10-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-K

(Mark One)
[ x ]	ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the fiscal year ended December 31, 2013
[ ]	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from _____________ to _____________

Commission File Number 001-10822

National Health Investors, Inc.

(Exact name of registrant as specified in its charter)

Maryland	62-1470956
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
222 Robert Rose Drive, Murfreesboro, Tennessee	37129
(Address of principal executive offices)	(Zip Code)

(615) 890-9100

(Registrant's telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each Class	Name of each exchange on which registered
Common stock, $.01 par value	New York Stock Exchange

Securities registered pursuant to Section 12(g) of the Act: None

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes [ x ] No [ ]

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes [ ] No [ x ]

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes [ x ] No [ ]

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files) Yes [ x ] No [ ]

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See definition of “large accelerated filer”, “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer          [ x ]	Accelerated filer                      [ ]
Non-accelerated filer            [ ]	Smaller reporting company     [ ]
(Do not check if a smaller reporting company)

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes [ ] No [ x ]

The aggregate market value of shares of common stock held by non-affiliates on June 30, 2013 (based on the closing price of these shares on the New York Stock Exchange) was approximately $1,570,271,000. There were 33,051,176 shares of the registrant’s common stock outstanding as of February 14, 2014.

DOCUMENTS INCORPORATED BY REFERENCE

Portions of the Registrant’s definitive proxy statement for its 2014 annual meeting of stockholders are incorporated by reference into Part III, Items 10, 11, 12, 13, and 14 of this Form 10-K.

Table of Contents

	Page
Part I.
Forward Looking Statements.	3
Item 1. Business.	4
Item 1A. Risk Factors.	13
Item 1B. Unresolved Staff Comments.	17
Item 2. Properties Owned or Associated with Mortgage Loan Investments.	18
Item 3. Legal Proceedings.	22
Item 4. Mine Safety Disclosures.	22
Part II.
Item 5. Market for Registrant's Common Equity, Related Shareholder Matters and Issuer Purchases of Equity Securities.	23
Item 6. Selected Financial Data.	25
Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations.	26
Item 8. Financial Statements and Supplementary Data.	50
Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure.	80
Item 9A. Controls and Procedures.	80
Item 9B. Other Information.	82
Part III.
Item 10. Directors, Executive Officers and Corporate Governance.	83
Item 11. Executive Compensation.	83
Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters.	83
Item 13. Certain Relationships and Related Transactions.	83
Item 14. Principal Accountant Fees and Services.	83
Part IV.
Item 15. Exhibits and Financial Statement Schedules.	83
Signatures.	84
Exhibit Index.	85

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PART I.

Forward Looking Statements

References throughout this document to NHI or the Company include National Health Investors, Inc., and its consolidated subsidiaries. In accordance with the Securities and Exchange Commission’s “Plain English” guidelines, this Annual Report on Form 10-K has been written in the first person. In this document, the words “we”, “our”, “ours” and “us” refer only to National Health Investors, Inc. and its consolidated subsidiaries and not any other person. Unless the context indicates otherwise, references herein to “the Company” include all of our consolidated subsidiaries.

This Annual Report on Form 10-K 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 limitation, 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 statements. Such risks and uncertainties include, among other things, the following risks described in more detail under the heading “Risk Factors” under Item 1A:

* 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 regulations and payors, principally Medicare and Medicaid, and the effect that lower reimbursement rates will 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 risks associated with our investments in unconsolidated entities, including our lack of sole decision-making authority and our reliance on the financial condition of other interests;

* We depend on revenues derived mainly from fixed rate investments in real estate assets, while our debt capital used to finance those investments is primarily at variable rates. This circumstance creates interest rate risk to the Company;

* We have covenants related to our indebtedness which impose certain operational limitations and a breach of those covenants could materially adversely affect our financial condition and results of operations;

* 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;

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* We have ownership limits in our charter with respect to our common stock and other classes of capital stock which may delay, defer or prevent a transaction or a change of control that might involve a premium price for our common stock or might otherwise be in the best interests of our stockholders;

* 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.

See the notes to the annual audited consolidated financial statements, and “Business” and “Risk Factors” under Item 1 and Item 1A therein for a further discussion of these and of various governmental regulations and other operating factors relating to the healthcare industry and the risk factors inherent in them. You should carefully consider these risks before making any investment decisions in the Company. These risks and uncertainties are not the only ones we face. There may be additional risks that we do not presently know of or that we currently deem immaterial. If any of the risks actually occur, our business, financial condition, results of operations, or cash flows could be materially adversely affected. In that case, the trading price of our shares of stock could decline and you may lose part or all of your investment. Given these risks and uncertainties, we can give no assurance that these forward-looking statements will, in fact, occur and, therefore, caution investors not to place undue reliance on them.

ITEM 1. BUSINESS

General

National Health Investors, Inc., incorporated under the laws of Maryland in 1991, is a real estate investment trust ("REIT") which invests in income-producing health care properties primarily in the long-term care and senior housing industries. As of December 31, 2013, our portfolio consisted of real estate, mortgage and note investments and investments in the preferred stock and marketable securities of other REITs. We are a self-managed REIT investing in health care real estate or in the operations thereof through independent third-party managers that generate current income to be distributed to stockholders. We have pursued this mission by investing primarily in leased properties, loans and RIDEA transactions. These investments include senior housing (assisted living, independent living and senior living campuses), skilled nursing facilities, hospitals and medical office buildings, all of which are collectively referred to herein as "Health Care Facilities." We typically fund these investments through three sources of capital: (1) debt offerings, including bank lines of credit and ordinary term debt, (2) current cash flow, and (3) the sale of equity securities.

At December 31, 2013, our continuing operations consisted of investments in real estate and mortgage and other notes receivable involving 168 health care facilities located in 30 states. These investments involve 94 senior housing communities, 68 skilled nursing facilities, 4 hospitals, 2 medical office buildings and other notes receivable. These investments (excluding our corporate office of $882,000) consisted of properties with an original cost of approximately $1,421,120,000, rented under triple-net leases to 23 lessees, and $60,639,000 aggregate carrying value of mortgage and other notes receivable due from 15 borrowers.

All of our investments in real estate and mortgage loans secured by real estate are located within the United States. We are managed as one reporting unit, rather than multiple reporting units, for internal reporting purposes and for internal decision making. Therefore, we have concluded that we operate as a single segment. Information about revenues from our tenants and borrowers, a measure of our income, and total assets can be found in Item 8 of this Form 10-K.

Types of Health Care Facilities

Senior Housing Communities. As of December 31, 2013, our portfolio included 91 senior housing communities (“SHO”) leased to operators and mortgage loans secured by 3 SHOs. SHOs within our portfolio consist of assisted living facilities, independent living facilities, and senior living campuses which are more fully described below.

- Assisted living facilities. As of December 31, 2013, our portfolio included 58 assisted living facilities (“ALF”) leased to operators and mortgage loans secured by 2 ALFs. ALFs are free-standing facilities that provide basic room and board functions for elderly residents. They may also provide assistance to elderly residents with activities of daily living such as bathing, grooming, memory care services and administering medication. On-site staff personnel are available to assist in minor medical needs on an as-needed basis. Operators of ALFs are typically paid from private sources without assistance from government. ALFs may be licensed and regulated in some states, but do not require the issuance of a Certificate of Need (“CON”) as required for skilled nursing facilities.

- Independent living facilities. As of December 31, 2013, our portfolio included 28 independent living facilities (“ILF”) leased to operators. ILFs offer specially designed residential units for the active and ambulatory elderly and provide various

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ancillary services for their residents including restaurants, activity rooms and social areas. Services provided by ILF operators are generally paid from private sources without assistance from government programs. ILFs may be licensed and regulated in some states, but do not require the issuance of a CON as required for skilled nursing facilities.

- Senior living campuses. As of December 31, 2013, our portfolio included 5 senior living campuses ("SLC") leased to operators and a mortgage loan secured by 1 SLC. SLCs are either freestanding or multi-site campuses that include skilled nursing beds combined with an ILF and/or an ALF that provide basic room and board functions for elderly residents. They may also provide assistance to elderly residents with activities of daily living such as bathing, grooming and administering medication. On-site staff personnel are available to assist in minor medical needs on an as-needed basis. Operators of SLCs are typically paid from private sources and from government programs such as Medicare and Medicaid for skilled nursing residents.

Skilled nursing facilities. As of December 31, 2013, our portfolio included 61 skilled nursing facilities (“SNF”) leased to operators and mortgage loans secured by 7 SNFs. SNFs provide some combination of skilled and intermediate nursing and rehabilitative care, including speech, physical and occupational therapy. The operators of the SNFs receive payment from a combination of private pay sources and government programs such as Medicaid and Medicare. SNFs are required to obtain state licenses and are highly regulated at the federal, state and local level. Most SNFs must obtain a CON from the state before opening or expanding such facilities. Some SNFs also include assisted living beds.

Medical office buildings. As of December 31, 2013, our portfolio included 2 medical office buildings (“MOB”) leased to operators. MOBs are specifically configured office buildings whose tenants are primarily physicians and other medical practitioners. MOBs differ from conventional office buildings due to the special requirements of the tenants. Each of our MOBs is leased to one lessee, and is either physically attached to or located on an acute care hospital campus. The lessee sub-leases individual office space to the physicians or other medical practitioners. The lessee is responsible to us for the lease obligations of the entire building, regardless of their ability to sub-lease the individual office space.

Hospitals. As of December 31, 2013, our portfolio included 3 hospitals (“HOSP”) leased to operators and a mortgage loan secured by 1 hospital. Hospitals provide a wide range of inpatient and outpatient services, including acute psychiatric and rehabilitation services, and are subject to extensive federal, state and local legislation and regulation. Hospitals undergo periodic inspections regarding standards of medical care, equipment and hygiene as a condition of licensure. Services provided by hospitals are generally paid for by a combination of private pay sources and government programs.

Nature of Investments

Our investments are typically structured as acquisitions of properties through purchase-leaseback transactions, acquisitions of properties from other real estate investors, mortgage loans or, in operations, through structures allowed by the REIT Investment Diversification Empowerment Act of 2007 (“RIDEA”). We have also provided construction loans for facilities for which we were already committed to provide long-term financing or for which the operator agreed to enter into a lease with us upon completion of the construction. The annual lease rates on our leases and the annual interest rates on our mortgage and construction loans ranged between 6.5% and 12% during 2013. We normally charge a commitment fee of 1% based on the purchase price of the property or the total principal amount of a mortgage or construction loan. We believe our lease and loan terms are competitive within our peer group. Typical characteristics of these transactions are as follows:

Leases. Our leases generally have an initial leasehold term of 10 to 15 years with one or more 5-year renewal options. The leases are "triple net leases" under which the tenant is responsible for the payment of all taxes, utilities, insurance premium costs, repairs and other charges relating to the ownership and operation of the Health Care Facilities, including required levels of capital expenditure each year. The tenant is obligated at its expense to keep all improvements, fixtures and other components of the Health Care Facilities covered by "all risk" insurance in an amount equal to at least the full replacement cost thereof, and to maintain specified minimal personal injury and property damage insurance, protecting us as well as the tenant. The leases also require the tenant to indemnify and hold us harmless from all claims resulting from the use and occupancy of each Health Care Facility by the tenant and related activities, and to indemnify us against all costs related to any release, discovery, clean-up and removal of hazardous substances or materials on, or other environmental responsibility with respect to each Health Care Facility.

Most of our existing leases contain annual escalators in rent payments. For financial statement purposes, rental income is recognized on a straight-line basis over the term of the lease. The acute care hospital and MOBs which we own and lease give the lessee an option to purchase the underlying property at the greater of i) our acquisition costs; ii) the then fair market value as established by independent appraisers or iii) the sum of the land costs, construction costs and any additional capital improvements made to the property by us. In addition, the acute care hospital and MOB leases contain a right of first refusal for the lessee if we receive an offer to buy the underlying leased property.

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Some of the obligations under the leases are guaranteed by the parent corporation of the lessee, if any, or affiliates or individual principals of the lessee. In some leases, the third party operator will also guarantee some portion of the lease obligations. Some obligations are backed further by other collateral such as security deposits, machinery, equipment, furnishings and other personal property.

We monitor our triple-net lessee tenant credit quality and identify any material changes by performing the following activities:

• Obtaining financial statements on a monthly, quarterly and/or annual basis to assess the operational trends of our tenants and the financial position and capability of those tenants

• Calculating the operating cash flow for each of our tenants

• Calculating the lease service coverage ratio and other ratios pertinent to our tenants

• Obtaining property-level occupancy rates for our tenants

• Verifying the payment of taxes by our tenants

• Obtaining certificates of insurance for each tenant

• Obtaining financial statements of our lessee guarantors on an annual basis

• Conducting a periodic inspection of our properties to ascertain proper maintenance, repair and upkeep

• Monitoring those tenants with indications of continuing and material deteriorating credit quality through discussions with our executive management and Board of Directors

RIDEA Transactions. Our arrangement with Bickford Senior Living ("Bickford") is structured to be compliant with the provisions of RIDEA which permits NHI to receive rent payments through a triple-net lease between a property company and an operating company and gives NHI the opportunity to capture additional value on the improving performance of the operating company through distributions to a Taxable REIT Subsidiary ("TRS"). Accordingly, the TRS holds our 85% equity interest in an unconsolidated operating company, which we do not control, and provides an organizational structure that will allow the TRS to engage in a broad range of activities and share in revenues that would otherwise be non-qualifying income under the REIT gross income tests.

Construction loans. From time to time, we also provide construction loans that by their terms convert to mortgage loans upon the completion of the construction of the facility. We may also obtain a purchase option to acquire the facility at a future date and lease the facility back to the operator. The terms of such construction loans are for a period which commences upon the closing of such loans and terminates upon the earlier of (a) the completion of the construction of the applicable facility or (b) a specific date. During the term of the construction loan, funds are usually advanced pursuant to draw requests made by the borrower in accordance with the terms and conditions of the loan. Interest is typically assessed on these loans at rates equivalent to the eventual mortgage rate upon conversion. In addition to the security of the lien against the property, we will generally require additional security and collateral in the form of either payment and performance completion bonds or completion guarantees by the borrower's parent, affiliates of the borrower or one or more of the individuals who control the borrower.

Mortgage loans. We have first mortgage loans with maturities of at least 5 years from inception with varying amortization schedules from interest only to fully amortizing. Most of the loans are at a fixed interest rate; however, some interest rates increase based on scheduled fixed rate increases. In most cases, the owner of the facility is committed to make minimum annual capital expenditures for the purpose of maintaining or upgrading their respective facility. Additionally, most of our loans are collateralized by first mortgage liens and corporate or personal guarantees.

We have made mortgage loans to borrowers secured by a second deed-of-trust where there is a process in place for the borrower to obtain long-term financing, primarily with a U.S. government agency, and where the historical financial performance of the underlying health care facility meets our loan underwriting criteria. The interest rates on our second mortgage loans are currently 12% to 14.5% per annum.

Other notes receivable. We have provided a revolving credit facility to a borrower whose business is to provide bridge loans to owner-operators who are qualifying for long-term HUD financing secured by health care facilities. Our interest rate on the credit facility is 13.5%. We have provided loans to borrowers involved in the skilled nursing and senior housing industries who have pledged personal and business guarantees as security for the loans. The interest rates on these loans currently range from 12% to13.5%.

Investment in preferred stock and marketable securities of other healthcare REITs. We invest a portion of our funds in the preferred and common shares of other publicly-held REITs to ensure the substantial portion of our assets is invested for real estate purposes. As of December 31, 2013, our investments in preferred and common shares of publicly-held REITs had a carrying value of $50,782,000. Please refer to Notes 5 & 6 of our consolidated financial statements for further information.

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Competition and Market Conditions

We compete with other REITs, private equity funds and other investors (including, but not limited to, banks, insurance companies, and investment banks who market securities in mortgage funds) in the acquisition, leasing and financing of health care-related properties.

Operators of our Health Care Facilities compete on a local and regional basis with operators of facilities that provide comparable services. Operators compete for residents and/or patients and staff based on quality of care, reputation, physical appearance of facilities, services offered, family preference, physicians, staff and price. Competition is with independent operators as well as companies managing multiple facilities, some of which are substantially larger and have greater resources than the operators of our Health Care Facilities. Some of these facilities are operated for profit while others are owned by governmental agencies or tax exempt not-for-profit organizations.

The SNFs which either secure our mortgage loans or we lease to operators receive the majority of their revenues from Medicare, Medicaid and other government programs. From time to time, these facilities have experienced Medicare and Medicaid revenue reductions brought about by the enactment of legislation to reduce government costs. In particular, the establishment of a Medicare Prospective Payment System (“PPS”) for SNF services to replace the cost-based reimbursement system significantly reduced Medicare reimbursement to SNF providers. While Congress subsequently took steps to mitigate the impact of PPS on SNFs, other federal legislative policies have been adopted and continue to be proposed that would reduce Medicare and/or Medicaid payments to SNFs. State Medicaid funding is not expected to keep pace with inflation according to industry studies. Any changes in government reimbursement methodology that reduce reimbursement to levels that are insufficient to cover the operating costs of our borrowers and lessees could adversely impact us.

Senior housing communities generally rely on private-pay residents who may be negatively impacted in an economic downturn. The success of these facilities is often impacted by the existence of comparable, competing facilities in a local market.

Operator Diversification

The majority of our Health Care Facilities are operated by the owner or lessee. For the year ended December 31, 2013, approximately 38% of our portfolio revenue was from publicly-owned operators, 50% was from regional operators, 8% was from smaller operators and 4% from national chains which are privately owned. We consider the operator to be an important factor in determining the creditworthiness of the investment, and we generally have the right to approve any changes in operators.

For the year ended December 31, 2013, operators of facilities which provided more than 3% of our total revenues were (in alphabetical order): Bickford Senior Living; Emeritus Senior Living; Fundamental Long Term Care Holdings, LLC; Health Services Management, Inc.; Landmark Senior Living; Legend Healthcare, LLC; National HealthCare Corp.; Senior Living Management Corporation, LLC; SeniorHealth of Rutherford, LLC; SP Silverdale, LLC; and White Pine Senior Living.

Major Customers

We have two operators, National HealthCare Corporation (“NHC”) and Bickford Senior Living ("Bickford"), from whom we individually derive at least 10% of our income from operations. Beginning in December 2013, a third major operator, Holiday Acquisition Holdings LLC (“Holiday”), an affiliate of Holiday Retirement, has leased 25 independent living facilities from us which contractually obligates Holiday, in 2014 and going forward, to make lease payments which will aggregate to more than 25% of NHI revenues, based on our 2013 leases in place.

NHC. NHC is a publicly-held company and the lessee of our legacy properties. We lease 42 health care facilities to NHC comprised of 3 independent living facilities and 39 skilled nursing facilities (4 of which are subleased to other parties for whom the lease payments are guaranteed to us by NHC). These facilities are leased to NHC under the terms of an amended Master Lease Agreement dated October 17, 1991 ("the 1991 lease") which includes our 35 remaining legacy properties and a Master Lease Agreement dated August 30, 2013 ("the 2013 lease") which includes seven skilled nursing facilities acquired from ElderTrust of Florida, Inc. on August 31, 2013.

In December 2012 we extended the 1991 lease through December 2026. Under the terms of the lease, rent escalates by 4% of the increase, if any, in each facility’s revenue over a 2007 base year. We refer to this additional rent component as “percentage rent.” Similarly, the 2013 lease provides for percentage rent equal to 4% of the increase, if any, in each facility's annual revenue over a 2014 base year.

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Of our total revenue from continuing operations, $34,756,000 (29%), $33,056,000 (35%) and $32,619,000 (39%) in 2013, 2012 and 2011, respectively, were derived from the two lease agreements with NHC.

In August 2013 we sold six skilled nursing facilities to NHC for $21,000,000 in cash. To reflect this transaction, effective January 1, 2014, NHI’s annual base rent on the 1991 lease will be reduced by $2,950,000. At that time, our annual base rent from the 1991 and 2013 leases will become $34,200,000. Accordingly, the results of operation of the facilities sold were classified as discontinued operations for all periods presented in our Consolidated Statements of Income.

NHC owned 1,630,462 shares of our common stock at December 31, 2013. The chairman of our board of directors is also a director on NHC’s board.

Bickford. We own an 85% equity interest and an affiliate of Bickford owns a 15% equity interest in our consolidated subsidiary ("PropCo") which owns 29 assisted living/memory care facilities in 6 states and also has 1 facility under construction. The facilities are leased in a joint venture to an operating company, ("OpCo"), of which we also retain an 85% ownership interest, but do not control. The joint venture is structured to comply with the provisions of RIDEA.

On June 28, 2013, PropCo purchased 17 assisted living and memory care facilities which were managed by Bickford. The facilities total 750 units and are located in Illinois, Indiana, Iowa and Nebraska. Of these facilities, 14 were acquired from a subsidiary of Care Investment Trust, Inc. ("Care") for $124,549,000, consisting of $44,021,000 in cash and assumption of secured debt with a fair value of $80,528,000. As part of this transaction, we recognized all identifiable tangible assets and liabilities assumed at fair value at the date of acquisition (there were no identifiable intangible assets or liabilities assumed) and attributed $4,360,000 to the fair value of the land, $120,189,000 to the fair value of the buildings and improvements and expensed $63,000 in transaction costs at closing. The 14 newly-acquired facilities have been leased to OpCo for an initial term of 5 years at an aggregate annual lease amount of $9,750,000 plus annual fixed escalators commencing on July 1 of each succeeding year.

Concurrent with this acquisition, PropCo also completed a $12,910,000 purchase and leaseback of three assisted living facilities located in Iowa, Nebraska and Indiana totaling 107 units from affiliates of Bickford. PropCo's previous master lease with Bickford was amended to include these three properties and the annual lease amount was increased from $7,750,000 to $9,086,000, plus annual fixed escalators beginning January 1 of each succeeding year. All other significant terms of the existing master lease remain unchanged.

As described above, the current annual contractual rent from OpCo to PropCo is $18,836,000, plus fixed annual escalators. During the quarter ended December 31, 2013, PropCo completed major construction and received certificates of occupancy on two assisted living facilities which were under development. Under the terms of the current development lease agreement, NHI continues to receive rent of 9% on the total amount of development costs, including land, which totaled $17,796,000 at December 31, 2013.

Of our total revenue from continuing operations, $14,586,000 (12%), $5,164,000 (6%) and $4,235,000 (5%) were recorded as rental income from Bickford for the years ended December 31, 2013, 2012, and 2011, respectively.

Holiday.In December 2013 we acquired 25 independent living facilities from an affiliate of Holiday Retirement, for $491,000,000 plus transaction costs of $1,959,000. The total purchase price was allocated to the assets acquired based upon their relative fair values, preliminarily estimated as $21,700,000 to land, $471,259,000 to buildings and improvements. No intangibles were identified in the acquisition. Such allocations have not been finalized as we await conclusive asset valuations and, as such, the results of the allocation are preliminary and subject to adjustment. This portfolio is located in 12 states. We have leased this portfolio to a subsidiary of Holiday, who continues to operate the facilities pursuant to a management agreement with a Holiday-affiliated manager.

The master lease term of 17 years begins in December 2013 and provides for initial base rent of $31,915,000 plus annual escalators of 4.5% in the first 3 years and a minimum of 3.5% each year thereafter.

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Commitments and Contingencies

The following table summarizes information as of December 31, 2013 related to our outstanding commitments and contingencies which are more fully described in the notes to the consolidated financial statements.

	Asset Class	Type	Total		Funded			Remaining
Commitments:
Bickford Senior Living	SHO	Development	$	9,000,000	$	(2,712,000	)	$	6,288,000
Chancellor Health Care	SHO	Development	$	8,000,000	$	—		$	8,000,000
Kentucky River Medical Center	Hospital	Renovation	$	8,000,000	$	(5,838,000	)	$	2,162,000
Santé Mesa	Hospital	Development	$	13,870,000	$	(11,870,000	)	$	2,000,000
Capital Funding Group	N/A	Revolving Credit	$	15,000,000	$	(15,000,000	)	$	—
Contingencies:
Discovery Senior Living	SHO	Lease Inducement	$	2,500,000	$	—		$	2,500,000
Santé Partners	SHO	Lease Inducement	$	2,000,000	$	—		$	2,000,000
Fundamental Long Term Care	SNF	Purchase Consideration	$	1,600,000	$	—		$	1,600,000
Helix Healthcare	Hospital	Purchase Consideration	$	1,000,000	$	—		$	1,000,000

Sources of Revenues

General. Our revenues are derived primarily from rental income, mortgage interest income and income from our other investments, substantially all of which are in the securities of other healthcare REITs. During 2013, rental income was $106,029,000 (90%), interest income from mortgages and other notes was $7,633,000 (6%) and income from our other investments was $4,166,000 (4%) of total revenue from continuing operations of $117,828,000. Our revenues depend on the operating success of our facility operators whose source and amount of revenues are determined by (i) the licensed beds or other capacity of the Health Care Facilities, (ii) the occupancy rate of the Health Care Facilities, (iii) the extent to which the services provided at each Health Care Facility are utilized by the patients, (iv) the mix of private pay, Medicare and Medicaid patients at the Health Care Facilities, and (v) the rates paid by private paying patients and by the Medicare and Medicaid programs.

Governmental and other concerns regarding health care costs have and may continue to result in significant reductions in payments to health care facilities, and there can be no assurance that future payment rates for either governmental or private health care plans will be sufficient to cover cost increases in providing services to patients. Any changes in reimbursement policies which reduce reimbursement to levels that are insufficient to cover the cost of providing patient care have had and could continue to have an adverse effect on revenues of our lessees and borrowers and thereby adversely affect those lessees' and borrowers' abilities to make their lease or debt payments to us. Failure of the lessees or borrowers to make their lease or debt payments would have a direct and material adverse impact on us.

Medicare and Medicaid. A significant portion of the revenue of our SNF lessees and borrowers is derived from government funded reimbursement programs, such as Medicare and Medicaid. Reimbursement under these programs is subject to periodic payment review and other audits by federal and state authorities. Medicare is uniform nationwide and reimburses skilled nursing centers under a Prospective Payment System (“PPS”) which is based on a predetermined, fixed amount. PPS was instituted as mandated by the Balanced Budget Act of 1997 and became effective July 1, 1998. PPS is an acuity based classification system that uses nursing and therapy indexes adjusted by geographical wage indexes to calculate per diem rates for each Medicare patient. Payment rates are updated annually and are generally adjusted each October when the federal fiscal year begins. The current acuity classification system is named Resource Utilization Groups IV (“RUGs IV”) and was effective October 1, 2010. PPS as implemented in 1998 had an adverse impact on the healthcare industry and our lessees’ and borrowers’ business by decreasing payments materially, which adversely impacted our business. Refinements in the form of temporary add-ons provided some relief until October 1, 2002. Since then, annual market basket (inflationary) increases have continued to improve payments; however, other federal legislative policies have been adopted and continue to be proposed that could reduce Medicare payments to nursing facilities. For example, in July 2011, the Centers for Medicare and Medicaid Services ("CMS") announced the Skilled Nursing Facilities – PPS final rule for fiscal year 2012 which cut Medicare payments to SNF operators by a net 11.1% beginning October 1, 2011. In July 2012, CMS announced the final rule for fiscal 2013 that increased Medicare payments to SNF operators by a net 1.8% for the fiscal year beginning October 1, 2012. On May 1, 2013, CMS released a proposed rule outlining a 1.4% increase in their Medicare reimbursement for fiscal 2014 beginning on October 1, 2013. The final rule for 2014 does not take into account the ongoing attempt by Congress to reduce the federal deficit by $1.5 trillion over the next decade as required by the Budget Control

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Act of 2011. The failure of Congress to agree on spending reductions to meet deficit goals would trigger automatic spending cuts of 2% to Medicare.

RUGs IV incorporates changes to PPS that significantly altered how SNFs are paid for rendering care. Some examples are as follows:

• A shift to 66 payment categories from 53 payment categories;

• Changes related to assessment reference dates and qualifiers that will significantly reduce utilization of rehabilitation and extensive service categories;

• Modification to therapy services related to estimating treatments and utilization of concurrent therapy that will likely result in RUG classifications at much lower levels of therapy than previous results; and

• Adjustments related to assistance with activities of daily living (ADLs) and an increased emphasis on ADL scores in the nursing case mix indices and related RUG payment rates.

Medicaid is a joint federal and state program designed to provide medical assistance to “eligible needy persons.” Medicaid programs are operated by state agencies that adopt their own medical reimbursement methodology and standards. Payment rates and covered services vary from state to state. In many instances, revenues from Medicaid programs are insufficient to cover the actual costs incurred in providing care to those patients. State Medicaid plans subject to budget constraints are of particular concern to us given the repeal of the Boren Amendment by the Balanced Budget Act of 1997. The Boren Amendment provided fair reimbursement protection to nursing facilities. Changes in federal funding coupled with state budget problems have produced an uncertain environment. Industry studies predict the Medicaid crisis will continue with states’ required contribution to Medicare Part D and anticipated budget deficits. States will more than likely be unable to keep pace with nursing center inflation. States are under pressure to pursue other alternatives to long term care such as community and home-based services. Furthermore, several of the states in which we have investments have actively sought to reduce or slow the increase of Medicaid spending for nursing home care.

Medicare and Medicaid programs are highly regulated and subject to frequent and substantial changes resulting from legislation, adoption of rules and regulations and administrative and judicial interpretations of existing law. Moreover, as health care facilities have experienced increasing pressure from private payors attempting to control health care costs, reimbursement from private payors has in many cases effectively been reduced to levels approaching those of government payors. Healthcare reimbursement will likely continue to be of significant importance to federal and state authorities. We cannot make any assessment as to the ultimate timing or the effect that any future legislative reforms may have on our lessees’ and borrowers’ costs of doing business and on the amount of reimbursement by government and other third-party payors. There can be no assurance that future payment rates for either government or private payors will be sufficient to cover cost increases in providing services to patients. Any changes in reimbursement policies which reduce reimbursement to levels that are insufficient to cover the cost of providing patient care could adversely affect the operating revenues of our SNF and hospital lessees and borrowers, and thereby adversely affect their ability to make their lease or debt payments to us. Failure of our lessees and borrowers to make their scheduled lease and loan payments to us would have a direct and material adverse impact on us.

Government Regulation

Licensure and Certification. The health care industry is highly regulated by federal, state and local law and is directly affected by state and local licensing requirements, facility inspections, state and federal reimbursement policies, regulations concerning capital and other expenditures, certification requirements and other such laws, regulations and rules. Sanctions for failure to comply with these regulations and laws include (but are not limited to) loss of licensure, fines and loss of certification to participate in the Medicare and Medicaid programs, as well as potential criminal penalties. The failure of any lessee or borrower to comply with such laws, requirements and regulations could affect their ability to operate the facility or facilities and could adversely affect such lessee's or borrower's ability to make lease or debt payments to us.

In the past several years, due to rising health care costs, there has been an increased emphasis on detecting and eliminating fraud and abuse in the Medicare and Medicaid programs. Payment of any consideration in exchange for referral of Medicare and Medicaid patients is generally prohibited by federal statute, which subjects violators to severe penalties, including exclusion from the Medicare and Medicaid programs, fines and even prison sentences. In recent years, both federal and state governments have significantly increased investigation and enforcement activity to detect and punish wrongdoers. In addition, legislation has been adopted at both state and federal levels which severely restrict the ability of physicians to refer patients to entities in which they have a financial interest.

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It is anticipated that the trend toward increased investigation and enforcement activity in the area of fraud and abuse, as well as self-referral, will continue in future years. Certain of our investments are with lessees or borrowers which are partially or wholly owned by physicians. In the event that any lessee or borrower were to be found in violation of laws regarding fraud and abuse or self-referral, that lessee's or borrower's ability to operate the facility as a health care facility could be jeopardized, which could adversely affect the lessee's or borrower's ability to make lease or debt payments to us and thereby adversely affect us.

Certificates of Need. The SNFs and hospitals in which we invest are also generally subject to state statutes which may require regulatory approval in the form of a CON prior to the construction or expansion of facilities to accommodate new beds (or addition of new beds to existing facilities), the addition of services or certain capital expenditures. CON requirements are not uniform throughout the United States and are subject to change. We cannot predict the impact of regulatory changes with respect to CONs on the operations of our lessees and borrowers; however, in our primary market areas, a significant reduction in new construction of long-term care beds has occurred.

Investment Policies

Our investment objectives are (i) to provide consistent and growing current income for distribution to our stockholders through investments primarily in health care related facilities or in the operations thereof through independent third-party management, (ii) to provide the opportunity to realize capital growth resulting from appreciation, if any, in the residual value of our portfolio properties, and (iii) to preserve and protect stockholders' capital through a balance of diversity, flexibility and liquidity. There can be no assurance that these objectives will be realized. Our investment policies include making investments in real estate, mortgage and other notes receivable and securities of other publicly-held REITs.

As described in the notes to the consolidated financial statements, we funded or made commitments to fund new investments in real estate and loans during 2013 totaling $751,585,000, and we anticipate making additional investments in 2014 that meet our underwriting criteria. In making new investments, we consider such factors as (i) the geographic area and type of property, (ii) the location, construction quality, condition and design of the property, (iii) the current and anticipated cash flow and its adequacy to meet operational needs, and lease or mortgage obligations to provide a competitive income return to our investors, (iv) the growth, tax and regulatory environments of the communities in which the properties are located, (v) occupancy and demand for similar health care facilities in the same or nearby communities, (vi) the quality, experience and creditworthiness of the management operating the facilities located on the property and (vii) the mix of private and government-sponsored residents. There can be no assurances that investments meeting our standards regarding these attributes will be found or closed.

We will not, without the approval of a majority of the Board of Directors, enter into any joint venture relationships with or acquire from or sell to any director, officer or employee of NHI, or any affiliate thereof, as the case may be, any of our assets or other property.

The Board of Directors, without the approval of the stockholders, may alter our investment policies if it determines that such a change is in our best interests and our stockholders’ best interests. The methods of implementing our investment policies may vary as new investment and financing techniques are developed or for other reasons.

Future investments in health care related facilities or businesses may utilize borrowed funds when it is advisable in the opinion of the Board of Directors. We may negotiate lines of credit or arrange for other short or long-term borrowings from lenders. We may arrange for long-term borrowings from institutional investors or through public offerings. We have previously invested and may in the future invest in properties subject to existing loans or secured by mortgages, deeds of trust or similar liens with favorable terms or in mortgage investment pools.

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Executive Officers of the Company

The table below sets forth the name, position and age of each of our executive officers. Each executive officer is appointed by the Board of Directors, serves at its pleasure and holds office for a term of one year. There is no “family relationship” among any of the named executive officers or with any director. All information is given as of February 12, 2014:

Name	Position	Age
J. Justin Hutchens	President and Chief Executive Officer	39
Roger R. Hopkins	Chief Accounting Officer	52
Kristin S. Gaines	Chief Credit Officer	42

J. Justin Hutchens joined NHI in February 2009 as President and COO. Pursuant to a succession plan, in March 2011 he was appointed CEO. Prior to joining NHI, Mr. Hutchens acquired 15 years of senior care operations experience. His background includes multi-site management with assisted living and skilled nursing facilities (1997 - 2003). He has national operating experience (2003 -2009) as the Senior Vice-President and COO of Summerville Senior Living and Executive Vice-President and COO of Emeritus Senior Living (NYSE: ESC). Mr. Hutchens holds a Master of Science in Management from Regis University and a Bachelor of Science in Human Services from the University of Northern Colorado. He was awarded Executive Certificates in Measurement and Control of Organizational Performance from the University of Michigan, and Strategy and Innovation from the MIT Sloan School of Management.

Roger R. Hopkins joined NHI in 2006 and was named Chief Accounting Officer in December 2006. He has over 30 years of public accounting and financial management experience. Until 2006, he was a partner in the Tennessee regional accounting firm of Rodefer Moss & Co, PLLC. He was previously a senior manager in the Nashville, Tennessee office of Deloitte & Touche. Mr. Hopkins received a Bachelor of Science degree in Accounting from Tennessee Technological University in 1982 and is a Certified Public Accountant.

Kristin S. Gaines was appointed NHI’s Chief Credit Officer in February 2010. She joined NHI in 1998 as a Credit Analyst. During her tenure with NHI, Ms. Gaines has had a progressive career in the areas of finance and operations. Her experience has resulted in a breadth of expertise in underwriting, portfolio oversight and real estate finance. Ms. Gaines holds an MBA and a BBA in Accounting from Middle Tennessee State University.

We have a staff of 11, all serving in our corporate office in Murfreesboro, TN. Essential services such as internal auditing, tax compliance, information technology, legal services, and investor relations are outsourced to third-party professional firms.

Investor Information

We maintain a web site at www.nhireit.com. We publish to this web site our annual report on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K, and press releases. We have a policy of publishing these on the website within two (2) business days after public release or filing with the SEC.

We also maintain the following documents on our web site:

▪ The NHI Code of Ethics and Standards of Conduct. This has been adopted for all employees, officers and directors of the Company. The website will also disclose whether there have been any amendments or waivers to the Code of Ethics and Standards of Conduct. To date there have been none.

▪ Information on our “NHI Valuesline” which allows all interested parties unrestricted access to our Internal Auditor, executive officers and directors. The toll free number is 877-880-2974 and the communications may be made anonymously, if desired.

▪ The NHI Restated Audit Committee Charter.

▪ The NHI Compensation Committee Charter.

▪ The NHI Nomination and Corporate Governance Committee Charter.

We will furnish, free of charge, a copy of any of the above documents to any interested investor upon receipt of a written request.

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Our transfer agent is Computershare. Computershare will assist registered owners with the NHI Dividend Reinvestment plan, change of address, transfer of ownership, payment of dividends, replacement of lost checks or stock certificates. Computershare’s contact information is: Computershare Trust Company, N.A., P.O. Box 43078, Providence, RI 02940-3078. The toll free number is 800-942-5909 and the website is www.computershare.com.

The Annual Stockholders’ meeting will be held at noon local time on Friday, May 2, 2014 at our corporate office at 222 Robert Rose Drive, Murfreesboro, TN.

ITEM 1A. RISK FACTORS

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.

Revenues to operators of our Health Care Facilities are primarily driven by occupancy, Medicare and Medicaid reimbursement and private pay rates. Revenues from government reimbursement have, and may continue to, come under pressure due to reimbursement cuts and from widely-publicized federal and state budget shortfalls and constraints. Overall weak economic conditions in the U.S. which affect housing sales, investment returns and personal incomes may adversely affect occupancy rates of ALFs that generally rely on private pay residents. Expenses for the Health Care Facilities are driven by the costs of labor, food, utilities, taxes, insurance and rent or debt service. Liability insurance and staffing costs continue to increase for our operators. To the extent any decrease in revenues and/or any increase in operating expenses results in a facility not generating enough cash to make scheduled payments to us, our revenues, net income and funds from operations would be adversely affected. Such events and circumstances would cause us to evaluate whether there was an impairment of the real estate or mortgage loan that should be charged to earnings. Such impairment would be measured as the amount by which the carrying amount of the asset exceeded its fair value. Consequently, we might be unable to maintain or increase our current dividend and the market price of our stock may decline.

We are exposed to the risk that our tenants and borrowers may not be able to meet the rent, principal and interest or other payments due us, which may result in an operator bankruptcy or insolvency, or that an operator might become subject to bankruptcy or insolvency proceedings for other reasons.

Although our operating lease agreements provide us the right to evict an operator, demand immediate payment of rent and exercise other remedies, and our mortgage loans provide us the right to terminate any funding obligations, demand immediate repayment of principal and unpaid interest, foreclose on the collateral and exercise other remedies, the bankruptcy laws afford certain rights to a party that has filed for bankruptcy or reorganization. An operator in bankruptcy may be able to limit or delay our ability to collect unpaid rent in the case of a lease or to receive unpaid principal and/or interest in the case of a mortgage loan and to exercise other rights and remedies. We may be required to fund certain expenses (e.g. real estate taxes, maintenance and capital improvements) to preserve the value of a facility, avoid the imposition of liens on a facility and/or transition a facility to a new operator. In some instances, we have terminated our lease with an operator and leased the facility to another operator. In some of those situations, we provided working capital loans to, and limited indemnification of, the new operator. If we cannot transition a leased facility to a new operator, we may take possession of that facility, which may expose us to certain successor liabilities. Should such events occur, our revenue and operating cash flow may be adversely affected.

We are exposed to risks related to governmental regulations and payors, principally Medicare and Medicaid, and the effect that lower reimbursement rates will have on our tenants’ and borrowers’ business.

Our operators’ businesses are affected by government reimbursement and private payor rates. To the extent that any of our Health Care Facilities receive a significant portion of its revenues from governmental payors, primarily Medicare and Medicaid, such revenues may be subject to statutory and regulatory changes, retroactive rate adjustments, recovery of program overpayments or set-offs, administrative rulings, policy interpretations, payment or other delays by fiscal intermediaries, government funding restrictions (at a program level or with respect to specific facilities) and interruption or delays in payments due to any ongoing governmental investigations and audits at such facilities. In recent years, governmental payors have frozen or reduced payments to health care providers due to budgetary pressures. Such reductions in Medicare reimbursement will have an adverse effect on the financial operations of our borrowers and lessees who operate SNFs. Changes in health care reimbursement will likely continue to be of paramount importance to federal and state authorities. We cannot make any assessment as to the ultimate timing or effect any future legislative reforms may have on the financial condition of the health care industry. There can be no assurance that adequate reimbursement levels will continue to be available for services provided by any facility operator, whether the facility receives reimbursement from Medicare, Medicaid or private payors. Significant limits on the scope of services reimbursed and on reimbursement rates and fees could have a material adverse effect on an operator’s liquidity, financial condition and results of operations, which could adversely affect the ability of an operator to meet its obligations to us. In addition, the replacement of an operator that has defaulted on its lease or loan could be delayed by the approval process of any federal, state or local agency necessary for the transfer of the facility or the replacement of the operator licensed to manage the facility.

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.

ALF and SNF operators have experienced substantial increases in both the number and size of patient care liability claims in recent years, particularly in the states of Texas and Florida. As a result, general and professional liability costs have increased and

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may continue to increase. Nationwide, long-term care liability insurance rates are increasing because of large jury awards in states like Texas and Florida. Both Texas and Florida have now adopted SNF liability laws that modify or limit tort damages. Despite some of these reforms, the long-term care industry overall continues to experience very high general and professional liability costs. Insurance companies have responded to this claims crisis by severely restricting their capacity to write long-term care general and professional liability policies. No assurance can be given that the climate for long-term care general and professional liability insurance will improve in any of the foregoing states or any other states where the facility operators conduct business. Insurance companies may continue to reduce or stop writing general and professional liability policies for ALFs and SNFs. Thus, general and professional liability insurance coverage may be restricted, very costly or not available, which may adversely affect the facility operators’ future operations, cash flows and financial condition and may have a material adverse effect on the facility operators’ ability to meet their obligations to us.

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

Under various federal and state laws, owners or operators of real property may be required to respond to the release of hazardous substances on the property and may be held liable for property damage, personal injuries or penalties that result from environmental contamination. These laws also expose us to the possibility that we may become liable to reimburse the government for damages and costs it incurs in connection with the contamination. Generally, such liability attaches to a person based on the person’s relationship to the property. Our tenants or borrowers are primarily responsible for the condition of the property and since we are a passive landlord, we do not “participate in the management” of any property in which we have an interest. Moreover, we review environmental site assessment of the properties that we own or encumber prior to taking an interest in them. Those assessments are designed to meet the “all appropriate inquiry” standard, which qualifies us for the innocent purchaser defense if environmental liabilities arise. Based upon such assessments, we do not believe that any of our properties are subject to material environmental contamination. However, environmental liabilities, including mold, may be present in our properties and we may incur costs to remediate contamination, which could have a material adverse effect on our business or financial condition.

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

Our leases require that the lessee name us as an additional insured party on the tenant’s insurance policy in regard to claims made for professional liability or personal injury. The leases also require the tenant to indemnify and hold us harmless for all claims resulting from the occupancy and use of each Health Care Facility. We cannot give any assurance that these protective measures will completely eliminate any risk to us related to future litigation, the costs of which could have a material adverse impact on us.

We depend on the success of future acquisitions and investments.

We are exposed to the risk that our future acquisitions may not prove to be successful. We could encounter unanticipated difficulties and expenditures relating to any acquired properties, including contingent liabilities, and newly acquired properties might require significant management attention that would otherwise be devoted to our existing business. If we agree to provide construction funding to an operator and the project is not completed, we may need to take steps to ensure completion of the project or we could lose the property. Moreover, if we issue equity securities or incur additional debt, or both, to finance future acquisitions, it may reduce our per share financial results. These costs may negatively affect our results of operations.

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

From time to time, we will have cash available from (1) the proceeds of sales of our securities, (2) principal payments on our notes receivable and (3) the sale of properties, including non-elective dispositions, under the terms of master leases or similar financial support arrangements. We must reinvest these proceeds, on a timely basis, in health care investments or in qualified short-term investments. We compete for real estate investments with a broad variety of potential investors. This competition for attractive investments may negatively affect our ability to make timely investments on terms acceptable to us. Delays in acquiring properties may negatively impact revenues and the amount of distributions to stockholders.

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

We operate with a policy of incurring debt when, in the opinion of our Board of Directors, it is advisable. Currently, we believe that our current liquidity, availability under our unsecured credit facility, and our capacity to service additional debt will enable us to meet our obligations, including dividends, and continue to make investments in healthcare real estate. While we currently have a very low debt ratio, in the future, we may increase our borrowings. We may incur additional debt by borrowing under our unsecured credit facility, mortgaging properties we own and/or issuing debt securities in a public offering or in a private transaction.

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We believe we will be able to raise additional debt and equity capital at reasonable costs to refinance our credit facility at or prior to its maturity. Our ability to raise reasonably priced capital is not guaranteed; we may be unable to raise reasonably priced capital because of reasons related to our business or for reasons beyond our control, such as market conditions. If our access to capital becomes limited, it could have an impact on our ability to refinance our debt obligations, fund dividend payments, acquire properties and fund acquisition activities.

We have covenants related to our indebtedness which impose certain operational limitations and a breach of those covenants could materially adversely affect our financial condition and results of operations.

The terms of our current indebtedness as well as debt instruments that the Company may enter into in the future are subject to customary financial and operational covenants. Among other things, these provisions require us to maintain certain financial ratios and minimum net worth and impose certain limits on our ability to incur indebtedness, create liens and make investments or acquisitions. Our continued ability to incur debt and operate our business is subject to compliance with these covenants, which limit operational flexibility. Breaches of these covenants could result in a default under applicable debt instruments, even if payment obligations are satisfied. Financial and other covenants that limit our operational flexibility, as well as defaults resulting from a breach of any of these covenants in our debt instruments, could have a material adverse effect on our financial condition and results of operations.

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.

Real estate investments are relatively illiquid and, therefore, our ability to quickly sell or exchange any of our properties in response to changes in economic and other conditions may be limited. All of our properties are "special purpose" properties that cannot be readily converted to general residential, retail or office use. Health Care Facilities that participate in Medicare or Medicaid must meet extensive program requirements, including physical plant and operational requirements, which are revised from time to time. Transfers of operations of Health Care Facilities are subject to regulatory approvals not required for transfers of other types of commercial operations and other types of real estate. Thus, if the operation of any of our properties becomes unprofitable due to competition, age of improvements or other factors such that our lessee or borrower becomes unable to meet its obligations on the lease or mortgage loan, the liquidation value of the property may be less than the net book value or the amount owed on any related mortgage loan, because the property may not be readily adaptable to other uses. The sale of the property or the replacement of an operator that has defaulted on its lease or loan could also be delayed by the approval process of any federal, state or local agency necessary for the transfer of the property or the replacement of the operator with a new operator licensed to manage the facility. No assurances can be given that we will recognize full value for any property that we are required to sell for liquidity reasons. Should such events occur, our results of operations and cash flows could be adversely affected.

We are exposed to risks associated with our investments in unconsolidated entities, including our lack of sole decision-making authority and our reliance on the financial condition of other interests.

Our investments in unconsolidated entities could be adversely affected by our lack of sole decision-making authority regarding major decisions, our reliance on the financial condition of other interests, any disputes that may arise between us and other partners, and our exposure to potential losses from the actions of partners. Risks of dealing with parties outside NHI include limitations on unilateral major decisions opposed by other interests, the prospect of divergent goals of ownership including the likelihood of disputes regarding management, ownership or disposition of a property, or limitations on the transfer of our interests without the consent of our partners. Risks of the unconsolidated entity extend to areas in which the financial health of our partners may impact our plans. Our partners might become bankrupt or fail to fund their share of required capital contributions, which may hinder significant action in the entity. We may disagree with our partners about decisions affecting a property or the entity itself, which could result in litigation or arbitration that increases our expenses, distracts our officers and directors and disrupts the day-to-day operations of the property, including by delaying important decisions until the dispute is resolved; and finally, we may suffer losses as a result of actions taken by our partners with respect to our investments.

We depend on revenues derived mainly from fixed rate investments in real estate assets, while our debt capital used to finance those investments is primarily at variable rates. This circumstance creates interest rate risk to the Company.

Our business model assumes that we can earn a spread between the returns earned from our investments in real estate as compared to our cost of capital, including debt and/or equity. Current interest rates on our debt are at historically low levels, and, as a result, the spread and our profitability on our investments have been at high levels. We are exposed to interest rate risk in the potential for a narrowing of our spread and profitability if interest rates increase in the future. Certain of our debt obligations are floating rate obligations with interest rates that vary with the movement of LIBOR or other indexes. Our revenues are derived mainly from fixed rate investments in real estate assets. Although our leases generally contain escalating rent clauses that provide

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a partial hedge against interest rate fluctuations, if interest rates rise, our interest costs for our existing floating rate debt and any new debt we incur would also increase. This increasing cost of debt could reduce our profitability by increasing the cost of financing our existing portfolio and our investment activity. Rising interest rates could limit our ability to refinance existing debt upon maturity or cause us to pay higher rates upon refinancing. We manage a portion of our exposure to interest rate risk by accessing debt with staggered maturities and through the use of derivative instruments, primarily interest rate swap agreements with major financial institutions. Increased interest rates may also negatively affect the market price of our common stock and increase the cost of new equity capital.

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

We periodically, but not less than quarterly, evaluate our real estate investments and other assets for impairment indicators. The judgment regarding the existence of impairment indicators is based on factors such as market conditions, operator performance and legal structure. If we determine that a significant impairment has occurred, we would be required to make an adjustment to the net carrying value of the asset, which could have a material adverse effect on our reported results of operations in the period in which the impairment charge occurs.

We depend on the ability to continue to qualify as a REIT.

We intend to operate as a REIT under the Internal Revenue Code of 1986, as amended (the “Internal Revenue Code”) and believe we have and will continue to operate in such a manner. Since REIT qualification requires us to meet a number of complex requirements, it is possible that we may fail to fulfill them, and if we do, our earnings will be reduced by the amount of federal taxes owed. A reduction in our earnings would affect the amount we could distribute to our stockholders.

We have ownership limits in our charter with respect to our common stock and other classes of capital stock which may delay, defer or prevent a transaction or a change of control that might involve a premium price for our common stock or might otherwise be in the best interests of our stockholders.

Our charter, subject to certain exceptions, contains restrictions on the ownership and transfer of our common stock and preferred stock that are intended to assist us in preserving our qualification as a REIT. Our charter, provides that any transfer that would cause NHI to be beneficially owned by fewer than 100 persons or would cause NHI to be “closely held” under the Internal Revenue Code would be void, which, subject to certain exceptions, results in no person or entity being allowed to own, actually or constructively, more than 9.9% of the outstanding shares of our stock. Our Board of Directors, in its sole discretion, may exempt a proposed transferee from the ownership limit and such an exemption has been granted through Excepted Holder Agreements to members of the Carl E. Adams family. Based on the Excepted Holder Agreements currently outstanding, the individual ownership limit for all other stockholders is approximately 7.5%. Our charter gives our Board of Directors broad powers to prohibit and rescind any attempted transfer in violation of the ownership limits. These ownership limits may delay, defer or prevent a transaction or a change of control that might involve a premium price for our common stock or might otherwise be in the best interests of our stockholders.

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.

The Maryland Business Combination Act provides that, unless exempted, a Maryland corporation may not engage in business combinations, including mergers, dispositions of 10% or more of its assets, issuances of shares of stock and other specified transactions with an "interested stockholder" or an affiliate of an interested stockholder for five years after the most recent date on which the interested stockholder became an interested stockholder, and thereafter, unless specified criteria are met. An interested stockholder is generally a person owning or controlling, directly or indirectly, 10% or more of the voting power of the outstanding stock of a Maryland corporation. Unless our Board of Directors takes action to exempt us, generally or with respect to certain transactions, from this statute in the future, the Maryland Business Combination Act will be applicable to business combinations between us and other persons. The Company’s Charter and Bylaws also contain certain provisions that could have the effect of making it more difficult for a third party to acquire, or discouraging a third party from attempting to acquire, control of the Company. Such provisions could limit the price that certain investors might be willing to pay in the future for the common stock. These provisions include a staggered board of directors, blank check preferred stock, and the application of Maryland corporate law provisions on business combinations and control shares. The foregoing matters may, together or separately, have the effect of discouraging or making more difficult an acquisition or change of control of the Company.

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Other risks.

See the notes to the consolidated financial statements, “Business” under Item 1 and “Legal Proceedings” under Item 3 herein for a discussion of various governmental regulations and operating factors relating to the health care industry and other factors and the risks inherent in them. You should carefully consider each of the foregoing risks before making any investment decisions in the Company. These risks and uncertainties are not the only ones facing us. There may be additional risks that we do not presently know of or that we currently deem immaterial. If any of the risks actually occur, our business, financial condition or results of operations could be materially adversely affected. In that case, the trading price of our shares of stock could decline, and you may lose all or part of your investment. Given these risks and uncertainties, we can give no assurance that these forward-looking statements will, in fact, occur and, therefore, caution investors not to place undue reliance on them.

ITEM 1B. UNRESOLVED STAFF COMMENTS.

None.

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ITEM 2. PROPERTIES OWNED OR ASSOCIATED WITH MORTGAGE LOAN INVESTMENTS AS OF DECEMBER 31, 2013

SKILLED NURSING			Lease (L)/	Licensed
Center	City	State	Mortgage (M)	Beds
NHC HealthCare, Anniston	Anniston	AL	L	151
NHC HealthCare, Moulton	Moulton	AL	L	136
Sunbridge Estrella Care & Rehabilitation	Avondale	AZ	L	161
Ayers Health & Rehabilitation Center	Trenton	FL	L	120
Bayonet Point Health & Rehabilitation Center	Hudson	FL	L	180
Bear Creek Nursing Center	Hudson	FL	L	120
Brooksville Healthcare Center	Brooksville	FL	L	180
Cypress Cove Care Center	Crystal River	FL	L	120
Heather Hill Healthcare Center	New Port Richey	FL	L	120
Parkway Health & Rehabilitation Center	Stuart	FL	L	177
Royal Oak Nursing Center	Dade City	FL	L	120
The Health Center of Merritt Island	Merritt Island	FL	L	180
The Health Center of Plant City	Plant City	FL	L	180
Grangeville Health and Rehabilitation Center	Grangeville	ID	L	60
NHC HealthCare, Glasgow	Glasgow	KY	L	206
Buckley HealthCare Center	Greenfield	MA	L	120
Holyoke Health Care Center	Holyoke	MA	L	102
John Adams HealthCare Center	Quincy	MA	L	71
Longmeadow of Taunton	Taunton	MA	L	100
NHC Healthcare, Desloge	Desloge	MO	L	120
NHC Healthcare, Joplin	Joplin	MO	L	126
NHC Healthcare, Kennett	Kennett	MO	L	170
NHC Healthcare, Maryland Heights	Maryland Heights	MO	L	220
NHC HealthCare, St. Charles	St. Charles	MO	L	120
Maple Leaf HealthCare Center	Manchester	NH	L	114
Villa Crest HealthCare Center	Manchester	NH	L	165
Epsom Manor HealthCare Center	Epsom	NH	L	108
NHC Healthcare, Anderson	Anderson	SC	L	290
NHC Healthcare, Greenwood	Greenwood	SC	L	152
NHC HealthCare, Laurens	Laurens	SC	L	176
UniHealth Post-Acute Care-Orangeburg	Orangeburg	SC	L	88
NHC Healthcare, Athens	Athens	TN	L	98
NHC Healthcare, Chattanooga	Chattanooga	TN	L	207
NHC HealthCare, Dickson	Dickson	TN	L	211
NHC HealthCare, Franklin	Franklin	TN	L	80
NHC Healthcare, Hendersonville	Hendersonville	TN	L	122
NHC Healthcare, Johnson City	Johnson City	TN	L	160
NHC Healthcare, Lewisburg	Lewisburg	TN	L	102
NHC HealthCare, McMinnville	McMinnville	TN	L	150
NHC HealthCare, Milan	Milan	TN	L	122
NHC Healthcare, Oakwood	Lewisburg	TN	L	60
NHC HealthCare, Pulaski	Pulaski	TN	L	102
NHC Healthcare, Scott	Lawrenceburg	TN	L	62
NHC HealthCare, Sequatchie	Dunlap	TN	L	120
NHC HealthCare, Smithville	Smithville	TN	L	120

18

SKILLED NURSING			Lease (L)/	Licensed
Center	City	State	Mortgage (M)	Beds
NHC Healthcare, Somerville	Somerville	TN	L	84
NHC Healthcare, Sparta	Sparta	TN	L	120
Canton Oaks	Canton	TX	L	120
Corinth Rehabilitation Suites	Corinth	TX	L	134
Heritage Place	Mesquite	TX	L	149
Legend Healthcare & Rehabilitation	Paris	TX	L	120
Legend Oaks Healthcare & Rehabilitation Center (East)	Houston	TX	L	125
Legend Oaks Healthcare & Rehabilitation Center (Northwest)	Houston	TX	L	125
Legend Oaks Healthcare & Rehabilitation Center	San Antonio	TX	L	125
Legend Oaks Healthcare & Rehabilitation Center - Ennis	Ennis	TX	L	124
Legend Healthcare & Rehabilitation	Greenville	TX	L	125
Legend Oaks Healthcare & Rehabilitation Center	Houston	TX	L	124
Legend Oaks Healthcare & Rehabilitation Center	Houston	TX	L	125
Legend Oaks Healthcare & Rehabilitation Center	Kyle	TX	L	126
Park Place Care Center	Georgetown	TX	M	164
Winterhaven Healthcare Center	Houston	TX	L	160
Heritage Hall - Brookneal	Brookneal	VA	M	60
Heritage Hall - Grundy	Grundy	VA	M	120
Heritage Hall - Laurel Meadows	Laurel Fork	VA	M	60
Heritage Hall - Virginia Beach	Virginia Beach	VA	M	90
Heritage Hall - Front Royal	Front Royal	VA	M	60
Heritage Hall - Lexington	East Lexington	VA	M	60
NHC HealthCare, Bristol	Bristol	VA	L	120
ASSISTED LIVING
Regency Pointe Retirement Community	Rainbow City	AL	L	120
The Place at Gilbert	Gilbert	AZ	L	40
The Place at Glendale	Glendale	AZ	L	38
The Place at Tanque Verde	Tucson	AZ	L	42
The Place at Tucson	Tucson	AZ	L	60
Brentwood at Fore Ranch	Ocala	FL	M	120
Indigo Palms at Maitland	Maitland	FL	L	116
Savannah Court of Bartow	Bartow	FL	L	30
Savannah Court of St. Cloud	St. Cloud	FL	L	30
Savannah Court of Lakeland	Lakeland	FL	L	30
Savannah Court at Lake Oconee	Greensboro	GA	L	64
Bickford of Ames*	Ames	IA	L	37
Bickford of Burlington*	Burlington	IA	L	44
Bickford of Cedar Falls	Cedar Falls	IA	L	42
Bickford of Clinton	Clinton	IA	L	37
Bickford of Ft. Dodge*	Ft. Dodge	IA	L	38
Bickford of Iowa City	Iowa City	IA	L	37
Bickford of Marshalltown*	Marshalltown	IA	L	38
Bickford of Muscatine*	Muscatine	IA	L	45
Bickford of Urbandale*	Urbandale	IA	L	61
Indianhead Estates	Weiser	ID	L	25
Bickford of Bourbonnais*	Bourbonnais	IL	L	65
Bickford of Moline*	Moline	IL	L	28

19

ASSISTED LIVING			Lease (L)/	Licensed
Center	City	State	Mortgage (M)	Beds
Bickford of Peoria	Peoria	IL	L	32
Bickford of Quincy*	Quincy	IL	L	46
Bickford of Rockford*	Rockford	IL	L	65
Bickford of Springfield*	Springfield	IL	L	67
Bickford of Carmel**	Carmel	IN	L	60
Bickford of Crawfordsville*	Crawfordsville	IN	L	28
Bickford of Crown Point	Crown Point	IN	L	60
Bickford of Greenwood	Greenwood	IN	L	60
Bickford of Lafayette	LaFayette	IN	L	28
Bickford of Wabash	Wabash	IN	L	28
Bickford of Mission Springs	Mission	KS	L	91
Bickford of Overland Park	Overland Park	KS	L	79
West Monroe Arbors	West Monroe	LA	L	59
Bossier Arbors	Bossier City	LA	L	60
Bastrop Arbors	Bastrop	LA	L	38
Minden Arbors	Minden	LA	L	26
The Woodlands Assisted Living	Baltimore	MD	L	70
Bickford of Battle Creek	Battle Creek	MI	L	46
Bickford of Lansing	Lansing	MI	L	46
Bickford of Midland	Midland	MI	L	46
Bickford of Saginaw	Saginaw	MI	L	46
Traditions	Owatonna	MN	M	70
Gracewood Champlin	Champlin	MN	L	30
Gracewood Hugo	Hugo	MN	L	24
Gracewood Maplewood	Maplewood	MN	L	42
Gracewood North Branch	North Branch	MN	L	30
Bickford of Grand Island	Grand Island	NE	L	37
Bickford of Lincoln*	Lincoln	NE	L	44
Bickford of Omaha Hickory*	Omaha	NE	L	37
Halcyon Village	Marysville	OH	L	76
Dorian Place	Ontario	OR	L	44
Wellsprings	Ontario	OR	L	32
The Place at Conway	Conway	SC	L	52
The Place at Gallatin	Gallatin	TN	L	49
The Place at Kingsport	Kingsport	TN	L	49
The Place at Tullahoma	Tullahoma	TN	L	49
Charleston House	Beaver Dam	WI	L	120
INDEPENDENT LIVING
Apple Blossom Independent Senior Living Community	Rogers	AR	L	119
Butterfield Place Independent Senior Living Community	Fort Smith	AR	L	117
Bay Park Independent Senior Living Community	Pinole	CA	L	98
Bridgecreek Independent Senior Living Community	West Covina	CA	L	108
Camelot Independent Senior Living Community	Hemet	CA	L	136
Fig Garden Independent Senior Living Community	Fresno	CA	L	103
Hampshire Independent Senior Living Community	Merced	CA	L	115
Mistywood Independent Senior Living Community	Roseville	CA	L	117
Standiford Place Independent Senior Living Community	Modesto	CA	L	121

20

INDEPENDENT LIVING
Center	City	State	Mortgage (M)	Beds
Standiford Place Independent Senior Living Community	Modesto	CA	L	121
Iris Place Independent Senior Living Community	Athens	GA	L	142
Riverplace Independent Senior Living Community	Columbus	GA	L	114
River's Edge Independent Senior Living Community	Savannah	GA	L	121
Chateau De Boise Independent Senior Living Community	Boise	ID	L	97
Arbor Glen Independent Senior Living Community	Fort Wayne	IN	L	120
Nouveau Marc Independent Senior Living Community	Kenner	LA	L	113
Lake St. Charles Retirement Center	St. Charles	MO	L	180
Yardley Commons Independent Senior Living Community	Voorhees	NJ	L	107
Worthington Independent Senior Living Community	Gahanna	OH	L	117
Silver Arrow Estates Independent Senior Living Community	Broken Arrow	OK	L	126
Astor House Independent Senior Living Community	Newberg	OR	L	121
Eagle Crest Independent Senior Living Community	Myrtle Beach	SC	L	120
Westminster Independent Senior Living Community	Greenville	SC	L	117
Colonial Hill Retirement Center	Johnson City	TN	L	63
Parkwood Retirement Apartments	Chattanooga	TN	L	30
Bedford Independent Senior Living Community	Vancouver	WA	L	103
Garden Club Independent Senior Living Community	Bellevue	WA	L	105
Kamlu Retirement Inn Independent Senior Living Community	Vancouver	WA	L	83
Orchard Park Independent Senior Living Community	Yakima	WA	L	101
SENIOR LIVING CAMPUS
Linda Valley Care Center	Loma Linda	CA	L	181
Savannah Court of Maitland	Maitland	FL	L	151
Savannah Court of Palm Beaches	W. Palm Beach	FL	L	144
Sunbridge Retirement & Rehab for Nampa	Nampa	ID	L	183
East Cascade Retirement Community	Madras	OR	M	76
Sante Silverdale	Silverdale	WA	L	138
HOSPITALS
Santé Mesa	Mesa	AZ	M	70
Alvarado Parkway Institute	La Mesa	CA	L	66
Kentucky River Hospital	Jackson	KY	L	55
TrustPoint Hospital (Polaris)	Murfreesboro	TN	L	60
MEDICAL OFFICE				Sq. Ft.
North Okaloosa	Crestview	FL	L	27,017
Pasadena Bayshore	Pasadena	TX	L	61,500
Corporate Office	Murfreesboro	TN	N/A	7,000

* These properties are encumbered by a mortgage with an outstanding balance of $80,080,000 at December 31, 2013.

** Under construction

21

10-YEAR LEASE EXPIRATIONS

The following table provides additional information on our leases which are scheduled to expire based on the maturity date contained in the most recent lease agreement or extension.  We expect that, prior to maturity, we will negotiate new terms of a lease to either the current tenant or another qualified operator.

				Annualized		Percentage of
	Leases	Rentable	Number	Gross Rent**		Annualized
Year	Expiring	Square Feet*	of Units/Beds	(in thousands)		Gross Rent
2014	1	—	60	$	306	.19	%
2015	—	—	—	—		—	%
2016	4	—	604	4,154		2.60	%
2017	23	—	1,665	17,070		10.70	%
2018	16	61,500	731	11,595		7.27	%
2019	—	—	—	—		—	%
2020	6	27,017	224	2,876		1.80	%
2021	2	—	344	1,904		1.19	%
2022	4	—	156	3,672		2.30	%
2023	2	—	254	2,968		1.86	%
Thereafter	99	—	11,085	114,978		72.08	%

*Rentable Square Feet represents total square footage in two MOB investments.

**Annualized Gross Rent refers to the amount of lease revenue that our portfolio would generate if all leases were in effect for the twelve-month calendar year, regardless of the commencement date, maturity date, or renewals.

ITEM 3. LEGAL PROCEEDINGS

Our Health Care Facilities are subject to claims and suits in the ordinary course of business. Our lessees and borrowers have indemnified, and are obligated to continue to indemnify us, against all liabilities arising from the operation of the Health Care Facilities, and are further obligated to indemnify us against environmental or title problems affecting the real estate underlying such facilities. While there may be lawsuits pending against certain of the owners and/or lessees of the Health Care Facilities, management believes that the ultimate resolution of all such pending proceedings will have no material adverse effect on our financial condition, results of operations or cash flows.

ITEM 4. MINE SAFETY DISCLOSURES

Not Applicable

22

PART II.

ITEM 5. MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES.

The Company’s charter contains certain provisions which are designed to ensure that the Company’s status as a REIT is protected for federal income tax purposes. One of these provisions provides that any transfer that would cause NHI to be beneficially owned by fewer than 100 persons or would cause NHI to be “closely held” under the IRS Code would be void, which, subject to certain exceptions, results in no stockholder being allowed to own, either directly or indirectly pursuant to certain tax attribution rules, more than 9.9% of the Company’s stock. In 1991, the Board created an exception to this ownership limitation for Dr. Carl E. Adams, his spouse, Jennie Mae Adams, and their lineal descendants. Effective May 12, 2008, we entered into Excepted Holder Agreements with W. Andrew Adams and certain members of his family. These written agreements are intended to restate and replace the parties’ prior verbal agreement. Based on the Excepted Holder Agreements currently outstanding, the individual ownership limit for all other stockholders is approximately 7.5%. Our charter gives our Board of Directors broad powers to prohibit and rescind any attempted transfer in violation of the ownership limits. These agreements were entered into in connection with the Company’s announcement in 2008 of a stock purchase program pursuant to which the Company subsequently purchased 194,100 shares of its common stock in the public market from its stockholders.

A separate agreement was entered into with each of the spouse and children of Dr. Carl E. Adams and others within Mr. W. Andrew Adams’ family. We needed to enter into such an agreement with each family member because of the complicated ownership attribution rules under the Internal Revenue Code. The agreement permits the Excepted Holders to own stock in excess of 9.9% up to the limit specifically provided in the individual agreement and not lose rights with respect to such shares. However, if the stockholder’s stock ownership exceeds the limit, then such shares in excess of the limit become “Excess Stock” and lose voting rights and entitlement to receive dividends. The Excess Stock classification remains in place until the stockholder no longer exceeds the threshold limit specified in the Agreement. The purpose of these agreements is to ensure that the Company does not violate the prohibition against a REIT being closely held.

W. Andrew Adams’ Excess Holder Agreement also provides that he will not own shares of stock in any tenant of the Company if such ownership would cause the Company to constructively own more than a 9.9% interest in such tenant. Again, this prohibition is designed to protect the Company’s status as a REIT for tax purposes.

In order to qualify for the beneficial tax treatment accorded to a REIT, we must make distributions to holders of our common stock equal on an annual basis to at least 90% of our REIT taxable income (excluding net capital gains), as defined in the Internal Revenue Code. Cash available for distribution to our stockholders is primarily derived from interest payments received on our notes and from rental payments received under our leases. All distributions will be made by us at the discretion of the Board of Directors and will depend on our cash flow and earnings, our financial condition, bank covenants contained in our financing documents and such other factors as the Board of Directors deems relevant. Our REIT taxable income is calculated without reference to our cash flow. Therefore, under certain circumstances, we may not have received cash sufficient to pay our required distributions.

Our common stock is traded on the New York Stock Exchange under the symbol “NHI”. As of February 7, 2014, there were approximately 831 holders of record of shares and approximately 28,800 beneficial owners of shares.

High and low stock prices of our common stock on the New York Stock Exchange and dividends declared for the last two years were:

	2013					2012
	Sales Price				Cash Dividends Declared	Sales Price				Cash Dividends Declared
Quarter Ended	High		Low			High		Low
March 31	$	67.18	$	57.24	$.695	$	51.29	$	43.37	$.65
June 30	72.99		56.20		.735	51.63		47.16		.65
September 30	65.94		53.01		.735	54.81		51.00		.67
December 31	64.00		56.00		.735	57.30		51.00		.891

¹Includes a special dividend of $0.22 per share

The closing price of our stock on February 13, 2014 was $62.09.

23

We currently maintain two equity compensation plans: the 2005 Stock Option, Restricted Stock and Stock Appreciation Rights Plan (“the 2005 Plan”) and the 2012 Stock Incentive Plan ("the 2012 Plan"). These plans have been approved by our stockholders. The following table provides information as of December 31, 2013 about our common stock that may be issued upon grants of restricted stock and the exercise of options under our existing equity compensation plans.

	Number of securities to be issued upon exercise of outstanding options, warrants and rights	Weighted-average exercise price of outstanding options, warrants and rights	Number of securities remaining available for future issuance under equity compensation plans (excluding securities reflected in the first column)
Equity compensation plans approved
by security holders	516,674	$59.20	1,160,6351

¹These shares remain available for grant under the 2005 Plan and the 2012 Plan.

The following graph demonstrates the performance of the cumulative total return to the stockholders of our common stock during the previous five years in comparison to the cumulative total return on the FTSE NAREIT All REITs Index and the Standard & Poor’s 500 Stock Index. The FTSE NAREIT All REITs Index is comprised of all tax-qualified REITs that are listed on the New York Stock Exchange, the American Stock Exchange or the NASDAQ National Market List. The FTSE NAREIT All REITs Index is not free float adjusted, and constituents are not required to meet minimum size and liquidity criteria.

	2008	2009	2010	2011	2012	2013
NHI	$100.00	$146.23	$188.96	$195.14	$265.04	$275.75
NAREIT	$100.00	$127.46	$128.74	$129.81	$155.90	$160.89
S&P 500	$100.00	$126.46	$145.50	$148.57	$172.34	$228.16

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ITEM 6. SELECTED FINANCIAL DATA.

The following table represents our financial information for the five years ended December 31, 2013. This financial information has been derived from our historical financial statements including those for the most recent three years included elsewhere in this Annual Report on Form 10-K and should be read in conjunction with those consolidated financial statements, accompanying footnotes and Management’s Discussion and Analysis of Financial Condition and Results of Operations in Item 7. Prior period financial information has been reclassified for presentation of operations discontinued in 2013 as described in the notes to the consolidated financial statements. These reclassifications had no impact on previously reported net income.

(in thousands, except share and per share amounts)
	Years Ended December 31,
STATEMENT OF INCOME DATA:	2013			2012			2011		2010		2009
Revenues	$	117,828		$	93,317		$	83,739	$	79,423	$	65,211
Income from continuing operations	79,498			72,834			69,817		58,729		53,682
Discontinued operations:
Income from operations - discontinued	5,426			6,098			7,967		8,688		10,548
Gain on sales of real estate	22,258			11,966			3,348		2,004		—
Net income	107,182			90,898			81,132		69,421		64,230
Net income attributable to noncontrolling interest	(999		)	(167		)	—		—		—
Net income attributable to common stockholders	$	106,183		$	90,731		$	81,132	$	69,421	$	64,230
PER SHARE DATA:
Basic earnings per common share:
Income from continuing operations	$	2.77		$	2.61		$	2.52	$	2.12	$	1.95
Discontinued operations	.97			.65			.41		.39		.38
Net income attributable to common stockholders	$	3.74		$	3.26		$	2.93	$	2.51	$	2.33
Diluted earnings per common share:
Income from continuing operations	$	2.77		$	2.61		$	2.51	$	2.12	$	1.94
Discontinued operations	.97			.65			.41		.38		.38
Net income attributable to common stockholders	$	3.74		$	3.26		$	2.92	$	2.50	$	2.32
OTHER DATA:
Common shares outstanding	33,051,176			27,857,217			27,751,208		27,689,392		27,629,505
Weighted average common shares:
Basic	28,362,398			27,811,813			27,719,096		27,664,482		27,586,338
Diluted	28,397,702			27,838,720			27,792,592		27,732,959		27,618,300
Regular dividends declared per common share	$	2.90		$	2.64		$	2.495	$	2.36	$	2.20
Special dividends declared per common share	$	—		$	.22		$	.22	$	—	$	.10
BALANCE SHEET DATA: (at year end)
Mortgages and other notes receivable, net	$	60,639		$	84,250		$	78,672	$	75,465	$	94,588
Real estate properties, net	$	1,247,740		$	535,390		$	394,795	$	327,654	$	223,861
Preferred stock and marketable securities	$	50,782		$	51,016		$	49,496	$	60,608	$	59,454
Assets held for sale, net	$	—		$	1,611		$	29,381	$	36,853	$	33,420
Total assets	$	1,455,820		$	705,981		$	579,563	$	509,341	$	459,360
Debt	$	617,080		$	203,250		$	97,300	$	37,765	$	—
Total equity	$	777,160		$	468,047		$	443,485	$	442,500	$	434,612

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ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.

The following discussion and analysis is based primarily on the consolidated financial statements of National Health Investors, Inc. for the periods presented and should be read together with the notes thereto contained in this Annual Report on Form 10-K. Other important factors are identified in “Item 1. Business” and “Item 1A. Risk Factors” above.

Executive Overview

National Health Investors, Inc., incorporated under the laws of Maryland in 1991, is a real estate investment trust ("REIT") which invests in income-producing health care properties primarily in the long-term care and senior housing industries. As of December 31, 2013, our portfolio consisted of real estate, mortgage and note investments and other investments in the preferred stock and marketable securities of other REITs. We are a self-managed REIT investing in health care real estate or in the operations thereof through independent third-party managers that generate current income to be distributed to stockholders. We have pursued this mission by investing primarily in leased properties, loans and RIDEA transactions. These investments include senior housing, skilled nursing facilities, hospitals and medical office buildings, all of which are collectively referred to herein as "Health Care Facilities." Senior housing includes assisted living facilities, senior living campuses, and independent living facilities. We typically fund these investments through three sources of capital: (1) debt offerings, including bank lines of credit and ordinary term debt, (2) current cash flow, and (3) the sale of equity securities.

Portfolio

At December 31, 2013, our continuing operations were comprised of investments in real estate and mortgage and other notes receivable in 168 health care facilities located in 30 states consisting of 94 senior housing communities, 68 skilled nursing facilities, 4 hospitals, 2 medical office buildings and other notes receivable. These investments (excluding our corporate office of $882,000) consisted of properties with an original cost of approximately $1,421,120,000, rented under triple-net leases to 23 lessees, and $60,639,000 aggregate carrying value of mortgage and other notes receivable due from 15 borrowers.

26

The following tables summarize our investments in real estate and mortgage and other notes receivable as of December 31, 2013 (dollars in thousands):

Real Estate Properties			Properties	Beds/Sq. Ft.*		Revenue
	Assisted Living		58	2,857		$	29,559
	Senior Living Campus		5	797		6,827
	Independent Living		28	3,114		2,329
	Senior Housing Communities		91	6,768		38,715
	Skilled Nursing Facilities		61	8,174		59,058
	Hospitals		3	181		7,171
	Medical Office Buildings		2	88,517	*	1,085
		Total Real Estate Properties	157			$	106,029
Mortgage and Other Notes Receivable
	Assisted Living		2	190		$	732
	Senior Living Campus		1	76		115
	Senior Housing Communities		3	266		847
	Skilled Nursing Facilities		7	594		2,777
	Hospital		1	70		1,203
	Other Notes Receivable		—	—		2,781
		Total Mortgage and Other Notes Receivable	11			$	7,608
		Total Portfolio	168			$	113,637

Portfolio Summary			Properties	Investment %		Revenue
	Real Estate Properties		157	93.3	%	$	106,029
	Mortgage and Other Notes Receivable		11	6.7	%	7,608
		Total Portfolio	168	100.0	%	$	113,637
Summary of Facilities by Type
	Assisted Living		60	26.7	%	$	30,290
	Independent Living		28	2.0	%	2,329
	Senior Living Campus		6	6.1	%	6,942
	Senior Housing Communities		94	34.8	%	39,561
	Skilled Nursing Facilities		68	54.4	%	61,835
	Hospitals		4	7.4	%	8,375
	Medical Office Buildings		2	1.0	%	1,085
	Other		—	2.4	%	2,781
		Total Real Estate Portfolio	168	100.0	%	$	113,637
Portfolio by Operator Type
	Public		53	37.8	%	$	43,013
	National Chain (Privately-Owned)		29	4.4	%	4,941
	Regional		75	50.0	%	56,838
	Small		11	7.8	%	8,870
		Total Real Estate Portfolio	168	100.0	%	$	113,662

For the year ended December 31, 2013, operators of facilities which provided more than 3% of our total revenues were (in alphabetical order): Bickford Senior Living; Emeritus Senior Living; Fundamental Long Term Care Holdings; Health Services Management; Landmark Senior Living; Legend Healthcare; National HealthCare Corp.; SeniorHealth of Rutherford; Senior Living Management Corporation; SP Silverdale; and White Pine Senior Living.

As of December 31, 2013, our average effective annualized rental income was $7,623 per bed for SNFs, $13,183 per unit for ALFs, $14,279 per unit for ILFs, $39,619 per bed for hospitals, and $12 per square foot for MOBs.

27

We invest a portion of our funds in the preferred and common shares of other publicly-held healthcare REITs to ensure a substantial portion of our assets are invested for real estate purposes. At December 31, 2013, such investments had a carrying value of $50,782,000.

Areas of Focus

We are evaluating and will potentially make additional investments during 2014 while we continue to monitor and improve our existing properties. We seek tenants who will become mission-oriented partners in relationships where our business goals are aligned. This approach fuels steady, and thus, enduring growth for NHI and our tenants. While deal flow among the largest in our peer group may be slowing, there are smaller portfolio assets in secondary markets with prospective yields that justify our attention. Our investment focus, regardless of asset type, is on high quality opportunities-- defined by us to mean (a) the tenant has a track record of successful operations, (b) the tenant has the necessary credit to meet it's lease obligation to us; and (c) the facility is in good physical condition and (d) is positioned in a local market that offers the potential to achieve excellent financial results.

As we make new investments, we expect to maintain a relatively low level of debt compared to the value of our assets and relative to our peers in the industry. Approximately 52% of our revenue from continuing operations has come from operators of our skilled nursing facilities that receive a significant portion of their revenue from governmental payors, primarily Medicare and Medicaid. Such revenues are subject annually to statutory and regulatory changes, and in recent years, have been reduced due to federal and state budgetary pressures. As a result, in 2009, we began to diversify our portfolio by directing a significant portion of our investments into properties which do not rely primarily on Medicare and Medicaid reimbursement, but rather on private pay sources. While we will occasionally acquire skilled nursing facilities in good physical condition with a proven operator and strong local market fundamentals, our current investment focus is on acquiring senior housing assets (including assisted living and memory care facilities, independent living facilities and senior living campuses).

With the acquisition of the 25 independent living properties from Holiday in December 2013, discussed in further detail under Investment Highlights, less than 40% of our contractual revenue for 2014 is expected to come from skilled nursing facilities. With this acquisition, we have further diversified across asset types and have achieved a concentration of revenue from large national tenants who are recognized leaders in their industries. Bickford Senior Living is our largest assisted living/memory care tenant, Holiday Acquisition Holdings is our largest independent living tenant and National HealthCare Corporation is our largest skilled nursing tenant, as measured by annual contractual lease revenue from these tenants as a percentage of total revenue from continuing operations.

If longer term borrowing rates increase as anticipated, there will be pressure on the spread between our cost of capital and the returns we earn. We expect that pressure to be partially mitigated by market forces that lead to an increase in lease rates. We expect our cost of capital will increase as a result of our plan to transition some of our short term revolving borrowings into debt instruments with longer maturities and increased overall interest rates. Managing risk involves trade-offs with the competing goal of maximizing short-term profitability. Our intention is to strike an appropriate balance between these competing interests within the context of our investor profile.

We are continuing to explore additional funding resources including bank term loans, convertible debt, debt private placement and secured government agency financing.

We manage our business with a goal of increasing the regular annual dividends paid to shareholders. Our Board of Directors approves a regular quarterly dividend which is reflective of expected taxable income on a recurring basis. Our 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 Internal Revenue Code and differs from net income for financial statements purposes determined in accordance with U.S. generally accepted accounting principles. Our goal of increasing annual dividends requires a careful balance between identification of high-quality lease and mortgage assets in which to invest and the cost of our capital with which to fund such investments. We consider the competing interests of short and long-term debt (interest rates, maturities and other terms) versus the higher cost of new equity. We accept some level of risk associated with leveraging our investments. We intend to continue to make new investments that meet our underwriting criteria and where we believe the spreads over our cost of capital will generate sufficient returns to our shareholders.

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Our regular and special dividends for the last four years are as follows:

	2013		2012			2011		2010
Regular	$	2.90	$	2.64		$	2.50	$	2.36
Special	$	—	$	0.22	1	$	0.22	$	—
	$	2.90	$	2.86		$	2.72	$	2.36

¹Paid to shareholders of record in January 2013

Our increased investments in healthcare real estate beginning in 2009 have been partially accomplished by our ability to effectively leverage our balance sheet. However, we continue to maintain a relatively low leverage balance sheet compared with the value of our assets and with many in our peer group. We believe that our fixed charge coverage ratio, which is the ratio of Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization, including amounts in discontinued operations, excluding real estate asset impairments and gains on dispositions) to fixed charges (interest expense and principal payments on debt), and the ratio of consolidated debt to Adjusted EBITDA are meaningful measures of our ability to service our debt. We use these two measures as a useful basis to compare the strength of our balance sheet with those in our peer group.

We calculate our fixed charge coverage ratio as approximately 12:1 for the year ended December 31, 2013 (see page 47 for a discussion of Adjusted EBITDA and a reconciliation to our net income). On an annualized basis, our consolidated debt-to-Adjusted EBITDA ratio is 5:1.

Annual dividend growth, a low leverage balance sheet, a portfolio of diversified, high-quality assets, and prioritizing business relationships with experienced tenants and borrowers continue to be the key drivers of our business plan.

According to a 2011 estimate by the U.S. Department of Health and Human Services, the number of Americans 65 and older is expected to grow 36% between 2010 and 2020, compared to a 9% growth rate for the general population. An increase in this age demographic is expected to increase the demand for senior housing properties of all types in the coming decades.

There is increasing demand for private-pay senior housing properties in countries outside the U.S. We will consider real estate and note investments with U.S. entities who seek to expand their senior housing operations into countries where local-market demand is sufficiently demonstrated. We have a current investment of $1,500,000 in such ventures.

We expect to fund any new investments in real estate and mortgage notes in 2014 using our liquid investments and debt financing unless the size of an acquisition leads us to consider issuing equity securities to fund some or all of such acquisition in order to maintain a relatively low level of debt in comparison to the value of our assets.

Critical Accounting Policies

We prepare our consolidated financial statements in conformity with accounting principles generally accepted in the United States of America. These accounting principles require us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates and cause our reported net income to vary significantly from period to period. If actual experience differs from the assumptions and other considerations used in estimating amounts reflected in our consolidated financial statements, the resulting changes could have a material adverse effect on our consolidated results of operations, liquidity and/or financial condition.

We consider an accounting estimate or assumption critical if:

1. the nature of the estimates or assumptions is material due to the levels of subjectivity and judgment necessary to account for highly uncertain matters or the susceptibility of such matters to change; and

2. the impact of the estimates and assumptions on financial condition or operating performance is material.

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Our significant accounting policies and the associated estimates, judgments and the issues which impact these estimates are as follows:

Valuations and Impairments

The majority of our tenants and borrowers are in the long-term health care industry (SNFs and ALFs) where SNFs derive their revenues primarily from Medicare, Medicaid and other government programs. Amounts paid under these government programs are subject to legislative and government budget constraints. From time to time, there may be material changes in government reimbursement. In the past, SNFs have experienced material reductions in government reimbursement.

The long-term health care industry has also experienced a dramatic increase in professional liability claims and in the cost of insurance to cover such claims. These factors combined to cause a number of bankruptcy filings, bankruptcy court rulings and court judgments affecting our lessees and borrowers. In prior years, we have determined that impairment of certain of our investments had occurred as a result of these events.

We evaluate the recoverability of the carrying values of our properties on a property-by-property basis. On a quarterly basis, we review our properties for recoverability when events or circumstances, including significant physical changes in the property, significant adverse changes in general economic conditions and significant deteriorations of the underlying cash flows of the property, indicate that the carrying amount of the property may not be recoverable. The need to recognize an impairment charge is based on estimated undiscounted future cash flows from a property compared to the carrying value of that property. If recognition of an impairment charge is necessary, it is measured as the amount by which the carrying amount of the property exceeds the fair value of the property.

For notes receivable, we evaluate the estimated collectibility of contractual loan payments and general economic conditions on an instrument-by-instrument basis. On a quarterly basis, we review our notes receivable for ability to realize on such notes when events or circumstances, including the non-receipt of contractual principal and interest payments, significant deteriorations of the financial condition of the borrower and significant adverse changes in general economic conditions, indicate that the carrying amount of the note receivable may not be recoverable. If necessary, impairment is measured as the amount by which the carrying amount exceeds the fair value as measured by the discounted cash flows expected to be received under the note receivable or, if foreclosure is probable, the fair value of the collateral securing the note receivable.

