

42,068

5.6%

356

118,206

3.4%

Oregon

35,273

4.7%

336

104,856

3.0%

Texas

32,647

4.4%

111

294,152

8.5%

Louisiana

31,298

4.2%

384,588

11.1%

Alabama

16,706

2.2%

273

61,219

1.8%

Top 10

671,871

90.0%

226

2,975,295

85.6%

South Carolina

16,302

2.2%

149

109,704

3.2%

Indiana

15,725

2.1%

282

55,814

1.6%

Ohio

13,269

1.8%

199

66,776

1.9%

Georgia

10,211

1.4%

123,294

3.6%

Virginia

6,910

0.9%

106

65,315

1.9%

Top 15

734,289

98.4%

216

3,396,198

97.7%

Other States

11,887

1.6%

149

79,870

2.3%

Medical Office Buildings

746,176

100.0%

215

3,476,068

100.0%

Annualized Revenue

Annualized Cash Rent/NOI

Operating Margin

Occupancy

March 31, 2009—

Portfolio Performance Measures Definitions

Annualized Cash Rent/NOI:

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

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

office building portfolio, NOI rather than cash rent is annualized. We use

Annualized Cash Rent to calculate our EBITDARM, EBITDAR and EBITDAR –

Capex

coverages.

Facility EBITDAR:

Earnings before interest, taxes, depreciation, amortization and rent on an

annualized basis. We believe EBITDAR is a good estimate of facility cash

flows after payment of management fees. We use a standardized imputed

management fee equal to 5% of the revenues our tenants or borrowers

generate at each individual facility (Facility Revenues) which we believe

represents typical management fees for our senior housing and long-term care

portfolios. We receive periodic facility financial information from our tenants

that we utilize to calculate EBITDAR. All facility financial information was

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

have

not

verified

such

information.

use

EBITDAR

calculate

the

EBITDAR (cash flow) coverage for our portfolio.

Facility EBITDAR Coverage:

Annualized EBITDAR divided by Annualized Cash Rent. This ratio is a

measure of a facility’s ability to cover its cash rent obligations. EBITDAR

Coverage of 1.0X would indicate the EBITDAR is just sufficient to pay the cash

rent.

The

higher

the

coverage,

the

better

able

facility

meet

its

rent

obligations. This is the mid-range coverage calculation we utilize.

Facility EBITDARM:

Earnings before interest, taxes, depreciation, amortization, rent and

management fees on an annualized basis. We believe EBITDARM is a good

estimate of facility cash flows before payment of management fees. We use a

standardized imputed management fee equal to 5% of the revenues our

tenants or borrowers generate at each individual facility (Facility Revenues)

which we believe represents typical management fees for our senior housing

and long-term care portfolios. We receive periodic facility financial information

from our tenants that we utilize to calculate EBITDARM. All facility financial

information was derived solely from information provided by our tenants and

borrowers and we have not verified such information. We use EBITDARM to

calculate the EBITDARM (cash flow before management fee) coverage for our

portfolio.

Facility EBITDARM Coverage:

Annualized

EBITDARM

divided

Annualized

Cash

Rent.

This

ratio

measure of a facility’s ability to cover its cash rent obligations assuming it

doesn’t have to pay its management fee. EBITDARM Coverage of 1.0X

would indicate the EBITDARM is just sufficient to pay the cash rent. The

higher the coverage, the better able a facility is to meet its rent obligations.

This is the least restrictive coverage measure we utilize.

Facility

EBITDAR

Capex:

Earnings before interest, taxes, depreciation, amortization and rent less

minimum

capital

expenditures

(capex)

calculated

annualized

basis.

We believe EBITDAR is a good estimate of facility cash flows after a reserve

for minimum capital expenditures required to maintain a facility. We use a

standardized imputed capital expenditure schedule in our calculations based

on the type, size and age of each facility which we believe represents typical

minimum capital expenditures for our senior housing and long-term care

portfolios. We receive periodic facility financial information from our tenants

that

utilize

calculate

EBITDAR

Capex.

All

facility

financial

information

was derived solely from information provided by our tenants and borrowers

and

have

not

verified

such

information.

use

EBITDAR

Capex

calculate

the

EBITDAR

–

Capex

(cash

flow

after

reserves

for

minimum

capex

requirements) coverage for our portfolio.

