NHP Reports Second Quarter 2007 Earnings, $252 Million of Investments and a $128 Million Strategic Sale

NEWPORT BEACH, Calif., Aug. 1 /PRNewswire-FirstCall/ -- Nationwide Health Properties, Inc. today announced its second quarter and six months 2007 operating results and investment activity.

"The second quarter and first half of 2007 have been very successful based on investments, operating results and strategic asset sales," commented Douglas M. Pasquale, NHP's President and Chief Executive Officer. "We closed $252 million of accretive investments in the second quarter, bringing our total for the first half of the year to $535 million. Year to date revenues are up 40% and FFO per share increased by 5%. In addition, following through on one of our strategic initiatives, we took the opportunity to improve the overall quality of our portfolio by selling at an 8.5% rent cap rate a 35-year old portfolio of 35 Texas skilled nursing facilities. This sale reduced the average age of our skilled portfolio, improved its quality mix and resulted in a gain of $60 million," Mr. Pasquale added.

2007 SECOND QUARTER RESULTS

The following table presents selected financial results for the second quarter of 2007 as compared to the second quarter of 2006:

SELECTED FINANCIAL RESULTS ($ in thousands, except per share amounts) Three Months Ended June 30, Item 2007 2006 Change Revenues $80,795 $59,328 $21,467 36.2% Income from continuing operations $24,345 $15,962 $8,383 52.5% Net Income $87,433 $23,029 $64,404 279.7% Diluted Income from Continuing Operations Available to Common Stockholders Per Share $0.23 $0.16 $0.07 43.8% Diluted Income Available to Common Stockholders Per Share $0.93 $0.26 $0.67 257.7% Diluted FFO $48,576 $38,158 $10,418 27.3% Diluted FFO Per Share $0.51 $0.48 $0.03 6.3% Six Months Ended June 30, Revenues $156,705 $112,320 $44,385 39.5% Income from continuing operations $47,888 $30,520 $17,368 56.9% Net Income $113,480 $51,102 $62,378 122.1% Diluted Income from Continuing Operations Available to Common Stockholders Per Share $0.45 $0.32 $0.13 40.6% Diluted Income Available to Common Stockholders Per Share $1.18 $0.61 $0.57 93.4% Diluted FFO $95,287 $73,364 $21,923 29.9% Diluted FFO Per Share $1.01 $0.96 $0.05 5.2% Funds From Operations (FFO) FFO is a non-GAAP measure that NHP believes is important to an understanding of its operations. A reconciliation between net income, the most directly comparable GAAP financial measure, and FFO is included in the accompanying financial data. We believe FFO is an important supplemental measure of operating performance because it excludes the effects of depreciation and gains (losses) from sales of facilities (both of which are based on historical costs and which may be of limited relevance in evaluating current performance).

These results include gains on the sale of certain assets shown in the accompanying income statement that caused the net income results in 2007 to be significantly higher than in 2006. Income from continuing operations does not include the gains on sale or the operations of facilities sold that qualified as discontinued operations for any period presented in the accompanying income statement.

NEW INVESTMENTS

The following tables summarize our second quarter and year-to-date investment activity, with a significant number of approved investments in all our asset types already in the third and fourth quarter closing queues:

SECOND QUARTER 2007 CLOSED INVESTMENTS Unit Type Amount Price Cap Initial CPI DARM (millions) (thousands) Rate Yield Ups Cover Senior Housing $121 $80 7.7% 8.3% 2.8% 1.2x Long-Term Care $61 $49 14.5% 9.9% 2.0% 2.0x Medical Office $23 $156/sf 7.6% 7.6% - - Subtotal $205 - - - - - Loans $47 - - 10.9% - - Total $252 - - - - - 2007 CLOSED INVESTMENTS Unit Type Amount Price Cap Initial CPI DARM (millions) (thousands) Rate Yield Ups Cover Senior Housing $200 $95 8.7% 8.3% 2.8% 1.3x CCRC $39 $74 11.1% 8.8% 2.5% 1.6x Long-Term Care $226 $92 11.3% 8.5% 2.3% 1.8x Medical Office $23 $156/sf 7.6% 7.6% - - Subtotal $488 - - - - - Loans $47 - - 10.9% - - Total $535 - - - - -

Included in these numbers are third party investments financed through our joint venture which are broken out in the accompanying analyst information (which exclude the four facilities acquired by the joint venture from us for

$41 million during the second quarter of 2007). Approximately 75% of the acquired loans mature in 2007 and 2008.