We evaluate our marketable equity securities for other-than-temporary impairments. An impairment of a marketable equity security would be considered “other-than-temporary” unless we have the ability and intent to hold the investment for a period of time sufficient for a forecasted market price recovery up to (or beyond) the cost of the investment and evidence indicates the cost of the investment is recoverable within a reasonable period of time.

The initial carrying value of investments in unconsolidated entities is based on the amount paid to purchase the interest or the estimated fair value of the assets prior to our acquisition of interests in the entity. An aggregate basis difference between the cost of our equity method investee and the amount of underlying equity in its net assets is primarily attributable to goodwill, which is not amortized. We evaluate for impairment our equity method investments and related goodwill based upon a comparison of the estimated fair value of the investments to their carrying value. When we determine a decline in the estimated fair value of such an investment below its carrying value is other than temporary, an impairment is recorded. No impairments to the carrying value of our equity method investee have been recorded for any period presented.

While we believe that the carrying amounts of our properties and arrangement with Bickford are recoverable and our notes receivable, marketable securities and other investments are realizable, it is possible that future events could require us to make significant adjustments or revisions to these estimates.

The determination of the fair value and whether a shortfall in operating revenues or the existence of operating losses is indicative of a loss in value that is other than temporary involves significant judgment. Our estimates consider all available evidence including, as appropriate, the present value of the expected future cash flows discounted at market rates, general economic conditions and trends, the duration of the fair value deficiency, and any other relevant factors. While we believe our assumptions are reasonable, changes in these assumptions may have a material impact on our financial results.

Revenue Recognition

We collect interest and rent from our customers. Generally, our policy is to recognize revenues on an accrual basis as earned. However, there are certain of our customers, for whom we have determined, based on insufficient historical collections and the lack of expected future collections, that revenue for interest or rent is not probable of collection until received. For these

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investments, our policy is to recognize interest or rental income when assured, which we consider to be the period the amounts are collected. We identify investments as nonperforming if a required payment is not received within 30 days of the date it is due. This policy could cause our revenues to vary significantly from period to period. Revenue from minimum lease payments under our leases is recognized on a straight-line basis to the extent that future lease payments are considered collectible. Lease payments that depend on a factor directly related to future use of the property, such as an increase in annual revenues over base year revenues, are considered to be contingent rentals, are included in rental income when they are determinable and earned, and are excluded from future minimum lease payments.

REIT Qualification

As part of the process of preparing our consolidated financial statements, significant management judgment is required to evaluate our compliance with REIT requirements. Our determinations are based on interpretation of tax laws, and our conclusions may have an impact on the income tax expense recognized. We believe that we have operated our business so as to qualify as a REIT under Sections 856 through 860 of the Internal Revenue Code of 1986, as amended (the “Code”), and we intend to continue to operate in such a manner, but no assurance can be given that we will be able to qualify at all times. Effective October 1, 2012, we began to record income tax expense or benefit with respect to our subsidiary which will be taxed as a Taxable REIT Subsidiary ("TRS") under provisions similar to those applicable to regular corporations. Aside from such income taxes that may be applicable to the taxable income in our TRS, we will not be subject to U.S. federal income tax, provided that we continue to qualify as a REIT and make distributions to stockholders equal to or in excess of our taxable income. This treatment substantially eliminates the “double taxation” (at the corporate and stockholder levels) that typically applies to corporate dividends. Our failure to continue to qualify under the applicable REIT qualification rules and regulations would cause us to owe state and federal income taxes and would have a material adverse impact on our financial position, results of operations and cash flows.

Principles of Consolidation

The consolidated financial statements include our accounts, the accounts of our wholly-owned subsidiaries and the accounts of joint ventures in which we own a majority voting interest with the ability to control operations and where no substantive participating rights or substantive kick-out rights have been granted to the noncontrolling interests. In addition, we consolidate a legal entity deemed to be a variable interest entity ("VIE") in which we are determined to be the primary beneficiary. All material inter-company transactions and balances have been eliminated in consolidation.

We apply Financial Accounting Standards Board ("FASB") guidance for our arrangements with variable interest entities ("VIEs") which requires us to identify entities for which control is achieved through means other than voting rights and to determine which business enterprise is the primary beneficiary of the VIE. A VIE is broadly defined as an entity with one or more of the following characteristics: (a) the total equity investment at risk is insufficient to finance the entity's activities without additional subordinated financial support; (b) as a group, the holders of the equity investment at risk lack (i) the ability to make decisions about the entity's activities through voting or similar rights, (ii) the obligation to absorb the expected losses of the entity, or (iii) the right to receive the expected residual returns of the entity; or (c) the equity investors have voting rights that are not proportional to their economic interests, and substantially all of the entity's activities either involve, or are conducted on behalf of, an investor that has disproportionately few voting rights. We consolidate investments in VIEs when we are determined to be the primary beneficiary of the VIE. We may change our assessment of a VIE due to events such as modifications of contractual arrangements that affect the characteristics or adequacy of the entity's equity investments at risk and the disposal of all or a portion of an interest held by the primary beneficiary.

Real Estate Properties

Real property developed by us is recorded at cost, including the capitalization of interest during construction. The cost of real property investments acquired is allocated to net tangible and identifiable intangible assets based on their respective fair values. Tangible assets primarily consist of land, buildings and improvements. The remaining purchase price is allocated among identifiable intangible assets, if any.

We make estimates as part of our allocation of the purchase price of acquisitions to the various components of the acquisition based upon the relative fair value of each component. The most significant components of our allocations are typically the allocation of fair value to land, equipment, buildings and other improvements, and intangible assets, if any. Our estimates of the values of these components will affect the amount of depreciation and amortization we record over the estimated useful life of the property acquired or the remaining lease term.

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Investment Highlights

Since January 1, 2013 we have made or announced the following real estate investments (dollars in thousands):

	Properties	Asset Class	Amount
Lease Investments
Holiday Acquisition Holdings LLC	25	Senior Housing	$	492,959
Bickford Senior Living/RIDEA Structure	17	Senior Housing	137,459
National Healthcare Corporation	7	Skilled Nursing	37,417
Fundamental Long Term Care Holdings, LLC	2	Skilled Nursing	27,750
Chancellor Healthcare	2	Senior Housing	17,000
Emeritus Senior Living	1	Senior Housing	15,300
Discovery Senior Living	1	Senior Housing	12,000
Note Investments
Bickford Senior Living	1	Senior Housing	9,200
Discovery Senior Living	1	Senior Housing	2,500
			$	751,585

We have two operators, National HealthCare Corporation (“NHC”) and Bickford Senior Living ("Bickford"), from whom we individually derive at least 10% of our income from operations. Beginning in December 2013, a third major operator, Holiday Acquisition Holdings LLC (“Holiday”), has leased 25 independent living facilities from us which contractually obligates Holiday, in 2014 and going forward, to make lease payments which will aggregate to more than 25% of NHI revenues, based on our 2013 leases in place.

Holiday

In December 2013 we acquired 25 independent living facilities from Holiday, an affiliate of Holiday Retirement, for $491,000,000 plus transaction costs of $1,959,000. The total purchase price was allocated to the assets acquired based upon their relative fair values, preliminarily estimated as $21,700,000 to land, $471,259,000 to buildings and improvements. No intangibles were identified in the acquisition. Such allocations have not been finalized as we await conclusive asset valuations and, as such, the results of the allocation are preliminary and subject to adjustment. This portfolio is located in 12 states. We have leased this portfolio to a subsidiary of Holiday, who continues to operate the facilities pursuant to a management agreement with a Holiday-affiliated manager.

The master lease term of 17 years began in December 2013 and provides for initial cash rent of $31,915,000 plus annual escalators of 4.5% in the first 3 years and a minimum of 3.5% each year thereafter. Holiday will be our largest tenant in 2014, with anticipated lease revenues in excess of 25% of our total revenues. Holiday's obligations to us under the master lease are guaranteed by its indirect parent, Holiday AL Holdings, LP.

We funded this acquisition with proceeds of a $250,000,000 term loan and proceeds from a public offering of 5,175,000 shares of our common stock at $57 per share. The net proceeds from the offering were approximately $282,542,000, after deducting $12,500,000 in underwriting discounts, commissions and other offering expenses.

Bickford

As of December 31, 2013, we owned an 85% equity interest and an affiliate of Bickford owned a 15% equity interest in our consolidated subsidiary ("PropCo") which owns 29 assisted living/memory care facilities and also has 1 facility under construction. The facilities are leased to an operating company, ("OpCo"), in which we also share an 85/15 ownership interest with an affiliate of Bickford, who controls the entity. Our joint venture is structured to comply with the provisions of RIDEA.

On June 28, 2013, PropCo purchased 17 assisted living and memory care facilities which were managed by Bickford. The facilities total 750 units and are located in Illinois, Indiana, Iowa and Nebraska. Of these facilities, 14 were acquired from a subsidiary of Care Investment Trust, Inc. ("Care") for $124,549,000, consisting of $44,021,000 in cash and assumption of secured debt with a fair value of $80,528,000. As part of this transaction, we recognized all identifiable tangible assets and liabilities assumed at fair value at the date of acquisition (there were no identifiable intangible assets or liabilities assumed) and attributed $4,360,000 to the fair value of the land, $120,189,000 to the fair value of the buildings and improvements and expensed $63,000

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in transaction costs at closing. The 14 newly-acquired facilities have been leased to OpCo for an initial term of 5 years at an aggregate annual lease amount of $9,750,000 plus annual fixed escalators commencing on July 1 of each succeeding year.

Concurrent with this acquisition, PropCo also completed a $12,910,000 purchase and leaseback of three assisted living facilities located in Iowa, Nebraska and Indiana totaling 107 units from affiliates of Bickford. The acquisition was accounted for as an asset purchase. PropCo's previous master lease with Bickford was amended to include these three properties and the annual lease amount was increased from $7,750,000 to $9,086,000, plus annual fixed escalators beginning January 1 of each succeeding year. All other significant terms of the existing master lease remain unchanged.

As described above, the current annual contractual rent from OpCo to PropCo is $18,836,000, plus fixed annual escalators. During the quarter ended December 31, 2013, PropCo completed major construction and received certificates of occupancy on two assisted living facilities which were under development. Under the terms of the current development lease agreement, NHI continues to receive rent of 9% on the total amount of development costs, including land, which totaled $17,796,000 as of December 31, 2013. Of these costs, $15,084,000 relate to the facilities for which occupancy certificates have been received.

Of our total revenue from continuing operations, $14,586,000 (12%), $5,164,000 (6%) and $4,235,000 (5%) were recorded as rental income from Bickford for the years ended December 31, 2013, 2012, and 2011, respectively.

As of December 31, 2013, the carrying value of our investment in the operating company, OpCo, was $9,494,000. The excess of the original purchase price over the fair value of identified tangible assets at acquisition of $8,986,000 is treated as implied goodwill and is subject to periodic review for impairment in conjunction with our equity method investment as a whole.

With PropCo’s acquisition of additional Bickford properties in June 2013, an assignment was entered into whereby the operations of the 17 newly acquired facilities were conveyed by an affiliate of Bickford to OpCo. The transaction mandated the effective cut-off of operating revenues and expenses and the settlement of operating assets and liabilities at the acquisition date. Specified remaining net tangible assets were assigned to OpCo at the transferor's carryover basis resulting in an adjustment, through NHI's capital in excess of par value to our equity method investment in OpCo, of $817,000.

Unaudited summarized income statements for OpCo are presented below (in thousands):

	Year Ended December 31,
	2013		2012
Revenues	$	42,636	$	6,335
Operating expenses, including management fees	27,419		4,329
Lease expenses	14,579		1,937
Depreciation and amortization	256		16
Net Income	$	382	$	53

NHI has an exclusive right to Bickford's future acquisitions, development projects and refinancing transactions. At December 31, 2013, PropCo had purchased land and begun construction on one assisted living/memory care facility having a maximum cost of $9,000,000. Our costs incurred to date, including land, were $2,712,000.

In July 2013, we extended a $9,200,000 loan to Bickford to fund a portion of their acquisition of six senior housing communities consisting of 342 units. The loan is guaranteed by principals of Bickford and has a two-year maturity plus a one-year extension option with 12% annual interest. As a result of this transaction and existing agreements governing the nature of our relationship with Bickford, PropCo has acquired a $97,000,000 purchase option on the properties which is exercisable over the term of the loan.

NHC

Of our total revenue from continuing operations, $34,756,000 (29%), $33,056,000 (35%) and $32,619,000 (39%) in 2013, 2012 and 2011, respectively, were derived from NHC, a publicly-held company and the lessee of our legacy properties. As of December 31, 2013, we leased 42 health care facilities to NHC consisting of 3 independent living facilities and 39 skilled nursing facilities (4 of which are subleased to other parties for whom the lease payments are guaranteed to us by NHC). These facilities are leased to NHC under the terms an amended Master Lease Agreement dated October 17, 1991 ("the 1991 lease") which includes

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our 35 remaining legacy properties and a Master Lease Agreement dated August 30, 2013 ("the 2013 lease"), discussed below, which includes seven skilled nursing facilities acquired from ElderTrust on August 31, 2013.

In December 2012, we entered into an extension of the 1991 lease through December 2026. Under the terms of the lease, rent escalates by 4% of the increase, if any, in each facility’s revenue over a 2007 base year. We refer to this additional rent component as “percentage rent.”

The following table summarizes the percentage rent received and recognized from NHC (in thousands):

	Year Ended December 31,
	2013		2012		2011
Current year	$	2,275	$	1,530	$	1,530
Prior year final certification1	746		997		560
Total percentage rent	$	3,021	$	2,527	$	2,090

¹ For purposes of the percentage rent calculation described in the Master Lease Agreement, NHC’s annual revenue by facility for a given year is certified to NHI by March 31st of the following year.

As previously disclosed, in December 2012, NHI entered into an agreement with NHC to sell six skilled nursing facilities for $21,000,000 in cash. The properties had a carrying value of $1,611,000. The sale was completed on August 31, 2013, and resulted in a gain for financial statement purposes of $19,370,000 after transaction costs of $19,000. We plan to defer recognition of the tax gain on the sale of these facilities by utilizing the like-kind exchange rules under Section 1031 of the Internal Revenue Code. The results of operation of the facilities sold were classified as discontinued operations for all periods presented in our Consolidated Statements of Income. To reflect this transaction, effective January 1, 2014, NHI’s annual base rent will be reduced by $2,950,000.

On August 30, 2013, we acquired seven skilled nursing facilities (and one vacant assisted living facility) in Massachusetts and New Hampshire from our former not-for-profit borrower ElderTrust of Florida, Inc. (“ElderTrust”) for consideration of $37,417,000, consisting of $23,676,000 in cash, inclusive of closing costs, and the cancellation of notes receivable from ElderTrust with a principal balance of $13,741,000. Beginning September 1, 2013, the facilities were placed under a new triple net lease to the current manager, NHC, for an initial period of 15 years commencing with a lease amount of $350,000 for the remainder of 2013. In 2014, the lease provides for a base annual rental of $3,450,000. Under the terms of the lease, rent escalates 4% of the increase in each facility's revenue over the 2014 base year. Because ElderTrust was the owner and operator of the facilities, we accounted for the transaction as an asset acquisition. During the last three years of the lease, NHC will have the option to purchase the facilities for $49,000,000.

Fundamental

In April 2013, we completed the purchase of two skilled nursing facilities located in Canton and Corinth, Texas for a purchase price of $26,150,000 in cash, plus consideration related to the Corinth facility of $1,600,000 conditional upon the achievement of certain operating metrics, which continued to be probable as of December 31, 2013. The facilities, which total 254 beds, have been leased to affiliates of Fundamental Long Term Care Holdings, LLC (“Fundamental”) for an initial term of 10 years at a lease rate of 9% plus annual fixed escalators. The lease includes three5-year renewal options at the terms which exist upon renewal.

In October 2013, we agreed to sell three older skilled nursing facilities to affiliates of our current tenant, Fundamental, for $18,500,000. The properties had a carrying value of $17,068,000. We plan to defer recognition of the tax gain on the sale of these facilities by utilizing the like-kind exchange rules under Section 1031 of the internal Revenue Code. Our lease revenue from these facilities was $3,316,000, $3,231,000, and $3,067,000 for the years endedDecember 31, 2013, 2012, and 2011, respectively. We completed this sale on December 31, 2013. Pursuant to the purchase option, rents associated with the remaining properties will be fixed at $250,000 per month, without escalation, through the first renewal term in February 2016. Subsequent to the sale of the Arlington, Richardson and Canton facilities, Fundamental leases four facilities from NHI.

Chancellor

In October 2013, we completed a $9,000,000 acquisition of a 63-unit senior housing community in Baltimore, Maryland, and leased the facility to Chancellor Health Care, LLC for an initial term of seven years, plus renewal options. The lease rate in the first year will be 8% plus a fixed annual escalator. Because the facility was owner-occupied, we accounted for the acquisition as an asset purchase. We also committed to provide up to $500,000 for renovations and improvements.

Additionally, we have committed $7,500,000 to build a 46-unit free-standing assisted living and memory care community, expanding our Linda Valley senior living campus in Loma Linda, California. The initial lease term is for 15 years at an annual

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rate of 9% plus a fixed annual escalator. NHI purchased the Linda Valley campus in 2012 and leased it to Chancellor Health Care, who has been operating the campus since 1993.

Emeritus

In July 2013 we completed a $15,300,000 acquisition of The Inn at Halcyon Village in Marysville, Ohio ("Halcyon"). The 76-unit assisted living and memory care community is leased to Emeritus Senior Living for an initial term of 15 years with options to extend. Rent in the first year of the lease will be $1,140,000. Annual fixed escalators begin in the third lease year.

Discovery

In September 2013, we completed a $12,000,000 acquisition of Regency Pointe Retirement Community in Rainbow City, Alabama. The 120-unit senior housing community is leased to Discovery Senior Living ("Discovery") for an initial term of 15 years with three5-year renewal options. Rent in the first year of the lease is $942,000 plus annual fixed escalators. As a lease inducement, upon obtaining certain operating metrics, Discovery will be eligible over years two, three and four of the lease for contingent payments totaling up to $2,500,000 which, if paid, we will amortize as an adjustment to rental income over the remaining lease term. At acquisition, the likelihood that we would incur the contingent payments was considered reasonably possible but not probable. Accordingly, no provision for these payments is reflected in the consolidated financial statements.

In October 2013, we provided a $2,500,000 second mortgage loan to an affiliate of Discovery for the construction of a 120-unit senior housing community in Naples, Florida. Construction began in the fourth quarter of 2013. The loan is guaranteed by principals of Discovery and has a five-year maturity with monthly payments of interest at a 12% annual rate.

Other Lease Activity

Our leases are typically structured as "triple net leases" on single-tenant properties having an initial leasehold term of 10 to 15 years with one or more 5-year renewal options. As such, there may be reporting periods in which we experience few, if any, lease renewals or expirations. During the year ended December 31, 2013, we had 1 expiring lease which was renewed with the existing tenant on substantially similar lease terms.

In October 2013, our current tenant, Weatherly Associates, LLC, exercised their option to purchase our Weatherly, PA senior housing facility for $5,315,000. The property had a carrying value of $3,591,000 resulting in a gain for financial statement purposes. We plan to defer recognition of the tax gain on the sale of this facility by utilizing the like-kind exchange rules under Section 1031 of the Internal Revenue Code. Our lease revenue from the facility was $353,000, $403,000, and $403,000 for the years endedDecember 31, 2013, 2012, and 2011, respectively.

Real Estate and Mortgage Write-downs

Our borrowers and tenants experience periods of significant financial pressures and difficulties similar to other health care providers. Governments at both the federal and state levels have enacted legislation to lower, or at least slow, the growth in payments to health care providers. Furthermore, the cost of professional liability insurance has increased significantly during this same period.

Since inception, a number of our facility operators and mortgage loan borrowers have undergone bankruptcy. Others have been forced to surrender properties to us in lieu of foreclosure or, for certain periods, have failed to make timely payments on their obligations to us.

We believe that the carrying amounts of our real estate properties are recoverable and that mortgage notes receivable are realizable and supported by the value of the underlying collateral. However, it is possible that future events could require us to make significant adjustments to these carrying amounts.

Potential Effects of Medicare Reimbursement

Our tenants who operate skilled nursing facilities receive a significant portion of their revenues from governmental payors, primarily Medicare (federal) and Medicaid (states). Changes in reimbursement rates and limits on the scope of services reimbursed to skilled nursing facilities could have a material impact on the operators' liquidity and financial condition. On May 1, 2013, the Centers for Medicare & Medicaid Services ("CMS") released a proposed rule outlining a 1.4% increase in their Medicare reimbursement for fiscal 2014 beginning on October 1, 2013. We currently estimate that our borrowers and lessees will be able to withstand this nominal Medicare increase due to their credit quality, profitability and their debt or lease coverage ratios, although no assurances can be given as to what the ultimate effect that similar Medicare increases on an annual basis would have on each of our borrowers and lessees. According to industry studies, state Medicaid funding is not expected to keep pace with inflation. Federal legislative policies have been adopted and continue to be proposed that would reduce Medicare and/or Medicaid payments to skilled nursing facilities. Accordingly, for the near-term, we are treating as cautionary the Federal Government’s recent re-commitment, after debating a ‘chained CPI’ indexing, to fully index Social Security to inflation. In this cautious approach, any near-term acquisitions of skilled nursing facilities are planned on a selective basis, with emphasis on operator quality and newer construction.

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As discussed in the notes to the consolidated financial statements, former not-for-profit borrowers, SeniorTrust and ElderTrust, appointed receivers to effect the sale of their assets and the winding up of those entities. These two mortgage borrowers were adversely impacted by previous Medicare rate adjustments due to their payor mix, their current payment coverage ratios and limited net equity. The impact of net reductions in Medicare reimbursement had an adverse effect on the value of the underlying real estate assets. In March 2013, the financial condition of SeniorTrust reflected their declining net operating income over the previous twelve months and indicated a further adverse change in the estimated value of the collateral for our notes receivable at that time. As a result, we recorded an impairment on this former note receivable of $4,037,000 based on such estimated value.

Litigation Settlement

In April 2013, we entered into a settlement agreement concerning litigation with the two borrowers mentioned above, ElderTrust and SeniorTrust. As described earlier, we agreed to purchase the seven skilled nursing facilities which served as collateral for the note from ElderTrust. The purchase was completed on August 30, 2013. Additionally, we agreed to a full settlement of our notes receivable from SeniorTrust for $15,000,000 in cash. Our notes from SeniorTrust were paid in full on June 28, 2013.

At the time of the settlement agreement, our annualized interest-only cash flows from SeniorTrust and ElderTrust totaled approximately $1,980,000. With an additional net investment of $8,676,000, our estimated annualized cash flows beginning in 2014, before any rent escalation, will be $3,450,000.

The table below illustrates the projected effect of the settlement on annualized cash flows and return on investment (in thousands):

	Before Settlement			After Settlement			Difference
SeniorTrust	$	15,000		$	—		$	(15,000	)
ElderTrust	13,741			37,417			23,676
Total Investment	$	28,741		$	37,417		$	8,676
Estimated Annualized Cash Flow	$	1,980		$	3,450		$	1,470
Estimated Annualized Cash Flow as % of Total Investment	6.9		%	9.2		%	16.9		%

The above analysis focuses entirely upon cash flow and investment return without considering qualitative portfolio improvements inherent in transitioning from a mortgage note to a triple net lease. Additionally, the above analysis does not consider the effect of future rent escalations or the future cost of borrowings used to acquire the seven ElderTrust properties.

36

Results of Operations

The significant items affecting revenues and expenses are described below (in thousands):

	Years ended December 31,						Period Change
	2013			2012			$			%
Revenues:
Rental income
ALFs leased to Bickford Senior Living	$	14,219		$	4,646		$	9,573		NM
SNFs leased to Fundamental Long Term Care	3,494			1,777			1,717			96.6	%
Hospital leased to Polaris	2,140			528			1,612			NM
ALF leased to Landmark Senior Living	1,579			35			1,544			NM
SLC leased to Santé Partners	2,114			744			1,370			NM
SLC leased to Chancellor Health Care	1,207			276			931			NM
SNFs leased to NHC	33,974			33,056			918			2.8	%
SNFs leased to Legend Healthcare	11,918			11,099			819			7.4	%
Other new and existing leases	28,913			25,539			3,374			13.2	%
	99,558			77,700			21,858			28.1	%
Straight-line rent adjustments, new and existing leases	6,471			3,782			2,689			71.1	%
Total Rental Income	106,029			81,482			24,547			30.1	%
Interest income from mortgage and other notes
Capital Funding Group	2,062			626			1,436			NM
Bickford Senior Living	531			8			523			NM
ElderTrust	644			1,068			(424		)	(39.7	)%
SeniorTrust	475			999			(524		)	(52.5	)%
Bell Oden	—			853			(853		)	NM
Other new and existing mortgages	3,921			3,872			49			1.3	%
Total Interest Income from Mortgage and Other Notes	7,633			7,426			207			2.8	%
Investment income and other	4,166			4,409			(243		)	(5.5	)%
Total Revenue	117,828			93,317			24,511			26.3	%
Expenses:
Depreciation
ALFs leased to Bickford Senior Living	4,229			1,344			2,885			NM
ALF leased to Landmark Senior Living	581			—			581			NM
SLC leased to Santé Partners	679			226			453			NM
Hospital leased to Polaris	440			76			364			NM
Other new and existing assets	14,172			13,126			1,046			8.0	%
Total Depreciation	20,101			14,772			5,329			36.1	%
Interest expense and amortization of loan costs	9,229			3,492			5,737			NM
Franchise, excise and other taxes	616			771			(155		)	(20.1	)%
General and administrative	9,254			7,799			1,455			18.7	%
Loan and realty (recoveries) losses, net	1,976			(2,195		)	4,171			NM
Other expenses	784			766			18			2.3	%
	41,960			25,405			16,555			65.2	%
Income before equity-method investee, discontinued operations and noncontrolling interest	75,868			67,912			7,956			11.7	%
Income from equity-method investee	324			45			279			NM
Investment and other gains	3,306			4,877			(1,571		)	(32.2	)%
Income from continuing operations	79,498			72,834			6,664			9.1	%
Income from discontinued operations	5,426			6,098			(672		)	(11.0	)%
Gain on sale of real estate	22,258			11,966			10,292			86.0	%
Net income	107,182			90,898			16,284			17.9	%
Net income attributable to noncontrolling interest	(999		)	(167		)	(832		)	NM
Net income attributable to common stockholders	$	106,183		$	90,731		$	15,452		17.0	%
NM - not meaningful

37

Financial highlights of the year ended December 31, 2013, compared to 2012 were as follows:

• Rental income increased $24,547,000 when compared to the same period in the prior year primarily as a result of new real estate investments of $748,939,000 and $129,851,000 funded during 2013 and 2012. Our Holiday investment of $492,959,000 was funded on December 23, 2013 and contributed minimally to the increase, as it was placed in service during the last days of the year. Future increases in rental income depend on our ability to make new investments which meet our underwriting criteria.

• Interest income from mortgage and other notes for 2014 is expected to be lower than 2013 due to (1) the settlement of outstanding notes receivable balances from not-for-profit borrowers, ElderTrust and SeniorTrust totaling $28,741,000, and (2) the payoff of a mortgage receivable of $3,293,000 secured by a facility in Georgia which resulted in a recovery of a previous writedown of $2,061,000. Unless we continue to make new investments in loans in 2014 and future years, our interest income will decrease due to the normal amortization and scheduled maturities of our loans.

• Depreciation expense recognized in continuing operations increased $5,329,000 compared to the prior year primarily due to new real estate investments completed during 2012 and 2013.

• Interest expense, which includes amortization of loan costs of $706,000 and $320,000 for the years ended December 31, 2013 and 2012, respectively, relates to our borrowings on our credit facility and debt assumptions to fund new real estate and loan investments. Amortization of loan costs for 2013 includes $416,000 which were written off as a result of the modifications we made to the credit facility at the end of the second quarter. Upfront fees and other loan-related costs are amortized over the term of the credit facility. The increase in interest expense and loan cost amortization of $5,737,000 resulted from expanded borrowings used to fund new real estate investments in 2012 and 2013. We expect to fund additional healthcare real estate investments in 2014 with borrowings from our bank credit facility and longer-term debt, both secured and unsecured, which will increase our interest expense.

• General and administrative expenses for 2013 increased $1,455,000 when compared to 2012 primarily due to higher consulting and advisory costs resulting from our increased investment activity, employee compensation and $210,000 in transaction costs related to two business combinations completed during 2013.

• Loan and realty losses include an impairment of of $4,037,000 recorded in March 2013 related to our estimate of the underlying value of the collateral for the SeniorTrust note. In September 2013 we received $3,293,000 as full payment of a mortgage note and recorded a recovery of a previous writedown of $2,061,000.

• Investment and other gains include the write-off of a $3,256,000 contingent purchase liability that is not required to be paid. We recognized a gain of $19,370,000 on our sale of six skilled nursing facilities to our tenant, NHC, and a gain of $2,888,000 on two other dispositions discussed in Note 2 to the consolidated financial statements.

The results of operations for facilities included in assets held for sale or sold, including the gain or loss on such sales, have been reported in the current and prior periods as discontinued operations. The reclassifications to retrospectively reflect the disposition of these facilities had no impact on previously reported net income.

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The significant items affecting revenues and expenses are described below (in thousands):

	Years ended December 31,						Period Change
	2012			2011			$			%
Revenues:
Rental income
SNFs leased to Legend Healthcare	$	11,099		$	6,512		$	4,587		70.4	%
ALFs leased to Bickford Senior Living	4,646			3,485			1,161			33.3	%
SLC leased to Santé Partners	744			—			744			NM
ALFs leased to Senior Living Management	3,703			3,239			464			14.3	%
ALF leased to Selah Management Group	1,391			843			548			65.0	%
Other new and existing leases	56,117			54,676			1,441			2.6	%
	77,700			68,755			8,945			13.0	%
Straight-line rent adjustments, new and existing leases	3,782			3,853			(71		)	(1.8	)%
Total Rental Income	81,482			72,608			8,874			12.2	%
Interest income from mortgage and other notes
Capital Funding Group	626			70			556			NM
Other new and existing mortgages	6,800			6,582			218			3.3	%
Total Interest Income from Mortgage and Other Notes	7,426			6,652			774			11.6	%
Investment income and other	4,409			4,479			(70		)	(1.6	)%
Total Revenue	93,317			83,739			9,578			11.4	%
Expenses:
Depreciation
SNFs leased to Legend Healthcare	$	1,923		$	277		$	1,646		NM
SNFs leased to Fundamental reclassified to continuing operations	907			—			907			NM
Other new and existing assets	11,942			11,173			769			6.9	%
Total Depreciation	14,772			11,450			3,322			29.0	%
Interest expense:
Change in fair value of interest rate swap agreement	—			1,197			(1,197		)	NM
Interest expense and amortization of loan costs	3,492			2,651			841			31.7	%
Total Interest Expense	3,492			3,848			(356		)	(9.3	)%
Loan and realty (recoveries) losses, net	(2,195		)	(99		)	(2,096		)	NM
Share-based compensation expense	2,168			3,087			(919		)	(29.8	)%
Salaries, wages & benefits	3,334			2,863			471			16.5	%
Other expenses	3,834			3,034			800			26.4	%
	25,405			24,183			1,222			5.1	%
Income before equity-method investment, discontinued operations and noncontrolling interest	67,912			59,556			8,356			14.0	%
Income from equity-method investment	45			—			45			NM
Investment and other gains	4,877			10,261			(5,384		)	(52.5	)%
Income from continuing operations	72,834			69,817			3,017			4.3	%
Income from discontinued operations	6,098			7,967			(1,869		)	(23.5	)%
Gain on sale of real estate	11,966			3,348			8,618			NM
Net income	90,898			81,132			9,766			12.0	%
Net income attributable to noncontrolling interest	(167		)	—			(167		)	NM
Net income attributable to common stockholders	$	90,731		$	81,132		$	9,599		11.8	%
NM - not meaningful

39

Financial highlights of the year ended December 31, 2012, compared to the same period in 2011 were as follows:

• Rental income increased $8,874,000 when compared to the same period in the prior year primarily as a result of new real estate investments of $75,806,000 in 2011 and $129,851,000 in 2012.

• Interest income from mortgage and other notes increased $774,000 due to new loan investments of $6,566,000 funded in 2011 and $16,035,000 funded in 2012.

• Depreciation expense increased $3,322,000 primarily as the result of $2,616,000 included in 2012 for the facilities leased to Fundamental which were reclassified from discontinued operations after the agreement to sell the facilities was canceled. The adjustment to depreciation expense of $2,398,000 would have been recognized in 2012 and in prior years as depreciation on these properties had the disposal group been continuously classified as held and used.

• Interest expense related to borrowings on our credit facility to fund new real estate and loan investments. Upfront fees and other loan-related costs are amortized over the term of the credit facility. The $1,197,000 decrease in the fair value of the interest rate swap agreement increased interest expense in 2011 since the agreement, which was terminated in 2011, did not qualify for hedge accounting treatment. In 2012, adjustments totaling $1,241,000 reflecting the change in fair value of our cash flow hedge were recorded in Other Comprehensive Income and not as a component of operations as the new interest rate swap qualified for hedge accounting. An increase in interest payments and loan cost amortization of $841,000 resulted from expanded borrowings, offset by a lower LIBOR underlying our floating-rate debt in 2012.

• Our net loan and realty recoveries of $2,195,000 in 2012 reflect a recovery of $4,495,000 on mortgage notes receivable, net of the SeniorTrust mortgage note impairment of $2,300,000 as discussed in the notes to the consolidated financial statements. NHI's collection history with SeniorTrust and the deterioration of the financial condition and creditworthiness of the borrower indicated that the carrying value of the mortgage note receivable was not recoverable.

• Share-based compensation expense decreased in 2012 based upon lower stock volatility which is a key input to the Black-Scholes pricing model for determining the market value of our stock options granted to directors and employees. The value of the options is expensed over the vesting period of the individual grants.

• Investment and other gains in 2012 includes income of $4,605,000 related to an equity participation formula as part of a mortgage note payoff in December 2012 from one of our borrowers.

• One of our subsidiaries (1) reached a settlement regarding the final tax return for the operations acquired through foreclosure, and (2) agreed to settle a claim for personal injury in relation to a matter which arose prior to our acquisition of the subsidiary. These settlements resulted in charges against income in 2012 in the amounts of $180,000 and $275,000, respectively, and are included in other expenses.

The results of operations for facilities included in assets held for sale or sold, including the gain or loss on such sales, have been reported in the current and prior periods as discontinued operations. The reclassifications to retrospectively reflect the disposition of these facilities had no impact on previously reported net income.

40

Liquidity and Capital Resources

Sources and Uses of Funds

Our primary sources of cash include rent payments, principal and interest payments on mortgage and other notes receivable, dividends received on our investments in the common and preferred shares of other REITs, proceeds from the sales of real property and borrowings from our term loans and revolving credit facility. Our primary uses of cash include dividend distributions to our shareholders, debt service payments (both principal and interest), new investments in real estate and notes and general corporate overhead.

These sources and uses of cash are reflected in our Consolidated Statements of Cash Flows as summarized below (dollars in thousands):

	Year Ended						One Year Change					Year Ended		One Year Change
	12/31/2013			12/31/2012			$			%		12/31/11		$			%
Cash and cash equivalents at beginning of period	$	9,172		$	15,886		$	(6,714	)	(42.3	)%	2,664		$	13,222		496.3	%
Net cash provided by operating activities	104,193			86,266			17,927			20.8	%	76,854		9,412			12.2	%
Net cash used in investing activities	(625,824		)	(99,810		)	(526,014		)	527.0	%	(55,474	)	(44,336		)	79.9	%
Net cash provided by (used in) financing activities	523,771			6,830			516,941			NM		(8,158	)	14,988			NM
Cash and cash equivalents at end of period	$	11,312		$	9,172		$	2,140		23.3	%	15,886		$	(6,714	)	(42.3	)%

Operating Activities – Net cash provided by operating activities for the year ended December 31, 2013 increased primarily as a result of the collection of lease payments on new real estate investments completed during 2012 and 2013.

Investing Activities – Net cash flows used in investing activities for the year ended December 31, 2013 increased as compared to 2012 primarily due to a significant increase in real estate investment activity completed during 2013.

Financing Activities – Net cash flows provided by financing activities for the year ended December 31, 2013 increased as a result of a new $250,000,000 term loan, $282,542,000 in proceeds from an equity offering and increased borrowings on our revolving credit facility all of which were used to fund real estate investments, partially offset by $85,145,000 in dividends paid to stockholders.

Liquidity

At December 31, 2013, our liquidity was strong, with $106,962,000 available in cash, highly-liquid marketable securities and borrowing capacity on our revolving credit facility. In addition, our investment in LTC preferred stock is convertible into 2,000,000 shares of common stock whose per share price ranged between $35 and $40 during the quarter ended December 31, 2013. Cash proceeds from lease and mortgage collections, loan payoffs and the recovery of previous write-downs have been distributed as dividends to stockholders, used to retire our indebtedness, and accumulated in bank deposits for the purpose of making new real estate and mortgage loan investments.

On June 28, 2013, we entered into a $370,000,000 unsecured credit facility that includes $120,000,000 of 7-year term loans that are fully drawn. The facility includes an uncommitted incremental facility feature allowing for an additional $130,000,000 of borrowings. The credit facility provides for unsecured, revolving borrowings of up to $250,000,000 with a maturity of 5 years (inclusive of a one year extension option) and interest initially at 140 basis points over LIBOR, and $80,000,000 and $40,000,000 unsecured, 7-year term loans with interest initially at 150 basis points over LIBOR. Interest rates are referenced to our Consolidated Leverage Ratio, as defined, and were adjusted in December 2013 to 165 basis points over LIBOR for the revolving credit facility and 175 basis points over LIBOR for the term loans to account for debt undertaken in conjunction with our Holiday acquisition. There is an unused commitment fee of 35 basis points per annum. At December 31, 2013, we had $83,000,000 available to draw on the revolving portion of the credit facility. Quoted 30-day LIBOR was 17 basis points on December 31, 2013.

On November 27, 2013, we announced the sale of 5,175,000 shares of our common stock at $57 per share. The net proceeds from the offering were approximately $282,542,000, after deducting $12,500,000 in underwriting discounts, commissions and other offering expenses. This offering represents the largest capital transaction since our initial public offering. Following this transaction, in December 2013, we closed on a new term loan with a syndicate of banks led by Wells Fargo, which provided us with a new $250,000,000 term loan which has the same maturity as our revolving credit facility. Interest on the new term loan is 175 basis points over LIBOR. We used $492,959,000 of the combined proceeds from the stock offering and term loan to acquire 25 independent living properties from affiliates of Holiday Acquisition Holdings LLC.

41

The unsecured credit facility mentioned above requires that we maintain certain financial ratios within limits set by our creditors. To date, these ratios, which are calculated quarterly, have been well within the limits required by the credit facility agreements.

We continually assess the impact of any new investments and the underlying capital requirements on these limits. In the future, our resource allocation decisions may be driven in part by the need to maintain compliance with these creditor-imposed limits.

As part of the Care acquisition described in Note 2, we assumed Fannie Mae mortgage loans with principal balances of $71,090,000 and $7,234,000 at December 31, 2013, which have interest at rates of 6.85% and 7.17%, respectively, and mature on July 1, 2015. The loans are subject to early-payment penalties extending until December 2014. At that time, we may consider other favorable arrangements.

In August 2013, with borrowings from our revolving credit facility, we paid off a $19,250,000 mortgage which carried interest at 300 basis points over LIBOR and had a scheduled maturity of November 2013.

To mitigate our exposure to interest rate risk, we have entered into the following interest rate swap contracts on two of our term loans as of December 31, 2013 (dollars in thousands):

Date Entered	Maturity Date	Fixed Rate	Rate Index	Notional Amount		Fair Value
May 2012	April 2019	3.29%	1-month LIBOR	$	40,000	$	544
June 2013	June 2020	3.86%	1-month LIBOR	$	80,000	$	431

We plan to refinance the borrowings on our revolving credit facility into longer-term debt instruments. We will consider secured debt from U.S. Govt. agencies, including HUD, private placements of unsecured debt, and public offerings of debt and equity. We anticipate that our historically low cost of debt capital will rise in the near to mid-term, as the federal government inevitably transitions away from quantitative easing. Because of consensus expectations of resultant rising interest rates, refinancing the borrowings on our revolving credit facility continues to be a high priority.

If we modify or replace existing debt, we would incur debt issuance costs. These fees would be subject to amortization over the term of the new debt instrument and may result in the write-off of fees associated with debt which has been replaced or modified. Sustaining long-term dividend growth will require that we consider all forms of capital mentioned above, with the goal of maintaining a low-leverage balance sheet as mitigation against potential adverse changes in the business of our tenants and borrowers.

We intend to comply with REIT dividend requirements that we distribute at least 90% of our annual taxable income for the year ending December 31, 2013 and thereafter. During 2013, we declared total dividends (regular and special) of $2.90 per common share in 2013, $2.86 per common share in 2012, and $2.715 per common share in 2011. Dividends declared for the fourth quarter of each fiscal year are paid by the end of the following January and are, with some exceptions, treated for tax purposes as having been paid in the fiscal year just ended as provided in IRS Code Sec. 857(b)(8). The 2012 and 2011 dividends declared included a special dividend of $.22 per common share. The special dividend for 2012 was due to a recovery of a previous writedown at the end of December 2012. The record date for shareholders was required to be in January 2013, therefore, the special dividend was taxable to shareholders in 2013. We declare special dividends when we compute our REIT taxable income in an amount that exceeds our regular dividends for the fiscal year.

Off Balance Sheet Arrangements

We currently have no outstanding guarantees. For a discussion of our letter of credit with an affiliate of Bickford, see our discussion in this section under Contractual Obligations, below. Our equity method investment in OpCo is intended to be self-financing, and aside from initial investments therein, no direct support has been provided by NHI to OpCo since inception on September 30, 2012. We have concluded that OpCo meets the accounting criteria to be considered a VIE. However, because we do not control the entity, nor do we have any role in the day-to-day management, we are not the primary beneficiary of the entity, and we account for our investment using the equity method. We have no material obligation arising from our investment in OpCo, and we believe our maximum exposure to loss at December 31, 2013, due to this involvement, would be limited to our equity interest.

42

Contractual Obligations and Contingent Liabilities

As of December 31, 2013, our contractual payment obligations and contingent liabilities are more fully described in the notes to the consolidated financial statements and were as follows (in thousands):

	Total		Less than 1 year		1-3 years		3-5 years		More than 5 years
Debt, including interest1	$	689,576	$	—	$	111,912	$	25,485	$	552,179
Real estate purchase liabilities	2,600		1,000		1,600		—		—
Construction commitments	34,450		34,450		—		—		—
Loan commitments	2,000		2,000		—		—		—
	$	728,626	$	37,450	$	113,512	$	25,485	$	552,179

¹ Interest is calculated based on the interest rate at December 31, 2013 through maturity of the 7-year term loans, the revolving credit facility, and the mortgages assumed in our arrangement with Bickford, based on the balances outstanding as of December 31, 2013. The calculation also includes an unused commitment fee of .35%.

Commitments and Contingencies

Bickford

At December 31, 2013, our consolidated subsidiary, PropCo, had purchased land and begun construction on one assisted living facilities having a maximum cost of $9,000,000. Our costs incurred to date, including land, were $2,712,000. In a further transaction, we have a commitment of $2,785,000 on a letter of credit for the benefit of our joint venture partner, an affiliate of Bickford.

Chancellor

In October 2013, we entered into a $7,500,000 commitment to build a 46-unit free-standing assisted living and memory care community, expanding our Linda Valley senior living campus in Loma Linda, California. We expect to begin construction during the first quarter of 2014. The initial lease term is for 15 years at an annual rate of 9% plus a fixed annual escalator. NHI purchased the Linda Valley campus in 2012 and leased it to Chancellor Health Care, who has been operating the campus since 1993. We also committed to provide up to $500,000 for renovations and improvements related to our recent acquisition of a 63-unit senior housing community in Baltimore, Maryland which we have leased to Chancellor Health Care. We expect to begin the renovations during the first quarter of 2014.

Discovery

As a lease inducement, we have a contingent commitment to fund a series of payments up to $2,500,000 in connection with our September 2013 lease to Discovery of a senior living campus in Rainbow City, Alabama. Discovery would earn the contingent payments upon obtaining, and maintaining, a specified lease coverage ratio. As earned, the payments would be due in installments of $750,000 in each of years two and three of the lease with the residual due in year four. As of December 31, 2013, the likelihood that we would incur the contingent payments was not considered probable. Accordingly, no provision for these payments is reflected in the consolidated financial statements.

Fundamental

In April 2013, we completed the purchase of two skilled nursing facilities located in Canton and Corinth, Texas for a purchase price of $26,150,000 in cash, plus consideration related to the Corinth facility of $1,600,000 conditional upon the achievement of certain operating metrics, which continued to be probable as of December 31, 2013.

Helix Healthcare

In March 2010, we completed a purchase/leaseback transaction with Helix Healthcare (“Helix”) for $12,500,000. The purchase price includes a conditional payment of $1,000,000, which is recorded as a purchase liability.

Kentucky River

In March 2012, we entered into a long-term lease extension and construction commitment to Jackson Hospital Corporation, an affiliate of Community Health Systems, to provide up to $8,000,000 for extensive renovations and additions to our Kentucky River Medical Center, a general acute care hospital in Jackson, Kentucky. This investment will be added to the basis on which the lease amount is calculated. The construction project commenced during the first quarter of 2013 and is expected to continue over

43

two years. Total construction costs incurred as of December 31, 2013 were $5,838,000. The ten-year lease extension began July 1, 2012 with an additional 5-year renewal option.

Legend Healthcare

In October 2011, we completed a purchase/leaseback of four skilled nursing facilities in Texas with affiliates of Legend Healthcare, LLC (“Legend”) for $55,278,000, which included contingent consideration of $5,478,000. In December 2012, we funded $2,222,000 of this contingent consideration. We had previously anticipated the remaining $3,256,000, which was recorded as a purchase liability, to be funded. During the quarter ended December 31, 2013, we determined that Legend had not achieved the required operating metrics and therefore would not qualify for this remaining consideration. As a result, we have recorded a gain of $3,256,000 on the settlement of this purchase liability and have included this amount in investment and other gains in our Consolidated Statements of Income.

Santé

We have a $2,000,000 supplemental construction commitment to our borrower, Santé Partners, LLC (“Santé”). This additional loan amount becomes available to the borrower when the 70-bed transitional rehabilitation hospital, completed in March 2011, achieves certain operating metrics. NHI also has the option to purchase and lease back the hospital when it achieves a predetermined level of stabilized net operating income.

We had previously committed to fund a $3,500,000 expansion and renovation program in connection with our August 2012 acquisition of the senior living campus in Silverdale, Washington leased to Santé. As of December 31, 2013, we had fully funded this commitment, which was added to the basis on which the lease amount is calculated. Also in connection with our Silverdale, Washington senior living campus, we have a contingent commitment to fund two lease inducement payments of $1,000,000 each. Santé would earn the payments upon obtaining, and maintaining, a specified lease coverage ratio. If earned, the first payment would be due after the second lease year and the second payment would be due after the third lease year. At acquisition, the likelihood that we would incur the contingent payments was not considered probable. Accordingly, no provision for these payments is reflected in the consolidated financial statements.

44

FFO, AFFO & FAD

Funds From Operations - FFO

Our funds from operations for the year endedDecember 31, 2013increased$7,503,000, or 8.0%, over the same period in 2012. Our normalized FFO for the year endedDecember 31, 2013increased$12,448,000, or 14.1%, over the same period in 2012, primarily as the result of our new real estate investments in 2012 and 2013. FFO represents net earnings available to common stockholders, excluding real estate asset impairments and gains on dispositions, plus depreciation associated with real estate investments. Normalized FFO excludes from FFO certain items which, due to their infrequent or unpredictable nature, may create some difficulty in comparing FFO for the current period to similar prior periods, and may include, but are not limited to, impairment of non-real estate assets, gains and losses attributable to the acquisition and disposition of assets and liabilities, and recoveries of previous write-downs.

We believe that FFO and normalized FFO are important supplemental measures of operating performance for a REIT. Because the historical cost accounting convention used for real estate assets requires 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. The term FFO was designed by the REIT industry to address this issue.

Adjusted Funds From Operations - AFFO

Our normalized AFFO for the year endedDecember 31, 2013increased$10,570,000, or 12.60%, over the same period in 2012 due primarily to the impact of real estate investments completed during 2012 and 2013. In addition to the adjustments included in the calculation of normalized FFO, normalized AFFO excludes the impact of any straight-line rent adjustments.

We believe that normalized AFFO is an important supplemental measure of operating performance for a REIT. Generally accepted accounting principles (“GAAP”) require a lessor to recognize contractual lease payments into income on a straight-line basis over the expected term of the lease. This straight-line adjustment has the effect of reporting lease income that is significantly more or less than the contractual cash flows received pursuant to the terms of the lease agreement. Normalized AFFO is useful to our investors as it reflects the rate escalators inherent in the contractual lease payments received from our lessees.

Funds Available for Distribution - FAD

Our normalized FAD for the year endedDecember 31, 2013increased$11,528,000, or 13.2%, over the same period in 2012 due primarily to the impact of real estate investments completed during 2012 and 2013. In addition to the adjustments included in the calculation of normalized AFFO, normalized FAD excludes the impact of depreciation not associated with real estate investments and stock based compensation.

We believe that normalized FAD is an important supplemental measure of operating performance for a REIT as a useful indicator of the ability to distribute dividends to shareholders.

These operating performance measures may not be comparable to similarly titled measures used by other REITs. Consequently, our FFO, normalized FFO, normalized AFFO & normalized 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 these operating performance measures, caution should be exercised when comparing our Company's FFO, normalized FFO, normalized AFFO & normalized FAD to that of other REITs. These financial performance measures do not represent cash generated from operating activities in accordance with GAAP (these measures do 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.

45

The following table reconciles net income attributable to common stockholders, the most directly comparable GAAP metric, to FFO, Normalized FFO, Normalized AFFO and Normalized FAD and is presented for both basic and diluted weighted average common shares (in thousands, except share and per share amounts):

	Years ended December 31,
	2013			2012			2011
Net income attributable to common stockholders	$	106,183		$	90,731		$	81,132
Elimination of certain non-cash items in net income:
Real estate depreciation in continuing operations	17,646			13,182			10,516
Real estate depreciation related to noncontrolling interest	(537		)	(68		)	—
Real estate depreciation in discontinued operations	557			2,209			542
Net gain on sales of real estate	(22,258		)	(11,966		)	(3,348		)
Funds from operations	$	101,591		$	94,088		$	88,842
Investment gains	(3,256		)	(4,760		)	(9,899		)
Loan costs expensed due to credit facility amendments	416			—			—
Non-cash write-off of straight-line rent receivable	—			963			—
Change in fair value of interest rate swap agreement	—			—			1,197
Legal settlement	—			365			—
Loan impairments and (recoveries), net	1,976			(2,195		)	(99		)
Other items, net	208			26			135
Normalized FFO	$	100,935		$	88,487		$	80,176
Straight-line lease revenue, net	(6,560		)	(3,664		)	(3,778		)
Straight-line lease revenue, net, related to noncontrolling interest	55			—			—
Non-cash write-off of straight-line rent receivable	—			(963		)	—
Normalized AFFO	$	94,430		$	83,860		$	76,398
Non-real estate depreciation in continuing operations	2,455			1,590			934
Non-real estate depreciation related to noncontrolling interest	(97		)	(19		)	—
Non-cash stock based compensation	2,339			2,168			3,087
Normalized FAD	$	99,127		$	87,599		$	80,419
BASIC
Weighted average common shares outstanding	28,362,398			27,811,813			27,719,096
FFO per common share	$	3.58		$	3.38		$	3.21
Normalized FFO per common share	$	3.56		$	3.18		$	2.89
Normalized AFFO per common share	$	3.33		$	3.02		$	2.76
Normalized FAD per common share	$	3.50		$	3.15		$	2.90
DILUTED
Weighted average common shares outstanding	28,397,702			27,838,720			27,792,592
FFO per common share	$	3.58		$	3.38		$	3.20
Normalized FFO per common share	$	3.55		$	3.18		$	2.88
Normalized AFFO per common share	$	3.33		$	3.01		$	2.75
Normalized FAD per common share	$	3.49		$	3.15		$	2.89

46

Adjusted EBITDA

We consider Adjusted EBITDA to be an important supplemental measure because it provides information which we use to evaluate our performance and serves as an indication of our ability to service debt. We define Adjusted EBITDA as consolidated earnings before interest, taxes, depreciation and amortization, including amounts in discontinued operations, excluding real estate asset impairments and gains on dispositions and certain items which, due to their infrequent or unpredictable nature, may create some difficulty in comparing Adjusted EBITDA for the current period to similar prior periods, and may include, but are not limited to, impairment of non-real estate assets, gains and losses attributable to the acquisition and disposition of assets and liabilities, and recoveries of previous write-downs. Since others may not use our definition of Adjusted EBITDA, caution should be exercised when comparing our Adjusted EBITDA to that of other companies.

The following table reconciles net income, the most directly comparable GAAP metric, to Adjusted EBITDA:

	Years ended December 31,
	2013			2012			2011
Net income	$	107,182		$	90,898		$	81,132
Interest expense	9,229			3,492			2,651
Franchise, excise and other taxes	616			771			837
Depreciation in continuing and discontinued operations	20,658			16,981			11,992
Net gain on sales of real estate	(22,258		)	(11,966		)	(3,348		)
Investment gains	(3,256		)	(4,760		)	(9,899		)
Loan costs expensed due to credit facility amendments	416			—			—
Non-cash write-off of straight-line rent receivable	—			963			—
Change in fair value of interest rate swap agreement	—			—			1,197
Legal settlement	—			365			—
Loan impairments and (recoveries), net	1,976			(2,195		)	(99		)
Other items, net	208			26			135
Adjusted EBITDA	$	114,771		$	94,575		$	84,598

47

ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.

Interest Rate Risk

At December 31, 2013, we were exposed to market risks related to fluctuations in interest rates on approximately $417,000,000 of variable-rate indebtedness (excludes $120,000,000 of variable-rate debt that has been hedged through interest-rate swap contracts) and on our mortgage and other notes receivable. The unused portion ($83,000,000 at December 31, 2013) of our credit facility, should it be drawn upon, is subject to variable rates.

Interest rate fluctuations will generally not affect our future earnings or cash flows on our fixed rate debt and loans receivable unless such instruments mature or are otherwise terminated. However, interest rate changes will affect the fair value of our fixed rate instruments. Conversely, changes in interest rates on variable rate debt and investments would change our future earnings and cash flows, but not significantly affect the fair value of those instruments. Assuming a 50 basis point increase or decrease in the interest rate related to variable-rate debt, and assuming no change in the outstanding balance as of December 31, 2013, net interest expense would increase or decrease annually by approximately $2,085,000 or $.07 per common share on a diluted basis.

We use derivative financial instruments in the normal course of business to mitigate interest rate risk. We do not use derivative financial instruments for speculative purposes. Derivatives are included in the Consolidated Balance Sheets at their fair value. We may engage in hedging strategies to manage our exposure to market risks in the future, depending on an analysis of the interest rate environment and the costs and risks of such strategies.

The following table sets forth certain information with respect to our debt (dollar amounts in thousands):

	December 31, 2013						December 31, 2012
	Balance1		% of total		Rate2		Balance		% of total		Rate2
Fixed rate:
Unsecured 7-year term loan	$	40,000	6.5	%	3.29	%	$	40,000	19.6	%	3.04	%
Unsecured 7-year term loan	80,000		13.0	%	3.86	%	—		—		—
Secured mortgage loan	71,090		11.6	%	6.85	%	—		—		—
Secured mortgage loan	7,234		1.2	%	7.20	%	—		—		—
Variable rate:
Unsecured 7-year term loan	—		—		—		80,000		39.4	%	1.62	%
Secured mortgage loan	—		—		—		19,250		9.5	%	3.22	%
Unsecured 4.5-year term loan	250,000		40.6	%	1.97	%	—		—		—
Unsecured revolving credit facility	167,000		27.1	%	1.87	%	64,000		31.5	%	1.62	%
	$	615,324	100.0	%	2.90	%	$	203,250	100.0	%	2.05	%
1Excludes unamortized premium of $1,756 applicable to two fixed rate secured mortgages
2Total is weighted average rate

The unsecured 7-year term loans in the table above reflects the effect of $40,000,000 and $80,000,000 notional amount interest rate swaps with maturities of April 2019 and June 2020, respectively, that effectively converts variable rate debt to fixed rate debt. These loans bear interest at LIBOR plus a spread, currently 175 basis points, based on our Consolidated Coverage Ratio, as defined.

To highlight the sensitivity of our secured mortgage loans to changes in interest rates, the following summary shows the effects on fair value ("FV") assuming a parallel shift of 50 basis points ("bps") in market interest rates for a contract with similar maturities as of December 31, 2013(dollar amounts in thousands):

	Balance		Fair Value1		FV reflecting change in interest rates
Fixed rate:					-50 bps		+50 bps
Secured mortgage loan	$	71,090	$	72,011	$	72,359	$	71,665
Secured mortgage loan	7,234		7,354		7,389		7,319
1 The change in fair value of our fixed rate debt was due primarily to the overall change in interest rates.

48

At December 31, 2013, the fair value of our mortgage loans receivable, discounted for estimated changes in the risk-free rate, was approximately $67,201,000. A 50 basis point increase in market rates would decrease the estimated fair value of our mortgage loans by approximately $1,161,000, while a 50 basis point decrease in such rates would increase their estimated fair value by approximately $1,211,000.

Equity Price Risk

We are exposed to equity price risk, which is the potential change in fair value due to a change in quoted market prices. We account for our investments in marketable securities, with a fair value of $12,650,404 at December 31, 2013, as available-for-sale securities. Increases and decreases in the fair market value of our investments in other marketable securities are unrealized gains and losses that are presented as a component of other comprehensive income. The investments in marketable securities are recorded at their fair value based on quoted market prices. Thus, there is exposure to equity price risk. We monitor our investments in marketable securities to consider evidence of whether any portion of our original investment is likely not to be recoverable, at which time we would record an impairment charge to operations. A hypothetical 10% change in quoted market prices would result in a related $1,265,000 change in the fair value of our investments in marketable securities.

49

ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA.

Board of Directors and Stockholders

National Health Investors, Inc.

Murfreesboro, Tennessee

We have audited the accompanying consolidated balance sheets of National Health Investors, Inc. as of December 31, 2013 and 2012 and the related consolidated statements of income, comprehensive income, equity, and cash flows for each of the three years in the period ended December 31, 2013. These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of National Health Investors, Inc. at December 31, 2013 and 2012, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2013, in conformity with accounting principles generally accepted in the United States of America.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), National Health Investors, Inc.’s internal control over financial reporting as of December 31, 2013, based on criteria established in Internal Control — Integrated Framework (1992) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO) and our report dated February 14, 2014 expressed an unqualified opinion thereon.

/s/ BDO USA, LLP

Nashville, Tennessee

February 14, 2014

50

NATIONAL HEALTH INVESTORS, INC.

CONSOLIDATED BALANCE SHEETS

(in thousands, except share and per share amounts)

	December 31,
Assets:	2013			2012
Real estate properties:
Land	$	91,770		$	58,869
Buildings and improvements	1,320,567			636,994
Construction in progress	9,665			2,673
	1,422,002			698,536
Less accumulated depreciation	(174,262		)	(163,146		)
Real estate properties, net	1,247,740			535,390
Mortgage and other notes receivable, net	60,639			84,250
Investment in preferred stock, at cost	38,132			38,132
Cash and cash equivalents	11,312			9,172
Marketable securities	12,650			12,884
Straight-line rent receivable	18,691			12,370
Equity-method investment and other assets	66,656			12,172
Assets held for sale, net	—			1,611
Total Assets	$	1,455,820		$	705,981
Liabilities and Equity:
Debt	$	617,080		$	203,250
Real estate purchase liabilities	2,600			4,256
Accounts payable and accrued expenses	8,011			3,671
Dividends payable	24,293			24,793
Lease deposit liabilities	22,775			—
Deferred income	3,901			1,964
Total Liabilities	678,660			237,934
Commitments and Contingencies
National Health Investors Stockholders' Equity:
Common stock, $.01 par value; 40,000,000 shares authorized;
33,051,176 and 27,857,217 shares issued and outstanding, respectively	330			279
Capital in excess of par value	753,635			467,843
Cumulative net income in excess (deficit) of dividends	3,043			(18,495		)
Accumulated other comprehensive income	9,538			7,555
Total National Health Investors Stockholders' Equity	766,546			457,182
Noncontrolling interest	10,614			10,865
Total Equity	777,160			468,047
Total Liabilities and Equity	$	1,455,820		$	705,981

The accompanying notes to consolidated financial statements are an integral part of these consolidated financial statements.

51

NATIONAL HEALTH INVESTORS, INC.

CONSOLIDATED STATEMENTS OF INCOME

(in thousands, except share and per share amounts)

	Year Ended December 31,
	2013			2012			2011
Revenues:
Rental income	$	106,029		$	81,482		$	72,608
Interest income from mortgage and other notes	7,633			7,426			6,652
Investment income and other	4,166			4,409			4,479
	117,828			93,317			83,739
Expenses:
Depreciation	20,101			14,772			11,450
Interest	9,229			3,492			3,848
Legal	784			766			559
Franchise, excise and other taxes	616			771			837
General and administrative	9,254			7,799			7,588
Loan and realty losses (recoveries), net	1,976			(2,195		)	(99		)
	41,960			25,405			24,183
Income before equity-method investee, investment and other gains,
discontinued operations and noncontrolling interest	75,868			67,912			59,556
Income from equity-method investee	324			45			—
Investment and other gains	3,306			4,877			10,261
Income from continuing operations	79,498			72,834			69,817
Discontinued operations
Income from operations - discontinued	5,426			6,098			7,967
Gain on sale of real estate	22,258			11,966			3,348
Income from discontinued operations	27,684			18,064			11,315
Net income	107,182			90,898			81,132
Less: net income attributable to noncontrolling interest	(999		)	(167		)	—
Net income attributable to common stockholders	$	106,183		$	90,731		$	81,132
Weighted average common shares outstanding:
Basic	28,362,398			27,811,813			27,719,096
Diluted	28,397,702			27,838,720			27,792,592
Earnings per common share:
Basic:
Income from continuing operations attributable to common stockholders	$	2.77		$	2.61		$	2.52
Discontinued operations	.97			.65			.41
Net income per common share attributable to common stockholders	$	3.74		$	3.26		$	2.93
Diluted:
Income from continuing operations attributable to common stockholders	$	2.77		$	2.61		$	2.51
Discontinued operations	.97			.65			.41
Net income per common share attributable to common stockholders	$	3.74		$	3.26		$	2.92

The accompanying notes to consolidated financial statements are an integral part of these consolidated financial statements.

52

NATIONAL HEALTH INVESTORS, INC.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(in thousands)

	Year Ended December 31,
	2013			2012			2011
Net income	$	107,182		$	90,898		$	81,132
Other comprehensive income:
Change in unrealized gains on securities	(234		)	1,645			1,750
Less: reclassification adjustment for gains in net income	—			(30		)	(9,899		)
Increase (decrease) in fair value of cash flow hedge	3,563			(1,017		)	—
Less: reclassification adjustment for amounts recognized in net income	(1,346		)	(224		)	—
Total other comprehensive income (loss)	1,983			374			(8,149		)
Comprehensive income	109,165			91,272			72,983
Less: comprehensive income attributable to noncontrolling interest	(999		)	(167		)	—
Comprehensive income attributable to common stockholders	$	108,166		$	91,105		$	72,983

The accompanying notes to consolidated financial statements are an integral part of these consolidated financial statements.

53

NATIONAL HEALTH INVESTORS, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

	Year Ended December 31,
	2013			2012			2011
Cash flows from operating activities:
Net income	$	107,182		$	90,898		$	81,132
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation	20,658			16,981			11,992
Amortization	247			320			581
Straight-line rental income	(6,560		)	(3,664		)	(3,778		)
Non-cash interest income on construction loan	—			—			(1,082		)
Write-off of debt issuance costs	416			—			—
Loan and realty losses (recoveries), net	1,976			(2,195		)	(99		)
Gain on sale of real estate	(22,258		)	(11,966		)	(3,348		)
Gain on payoff of mortgage note	—			(4,605		)	—
Gain on purchase liability settlement	(3,256		)	—			—
Net realized gains on sales of marketable securities	—			(30		)	(9,899		)
Share-based compensation	2,339			2,168			3,087
Change in fair value of interest rate swap agreement	—			—			1,197
Income from equity-method investee	(324		)	(45		)	—
Change in operating assets and liabilities:
Equity-method investment and other assets	(659		)	(745		)	(3,236		)
Accounts payable and accrued expenses	2,495			(512		)	95
Deferred income	1,937			(339		)	212
Net cash provided by operating activities	104,193			86,266			76,854
Cash flows from investing activities:
Investment in mortgage and other notes receivable	(11,082		)	(16,241		)	(6,566		)
Collection of mortgage and other notes receivable	18,976			17,463			4,540
Investment in real estate	(635,971		)	(110,601		)	(75,806		)
Investment in real estate development	(11,926		)	—			—
Investment in renovations of existing real estate	(6,773		)	—			—
Receipt of earnest money deposit	—			—			525
Investment in equity-method investment	—			(8,309		)	—
Payment of real estate purchase liability	—			(5,222		)	—
Proceeds from disposition of real estate properties	20,952			22,975			8,971
Proceeds from sales of marketable securities	—			125			12,862
Net cash used in investing activities	(625,824		)	(99,810		)	(55,474		)
Cash flows from financing activities:
Net change in borrowings under revolving credit facilities	103,000			(33,300		)	59,535
Borrowings on term loan	330,000			120,000			50,000
Payments of term loans	(99,655		)	—			(50,000		)
Debt issuance costs	(5,867		)	(766		)	—
Proceeds from equity offering, net	282,542			—			—
Proceeds from exercise of stock options	146			(2		)	200
Distributions to noncontrolling interest	(1,250		)	(177		)	—
Dividends paid to stockholders	(85,145		)	(78,925		)	(67,893		)
Net cash provided by (used in) financing activities	523,771			6,830			(8,158		)
Increase (Decrease) in cash and cash equivalents	2,140			(6,714		)	13,222
Cash and cash equivalents, beginning of period	9,172			15,886			2,664
Cash and cash equivalents, end of period	$	11,312		$	9,172		$	15,886

The accompanying notes to consolidated financial statements are an integral part of these consolidated financial statements.

54

NATIONAL HEALTH INVESTORS, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS (CONTINUED)

(in thousands)

	Year Ended December 31,
	2013		2012		2011
Supplemental disclosure of cash flow information:
Interest paid	$	8,342	$	3,449	$	2,156
Supplemental disclosure of non-cash investing and financing activities:
Settlement of mortgage note by real estate acquisition	$	13,741	$	—	$	—
Lease escrow deposits	$	22,775	$	—	$	—
Escrow deposit for tax deferred exchange	$	23,813	$	—	$	—
Conditional consideration in asset acquisition	$	1,600	$	—	$	5,478
Accounts payable increase due to investments in real estate	$	3,086	$	—	$	—
Discount on mortgage note receivable purchased	$	—	$	—	$	204
Assumption of debt in real estate acquisition, at fair value	$	80,528	$	19,250	$	—
Noncontrolling interest conveyed in acquisition	$	—	$	10,964	$	—
Assignment of net assets in equity-method investee	$	817	$	—	$	—

The accompanying notes to consolidated financial statements are an integral part of these consolidated financial statements.

55

NATIONAL HEALTH INVESTORS, INC.

CONSOLIDATED STATEMENTS OF EQUITY

(in thousands except share and per share amounts)

	Common Stock			Capital in Excess of Par Value			Cumulative Net Income in Excess (Deficit) of Dividends			Accumulated Other Comprehensive Income			Total National Health Investors Stockholders' Equity			Noncontrolling Interest			Total Equity
	Shares	Amount
Balances at December 31, 2010	27,689,392	$	277	$	462,392		$	(35,499	)	$	15,330		$	442,500		$	—		$	442,500
Total comprehensive income	—	—		—			81,132			(8,149		)	72,983			—			72,983
Shares issued on stock options exercised	61,816	1		199			—			—			200			—			200
Share-based compensation	—	—		3,087			—			—			3,087			—			3,087
Dividends declared, $2.715 per common share	—	—		—			(75,285		)	—			(75,285		)	—			(75,285		)
Balances at December 31, 2011	27,751,208	$	278	$	465,678		$	(29,652	)	$	7,181		$	443,485		$	—		$	443,485
Total comprehensive income	—	—		—			90,731			374			91,105			167			91,272
Noncontrolling interest conveyed in acquisition	—	—		—			—			—			—			10,964			10,964
Distributions to noncontrolling interest	—	—		—			—			—			—			(266		)	(266		)
Shares issued on stock options exercised	106,009	1		(3		)	—			—			(2		)	—			(2		)
Share-based compensation	—	—		2,168			—			—			2,168			—			2,168
Dividends declared, $2.86 per common share	—	—		—			(79,574		)	—			(79,574		)	—			(79,574		)
Balances at December 31, 2012	27,857,217	$	279	$	467,843		$	(18,495	)	$	7,555		$	457,182		$	10,865		$	468,047
Total comprehensive income	—	—		—			106,183			1,983			108,166			999			109,165
Distributions to noncontrolling interest	—	—		—			—			—			—			(1,250		)	(1,250		)
Issuance of common stock, net	5,175,000	51		282,490			—			—			282,541			—			282,541
Shares issued on stock options exercised	18,959	—		146			—			—			146			—			146
Share-based compensation	—	—		2,339			—			—			2,339			—			2,339
Assignment of net assets in equity-method investee	—	—		817			—			—			817			—			817
Dividends declared, $2.90 per common share	—	—		—			(84,645		)	—			(84,645		)	—			(84,645		)
Balances at December 31, 2013	33,051,176	$	330	$	753,635		$	3,043		$	9,538		$	766,546		$	10,614		$	777,160

The accompanying notes to consolidated financial statements are an integral part of these consolidated financial statements.

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NATIONAL HEALTH INVESTORS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2013

NOTE 1. SIGNIFICANT ACCOUNTING POLICIES

The Company - National Health Investors, Inc. ("NHI" or the "Company"), a Maryland corporation incorporated and publicly listed in 1991, is a real estate investment trust (“REIT”) specializing in financing healthcare real estate by purchase and leaseback transactions, RIDEA transactions and mortgage loans. Our investments include senior housing (assisted living, memory care, independent living and senior living campuses), skilled nursing, medical office buildings and specialty hospitals. Revenue is derived primarily from rental income on leased properties, interest income on mortgage loans and income from investments in the securities of other healthcare REITs.

Principles of Consolidation - The accompanying consolidated financial statements include our accounts and the accounts of our wholly-owned subsidiaries and the joint venture entity over which we exercise control. All inter-company transactions and balances have been eliminated in consolidation. Net income is reduced by the portion of net income attributable to noncontrolling interests.

We apply Financial Accounting Standards Board ("FASB") guidance for our arrangements with variable interest entities ("VIEs") which requires us to identify entities for which control is achieved through means other than voting rights and to determine which business enterprise is the primary beneficiary of the VIE. A VIE is broadly defined as an entity with one or more of the following characteristics: (a) the total equity investment at risk is insufficient to finance the entity's activities without additional subordinated financial support; (b) as a group, the holders of the equity investment at risk lack (i) the ability to make decisions about the entity's activities through voting or similar rights, (ii) the obligation to absorb the expected losses of the entity, or (iii) the right to receive the expected residual returns of the entity; or (c) the equity investors have voting rights that are not proportional to their economic interests, and substantially all of the entity's activities either involve, or are conducted on behalf of, an investor that has disproportionately few voting rights. We consolidate investments in VIEs when we are determined to be the primary beneficiary of the VIE. We may change our assessment of a VIE due to events such as modifications of contractual arrangements that affect the characteristics or adequacy of the entity's equity investments at risk and the disposal of all or a portion of an interest held by the primary beneficiary.

We identify the primary beneficiary of a VIE as the enterprise that has both: (i) the power to direct the activities of the VIE that most significantly impact the entity's economic performance; and (ii) the obligation to absorb losses or the right to receive benefits of the VIE that could be significant to the entity. We perform this analysis on an ongoing basis. At December 31, 2013, we held an interest in one unconsolidated VIE, of which we were not the primary beneficiary.

We also apply FASB guidance related to investments in joint ventures based on the type of controlling rights held by the members' interests in limited liability companies that may preclude consolidation by the majority equity owner in certain circumstances in which the majority equity owner would otherwise consolidate the joint venture.

We structure our joint ventures to be compliant with the provisions of the REIT Investment Diversification and Empowerment Act of 2007 ("RIDEA") which permits NHI to receive rent payments through a triple-net lease between a property company and an operating company, and is designed to give NHI the opportunity to capture additional value on the improving performance of the operating company through distributions to a taxable REIT subsidiary ("TRS"). Accordingly, the TRS holds our equity interest in an unconsolidated operating company, which we do not control, and provides an organizational structure that will allow the TRS to engage in a broad range of activities and share in revenues that would otherwise be non-qualifying income under the REIT gross income tests.

Equity-Method Investment - We report our TRS' investment in an unconsolidated entity, over whose operating and financial policies we have the ability to exercise significant influence but not control, under the equity method of accounting. Under this method of accounting, our pro rata share of the entity's earnings or losses is included in our Consolidated Statements of Income. Additionally, we adjust our investment carrying amount to reflect our share of changes in an equity-method investee's capital resulting from its capital transactions.

The initial carrying value of our equity-method investment is based on the fair value of the net assets of the entity at the time we acquired our interest. We estimate fair values of the net assets of our equity-method investee based on discounted cash flow models. The inputs we use in these models are based on assumptions that we believe to be within a reasonable range of current market rates for the respective investments.

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We evaluate our equity-method investment for impairment whenever events or changes in circumstances indicate that the carrying value of our investment may exceed the fair value. If it is determined that a decline in the fair value of our investment is not temporary, and if such reduced fair value is below its carrying value, an impairment is recorded. The determination of the fair value of our equity-method investments involve significant judgment. Our estimates consider all available evidence including the present value of the expected future cash flows discounted at market rates, general economic conditions and other relevant factors.

Noncontrolling Interest - We present the portion of any equity that we do not own in entities that we control (and thus consolidate) as noncontrolling interest and classify such interest as a component of consolidated equity, separate from total NHI stockholders' equity, in our Consolidated Balance Sheets. In addition, we include net income attributable to the noncontrolling interest in net income in our Consolidated Statements of Income.

Use of Estimates - The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the U.S. requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Fair Value Measurements - Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. A three-level fair value hierarchy is required to prioritize the inputs used to measure fair value. This hierarchy requires entities to maximize the use of observable inputs and minimize the use of unobservable inputs.

The three levels of inputs used to measure fair value are as follows:

Level 1 - Quoted prices in active markets for identical assets or liabilities.

Level 2 - Observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data.

Level 3 - Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. This includes certain pricing models, discounted cash flow methodologies and similar techniques that use significant unobservable inputs.

If the fair value measurement is based on inputs from different levels of the hierarchy, the level within which the entire fair value measurement falls is the lowest level input that is significant to the fair value measurement in its entirety. Our assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the asset or liability. When an event or circumstance alters our assessment of the observability and thus the appropriate classification of an input to a fair value measurement which we deem to be significant to the fair value measurement as a whole, we will transfer that fair value measurement to the appropriate level within the fair value hierarchy.

Real Estate Properties - Real estate properties are recorded at cost or, if acquired through business combination, at fair value. Cost or fair value at the time of acquisition is allocated among land, buildings, tenant improvements, lease and other intangibles, and personal property. For properties acquired in transactions accounted for as asset purchases, the purchase price allocation is based on the relative fair values of the assets acquired. Cost includes capitalized interest during construction periods. We use the straight-line method of depreciation for buildings over their estimated useful lives of 40 years, and improvements over their estimated useful lives ranging from 3 to 25 years.

We evaluate the recoverability of the carrying value of our real estate properties on a property-by-property basis. On a quarterly basis, we review our properties for recoverability when events or circumstances, including significant physical changes in the property, significant adverse changes in general economic conditions and significant deteriorations of the underlying cash flows of the property, indicate that the carrying amount of the property may not be recoverable. The need to recognize an impairment charge is based on estimated undiscounted future cash flows from a property compared to the carrying value of that property. If recognition of an impairment charge is necessary, it is measured as the amount by which the carrying amount of the property exceeds the fair value of the property.

We have reclassified for all periods presented the operations of facilities meeting the accounting criteria as either being sold or held for sale as discontinued operations in the Consolidated Statements of Income. Long-lived assets classified as held for sale are reported separately in the Consolidated Balance Sheets. When assets previously classified as being held for sale no longer meet the accounting criteria for such classification, we reclassify those assets as held and used, measured at the lower of their carrying

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amount before the assets were classified as held for sale (adjusted in the period in which the decision not to sell was made for any depreciation expense that would have been recognized had the assets been continuously classified as held and used) or their fair value at the date of the subsequent decision not to sell. Results of operations of the facilities previously disclosed in our Consolidated Statements of Income as discontinued operations which no longer meet the accounting criteria as held for sale are reclassified into continuing operations for all periods presented. There is no change to reported net income for the prior periods as a result of this reclassification.

Mortgage and Other Notes Receivable - Each quarter, we evaluate the carrying values of our notes receivable on an instrument-by-instrument basis for recoverability when events or circumstances, including the non-receipt of contractual principal and interest payments, significant deteriorations of the financial condition of the borrower and significant adverse changes in general economic conditions, indicate that the carrying amount of the note receivable may not be recoverable. If a note receivable becomes more than 30 days delinquent as to contractual principal or interest payments, the loan is classified as non-performing, and thereafter we recognize all amounts due when received. If necessary, an impairment is measured as the amount by which the carrying amount exceeds the discounted cash flows expected to be received under the note receivable or, if foreclosure is probable, the fair value of the collateral securing the note receivable.

Cash Equivalents - Cash equivalents consist of all highly liquid investments with an original maturity of three months or less.

Concentration of Credit Risks - Our credit risks primarily relate to cash and cash equivalents, investments in preferred stock and investments in mortgage and other notes receivable. Cash and cash equivalents are primarily held in bank accounts and overnight investments. We maintain our bank deposit accounts with large financial institutions in amounts that often exceed federally-insured limits. We have not experienced any losses in such accounts. Our mortgages and other notes receivable consist primarily of secured loans on health care facilities. Our investment in preferred stock is in another healthcare REIT.

Our financial instruments, principally our investments in preferred stock, marketable securities, and notes receivable, are subject to the possibility of loss of the carrying values as a result of either the failure of other parties to perform according to their contractual obligations or changes in market prices which may make the instruments less valuable. We obtain collateral in the form of mortgage liens and other protective rights and continually monitor these rights in order to reduce such possibilities of loss. We evaluate the need to provide for reserves for potential losses on our financial instruments based on management's periodic review of our portfolio on an instrument-by-instrument basis.

Marketable Securities - Our investments in marketable securities are classified as available-for-sale securities. Unrealized gains and losses on available-for-sale securities are recorded in stockholders' equity. We evaluate our marketable securities for other-than-temporary impairments on at least a quarterly basis. Realized gains and losses from the sale of available-for-sale securities are determined on a specific-identification basis.

A decline in the market value of any available-for-sale or held-to-maturity security below cost that is deemed to be other-than-temporary results in an impairment to reduce the carrying amount to fair value. The impairment is charged to earnings and a new cost basis for the security is established. To determine whether an impairment is other-than-temporary, we consider whether we have the ability and intent to hold the investment until a market price recovery and consider whether evidence indicating the cost of the investment is recoverable outweighs evidence to the contrary. Evidence considered in this assessment includes the reasons for the impairment, the severity and duration of the impairment, changes in value subsequent to year-end and forecasted performance of the investment.

Deferred Costs - Costs incurred to acquire debt are amortized by the effective interest method over the term of the related debt.

Deferred Income - Deferred income primarily includes non-refundable loan and lease commitment fees received by us, which are amortized into income over the expected period of the related loan or lease. In the event that our financing commitment to a potential borrower or lessee expires, the related commitment fees are recognized into income immediately. Commitment fees may be charged based on the terms of the loan or lease agreements and the creditworthiness of the parties.

Rental Income - Base rental income is recognized using the straight-line method over the term of the lease. Under certain leases, we receive additional contingent rent, which is calculated on the increase in revenues of the lessee over a base year or base quarter. We recognize contingent rent annually or quarterly when, based on the actual revenues of the lessee, receipt of such income is probable since the target threshold has been achieved. Revenue from minimum lease payments under our leases is recognized on a straight-line basis to the extent that future lease payments are considered collectible. Lease payments that depend on a factor directly related to future use of the property, such as an increase in annual revenues over a base year, are considered to be contingent rentals and are excluded from minimum lease payments.

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If rental income calculated on a straight-line basis exceeds the cash rent due under a lease, the difference is recorded as an increase to straight-line rent receivable in the Consolidated Balance Sheets and an increase in rental income in the Consolidated Statements of Income. If rental income on a straight-line basis is calculated to be less than cash received, there is a decrease in the same accounts.

We identify a lease as non-performing if a required payment is not received within 30 days of the date it is due. Our policy related to rental income on non-performing leased real estate properties is to recognize rental income in the period when the related cash is received. As of December 31, 2013, we had not identified any of our leases as non-performing.

Mortgage Interest Income - Mortgage interest income is recognized based on the interest rates and principal amounts outstanding on the mortgage notes receivable. Under certain mortgages, we receive additional contingent interest, which is calculated on the increase in the current year revenues of a borrower over a base year. We identify a mortgage loan as non-performing if a required payment is not received within 30 days of the date it is due. Our policy related to mortgage interest income on non-performing mortgage loans is to recognize mortgage interest income in the period when the cash is received. As of December 31, 2013, we had not identified any of our mortgages as non-performing.

Investment Income and Other - Investment income and other includes dividends when declared and interest when earned from investments in preferred stock and marketable securities of other healthcare REITs, interest on cash and cash equivalents when earned, and amortization of deferred income. Realized gains and losses on sales of marketable securities using the specific-identification method are included as a separate component of continuing operations in the Consolidated Statements of Income as investment and other gains.

Derivatives - In the normal course of business, we are subject to risk from adverse fluctuations in interest rates. We have periodically chosen to manage this risk through the use of derivative financial instruments, primarily interest rate swaps. Counterparties to these contracts are major financial institutions. We are exposed to credit loss in the event of nonperformance by these counterparties. We do not use derivative instruments for trading or speculative purposes. Our objective in managing exposure to market risk is to limit the impact on cash flows.

To qualify for hedge accounting, our interest rate swaps must effectively reduce the risk exposure that they are designed to hedge. In addition, at inception of a qualifying cash flow hedging relationship, the underlying transaction or transactions must be, and are expected to remain, probable of occurring in accordance with our related assertions. All of our hedges are cash flow hedges.

We recognize all derivative instruments, including embedded derivatives required to be bifurcated, as assets or liabilities at their fair value in the Consolidated Balance Sheets. Changes in the fair value of derivative instruments that are not designated as hedges or that do not meet the criteria of hedge accounting are recognized in earnings. For derivatives designated in qualifying cash flow hedging relationships, the change in fair value of the effective portion of the derivatives is recognized in accumulated other comprehensive income (loss), whereas the change in fair value of the ineffective portion is recognized in earnings.

Federal Income Taxes - We intend at all times to qualify as a REIT under Sections 856 through 860 of the Internal Revenue Code of 1986, as amended. Effective October 1, 2012, we began recording income tax expense or benefit with respect to one of our subsidiaries which is taxed as a Taxable REIT Subsidiary ("TRS") under provisions similar to those applicable to regular corporations. Aside from such income taxes which may be applicable to the taxable income in the TRS, we will not be subject to U.S. federal income tax, provided that we continue to qualify as a REIT and make distributions to stockholders equal to or in excess of our taxable income. Accordingly, no provision for federal income taxes has been made in the consolidated financial statements, except for the provision on the taxable income of the TRS which is included in franchise, excise and other taxes in the Consolidated Statements of Income. Our failure to continue to qualify under the applicable REIT qualification rules and regulations would have a material adverse impact on our financial position, results of operations and cash flows.

Earnings and profits, which determine the taxability of dividends to stockholders, differ from net income reported for financial reporting purposes due primarily to differences in the basis of assets, estimated useful lives used to compute depreciation expense, gains on sales of real estate, non-cash compensation expense and recognition of commitment fees.

Our tax returns filed for years beginning in 2010 are subject to examination by taxing authorities. We classify interest and penalties related to uncertain tax positions, if any, in our consolidated financial statements as a component of income tax expense.

Segment Disclosures - We are in the business of owning and financing health care properties. We are managed as one segment, rather than multiple segments for internal purposes and for internal decision making.

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New Accounting Pronouncements - In February 2013, the FASB issued ASU 2013-02, Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income, which amends FASB Topic 220, Comprehensive Income, which requires entities to provide information about amounts reclassified out of accumulated other comprehensive income by component. In addition, an entity is required to present, either on the face of the income statement or in the notes, significant amounts reclassified out of accumulated other comprehensive income by the respective line items of net income. ASU 2013-02 was effective prospectively for reporting periods beginning after December 15, 2012. The adoption of ASU 2013-02 did not have a material impact on our consolidated financial statements.

In July 2013 the FASB issued ASU 2013-10, Derivatives and Hedging, which amends Topic 815. ASU 2013-10 permits the Fed Funds Effective Swap Rate (OIS) to be used as a U.S. benchmark interest rate for hedge accounting purposes under Topic 815, in addition to U.S. Treasury and LIBOR. ASU 2013-10 also removes the restriction on using different benchmark rates for similar hedges. ASU 2013-10 is effective prospectively for qualifying new or redesignated hedging relationships entered into on or after July 17, 2013. The adoption of ASU 2013-10 did not have a material impact on our consolidated financial statements.

NOTE 2. REAL ESTATE

As of December 31, 2013, we owned 157 health care real estate properties located in 30 states and consisting of 91 senior housing communities, 61 skilled nursing facilities, 3 hospitals and 2 medical office buildings. Our senior housing properties include assisted living facilities, independent living facilities, and senior living campuses. These investments (excluding our corporate office of $882,000) consisted of properties with an original cost of approximately $1,421,120,000, rented under triple-net leases to 23 lessees.

Acquisitions and New Leases of Real Estate

During the year ended December 31, 2013, we made the following real estate investments and commitments as described below (dollars in thousands):

Operator	Properties	Asset Class	Amount
Holiday Acquisition Holdings LLC	25	Senior Housing	$	492,959
Bickford Senior Living/RIDEA Structure	17	Senior Housing	137,459
National Healthcare Corporation	7	Skilled Nursing	37,417
Fundamental Long Term Care Holdings, LLC	2	Skilled Nursing	27,750
Chancellor Health Care, LLC	2	Senior Housing	17,000
Emeritus Senior Living	1	Senior Housing	15,300
Discovery Senior Living	1	Senior Housing	12,000
			$	739,885

Holiday

In December 2013 we acquired 25 independent living facilities from Holiday Acquisition Holdings LLC (“Holiday”), an affiliate of Holiday Retirement, for $491,000,000 plus transaction costs of $1,959,000. Because the Holiday facilities were owner operated, we accounted for the transaction as an asset purchase. The total purchase price was allocated to the assets acquired based upon their relative fair values, preliminarily estimated as $21,700,000 to land and $471,259,000 to buildings and improvements. No intangibles were identified in the acquisition. Such allocations have not been finalized as we await conclusive asset valuations and, as such, the results of the allocation are preliminary and subject to adjustment. This portfolio is located in 12 states from New Jersey to California. We have leased this portfolio to NH Master Tenant, LLC, a subsidiary of Holiday, who continues to operate the facilities pursuant to a management agreement with a Holiday-affiliated manager.

