Supplemental Information

March 31, 2011

National Health Investors, Inc.

222 Robert Rose Drive

Murfreesboro, Tennessee 37129

Phone: (615) 890-9100

Fax: (615) 225-3030

www.nhireit.com

Email: investor_relations@nhireit.com

Table of Contents

CORPORATE
Disclaimer . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	3
Analyst Coverage. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	4
Investor Relations Contact. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	4
Senior Management. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	4
Board of Directors. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	4
Company Profile. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	4
Long-Term Growth. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	5
Value Creation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	5
Dividend History. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	5
FINANCIAL
Condensed Balance Sheets. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	6
Condensed Statements of Income. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	7
Funds From Operations - FFO. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	8
Funds Available for Distribution - FAD. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	9
EBITDA Reconciliation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	10
Interest Coverage Ratio. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	10
PORTFOLIO
Portfolio Summary. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	11
Geographic Distribution. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	12
Lease Renewal Years. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	13
Mortgage Maturities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	13
DEFINITIONS
Annualized Revenues. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	14
EBITDA. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	14
Facility Types. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	14
Funds available for distribution – FAD. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	14
Funds from operations – FFO. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	14
Normalized FFO and Normalized FAD. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	14
Investment (NBV). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	14

CORPORATE

DISCLAIMER

This Supplemental Information and other materials we have filed or may file with the Securities and Exchange Commission, as well as information included in oral statements made, or to be made, by our senior management contain certain “forward-looking” statements as that term is defined by the Private Securities Litigation Reform Act of 1995.  All statements regarding our expected future financial position, results of operations, cash flows, funds from operations, continued performance improvements, ability to service and refinance our debt obligations, ability to finance growth opportunities, and similar statements including, without limitations, those containing words such as “may”, “will”, “believes”, anticipates”, “expects”, “intends”, “estimates”, “plans”, and other similar expressions are forward-looking statements.

Forward-looking statements involve known and unknown risks and uncertainties that may cause our actual results in future periods to differ materially from those projected or contemplated in the forward-looking.  Such risks and uncertainties include, among other things, the following risks, which are described in more detail under the heading “Risk Factors” in Item 1A in our Form 10-K for the year ended December 31, 2011:

• We depend on the operating success of our customers (facility operators) for collection of our revenues during this time of uncertain economic conditions in the U.S.;

• We are exposed to the risk that our tenants and borrowers may become subject to bankruptcy or insolvency proceedings;

• We are exposed to risks related to governmental payors and regulations and the effect they have on our tenants’ and borrowers’ business;

• We are exposed to the risk that the cash flows of our tenants and borrowers will be adversely affected by increased liability claims and general and professional liability insurance costs;

• We are exposed to risks related to environmental laws and the costs associated with the liability related to hazardous substances;

• We are exposed to the risk that we may not be indemnified by our lessees and borrowers against future litigation;

• We depend on the success of future acquisitions and investments;

• We depend on the ability to reinvest cash in real estate investments in a timely manner and on acceptable terms;

• We may need to incur more debt in the future, which may not be available on terms acceptable to the Company;

• We are exposed to the risk that the illiquidity of real estate investments could impede our ability to respond to adverse changes in the performance of our properties;

• We are exposed to the risk that our assets may be subject to impairment charges;

• We depend on the ability to continue to qualify as a real estate investment trust;

• We have ownership limits in our charter with respect to our common stock and other classes of capital stock;

• We are subject to certain provisions of Maryland law and our charter and bylaws that could hinder, delay or prevent a change in control transaction, even if the transaction involves a premium price for our common stock or our stockholders believe such transaction to be otherwise in their best interests.

In this Supplemental Information, we refer to non-GAAP financial measures.  These non-GAAP measures are not prepared in accordance with generally accepted accounting principles.  A reconciliation of the non-GAAP financial measures to the most directly comparable GAAP measures is included in this presentation.

Throughout this presentation, certain abbreviations and acronyms are used to simplify the format.  A list of definitions is provided at the end of this presentation to clarify the meaning of any reference that may be ambiguous.