STRATEGIC ASSET SALE

On June 29, 2007, we sold 36 skilled nursing facilities, all but one of which was in Texas, and a related loan for $128 million. This portfolio represented our entire leased portfolio with Complete Care Services, Inc. The sales price represents a capitalization rate on our July 1, 2007 annualized rent of 8.5%. The portfolio had an average age of 35 years and resulted in a gain of $60 million and a $78 million reduction to our gross investments in skilled nursing facilities.

2007 FINANCING TRANSACTIONS

During the first six months of 2007, we issued approximately 4.3 million shares through our controlled equity offering program resulting in net proceeds of approximately $135 million.

2007 GUIDANCE

Notwithstanding the foregone rent associated with our strategic skilled nursing portfolio sale, we are maintaining the high end our full-year 2007 guidance range for FFO before impairments, acquisitions and capital transactions and are changing the range from between $2.02 and $2.07 per share to between $2.03 and $2.07 per share. A reconciliation between net income per share and FFO per share for the guidance range is included in the accompanying financial data.

Although we expect to continue making accretive acquisitions in 2007, this guidance incorporates no results from acquisitions other than those reported above, nor does it incorporate the impact of any future impairments that might arise. It also excludes any future capital transactions with the exception of approximately $13 million of expected stock issuances under our Dividend Reinvestment Plan during the remainder of 2007. This guidance assumes asset sales, mortgage loan receivable prepayments and other leakage during 2007 as described in the supplementary analyst information section of this press release.

CONFERENCE CALL INFORMATION

The Company has scheduled a conference call and webcast on Thursday, August 2, 2007 at 8:30 a.m. Pacific time in order to present the Company's performance and operating results for the quarter ended June 30, 2007. The conference call is accessible by dialing [phone] and referencing conference ID number 7227772 or by logging on to our website at http://www.nhp-reit.com/. The earnings release and any additional financial information that may be discussed on the conference call will also be available at the same location on our website. A digitized replay of the conference call will be available from 10:00 a.m. Pacific time that day until 9:00 p.m. Pacific time on Thursday, August 16, 2007. Callers can access the replay by dialing [phone] or [phone] and entering conference ID number 7227772. Webcast replays will also be available on our website for at least 12 months following the conference call.

Nationwide Health Properties, Inc. is a real estate investment trust that invests in senior housing facilities, long-term care facilities and medical office buildings. The Company has investments in 524 facilities in 43 states. For more information on Nationwide Health Properties, Inc., visit our website at http://www.nhp-reit.com/.

Abdo H. Khoury Chief Financial and Portfolio Officer [phone]

Certain information contained in this news release includes forward-looking statements. Forward-looking statements include statements regarding our expectations, beliefs, intentions, plans, objectives, goals, strategies, future events or performance and underlying assumptions and other statements which are not statements of historical facts. These statements may be identified, without limitation, by the use of forward-looking terminology such as "may," "will," "anticipates," "expects," "believes," "intends," "should" or comparable terms or the negative thereof. All forward-looking statements included in this news release are based on information available to us on the date hereof. These statements speak only as of the date hereof, and we assume no obligation to update such forward-looking statements for any reason or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future. These statements involve risks and uncertainties that could cause actual results to differ materially from those described in the statements. These risks and uncertainties include (without limitation) the following: deterioration in the operating results or financial condition, including bankruptcies, of our tenants; non-payment or late payment of rent by our tenants; our reliance on two operators for a significant percentage of our revenues; occupancy levels at certain facilities; our level of indebtedness; changes in the ratings of our debt securities; access to the capital markets and the cost of capital; government regulations, including changes in the reimbursement levels under the Medicare and Medicaid programs; the general distress of the healthcare industry; increasing competition in our business sector; the effect of economic and market conditions and changes in interest rates; the amount and yield of any additional investments; our ability to meet acquisition goals; the ability of our operators to repay deferred rent or loans in future periods; the ability of our operators to obtain and maintain adequate liability and other insurance; our ability to attract new operators for certain facilities; our ability to sell certain facilities for their book value; our ability to retain key personnel; potential liability under environmental laws; the possibility that we could be required to repurchase some of our medium-term notes; the rights and influence of holders of our outstanding preferred stock; changes in or inadvertent violations of tax laws and regulations and other factors that can affect real estate investment trusts and our status as a real estate investment trust; and the risk factors described in our most recent annual report on Form 10-K and any subsequent quarterly reports on Form 10-Q filed with the SEC.