The Master Lease term of 17 years began in December 2013 and provides for initial base rent of $31,915,000 plus annual escalators of 4.5% in the first 3 years and a minimum of 3.5% each year thereafter. Because the facilities were owner-occupied, we accounted for the acquisition as an asset purchase. Holiday's obligations to us under the master lease are guaranteed by its indirect parent, Holiday AL Holdings, LP.

We funded this acquisition with proceeds of a $250,000,000 term loan described in Note 7 to the consolidated financial statements and proceeds from the sale of 5,175,000 shares of our common stock having net proceeds of $282,542,000, after deducting $12,500,000 in underwriting discounts, commissions and other offering expenses.

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Bickford

As of December 31, 2013, we owned an 85% equity interest and an affiliate of Bickford Senior Living ("Bickford") owned a 15% equity interest in our consolidated subsidiary ("PropCo") which owns 29 assisted living/memory care facilities and also has 1 facility under construction. The facilities are leased to an operating company, ("OpCo"), in which we also retain an 85% ownership interest, but do not control. Our joint venture is structured to comply with the provisions of RIDEA.

On June 28, 2013, PropCo purchased 17 assisted living and memory care facilities which were managed by Bickford. The facilities total 750 units and are located in Illinois, Indiana, Iowa and Nebraska. Of these facilities, 14 were acquired from a subsidiary of Care Investment Trust, Inc. ("Care") for $124,549,000, consisting of $44,021,000 in cash and assumption of secured debt with a fair value of $80,528,000. PropCo accounted for acquisition of the 100% interest in the real estate operations of these facilities using the acquisition method as prescribed by ASC Topic 805. As part of this transaction, we recognized all identifiable tangible assets and liabilities assumed at fair value at the date of acquisition (there were no identifiable intangible assets or liabilities assumed) and attributed $4,360,000 to the fair value of the land, $120,189,000 to the fair value of the buildings and improvements and expensed $63,000 in transaction costs at closing. The 14 newly-acquired facilities have been leased to OpCo for an initial term of 5 years at an aggregate annual lease amount of $9,750,000 plus annual fixed escalators commencing on July 1 of each succeeding year.

Concurrent with this acquisition, PropCo also completed a $12,910,000 purchase and leaseback of three assisted living facilities located in Iowa, Nebraska and Indiana totaling 107 units from affiliates of Bickford. The acquisition was accounted for as an asset purchase. PropCo's previous master lease with Bickford was amended to include these three properties and the annual lease amount was increased from $7,750,000 to $9,086,000, plus annual fixed escalators beginning January 1 of each succeeding year. All other significant terms of the existing master lease remain unchanged.

As described above, the current annual contractual rent from OpCo to PropCo is $18,836,000, plus fixed annual escalators. During the quarter ended December 31, 2013, PropCo completed major construction and received certificates of occupancy on two assisted living facilities which were under development. Under the terms of the current development lease agreement, NHI continues to receive rent of 9% on the total amount of development costs, including land, which totaled $17,796,000 at December 31, 2013.

Of our total revenue from continuing operations, $14,586,000 (12%), $5,164,000 (6%) and $4,235,000 (5%) were recorded as rental income from Bickford for the years ended December 31, 2013, 2012, and 2011, respectively.

NHI has an exclusive right to Bickford's future acquisitions, development projects and refinancing transactions. At December 31, 2013, PropCo had purchased land and begun construction on one assisted living/memory care facility having a maximum cost of $9,000,000. Our costs incurred to date, including land, were $2,712,000.

For the 14 Care properties acquired in a business combination and discussed above, the unaudited pro forma revenue, net income and net income available to common stockholders of the combined entity is provided below had the acquisition date been January 1, 2012 (in thousands):

	2013		2012
Revenue	$	122,923	$	103,670
Net income	$	103,943	$	91,515
Net income available to common stockholders	$	103,869	$	91,397
Basic earnings per common share	$	3.66	$	3.29
Diluted earnings per common share	$	3.66	$	3.28

Supplemental pro forma information above includes revenues from the newly executed lease with OpCo, recognized on a straight-line basis, depreciation, and appropriate interest costs.

Our revenue from continuing operations and our net income include $5,258,000 and $363,000, respectively, from the 14 Care properties for the year ended December 31, 2013.

NHC

Of our total revenue from continuing operations, $34,756,000 (29%), $33,056,000 (35%) and $32,619,000 (39%) in 2013, 2012 and 2011, respectively, were derived from National HealthCare Corporation (“NHC”), a publicly-held company and the

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lessee of our legacy properties. At December 31, 2013, we leased 42 health care facilities to NHC consisting of 3 independent living facilities and 39 skilled nursing facilities (4 of which are subleased to other parties for whom the lease payments are guaranteed to us by NHC). The master lease agreement with NHC originally dated October 17, 1991, has since been amended to extend the lease expiration 5 years to December 31, 2026. There are two additional 5-year renewal options, each at fair rental value of such leased property as negotiated between the parties and determined without including the value attributable to any improvements to the leased property voluntarily made by NHC at its expense. Under the terms of the lease, rent escalates by 4% of the increase, if any, in each facility's revenue over a 2007 base year. We refer to this additional rent component as “percentage rent.”

The following table summarizes the percentage rent received and recognized from NHC (in thousands):

	Year Ended December 31,
	2013		2012		2011
Current year	$	2,275	$	1,530	$	1,530
Prior year final certification1	746		997		560
Total percentage rent	$	3,021	$	2,527	$	2,090

¹ For purposes of the percentage rent calculation described in the Master Lease Agreement, NHC’s annual revenue by facility for a given year is certified to NHI by March 31st of the following year.

In December 2012 NHI entered into an agreement with NHC to sell six skilled nursing facilities for $21,000,000 in cash. The properties had a carrying value of $1,611,000. The sale was completed on August 31, 2013, and resulted in a gain for financial statement purposes of $19,370,000 after transaction costs of $19,000. We plan to defer recognition of the tax gain on the sale of these facilities by utilizing the like-kind exchange rules under Section 1031 of the Internal Revenue Code. The results of operation of the facilities sold were classified as discontinued operations for all periods presented in our Consolidated Statements of Income. Upon the sale of these facilities and prior to the acquisition described below, NHI's annual base rent of $33,700,000 was reduced to $30,750,000.

On August 30, 2013, NHI acquired seven skilled nursing facilities (and one vacant assisted living facility) in Massachusetts and New Hampshire from former not-for-profit borrower ElderTrust of Florida, Inc. (“ElderTrust”) for consideration of $37,417,000 consisting of $23,676,000 in cash, inclusive of closing costs, and the cancellation of notes receivable from ElderTrust with a principal balance of $13,741,000. Beginning September 1, 2013, the facilities were placed under a new triple net lease to the current manager, NHC, for a period of 15 years commencing with a lease amount of $350,000 for the remainder of 2013. In 2014, the lease provides for a base annual rental of $3,450,000. Under the terms of the lease, rent escalates 4% of the increase in each facility's revenue over the 2014 base year. Because ElderTrust was the owner and operator of the facilities, we accounted for the transaction as an asset purchase. During the last three years of the lease, NHC will have the option to purchase the facilities for $49,000,000.

Fundamental

In April 2013, we completed the purchase of two skilled nursing facilities located in Canton and Corinth, Texas for a purchase price of $26,150,000 in cash, plus consideration related to the Corinth facility of $1,600,000 conditional upon the achievement of certain operating metrics, which continued to be probable as of December 31, 2013. The facilities, which total 254 beds, have been leased to affiliates of Fundamental Long Term Care Holdings, LLC (“Fundamental”) for an initial term of 10 years at a lease rate of 9% plus annual fixed escalators. The lease includes three5-year renewal options at the terms which exist upon renewal. Because the Corinth facility was owner-operated, the acquisition of the Corinth facility was accounted for as an asset purchase.

Because Fundamental was the current lessee, we accounted for acquisition of the 100% interest in the real estate operation of the Canton facility using the acquisition method as prescribed by FASB Topic 805, Business Combinations ("ASC Topic 805"). As part of this transaction, we recognized all identifiable tangible assets at fair value at the date of acquisition (there were no identifiable intangible assets or liabilities assumed) and attributed $420,000 of the purchase price to the fair value of the land, $11,659,000 to the fair value of building and improvements, $671,000 to the fair value of equipment and expensed $147,000 in transaction costs which were paid at closing.

In December 2013, we sold three older skilled nursing facilities to affiliates of our current tenant, Fundamental, for $18,500,000. The properties had a carrying value of $17,068,000. We plan to defer recognition of the tax gain on the sale of these facilities by utilizing the like-kind exchange rules under Section 1031 of the internal Revenue Code. Our lease revenue from these facilities was $3,316,000, $3,231,000, and $3,067,000 for the years endedDecember 31, 2013, 2012, and 2011, respectively.

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Chancellor

In October 2013, we completed a $9,000,000 acquisition of a 63-unit senior housing community in Baltimore, Maryland, and leased the facility to Chancellor Health Care, LLC for an initial term of seven years, plus renewal options. The lease rate in the first year is 8% plus a fixed annual escalator. Because the facility was owner-occupied, we accounted for the acquisition as an asset purchase. We also committed to provide up to $500,000 for renovations and improvements which will be added to the basis on which the lease amount is calculated.

Additionally, we have committed $7,500,000 to build a 46-unit free-standing assisted living and memory care community, expanding our Linda Valley senior living campus in Loma Linda, California. The initial lease term is for 15 years at an annual rate of 9% plus a fixed annual escalator. NHI purchased the Linda Valley campus in 2012 and leased it to Chancellor Health Care, who has been operating the campus since 1993.

Emeritus

In July 2013 we completed a $15,300,000 acquisition of The Inn at Halcyon Village in Marysville, Ohio ("Halcyon"). The 76-unit assisted living and memory care community is leased to Emeritus Senior Living for an initial term of 15 years with an option to extend. Rent in the first year of the lease will be $1,140,000. Annual fixed escalators begin in the third lease year. Because Halcyon was owner-operated, we accounted for the acquisition as an asset purchase.

Discovery

In September 2013 we completed a $12,000,000 acquisition of Regency Pointe Retirement Community in Rainbow City, Alabama. The 120-unit senior housing community is leased to Discovery Senior Living ("Discovery") for an initial term of 15 years, with three5-year renewal options. Rent in the first year of the lease is $942,000 plus annual fixed escalators thereafter. As a lease inducement, upon achieving certain operating metrics, Discovery will be eligible over years two, three and four of the lease for contingent payments totaling up to $2,500,000 which, if paid, will be amortized as an adjustment to rental income over the remaining lease term. As of December 31, 2013, the likelihood that we would incur the contingent payments was not considered probable. Accordingly, no provision for these payments is reflected in the consolidated financial statements. Because Regency Pointe was owner-operated, we accounted for the acquisition as an asset purchase.

Disposition

In October 2013, our current tenant, Weatherly Associates, LLC, exercised their option to purchase a senior housing facility in Pennsylvania for $5,315,000. The property had a carrying value of $3,591,000. We plan to defer recognition of the tax gain on the sale of this facility by utilizing the like-kind exchange rules under Section 1031 of the Internal Revenue Code. Our lease revenue from the facility was $353,000, $403,000, and $403,000 for the years endedDecember 31, 2013, 2012, and 2011, respectively.

Future Minimum Lease Payments

At December 31, 2013, the future minimum lease payments (excluding percentage rent) to be received by us under our operating leases with our tenants are as follows (in thousands):

2014	$	137,717
2015	135,704
2016	135,453
2017	134,419
2018	122,562
Thereafter	1,164,051
	$	1,829,906

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NOTE 3. EQUITY-METHOD INVESTMENT AND OTHER ASSETS

Our equity-method investment in OpCo and other assets consist of the following (in thousands):

	As of December 31,
	2013		2012
Equity-method investment in OpCo	$	9,494	$	8,353
Loan costs and prepaid expenses, net	7,596		1,838
Accounts receivable and other assets	2,272		1,815
Replacement reserve and tax escrows - Fannie Mae	706		—
Lease escrow deposits	22,775		—
Escrow deposit for tax deferred exchange	23,813		—
Escrow deposit for real estate purchase	—		166
	$	66,656	$	12,172

Upon the acquisition of our equity method investment in OpCo, in 2012, our purchase price was allocated to the assets acquired based upon their estimated relative fair values. Accounting guidance for equity method investments requires that we account for the difference between the cost basis of our investment in OpCo and our pro rata share of the amount of underlying equity in the net assets of OpCo as though OpCo were a consolidated subsidiary. Accordingly, the excess of the original purchase price over the fair value of identified tangible assets at acquisition of $8,986,000 is treated as implied goodwill and is subject to periodic review for impairment in conjunction with our equity method investment. When we acquired the Bickford properties in June 2013, an assignment was entered into whereby the operations of the 17 facilities were conveyed by an affiliate of Bickford to OpCo. The transaction mandated the effective cut-off of operating revenues and expenses and the settlement of operating assets and liabilities as of the acquisition date. Specified remaining net tangible assets were assigned to OpCo at the transferor's carryover basis resulting in an adjustment, through NHI's capital in excess of par value to our equity method investment in OpCo, of $817,000. We monitor and periodically review our equity method investment in OpCo for impairment to determine whether a decline, if any, in the value of the investment is other-than temporary. We noted no decline in value as of December 31, 2013.

OpCo is intended to be self-financing, and aside from initial investments therein, no direct support has been provided by NHI to OpCo since inception on September 30, 2012. While PropCo's rental revenues associated with the related properties are sourced from OpCo, a decision to furnish additional direct support would be at our discretion and not obligatory. As a result, we believe our maximum exposure to loss at December 31, 2013, due to our investment in OpCo, would be limited to our equity interest. We have concluded that OpCo meets the accounting criteria to be considered a VIE. However, because we do not control the entity, nor do we have any role in the day-to-day management, we are not the primary beneficiary of the entity, and we account for our investment using the equity method. There have been no distributions declared during the years endedDecember 31, 2013 and 2012.

At December 31, 2013, we had real estate sales proceeds of $23,813,000 held with a qualified intermediary for the purpose of using the funds toward a future purchase of real estate and completing a tax-deferred exchange within the rules of Section 1031 of the Internal Revenue Code.

At December 31, 2013, we held lease escrow deposits of $22,775,000 in regard to our lease with Holiday. The Holiday deposits include $21,275,000 as a lease security deposit which remains for the term of the 17-year lease commencing in December 2013 and is payable to Holiday at the end of the lease term. The remaining $1,500,000 is reserved for specified capital improvements.

NOTE 4. MORTGAGE AND OTHER NOTES RECEIVABLE

At December 31, 2013, we had investments in mortgage notes receivable with a carrying value of $34,926,000 secured by real estate and UCC liens on the personal property of 11 health care properties and other notes receivable with a carrying value of $27,082,000 guaranteed by significant parties to the notes or by cross-collateralization of properties with the same owner. At December 31, 2012, we had investments in mortgage notes receivable with a carrying value of $68,214,000 and other notes receivable with a carrying value of $16,036,000. No allowance for doubtful accounts was considered necessary at December 31, 2013 or December 31, 2012.

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In September 2012 we evaluated the recoverability of the mortgage notes receivable due from SeniorTrust of Florida, Inc., a Tennessee non-profit organization. Using a discounted cash flow analysis, we evaluated the declining net operating income of SeniorTrust over the previous twelve months and recognized an impairment to the carrying value of the SeniorTrust notes in the total amount of $2,300,000 reducing the SeniorTrust notes receivable to a carrying value of $19,037,000 at December 31, 2012.

Due to non-receipt of contractual payments, in March 2013 we re-evaluated the recoverability of the SeniorTrust notes and recognized an impairment to the carrying value in the total amount of $4,037,000, thereby reducing the carrying value of the SeniorTrust notes receivable to $15,000,000.

In June 2013 we received full payment of $15,000,000 on the SeniorTrust notes.

In August 2013 the mortgage notes receivable due from ElderTrust of Florida, Inc. with an aggregate principal balance of $13,741,000 were applied to the purchase price of seven skilled nursing facilities in Massachusetts and New Hampshire. See Note 8 for more information on our transactions with SeniorTrust and ElderTrust.

In July 2013 we extended a $9,200,000 loan to Bickford to fund a portion of their acquisition of six senior housing communities consisting of 342 units. The loan is guaranteed by principals of Bickford and has a two year maturity plus a one year extension option with 12% annual interest. As a result of this transaction, PropCo acquired a $97,000,000 purchase option on the properties which is exercisable over the term of the loan.

In September 2013 we received $3,293,000 as full payment upon the final maturity of a mortgage note secured by a skilled nursing facility located in Georgia. Of the amount received, we recorded $2,061,000 as a recovery of a previous writedown.

In October 2013 we provided a $2,500,000 second mortgage loan to an affiliate of Discovery for the construction of a 120-unit senior housing community in Naples, Florida. Construction began in the fourth quarter of 2013. The loan is guaranteed by principals of Discovery and has a five-year maturity with monthly payments of interest at a 12% annual rate.

In December 2012, we received from our current borrower a payment of $13,830,000 in full settlement of our note receivable secured by three skilled nursing facilities in Georgia formerly owned by Allgood Healthcare, Inc. The payment consisted of note principal of $4,650,000, accrued interest of $80,000, a recovery of a previous writedown of $4,495,000, and a note gain of $4,605,000. The recovery and gain are included in separate components of our income from continuing operations in our Consolidated Statements of Income. These facilities had previously been involved in bankruptcy proceedings with the former owner.

NOTE 5. INVESTMENT IN PREFERRED STOCK, AT COST

We received $3,273,000 in preferred dividends from LTC (a publicly-traded REIT) for each of the years ended December 31, 2013, 2012 and 2011, on our investment in 2,000,000 shares of their cumulative preferred stock carried at its original cost of $38,132,000. The preferred stock, which was purchased in September 1998, is not listed on a stock exchange, is considered a non-marketable security and is recorded at cost in our Consolidated Balance Sheets. The non-voting preferred stock is convertible into 2,000,000 shares of LTC common stock whose closing price at December 31, 2013 was $35.39 per share. The preferred stock has an annual cumulative coupon rate of 8.5% payable quarterly and a liquidation preference of $19.25 per share. While not the fair value of our preferred stock investment, we provide the above information as pertinent to the reader's estimation of the fair value of our investment. In accordance with ASC Topic 825 Financial Instruments, paragraph 10-50 Disclosure-Overall, we have determined that due to excessive costs, it is not practicable to estimate the fair value of our cost basis investment in preferred stock because of inherent subjectivities in refining the estimate to a degree that is likely to materially augment the information provided above. Further, we have identified no events that may have had an adverse effect on its fair value which would have required revisiting the instrument's carrying value.

NOTE 6. INVESTMENTS IN MARKETABLE SECURITIES

Our investments in marketable securities include available-for-sale securities which are reported at fair value. Unrealized gains and losses on available-for-sale securities are presented as a component of accumulated other comprehensive income. Realized gains and losses from securities sales are determined based upon specific identification of the securities.

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Marketable securities consist of the following (in thousands):

	December 31, 2013				December 31, 2012
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Common stock of other healthcare REITs	$	4,088	$	12,650	$	4,088	$	12,884

Gross unrealized gains related to available-for-sale securities were $8,562,000 at December 31, 2013 and $8,796,000 at December 31, 2012.

During 2011, we sold 381,000 common shares of LTC and sold 96,330 shares of convertible preferred stock of NHC and recognized gains totaling $8,809,000.

During 2011, we recognized a gain of $1,090,000 on the sale of 50,000 common shares of Nationwide Health Properties, Inc. (“NHP”) in exchange for 39,330 common shares of Ventas, Inc. (“Ventas”) upon the acquisition of NHP by Ventas.

During 2013, 2012, and 2011 we recognized $667,000, $628,000, and $822,000, respectively, of dividend income from our marketable securities and have included these amounts in investment income and other in the Consolidated Statements of Income.

NOTE 7. DEBT

Debt consists of the following (in thousands):

	December 31, 2013		December 31, 2012
Revolving credit facility - unsecured	$	167,000	$	64,000
Bank term loans - unsecured	370,000		120,000
Bank term loan - secured	—		19,250
Fannie Mae term loans - secured (including a premium of $1,756)	80,080		—
	$	617,080	$	203,250

On June 28, 2013, we entered into a $370,000,000 unsecured credit facility which includes a 5-year revolving credit facility (inclusive of a 1-year extension option) of $250,000,000 with interest initially at 140 basis points over LIBOR and $120,000,000 of 7-year term loans with interest initially at 150 basis points over LIBOR. The facility also includes an uncommitted incremental facility feature allowing for an additional $130,000,000 of borrowings. The credit facility was provided by Wells Fargo, Bank of Montreal, KeyBank, and Bank of America, with Pinnacle National Bank as a participating bank. At December 31, 2013, we had $83,000,000 available to draw on the revolving portion of the credit facility. Quoted 30-day LIBOR was 17 basis points on December 31, 2013. The unused commitment fee is 35 basis points per annum. The new facility replaces a smaller credit facility that originated on May 1, 2012 and provided for $320,000,000 of total borrowing capacity. Interest rates are referenced to our Consolidated Leverage Ratio, as defined, and were adjusted in December 2013 to 165 basis points over LIBOR for the revolving credit facility and 175 basis points over LIBOR for the term loans to give effect to debt undertaken in conjunction with our Holiday acquisition. The revolving credit facility has a maximum applicable rate of 190 basis points over LIBOR and the term loans have a maximum applicable rate of 200 basis points over LIBOR.

To provide a portion of the funding for the Holiday acquisition described in Note 2, we entered into a $250,000,000 term loan with a syndicate of banks led by Wells Fargo. Interest is 175 basis points over LIBOR and the loan has the same maturity as our revolving credit facility.

As part of the Care acquisition described in Note 2, we assumed Fannie Mae mortgage loans, with principal balances of $71,090,000 and $7,234,000 on December 31, 2013, which have interest at rates of 6.85% and 7.17%, respectively, and mature on July 1, 2015 (prepayable without penalty after December 31, 2014).

The unsecured credit facility mentioned above requires that we maintain certain financial ratios within limits set by our creditors. To date, these ratios, which are calculated quarterly, have been well within the limits required by the credit facility agreements.

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The following table summarizes interest expense (in thousands):

	Year Ended December 31,
	2013		2012		2011
Interest expense	$	8,523	$	3,172	$	2,070
Amortization of loan costs	706		320		581
Change in fair value of interest rate swap agreement	—		—		1,197
Total interest expense	$	9,229	$	3,492	$	3,848

Amortization of loan costs for 2013 includes $416,000 which was written off as a result of modifications we made to the credit facility.

In August 2013, we used our revolving credit facility to pay off a $19,250,000 secured bank loan which provided for interest at 300 basis points over LIBOR.

Interest Rate Swap Agreements

We have entered into interest rate swap agreements to fix the interest rates on the $80,000,000 and $40,000,0007-year term loans. The critical terms of this swap agreement are essentially identical to those of the 7-year term loans and thus, in accordance with ASC Topic 815 Derivative Instruments and Hedging Activities, the swap is considered a perfectly effective "cash flow hedge." Accordingly, changes in the fair value of this cash flow hedge are included in accumulated other comprehensive income rather than net income in our Consolidated Statements of Income. If the fair value of the hedge is an asset, we include it in our Consolidated Balance Sheets in other assets, and, if a liability, as a component of accrued expenses.

Below is a summary of our swap agreements at December 31, 2013 (dollars in thousands):

Date Entered	Maturity Date	Fixed Rate	Rate Index	Notional Amount		Fair Value
May 2012	April 2019	3.29%	1-month LIBOR	$	40,000	$	544
June 2013	June 2020	3.86%	1-month LIBOR	$	80,000	$	431

See Note 14 for fair value disclosures about our Fannie Mae mortgage loan and interest rate swap agreements.

On November 1, 2011, we terminated a previous interest rate swap agreement. Interest in 2011 reflected the change in fair value of the interest rate swap agreement.

NOTE 8. COMMITMENTS AND CONTINGENCIES

Bickford

At December 31, 2013, our subsidiary PropCo had purchased land and begun construction on one assisted living facility having a maximum cost of $9,000,000. Our costs incurred to date, including land, were $2,712,000. NHI entered into a commitment of $2,785,000 on a letter of credit for the benefit of our joint venture partner, an affiliate of Bickford, on February 6, 2014.

Chancellor

In October 2013, we entered into a $7,500,000 commitment to build a 46-unit free-standing assisted living and memory care community, expanding our Linda Valley senior living campus in Loma Linda, California. We expect to begin construction during the first quarter of 2014. The initial lease term is for 15 years at an annual rate of 9% plus a fixed annual escalator. NHI purchased the Linda Valley campus in 2012 and leased it to Chancellor Health Care, who has been operating the campus since 1993. We also committed to provide up to $500,000 for renovations and improvements related to our recent acquisition of a 63-unit senior housing community in Baltimore, Maryland which we have leased to Chancellor Health Care. We expect to begin renovations during the first quarter of 2014.

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Fundamental

In April 2013, we completed the purchase of two skilled nursing facilities located in Canton and Corinth, Texas for a purchase price of $26,150,000 in cash, plus consideration related to the Corinth facility of $1,600,000 conditional upon the achievement of certain operating metrics, which continued to be probable as of December 31, 2013.

Kentucky River

In March 2012, we entered into a long-term lease extension and construction commitment to Jackson Hospital Corporation, an affiliate of Community Health Systems, to provide up to $8,000,000 for extensive renovations and additions to our Kentucky River Medical Center, a general acute care hospital in Jackson, Kentucky. This investment will be added to the basis on which the lease amount is calculated. The construction project commenced during the first quarter of 2013 and is expected to continue over two years. Total construction costs incurred as of December 31, 2013 were $5,838,000. The 10-year lease extension began July 1, 2012, with an additional 5-year renewal option.

Legend Healthcare

In October 2011, we completed a purchase/leaseback of four skilled nursing facilities in Texas with affiliates of Legend Healthcare, LLC (“Legend”) for $55,278,000, including consideration of $5,478,000 which was contingent on the achievement of certain operating metrics. In December 2012, we funded $2,222,000 of this contingent consideration. We had previously anticipated the remaining $3,256,000, which was recorded as a purchase liability, to be funded. During the quarter ended December 31, 2013, we determined that Legend had not achieved the required operating metrics and therefore would not qualify for this remaining consideration. As a result, we have recorded a gain of $3,256,000 on the settlement of this purchase liability and have included this amount in investment and other gains in our Consolidated Statements of Income.

Santé

We have a $2,000,000 supplemental construction commitment to our borrower, Santé Partners, LLC (“Santé”). This additional loan amount becomes available to the borrower when the 70-bed transitional rehabilitation hospital, completed in March 2011, achieves certain operating metrics. NHI also has the option to purchase and lease back the hospital when it achieves a predetermined level of stabilized net operating income.

We had previously committed to fund a $3,500,000 expansion and renovation program in connection with our August 2012 acquisition of the senior living campus in Silverdale, Washington leased to Santé. As of December 31, 2013, we had fully funded this commitment, which was added to the basis on which the lease amount is calculated. Also in connection with our Silverdale, Washington senior living campus, we have a contingent commitment to fund two lease inducement payments of $1,000,000 each. Santé would earn the payments upon obtaining, and maintaining, a specified lease coverage ratio. If earned, the first payment would be due after the second lease year and the second payment would be due after the third lease year. At acquisition, the likelihood that we would incur the contingent payments was not considered probable. Accordingly, no provision for these payments is reflected in the consolidated financial statements.

Helix Healthcare

In March 2010, we completed a purchase/leaseback transaction with Helix Healthcare (“Helix”) for $12,500,000. The purchase price includes a conditional payment of $1,000,000, which is recorded as a purchase liability.

Discovery

As a lease inducement, we have a contingent commitment to fund a series of payments up to $2,500,000 in connection with our September 2013 lease to Discovery of a senior living campus in Rainbow City, Alabama. Discovery would earn the contingent payments upon obtaining, and maintaining, a specified lease coverage ratio. As earned, the payments would be due in installments of $750,000 in each of years two and three of the lease with the residual due in year four. As of December 31, 2013, the likelihood that we would incur the contingent payments was not considered probable. Accordingly, no provision for these payments is reflected in the consolidated financial statements.

Litigation

Our Health Care Facilities are subject to claims and suits in the ordinary course of business. Our lessees and borrowers have indemnified, and are obligated to continue to indemnify us, against all liabilities arising from the operation of the Health Care

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Facilities, and are further obligated to indemnify us against environmental or title problems affecting the real estate underlying such facilities. While there may be lawsuits pending against certain of the owners and/or lessees of the Health Care Facilities, management believes that the ultimate resolution of all such pending proceedings will have no material adverse effect on our financial condition, results of operations or cash flows.

As previously disclosed, in November 2008, the Company was served with a Civil Investigative Demand by the Office of the Tennessee Attorney General (“OTAG”), which indicated that the OTAG was investigating transactions between the Company and three Tennessee not-for-profit corporations. NHI has provided the OTAG with requested information and documents and has been working with the OTAG with respect to this investigation. The investigation with respect to one of the not-for-profit corporations was settled in 2009. A receiver had been appointed for the two remaining not-for-profit corporations, SeniorTrust of Florida, Inc. ("SeniorTrust") and ElderTrust of Florida, Inc ("ElderTrust"). As previously disclosed, the receiver of SeniorTrust and ElderTrust had caused those entities to bring lawsuits against NHI and NHC.

In April 2013, NHI, NHC and the receiver for ElderTrust and SeniorTrust entered into a settlement agreement resolving all remaining issues. The settlement agreement also resolved the OTAG investigation and was approved by the Court on May 3, 2013. Thus, the investigation has now been resolved with respect to all three of the not-for-profit corporations. The settlement agreement provided that SeniorTrust pay NHI $15,000,000 in cash in full settlement of the notes receivable between NHI and SeniorTrust, which payment was made on June 27, 2013.

The settlement agreement also provided that NHI purchase ElderTrust's seven skilled nursing facilities in Massachusetts and New Hampshire. As consideration for the purchase from ElderTrust, NHI canceled a note receivable from ElderTrust with a principal balance of $13,741,000 and paid cash in the amount of $23,676,000, inclusive of closing costs. As discussed in further detail at Note 2, the purchase was completed on August 30, 2013. NHI has leased these facilities to NHC, the current operator.

NOTE 9. INVESTMENT AND OTHER GAINS

The following table summarizes our investment and other gains (in thousands):

	Year Ended December 31,
	2013		2012		2011
Gain on payoff of mortgage note receivable	$	—	$	4,605	$	—
Gains on sales of marketable securities	—		30		9,899
Gain on purchase liability settlement	3,256		—		—
Other gains	50		242		362
	$	3,306	$	4,877	$	10,261

NOTE 10. SHARE-BASED COMPENSATION

We recognize share-based compensation for all stock options granted over the requisite service period using the fair value of these grants as estimated at the date of grant using the Black-Scholes pricing model, and all restricted stock granted over the requisite service period using the market value of our publicly-traded common stock on the date of grant.

Share-Based Compensation Plans

The Compensation Committee of the Board of Directors ("the Committee") has the authority to select the participants to be granted options; to designate whether the option granted is an incentive stock option ("ISO"), a non-qualified option, or a stock appreciation right; to establish the number of shares of common stock that may be issued upon exercise of the option; to establish the vesting provision for any award; and to establish the term any award may be outstanding. The exercise price of any ISO’s granted will not be less than 100% of the fair market value of the shares of common stock on the date granted and the term of an ISO may not be more than ten years. The exercise price of any non-qualified options granted will not be less than 100% of the fair market value of the shares of common stock on the date granted unless so determined by the Committee.

In May 2012, our stockholders approved the 2012 Stock Incentive Plan ("the 2012 Plan") pursuant to which 1,500,000 shares of our common stock were made available to grant as share-based payments to employees, officers, directors or consultants. As of December 31, 2013, there were 1,140,000 shares available for future grants under the 2012 Plan. The individual restricted stock and option grant awards vest over periods up to five years. The term of the options under the 2012 Plan is up to five years from the date of grant.

In May 2005, our stockholders approved the NHI 2005 Stock Option Plan ("the 2005 Plan") pursuant to which 1,500,000 shares of our common stock were made available to grant as share-based payments to employees, officers, directors or consultants. As of December 31, 2013, there were 20,635 shares available for future grants under the 2005 Plan. The individual restricted stock

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and option grant awards vest over periods up to ten years. The term of the options outstanding under the 2005 Plan is up to ten years from the date of grant.

The NHI 1997 Stock Option Plan (“the 1997 Plan”) provides for the granting of options to key employees and directors of NHI to purchase shares of common stock at a price no less than the market value of the stock on the date the option is granted. As of December 31, 2013, no shares were available for future grants under this plan. The term of the options outstanding under the 1997 Plan is five years from the date of the grant.

Compensation expense is recognized only for the awards that ultimately vest. Accordingly, forfeitures that were not expected may result in the reversal of previously recorded compensation expense. The compensation expense reported for the year endedDecember 31, 2013 was $2,339,000, all of which related to outstanding stock options, as compared to $2,168,000 for the year endedDecember 31, 2012, consisting of $2,167,000 for stock options and $1,000 for restricted stock and is included in general and administrative expense in the Consolidated Statements of Income.

Determining Fair Value of Option Awards

The fair value of each option award was estimated on the grant date using the Black-Scholes option valuation model with the weighted average assumptions indicated in the following table. Each grant is valued as a single award with an expected term based upon expected employee and termination behavior. Compensation cost is recognized on the graded vesting method over the requisite service period for each separately vesting tranche of the award as though the award were, in substance, multiple awards. The expected volatility is derived using daily historical data for periods preceding the date of grant. The risk-free interest rate is the approximate yield on the United States Treasury Strips having a life equal to the expected option life on the date of grant. The expected life is an estimate of the number of years an option will be held before it is exercised.

Stock Options

The weighted average fair value per share of options granted was $6.41, $6.36 and $9.91 for 2013, 2012 and 2011, respectively. The fair value of each grant is estimated on the date of grant using the Black-Scholes option-pricing model with the following weighted average assumptions:

	2013	2012	2011
Dividend yield	4.5%	6.0%	5.9%
Expected volatility	23.8%	32.0%	4.6%
Expected lives	2.8 years	3.9 years	3.9 years
Risk-free interest rate	0.35%	0.32%	1.11%

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Stock Option Activity

The following tables summarize our outstanding stock options:

				Weighted Average
	Number		Weighted Average	Remaining	Aggregate
	of Shares		Exercise Price	Contractual Life (Years)	Intrinsic Value
Outstanding December 31, 2010	384,507		$33.24
Options granted under 2005 Plan	340,000		$46.11
Options exercised under 1997 Plan	(15,000	)	$23.79
Options exercised under 2005 Plan	(183,417	)	$32.69
Options forfeited under 2005 Plan	(16,668	)	$41.52
Outstanding December 31, 2011	509,422		$42.03
Options granted under 2005 Plan	340,000		$47.52
Options exercised under 1997 Plan	(19,266	)	$33.26
Options exercised under 2005 Plan	(618,481	)	$43.63
Outstanding December 31, 2012	211,675		$46.60
Options granted under 2005 Plan	360,000		$64.49
Options exercised under 2005 Plan	(55,001	)	$45.31
Outstanding December 31, 2013	516,674		$59.20	3.77	$	1,417,000
Exercisable December 31, 2013	323,330		$59.19	3.71	$	901,848

				Remaining
Grant	Number	Exercise		Contractual
Date	of Shares	Price		Life in Years
2/22/2011	15,000	$	45.58	2.15
2/25/2011	33,336	$	46.22	2.15
2/21/2012	108,338	$	47.52	3.15
2/25/2013	360,000	$	64.49	4.16
Outstanding December 31, 2013	516,674

The weighted average remaining contractual life of all options outstanding at December 31, 2013 is 3.8 years. Including outstanding stock options, our stockholders have authorized an additional 1,677,309 shares of common stock that may be issued under the share-based payments plans.

The following table summarizes our outstanding non-vested stock options:

	Number of Shares		Weighted Average Grant Date Fair Value
Non-vested December 31, 2012	176,675		$8.09
Options granted under 2012 Plan	360,000		$6.41
Options vested under 2005 Plan	(343,331	)	$6.97
Non-vested December 31, 2013	193,344		$6.95

At December 31, 2013, we had $416,000 of unrecognized compensation cost related to unvested stock options, net of expected forfeitures, which is expected to be recognized over the following periods: 2014 - $375,000 and 2015 - $41,000. Stock-based compensation is included in general and administrative expense in the Consolidated Statements of Income.

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The intrinsic value of the total options exercised for the years ended December 31, 2013, 2012 and 2011 was $1,084,000 or $19.71 per share; $5,527,000 or $8.67 per share, and $2,567,000 or $12.94 per share, respectively.

Restricted Stock Activity

The following table summarizes our restricted stock activity:

	Number of Shares		Weighted Average Remaining Vesting Period (Years)	Aggregate Intrinsic Value
Non-vested at December 31, 2010	3,175		0.54	$	143,000
Vested during the period	(1,925	)
Non-vested at December 31, 2011	1,250		0.10	$	55,000
Vested during the period	(1,250	)
Non-vested at December 31, 2012	—
Vested during the period	—
Non-vested at December 31, 2013	—

At December 31, 2013, we had no unrecognized compensation cost related to unvested restricted stock.

NOTE 11. DISCONTINUED OPERATIONS

We have reclassified, for all periods presented, the operations of facilities meeting the accounting criteria for properties being sold or held for sale as discontinued operations.

In December 2013, we sold three older skilled nursing facilities to affiliates of our current tenant, Fundamental, for $18,500,000. The properties had a carrying value of $17,068,000. We plan to defer recognition of the tax gain on the sale of these facilities by utilizing the like-kind exchange rules under Section 1031 of the internal Revenue Code. Our lease revenue from these facilities was $3,316,000, $3,231,000, and $3,067,000 for the years endedDecember 31, 2013, 2012, and 2011, respectively. Pursuant to the purchase option, rents associated with the two remaining properties will be fixed at $250,000 per month, without escalation, through the first renewal term in February 2016.

In January 2011, we completed the sale of a skilled nursing facility in Texas to the current tenant, Fundamental, for $4,500,000 that had a carrying value of $4,039,000. Our lease revenue from the facilities was $43,000 for the year ended December 31, 2011.

In October 2013, our current tenant, Weatherly Associates, LLC, exercised their option to purchase a senior housing facility in Pennsylvania for $5,315,000. The sale was completed in December 2013. The property had a carrying value of $3,591,000 resulting in a gain for financial statement purposes. We plan to defer recognition of the tax gain on the sale of this facility by utilizing the like-kind exchange rules under Section 1031 of the Internal Revenue Code. Our lease revenue from the facility was $353,000, $403,000, and $403,000 for the years endedDecember 31, 2013, 2012, and 2011, respectively.

In August 2013 we sold six older skilled nursing facilities to NHC for $21,000,000 and recorded a gain for financial statement purposes of $19,370,000 after selling costs of $19,000. Our lease revenue from the facilities was $2,294,000, $3,368,000 and $3,377,000 for the years ended December 31, 2013, 2012 and 2011, respectively.

In December 2012, our tenant, Sunrise Senior Living, exercised its option to purchase our assisted living facility in Edison, New Jersey. Our lease revenue from the facility was $1,302,000 and $1,372,000 for the years ended December 31, 2012 and 2011, respectively.

In August 2011, we sold an assisted living facility located in Daytona Beach, Florida to the current tenant. The net gain on the sale of these facilities was $1,048,000 for financial statement purposes. Our lease revenue from the facilities was $202,000 and for the year ended December 31, 2011.

In February 2011, we sold two medical office buildings to our current tenant. The net gain on the sale of these facilities was $1,838,000 for financial statement purposes. Our lease revenue from the facilities was $41,000 for the year ended December 31, 2011.

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Income from discontinued operations is summarized below (in thousands):

	Year Ended December 31,
	2013		2012		2011
Revenues:
Rental income	$	5,962	$	8,304	$	8,505
Other income	21		3		4
Expenses:
Depreciation	557		2,209		542
Operating income	5,426		6,098		7,967
Gain on sale of real estate	22,258		11,966		3,348
Total discontinued operations	$	27,684	$	18,064	$	11,315
Weighted average common shares outstanding:
Basic	28,362,398		27,811,813		27,719,096
Diluted	28,397,702		27,838,720		27,792,592
Discontinued operations income per share:
Basic	$	.97	$	.65	$	.41
Diluted	$	.97	$	.65	$	.41

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NOTE 12. EARNINGS AND DIVIDENDS PER SHARE

The weighted average number of common shares outstanding during the reporting period is used to calculate basic earnings per common share. Diluted earnings per common share assume the exercise of stock options and vesting of restricted shares using the treasury stock method, to the extent dilutive.

The following table summarizes the average number of common shares and the net income used in the calculation of basic and diluted earnings per common share (in thousands, except share and per share amounts):

	Year Ended December 31,
	2013		2012		2011
Income from continuing operations attributable to common stockholders	$	78,499	$	72,667	$	69,817
Discontinued operations	27,684		18,064		11,315
Net income attributable to common stockholders	$	106,183	$	90,731	$	81,132
BASIC:
Weighted average common shares outstanding	28,362,398		27,811,813		27,719,096
Income from continuing operations per common share	$	2.77	$	2.61	$	2.52
Discontinued operations per common share	.97		.65		.41
Net income per common share	$	3.74	$	3.26	$	2.93
DILUTED:
Weighted average common shares outstanding	28,362,398		27,811,813		27,719,096
Stock options and restricted shares	35,304		26,907		73,496
Average dilutive common shares outstanding	28,397,702		27,838,720		27,792,592
Income from continuing operations per common share	$	2.77	$	2.61	$	2.51
Discontinued operations per common share	.97		.65		.41
Net income per common share	$	3.74	$	3.26	$	2.92
Incremental shares excluded since anti-dilutive:
Stock options with an exercise price in excess of the average market price for our common shares	23,883		—		16,758
Regular dividends declared per common share	$	2.90	$	2.64	$	2.495
Special dividends declared per common share1	$	—	$	.22	$	.22
1Special dividends are paid in January following the year in which they are declared

NOTE 13. INCOME TAXES

Beginning with our inception in 1991, we have elected to be taxed as a REIT under the Internal Revenue Code (the "Code"). We have elected that our subsidiary established on September 30, 2012 in connection with the Bickford arrangement (which holds our ownership interest in an operating company) be taxed as a taxable REIT subsidiary ("TRS") under provisions of the Code. The TRS is subject to federal and state income taxes like those applicable to regular corporations. Aside from such income taxes which may be applicable to the taxable income in the TRS, we will not be subject to federal income tax provided that we continue to qualify as a REIT and make distributions to stockholders equal to or in excess of our taxable income.

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Per share dividend payments to common stockholders for the last three years are characterized for tax purposes as follows:

(Unaudited)	2013		2012		2011
Ordinary income	$	2.85895	$	2.62870	$	2.32042
Capital gain	0.16493		0.01130		0.32494
Return of capital	0.09612		—		0.06964
Dividends paid per common share	$	3.12	$	2.64	$	2.715

Our consolidated provision for state and federal income tax for the years ended 2013, 2012, and 2011 was $267,000, $137,000, and $96,000, respectively. For the years ended 2013, 2012, and 2011 we had no material deferred state or federal income tax.

Current taxes for 2013 of $128,000 relates to our equity interest in the unconsolidated operating company whose interest is owned by our TRS described above, plus $139,000 from a franchise tax levied by the state of Texas that has attributes of an income tax. For 2012, tax expense of $20,000 relates to our equity interest in the unconsolidated operating company and $117,000 relates to the Texas franchise tax. The tax expense for 2011 relates entirely to such tax levied in Texas. Our income taxes described above are combined in franchise, excise and other taxes in our Consolidated Statements of Income.

We made state income tax payments of $129,000, $96,000,and $82,000 for the years ended December 31, 2013, 2012 and 2011, respectively.

NOTE 14. FAIR VALUE OF FINANCIAL INSTRUMENTS

Our financial assets and liabilities measured at fair value (based on the hierarchy of the three levels of inputs described in Note 1) on a recurring basis include marketable securities, derivative financial instruments and contingent consideration arrangements. Marketable securities consist of common stock of other healthcare REITs. Derivative financial instruments include our interest rate swap agreements. Contingent consideration arrangements relate to certain provisions of recent real estate purchase agreements involving both business combinations.

Marketable securities. We utilize quoted prices in active markets to measure debt and equity securities; these items are classified as Level 1 in the hierarchy and include the common and preferred stock of other healthcare REITs.

Derivative financial instruments. Derivative financial instruments are valued in the market using discounted cash flow techniques. These techniques incorporate Level 1 and Level 2 inputs. The market inputs are utilized in the discounted cash flow calculation considering the instrument's term, notional amount, discount rate and credit risk. Significant inputs to the derivative valuation model for interest rate swaps are observable in active markets and are classified as Level 2 in the hierarchy.

Contingent consideration. Contingent consideration arrangements are classified as Level 3 and are valued using unobservable inputs about the nature of the contingent arrangement and the counter-party to the arrangement, as well as our assumptions about the probability of full settlement of the contingency.

Assets and liabilities measured at fair value on a recurring basis are as follows (in thousands):

		Fair Value Measurement
	Balance Sheet Classification	December 31, 2013		December 31, 2012
Level 1
Common stock of other healthcare REITs	Marketable securities	$	12,650	$	12,884
Level 2
Interest rate swap asset	Other assets	$	975	$	—
Interest rate swap liability	Accrued expenses	$	—	$	1,241
Level 3
Contingent consideration	Real estate purchase liabilities	$	—	$	3,256

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The following table presents a reconciliation of Level 3 liabilities measured at fair value on a recurring basis for the years ended December 31, 2013 and 2012(in thousands):

	Fair Value Beginning of Period		Transfers Into Level 3		Realized Gains and (Losses)		Purchases, Issuances and Settlements			Fair Value at End of Period		Total Period Losses Included in Earnings Attributable to the Change in Unrealized Losses Relating to Assets Held at End of Year
2013
Contingent consideration	$	3,256	$	—	$	—	$	(3,256	)	$	—	$	—
2012
Contingent consideration	$	5,478	$	—	$	—	$	(2,222	)	$	3,256	$	—

Carrying values and fair values of financial instruments that are not carried at fair value at December 31, 2013 and December 31, 2012 in the Consolidated Balance Sheets are as follows (in thousands):

	Carrying Amount				Fair Value Measurement
	2013		2012		2013		2012
Level 2
Variable rate debt	$	537,000	$	203,250	$	537,000	$	203,250
Fixed rate debt	$	80,080	$	—	$	79,365	$	—
Level 3
Mortgage and other notes receivable	$	60,639	$	84,250	$	67,201	$	93,835

The fair value of mortgage and other notes receivable is based on credit risk and discount rates that are not observable in the marketplace and therefore represents a Level 3 measurement.

Fixed rate debt. Fixed rate debt is classified as Level 2 and its value is based on quoted prices for similar instruments or calculated utilizing model derived valuations in which significant inputs are observable in active markets.

Carrying amounts of cash and cash equivalents, accounts receivable and accounts payable approximate fair value due to their short-term nature. The fair value of our borrowings under our credit facility are reasonably estimated at their carrying value at December 31, 2013 and December 31, 2012, due to the predominance of floating interest rates, which generally reflect market conditions.

NOTE 15. LIMITS ON COMMON STOCK OWNERSHIP

The Company's charter contains certain provisions which are designed to ensure that the Company's status as a REIT is protected for federal income tax purposes. One of these provisions ensures that any transfer which would cause NHI to be beneficially owned by fewer than 100 persons or would cause NHI to be “closely held” under the Internal Revenue Code would be void which, subject to certain exceptions, results in no stockholder being allowed to own, either directly or indirectly pursuant to certain tax attribution rules, more than 9.9% of the Company's common stock. In 1991, the Board created an exception to this ownership limitation for Dr. Carl E. Adams, his spouse, Jennie Mae Adams, and their lineal descendants. Effective May 12, 2008, we entered into Excepted Holder Agreements with W. Andrew Adams and certain members of his family. These written agreements are intended to restate and replace the parties' prior verbal agreement. Based on the Excepted Holder Agreements currently outstanding, the ownership limit for all other stockholders is approximately 7.5%. Our charter gives our Board of Directors broad powers to prohibit and rescind any attempted transfer in violation of the ownership limits. These agreements were entered into in connection with the Company's stock purchase program pursuant to which the Company announced that it would purchase up to 1,000,000 shares of its common stock in the public market from its stockholders.

A separate agreement was entered into with each of the spouse and children of Dr. Carl E. Adams and others within Mr. W. Andrew Adams' family. We needed to enter into such an agreement with each family member because of the complicated ownership attribution rules under Internal Revenue Code. The Agreement permits the Excepted Holders to own common stock in excess of 9.9% up to the limit specifically provided in the individual agreement and not lose rights with respect to such shares. However, if the stockholder's stock ownership exceeds the limit then such shares in excess of the limit become “Excess Stock” and lose voting rights and entitlement to receive dividends. The Excess Stock classification remains in place until the stockholder no longer

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exceeds the threshold limit specified in the Agreement. The purpose of these agreements is to ensure that the Company does not violate the prohibition against a REIT being closely held. W. Andrew Adams' Excess Holder Agreement also provides that he will not own shares of stock in any tenant of the Company if such ownership would cause the Company to constructively own more than a 9.9% interest in such tenant. This prohibition is designed to protect the Company's status as a REIT for tax purposes.

NOTE 16. SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED)

The following table sets forth selected quarterly financial data for the two most recent fiscal years (in thousands, except per share amounts).

2013	Quarter Ended
	March 31,		June 30,		September 30,		December 31,
Net revenues	$	27,104	$	27,089	$	30,845	$	32,790
Investment and other gains	22		14		3		3,267
Income from continuing operations attributable to common stockholders	14,050		18,300		22,035		24,114
Discontinued operations	1,693		1,621		20,709		3,661
Net income attributable to common stockholders	$	15,743	$	19,921	$	42,744	$	27,775
Weighted average common shares outstanding:
Basic	27,876,176		27,876,176		27,876,176		29,831,176
Diluted	27,911,584		27,913,727		27,905,545		29,860,614
Earnings per common share:
Basic:
Income from continuing operations attributable to common stockholders	$	.50	$	.65	$	.79	$	.81
Discontinued operations	.06		.06		.74		.12
Net income attributable to common stockholders	$	.56	$	.71	$	1.53	$	.93
Diluted:
Income from continuing operations attributable to common stockholders	$	.50	$	.65	$	.79	$	.81
Discontinued operations	.06		.06		.74		.12
Net income attributable to common stockholders	$	.56	$	.71	$	1.53	$	.93

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2012	Quarter Ended
	March 31,		June 30,		September 30,		December 31,
Net revenues	$	23,135	$	20,916	$	23,396	$	25,870
Investment and other gains	37		35		46		4,759
Income from continuing operations attributable to common stockholders	16,355		15,859		13,282		27,171
Discontinued operations	1,994		1,068		1,068		13,934
Net income attributable to common stockholders	$	18,349	$	16,927	$	14,350	$	41,105
Weighted average common shares outstanding:
Basic	27,776,104		27,792,834		27,830,311		27,848,002
Diluted	27,803,222		27,820,831		27,862,582		27,868,245
Earnings per common share:
Basic:
Income from continuing operations attributable to common stockholders	$	.59	$	.57	$	.48	$	.98
Discontinued operations	.07		.04		.04		.50
Net income attributable to common stockholders	$	.66	$	.61	$	.52	$	1.48
Diluted:
Income from continuing operations attributable to common stockholders	$	.59	$	.57	$	.48	$	.97
Discontinued operations	.07		.04		.04		.50
Net income attributable to common stockholders	$	.66	$	.61	$	.52	$	1.47

Certain quarterly financial information shown above differs from amounts previously reported in the Forms 10-Q and Form 10-K for those periods due to reclassifications to retrospectively reflect the dispositions or planned dispositions of certain facilities as discontinued operations for all periods presented.

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ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE.

None.

ITEM 9A. CONTROLS AND PROCEDURES.

Evaluation of Disclosure Control and Procedures. As of December 31, 2013, an evaluation was performed under the supervision and with the participation of our management, including the Chief Executive Officer (“CEO”) and Chief Accounting Officer (“CAO”), of the effectiveness of the design and operation of management’s disclosure controls and procedures (as defined in rules 13a-15(e) and 15d-15(e) under the Securities and Exchange Act of 1934) to ensure information required to be disclosed in our filings under the Securities and Exchange Act of 1934, is (i) recorded, processed, summarized, and reported within the time periods specified in the SEC rules and forms; and (ii) accumulated and communicated to our management, including our CEO and our CAO, as appropriate, to allow timely decisions regarding required disclosure. Management recognizes that any controls and procedures, no matter how well designed and operated, can only provide reasonable assurance of achieving desired control objectives, and management is necessarily required to apply its judgment when evaluating the cost-benefit relationship of potential controls and procedures. Based upon the evaluation, the CEO and CAO concluded that the design and operation of these disclosure controls and procedures were effective as of December 31, 2013.

There were no significant changes in our internal controls or in other factors that could significantly affect these controls subsequent to the date of their evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses.

Changes in Internal Control over Financial Reporting. There were no changes in our internal control over financial reporting identified in management’s evaluation during the three months ended December 31, 2013 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

MANAGEMENT'S ANNUAL REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING

The management of National Health Investors, Inc. is responsible for establishing and maintaining adequate internal control over financial reporting as defined in Rules 13a-15(f) and 15d-15(f) under the Securities Exchange Act of 1934. The Company's internal control over financial reporting is designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. The Company's internal control over financial reporting includes those policies and procedures that: (i) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the Company; (ii) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with accounting principles generally accepted in the United States of America, and that receipts and expenditures of the Company are being made only in accordance with authorizations of management and directors of the Company; and (iii) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of the Company's assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Management assessed the effectiveness of the Company's internal control over financial reporting as of December 31, 2013 using the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission (COSO) in Internal Control-Integrated Framework (1992). Based on that assessment, management concluded that the Company's internal control over financial reporting was effective as of December 31, 2013. The Company's independent registered public accounting firm, BDO USA, LLP, has issued an attestation report on the effectiveness of the Company's internal control over financial reporting included herein.

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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

Board of Directors and Stockholders

National Health Investors, Inc.

Murfreesboro, Tennessee

We have audited National Health Investors, Inc.’s internal control over financial reporting as of December 31, 2013, based on criteria established in Internal Control – Integrated Framework (1992) issued by the Committee of Sponsoring Organizations of the Treadway Commission (the COSO criteria). National Health Investors, Inc.’s management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting, included in the accompanying "Item 9A, Management’s Annual Report on Internal Control Over Financial Reporting." Our responsibility is to express an opinion on the company’s internal control over financial reporting based on our audit.

We conducted our audit in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects. Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audit also included performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion.

A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

In our opinion, National Health Investors, Inc. maintained, in all material respects, effective internal control over financial reporting as of December 31, 2013, based on the COSO criteria.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), the consolidated balance sheets of National Health Investors, Inc. as of December 31, 2013 and 2012, and the related consolidated statements of income, comprehensive income, equity, and cash flows for each of the three years in the period ended December 31, 2013 and our report dated February 14, 2014 expressed an unqualified opinion thereon.

/s/ BDO USA, LLP

Nashville, Tennessee

February 14, 2014

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ITEM 9B. OTHER INFORMATION.

On February 14, 2014, the Board of Directors of the Company amended its Bylaws to make the definition of "independent director" consistent with the requirements of the New York Stock Exchange. Section 2.04.1 of the Bylaws now provides that at least a majority of the Directors shall at all times (except temporarily pending the filling of a vacancy as hereinafter provided) be persons (“Independent Directors”) who do not have any relationship with the Company that would prevent such person from serving on the Audit Committee of the Board of Directors of a corporation having stock listed on the New York Stock Exchange.

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PART III.

ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE.

We have filed with the New York Stock Exchange (“NYSE”) the Annual CEO Certification regarding the Company’s compliance with the NYSE’s Corporate Governance listing standards as required by Section 303A.12(a) of the NYSE Listed Company Manual. Additionally, we have filed as exhibits to this Annual Report on Form 10-K for the year ended December 31, 2013, the applicable certifications of our Chief Executive Officer and our Chief Accounting Officer as required under Section 302 of the Sarbanes-Oxley Act of 2002.

Incorporated by reference from the information in our definitive proxy statement for the 2014 annual meeting of stockholders, which we will file within 120 days of the end of the fiscal year to which this report relates.

ITEM 11.  EXECUTIVE COMPENSATION.

Incorporated by reference from the information in our definitive proxy statement for the 2014 annual meeting of stockholders, which we will file within 120 days of the end of the fiscal year to which this report relates.

ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS.

Incorporated by reference from the information in our definitive proxy statement for the 2014 annual meeting of stockholders, which we will file within 120 days of the end of the fiscal year to which this report relates.

ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS.

Incorporated by reference from the information in our definitive proxy statement for the 2014 annual meeting of stockholders, which we will file within 120 days of the end of the fiscal year to which this report relates.

ITEM 14. PRINCIPAL ACCOUNTANT FEES AND SERVICES.

Incorporated by reference from the information in our definitive proxy statement for the 2014 annual meeting of stockholders, which we will file within 120 days of the end of the fiscal year to which this report relates.

PART IV.

ITEM 15. EXHIBITS AND FINANCIAL STATEMENT SCHEDULES.

(a)    (1)    Financial Statements

The Consolidated Financial Statements are included in Item 8 and are filed as part of this report.

(2)    Financial Statement Schedules

The Financial Statement Schedules and Report of Independent Registered Public Accounting Firm on Financial Statement Schedules are listed in Exhibit 99.1.

(3)    Exhibits

Exhibits required as part of this report are listed in the Exhibit Index.

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SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	NATIONAL HEALTH INVESTORS, INC.
	BY:/s/ J. Justin Hutchens
	J. Justin Hutchens
	President, Chief Executive Officer
Date: February 14, 2014	and Director

Pursuant to the requirements of the Securities Exchange Act of 1934, this Report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

Signature	Title	Date
/s/ J. Justin Hutchens	President, Chief Executive Officer	February 14, 2014
J. Justin Hutchens	and Director
	(Principal Executive Officer)
/s/ Roger R. Hopkins	Chief Accounting Officer	February 14, 2014
Roger R. Hopkins	(Principal Financial Officer and Principal Accounting Officer)
/s/ W. Andrew Adams	Chairman of the Board	February 14, 2014
W. Andrew Adams
/s/ James R. Jobe	Director	February 14, 2014
James R. Jobe
/s/ Robert A. McCabe, Jr.	Director	February 14, 2014
Robert A. McCabe, Jr.
/s/ Robert T. Webb	Director	February 14, 2014
Robert T. Webb

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NATIONAL HEALTH INVESTORS, INC.

FORM 10-K FOR THE FISCAL YEAR ENDED DECEMBER 31, 2013

EXHIBIT INDEX
Exhibit No.	Description	Page No. or Location
3.1	Articles of Incorporation	Incorporated by reference to Exhibit 3.1 to Form S-11 Registration Statement No. 33-41863
3.2	Amendment to Articles of Incorporation dated as of May 1, 2009	Incorporated by reference to Exhibit A to the Company's Definitive Proxy Statement filed March 23, 2009
3.3	Restated Bylaws as amended November 5, 2012	Incorporated by reference to Exhibit 3.3 to Form 10-K filed February 15, 2013
3.4	Amendment No. 1 to Restated Bylaws dated February 14, 2014	Filed herewith
4.1	Form of Common Stock Certificate	Incorporated by reference to Exhibit 39 to Form S-11 Registration Statement No. 33-41863
10.1	Material Contracts	Incorporated by reference to Exhibits 10.1 thru 10.9 to Form S-4 Registration Statement No. 33-41863
10.2	Amendment No. 5 to the Company's Master Agreement to Lease with NHC	Incorporated by reference to Exhibit 10.2 to Form 10-K dated March 10, 2006
10.3	Amendment No. 6 to the Company's Master Agreement to Lease with NHC	Incorporated by reference to Exhibit 10.1 to Form 10-Q dated November 4, 2013
10.4	Amended and Restated Amendment No. 6 to the Company's Master Agreement to Lease with NHC.	Filed herewith
*10.5	1997 Stock Option Plan	Incorporated by reference to the 1997 Proxy Statement as filed
*10.6	2005 Stock Option Plan	Incorporated by reference to Exhibit 4.10 to the Company's registration statement on Form S-8 filed August 4, 2005
*10.7	2012 Stock Option Plan	Incorporated by reference to Exhibit A to the Company's Proxy Statement filed March 23, 2012
*10.8	First Amendment to the 2005 Stock Option, Restricted Stock & Stock Appreciation Rights Plan	Incorporated by reference to Appendix A to the Company's Proxy Statement filed March 17, 2006
*10.9	Second Amendment to the 2005 Stock Option, Restricted Stock & Stock Appreciation Rights Plan	Incorporated by reference to Exhibit B to the Company's Proxy Statement filed March 23, 2009
10.10	Excepted Holder Agreement - W. Andrew Adams	Incorporated by reference to Exhibit 10.6 to Form 10-K dated February 24, 2009
10.11	Excepted Holder Agreement between the Company and Andrea Adams Brown with Schedule A identifying substantially identical agreements and setting forth the material details in which such agreements differ from this agreement.	Incorporated by reference to Exhibit 10.2 to Form 10-Q dated November 3, 2010
*10.12	Consulting Agreement with W. Andrew Adams	Incorporated by reference to Exhibit 10.8 to Form 10-K dated February 24, 2009

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*10.13	Amended and Restated Consulting Agreement	Incorporated by reference to Exhibit 10.1 to Form 10-Q dated May 5, 2009
*10.14	Amendment No. 1 dated March 10, 2010 to the Amended and Restated Consulting Agreement dated February 25, 2009 by and between NHI and W. Andrew Adams	Incorporated by reference to Exhibit 10.1 to Form 10-Q dated May 7, 2010
*10.15	Employment Agreement with J. Justin Hutchens	Incorporated by reference to Exhibit 10.2 to Form 10-Q dated May 5, 2009
*10.16	Amendment No. 1 dated March 10, 2010 to the Employment Agreement dated February 25, 2009 by and between NHI and J. Justin Hutchens	Incorporated by reference to Exhibit 10.2 to Form 10-Q dated May 7, 2010
10.17	Agreement with Care Foundation of America, Inc.	Incorporated by reference to Exhibit 10.11 to Form 10-K dated February 22, 2010
10.18	$100,000,000 credit facility dated February 1, 2010 by and between NHI and certain subsidiaries and Regions bank, as agent	Incorporated by reference to Exhibit 10.3 to Form 10-Q dated May 7, 2010
10.19	$50 million term loan and a $50 million revolving credit facility with Regions Bank dated November 3, 2010	Incorporated by reference to Exhibit 10.17 to Form 10-K dated February 16, 2010
*10.20	Second Amendment dated December 29, 2010 to the Employment Agreement dated February 25, 2009 by and between NHI and J. Justin Hutchens.	Filed herewith
*10.21	Third Amendment dated May 3, 2011 to the Employment Agreement dated February 25, 2009 by and between NHI and J. Justin Hutchens	Incorporated by reference to Exhibit 10.1 to Form 10-Q for the quarterly period ended June 30, 2011
10.22	Contract to Acquire Properties dated October 31, 2011 by and between National Health Investors, Inc. and Firehole River Real Estate Holdings - Greenville, Ltd., Firehole River Real Estate Holdings - West Houston, Ltd., Legend Oaks - Ennis, LLC, Legend Greenville Healthcare, LLC, Legend Oaks - West Houston, LLC and Legend Oaks - North Houston, LLC	Incorporated by reference to Exhibit 10.1 to Form 10-Q dated November 7, 2011
10.23	Credit Agreement, dated as of November 1, 2011, by and among the Company, Wells Fargo Bank, National Association, as Administrative Agent, and the other lenders named therein.	Incorporated by reference to Exhibit 10.2 to Form 10-Q dated November 7, 2011
10.24	Amended and Restated Credit Agreement dated as of May 1, 2012 among the Corporation, as borrower, the lenders from time to time party thereto and Wells Fargo Bank, National Association, as administrative agent, swing line lender and issuing bank.	Incorporated by reference to Exhibit 10.1 to Form 10-Q dated August 3, 2012
10.25	Extension of Master Agreement to Lease dated December 28, 2012.	Incorporated by reference to Exhibit 10.22 to Form 10-K dated February 15, 2013
10.26	Membership Interest Purchase Agreement dated as of June 24, 3013 among Care Investment Trust Inc., Care YBE Subsidiary LLC and NHI-Bickford RE, LLC.	Incorporated by reference to Exhibit 10.1 to Form 10-Q dated August 5, 2013
10.27	Second Amended and Restated Credit Agreement entered into as of June 28, 2013, by and among National Health Investors, Inc., Each Lender from Time to Time Party Hereto, and Wells Fargo Bank, National Association, as Administrative Agent, the Swing Line Lender and the Issuing Bank.	Incorporated by reference to Exhibit 10.2 to Form 10-Q dated August 5, 2013

86

10.28	First Amendment dated as of December 23, 2013 to the Second Amended and Restated Credit Agreement dated as of June 28, 2013 by and among National Health Investors, Inc. and Wells Fargo Bank, National Association, as Administrative Agent for the Lenders party to the Credit Agreement.	Incorporated by reference to Exhibit 10.1 to Form 8-K dated December 23, 2013
10.29	Master Lease dated as of December 23, 2013 between NHI-REIT of Next House, LLC, Myrtle Beach Retirement Residence LLC and Voorhees Retirement Residence LLC, individually and collectively as Landlord, and NH Master Tenant LLC, as Tenant.	Incorporated by reference to Exhibit 10.2 to Form 8-K dated December 23, 2013
10.30	Guarantee of Lease Agreement dated as of December 23, 2013 between NHI-REIT of Next House, LLC, Myrtle Beach Retirement Residence LLC and Voorhees Retirement Residence LLC, individually and collectively as Landlord, and Holiday AL Holdings, LP as Guarantor.	Incorporated by reference to Exhibit 10.3 to Form 8-K dated December 23, 2013
10.31	Purchase Agreement dated as of November 18, 2013 between the Registrant and certain subsidiaries of Holiday Acquisition Holdings LLC.	Filed herewith
10.32	Amendment No. 7 to Master Agreement to Lease with NHC	Filed herewith
21	Subsidiaries	Filed herewith
23.1	Consent of Independent Registered Public Accounting Firm	Filed herewith
31.1	Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002	Filed Herewith
31.2	Certification of Principal Financial Officer pursuant to 18 U.S.C Section 1350, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002	Filed Herewith
32	Certification of Chief Executive Officer and Principal Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002	Filed Herewith
99.1	Financial Statement Schedules	Filed herewith
**101.INS	XBRL Instance Document
**101.SCH	XBRL Taxonomy Extension Schema Document
**101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document
**101.LAB	XBRL Taxonomy Extension Label Linkbase Document
**101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document
**101.DEF	XBRL Taxonomy Extension Definition Linkbase Document

* Indicates management contract or compensatory plan or arrangement.

** As provided in Rule 406T of Regulation S-T, this information shall not be deemed “filed” for purposes of Sections 11 and 12 of the Securities Act and Section 18 of the Securities Exchange Act or otherwise subject to liability under those sections.

87

EX-3.4

Exhibit 3.4

AMENDMENT NO. 1

TO THE RESTATED BYLAWS

OF

NATIONAL HEALTH INVESTORS, INC.

The Bylaws of National Health Investors, Inc. which were approved by the Board of Directors on July 31, 1991 and amended and restated on November 5, 2012 are hereby amended as follows:

1.Section 2.04.1 of the Bylaws is hereby deleted in its entirety and replaced with the following:

2.04.1The number of Directors of the Corporation shall be that number set forth in the Charter, unless a majority of the Board of Directors establishes some other number not less than three nor more than nine. The Board of Directors shall be divided into such classes as are set forth in the Charter, with the number of Directors of each class being as equal as practicable. At least a majority of the Directors shall at all times (except temporarily pending the filling of a vacancy as hereinafter provided) be persons (“Independent Directors”) who do not have any relationship with the Corporation that would prevent such person from serving on the Audit Committee of the Board of Directors of a corporation having stock listed on the New York Stock Exchange.

Unanimously approved by the Board of Directors at a regular meeting held on February 14, 2014.

/s/ Susan V. Sidwell___________

Susan V. Sidwell

Secretary of the Corporation

EX-10.4

EXHIBIT 10.4

AMENDED AND RESTATEDAMENDMENT NO. 6 TO MASTER AGREEMENT TO LEASE

This Amended and Restated Amendment No. 6 to Master Agreement to Lease is entered into as of December 26, 2012 to reflect a change in the date on which National Health Investors, Inc. is conveying the Sale Facilities as defined below to their respective Grantees and shall replace the original Amendment No. 6 to Master Agreement to Lease.

This Amendment No. 6 (hereinafter “6th Amendment”) is made to that certain Master Agreement To Lease between NATIONAL HEALTH INVESTORS, INC. (“Landlord” or “NHI”) and NATIONAL HEALTHCARE CORPORATION (“Tenant” or “NHC”) dated October 17, 1991 (hereinafter, as amended, the “Master Lease”) and is entered into as of the 26th day of December 2012.

PRELIMINARY STATEMENTS

A.WHEREAS, pursuant to the terms of the Master Lease, NHC has leased certain licensed nursing centers, assisted living or retirement facilities in forty-one (41) geographical locations (hereinafter “Leased Properties” or “Leased Property”) as identified on Exhibit A to said Master Lease; and

B.WHEREAS, the Master Lease has been previously amended by amendments, including Amendment No. 5 To Master Agreement To Lease dated December 27, 2005 (the “5th Amendment”); and

C.WHEREAS, the 5th Amendment extended the term of the Master Lease through December 31, 2021 and grants to NHC the right to elect to further extend the term of the Master Lease for three (3) successive five (5) year renewal terms referred to respectively as the Third Renewal Term, the Fourth Renewal Term and the Fifth Renewal Term; and

D.WHEREAS, NHI and NHC have agreed that NHI shall sell to NHC and NHC or its designated affiliate shall purchase from NHI the centers identified as:

(i)	NHC HealthCare, Columbia
	101 Walnut Lane
	Columbia, Tennessee 38401
(ii)	NHC HealthCare, Hillview
	2710 Trotwood Avenue
	Columbia, Tennessee 38401
(iii)	NHC HealthCare, Knoxville
	809 Emerald Avenue, N.E.
	Knoxville, Tennessee 37917
(iv)	NHC HealthCare, Springfield
	608 Eighth Avenue East
	Springfield, Tennessee 37172

(v)	NHC HealthCare, Madisonville
	419 N. Seminary Street
	Madisonville, Kentucky 42431
(vi)	NHC HealthCare, Rossville
	1425 McFarland Avenue
	Rossville, Georgia 30741

(The above six (6) facilities are referred to collectively as the “Sale Facilities”); and have entered into a Purchase and Sale Agreement dated December 26, 2012 to set forth the terms of such purchase and sale; and

E.Landlord and Tenant desire to extend the Term of the Lease and modify the rent provisions of the Master Lease effective upon the closing of the sale of all of the Sale Facilities (but not less than all of the Sale Facilities) to NHC or its affiliates; and

F.Landlord and Tenant desire to make other modifications to the Master Lease as set forth in this 6th Amendment.

NOW, THEREFORE, IN CONSIDERATION OF THE PREMISES, the parties do hereby amend the Master Lease as follows:

1.Effective Date of Certain Provisions. This 6th Amendment becomes a part of the Master Lease as of December 26, 2012. The modifications to the Master Lease made in Sections 2, 4, 5, and 6 below shall take effect on the date (herein the “Effective Date”) which is the date on which NHC through its designated affiliates closes the purchase of the Sale Facilities.

2.Modification of "Leased Property". As of the date the sale of the Sale Facilities closes, the phrase “Leased Property,” as found and used in the Master Lease, shall no longer include any of the Sale Facilities, except as expressly provided in this 6th Amendment. Exhibit A to the Master Lease and Schedule A-1 to the 5th Amendment shall be replaced with a revised list of the remaining Leased Property to be attached hereto as Schedule A-1. As of the Effective Date, each Short Form Operating Lease between Landlord and Tenant for any of the Sale Facilities shall terminate. As of the Effective Date, the defined terms “Land,” “Improvements,” “Appurtenances,” and “Fixtures” shall not include any property interests which is a part of any of the Sale Facilities. Upon the conveyance of the Sale Facilities to Tenant, Landlord shall have no continuing obligations to Tenant under the Master Lease with respect to any of the Sale Facilities.

3.Term. Section 1.03 of the Master Lease is hereby amended to acknowledge that Tenant hereby, and as of the date of this 6th Amendment, elects to extend the Term through the Third Renewal Term (as allowed by the 5th Amendment) at the same Base Rent as determined under the provisions of Paragraph 4 below. The Third Renewal Term extends the Term of the Master Lease through December 31, 2026. As provided in the 5th Amendment, Tenant may elect hereafter to further extend the Term of the Master Lease for the Fourth Renewal Term and

The Fifth Renewal Term. The election to extend the Term of the Master Lease through the Third Renewal Term may not be rescinded hereafter by Tenant for any reason other than Landlord’s default in failing to convey the Sales Facilities. If due to Landlord’s default in failing to convey the Sales Facilities, the election to extend the Master Lease is rescinded, Tenant shall have the option to extend the term of the Master Lease for the Third Renewal Term as provided in the Fifth Amendment.

4.Base Rent. Section 2.01.01 of the Master Lease is hereby amended to acknowledge that, as provided in the 5th Amendment, Base Rent due under the Master Lease is currently in the annual amount of Thirty-Three Million Seven Hundred Thousand and No/100 Dollars ($33,700,000.00). Upon the sale of all of the Sale Facilities to Tenant and not less than all of the Sale Facilities, and effective on the Effective Date, Base Rent shall be reduced to equal Thirty Million Seven Hundred Fifty Thousand and No/100 Dollars ($30,750,000.00) per year through the Lease Year ending December 31, 3026. Base Rent shall be paid in equal monthly installments. Base Rent for the Fourth Renewal Term and the Fifth Renewal Term, if applicable, shall be the fair market value base rent as negotiated in the future by Landlord and Tenant. If the Effective Date is later than January 1, 2014, annual Base Rent for the 2014 Lease Year shall remain at $33,700,000.00 through the day preceding the Effective Date, and shall be paid monthly in advance and prorated for any period shorter than a full calendar month. The Base Rent after the sale of the Sale Facilities shall be allocated as set out on Schedule A-2 attached hereto.

5.Percentage Rent. In addition to Base Rent, Tenant shall continue to pay Percentage Rent under Section 2.06 of the Master Lease as amended by the 5th Amendment and as further amended hereby.

(a)With respect to the Sale Facilities only, Percentage Rent for the 2013 Lease Year shall be due and calculated based upon the Gross Revenue of each of the Sale Facilities for the eight (8) month period beginning January 1, 2013 and ending August 31, 2013. For each of the Sales Facilities that Gross Revenue amount shall be compared to 8/12 of the 2007 Gross Revenue for the respective Sale Facility set forth on Schedule A-3. Tenant shall pay to Landlord on or before September 30, 2013, any Percentage Rent due for 2013 on the Sales Facilities, after Landlord’s giving credit for any estimated 2013 payments received by Landlord. For the other Lease Property, Percentage Rent for the 2013 Lease Year shall be paid as required by the Master Lease. Percentage Rent due with respect to the Lease Year ending December 31, 2013 shall be paid in estimated monthly installments during 2013 as provided in Section 2.06.03 of the Master Lease with all Gross Revenues (for both the Sale Facilities and for the remaining Leased Property) to be certified by Tenant and payment adjustment made, if required, in accordance with Sections 2.06.02 and 2.06.03 of the Master Lease.

(b)With respect to Percentage Rent to be paid for the full Lease Year commencing January 1, 2014 and all subsequent Lease Years, the calculation of Gross Revenues shall not include, for both the year in question and the January 1, 2007 through December 31, 2007 base year, any revenues of the Sale Facilities. The Gross Revenue for each Leased Property for the Lease Year ending December 31, 2007 is set out on Schedule A-3, attached hereto.

6.Continuing Master Lease Provisions and the Sale Facilities

(a)Notwithstanding the fact that the Sale Facilities are not included within the meaning of the term “Leased Property” after the date of conveyance of the Sale Facilities, Tenant shall remain liable for performing and meeting all obligations under the Master Lease with respect to the Sale Facilities accruing for any period prior to August 29, 2013. Tenant hereby agrees to defend, indemnify and to hold Landlord harmless from and against any loss, liability, claim, damages (including consequential damages), and cost and expense (including attorney’s fees) arising from Tenant’s not having observed or performed any provision of the Master Lease with respect to any of the Sale Facilities.

(b)All indemnity provisions contained in the Master Lease in favor of Landlord, including, but not limited to, the indemnity provisions of Sections 5.01 and 7.02 thereof, shall continue in effect and shall protect Landlord from any matter relating to any of the Sale Facilities, regardless of the time such matter or claim was first asserted against Landlord or became known to Tenant.

(c)Until all applicable statute of limitation periods have passed, Tenant shall continue to include Landlord as an insured with respect to all insurance coverage for any of the Sale Facilities in accordance with the provisions of Section 4.02 of the Master Lease if such insurance coverage is provided on a claims made basis.

7.Non-Compete Provisions. Tenant acknowledges that if Tenant does not elect to exercise its options to extend the Term of the Master Lease for the Fourth Renewal Term or the Fifth Renewal Term, Landlord will need to sell the Leased Properties or find a new operator to lease the Leased Properties. The then market value of the Leased Properties may be influenced by the existence of competing senior housing facilities, as defined herein, located in the proximity of the Leased Facilities. In consideration of Landlord’s lease of the Leased Properties to Tenant, Tenant agrees to the following non-compete provisions:

(a)Except as specifically permitted below, Tenant agrees that during the last five (5) years of the Term of the Master Lease, neither Tenant nor any subsidiary or other affiliated entity of Tenant or any company under common ownership, management or control with Tenant, shall own, acquire, build, construct, lease, manage or operate a Competing Facility, as defined herein, located within the same county as any of the Leased Properties. This non-compete provision shall not apply if either (i) the Competing Facility was in operation or under actual construction by December 31, 2021 or any later date which is five (5) years and one day prior to the end of the Term if the Term has been extended beyond December 31, 2026 (such date is referred to as the “Allowed Pre-existing Facility Determination Date”); or (ii) any Competing Facility located in a county in which as of the Allowed Pre-existing Facility Determination Date, Tenant owns a nursing home, assisted living or senior living center in addition to the center operated by Tenant on the Leased Property in such county; or (iii) regarding an intended project, one for which on the Allowed Pre-existing Facility Determination Date a Certificate of Need has been issued, if required, for such intended project.

(b)As used herein, Competing Facility means any licensed skilled nursing center or licensed skilled and licensed intermediate care nursing center.

(c)In the event Tenant should breach these non-compete provisions, Tenant may be permanently enjoined from doing so. In the event of any suit to enforce the non-compete provisions, if Landlord is granted any relief against Tenant, Tenant shall be liable to Landlord for all of Landlord’s court costs, expenses and legal fees incurred in seeking to enforce the provisions of this non-compete provision.

8.Section 18.01 of the Master Lease as previously amended by the 5th Amendment is hereby modified to reflect the address of Landlord as:

222 Robert Rose Drive

Murfreesboro, Tennessee 37129

9.Sections 2, 4, and 5 of this 6th Amendment shall be of no effect if Tenant should fail or refuse to purchase all of the Sale Facilities in accordance with the terms and provisions of the Purchase and Sale Agreement of even date herewith.

IN WITNESS WHEREOF, the parties have executed this 6th Amendment on the date shown below.

THE REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK.

SIGNATURE PAGE FOLLOWS

SIGNATURE PAGE TO AMENDED AND RESTATEDAMENDMENT NO. 6 TO MASTER AGREEMENT TO LEASE

TENANT:

NATIONAL HEALTHCARE CORPORATION, a Delaware corporation

By: /s/ Stephen F. Flatt

Stephen F. Flatt, President

Date: August 27, 2013

LANDLORD:

NATIONAL HEALTH INVESTORS, INC., a Maryland corporation

By: /s/ J. Justin Hutchens

J. Justin Hutchens, President

Date: August 27, 2013

SCHEDULE A-1

LEASED PROPERTIES

Tennessee:

Athens Health Care Center

P.O. Box 766

1204 Frye Street

Athens, TN 37303

Colonial Hill Health Care Center

P.O. Box 3218 CRS

3209 Bristol Highway

Johnson city, TN 37602

Franklin Health Care Center

P.O. Box 683

216 Fairground Street

Franklin, TN 37064

Green Valley Health Care Center P.O. Box 585

812 Charlotte Street

Dickson, TN 37055

Lawrenceburg Health Care Center

P.O. Box 767

324 Kennedy Street

Lawrenceburg, TN 38464

McMinnville Health Care Center

P.O. Box 528

Old Smithville Highway

McMinnville, TN 37110

Merihil Health Care Center

P.O. Box 2307

1653 Mooresville Highway

Lewisburg, TN 37091

NHC of Hendersonville

370 Old Shackle Island Road

Hendersonville, TN 37075

Oakwood Health Care Center

P.O. Box 1667

244 Oakwood Drive

Lewisburg, TN 37091

Sch A1-1

Parkwood Health Care Center

2700 Parkwood Avenue

Chattanooga, TN 37404

Pulaski Health Care Center

P.O. Box 638

993 E. College S.

Pulaski, TN 38478

Ridgewood Health Care Center

P.O. Box A

Dogwood Lane

Milan, TN 38358

Sequatchie Health Care Center

P.O. Box 685

Dell Trail

Dunlap, TN 37327

Somerville Health Care Center

P.O. Box 229

308 Lake Drive

Somerville, TN 38068

Sparta Health Care Center

P.O. Box 298

108 Gracey Street

Sparta, TN 38583

Sunny Point Health Care Center

P.O. Box 549

825 College Heights

Smithville, TN 37166

Missouri:

Desloge Health Care Center

P.O. Box AA

801 Brim Street

Desloge, MO 63601

Joplin Health Care Center

2700 East 34th street

P.O. Box 2877

Joplin, MO 64803

Kennett Health Care Center

P.O. Box 696

Route 1, South Bypass

Kennett, MO 63857

Sch A1-2

NHC of Maryland Heights

P.O. Box 2244

2920 Fee Fee Road

Maryland Heights, MO 63043

St. Charles Health Care Center

P.O. Box 1230

35 Sugar Maple Lane

St. Charles, MO 63302

Florida:

NHC of Hudson

P.O. Box 5487

7210 Beacon Woods Drive

Hudson, FL 34667

NHC of Merritt Island

500 Crockett Road

Merritt Island, FL 32953

NHC of Stuart

800 S.E. Central Parkway

Stuart, FL 34994

Plant City Health Care Center

701 North Wilder Road

P.O. Box 2568

Plant City, FL 33566

Kentucky:

Homewood Health Care Center

P.O. Box 297

Homewood Boulevard

Glasgow, KY 42142

South Carolina:

Anderson Health Care Center

P.O. Box 1327

1501 East Greenville

Anderson, SC 29622

Greenwood Health Care Center

P.O. Box 3109

437 East Cambridge Avenue

Greenwood, SC 29646

Laurens Health Care Center

P.O. Box 1197

301 Pinehaven St. Extension

Laurens, SC 29360

Sch A1-3

Alabama:

Golden Springs Health Care Center

P.O. Box 1790

Coleman Road

Anniston, AL 36201

Moulton Health Care Center

P.O. Box 336

300 Hospital Street

Moulton, AL 35650

Virginia:

Bristol Health Care Center

P.O. Box 1166

245 North Street

Bristol, VA 24201

Retirement Centers:

Parkwood Retirement center

2700 Parkwood Avenue

Chattanooga, TN 37404-1747

Colonial Hill Retirement Center

P.O. Box 467 CRS

Johnson City, TN 37602

Lake St. Charles Retirement Center

45 Honey Locust Lane

St. Charles, MO 63303-5711

Sch A1-0

SCHEDULE A-2

ALLOCATION OF BASE RENT
	Rent By Facility
Anderson		$	3,349,719.74
Anniston		1,152,192.65
Athens		284,407.98
Bristol		635,019.65
Chattanooga		815,050.09
Desloge		179,760.94
Dickson		3,270,528.43
Franklin		1,046,726.88
Glasgow		1,180,434.81
Greenwood		899,691.97
Hendersonville		1,057,860.06
Johnson City		708,580.13
Joplin		635,617.43
Kennett		367,561.80
Laurens		1,545,509.57
Lewisburg		874,051.62
Maryland Heights		251,289.76
McMinnville		1,044,503.59
Milan		881,207.66
Moulton		890,546.86
Oakwood		436,469.35
Pulaski		915,841.10
Scott		608,339.08
Sequatchie		242,468.21

Smithville	577,233.22
Somerville	678,087.76
Sparta	102,094.55
St. Charles	100,000.00
Colonial Hill Ret.	410,208.65
Lake St. Charles	848,018.77
Parkwood Ret.	8,977.69
Bayonet Point	1,325,000.00
Merritt Island	1,500,000.00
Parkway	1,300,000.00
Plant City	627,000.00
Total NHI Rent	$	30,750,000

Sch A3 - 0

SCHEDULE A-3

GROSS REVENUE FOR 2007 LEASE YEAR

Base Year Revenue
Post Sale of 6 Buildings	2007 Base Year Revenue
NHC Healthcare, Anderson	$	22,776,366.28
NHC HealthCare, Anniston	11,071,802.58
NHC Healthcare, Athens	5,817,454.80
NHC HealthCare, Bristol	7,377,574.66
NHC Healthcare, Chattanooga	13,534,991.10
NHC Healthcare, Desloge	4,371,586.50
NHC HealthCare, Dickson	15,415,625.04
NHC HealthCare, Franklin	6,496,021.07
NHC Healthcare, Glasgow	11,491,923.29
NHC Healthcare, Greenwood	9,448,370.41
NHC Healthcare, Hendersonville	9,930,983.82
NHC Healthcare, Johnson City	10,324,429.96
NHC Healthcare, Joplin	7,092,815.60
NHC Healthcare, Kennett	7,187,714.90
NHC HealthCare, Laurens	12,361,571.91
NHC Healthcare, Lewisburg	7,157,903.98
NHC Healthcare, Maryland Heights	11,217,904.44
NHC HealthCare, McMinnville	9,019,944.18
NHC HealthCare, Milan	7,982,545.27
NHC HealthCare, Moulton	8,638,529.94
NHC Healthcare, Oakwood	4,205,190.27
NHC HealthCare, Pulaski	8,224,185.72
NHC Healthcare, Scott	5,534,074.24
NHC HealthCare, Sequatchie	6,637,547.45
NHC HealthCare, Smithville	7,180,243.41
NHC Healthcare, Somerville	5,191,475.41
NHC Healthcare, Sparta	7,495,864.95
NHC Healthcare, St. Charles	6,796,719.77
Colonial Hill Retirement Center	1,655,498.30
Lake St. Charles Retirement Center	3,837,860.40
Parkwood Retirement Center	413,028.51
Bayonet Point (Hudson)	15,195,687.61
Merritt Island	14,704,644.29
Parkway HCC (Stuart)	14,673,645.99
Plant City	12,932,961.28
Revised Base Year Revenue	$	313,394,687.26
Sale of 6 Buildings:
NHC HealthCare, Columbia	$	6,799,737.53
NHC Healthcare, Hillview	6,469,995.60
NHC Healthcare, Knoxville	8,353,316.24
NHC HealthCare, Springfield (TN)	7,391,856.03
NHC Healthcare, Madisonville	5,514,677.37
NHC HealthCare, Rossville	6,701,908.30
	$	41,231,491.06
Current Total:	$	354,626,178.31

Sch A3 - 0

EX-10.20

Exhibit 10.20

AMENDMENT NO. 2 TO

EMPLOYMENT AGREEMENT

This Amendment No. 2 (the “Amendment”) to the Employment Agreement dated 25th day of February, 2009, as amended by Amendment No. 1, dated effective March 10, 2010 (together, the “Agreement”), is hereby made by and between National Health Investors, Inc., a Maryland real estate investment trust (“Company”), and Justin Hutchens, a resident of Tennessee (“Executive”), to be effective as of the date set forth below (the “Effective Date”).