Page | 3

ANALYST COVERAGE	INVESTOR RELATIONS CONTACT
Stifel Nicolaus & Company, Inc.	Roger R. Hopkins, CPA
J.J.B. Hilliard, W.L. Lyons, LLC	rhopkins@nhinvestors.com
JMP Securities, LLC	(615) 890-9100 ext. 108
Wells Fargo Securities, LLC
SENIOR MANAGEMENT	BOARD OF DIRECTORS
J. Justin Hutchens	W. Andrew Adams	J. Justin Hutchens
President and Chief Executive Officer	Chairman	President and Chief Executive Officer
	National Health Investors, Inc.	National Health Investors, Inc.
Roger R. Hopkins, CPA
Chief Accounting Officer	Robert A. McCabe, Jr.	Robert T. Webb
	Chairman	President (Retired) and Founder
Kristin S. Gaines	Pinnacle Financial Partners	Webb's Refreshments, Inc.
Chief Credit Officer
	Ted H. Welch
	Ted Welch Investments

COMPANY PROFILE

NATIONAL HEALTH INVESTORS, INC., a Maryland corporation incorporated in 1991, is a real estate investment trust ("REIT") which invests in income-producing health care properties primarily in the long-term care industry.  Our mission is to invest in health care real estate assets which generate current income that will be distributed to stockholders.  We have pursued this mission by acquiring properties to lease and making mortgage loans nationwide.  These investments involve 118 health care properties in 23 states consisting of 78 skilled nursing facilities, 31 assisted living facilities, 2 medical office buildings, 4 independent living facilities, 1 acute psychiatric hospital, 1 acute care hospital and 1 transitional rehabilitation center.  We have funded these investments in the past through three sources of capital: (1) current cash flow, including principal prepayments from our borrowers, (2) the sale of equity securities, and (3) debt offerings, including the issuance of convertible debt instruments, bank lines of credit, and ordinary term loans.

Investor Snapshot as of		March 31, 2011
Exchange:	NYSE	52 week Low/High:	$36.66	$48.31	Market Capitalization:	$1.33 billion
Symbol:	NHI	Dividend/Yield:	$2.46	5.13%
Closing Price:	$47.92	Shares Outstanding:	27,709,611

Portfolio Revenue Snapshot as of March 31, 2011

Page | 4

VALUE CREATION

Total Return*
	NHI	S&P 500	NAREIT	S&P 500 – Standard & Poor’s index of 500 large cap common stocks
1 year	30.13%	15.65%	24.36%
5 years	21.73%	2.62%	1.07%
10 years	23.70%	3.29%	10.93%	NAREIT – FTSE NAREIT US Real Estate Index Series of all publicly traded REITs
15 years	11.42%	6.80%	10.19%
Since inception**	13.43%	8.67%	10.70%
*assumes reinvestment of dividends
**since inception of NHI in Oct. '91

The Board of Directors approves a regular quarterly dividend which is reflective of expected taxable income on a recurring basis.  Company transactions that are infrequent and non-recurring that generate additional taxable income have been distributed to shareholders in the form of special dividends.  Taxable income is determined in accordance with the IRS Code and is different than net income for financial statement purposes determined in accordance with accounting principles generally accepted in the U.S.

Page | 5

FINANCIAL   

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands, except share amounts)

	March 31,		December 31,
	2011		2010
Assets:
Real estate properties:
Land	$	42,493	$	42,493
Buildings and improvements		421,030		420,704
		463,523		463,197
Less accumulated depreciation		(138,427)		(135,543)
Real estate properties, net		325,096		327,654
Mortgage notes receivable, net		77,283		75,465
Investment in preferred stock, at cost		38,132		38,132
Cash and cash equivalents		21,097		2,664
Marketable securities		21,378		22,476
Accounts receivable, net		1,243		471
Straight-line receivable		5,837		4,928
Assets held for sale, net		29,381		36,853
Deferred costs and other assets		2,692		698
Total Assets	$	522,139	$	509,341
Liabilities and Stockholders' Equity:
Debt	$	49,375	$	37,765
Deferred real estate purchase consideration		4,000		4,000
Accounts payable and accrued expenses		2,782		3,388
Dividends payable		17,041		16,752
Deferred income		1,423		1,461
Earnest money deposit		-		3,475
Total Liabilities		74,621		66,841
Commitments and Contingencies
Stockholders' Equity
Common stock, .01 par value; 40,000,000 shares authorized; 27,709,611 and
27,689,392 shares issued and outstanding, respectively		277		277
Capital in excess of par value		464,963		462,392
Cumulative dividends in excess of net income		(33,447)		(35,499)
Unrealized gains on marketable securities		15,725		15,330
Total Stockholders' Equity		447,518		442,500
Total Liabilities and Stockholders' Equity	$	522,139	$	509,341