Facility

EBITDAR

Capex

Coverage:

Annualized

EBITDAR

Capex

divided

Annualized

Cash

Rent.

This

ratio

a measure of a facility’s ability to cover its cash rent obligations after it makes

the minimum capital expenditures required to maintain the facility. EBITDAR

Capex

Coverage

1.0X

would

indicate

the

EBITDAR

Capex

just

sufficient to pay the cash rent. The higher the coverage, the better able a

facility is to meet its rent obligations. This is the most restrictive coverage

measure we utilize.

Facility Revenues:

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

We receive periodic facility financial information from our tenants that we

utilize to calculate Facility Revenues. All facility financial information was

derived solely from information provided by our tenants and borrowers and

we have not verified such information.

March 31, 2009—

Portfolio Performance Measures Definitions (2)

Gross Investment:

define

Gross

Investment

our

total

investment

property

which

includes land, building, improvements, equipment as well as any other

identifiable assets included in the caption Other Assets on our balance sheets.

Items classified in Other Assets generally pertain to our medical office

buildings and may include such things as tenant improvements, leasing

commissions, above/(below) market lease value, lease in place value and

other items.

Monthly Revenue per Occupied Bed/Unit:

For our senior housing and long-term care portfolio, monthly revenue per

occupied bed or unit is derived by determining the monthly revenue generated

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

for a 30-day month. All facility performance data were derived solely from

information provided by our tenants and borrowers and we have not verified

such information.

Occupancy:

For our senior housing and long-term care portfolio, occupancy represents a

facility’s actual resident days (total number of beds or units occupied multiplied

by the number of days in the period) divided by the total resident capacity

(total number of beds or units in service for the period multiplied by the number

of days in the period). For medical office buildings, facility occupancy

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

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

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

performance data were derived solely from information provided by our

tenants and borrowers and we have not verified such information.

NOI:

Net operating income (“NOI”) is a non-GAAP supplemental financial measure

used

evaluate

the

operating

performance

our

facilities.

define

NOI

for

our triple-net leases segment as rent revenues. For our multi-tenant leases

segment,

define

NOI

revenues

minus

medical

office

building

operating

expenses.

some

cases,

revenue

for

medical

office

buildings

includes

expense

reimbursements

for

common

area

maintenance

charges.

NOI

excludes

interest

expense

and

amortization

deferred

financing

costs,

depreciation

and

amortization

expense,

general

and

administrative

expense

and

discontinued

operations.

present

NOI

effectively

presents

our

portfolio on a “net”

rent basis and provides relevant and useful information as

NOI (continued):

it measures the operating performance at the facility level on an unleveraged

basis. We use NOI to make decisions about resource allocations and to

assess the property level performance of our properties. Furthermore, we

believe that NOI provides investors relevant and useful information because it

measures the operating performance of our real estate at the property level

on an unleveraged basis. We believe that net income is the GAAP measure

that

most

directly

comparable

NOI.

However,

NOI

should

not

considered as an alternative to net income as the primary indicator of

operating performance as it excludes the items described above. Additionally,

NOI as presented above may not be comparable to other REITs or

companies as their definitions of NOI may differ from ours.

Q-Mix:

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

the

combination

Tenant’s

private

and

medicare

revenues

percentage

total

revenues.

private

and

medicare

rates

are

generally

higher at long-term care facilities, Tenants can oftentimes improve margins

selectively

targeting

medicare

and

private-pay

residents.

such,

increase in the Q-Mix generally results in a corresponding increase in a

Tenant’s total revenues.

Rentable Square Feet:

For our medical office building portfolio, rentable square feet represents the

area measured to the inside finished surface of the dominant portion of the

permanent outer building walls, excluding any major vertical penetrations of

the floor. An add-on or load factor is used to charge the tenant for a

percentage of the common areas, so that the total rentable square footage for

the building is equal to sum of each floor’s rentable area.

Same Property (Performance):

Results shown under the Same Property caption present the financial or

other performance measures for only those facilities that were in our portfolio

for more than twelve month at the end of all periods presented.