WHEREAS, Executive and the Company previously entered into the Agreement pursuant to which Executive agreed to act as President and Chief Operating Officer of the Company and Executive further agreed to serve as the Chief Executive Officer of the Company when W. Andrew Adams is no longer serving in such capacity;

WHEREAS, the parties intended the Agreement to comply with section 409A of the Internal Revenue Code of 1986, as amended (the “Code”) and the regulations promulgated pursuant thereto (the “Regulations”);

WHEREAS, the Internal Revenue Service has issued Notices 2010-6 and 2010-80 providing for amendment to certain arrangements to clarify ambiguous terms and to correct any failure of the document to comply with section 409A of the Code;

WHEREAS, the Company and the Executive now desire to amend certain terms of the Agreement effective upon the Effective Date as set forth herein in order to clarify any ambiguous terms and conditions and to insure compliance with section 409A of the Code.

NOW, THEREFORE, for and in consideration of the promises herein, and other good and valuable consideration, Company and Executive do hereby agree to amend the Agreement as follows:

1.The intent of the parties is that any bonus payable under Section 4.A.2 or Section 4.A.3 will not be nonqualified deferred compensation for the reason the bonus will be made on or before March 15^th following the year to which such bonus is applicable although no payment date is stated in the Agreement. Further, the Company has, in the past, made such bonus payment on or before such date. However, in order to make clear that the payment is required to be made on or before such date and will be made within the short-term deferral period described in the Regulations, Section 4.A.2 of the Agreement is hereby deleted in its entirety and replaced with the following:

2.Bonus. The Company will pay annual incentive compensation awards to the Executive as may be granted by the Board or the compensation committee of the Board (the “Compensation Committee”) under any executive bonus or incentive plan in effect from time to time (the “Annual Incentive Award”). The Annual Incentive Award for the first year of this Agreement shall be equal to Three Hundred Eighty Thousand Dollars ($380,000) (100% of Base

Salary). Any Annual Incentive Award payable hereunder will be paid by the Company on or before March 15^th following the end of the year for which such Annual Incentive Award is being made. The Board or the Compensation Committee shall have the option of granting an Annual Incentive Award for the first year in different amounts, contingent upon performance of stipulated FFO and dividend goals of the Company established jointly by the Board and the Executive.

2.Section 4.A.3 of the Agreement is hereby deleted in its entirety and replaced with the following:

3.Alternative Compensation. As an alternative to Sections 4.A.1 and 2 above, Executive may elect at any time (except as provided below) to be compensated pursuant to the Cash Performance Incentive Plan attached hereto as Appendix A. In the event the Executive shall elect to be compensated pursuant to the Cash Performance Incentive Plan, such election shall be in lieu of the compensation provided in Sections 4.A.1 and 2 above and will continue for the remainder of this Agreement. After making such an election, Executive cannot elect to again be compensated as provided in Sections 4.A.1 and 2 above. This Cash Performance Incentive Plan will be driven by the Company’s FFO and dividend growth. An election pursuant to this Section 4.A.3 shall be made in the form satisfactory to the Company and shall be effective for the first calendar year beginning after the date the election is received by the Company. Any payment made under the Cash Performance Incentive Plan Annual Incentive Award will be paid by the Company on before March 15^th following the end of the year for which such payment is being made.

3.Section 6 of the Agreement is hereby deleted in its entirety and replaced with the following:

6.Death or Disability. In the event Executive’s employment is terminated as a result of death or disability of the Executive during the Period of Employment, the Company’s obligation to make payments under this Agreement shall cease as of the date of death or disability, except for the Executive’s earned but unpaid Base Salary and Annual Incentive Award which will be paid on a prorated basis for that year. For purposes of this Agreement, disability shall mean the disability of Executive for longer than three (3) months which renders Executive unable to perform Executive’s duties under this Agreement with reasonable accommodation. The payment of earned but unpaid Base Salary due under this Section 6 will be made within thirty (30) days after Executive is terminated on account of death or disability and the payment of any earned but unpaid Annual Incentive Award will be made in accordance with Section 2 or 3, as applicable.

4.Section 7.A of the Agreement is hereby amended by adding the following sentences to end thereof:

“If the payment made to Executive pursuant to this Section 7.A is subject to section 409A of the Code, it shall be made in accordance with Section 17.B (the “Release”).”

5.Section 7.B of the Agreement is hereby amended by adding the following sentence to end thereof:

“Any payment due pursuant to this Section 7.B shall be made within ninety (90) days after termination of employment.”

6.Section 7.D.3 of the Agreement is hereby deleted in its entirety and replaced with the following:

3.“Constructive Discharge” means termination of the Executive’s employment by the Executive due to a material breach of the Company’s duties, responsibilities and obligations under this Agreement. Executive shall communicate any purported termination by Executive for Constructive Discharge by a written Notice of Termination for Constructive Discharge to the Company as provided herein. For the purposes of this Agreement, a Notice of Termination for Constructive Discharge shall mean a notice by Executive within ninety (90) days after the initial existence of the material breach by the Company specifying the existence of a material breach by the Company hereunder. Upon receipt of that notice, the Company shall have a period of sixty (60) days to remedy the condition or conditions specified in the Notice of Termination for Constructive Discharge; provided, however, such cure period may be extended by the Company for up to sixty (60) days by notice to Executive prior to the end of the initial sixty (60) day period if the Company is working diligently to cure such breach and reasonably needs an extension to affect such cure. The Notice of Termination for Constructive Discharge must specify a date of termination of not more than sixty (60) days after the last day of the Company’s cure period (including any extension thereof). If the Company remedies the condition within the cure period (including any extension thereof), the Notice of Termination for Constructive Discharge shall become ineffective and the Company shall have no obligations under this Agreement as a result of it.

7.A new Section 17 is hereby added to the Agreement as follows:

17.Section 409A Savings Clause.

A.Application of Section 409A. To the extent of any compliance issues or ambiguous terms, this Agreement shall be construed in such a manner so as to comply with the requirements of Section 409A, and the rules set

forth in this Section 17 shall apply with respect to any payments (but only such payments) that are subject to Section 409A notwithstanding any other provision of this Agreement.

B.Timing of Payments. Notwithstanding the applicable provisions of this Agreement regarding the timing of payments, any payment due hereunder which is contingent upon receipt of the release described in Section 7.A shall be made, if at all, in accordance with this Section 17.B, and only if Executive has delivered to the Company a properly executed Release for which all legally mandated revocation rights of the Executive have expired prior to the end of the payment period. If Section 17.C is not applicable to the payment, such payment shall be made within ninety (90) days following the Termination Date; provided, however, that if the ninety (90) day period for payment specified in this Section begins in one taxable year of Executive and ends in a second taxable year of Executive, the payment will be made in the second taxable year. Further, provided, that if Section 17.C is applicable, the payment shall be made on the day following the expiration of six (6) months after the Termination Date. If theCompany does not receive a properly executed Release, for which all rights of revocation have lapsed, prior to the ninetieth (90^th) day following the Termination Date, Executive shall forfeit all rights to any payments under Section 7.A of this Agreement.

C.Delayed Payments. (i) Notwithstanding any other payment schedule provided herein to the contrary, if, and only if, Executive is deemed on the Termination Date to be a “specified employee” within the meaning of that term under Section 409A(a)(2)(B), then the terms of this Section 17.C shall apply as required by Section 409A. Any payment that is considered deferred compensation under Section 409A payable on account of a “separation from service” shall be made on the date which is the earlier of (y) the expiration of the six (6) month period measured from the date of such “separation from service” of Executive or (z) the date of Executive’s death (the “Delay Period”) to the extent required under Section 409A. Upon the expiration of the Delay Period, all payments delayed pursuant to the immediately preceding sentence (whether they otherwise would have been payable in a single sum or in installments in the absence of such delay) shall be paid to Executive in a lump sum by the Company, and all remaining payments due under this Agreement shall be paid or provided in accordance with the normal payment dates specified for them herein; and

(ii)To the extent that any benefits to be provided during the Delay Period are considered deferred compensation under Section 409A provided on account of a “separation from service,” and such benefits are not otherwise exempt from Section 409A, Executive shall pay the cost of such benefits during the Delay Period, and the Company shall reimburse Executive, to the extent that such costs otherwise would have been paid by the Company or to the extent that such benefits otherwise would have been provided by the Company at no cost to Executive, the Company’s share of the cost of such benefits upon

expiration of the Delay Period, and any remaining benefits shall be reimbursed or provided by the Company in accordance with the procedures specified herein.

(iii)No amount subject to the delay described in this Section 17.C may be made before the later of (i) 18 months following the date of correction, or (ii) six months following the date of termination of employment.

D.Separation from Service. For purposes of this Agreement, the phrase “termination of employment” or any similar term or phrase shall mean Executive’s “Separation from Service” as defined by the default provisions of Treas. Reg. § 1.409A-1(h).

8.In all other respects the Agreement is hereby ratified and affirmed.

IN WITNESS WHEREOF, the Company has caused this Amendment to be executed on its behalf by its duly authorized officer and Consultant has executed the same effective as of the 29th day of December, 2010.

NATIONAL HEALTH INVESTORS, INC.		EXECUTIVE
By:	/s/ Ted Welch	/s/ Justin Hutchens
Title:	Chairman, Compensation Committee	Justin Hutchens

EX-10.31

EXHIBIT 10.31

EXECUTION VERSION

PURCHASE AGREEMENT

BY AND BETWEEN

THE ENTITY SET FORTH UNDER THE HEADING “PURCHASER”
ON THE SIGNATURE PAGES HERETO

AND

EACH OF THE ENTITIES SET FORTH UNDER THE HEADING “SELLERS”
ON THE SIGNATURE PAGES HERETO

November 18, 2013

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TABLE OF CONTENTS
		Page
ARTICLE I PURCHASE AND SALE		1
Section 1.1	Transfer	1
Section 1.2	Closing	4
Section 1.3	Purchase Price	4
Section 1.4	Reserved	4
Section 1.5	Payment of Purchase Price	5
Section 1.6	Assumed Liabilities	5
Section 1.7	Excluded Liabilities	5
Section 1.8	Allocation of Purchase Price	5
ARTICLE II REPRESENTATIONS AND WARRANTIES OF THE SELLERS		6
Section 2.1	Organization and Qualification	7
Section 2.2	Authority; Binding Effect; Approvals; No Conflicts	7
Section 2.3	Permits; Licenses	9
Section 2.4	Governmental Approvals	9
Section 2.5	Financial Statements	9
Section 2.6	Absence of Certain Changes, Events and Conditions	9
Section 2.7	Title to Personal Property	9
Section 2.8	Condition and Sufficiency of Assets	9
Section 2.9	Real Property	9
Section 2.10	Compliance with Laws	10
Section 2.11	Hazardous Substances	10
Section 2.12	No Litigation	11
Section 2.13	Employees	11
Section 2.14	ERISA	11
Section 2.15	Insurance	11
Section 2.16	Brokers and Finders	12
Section 2.17	OFAC	12
ARTICLE III REPRESENTATIONS AND WARRANTIES OF THE PURCHASER		13
Section 3.1	Organization; Etc	13
Section 3.2	Authority, Binding Effect	13
Section 3.3	No Litigation	13
Section 3.4	Governmental Approvals	14
Section 3.5	Brokers and Finders	14
Section 3.6	Available Funds	14
ARTICLE IV COVENANTS OF THE SELLERS		14
Section 4.1	Interim Operating Covenants	14
Section 4.2	Liens	15
Section 4.3	Inspection Rights	15
Section 4.4	Title Insurance and Surveys	16

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Section 4.5	Further Assurances	17
Section 4.6	8-K Requirements	18
Section 4.7	Phase I Updates	19
Section 4.8	Myrtle Beach/Yardley Commons	19
ARTICLE V COVENANTS OF THE PURCHASER		20
Section 5.1	Cooperation	20
Section 5.2	Further Assurances	20
ARTICLE VI OTHER COVENANTS		20
Section 6.1	Confidentiality	20
Section 6.2	Casualty Event	21
Section 6.3	Condemnation Event	22
ARTICLE VII INDEMNIFICATION		22
Section 7.1	Indemnification by the Sellers	22
Section 7.2	Indemnification by the Purchaser	23
Section 7.3	Notification of Claims	24
Section 7.4	Survival of Representations	25
Section 7.5	No Punitive Damages	26
Section 7.6	Broker’s Fee	26
Section 7.7	Treatment of Indemnification Payments	26
Section 7.8	Survival	26
ARTICLE VIII CONDITIONS		27
Section 8.1	Conditions to Each Party’s Obligations	27
Section 8.2	Conditions to Obligations of the Purchaser	27
Section 8.3	Conditions to Obligations of the Sellers	27
ARTICLE IX CLOSING		28
Section 9.1	Possession	28
Section 9.2	Closing Documents	28
Section 9.3	Closing Adjustments	31
Section 9.4	Closing Costs; Transfer Taxes	31
Section 9.5	Survival	31
ARTICLE X TERMINATION AND ABANDONMENT		32
Section 10.1	Method of Termination	32
Section 10.2	Procedure Upon Termination	33
Section 10.3	Effect of Termination; Remedies for Default; Break Up Fees	33
ARTICLE XI MISCELLANEOUS PROVISIONS		34
Section 11.1	Amendment and Modification	34
Section 11.2	Waiver of Compliance; Consent	34
Section 11.3	Notice	34
Section 11.4	Bulk Sales Laws	35
Section 11.5	Expenses	35

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Section 11.6	Assignment	35
Section 11.7	Governing Law	35
Section 11.8	Business Day	36
Section 11.9	Counterparts	36
Section 11.10	Headings	36
Section 11.11	Entire Agreement	36
Section 11.12	Warranty of Authority	36
Section 11.13	Publicity	36
Section 11.14	Waiver of Jury Trial	36
Section 11.15	Third Party Beneficiaries	36
Section 11.16	Interpretation	36
Section 11.17	Submission to Jurisdiction	37
Section 11.18	Severability	37

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LIST OF EXHIBITS AND SCHEDULES

Exhibit A        Facilities

Exhibit B        Purchase Price Allocation

Exhibit 9.2(a)(ii)    Form of Bill of Sale

Exhibit 9.2(a)(iii)    Form of Assignment and Assumption of Other Property

Exhibit 9.2(a)(v)    Form of FIRPTA Certificate

Exhibit 9.2(a)(vii)     Form of Seller Certificate

Exhibit 9.2(a)(xii)    Form of Master Lease

Exhibit 9.2(a)(xiii)    Form of Assignment of Membership Interests

Exhibit 9.2(b)(ii)    Form of Purchaser Certificate

Schedule 1        Required Approvals

Schedule 2.3        Permits and Licenses

Schedule 2.4        Governmental Approvals

Schedule 2.9        Real Estate Matters

Schedule 2.11 (a)    Environmental Matters

Schedule 2.11(b)    Hazardous Substances Storage

Schedule 2.11(c)    CERLCIS

Schedule 2.11(d)    Hazardous Substance Release

Schedule 2.12        Legal Proceedings

Schedule 2.15        Insurance

Schedule 2.16        Brokers

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INDEX OF DEFINED TERMS

As used herein the following terms shall have the meanings indicated below:

“Affiliate” shall mean, as applied to any Person, any other Person directly or indirectly controlling, controlled by or under common control with or by such Person. For purposes of this definition, “control” (including the terms “controlling,” “controlled by” and “under common control with”) will mean the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of a Person, whether through the ownership of voting securities or by contract or otherwise.

“Agreement” shall have the meaning set forth in the preamble.

“Ancillary Assets” shall have the meaning set forth in Section 1.1(b).

“Applicable Laws” shall mean all statutes, laws, ordinances, rules, regulations, requirements, judgments, orders and decrees of any Governmental Authority applicable to Sellers, Purchaser, and/or the Assets, including applicable zoning, building, safety and environmental laws, ordinances and codes and other federal, state and municipal requirements.

“Approvals” shall mean (i) all waivers, permits, consents, approvals or other authorizations from Governmental Authorities or third parties including joint venture partners, and (ii) all registrations, filings and notices with or to Governmental Authorities or third parties, in each case, as are required for Sellers to consummate the transactions contemplated by this Agreement.

“Assets” shall have the meaning set forth in Section 1.1(a).

“Assigned Records” shall have the meaning set forth in Section 1.1(a)(v).

“Assumed Liabilities” shall have the meaning set forth in Section 1.6.

“Break Up Fee” shall mean Seven Million Five Hundred Thousand Dollars ($7,500,000).

“Books and Records” shall have the meaning set forth in Section 1.1(a)(vi).

“Business” shall have the meaning set forth in the recitals.

“Business Day” shall mean any day other than a Saturday, Sunday or any other day on which banks are authorized to be closed in the State of New York. Time is of the essence with respect to all terms, provisions, covenants and conditions contained in this Agreement.

“Casualty Event” shall mean damage or loss to or destruction by fire or other casualty of any one or more of the Facilities, the costs of repair for which are reasonably estimated to exceed Ten Million Dollars ($10,000,000) in the aggregate.

“Closing” shall have the meaning set forth in Section 1.2.

“Closing Date” shall have the meaning set forth in Section 1.2.

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“Closing Statement” shall have the meaning set forth in Section 9.2(a)(ix).

“Code” shall mean the Internal Revenue Code of 1986, as amended, and the rules and regulations promulgated thereunder.

“Common Products” shall have the meaning set forth in Section 2.11(b).

“Confidential Information” shall mean all non-public, proprietary or confidential information that any Party obtains from the other in connection with, or pursuant to, this Agreement.

“Contracts” shall have the meaning set forth in Section 1.1(b)(vi).

“Copied Records” shall have the meaning set forth in Section 1.1(a)(vi).

“Data Site” shall mean the data site created by Sellers at http://holidayretirement.firmex containing information related to the Assets.

“Disclosure Schedules” shall have the meaning set forth in Article II.

“Effective Date” shall have the meaning set forth in the preamble.

“Environmental Laws” shall have the meaning set forth in Section 2.11.

“Excluded Assets” shall have the meaning set forth in Section 1.1(b).

“Excluded Documents” shall have the meaning set forth in Section 1.1(b)(iii).

“Excluded Liabilities” shall have the meaning set forth in Section 1.7.

“Excluded Provisions” shall have the meaning set forth in Section 4.8.

“Facility” or “Facilities” shall have the meaning set forth in the recitals.

“Facility Balance Sheets and Income Statements” shall have the meaning set forth in Section 2.5.

“Facility Material Adverse Effect” shall mean, with respect to any Facility, any event, occurrence, change or effect that is, or is reasonably likely in the future to be, individually or in the aggregate materially adverse to the business, operations, results of operations, condition (financial or otherwise), properties (including intangible properties), rights, obligations or assets of such Facility; provided, however, that a Facility Material Adverse Effect shall not include any event, change or effect arising out of or relating to (i) general political, economic or financial market conditions (or changes in such conditions), (ii) changes generally affecting the industries in which such Facility operates, (iii) any change in Applicable Law or interpretations thereof by a Governmental Authority thereof or any change in GAAP or other accounting principles or requirements, (iv) any natural disaster, epidemic, acts of terrorism, sabotage or war, including any escalation or general worsening of any such events, changes or events, (v) the execution, delivery or announcement of this Agreement if done in accordance with the terms of this Agreement (including as to the identity of the Purchaser) or the pendency or consummation of the transactions contemplated hereunder, including any losses or threatened losses of employees,

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customers, suppliers, distributors or others having relationships with the Sellers and their Affiliates, (vi) any failure to meet any internal or published projections, forecasts or revenue or earnings predictions for any period ending on or after the Effective Date, (vii) compliance with the terms of, or the taking of any action permitted or required by, this Agreement or with the prior written consent or at the direction of the Purchaser (or any action not taken as a result of a failure of the Purchaser to consent to an action otherwise requiring the Purchaser’s consent) or (viii) any of the items listed in the Disclosure Schedules.

“Financial Statements” shall have the meaning set forth in Section 1.1(a)(vi).

“Governmental Authority” shall mean any court, board, agency, commission, office or authority of any nature whatsoever for any governmental unit (federal, state, county, district, municipal, city, foreign or otherwise) whether now or hereafter in existence having jurisdiction over any Seller, any of the Assets, or Purchaser, as applicable.

“Hazardous Substance” shall have the meaning set forth in Section 2.11.

“Immaterial Taking” shall mean any condemnation or taking by any Governmental Authority with respect to one or more Facilities other than a condemnation or taking which renders such Facility or Facilities less than a functional structure in all material respects within which to continue to operate the Business thereon and the portion of the Purchase Price allocated to such Facility or Facilities pursuant to Section 1.7 of this Agreement is in excess of Ten Million Dollars ($10,000,000).

“Improvements” shall mean, collectively, the Seller Improvements.

“Indebtedness” means, for any Person, without duplication: (a) all indebtedness of such Person for borrowed money (including the principal amount thereof, any accrued interest thereon and any prepayment premiums or termination fees with respect thereto), for amounts drawn under a letter of credit, or for the deferred purchase price of property for which such Person is liable, (b) all unfunded amounts under a loan agreement, letter of credit (unless secured in full by cash), or other credit facility for which such Person would be liable or subject, if such amounts were advanced under the credit facility, (c) any indebtedness arising under any capital lease, conditional sales contract and other similar title retention instrument, whether short term or long term, (d) all liabilities, including judgments, secured by any Liens on any of the Assets, (e) all liabilities under any interest rate protection agreement, interest rate future agreement, interest rate option agreement, interest rate swap agreement or other similar agreement designed to protect the Seller against fluctuations in interest rates, (f) any indebtedness evidenced by any note, bond, debenture mortgage or other debt instrument or debt security, (g) all interest, fees and other expenses owed with respect to indebtedness described in the foregoing clauses (a) through (f), and (h) all indebtedness referred to in the foregoing clauses (a) through (g) which is directly or indirectly guaranteed by any Seller or that is secured by the Assets.

“Inspection Period” means the period beginning on the Effective Date and ending at 6:00 p.m. ET on the seven (7) day anniversary of the Effective Date.

“Indemnified Party” shall have the meaning set forth in Section 7.3(b).

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“Indemnifying Party” shall have the meaning set forth in Section 7.3(b).

“Initial Surveys” shall have the meaning set forth in Section 4.4(a).

“Initial Title Commitments” shall have the meaning set forth in Section 4.4(a).

“Inventory” shall have the meaning set forth in Section 1.1(b)(x).

“Land” shall mean, collectively, the Seller Land.

“Leases” shall have the meaning set forth in Section 1.1(b)(v).

“Legal Proceedings” shall have the meaning set forth in Section 2.12.

“License” or “Licenses” shall have the meaning set forth in Section 2.3.

“Lien” shall mean any lien, claim, charge, encumbrance, security interest, mortgage, pledge, easement, or conditional sale or other title retention contract.

“Manager” shall mean Harvest Management Sub LLC.

“Master Lease” shall have the meaning set forth in Section 9.2(a)(xii).

“Master Tenant” shall have the meaning set forth in Section 9.2(a)(xii).

“Monetary Lien Condition” shall mean the removal of any and all Liens securing the Outstanding Debt.

“Myrtle Beach Fee Owner” shall mean Myrtle Beach Retirement Residence LLC.

“Myrtle Beach Seller” shall mean Harvest Managing Member II, LLC and Harvest Mezzanine II LLC.

“Myrtle Beach Fee Owner Assets” shall have the meaning set forth in Section 4.8.

“New Manager” shall mean Holiday AL Management Sub LLC.

“New Title Matter” shall have the meaning set forth in Section 4.4(b).

“OFAC” shall have the meaning set forth in Section 2.17.

“Other Property” shall have the meaning set forth in Section 1.1(a)(iii).

“Outside Date” shall mean December 31, 2013.

“Outstanding Debt” means indebtedness evidenced by the following agreement: Loan Agreement (as amended, restated, supplemented or modified from time to time), dated as of February 28, 2007, by and among the borrowers identified therein and Citigroup Global Markets

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Realty Corp., and Goldman Sachs Commercial Mortgage Capital, L.P., as succeeded by Fannie Mae, in the original principal amount of $1,756,094,352.47.

“Outdated Initial Surveys” shall have the meaning set forth in Section 4.4(b)

“Party” or “Parties” shall have the meaning set forth in the preamble.

“Permitted Liens” shall have the meaning set forth in Section 4.4(b).

“Person” shall mean an individual, partnership, joint venture, corporation, trust, estate, association, Governmental Authority or other legal entity.

“Personal Property” shall have the meaning set forth in Section 1.1(a)(iv).

“Proprietary Software” shall have the meaning set forth in Section 1.1(b)(ix).

“Purchase Price” shall have the meaning set forth in Section 1.3.

“Purchaser” shall have the meaning set forth in the preamble.

“Purchaser Basket” shall have the meaning set forth in Section 7.2(b).

“Purchaser Certificate” shall have the meaning set forth in Section 9.2(b)(ii).

“Purchaser Documents” shall have the meaning set forth in Section 9.2(b).

“Purchaser Indemnified Losses” shall have the meaning set forth in Section 7.1(a).

“Purchaser Indemnified Parties” shall have the meaning set forth in Section 7.1(a).

“Purchaser Knowledge Individuals” shall have the meaning set forth in Article III.

“Purchaser Material Adverse Effect” shall mean, with respect to the Purchaser, a material adverse effect on the ability of the Purchaser to timely perform its obligations hereunder or under any Purchaser Documents or to timely consummate the transactions contemplated by this Agreement.

“Purchaser Representative” shall have the meaning set forth in Section 4.3(b).

“Purchaser’s Expenses” shall mean all actual out-of-pocket costs and expenses incurred by the Purchaser in connection with the transactions contemplated by this Agreement, including, without limitation, due diligence expenses, legal expenses, and expenses in connection with preparations for Closing, but, excluding any hedging costs; providedhowever, Purchaser’s Expenses, for which the Sellers may have a reimbursement obligation hereunder, shall not include any underwriting fees, discounts, commissions or similar expenses incurred in connection with any equity offering or debt financing.

“Purchaser’s Knowledge” shall have the meaning set forth in Article III.

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“Required Approvals” shall mean those Approvals listed on Schedule 1.

“Reimbursement Cap” shall mean Seven Hundred and Fifty Thousand Dollars ($750,000).

“Resident Records” shall have the meaning set forth in Section 1.1(b)(viii).

“Section 4.3 Indemnified Parties” shall have the meaning set forth in Section 4.3(b).

“Seller” or “Sellers” shall have the meaning set forth in the preamble.

“Seller Basket” shall have the meaning set forth in Section 7.1(b).

“Seller Certificate” shall have the meaning set forth in Section 9.2(a)(vii).

“Seller Documents” shall have the meaning set forth in Section 9.2(a).

“Seller Improvements” shall have the meaning set forth in Section 1.1(a)(i).

“Seller Indemnified Losses” shall have the meaning set forth in Section 7.2(a).

“Seller Indemnified Parties” shall have the meaning set forth in Section 7.2(a).

“Seller Knowledge Individuals” shall have the meaning set forth in Article II.

“Seller Land” shall have the meaning set forth in Section 1.1(a)(i).

“Seller Material Adverse Effect” shall mean any event, occurrence, change or effect that is, or is reasonably likely in the future to be, individually or in the aggregate materially adverse to the business, operations, results of operations, condition (financial or otherwise), properties (including intangible properties), rights, obligations or assets of the Facilities or the Business, in each case taken as a whole; provided, however, that a Seller Material Adverse Effect shall not include any event, change or effect arising out of or relating to (i) general political, economic or financial market conditions (or changes in such conditions), (ii) changes generally affecting the industries in which the Facilities operate, (iii) any change in Applicable Law or interpretations thereof by a Governmental Authority or any change in GAAP or other accounting principles or requirements, (iv) any natural disaster, epidemic, acts of terrorism, sabotage or war, including any escalation or general worsening of any such events, changes or events, (v) the execution, delivery or announcement of this Agreement if done in accordance with the terms of this Agreement (including as to the identity of the Purchaser) or the pendency or consummation of the transactions contemplated hereunder, including any losses or threatened losses of employees, customers, suppliers, distributors or others having relationships with the Sellers and their Affiliates, (vi) any failure to meet any internal or published projections, forecasts or revenue or earnings predictions for any period ending on or after the Effective Date, (vii) compliance with the terms of, or the taking of any action permitted or required by, this Agreement or with the prior written consent or at the direction of the Purchaser (or any action not taken as a result of a failure of the Purchaser to consent to an action otherwise requiring the Purchaser’s consent) or (viii) any of the items listed in the Disclosure Schedules.

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“Seller Real Property” shall have the meaning set forth in Section 1.1(a)(ii).

“Seller Representations” shall have the meaning set forth in Article II.

“Seller Response Period” shall have the meaning set forth in Section 4.4(b).

“Sellers’ Knowledge” shall have the meaning set forth in Article II.

“Survival Period” shall have the meaning set forth in Section 7.4(a).

“Surviving Obligations” shall mean those obligations which expressly survive termination of this Agreement or the Closing, as applicable.

“Title Company” shall have the meaning set forth in Section 4.4(a).

“Title Matters” shall have the meaning set forth in Section 4.4(b).

“Title Objection Notice” shall have the meaning set forth in Section 4.4(b).

“Title Objection Response Notice” shall have the meaning set forth in Section 4.4(b).

“Title Policy” or “Title Policies” shall have the meaning set forth in Section 4.4(c).

“Transfer Taxes” shall have the meaning set forth in Section 9.4(a).

“Unsatisfied Party” shall have the meaning set forth in Section 8.4.

“Updated Report” shall have the meaning set forth in Section 4.7.

“Yardley Fee Owner” shall mean Voorhees Retirement Residence LLC.

“Yardley Seller” shall mean Harvest Managing Member II, LLC and Harvest Mezzanine II LLC.

“Yardley Fee Owner Assets” shall have the meaning set forth in Section 4.8.

“Work Product” shall have the meaning set forth in Section 1.1(a)(iii).

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PURCHASE AGREEMENT

THIS PURCHASE AGREEMENT (this “Agreement”), dated as of this 18^th day of November, 2013 (the “Effective Date”), is made and entered into by and among the entity set forth under the heading “Purchaser” on the signature pages hereto (the “Purchaser”), each entity set forth under the heading “Seller” on the signature pages hereto (individually a “Seller” and, together, the “Sellers”). Each entity comprising the Sellers and the Purchaser is sometimes referred to herein individually as a “Party” and collectively as the “Parties.”

RECITALS

A.    Each Seller is in the business (the “Business”) of owning, operating and maintaining the senior living facility identified next to such Seller’s name, on Schedule 2.9 (each such facility, a “Facility” and, collectively, the “Facilities”).

B.     The Purchaser desires to purchase and acquire from the Sellers, and the Sellers desire to sell and transfer to the Purchaser, all of the Assets (as defined herein), on the terms and conditions set forth in this Agreement.

Now, therefore, in consideration of the representations, warranties and covenants herein contained, the Parties agree as follows.

ARTICLE I
PURCHASE AND SALE

Section 1.1    Transfer.

(a)    For the consideration hereinafter provided, in accordance with the terms and subject to the conditions in this Agreement, at the Closing the Sellers shall sell, convey, transfer and assign to the Purchaser, and the Purchaser shall purchase and acquire from the Sellers, free and clear of all Liens, other than Permitted Liens, the Sellers’ right, title and interest in and to, the following (specifically excluding the Excluded Assets, hereinafter collectively referred to as the “Assets”):

(i)    the land, as more particularly described in Exhibit A (collectively, the “Seller Land”), and all buildings, structures, fixtures, facilities, amenities, driveways, walkways, parking lots and other improvements located on the Seller Land (collectively, the “Seller Improvements”);

(ii)     all easements, rights-of-way, rights of ingress and egress, strips, zones, licenses, transferable hereditaments, privileges, tenements and appurtenances in any way belonging to or appertaining to the Seller Land or the Seller Improvements, and any right or interest in any open or proposed highways, streets, roads, avenues, alleys, easements, strips, gores and rights-of-way in, across, in front of, contiguous to, abutting or adjoining the Seller Land (collectively with the Seller Land and the Seller Improvements, the “Seller Real Property”);

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(iii)    (A) to the extent any Seller’s interest is assignable pursuant to Applicable Law and to the extent the Purchaser in its sole discretion elects to assume the same, all licenses, permits, approvals, entitlements, land use applications, land use permits and approvals, other operating permits and other governmental authorizations (including certificates of occupancy) issued by any Governmental Authority for the benefit of the Seller Real Property in connection with the ownership, operation, planning, development, use or maintenance of any Seller Real Property and the Business, as applicable, that an operator of a Facility would not be required to maintain in its own name but which may be held by the owner of the Seller Real Property separate and apart from those permits required to be maintained in the name of the operator of a Facility under Applicable Law, (B) all rights and work product under outstanding construction, service, consulting, engineering, architectural, design and construction agreements relating exclusively to the Seller Real Property (the “Work Product”), (C) to the extent assignable, all construction warranties, manufacturers’ warranties and other warranties applicable to the Seller Real Property or the Business, and (D) all development rights related to any portion of any Seller Real Property (collectively, the “Other Property”);

(iv)    all furniture, appliances, equipment, fixtures, and other tangible personal property owned by the Sellers and which is used by the Sellers in connection with the Business (collectively, and together with the Inventory, the “Personal Property”);

(v)    except for the Excluded Documents, the following documents that relate exclusively to the Seller Real Property: (A) third party reports and studies (excluding appraisals), land surveys, structural reviews, environmental assessments or audits, architectural drawings and engineering, geophysical, soils, seismic, geologic, environmental (including with respect to the impact of materials used in the construction or renovation of the Improvements) and architectural reports, studies and certificates pertaining to the Seller Real Property, and (B) building designs ((A) and (B) collectively, the “Assigned Records”);

(vi)    copies of the following records (the parties agreeing that the originals and all other rights associated therewith shall be retained by the Sellers): (A) accounting records, including billing records and invoices, (B) regulatory surveys and reports and incident tracking reports and (C) all financial statements and other accounting, tax, financial and other books and records, in each case, relating exclusively to the use, maintenance and operation of the Seller Real Property and any Facility and/or the Business (collectively, the “Financial Statements”), but excluding any Excluded Documents (collectively, the “Copied Records,” and, together with the Assigned Records, the “Books and Records”); and

(vii)    one hundred percent (100%) of the membership interests in the Myrtle Beach Fee Owner and the Yardley Fee Owner.

(b)    Notwithstanding anything to the contrary contained herein, no Seller shall sell, assign, transfer, convey or deliver to the Purchaser, and the Purchaser shall not purchase, and the Assets shall not include any of the Sellers’ right, title and interest in the following items (collectively, the “Excluded Assets”):

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(i)    any bank accounts, cash, cash equivalents, securities and accounts receivable, prepaid accounts, deposits and advance payments made by the Sellers and held by third parties with respect to any of the Assets or the Business, real estate tax, insurance, maintenance, replacement and other escrows, reserves and impounds held in connection with any loans and any causes of action (but only to the extent such causes of action relate to periods prior to the Closing);

(ii)    refunds, rebates and dividends paid in respect of insurance premiums paid by the Sellers relating to periods prior to the Closing Date, and refunds and additional recoveries by or payments to the Sellers from any Person for services, goods or supplies which were provided by such Person to the Sellers prior to the Closing Date;

(iii)    the following books and records: income tax returns and records, minute books and other books and records relating solely to the corporate or similar governance of each Seller as a legal entity (collectively, the “Excluded Documents”);

(iv)    originals of the Copied Records;

(v)    all leases of all machinery, equipment and other tangible property leased to any Sellers which are used exclusively at the Seller Real Property and all leases of any portion of each Facility by any Sellers to any third party other than a resident (the “Leases”);

(vi)    the agreements and contracts entered into in connection with the operation of each Facility by the Sellers, Manager or certain affiliates thereof, as applicable (the “Contracts”);

(vii)    the residency agreements together with any leads regarding prospective residents;

(viii)    all records and reports relating to residents at the Facilities, (collectively, the “Resident Records”);

(ix)    all licensed software and proprietary software (the “Proprietary Software”) used in the operation of the Facilities;

(x)    all materials, supplies, inventory, consumables, perishable and nonperishable food products, and other similar tangible property used exclusively in connection with the Business and located on the Seller Real Property (collectively, the “Inventory”);

(xi)    all motor vehicles used by the Sellers in connection with the Business; and

(xii)    the trademarks, trade names, service marks, web addresses and telephone numbers used in connection with the Assets.

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Notwithstanding anything to the contrary contained in this Agreement, any correspondence and/or communications between counsel, on the one hand, and the Sellers whether or not covered by attorney-client privilege, and whether or not related to the transactions contemplated by this Agreement shall remain the property of the Sellers and the Sellers shall have no obligation to deliver the same to the Purchaser.

Purchaser and each Seller agree that, upon entry into the Master Lease, all property, assets, contracts and permits necessary for the operation of the Assets consistent with past practice that are owned or controlled by the Sellers immediately prior to the Closing, including, without limitation, the Contracts, the Leases and residency agreements (the “Ancillary Assets”), shall be leased, assigned, licensed or otherwise made available to Master Tenant pursuant to the terms of the Master Lease. In connection therewith, Purchaser hereby directs the Sellers to, upon the Closing, assign all Ancillary Assets owned or leased by Sellers after taking into account the transactions described herein, excluding the Work Product (which Work Product shall be licensed to the Master Tenant pursuant to the Master Lease), to Master Tenant, for and on behalf of Purchaser.

Section 1.2    Closing.

(a)    Unless this Agreement shall have been terminated pursuant to Article X, the closing of the transactions contemplated herein (the “Closing”) shall occur on December 20, 2013 or as soon as possible thereafter. The date on which the Closing occurs is hereinafter referred to as the “Closing Date”. The Closing hereunder shall be deemed to be effective as of 11:59 p.m. (ET) on the Closing Date.

(b)    If the Purchaser does not obtain equity or debt financing for the acquisition of the Assets on or prior to December 20, 2013, the Purchaser, at its option, may extend the Closing up to and including the Outside Date by delivering written notice thereof to the Sellers on or prior to such date, provided that, in no event may the Purchaser extend the Closing beyond the Outside Date (except as provided pursuant to Section 4.4(b)).

(c)    If the Sellers do not satisfy the Monetary Lien Condition on or prior to December 20, 2013, the Sellers, at their option, may extend the Closing up to and including the Outside Date by delivering written notice thereof to the Purchaser on or prior to such date, provided that, in no event may the Sellers extend the Closing beyond the Outside Date (except as provided pursuant to Section 4.4(b)).

(d)    Notwithstanding anything to the contrary contained herein, if the Purchaser elects to extend the date of Closing pursuant to Section 1.2(b), any closing condition that was satisfied as of December 20, 2013 shall be deemed satisfied as of the extended closing date (notwithstanding any change of circumstance that would result in the failure of such condition).

Section 1.3    Purchase Price. The aggregate purchase price for the Assets shall be Four Hundred Ninety One Million Dollars ($491,000,000) (the “Purchase Price”), subject to the prorations and further adjustments as provided for in this Agreement.

Section 1.4    Reserved.

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Section 1.5    Payment of Purchase Price. At the Closing, the Purchaser shall pay to Sellers the Purchase Price adjusted for any credits and additions for the benefit of the Purchaser and/or the Sellers as specified in Article IX. The Purchase Price, as adjusted per the foregoing sentence, shall be paid by wire transfer of immediately available federal funds to the Title Company and such funds shall then be disbursed to or for the benefit of the Sellers in accordance with the Closing Statement.

Section 1.6    Assumed Liabilities. From and after the Closing, the Purchaser shall assume and thereafter pay, perform or otherwise discharge, as and when the same shall become due and payable, subject to the terms and conditions of the Master Lease, all liabilities and all obligations arising out of or related to periods from and after the Closing, or as otherwise expressly set forth herein, with respect to all of the Assets (the “Assumed Liabilities”).

Section 1.7    Excluded Liabilities. “Excluded Liabilities” shall mean (i) any obligation or liability accruing, arising out of, or relating to acts or omissions of any Person in connection with the Assets, the Excluded Assets, the Facilities or the operation of the Business, in each case, prior to the Closing, (ii) any Indebtedness of any Seller, (iii) any obligation or liability accruing, arising out of, or relating to any of the Leases or Contracts for the period, in each case, prior to the Closing, (iv) any obligation or liability for any federal, state or local taxes, whether or not accrued, assessed or currently due and payable, related to the Assets, the Facilities or the Business for the period, in each case, prior to the Closing, (v) any civil or criminal obligation or liability accruing, arising out of, or relating to any acts or omissions of any Seller, any of their respective Affiliates or any of their respective directors, officers, employees and agents claims to violate any Applicable Laws, (vi) any obligation or liability accruing, arising out of, or relating to any federal, state or local investigations, claims or actions with respect to acts or omissions (or suspected or alleged acts or omissions) of any Seller, their respective Affiliates or any of their respective employees, agents, or vendors, (vii) any other obligation or liability, fixed or contingent, known or unknown, relating to or arising out of the ownership, operation or use of the Assets or the Facilities, or the operation of the Business, in each case, prior to Closing, (viii) any liability or obligation of the Sellers or its affiliates that is not an Assumed Liability; and (ix) any liability related to the Myrtle Beach Fee Owner or the Yardley Fee Owner, including, without limitation, all liabilities relating to (i) the ownership or operation of the Myrtle Beach Facility or the Yardley Commons Facility, in each case, relating to the period on or prior to the Closing, or (ii) the execution and delivery of the documents described in Section 9.2(a)(xiii) at the Closing.

Section 1.8    Allocation of Purchase Price. Sellers and the Purchaser agree that the Purchase Price shall be allocated among the Assets at the Closing as provided and as described in the allocation statement attached hereto as Exhibit B, which Exhibit B shall show the aggregate amount of the Purchase Price being allocated to each Facility. Within forty five (45) days following the Closing Date (or such other time period as reasonably agreed by Purchaser and Sellers), the Parties will mutually agree on the amount of the Purchase Price allocated to the Personal Property. The Sellers shall timely and properly prepare, execute (with the Purchaser, as required), file and deliver all such documents, forms and other information as the Purchaser may reasonably request to prepare and determine such allocation. Each Party hereby covenants and agrees (i) to timely file all forms (including IRS Form 8594) and tax returns required to be filed in connection with such allocation and (ii) to take no position on any income tax return or form,

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before any governmental agency charged with the collection of any income tax, in any judicial proceeding or otherwise with any Governmental Authority that is any way inconsistent with the terms of this Section 1.7, unless otherwise required by Applicable Law.

ARTICLE II
REPRESENTATIONS AND WARRANTIES OF THE SELLERS

The disclosure schedules attached hereto (the “Disclosure Schedules”) are arranged in sections and subsections corresponding to the numbered and lettered sections and subsections contained in this Agreement to which such sections and subsections of the Disclosure Schedules relate. Notwithstanding the foregoing, information disclosed in any section or subsection of the Disclosure Schedules shall be deemed to be disclosed with respect to all other sections or subsections of this Agreement. An exception to a representation or warranty in this Article II set forth in the Disclosure Schedules effectively modifies the corresponding representation or warranty in this Article II, notwithstanding whether such representation and warranty specifically references the Disclosure Schedules. Any fact or item disclosed in any section of the Disclosure Schedules shall not be deemed, solely by reason of such inclusion, to be material and shall not be employed as a point of reference in determining any standard of materiality under this Agreement. In connection with the remaking of representations and warranties as of the Closing (but not as to representations and warranties made as of the Effective Date), Sellers shall be permitted to update the Disclosure Schedules to accurately reflect the current state of matters as of the Closing.

Notwithstanding anything to the contrary contained herein, any reference in this Agreement to “Sellers’ Knowledge,” or words of similar import, shall be deemed to refer exclusively to the matters within the actual knowledge of Kai Hsiao, Scott Shanaberger and Christopher Bouchard (“Seller Knowledge Individuals”), which individuals are the individuals in the Sellers’ organization who are most knowledgeable of the matters set forth herein. As regards any representations or warranties in this Agreement that are qualified to the extent of “Sellers’ Knowledge”, the Seller Knowledge Individuals shall have a duty of reasonable inquiry of the appropriate persons employed by the Manager into the matters which are the subject of such representations or warranties; provided that, in no event will the Seller Knowledge Individuals have any duty of reasonable inquiry with respect to persons employed at the Facility level.

The Purchaser acknowledges and agrees that neither the Sellers nor any of their representatives or agents have made, nor are they making, any representations or warranties whatsoever regarding the Assets or the subject matter of this Agreement, express or implied, except for the Seller Representations, and that the Purchaser is not relying, and has not relied, on any representations or warranties whatsoever regarding the Assets or the subject matter of this Agreement, express or implied, except for the representations and warranties in this Agreement or in the Seller Documents delivered to Purchaser at the Closing (collectively, the “Seller Representations”).

Each Seller represents and warrants, as applicable, to the Purchaser, as of the Effective Date and as of the Closing Date (unless otherwise expressly provided), that except as set forth in the Disclosure Schedules:

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Section 2.1    Organization and Qualification.

(a)    (i) Each Seller is duly organized and validly existing and in good standing under the laws of the jurisdiction in which it is formed with all requisite power and authority to carry on its respective business as currently being conducted and to own or lease and operate the assets it owns or leases as and in the places now owned, leased or operated, respectively; and (ii) each Seller is duly qualified or licensed to do business and is in good standing in each jurisdiction in which the nature of its business or the ownership, management or operation of the Facilities makes such qualification or licensing necessary, other than in such jurisdictions where the failure to be so qualified or licensed, individually or in the aggregate, has not resulted in, and would not be reasonably expected to result in, a Seller Material Adverse Effect.

Section 2.2    Authority; Binding Effect; Approvals; No Conflicts; Capitalization.

(a)    (i) Each Seller has, and at the Closing each Seller will have, the requisite limited liability company or limited partnership right, power and authority, as applicable, to execute, deliver and perform its obligations with respect to this Agreement and its Seller Documents and (ii) the execution, delivery, performance and consummation of this Agreement, the applicable Seller Documents and all of the transactions contemplated herein and therein have been duly authorized and approved by all necessary partnership or limited liability company action of each Seller, as applicable.

(b)    This Agreement and each Seller Document, upon due execution and delivery by each Seller party thereto, will constitute the legal, valid, and binding obligation of such Seller, enforceable against such Seller in accordance with its terms, except as enforcement may be limited by bankruptcy, insolvency, reorganization, moratorium or similar laws relating to or limiting creditors’ rights generally or by application of equitable principles.

(c)    The execution, delivery and performance of this Agreement and the Seller Documents by each Seller party thereto does not and will not: (i) conflict with or result in any breach or violation of the provisions of, or constitute a default under the organizational documents of any Seller, (ii) subject to obtaining the Required Approvals, violate (or give rise to any right of termination, cancellation or acceleration under) any mortgage, deed of trust, license, permit, lease, indenture, contract, agreement, obligation, commitment, arrangement, understanding, instrument or other agreement or instrument, whether oral or written, to which any Seller is a party, or by which it or any of its assets are bound, or result in the termination of any such instrument or termination of any provisions in such instrument, in each case that would, individually or in the aggregate, have a Facility Material Adverse Effect; (iii) result in the creation or imposition of any Lien (other than Permitted Liens, and whether arising by contract or by operation of law) upon the Assets that would, individually or in the aggregate, have a Facility Material Adverse Effect; or (iv) violate any Applicable Law that would, individually or in the aggregate, have a Facility Material Adverse Effect.

(d)    The Myrtle Beach Seller owns 100% of the issued and outstanding membership or equity interests of the Myrtle Beach Fee Owner, free and clear of any Liens other than Permitted Liens. With respect to the Myrtle Beach Fee Owner, there are no outstanding: (i) securities convertible into or exchangeable for any membership interests or other securities of the

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Myrtle Beach Fee Owner; (ii) offers, subscriptions, options, “phantom” stock rights, stock appreciation rights, stock-based performance units, warrants, calls, commitments, preemptive rights or other rights of any kind (absolute, contingent or otherwise, including under employee benefit arrangements) entitling any Person to acquire or otherwise receive from the Myrtle Beach Fee Owner any membership interests or other securities or receive or exercise any benefits or rights similar to any rights enjoyed by or inuring to the holder of such securities of the Myrtle Beach Fee Owner; or (iii) contracts, commitments, agreements, understandings or arrangements (whether written or oral) of any kind relating to the issuance, conversion, registration, voting, sale repurchase or transfer of any membership interests or other securities of the Myrtle Beach Fee Owner, convertible or exchangeable securities, or any subscriptions, options, warrants or similar rights of the Myrtle Beach Fee Owner or granting to any Person any right to participate in the equity or income of the Myrtle Beach Fee Owner or to participate in or direct the election of any director or officer of the Myrtle Beach Fee Owner or the manner in which any membership interests or other securities of the Myrtle Beach Fee Owner are voted. There are no membership interests or other securities of the Myrtle Beach Fee Owner reserved for issuance for any purpose, or any agreement with respect to the transferability, purchase or redemption of any membership interests or other securities of the Myrtle Beach Fee Owner. The Myrtle Beach Fee Owner has not issued any membership interests or other securities in violation of any preemptive or similar rights. The Myrtle Beach Fee Owner does not, and has not since its formation, directly or indirectly (i) owned any subsidiaries, or (ii) held any equity or equity-linked interest in any Person.

(e)    The Yardley Seller owns 100% of the issued and outstanding membership or equity interests of the Yardley Fee Owner, free and clear of any Liens other than Permitted Liens. With respect to the Yardley Fee Owner, there are no outstanding: (i) securities convertible into or exchangeable for any membership interests or other securities of the Yardley Fee Owner; (ii) offers, subscriptions, options, “phantom” stock rights, stock appreciation rights, stock-based performance units, warrants, calls, commitments, preemptive rights or other rights of any kind (absolute, contingent or otherwise, including under employee benefit arrangements) entitling any Person to acquire or otherwise receive from the Yardley Fee Owner any membership interests or other securities or receive or exercise any benefits or rights similar to any rights enjoyed by or inuring to the holder of such securities of the Yardley Fee Owner; or (iii) contracts, commitments, agreements, understandings or arrangements (whether written or oral) of any kind relating to the issuance, conversion, registration, voting, sale repurchase or transfer of any membership interests or other securities of Yardley Fee Owner, convertible or exchangeable securities, or any subscriptions, options, warrants or similar rights of the Yardley Owner or granting to any Person any right to participate in the equity or income of the Yardley Fee Owner or to participate in or direct the election of any director or officer of the Yardley Fee Owner or the manner in which any membership interests or other securities of the Yardley Fee Owner are voted. There are no membership interests or other securities of the Yardley Fee Owner reserved for issuance for any purpose, or any agreement with respect to the transferability, purchase or redemption of any membership interests or other securities of the Yardley Fee Owner. The Yardley Fee Owner has not issued any membership interests or other securities in violation of any preemptive or similar rights. The Yardley Fee Owner does not, and has not since its formation, directly or indirectly (i) owned any subsidiaries, or (ii) held any equity or equity-linked interest in any Person.

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Section 2.3    Permits; Licenses. Schedule 2.3 sets forth all material permits, licenses and other authorizations issued and required by any Governmental Authority in connection with the ownership or operation of any Facility as conducted by the Sellers in accordance with past practice (each a “License”, collectively, the “Licenses”). Except as disclosed on Schedule 2.3, each License is in good standing and the Sellers have not received written notice that the Sellers are in violation of any License or any restriction, rule or regulation affecting possession and use thereof that would, individually or in the aggregate, have a Facility Material Adverse Effect.

Section 2.4    Governmental Approvals. Except as set forth in Schedule 2.4, to Sellers’ Knowledge (a) no Seller is required to submit any notice, report or other filing with any Governmental Authority in connection with its execution or delivery of this Agreement or any Seller Documents or the consummation of the transactions contemplated hereby, and (b) no consent, approval or authorization of any Governmental Authority is required to be obtained by any Seller in connection with the execution, delivery and performance of this Agreement.

Section 2.5    Financial Statements. The Sellers have provided the following financial statements with respect to each Facility in the Data Site at least five (5) days prior to the Effective Date: (i) balance sheets of each Facility as of December 31, 2011, December 31, 2012 and September 30, 2013, and (ii) income statements of each Facility for the twelve (12) month periods ended December 31, 2011 and December 31, 2012 and for the nine (9) month period ended September 30, 2013 ((i) and (ii) collectively, the “Facility Balance Sheets and Income Statements”). The Facility Balance Sheets and Income Statements are true, correct and complete in all material respects and present fairly the financial condition of each Facility as of their respective dates or for the periods indicated.

Section 2.6    Absence of Certain Changes, Events and Conditions. Since September 30, 2013, there has not been any event, occurrence or development that has had, or could reasonably be expected to have, individually or in the aggregate, a Seller Material Adverse Effect.

Section 2.7    Title to Personal Property. Seller has good and valid title to, or interest in, all of the Personal Property owned by the Sellers.

Section 2.8    Condition and Sufficiency of Assets. The Assets, when taken together with the Ancillary Assets, are sufficient for the continued conduct of the Business after the Closing in substantially the same manner as conducted prior to the Closing and constitute, when taken together with the Ancillary Assets, all of the rights, property and assets necessary to conduct the Business as currently conducted.

Section 2.9    Real Property. (a) Exhibit A sets forth the complete and accurate legal description of each parcel of Seller Real Property. Schedule 2.9 sets forth an accurate street address of each parcel of Seller Real Property. The Seller Real Property is all of the real property used in or necessary for the conduct of the Business as currently conducted. With respect to each parcel of the Sellers Real Property, the Sellers have good, valid and insurable fee simple title, free and clear of all Liens, except Permitted Liens.

(b)    To Sellers’ Knowledge, Sellers have not received any written notice of (i) violations that remain pending or unresolved of building codes and/or zoning ordinances or other

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governmental or regulatory laws affecting the Seller Real Property, (ii) existing, pending or threatened condemnation proceedings affecting the Seller Real Property, (iii) existing, pending or threatened zoning, building code or other moratorium proceedings, or similar matters, or (iv) any violation that remains pending or unresolved of any Applicable Law affecting the Seller Real Property, in each case, which could reasonably be expected to have, individually or in the aggregate, a Facility Material Adverse Effect.

Section 2.10    Compliance with Laws. The Sellers have operated the Business and have maintained the Assets in compliance with all Applicable Laws in all material respects.

Section 2.11    Hazardous Substances. For purposes of this Agreement, “Environmental Laws” means the Resource Conservation and Recovery Act (RCRA), 42 U.S.C. Section 6901 et seq., the Comprehensive Environmental Response, Compensation and Liability Act (CERCLA), 42 U.S.C. Sections 9601 et seq., the Clean Water Act, 33 U.S.C. Section 1251 et seq., the Toxic Substances Control Act, the Clean Air Act, 42 U.S.C. Section 7401 et seq., the Safe Drinking Water Act 42 U.S.C. Section 300(f) et seq. and all other applicable state, county, municipal, administrative or other environmental, hazardous waste or substance, ordinances, rules, regulations, judgments, and orders relating or pertaining to (A) the protection, preservation or reclamation of the environment or natural resources or (B) the management, release and threatened release of Hazardous Substances. For purposes of this Agreement, “Hazardous Substance” shall mean any and all substances, wastes, materials, pollutants, contaminants, compounds, chemicals or elements which are defined or classified as a “hazardous substance,” “hazardous material,” “toxic substance,” “hazardous waste,” “pollutant,” “contaminant” or words of similar import under any Environmental Law, including all dibenzodioxins and dibenzofurans, polychlorinated biphenyls (PCBs), petroleum hydrocarbon, including crude oil or any derivative thereof, asbestos-containing materials in any form, and radon gas.

(a)    Except as would not reasonably be expected to result in a Facility Material Adverse Effect or except as disclosed on Schedule 2.11(a) or in any Phase I environmental report made available to the Purchaser on the Data Site: (i) to Sellers’ Knowledge the operations of Sellers with respect to the Facilities and the other Assets are and have been in compliance with all material applicable Environmental Laws; and (ii) the Sellers have not received from any Person, with respect to the Seller Real Property, any (A) written notice or claim alleging liability or a breach of any Environmental Laws or (B) written request for information pursuant to Environmental Law, which, in each case, either remains pending or unresolved, or is the source of ongoing obligations or requirements as of the Closing Date.

(b)    Except as would not reasonably be expected to result in a Facility Material Adverse Effect or except as disclosed on Schedule 2.11(b) or in any Phase I environmental report made available to Purchaser on the Data Site, to Sellers’ Knowledge, Sellers do not currently store or use any Hazardous Substances at any Seller Real Property, except for Hazardous Substances used in the ordinary course of business at any Facility, including cleaning fluids, insecticides, medicines and similar items (the “Common Products”), which Common Products have been used, transported, stored and disposed of by the Sellers in compliance, in all material respects, with all applicable Environmental Laws.

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(c)    Except as would not reasonably be expected to result in a Facility Material Adverse Effect or except as disclosed on Schedule 2.11(c) or in any Phase I environmental report made available to the Sellers on the Data Site, to Sellers’ Knowledge none of the Seller Real Property is listed on, or has been proposed for listing on, the National Priorities List or the CERCLIS pursuant to the Comprehensive Environmental Response, Compensation and Liability Act, 42 U.S.C. § 9601, et. seq. or any similar state list.

(d)    Except as would not reasonably be expected to result in a Facility Material Adverse Effect or except as disclosed on Schedule 2.11(d) or in any Phase I environmental report made available to the Purchaser on the Data Site, to Sellers’ Knowledge there has been no release of Hazardous Substances in contravention of Environmental Law with respect to the Seller Real Property, and the Sellers have not received any written notice of any such release which would reasonably be expected to result in a claim under Environmental Laws or a violation of Environmental Laws or a violation of the term of any License issued to Sellers pursuant to applicable Environmental Laws.

(e)    The Sellers have, prior to the Effective Date, made available to the Purchaser on the Data Site for each Facility a copy of the most recent Phase I environmental reports, none of which are dated prior to the date which is six (6) months prior to the Effective Date, other than the report for the Bay Park Facility, which is dated June 20, 2012 and for the Silver Arrow Estates Facility, which is dated October 23, 2012.

Section 2.12    No Litigation. As of the Effective Date, and except as set forth in Schedule 2.12, there are no actions, suits, claims, arbitrations, governmental investigations or other legal or administrative proceedings (“Legal Proceedings”), or any orders, decrees or judgments in progress or pending in any state or federal court, or, any other local court or other tribunal, or, to Sellers’ Knowledge, threatened against any Seller relating to the Assets or the Seller Real Property which could reasonably be expected to have a Seller Material Adverse Effect.

Section 2.13    Employees. None of the Sellers has any employees. Seller is not a party to any collective bargaining agreement, and no collective bargaining agreement is currently being negotiated by the Sellers. To the Sellers’ Knowledge, no petitions for representation are currently filed against any Facility nor have any demands been made for recognition.

Section 2.14    ERISA. Seller does not hold any “plan assets” within the meaning of Section 3(42) of the Employee Retirement Income Security Act of 1974, as amended.

Section 2.15    Insurance. Schedule 2.15 contains a description of all insurance policies insuring the Facilities, as of the Effective Date. All such policies are in full force and effect, and to Sellers’ Knowledge, have been issued by licensed insurers, all premiums with respect thereto covering all periods up to and including the Closing Date have been paid, and none of the Sellers has received written notice of cancellation or termination with respect to any such policies that remains pending or unresolved. The insurance policies described in Schedule 2.15 are not being assigned or transferred to the Purchaser.

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Section 2.16    Brokers and Finders. Except as set forth in Schedule 2.16, no Seller has employed or engaged any investment banker, broker or finder in connection with the transactions contemplated by this Agreement who might be entitled to any fee or any commission in connection with or upon consummation of the Closing.

Section 2.17    OFAC. Neither the Sellers nor, to the Sellers’ Knowledge, any of their respective direct equity owners nor their respective officers or directors, is a person or entity with whom U.S. persons or entities are restricted from doing business under regulations of the Office of Foreign Asset Control of the Department of the Treasury (“OFAC”), (including those named on OFAC’s Specially Designated and Blocked Persons List) or under any similar statute, executive order (including the September 24, 2001, Executive Order Blocking Property and Prohibiting Transactions with Persons Who Commit, Threaten to Commit, or Support Terrorism) or other similar governmental regulations.

THE PURCHASER HEREBY ACKNOWLEDGES AND AGREES THAT, EXCEPT WITH RESPECT TO THE SELLER REPRESENTATIONS, THE ASSETS ARE HEREBY SOLD, AND THE PURCHASER SHALL TAKE AND ACCEPT TITLE TO AND POSSESSION OF THE ASSETS ON THE CLOSING DATE, “AS IS, WHERE IS, WITH ALL FAULTS,” WITH NO RIGHT OF SET-OFF, CONTRIBUTION, COST RECOVERY OR REDUCTION IN THE PURCHASE PRICE, AND THAT, EXCEPT FOR THE SELLER REPRESENTATIONS, SUCH SALE SHALL BE WITHOUT REPRESENTATION OR WARRANTY OF ANY KIND OR NATURE WHATSOEVER BY THE SELLERS, WHETHER EXPRESS, IMPLIED, STATUTORY, OR OTHERWISE, INCLUDING, WARRANTY OF INCOME POTENTIAL, OPERATING EXPENSES, USES, MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE, AND EACH SELLER DOES HEREBY DISCLAIM AND RENOUNCE ANY SUCH REPRESENTATION OR WARRANTY. THE PURCHASER SPECIFICALLY ACKNOWLEDGES THAT, EXCEPT FOR THE SELLER REPRESENTATIONS, THE PURCHASER IS NOT RELYING ON ANY REPRESENTATIONS OR WARRANTIES OF ANY KIND OR NATURE WHATSOEVER, WHETHER ORAL OR WRITTEN, EXPRESS, IMPLIED, STATUTORY, OR OTHERWISE, FROM SELLER AS TO ANY MATTERS CONCERNING THE ASSETS. THE PURCHASER FURTHER ACKNOWLEDGES AND AGREES THAT (A) EXCEPT FOR THE SELLER REPRESENTATIONS, THE PURCHASER IS RELYING SOLELY UPON THEIR OWN INSPECTION OF THE ASSETS AND NOT UPON ANY REPRESENTATIONS OR WARRANTIES MADE TO THEM BY ANY PERSON WHOMSOEVER, (B) EXCEPT AS PROVIDED HEREIN, ANY REPORTS, REPAIRS, OR WORK REQUIRED BY THE PURCHASER OR PROVIDED BY THE SELLERS TO THE PURCHASER IN CONNECTION WITH THE TRANSACTION CONTEMPLATED BY THIS AGREEMENT ARE TO BE THE SOLE RESPONSIBILITY OF THE PURCHASER AND (C) EXCEPT AS PROVIDED HEREIN, THERE IS NO OBLIGATION ON THE PART OF THE SELLERS TO MAKE ANY CHANGES, ALTERATIONS, OR REPAIRS TO THE ASSETS.

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ARTICLE III
REPRESENTATIONS AND WARRANTIES OF THE PURCHASER

The Purchaser represents and warrants to the Sellers, as of the Effective Date, as follows:

Section 3.1    Organization; Etc. The Purchaser is (i) duly organized and validly existing and in good standing under the laws of the jurisdiction in which it is formed with all requisite power and authority to carry on its business as currently being conducted and to own or lease and operate the assets it owns or leases as and in the places now owned, leased or operated; and (ii) the Purchaser is duly qualified or licensed to do business and is in good standing in the jurisdiction in which the nature of its business or the ownership, construction, management or operation of its assets makes such qualification or licensing necessary, other than in such jurisdictions where the failure to be so qualified or licensed, individually or in the aggregate, has not resulted in, and would not reasonably be expected to result in, a Purchaser Material Adverse Effect.

Section 3.2    Authority, Binding Effect.

(a)    The Purchaser has, and at the Closing the Purchaser will have, the requisite limited liability company right, power and authority, to execute, deliver and perform its obligations with respect to this Agreement and the Purchaser Documents. The execution, delivery, performance and consummation of this Agreement, the Purchaser Documents and all of the transactions contemplated herein and therein have been duly authorized and approved by all necessary limited liability action of the Purchaser.

(b)    This Agreement and the Purchaser Documents, upon due execution and delivery by the Purchaser, will constitute the legal, valid, and binding obligation of the Purchaser, enforceable against the Purchaser in accordance with its terms, except as enforcement may be limited by bankruptcy, insolvency, reorganization, moratorium or similar laws relating to or limiting creditors’ rights generally or by application of equitable principles.

(c)    The execution, delivery and performance of this Agreement and the Purchaser Documents by the Purchaser does not and will not: (i) conflict with or result in any breach or violation of the provisions of, or constitute a default under its organizational documents, (ii) violate any mortgage, deed of trust, license, permit, lease, indenture, contract, agreement, obligation, commitment, arrangement, understanding, instrument or other agreement or instrument, whether oral or written, to which the Purchaser is a party, or by which it or any of its assets are bound, or result in the termination of any such instrument or termination of any provisions in such instrument in each case that would, individually or in the aggregate, have a Purchaser Material Adverse Effect, or (ii) violate any Applicable Law.

Section 3.3    No Litigation. As of the Effective Date, the Purchaser is not a party to, or defending or subject to, any Legal Proceeding, nor, to Purchaser’s Knowledge, is any such Legal Proceeding threatened in each case, which would have a Purchaser Material Adverse Effect on the Purchaser’s ability to execute, deliver and perform this Agreement, the Purchaser Documents and any other documents and transaction contemplated hereby.

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Section 3.4    Governmental Approvals. To the Purchaser’s Knowledge, the Purchaser is not required to submit any notice, report or other filing with any Governmental Authority in connection with its execution or delivery of this Agreement or any Purchaser Document or the consummation of the transactions contemplated hereby and no consent, approval or authorization of any Governmental Authority is required to be obtained by the Purchaser in connection with the execution, delivery and performance of this Agreement.

Section 3.5    Brokers and Finders. Except as set forth in Section 3.5, the Purchaser has not employed or engaged any investment banker, broker or finder in connection with the transactions contemplated by this Agreement who might be entitled to any fee or any commission in connection with or upon consummation of the Closing.

Section 3.6    Available Funds. Upon the Closing, Purchaser will have immediately available to it, sufficient funds to pay the Purchase Price and all costs and expenses as required by this Agreement.

Notwithstanding anything to the contrary contained herein, any reference in this Agreement to “Purchaser’s Knowledge” or words of similar import shall be deemed to refer exclusively to matters within the actual knowledge of Justin Hutchens, Kevin Pascoe, Kristi Gaines (“Purchaser Knowledge Individuals”), which individuals are the individuals in Purchaser’s organization who are most knowledgeable of the matters set forth herein, but without any obligation to investigate or make inquiries of other Persons with respect to any of the representations and warranties contained in this Agreement. Without limiting the foregoing, Sellers acknowledges that the Purchaser Knowledge Individuals have not performed and are not obligated to perform any investigation or review of any files or other information in the possession of the Purchaser, or to make any inquiry of any persons, or to take any other actions in connection with the representations and warranties of the Purchaser set forth in this Agreement other than as required herein. Neither the actual, present, conscious knowledge of any other individual or entity, nor the constructive knowledge of the Purchaser Knowledge Individuals or of any other individual or entity, shall be imputed to the Purchaser Knowledge Individuals. Notwithstanding anything to the contrary contained in this Agreement, the Purchaser’s Knowledge shall be deemed to include the information provided on the Disclosure Schedules and the Phase I environmental reports and property condition reports for the Seller Real Property posted to the Data Site on or prior to the Effective Date.

ARTICLE IV
COVENANTS OF THE SELLERS

From and after the Effective Date and, subject to earlier termination of this Agreement, until the Closing, except as otherwise consented to or approved by the Purchaser in writing, the Sellers covenant and agree as follows:

Section 4.1    Interim Operating Covenants. Except as expressly contemplated by this Agreement, the Business shall be conducted in the ordinary course of business consistent with past practice, and the Sellers shall use commercially reasonable efforts to (a) maintain the Facilities, or cause the Facilities to be maintained, in substantially their condition as of the

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Effective Date, reasonable wear and tear, and casualty and condemnation, excepted; (b) comply in all material respects with all Applicable Laws; and (c) keep in full force and effect insurance policies with substantially the same terms as existing policies.

Section 4.2    Liens. The Sellers shall not create or permit to become effective any Liens upon the Assets, other than the Permitted Liens and any other Lien arising in the ordinary course of business and consistent with past practice so long as such other Lien is removed, satisfied or otherwise bonded over at or prior to the Closing, such that such Lien is not included as an exception to a Title Policy.

Section 4.3    Inspection Rights.

(a)    The Sellers shall, upon not less than forty-eight (48) hours prior notice from the Purchaser, at reasonable business hours and subject to the rights of residents under the residency agreements, the Leases and all Applicable Laws, afford to the Purchaser reasonable access, subject to the Purchaser’s obligation to comply with this Agreement, (i) to the Seller Real Property in order to examine and inspect such Seller Real Property, including the Books and Records and (ii) to meet with the managers at the Facilities; provided, however, such access shall not include the right to meet with any residents, any tenants or any other employees of the Manager; provided, further, however, Sellers and/or their agents shall be given the opportunity and permitted to supervise all meetings, calls or other contact or communications with the Sellers’ personnel including but not limited to meetings with the managers at the Facilities.

(b)    The Purchaser shall use commercially reasonable efforts to not cause damage, loss, cost or expense to the Seller Real Property, the Facilities, the Sellers, any residents, any tenants, the Manager and its employees or any invitee at any Facility (collectively, the “Section 4.3 Indemnified Parties”). To the extent of any damage caused by the Purchaser or any agent, representative or contractor or other Person entering onto the Seller Real Property on behalf of, or at the direction of, the Purchaser (each a “Purchaser Representative”) to the Seller Real Property, any Facility or assets located thereat, the Purchaser shall promptly restore such property to its condition immediately preceding such inspections and examinations and shall keep all such property free and clear of any mechanic’s liens or materialmen’s liens arising as a result such inspections and investigations (and promptly cause, at the Purchaser’s sole cost and expense, the removal of any such mechanic’s liens or materialmen’s liens). The Purchaser shall indemnify, defend, and hold harmless for, from, and against any and all claims, liabilities costs and/or expenses incurred by any such Section 4.3 Indemnified Party in connection with, or as a result of, the entry of any Purchaser Representative onto the Seller Real Property or resulting from the action or inaction of any of the Purchaser Representatives while at the Seller Real Property prior to the Closing Date including, costs and expenses arising or resulting from (i) loss, injury to or death of any Purchaser Representative or any Section 4.3 Indemnified Party, as applicable (waiving all limitations under workers’ compensation), and (ii) any loss, damage, cost and/or expense to or destruction of any property owned by any Section 4.3 Indemnified Party (including claims or liabilities for loss of use of any property).

(c)    The obligations of the Purchaser under this Section 4.3 shall survive the Closing or earlier termination of this Agreement.

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Section 4.4    Title Insurance and Surveys.

(a)    Prior to the Effective Date, the Sellers have provided to the Purchaser (i) title commitments for each Seller Real Property (collectively, the “Initial Title Commitments”), issued by First American Title Insurance Company (the “Title Company”), together with copies of all recorded exceptions to title referred to therein and (ii) a survey of each Seller Real Property (collectively, the “Initial Surveys”). All matters contained in the Initial Title Commitments and Initial Surveys are hereinafter referred to as the “Existing Title Matters”. On or before the expiration of the Inspection Period, the Purchaser shall have the right to object, in writing and in its reasonable discretion, to an Existing Title Matter that (i) has a material adverse effect on the current use and value of a Facility or (ii) may be removed or cured by the payment of a readily ascertainable amount, by delivering a written notice to Sellers specifying any Existing Title Matter to which the Purchaser objects (such notice being referred to herein as the “Existing Title Objection Notice”). The failure of the Purchaser to object to any Existing Title Matter within said period shall be deemed a waiver by the Purchaser of its right to object to such Existing Title Matter and, in such event, such Existing Title Matter shall be deemed approved by the Purchaser and shall be a Permitted Lien.

(b)    The Sellers acknowledge that certain of the Initial Surveys provided in the Data Site were completed more than ninety (90) days prior to the Effective Date (the “Outdated Initial Surveys”). On or before the expiration of the Inspection Period, Seller will provide in the Data Site updates (or new surveys, as the case may be) to the Outdated Initial Surveys that will have been prepared recently enough to reasonably satisfy the Purchaser and the Title Company. In addition, prior to the Closing Date, the Purchaser shall have the right to order updates to the Initial Title Commitments and/or Initial Surveys, and in the event that any such update reveals any new matter not previously shown or disclosed on the Initial Title Commitments or Initial Surveys which (i) would reasonably be expected to have a material adverse effect on the current use and value of a Facility or (ii) may be removed or cured by the payment of a readily ascertainable amount (each, a “New Title Matter”), the Purchaser shall have the right to object, in writing and in its reasonable discretion, to such New Title Matter by the earlier of (i) the Closing Date and (ii) the date which is three (3) Business Days after receipt of such update, as applicable, with any such objection notice specifying any New Title Matter to which the Purchaser objects (such notice being referred to herein as the “New Title Objection Notice”) (the Existing Title Objection Notice and the New Title Objection Notice are hereinafter collectively referred to as the “Title Objection Notice”). The failure of the Purchaser to object to any New Title Matter within said period shall be deemed a waiver by the Purchaser of its right to object to such New Title Matter and, in such event, such New Title Matter shall be deemed approved by the Purchaser and shall be a Permitted Lien. Notwithstanding the foregoing, the Purchaser shall not have the right to disapprove any of the following, all of which (together with all other matters deemed approved by the Purchaser pursuant to terms hereof) shall be deemed to be “Permitted Liens” hereunder: (A) matters created or consented to in a separate written consent by the Purchaser, (B) the Assumed Liabilities, (C) all Liens for taxes, assessments, water rates, water meter charges, water frontage charges and sewer taxes, rents and charges, if any, provided that such items are not due and payable. If the Purchaser delivers a Title Objection Notice to the Sellers within either of the above-described periods, the Sellers shall have three (3) Business Days after receipt of the Title Objection Notice (such period is the “Seller Response Period”) in which to send the Purchaser a written notice (the “Title Objection Response Notice”)

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informing the Purchaser of which Existing or New Title Matters (collectively the “Title Matters”), as applicable, the Sellers will and will not agree to cure prior to the Closing Date (as the same may be extended as provided herein). If the Sellers fail to deliver the Title Objection Response Notice with respect to any Title Matters to the Purchaser on or before the expiration of the Seller Response Period, the Sellers shall be deemed to have refused to cure such Title Matter. The Closing Date may be extended by the Sellers to accommodate the giving of notices and the cure periods contemplated herein, provided that the Closing Date shall not be extended by the Sellers for a period beyond the date which is ten (10) days after the last Title Objection Notice is delivered by Purchaser, for the purposes of curing any Title Matter to which the Purchaser has objected and which the Sellers have informed the Purchaser they have agreed to cure and, in such event, the Closing shall occur upon the curing of such Title Matters. If the Sellers are unable after using commercially reasonable efforts (considered in the context of the allotted time) during such period to cure any such Title Matter, the Sellers shall be deemed to have refused to cure such Title Matter. If the Sellers refuse (or are deemed to have refused) to cure any Title Matter set forth in the Title Objection Notice, the Purchaser shall have three (3) Business Days after receipt of Sellers’ Title Objection Response Notice (or, if Seller has not responded to the Title Objection Notice, then within three (3) Business Days following the expiration of the Seller Response Period) in which to advise the Sellers in writing of the Purchaser’s election (x) to waive its objection to the Title Matters that Sellers either refused to cure, or could not cure, and to proceed to the Closing or (y) to terminate this Agreement, in which event the Parties shall have no further obligations or liabilities under this Agreement other than the Surviving Obligations, which, solely to the extent this Agreement was terminated due to Purchaser objecting to Title Matters consented to or created by the Sellers, shall include the obligation of the Sellers to reimburse the Purchaser in the amount equal to the lesser of (i) Purchaser Expenses and (ii) the Reimbursement Cap in accordance with Section 10.1(d) hereof. If the Purchaser does not terminate this Agreement pursuant to the preceding sentence, then all Title Matters appearing in the Title Objection Notice that Sellers either did not agree to cure (as set forth in the Title Objection Response Notice) or could not cure by Closing shall be deemed Permitted Liens. The Purchaser agrees that the Sellers may cure any objectionable matter by causing the Title Company to remove the same as an exception in the applicable Title Policy or to affirmatively insure over such matter.

(c)    The title insurance policies issued to the Purchaser as of the Closing shall be dated as of the date of Closing, insure the fee simple interest of the Purchaser in the Seller Real Property in the form of the Pro Forma 2006 ALTA Title Policies, subject to only the Permitted Liens (each a “Title Policy” and collectively the “Title Policies”) and cover the “gap period”. The Sellers and the Purchaser shall execute customary affidavits, gap indemnities and other instruments, in forms reasonably agreed by the party(ies) thereto, as reasonably requested by the Title Company to cause the Title Company to issue the Title Policies.

Section 4.5    Further Assurances. In addition to the acts and deeds recited herein and contemplated to be performed, executed or delivered by the Sellers, the Sellers hereby agree to perform, execute and deliver, or cause to be performed, executed and delivered, on the Closing Date or thereafter any and all such further acts, deeds and assurances the Purchaser may reasonably require in order to consummate fully the transactions contemplated hereunder The obligation of the Parties under this Section 4.5 shall survive the Closing.

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Section 4.6    8-K Requirements.

(a)    For a period from the date hereof until three (3) years after Closing, the Sellers shall from time to time upon Purchaser’s request, make the Facility Balance Sheets and Income Statements, Financial Statements, any underlying financial data associated therewith, and all other books, records and files relating to any period prior to the Closing (whether in paper or electronic format) available to the Purchaser for inspection, copying and audit by Purchaser and Purchaser’s designated accountants, at the Purchaser’s expense. Provided that Purchaser agrees to bear any associated third-party expense (i.e. excluding expenses of Sellers’ personnel and other overhead expenses), the Sellers shall provide the Purchaser with copies of, or access to, such factual information as may be reasonably requested by the Purchaser, and in the possession or under the direct or indirect control of the Sellers, to enable the Purchaser or an affiliate (or their respective successors) to (x) include such information in registration statements, offering memoranda or prospectuses, or similar disclosure documents in connection with syndications, private placements or public offerings of equity or debt securities or interests of the Purchaser or any of its affiliates, and (y) comply with all reporting and disclosure requirements of Purchaser or any of its affiliates under applicable federal and state laws and the rules and regulations promulgated thereunder, as such requirements are interpreted in good faith by Purchaser or any such affiliate.

(b)    Without limiting the foregoing, the Purchaser or its designated independent or other accountants may audit the Financial Statements and any other financial statements of the Sellers, and the Sellers shall supply such documentation in their possession or under their direct or indirect control as the Purchaser or its accountants may reasonably request in order to complete such audit, and the Sellers shall execute the form of audit and representation letter reasonably required by such accountants, and take such other actions as shall be reasonably necessary, in order to (i) permit such accountants to provide an unqualified audit opinion in accordance with generally accepted accounting principles with respect to such audit, (ii) obtain the consent of such accountants to the inclusion of such opinion in one or more reports or registration statements that may be filed by Purchaser or an affiliate with the Securities and Exchange Commission, or in any offering memorandum or similar disclosure documents in connection with any syndications or private placements, (iii) cause such accounting firm to issue one or more customary comfort letters with respect to financial information of the Sellers, and (iv) cause such accounting firm to perform a review of any interim financial periods in accordance with AU 722 in order to be able to provide customary comfort with respect to such periods. The Sellers shall otherwise reasonably cooperate with the Purchaser and its affiliates, accountants and auditors in connection with any public or private offering of equity or debt securities which, in Purchaser’s (or such affiliate’s) good faith judgment, may require disclosure of information relating to Seller Real Property or the Business for any period prior to the Closing. In this connection, Sellers shall cause to be made reasonably available to the Purchaser and its affiliates, accountants and auditors such personnel of Sellers or of any affiliate of Sellers (including, without limitation, management personnel employed in connection with any of the Seller Real Property) to address questions relating to the financial statements, financial data, and/or the ownership, operation and/or financial performance of the Seller Real Property and the Business for any period prior to the Closing.

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(c)    In addition, from the date hereof in connection with any financing sought to be obtained by the Purchaser for its acquisition of Seller Real Property at the Closing, the Sellers shall reasonably cooperate (and shall cause associated management personnel reasonably to cooperate) to expedite and assist with the consummation such financing, provided that Purchaser bears any associated third-party expense. Without limitation, such cooperation shall include, upon the Purchaser’s request (with the Purchaser bearing any associated third-party expenses): establishing special purpose entities and associated structuring changes, implementing documentation and other changes to facilitate “sale” treatment of the Purchaser’s acquisition of the Assets for accounting and/or “true sale” legal purposes, implementing changes in accounts as the lender may reasonably request, and making appropriate personnel reasonably available to address questions and issues. The obligations of the Parties under this Section 4.6 shall survive the Closing.

Section 4.7    Phase I Updates. The Sellers shall provide an updated Phase I environmental report for the Bay Park Facility and the Silver Arrow Estates Facility on the Data Site (the “Updated Report”) on or prior to Closing. If the Updated Report recommends that the Sellers take any further action with respect to any environmental matter not already disclosed on the prior Phase I environmental report that was provided on the Data Site on or prior to the Effective Date, the Sellers, as applicable, shall either (i) take such recommended action at the Sellers’ sole cost and expense, or (ii) cause the Master Tenant under the Master Lease, or the applicable Subtenant, to take such recommended action at Master Tenant’s or such Subtenant’s sole cost and expense; provided, however, that any costs or expenses incurred by tenant or such subtenant to take such recommended action shall not be counted towards the satisfaction of the obligation of Master Tenant to incur capital expenditures under the Master Lease.

Section 4.8    Myrtle Beach/Yardley Commons. For all purposes of this Agreement, other than with respect to the Excluded Provisions, all obligations, representations, warranties and covenants shall apply equally to (1) the Myrtle Beach Seller except that (i) with respect to actions required to be taken or refrained from being taken on or prior to the Closing with respect to any other Assets, Myrtle Beach Seller shall be required to cause the Myrtle Beach Fee Owner to take, or refrain from taking, such actions with respect to the Myrtle Beach Facility and any of its other assets which would have comprised Assets had the Myrtle Beach Fee Owner been a seller hereunder (collectively, the “Myrtle Beach Fee Owner Assets”), (ii) with respect to representations made with respect to the Myrtle Beach Facility and the Myrtle Beach Fee Owner Assets, such representations shall be deemed accurate to the extent the same would have been true if the same had been made by the Myrtle Beach Fee Owner instead of being made by the Myrtle Beach Seller, (iii) on or prior to the Closing the Myrtle Beach Fee Owner shall be required to transfer to the Master Tenant under the Master Lease all assets of the Myrtle Beach Fee Owner which would have comprised Ancillary Assets had the Myrtle Beach Fee Owner been a seller hereunder, and (iv) upon the Closing, the Myrtle Beach Fee Owner shall execute the Master Lease as one of the landlord’s thereunder and shall lease the Myrtle Beach Facility and all of the Myrtle Beach Fee Owner Assets to the Master Tenant thereunder and (2) the Yardley Seller except that (i) with respect to actions required to be taken or refrained from being taken on or prior to the Closing with respect to any other Assets, Yardley Seller shall be required to cause the Yardley Fee Owner to take, or refrain from taking, such actions with respect to the Yardley Facility and any of its other assets which would have comprised Assets had the Yardley Fee Owner been a seller hereunder (collectively, the “Yardley Fee Owner Assets”), (ii) with respect

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to representations made with respect to the Yardley Commons Facility and the Yardley Fee Owner Assets, such representations shall be deemed accurate to the extent the same would have been true if the same had been made by the Yardley Fee Owner instead of being made by the Yardley Seller, (iii) on or prior to the Closing the Yardley Fee Owner shall be required to transfer to the Master Tenant under the Master Lease all assets of the Yardley Fee Owner which would have comprised Ancillary Assets had the Yardley Fee Owner been a seller hereunder, and (iv) upon the Closing, the Yardley Fee Owner shall execute the Master Lease as one of the landlord’s thereunder and shall lease the Yardley Facility and all of the Yardley Fee Owner Assets to the Master Tenant thereunder

“Excluded Provisions” shall mean Sections 1.1(a)(i)-(vi) and Sections 9.2(a)(i)-(iii) hereof. 

ARTICLE V
COVENANTS OF THE PURCHASER

The Purchaser covenants and agrees with the Sellers that:

Section 5.1    Cooperation. After the Closing Date, the Purchaser, at Sellers’ expense, shall cooperate with the Sellers and provide reasonable access to the Books and Records in the Purchaser’s possession that are required by the Sellers to respond to any third party litigation, government audit, other audit or any other reasonable purpose, upon reasonable advance notice. The Sellers shall be responsible for the cost and expense of copying any records in the Purchaser’s possession. The obligation of the Parties under this Section 5.1 shall survive the Closing.

Section 5.2    Further Assurances. In addition to the acts and deeds recited herein and contemplated to be performed, executed or delivered by the Purchaser, the Purchaser hereby agrees to perform, execute and deliver, or cause to be performed, executed and delivered, on the Closing Date or thereafter any and all such further acts, deeds and assurances Sellers may reasonably require in order to consummate fully the transactions contemplated hereunder. The obligation of the Parties under this Section 5.2 shall survive the Closing.

ARTICLE VI
OTHER COVENANTS

Section 6.1    Confidentiality. From and after the Effective Date through the Closing and thereafter, each Party shall use all information that it obtains from the other in connection with, or pursuant to, this Agreement and observe the terms of this Section 6.1. Except as otherwise permitted under this Agreement, each Party shall use the Confidential Information solely for the effectuation of the transactions contemplated by this Agreement or for other purposes consistent with the intent of this Agreement and shall not use any of such information for any other purpose, including the competitive detriment of the other Parties.

(a)    Each Party may disclose (i) such information to its respective Affiliates, counsel, accountants, underwriters, tax advisors and consultants as necessary to consummate this

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transaction. Additionally, the Parties hereby agree that neither Party shall make any announcement or press release regarding the nature or existence of this Agreement without the consent of the other Party; provided that, each Party shall reasonably cooperate with the other Party in connection with the wording of any press release or other public announcement. The terms of this Section 6.1 shall not prohibit the use or disclosure of confidential any information pursuant to court order or which has otherwise become publicly available through no fault of the recipient party;

(b)    Purchaser (or any of its Affiliates) shall be able to disclose such Confidential Information as is, in the good faith judgment of Purchaser’s counsel, accountants or advisors, required or reasonably advisable to be disclosed because of the operation of law, rule, regulation or legal process, a governmental agency such as the Internal Revenue Service or Securities and Exchange Commission, or a stock exchange such as the New York Stock Exchange, court order or requirement of any Governmental Authority; and

(c)    Purchaser (or any of its Affiliates) shall be able to disclose such Confidential Information as is, in the good faith judgment of Purchaser’s counsel, accountants or advisors, required or reasonably advisable to be disclosed in connection with Purchaser’s (or any of its Affiliates’) quarterly earnings results or financing activities.

(d)    Notwithstanding anything to the contrary contained herein, prior to the expiration of the Inspection Period, the terms and existence of this Agreement shall be strictly confidential subject to any disclosure requirements imposed by any applicable Governmental Authority and to the extent this Agreement is terminated at the expiration of the Inspection Period, its existence and terms shall remain strictly confidential subject to any disclosure requirements imposed by any applicable Governmental Authority. This Section 6.1(d) shall survive termination of this Agreement.

If this Agreement is terminated for any reason prior to Closing, the provisions of this Section 6.1 shall survive the Closing for a period of twenty-four (24) months.