Page | 6

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(in thousands, except share and per share amounts)

	Three months ended
	March 31,
	2011		2010
Revenues:
Rental income	$	19,020	$	18,187
Mortgage interest income		1,596		1,996
		20,616		20,183
Expenses:
Depreciation		2,884		2,523
Legal expense		188		282
Franchise, excise and other taxes		358		278
General and administrative		3,774		3,806
		7,204		6,889
Income before non-operating income		13,412		13,294
Investment income and other		1,412		1,433
Interest expense and amortization of loan costs, net of change in fair value of interest rate swap agreement		741		(228)
Income from continuing operations		15,565		14,499
Discontinued operations
Income from operations - discontinued		1,229		1,444
Net gain on sale of real estate		2,299		-
Income from discontinued operations		3,528		1,444
Net income	$	19,093	$	15,943
Weighted average common shares outstanding:
Basic	27,696,727		27,632,376
Diluted	27,796,109		27,681,479
Earnings per common share:
Basic:
Income from continuing operations	$	.56	$	.53
Discontinued operations		.13		.05
Net income per common share	$	.69	$	.58
Diluted:
Income from continuing operations	$	.56	$	.53
Discontinued operations		.13		.05
Net income per common share	$	.69	$	.58
Dividends declared per common share	$	0.615	$	0.575

Page | 7

FUNDS FROM OPERATIONS (FFO)

(in thousands, except share and per share amounts)

			Three months ended
			March 31,
			2011		2010
Net income			$	19,093	$	15,943
	Real estate depreciation in continuing operations			2,690		2,395
	Real estate depreciation in discontinued operations			-		66
	Net gain on sale of real estate			(2,299)		-
Funds from operations			$	19,484	$	18,404
	Collection and recognition of past due rent			-		(1,520)
	Gains and recoveries on sales of marketable securities			(154)		-
	Other items			-		290
Normalized FFO			$	19,330	$	17,174
Weighted average common shares outstanding:
	Basic		27,696,727		27,632,376
	Diluted		27,796,109		27,681,479
FFO per share:
	Basic		$	0.70	$	0.67
	Diluted		$	0.70	$	0.66
Normalized FFO per share:
	Basic		$	0.70	$	0.62
	Diluted		$	0.70	$	0.62
FFO payout ratio:
	Dividends declared per common share		$	0.615	$	0.575
	FFO per diluted share		$	0.70	$	0.66
		FFO per diluted share payout ratio		87.9%		87.1%

Page | 8

FUNDS AVAILABLE FOR DISTRIBUTION (FAD)

(in thousands, except share and per share amounts)

			Three months ended
			March 31,
			2011		2010
Net income			$	19,093	$	15,943
	Real estate depreciation in continuing operations			2,690		2,395
	Real estate depreciation in discontinued operations			-		66
	Net gain on sale of real estate			(2,299)		-
	Straight-line lease revenue, net			(910)		(662)
	Non-cash stock based compensation			2,371		1,821
	Change in fair value of interest rate swap agreement			(1,254)		-
Funds available for distribution				19,691		19,563
	Collection and recognition of past due rent			-		(1,520)
	Gains and recoveries on sales of marketable securities			(154)		-
	Other items			-		290
Normalized FAD			$	19,537	$	18,333
Weighted average common shares outstanding:
	Basic		27,696,727		27,632,376
	Diluted		27,796,109		27,681,479
FAD per share:
	Basic		$	0.71	$	0.71
	Diluted		$	0.71	$	0.71
Normalized FAD per share:
	Basic		$	0.71	$	0.66
	Diluted		$	0.70	$	0.66
FAD payout ratio:
	Dividends declared per common share		$	0.615	$	0.575
	FAD per diluted share		$	0.71	$	0.71
		FAD per diluted share payout ratio		87.0%		81.0%

Page | 9

EBITDA RECONCILIATION AND INTEREST COVERAGE RATIO

(in thousands)

		Three months ended
		March 31,
		2011		2010
Net income		$	19,093	$	15,943
	Interest expense and amortization of loan costs1		513		228
	Franchise, excise and other taxes		358		278
	Depreciation		2,884		2,594
EBITDA		$	22,848	$	19,043
	Interest expense and amortization of loan costs	$	513	$	228
	Interest Coverage Ratio		44:1		83:1

¹ Does not include change in fair value of interest rate swap agreement, a non-cash adjustment, as required by US GAAP.