NATIONWIDE HEALTH PROPERTIES, INC. STATEMENTS OF OPERATIONS JUNE 30, 2007 (IN THOUSANDS EXCEPT PER SHARE AMOUNTS) Three Months Ended Six Months Ended June 30, June 30, 2007 2006 2007 2006 Revenues: Rental income Triple net lease rent $72,977 $53,978 $141,853 $102,091 Operating rent 2,810 2,506 5,573 4,423 75,787 56,484 147,426 106,514 Interest and other income 5,008 2,844 9,279 5,806 80,795 59,328 156,705 112,320 Expenses: Interest & amortization of deferred financing costs 26,275 21,374 50,097 40,602 Depreciation and amortization 23,750 16,831 45,457 31,288 General and administrative 5,797 3,857 11,414 7,655 Medical office building operating expenses 1,785 1,383 3,206 2,382 57,607 43,445 110,174 81,927 Income before minority interest and unconsolidated joint venture 23,188 15,883 46,531 30,393 Minority interest in net loss of consolidated joint ventures 81 79 63 127 Income from unconsolidated joint venture 477 --- 695 --- Gain on sale of facilities to joint venture 599 --- 599 --- Income from continuing operations 24,345 15,962 47,888 30,520 Discontinued operations Gain on sale of facilities, net 61,180 1,616 61,246 8,826 Income from discontinued operations 1,908 5,451 4,346 11,756 63,088 7,067 65,592 20,582 Net income 87,433 23,029 113,480 51,102 Preferred stock dividends (3,791) (3,790) (7,581) (7,581) Income available to common stockholders $83,642 $19,239 $105,899 $43,521 Per share amounts available to common stockholders: Basic Income from continuing operations $0.23 $0.16 $0.45 $0.32 Discontinued operations 0.70 0.10 0.74 0.29 Income $0.93 $0.26 $1.19 $0.61 Weighted average shares outstanding 89,761 74,719 88,979 71,543 Diluted Income from continuing operations $0.23 $0.16 $0.45 $0.32 Discontinued operations 0.70 0.10 0.73 0.29 Income $0.93 $0.26 $1.18 $0.61 Weighted average shares outstanding 90,222 75,108 89,454 71,873 NATIONWIDE HEALTH PROPERTIES, INC. RECONCILIATION OF NET INCOME TO FUNDS FROM OPERATIONS JUNE 30, 2007 (IN THOUSANDS EXCEPT PER SHARE AMOUNTS) Three Months Ended Six Months Ended June 30, June 30, 2007 2006 2007 2006 Net income $87,433 $23,029 $113,480 $51,102 Preferred stock dividends (3,791) (3,790) (7,581) (7,581) Real estate related depreciation and amortization 24,283 18,473 46,576 34,545 Depreciation in income from joint venture 368 --- 532 --- Gains on sale of facilities (61,779) (1,616) (61,845) (8,826) Funds From Operations ("FFO") available to common stockholders(1) 46,514 36,096 91,162 69,240 Series B preferred dividend add-back 2,062 2,062 4,125 4,124 Diluted FFO $48,576 $38,158 $95,287 $73,364 Diluted weighted average shares outstanding 90,222 75,108 89,454 71,873 Series B preferred stock add-back 4,704 4,685 4,701 4,684 Fully diluted weighted average shares outstanding 94,926 79,793 94,155 76,557 Diluted per share amounts: FFO $0.51 $0.48 $1.01 $0.96 Revenue in excess of cash rent $761 $102 $1,698 $5 Non-cash stock-based compensation expense $1,218 $651 $2,238 $1,194 Deferred finance cost amortization $695 $643 $1,382 $1,197 (1) We believe that funds from operations is an important supplemental measure of operating performance because it excludes the effect of depreciation and gains (losses) from sales of facilities (both of which are based on historical costs which may be of limited relevance in evaluating current performance). Additionally, funds from operations is widely used by industry analysts as a measure of operating performance for equity REITs. We therefore disclose funds from operations, although it is a measurement that is not defined by accounting principles generally accepted in the United States. We calculate funds from operations in accordance with the National Association of Real Estate Investment Trusts' definition. Funds from operations does not represent cash generated from operating activities as defined by accounting principles generally accepted in the United States (funds from operations does not include changes in operating assets and liabilities) and, therefore, should not be considered as an alternative to net income as the primary indicator of operating performance or to cash flow as a measure of liquidity. NATIONWIDE HEALTH PROPERTIES, INC. BALANCE SHEETS JUNE 30, 2007 (IN THOUSANDS) June 30, December 31, ASSETS 2007 2006 Investments in real estate: Real estate properties Land $292,338 $267,303 Buildings and improvements 2,744,528 2,581,484 3,036,866 2,848,787 Less accumulated depreciation (401,295) (372,201) 2,635,571 2,476,586 Mortgage loans receivable, net 135,437 106,929 Investment in unconsolidated joint venture 26,189 --- 2,797,197 2,583,515 Cash and cash equivalents 12,892 14,695 Receivables, net 9,081 7,787 Assets held for sale 194 9,484 Other assets 98,054 89,333 $2,917,418 $2,704,814 LIABILITIES AND STOCKHOLDERS' EQUITY Credit facility $210,000 $139,000 Senior notes due 2008 - 2038 866,500 887,500 Notes and bonds payable 333,305 355,411 Accounts payable and accrued liabilities 81,457 77,829 Total liabilities 1,491,262 1,459,740 Minority interest 1,230 1,265 Stockholders' equity: Series A preferred stock 90,049 90,049 Series B convertible preferred stock 106,445 106,450 Common stock 9,096 8,624 Capital in excess of par value 1,447,225 1,298,703 Cumulative net income 1,177,773 1,064,293 Accumulated other comprehensive income 1,124 1,231 Cumulative dividends (1,406,786) (1,325,541) Total stockholders' equity 1,424,926 1,243,809 $2,917,418 $2,704,814 NATIONWIDE HEALTH PROPERTIES, INC. SUPPLEMENTAL ANALYST INFORMATION JUNE 30, 2007 PORTFOLIO COMPOSITION (EXCLUDING UNCONSOLIDATED JOINT VENTURE) Investment Revenue EQUITY OWNERSHIP 96% 94% MORTGAGE LOANS RECEIVABLE 4% 6% 100% 100% ASSISTED AND INDEPENDENT LIVING FACILITIES 62% 60% SKILLED NURSING FACILITIES 29% 28% CONTINUING CARE RETIREMENT COMMUNITIES 5% 6% SPECIALTY HOSPITALS 2% 2% MEDICAL OFFICE BUILDINGS 2% 4% 100% 100% OWNED FACILITIES INVESTMENT PER BEDS/ BED/UNIT