Section 6.2    Casualty Event. If between the Effective Date and the Closing a Casualty Event shall occur with respect to any one or more Facilities, the Sellers shall be required to provide the Purchaser with prompt written notice of such occurrence and the Purchaser or the Sellers may elect, within ten (10) Business Days of receipt of such notice, to terminate this Agreement, in which event the Parties shall have no further obligations or liabilities under this Agreement. If between the Effective Date and the Closing (i) a Casualty Event shall occur with respect to any one or more Facilities and neither the Purchaser nor the Sellers have elected to terminate this Agreement in accordance with this Section 6.2 and not to proceed to Closing or (ii) a casualty has occurred with respect to one or more Facilities that does not constitute a Casualty Event (provided the Sellers shall be required to provide the Purchaser with prompt written notice of such occurrence in any event), all insurance proceeds and/or awards attributable to any such casualty shall be assigned to the Purchaser at Closing and the Sellers shall provide a credit against the Purchase Price in the amount of any applicable insurance deductible payable or uninsured amount in connection therewith (and if any casualty is uninsured, the amount of such uninsured casualty), and Purchaser agrees to make all such amounts immediately available

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to Master Tenant if, as and when required under the Master Lease, which funds will be treated as if the Casualty Event or casualty occurred during the term of the Master Lease.

Section 6.3    Condemnation Event. If, prior to Closing, Sellers receive notice of any actual or threatened taking in condemnation or by eminent domain (or a sale in lieu thereof) of all or any portion of any Seller Real Property, Sellers will notify the Purchaser promptly thereof. Other than with respect to an Immaterial Taking, any actual or threatened taking or condemnation for any public or quasi-public purpose or use by any competent authority in appropriate proceedings or by any right of eminent domain of all or any part of a Seller Real Property between the Effective Date and the Closing shall, at the Purchaser’s or the Sellers’ option, cause a termination of this Agreement in which event the Parties shall have no further obligations or liabilities under this Agreement with respect to such Facility or Facilities. The election to terminate provided hereby must be exercised by the Purchaser or the Sellers (and if not timely exercised, shall be deemed waived by Purchaser or the Sellers) by written notice to the other party given within ten (10) Business Days following the Purchaser’s receipt of Sellers’ notice of the condemnation of all or any portion of any Seller Real Property. If neither party shall elect to terminate this Agreement or in the event of an Immaterial Taking, Sellers shall assign at Closing to the Purchaser all net proceeds of any such taking or condemnation to the extent not yet expended for the restoration of the Seller Real Property by the Sellers, and the Purchaser agrees to make all such amounts immediately available to Master Tenant if, as and when required under the Master Lease, which funds will be treated as if the condemnation or taking occurred during the term of the Master Lease.

ARTICLE VII
INDEMNIFICATION

Section 7.1    Indemnification by the Sellers.

(a)    Subject to the limitations set forth in this Article VII, each Seller shall, jointly and severally, indemnify, protect, defend, exculpate and hold the Purchaser and their Affiliates and their respective partners, directors, managers, members, shareholders, officers, employees and agents (collectively, the “Purchaser Indemnified Parties”) harmless from and against, and defend the Purchaser Indemnified Parties from and reimburse the Purchaser Indemnified Parties for, any and all actual losses, damages, costs, expenses, liabilities, obligations and claims of any kind (including costs of investigation, reasonable attorneys’ fees and other legal costs and expenses, but not including consequential, punitive, treble or other similar damages, lost profits, special or indirect damages, including loss of future revenue, profits or income or loss of business reputation or opportunity related to the breach or alleged breach of this Agreement) (the “Purchaser Indemnified Losses”) which the Purchaser Indemnified Parties shall at any time suffer or incur, or become subject to, as a result of or in connection with:

(i)    Any breach or inaccuracy in any of the representations or warranties (other than a breach of Section 2.2(d)) as and when made by the Sellers in or pursuant to this Agreement or any Seller Documents;

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(ii)    Any breach of any covenant, agreement or undertaking made by the Sellers under this Agreement;

(iii)    Any failure by any Seller to satisfy any Excluded Liability; and

(iv)    Any breach of Section 2.2(d) as and when made by the Sellers in or pursuant to this Agreement.

(b)    Except as provided otherwise herein, (i) the aggregate liability of the Sellers for Purchaser Indemnified Losses under Section 7.1(a)(i) and Section 7.1(a)(ii) shall not exceed the amount of Fifteen Million ($15,000,000) in the aggregate, and (ii) the Sellers shall be liable for Purchaser Indemnified Losses under Section 7.1(a)(i) or Section 7.1(a)(ii) only if the aggregate Purchaser Indemnified Losses exceed the amount of Five Hundred Thousand Dollars ($500,000) (the “Seller Basket”), at which point the Sellers shall be liable for all Purchaser Indemnified Losses (i.e., from the first dollar of such Purchaser Indemnified Losses); provided, that Sellers’ obligations hereunder shall be reduced by the amount of insurance proceeds, tax benefits, indemnification payments and other third-party payments, actually received in connection with such claims (net of any costs incurred in recovering such amounts). For the avoidance of doubt, the limitations set forth in this Section 7.1(b) shall not apply in the case of any claim made pursuant to Section 7.1(a)(iii).

Section 7.2    Indemnification by the Purchaser.

(a)    The Purchaser shall indemnify, protect, defend, exculpate and hold the Sellers and their Affiliates and their respective partners, directors, managers, members, shareholders, officers, employees and agents (collectively, the “Seller Indemnified Parties”), harmless from and against, and defend the Seller Indemnified Parties from and reimburse the Seller Indemnified Parties for, any and all losses, damages, costs, expenses, liabilities, obligations and claims of any kind (including costs of investigation, reasonable attorneys’ fees and other legal costs and expenses, but not including consequential, punitive, treble or other similar damages, lost profits, special or indirect damages, including loss of future revenue, profits or income or loss of business reputation or opportunity related to the breach or alleged breach of this Agreement) (the “Seller Indemnified Losses”) which the Seller Indemnified Parties shall at any time suffer or incur, or become subject to, as a result of or in connection with:

(i)    Any breach or inaccuracy of any of the representations or warranties made by the Purchaser in this Agreement;

(ii)    Any breach of any covenant, agreement or undertaking made by the Purchaser under this Agreement; and

(iii)    Any failure by Purchaser to satisfy the Assumed Liabilities.

(b)    Except as provided otherwise herein, (i) the aggregate liability of the Purchaser for Seller Indemnified Losses pursuant to Section 7.2(a)(i) and Section 7.2(a)(ii) shall not exceed the amount of Fifteen Million Dollars ($15,000,000) in the aggregate and (ii) the Purchaser shall be liable for Seller Indemnified Losses pursuant to Section 7.2(a)(i) or Section 7.2(a)(ii) only if the aggregate Seller Indemnified Losses exceed the amount of Five Hundred

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Thousand Dollars ($500,000) (the “Purchaser Basket”), at which point the Purchaser shall be liable for all Seller Indemnified Losses (i.e., from the first dollar of such Seller Indemnified Losses); provided, that Purchaser’s obligations hereunder shall be reduced by the amount of insurance proceeds, tax benefits, indemnification payments and other third-party payments, actually received in connection with such claims (net of any costs incurred in recovering such amounts). For the avoidance of doubt, the limitations set forth in this Section 7.2(b) shall not apply in the case of any claim made pursuant to Section 7.2(a)(iii).

Section 7.3    Notification of Claims.

(a)    Any and all claims by any Indemnified Party pursuant to this Article VII must be made in writing prior to 5:00 p.m. (ET) on the last day of the Survival Period. Failure by any Section VII Indemnified Party to provide written notice of claim to the Indemnifying Party prior to 5:00 p.m. (ET) on the last day of the Survival Period shall forever bar such Indemnified Party from making any claim of any sort, including claims under this Agreement and all other agreements related to the sale and purchase of the Assets, by statute, at common law or otherwise, and whether known or unknown, contingent, liquidated or unliquidated.

(b)    A Party entitled to be indemnified pursuant to Sections 7.1 or 7.2 (the “Indemnified Party”) shall notify the Party liable for such indemnification (the “Indemnifying Party”) in writing of any claim or demand which the Indemnified Party has determined gives rise or will likely give rise to a right of indemnification under this Agreement, promptly after the Indemnified Party becomes aware of such claim or demand and has made such determination; provided, however, that the Indemnified Party’s failure to give such notice to the Indemnifying Party in a timely fashion shall not result in the loss of the Indemnified Party’s rights with respect thereto except to the extent any Party to this Agreement is prejudiced by the delay, and then only to the extent of such prejudice. Subject to the Indemnifying Party’s right to defend in good faith third party claims as hereinafter provided, the Indemnifying Party shall satisfy its obligations under this Article VII within thirty (30) days after the receipt of written notice thereon from the Indemnified Party.

(c)    If the Indemnified Party shall notify the Indemnifying Party of any claim or demand pursuant to Section 7.3(a), and if such claim or demand relates to a claim or demand asserted by a third party against the Indemnified Party which the Indemnifying Party acknowledges is a claim or demand for which it must indemnify or hold harmless the Indemnified Party under Sections 7.1 or 7.2, the Indemnifying Party shall have the right to either (i) pay such claim or demand or (ii) employ counsel reasonably acceptable to the Indemnifying Party to defend any such claim or demand asserted against the Indemnified Party. The Indemnified Party, at its own expense, shall have the right to participate in the defense of any such claim or demand. The Indemnifying Party shall notify the Indemnified Party in writing, as promptly as possible (but in any case reasonably in advance of the due date for the answer or response to a claim) after the date of the notice of claim given by the Indemnified Party to the Indemnifying Party under Section 7.3(a) of its election to defend in good faith any such third party claim or demand. So long as the Indemnifying Party is defending in good faith any such claim or demand asserted by a third party against the Indemnified Party, the Indemnified Party shall not settle or compromise such claim or demand. The Indemnified Party shall make available to counsel engaged by the Indemnifying Party all records and other materials in the

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Indemnified Party’s possession reasonably requested for its use in contesting any third party claim or demand. Whether or not the Indemnifying Party elects to defend any such claim or demand, the Indemnified Party shall have no obligations to do so. Notwithstanding the foregoing, if the actual or potential defendants in, or targets of, such third party claim include both the Indemnifying Party and the Indemnified Party, and the Indemnified Party shall have reasonably concluded that there are or are reasonably likely to be legal defenses available to it that are different from or additional to those available to the Indemnifying Party or that there exists or is reasonably likely to exist a conflict of interest, in either case that would make it inappropriate in the reasonable judgment of the Indemnified Party for the same counsel to represent both the Indemnified Party and the Indemnifying Party, then the Indemnified Party shall be entitled to participate in the defense of such third party claim, in which case the Indemnifying Party shall bear the reasonable fees, costs and expenses of one separate counsel to the Indemnified Party in each jurisdiction (and shall pay reasonable fees, costs and expenses as incurred); provided that the Indemnified Party shall use diligent and good faith efforts in such defense.

(d)    An Indemnifying Party may not, without the prior written consent of the Indemnified Party, settle or compromise any claim against an Indemnified Party or consent to the entry of any judgment with respect to which indemnification is being sought hereunder unless such settlement, compromise or consent includes an unconditional release of the Indemnified Party from all liability arising out of such claim and does not contain any equitable order, judgment or term which in any manner affects, restrains or interferes with the business of the Indemnified Party or any of the Indemnified Party’s Affiliates.

Section 7.4    Survival of Representations.

(a)    Except as otherwise provided in this Section 7.4, (i) all representations and warranties contained in this Agreement other than those set forth in Section 2.2(d) (and any claims for any breach thereof) or any Seller Document or Purchaser Document (and any claims for any breach thereof) shall survive the Closing for a period of eighteen (18) months, and (ii) obligations of the Parties with respect to Assumed Liabilities, Excluded Liabilities and for breaches of Section 2.2(d) shall survive indefinitely (the “Survival Period”).

(b)    Unless another date is specified herein, all of the representations and warranties made by Sellers or the Purchaser in this Agreement are made as of the Effective Date and (without prejudice to the representations and warranties made as of the Effective Date) shall be deemed remade as of the Closing pursuant to the Seller Certificate or the Purchaser Certificate, as applicable. In connection with the remaking of representations and warranties as of the Closing (but not as to representations and warranties made as of the Effective Date), Sellers and the Purchaser shall be permitted to update their representations and warranties (for all purposes under this Agreement other than for purposes of satisfying the condition to Closing contained in Article VIII), to accurately reflect the current state of matters as of the Closing, provided neither Sellers nor the Purchaser shall be permitted to update their respective representations and warranties to reflect matters caused by the willful or intentional breach of this Agreement by the Purchaser or Sellers, as applicable.

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(c)    All covenants and agreements contained in this Agreement (and any claims for any breach thereof) that by their terms apply or are to be performed in whole or in part after the Closing shall remain in full force and effect after the Closing in accordance with their terms (or, if no survival period is stated therein, then such covenants and agreements shall survive indefinitely). All covenants and agreements contained in this Agreement that by their terms apply or are to be performed in their entirety on or prior to the Closing shall terminate at the Closing.

(d)    Notwithstanding the foregoing, if prior to 5:00 p.m. (ET) on the last day of the Survival Period, an Indemnifying Party shall have been properly notified of a claim for indemnity hereunder and such claim shall not have been finally resolved or disposed of at such date, such claim shall continue to survive and shall remain a basis for indemnity hereunder until such claim is finally resolved or disposed of in accordance with the terms in this Agreement.

(e)    Notwithstanding anything to the contrary contained in this Agreement, Sellers shall have no liability with respect to any of Sellers’ representations or warranties herein or in any representations or warranties in any Seller Document if, prior to the Closing, the Purchaser has actual knowledge of any breach by Sellers of such representation or warranty, or the Purchaser obtains actual knowledge (from whatever source, as a result of the Purchaser’s due diligence tests, investigations and inspections of the Assets, or as a result of written disclosure by Sellers or any of Sellers’ agents, representatives or employees) that contradicts any of Sellers’ representations or warranties herein or in any representation or warranty in any Seller Document (and the representations and warranties of Sellers shall be deemed modified thereby to be accurate), and the Purchaser nevertheless consummates the transaction contemplated by this Agreement (in which event any such breach or contradiction shall be deemed waived by the Purchaser).

Section 7.5    No Punitive Damages. No Indemnified Party shall be entitled to indemnification for any punitive, consequential, special or indirect damages, including business interruption, loss of future revenue, profits or income or loss of business reputation or opportunity related to the breach or alleged breach of this Agreement.

Section 7.6    Broker’s Fee. Sellers agree to indemnify and hold harmless the Purchaser from and against any loss, liability, damage, cost or expense (including court costs and reasonable attorneys’ fees) paid or incurred by the Purchaser by reason of any claim to any broker’s, finder’s or other fee in connection with this transaction by any party, claiming by, through or under Sellers. The Purchaser agrees to indemnify and hold harmless Sellers from and against any loss, liability, damage or expense (including court costs and reasonable attorneys’ fees) paid or incurred by Sellers by reason of any claim to any broker’s, finder’s or other fee in connection with this transaction claiming by, through or under the Purchaser.

Section 7.7    Treatment of Indemnification Payments. Any payments made pursuant to the indemnification obligations arising under this Article VII shall be treated as adjustments to the Purchase Price for all tax purposes.

Section 7.8    Survival. The provisions of this Article VII shall survive the Closing or earlier termination of this Agreement.

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ARTICLE VIII
CONDITIONS

Section 8.1    Conditions to Each Party’s Obligations. The respective obligations of each Party to effect the Closing are subject to the satisfaction or waiver delivered to the other Party of each of the following conditions precedent:

(a)    There shall not be in force any order, decree, judgment or injunction of any Governmental Authority enjoining or prohibiting the consummation of the transactions contemplated by this Agreement or any Seller Document or Purchaser Document; and

(b)    No Legal Proceeding shall be pending wherein an unfavorable judgment, order, decree, stipulation or injunction would (i) prevent consummation of the transactions contemplated by this Agreement, or (ii) cause the transaction contemplated by this Agreement to be rescinded following consummation.

Section 8.2    Conditions to Obligations of the Purchaser. The obligation of the Purchaser to effect the Closing is subject to the satisfaction or waiver delivered to the Sellers of each of the following conditions precedent:

(a)    The representations and warranties of the Sellers set forth in this Agreement and in the Seller Documents that are qualified as to materiality shall be true and correct and the representations and warranties of the Sellers that are not qualified as to materiality shall be true and correct in all material respects, in each case, as of the Closing as though made as of the Closing; provided that, to the extent that any such representation or warranty speaks as of a specified date, it need only be true and correct as of such date.

(b)    Each of the Sellers shall have performed and complied, in all material respects, with its agreements and covenants (in each case, disregarding any materiality qualifiers contained therein) required to be performed or complied with under this Agreement as of or prior to the Closing.

(c)    The Title Company shall, at the Closing, be irrevocably and unconditionally committed to issue each of the Title Policies upon payment of the premium and the application of the Purchase Price to the repayment of any Indebtedness encumbering the Assets , and such Title Policies shall not contain any exceptions to title other than the standard preprinted exceptions (unless the Purchaser pays for extended coverage, in which case the standard preprinted exceptions shall not appear in the Title Policy) and the Permitted Liens.

(d)    Each of the Sellers shall have executed and delivered to the Purchaser or the Title Company their respective Seller Documents and provided the Purchaser the items listed in Section 9.2(a).

Section 8.3    Conditions to Obligations of the Sellers. The obligation of each of the Sellers to effect the Closing is subject to the satisfaction or waiver delivered to the Purchaser of each of the following conditions precedent:

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(a)    The representations and warranties of the Purchaser set forth in this Agreement and the Purchaser Documents that are qualified as to materiality shall be true and correct and the representations and warranties of the Purchaser that are not qualified as to materiality shall be true and correct in all material respects, in each case, as of the Closing as though made as of the Closing; provided that, to the extent that any such representation or warranty speaks as of a specified date, it need only be true and correct as of such date.

(b)    The Purchaser shall have performed and complied with in all material respects its agreements and covenants (in each case, disregarding any materiality qualifiers contained therein) required to be performed or complied with under this Agreement as of or prior to the Closing.

(c)    The Purchaser shall have executed and delivered their respective Purchaser Documents and provided the Sellers the items listed in Section 9.2(b).

(d)    The Purchaser shall have wired the balance of the Purchase Price to be paid at the Closing to the Sellers.

(e)    The Monetary Lien Condition has been, or simultaneously with the Closing will be, satisfied.

ARTICLE IX
CLOSING

Section 9.1    Possession. Possession of all Facilities and the other Assets sold hereunder shall be delivered to the Purchaser on the Closing Date.

Section 9.2    Closing Documents.

(a)    The Sellers shall deliver to the Purchaser on the Closing Date, the following:

(i)    Deeds. Duly executed grant deeds for the Seller Real Property located in the State of California and special warranty deeds (or the state equivalent) for the Seller Real Property located in the remaining states, in recordable form and otherwise sufficient to convey such Seller Real Property to the Purchaser, subject to no Liens except Permitted Liens, and pursuant to the laws of the state in which such Seller Real Property is located, as reasonably approved by the Purchaser and the Title Company (provided, however, that for purposes of this Section 9.2(a)(i), Seller Real Property shall not include the Land, Facility or any other assets which would comprise Seller Real Property in each case owned by the Myrtle Beach Fee Owner or the Yardley Fee Owner);

(ii)    Bill of Sale. A Bill of Sale duly executed by the Sellers, in the form of Exhibit 9.2(a)(ii), sufficient to convey such Personal Property to the Purchaser, subject to no Liens except Permitted Liens (provided, however, that for purposes of this Section 9.2(a)(ii),

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Personal Property shall not include any assets which would comprise Personal Property hereunder in each case owned by the Myrtle Beach Fee Owner or the Yardley Fee Owner);

(iii)    Assignment of Other Property. An Assignment and Assumption of Other Property duly executed by the Sellers in the form of Exhibit 9.2(a)(iii) (provided, however, that for purposes of this Section 9.2(a)(iii), Other Property shall not include any assets which would comprise Other Property hereunder in each case owned by the Myrtle Beach Fee Owner or the Yardley Fee Owner);

(iv)    Other Conveyance Instruments. Such other appropriate instruments of assignment and conveyance, in form mutually but reasonably satisfactory to the Parties, dated as of the Closing Date, conveying all of the Sellers’ right, title and interest in and title to the Assets, free and clear of all Liens except as otherwise permitted herein;

(v)    FIRPTA Certificate. Certificate and affidavit of the Sellers’ non-foreign status that complies with Section 1445 of the Code, in the form attached hereto as Exhibit 9.2(a)(v);

(vi)    Evidence of Seller Authority. Evidence of the authority of each Seller to execute and deliver the applicable Seller Documents in order to effectuate the Closing, including certificates of foreign qualification of the applicable Seller from the Secretary of State or other applicable Governmental Authority in the jurisdiction where the applicable Seller Real Property is located;

(vii)    Bring-Down Certificate. A bring-down certificate executed by Sellers reaffirming that the representations and warranties are true and correct as of the Closing Date in the form of Exhibit 9.2(a)(vii) (the “Seller Certificate”);

(viii)    Tax Declarations. Such applicable sales tax or real property transfer tax forms or declarations or similar forms as prepared by Purchaser and executed by Sellers as required by Applicable Law;

(ix)    Closing Statement. The Closing Statement, executed by the Sellers and in form agreed to by the Sellers and the Purchaser (the “Closing Statement”);

(x)    Rent Roll. A rent roll for each Facility for the period ending not earlier than thirty (30) days prior to Closing, certified by the Sellers as of the Closing Date as true, complete and accurate in all material respects as of the date indicated therein;

(xi)    Title Insurance. Customary owners’ affidavits, gap indemnities, in form reasonably agreed by the parties thereto, as reasonably requested by the Title Company to cause the Title Company to issue the Title Policies; and

(xii)    Master Lease. Seller shall cause an Affiliate of Sellers (“Master Tenant”) to (A) execute (i) a Master Lease in the form attached hereto as Exhibit 9.2(a)(xii) (the “Master Lease”) pursuant to which Master Tenant will lease the Facilities from the Purchaser, and (ii) all documents required to be delivered in connection with the

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Master Lease, including all guaranty agreements, security agreements, pledge agreements and subleases, and (B) execute an agreement with the New Manager (or other manager party thereto) subordinating its interests in and to the management agreement(s) set forth in accordance with the Master Lease.

(xiii)    Assignment of Membership Interests. An Assignment and Assumption of Membership Interests duly executed by the Myrtle Beach Seller and the Yardley Seller, as applicable, in the form of Exhibit 9.2(a)(xiii)

(xiv)    Other Deliveries. Such other documents a reasonably necessary to effectuate the transactions described herein.

(Items (i) through (xiii) hereafter are referred to as the “Seller Documents.”)

(b)    The Purchaser shall deliver to the Sellers or cause to be delivered to the Sellers on the Closing Date the following:

(i)    Assignment of Other Property. An Assignment of Other Property duly executed by the Purchaser in the form of Exhibit 9.2(a)(iii);

(ii)    Bring-Down Certificate. A bring-down certificate executed by the Purchaser reaffirming that the representations and warranties are true and correct as of the Closing Date in the form of Exhibit 9.2(b)(ii) (the “Purchaser Certificate”);

(iii)    Tax Declarations. Such applicable sales tax or real property transfer tax forms or declarations or similar forms as prepared and executed by the Purchaser as required by Applicable Law;

(iv)    Closing Statement. The Closing Statement executed by the Purchaser;

(v)    Title Insurance. Customary owners’ affidavits, gap indemnities and other instruments, in form reasonably acceptable to the parties thereto, as reasonably requested by the Title Company to cause the Title Company to issue the Title Policies ;

(vi)    Evidence of Purchaser Authority. Evidence of the authority of the Purchaser to execute and deliver the applicable Purchaser Documents in order to effectuate the Closing, including a good standing certificate of the Purchaser from the Secretary of State in its state of organization; and

(vii)    Master Lease. The Master Lease duly executed by Purchaser and all other documents required to be delivered by the Master Lease to the extent such documents require Purchaser’s signature.

(viii)    Other Deliveries. Such other documents a reasonably necessary to effectuate the transactions described herein;

(Items (i) through (viii) hereafter are referred to as the “Purchaser Documents”).

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Section 9.3    Closing Adjustments. As the Master Lease is a triple net lease and the Master Tenant (as the tenant thereunder) is entitled thereunder to all revenue of the Facilities and is liable for all expenses of the Facilities from and after Closing, including the payment of real property taxes, there shall be no credits or prorations at the Closing between Purchaser and Sellers with respect to the revenues or costs associated with owning or operating the Facilities. As applicable, all such credits and prorations shall be made between Sellers and Master Tenant under terms outside of this Agreement.

Section 9.4    Closing Costs; Transfer Taxes.

(a)    Each Party shall pay its own legal, accounting and other professional fees incurred by such Party in connection with the transactions described in this Agreement and any other cost or expense not specifically enumerated in Section 9.4(b). Purchaser shall pay one hundred percent (100%) of any and all costs and expenses, including all documentary or similar taxes and recording fees, that relate solely to borrowings by Purchaser to finance the acquisition of the Assets.

(b)    Subject to Section 9.4(c), at or before the Closing, the Sellers shall pay all of the following transaction expenses incurred in connection with the transactions described in this Agreement: (i) any escrow or closing charges of the Title Company; (ii) any and all sales, documentary, stamp, transfer, sales, use, gross receipts or similar taxes or recording fees related to the transfer of the Assets (collectively, the “Transfer Taxes”); (iii) any search fees and costs for the Initial Title Commitments and any updates Purchaser deems reasonably necessary thereto; (iv) the cost of the Initial Surveys and any updates Purchaser deems reasonably necessary thereto; (v) the cost of any reasonable U.C.C., judgment, bankruptcy, tax and other appropriate searches reasonably acceptable to Purchaser, (vi) the premium for each Title Policy issued to the Purchaser, which premium shall includethe cost to obtain extended coverage and the following endorsements, to the extent available: zoning, comprehensive, access, tax parcel (single or multiple as need), same as survey, contiguity (as needed), utility facility and solely with respect to the Myrtle Beach Facility and the Yardley Commons Facility, a non-imputation endorsement, (vii) the cost of any endorsement required to cure or insure over any exceptions identified by the Purchaser in any Title Objection Notice which Sellers agreed to cure, and (viii) the costs associated any Phase I environmental reports, property inspection reports and all other reports, inspections and investigations placed in the Data Site by the Sellers.

(c)    At Closing, the Closing Statement will reflect that Purchaser shall reimburse or pay, as the case may be, One Million Five Hundred Thousand Dollars ($1,500,000) toward the expenses incurred by Sellers pursuant to Section 9.4(b).

(d)    The Purchaser shall prepare and cause to be filed at Closing all applicable sales tax or real property transfer tax forms or declarations or similar forms as required by Applicable Law. Sellers agree to reasonably cooperate in the preparation of such declarations or forms.

Section 9.5    Survival. The terms of this Article IX shall survive the Closing.

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ARTICLE X
TERMINATION AND ABANDONMENT

Section 10.1    Method of Termination. This Agreement may be terminated and the transactions herein contemplated may be abandoned at any time on or before the Closing:

(a)    by either Party in its sole discretion prior to the expiration of the Inspection Period;

(b)    by mutual written consent of the Parties;

(c)    by the Purchaser giving written notice to the Sellers at any time prior to the Closing in the event the Sellers have breached any representation, warranty or covenant contained in this Agreement in any material respect, provided that the Purchaser has notified the Sellers of the breach and the breach has continued without cure for a period of fifteen (15) days following the notice of breach;

(d)    by the Purchaser giving written notice to the Sellers at any time after the later to occur of (i) the Outside Date (regardless of whether the cure period set forth in Section 10.1(c) has expired) and (ii) the date to which the Sellers have postponed the Closing pursuant to and in accordance with Section 4.4(b) hereof, if (i) Purchaser is ready, willing and able to close on the date such notice is provided, which for purposes hereof, shall be based upon the Purchaser’s ability to demonstrate the ability to fund all amounts necessary to consummate the Closing; providedhowever, the Purchaser shall be able to demonstrate such ability to fund without having to actually fund such required amounts, and (ii) Sellers are unwilling or unable to close on the date of such notice despite all of the conditions to Sellers’ obligation to close being satisfied in full, including, without limitation, the Monetary Lien Condition (other than those conditions that by their nature cannot be satisfied or waived until the Closing Date);

(e)    by the Purchaser giving written notice to the Sellers at any time after the Outside Date if the Sellers are unable or unwilling to close the transaction described herein on the basis that the Monetary Lien Condition has not been and simultaneously with the Closing will not have been, satisfied;

(f)    by the Sellers giving written notice to the Purchaser at any time prior to the Closing in the event the Purchaser has breached any representation, warranty or covenant contained in this Agreement in any material respect, provided that the Sellers have notified the Purchaser of the breach and the breach has continued without cure for a period of fifteen (15) days following the notice of breach;

(g)    by the Sellers giving written notice to the Purchaser at any time after the Outside Date (regardless of whether the cure period set forth in Section 10.1(f) has expired) if (i) Sellers are is ready, willing and able to close on the date such notice is provided, and (ii) Purchaser is unwilling or unable to close on the date of such notice despite all of the conditions to Purchaser’s obligation to close being satisfied in full (other than those conditions that by their nature cannot be satisfied or waived until the Closing Date);

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(h)    by the Purchaser or the Sellers pursuant to Sections 4.4(b), 6.2 or 6.3; or

(i)    by either Party, by giving written notice to the other Party, if a court of competent jurisdiction or other Governmental Authority shall have issued a non-appealable final order, decree or ruling or taken any other action, in each case having the effect of permanently restraining, enjoining or otherwise prohibiting the transactions contemplated hereby, unless the Party relying on such order, decree or ruling or other action has not complied in all material respects with its obligations under this Agreement.

Section 10.2    Procedure Upon Termination. In the event either party exercises its right to terminate this Agreement pursuant to Section 10.1, this Agreement shall immediately terminate and shall be abandoned, without further action by any of the Parties. If this Agreement is terminated for any reason, no Party shall have any liability or further obligation except as set forth in Section 10.3 and for the Surviving Obligations.

Section 10.3    Effect of Termination; Remedies for Default; Break Up Fees.

(a)    Seller Defaults. If the Purchaser terminates this Agreement pursuant to Section 10.1(e), then within three (3) Business Days following such termination the Sellers shall pay to the Purchaser cash in good funds in the amount of the Break Up Fee. In addition, the Surviving Obligations shall remain in effect.

(b)    Purchaser Defaults. If the Sellers terminate this Agreement pursuant to Section 10.1(f) or Section 10.1(g), then within three (3) Business Days following such termination the Purchaser shall pay to the Sellers cash in good funds in the amount of the Break Up Fee. In addition, the Surviving Obligations shall remain in effect.

(c)    Specific Performance. If the Purchaser has the right to terminate this Agreement pursuant to Section 10.1(d), the Parties agree that because Purchaser will not have an adequate remedy at law, Purchaser shall have the right, in lieu of termination of this Agreement, to seek specific performance.

(d)    Representation and Warranty Defaults. In the event that the Purchaser terminates this Agreement pursuant to Section 10.1(c), as a result of the Sellers’ breach of a material representation and warranty which breach (i) existed as of Effective Date or (ii) occurred after the Effective Date but prior to the Closing Date as a result of the Sellers’ intentional, willful or negligent actions, the Sellers shall pay to the Purchaser an amount equal to the lesser of (i) Purchaser’s Expenses and (ii) the Reimbursement Cap within three (3) Business Days following such termination.

(e)    Other Termination. If this Agreement is terminated pursuant to Section 10.1(a), Section 10.1(b), Section 10.1(c) (other than as a result of breaches covered by Section 10.3(d)(i) or Section 10.3(d)(ii)), Section 10.1(h) or Section 10.1(i), then the only obligations of the Parties shall be the Surviving Obligations.

(f)    Liquidated Damages. The Parties have agreed that the actual damages of either Party, in the event of a failure of the other Party to consummate the transactions described herein due to a default or breach of its covenants hereunder, would be extremely difficult or

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impracticable to determine. After negotiation, the Parties have agreed that, considering all the circumstances existing on the date of this Agreement, in the circumstances set forth in this Agreement requiring payment of the same, an amount equal to the Break Up Fee is a reasonable estimate of the damages that the applicable Party would incur in such event.

ARTICLE XI
MISCELLANEOUS PROVISIONS

Section 11.1    Amendment and Modification. This Agreement may be amended, modified and supplemented only by written agreement signed by all of the Parties.

Section 11.2    Waiver of Compliance; Consent. Any failure of the Sellers on the one hand, or the Purchaser, on the other hand, to comply with any obligation, covenant agreement or condition herein may be waived in writing by the other Party, but such waiver or failure to insist upon strict compliance with such obligation, covenant, agreement or condition shall not operate as a waiver of, or estoppel with respect to, any subsequent or other failure. Whenever this Agreement requires or permits consent by or on behalf of any Party, such consent shall be given in writing in a manner consistent with the requirements for a waiver of compliance as set forth in this Section 11.2.

Section 11.3    Notice. All notices, requests, demands and other communications required or permitted hereunder shall be in writing and shall be personally delivered, or sent by facsimile transmission or electronic mail (provided a copy is thereafter promptly mailed or delivered as hereinafter provided), or sent by overnight commercial delivery service (provided a receipt is available with respect to such delivery), and shall be effective when received during business hours (a business hour being the hours from 8:00 a.m. to 5:00 p.m. on Business Days and if notice is received after business hours it shall be deemed delivered on the next Business Day), if sent by personal delivery, by facsimile transmission, electronic mail or by overnight delivery service:

(a)    If to the Purchaser, to:

National Health Investors, Inc.

222 Robert Rose Drive

Murfreesboro, Tennessee 37129

Attention: Chief Credit Officer

Facsimile: (615) 225-3030

Email: kgaines@nhireit.com

With a copy to:

Harwell Howard Hyne Gabbert & Manner, P.C.

c/o John M. Brittingham

333 Commerce Street, Suite 1500

Nashville, Tennessee 37201

Facsimile: (615) 251-1059

Email: john.brittingham@h3gm.com

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(b)    If to the Sellers, to:

c/o - Holiday Retirement

5885 Meadows Rd., Suite 500

Lake Oswego, OR 97035

Attn: Chief Legal Officer

Email: legal@holidaytouch.com

with a copy (which shall not constitute notice) to:

Skadden, Arps, Slate, Meagher & Flom LLP

4 Times Square

New York, New York 10036

Attn: Neil Rock

Tel: (212) 735-3787

Fax: (917) 777-3787

Email: neil.rock@skadden.com

or to such other person or address as any Party shall furnish to the other Party in writing pursuant to this Section 11.3. Notice shall be deemed given to any Person in accordance with the terms of this Section 11.3 if and when rejected by such Person.

Section 11.4    Bulk Sales Laws. The Purchaser and Sellers hereby waive compliance by the other with the provisions of any bulk sales, bulk transfer or similar laws of any jurisdiction that may otherwise be applicable with respect to the sale of all or any portion of the Assets to the Purchaser.

Section 11.5    Expenses. Except as otherwise provided herein, each Party shall bear its own costs and expenses (including legal fees and expenses) incurred in connection with this Agreement and the transactions contemplated hereby.

Section 11.6    Assignment. This Agreement and all of the terms, covenants and conditions in this Agreement shall be binding upon and inure to the benefit of the Parties and their respective heirs, successors and permitted assigns. Neither the Purchaser nor the Sellers may assign this Agreement without first obtaining the other Party’s prior written consent, which may be withheld in the other Party’s sole discretion. No permitted assignment of this Agreement shall release the Purchaser from its obligations hereunder. Notwithstanding the foregoing, this Agreement may be assigned by Purchaser to one or more Affiliates of Purchaser at Closing; provided that (i) Purchaser and any assignees by accepting assignment of this Agreement, expressly agrees to defend and indemnify the Sellers from any litigation arising out of the assignment; (ii) no further assignment shall occur without the prior written consent of the Seller; and (iii) written notice of the assignment, is provided to the Sellers no fewer than five (5) Business Days prior to Closing.

Section 11.7    Governing Law. This Agreement shall be construed and enforced in accordance with the laws of the State of New York, without giving effect to any principles regarding conflict of laws to the extent such principles would require or permit the application of the laws of another jurisdiction.

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Section 11.8    Business Day. If the date for giving of notice or performance of any duty or obligation hereunder falls on a day that is not a Business Day hereunder, such date shall be automatically extended to the next Business Day hereunder.

Section 11.9    Counterparts. This Agreement may be executed by facsimile signature or other electronic form of signature, (including “pdf”) and in two (2) or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.

Section 11.10    Headings. The Article and Section headings and table of contents contained in this Agreement are for reference purposes only and shall not affect in any way the meaning or interpretation of this Agreement.

Section 11.11    Entire Agreement. This Agreement, as such term is used throughout, includes the Exhibits and Disclosure Schedules hereto and embodies the entire agreement and understanding of the Parties in respect of the subject matter contained herein. There are no restrictions, promises, representations, warranties, covenants, agreements or undertakings, other than those expressly set forth or referred to herein. This Agreement supersedes all prior agreements and understandings among the Parties with respect to such subject matters contained herein.

Section 11.12    Warranty of Authority. Each of the Parties warrants that the persons signing on their behalf have the right and power to enter into this Agreement and to bind them to the terms of this Agreement.

Section 11.13    Publicity. All pre-Closing publicity concerning the transactions contemplated by this Agreement and all notices respecting publicity shall be jointly planned, coordinated and released by and among the Parties; provided, however, that nothing herein shall prohibit either Party from making any press release or disclosure as may be required to comply with Applicable Law, regulation or stock market rule provided that the releasing or disclosing Party provides notice to the other of the substance of such release or disclosure in advance thereof.

Section 11.14    Waiver of Jury Trial. EACH OF THE PARTIES HEREBY KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT TO TRIAL BY JURY IN ANY LEGAL ACTION BROUGHT ON IN CONNECTION WITH ANY MATTER ARISING OUT OF OR IN ANY WAY CONNECTED WITH THE TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT. THE PROVISIONS OF THIS SECTION 11.14 SHALL SURVIVE THE CLOSING OR EARLIER TERMINATION OF THIS AGREEMENT.

Section 11.15    Third Party Beneficiaries. Nothing in this Agreement, expressed or implied, is intended or shall be construed to confer upon any third party other than the Parties hereto and the Indemnified Parties as set forth in Article IV and Article VII any right, remedy or claim under or by reason of this Agreement.

Section 11.16    Interpretation. When a reference is made in this Agreement to an Article, a Section, Exhibit or section of the Disclosure Schedules, such reference shall be to an Article of,

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a Section of, or an Exhibit or section of the Disclosure Schedules to, this Agreement unless otherwise indicated. Whenever the words “include,” “includes” or “including” are used in this Agreement, they shall be deemed to be followed by the words “without limitation.” The words “hereof,” “herein” and “hereunder” and words of similar import when used in this Agreement shall refer to this Agreement as a whole and not to any particular provision of this Agreement. All terms defined in this Agreement shall have the defined meanings when used in any certificate or other document made or delivered pursuant hereto unless otherwise defined therein. The definitions contained in this Agreement are applicable to the singular as well as the plural forms of such terms and to the masculine as well as to the feminine and neuter genders of such term. Any agreement, instrument or statute defined or referred to herein or in any agreement or instrument that is referred to herein means such agreement, instrument or statute as from time to time amended, modified or supplemented, including (in the case of agreements or instruments) by waiver or consent and (in the case of statutes) by succession of comparable successor statutes and references to all attachments thereto and instruments incorporated therein. References to a person are also to its permitted successors and assigns. The Parties have participated jointly in the negotiating and drafting of this Agreement. In the event of an ambiguity or a question of intent or interpretation arises, this Agreement shall be construed as if drafted jointly by the Parties, and no presumption or burden of proof shall arise favoring or disfavoring any Party by virtue of the authorship of any provisions of this Agreement. In the event of a conflict between this Agreement and any Exhibit hereto, this Agreement shall govern.

Section 11.17    Submission to Jurisdiction. Each Party (i) submits to the exclusive jurisdiction of the state courts of the State of New York in New York County and to the jurisdiction of the United States District Court for the Southern District of New York for the purposes of each and every suit, action or other proceeding arising out of or based upon this Agreement or the subject matter hereof brought by the Parties, it being expressly understood and agreed that this consent to jurisdiction shall be self-operative and no further instrument or action, other than service of process as required by law, shall be necessary in order to confer jurisdiction upon a party in any such court; and (ii) waives, and agrees not to assert, by way of motion, as a defense, or otherwise, in any suit, action or proceeding brought in any such court, any claim that either the Purchaser or Sellers are not subject personally to the jurisdiction of the above-named courts, that the Purchaser’s or Sellers’ property is exempt or immune from attachment or execution, that the suit, action or proceeding is brought in an inconvenient forum, that the venue of the suit, action or proceeding is improper or that this Agreement or the subject matter hereof may not be enforced in or by such court, and further agrees to waive, to the fullest extent permitted under Applicable Law, the benefit of any defense that would hinder, fetter or delay the levy, execution or collection of any amount to which Sellers, the Purchaser or its respective successors or assigns are entitled pursuant to the final judgment of any court having jurisdiction.

Section 11.18    Severability. If any term or other provision of this Agreement is invalid, illegal or incapable of being enforced by any rule of Applicable Law or public policy, all other conditions and provisions of this Agreement shall nevertheless remain in full force and effect. Upon such determination that any term or other provision is invalid, illegal or incapable of being enforced, the Parties shall negotiate in good faith to modify this Agreement so as to effect the original intent of the Parties as closely as possible to the fullest extent permitted by Applicable Law in an acceptable manner to the end that the transactions contemplated hereby are fulfilled to the extent possible.

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[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

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IN WITNESS WHEREOF, each of the Parties has executed this Agreement as of the date

first written above.

SELLERS:
Harvest Managing Member II LLC

By:	/s/Scott Shanaberger
Name:	Scott Shanaberger
Title:	Chief Financial Officer

Harvest Mezzanine II LLC

By:	/s/Scott Shanaberger
Name:	Scott Shanaberger
Title:	Chief Financial Officer

Signature Pages to the NHI Purchase Agreement

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Bridgecreek Retirement Residence LP
Merced Retirement Residence LP
Roseville Retirement Residence LP
Modesto Retirement Residence LPBy: Harvest General Partner II LLC, Its General Partner

By:	/s/Scott Shanaberger
Name:	Scott Shanaberger
Title:	Chief Financial Officer

Signature Pages to the NHI Purchase Agreement

886463.02-NYCSR06A - MSW

Rogers Retirement Residence LLC
Fort Wayne Retirement Residence LLC
Newberg Retirement Residence LLC
Fort Smith Retirement Residence LLC
Athens Retirement Residence LLC
Kenner Investors II LLC
Columbus Retirement Residence LLC
Savannah Retirement Residence LLC
Westminster Retirement Residence LLC
Voorhees Retirement Residence LLC
Gahanna Retirement Residence LLCBy: Harvest Managing Member II LLC, Its Managing Member

By:	/s/Scott Shanaberger
Name:	Scott Shanaberger
Title:	Chief Financial Officer

Signature Pages to the NHI Purchase Agreement

886463.02-NYCSR06A - MSW

Harvest Bay Park Retirement Residence LLC
Harvest Bedford Retirement Residence LLC
Harvest Camelot Retirement Residence LLC
Harvest Chateau de Boise Retirement Residence II LLC
Harvest Fig Garden Retirement Residence LLC
Harvest Garden Club Retirement Residence LLC
Harvest Kamlu-Vancouver Retirement Residence LLC
Harvest Orchard Park Retirement Residence LLC
Broken Arrow Retirement Residence LLCBy: Harvest Mezzanine II LLC

By:	/s/Scott Shanaberger
Name:	Scott Shanaberger
Title:	Chief Financial Officer

[END OF SELLERS’ SIGNATURE PAGES]

Signature Pages to the NHI Purchase Agreement

886463.02-NYCSR06A - MSW

PURCHASER:

NHI-REIT OF NEXT HOUSE, LLC

By:	/s/J. Justin Hutchens
Name:	J. Justin Hutchens
Title:	President

[END OF PURCHASER’S SIGNATURE PAGES]

Signature Pages to the NHI Purchase Agreement

886463.02-NYCSR06A - MSW

JOINDER BY HARVEST FACILITY HOLDINGS LP:

Harvest Facility Holdings LP (“Sellers’ Guarantor”), hereby joins in the execution of this Agreement and hereby unconditionally guaranties to the Purchaser the full and faithful payment and performance by the Sellers of all of their obligations to the Purchaser under this Agreement. The liability of Sellers’ Guarantor hereunder shall in no way be affected, diminished or released by any extension of time or forbearance that may be granted by the Purchaser to the Sellers or by the acceptance by the Purchaser of additional security for performance of the Agreement or any release, substitution or changes in any such security, or by any modifications, amendments or extensions of the Agreement agreed upon by the Sellers and the Purchaser. The Purchaser, in its sole discretion, may waive or release any provision or provisions of the Agreement as the Purchaser may deem proper or desirable, without any notice to or further assent from Sellers’ Guarantor and without in any manner impairing or affecting this guaranty as to any provision(s) not so waived or released or any of the Sellers’ Guarantor’s obligations hereunder. Sellers’ Guarantor waives all rights and defenses arising out of an election of remedies by the Purchaser, even though that election of remedies has destroyed Sellers’ Guarantor’s rights of subrogation and reimbursement against the Sellers. Sellers’ Guarantor waives all suretyship rights or defenses under applicable law. The Purchaser may enforce this guaranty against the Sellers’ Guarantor without the necessity at any time of resorting to or exhausting any other remedy or any other security or collateral and without the necessity at any time of having recourse to any of its rights or remedies under the Agreement, and without the necessity of proceeding against the Sellers. This is a guaranty of payment and performance and not merely of collection. The obligations of Sellers’ Guarantor hereunder are absolute, primary, unconditional and irrevocable obligations, enforceable by the Purchaser at the Purchaser’s election, simultaneously with or after proceeding against Sellers or without the necessity of any suit or proceedings against the Sellers, and in any event, without the necessity of any notice of non-payment, non-performance or non-observance, or of any notice of acceptance of this guaranty or any other notice or demand to which Sellers’ Guarantor might otherwise be entitled or that may be required to preserve any rights against Sellers’ Guarantor, all of which Sellers’ Guarantor expressly waives.

HARVEST FACILITY HOLDINGS LP

By:	/s/Scott Shanaberger
Name:	Scott Shanaberger
Title:	Chief Financial Officer

Signature Pages to the NHI Purchase Agreement

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JOINDER BY NATIONAL HEALTH INVESTORS, INC.:

National Health Investors, Inc. (“Purchaser’s Guarantor”), hereby joins in the execution of this Agreement and hereby unconditionally guaranties to the Sellers the full and faithful payment and performance by the Purchaser of all of their obligations to the Sellers under this Agreement. The liability of Purchaser’s Guarantor hereunder shall in no way be affected, diminished or released by any extension of time or forbearance that may be granted by the Sellers to the Purchaser or by the acceptance by the Sellers of additional security for performance of the Agreement or any release, substitution or changes in any such security, or by any modifications, amendments or extensions of the Agreement agreed upon by the Purchaser and the Sellers. The Sellers, in their sole discretion, may waive or release any provision or provisions of the Agreement as the Sellers may deem proper or desirable, without any notice to or further assent from Purchaser’s Guarantor and without in any manner impairing or affecting this guaranty as to any provision(s) not so waived or released or any of the Purchaser’s Guarantor’s obligations hereunder. Purchaser’s Guarantor waives all rights and defenses arising out of an election of remedies by the Sellers, even though that election of remedies has destroyed Purchaser’s Guarantor’s rights of subrogation and reimbursement against the Purchaser. Purchaser’s Guarantor waives all suretyship rights or defenses under applicable law. The Sellers may enforce this guaranty against the Purchaser’s Guarantor without the necessity at any time of resorting to or exhausting any other remedy or any other security or collateral and without the necessity at any time of having recourse to any of its rights or remedies under the Agreement, and without the necessity of proceeding against the Purchaser. This is a guaranty of payment and performance and not merely of collection. The obligations of Purchaser’s Guarantor hereunder are absolute, primary, unconditional and irrevocable obligations, enforceable by the Sellers at the Sellers’ election, simultaneously with or after proceeding against Purchaser or without the necessity of any suit or proceedings against the Purchaser, and in any event, without the necessity of any notice of non-payment, non-performance or non-observance, or of any notice of acceptance of this guaranty or any other notice or demand to which Purchaser’s Guarantor might otherwise be entitled or that may be required to preserve any rights against Purchaser’s Guarantor, all of which Purchaser’s Guarantor expressly waives.

NATIONAL HEALTH INVESTORS, INC.

By:	/s/J. Justin Hutchens
Name:	J. Justin Hutchens
Title:	President

Joinder to the NHI Purchase Agreement

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Schedule 1
Required Approvals

1. Payment of certain indebtedness payable pursuant to that certain Loan Agreement (as amended, restated, supplemented or modified from time to time), dated as of February 28, 2007, by and among the borrowers identified therein and Citigroup Global Markets Realty Corp. , and Goldman Sachs Commercial Mortgage Capital, L.P., as succeeded by Fannie Mae, in the original principal amount of $1,756,094,352.47.

Joinder to the NHI Purchase Agreement

886463.02-NYCSR06A - MSW

EX-10.32

EXHIBIT 10.32

John M. Brittingham

Harwell Howard Hyne Gabbert & Manner, P.C.

333 Commerce Street, Suite 1500

Nashville, TN 37201

AMENDMENT NO. 7 TO MASTER AGREEMENT TO LEASE

This Amendment No. 7 to Master Agreement to Lease (hereinafter “7^th Amendment”) is made to that certain Master Agreement to Lease between National Health Investors, Inc., a Maryland corporation (“Landlord”) and NHC/OP, L.P., a Delaware limited partnership (“Tenant” ) dated October 17, 1991, as amended by that certain Amendment No. 1 to Master Agreement of Lease, effective June 2, 1993, as further amended by that Amendment No. 2 to Master Agreement of Lease, effective January 15, 1996, as further amended by that certain Amendment No. 3 to Master Agreement of Lease, effective July 22, 1997, as further amended by that certain Amendment No. 4 to Master Agreement, effective December 31, 1997, as further amended by that certain Amendment No. 5 to Master Agreement of Lease, effective January 1, 2007, as further amended by Amendment No. 6 to Master Agreement to Lease dated December 26, 2012, as further amended by Amended and Restated Amendment No. 6 to Master Agreement to Lease dated as of December 26, 2012 (collectively the “Master Lease”) and is entered into on this the 28th day of August, 2013.

WHEREAS, pursuant to the Assignment of Master Agreement to Lease, effective December 31, 1997, National HealthCare Corporation, successor by merger to National HealthCare L.P. formerly National HealthCorp L.P., assigned its obligations and rights of the Master Lease to NHC/OP, L.P. (“Assignment”); and

WHEREAS, in Amendment No. 5 to the Master Agreement of Lease, Amendment No. 6 to the Master Agreement to Lease and, Amended and Restated Amendment No. 6 to the Master Agreement to Lease, (collectively the “Amendments”) the Tenant was erroneously identified; and

WHEREAS, the intent of this 7^th Amendment is to correct the name of the Tenant to NHC/OP, L.P in the Amendments.

NOW THEREFORE, IN CONSIDERATION OF THE PREMISES the parties do hereby amend the Master Lease as follows:

1.The Amendments are hereby amended to change the name of the Tenant from National HealthCare Corporation to NHC/OP, L.P.

2.In all other respects the terms and conditions of the Master Lease and Assignment remain in full force and effect.

3.Capitalized terms not otherwise defined in this Amendment shall have the meanings set forth in the Master Lease.

(Remainder of page intentionally left blank.)

IN WITNESS WHEREOF, the parties have executed this 7^th Amendment as of the date set forth above.

LANDLORD:

NATIONAL HEALTH INVESTORS, INC.,

a Maryland corporation

By: /s/ J. Justin Hutchens

J. Justin Hutchens, President and CEO

TENANT:

NHC/OP, L.P.,

a Delaware limited liability company

By: NHC Delaware, Inc.,

a Delaware corporation

Its: General Partner

By: /s/ Stephen F. Flatt

Title:     VP

Name: Steve Flatt

EX-21

EXHIBIT 21

Subsidiaries

	Entity Name	Jurisdiction
1.	NHI/REIT, Inc.	MD
2.	Florida Holdings IV, LLC	DE
3.	Orangeburg Nursing Home, Inc.	GA
4.	NHI/Anderson, LLC	DE
5.	NHI/Laurens, LLC	DE
6.	Texas NHI Investors, LLC	TX
7.	NHI of Paris, LLC	DE
8.	NHI of San Antonio, LLC	DE
9.	NHI of East Houston, LLC	DE
10.	NHI of Northwest Houston, LLC	DE
11.	NHI REIT of Alabama, L.P.	AL
12.	NHI-REIT of Arizona, Limited Partnership	AZ
13.	NHI-REIT of California, LP	CA
14.	NHI/REIT of Florida, L.P.	FL
15.	NHI-REIT of Florida, LLC	DE
16.	NHI-REIT of Georgia, L.P.	GA
17.	NHI-REIT of Idaho, L.P.	ID
18.	NHI of Kansas, L.P.	KS
19.	NHI-REIT of Minnesota, LLC	DE
20.	NHI-REIT of Missouri, LP	MO
21.	NHI-REIT of Northeast, LLC	DE
22.	NHI-REIT of New Jersey, L.P.	NJ
23.	NHI-REIT of Pennsylvania, L.P.	PA
24.	NHI-REIT of South Carolina, L.P.	SC
25.	NHI-REIT of Tennessee, LLC	TN
26.	NHI-REIT of Texas, L.P.	TX
27.	NHI-REIT of Virginia, L.P.	VA
28.	NHI Selah Properties, LLC	DE
29.	NHI of Ennis, LLC	DE
30.	NHI of Greenville, LLC	DE
31.	NHI of North Houston, LLC	DE
32.	NHI of West Houston, LLC	DE
33.	NHI-REIT of Washington, LLC	DE
34.	International Health Investors, Inc.	MD
35.	NHI of Kyle, LLC	DE
36.	NHI-SS TRS, LLC	DE
37.	NHI PropCo, LLC	DE
38.	NHI-REIT of Oregon, LLC	DE
39.	NHI-REIT of Wisconsin, LLC	DE
40.	NHI-REIT of Ohio, LLC	DE

	Entity Name	Jurisdiction
41.	NHI-REIT of Maryland, LLC	DE
42.	NHI-REIT of Next House, LLC	DE
43.	NHI-Bickford RE, LLC	DE
44.	Myrtle Beach Retirement Residence LLC	OR
45.	Voorhees Retirement Residence LLC	OR
46.	Cedar Falls Bickford Cottage, L.L.C.	KS
47.	Grand Island Bickford Cottage, L.L.C.	KS
48.	Wabash Bickford Cottage, L.L.C.	KS
49.	Bickford Master II, L.L.C.	KS
50.	Battle Creek Bickford Cottage, L.L.C.	KS
51.	Bickford of Carmel, LLC	KS
52.	Cedar Falls Bickford Cottage Opco, LLC	KS
53.	Grand Island Bickford Cottage Opco, LLC	KS
54.	Wabash Bickford Cottage Opco, LLC	KS
55.	Bickford of Crown Point, LLC	KS
56.	Bickford of Greenwood, LLC	KS
57.	Midland Bickford Cottage, L.L.C.	KS
58.	Saginaw Bickford Cottage, L.L.C.	KS
59.	Care YBE Subsidiary LLC	DE
60.	Bickford Master I, L.L.C.	KS
61.	Crawfordsville Bickford Cottage, L.L.C.	KS
62.	Moline Bickford Cottage, L.L.C.	KS
63.	Bickford at Mission Springs I, L.L.C.	KS
64.	Bickford at Mission Springs II, L.L.C.	KS
65.	Bickford of Overland Park, L.L.C.	KS
66.	Bickford at Mission Springs Opco I, LLC	KS
67.	Bickford at Mission Springs Opco II, LLC	KS
68.	Bickford of Overland Park Opco, LLC	KS
69.	Clinton Bickford Cottage, L.L.C.	KS
70.	Iowa City Bickford Cottage, L.L.C.	KS
71.	Lafayette Bickford Cottage, L.L.C.	KS
72.	Lansing Bickford Cottage, L.L.C.	KS
73.	Peoria Bickford Cottage, L.L.C.	KS
74.	Ames Bickford Cottage, L.L.C.	KS
75.	Bourbonnais Bickford House, L.L.C.	KS
76.	Burlington Bickford Cottage, L.L.C.	KS
77.	Fort Dodge Bickford Cottage, L.L.C.	KS
78.	Lincoln Bickford Cottage, L.L.C.	KS
79.	Marshalltown Bickford Cottage, L.L.C.	KS
80.	Muscatine Bickford Cottage, L.L.C.	KS
81.	Omaha II Bickford Cottage, L.L.C.	KS
82.	Quincy Bickford Cottage, L.L.C.	KS
83.	Rockford Bickford House, L.L.C.	KS
84.	Springfield Bickford House, L.L.C.	KS

	Entity Name	Jurisdiction
85.	Urbandale Bickford Cottage, L.L.C.	KS
86.	JV Landlord-Battle Creek, LLC	DE
87.	JV Landlord-Clinton, LLC	DE
88.	JV Landlord-Iowa City, LLC	DE
89.	JV Landlord-Lansing, LLC	DE
90.	JV Landlord-Midland, LLC	DE
91.	JV Landlord-Peoria II, LLC	DE
92.	JV Landlord-Saginaw, LLC	DE
93.	JV Bickford Master Tenant, LLC	KS

EX-23.1

EXHIBIT 23.1

CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

National Health Investors, Inc.

Murfreesboro, Tennessee

We hereby consent to the incorporation by reference in the Registration Statements on Form S-3 (No. 333-192338) and on Form S-8 (No. 333-127179 and No. 333-186854) of National Health Investors, Inc. of our reports dated February 14, 2014, relating to the consolidated financial statements, financial statement schedules and the effectiveness of National Health Investors, Inc.'s internal control over financial reporting, which appear in this Form 10-K.

/s/ BDO USA, LLP

Nashville, Tennessee

February 14, 2014

EX-31.1

Exhibit 31.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, J. Justin Hutchens, certify that:

1. I have reviewed this annual report on Form 10-K of the registrant, National Health Investors, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c. Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d. Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:	February 14, 2014	/s/ J. Justin Hutchens
		J. Justin Hutchens
		President, Chief Executive Officer,
		and Director

EX-31.2

Exhibit 31.2

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Roger R. Hopkins, certify that:

1. I have reviewed this annual report on Form 10-K of the registrant, National Health Investors, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c. Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d. Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions) :

a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:	February 14, 2014	/s/ Roger R. Hopkins
		Roger R. Hopkins
		Chief Accounting Officer
		(Principal Financial Officer and Principal Accounting Officer)

EX-32

Exhibit 32

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

The undersigned hereby certify, pursuant to 18 U.S.C. Section 1350, as added by Section 906 of the Sarbanes-Oxley Act of 2002, that, to the undersigned's best knowledge and belief, the Annual Report on Form 10-K for National Health Investors, Inc. ("Issuer") for the year ended December 31, 2013 as filed with the Securities and Exchange Commission on the date hereof (the "Report"):

(a) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(b) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date:	February 14, 2014	/s/ J. Justin Hutchens
		J. Justin Hutchens
		President, Chief Executive Officer,
		and Director
Date:	February 14, 2014	/s/ Roger R. Hopkins
		Roger R. Hopkins
		Chief Accounting Officer
		(Principal Financial Officer and Principal Accounting Officer)

EX-99.1

EXHIBIT 99.1

NATIONAL HEALTH INVESTORS, INC.

INDEX TO FINANCIAL STATEMENT SCHEDULES

Financial Statement Schedules

Report of Independent Registered Public Accounting Firm

Schedule II - Valuation and Qualifying Accounts

Schedule III - Real Estate and Accumulated Depreciation

Schedule IV - Mortgage Loans on Real Estate

Report of Independent Registered Public Accounting Firm

Board of Directors and Stockholders

National Health Investors, Inc.

Murfreesboro, Tennessee

The audits referred to in our report dated February 14, 2014 relating to the consolidated financial statements of National Health Investors, Inc., which is contained in Item 8 of this Form 10-K, also included the audits of the financial statement schedules listed in the accompanying index. These financial statement schedules are the responsibility of the Company's management. Our responsibility is to express an opinion on these financial statement schedules based on our audits.

In our opinion, such financial statement schedules, when considered in relation to the basic consolidated financial statements taken as a whole, present fairly, in all material respects, the information set forth therein.

/s/ BDO USA, LLP

Nashville, Tennessee

February 14, 2014

NATIONAL HEALTH INVESTORS, INC.

SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS

FOR THE YEARS ENDED DECEMBER 31, 2013, 2012, AND 2011

(in thousands)

	Balance		Additions
	Beginning		Charged to Costs				Balance
	of Period		and Expenses1		Deductions		End of Period
For the year ended December 31, 2013
Loan loss allowance	$	—	$	—	$	—	$	—
For the year ended December 31, 2012
Loan loss allowance	$	—	$	—	$	—	$	—
For the year ended December 31, 2011
Loan loss allowance	$	—	$	—	$	—	$	—

¹ In the Consolidated Statements of Income, we report the net amount of our provision for loan and realty losses and our recoveries of amounts previously written down. For 2013, net losses were $1,976,000, consisting of a $4,037,000 note impairment and a $2,061,000 recovery and there was no provision for losses during the year. For 2012, net recoveries were $2,195,000, consisting of a $4,495,000 recovery and a $2,300,000 note impairment and there was no provision for losses during the year. For 2011, net recoveries were $99,000 and there was no provision for losses during the year.

NATIONAL HEALTH INVESTORS, INC.
SCHEDULE III - REAL ESTATE AND ACCUMULATED DEPRECIATION
December 31, 2013
(in thousands)
							Costs		Gross Amount at Which
			Initial Cost to Company				Capitalized		Carried at Close of Period								Date
					Buildings &		Subsequent to				Buildings &				Accumulated		Acquired/
	Encumbrances		Land		Improvements		Acquisition		Land		Improvements		Total		Depreciation		Constructed
Skilled Nursing Facilities
Anniston, AL	$	—	$	70	$	4,476	$	—	$	70	$	4,476	$	4,546	$	3,132	10/17/1991
Moulton, AL	—		25		688		—		25		688		713		688		10/17/1991
Avondale, AZ	—		453		6,678		—		453		6,678		7,131		3,073		8/13/1996
Brooksville, FL	—		1,217		16,166		—		1,217		16,166		17,383		1,583		2/1/2010
Crystal River, FL	—		912		12,117		—		912		12,117		13,029		1,186		2/1/2010
Dade City, FL	—		605		8,042		—		605		8,042		8,647		787		2/1/2010
Hudson, FL (2 facilities)	—		1,290		22,392		—		1,290		22,392		23,682		8,398		Various
Merritt Island, FL	—		701		8,869		—		701		8,869		9,570		6,351		10/17/1991
New Port Richey, FL	—		228		3,023		—		228		3,023		3,251		296		2/1/2010
Plant City, FL	—		405		8,777		—		405		8,777		9,182		6,495		10/17/1991
Stuart, FL	—		787		9,048		—		787		9,048		9,835		6,541		10/17/1991
Trenton, FL	—		851		11,312		—		851		11,312		12,163		1,108		2/1/2010
Grangeville, ID	—		122		2,491		—		122		2,491		2,613		1,163		8/13/1996
Glasgow, KY	—		33		2,110		—		33		2,110		2,143		1,850		10/17/1991
Greenfield, MA	—		370		4,341		—		370		4,341		4,711		38		8/30/2013
Holyoke, MA	—		110		943		—		110		943		1,053		9		8/30/2013
Quincy, MA	—		450		710		—		450		710		1,160		6		8/30/2013
Taunton, MA	—		900		5,906		—		900		5,906		6,806		52		8/30/2013
Desloge, MO	—		178		3,804		—		178		3,804		3,982		2,871		10/17/1991
Joplin, MO	—		175		4,034		—		175		4,034		4,209		2,404		10/17/1991
Kennett, MO	—		180		4,928		—		180		4,928		5,108		3,783		10/17/1991
Maryland Heights, MO	—		482		5,512		—		482		5,512		5,994		4,766		10/17/1991
St. Charles, MO	—		150		4,790		—		150		4,790		4,940		3,618		10/17/1991
Manchester, NH	—		790		20,077		—		790		20,077		20,867		173		8/30/2013
Epsom, NH	—		630		2,191		—		630		2,191		2,821		20		8/30/2013
Anderson, SC	—		308		4,643		—		308		4,643		4,951		3,894		10/17/1991
Greenwood, SC	—		222		3,457		—		222		3,457		3,679		2,861		10/17/1991
Laurens, SC	—		42		3,426		—		42		3,426		3,468		2,610		10/17/1991
Orangeburg, SC	—		300		3,715		—		300		3,715		4,015		537		9/25/2008
Athens, TN	—		38		1,463		—		38		1,463		1,501		1,305		10/17/1991
Chattanooga, TN	—		143		2,309		—		143		2,309		2,452		1,990		10/17/1991
Dickson, TN	—		90		3,541		—		90		3,541		3,631		2,732		10/17/1991
Franklin, TN	—		47		1,130		—		47		1,130		1,177		924		10/17/1991
Hendersonville, TN	—		363		3,837		—		363		3,837		4,200		2,569		10/17/1991
Johnson City, TN	—		85		1,918		—		85		1,918		2,003		1,751		10/17/1991
Lewisburg, TN (2 facilities)	—		46		994		—		46		994		1,040		914		10/17/1991

NATIONAL HEALTH INVESTORS, INC.
SCHEDULE III - REAL ESTATE AND ACCUMULATED DEPRECIATION
December 31, 2013
(in thousands)
				Costs	Gross Amount at Which
		Initial Cost to Company		Capitalized	Carried at Close of Period				Date
			Buildings &	Subsequent to		Buildings &		Accumulated	Acquired/
	Encumbrances	Land	Improvements	Acquisition	Land	Improvements	Total	Depreciation	Constructed
McMinnville, TN	—	73	3,618	—	73	3,618	3,691	2,739	10/17/1991
Milan, TN	—	41	1,826	—	41	1,826	1,867	1,501	10/17/1991
Pulaski, TN	—	53	3,921	—	53	3,921	3,974	2,987	10/17/1991
Lawrenceburg, TN	—	98	2,901	—	98	2,901	2,999	2,058	10/17/1991
Dunlap, TN	—	35	3,679	—	35	3,679	3,714	2,549	10/17/1991
Smithville, TN	—	35	3,816	—	35	3,816	3,851	2,823	10/18/1991
Somerville, TN	—	26	678	—	26	678	704	621	10/19/1991
Sparta, TN	—	80	1,602	—	80	1,602	1,682	1,268	10/20/1991
Canton, TX	—	420	12,330	—	420	12,330	12,750	273	4/18/2013
Corinth, TX	—	1,075	13,935	—	1,075	13,935	15,010	332	4/18/2013
Ennis, TX	—	986	9,025	—	986	9,025	10,011	694	10/31/2011
Greenville, TX	—	1,800	13,948	—	1,800	13,948	15,748	964	10/31/2011
Houston, TX (5 facilities)	—	3,818	63,921	—	3,818	63,921	67,739	8,308	Various
Kyle, TX	—	1,096	12,279	—	1,096	12,279	13,375	683	6/11/2012
Mesquite, TX	—	180	6,162	—	180	6,162	6,342	2,223	9/1/1998
Paris, TX	—	60	12,040	—	60	12,040	12,100	1,650	6/30/2009
San Antonio, TX	—	300	12,150	—	300	12,150	12,450	1,807	6/30/2009
Bristol, VA	—	176	2,511	—	176	2,511	2,687	1,903	10/17/1991
	—	24,150	384,200	—	24,150	384,200	408,350	117,861
Assisted Living Facilities
Rainbow City, AL	—	670	11,330	—	670	11,330	12,000	82	10/31/2013
Gilbert, AZ	—	451	3,142	79	451	3,221	3,672	1,190	12/31/1998
Glendale, AZ	—	387	3,823	57	387	3,880	4,267	1,444	12/31/1998
Tucson, AZ (2 facilities)	—	919	6,656	190	919	6,846	7,765	2,516	12/31/1998
Bartow, FL	—	225	3,192	—	225	3,192	3,417	299	11/30/2010
Lakeland, FL	—	250	3,167	—	250	3,167	3,417	298	11/30/2010
Maitland, FL	—	1,687	5,428	—	1,687	5,428	7,115	2,652	8/6/1996
St. Cloud, FL	—	307	3,117	—	307	3,117	3,424	293	11/30/2010
Greensboro, GA	—	572	4,849	—	572	4,849	5,421	312	9/15/2011
Ames, IA(C)	80,080	360	4,670	—	360	4,670	5,030	65	6/28/2013
Burlington, IA(C)	—	200	8,374	—	200	8,374	8,574	119	6/28/2013
Cedar Falls, IA	—	260	4,700	—	260	4,700	4,960	69	6/28/2013
Clinton, IA	—	133	3,215	—	133	3,215	3,348	304	6/30/2010
Ft. Dodge, IA(C)	—	100	7,208	—	100	7,208	7,308	99	6/28/2013
Iowa City, IA	—	297	2,725	—	297	2,725	3,022	296	6/30/2010
Marshalltown, IA(C)	—	240	6,208	—	240	6,208	6,448	87	6/28/2013
Muscatine, IA(C)	—	140	1,802	—	140	1,802	1,942	27	6/28/2013

NATIONAL HEALTH INVESTORS, INC.
SCHEDULE III - REAL ESTATE AND ACCUMULATED DEPRECIATION
December 31, 2013
(in thousands)
				Costs	Gross Amount at Which
		Initial Cost to Company		Capitalized	Carried at Close of Period				Date
			Buildings &	Subsequent to		Buildings &		Accumulated	Acquired/
	Encumbrances	Land	Improvements	Acquisition	Land	Improvements	Total	Depreciation	Constructed
Urbandale, IA(C)	—	540	4,292	—	540	4,292	4,832	64	6/28/2013
Weiser, ID	—	20	2,433	—	20	2,433	2,453	64	12/21/2012
Bourbonnais, IL(C)	—	170	16,594	—	170	16,594	16,764	231	6/28/2013
Moline, IL(C)	—	250	5,630	—	250	5,630	5,880	80	6/28/2013
Peoria, IL	—	403	4,532	—	403	4,532	4,935	502	10/19/2009
Quincy, IL(C)	—	360	12,403	—	360	12,403	12,763	171	6/28/2013
Rockford, IL(C)	—	390	12,576	—	390	12,576	12,966	180	6/28/2013
Springfield, IL(C)	—	450	19,355	—	450	19,355	19,805	269	6/28/2013
Carmel, IN	—	579	2,133	—	579	2,133	2,712	—	Under Const.
Crawfordsville, IN(C)	—	300	3,134	—	300	3,134	3,434	46	6/28/2013
Crown Point, IN	—	791	7,020	—	791	7,020	7,811	20	10/30/2013
Greenwood, IN	—	463	6,810	—	463	6,810	7,273	18	11/7/2013
Lafayette, IN	—	546	4,583	—	546	4,583	5,129	430	6/30/2010
Wabash, IN	—	320	2,242	—	320	2,242	2,562	37	6/28/2013
Overland Park, KS	—	2,199	20,026	—	2,199	20,026	22,225	881	9/30/2012
Mission, KS	—	1,901	17,310	—	1,901	17,310	19,211	761	9/30/2012
Bastrop, LA	—	325	2,456	—	325	2,456	2,781	211	4/30/2011
Bossier City, LA	—	500	3,344	—	500	3,344	3,844	301	4/30/2011
Minden, LA	—	280	1,698	—	280	1,698	1,978	145	4/30/2011
West Monroe, LA	—	770	5,627	—	770	5,627	6,397	454	4/30/2011
Baltimore, MD	—	860	8,078	—	860	8,078	8,938	37	10/31/2013
Battle Creek, MI	—	398	3,093	—	398	3,093	3,491	356	10/19/2009
Lansing, MI	—	340	7,908	—	340	7,908	8,248	898	10/19/2009
Midland, MI	—	504	6,612	—	504	6,612	7,116	718	10/19/2009
Saginaw, MI	—	248	4,212	—	248	4,212	4,460	474	10/19/2009
Champlin, MN	—	980	4,430	—	980	4,430	5,410	509	3/10/2010
Hugo, MN	—	400	3,800	—	400	3,800	4,200	422	3/10/2010
Maplewood, MN	—	1,700	6,510	—	1,700	6,510	8,210	742	3/10/2010
North Branch, MN	—	595	2,985	—	595	2,985	3,580	371	3/10/2010
Grand Island, NE	—	370	5,029	—	370	5,029	5,399	71	6/28/2013
Lincoln, NE(C)	—	380	10,904	—	380	10,904	11,284	149	6/28/2013
Omaha, NE(C)	—	480	7,039	—	480	7,039	7,519	97	6/28/2013
Marysville, OH	—	1,250	13,950	—	1,250	13,950	15,200	212	7/1/2013
Ontario, OR (2 facilities)	—	428	6,128	—	428	6,128	6,556	162	12/21/2012
Conway, SC	—	344	2,877	94	344	2,971	3,315	1,095	12/31/1998
Gallatin, TN	—	326	2,277	61	326	2,338	2,664	861	3/31/1999
Kingsport, TN	—	354	2,568	66	354	2,634	2,988	973	12/31/1998
Tullahoma, TN	—	191	2,216	57	191	2,273	2,464	825	3/31/1999

NATIONAL HEALTH INVESTORS, INC.
SCHEDULE III - REAL ESTATE AND ACCUMULATED DEPRECIATION
December 31, 2013
(in thousands)
				Costs	Gross Amount at Which
		Initial Cost to Company		Capitalized	Carried at Close of Period				Date
			Buildings &	Subsequent to		Buildings &		Accumulated	Acquired/
	Encumbrances	Land	Improvements	Acquisition	Land	Improvements	Total	Depreciation	Constructed
Beaver Dam, WI	—	210	20,149	—	210	20,149	20,359	581	12/21/2012
	80,080	29,113	358,569	604	29,113	359,173	388,286	24,570
Independent Living Facilities
Rogers, AR	—	1,470	26,641	—	1,470	26,641	28,111	—	12/23/2013
Fort Smith, AR	—	590	22,002	—	590	22,002	22,592	—	12/23/2013
Pinole, CA	—	1,020	18,055	—	1,020	18,055	19,075	—	12/23/2013
West Covina, CA	—	940	20,144	—	940	20,144	21,084	—	12/23/2013
Hemet, CA	—	1,250	12,802	—	1,250	12,802	14,052	—	12/23/2013
Fresno, CA	—	420	11,628	—	420	11,628	12,048	—	12/23/2013
Merced, CA	—	350	18,226	—	350	18,226	18,576	—	12/23/2013
Roseville, CA	—	630	30,497	—	630	30,497	31,127	—	12/23/2013
Modesto, CA	—	1,170	21,922	—	1,170	21,922	23,092	—	12/23/2013
Athens, GA	—	910	32,225	—	910	32,225	33,135	—	12/23/2013
Columbus, GA	—	570	9,469	—	570	9,469	10,039	—	12/23/2013
Savannah, GA	—	1,200	16,368	—	1,200	16,368	17,568	—	12/23/2013
Boise, ID	—	400	12,652	—	400	12,652	13,052	—	12/23/2013
Fort Wayne, IN	—	310	13,747	—	310	13,747	14,057	—	12/23/2013
Kenner, LA	—	310	26,803	—	310	26,803	27,113	—	12/23/2013
St. Charles, MO	—	344	3,181	—	344	3,181	3,525	2,229	10/17/1991
Voorhees, NJ	—	670	22,926	—	670	22,926	23,596	—	12/23/2013
Gahanna, OH	—	920	23,176	—	920	23,176	24,096	—	12/23/2013
Broken Arrow, OK	—	2,660	18,416	—	2,660	18,416	21,076	—	12/23/2013
Newberg, OR	—	1,080	18,999	—	1,080	18,999	20,079	—	12/23/2013
Myrtle Beach, SC	—	1,310	25,295	—	1,310	25,295	26,605	—	12/23/2013
Greenville, SC	—	560	16,508	—	560	16,508	17,068	—	12/23/2013
Johnson City, TN	—	55	4,077	—	55	4,077	4,132	2,492	10/17/1991
Chattanooga, TN	—	9	1,567	—	9	1,567	1,576	1,112	10/17/1991
Bellevue, WA	—	780	17,794	—	780	17,794	18,574	—	12/23/2013
Vancouver, WA (2 facilities)	—	1,740	21,850	—	1,740	21,850	23,590	—	12/23/2013
Yakima, WA	—	440	13,114	—	440	13,114	13,554	—	12/23/2013
	—	22,108	480,084	—	22,108	480,084	502,192	5,833
Senior Living Campuses
Loma Linda, CA	—	1,200	10,800	—	1,200	10,800	12,000	381	9/28/2012
Nampa, ID	—	243	4,182	—	243	4,182	4,425	1,931	8/13/1996
Maitland, FL	—	2,317	9,161	—	2,317	9,161	11,478	5,218	8/6/1996
West Palm Beach, FL	—	2,771	4,286	—	2,771	4,286	7,057	3,579	8/6/1996

NATIONAL HEALTH INVESTORS, INC.
SCHEDULE III - REAL ESTATE AND ACCUMULATED DEPRECIATION
December 31, 2013
(in thousands)
							Costs		Gross Amount at Which
			Initial Cost to Company				Capitalized		Carried at Close of Period								Date
					Buildings &		Subsequent to				Buildings &				Accumulated		Acquired/
	Encumbrances		Land		Improvements		Acquisition		Land		Improvements		Total		Depreciation		Constructed
Silverdale, WA	—		1,750		23,860		2,166		1,750		26,026		27,776		906		8/16/2012
	—		8,281		52,289		2,166		8,281		54,455		62,736		12,015
Medical Office Buildings
Crestview, FL	—		165		3,349		—		165		3,349		3,514		2,131		6/30/1993
Pasadena, TX	—		631		6,341		—		631		6,341		6,972		4,170		1/1/1995
	—		796		9,690		—		796		9,690		10,486		6,301
Hospitals
La Mesa, CA	—		4,180		8,320		—		4,180		8,320		12,500		1,175		3/10/2010
Jackson, KY	—		540		10,163		5,838		540		16,001		16,541		5,813		6/12/1992
Murfreesboro, TN	—		2,444		17,585		—		2,444		17,585		20,029		548		10/1/2012
	—		7,164		36,068		5,838		7,164		41,906		49,070		7,536
Total continuing operations properties	80,080		91,612		1,320,900		8,608		91,612		1,329,508		1,421,120		174,116
Corporate office	—		158		677		47		158		724		882		146
	$	80,080	$	91,770	$	1,321,577	$	8,655	$	91,770	$	1,330,232	$	1,422,002	$	174,262

NOTES TO SCHEDULE III - REAL ESTATE AND ACCUMULATED DEPRECIATION

(A) See the notes to the consolidated financial statements.

(B) Depreciation is calculated using estimated useful lives up to P40Y0M0D years for all completed facilities.

(C) These properties are encumbered by a mortgage with an outstanding balance of $80,080,000 at December 31, 2013.

(D) Subsequent to NHC's transfer of the original real estate properties in 1991, we have purchased from NHC $33,909,000 of additions to those properties. As the additions were purchased from NHC rather than developed by us, the $33,909,000 has been included as Initial Cost to Company.

(E) At December 31, 2013, the tax basis of the Company's net real estate assets was $1,416,573.

NATIONAL HEALTH INVESTORS, INC.
SCHEDULE III - REAL ESTATE AND ACCUMULATED DEPRECIATION
FOR THE YEARS ENDED DECEMBER 31, 2013, 2012 AND 2011
(in thousands)
	December 31,
	2013			2012			2011
Investment in Real Estate:
Balance at beginning of period	$	698,536		$	541,493		$	463,197
Additions through cash expenditures	654,670			110,601			75,806
Additions through increase in accounts payable	3,086			—			—
Additions through contingent liabilities	1,600			—			5,478
Additions through assumption of debt	80,528			19,250			—
Additions through conveyance of noncontrolling interest	—			10,964			—
Additions through settlement of mortgage note	13,741			—			—
Sale of properties for cash	(30,159		)	(17,259		)	(2,988		)
Reclassification from assets held for sale, net	—			39,323			—
Reclassification to assets held for sale, net	—			(5,836		)	—
Balance at end of period	$	1,422,002		$	698,536		$	541,493
Accumulated Depreciation:
Balance at beginning of period	$	163,146		$	146,698		$	135,543
Addition charged to costs and expenses	20,658			16,981			11,992
Sale of properties	(9,542		)	(6,250		)	(837		)
Reclassification from assets held for sale, net	—			9,942			—
Reclassification to assets held for sale	—			(4,225		)	—
Balance at end of period	$	174,262		$	163,146		$	146,698

NATIONAL HEALTH INVESTORS, INC.
SCHEDULE IV - MORTGAGE LOANS ON REAL ESTATE
December 31, 2013
			Monthly						Amount Subject To
	Interest	Maturity	Payment	Prior	Original		Carrying		Delinquent Principal
	Rate	Date	Terms	Liens	Face Amount		Amount		or Interest
					(in thousands)
First Mortgages:
Skilled nursing facilities:
Grundy, VA	8.0%	2032	$31,000		$	4,396	$	3,172
Virginia Beach, VA	8.0%	2031	$31,000		3,814		2,867
Lexington, VA	8.0%	2032	$21,000		3,089		2,035
Brookneal, VA	8.0%	2031	$21,000		2,780		2,007
Laurel Fork, VA	8.0%	2030	$20,000		2,672		1,948
Front Royal, VA	9.6%	2027	$22,000		2,367		1,645
Assisted living facility in Owatonna, MN	7.5%	2018	$38,000		5,033		3,713
Construction Loan:
Transitional rehabilitation center in Mesa, Arizona	10.0%	2015	Interest Only		13,870		11,870
Second Mortgages:
Skilled nursing facility in Georgetown, TX	14.0%	2015	Interest Only		1,000		1,000
Assisted living facilities:
Ocala, FL	13.0%	2014	Interest Only		2,500		2,500
Naples, FL	12.0%	2016	Interest Only		2,500		1,369
Assisted living facility with carrying amount less than 3% of total carrying amount of mortgages	12.0%	2014					800
							$	34,926	$	—

See the notes to our consolidated financial statements for more information on our mortgage loan receivables.

NATIONAL HEALTH INVESTORS, INC.
SCHEDULE IV - MORTGAGE LOANS ON REAL ESTATE
FOR THE YEARS ENDED DECEMBER 31, 2013, 2012 AND 2011
(in thousands)
	December 31,
	2013		2012		2011
Reconciliation of mortgage loans on real estate
Balance at beginning of period	$	68,214	$	78,672	$	75,465
Additions:
New mortgage loans	1,369		—		6,566
Interest accrued on construction loan	—		—		1,082
Total Additions	1,369		—		7,648
Deductions:
Settlement of mortgage note by real estate acquisition	13,741		—		—
Impairment of mortgage note	4,037		2,300		—
Collection of principal, less recoveries of previous write-downs	16,879		8,158		4,441
Total Deductions	34,657		10,458		4,441
Balance at end of period	$	34,926	$	68,214	$	78,672

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Selected Quarterly Financial Data (Unaudited) Selected Quarterly Financial Data (Unaudited) (2013) (Tables)

12 Months Ended

Dec. 31, 2013

Dec. 31, 2012

Selected Quarterly Financial Data [Abstract]

Quarterly Financial Information [Table Text Block]

The following table sets forth selected quarterly financial data for the two most recent fiscal years (in thousands, except per share amounts).