Page | 10

PORTFOLIO

PORTFOLIO SUMMARY as of March 31, 2011

		Properties	Beds/Units/ Sq. Ft.	Investment  (NBV)		YTD Revenue		% of segment
Leases
	Skilled Nursing(1)	51	6,858	$	172,693,000	$	12,884,000	67.74%
	Assisted Living	29	1,675		122,268,000		4,242,000	22.30%
	Medical Office Buildings	2	88,517		4,848,000		267,000	1.40%
	Independent Living	4	456		6,737,000		460,000	2.42%
	Acute Psychiatric Hospitals	1	66		12,168,000		465,000	2.44%
	Acute Care Hospitals	1	55		5,633,000		702,000	3.69%
	Total Leases	88		$	324,347,000	$	19,020,000	100.00%
(1)	Skilled Nursing
	NHC facilities*	38	5,274	$	44,902,000	$	9,181,000	48.27%
	All other facilities	13	1,584		127,791,000		3,703,000	19.47%
		51	6,858	$	172,693,000	$	12,884,000	67.74%
	* On October 17, 1991, the NHC facilities were transferred to NHI at their then current book value in a non-taxable exchange.
Mortgages
	Skilled Nursing	27	3,821	$	62,406,000	$	1,249,000	78.26%
	Assisted Living	2	146		4,639,000		126,000	7.89%
	Transitional Rehabilitation	1	70		10,238,000		221,000	13.85%
	Total Mortgages	30	4,037	$	77,283,000	$	1,596,000	100.00%

Page | 11

GEOGRAPHIC DISTRIBUTION as of March 31, 2011

	SNF	ALF	ILF	MOB	ACH	APH	TRC	TOTAL	YTD Revenue
Tennessee	20	3	2	-	-	-	-	25	$	4,755,000
Florida	10	7	-	1	-	-	-	18		4,160,000
Texas	6	-	-	1	-	-	-	7		1,898,000
South Carolina	4	1	-	-	-	-	-	5		1,676,000
Arizona	1	4	-	-	-	-	1	6		1,191,000
Kentucky	2	-	-	-	1	-	-	3		1,118,000
Missouri	8	-	1	-	-	-	-	9		797,000
Minnesota	-	5	-	-	-	-	-	5		765,000
Michigan	-	4	-	-	-	-	-	4		609,000
Alabama	2	-	-	-	-	-	-	2		585,000
Virginia	7	-	-	-	-	-	-	7		535,000
California	-	-	-	-	-	1	-	1		465,000
Georgia	5	-	-	-	-	-	-	5		434,000
New Jersey	-	1	-	-	-	-	-	1		343,000
Idaho	1	-	1	-	-	-	-	2		237,000
Massachusetts	4	-	-	-	-	-	-	4		200,000
Iowa	-	2	-	-	-	-	-	2		178,000
Kansas	5	-	-	-	-	-	-	5		151,000
Indiana	-	1	-	-	-	-	-	1		143,000
Illinois	-	1	-	-	-	-	-	1		129,000
New Hampshire	3	-	-	-	-	-	-	3		122,000
Pennsylvania	-	1	-	-	-	-	-	1		101,000
Oregon	-	1	-	-	-	-	-	1		24,000
	78	31	4	2	1	1	1	118	$	20,616,000

Page | 12

LEASE RENEWAL YEARS AND MORTGAGE MATURITIES as of March 31, 2011

		2011		2012		2013		2014		2015	2016 - 2019		2020-2023			Thereafter		TOTALS
Leases
Skilled Nursing
Annualized Revenue	$	73,000		-		-		1,611,000		-		104,000		9,436,000		1,660,000		12,884,000
Properties		1		-		-		6		-		1		39		4		51
Assisted Living
Annualized Revenue		91,000		-		343,000		-		-		749,000		291,000		2,768,000		4,242,000
Properties		1		-		1		-		-		4		3		20		29
Medical Office Buildings
Annualized Revenue		-		-		100,000		-		-		167,000		-		-		267,000
Properties		-		-		1		-		-		1		-		-		2
Independent Living
Annualized Revenue		-		-		-		-		-		-		460,000		-		460,000
Properties		-		-		-		-		-		-		4		-		4
Acute Care Hospitals
Annualized Revenue		-		702,000		-		-		-		-		-		-		702,000
Properties		-		1		-		-		-		-		-		-		1
Acute Psychiatric Hospitals
Annualized Revenue		-		-		-		-		-		-		-		465,000		465,000
Properties		-		-		-		-		-		-		-		1		1
Total Annualized Revenues	$	164,000	$	702,000	$	443,000	$	1,611,000	$	-	$	1,020,000	$	10,187,000	$	4,428,000	$	19,020,000
Mortgages
Skilled Nursing
Annualized Revenue		551,000		-		44,000		244,000		72,000		-		-		338,000		1,249,000
Properties		10		-		1		8		2		-		-		6		27
Assisted Living
Annualized Revenue		-		-		-		24,000		-		102,000		-		-		126,000
Properties		-		-		-		1		-		1		-		-		2
Transitional Rehabilitation
Annualized Revenue		-		-		-		-		221,000		-		-		-		221,000
Properties		-		-		-		-		1		-		-		-		1
Total Annualized Revenues	$	551,000	$	-	$	44,000	$	268,000	$	293,000	$	102,000	$	-	$	338,000	$	1,596,000

Page | 13

DEFINITIONS

Annualized Revenue

The term Annualized Revenue refers to the amount of revenue that our portfolio would generate if all leases and mortgages were in effect for the twelve-month calendar year, regardless of the commencement date, maturity date, or renewals.  Therefore, annualized revenue is used for financial analysis purposes, and is not indicative of actual or expected results.

EBITDA

Earnings before interest, taxes, depreciation and amortization.

Facility Types

ACH – Acute-care hospital ALF – Assisted living facility

APH – Acute psychiatric hospital ILF – Independent living facility

MOB – Medical office building SNF –Skilled nursing facility

TRC – Transitional rehabilitation center

Funds from operations - FFO

FFO is an important supplemental measure of operating performance for a REIT.  Because the historical cost accounting convention used for real estate assets requires straight-line depreciation (except on land), such accounting presentation implies that the value of real estate assets diminishes predictably over time.  Since real estate values instead have historically risen and fallen with market conditions, presentations of operating results for a REIT that uses historical cost accounting for depreciation could be less informative, and should be supplemented with a measure such as FFO.  FFO is defined as net income, computed in accordance with GAAP, excluding gains or losses from sales of property, and adding back real estate depreciation.  The term FFO was designed by the REIT industry to address this issue.  Our measure may not be comparable to similarly titled measures used by other REITs.  Consequently, our FFO may not provide a meaningful measure of our performance as compared to that of other REITs.  Since other REITs may not use our definition of FFO, caution should be exercised when comparing our Company’s FFO to that of other REITs.  FFO in and of itself does not represent cash generated from operating activities in accordance with GAAP (FFO does not include changes in operating assets and liabilities) and therefore should not be considered an alternative to net earnings as an indication of operating performance, or to net cash flow from operating activities as determined by GAAP as a measure of liquidity, and is not necessarily indicative of cash available to fund cash needs.

Funds available for distribution - FAD

FAD is usually calculated by subtracting from Funds from Operations (FFO) both normalized recurring expenditures that are capitalized by the REIT and then amortized, but which are necessary to maintain a REIT's properties and its revenue stream (e.g., new carpeting and drapes in apartment units, leasing expenses and tenant improvement allowances) and "straight-lining" of rents.  This calculation is sometimes referred to as Cash Available for Distribution (CAD) or Funds Available for Distribution (FAD).  Our measure may not be comparable to similarly titled measures used by other REITs.  Consequently, our FAD may not provide a meaningful measure of our performance as compared to that of other REITs.  Since other REITs may not use our definition of FAD, caution should be exercised when comparing our Company’s FAD to that of other REITs.  FAD in and of itself does not represent cash generated from operating activities in accordance with GAAP (FAD does not include changes in operating assets and liabilities) and therefore should not be considered an alternative to net earnings as an indication of operating performance, or to net cash flow from operating activities as determined by GAAP as a measure of liquidity, and is not necessarily indicative of cash available to fund cash needs.

Normalized FFO & Normalized FAD

Normalized FFO and Normalized FAD excludes from FFO and FAD, respectively, any material one-time items reflected in GAAP net income.  Excluded items may include, but are not limited to, impairments of assets, gains and losses attributable to the acquisition and disposition of assets and liabilities, asset write-downs and recoveries of previous write-downs.

Investment (NBV)

The term Investment (NBV) refers to the net carrying value of our real estate and mortgage investments.

Page | 14