2013	Quarter Ended
	March 31,		June 30,		September 30,		December 31,
Net revenues	$	27,104	$	27,089	$	30,845	$	32,790
Investment and other gains	22		14		3		3,267
Income from continuing operations attributable to common stockholders	14,050		18,300		22,035		24,114
Discontinued operations	1,693		1,621		20,709		3,661
Net income attributable to common stockholders	$	15,743	$	19,921	$	42,744	$	27,775
Weighted average common shares outstanding:
Basic	27,876,176		27,876,176		27,876,176		29,831,176
Diluted	27,911,584		27,913,727		27,905,545		29,860,614
Earnings per common share:
Basic:
Income from continuing operations attributable to common stockholders	$	.50	$	.65	$	.79	$	.81
Discontinued operations	.06		.06		.74		.12
Net income attributable to common stockholders	$	.56	$	.71	$	1.53	$	.93
Diluted:
Income from continuing operations attributable to common stockholders	$	.50	$	.65	$	.79	$	.81
Discontinued operations	.06		.06		.74		.12
Net income attributable to common stockholders	$	.56	$	.71	$	1.53	$	.93

2012	Quarter Ended
	March 31,		June 30,		September 30,		December 31,
Net revenues	$	23,135	$	20,916	$	23,396	$	25,870
Investment and other gains	37		35		46		4,759
Income from continuing operations attributable to common stockholders	16,355		15,859		13,282		27,171
Discontinued operations	1,994		1,068		1,068		13,934
Net income attributable to common stockholders	$	18,349	$	16,927	$	14,350	$	41,105
Weighted average common shares outstanding:
Basic	27,776,104		27,792,834		27,830,311		27,848,002
Diluted	27,803,222		27,820,831		27,862,582		27,868,245
Earnings per common share:
Basic:
Income from continuing operations attributable to common stockholders	$	.59	$	.57	$	.48	$	.98
Discontinued operations	.07		.04		.04		.50
Net income attributable to common stockholders	$	.66	$	.61	$	.52	$	1.48
Diluted:
Income from continuing operations attributable to common stockholders	$	.59	$	.57	$	.48	$	.97
Discontinued operations	.07		.04		.04		.50
Net income attributable to common stockholders	$	.66	$	.61	$	.52	$	1.47

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Debt Debt (Schedule of Interest Expense) (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Schedule of Interest Expense [Abstract]
Interest expense	$ 8,523	$ 3,172	$ 2,070
Amortization of loan costs	706	320	581
Change in fair value of interest rate swap agreement	0	0	1,197
Total interest expense	$ 9,229	$ 3,492	$ 3,848

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Mortgage And Other Notes Receivable (Details) (USD $)	12 Months Ended							12 Months Ended								12 Months Ended
	Dec. 31, 2013 properties	Dec. 31, 2012	Dec. 31, 2011	Jun. 30, 2013 SeniorTrust [Member]	Aug. 30, 2013 Elder Trust [Member] properties	Dec. 31, 2013 National Healthcare Corporation [Member] properties	Jul. 31, 2013 Bickford Note Investment [Member] properties	Dec. 31, 2013 Georgia SNF Payoff [Member]	Dec. 31, 2012 Georgia SNF Payoff [Member]	Sep. 30, 2013 Georgia SNF Payoff [Member]	Dec. 31, 2013 Secured By Real Estate [Member]	Dec. 31, 2012 Secured By Real Estate [Member]	Dec. 31, 2012 Secured By Real Estate [Member] SeniorTrust [Member]	Dec. 31, 2013 Not Secured By Real Estate [Member]	Dec. 31, 2012 Not Secured By Real Estate [Member]	Dec. 31, 2012 Mortgage Note Principal [Member] Georgia SNF Payoff [Member]	Dec. 31, 2012 Accrued Interest Due [Member] Georgia SNF Payoff [Member]	Dec. 31, 2012 Recovery Of Other Than Temporary Impairment [Member] Georgia SNF Payoff [Member]	Dec. 31, 2012 Gain On Payoff Of Note Receivable [Member] Georgia SNF Payoff [Member]	Oct. 31, 2013 Discovery Regency Pointe [Member] beds_or_units
Proceeds from Equity Method Investment, Dividends or Distributions	$ 0	$ 0
Mortgage and other notes receivable, net	60,639,000	84,250,000		15,000,000			9,200,000			3,293,000	34,926,000	68,214,000	19,037,000	27,082,000	16,036,000					2,500,000
Number of health care properties related to mortgage notes receivables	11						6
Allowance for Doubtful Accounts Receivable	0	0
Mortgage Loans On Real Estate, Impairment	4,037,000	2,300,000	0
Significant Acquisition, Cost, Receivable Cancelled					13,741,000
Number of Real Estate Properties	157				7	42
Number of beds in real estate property							342
Loan Term							2													5 years 0 months 0 days
Note Receivable Interest Rate							12.00%													12.00%
Purchase Option Amount						49,000,000	97,000,000
Loan and realty (recoveries) losses, net	2,061,000	4,495,000	99,000					2,061,000
Number of Units in Real Estate Property																				120
Proceeds from Sale and Collection of Notes Receivable									$ 13,830,000							$ 4,650,000	$ 80,000	$ 4,495,000	$ 4,605,000

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Fair Value of Financial Instruments (Fair Value Measurements, Nonrecurring) (Details) (USD $)	Dec. 31, 2013	Dec. 31, 2012
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Loans and Leases Receivable, Net Amount	$ 60,639,000	$ 84,250,000
Carrying Amount, Fair Value Disclosure [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Loans and Leases Receivable, Net Amount	60,639,000	84,250,000
Fair Value, Inputs, Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Loans and Leases Receivable, Net Amount	67,201,000	93,835,000
Variable Interest Rate Debt [Member] | Carrying Amount, Fair Value Disclosure [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt Instrument, Fair Value Disclosure	537,000,000	203,250,000
Variable Interest Rate Debt [Member] | Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt Instrument, Fair Value Disclosure	537,000,000	203,250,000
Fixed Interest Rate Debt [Member] | Carrying Amount, Fair Value Disclosure [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt Instrument, Fair Value Disclosure	80,080,000	0
Fixed Interest Rate Debt [Member] | Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt Instrument, Fair Value Disclosure	$ 79,365,000	$ 0

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Debt (Narrative) (Details) (USD $)	12 Months Ended				12 Months Ended		12 Months Ended			12 Months Ended			12 Months Ended					12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011	Jun. 28, 2013	Dec. 31, 2013 Debt Instrument, Name, Revolving Credit Facility [Member]	Jun. 28, 2013 Debt Instrument, Name, Revolving Credit Facility [Member]	Dec. 31, 2013 Debt Instrument, Name, 7 Year Term Loan [Member]	Dec. 31, 2013 Debt Instrument, Name, 7 Year Term Loans (A) & (B) [Member]	Jun. 28, 2013 Debt Instrument, Name, 7 Year Term Loans (A) & (B) [Member]	Dec. 31, 2013 Debt Instrument, Name, 4.5 Year Term Loan [Member]	Dec. 31, 2013 Debt Instrument, Name, Fannie Mae (A) [Member]	Dec. 31, 2013 Debt Instrument, Name, Fannie Mae (B) [Member]	Dec. 31, 2013 Debt Instrument, Name, Key Bank [Member]	Aug. 30, 2013 Debt Instrument, Name, Key Bank [Member]	Jun. 28, 2013 Debt Instrument, Name, 7 Year Term Loan (A) [Member]	Jun. 28, 2013 Debt Instrument, Name, 7 Year Term Loan (B) [Member]	May 01, 2012 Line of Credit Facility, 2012 Modification [Member]	Dec. 31, 2013 Interest Rate Swap, Maturity Date April 2019 [Member]	Dec. 31, 2013 Interest Rate Swap, Maturity Date June 2020 [Member]	Dec. 31, 2013 Spread Over LIBOR Prior To Adjustment [Member] Debt Instrument, Name, Revolving Credit Facility [Member]	Dec. 31, 2013 Spread Over LIBOR Prior To Adjustment [Member] Debt Instrument, Name, 7 Year Term Loans (A) & (B) [Member]	Dec. 31, 2013 Spread Over LIBOR After Adjustment [Member] Debt Instrument, Name, Revolving Credit Facility [Member]	Dec. 31, 2013 Spread Over LIBOR After Adjustment [Member] Debt Instrument, Name, 7 Year Term Loans (A) & (B) [Member]
Line of Credit Facility, Maximum Borrowing Capacity				$ 370,000,000													$ 320,000,000
Long-term Debt	80,080,000	0									71,090,000	7,234,000
Debt Instrument, Interest Rate, Stated Percentage											6.85%	7.17%
Amortization of loan costs	706,000	320,000	581,000
Write-off of debt issuance costs	416,000	0	0
Term Loans, Outstanding Balance									120,000,000	250,000,000					80,000,000	40,000,000
Debt Maturity, Years					5 years 0 months 0 days			7 years 0 months 0 days
Debt Maturity, Extension Option, Number Of Years					1 year 0 months 0 days
Credit Facility, Current Revolving Borrowing Capacity						250,000,000
Number of basis points over LIBOR	17
Debt Instrument, Basis Spread on Variable Rate										17500.00%			30000.00%							14000.00%	15000.00%	16500.00%	17500.00%
Debt Instrument, Interest Rate, Stated Percentage Rate Range, Maximum					19000.00%		20000.00%
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage	3500.00%
Credit Facility Expansion Amount						130,000,000
Unused balance of the unsecured revolving credit facility					83,000,000
Bank term loans - secured	0	19,250,000												19,250,000
Derivative, Fixed Interest Rate																		3.29%	3.86%
Derivative, Description of Variable Rate Basis																		1-month LIBOR	1-month LIBOR
Derivative, Basis Spread on Variable Rate																		1.75%	1.75%
Derivative, Notional Amount																		40,000,000	80,000,000
Interest Rate Cash Flow Hedge Asset at Fair Value																		544,000
Interest Rate Cash Flow Hedge Liability at Fair Value																			$ 431,000

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Schedule IV - Mortgage Loans on Real Estate Schedule IV - Mortgage Loans on Real Estate (Roll-Forward) (Details) (USD $)	9 Months Ended		12 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Schedule IV - Mortgage Loans on Real Estate [Abstract]
Mortgage Loans on Real Estate, January 1	$ 68,214,000	$ 78,672,000	$ 68,214,000	$ 78,672,000	$ 75,465,000
Mortgage Loans on Real Estate, New Mortgage Loans			1,369,000	0	6,566,000
Mortgage Loans on Real Estate, Other Additions			0	0	1,082,000
Mortgage Loans On Real Estate Total Additions			1,369,000	0	7,648,000
Settlement of mortgage note by real estate acquisition	13,741,000	0	13,741,000	0	0
Mortgage Loans On Real Estate, Impairment			4,037,000	2,300,000	0
Mortgage Loans on Real Estate, Collections of Principal			16,879,000	8,158,000	4,441,000
Mortgage Loans On Real Estate, Total Deductions			34,657,000	10,458,000	4,441,000
Mortgage Loans on Real Estate, December 31			$ 34,926,000	$ 68,214,000	$ 78,672,000

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Equity-Method Investment And Other Assets (Details) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Equity Method Investments And Other Assets [Abstract]
Equity Method Investments	$ 9,494	$ 8,353
Loan costs and prepaid expenses	7,596	1,838
Accounts receivable and others assets	2,272	1,815
Replacement reserve and tax escrows - Fannie Mae	706	0
Lease escrow deposits	22,775	0
Escrow deposit for tax deferred exchange	23,813	0
Escrow deposit for real estate purchase	0	166
Equity-method investment and other assets	$ 66,656	$ 12,172

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Investment And Other Gains Investment And Other Gains (Tables)

12 Months Ended

Dec. 31, 2013

Investment And Other Gains [Abstract]

Schedule of Investment And Other Gains [Table Text Block]

The following table summarizes our investment and other gains (in thousands):

	Year Ended December 31,
	2013		2012		2011
Gain on payoff of mortgage note receivable	$	—	$	4,605	$	—
Gains on sales of marketable securities	—		30		9,899
Gain on purchase liability settlement	3,256		—		—
Other gains	50		242		362
	$	3,306	$	4,877	$	10,261

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Selected Quarterly Financial Data (Unaudited) Selected Quarterly Financial Data (Unaudited) (Quarterly Financial Information - 2012) (Details) (USD $) In Thousands, except Share data, unless otherwise specified	3 Months Ended								12 Months Ended
	Dec. 31, 2013	Sep. 30, 2013	Jun. 30, 2013	Mar. 31, 2013	Dec. 31, 2012	Sep. 30, 2012	Jun. 30, 2012	Mar. 31, 2012	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Selected Quarterly Financial Data [Abstract]
Net revenues	$ 32,790	$ 30,845	$ 27,089	$ 27,104	$ 25,870	$ 23,396	$ 20,916	$ 23,135	$ 117,828	$ 93,317	$ 83,739
Investment and other gains	3,267	3	14	22	4,759	46	35	37
Income from continuing operations attributable to common stockholders	24,114	22,035	18,300	14,050	27,171	13,282	15,859	16,355	78,499	72,667	69,817
Discontinued operations	3,661	20,709	1,621	1,693	13,934	1,068	1,068	1,994
Net income attributable to common stockholders	$ 27,775	$ 42,744	$ 19,921	$ 15,743	$ 41,105	$ 14,350	$ 16,927	$ 18,349	$ 106,183	$ 90,731	$ 81,132
Weighted average common shares outstanding:
Basic	29,831,176	27,876,176	27,876,176	27,876,176	27,848,002	27,830,311	27,792,834	27,776,104	28,362,398	27,811,813	27,719,096
Diluted	29,860,614	27,905,545	27,913,727	27,911,584	27,868,245	27,862,582	27,820,831	27,803,222	28,397,702	27,838,720	27,792,592
Basic:
Income from continuing operations attributable to common stockholders	$ 0.81	$ 0.79	$ 0.65	$ 0.50	$ 0.98	$ 0.48	$ 0.57	$ 0.59	$ 2.77	$ 2.61	$ 2.52
Discontinued operations	$ 0.12	$ 0.74	$ 0.06	$ 0.06	$ 0.50	$ 0.04	$ 0.04	$ 0.07	$ 0.97	$ 0.65	$ 0.41
Net income per common share attributable to common stockholders	$ 0.93	$ 1.53	$ 0.71	$ 0.56	$ 1.48	$ 0.52	$ 0.61	$ 0.66	$ 3.74	$ 3.26	$ 2.93
Diluted:
Income from continuing operations attributable to common stockholders	$ 0.81	$ 0.79	$ 0.65	$ 0.50	$ 0.97	$ 0.48	$ 0.57	$ 0.59	$ 2.77	$ 2.61	$ 2.51
Discontinued operations	$ 0.12	$ 0.74	$ 0.06	$ 0.06	$ 0.50	$ 0.04	$ 0.04	$ 0.07	$ 0.97	$ 0.65	$ 0.41
Net income per common share attributable to common stockholders	$ 0.93	$ 1.53	$ 0.71	$ 0.56	$ 1.47	$ 0.52	$ 0.61	$ 0.66	$ 3.74	$ 3.26	$ 2.92

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Investment And Other Gains Investment And Other Gains (Schedule of Investment And Other Gains) (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Investment And Other Gains [Abstract]
Gain on payoff of mortgage note receivable	$ 0	$ 4,605	$ 0
Gains on sales of marketable securities	0	30	9,899
Gain on purchase liability settlement	3,256	0	0
Other gains	50	242	362
Investment and other gains	$ 3,306	$ 4,877	$ 10,261

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Schedule III - Real Estate and Accumulated Depreciation Schedule III - Real Estate and Accumulated Depreciation (Summary) (Details) (Details) (USD $) In Thousands, unless otherwise specified	9 Months Ended		12 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Schedule III - Real Estate and Accumulated Depreciation [Abstract]
SEC Schedule III, Real Estate, Gross, January 1	$ 698,536	$ 541,493	$ 698,536	$ 541,493	$ 463,197
Payments to Acquire Property, Plant, and Equipment			654,670	110,601	75,806
Property Additions Acquired With Increases in Accounts Payable			3,086	0	0
Additions Through Contingent Liabilities			1,600	0	5,478
Additions Through Assumption Of Debt	80,528	19,250	80,528	19,250	0
Property Additions Through Conveyance Of Noncontrolling Interest			0	10,964	0
Additions Through Settlement Of Mortgage Note			13,741	0	0
SEC Schedule III, Real Estate, Cost of Real Estate Sold			(30,159)	(17,259)	(2,988)
SEC Schedule III, Real Estate, Other Additions			0	39,323	0
SEC Schedule III, Real Estate, Other Deductions			0	(5,836)	0
SEC Schedule III, Real Estate, Gross, December 31			1,422,002	698,536	541,493
SEC Schedule III, Real Estate Accumulated Depreciation, January 1	163,146	146,698	163,146	146,698	135,543
SEC Schedule III, Real Estate Accumulated Depreciation, Depreciation Expense			20,658	16,981	11,992
SEC Schedule III, Real Estate Accumulated Depreciation, Real Estate Sold			(9,542)	(6,250)	(837)
SEC Schedule III, Real Estate Accumulated Depreciation, Other Additions			0	9,942	0
SEC Schedule III, Real Estate Accumulated Depreciation, Other Deductions			0	(4,225)	0
SEC Schedule III, Real Estate Accumulated Depreciation, December 31			$ 174,262	$ 163,146	$ 146,698

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Schedule IV - Mortgage Loans on Real Estate Schedule IV - Mortgage Loans on Real Estate (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2013
Mortgage Loans on Real Estate [Line Items]
Mortgage Loans on Real Estate, Carrying Amount of Mortgages	$ 34,926
Mortgage Loans on Real Estate, Principal Amount of Delinquent Loans	0
Skilled Nursing Facility [Member] | Second Mortgage [Member]
Mortgage Loans on Real Estate [Line Items]
Mortgage Loans on Real Estate, Interest Rate	14.00%
Mortgage Loans on Real Estate, Final Maturity Date	2015
Mortgage Loans on Real Estate, Periodic Payment Terms	Interest Only
Mortgage Loans on Real Estate, Carrying Amount of Mortgages	1,000
Mortgage Loans on Real Estate, Carrying Amount of Mortgages	1,000
Grundy, VA [Member] | Skilled Nursing Facility [Member] | First Mortgage [Member]
Mortgage Loans on Real Estate [Line Items]
Mortgage Loans on Real Estate, Interest Rate	8.00%
Mortgage Loans on Real Estate, Final Maturity Date	2032
Mortgage Loans on Real Estate, Periodic Payment Terms	31000
Mortgage Loans on Real Estate, Carrying Amount of Mortgages	4,396
Mortgage Loans on Real Estate, Carrying Amount of Mortgages	3,172
Virginia Beach, VA [Member] | Skilled Nursing Facility [Member] | First Mortgage [Member]
Mortgage Loans on Real Estate [Line Items]
Mortgage Loans on Real Estate, Interest Rate	8.00%
Mortgage Loans on Real Estate, Final Maturity Date	2031
Mortgage Loans on Real Estate, Periodic Payment Terms	31000
Mortgage Loans on Real Estate, Carrying Amount of Mortgages	3,814
Mortgage Loans on Real Estate, Carrying Amount of Mortgages	2,867
Lexington, VA [Member] | Skilled Nursing Facility [Member] | First Mortgage [Member]
Mortgage Loans on Real Estate [Line Items]
Mortgage Loans on Real Estate, Interest Rate	8.00%
Mortgage Loans on Real Estate, Final Maturity Date	2032
Mortgage Loans on Real Estate, Periodic Payment Terms	21000
Mortgage Loans on Real Estate, Carrying Amount of Mortgages	3,089
Mortgage Loans on Real Estate, Carrying Amount of Mortgages	2,035
Brookneal, VA [Member] | Skilled Nursing Facility [Member] | First Mortgage [Member]
Mortgage Loans on Real Estate [Line Items]
Mortgage Loans on Real Estate, Interest Rate	8.00%
Mortgage Loans on Real Estate, Final Maturity Date	2031
Mortgage Loans on Real Estate, Periodic Payment Terms	21000
Mortgage Loans on Real Estate, Carrying Amount of Mortgages	2,780
Mortgage Loans on Real Estate, Carrying Amount of Mortgages	2,007
Laurel Fork, VA [Member] | Skilled Nursing Facility [Member] | First Mortgage [Member]
Mortgage Loans on Real Estate [Line Items]
Mortgage Loans on Real Estate, Interest Rate	8.00%
Mortgage Loans on Real Estate, Final Maturity Date	2030
Mortgage Loans on Real Estate, Periodic Payment Terms	20000
Mortgage Loans on Real Estate, Carrying Amount of Mortgages	2,672
Mortgage Loans on Real Estate, Carrying Amount of Mortgages	1,948
Front Royal, VA [Member] | Skilled Nursing Facility [Member] | First Mortgage [Member]
Mortgage Loans on Real Estate [Line Items]
Mortgage Loans on Real Estate, Interest Rate	9.60%
Mortgage Loans on Real Estate, Final Maturity Date	2027
Mortgage Loans on Real Estate, Periodic Payment Terms	22000
Mortgage Loans on Real Estate, Carrying Amount of Mortgages	2,367
Mortgage Loans on Real Estate, Carrying Amount of Mortgages	1,645
Owatonna, MN [Member] | Assisted Living Facility [Member] | First Mortgage [Member]
Mortgage Loans on Real Estate [Line Items]
Mortgage Loans on Real Estate, Interest Rate	7.50%
Mortgage Loans on Real Estate, Final Maturity Date	2018
Mortgage Loans on Real Estate, Periodic Payment Terms	38000
Mortgage Loans on Real Estate, Carrying Amount of Mortgages	5,033
Mortgage Loans on Real Estate, Carrying Amount of Mortgages	3,713
Mesa, AZ [Member] | Transitional Rehabilitation Facility [Member] | Construction Loans [Member]
Mortgage Loans on Real Estate [Line Items]
Mortgage Loans on Real Estate, Interest Rate	10.00%
Mortgage Loans on Real Estate, Final Maturity Date	2015
Mortgage Loans on Real Estate, Periodic Payment Terms	Interest Only
Mortgage Loans on Real Estate, Carrying Amount of Mortgages	13,870
Mortgage Loans on Real Estate, Carrying Amount of Mortgages	11,870
Ocala, FL [Member] | Assisted Living Facility [Member] | Second Mortgage [Member]
Mortgage Loans on Real Estate [Line Items]
Mortgage Loans on Real Estate, Interest Rate	13.00%
Mortgage Loans on Real Estate, Final Maturity Date	2014
Mortgage Loans on Real Estate, Periodic Payment Terms	Interest Only
Mortgage Loans on Real Estate, Carrying Amount of Mortgages	2,500
Mortgage Loans on Real Estate, Carrying Amount of Mortgages	2,500
Naples, FL [Member] | Assisted Living Facility [Member] | Second Mortgage [Member]
Mortgage Loans on Real Estate [Line Items]
Mortgage Loans on Real Estate, Interest Rate	12.00%
Mortgage Loans on Real Estate, Final Maturity Date	2016
Mortgage Loans on Real Estate, Periodic Payment Terms	Interest Only
Mortgage Loans on Real Estate, Carrying Amount of Mortgages	2,500
Mortgage Loans on Real Estate, Carrying Amount of Mortgages	1,369
Mortgage Loan, Carrying Amount, Less Than 3% of Total [Member] | Assisted Living Facility [Member] | Second Mortgage [Member]
Mortgage Loans on Real Estate [Line Items]
Mortgage Loans on Real Estate, Interest Rate	12.00%
Mortgage Loans on Real Estate, Final Maturity Date	2014
Mortgage Loans on Real Estate, Carrying Amount of Mortgages	$ 800

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Limits On Common Stock Ownership Limits On Common Stock Ownership (Narrative) (Details)	12 Months Ended
	Dec. 31, 2013
Limits On Common Stock Ownership [Abstract]
Common Stock Ownership Limit	9.90%
Excepted Holder Agreement, Common Stock, Ownership Limit	7.50%
Stock Repurchase Program, Number of Shares Authorized to be Repurchased	1,000,000

XML

Schedule II - Valuation and Qualifying Accounts Schedule II - Valuation and Qualifying Accounts

12 Months Ended

Dec. 31, 2013

Schedule II - Valuation and Qualifying Accounts [Abstract]

Schedule of Valuation and Qualifying Accounts Disclosure [Text Block]

NATIONAL HEALTH INVESTORS, INC.

SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS

FOR THE YEARS ENDED DECEMBER 31, 2013, 2012, AND 2011

(in thousands)

	Balance		Additions
	Beginning		Charged to Costs				Balance
	of Period		and Expenses1		Deductions		End of Period
For the year ended December 31, 2013
Loan loss allowance	$	—	$	—	$	—	$	—
For the year ended December 31, 2012
Loan loss allowance	$	—	$	—	$	—	$	—
For the year ended December 31, 2011
Loan loss allowance	$	—	$	—	$	—	$	—

¹ In the Consolidated Statements of Income, we report the net amount of our provision for loan and realty losses and our recoveries of amounts previously written down. For 2013, net losses were $1,976,000, consisting of a $4,037,000 note impairment and a $2,061,000 recovery and there was no provision for losses during the year. For 2012, net recoveries were 2,195,000, consisting of a $4,495,000 recovery and a $2,300,000 note impairment and there was no provision for losses during the year. For 2011, net recoveries were $99,000 and there was no provision for losses during the year.

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Investments In Marketable Securities (Schedule Of Marketable Securities) (Details) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Marketable Securities [Abstract]
Available-for-sale Securities, Amortized Cost Basis	$ 4,088	$ 4,088
Available-for-sale Securities, Equity Securities	$ 12,650	$ 12,884

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Real Estate (Significant Business Combination Proforma) (Details) (USD $) In Thousands, except Per Share data, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Significant Business Combination Proforma [Abstract]
Revenue	$ 122,923	$ 103,670
Net income	103,943	91,515
Net income available to common stockholders	$ 103,869	$ 91,397
Basic earnings per share	$ 3.66	$ 3.29
Diluted earnings per share	$ 3.66	$ 3.28

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Schedule III - Real Estate and Accumulated Depreciation Schedule III - Real Estate and Accumulated Depreciation (Details) (USD $)	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
SEC Schedule III, Real Estate and Accumulated Depreciation, Amount of Encumbrances	$ 80,080,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Land	91,770,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Buildings and Improvements	1,321,577,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Improvements	8,655,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Land	91,770,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Buildings and Improvements	1,330,232,000
SEC Schedule III, Real Estate, Gross	1,422,002,000	698,536,000	541,493,000	463,197,000
SEC Schedule III, Real Estate Accumulated Depreciation	174,262,000	163,146,000	146,698,000	135,543,000
Property, Plant and Equipment, Useful Life	40 years 0 months 0 days
Entity Incorporate, Date of Incorporation, Year	1991
SEC Schedule III, Real Estate, Federal Income Tax Basis	1,416,573
Skilled Nursing Facility [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
SEC Schedule III, Real Estate and Accumulated Depreciation, Amount of Encumbrances	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Land	24,150,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Buildings and Improvements	384,200,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Improvements	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Land	24,150,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Buildings and Improvements	384,200,000
SEC Schedule III, Real Estate, Gross	408,350,000
SEC Schedule III, Real Estate Accumulated Depreciation	117,861,000
Assisted Living Facility [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
SEC Schedule III, Real Estate and Accumulated Depreciation, Amount of Encumbrances	80,080,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Land	29,113,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Buildings and Improvements	358,569,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Improvements	604,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Land	29,113,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Buildings and Improvements	359,173,000
SEC Schedule III, Real Estate, Gross	388,286,000
SEC Schedule III, Real Estate Accumulated Depreciation	24,570,000
Independent Living Facility [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
SEC Schedule III, Real Estate and Accumulated Depreciation, Amount of Encumbrances	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Land	22,108,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Buildings and Improvements	480,084,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Improvements	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Land	22,108,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Buildings and Improvements	480,084,000
SEC Schedule III, Real Estate, Gross	502,192,000
SEC Schedule III, Real Estate Accumulated Depreciation	5,833,000
Senior Living Campus [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
SEC Schedule III, Real Estate and Accumulated Depreciation, Amount of Encumbrances	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Land	8,281,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Buildings and Improvements	52,289,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Improvements	2,166,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Land	8,281,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Buildings and Improvements	54,455,000
SEC Schedule III, Real Estate, Gross	62,736,000
SEC Schedule III, Real Estate Accumulated Depreciation	12,015,000
Medical Office Building [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
SEC Schedule III, Real Estate and Accumulated Depreciation, Amount of Encumbrances	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Land	796,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Buildings and Improvements	9,690,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Improvements	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Land	796,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Buildings and Improvements	9,690,000
SEC Schedule III, Real Estate, Gross	10,486,000
SEC Schedule III, Real Estate Accumulated Depreciation	6,301,000
Hospital [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
SEC Schedule III, Real Estate and Accumulated Depreciation, Amount of Encumbrances	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Land	7,164,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Buildings and Improvements	36,068,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Improvements	5,838,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Land	7,164,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Buildings and Improvements	41,906,000
SEC Schedule III, Real Estate, Gross	49,070,000
SEC Schedule III, Real Estate Accumulated Depreciation	7,536,000
Total Continuing Operations Properties [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
SEC Schedule III, Real Estate and Accumulated Depreciation, Amount of Encumbrances	80,080,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Land	91,612,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Buildings and Improvements	1,320,900,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Improvements	8,608,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Land	91,612,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Buildings and Improvements	1,329,508,000
SEC Schedule III, Real Estate, Gross	1,421,120,000
SEC Schedule III, Real Estate Accumulated Depreciation	174,116,000
Corporate Office [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
SEC Schedule III, Real Estate and Accumulated Depreciation, Amount of Encumbrances	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Land	158,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Buildings and Improvements	677,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Improvements	47,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Land	158,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Buildings and Improvements	724,000
SEC Schedule III, Real Estate, Gross	882,000
SEC Schedule III, Real Estate Accumulated Depreciation	146,000
Anniston, AL [Member] | Skilled Nursing Facility [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
SEC Schedule III, Real Estate and Accumulated Depreciation, Amount of Encumbrances	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Land	70,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Buildings and Improvements	4,476,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Improvements	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Land	70,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Buildings and Improvements	4,476,000
SEC Schedule III, Real Estate, Gross	4,546,000
SEC Schedule III, Real Estate Accumulated Depreciation	3,132,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Date Acquired	Oct. 17, 1991
Moulton, AL [Member] | Skilled Nursing Facility [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
SEC Schedule III, Real Estate and Accumulated Depreciation, Amount of Encumbrances	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Land	25,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Buildings and Improvements	688,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Improvements	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Land	25,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Buildings and Improvements	688,000
SEC Schedule III, Real Estate, Gross	713,000
SEC Schedule III, Real Estate Accumulated Depreciation	688,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Date Acquired	Oct. 17, 1991
Avondale, AZ [Member] | Skilled Nursing Facility [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
SEC Schedule III, Real Estate and Accumulated Depreciation, Amount of Encumbrances	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Land	453,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Buildings and Improvements	6,678,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Improvements	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Land	453,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Buildings and Improvements	6,678,000
SEC Schedule III, Real Estate, Gross	7,131,000
SEC Schedule III, Real Estate Accumulated Depreciation	3,073,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Date Acquired	Aug. 13, 1996
Brooksville, FL [Member] | Skilled Nursing Facility [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
SEC Schedule III, Real Estate and Accumulated Depreciation, Amount of Encumbrances	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Land	1,217,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Buildings and Improvements	16,166,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Improvements	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Land	1,217,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Buildings and Improvements	16,166,000
SEC Schedule III, Real Estate, Gross	17,383,000
SEC Schedule III, Real Estate Accumulated Depreciation	1,583,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Date Acquired	Feb. 01, 2010
Crystal River, FL [Member] | Skilled Nursing Facility [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
SEC Schedule III, Real Estate and Accumulated Depreciation, Amount of Encumbrances	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Land	912,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Buildings and Improvements	12,117,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Improvements	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Land	912,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Buildings and Improvements	12,117,000
SEC Schedule III, Real Estate, Gross	13,029,000
SEC Schedule III, Real Estate Accumulated Depreciation	1,186,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Date Acquired	Feb. 01, 2010
Dade City, FL [Member] | Skilled Nursing Facility [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
SEC Schedule III, Real Estate and Accumulated Depreciation, Amount of Encumbrances	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Land	605,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Buildings and Improvements	8,042,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Improvements	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Land	605,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Buildings and Improvements	8,042,000
SEC Schedule III, Real Estate, Gross	8,647,000
SEC Schedule III, Real Estate Accumulated Depreciation	787,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Date Acquired	Feb. 01, 2010
Hudson, FL [Member] | Skilled Nursing Facility [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
SEC Schedule III, Real Estate and Accumulated Depreciation, Amount of Encumbrances	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Land	1,290,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Buildings and Improvements	22,392,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Improvements	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Land	1,290,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Buildings and Improvements	22,392,000
SEC Schedule III, Real Estate, Gross	23,682,000
SEC Schedule III, Real Estate Accumulated Depreciation	8,398,000
Real Estate And Accumulated Depreciation Date Acquired String	Various
Merritt Island, FL [Member] | Skilled Nursing Facility [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
SEC Schedule III, Real Estate and Accumulated Depreciation, Amount of Encumbrances	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Land	701,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Buildings and Improvements	8,869,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Improvements	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Land	701,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Buildings and Improvements	8,869,000
SEC Schedule III, Real Estate, Gross	9,570,000
SEC Schedule III, Real Estate Accumulated Depreciation	6,351,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Date Acquired	Oct. 17, 1991
New Port Richey, FL [Member] | Skilled Nursing Facility [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
SEC Schedule III, Real Estate and Accumulated Depreciation, Amount of Encumbrances	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Land	228,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Buildings and Improvements	3,023,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Improvements	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Land	228,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Buildings and Improvements	3,023,000
SEC Schedule III, Real Estate, Gross	3,251,000
SEC Schedule III, Real Estate Accumulated Depreciation	296,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Date Acquired	Feb. 01, 2010
Plant City, FL [Member] | Skilled Nursing Facility [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
SEC Schedule III, Real Estate and Accumulated Depreciation, Amount of Encumbrances	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Land	405,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Buildings and Improvements	8,777,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Improvements	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Land	405,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Buildings and Improvements	8,777,000
SEC Schedule III, Real Estate, Gross	9,182,000
SEC Schedule III, Real Estate Accumulated Depreciation	6,495,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Date Acquired	Oct. 17, 1991
Stuart, FL [Member] | Skilled Nursing Facility [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
SEC Schedule III, Real Estate and Accumulated Depreciation, Amount of Encumbrances	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Land	787,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Buildings and Improvements	9,048,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Improvements	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Land	787,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Buildings and Improvements	9,048,000
SEC Schedule III, Real Estate, Gross	9,835,000
SEC Schedule III, Real Estate Accumulated Depreciation	6,541,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Date Acquired	Oct. 17, 1991
Trenton, FL [Member] | Skilled Nursing Facility [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
SEC Schedule III, Real Estate and Accumulated Depreciation, Amount of Encumbrances	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Land	851,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Buildings and Improvements	11,312,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Improvements	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Land	851,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Buildings and Improvements	11,312,000
SEC Schedule III, Real Estate, Gross	12,163,000
SEC Schedule III, Real Estate Accumulated Depreciation	1,108,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Date Acquired	Feb. 01, 2010
Grangeville, ID [Member] | Skilled Nursing Facility [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
SEC Schedule III, Real Estate and Accumulated Depreciation, Amount of Encumbrances	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Land	122,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Buildings and Improvements	2,491,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Improvements	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Land	122,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Buildings and Improvements	2,491,000
SEC Schedule III, Real Estate, Gross	2,613,000
SEC Schedule III, Real Estate Accumulated Depreciation	1,163,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Date Acquired	Aug. 13, 1996
Glasgow, KY [Member] | Skilled Nursing Facility [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
SEC Schedule III, Real Estate and Accumulated Depreciation, Amount of Encumbrances	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Land	33,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Buildings and Improvements	2,110,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Improvements	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Land	33,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Buildings and Improvements	2,110,000
SEC Schedule III, Real Estate, Gross	2,143,000
SEC Schedule III, Real Estate Accumulated Depreciation	1,850,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Date Acquired	Oct. 17, 1991
Greenfield, MA [Member] | Skilled Nursing Facility [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
SEC Schedule III, Real Estate and Accumulated Depreciation, Amount of Encumbrances	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Land	370,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Buildings and Improvements	4,341,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Improvements	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Land	370,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Buildings and Improvements	4,341,000
SEC Schedule III, Real Estate, Gross	4,711,000
SEC Schedule III, Real Estate Accumulated Depreciation	38,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Date Acquired	Aug. 30, 2013
Holyoke, MA [Member] | Skilled Nursing Facility [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
SEC Schedule III, Real Estate and Accumulated Depreciation, Amount of Encumbrances	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Land	110,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Buildings and Improvements	943,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Improvements	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Land	110,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Buildings and Improvements	943,000
SEC Schedule III, Real Estate, Gross	1,053,000
SEC Schedule III, Real Estate Accumulated Depreciation	9,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Date Acquired	Aug. 30, 2013
Quincy, MA [Member] | Skilled Nursing Facility [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
SEC Schedule III, Real Estate and Accumulated Depreciation, Amount of Encumbrances	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Land	450,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Buildings and Improvements	710,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Improvements	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Land	450,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Buildings and Improvements	710,000
SEC Schedule III, Real Estate, Gross	1,160,000
SEC Schedule III, Real Estate Accumulated Depreciation	6,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Date Acquired	Aug. 30, 2013
Taunton, MA [Member] | Skilled Nursing Facility [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
SEC Schedule III, Real Estate and Accumulated Depreciation, Amount of Encumbrances	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Land	900,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Buildings and Improvements	5,906,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Improvements	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Land	900,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Buildings and Improvements	5,906,000
SEC Schedule III, Real Estate, Gross	6,806,000
SEC Schedule III, Real Estate Accumulated Depreciation	52,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Date Acquired	Aug. 30, 2013
Desloge, MO [Member] | Skilled Nursing Facility [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
SEC Schedule III, Real Estate and Accumulated Depreciation, Amount of Encumbrances	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Land	178,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Buildings and Improvements	3,804,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Improvements	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Land	178,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Buildings and Improvements	3,804,000
SEC Schedule III, Real Estate, Gross	3,982,000
SEC Schedule III, Real Estate Accumulated Depreciation	2,871,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Date Acquired	Oct. 17, 1991
Joplin, MO [Member] | Skilled Nursing Facility [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
SEC Schedule III, Real Estate and Accumulated Depreciation, Amount of Encumbrances	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Land	175,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Buildings and Improvements	4,034,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Improvements	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Land	175,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Buildings and Improvements	4,034,000
SEC Schedule III, Real Estate, Gross	4,209,000
SEC Schedule III, Real Estate Accumulated Depreciation	2,404,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Date Acquired	Oct. 17, 1991
Kennett, MO [Member] | Skilled Nursing Facility [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
SEC Schedule III, Real Estate and Accumulated Depreciation, Amount of Encumbrances	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Land	180,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Buildings and Improvements	4,928,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Improvements	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Land	180,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Buildings and Improvements	4,928,000
SEC Schedule III, Real Estate, Gross	5,108,000
SEC Schedule III, Real Estate Accumulated Depreciation	3,783,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Date Acquired	Oct. 17, 1991
Maryland Heights, MO [Member] | Skilled Nursing Facility [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
SEC Schedule III, Real Estate and Accumulated Depreciation, Amount of Encumbrances	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Land	482,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Buildings and Improvements	5,512,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Improvements	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Land	482,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Buildings and Improvements	5,512,000
SEC Schedule III, Real Estate, Gross	5,994,000
SEC Schedule III, Real Estate Accumulated Depreciation	4,766,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Date Acquired	Oct. 17, 1991
St. Charles, MO [Member] | Skilled Nursing Facility [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
SEC Schedule III, Real Estate and Accumulated Depreciation, Amount of Encumbrances	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Land	150,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Buildings and Improvements	4,790,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Improvements	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Land	150,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Buildings and Improvements	4,790,000
SEC Schedule III, Real Estate, Gross	4,940,000
SEC Schedule III, Real Estate Accumulated Depreciation	3,618,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Date Acquired	Oct. 17, 1991
St. Charles, MO [Member] | Independent Living Facility [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
SEC Schedule III, Real Estate and Accumulated Depreciation, Amount of Encumbrances	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Land	344,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Buildings and Improvements	3,181,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Improvements	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Land	344,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Buildings and Improvements	3,181,000
SEC Schedule III, Real Estate, Gross	3,525,000
SEC Schedule III, Real Estate Accumulated Depreciation	2,229,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Date Acquired	Oct. 17, 1991
Voorhees, NJ [Member] | Independent Living Facility [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
SEC Schedule III, Real Estate and Accumulated Depreciation, Amount of Encumbrances	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Land	670,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Buildings and Improvements	22,926,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Improvements	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Land	670,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Buildings and Improvements	22,926,000
SEC Schedule III, Real Estate, Gross	23,596,000
SEC Schedule III, Real Estate Accumulated Depreciation	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Date Acquired	Dec. 23, 2013
Gahanna, OH [Member] | Independent Living Facility [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
SEC Schedule III, Real Estate and Accumulated Depreciation, Amount of Encumbrances	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Land	920,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Buildings and Improvements	23,176,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Improvements	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Land	920,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Buildings and Improvements	23,176,000
SEC Schedule III, Real Estate, Gross	24,096,000
SEC Schedule III, Real Estate Accumulated Depreciation	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Date Acquired	Dec. 23, 2013
Broken Arrow, OK [Member] | Independent Living Facility [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
SEC Schedule III, Real Estate and Accumulated Depreciation, Amount of Encumbrances	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Land	2,660,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Buildings and Improvements	18,416,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Improvements	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Land	2,660,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Buildings and Improvements	18,416,000
SEC Schedule III, Real Estate, Gross	21,076,000
SEC Schedule III, Real Estate Accumulated Depreciation	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Date Acquired	Dec. 23, 2013
Newberg, OR [Member] | Independent Living Facility [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
SEC Schedule III, Real Estate and Accumulated Depreciation, Amount of Encumbrances	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Land	1,080,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Buildings and Improvements	18,999,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Improvements	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Land	1,080,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Buildings and Improvements	18,999,000
SEC Schedule III, Real Estate, Gross	20,079,000
SEC Schedule III, Real Estate Accumulated Depreciation	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Date Acquired	Dec. 23, 2013
Myrtle Beach, SC [Member] | Independent Living Facility [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
SEC Schedule III, Real Estate and Accumulated Depreciation, Amount of Encumbrances	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Land	1,310,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Buildings and Improvements	25,295,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Improvements	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Land	1,310,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Buildings and Improvements	25,295,000
SEC Schedule III, Real Estate, Gross	26,605,000
SEC Schedule III, Real Estate Accumulated Depreciation	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Date Acquired	Dec. 23, 2013
Greenville, SC [Member] | Independent Living Facility [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
SEC Schedule III, Real Estate and Accumulated Depreciation, Amount of Encumbrances	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Land	560,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Buildings and Improvements	16,508,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Improvements	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Land	560,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Buildings and Improvements	16,508,000
SEC Schedule III, Real Estate, Gross	17,068,000
SEC Schedule III, Real Estate Accumulated Depreciation	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Date Acquired	Dec. 23, 2013
Manchester, NH [Member] | Skilled Nursing Facility [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
SEC Schedule III, Real Estate and Accumulated Depreciation, Amount of Encumbrances	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Land	790,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Buildings and Improvements	20,077,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Improvements	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Land	790,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Buildings and Improvements	20,077,000
SEC Schedule III, Real Estate, Gross	20,867,000
SEC Schedule III, Real Estate Accumulated Depreciation	173,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Date Acquired	Aug. 30, 2013
Epsom, NH [Member] | Skilled Nursing Facility [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
SEC Schedule III, Real Estate and Accumulated Depreciation, Amount of Encumbrances	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Land	630,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Buildings and Improvements	2,191,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Improvements	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Land	630,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Buildings and Improvements	2,191,000
SEC Schedule III, Real Estate, Gross	2,821,000
SEC Schedule III, Real Estate Accumulated Depreciation	20,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Date Acquired	Aug. 30, 2013
Anderson, SC [Member] | Skilled Nursing Facility [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
SEC Schedule III, Real Estate and Accumulated Depreciation, Amount of Encumbrances	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Land	308,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Buildings and Improvements	4,643,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Improvements	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Land	308,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Buildings and Improvements	4,643,000
SEC Schedule III, Real Estate, Gross	4,951,000
SEC Schedule III, Real Estate Accumulated Depreciation	3,894,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Date Acquired	Oct. 17, 1991
Greenwood, SC [Member] | Skilled Nursing Facility [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
SEC Schedule III, Real Estate and Accumulated Depreciation, Amount of Encumbrances	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Land	222,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Buildings and Improvements	3,457,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Improvements	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Land	222,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Buildings and Improvements	3,457,000
SEC Schedule III, Real Estate, Gross	3,679,000
SEC Schedule III, Real Estate Accumulated Depreciation	2,861,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Date Acquired	Oct. 17, 1991
Laurens, SC [Member] | Skilled Nursing Facility [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
SEC Schedule III, Real Estate and Accumulated Depreciation, Amount of Encumbrances	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Land	42,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Buildings and Improvements	3,426,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Improvements	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Land	42,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Buildings and Improvements	3,426,000
SEC Schedule III, Real Estate, Gross	3,468,000
SEC Schedule III, Real Estate Accumulated Depreciation	2,610,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Date Acquired	Oct. 17, 1991
Orangeburg, SC [Member] | Skilled Nursing Facility [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
SEC Schedule III, Real Estate and Accumulated Depreciation, Amount of Encumbrances	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Land	300,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Buildings and Improvements	3,715,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Improvements	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Land	300,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Buildings and Improvements	3,715,000
SEC Schedule III, Real Estate, Gross	4,015,000
SEC Schedule III, Real Estate Accumulated Depreciation	537,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Date Acquired	Sep. 25, 2008
Athens, TN [Member] | Skilled Nursing Facility [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
SEC Schedule III, Real Estate and Accumulated Depreciation, Amount of Encumbrances	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Land	38,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Buildings and Improvements	1,463,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Improvements	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Land	38,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Buildings and Improvements	1,463,000
SEC Schedule III, Real Estate, Gross	1,501,000
SEC Schedule III, Real Estate Accumulated Depreciation	1,305,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Date Acquired	Oct. 17, 1991
Chattanooga, TN [Member] | Skilled Nursing Facility [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
SEC Schedule III, Real Estate and Accumulated Depreciation, Amount of Encumbrances	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Land	143,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Buildings and Improvements	2,309,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Improvements	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Land	143,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Buildings and Improvements	2,309,000
SEC Schedule III, Real Estate, Gross	2,452,000
SEC Schedule III, Real Estate Accumulated Depreciation	1,990,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Date Acquired	Oct. 17, 1991
Chattanooga, TN [Member] | Independent Living Facility [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
SEC Schedule III, Real Estate and Accumulated Depreciation, Amount of Encumbrances	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Land	9,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Buildings and Improvements	1,567,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Improvements	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Land	9,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Buildings and Improvements	1,567,000
SEC Schedule III, Real Estate, Gross	1,576,000
SEC Schedule III, Real Estate Accumulated Depreciation	1,112,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Date Acquired	Oct. 17, 1991
Dickson, TN [Member] | Skilled Nursing Facility [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
SEC Schedule III, Real Estate and Accumulated Depreciation, Amount of Encumbrances	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Land	90,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Buildings and Improvements	3,541,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Improvements	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Land	90,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Buildings and Improvements	3,541,000
SEC Schedule III, Real Estate, Gross	3,631,000
SEC Schedule III, Real Estate Accumulated Depreciation	2,732,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Date Acquired	Oct. 17, 1991
Franklin, TN [Member] | Skilled Nursing Facility [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
SEC Schedule III, Real Estate and Accumulated Depreciation, Amount of Encumbrances	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Land	47,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Buildings and Improvements	1,130,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Improvements	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Land	47,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Buildings and Improvements	1,130,000
SEC Schedule III, Real Estate, Gross	1,177,000
SEC Schedule III, Real Estate Accumulated Depreciation	924,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Date Acquired	Oct. 17, 1991
Hendersonville, TN [Member] | Skilled Nursing Facility [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
SEC Schedule III, Real Estate and Accumulated Depreciation, Amount of Encumbrances	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Land	363,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Buildings and Improvements	3,837,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Improvements	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Land	363,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Buildings and Improvements	3,837,000
SEC Schedule III, Real Estate, Gross	4,200,000
SEC Schedule III, Real Estate Accumulated Depreciation	2,569,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Date Acquired	Oct. 17, 1991
Johnson City, TN [Member] | Skilled Nursing Facility [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
SEC Schedule III, Real Estate and Accumulated Depreciation, Amount of Encumbrances	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Land	85,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Buildings and Improvements	1,918,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Improvements	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Land	85,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Buildings and Improvements	1,918,000
SEC Schedule III, Real Estate, Gross	2,003,000
SEC Schedule III, Real Estate Accumulated Depreciation	1,751,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Date Acquired	Oct. 17, 1991
Johnson City, TN [Member] | Independent Living Facility [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
SEC Schedule III, Real Estate and Accumulated Depreciation, Amount of Encumbrances	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Land	55,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Buildings and Improvements	4,077,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Improvements	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Land	55,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Buildings and Improvements	4,077,000
SEC Schedule III, Real Estate, Gross	4,132,000
SEC Schedule III, Real Estate Accumulated Depreciation	2,492,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Date Acquired	Oct. 17, 1991
Lewisburg, TN [Member] | Skilled Nursing Facility [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
SEC Schedule III, Real Estate and Accumulated Depreciation, Amount of Encumbrances	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Land	46,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Buildings and Improvements	994,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Improvements	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Land	46,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Buildings and Improvements	994,000
SEC Schedule III, Real Estate, Gross	1,040,000
SEC Schedule III, Real Estate Accumulated Depreciation	914,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Date Acquired	Oct. 17, 1991
McMinnville, TN [Member] | Skilled Nursing Facility [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
SEC Schedule III, Real Estate and Accumulated Depreciation, Amount of Encumbrances	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Land	73,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Buildings and Improvements	3,618,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Improvements	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Land	73,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Buildings and Improvements	3,618,000
SEC Schedule III, Real Estate, Gross	3,691,000
SEC Schedule III, Real Estate Accumulated Depreciation	2,739,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Date Acquired	Oct. 17, 1991
Milan, TN [Member] | Skilled Nursing Facility [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
SEC Schedule III, Real Estate and Accumulated Depreciation, Amount of Encumbrances	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Land	41,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Buildings and Improvements	1,826,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Improvements	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Land	41,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Buildings and Improvements	1,826,000
SEC Schedule III, Real Estate, Gross	1,867,000
SEC Schedule III, Real Estate Accumulated Depreciation	1,501,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Date Acquired	Oct. 17, 1991
Pulaski, TN [Member] | Skilled Nursing Facility [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
SEC Schedule III, Real Estate and Accumulated Depreciation, Amount of Encumbrances	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Land	53,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Buildings and Improvements	3,921,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Improvements	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Land	53,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Buildings and Improvements	3,921,000
SEC Schedule III, Real Estate, Gross	3,974,000
SEC Schedule III, Real Estate Accumulated Depreciation	2,987,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Date Acquired	Oct. 17, 1991
Lawrenburg, TN [Member] | Skilled Nursing Facility [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
SEC Schedule III, Real Estate and Accumulated Depreciation, Amount of Encumbrances	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Land	98,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Buildings and Improvements	2,901,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Improvements	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Land	98,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Buildings and Improvements	2,901,000
SEC Schedule III, Real Estate, Gross	2,999,000
SEC Schedule III, Real Estate Accumulated Depreciation	2,058,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Date Acquired	Oct. 17, 1991
Dunlap, TN [Member] | Skilled Nursing Facility [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
SEC Schedule III, Real Estate and Accumulated Depreciation, Amount of Encumbrances	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Land	35,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Buildings and Improvements	3,679,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Improvements	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Land	35,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Buildings and Improvements	3,679,000
SEC Schedule III, Real Estate, Gross	3,714,000
SEC Schedule III, Real Estate Accumulated Depreciation	2,549,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Date Acquired	Oct. 17, 1991
Smithville, TN [Member] | Skilled Nursing Facility [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
SEC Schedule III, Real Estate and Accumulated Depreciation, Amount of Encumbrances	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Land	35,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Buildings and Improvements	3,816,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Improvements	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Land	35,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Buildings and Improvements	3,816,000
SEC Schedule III, Real Estate, Gross	3,851,000
SEC Schedule III, Real Estate Accumulated Depreciation	2,823,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Date Acquired	Oct. 18, 1991
Somerville, TN [Member] | Skilled Nursing Facility [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
SEC Schedule III, Real Estate and Accumulated Depreciation, Amount of Encumbrances	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Land	26,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Buildings and Improvements	678,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Improvements	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Land	26,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Buildings and Improvements	678,000
SEC Schedule III, Real Estate, Gross	704,000
SEC Schedule III, Real Estate Accumulated Depreciation	621,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Date Acquired	Oct. 19, 1991
Sparta, TN [Member] | Skilled Nursing Facility [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
SEC Schedule III, Real Estate and Accumulated Depreciation, Amount of Encumbrances	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Land	80,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Buildings and Improvements	1,602,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Improvements	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Land	80,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Buildings and Improvements	1,602,000
SEC Schedule III, Real Estate, Gross	1,682,000
SEC Schedule III, Real Estate Accumulated Depreciation	1,268,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Date Acquired	Oct. 20, 1991
Canton, TX [Member] | Skilled Nursing Facility [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
SEC Schedule III, Real Estate and Accumulated Depreciation, Amount of Encumbrances	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Land	420,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Buildings and Improvements	12,330,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Improvements	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Land	420,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Buildings and Improvements	12,330,000
SEC Schedule III, Real Estate, Gross	12,750,000
SEC Schedule III, Real Estate Accumulated Depreciation	273,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Date Acquired	Apr. 18, 2013
Corinth, TX [Member] | Skilled Nursing Facility [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
SEC Schedule III, Real Estate and Accumulated Depreciation, Amount of Encumbrances	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Land	1,075,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Buildings and Improvements	13,935,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Improvements	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Land	1,075,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Buildings and Improvements	13,935,000
SEC Schedule III, Real Estate, Gross	15,010,000
SEC Schedule III, Real Estate Accumulated Depreciation	332,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Date Acquired	Apr. 18, 2013
Ennis, TX [Member] | Skilled Nursing Facility [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
SEC Schedule III, Real Estate and Accumulated Depreciation, Amount of Encumbrances	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Land	986,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Buildings and Improvements	9,025,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Improvements	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Land	986,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Buildings and Improvements	9,025,000
SEC Schedule III, Real Estate, Gross	10,011,000
SEC Schedule III, Real Estate Accumulated Depreciation	694,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Date Acquired	Oct. 31, 2011
Greenville, TX [Member] | Skilled Nursing Facility [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
SEC Schedule III, Real Estate and Accumulated Depreciation, Amount of Encumbrances	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Land	1,800,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Buildings and Improvements	13,948,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Improvements	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Land	1,800,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Buildings and Improvements	13,948,000
SEC Schedule III, Real Estate, Gross	15,748,000
SEC Schedule III, Real Estate Accumulated Depreciation	964,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Date Acquired	Oct. 31, 2011
Houston, TX [Member] | Skilled Nursing Facility [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
SEC Schedule III, Real Estate and Accumulated Depreciation, Amount of Encumbrances	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Land	3,818,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Buildings and Improvements	63,921,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Improvements	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Land	3,818,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Buildings and Improvements	63,921,000
SEC Schedule III, Real Estate, Gross	67,739,000
SEC Schedule III, Real Estate Accumulated Depreciation	8,308,000
Real Estate And Accumulated Depreciation Date Acquired String	Various
Kyle, TX [Member] | Skilled Nursing Facility [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
SEC Schedule III, Real Estate and Accumulated Depreciation, Amount of Encumbrances	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Land	1,096,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Buildings and Improvements	12,279,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Improvements	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Land	1,096,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Buildings and Improvements	12,279,000
SEC Schedule III, Real Estate, Gross	13,375,000
SEC Schedule III, Real Estate Accumulated Depreciation	683,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Date Acquired	Jun. 11, 2012
Mesquite, TX [Member] | Skilled Nursing Facility [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
SEC Schedule III, Real Estate and Accumulated Depreciation, Amount of Encumbrances	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Land	180,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Buildings and Improvements	6,162,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Improvements	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Land	180,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Buildings and Improvements	6,162,000
SEC Schedule III, Real Estate, Gross	6,342,000
SEC Schedule III, Real Estate Accumulated Depreciation	2,223,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Date Acquired	Sep. 01, 1998
Paris, TX [Member] | Skilled Nursing Facility [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
SEC Schedule III, Real Estate and Accumulated Depreciation, Amount of Encumbrances	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Land	60,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Buildings and Improvements	12,040,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Improvements	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Land	60,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Buildings and Improvements	12,040,000
SEC Schedule III, Real Estate, Gross	12,100,000
SEC Schedule III, Real Estate Accumulated Depreciation	1,650,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Date Acquired	Jun. 30, 2009
San Antonio, TX [Member] | Skilled Nursing Facility [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
SEC Schedule III, Real Estate and Accumulated Depreciation, Amount of Encumbrances	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Land	300,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Buildings and Improvements	12,150,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Improvements	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Land	300,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Buildings and Improvements	12,150,000
SEC Schedule III, Real Estate, Gross	12,450,000
SEC Schedule III, Real Estate Accumulated Depreciation	1,807,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Date Acquired	Jun. 30, 2009
Bristol, VA [Member] | Skilled Nursing Facility [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
SEC Schedule III, Real Estate and Accumulated Depreciation, Amount of Encumbrances	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Land	176,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Buildings and Improvements	2,511,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Improvements	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Land	176,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Buildings and Improvements	2,511,000
SEC Schedule III, Real Estate, Gross	2,687,000
SEC Schedule III, Real Estate Accumulated Depreciation	1,903,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Date Acquired	Oct. 17, 1991
Rainbow City, AL [Member] | Assisted Living Facility [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
SEC Schedule III, Real Estate and Accumulated Depreciation, Amount of Encumbrances	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Land	670,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Buildings and Improvements	11,330,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Improvements	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Land	670,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Buildings and Improvements	11,330,000
SEC Schedule III, Real Estate, Gross	12,000,000
SEC Schedule III, Real Estate Accumulated Depreciation	82,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Date Acquired	Oct. 31, 2013
Gilbert, AZ [Member] | Assisted Living Facility [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
SEC Schedule III, Real Estate and Accumulated Depreciation, Amount of Encumbrances	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Land	451,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Buildings and Improvements	3,142,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Improvements	79,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Land	451,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Buildings and Improvements	3,221,000
SEC Schedule III, Real Estate, Gross	3,672,000
SEC Schedule III, Real Estate Accumulated Depreciation	1,190,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Date Acquired	Dec. 31, 1998
Glendale, AZ [Member] | Assisted Living Facility [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
SEC Schedule III, Real Estate and Accumulated Depreciation, Amount of Encumbrances	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Land	387,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Buildings and Improvements	3,823,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Improvements	57,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Land	387,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Buildings and Improvements	3,880,000
SEC Schedule III, Real Estate, Gross	4,267,000
SEC Schedule III, Real Estate Accumulated Depreciation	1,444,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Date Acquired	Dec. 31, 1998
Tucson, AZ [Member] | Assisted Living Facility [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
SEC Schedule III, Real Estate and Accumulated Depreciation, Amount of Encumbrances	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Land	919,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Buildings and Improvements	6,656,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Improvements	190,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Land	919,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Buildings and Improvements	6,846,000
SEC Schedule III, Real Estate, Gross	7,765,000
SEC Schedule III, Real Estate Accumulated Depreciation	2,516,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Date Acquired	Dec. 31, 1998
Bartow, FL [Member] | Assisted Living Facility [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
SEC Schedule III, Real Estate and Accumulated Depreciation, Amount of Encumbrances	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Land	225,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Buildings and Improvements	3,192,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Improvements	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Land	225,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Buildings and Improvements	3,192,000
SEC Schedule III, Real Estate, Gross	3,417,000
SEC Schedule III, Real Estate Accumulated Depreciation	299,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Date Acquired	Nov. 30, 2010
Lakeland, FL [Member] | Assisted Living Facility [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
SEC Schedule III, Real Estate and Accumulated Depreciation, Amount of Encumbrances	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Land	250,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Buildings and Improvements	3,167,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Improvements	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Land	250,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Buildings and Improvements	3,167,000
SEC Schedule III, Real Estate, Gross	3,417,000
SEC Schedule III, Real Estate Accumulated Depreciation	298,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Date Acquired	Nov. 30, 2010
Maitland, FL [Member] | Assisted Living Facility [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
SEC Schedule III, Real Estate and Accumulated Depreciation, Amount of Encumbrances	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Land	1,687,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Buildings and Improvements	5,428,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Improvements	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Land	1,687,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Buildings and Improvements	5,428,000
SEC Schedule III, Real Estate, Gross	7,115,000
SEC Schedule III, Real Estate Accumulated Depreciation	2,652,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Date Acquired	Aug. 06, 1996
Maitland, FL [Member] | Senior Living Campus [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
SEC Schedule III, Real Estate and Accumulated Depreciation, Amount of Encumbrances	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Land	2,317,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Buildings and Improvements	9,161,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Improvements	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Land	2,317,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Buildings and Improvements	9,161,000
SEC Schedule III, Real Estate, Gross	11,478,000
SEC Schedule III, Real Estate Accumulated Depreciation	5,218,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Date Acquired	Aug. 06, 1996
St. Cloud, FL [Member] | Assisted Living Facility [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
SEC Schedule III, Real Estate and Accumulated Depreciation, Amount of Encumbrances	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Land	307,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Buildings and Improvements	3,117,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Improvements	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Land	307,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Buildings and Improvements	3,117,000
SEC Schedule III, Real Estate, Gross	3,424,000
SEC Schedule III, Real Estate Accumulated Depreciation	293,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Date Acquired	Nov. 30, 2010
Greensboro, GA [Member] | Assisted Living Facility [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
SEC Schedule III, Real Estate and Accumulated Depreciation, Amount of Encumbrances	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Land	572,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Buildings and Improvements	4,849,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Improvements	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Land	572,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Buildings and Improvements	4,849,000
SEC Schedule III, Real Estate, Gross	5,421,000
SEC Schedule III, Real Estate Accumulated Depreciation	312,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Date Acquired	Sep. 15, 2011
Ames, IA [Member] | Assisted Living Facility [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
SEC Schedule III, Real Estate and Accumulated Depreciation, Amount of Encumbrances	80,080,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Land	360,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Buildings and Improvements	4,670,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Improvements	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Land	360,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Buildings and Improvements	4,670,000
SEC Schedule III, Real Estate, Gross	5,030,000
SEC Schedule III, Real Estate Accumulated Depreciation	65,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Date Acquired	Jun. 28, 2013
Burlington, IA [Member] | Assisted Living Facility [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
SEC Schedule III, Real Estate and Accumulated Depreciation, Amount of Encumbrances	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Land	200,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Buildings and Improvements	8,374,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Improvements	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Land	200,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Buildings and Improvements	8,374,000
SEC Schedule III, Real Estate, Gross	8,574,000
SEC Schedule III, Real Estate Accumulated Depreciation	119,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Date Acquired	Jun. 28, 2013
Cedar Falls, IA [Member] | Assisted Living Facility [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
SEC Schedule III, Real Estate and Accumulated Depreciation, Amount of Encumbrances	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Land	260,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Buildings and Improvements	4,700,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Improvements	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Land	260,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Buildings and Improvements	4,700,000
SEC Schedule III, Real Estate, Gross	4,960,000
SEC Schedule III, Real Estate Accumulated Depreciation	69,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Date Acquired	Jun. 28, 2013
Clinton, IA [Member] | Assisted Living Facility [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
SEC Schedule III, Real Estate and Accumulated Depreciation, Amount of Encumbrances	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Land	133,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Buildings and Improvements	3,215,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Improvements	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Land	133,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Buildings and Improvements	3,215,000
SEC Schedule III, Real Estate, Gross	3,348,000
SEC Schedule III, Real Estate Accumulated Depreciation	304,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Date Acquired	Jun. 30, 2010
Ft. Dodge, IA [Member] | Assisted Living Facility [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
SEC Schedule III, Real Estate and Accumulated Depreciation, Amount of Encumbrances	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Land	100,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Buildings and Improvements	7,208,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Improvements	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Land	100,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Buildings and Improvements	7,208,000
SEC Schedule III, Real Estate, Gross	7,308,000
SEC Schedule III, Real Estate Accumulated Depreciation	99,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Date Acquired	Jun. 28, 2013
Iowa City, IA [Member] | Assisted Living Facility [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
SEC Schedule III, Real Estate and Accumulated Depreciation, Amount of Encumbrances	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Land	297,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Buildings and Improvements	2,725,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Improvements	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Land	297,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Buildings and Improvements	2,725,000
SEC Schedule III, Real Estate, Gross	3,022,000
SEC Schedule III, Real Estate Accumulated Depreciation	296,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Date Acquired	Jun. 30, 2010
Marshalltown, IA [Member] | Assisted Living Facility [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
SEC Schedule III, Real Estate and Accumulated Depreciation, Amount of Encumbrances	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Land	240,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Buildings and Improvements	6,208,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Improvements	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Land	240,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Buildings and Improvements	6,208,000
SEC Schedule III, Real Estate, Gross	6,448,000
SEC Schedule III, Real Estate Accumulated Depreciation	87,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Date Acquired	Jun. 28, 2013
Muscatine, IA [Member] | Assisted Living Facility [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
SEC Schedule III, Real Estate and Accumulated Depreciation, Amount of Encumbrances	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Land	140,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Buildings and Improvements	1,802,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Improvements	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Land	140,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Buildings and Improvements	1,802,000
SEC Schedule III, Real Estate, Gross	1,942,000
SEC Schedule III, Real Estate Accumulated Depreciation	27,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Date Acquired	Jun. 28, 2013
Urbandale, IA [Member] | Assisted Living Facility [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
SEC Schedule III, Real Estate and Accumulated Depreciation, Amount of Encumbrances	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Land	540,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Buildings and Improvements	4,292,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Improvements	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Land	540,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Buildings and Improvements	4,292,000
SEC Schedule III, Real Estate, Gross	4,832,000
SEC Schedule III, Real Estate Accumulated Depreciation	64,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Date Acquired	Jun. 28, 2013
Weiser, ID [Member] | Assisted Living Facility [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
SEC Schedule III, Real Estate and Accumulated Depreciation, Amount of Encumbrances	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Land	20,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Buildings and Improvements	2,433,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Improvements	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Land	20,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Buildings and Improvements	2,433,000
SEC Schedule III, Real Estate, Gross	2,453,000
SEC Schedule III, Real Estate Accumulated Depreciation	64,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Date Acquired	Dec. 21, 2012
Bourbonnais, IL [Member] | Assisted Living Facility [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
SEC Schedule III, Real Estate and Accumulated Depreciation, Amount of Encumbrances	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Land	170,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Buildings and Improvements	16,594,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Improvements	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Land	170,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Buildings and Improvements	16,594,000
SEC Schedule III, Real Estate, Gross	16,764,000
SEC Schedule III, Real Estate Accumulated Depreciation	231,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Date Acquired	Jun. 28, 2013
Moline, IL [Member] | Assisted Living Facility [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
SEC Schedule III, Real Estate and Accumulated Depreciation, Amount of Encumbrances	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Land	250,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Buildings and Improvements	5,630,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Improvements	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Land	250,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Buildings and Improvements	5,630,000
SEC Schedule III, Real Estate, Gross	5,880,000
SEC Schedule III, Real Estate Accumulated Depreciation	80,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Date Acquired	Jun. 28, 2013
Peoria, IL [Member] | Assisted Living Facility [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
SEC Schedule III, Real Estate and Accumulated Depreciation, Amount of Encumbrances	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Land	403,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Buildings and Improvements	4,532,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Improvements	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Land	403,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Buildings and Improvements	4,532,000
SEC Schedule III, Real Estate, Gross	4,935,000
SEC Schedule III, Real Estate Accumulated Depreciation	502,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Date Acquired	Oct. 19, 2009
Quincy, IL [Member] | Assisted Living Facility [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
SEC Schedule III, Real Estate and Accumulated Depreciation, Amount of Encumbrances	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Land	360,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Buildings and Improvements	12,403,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Improvements	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Land	360,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Buildings and Improvements	12,403,000
SEC Schedule III, Real Estate, Gross	12,763,000
SEC Schedule III, Real Estate Accumulated Depreciation	171,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Date Acquired	Jun. 28, 2013
Rockford, IL [Member] | Assisted Living Facility [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
SEC Schedule III, Real Estate and Accumulated Depreciation, Amount of Encumbrances	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Land	390,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Buildings and Improvements	12,576,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Improvements	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Land	390,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Buildings and Improvements	12,576,000
SEC Schedule III, Real Estate, Gross	12,966,000
SEC Schedule III, Real Estate Accumulated Depreciation	180,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Date Acquired	Jun. 28, 2013
Springfield, IL [Member] | Assisted Living Facility [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
SEC Schedule III, Real Estate and Accumulated Depreciation, Amount of Encumbrances	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Land	450,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Buildings and Improvements	19,355,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Improvements	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Land	450,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Buildings and Improvements	19,355,000
SEC Schedule III, Real Estate, Gross	19,805,000
SEC Schedule III, Real Estate Accumulated Depreciation	269,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Date Acquired	Jun. 28, 2013
Carmel, IN [Member] | Assisted Living Facility [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
SEC Schedule III, Real Estate and Accumulated Depreciation, Amount of Encumbrances	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Land	579,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Buildings and Improvements	2,133,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Improvements	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Land	579,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Buildings and Improvements	2,133,000
SEC Schedule III, Real Estate, Gross	2,712,000
SEC Schedule III, Real Estate Accumulated Depreciation	0
Real Estate And Accumulated Depreciation Date Acquired String	Under Const.
Crawfordsville, IN [Member] | Assisted Living Facility [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
SEC Schedule III, Real Estate and Accumulated Depreciation, Amount of Encumbrances	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Land	300,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Buildings and Improvements	3,134,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Improvements	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Land	300,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Buildings and Improvements	3,134,000
SEC Schedule III, Real Estate, Gross	3,434,000
SEC Schedule III, Real Estate Accumulated Depreciation	46,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Date Acquired	Jun. 28, 2013
Crown Point, IN [Member] | Assisted Living Facility [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
SEC Schedule III, Real Estate and Accumulated Depreciation, Amount of Encumbrances	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Land	791,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Buildings and Improvements	7,020,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Improvements	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Land	791,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Buildings and Improvements	7,020,000
SEC Schedule III, Real Estate, Gross	7,811,000
SEC Schedule III, Real Estate Accumulated Depreciation	20,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Date Acquired	Oct. 30, 2013
Greenwood, IN [Member] | Assisted Living Facility [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
SEC Schedule III, Real Estate and Accumulated Depreciation, Amount of Encumbrances	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Land	463,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Buildings and Improvements	6,810,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Improvements	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Land	463,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Buildings and Improvements	6,810,000
SEC Schedule III, Real Estate, Gross	7,273,000
SEC Schedule III, Real Estate Accumulated Depreciation	18,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Date Acquired	Nov. 07, 2013
Lafayette, IN [Member] | Assisted Living Facility [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
SEC Schedule III, Real Estate and Accumulated Depreciation, Amount of Encumbrances	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Land	546,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Buildings and Improvements	4,583,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Improvements	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Land	546,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Buildings and Improvements	4,583,000
SEC Schedule III, Real Estate, Gross	5,129,000
SEC Schedule III, Real Estate Accumulated Depreciation	430,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Date Acquired	Jun. 30, 2010
Wabash, IN [Member] | Assisted Living Facility [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
SEC Schedule III, Real Estate and Accumulated Depreciation, Amount of Encumbrances	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Land	320,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Buildings and Improvements	2,242,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Improvements	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Land	320,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Buildings and Improvements	2,242,000
SEC Schedule III, Real Estate, Gross	2,562,000
SEC Schedule III, Real Estate Accumulated Depreciation	37,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Date Acquired	Jun. 28, 2013
Overland Park, KS [Member] | Assisted Living Facility [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
SEC Schedule III, Real Estate and Accumulated Depreciation, Amount of Encumbrances	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Land	2,199,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Buildings and Improvements	20,026,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Improvements	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Land	2,199,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Buildings and Improvements	20,026,000
SEC Schedule III, Real Estate, Gross	22,225,000
SEC Schedule III, Real Estate Accumulated Depreciation	881,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Date Acquired	Sep. 30, 2012
Mission, KS [Member] | Assisted Living Facility [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
SEC Schedule III, Real Estate and Accumulated Depreciation, Amount of Encumbrances	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Land	1,901,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Buildings and Improvements	17,310,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Improvements	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Land	1,901,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Buildings and Improvements	17,310,000
SEC Schedule III, Real Estate, Gross	19,211,000
SEC Schedule III, Real Estate Accumulated Depreciation	761,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Date Acquired	Sep. 30, 2012
Bastrop, LA [Member] | Assisted Living Facility [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
SEC Schedule III, Real Estate and Accumulated Depreciation, Amount of Encumbrances	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Land	325,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Buildings and Improvements	2,456,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Improvements	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Land	325,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Buildings and Improvements	2,456,000
SEC Schedule III, Real Estate, Gross	2,781,000
SEC Schedule III, Real Estate Accumulated Depreciation	211,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Date Acquired	Apr. 30, 2011
Bossier City, LA [Member] | Assisted Living Facility [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
SEC Schedule III, Real Estate and Accumulated Depreciation, Amount of Encumbrances	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Land	500,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Buildings and Improvements	3,344,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Improvements	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Land	500,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Buildings and Improvements	3,344,000
SEC Schedule III, Real Estate, Gross	3,844,000
SEC Schedule III, Real Estate Accumulated Depreciation	301,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Date Acquired	Apr. 30, 2011
Minden, LA [Member] | Assisted Living Facility [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
SEC Schedule III, Real Estate and Accumulated Depreciation, Amount of Encumbrances	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Land	280,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Buildings and Improvements	1,698,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Improvements	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Land	280,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Buildings and Improvements	1,698,000
SEC Schedule III, Real Estate, Gross	1,978,000
SEC Schedule III, Real Estate Accumulated Depreciation	145,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Date Acquired	Apr. 30, 2011
West Monroe, LA [Member] | Assisted Living Facility [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
SEC Schedule III, Real Estate and Accumulated Depreciation, Amount of Encumbrances	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Land	770,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Buildings and Improvements	5,627,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Improvements	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Land	770,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Buildings and Improvements	5,627,000
SEC Schedule III, Real Estate, Gross	6,397,000
SEC Schedule III, Real Estate Accumulated Depreciation	454,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Date Acquired	Apr. 30, 2011
Baltimore, MD [Member] | Assisted Living Facility [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
SEC Schedule III, Real Estate and Accumulated Depreciation, Amount of Encumbrances	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Land	860,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Buildings and Improvements	8,078,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Improvements	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Land	860,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Buildings and Improvements	8,078,000
SEC Schedule III, Real Estate, Gross	8,938,000
SEC Schedule III, Real Estate Accumulated Depreciation	37,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Date Acquired	Oct. 31, 2013
Battle Creek, MI [Member] | Assisted Living Facility [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
SEC Schedule III, Real Estate and Accumulated Depreciation, Amount of Encumbrances	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Land	398,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Buildings and Improvements	3,093,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Improvements	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Land	398,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Buildings and Improvements	3,093,000
SEC Schedule III, Real Estate, Gross	3,491,000
SEC Schedule III, Real Estate Accumulated Depreciation	356,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Date Acquired	Oct. 19, 2009
Lansing, MI [Member] | Assisted Living Facility [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
SEC Schedule III, Real Estate and Accumulated Depreciation, Amount of Encumbrances	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Land	340,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Buildings and Improvements	7,908,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Improvements	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Land	340,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Buildings and Improvements	7,908,000
SEC Schedule III, Real Estate, Gross	8,248,000
SEC Schedule III, Real Estate Accumulated Depreciation	898,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Date Acquired	Oct. 19, 2009
Midland, MI [Member] | Assisted Living Facility [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
SEC Schedule III, Real Estate and Accumulated Depreciation, Amount of Encumbrances	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Land	504,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Buildings and Improvements	6,612,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Improvements	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Land	504,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Buildings and Improvements	6,612,000
SEC Schedule III, Real Estate, Gross	7,116,000
SEC Schedule III, Real Estate Accumulated Depreciation	718,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Date Acquired	Oct. 19, 2009
Saginaw, MI [Member] | Assisted Living Facility [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
SEC Schedule III, Real Estate and Accumulated Depreciation, Amount of Encumbrances	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Land	248,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Buildings and Improvements	4,212,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Improvements	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Land	248,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Buildings and Improvements	4,212,000
SEC Schedule III, Real Estate, Gross	4,460,000
SEC Schedule III, Real Estate Accumulated Depreciation	474,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Date Acquired	Oct. 19, 2009
Champlin, MN [Member] | Assisted Living Facility [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
SEC Schedule III, Real Estate and Accumulated Depreciation, Amount of Encumbrances	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Land	980,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Buildings and Improvements	4,430,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Improvements	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Land	980,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Buildings and Improvements	4,430,000
SEC Schedule III, Real Estate, Gross	5,410,000
SEC Schedule III, Real Estate Accumulated Depreciation	509,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Date Acquired	Mar. 10, 2010
Hugo, MN [Member] | Assisted Living Facility [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
SEC Schedule III, Real Estate and Accumulated Depreciation, Amount of Encumbrances	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Land	400,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Buildings and Improvements	3,800,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Improvements	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Land	400,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Buildings and Improvements	3,800,000
SEC Schedule III, Real Estate, Gross	4,200,000
SEC Schedule III, Real Estate Accumulated Depreciation	422,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Date Acquired	Mar. 10, 2010
Maplewood, MN [Member] | Assisted Living Facility [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
SEC Schedule III, Real Estate and Accumulated Depreciation, Amount of Encumbrances	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Land	1,700,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Buildings and Improvements	6,510,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Improvements	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Land	1,700,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Buildings and Improvements	6,510,000
SEC Schedule III, Real Estate, Gross	8,210,000
SEC Schedule III, Real Estate Accumulated Depreciation	742,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Date Acquired	Mar. 10, 2010
North Branch, MN [Member] | Assisted Living Facility [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
SEC Schedule III, Real Estate and Accumulated Depreciation, Amount of Encumbrances	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Land	595,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Buildings and Improvements	2,985,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Improvements	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Land	595,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Buildings and Improvements	2,985,000
SEC Schedule III, Real Estate, Gross	3,580,000
SEC Schedule III, Real Estate Accumulated Depreciation	371,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Date Acquired	Mar. 10, 2010
Grand Island, NE [Member] | Assisted Living Facility [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
SEC Schedule III, Real Estate and Accumulated Depreciation, Amount of Encumbrances	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Land	370,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Buildings and Improvements	5,029,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Improvements	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Land	370,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Buildings and Improvements	5,029,000
SEC Schedule III, Real Estate, Gross	5,399,000
SEC Schedule III, Real Estate Accumulated Depreciation	71,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Date Acquired	Jun. 28, 2013
Lincoln, NE [Member] | Assisted Living Facility [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
SEC Schedule III, Real Estate and Accumulated Depreciation, Amount of Encumbrances	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Land	380,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Buildings and Improvements	10,904,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Improvements	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Land	380,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Buildings and Improvements	10,904,000
SEC Schedule III, Real Estate, Gross	11,284,000
SEC Schedule III, Real Estate Accumulated Depreciation	149,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Date Acquired	Jun. 28, 2013
Omaha, NE [Member] | Assisted Living Facility [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
SEC Schedule III, Real Estate and Accumulated Depreciation, Amount of Encumbrances	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Land	480,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Buildings and Improvements	7,039,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Improvements	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Land	480,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Buildings and Improvements	7,039,000
SEC Schedule III, Real Estate, Gross	7,519,000
SEC Schedule III, Real Estate Accumulated Depreciation	97,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Date Acquired	Jun. 28, 2013
Marysville, OH [Member] | Assisted Living Facility [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
SEC Schedule III, Real Estate and Accumulated Depreciation, Amount of Encumbrances	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Land	1,250,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Buildings and Improvements	13,950,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Improvements	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Land	1,250,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Buildings and Improvements	13,950,000
SEC Schedule III, Real Estate, Gross	15,200,000
SEC Schedule III, Real Estate Accumulated Depreciation	212,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Date Acquired	Jul. 01, 2013
Ontario, OR [Member] | Assisted Living Facility [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
SEC Schedule III, Real Estate and Accumulated Depreciation, Amount of Encumbrances	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Land	428,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Buildings and Improvements	6,128,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Improvements	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Land	428,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Buildings and Improvements	6,128,000
SEC Schedule III, Real Estate, Gross	6,556,000
SEC Schedule III, Real Estate Accumulated Depreciation	162,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Date Acquired	Dec. 21, 2012
Conway, SC [Member] | Assisted Living Facility [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
SEC Schedule III, Real Estate and Accumulated Depreciation, Amount of Encumbrances	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Land	344,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Buildings and Improvements	2,877,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Improvements	94,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Land	344,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Buildings and Improvements	2,971,000
SEC Schedule III, Real Estate, Gross	3,315,000
SEC Schedule III, Real Estate Accumulated Depreciation	1,095,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Date Acquired	Dec. 31, 1998
Gallatin, TN [Member] | Assisted Living Facility [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
SEC Schedule III, Real Estate and Accumulated Depreciation, Amount of Encumbrances	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Land	326,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Buildings and Improvements	2,277,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Improvements	61,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Land	326,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Buildings and Improvements	2,338,000
SEC Schedule III, Real Estate, Gross	2,664,000
SEC Schedule III, Real Estate Accumulated Depreciation	861,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Date Acquired	Mar. 31, 1999
Kingsport, TN [Member] | Assisted Living Facility [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
SEC Schedule III, Real Estate and Accumulated Depreciation, Amount of Encumbrances	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Land	354,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Buildings and Improvements	2,568,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Improvements	66,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Land	354,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Buildings and Improvements	2,634,000
SEC Schedule III, Real Estate, Gross	2,988,000
SEC Schedule III, Real Estate Accumulated Depreciation	973,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Date Acquired	Dec. 31, 1998
Tullahoma, TN [Member] | Assisted Living Facility [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
SEC Schedule III, Real Estate and Accumulated Depreciation, Amount of Encumbrances	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Land	191,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Buildings and Improvements	2,216,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Improvements	57,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Land	191,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Buildings and Improvements	2,273,000
SEC Schedule III, Real Estate, Gross	2,464,000
SEC Schedule III, Real Estate Accumulated Depreciation	825,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Date Acquired	Mar. 31, 1999
Beaver Dam, WI [Member] | Assisted Living Facility [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
SEC Schedule III, Real Estate and Accumulated Depreciation, Amount of Encumbrances	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Land	210,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Buildings and Improvements	20,149,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Improvements	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Land	210,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Buildings and Improvements	20,149,000
SEC Schedule III, Real Estate, Gross	20,359,000
SEC Schedule III, Real Estate Accumulated Depreciation	581,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Date Acquired	Dec. 21, 2012
Rogers, AR [Member] | Independent Living Facility [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
SEC Schedule III, Real Estate and Accumulated Depreciation, Amount of Encumbrances	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Land	1,470,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Buildings and Improvements	26,641,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Improvements	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Land	1,470,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Buildings and Improvements	26,641,000
SEC Schedule III, Real Estate, Gross	28,111,000
SEC Schedule III, Real Estate Accumulated Depreciation	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Date Acquired	Dec. 23, 2013
Fort Smith, AR [Member] | Independent Living Facility [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
SEC Schedule III, Real Estate and Accumulated Depreciation, Amount of Encumbrances	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Land	590,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Buildings and Improvements	22,002,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Improvements	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Land	590,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Buildings and Improvements	22,002,000
SEC Schedule III, Real Estate, Gross	22,592,000
SEC Schedule III, Real Estate Accumulated Depreciation	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Date Acquired	Dec. 23, 2013
Pinole, CA [Member] | Independent Living Facility [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
SEC Schedule III, Real Estate and Accumulated Depreciation, Amount of Encumbrances	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Land	1,020,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Buildings and Improvements	18,055,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Improvements	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Land	1,020,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Buildings and Improvements	18,055,000
SEC Schedule III, Real Estate, Gross	19,075,000
SEC Schedule III, Real Estate Accumulated Depreciation	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Date Acquired	Dec. 23, 2013
West Covina, CA [Member] | Independent Living Facility [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
SEC Schedule III, Real Estate and Accumulated Depreciation, Amount of Encumbrances	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Land	940,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Buildings and Improvements	20,144,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Improvements	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Land	940,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Buildings and Improvements	20,144,000
SEC Schedule III, Real Estate, Gross	21,084,000
SEC Schedule III, Real Estate Accumulated Depreciation	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Date Acquired	Dec. 23, 2013
Hemet, CA [Member] | Independent Living Facility [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
SEC Schedule III, Real Estate and Accumulated Depreciation, Amount of Encumbrances	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Land	1,250,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Buildings and Improvements	12,802,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Improvements	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Land	1,250,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Buildings and Improvements	12,802,000
SEC Schedule III, Real Estate, Gross	14,052,000
SEC Schedule III, Real Estate Accumulated Depreciation	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Date Acquired	Dec. 23, 2013
Fresno, CA [Member] | Independent Living Facility [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
SEC Schedule III, Real Estate and Accumulated Depreciation, Amount of Encumbrances	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Land	420,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Buildings and Improvements	11,628,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Improvements	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Land	420,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Buildings and Improvements	11,628,000
SEC Schedule III, Real Estate, Gross	12,048,000
SEC Schedule III, Real Estate Accumulated Depreciation	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Date Acquired	Dec. 23, 2013
Merced, CA [Member] | Independent Living Facility [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
SEC Schedule III, Real Estate and Accumulated Depreciation, Amount of Encumbrances	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Land	350,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Buildings and Improvements	18,226,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Improvements	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Land	350,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Buildings and Improvements	18,226,000
SEC Schedule III, Real Estate, Gross	18,576,000
SEC Schedule III, Real Estate Accumulated Depreciation	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Date Acquired	Dec. 23, 2013
Roseville, CA [Member] | Independent Living Facility [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
SEC Schedule III, Real Estate and Accumulated Depreciation, Amount of Encumbrances	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Land	630,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Buildings and Improvements	30,497,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Improvements	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Land	630,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Buildings and Improvements	30,497,000
SEC Schedule III, Real Estate, Gross	31,127,000
SEC Schedule III, Real Estate Accumulated Depreciation	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Date Acquired	Dec. 23, 2013
Modesto, CA [Member] | Independent Living Facility [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
SEC Schedule III, Real Estate and Accumulated Depreciation, Amount of Encumbrances	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Land	1,170,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Buildings and Improvements	21,922,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Improvements	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Land	1,170,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Buildings and Improvements	21,922,000
SEC Schedule III, Real Estate, Gross	23,092,000
SEC Schedule III, Real Estate Accumulated Depreciation	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Date Acquired	Dec. 23, 2013
Athens, GA [Member] | Independent Living Facility [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
SEC Schedule III, Real Estate and Accumulated Depreciation, Amount of Encumbrances	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Land	910,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Buildings and Improvements	32,225,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Improvements	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Land	910,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Buildings and Improvements	32,225,000
SEC Schedule III, Real Estate, Gross	33,135,000
SEC Schedule III, Real Estate Accumulated Depreciation	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Date Acquired	Dec. 23, 2013
Columbus, GA [Member] | Independent Living Facility [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
SEC Schedule III, Real Estate and Accumulated Depreciation, Amount of Encumbrances	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Land	570,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Buildings and Improvements	9,469,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Improvements	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Land	570,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Buildings and Improvements	9,469,000
SEC Schedule III, Real Estate, Gross	10,039,000
SEC Schedule III, Real Estate Accumulated Depreciation	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Date Acquired	Dec. 23, 2013
Savannah, GA [Member] | Independent Living Facility [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
SEC Schedule III, Real Estate and Accumulated Depreciation, Amount of Encumbrances	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Land	1,200,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Buildings and Improvements	16,368,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Improvements	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Land	1,200,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Buildings and Improvements	16,368,000
SEC Schedule III, Real Estate, Gross	17,568,000
SEC Schedule III, Real Estate Accumulated Depreciation	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Date Acquired	Dec. 23, 2013
Boise, ID [Member] | Independent Living Facility [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
SEC Schedule III, Real Estate and Accumulated Depreciation, Amount of Encumbrances	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Land	400,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Buildings and Improvements	12,652,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Improvements	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Land	400,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Buildings and Improvements	12,652,000
SEC Schedule III, Real Estate, Gross	13,052,000
SEC Schedule III, Real Estate Accumulated Depreciation	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Date Acquired	Dec. 23, 2013
Fort Wayne, IN [Member] | Independent Living Facility [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
SEC Schedule III, Real Estate and Accumulated Depreciation, Amount of Encumbrances	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Land	310,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Buildings and Improvements	13,747,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Improvements	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Land	310,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Buildings and Improvements	13,747,000
SEC Schedule III, Real Estate, Gross	14,057,000
SEC Schedule III, Real Estate Accumulated Depreciation	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Date Acquired	Dec. 23, 2013
Kenner, LA [Member] | Independent Living Facility [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
SEC Schedule III, Real Estate and Accumulated Depreciation, Amount of Encumbrances	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Land	310,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Buildings and Improvements	26,803,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Improvements	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Land	310,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Buildings and Improvements	26,803,000
SEC Schedule III, Real Estate, Gross	27,113,000
SEC Schedule III, Real Estate Accumulated Depreciation	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Date Acquired	Dec. 23, 2013
Bellevue, WA [Member] | Independent Living Facility [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
SEC Schedule III, Real Estate and Accumulated Depreciation, Amount of Encumbrances	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Land	780,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Buildings and Improvements	17,794,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Improvements	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Land	780,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Buildings and Improvements	17,794,000
SEC Schedule III, Real Estate, Gross	18,574,000
SEC Schedule III, Real Estate Accumulated Depreciation	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Date Acquired	Dec. 23, 2013
Vancouver, WA [Member] | Independent Living Facility [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
SEC Schedule III, Real Estate and Accumulated Depreciation, Amount of Encumbrances	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Land	1,740,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Buildings and Improvements	21,850,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Improvements	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Land	1,740,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Buildings and Improvements	21,850,000
SEC Schedule III, Real Estate, Gross	23,590,000
SEC Schedule III, Real Estate Accumulated Depreciation	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Date Acquired	Dec. 23, 2013
Yakima, WA [Member] | Independent Living Facility [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
SEC Schedule III, Real Estate and Accumulated Depreciation, Amount of Encumbrances	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Land	440,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Buildings and Improvements	13,114,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Improvements	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Land	440,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Buildings and Improvements	13,114,000
SEC Schedule III, Real Estate, Gross	13,554,000
SEC Schedule III, Real Estate Accumulated Depreciation	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Date Acquired	Dec. 23, 2013
Loma Linda, CA [Member] | Senior Living Campus [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
SEC Schedule III, Real Estate and Accumulated Depreciation, Amount of Encumbrances	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Land	1,200,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Buildings and Improvements	10,800,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Improvements	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Land	1,200,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Buildings and Improvements	10,800,000
SEC Schedule III, Real Estate, Gross	12,000,000
SEC Schedule III, Real Estate Accumulated Depreciation	381,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Date Acquired	Sep. 28, 2012
Nampa, ID [Member] | Senior Living Campus [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
SEC Schedule III, Real Estate and Accumulated Depreciation, Amount of Encumbrances	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Land	243,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Buildings and Improvements	4,182,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Improvements	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Land	243,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Buildings and Improvements	4,182,000
SEC Schedule III, Real Estate, Gross	4,425,000
SEC Schedule III, Real Estate Accumulated Depreciation	1,931,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Date Acquired	Aug. 13, 1996
West Palm Beach, FL [Member] | Senior Living Campus [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
SEC Schedule III, Real Estate and Accumulated Depreciation, Amount of Encumbrances	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Land	2,771,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Buildings and Improvements	4,286,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Improvements	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Land	2,771,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Buildings and Improvements	4,286,000
SEC Schedule III, Real Estate, Gross	7,057,000
SEC Schedule III, Real Estate Accumulated Depreciation	3,579,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Date Acquired	Aug. 06, 1996
Silverdale, WA [Member] | Senior Living Campus [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
SEC Schedule III, Real Estate and Accumulated Depreciation, Amount of Encumbrances	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Land	1,750,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Buildings and Improvements	23,860,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Improvements	2,166,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Land	1,750,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Buildings and Improvements	26,026,000
SEC Schedule III, Real Estate, Gross	27,776,000
SEC Schedule III, Real Estate Accumulated Depreciation	906,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Date Acquired	Aug. 16, 2012
Crestview, FL [Member] | Medical Office Building [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
SEC Schedule III, Real Estate and Accumulated Depreciation, Amount of Encumbrances	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Land	165,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Buildings and Improvements	3,349,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Improvements	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Land	165,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Buildings and Improvements	3,349,000
SEC Schedule III, Real Estate, Gross	3,514,000
SEC Schedule III, Real Estate Accumulated Depreciation	2,131,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Date Acquired	Jun. 30, 1993
Pasadena, TX [Member] | Medical Office Building [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
SEC Schedule III, Real Estate and Accumulated Depreciation, Amount of Encumbrances	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Land	631,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Buildings and Improvements	6,341,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Improvements	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Land	631,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Buildings and Improvements	6,341,000
SEC Schedule III, Real Estate, Gross	6,972,000
SEC Schedule III, Real Estate Accumulated Depreciation	4,170,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Date Acquired	Jan. 01, 1995
La Mesa, CA [Member] | Hospital [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
SEC Schedule III, Real Estate and Accumulated Depreciation, Amount of Encumbrances	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Land	4,180,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Buildings and Improvements	8,320,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Improvements	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Land	4,180,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Buildings and Improvements	8,320,000
SEC Schedule III, Real Estate, Gross	12,500,000
SEC Schedule III, Real Estate Accumulated Depreciation	1,175,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Date Acquired	Mar. 10, 2010
Jackson, KY [Member] | Hospital [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
SEC Schedule III, Real Estate and Accumulated Depreciation, Amount of Encumbrances	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Land	540,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Buildings and Improvements	10,163,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Improvements	5,838,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Land	540,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Buildings and Improvements	16,001,000
SEC Schedule III, Real Estate, Gross	16,541,000
SEC Schedule III, Real Estate Accumulated Depreciation	5,813,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Date Acquired	Jun. 12, 1992
Murfreesboro, TN [Member] | Hospital [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
SEC Schedule III, Real Estate and Accumulated Depreciation, Amount of Encumbrances	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Land	2,444,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Buildings and Improvements	17,585,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Improvements	0
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Land	2,444,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Carrying Amount of Buildings and Improvements	17,585,000
SEC Schedule III, Real Estate, Gross	20,029,000
SEC Schedule III, Real Estate Accumulated Depreciation	548,000
SEC Schedule III, Real Estate and Accumulated Depreciation, Date Acquired	Oct. 01, 2012
Subsequent Property Additions Purchased From NHC [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
SEC Schedule III, Real Estate and Accumulated Depreciation, Initial Cost of Buildings and Improvements	33,909,000
Acquisition Bickford Senior Living [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
Significant Acquisition, Cost, Debt Assumed	$ 80,080,000

XML

Income Taxes Income Taxes (Tables)

12 Months Ended

Dec. 31, 2013

Income Taxes [Abstract]

Schedule of Dividends Paid, Per Share [Table Text Block]

Per share dividend payments to common stockholders for the last three years are characterized for tax purposes as follows:

(Unaudited)	2013		2012		2011
Ordinary income	$	2.85895	$	2.62870	$	2.32042
Capital gain	0.16493		0.01130		0.32494
Return of capital	0.09612		—		0.06964
Dividends paid per common share	$	3.12	$	2.64	$	2.715

XML

Debt (Schedule of Debt) (Details) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Schedule of Debt [Abstract]
Revolving credit facility - unsecured	$ 167,000	$ 64,000
Bank term loans - unsecured	370,000	120,000
Bank term loans - secured	0	19,250
Fannie Mae term loans - secured (including a premium of $1,756)	80,080	0
Debt, Long-term and Short-term, Combined Amount	$ 617,080	$ 203,250

XML

Income Taxes Income Taxes (Narrative) (Details) (USD $)	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Income Taxes [Line Items]
Income Tax Expense (Benefit)	$ 267,000	$ 137,000	$ 96,000
Deferred Income Tax Expense (Benefit)	0	0	0
Income Taxes Paid	129,000	96,000	82,000
Taxable REIT Subsidiary [Member]
Income Taxes [Line Items]
Income Tax Expense (Benefit)	128,000	20,000
Other than Taxable REIT Subsidiary [Member]
Income Taxes [Line Items]
Income Tax Expense (Benefit)	$ 139,000	$ 117,000

XML

Share-Based Compensation Share-Based Compensation (Schedule of Restricted Stock Activity) (Details) (USD $)	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Deferred Compensation Arrangements [Abstract]
Restricted Stock, Non-vested, January 1	0	1,250	3,175
Restricted Stock, Vested during the period	0	(1,250)	(1,925)
Restricted Stock, Non-vested, December 31	0	0	1,250	3,175
Weighted Average Remaining Vesting Period (Years), Restricted Stock, January 1			0 years 1 month 5 days	0 years 6 months 14 days
Aggregate Intrinsic Value, Restricted Stock, Non-vested, January 1		$ 55,000	$ 143,000

XML

Equity-Method Investment And Other Assets Equity-Method Investment And Other Assets (Narrative) (Details) (USD $)	9 Months Ended		12 Months Ended		15 Months Ended		12 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Dec. 31, 2013 properties	Dec. 31, 2012	Dec. 31, 2013 properties	Jun. 30, 2013 Bickford Senior Living [Member] properties	Dec. 31, 2013 Additional Paid-in Capital [Member]	Dec. 31, 2013 Lease Deposits [Member]	Dec. 31, 2013 Capital Improvements Reserve [Member]
Investment [Line Items]
Equity Method Investment, Difference Between Carrying Amount and Underlying Equity			$ 8,986,000		$ 8,986,000
Number of Real Estate Properties			157		157	17
Net Assets Received In Acquisition of Equity-Method Investee	817,000	0	817,000				817,000
Variable Interest Entity, Financial or Other Support, Amount					0
Proceeds from Equity Method Investment, Dividends or Distributions			0	0
Escrow deposit for tax deferred exchange			23,813,000	0	23,813,000
Lease escrow deposits			$ 22,775,000	$ 0	$ 22,775,000			$ 21,275,000	$ 1,500,000

XML

Significant Accounting Policies

12 Months Ended

Dec. 31, 2013

Accounting Policies [Abstract]

Significant Accounting Policies

SIGNIFICANT ACCOUNTING POLICIES

The Company - National Health Investors, Inc. ("NHI" or the "Company"), a Maryland corporation incorporated and publicly listed in 1991, is a real estate investment trust (“REIT”) specializing in financing healthcare real estate by purchase and leaseback transactions, RIDEA transactions and mortgage loans. Our investments include senior housing (assisted living, memory care, independent living and senior living campuses), skilled nursing, medical office buildings and specialty hospitals. Revenue is derived primarily from rental income on leased properties, interest income on mortgage loans and income from investments in the securities of other healthcare REITs.

Principles of Consolidation - The accompanying consolidated financial statements include our accounts and the accounts of our wholly-owned subsidiaries and the joint venture entity over which we exercise control. All inter-company transactions and balances have been eliminated in consolidation. Net income is reduced by the portion of net income attributable to noncontrolling interests.

We apply Financial Accounting Standards Board ("FASB") guidance for our arrangements with variable interest entities ("VIEs") which requires us to identify entities for which control is achieved through means other than voting rights and to determine which business enterprise is the primary beneficiary of the VIE. A VIE is broadly defined as an entity with one or more of the following characteristics: (a) the total equity investment at risk is insufficient to finance the entity's activities without additional subordinated financial support; (b) as a group, the holders of the equity investment at risk lack (i) the ability to make decisions about the entity's activities through voting or similar rights, (ii) the obligation to absorb the expected losses of the entity, or (iii) the right to receive the expected residual returns of the entity; or (c) the equity investors have voting rights that are not proportional to their economic interests, and substantially all of the entity's activities either involve, or are conducted on behalf of, an investor that has disproportionately few voting rights. We consolidate investments in VIEs when we are determined to be the primary beneficiary of the VIE. We may change our assessment of a VIE due to events such as modifications of contractual arrangements that affect the characteristics or adequacy of the entity's equity investments at risk and the disposal of all or a portion of an interest held by the primary beneficiary.

We identify the primary beneficiary of a VIE as the enterprise that has both: (i) the power to direct the activities of the VIE that most significantly impact the entity's economic performance; and (ii) the obligation to absorb losses or the right to receive benefits of the VIE that could be significant to the entity. We perform this analysis on an ongoing basis. At December 31, 2013, we held an interest in one unconsolidated VIE, of which we were not the primary beneficiary.

We also apply FASB guidance related to investments in joint ventures based on the type of controlling rights held by the members' interests in limited liability companies that may preclude consolidation by the majority equity owner in certain circumstances in which the majority equity owner would otherwise consolidate the joint venture.

We structure our joint ventures to be compliant with the provisions of the REIT Investment Diversification and Empowerment Act of 2007 ("RIDEA") which permits NHI to receive rent payments through a triple-net lease between a property company and an operating company, and is designed to give NHI the opportunity to capture additional value on the improving performance of the operating company through distributions to a taxable REIT subsidiary ("TRS"). Accordingly, the TRS holds our equity interest in an unconsolidated operating company, which we do not control, and provides an organizational structure that will allow the TRS to engage in a broad range of activities and share in revenues that would otherwise be non-qualifying income under the REIT gross income tests.

Equity-Method Investment - We report our TRS' investment in an unconsolidated entity, over whose operating and financial policies we have the ability to exercise significant influence but not control, under the equity method of accounting. Under this method of accounting, our pro rata share of the entity's earnings or losses is included in our Consolidated Statements of Income. Additionally, we adjust our investment carrying amount to reflect our share of changes in an equity-method investee's capital resulting from its capital transactions.

The initial carrying value of our equity-method investment is based on the fair value of the net assets of the entity at the time we acquired our interest. We estimate fair values of the net assets of our equity-method investee based on discounted cash flow models. The inputs we use in these models are based on assumptions that we believe to be within a reasonable range of current market rates for the respective investments.

We evaluate our equity-method investment for impairment whenever events or changes in circumstances indicate that the carrying value of our investment may exceed the fair value. If it is determined that a decline in the fair value of our investment is not temporary, and if such reduced fair value is below its carrying value, an impairment is recorded. The determination of the fair value of our equity-method investments involve significant judgment. Our estimates consider all available evidence including the present value of the expected future cash flows discounted at market rates, general economic conditions and other relevant factors.

Noncontrolling Interest - We present the portion of any equity that we do not own in entities that we control (and thus consolidate) as noncontrolling interest and classify such interest as a component of consolidated equity, separate from total NHI stockholders' equity, in our Consolidated Balance Sheets. In addition, we include net income attributable to the noncontrolling interest in net income in our Consolidated Statements of Income.

Use of Estimates - The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the U.S. requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Fair Value Measurements - Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. A three-level fair value hierarchy is required to prioritize the inputs used to measure fair value. This hierarchy requires entities to maximize the use of observable inputs and minimize the use of unobservable inputs.

The three levels of inputs used to measure fair value are as follows:

Level 1 - Quoted prices in active markets for identical assets or liabilities.

Level 2 - Observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data.

Level 3 - Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. This includes certain pricing models, discounted cash flow methodologies and similar techniques that use significant unobservable inputs.

If the fair value measurement is based on inputs from different levels of the hierarchy, the level within which the entire fair value measurement falls is the lowest level input that is significant to the fair value measurement in its entirety. Our assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the asset or liability. When an event or circumstance alters our assessment of the observability and thus the appropriate classification of an input to a fair value measurement which we deem to be significant to the fair value measurement as a whole, we will transfer that fair value measurement to the appropriate level within the fair value hierarchy.

Real Estate Properties - Real estate properties are recorded at cost or, if acquired through business combination, at fair value. Cost or fair value at the time of acquisition is allocated among land, buildings, tenant improvements, lease and other intangibles, and personal property. For properties acquired in transactions accounted for as asset purchases, the purchase price allocation is based on the relative fair values of the assets acquired. Cost includes capitalized interest during construction periods. We use the straight-line method of depreciation for buildings over their estimated useful lives of 40 years, and improvements over their estimated useful lives ranging from 3 to 25 years.

We evaluate the recoverability of the carrying value of our real estate properties on a property-by-property basis. On a quarterly basis, we review our properties for recoverability when events or circumstances, including significant physical changes in the property, significant adverse changes in general economic conditions and significant deteriorations of the underlying cash flows of the property, indicate that the carrying amount of the property may not be recoverable. The need to recognize an impairment charge is based on estimated undiscounted future cash flows from a property compared to the carrying value of that property. If recognition of an impairment charge is necessary, it is measured as the amount by which the carrying amount of the property exceeds the fair value of the property.

We have reclassified for all periods presented the operations of facilities meeting the accounting criteria as either being sold or held for sale as discontinued operations in the Consolidated Statements of Income. Long-lived assets classified as held for sale are reported separately in the Consolidated Balance Sheets. When assets previously classified as being held for sale no longer meet the accounting criteria for such classification, we reclassify those assets as held and used, measured at the lower of their carrying amount before the assets were classified as held for sale (adjusted in the period in which the decision not to sell was made for any depreciation expense that would have been recognized had the assets been continuously classified as held and used) or their fair value at the date of the subsequent decision not to sell. Results of operations of the facilities previously disclosed in our Consolidated Statements of Income as discontinued operations which no longer meet the accounting criteria as held for sale are reclassified into continuing operations for all periods presented. There is no change to reported net income for the prior periods as a result of this reclassification.

Mortgage and Other Notes Receivable - Each quarter, we evaluate the carrying values of our notes receivable on an instrument-by-instrument basis for recoverability when events or circumstances, including the non-receipt of contractual principal and interest payments, significant deteriorations of the financial condition of the borrower and significant adverse changes in general economic conditions, indicate that the carrying amount of the note receivable may not be recoverable. If a note receivable becomes more than 30 days delinquent as to contractual principal or interest payments, the loan is classified as non-performing, and thereafter we recognize all amounts due when received. If necessary, an impairment is measured as the amount by which the carrying amount exceeds the discounted cash flows expected to be received under the note receivable or, if foreclosure is probable, the fair value of the collateral securing the note receivable.

Cash Equivalents - Cash equivalents consist of all highly liquid investments with an original maturity of three months or less.

Concentration of Credit Risks - Our credit risks primarily relate to cash and cash equivalents, investments in preferred stock and investments in mortgage and other notes receivable. Cash and cash equivalents are primarily held in bank accounts and overnight investments. We maintain our bank deposit accounts with large financial institutions in amounts that often exceed federally-insured limits. We have not experienced any losses in such accounts. Our mortgages and other notes receivable consist primarily of secured loans on health care facilities. Our investment in preferred stock is in another healthcare REIT.

Our financial instruments, principally our investments in preferred stock, marketable securities, and notes receivable, are subject to the possibility of loss of the carrying values as a result of either the failure of other parties to perform according to their contractual obligations or changes in market prices which may make the instruments less valuable. We obtain collateral in the form of mortgage liens and other protective rights and continually monitor these rights in order to reduce such possibilities of loss. We evaluate the need to provide for reserves for potential losses on our financial instruments based on management's periodic review of our portfolio on an instrument-by-instrument basis.

Marketable Securities - Our investments in marketable securities are classified as available-for-sale securities. Unrealized gains and losses on available-for-sale securities are recorded in stockholders' equity. We evaluate our marketable securities for other-than-temporary impairments on at least a quarterly basis. Realized gains and losses from the sale of available-for-sale securities are determined on a specific-identification basis.

A decline in the market value of any available-for-sale or held-to-maturity security below cost that is deemed to be other-than-temporary results in an impairment to reduce the carrying amount to fair value. The impairment is charged to earnings and a new cost basis for the security is established. To determine whether an impairment is other-than-temporary, we consider whether we have the ability and intent to hold the investment until a market price recovery and consider whether evidence indicating the cost of the investment is recoverable outweighs evidence to the contrary. Evidence considered in this assessment includes the reasons for the impairment, the severity and duration of the impairment, changes in value subsequent to year-end and forecasted performance of the investment.

Deferred Costs - Costs incurred to acquire debt are amortized by the effective interest method over the term of the related debt.

Deferred Income - Deferred income primarily includes non-refundable loan and lease commitment fees received by us, which are amortized into income over the expected period of the related loan or lease. In the event that our financing commitment to a potential borrower or lessee expires, the related commitment fees are recognized into income immediately. Commitment fees may be charged based on the terms of the loan or lease agreements and the creditworthiness of the parties.

Rental Income - Base rental income is recognized using the straight-line method over the term of the lease. Under certain leases, we receive additional contingent rent, which is calculated on the increase in revenues of the lessee over a base year or base quarter. We recognize contingent rent annually or quarterly when, based on the actual revenues of the lessee, receipt of such income is probable since the target threshold has been achieved. Revenue from minimum lease payments under our leases is recognized on a straight-line basis to the extent that future lease payments are considered collectible. Lease payments that depend on a factor directly related to future use of the property, such as an increase in annual revenues over a base year, are considered to be contingent rentals and are excluded from minimum lease payments.

If rental income calculated on a straight-line basis exceeds the cash rent due under a lease, the difference is recorded as an increase to straight-line rent receivable in the Consolidated Balance Sheets and an increase in rental income in the Consolidated Statements of Income. If rental income on a straight-line basis is calculated to be less than cash received, there is a decrease in the same accounts.

We identify a lease as non-performing if a required payment is not received within 30 days of the date it is due. Our policy related to rental income on non-performing leased real estate properties is to recognize rental income in the period when the related cash is received. As of December 31, 2013, we had not identified any of our leases as non-performing.

Mortgage Interest Income - Mortgage interest income is recognized based on the interest rates and principal amounts outstanding on the mortgage notes receivable. Under certain mortgages, we receive additional contingent interest, which is calculated on the increase in the current year revenues of a borrower over a base year. We identify a mortgage loan as non-performing if a required payment is not received within 30 days of the date it is due. Our policy related to mortgage interest income on non-performing mortgage loans is to recognize mortgage interest income in the period when the cash is received. As of December 31, 2013, we had not identified any of our mortgages as non-performing.

Investment Income and Other - Investment income and other includes dividends when declared and interest when earned from investments in preferred stock and marketable securities of other healthcare REITs, interest on cash and cash equivalents when earned, and amortization of deferred income. Realized gains and losses on sales of marketable securities using the specific-identification method are included as a separate component of continuing operations in the Consolidated Statements of Income as investment and other gains.

Derivatives - In the normal course of business, we are subject to risk from adverse fluctuations in interest rates. We have periodically chosen to manage this risk through the use of derivative financial instruments, primarily interest rate swaps. Counterparties to these contracts are major financial institutions. We are exposed to credit loss in the event of nonperformance by these counterparties. We do not use derivative instruments for trading or speculative purposes. Our objective in managing exposure to market risk is to limit the impact on cash flows.

To qualify for hedge accounting, our interest rate swaps must effectively reduce the risk exposure that they are designed to hedge. In addition, at inception of a qualifying cash flow hedging relationship, the underlying transaction or transactions must be, and are expected to remain, probable of occurring in accordance with our related assertions. All of our hedges are cash flow hedges.

We recognize all derivative instruments, including embedded derivatives required to be bifurcated, as assets or liabilities at their fair value in the Consolidated Balance Sheets. Changes in the fair value of derivative instruments that are not designated as hedges or that do not meet the criteria of hedge accounting are recognized in earnings. For derivatives designated in qualifying cash flow hedging relationships, the change in fair value of the effective portion of the derivatives is recognized in accumulated other comprehensive income (loss), whereas the change in fair value of the ineffective portion is recognized in earnings.

Federal Income Taxes - We intend at all times to qualify as a REIT under Sections 856 through 860 of the Internal Revenue Code of 1986, as amended. Effective October 1, 2012, we began recording income tax expense or benefit with respect to one of our subsidiaries which is taxed as a Taxable REIT Subsidiary ("TRS") under provisions similar to those applicable to regular corporations. Aside from such income taxes which may be applicable to the taxable income in the TRS, we will not be subject to U.S. federal income tax, provided that we continue to qualify as a REIT and make distributions to stockholders equal to or in excess of our taxable income. Accordingly, no provision for federal income taxes has been made in the consolidated financial statements, except for the provision on the taxable income of the TRS which is included in franchise, excise and other taxes in the Consolidated Statements of Income. Our failure to continue to qualify under the applicable REIT qualification rules and regulations would have a material adverse impact on our financial position, results of operations and cash flows.

Earnings and profits, which determine the taxability of dividends to stockholders, differ from net income reported for financial reporting purposes due primarily to differences in the basis of assets, estimated useful lives used to compute depreciation expense, gains on sales of real estate, non-cash compensation expense and recognition of commitment fees.

Our tax returns filed for years beginning in 2010 are subject to examination by taxing authorities. We classify interest and penalties related to uncertain tax positions, if any, in our consolidated financial statements as a component of income tax expense.

Segment Disclosures - We are in the business of owning and financing health care properties. We are managed as one segment, rather than multiple segments for internal purposes and for internal decision making.

New Accounting Pronouncements - In February 2013, the FASB issued ASU 2013-02, Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income, which amends FASB Topic 220, Comprehensive Income, which requires entities to provide information about amounts reclassified out of accumulated other comprehensive income by component. In addition, an entity is required to present, either on the face of the income statement or in the notes, significant amounts reclassified out of accumulated other comprehensive income by the respective line items of net income. ASU 2013-02 was effective prospectively for reporting periods beginning after December 15, 2012. The adoption of ASU 2013-02 did not have a material impact on our consolidated financial statements.

In July 2013 the FASB issued ASU 2013-10, Derivatives and Hedging, which amends Topic 815. ASU 2013-10 permits the Fed Funds Effective Swap Rate (OIS) to be used as a U.S. benchmark interest rate for hedge accounting purposes under Topic 815, in addition to U.S. Treasury and LIBOR. ASU 2013-10 also removes the restriction on using different benchmark rates for similar hedges. ASU 2013-10 is effective prospectively for qualifying new or redesignated hedging relationships entered into on or after July 17, 2013. The adoption of ASU 2013-10 did not have a material impact on our consolidated financial statements.

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Share-Based Compensation (Narrative) (Details) (USD $)	12 Months Ended					12 Months Ended		12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2013 2012 Plan [Member]	May 31, 2012 2012 Plan [Member]	Dec. 31, 2013 2005 Plan [Member]	May 31, 2005 2005 Plan [Member]	Dec. 31, 2013 1997 Plan [Member]	Dec. 31, 2013 Expected To Be Recognized During 2014 [Member]	Dec. 31, 2013 Expected To Be Recognized During 2015 [Member]
Shares available for grants				1,140,000	1,500,000	20,635	1,500,000	0
Stock Option Plan, Award Vesting Period				5 years		10 years
Common stock on date granted term period, years				5		10		5
Combined share-based compensation expense for 2005 Plan and 1997 Plan	$ 2,339,000	$ 2,168,000	$ 3,087,000
Expenses, stock options		2,167,000
Expenses, restricted stock		1,000
Weighted Average Fair Value Per Share, Options granted	$ 6.41	$ 6.36	$ 9.91	$ 6.41
Weighted Average Remaining Contractual Life (Years), Options outstanding	3 years 9 months 6 days
Number of Shares Authorized, Available to Issue and Outstanding	1,677,309
Unrecognized compensation cost	416,000								375,000	41,000
Aggregate Intrinsic Value, Options outstanding	1,417,000
Aggregate Intrinsic Value, Options exercisable	901,848
Aggregate Intrinsic Value, Options exercised	1,084,000	5,527,000	2,567,000
Aggregate Intrinsic Value, Per Share, Options exercised	$ 19.71	$ 8.67	$ 12.94
Unrecognized Compensation Expense, Non-vested Restricted Stock	$ 0.00

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Real Estate (Summary of NHC Percentage Rent) (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Total percentage rent			$ 2,090
National Healthcare Corporation [Member]
Total percentage rent	3,021	2,527
Current year [Member] | National Healthcare Corporation [Member]
Total percentage rent	2,275	1,530	1,530
Prior year final certification [Member] | National Healthcare Corporation [Member]
Total percentage rent	$ 746	$ 997	$ 560

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Real Estate (Tables)

12 Months Ended

Dec. 31, 2013

Real Estate [Abstract]

New Real Estate Investments [Table Text Block]

During the year ended December 31, 2013, we made the following real estate investments and commitments as described below (dollars in thousands):

Operator	Properties	Asset Class	Amount
Holiday Acquisition Holdings LLC	25	Senior Housing	$	492,959
Bickford Senior Living/RIDEA Structure	17	Senior Housing	137,459
National Healthcare Corporation	7	Skilled Nursing	37,417
Fundamental Long Term Care Holdings, LLC	2	Skilled Nursing	27,750
Chancellor Health Care, LLC	2	Senior Housing	17,000
Emeritus Senior Living	1	Senior Housing	15,300
Discovery Senior Living	1	Senior Housing	12,000
			$	739,885

Summary of NHC Percentage Rent [Table Text Block]

The following table summarizes the percentage rent received and recognized from NHC (in thousands):

	Year Ended December 31,
	2013		2012		2011
Current year	$	2,275	$	1,530	$	1,530
Prior year final certification1	746		997		560
Total percentage rent	$	3,021	$	2,527	$	2,090

¹ For purposes of the percentage rent calculation described in the Master Lease Agreement, NHC’s annual revenue by facility for a given year is certified to NHI by March 31st of the following year.

Business Acquisition, Pro Forma Information [Table Text Block]

For the 14 Care properties acquired in a business combination and discussed above, the unaudited pro forma revenue, net income and net income available to common stockholders of the combined entity is provided below had the acquisition date been January 1, 2012 (in thousands):

	2013		2012
Revenue	$	122,923	$	103,670
Net income	$	103,943	$	91,515
Net income available to common stockholders	$	103,869	$	91,397
Basic earnings per common share	$	3.66	$	3.29
Diluted earnings per common share	$	3.66	$	3.28

Future Minimum Lease Payments [Table Text Block]

Future Minimum Lease Payments

At December 31, 2013, the future minimum lease payments (excluding percentage rent) to be received by us under our operating leases with our tenants are as follows (in thousands):

2014	$	137,717
2015	135,704
2016	135,453
2017	134,419
2018	122,562
Thereafter	1,164,051
	$	1,829,906

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Significant Accounting Policies (Policy)

12 Months Ended

Dec. 31, 2013

Policy Text Block [Abstract]

Business Description and Basis of Presentation [Text Block]

The Company - National Health Investors, Inc. ("NHI" or the "Company"), a Maryland corporation incorporated and publicly listed in 1991, is a real estate investment trust (“REIT”) specializing in financing healthcare real estate by purchase and leaseback transactions, RIDEA transactions and mortgage loans. Our investments include senior housing (assisted living, memory care, independent living and senior living campuses), skilled nursing, medical office buildings and specialty hospitals. Revenue is derived primarily from rental income on leased properties, interest income on mortgage loans and income from investments in the securities of other healthcare REITs.

Consolidation, Policy

Principles of Consolidation - The accompanying consolidated financial statements include our accounts and the accounts of our wholly-owned subsidiaries and the joint venture entity over which we exercise control. All inter-company transactions and balances have been eliminated in consolidation. Net income is reduced by the portion of net income attributable to noncontrolling interests.

We apply Financial Accounting Standards Board ("FASB") guidance for our arrangements with variable interest entities ("VIEs") which requires us to identify entities for which control is achieved through means other than voting rights and to determine which business enterprise is the primary beneficiary of the VIE. A VIE is broadly defined as an entity with one or more of the following characteristics: (a) the total equity investment at risk is insufficient to finance the entity's activities without additional subordinated financial support; (b) as a group, the holders of the equity investment at risk lack (i) the ability to make decisions about the entity's activities through voting or similar rights, (ii) the obligation to absorb the expected losses of the entity, or (iii) the right to receive the expected residual returns of the entity; or (c) the equity investors have voting rights that are not proportional to their economic interests, and substantially all of the entity's activities either involve, or are conducted on behalf of, an investor that has disproportionately few voting rights. We consolidate investments in VIEs when we are determined to be the primary beneficiary of the VIE. We may change our assessment of a VIE due to events such as modifications of contractual arrangements that affect the characteristics or adequacy of the entity's equity investments at risk and the disposal of all or a portion of an interest held by the primary beneficiary.

We identify the primary beneficiary of a VIE as the enterprise that has both: (i) the power to direct the activities of the VIE that most significantly impact the entity's economic performance; and (ii) the obligation to absorb losses or the right to receive benefits of the VIE that could be significant to the entity. We perform this analysis on an ongoing basis. At December 31, 2013, we held an interest in one unconsolidated VIE, of which we were not the primary beneficiary.

We also apply FASB guidance related to investments in joint ventures based on the type of controlling rights held by the members' interests in limited liability companies that may preclude consolidation by the majority equity owner in certain circumstances in which the majority equity owner would otherwise consolidate the joint venture.

We structure our joint ventures to be compliant with the provisions of the REIT Investment Diversification and Empowerment Act of 2007 ("RIDEA") which permits NHI to receive rent payments through a triple-net lease between a property company and an operating company, and is designed to give NHI the opportunity to capture additional value on the improving performance of the operating company through distributions to a taxable REIT subsidiary ("TRS"). Accordingly, the TRS holds our equity interest in an unconsolidated operating company, which we do not control, and provides an organizational structure that will allow the TRS to engage in a broad range of activities and share in revenues that would otherwise be non-qualifying income under the REIT gross income tests.

Equity-Method Investment - We report our TRS' investment in an unconsolidated entity, over whose operating and financial policies we have the ability to exercise significant influence but not control, under the equity method of accounting. Under this method of accounting, our pro rata share of the entity's earnings or losses is included in our Consolidated Statements of Income. Additionally, we adjust our investment carrying amount to reflect our share of changes in an equity-method investee's capital resulting from its capital transactions.

The initial carrying value of our equity-method investment is based on the fair value of the net assets of the entity at the time we acquired our interest. We estimate fair values of the net assets of our equity-method investee based on discounted cash flow models. The inputs we use in these models are based on assumptions that we believe to be within a reasonable range of current market rates for the respective investments.

We evaluate our equity-method investment for impairment whenever events or changes in circumstances indicate that the carrying value of our investment may exceed the fair value. If it is determined that a decline in the fair value of our investment is not temporary, and if such reduced fair value is below its carrying value, an impairment is recorded. The determination of the fair value of our equity-method investments involve significant judgment. Our estimates consider all available evidence including the present value of the expected future cash flows discounted at market rates, general economic conditions and other relevant factors.

Noncontrolling Interest - We present the portion of any equity that we do not own in entities that we control (and thus consolidate) as noncontrolling interest and classify such interest as a component of consolidated equity, separate from total NHI stockholders' equity, in our Consolidated Balance Sheets. In addition, we include net income attributable to the noncontrolling interest in net income in our Consolidated Statements of Income

Use of Estimates, Policy

Use of Estimates - The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the U.S. requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Fair Value Of Financial Instruments

Fair Value Measurements - Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. A three-level fair value hierarchy is required to prioritize the inputs used to measure fair value. This hierarchy requires entities to maximize the use of observable inputs and minimize the use of unobservable inputs.

The three levels of inputs used to measure fair value are as follows:

Level 1 - Quoted prices in active markets for identical assets or liabilities.

Level 2 - Observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data.

Level 3 - Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. This includes certain pricing models, discounted cash flow methodologies and similar techniques that use significant unobservable inputs.

If the fair value measurement is based on inputs from different levels of the hierarchy, the level within which the entire fair value measurement falls is the lowest level input that is significant to the fair value measurement in its entirety. Our assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the asset or liability. When an event or circumstance alters our assessment of the observability and thus the appropriate classification of an input to a fair value measurement which we deem to be significant to the fair value measurement as a whole, we will transfer that fair value measurement to the appropriate level within the fair value hierarchy.

Property, Plant and Equipment, Impairment

Real Estate Properties - Real estate properties are recorded at cost or, if acquired through business combination, at fair value. Cost or fair value at the time of acquisition is allocated among land, buildings, tenant improvements, lease and other intangibles, and personal property. For properties acquired in transactions accounted for as asset purchases, the purchase price allocation is based on the relative fair values of the assets acquired. Cost includes capitalized interest during construction periods. We use the straight-line method of depreciation for buildings over their estimated useful lives of 40 years, and improvements over their estimated useful lives ranging from 3 to 25 years.

We evaluate the recoverability of the carrying value of our real estate properties on a property-by-property basis. On a quarterly basis, we review our properties for recoverability when events or circumstances, including significant physical changes in the property, significant adverse changes in general economic conditions and significant deteriorations of the underlying cash flows of the property, indicate that the carrying amount of the property may not be recoverable. The need to recognize an impairment charge is based on estimated undiscounted future cash flows from a property compared to the carrying value of that property. If recognition of an impairment charge is necessary, it is measured as the amount by which the carrying amount of the property exceeds the fair value of the property.

We have reclassified for all periods presented the operations of facilities meeting the accounting criteria as either being sold or held for sale as discontinued operations in the Consolidated Statements of Income. Long-lived assets classified as held for sale are reported separately in the Consolidated Balance Sheets. When assets previously classified as being held for sale no longer meet the accounting criteria for such classification, we reclassify those assets as held and used, measured at the lower of their carrying amount before the assets were classified as held for sale (adjusted in the period in which the decision not to sell was made for any depreciation expense that would have been recognized had the assets been continuously classified as held and used) or their fair value at the date of the subsequent decision not to sell. Results of operations of the facilities previously disclosed in our Consolidated Statements of Income as discontinued operations which no longer meet the accounting criteria as held for sale are reclassified into continuing operations for all periods presented. There is no change to reported net income for the prior periods as a result of this reclassification.

Mortgage Notes Receivable

Mortgage and Other Notes Receivable - Each quarter, we evaluate the carrying values of our notes receivable on an instrument-by-instrument basis for recoverability when events or circumstances, including the non-receipt of contractual principal and interest payments, significant deteriorations of the financial condition of the borrower and significant adverse changes in general economic conditions, indicate that the carrying amount of the note receivable may not be recoverable. If a note receivable becomes more than 30 days delinquent as to contractual principal or interest payments, the loan is classified as non-performing, and thereafter we recognize all amounts due when received. If necessary, an impairment is measured as the amount by which the carrying amount exceeds the discounted cash flows expected to be received under the note receivable or, if foreclosure is probable, the fair value of the collateral securing the note receivable.

Cash and Cash Equivalents, Policy [Policy Text Block]

Cash Equivalents - Cash equivalents consist of all highly liquid investments with an original maturity of three months or less.

Concentration Risk, Credit Risk, Policy [Policy Text Block]

Concentration of Credit Risks - Our credit risks primarily relate to cash and cash equivalents, investments in preferred stock and investments in mortgage and other notes receivable. Cash and cash equivalents are primarily held in bank accounts and overnight investments. We maintain our bank deposit accounts with large financial institutions in amounts that often exceed federally-insured limits. We have not experienced any losses in such accounts. Our mortgages and other notes receivable consist primarily of secured loans on health care facilities. Our investment in preferred stock is in another healthcare REIT.

Our financial instruments, principally our investments in preferred stock, marketable securities, and notes receivable, are subject to the possibility of loss of the carrying values as a result of either the failure of other parties to perform according to their contractual obligations or changes in market prices which may make the instruments less valuable. We obtain collateral in the form of mortgage liens and other protective rights and continually monitor these rights in order to reduce such possibilities of loss. We evaluate the need to provide for reserves for potential losses on our financial instruments based on management's periodic review of our portfolio on an instrument-by-instrument basis.

Marketable Securities, Policy [Policy Text Block]

Marketable Securities - Our investments in marketable securities are classified as available-for-sale securities. Unrealized gains and losses on available-for-sale securities are recorded in stockholders' equity. We evaluate our marketable securities for other-than-temporary impairments on at least a quarterly basis. Realized gains and losses from the sale of available-for-sale securities are determined on a specific-identification basis.

A decline in the market value of any available-for-sale or held-to-maturity security below cost that is deemed to be other-than-temporary results in an impairment to reduce the carrying amount to fair value. The impairment is charged to earnings and a new cost basis for the security is established. To determine whether an impairment is other-than-temporary, we consider whether we have the ability and intent to hold the investment until a market price recovery and consider whether evidence indicating the cost of the investment is recoverable outweighs evidence to the contrary. Evidence considered in this assessment includes the reasons for the impairment, the severity and duration of the impairment, changes in value subsequent to year-end and forecasted performance of the investment.

Deferred Charges, Policy [Policy Text Block]

Deferred Costs - Costs incurred to acquire debt are amortized by the effective interest method over the term of the related debt.

Revenue Recognition, Deferred Revenue [Policy Text Block]

Deferred Income - Deferred income primarily includes non-refundable loan and lease commitment fees received by us, which are amortized into income over the expected period of the related loan or lease. In the event that our financing commitment to a potential borrower or lessee expires, the related commitment fees are recognized into income immediately. Commitment fees may be charged based on the terms of the loan or lease agreements and the creditworthiness of the parties.

Revenue Recognition, Policy [Policy Text Block]

Rental Income - Base rental income is recognized using the straight-line method over the term of the lease. Under certain leases, we receive additional contingent rent, which is calculated on the increase in revenues of the lessee over a base year or base quarter. We recognize contingent rent annually or quarterly when, based on the actual revenues of the lessee, receipt of such income is probable since the target threshold has been achieved. Revenue from minimum lease payments under our leases is recognized on a straight-line basis to the extent that future lease payments are considered collectible. Lease payments that depend on a factor directly related to future use of the property, such as an increase in annual revenues over a base year, are considered to be contingent rentals and are excluded from minimum lease payments.

If rental income calculated on a straight-line basis exceeds the cash rent due under a lease, the difference is recorded as an increase to straight-line rent receivable in the Consolidated Balance Sheets and an increase in rental income in the Consolidated Statements of Income. If rental income on a straight-line basis is calculated to be less than cash received, there is a decrease in the same accounts.

We identify a lease as non-performing if a required payment is not received within 30 days of the date it is due. Our policy related to rental income on non-performing leased real estate properties is to recognize rental income in the period when the related cash is received. As of December 31, 2013, we had not identified any of our leases as non-performing.

Mortgage Interest Income - Mortgage interest income is recognized based on the interest rates and principal amounts outstanding on the mortgage notes receivable. Under certain mortgages, we receive additional contingent interest, which is calculated on the increase in the current year revenues of a borrower over a base year. We identify a mortgage loan as non-performing if a required payment is not received within 30 days of the date it is due. Our policy related to mortgage interest income on non-performing mortgage loans is to recognize mortgage interest income in the period when the cash is received. As of December 31, 2013, we had not identified any of our mortgages as non-performing.

Investment Income and Other - Investment income and other includes dividends when declared and interest when earned from investments in preferred stock and marketable securities of other healthcare REITs, interest on cash and cash equivalents when earned, and amortization of deferred income. Realized gains and losses on sales of marketable securities using the specific-identification method are included as a separate component of continuing operations in the Consolidated Statements of Income as investment and other gains.

Derivatives, Policy [Policy Text Block]

Derivatives - In the normal course of business, we are subject to risk from adverse fluctuations in interest rates. We have periodically chosen to manage this risk through the use of derivative financial instruments, primarily interest rate swaps. Counterparties to these contracts are major financial institutions. We are exposed to credit loss in the event of nonperformance by these counterparties. We do not use derivative instruments for trading or speculative purposes. Our objective in managing exposure to market risk is to limit the impact on cash flows.

To qualify for hedge accounting, our interest rate swaps must effectively reduce the risk exposure that they are designed to hedge. In addition, at inception of a qualifying cash flow hedging relationship, the underlying transaction or transactions must be, and are expected to remain, probable of occurring in accordance with our related assertions. All of our hedges are cash flow hedges.

We recognize all derivative instruments, including embedded derivatives required to be bifurcated, as assets or liabilities at their fair value in the Consolidated Balance Sheets. Changes in the fair value of derivative instruments that are not designated as hedges or that do not meet the criteria of hedge accounting are recognized in earnings. For derivatives designated in qualifying cash flow hedging relationships, the change in fair value of the effective portion of the derivatives is recognized in accumulated other comprehensive income (loss), whereas the change in fair value of the ineffective portion is recognized in earnings.

Income Tax, Policy [Policy Text Block]

Federal Income Taxes - We intend at all times to qualify as a REIT under Sections 856 through 860 of the Internal Revenue Code of 1986, as amended. Effective October 1, 2012, we began recording income tax expense or benefit with respect to one of our subsidiaries which is taxed as a Taxable REIT Subsidiary ("TRS") under provisions similar to those applicable to regular corporations. Aside from such income taxes which may be applicable to the taxable income in the TRS, we will not be subject to U.S. federal income tax, provided that we continue to qualify as a REIT and make distributions to stockholders equal to or in excess of our taxable income. Accordingly, no provision for federal income taxes has been made in the consolidated financial statements, except for the provision on the taxable income of the TRS which is included in franchise, excise and other taxes in the Consolidated Statements of Income. Our failure to continue to qualify under the applicable REIT qualification rules and regulations would have a material adverse impact on our financial position, results of operations and cash flows.

Earnings and profits, which determine the taxability of dividends to stockholders, differ from net income reported for financial reporting purposes due primarily to differences in the basis of assets, estimated useful lives used to compute depreciation expense, gains on sales of real estate, non-cash compensation expense and recognition of commitment fees.

Our tax returns filed for years beginning in 2010 are subject to examination by taxing authorities. We classify interest and penalties related to uncertain tax positions, if any, in our consolidated financial statements as a component of income tax expense.

Segment Reporting, Policy [Policy Text Block]

Segment Disclosures - We are in the business of owning and financing health care properties. We are managed as one segment, rather than multiple segments for internal purposes and for internal decision making.

New Accounting Pronouncements, Policy

New Accounting Pronouncements - In February 2013, the FASB issued ASU 2013-02, Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income, which amends FASB Topic 220, Comprehensive Income, which requires entities to provide information about amounts reclassified out of accumulated other comprehensive income by component. In addition, an entity is required to present, either on the face of the income statement or in the notes, significant amounts reclassified out of accumulated other comprehensive income by the respective line items of net income. ASU 2013-02 was effective prospectively for reporting periods beginning after December 15, 2012. The adoption of ASU 2013-02 did not have a material impact on our consolidated financial statements.

In July 2013 the FASB issued ASU 2013-10, Derivatives and Hedging, which amends Topic 815. ASU 2013-10 permits the Fed Funds Effective Swap Rate (OIS) to be used as a U.S. benchmark interest rate for hedge accounting purposes under Topic 815, in addition to U.S. Treasury and LIBOR. ASU 2013-10 also removes the restriction on using different benchmark rates for similar hedges. ASU 2013-10 is effective prospectively for qualifying new or redesignated hedging relationships entered into on or after July 17, 2013. The adoption of ASU 2013-10 did not have a material impact on our consolidated financial statements

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Commitments And Contingencies (Details) (USD $)	12 Months Ended								12 Months Ended			12 Months Ended			12 Months Ended									12 Months Ended
	Dec. 31, 2013 properties	Dec. 31, 2012	Dec. 31, 2011	Oct. 31, 2013 Chancellor Healthcare [Member] beds_or_units	Dec. 31, 2013 Fundamental Long Term Care Holdings [Member] properties	Apr. 30, 2013 Fundamental Long Term Care Holdings [Member] beds_or_units properties	Jan. 31, 2011 Fundamental Long Term Care Holdings [Member]	Oct. 31, 2011 Acquisition Legend Healthcare [Member] properties	Dec. 31, 2013 Acquisition Helix Healthcare [Member]	Mar. 31, 2010 Acquisition Helix Healthcare [Member]	Dec. 31, 2013 Bickford Commitment [Member] properties	Dec. 31, 2013 Bickford Development Properties [Member]	Dec. 31, 2013 Kentucky River Commitment [Member]	Oct. 31, 2011 Contingent Payment [Member] Acquisition Legend Healthcare [Member]	Dec. 31, 2013 Sante Partners Commitment [Member]	Dec. 31, 2013 Construction Loans [Member] beds_or_units	Dec. 31, 2013 Discovery Regency Pointe [Member]	Sep. 30, 2013 Discovery Regency Pointe [Member]	Dec. 31, 2013 Discovery Regency Pointe [Member] 1st Contingent Payment Amount [Member]	Jun. 30, 2013 SeniorTrust [Member]	Aug. 30, 2013 Elder Trust [Member] properties	Dec. 31, 2013 Bickford Senior Living [Member] properties	Jun. 28, 2013 Bickford Senior Living [Member]	Dec. 31, 2013 Bickford Senior Living [Member] Bickford Development Properties [Member]	Dec. 31, 2013 Kentucky River [Member]	Dec. 31, 2013 Legend Healthcare [Member]	Dec. 31, 2012 Legend Healthcare [Member]	Oct. 31, 2013 Development Commitment [Member] Chancellor Healthcare [Member] beds_or_units	Feb. 06, 2014 Letter of Credit [Member]
Letters of Credit Outstanding, Amount																													$ 2,785,000
Number of Real Estate Properties To Be Constructed											1
Maximum Commitment For All Active Development Projects											9,000,000	9,000,000																7,500,000
Construction and Development Costs												17,796,000												2,712,000	5,838,000
Lease Extension Period in Years	10 years 0 months 0 days
Significant development and lease transactions													8,000,000
Construction Commitment Period in Years													2
Lease Renewal Period In Years						5 years 0 months 0 days												5 years 0 months 0 days							5 years 0 months 0 days
Number of Real Estate Properties	157				3	2		4													7	29
Significant Acquisition, Cost, Receivable Cancelled																					13,741,000
Significant Acquisition, Cost, Cash						26,150,000															23,676,000
Number of years in initial lease term				7 years 0 months 0 days		10												15 years 0 months 0 days										15 years 0 months 0 days
Initial lease rate				8.00%		9.00%						9.00%																9.00%
Initial Lease Amount																		942,000				18,836,000	7,750,000
Significant acquisitions and disposals, acquisition costs or sale proceeds				9,000,000	18,500,000		4,500,000	55,278,000		12,500,000				5,478,000				12,000,000			37,417,000
Cash Paid In Settlement Of Contingent Purchase Consideration Liability		2,222,000																									2,222,000
Business Combination, Contingent Consideration, Liability						1,600,000																				3,256,000
Gain on purchase liability settlement	(3,256,000)	0	0																							3,256,000
Supplemental Construction Loan Commitment Draw																2,000,000
Construction of transitional rehabilitation center, number of beds				63		254										70		120										46
Capital improvements commitment				500,000											3,500,000
Lease Incentive Commitment Assessed As Not Probable															1,000,000
Conditional future payments related to purchase/leaseback transaction									1,000,000
Real estate purchase liabilities	2,600,000	4,256,000															2,500,000		750,000
Loans and Leases Receivable, Net Amount	$ 60,639,000	$ 84,250,000																		$ 15,000,000

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Real Estate Real Estate (Future Minimum Lease Payments) (Details) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2013
Future Minimum Lease Payments [Abstract]
Operating Leases, Future Minimum Payments Due, Next Twelve Months	$ 137,717
Operating Leases, Future Minimum Payments, Due in Two Years	135,704
Operating Leases, Future Minimum Payments, Due in Three Years	135,453
Operating Leases, Future Minimum Payments, Due in Four Years	134,419
Operating Leases, Future Minimum Payments, Due in Five Years	122,562
Operating Leases, Future Minimum Payments, Due Thereafter	1,164,051
Operating Leases, Future Minimum Payments Due	$ 1,829,906

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Equity-Method Investment And Other Assets (Tables)

12 Months Ended

Dec. 31, 2013

Equity Method Investments And Other Assets [Abstract]

Equity-Method Investment And Other Assets Disclosure [Table Text Block]

Our equity-method investment in OpCo and other assets consist of the following (in thousands):

	As of December 31,
	2013		2012
Equity-method investment in OpCo	$	9,494	$	8,353
Loan costs and prepaid expenses, net	7,596		1,838
Accounts receivable and other assets	2,272		1,815
Replacement reserve and tax escrows - Fannie Mae	706		—
Lease escrow deposits	22,775		—
Escrow deposit for tax deferred exchange	23,813		—
Escrow deposit for real estate purchase	—		166
	$	66,656	$	12,172

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Investments In Marketable Securities (Tables)

12 Months Ended

Dec. 31, 2013

Marketable Securities [Abstract]

Schedule Of Marketable Securities

Marketable securities consist of the following (in thousands):

	December 31, 2013				December 31, 2012
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Common stock of other healthcare REITs	$	4,088	$	12,650	$	4,088	$	12,884

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Consolidated Statement Of Stockholders' Equity (Parenthetical) (USD $)	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Statement of Stockholders' Equity [Abstract]
Common Stock, Dividends, Per Share, Declared	$ 2.90	$ 2.86	$ 2.715

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Debt Debt (Tables)

12 Months Ended

Dec. 31, 2013

Schedule of Debt [Abstract]

Schedule of Long-term Debt Instruments [Table Text Block]

Debt consists of the following (in thousands):

	December 31, 2013		December 31, 2012
Revolving credit facility - unsecured	$	167,000	$	64,000
Bank term loans - unsecured	370,000		120,000
Bank term loan - secured	—		19,250
Fannie Mae term loans - secured (including a premium of $1,756)	80,080		—
	$	617,080	$	203,250

Schedule of Interest Expense [Table Text Block]

The following table summarizes interest expense (in thousands):

	Year Ended December 31,
	2013		2012		2011
Interest expense	$	8,523	$	3,172	$	2,070
Amortization of loan costs	706		320		581
Change in fair value of interest rate swap agreement	—		—		1,197
Total interest expense	$	9,229	$	3,492	$	3,848

Schedule of Interest Rate Derivatives [Table Text Block]

December 31, 2013 (dollars in thousands):

Date Entered	Maturity Date	Fixed Rate	Rate Index	Notional Amount		Fair Value
May 2012	April 2019	3.29%	1-month LIBOR	$	40,000	$	544
June 2013	June 2020	3.86%	1-month LIBOR	$	80,000	$	431

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Significant Accounting Policies (Details)	12 Months Ended
	Dec. 31, 2013
Property, Plant and Equipment, Useful Life	40 years 0 months 0 days
Building [Member]
Property, Plant and Equipment, Useful Life	40 years
Minimum [Member] | Building Improvements [Member]
Property, Plant and Equipment, Useful Life	3 years
Maximum [Member] | Building Improvements [Member]
Property, Plant and Equipment, Useful Life	25 years

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Debt (Schedule of Interest Rate Derivatives) (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2013
Interest Rate Swap, Maturity Date April 2019 [Member]
Derivative [Line Items]
Derivative, Fixed Interest Rate	3.29%
Derivative, Description of Variable Rate Basis	1-month LIBOR
Derivative, Basis Spread on Variable Rate	1.75%
Derivative, Notional Amount	$ 40,000
Interest Rate Cash Flow Hedge Asset at Fair Value	544
Interest Rate Swap, Maturity Date June 2020 [Member]
Derivative [Line Items]
Derivative, Fixed Interest Rate	3.86%
Derivative, Description of Variable Rate Basis	1-month LIBOR
Derivative, Basis Spread on Variable Rate	1.75%
Derivative, Notional Amount	80,000
Interest Rate Cash Flow Hedge Liability at Fair Value	$ 431

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Selected Quarterly Financial Data (Unaudited) Selected Quarterly Financial Data (Unaudited) (Quarterly Financial information - 2013) (Details) (USD $) In Thousands, except Share data, unless otherwise specified	3 Months Ended								12 Months Ended
	Dec. 31, 2013	Sep. 30, 2013	Jun. 30, 2013	Mar. 31, 2013	Dec. 31, 2012	Sep. 30, 2012	Jun. 30, 2012	Mar. 31, 2012	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Selected Quarterly Financial Data [Abstract]
Net revenues	$ 32,790	$ 30,845	$ 27,089	$ 27,104	$ 25,870	$ 23,396	$ 20,916	$ 23,135	$ 117,828	$ 93,317	$ 83,739
Investment and other gains	3,267	3	14	22	4,759	46	35	37
Income from continuing operations attributable to common stockholders	24,114	22,035	18,300	14,050	27,171	13,282	15,859	16,355	78,499	72,667	69,817
Discontinued operations	3,661	20,709	1,621	1,693	13,934	1,068	1,068	1,994
Net income attributable to common stockholders	$ 27,775	$ 42,744	$ 19,921	$ 15,743	$ 41,105	$ 14,350	$ 16,927	$ 18,349	$ 106,183	$ 90,731	$ 81,132
Weighted average common shares outstanding:
Basic	29,831,176	27,876,176	27,876,176	27,876,176	27,848,002	27,830,311	27,792,834	27,776,104	28,362,398	27,811,813	27,719,096
Diluted	29,860,614	27,905,545	27,913,727	27,911,584	27,868,245	27,862,582	27,820,831	27,803,222	28,397,702	27,838,720	27,792,592
Basic:
Income from continuing operations attributable to common stockholders	$ 0.81	$ 0.79	$ 0.65	$ 0.50	$ 0.98	$ 0.48	$ 0.57	$ 0.59	$ 2.77	$ 2.61	$ 2.52
Discontinued operations	$ 0.12	$ 0.74	$ 0.06	$ 0.06	$ 0.50	$ 0.04	$ 0.04	$ 0.07	$ 0.97	$ 0.65	$ 0.41
Net income per common share attributable to common stockholders	$ 0.93	$ 1.53	$ 0.71	$ 0.56	$ 1.48	$ 0.52	$ 0.61	$ 0.66	$ 3.74	$ 3.26	$ 2.93
Diluted:
Income from continuing operations attributable to common stockholders	$ 0.81	$ 0.79	$ 0.65	$ 0.50	$ 0.97	$ 0.48	$ 0.57	$ 0.59	$ 2.77	$ 2.61	$ 2.51
Discontinued operations	$ 0.12	$ 0.74	$ 0.06	$ 0.06	$ 0.50	$ 0.04	$ 0.04	$ 0.07	$ 0.97	$ 0.65	$ 0.41
Net income per common share attributable to common stockholders	$ 0.93	$ 1.53	$ 0.71	$ 0.56	$ 1.47	$ 0.52	$ 0.61	$ 0.66	$ 3.74	$ 3.26	$ 2.92

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Consolidated Balance Sheets (USD $) In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Assets
Land	$ 91,770	$ 58,869
Buildings and improvements	1,320,567	636,994
Construction in progress	9,665	2,673
Real estate properties, gross	1,422,002	698,536
Less accumulated depreciation	(174,262)	(163,146)
Real estate properties, net	1,247,740	535,390
Mortgage and other notes receivable, net	60,639	84,250
Investment in preferred stock, at cost	38,132	38,132
Cash and cash equivalents	11,312	9,172
Marketable securities	12,650	12,884
Straight-line rent receivable	18,691	12,370
Equity-method investment and other assets	66,656	12,172
Assets held for sale, net	0	1,611
Total Assets	1,455,820	705,981
Liabilities and Equity
Debt	617,080	203,250
Real estate purchase liabilities	2,600	4,256
Accounts payable and accrued expenses	8,011	3,671
Dividends Payable	24,293	24,793
Lease deposit liabilities	22,775	0
Deferred income	3,901	1,964
Total Liabilities	678,660	237,934
Commitments and Contingencies
National Health Investors Stockholders' Equity:
Common stock, $.01 par value; 40,000,000 shares authorized; 33,051,176 and 27,857,217 shares issued and outstanding, respectively	330	279
Capital in excess of par value	753,635	467,843
Cumulative net income in excess (deficit) of dividends	3,043	(18,495)
Accumulated other comprehensive income	9,538	7,555
Total National Health Investors Stockholders' Equity	766,546	457,182
Noncontrolling interest	10,614	10,865
Total Equity	777,160	468,047
Total Liabilities and Equity	$ 1,455,820	$ 705,981

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Real Estate (Narrative) (Details) (USD $)	3 Months Ended								12 Months Ended						0 Months Ended	12 Months Ended									12 Months Ended				12 Months Ended					12 Months Ended							12 Months Ended															12 Months Ended			12 Months Ended
	Dec. 31, 2013 properties	Sep. 30, 2013	Jun. 30, 2013	Mar. 31, 2013	Dec. 31, 2012	Sep. 30, 2012	Jun. 30, 2012	Mar. 31, 2012	Dec. 31, 2013 properties	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2013 Weatherly Associates [Member]	Oct. 31, 2013 Weatherly Associates [Member]	Oct. 31, 2013 Chancellor Healthcare [Member] beds_or_units	Jun. 28, 2013 Care Investment Trust [Member] properties	Dec. 31, 2013 Fundamental Long Term Care Holdings [Member] properties	Dec. 31, 2011 Fundamental Long Term Care Holdings [Member]	Apr. 30, 2013 Fundamental Long Term Care Holdings [Member] beds_or_units properties	Jan. 31, 2011 Fundamental Long Term Care Holdings [Member]	Apr. 30, 2013 Fundamental Long Term Care Holdings [Member] Canton, TX [Member]	Jun. 28, 2013 Bickford Senior Living [Member] beds_or_units properties	Dec. 31, 2013 Holiday Acquisition Holdings [Member] properties	Dec. 31, 2012 Holiday Acquisition Holdings [Member]	Dec. 31, 2013 Holiday Acquisition Holdings [Member] Stated Purchase Price [Member]	Dec. 31, 2013 National Healthcare Corporation [Member] renewalOptions properties	Dec. 31, 2012 National Healthcare Corporation [Member]	Dec. 31, 2011 National Healthcare Corporation [Member]	Aug. 30, 2013 National Healthcare Corporation [Member]	Dec. 31, 2013 National Healthcare Corporation [Member] Assets Held-for-sale [Member]	Dec. 31, 2012 National Healthcare Corporation [Member] Assets Held-for-sale [Member]	Dec. 31, 2011 National Healthcare Corporation [Member] Assets Held-for-sale [Member]	Aug. 31, 2013 National Healthcare Corporation [Member] Assets Held-for-sale [Member] properties	Aug. 30, 2013 Elder Trust [Member] properties	Dec. 31, 2013 Bickford Senior Living [Member] properties	Dec. 31, 2012 Bickford Senior Living [Member]	Dec. 31, 2011 Bickford Senior Living [Member]	Jun. 28, 2013 Bickford Senior Living [Member]	Jul. 31, 2013 Halcyon Village [Member]	Dec. 31, 2013 Discovery Regency Pointe [Member]	Sep. 30, 2013 Discovery Regency Pointe [Member] renewalOptions	Dec. 31, 2013 Fundamental Long Term Care Holdings [Member] properties	Dec. 31, 2012 Fundamental Long Term Care Holdings [Member]	Dec. 31, 2011 Fundamental Long Term Care Holdings [Member]	Dec. 31, 2013 Weatherly Associates [Member]	Dec. 31, 2012 Weatherly Associates [Member]	Dec. 31, 2011 Weatherly Associates [Member]	Dec. 31, 2013 Senior Housing Community [Member] properties	Dec. 31, 2013 Independent Living Facility [Member] National Healthcare Corporation [Member] properties	Dec. 31, 2013 Skilled Nursing Facility [Member] properties	Dec. 31, 2013 Skilled Nursing Facility [Member] National Healthcare Corporation [Member] properties	Dec. 31, 2013 Medical Office Building [Member] properties	Dec. 31, 2013 Hospital [Member] properties	Jun. 30, 2013 Bickford Senior Living [Member] properties	Jun. 28, 2013 Bickford Senior Living [Member] beds_or_units	Dec. 31, 2013 Transaction Costs Capitalized [Member] Holiday Acquisition Holdings [Member]	Dec. 31, 2013 Bickford Development Properties [Member] properties	Dec. 31, 2013 Bickford Development Properties [Member] Bickford Senior Living [Member]	Dec. 31, 2013 Subleased Facilities [Member] Skilled Nursing Facility [Member] National Healthcare Corporation [Member] properties	Dec. 31, 2013 Prior To Sale Of Properties [Member] National Healthcare Corporation [Member]	Dec. 31, 2013 After Sale Of Properties [Member] National Healthcare Corporation [Member]	Aug. 30, 2013 Vacant Building [Member] Elder Trust [Member] properties	Dec. 31, 2013 Debt Instrument, Name, 4.5 Year Term Loan [Member]	Oct. 31, 2013 Development Commitment [Member] Chancellor Healthcare [Member] beds_or_units
Number of Real Estate Properties	157								157						14	3		2			3	25			42							6	7	29							2						91	3	61	39	2	3	17					4			1
Significant Acquisition, Cost, Receivable Cancelled																																	$ 13,741,000
Significant acquisitions and disposals, acquisition costs or sale proceeds													5,315,000	9,000,000		18,500,000			4,500,000					491,000,000									37,417,000					15,300,000		12,000,000															1,959,000
Land	91,770,000				58,869,000				91,770,000	58,869,000													21,700,000
Buildings and Improvements, Gross																						471,259,000
Business Combination, Pro Forma Information, Revenue of Acquiree since Acquisition Date, Actual									5,258,000
Business Combination, Pro Forma Information, Earnings or Loss of Acquiree since Acquisition Date, Actual									363,000
Real Estate, Assets Held For Sale, Sales Price																																21,000,000
Assets held for sale, net	0				1,611,000				0	1,611,000																				1,611,000
Gain on sale of real estate									22,258,000	11,966,000	3,348,000																		19,370,000
Asset Purchase Transaction Costs																													19,000
Minimum Annual Lease Income																									3,450,000																																		33,700,000	30,750,000
Lease Extension Period in Years									10 years 0 months 0 days																5 years 0 months 0 days
Lease Renewal Period In Years																		5 years 0 months 0 days							5 years 0 months 0 days															5 years 0 months 0 days
Significant Acquisition, Cost, Cash																		26,150,000															23,676,000
Business Combination, Contingent Consideration, Liability																		1,600,000
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment															124,549,000
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Financial Liabilities															80,528,000
Number of States in which Entity Operates	30								30													12
Nonportfolio Assets, Original Cost	882,000								882,000
Real Estate Investment Property, Portfolio Assets	1,421,120,000								1,421,120,000
Number of Lessees	23								23
Revenues	32,790,000	30,845,000	27,089,000	27,104,000	25,870,000	23,396,000	20,916,000	23,135,000	117,828,000	93,317,000	83,739,000
Operating Leases, Income Statement, Lease Revenue									106,029,000	81,482,000	72,608,000														34,756,000	33,056,000	32,619,000							14,586,000	5,164,000	4,235,000
Percentage of Continuing Revenue																									29.00%	35.00%	39.00%							12.00%	6.00%	5.00%
Percentage Rent Rate																									0.04
Purchase Option Amount																									49,000,000
Percentage rent											2,090,000														3,021,000	2,527,000
Business Acquisition, Cost of Acquired Entity, Cash Paid															44,021,000
Number of Units in Real Estate Property														63				254			107																	76		120														750									46
Number of years in initial lease term														7 years 0 months 0 days	5 years 0 months 0 days			10				17 years 0 months 0 days						15 years 0 months 0 days										15		15 years 0 months 0 days																							15 years 0 months 0 days
Initial Lease Amount															9,750,000						9,086,000	31,915,000			350,000									18,836,000			7,750,000	1,140,000		942,000
Development Projects, Number Completed During Period																																																								2
Lease Escalator Rate, From Lease Year 1 to Lease Year 3																						4.50%
Lease Escalator Rate, After Lease Year 3																						3.50%
Term Loans, Outstanding Balance																																																														250,000,000
Stock Issued During Period, Shares, New Issues									5,175,000
Proceeds from equity offering, net									282,542,000	0	0
Equity Issuance Costs									12,500,000
Real estate purchase liabilities	2,600,000				4,256,000				2,600,000	4,256,000																													2,500,000
Asset Purchase Portion Of Significant Acquisition																					12,910,000
Initial lease rate														8.00%				9.00%																																						9.00%							9.00%
Capital Improvements Commitment														500,000
Number of additional lease renewal options																		3							2															3
Business Acquisition, Percentage of Voting Interests Acquired															100.00%					100.00%
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Land															4,360,000					420,000
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Buildings															120,189,000					11,659,000
Business Acquisition, Purchase Price Allocation, Equipment																				671,000
Business Acquisition, Cost of Acquired Entity, Transaction Costs															63,000					147,000
Joint Venture Contributed Properties Ownership Interest Retained																																		85.00%
Joint Venture Contributed Properties Ownership Interest Surrendered																																		15.00%
Number Of Development Projects Active																																																								1
Joint Venture Operating Company Ownership Interest Received																																		85.00%
Maximum Commitment For All Active Development Projects																																																								9,000,000							7,500,000
Construction and Development Costs																																																								17,796,000	2,712,000
Disposal Group, Including Discontinued Operation, Revenue																													2,294,000	3,368,000	3,377,000										3,316,000	3,231,000	3,067,000	353,000	403,000	403,000
Carrying Value Of Assets Sold												$ 3,591,000				$ 17,068,000	$ 4,039,000

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Consolidated Statements Of Cash Flows (USD $)	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Cash flows from operating activities:
Net income	$ 107,182,000	$ 90,898,000	$ 81,132,000
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation	20,658,000	16,981,000	11,992,000
Amortization	247,000	320,000	581,000
Straight-line rental income	(6,560,000)	(3,664,000)	(3,778,000)
Non-cash interest income on construction loan	0	0	(1,082,000)
Write-off of debt issuance costs	416,000	0	0
Loan and realty losses (recoveries), net	1,976,000	(2,195,000)	(99,000)
Gain on sale of real estate	(22,258,000)	(11,966,000)	(3,348,000)
Gain on payoff of mortgage note	0	(4,605,000)	0
Gain on purchase liability settlement	(3,256,000)	0	0
Net realized gains on sales of marketable securities	0	(30,000)	(9,899,000)
Share-based compensation	2,339,000	2,168,000	3,087,000
Change in fair value of interest rate swap agreement	0	0	1,197,000
Income from equity-method investee	(324,000)	(45,000)	0
Change in operating assets and liabilities:
Equity-method investment and other assets	(659,000)	(745,000)	(3,236,000)
Accounts payable and accrued expenses	2,495,000	(512,000)	95,000
Deferred income	1,937,000	(339,000)	212,000
Net cash provided by operating activities	104,193,000	86,266,000	76,854,000
Cash flows from investing activities:
Investment in mortgage and other notes receivable	(11,082,000)	(16,241,000)	(6,566,000)
Collection of mortgage and other notes receivable	18,976,000	17,463,000	4,540,000
Investment in real estate	(635,971,000)	(110,601,000)	(75,806,000)
Investment in real estate development	(11,926,000)	0	0
Investment in renovations of existing real estate	(6,773,000)	0	0
Receipt of earnest money deposit	0	0	525,000
Investment in unconsolidated entity	0	(8,309,000)	0
Real estate purchase deposit	0	(5,222,000)	0
Proceeds from disposition of real estate properties	20,952,000	22,975,000	8,971,000
Proceeds from sales of marketable securities	0	125,000	12,862,000
Net cash used in investing activities	(625,824,000)	(99,810,000)	(55,474,000)
Cash flows from financing activities:
Net change in borrowings under revolving credit facilities	103,000,000	(33,300,000)	59,535,000
Borrowings on term loan	330,000,000	120,000,000	50,000,000
Payments of term loans	(99,655,000)	0	(50,000,000)
Debt issuance costs	(5,867,000)	(766,000)	0
Proceeds from equity offering, net	282,542,000	0	0
Proceeds from exercise of stock options	(146,000)	2,000	(200,000)
Distributions to noncontrolling interest	(1,250,000)	(177,000)	0
Dividends paid to stockholders	(85,145,000)	(78,925,000)	(67,893,000)
Net cash provided by (used in) financing activities	523,771,000	6,830,000	(8,158,000)
(Decrease) increase in cash and cash equivalents	2,140,000	(6,714,000)	13,222,000
Cash and cash equivalents, beginning of year	9,172,000	15,886,000	2,664,000
Cash and cash equivalents, end of year	11,312,000	9,172,000	15,886,000
Supplemental schedule of non-cash investing and financing activities:
Settlement of mortgage note by real estate acquisition	13,741,000	0	0
Assumption of debt in real estate acquisition	80,528,000	19,250,000	0
Assignment of net assets in equity-method investee	$ 817,000

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Share-Based Compensation (Schedule Of Stock Option Activity) (Details) (USD $)	12 Months Ended			12 Months Ended
	Dec. 31, 2013	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2013 2005 Plan [Member]	Dec. 31, 2012 2005 Plan [Member]	Dec. 31, 2011 2005 Plan [Member]	Dec. 31, 2013 2012 Plan [Member]	Dec. 31, 2012 1997 Plan [Member]	Dec. 31, 2011 1997 Plan [Member]	Dec. 31, 2013 Grant Date 2-22-2011 [Member]	Dec. 31, 2013 Grant Date 2-25-2011 [Member]	Dec. 31, 2013 Grant Date 2-21-2012 [Member]	Dec. 31, 2013 Grant Date 2-25-2013 [Member]
Options outstanding, January 1	211,675	509,422	384,507
Options granted					340,000	340,000	360,000
Options exercised				(55,001)	(618,481)	(183,417)		(19,266)	(15,000)
Options forfeited						(16,668)
Options outstanding, December 31	516,674	509,422	384,507							15,000	33,336	108,338	360,000
Options exercisable, December 31	323,330
Weighted Average Exercise Price, Options outstanding, January 1	$ 46.60	$ 42.03	$ 33.24
Weighted Average Exercise Price, Options granted					$ 47.52	$ 46.11	$ 64.49
Weighted Average Exercise Price, Options exercised				$ 45.31	$ 43.63	$ 32.69		$ 33.26	$ 23.79
Weighted Average Exercise Price, Options forfeited						$ 41.52
Weighted Average Exercise Price, Options outstanding, December 31	$ 59.20	$ 42.03	$ 33.24							$ 45.58	$ 46.22	$ 47.52	$ 64.49
Weighted Average Exercise Price, Options exercisable, December 31	$ 59.19
Weighted Average Remaining Contractual Life (Years), Options outstanding, December 31	3 years 9 months 6 days									2 years 1 month 23 days	2 years 1 month 26 days	3 years 1 month 23 days	4 years 1 month 27 days
Weighted Average Remaining Contractual Life (Years), Options exercisable, December 31	3 years 8 months 17 days
Aggregate Intrinsic Value, Options outstanding, December 31	$ 1,417,000
Aggregate Intrinsic Value, Options exercisable, December 31	$ 901,848

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Discontinued Operations (Tables)

12 Months Ended

Dec. 31, 2013

Discontinued Operations and Disposal Groups [Abstract]

Schedule Of Income From Discontinued Operations

Income from discontinued operations is summarized below (in thousands):

	Year Ended December 31,
	2013		2012		2011
Revenues:
Rental income	$	5,962	$	8,304	$	8,505
Other income	21		3		4
Expenses:
Depreciation	557		2,209		542
Operating income	5,426		6,098		7,967
Gain on sale of real estate	22,258		11,966		3,348
Total discontinued operations	$	27,684	$	18,064	$	11,315
Weighted average common shares outstanding:
Basic	28,362,398		27,811,813		27,719,096
Diluted	28,397,702		27,838,720		27,792,592
Discontinued operations income per share:
Basic	$	.97	$	.65	$	.41
Diluted	$	.97	$	.65	$	.41

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Earnings and Dividends Per Share (Summary Of Calculation Of Basic And Diluted Earnings Per Share) (Details) (USD $) In Thousands, except Share data, unless otherwise specified	3 Months Ended								12 Months Ended
	Dec. 31, 2013	Sep. 30, 2013	Jun. 30, 2013	Mar. 31, 2013	Dec. 31, 2012	Sep. 30, 2012	Jun. 30, 2012	Mar. 31, 2012	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Earnings Per Share [Abstract]
Income from continuing operations attributable to common stockholders	$ 24,114	$ 22,035	$ 18,300	$ 14,050	$ 27,171	$ 13,282	$ 15,859	$ 16,355	$ 78,499	$ 72,667	$ 69,817
Income from discontinued operations									27,684	18,064	11,315
Net income attributable to common stockholders	$ 27,775	$ 42,744	$ 19,921	$ 15,743	$ 41,105	$ 14,350	$ 16,927	$ 18,349	$ 106,183	$ 90,731	$ 81,132
Weighted Average Number of Shares Outstanding, Basic	29,831,176	27,876,176	27,876,176	27,876,176	27,848,002	27,830,311	27,792,834	27,776,104	28,362,398	27,811,813	27,719,096
Income from continuing operations per common share, basic	$ 0.81	$ 0.79	$ 0.65	$ 0.50	$ 0.98	$ 0.48	$ 0.57	$ 0.59	$ 2.77	$ 2.61	$ 2.52
Discontinued operations per common share, basic	$ 0.12	$ 0.74	$ 0.06	$ 0.06	$ 0.50	$ 0.04	$ 0.04	$ 0.07	$ 0.97	$ 0.65	$ 0.41
Net income per common share attributable to common stockholders	$ 0.93	$ 1.53	$ 0.71	$ 0.56	$ 1.48	$ 0.52	$ 0.61	$ 0.66	$ 3.74	$ 3.26	$ 2.93
Weighted average common shares outstanding, diluted									28,362,398	27,811,813	27,719,096
Stock options, diluted									35,304	26,907	73,496
Average dilutive common shares outstanding	29,860,614	27,905,545	27,913,727	27,911,584	27,868,245	27,862,582	27,820,831	27,803,222	28,397,702	27,838,720	27,792,592
Income from continuing operations per common share	$ 0.81	$ 0.79	$ 0.65	$ 0.50	$ 0.97	$ 0.48	$ 0.57	$ 0.59	$ 2.77	$ 2.61	$ 2.51
Discontinued operations per common share	$ 0.12	$ 0.74	$ 0.06	$ 0.06	$ 0.50	$ 0.04	$ 0.04	$ 0.07	$ 0.97	$ 0.65	$ 0.41
Net income per common share attributable to common stockholders	$ 0.93	$ 1.53	$ 0.71	$ 0.56	$ 1.47	$ 0.52	$ 0.61	$ 0.66	$ 3.74	$ 3.26	$ 2.92
Stock options with an exercise price in excess of the market price for our common shares									23,883	0	16,758
Common Stock, Dividends, Per Share, Declared, Regular									$ 2.90	$ 2.64	$ 2.495
Special dividends declared per common share1									$ 0	$ 0.22	$ 0.22

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Fair Value Of Financial Instruments

12 Months Ended

Dec. 31, 2013

Fair Value Disclosures [Abstract]

Fair Value Of Financial Instruments

FAIR VALUE OF FINANCIAL INSTRUMENTS

Our financial assets and liabilities measured at fair value (based on the hierarchy of the three levels of inputs described in Note 1) on a recurring basis include marketable securities, derivative financial instruments and contingent consideration arrangements. Marketable securities consist of common stock of other healthcare REITs. Derivative financial instruments include our interest rate swap agreements. Contingent consideration arrangements relate to certain provisions of recent real estate purchase agreements involving both business combinations.

Marketable securities. We utilize quoted prices in active markets to measure debt and equity securities; these items are classified as Level 1 in the hierarchy and include the common and preferred stock of other healthcare REITs.

Derivative financial instruments. Derivative financial instruments are valued in the market using discounted cash flow techniques. These techniques incorporate Level 1 and Level 2 inputs. The market inputs are utilized in the discounted cash flow calculation considering the instrument's term, notional amount, discount rate and credit risk. Significant inputs to the derivative valuation model for interest rate swaps are observable in active markets and are classified as Level 2 in the hierarchy.

Contingent consideration. Contingent consideration arrangements are classified as Level 3 and are valued using unobservable inputs about the nature of the contingent arrangement and the counter-party to the arrangement, as well as our assumptions about the probability of full settlement of the contingency.

Assets and liabilities measured at fair value on a recurring basis are as follows (in thousands):

		Fair Value Measurement
	Balance Sheet Classification	December 31, 2013		December 31, 2012
Level 1
Common stock of other healthcare REITs	Marketable securities	$	12,650	$	12,884
Level 2
Interest rate swap asset	Other assets	$	975	$	—
Interest rate swap liability	Accrued expenses	$	—	$	1,241
Level 3
Contingent consideration	Real estate purchase liabilities	$	—	$	3,256

The following table presents a reconciliation of Level 3 liabilities measured at fair value on a recurring basis for the years ended December 31, 2013 and 2012(in thousands):

	Fair Value Beginning of Period		Transfers Into Level 3		Realized Gains and (Losses)		Purchases, Issuances and Settlements			Fair Value at End of Period		Total Period Losses Included in Earnings Attributable to the Change in Unrealized Losses Relating to Assets Held at End of Year
2013
Contingent consideration	$	3,256	$	—	$	—	$	(3,256	)	$	—	$	—
2012
Contingent consideration	$	5,478	$	—	$	—	$	(2,222	)	$	3,256	$	—

Carrying values and fair values of financial instruments that are not carried at fair value at December 31, 2013 and December 31, 2012 in the Consolidated Balance Sheets are as follows (in thousands):

	Carrying Amount				Fair Value Measurement
	2013		2012		2013		2012
Level 2
Variable rate debt	$	537,000	$	203,250	$	537,000	$	203,250
Fixed rate debt	$	80,080	$	—	$	79,365	$	—
Level 3
Mortgage and other notes receivable	$	60,639	$	84,250	$	67,201	$	93,835

The fair value of mortgage and other notes receivable is based on credit risk and discount rates that are not observable in the marketplace and therefore represents a Level 3 measurement.

Fixed rate debt. Fixed rate debt is classified as Level 2 and its value is based on quoted prices for similar instruments or calculated utilizing model derived valuations in which significant inputs are observable in active markets.

Carrying amounts of cash and cash equivalents, accounts receivable and accounts payable approximate fair value due to their short-term nature. The fair value of our borrowings under our credit facility are reasonably estimated at their carrying value at December 31, 2013 and December 31, 2012, due to the predominance of floating interest rates, which generally reflect market conditions.

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Earnings and Dividends Per Share (Tables)

12 Months Ended

Dec. 31, 2013

Earnings Per Share [Abstract]

Schedule of Earnings Per Share, Basic and Diluted

The following table summarizes the average number of common shares and the net income used in the calculation of basic and diluted earnings per common share (in thousands, except share and per share amounts):

	Year Ended December 31,
	2013		2012		2011
Income from continuing operations attributable to common stockholders	$	78,499	$	72,667	$	69,817
Discontinued operations	27,684		18,064		11,315
Net income attributable to common stockholders	$	106,183	$	90,731	$	81,132
BASIC:
Weighted average common shares outstanding	28,362,398		27,811,813		27,719,096
Income from continuing operations per common share	$	2.77	$	2.61	$	2.52
Discontinued operations per common share	.97		.65		.41
Net income per common share	$	3.74	$	3.26	$	2.93
DILUTED:
Weighted average common shares outstanding	28,362,398		27,811,813		27,719,096
Stock options and restricted shares	35,304		26,907		73,496
Average dilutive common shares outstanding	28,397,702		27,838,720		27,792,592
Income from continuing operations per common share	$	2.77	$	2.61	$	2.51
Discontinued operations per common share	.97		.65		.41
Net income per common share	$	3.74	$	3.26	$	2.92
Incremental shares excluded since anti-dilutive:
Stock options with an exercise price in excess of the average market price for our common shares	23,883		—		16,758
Regular dividends declared per common share	$	2.90	$	2.64	$	2.495
Special dividends declared per common share1	$	—	$	.22	$	.22
1Special dividends are paid in January following the year in which they are declared

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Selected Quarterly Financial Data (Unaudited) Selected Quarterly Financial Data (Unaudited)

12 Months Ended

Dec. 31, 2013

Selected Quarterly Financial Data [Abstract]

Quarterly Financial Information [Text Block]

SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED)

The following table sets forth selected quarterly financial data for the two most recent fiscal years (in thousands, except per share amounts).

2013	Quarter Ended
	March 31,		June 30,		September 30,		December 31,
Net revenues	$	27,104	$	27,089	$	30,845	$	32,790
Investment and other gains	22		14		3		3,267
Income from continuing operations attributable to common stockholders	14,050		18,300		22,035		24,114
Discontinued operations	1,693		1,621		20,709		3,661
Net income attributable to common stockholders	$	15,743	$	19,921	$	42,744	$	27,775
Weighted average common shares outstanding:
Basic	27,876,176		27,876,176		27,876,176		29,831,176
Diluted	27,911,584		27,913,727		27,905,545		29,860,614
Earnings per common share:
Basic:
Income from continuing operations attributable to common stockholders	$	.50	$	.65	$	.79	$	.81
Discontinued operations	.06		.06		.74		.12
Net income attributable to common stockholders	$	.56	$	.71	$	1.53	$	.93
Diluted:
Income from continuing operations attributable to common stockholders	$	.50	$	.65	$	.79	$	.81
Discontinued operations	.06		.06		.74		.12
Net income attributable to common stockholders	$	.56	$	.71	$	1.53	$	.93

2012	Quarter Ended
	March 31,		June 30,		September 30,		December 31,
Net revenues	$	23,135	$	20,916	$	23,396	$	25,870
Investment and other gains	37		35		46		4,759
Income from continuing operations attributable to common stockholders	16,355		15,859		13,282		27,171
Discontinued operations	1,994		1,068		1,068		13,934
Net income attributable to common stockholders	$	18,349	$	16,927	$	14,350	$	41,105
Weighted average common shares outstanding:
Basic	27,776,104		27,792,834		27,830,311		27,848,002
Diluted	27,803,222		27,820,831		27,862,582		27,868,245
Earnings per common share:
Basic:
Income from continuing operations attributable to common stockholders	$	.59	$	.57	$	.48	$	.98
Discontinued operations	.07		.04		.04		.50
Net income attributable to common stockholders	$	.66	$	.61	$	.52	$	1.48
Diluted:
Income from continuing operations attributable to common stockholders	$	.59	$	.57	$	.48	$	.97
Discontinued operations	.07		.04		.04		.50
Net income attributable to common stockholders	$	.66	$	.61	$	.52	$	1.47

Certain quarterly financial information shown above differs from amounts previously reported in the Forms 10-Q and Form 10-K for those periods due to reclassifications to retrospectively reflect the dispositions or planned dispositions of certain facilities as discontinued operations for all periods presented.

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Fair Value Of Financial Instruments (Assets Measured At Fair Value On A Recurring Basis) (Details) (USD $)	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Loans and Leases Receivable, Net Amount	$ 60,639,000	$ 84,250,000
Fair Value, Inputs, Level 1 [Member]
Available-for-sale Securities	12,650,000	12,884,000
Fair Value, Inputs, Level 2 [Member]
Cash Flow Hedge Derivative Instrument Assets at Fair Value	975,000	0
Cash Flow Hedge Derivative Instrument Liabilities at Fair Value	0	1,241,000
Fair Value, Inputs, Level 3 [Member]
Business Combination, Contingent Consideration, Liability	$ 0	$ 3,256,000	$ 5,478,000

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Consolidated Statement Of Equity (USD $) In Thousands, except Share data, unless otherwise specified	Total	Common Stock [Member]	Additional Paid-in Capital [Member]	Cumulative Dividends In Excess Of Net Income [Member]	Accumulated Other Comprehensive Income (Loss) [Member]	Parent [Member]	Noncontrolling Interest [Member]
Balance, value at Dec. 31, 2010	$ 442,500	$ 277	$ 462,392	$ (35,499)	$ 15,330	$ 442,500	$ 0
Balance, shares at Dec. 31, 2010		27,689,392
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income attributable to common stockholders	81,132			81,132	(8,149)	72,983	0
Comprehensive income	72,983
Shares issued on stock options exercised, shares		61,816
Shares issued on stock options exercised, value	(200)	(1)	(199)			(200)
Share-based Compensation			3,087
Share-based compensation	3,087					3,087
Dividends declared, $1.43 per share	(75,285)			(75,285)		(75,285)
Balance, value at Dec. 31, 2011	443,485	278	465,678	(29,652)	7,181	443,485	0
Balance, shares at Dec. 31, 2011		27,751,208
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income attributable to common stockholders	90,731			90,731	374	91,105	167
Comprehensive income	91,272
Noncontrolling Interest, Increase from Subsidiary Equity Issuance	10,964						10,964
Distributions to noncontrolling interest	(266)						(266)
Shares issued on stock options exercised, shares		106,009
Shares issued on stock options exercised, value	(2)	(1)	(3)			(2)
Share-based Compensation			2,168
Share-based compensation	2,168					2,168
Dividends declared, $1.43 per share	(79,574)			(79,574)		(79,574)
Balance, value at Dec. 31, 2012	468,047
Balance, shares at Dec. 31, 2012	27,857,217
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income attributable to common stockholders	106,183			106,183	1,983	108,166	999
Comprehensive income	109,165
Distributions to noncontrolling interest	(1,250)						(1,250)
Stock Issued During Period, Shares, New Issues	5,175,000	5,175,000
Stock Issued During Period, Value, New Issues	282,541	51	282,490			282,541
Shares issued on stock options exercised, shares		18,959
Shares issued on stock options exercised, value	(146)	0	(146)			(146)
Share-based Compensation			2,339
Share-based compensation	2,339					2,339
Assignment of net assets in equity-method investee	817		817			817
Dividends declared, $1.43 per share	(84,645)			(84,645)		(84,645)
Balance, value at Dec. 31, 2013	$ 777,160	$ 330	$ 753,635	$ 3,043	$ 9,538	$ 766,546	$ 10,614
Balance, shares at Dec. 31, 2013	33,051,176	33,051,176

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Consolidated Balance Sheets (Parenthetical) (USD $)	Dec. 31, 2013	Dec. 31, 2012
Statement of Financial Position [Abstract]
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	40,000,000	40,000,000
Common stock, shares issued	33,051,176	27,857,217
Common stock, shares outstanding	33,051,176	27,857,217

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Investment And Other Gains Investment And Other Gains

12 Months Ended

Dec. 31, 2013

Investment And Other Gains [Abstract]

Investment And Other Gains [Text Block]

INVESTMENT AND OTHER GAINS

The following table summarizes our investment and other gains (in thousands):

	Year Ended December 31,
	2013		2012		2011
Gain on payoff of mortgage note receivable	$	—	$	4,605	$	—
Gains on sales of marketable securities	—		30		9,899
Gain on purchase liability settlement	3,256		—		—
Other gains	50		242		362
	$	3,306	$	4,877	$	10,261

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Document And Entity Information (USD $) In Thousands, except Share data, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Feb. 14, 2014	Jun. 30, 2013
Document And Entity Information [Abstract]
Document Type	10-K
Amendment Flag	false
Document Period End Date	Dec. 31, 2013
Document Fiscal Year Focus	2013
Document Fiscal Period Focus	FY
Entity Registrant Name	NATIONAL HEALTH INVESTORS INC
Entity Central Index Key	0000877860
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		33,051,176
Entity Current Reporting Status	Yes
Entity Public Float:			$ 1,570,271
Entity Voluntary Filers:	No
Entity Well-known Seasoned Issuer:	Yes

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Share-Based Compensation

12 Months Ended

Dec. 31, 2013

Deferred Compensation Arrangements [Abstract]

Share-Based Compensation

SHARE-BASED COMPENSATION

We recognize share-based compensation for all stock options granted over the requisite service period using the fair value of these grants as estimated at the date of grant using the Black-Scholes pricing model, and all restricted stock granted over the requisite service period using the market value of our publicly-traded common stock on the date of grant.

Share-Based Compensation Plans

The Compensation Committee of the Board of Directors ("the Committee") has the authority to select the participants to be granted options; to designate whether the option granted is an incentive stock option ("ISO"), a non-qualified option, or a stock appreciation right; to establish the number of shares of common stock that may be issued upon exercise of the option; to establish the vesting provision for any award; and to establish the term any award may be outstanding. The exercise price of any ISO’s granted will not be less than 100% of the fair market value of the shares of common stock on the date granted and the term of an ISO may not be more than ten years. The exercise price of any non-qualified options granted will not be less than 100% of the fair market value of the shares of common stock on the date granted unless so determined by the Committee.

In May 2012, our stockholders approved the 2012 Stock Incentive Plan ("the 2012 Plan") pursuant to which 1,500,000 shares of our common stock were made available to grant as share-based payments to employees, officers, directors or consultants. As of December 31, 2013, there were 1,140,000 shares available for future grants under the 2012 Plan. The individual restricted stock and option grant awards vest over periods up to five years. The term of the options under the 2012 Plan is up to five years from the date of grant.

In May 2005, our stockholders approved the NHI 2005 Stock Option Plan ("the 2005 Plan") pursuant to which 1,500,000 shares of our common stock were made available to grant as share-based payments to employees, officers, directors or consultants. As of December 31, 2013, there were 20,635 shares available for future grants under the 2005 Plan. The individual restricted stock and option grant awards vest over periods up to ten years. The term of the options outstanding under the 2005 Plan is up to ten years from the date of grant.

The NHI 1997 Stock Option Plan (“the 1997 Plan”) provides for the granting of options to key employees and directors of NHI to purchase shares of common stock at a price no less than the market value of the stock on the date the option is granted. As of December 31, 2013, no shares were available for future grants under this plan. The term of the options outstanding under the 1997 Plan is five years from the date of the grant.

Compensation expense is recognized only for the awards that ultimately vest. Accordingly, forfeitures that were not expected may result in the reversal of previously recorded compensation expense. The compensation expense reported for the year endedDecember 31, 2013 was $2,339,000, all of which related to outstanding stock options, as compared to $2,168,000 for the year endedDecember 31, 2012, consisting of $2,167,000 for stock options and $1,000 for restricted stock and is included in general and administrative expense in the Consolidated Statements of Income.

Determining Fair Value of Option Awards

The fair value of each option award was estimated on the grant date using the Black-Scholes option valuation model with the weighted average assumptions indicated in the following table. Each grant is valued as a single award with an expected term based upon expected employee and termination behavior. Compensation cost is recognized on the graded vesting method over the requisite service period for each separately vesting tranche of the award as though the award were, in substance, multiple awards. The expected volatility is derived using daily historical data for periods preceding the date of grant. The risk-free interest rate is the approximate yield on the United States Treasury Strips having a life equal to the expected option life on the date of grant. The expected life is an estimate of the number of years an option will be held before it is exercised.

Stock Options

The weighted average fair value per share of options granted was $6.41, $6.36 and $9.91 for 2013, 2012 and 2011, respectively. The fair value of each grant is estimated on the date of grant using the Black-Scholes option-pricing model with the following weighted average assumptions:

	2013	2012	2011
Dividend yield	4.5%	6.0%	5.9%
Expected volatility	23.8%	32.0%	4.6%
Expected lives	2.8 years	3.9 years	3.9 years
Risk-free interest rate	0.35%	0.32%	1.11%

Stock Option Activity

The following tables summarize our outstanding stock options:

				Weighted Average
	Number		Weighted Average	Remaining	Aggregate
	of Shares		Exercise Price	Contractual Life (Years)	Intrinsic Value
Outstanding December 31, 2010	384,507		$33.24
Options granted under 2005 Plan	340,000		$46.11
Options exercised under 1997 Plan	(15,000	)	$23.79
Options exercised under 2005 Plan	(183,417	)	$32.69
Options forfeited under 2005 Plan	(16,668	)	$41.52
Outstanding December 31, 2011	509,422		$42.03
Options granted under 2005 Plan	340,000		$47.52
Options exercised under 1997 Plan	(19,266	)	$33.26
Options exercised under 2005 Plan	(618,481	)	$43.63
Outstanding December 31, 2012	211,675		$46.60
Options granted under 2005 Plan	360,000		$64.49
Options exercised under 2005 Plan	(55,001	)	$45.31
Outstanding December 31, 2013	516,674		$59.20	3.77	$	1,417,000
Exercisable December 31, 2013	323,330		$59.19	3.71	$	901,848

				Remaining
Grant	Number	Exercise		Contractual
Date	of Shares	Price		Life in Years
2/22/2011	15,000	$	45.58	2.15
2/25/2011	33,336	$	46.22	2.15
2/21/2012	108,338	$	47.52	3.15
2/25/2013	360,000	$	64.49	4.16
Outstanding December 31, 2013	516,674

The weighted average remaining contractual life of all options outstanding at December 31, 2013 is 3.8 years. Including outstanding stock options, our stockholders have authorized an additional 1,677,309 shares of common stock that may be issued under the share-based payments plans.

The following table summarizes our outstanding non-vested stock options:

	Number of Shares		Weighted Average Grant Date Fair Value
Non-vested December 31, 2012	176,675		$8.09
Options granted under 2012 Plan	360,000		$6.41
Options vested under 2005 Plan	(343,331	)	$6.97
Non-vested December 31, 2013	193,344		$6.95

At December 31, 2013, we had $416,000 of unrecognized compensation cost related to unvested stock options, net of expected forfeitures, which is expected to be recognized over the following periods: 2014 - $375,000 and 2015 - $41,000. Stock-based compensation is included in general and administrative expense in the Consolidated Statements of Income.

The intrinsic value of the total options exercised for the years ended December 31, 2013, 2012 and 2011 was $1,084,000 or $19.71 per share; $5,527,000 or $8.67 per share, and $2,567,000 or $12.94 per share, respectively.

Restricted Stock Activity

The following table summarizes our restricted stock activity:

	Number of Shares		Weighted Average Remaining Vesting Period (Years)	Aggregate Intrinsic Value
Non-vested at December 31, 2010	3,175		0.54	$	143,000
Vested during the period	(1,925	)
Non-vested at December 31, 2011	1,250		0.10	$	55,000
Vested during the period	(1,250	)
Non-vested at December 31, 2012	—
Vested during the period	—
Non-vested at December 31, 2013	—

At December 31, 2013, we had no unrecognized compensation cost related to unvested restricted stock.

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Consolidated Statements Of Income (USD $)	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Revenues:
Rental income	$ 106,029,000	$ 81,482,000	$ 72,608,000
Interest income from mortgage and other notes	7,633,000	7,426,000	6,652,000
Investment income and other	4,166,000	4,409,000	4,479,000
Revenues	117,828,000	93,317,000	83,739,000
Expenses:
Depreciation	20,101,000	14,772,000	11,450,000
Interest expense	9,229,000	3,492,000	3,848,000
Legal expense	784,000	766,000	559,000
Franchise, excise and other taxes	616,000	771,000	837,000
General and administrative	9,254,000	7,799,000	7,588,000
Loan and realty losses (recoveries), net	1,976,000	(2,195,000)	(99,000)
Total operating expenses	41,960,000	25,405,000	24,183,000
Income before equity-method investee, discontinued operations and noncontrolling interest	75,868,000	67,912,000	59,556,000
Income from equity-method investee	324,000	45,000	0
Investment and other gains	3,306,000	4,877,000	10,261,000
Income from continuing operations	79,498,000	72,834,000	69,817,000
Discontinued operations
Income from operations - discontinued	5,426,000	6,098,000	7,967,000
Gain on sale of real estate	22,258,000	11,966,000	3,348,000
Total discontinued operations	27,684,000	18,064,000	11,315,000
Net income	107,182,000	90,898,000	81,132,000
Less: net income attributable to noncontrolling interest	(999,000)	(167,000)	0
Net income attributable to common stockholders	$ 106,183,000	$ 90,731,000	$ 81,132,000
Weighted average common shares outstanding:
Basic	28,362,398	27,811,813	27,719,096
Diluted	28,397,702	27,838,720	27,792,592
Basic:
Income from continuing operations attributable to common stockholders	$ 2.77	$ 2.61	$ 2.52
Discontinued operations	$ 0.97	$ 0.65	$ 0.41
Net income per common share attributable to common stockholders	$ 3.74	$ 3.26	$ 2.93
Diluted:
Income from continuing operations attributable to common stockholders	$ 2.77	$ 2.61	$ 2.51
Discontinued operations	$ 0.97	$ 0.65	$ 0.41
Net income per common share attributable to common stockholders	$ 3.74	$ 3.26	$ 2.92

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Mortgage And Other Notes Receivable

12 Months Ended

Dec. 31, 2013

Financing Receivable, Net [Abstract]

Mortgage Notes Receivable

MORTGAGE AND OTHER NOTES RECEIVABLE

At December 31, 2013, we had investments in mortgage notes receivable with a carrying value of $34,926,000 secured by real estate and UCC liens on the personal property of 11 health care properties and other notes receivable with a carrying value of $27,082,000 guaranteed by significant parties to the notes or by cross-collateralization of properties with the same owner. At December 31, 2012, we had investments in mortgage notes receivable with a carrying value of $68,214,000 and other notes receivable with a carrying value of $16,036,000. No allowance for doubtful accounts was considered necessary at December 31, 2013 or December 31, 2012.

In September 2012 we evaluated the recoverability of the mortgage notes receivable due from SeniorTrust of Florida, Inc., a Tennessee non-profit organization. Using a discounted cash flow analysis, we evaluated the declining net operating income of SeniorTrust over the previous twelve months and recognized an impairment to the carrying value of the SeniorTrust notes in the total amount of $2,300,000 reducing the SeniorTrust notes receivable to a carrying value of $19,037,000 at December 31, 2012.

Due to non-receipt of contractual payments, in March 2013 we re-evaluated the recoverability of the SeniorTrust notes and recognized an impairment to the carrying value in the total amount of $4,037,000, thereby reducing the carrying value of the SeniorTrust notes receivable to $15,000,000.

In June 2013 we received full payment of $15,000,000 on the SeniorTrust notes.

In August 2013 the mortgage notes receivable due from ElderTrust of Florida, Inc. with an aggregate principal balance of $13,741,000 were applied to the purchase price of seven skilled nursing facilities in Massachusetts and New Hampshire. See Note 8 for more information on our transactions with SeniorTrust and ElderTrust.

In July 2013 we extended a $9,200,000 loan to Bickford to fund a portion of their acquisition of six senior housing communities consisting of 342 units. The loan is guaranteed by principals of Bickford and has a two year maturity plus a one year extension option with 12% annual interest. As a result of this transaction, PropCo acquired a $97,000,000 purchase option on the properties which is exercisable over the term of the loan.

In September 2013 we received $3,293,000 as full payment upon the final maturity of a mortgage note secured by a skilled nursing facility located in Georgia. Of the amount received, we recorded $2,061,000 as a recovery of a previous writedown.

In October 2013 we provided a $2,500,000 second mortgage loan to an affiliate of Discovery for the construction of a 120-unit senior housing community in Naples, Florida. Construction began in the fourth quarter of 2013. The loan is guaranteed by principals of Discovery and has a five-year maturity with monthly payments of interest at a 12% annual rate.

In December 2012, we received from our current borrower a payment of $13,830,000 in full settlement of our note receivable secured by three skilled nursing facilities in Georgia formerly owned by Allgood Healthcare, Inc. The payment consisted of note principal of $4,650,000, accrued interest of $80,000, a recovery of a previous writedown of $4,495,000, and a note gain of $4,605,000. The recovery and gain are included in separate components of our income from continuing operations in our Consolidated Statements of Income. These facilities had previously been involved in bankruptcy proceedings with the former owner.

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Equity-Method Investment And Other Assets

12 Months Ended

Dec. 31, 2013

Investment In Unconsolidated Entity And Other Assets [Abstract]

Equity Method Investments And Other Assets Disclosure [Text Block]

EQUITY-METHOD INVESTMENT AND OTHER ASSETS

Our equity-method investment in OpCo and other assets consist of the following (in thousands):

	As of December 31,
	2013		2012
Equity-method investment in OpCo	$	9,494	$	8,353
Loan costs and prepaid expenses, net	7,596		1,838
Accounts receivable and other assets	2,272		1,815
Replacement reserve and tax escrows - Fannie Mae	706		—
Lease escrow deposits	22,775		—
Escrow deposit for tax deferred exchange	23,813		—
Escrow deposit for real estate purchase	—		166
	$	66,656	$	12,172

Upon the acquisition of our equity method investment in OpCo, in 2012, our purchase price was allocated to the assets acquired based upon their estimated relative fair values. Accounting guidance for equity method investments requires that we account for the difference between the cost basis of our investment in OpCo and our pro rata share of the amount of underlying equity in the net assets of OpCo as though OpCo were a consolidated subsidiary. Accordingly, the excess of the original purchase price over the fair value of identified tangible assets at acquisition of $8,986,000 is treated as implied goodwill and is subject to periodic review for impairment in conjunction with our equity method investment. When we acquired the Bickford properties in June 2013, an assignment was entered into whereby the operations of the 17 facilities were conveyed by an affiliate of Bickford to OpCo. The transaction mandated the effective cut-off of operating revenues and expenses and the settlement of operating assets and liabilities as of the acquisition date. Specified remaining net tangible assets were assigned to OpCo at the transferor's carryover basis resulting in an adjustment, through NHI's capital in excess of par value to our equity method investment in OpCo, of $817,000. We monitor and periodically review our equity method investment in OpCo for impairment to determine whether a decline, if any, in the value of the investment is other-than temporary. We noted no decline in value as of December 31, 2013.

OpCo is intended to be self-financing, and aside from initial investments therein, no direct support has been provided by NHI to OpCo since inception on September 30, 2012. While PropCo's rental revenues associated with the related properties are sourced from OpCo, a decision to furnish additional direct support would be at our discretion and not obligatory. As a result, we believe our maximum exposure to loss at December 31, 2013, due to our investment in OpCo, would be limited to our equity interest. We have concluded that OpCo meets the accounting criteria to be considered a VIE. However, because we do not control the entity, nor do we have any role in the day-to-day management, we are not the primary beneficiary of the entity, and we account for our investment using the equity method. There have been no distributions declared during the years endedDecember 31, 2013 and 2012.

At December 31, 2013, we had real estate sales proceeds of $23,813,000 held with a qualified intermediary for the purpose of using the funds toward a future purchase of real estate and completing a tax-deferred exchange within the rules of Section 1031 of the Internal Revenue Code.

At December 31, 2013, we held lease escrow deposits of $22,775,000 in regard to our lease with Holiday. The Holiday deposits include $21,275,000 as a lease security deposit which remains for the term of the 17-year lease commencing in December 2013 and is payable to Holiday at the end of the lease term. The remaining $1,500,000 is reserved for specified capital improvements.

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Limits On Common Stock Ownership Limits On Common Stock Ownership

12 Months Ended

Dec. 31, 2013

Limits On Common Stock Ownership [Abstract]

Limits On Common Stock Ownership [Text Block]

LIMITS ON COMMON STOCK OWNERSHIP

The Company's charter contains certain provisions which are designed to ensure that the Company's status as a REIT is protected for federal income tax purposes. One of these provisions ensures that any transfer which would cause NHI to be beneficially owned by fewer than 100 persons or would cause NHI to be “closely held” under the Internal Revenue Code would be void which, subject to certain exceptions, results in no stockholder being allowed to own, either directly or indirectly pursuant to certain tax attribution rules, more than 9.9% of the Company's common stock. In 1991, the Board created an exception to this ownership limitation for Dr. Carl E. Adams, his spouse, Jennie Mae Adams, and their lineal descendants. Effective May 12, 2008, we entered into Excepted Holder Agreements with W. Andrew Adams and certain members of his family. These written agreements are intended to restate and replace the parties' prior verbal agreement. Based on the Excepted Holder Agreements currently outstanding, the ownership limit for all other stockholders is approximately 7.5%. Our charter gives our Board of Directors broad powers to prohibit and rescind any attempted transfer in violation of the ownership limits. These agreements were entered into in connection with the Company's stock purchase program pursuant to which the Company announced that it would purchase up to 1,000,000 shares of its common stock in the public market from its stockholders.

A separate agreement was entered into with each of the spouse and children of Dr. Carl E. Adams and others within Mr. W. Andrew Adams' family. We needed to enter into such an agreement with each family member because of the complicated ownership attribution rules under Internal Revenue Code. The Agreement permits the Excepted Holders to own common stock in excess of 9.9% up to the limit specifically provided in the individual agreement and not lose rights with respect to such shares. However, if the stockholder's stock ownership exceeds the limit then such shares in excess of the limit become “Excess Stock” and lose voting rights and entitlement to receive dividends. The Excess Stock classification remains in place until the stockholder no longer exceeds the threshold limit specified in the Agreement. The purpose of these agreements is to ensure that the Company does not violate the prohibition against a REIT being closely held. W. Andrew Adams' Excess Holder Agreement also provides that he will not own shares of stock in any tenant of the Company if such ownership would cause the Company to constructively own more than a 9.9% interest in such tenant. This prohibition is designed to protect the Company's status as a REIT for tax purposes.

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Discontinued Operations

12 Months Ended

Dec. 31, 2013

Discontinued Operations and Disposal Groups [Abstract]

Discontinued Operations

DISCONTINUED OPERATIONS

We have reclassified, for all periods presented, the operations of facilities meeting the accounting criteria for properties being sold or held for sale as discontinued operations.

In December 2013, we sold three older skilled nursing facilities to affiliates of our current tenant, Fundamental, for $18,500,000. The properties had a carrying value of $17,068,000. We plan to defer recognition of the tax gain on the sale of these facilities by utilizing the like-kind exchange rules under Section 1031 of the internal Revenue Code. Our lease revenue from these facilities was $3,316,000, $3,231,000, and $3,067,000 for the years endedDecember 31, 2013, 2012, and 2011, respectively. Pursuant to the purchase option, rents associated with the two remaining properties will be fixed at $250,000 per month, without escalation, through the first renewal term in February 2016.

In January 2011, we completed the sale of a skilled nursing facility in Texas to the current tenant, Fundamental, for $4,500,000 that had a carrying value of $4,039,000. Our lease revenue from the facilities was $43,000 for the year ended December 31, 2011.

In October 2013, our current tenant, Weatherly Associates, LLC, exercised their option to purchase a senior housing facility in Pennsylvania for $5,315,000. The sale was completed in December 2013. The property had a carrying value of $3,591,000 resulting in a gain for financial statement purposes. We plan to defer recognition of the tax gain on the sale of this facility by utilizing the like-kind exchange rules under Section 1031 of the Internal Revenue Code. Our lease revenue from the facility was $353,000, $403,000, and $403,000 for the years endedDecember 31, 2013, 2012, and 2011, respectively.

In August 2013 we sold six older skilled nursing facilities to NHC for $21,000,000 and recorded a gain for financial statement purposes of $19,370,000 after selling costs of $19,000. Our lease revenue from the facilities was $2,294,000, $3,368,000 and $3,377,000 for the years ended December 31, 2013, 2012 and 2011, respectively.

In December 2012, our tenant, Sunrise Senior Living, exercised its option to purchase our assisted living facility in Edison, New Jersey. Our lease revenue from the facility was $1,302,000 and $1,372,000 for the years ended December 31, 2012 and 2011, respectively.

In August 2011, we sold an assisted living facility located in Daytona Beach, Florida to the current tenant. The net gain on the sale of these facilities was $1,048,000 for financial statement purposes. Our lease revenue from the facilities was $202,000 and for the year ended December 31, 2011.

In February 2011, we sold two medical office buildings to our current tenant. The net gain on the sale of these facilities was $1,838,000 for financial statement purposes. Our lease revenue from the facilities was $41,000 for the year ended December 31, 2011.

Income from discontinued operations is summarized below (in thousands):

	Year Ended December 31,
	2013		2012		2011
Revenues:
Rental income	$	5,962	$	8,304	$	8,505
Other income	21		3		4
Expenses:
Depreciation	557		2,209		542
Operating income	5,426		6,098		7,967
Gain on sale of real estate	22,258		11,966		3,348
Total discontinued operations	$	27,684	$	18,064	$	11,315
Weighted average common shares outstanding:
Basic	28,362,398		27,811,813		27,719,096
Diluted	28,397,702		27,838,720		27,792,592
Discontinued operations income per share:
Basic	$	.97	$	.65	$	.41
Diluted	$	.97	$	.65	$	.41

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Debt

12 Months Ended

Dec. 31, 2013

Debt Instruments [Abstract]

Debt Disclosure

DEBT

Debt consists of the following (in thousands):

	December 31, 2013		December 31, 2012
Revolving credit facility - unsecured	$	167,000	$	64,000
Bank term loans - unsecured	370,000		120,000
Bank term loan - secured	—		19,250
Fannie Mae term loans - secured (including a premium of $1,756)	80,080		—
	$	617,080	$	203,250

On June 28, 2013, we entered into a $370,000,000 unsecured credit facility which includes a 5-year revolving credit facility (inclusive of a 1-year extension option) of $250,000,000 with interest initially at 140 basis points over LIBOR and $120,000,000 of 7-year term loans with interest initially at 150 basis points over LIBOR. The facility also includes an uncommitted incremental facility feature allowing for an additional $130,000,000 of borrowings. The credit facility was provided by Wells Fargo, Bank of Montreal, KeyBank, and Bank of America, with Pinnacle National Bank as a participating bank. At December 31, 2013, we had $83,000,000 available to draw on the revolving portion of the credit facility. Quoted 30-day LIBOR was 17 basis points on December 31, 2013. The unused commitment fee is 35 basis points per annum. The new facility replaces a smaller credit facility that originated on May 1, 2012 and provided for $320,000,000 of total borrowing capacity. Interest rates are referenced to our Consolidated Leverage Ratio, as defined, and were adjusted in December 2013 to 165 basis points over LIBOR for the revolving credit facility and 175 basis points over LIBOR for the term loans to give effect to debt undertaken in conjunction with our Holiday acquisition. The revolving credit facility has a maximum applicable rate of 190 basis points over LIBOR and the term loans have a maximum applicable rate of 200 basis points over LIBOR.

To provide a portion of the funding for the Holiday acquisition described in Note 2, we entered into a $250,000,000 term loan with a syndicate of banks led by Wells Fargo. Interest is 175 basis points over LIBOR and the loan has the same maturity as our revolving credit facility.

As part of the Care acquisition described in Note 2, we assumed Fannie Mae mortgage loans, with principal balances of $71,090,000 and $7,234,000 on December 31, 2013, which have interest at rates of 6.85% and 7.17%, respectively, and mature on July 1, 2015 (prepayable without penalty after December 31, 2014).

The unsecured credit facility mentioned above requires that we maintain certain financial ratios within limits set by our creditors. To date, these ratios, which are calculated quarterly, have been well within the limits required by the credit facility agreements.

The following table summarizes interest expense (in thousands):

	Year Ended December 31,
	2013		2012		2011
Interest expense	$	8,523	$	3,172	$	2,070
Amortization of loan costs	706		320		581
Change in fair value of interest rate swap agreement	—		—		1,197
Total interest expense	$	9,229	$	3,492	$	3,848

Amortization of loan costs for 2013 includes $416,000 which was written off as a result of modifications we made to the credit facility.

In August 2013, we used our revolving credit facility to pay off a $19,250,000 secured bank loan which provided for interest at 300 basis points over LIBOR.

Interest Rate Swap Agreements

We have entered into interest rate swap agreements to fix the interest rates on the $80,000,000 and $40,000,0007-year term loans. The critical terms of this swap agreement are essentially identical to those of the 7-year term loans and thus, in accordance with ASC Topic 815 Derivative Instruments and Hedging Activities, the swap is considered a perfectly effective "cash flow hedge." Accordingly, changes in the fair value of this cash flow hedge are included in accumulated other comprehensive income rather than net income in our Consolidated Statements of Income. If the fair value of the hedge is an asset, we include it in our Consolidated Balance Sheets in other assets, and, if a liability, as a component of accrued expenses.

Below is a summary of our swap agreements at December 31, 2013 (dollars in thousands):

Date Entered	Maturity Date	Fixed Rate	Rate Index	Notional Amount		Fair Value
May 2012	April 2019	3.29%	1-month LIBOR	$	40,000	$	544
June 2013	June 2020	3.86%	1-month LIBOR	$	80,000	$	431

See Note 14 for fair value disclosures about our Fannie Mae mortgage loan and interest rate swap agreements.

On November 1, 2011, we terminated a previous interest rate swap agreement. Interest in 2011 reflected the change in fair value of the interest rate swap agreement.

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Share-Based Compensation (Schedule of Non-Vested Share Activity) (Details) (USD $)	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Non-vested stock options, January 1	176,675
Non-vested stock options, December 31	193,344	176,675
Weighted Average Grant Date Fair Value, Non-vested stock options, January 1	$ 8.09
Weighted Average Fair Value Per Share, Options granted	$ 6.41	$ 6.36	$ 9.91
Weighted Average Grant Date Fair Value, Non-vested stock options, December 31	$ 6.95	$ 8.09
2012 Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options granted	360,000
Weighted Average Fair Value Per Share, Options granted	$ 6.41
2005 Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options granted		340,000	340,000
Options vested	(343,331)
Weighted Average Grant Date Fair Value, Options vested	6.97

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Investment In Preferred Stock, At Cost

12 Months Ended

Dec. 31, 2013

Investment In Preferred Stock, At Cost [Abstract]

Investment In Preferred Stock, At Cost

INVESTMENT IN PREFERRED STOCK, AT COST

We received $3,273,000 in preferred dividends from LTC (a publicly-traded REIT) for each of the years ended December 31, 2013, 2012 and 2011, on our investment in 2,000,000 shares of their cumulative preferred stock carried at its original cost of $38,132,000. The preferred stock, which was purchased in September 1998, is not listed on a stock exchange, is considered a non-marketable security and is recorded at cost in our Consolidated Balance Sheets. The non-voting preferred stock is convertible into 2,000,000 shares of LTC common stock whose closing price at December 31, 2013 was $35.39 per share. The preferred stock has an annual cumulative coupon rate of 8.5% payable quarterly and a liquidation preference of $19.25 per share. While not the fair value of our preferred stock investment, we provide the above information as pertinent to the reader's estimation of the fair value of our investment. In accordance with ASC Topic 825 Financial Instruments, paragraph 10-50 Disclosure-Overall, we have determined that due to excessive costs, it is not practicable to estimate the fair value of our cost basis investment in preferred stock because of inherent subjectivities in refining the estimate to a degree that is likely to materially augment the information provided above. Further, we have identified no events that may have had an adverse effect on its fair value which would have required revisiting the instrument's carrying value.

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Investments In Marketable Securities

12 Months Ended

Dec. 31, 2013

Marketable Securities [Abstract]

Investments In Marketable Securities [Text Block]

INVESTMENTS IN MARKETABLE SECURITIES

Our investments in marketable securities include available-for-sale securities which are reported at fair value. Unrealized gains and losses on available-for-sale securities are presented as a component of accumulated other comprehensive income. Realized gains and losses from securities sales are determined based upon specific identification of the securities.

Marketable securities consist of the following (in thousands):

	December 31, 2013				December 31, 2012
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Common stock of other healthcare REITs	$	4,088	$	12,650	$	4,088	$	12,884

Gross unrealized gains related to available-for-sale securities were $8,562,000 at December 31, 2013 and $8,796,000 at December 31, 2012.

During 2011, we sold 381,000 common shares of LTC and sold 96,330 shares of convertible preferred stock of NHC and recognized gains totaling $8,809,000.

During 2011, we recognized a gain of $1,090,000 on the sale of 50,000 common shares of Nationwide Health Properties, Inc. (“NHP”) in exchange for 39,330 common shares of Ventas, Inc. (“Ventas”) upon the acquisition of NHP by Ventas.

During 2013, 2012, and 2011 we recognized $667,000, $628,000, and $822,000, respectively, of dividend income from our marketable securities and have included these amounts in investment income and other in the Consolidated Statements of Income.

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Commitments And Contingencies

12 Months Ended

Dec. 31, 2013

Commitments and Contingencies Disclosure [Abstract]

Commitments And Contingencies

COMMITMENTS AND CONTINGENCIES

Bickford

At December 31, 2013, our subsidiary PropCo had purchased land and begun construction on one assisted living facility having a maximum cost of $9,000,000. Our costs incurred to date, including land, were $2,712,000. NHI entered into a commitment of $2,785,000 on a letter of credit for the benefit of our joint venture partner, an affiliate of Bickford, on February 6, 2014.

Chancellor

In October 2013, we entered into a $7,500,000 commitment to build a 46-unit free-standing assisted living and memory care community, expanding our Linda Valley senior living campus in Loma Linda, California. We expect to begin construction during the first quarter of 2014. The initial lease term is for 15 years at an annual rate of 9% plus a fixed annual escalator. NHI purchased the Linda Valley campus in 2012 and leased it to Chancellor Health Care, who has been operating the campus since 1993. We also committed to provide up to $500,000 for renovations and improvements related to our recent acquisition of a 63-unit senior housing community in Baltimore, Maryland which we have leased to Chancellor Health Care. We expect to begin renovations during the first quarter of 2014.

Fundamental

In April 2013, we completed the purchase of two skilled nursing facilities located in Canton and Corinth, Texas for a purchase price of $26,150,000 in cash, plus consideration related to the Corinth facility of $1,600,000 conditional upon the achievement of certain operating metrics, which continued to be probable as of December 31, 2013.

Kentucky River

In March 2012, we entered into a long-term lease extension and construction commitment to Jackson Hospital Corporation, an affiliate of Community Health Systems, to provide up to $8,000,000 for extensive renovations and additions to our Kentucky River Medical Center, a general acute care hospital in Jackson, Kentucky. This investment will be added to the basis on which the lease amount is calculated. The construction project commenced during the first quarter of 2013 and is expected to continue over two years. Total construction costs incurred as of December 31, 2013 were $5,838,000. The 10-year lease extension began July 1, 2012, with an additional 5-year renewal option.

Legend Healthcare

In October 2011, we completed a purchase/leaseback of four skilled nursing facilities in Texas with affiliates of Legend Healthcare, LLC (“Legend”) for $55,278,000, including consideration of $5,478,000 which was contingent on the achievement of certain operating metrics. In December 2012, we funded $2,222,000 of this contingent consideration. We had previously anticipated the remaining $3,256,000, which was recorded as a purchase liability, to be funded. During the quarter ended December 31, 2013, we determined that Legend had not achieved the required operating metrics and therefore would not qualify for this remaining consideration. As a result, we have recorded a gain of $3,256,000 on the settlement of this purchase liability and have included this amount in investment and other gains in our Consolidated Statements of Income.

Santé

We have a $2,000,000 supplemental construction commitment to our borrower, Santé Partners, LLC (“Santé”). This additional loan amount becomes available to the borrower when the 70-bed transitional rehabilitation hospital, completed in March 2011, achieves certain operating metrics. NHI also has the option to purchase and lease back the hospital when it achieves a predetermined level of stabilized net operating income.

We had previously committed to fund a $3,500,000 expansion and renovation program in connection with our August 2012 acquisition of the senior living campus in Silverdale, Washington leased to Santé. As of December 31, 2013, we had fully funded this commitment, which was added to the basis on which the lease amount is calculated. Also in connection with our Silverdale, Washington senior living campus, we have a contingent commitment to fund two lease inducement payments of $1,000,000 each. Santé would earn the payments upon obtaining, and maintaining, a specified lease coverage ratio. If earned, the first payment would be due after the second lease year and the second payment would be due after the third lease year. At acquisition, the likelihood that we would incur the contingent payments was not considered probable. Accordingly, no provision for these payments is reflected in the consolidated financial statements.

Helix Healthcare

In March 2010, we completed a purchase/leaseback transaction with Helix Healthcare (“Helix”) for $12,500,000. The purchase price includes a conditional payment of $1,000,000, which is recorded as a purchase liability.

Discovery

As a lease inducement, we have a contingent commitment to fund a series of payments up to $2,500,000 in connection with our September 2013 lease to Discovery of a senior living campus in Rainbow City, Alabama. Discovery would earn the contingent payments upon obtaining, and maintaining, a specified lease coverage ratio. As earned, the payments would be due in installments of $750,000 in each of years two and three of the lease with the residual due in year four. As of December 31, 2013, the likelihood that we would incur the contingent payments was not considered probable. Accordingly, no provision for these payments is reflected in the consolidated financial statements.

Litigation

Our Health Care Facilities are subject to claims and suits in the ordinary course of business. Our lessees and borrowers have indemnified, and are obligated to continue to indemnify us, against all liabilities arising from the operation of the Health Care Facilities, and are further obligated to indemnify us against environmental or title problems affecting the real estate underlying such facilities. While there may be lawsuits pending against certain of the owners and/or lessees of the Health Care Facilities, management believes that the ultimate resolution of all such pending proceedings will have no material adverse effect on our financial condition, results of operations or cash flows.

As previously disclosed, in November 2008, the Company was served with a Civil Investigative Demand by the Office of the Tennessee Attorney General (“OTAG”), which indicated that the OTAG was investigating transactions between the Company and three Tennessee not-for-profit corporations. NHI has provided the OTAG with requested information and documents and has been working with the OTAG with respect to this investigation. The investigation with respect to one of the not-for-profit corporations was settled in 2009. A receiver had been appointed for the two remaining not-for-profit corporations, SeniorTrust of Florida, Inc. ("SeniorTrust") and ElderTrust of Florida, Inc ("ElderTrust"). As previously disclosed, the receiver of SeniorTrust and ElderTrust had caused those entities to bring lawsuits against NHI and NHC.

In April 2013, NHI, NHC and the receiver for ElderTrust and SeniorTrust entered into a settlement agreement resolving all remaining issues. The settlement agreement also resolved the OTAG investigation and was approved by the Court on May 3, 2013. Thus, the investigation has now been resolved with respect to all three of the not-for-profit corporations. The settlement agreement provided that SeniorTrust pay NHI $15,000,000 in cash in full settlement of the notes receivable between NHI and SeniorTrust, which payment was made on June 27, 2013.

The settlement agreement also provided that NHI purchase ElderTrust's seven skilled nursing facilities in Massachusetts and New Hampshire. As consideration for the purchase from ElderTrust, NHI canceled a note receivable from ElderTrust with a principal balance of $13,741,000 and paid cash in the amount of $23,676,000, inclusive of closing costs. As discussed in further detail at Note 2, the purchase was completed on August 30, 2013. NHI has leased these facilities to NHC, the current operator.

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Discontinued Operations (Narrative) (Details) (USD $)	12 Months Ended														12 Months Ended							12 Months Ended
	Dec. 31, 2013 properties	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2011 Texas SNF [Member]	Dec. 31, 2011 Daytona, Florida ALF [Member]	Dec. 31, 2013 National Healthcare Corporation [Member] properties	Dec. 31, 2013 Fundamental Long Term Care Holdings [Member] properties	Dec. 31, 2012 Fundamental Long Term Care Holdings [Member]	Dec. 31, 2011 Fundamental Long Term Care Holdings [Member]	Dec. 31, 2011 Two MOBs Sold [Member]	Dec. 31, 2013 Fundamental Long Term Care Holdings [Member] properties	Dec. 31, 2011 Fundamental Long Term Care Holdings [Member]	Apr. 30, 2013 Fundamental Long Term Care Holdings [Member] properties	Jan. 31, 2011 Fundamental Long Term Care Holdings [Member]	Dec. 31, 2011 Assets Held-for-sale [Member] Daytona, Florida ALF [Member]	Dec. 31, 2012 Assets Held-for-sale [Member] Sunrise Senior Living [Member]	Dec. 31, 2011 Assets Held-for-sale [Member] Sunrise Senior Living [Member]	Dec. 31, 2013 Assets Held-for-sale [Member] National Healthcare Corporation [Member]	Dec. 31, 2012 Assets Held-for-sale [Member] National Healthcare Corporation [Member]	Dec. 31, 2011 Assets Held-for-sale [Member] National Healthcare Corporation [Member]	Aug. 31, 2013 Assets Held-for-sale [Member] National Healthcare Corporation [Member] properties	Dec. 31, 2011 Assets Held-for-sale [Member] Two MOBs Sold [Member]	Feb. 28, 2011 Assets Held-for-sale [Member] Two MOBs Sold [Member] properties
Number of Real Estate Properties	157					42	2				3		2								6		2
Asset Sold, Selling Price											$ 18,500,000			$ 4,500,000
Carrying Value Of Assets Sold											17,068,000	4,039,000
Disposal Group, Including Discontinued Operation, Revenue				43,000	202,000		3,316,000	3,231,000	3,067,000	41,000						1,302,000	1,372,000	2,294,000	3,368,000	3,377,000
Expected Annual Rental Income	250,000
Real Estate, Assets Held For Sale, Sales Price																					21,000,000
Gain on sale of real estate	22,258,000	11,966,000	3,348,000												1,048,000			19,370,000				1,838,000
Lease Extension Period in Years	10 years 0 months 0 days					5 years 0 months 0 days
Asset Purchase Transaction Costs																		$ 19,000

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Income Taxes Income Taxes (Schedule of Dividends Paid, Per Share) (Details) (USD $)	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Common Stock, Dividends, Per Share, Cash Paid	$ 3.12	$ 2.64	$ 2.715
Ordinary Income [Member]
Common Stock, Dividends, Per Share, Cash Paid	$ 2.85895	$ 2.62870	$ 2.32042
Capital Gain [Member]
Common Stock, Dividends, Per Share, Cash Paid	$ 0.16493	$ 0.01130	$ 0.32494
Return of Capital [Member]
Common Stock, Dividends, Per Share, Cash Paid	$ 0.09612	$ 0	$ 0.06964

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Discontinued Operations (Schedule Of Income From Discontinued Operations) (Details) (USD $) In Thousands, except Share data, unless otherwise specified	3 Months Ended								12 Months Ended
	Dec. 31, 2013	Sep. 30, 2013	Jun. 30, 2013	Mar. 31, 2013	Dec. 31, 2012	Sep. 30, 2012	Jun. 30, 2012	Mar. 31, 2012	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Revenues [Abstract]
Rental income									$ 5,962	$ 8,304	$ 8,505
Other income									21	3	4
Expenses [Abstract]
Depreciation									557	2,209	542
Operating income									5,426	6,098	7,967
Gain on sale of real estate									22,258	11,966	3,348
Total discontinued operations									$ 27,684	$ 18,064	$ 11,315
Basic	29,831,176	27,876,176	27,876,176	27,876,176	27,848,002	27,830,311	27,792,834	27,776,104	28,362,398	27,811,813	27,719,096
Diluted	29,860,614	27,905,545	27,913,727	27,911,584	27,868,245	27,862,582	27,820,831	27,803,222	28,397,702	27,838,720	27,792,592
Basic	$ 0.12	$ 0.74	$ 0.06	$ 0.06	$ 0.50	$ 0.04	$ 0.04	$ 0.07	$ 0.97	$ 0.65	$ 0.41
Discontinued operations per common share	$ 0.12	$ 0.74	$ 0.06	$ 0.06	$ 0.50	$ 0.04	$ 0.04	$ 0.07	$ 0.97	$ 0.65	$ 0.41

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Share-Based Compensation (Tables)

12 Months Ended

Dec. 31, 2013

Deferred Compensation Arrangements [Abstract]

Schedule of Stock Option Valuation Assumptions [Table Text Block]

The fair value of each grant is estimated on the date of grant using the Black-Scholes option-pricing model with the following weighted average assumptions:

	2013	2012	2011
Dividend yield	4.5%	6.0%	5.9%
Expected volatility	23.8%	32.0%	4.6%
Expected lives	2.8 years	3.9 years	3.9 years
Risk-free interest rate	0.35%	0.32%	1.11%

Schedule of Stock Option Activity [Table Text Block]

The following tables summarize our outstanding stock options:

				Weighted Average
	Number		Weighted Average	Remaining	Aggregate
	of Shares		Exercise Price	Contractual Life (Years)	Intrinsic Value
Outstanding December 31, 2010	384,507		$33.24
Options granted under 2005 Plan	340,000		$46.11
Options exercised under 1997 Plan	(15,000	)	$23.79
Options exercised under 2005 Plan	(183,417	)	$32.69
Options forfeited under 2005 Plan	(16,668	)	$41.52
Outstanding December 31, 2011	509,422		$42.03
Options granted under 2005 Plan	340,000		$47.52
Options exercised under 1997 Plan	(19,266	)	$33.26
Options exercised under 2005 Plan	(618,481	)	$43.63
Outstanding December 31, 2012	211,675		$46.60
Options granted under 2005 Plan	360,000		$64.49
Options exercised under 2005 Plan	(55,001	)	$45.31
Outstanding December 31, 2013	516,674		$59.20	3.77	$	1,417,000
Exercisable December 31, 2013	323,330		$59.19	3.71	$	901,848

				Remaining
Grant	Number	Exercise		Contractual
Date	of Shares	Price		Life in Years
2/22/2011	15,000	$	45.58	2.15
2/25/2011	33,336	$	46.22	2.15
2/21/2012	108,338	$	47.52	3.15
2/25/2013	360,000	$	64.49	4.16
Outstanding December 31, 2013	516,674

Schedule of Nonvested Share Activity [Table Text Block]

The following table summarizes our outstanding non-vested stock options:

	Number of Shares		Weighted Average Grant Date Fair Value
Non-vested December 31, 2012	176,675		$8.09
Options granted under 2012 Plan	360,000		$6.41
Options vested under 2005 Plan	(343,331	)	$6.97
Non-vested December 31, 2013	193,344		$6.95

Schedule of Restricted Stock Activity [Table Text Block]

The following table summarizes our restricted stock activity:

	Number of Shares		Weighted Average Remaining Vesting Period (Years)	Aggregate Intrinsic Value
Non-vested at December 31, 2010	3,175		0.54	$	143,000
Vested during the period	(1,925	)
Non-vested at December 31, 2011	1,250		0.10	$	55,000
Vested during the period	(1,250	)
Non-vested at December 31, 2012	—
Vested during the period	—
Non-vested at December 31, 2013	—

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Investments In Marketable Securities (Narrative) (Details) (USD $)	9 Months Ended		12 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Available-for-sale Securities, Gross Unrealized Gains	$ 8,562,000	$ 8,796,000
Marketable Securities, Realized Gain (Loss)			0	30,000	9,899,000
Dividend Income On Marketable Securities			667,000	628,000	822,000
LTC Properties, Inc. [Member]
Common Shares Sold					381,000
NHC Convertible Preferred Stock [Member]
Preferred Shares Sold					96,330
National Healthcare and LTC Properties, Inc. [Member]
Marketable Securities, Realized Gain (Loss)					8,809,000
Nationwide Health Properties [Member]
Marketable Securities, Realized Gain (Loss)					$ 1,090,000
Common Shares Given Up In Exchange					50,000
Ventas, Inc. [Member]
Common Shares Received In Exchange					39,330

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Income Taxes Income Taxes

12 Months Ended

Dec. 31, 2013

Income Taxes [Abstract]

Income Tax Disclosure [Text Block]

INCOME TAXES

Beginning with our inception in 1991, we have elected to be taxed as a REIT under the Internal Revenue Code (the "Code"). We have elected that our subsidiary established on September 30, 2012 in connection with the Bickford arrangement (which holds our ownership interest in an operating company) be taxed as a taxable REIT subsidiary ("TRS") under provisions of the Code. The TRS is subject to federal and state income taxes like those applicable to regular corporations. Aside from such income taxes which may be applicable to the taxable income in the TRS, we will not be subject to federal income tax provided that we continue to qualify as a REIT and make distributions to stockholders equal to or in excess of our taxable income.

Per share dividend payments to common stockholders for the last three years are characterized for tax purposes as follows:

(Unaudited)	2013		2012		2011
Ordinary income	$	2.85895	$	2.62870	$	2.32042
Capital gain	0.16493		0.01130		0.32494
Return of capital	0.09612		—		0.06964
Dividends paid per common share	$	3.12	$	2.64	$	2.715

Our consolidated provision for state and federal income tax for the years ended 2013, 2012, and 2011 was $267,000, $137,000, and $96,000, respectively. For the years ended 2013, 2012, and 2011 we had no material deferred state or federal income tax.

Current taxes for 2013 of $128,000 relates to our equity interest in the unconsolidated operating company whose interest is owned by our TRS described above, plus $139,000 from a franchise tax levied by the state of Texas that has attributes of an income tax. For 2012, tax expense of $20,000 relates to our equity interest in the unconsolidated operating company and $117,000 relates to the Texas franchise tax. The tax expense for 2011 relates entirely to such tax levied in Texas. Our income taxes described above are combined in franchise, excise and other taxes in our Consolidated Statements of Income.

We made state income tax payments of $129,000, $96,000,and $82,000 for the years ended December 31, 2013, 2012 and 2011, respectively.

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Schedule III - Real Estate and Accumulated Depreciation Schedule III - Real Estate and Accumulated Depreciation

12 Months Ended

Dec. 31, 2013

Schedule III - Real Estate and Accumulated Depreciation [Abstract]

Schedule III - Real Estate and Accumulated Depreciation [Text Block]

NATIONAL HEALTH INVESTORS, INC.
SCHEDULE III - REAL ESTATE AND ACCUMULATED DEPRECIATION
December 31, 2013
(in thousands)
				Costs	Gross Amount at Which
		Initial Cost to Company		Capitalized	Carried at Close of Period				Date
			Buildings &	Subsequent to		Buildings &		Accumulated	Acquired/
	Encumbrances	Land	Improvements	Acquisition	Land	Improvements	Total	Depreciation	Constructed
Skilled Nursing Facilities
Anniston, AL	—	70	4,476	—	70	4,476	4,546	3,132	10/17/1991
Moulton, AL	—	25	688	—	25	688	713	688	10/17/1991
Avondale, AZ	—	453	6,678	—	453	6,678	7,131	3,073	8/13/1996
Brooksville, FL	—	1,217	16,166	—	1,217	16,166	17,383	1,583	2/1/2010
Crystal River, FL	—	912	12,117	—	912	12,117	13,029	1,186	2/1/2010
Dade City, FL	—	605	8,042	—	605	8,042	8,647	787	2/1/2010
Hudson, FL (2 facilities)	—	1,290	22,392	—	1,290	22,392	23,682	8,398	Various
Merritt Island, FL	—	701	8,869	—	701	8,869	9,570	6,351	10/17/1991
New Port Richey, FL	—	228	3,023	—	228	3,023	3,251	296	2/1/2010
Plant City, FL	—	405	8,777	—	405	8,777	9,182	6,495	10/17/1991
Stuart, FL	—	787	9,048	—	787	9,048	9,835	6,541	10/17/1991
Trenton, FL	—	851	11,312	—	851	11,312	12,163	1,108	2/1/2010
Grangeville, ID	—	122	2,491	—	122	2,491	2,613	1,163	8/13/1996
Glasgow, KY	—	33	2,110	—	33	2,110	2,143	1,850	10/17/1991
Greenfield, MA	—	370	4,341	—	370	4,341	4,711	38	8/30/2013
Holyoke, MA	—	110	943	—	110	943	1,053	9	8/30/2013
Quincy, MA	—	450	710	—	450	710	1,160	6	8/30/2013
Taunton, MA	—	900	5,906	—	900	5,906	6,806	52	8/30/2013
Desloge, MO	—	178	3,804	—	178	3,804	3,982	2,871	10/17/1991
Joplin, MO	—	175	4,034	—	175	4,034	4,209	2,404	10/17/1991
Kennett, MO	—	180	4,928	—	180	4,928	5,108	3,783	10/17/1991
Maryland Heights, MO	—	482	5,512	—	482	5,512	5,994	4,766	10/17/1991
St. Charles, MO	—	150	4,790	—	150	4,790	4,940	3,618	10/17/1991
Manchester, NH	—	790	20,077	—	790	20,077	20,867	173	8/30/2013
Epsom, NH	—	630	2,191	—	630	2,191	2,821	20	8/30/2013
Anderson, SC	—	308	4,643	—	308	4,643	4,951	3,894	10/17/1991
Greenwood, SC	—	222	3,457	—	222	3,457	3,679	2,861	10/17/1991
Laurens, SC	—	42	3,426	—	42	3,426	3,468	2,610	10/17/1991
Orangeburg, SC	—	300	3,715	—	300	3,715	4,015	537	9/25/2008
Athens, TN	—	38	1,463	—	38	1,463	1,501	1,305	10/17/1991
Chattanooga, TN	—	143	2,309	—	143	2,309	2,452	1,990	10/17/1991
Dickson, TN	—	90	3,541	—	90	3,541	3,631	2,732	10/17/1991
Franklin, TN	—	47	1,130	—	47	1,130	1,177	924	10/17/1991
Hendersonville, TN	—	363	3,837	—	363	3,837	4,200	2,569	10/17/1991
Johnson City, TN	—	85	1,918	—	85	1,918	2,003	1,751	10/17/1991
Lewisburg, TN (2 facilities)	—	46	994	—	46	994	1,040	914	10/17/1991

NATIONAL HEALTH INVESTORS, INC.
SCHEDULE III - REAL ESTATE AND ACCUMULATED DEPRECIATION
December 31, 2013
(in thousands)
				Costs	Gross Amount at Which
		Initial Cost to Company		Capitalized	Carried at Close of Period				Date
			Buildings &	Subsequent to		Buildings &		Accumulated	Acquired/
	Encumbrances	Land	Improvements	Acquisition	Land	Improvements	Total	Depreciation	Constructed
McMinnville, TN	—	73	3,618	—	73	3,618	3,691	2,739	10/17/1991
Milan, TN	—	41	1,826	—	41	1,826	1,867	1,501	10/17/1991
Pulaski, TN	—	53	3,921	—	53	3,921	3,974	2,987	10/17/1991
Lawrenceburg, TN	—	98	2,901	—	98	2,901	2,999	2,058	10/17/1991
Dunlap, TN	—	35	3,679	—	35	3,679	3,714	2,549	10/17/1991
Smithville, TN	—	35	3,816	—	35	3,816	3,851	2,823	10/18/1991
Somerville, TN	—	26	678	—	26	678	704	621	10/19/1991
Sparta, TN	—	80	1,602	—	80	1,602	1,682	1,268	10/20/1991
Canton, TX	—	420	12,330	—	420	12,330	12,750	273	4/18/2013
Corinth, TX	—	1,075	13,935	—	1,075	13,935	15,010	332	4/18/2013
Ennis, TX	—	986	9,025	—	986	9,025	10,011	694	10/31/2011
Greenville, TX	—	1,800	13,948	—	1,800	13,948	15,748	964	10/31/2011
Houston, TX (5 facilities)	—	3,818	63,921	—	3,818	63,921	67,739	8,308	Various
Kyle, TX	—	1,096	12,279	—	1,096	12,279	13,375	683	6/11/2012
Mesquite, TX	—	180	6,162	—	180	6,162	6,342	2,223	9/1/1998
Paris, TX	—	60	12,040	—	60	12,040	12,100	1,650	6/30/2009
San Antonio, TX	—	300	12,150	—	300	12,150	12,450	1,807	6/30/2009
Bristol, VA	—	176	2,511	—	176	2,511	2,687	1,903	10/17/1991
	—	24,150	384,200	—	24,150	384,200	408,350	117,861
Assisted Living Facilities
Rainbow City, AL	—	670	11,330	—	670	11,330	12,000	82	10/31/2013
Gilbert, AZ	—	451	3,142	79	451	3,221	3,672	1,190	12/31/1998
Glendale, AZ	—	387	3,823	57	387	3,880	4,267	1,444	12/31/1998
Tucson, AZ (2 facilities)	—	919	6,656	190	919	6,846	7,765	2,516	12/31/1998
Bartow, FL	—	225	3,192	—	225	3,192	3,417	299	11/30/2010
Lakeland, FL	—	250	3,167	—	250	3,167	3,417	298	11/30/2010
Maitland, FL	—	1,687	5,428	—	1,687	5,428	7,115	2,652	8/6/1996
St. Cloud, FL	—	307	3,117	—	307	3,117	3,424	293	11/30/2010
Greensboro, GA	—	572	4,849	—	572	4,849	5,421	312	9/15/2011
Ames, IA(C)	80,080	360	4,670	—	360	4,670	5,030	65	6/28/2013
Burlington, IA(C)	—	200	8,374	—	200	8,374	8,574	119	6/28/2013
Cedar Falls, IA	—	260	4,700	—	260	4,700	4,960	69	6/28/2013
Clinton, IA	—	133	3,215	—	133	3,215	3,348	304	6/30/2010
Ft. Dodge, IA(C)	—	100	7,208	—	100	7,208	7,308	99	6/28/2013
Iowa City, IA	—	297	2,725	—	297	2,725	3,022	296	6/30/2010
Marshalltown, IA(C)	—	240	6,208	—	240	6,208	6,448	87	6/28/2013
Muscatine, IA(C)	—	140	1,802	—	140	1,802	1,942	27	6/28/2013

NATIONAL HEALTH INVESTORS, INC.
SCHEDULE III - REAL ESTATE AND ACCUMULATED DEPRECIATION
December 31, 2013
(in thousands)
				Costs	Gross Amount at Which
		Initial Cost to Company		Capitalized	Carried at Close of Period				Date
			Buildings &	Subsequent to		Buildings &		Accumulated	Acquired/
	Encumbrances	Land	Improvements	Acquisition	Land	Improvements	Total	Depreciation	Constructed
Urbandale, IA(C)	—	540	4,292	—	540	4,292	4,832	64	6/28/2013
Weiser, ID	—	20	2,433	—	20	2,433	2,453	64	12/21/2012
Bourbonnais, IL(C)	—	170	16,594	—	170	16,594	16,764	231	6/28/2013
Moline, IL(C)	—	250	5,630	—	250	5,630	5,880	80	6/28/2013
Peoria, IL	—	403	4,532	—	403	4,532	4,935	502	10/19/2009
Quincy, IL(C)	—	360	12,403	—	360	12,403	12,763	171	6/28/2013
Rockford, IL(C)	—	390	12,576	—	390	12,576	12,966	180	6/28/2013
Springfield, IL(C)	—	450	19,355	—	450	19,355	19,805	269	6/28/2013
Carmel, IN	—	579	2,133	—	579	2,133	2,712	—	Under Const.
Crawfordsville, IN(C)	—	300	3,134	—	300	3,134	3,434	46	6/28/2013
Crown Point, IN	—	791	7,020	—	791	7,020	7,811	20	10/30/2013
Greenwood, IN	—	463	6,810	—	463	6,810	7,273	18	11/7/2013
Lafayette, IN	—	546	4,583	—	546	4,583	5,129	430	6/30/2010
Wabash, IN	—	320	2,242	—	320	2,242	2,562	37	6/28/2013
Overland Park, KS	—	2,199	20,026	—	2,199	20,026	22,225	881	9/30/2012
Mission, KS	—	1,901	17,310	—	1,901	17,310	19,211	761	9/30/2012
Bastrop, LA	—	325	2,456	—	325	2,456	2,781	211	4/30/2011
Bossier City, LA	—	500	3,344	—	500	3,344	3,844	301	4/30/2011
Minden, LA	—	280	1,698	—	280	1,698	1,978	145	4/30/2011
West Monroe, LA	—	770	5,627	—	770	5,627	6,397	454	4/30/2011
Baltimore, MD	—	860	8,078	—	860	8,078	8,938	37	10/31/2013
Battle Creek, MI	—	398	3,093	—	398	3,093	3,491	356	10/19/2009
Lansing, MI	—	340	7,908	—	340	7,908	8,248	898	10/19/2009
Midland, MI	—	504	6,612	—	504	6,612	7,116	718	10/19/2009
Saginaw, MI	—	248	4,212	—	248	4,212	4,460	474	10/19/2009
Champlin, MN	—	980	4,430	—	980	4,430	5,410	509	3/10/2010
Hugo, MN	—	400	3,800	—	400	3,800	4,200	422	3/10/2010
Maplewood, MN	—	1,700	6,510	—	1,700	6,510	8,210	742	3/10/2010
North Branch, MN	—	595	2,985	—	595	2,985	3,580	371	3/10/2010
Grand Island, NE	—	370	5,029	—	370	5,029	5,399	71	6/28/2013
Lincoln, NE(C)	—	380	10,904	—	380	10,904	11,284	149	6/28/2013
Omaha, NE(C)	—	480	7,039	—	480	7,039	7,519	97	6/28/2013
Marysville, OH	—	1,250	13,950	—	1,250	13,950	15,200	212	7/1/2013
Ontario, OR (2 facilities)	—	428	6,128	—	428	6,128	6,556	162	12/21/2012
Conway, SC	—	344	2,877	94	344	2,971	3,315	1,095	12/31/1998
Gallatin, TN	—	326	2,277	61	326	2,338	2,664	861	3/31/1999
Kingsport, TN	—	354	2,568	66	354	2,634	2,988	973	12/31/1998
Tullahoma, TN	—	191	2,216	57	191	2,273	2,464	825	3/31/1999

NATIONAL HEALTH INVESTORS, INC.
SCHEDULE III - REAL ESTATE AND ACCUMULATED DEPRECIATION
December 31, 2013
(in thousands)
				Costs	Gross Amount at Which
		Initial Cost to Company		Capitalized	Carried at Close of Period				Date
			Buildings &	Subsequent to		Buildings &		Accumulated	Acquired/
	Encumbrances	Land	Improvements	Acquisition	Land	Improvements	Total	Depreciation	Constructed
Beaver Dam, WI	—	210	20,149	—	210	20,149	20,359	581	12/21/2012
	80,080	29,113	358,569	604	29,113	359,173	388,286	24,570
Independent Living Facilities
Rogers, AR	—	1,470	26,641	—	1,470	26,641	28,111	—	12/23/2013
Fort Smith, AR	—	590	22,002	—	590	22,002	22,592	—	12/23/2013
Pinole, CA	—	1,020	18,055	—	1,020	18,055	19,075	—	12/23/2013
West Covina, CA	—	940	20,144	—	940	20,144	21,084	—	12/23/2013
Hemet, CA	—	1,250	12,802	—	1,250	12,802	14,052	—	12/23/2013
Fresno, CA	—	420	11,628	—	420	11,628	12,048	—	12/23/2013
Merced, CA	—	350	18,226	—	350	18,226	18,576	—	12/23/2013
Roseville, CA	—	630	30,497	—	630	30,497	31,127	—	12/23/2013
Modesto, CA	—	1,170	21,922	—	1,170	21,922	23,092	—	12/23/2013
Athens, GA	—	910	32,225	—	910	32,225	33,135	—	12/23/2013
Columbus, GA	—	570	9,469	—	570	9,469	10,039	—	12/23/2013
Savannah, GA	—	1,200	16,368	—	1,200	16,368	17,568	—	12/23/2013
Boise, ID	—	400	12,652	—	400	12,652	13,052	—	12/23/2013
Fort Wayne, IN	—	310	13,747	—	310	13,747	14,057	—	12/23/2013
Kenner, LA	—	310	26,803	—	310	26,803	27,113	—	12/23/2013
St. Charles, MO	—	344	3,181	—	344	3,181	3,525	2,229	10/17/1991
Voorhees, NJ	—	670	22,926	—	670	22,926	23,596	—	12/23/2013
Gahanna, OH	—	920	23,176	—	920	23,176	24,096	—	12/23/2013
Broken Arrow, OK	—	2,660	18,416	—	2,660	18,416	21,076	—	12/23/2013
Newberg, OR	—	1,080	18,999	—	1,080	18,999	20,079	—	12/23/2013
Myrtle Beach, SC	—	1,310	25,295	—	1,310	25,295	26,605	—	12/23/2013
Greenville, SC	—	560	16,508	—	560	16,508	17,068	—	12/23/2013
Johnson City, TN	—	55	4,077	—	55	4,077	4,132	2,492	10/17/1991
Chattanooga, TN	—	9	1,567	—	9	1,567	1,576	1,112	10/17/1991
Bellevue, WA	—	780	17,794	—	780	17,794	18,574	—	12/23/2013
Vancouver, WA (2 facilities)	—	1,740	21,850	—	1,740	21,850	23,590	—	12/23/2013
Yakima, WA	—	440	13,114	—	440	13,114	13,554	—	12/23/2013
	—	22,108	480,084	—	22,108	480,084	502,192	5,833
Senior Living Campuses
Loma Linda, CA	—	1,200	10,800	—	1,200	10,800	12,000	381	9/28/2012
Nampa, ID	—	243	4,182	—	243	4,182	4,425	1,931	8/13/1996
Maitland, FL	—	2,317	9,161	—	2,317	9,161	11,478	5,218	8/6/1996
West Palm Beach, FL	—	2,771	4,286	—	2,771	4,286	7,057	3,579	8/6/1996

NATIONAL HEALTH INVESTORS, INC.
SCHEDULE III - REAL ESTATE AND ACCUMULATED DEPRECIATION
December 31, 2013
(in thousands)
				Costs	Gross Amount at Which
		Initial Cost to Company		Capitalized	Carried at Close of Period				Date
			Buildings &	Subsequent to		Buildings &		Accumulated	Acquired/
	Encumbrances	Land	Improvements	Acquisition	Land	Improvements	Total	Depreciation	Constructed
Silverdale, WA	—	1,750	23,860	2,166	1,750	26,026	27,776	906	8/16/2012
	—	8,281	52,289	2,166	8,281	54,455	62,736	12,015
Medical Office Buildings
Crestview, FL	—	165	3,349	—	165	3,349	3,514	2,131	6/30/1993
Pasadena, TX	—	631	6,341	—	631	6,341	6,972	4,170	1/1/1995
	—	796	9,690	—	796	9,690	10,486	6,301
Hospitals
La Mesa, CA	—	4,180	8,320	—	4,180	8,320	12,500	1,175	3/10/2010
Jackson, KY	—	540	10,163	5,838	540	16,001	16,541	5,813	6/12/1992
Murfreesboro, TN	—	2,444	17,585	—	2,444	17,585	20,029	548	10/1/2012
	—	7,164	36,068	5,838	7,164	41,906	49,070	7,536
Total continuing operations properties	80,080	91,612	1,320,900	8,608	91,612	1,329,508	1,421,120	174,116
Corporate office	—	158	677	47	158	724	882	146
	80,080	91,770	1,321,577	8,655	91,770	1,330,232	1,422,002	174,262

NOTES TO SCHEDULE III - REAL ESTATE AND ACCUMULATED DEPRECIATION

(A) See the notes to the consolidated financial statements.

(B) Depreciation is calculated using estimated useful lives up to 40 years for all completed facilities.

(C) These properties are encumbered by a mortgage with an outstanding balance of $80,080,000 at December 31, 2013.

(D) Subsequent to NHC's transfer of the original real estate properties in 1991, we have purchased from NHC $33,909,000 of additions to those properties. As the additions were purchased from NHC rather than developed by us, the $33,909,000 has been included as Initial Cost to Company.

(E) At December 31, 2013, the tax basis of the Company's net real estate assets was $1,416,573.

NATIONAL HEALTH INVESTORS, INC.
SCHEDULE III - REAL ESTATE AND ACCUMULATED DEPRECIATION
FOR THE YEARS ENDED DECEMBER 31, 2013, 2012 AND 2011
(in thousands)
	December 31,
	2013			2012			2011
Investment in Real Estate:
Balance at beginning of period	$	698,536		$	541,493		$	463,197
Additions through cash expenditures	654,670			110,601			75,806
Additions through increase in accounts payable	3,086			—			—
Additions through contingent liabilities	1,600			—			5,478
Additions through assumption of debt	80,528			19,250			—
Additions through conveyance of noncontrolling interest	—			10,964			—
Additions through settlement of mortgage note	13,741			—			—
Sale of properties for cash	(30,159		)	(17,259		)	(2,988		)
Reclassification from assets held for sale, net	—			39,323			—
Reclassification to assets held for sale, net	—			(5,836		)	—
Balance at end of period	$	1,422,002		$	698,536		$	541,493
Accumulated Depreciation:
Balance at beginning of period	$	163,146		$	146,698		$	135,543
Addition charged to costs and expenses	20,658			16,981			11,992
Sale of properties	(9,542		)	(6,250		)	(837		)
Reclassification from assets held for sale, net	—			9,942			—
Reclassification to assets held for sale	—			(4,225		)	—
Balance at end of period	$	174,262		$	163,146		$	146,698

XML

Investment In Preferred Stock, At Cost (Details) (USD $)	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Investment income and other	$ 4,166,000	$ 4,409,000	$ 4,479,000
Investment in cumulative preferred stock of LTC properties	2,000,000
Original cost of cost method investments	38,132,000
Nonvoting Convertible Preferred Stock	2,000,000
Closing Price Of LTC's Common Stock	$ 35.39
Preferred Stock, Dividend Rate, Percentage	8.50%
Preferred Stock, Liquidation Preference Per Share	$ 19.25
Preferred Dividends [Member]
Investment income and other	$ 3,273,000	$ 3,272,500

XML

Real Estate (New Real Estate Investments) (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2013
Real Estate Investments During The Period	$ 739,885
Senior Housing Community [Member] | Holiday Acquisition Holdings [Member]
Number Of Real Estate Properties Acquired	25
Real Estate Investments During The Period	492,959
Senior Housing Community [Member] | Bickford Senior Living [Member]
Number Of Real Estate Properties Acquired	17
Real Estate Investments During The Period	137,459
Senior Housing Community [Member] | Chancellor Healthcare [Member]
Number Of Real Estate Properties Acquired	2
Real Estate Investments During The Period	17,000
Senior Housing Community [Member] | Emeritus Senior Living [Member]
Number Of Real Estate Properties Acquired	1
Real Estate Investments During The Period	15,300
Senior Housing Community [Member] | Discovery Senior Living [Member]
Number Of Real Estate Properties Acquired	1
Real Estate Investments During The Period	12,000
Skilled Nursing Facility [Member] | Fundamental Long Term Care Holdings [Member]
Number Of Real Estate Properties Acquired	2
Real Estate Investments During The Period	27,750
Skilled Nursing Facility [Member] | National Healthcare Corporation [Member]
Number Of Real Estate Properties Acquired	7
Real Estate Investments During The Period	$ 37,417

XML

Consolidated Statements of Comprehensive Income (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Statement of Comprehensive Income [Abstract]
Net income	$ 107,182	$ 90,898	$ 81,132
Other comprehensive income (loss):
Change in unrealized gains on securities	(234)	1,645	1,750
Less: reclassification adjustment for gains in net income	0	(30)	(9,899)
Decrease in fair value of cash flow hedge	3,563	(1,017)	0
Less: reclassification adjustment for amounts recognized in net income	(1,346)	(224)	0
Total other comprehensive income (loss)	1,983	374	(8,149)
Comprehensive income	109,165	91,272	72,983
Less: comprehensive income attributable to noncontrolling interest	(999)	(167)	0
Comprehensive income attributable to common stockholders	$ 108,166	$ 91,105	$ 72,983

XML

Real Estate

12 Months Ended

Dec. 31, 2013

Real Estate [Abstract]

Real Estate Disclosure [Text Block]

REAL ESTATE

As of December 31, 2013, we owned 157 health care real estate properties located in 30 states and consisting of 91 senior housing communities, 61 skilled nursing facilities, 3 hospitals and 2 medical office buildings. Our senior housing properties include assisted living facilities, independent living facilities, and senior living campuses. These investments (excluding our corporate office of $882,000) consisted of properties with an original cost of approximately $1,421,120,000, rented under triple-net leases to 23 lessees.

Acquisitions and New Leases of Real Estate

During the year ended December 31, 2013, we made the following real estate investments and commitments as described below (dollars in thousands):

Operator	Properties	Asset Class	Amount
Holiday Acquisition Holdings LLC	25	Senior Housing	$	492,959
Bickford Senior Living/RIDEA Structure	17	Senior Housing	137,459
National Healthcare Corporation	7	Skilled Nursing	37,417
Fundamental Long Term Care Holdings, LLC	2	Skilled Nursing	27,750
Chancellor Health Care, LLC	2	Senior Housing	17,000
Emeritus Senior Living	1	Senior Housing	15,300
Discovery Senior Living	1	Senior Housing	12,000
			$	739,885

Holiday

In December 2013 we acquired 25 independent living facilities from Holiday Acquisition Holdings LLC (“Holiday”), an affiliate of Holiday Retirement, for $491,000,000 plus transaction costs of $1,959,000. Because the Holiday facilities were owner operated, we accounted for the transaction as an asset purchase. The total purchase price was allocated to the assets acquired based upon their relative fair values, preliminarily estimated as $21,700,000 to land and $471,259,000 to buildings and improvements. No intangibles were identified in the acquisition. Such allocations have not been finalized as we await conclusive asset valuations and, as such, the results of the allocation are preliminary and subject to adjustment. This portfolio is located in 12 states from New Jersey to California. We have leased this portfolio to NH Master Tenant, LLC, a subsidiary of Holiday, who continues to operate the facilities pursuant to a management agreement with a Holiday-affiliated manager.

The Master Lease term of 17 years began in December 2013 and provides for initial base rent of $31,915,000 plus annual escalators of 4.5% in the first 3 years and a minimum of 3.5% each year thereafter. Because the facilities were owner-occupied, we accounted for the acquisition as an asset purchase. Holiday's obligations to us under the master lease are guaranteed by its indirect parent, Holiday AL Holdings, LP.

We funded this acquisition with proceeds of a $250,000,000 term loan described in Note 7 to the consolidated financial statements and proceeds from the sale of 5,175,000 shares of our common stock having net proceeds of $282,542,000, after deducting $12,500,000 in underwriting discounts, commissions and other offering expenses.

Bickford

As of December 31, 2013, we owned an 85% equity interest and an affiliate of Bickford Senior Living ("Bickford") owned a 15% equity interest in our consolidated subsidiary ("PropCo") which owns 29 assisted living/memory care facilities and also has 1 facility under construction. The facilities are leased to an operating company, ("OpCo"), in which we also retain an 85% ownership interest, but do not control. Our joint venture is structured to comply with the provisions of RIDEA.

On June 28, 2013, PropCo purchased 17 assisted living and memory care facilities which were managed by Bickford. The facilities total 750 units and are located in Illinois, Indiana, Iowa and Nebraska. Of these facilities, 14 were acquired from a subsidiary of Care Investment Trust, Inc. ("Care") for $124,549,000, consisting of $44,021,000 in cash and assumption of secured debt with a fair value of $80,528,000. PropCo accounted for acquisition of the 100% interest in the real estate operations of these facilities using the acquisition method as prescribed by ASC Topic 805. As part of this transaction, we recognized all identifiable tangible assets and liabilities assumed at fair value at the date of acquisition (there were no identifiable intangible assets or liabilities assumed) and attributed $4,360,000 to the fair value of the land, $120,189,000 to the fair value of the buildings and improvements and expensed $63,000 in transaction costs at closing. The 14 newly-acquired facilities have been leased to OpCo for an initial term of 5 years at an aggregate annual lease amount of $9,750,000 plus annual fixed escalators commencing on July 1 of each succeeding year.

Concurrent with this acquisition, PropCo also completed a $12,910,000 purchase and leaseback of three assisted living facilities located in Iowa, Nebraska and Indiana totaling 107 units from affiliates of Bickford. The acquisition was accounted for as an asset purchase. PropCo's previous master lease with Bickford was amended to include these three properties and the annual lease amount was increased from $7,750,000 to $9,086,000, plus annual fixed escalators beginning January 1 of each succeeding year. All other significant terms of the existing master lease remain unchanged.

As described above, the current annual contractual rent from OpCo to PropCo is $18,836,000, plus fixed annual escalators. During the quarter ended December 31, 2013, PropCo completed major construction and received certificates of occupancy on two assisted living facilities which were under development. Under the terms of the current development lease agreement, NHI continues to receive rent of 9% on the total amount of development costs, including land, which totaled $17,796,000 at December 31, 2013.

Of our total revenue from continuing operations, $14,586,000 (12%), $5,164,000 (6%) and $4,235,000 (5%) were recorded as rental income from Bickford for the years ended December 31, 2013, 2012, and 2011, respectively.

NHI has an exclusive right to Bickford's future acquisitions, development projects and refinancing transactions. At December 31, 2013, PropCo had purchased land and begun construction on one assisted living/memory care facility having a maximum cost of $9,000,000. Our costs incurred to date, including land, were $2,712,000.

For the 14 Care properties acquired in a business combination and discussed above, the unaudited pro forma revenue, net income and net income available to common stockholders of the combined entity is provided below had the acquisition date been January 1, 2012 (in thousands):

	2013		2012
Revenue	$	122,923	$	103,670
Net income	$	103,943	$	91,515
Net income available to common stockholders	$	103,869	$	91,397
Basic earnings per common share	$	3.66	$	3.29
Diluted earnings per common share	$	3.66	$	3.28

Supplemental pro forma information above includes revenues from the newly executed lease with OpCo, recognized on a straight-line basis, depreciation, and appropriate interest costs.

Our revenue from continuing operations and our net income include $5,258,000 and $363,000, respectively, from the 14 Care properties for the year ended December 31, 2013.

NHC

Of our total revenue from continuing operations, $34,756,000 (29%), $33,056,000 (35%) and $32,619,000 (39%) in 2013, 2012 and 2011, respectively, were derived from National HealthCare Corporation (“NHC”), a publicly-held company and the lessee of our legacy properties. At December 31, 2013, we leased 42 health care facilities to NHC consisting of 3 independent living facilities and 39 skilled nursing facilities (4 of which are subleased to other parties for whom the lease payments are guaranteed to us by NHC). The master lease agreement with NHC originally dated October 17, 1991, has since been amended to extend the lease expiration 5 years to December 31, 2026. There are two additional 5-year renewal options, each at fair rental value of such leased property as negotiated between the parties and determined without including the value attributable to any improvements to the leased property voluntarily made by NHC at its expense. Under the terms of the lease, rent escalates by 4% of the increase, if any, in each facility's revenue over a 2007 base year. We refer to this additional rent component as “percentage rent.”

The following table summarizes the percentage rent received and recognized from NHC (in thousands):

	Year Ended December 31,
	2013		2012		2011
Current year	$	2,275	$	1,530	$	1,530
Prior year final certification1	746		997		560
Total percentage rent	$	3,021	$	2,527	$	2,090

¹ For purposes of the percentage rent calculation described in the Master Lease Agreement, NHC’s annual revenue by facility for a given year is certified to NHI by March 31st of the following year.

In December 2012 NHI entered into an agreement with NHC to sell six skilled nursing facilities for $21,000,000 in cash. The properties had a carrying value of $1,611,000. The sale was completed on August 31, 2013, and resulted in a gain for financial statement purposes of $19,370,000 after transaction costs of $19,000. We plan to defer recognition of the tax gain on the sale of these facilities by utilizing the like-kind exchange rules under Section 1031 of the Internal Revenue Code. The results of operation of the facilities sold were classified as discontinued operations for all periods presented in our Consolidated Statements of Income. Upon the sale of these facilities and prior to the acquisition described below, NHI's annual base rent of $33,700,000 was reduced to $30,750,000.

On August 30, 2013, NHI acquired seven skilled nursing facilities (and one vacant assisted living facility) in Massachusetts and New Hampshire from former not-for-profit borrower ElderTrust of Florida, Inc. (“ElderTrust”) for consideration of $37,417,000 consisting of $23,676,000 in cash, inclusive of closing costs, and the cancellation of notes receivable from ElderTrust with a principal balance of $13,741,000. Beginning September 1, 2013, the facilities were placed under a new triple net lease to the current manager, NHC, for a period of 15 years commencing with a lease amount of $350,000 for the remainder of 2013. In 2014, the lease provides for a base annual rental of $3,450,000. Under the terms of the lease, rent escalates 4% of the increase in each facility's revenue over the 2014 base year. Because ElderTrust was the owner and operator of the facilities, we accounted for the transaction as an asset purchase. During the last three years of the lease, NHC will have the option to purchase the facilities for $49,000,000.

Fundamental

In April 2013, we completed the purchase of two skilled nursing facilities located in Canton and Corinth, Texas for a purchase price of $26,150,000 in cash, plus consideration related to the Corinth facility of $1,600,000 conditional upon the achievement of certain operating metrics, which continued to be probable as of December 31, 2013. The facilities, which total 254 beds, have been leased to affiliates of Fundamental Long Term Care Holdings, LLC (“Fundamental”) for an initial term of 10 years at a lease rate of 9% plus annual fixed escalators. The lease includes three5-year renewal options at the terms which exist upon renewal. Because the Corinth facility was owner-operated, the acquisition of the Corinth facility was accounted for as an asset purchase.

Because Fundamental was the current lessee, we accounted for acquisition of the 100% interest in the real estate operation of the Canton facility using the acquisition method as prescribed by FASB Topic 805, Business Combinations ("ASC Topic 805"). As part of this transaction, we recognized all identifiable tangible assets at fair value at the date of acquisition (there were no identifiable intangible assets or liabilities assumed) and attributed $420,000 of the purchase price to the fair value of the land, $11,659,000 to the fair value of building and improvements, $671,000 to the fair value of equipment and expensed $147,000 in transaction costs which were paid at closing.

In December 2013, we sold three older skilled nursing facilities to affiliates of our current tenant, Fundamental, for $18,500,000. The properties had a carrying value of $17,068,000. We plan to defer recognition of the tax gain on the sale of these facilities by utilizing the like-kind exchange rules under Section 1031 of the internal Revenue Code. Our lease revenue from these facilities was $3,316,000, $3,231,000, and $3,067,000 for the years endedDecember 31, 2013, 2012, and 2011, respectively.

Chancellor

In October 2013, we completed a $9,000,000 acquisition of a 63-unit senior housing community in Baltimore, Maryland, and leased the facility to Chancellor Health Care, LLC for an initial term of seven years, plus renewal options. The lease rate in the first year is 8% plus a fixed annual escalator. Because the facility was owner-occupied, we accounted for the acquisition as an asset purchase. We also committed to provide up to $500,000 for renovations and improvements which will be added to the basis on which the lease amount is calculated.

Additionally, we have committed $7,500,000 to build a 46-unit free-standing assisted living and memory care community, expanding our Linda Valley senior living campus in Loma Linda, California. The initial lease term is for 15 years at an annual rate of 9% plus a fixed annual escalator. NHI purchased the Linda Valley campus in 2012 and leased it to Chancellor Health Care, who has been operating the campus since 1993.

Emeritus

In July 2013 we completed a $15,300,000 acquisition of The Inn at Halcyon Village in Marysville, Ohio ("Halcyon"). The 76-unit assisted living and memory care community is leased to Emeritus Senior Living for an initial term of 15 years with an option to extend. Rent in the first year of the lease will be $1,140,000. Annual fixed escalators begin in the third lease year. Because Halcyon was owner-operated, we accounted for the acquisition as an asset purchase.

Discovery

In September 2013 we completed a $12,000,000 acquisition of Regency Pointe Retirement Community in Rainbow City, Alabama. The 120-unit senior housing community is leased to Discovery Senior Living ("Discovery") for an initial term of 15 years, with three5-year renewal options. Rent in the first year of the lease is $942,000 plus annual fixed escalators thereafter. As a lease inducement, upon achieving certain operating metrics, Discovery will be eligible over years two, three and four of the lease for contingent payments totaling up to $2,500,000 which, if paid, will be amortized as an adjustment to rental income over the remaining lease term. As of December 31, 2013, the likelihood that we would incur the contingent payments was not considered probable. Accordingly, no provision for these payments is reflected in the consolidated financial statements. Because Regency Pointe was owner-operated, we accounted for the acquisition as an asset purchase.

Disposition

In October 2013, our current tenant, Weatherly Associates, LLC, exercised their option to purchase a senior housing facility in Pennsylvania for $5,315,000. The property had a carrying value of $3,591,000. We plan to defer recognition of the tax gain on the sale of this facility by utilizing the like-kind exchange rules under Section 1031 of the Internal Revenue Code. Our lease revenue from the facility was $353,000, $403,000, and $403,000 for the years endedDecember 31, 2013, 2012, and 2011, respectively.

Future Minimum Lease Payments

At December 31, 2013, the future minimum lease payments (excluding percentage rent) to be received by us under our operating leases with our tenants are as follows (in thousands):

2014	$	137,717
2015	135,704
2016	135,453
2017	134,419
2018	122,562
Thereafter	1,164,051
	$	1,829,906

XML

Share-Based Compensation Share-Based Compensation (Schedule of Stock Option Valuation Assumptions) (Details)	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Schedule of Stock Option Valuation Assumptions [Abstract]
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate	4.50%	6.00%	5.90%
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate	23.80%	32.00%	4.60%
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term	2 years 9 months 14 days	3 years 10 months 9 days	3 years 10 months 9 days
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate	0.35%	0.32%	1.11%

XML

Fair Value of Financial Instruments (Liabilities Measured on a Recurring Basis, Unobservable Input Reconciliation) (Details) (USD $)	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Earnings	$ 0	$ 0
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Transfers Into Level 3	0	0
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Gain (Loss) Included in Earnings	0	0
Cash Paid In Settlement Of Contingent Purchase Consideration Liability		(2,222,000)
Gain on purchase liability settlement	(3,256,000)	0	0
Fair Value, Inputs, Level 3 [Member]
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Business Combination, Contingent Consideration, Liability	$ 0	$ 3,256,000	$ 5,478,000

XML

Schedule IV - Mortgage Loans on Real Estate Schedule IV - Mortgage Loans on Real Estate

12 Months Ended

Dec. 31, 2013

Schedule IV - Mortgage Loans on Real Estate [Abstract]

Mortgage Loans on Real Estate, by Loan Disclosure [Text Block]

NATIONAL HEALTH INVESTORS, INC.
SCHEDULE IV - MORTGAGE LOANS ON REAL ESTATE
December 31, 2013
			Monthly						Amount Subject To
	Interest	Maturity	Payment	Prior	Original		Carrying		Delinquent Principal
	Rate	Date	Terms	Liens	Face Amount		Amount		or Interest
					(in thousands)
First Mortgages:
Skilled nursing facilities:
Grundy, VA	8.0%	2032	$31,000		$	4,396	$	3,172
Virginia Beach, VA	8.0%	2031	$31,000		3,814		2,867
Lexington, VA	8.0%	2032	$21,000		3,089		2,035
Brookneal, VA	8.0%	2031	$21,000		2,780		2,007
Laurel Fork, VA	8.0%	2030	$20,000		2,672		1,948
Front Royal, VA	9.6%	2027	$22,000		2,367		1,645
Assisted living facility in Owatonna, MN	7.5%	2018	$38,000		5,033		3,713
Construction Loan:
Transitional rehabilitation center in Mesa, Arizona	10.0%	2015	Interest Only		13,870		11,870
Second Mortgages:
Skilled nursing facility in Georgetown, TX	14.0%	2015	Interest Only		1,000		1,000
Assisted living facilities:
Ocala, FL	13.0%	2014	Interest Only		2,500		2,500
Naples, FL	12.0%	2016	Interest Only		2,500		1,369
Assisted living facility with carrying amount less than 3% of total carrying amount of mortgages	12.0%	2014					800
							$	34,926	$	—

See the notes to our consolidated financial statements for more information on our mortgage loan receivables.

NATIONAL HEALTH INVESTORS, INC.
SCHEDULE IV - MORTGAGE LOANS ON REAL ESTATE
FOR THE YEARS ENDED DECEMBER 31, 2013, 2012 AND 2011
(in thousands)
	December 31,
	2013		2012		2011
Reconciliation of mortgage loans on real estate
Balance at beginning of period	$	68,214	$	78,672	$	75,465
Additions:
New mortgage loans	1,369		—		6,566
Interest accrued on construction loan	—		—		1,082
Total Additions	1,369		—		7,648
Deductions:
Settlement of mortgage note by real estate acquisition	13,741		—		—
Impairment of mortgage note	4,037		2,300		—
Collection of principal, less recoveries of previous write-downs	16,879		8,158		4,441
Total Deductions	34,657		10,458		4,441
Balance at end of period	$	34,926	$	68,214	$	78,672

XML

Schedule II - Valuation and Qualifying Accounts Schedule II - Valuation and Qualifying Accounts (Details) (USD $)	3 Months Ended	12 Months Ended
	Mar. 31, 2013	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Schedule II - Valuation and Qualifying Accounts [Abstract]
Valuation Allowances and Reserves, Balance, January 1	$ 0	$ 0	$ 0
Valuation Allowances and Reserves, Charged to Cost and Expense		0	0
Valuation Allowances and Reserves, Deductions		0	0
Valuation Allowances and Reserves, Balance, December 31		0	0	0
Loan and realty losses (recoveries), net	1,976,000	1,976,000	(2,195,000)	(99,000)
Mortgage Loans On Real Estate, Impairment		4,037,000	2,300,000	0
Allowance for Loan and Lease Loss, Recovery of Bad Debts		$ 2,061,000	$ 4,495,000	$ 99,000

XML

Fair Value, Assets Measured on Recurring Basis (Tables)

12 Months Ended

Dec. 31, 2013

Fair Value, Assets Measured on Recurring Basis [Abstract]

Fair Value, Assets Measured on Recurring Basis

Assets and liabilities measured at fair value on a recurring basis are as follows (in thousands):

		Fair Value Measurement
	Balance Sheet Classification	December 31, 2013		December 31, 2012
Level 1
Common stock of other healthcare REITs	Marketable securities	$	12,650	$	12,884
Level 2
Interest rate swap asset	Other assets	$	975	$	—
Interest rate swap liability	Accrued expenses	$	—	$	1,241
Level 3
Contingent consideration	Real estate purchase liabilities	$	—	$	3,256

Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation

The following table presents a reconciliation of Level 3 liabilities measured at fair value on a recurring basis for the years ended December 31, 2013 and 2012(in thousands):

	Fair Value Beginning of Period		Transfers Into Level 3		Realized Gains and (Losses)		Purchases, Issuances and Settlements			Fair Value at End of Period		Total Period Losses Included in Earnings Attributable to the Change in Unrealized Losses Relating to Assets Held at End of Year
2013
Contingent consideration	$	3,256	$	—	$	—	$	(3,256	)	$	—	$	—
2012
Contingent consideration	$	5,478	$	—	$	—	$	(2,222	)	$	3,256	$	—

Fair Value Measurements, Nonrecurring

Carrying values and fair values of financial instruments that are not carried at fair value at December 31, 2013 and December 31, 2012 in the Consolidated Balance Sheets are as follows (in thousands):

	Carrying Amount				Fair Value Measurement
	2013		2012		2013		2012
Level 2
Variable rate debt	$	537,000	$	203,250	$	537,000	$	203,250
Fixed rate debt	$	80,080	$	—	$	79,365	$	—
Level 3
Mortgage and other notes receivable	$	60,639	$	84,250	$	67,201	$	93,835

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Earnings and Dividends Per Share

12 Months Ended

Dec. 31, 2013

Earnings Per Share [Abstract]

Earnings Per Share

EARNINGS AND DIVIDENDS PER SHARE

The weighted average number of common shares outstanding during the reporting period is used to calculate basic earnings per common share. Diluted earnings per common share assume the exercise of stock options and vesting of restricted shares using the treasury stock method, to the extent dilutive.

The following table summarizes the average number of common shares and the net income used in the calculation of basic and diluted earnings per common share (in thousands, except share and per share amounts):

	Year Ended December 31,
	2013		2012		2011
Income from continuing operations attributable to common stockholders	$	78,499	$	72,667	$	69,817
Discontinued operations	27,684		18,064		11,315
Net income attributable to common stockholders	$	106,183	$	90,731	$	81,132
BASIC:
Weighted average common shares outstanding	28,362,398		27,811,813		27,719,096
Income from continuing operations per common share	$	2.77	$	2.61	$	2.52
Discontinued operations per common share	.97		.65		.41
Net income per common share	$	3.74	$	3.26	$	2.93
DILUTED:
Weighted average common shares outstanding	28,362,398		27,811,813		27,719,096
Stock options and restricted shares	35,304		26,907		73,496
Average dilutive common shares outstanding	28,397,702		27,838,720		27,792,592
Income from continuing operations per common share	$	2.77	$	2.61	$	2.51
Discontinued operations per common share	.97		.65		.41
Net income per common share	$	3.74	$	3.26	$	2.92
Incremental shares excluded since anti-dilutive:
Stock options with an exercise price in excess of the average market price for our common shares	23,883		—		16,758
Regular dividends declared per common share	$	2.90	$	2.64	$	2.495
Special dividends declared per common share1	$	—	$	.22	$	.22
1Special dividends are paid in January following the year in which they are declared