UNITS/ FACILITIES INVESTMENT SQ FT SQ FT NHP DIRECT OWNERSHIP ASSISTED & IND LIVING FACILITIES 269 $1,929,671,000 $96,000 20,070 SKILLED NURSING FACILITIES 161 842,498,000 $46,000 18,297 CONTINUING CARE RETIREMENT 10 132,632,000 $72,000 1,852 SPECIALTY HOSPITALS 7 68,031,000 $225,000 303 MEDICAL OFFICE BUILDINGS* 24 64,034,000 $85 906,369 TOTAL 471 $3,036,866,000 UNCONSOLIDATED JV OWNERSHIP SKILLED NURSING FACILITIES 7 $150,663,000 $147,000 1,028 ASSISTED & IND LIVING FACILITIES 6 77,779,000 $112,000 697 TOTAL 13 $228,442,000 GRAND TOTAL 484 $3,265,308,000 * Medical office building cost per square foot reflects total purchase price including amounts classified as other assets MORTGAGE LOANS RECEIVABLE LOAN VALUE PER BEDS/ FACILITIES LOAN VALUE BED/UNIT UNITS SKILLED NURSING FACILITIES 19 $64,530,000 $29,000 2,223 ASSISTED & IND LIVING FACILITIES 13 51,275,000 $56,000 908 CONTINUING CARE RETIREMENT 1 19,632,000 $46,000 428 33 $135,437,000 ASSETS HELD FOR SALE FACILITIES INVESTMENT 2 194,000 PORTFOLIO STATISTICS (excluding medical office buildings) UNCONSOLIDATED NHP CONSOLIDATED PORTFOLIO JV PORTFOLIO 2007 2006 2007 TOTAL PORTFOLIO RENT COVERAGE EBITDARM AL & IL 1.4x 1.4x 1.4x SNF 1.9x 2.1x 1.7x EBITDAR AL & IL 1.2x 1.2x 1.2x SNF 1.3x 1.5x 1.4x EBITDAR MINUS CAPEX AL & IL 1.1x 1.1x 1.1x SNF 1.2x 1.4x 1.4x OCCUPANCY AL & IL 86% 88% 91% SNF 83% 82% 91% TENANT PRIVATE PAY AND MEDICARE AL & IL 99% 100% 96% SNF 46% 41% 59% TOTAL PORTFOLIO 67% 62% 67% NHP RENT BY PAYMENT SOURCE MEDICAID 18% 23% 29% MEDICARE 11% 12% 16% PRIVATE AND OTHER 71% 65% 55% AVERAGE AGE OF FACILITY IN YEARS AL & IL 11 10 12 SNF 29 28 9 AVERAGE REMAINING LEASE TERM AL & IL 12 14 13 SNF 7 9 15 SAME STORE PORTFOLIO STATISTICS (excluding medical office buildings) NHP CONSOLIDATED PORTFOLIO 2007 2006 RENT COVERAGE EBITDARM AL & IL 1.5x 1.4x SNF 2.0x 1.9x EBITDAR AL & IL 1.3x 1.2x SNF 1.4x 1.3x EBITDAR MINUS CAPEX AL & IL 1.2x 1.1x SNF 1.3x 1.2x OCCUPANCY AL & IL 89% 88% SNF 82% 83% TENANT PRIVATE PAY AND MEDICARE AL & IL 99% 99% SNF 45% 44% TOTAL PORTFOLIO 65% 64% NHP RENT BY PAYMENT SOURCE MEDICAID 22% 23% MEDICARE 13% 13% PRIVATE AND OTHER 65% 64% AVERAGE AGE OF FACILITY IN YEARS AL & IL 12 11 SNF 29 28 AVERAGE REMAINING LEASE TERM AL & IL 11 12 SNF 7 8 INVESTMENT BY OPERATOR (excluding assets held for sale, medical office buildings and JV assets) PERCENT PERCENT NUMBER OF INVESTMENT OF OF FACILITIES AMOUNT INVESTMENT REVENUES BROOKDALE SENIOR LIVING, INC.* 102 $517,470,000 17% 18% HEARTHSTONE SENIOR SERVICES, L.P. 32 431,297,000 14% 12% WINGATE HEALTHCARE, INC. 19 235,963,000 8% 6% EMERITUS CORPORATION* 23 180,846,000 6% 6% ATRIA SENIOR LIVING GROUP 17 124,583,000 4% 7% LAUREATE GROUP 9 118,946,000 4% 3% CARILLON ASSISTED LIVING 9 105,847,000 3% 3% BEVERLY ENTERPRISES, INC. 28 100,113,000 3% 5% EPOCH SENIOR LIVING, INC. 8 81,067,000 3% 3% SENIOR SERVICES OF AMERICA 12 74,826,000 2% 2% SUMMERVILLE SENIOR LIVING 6 70,177,000 2% 2% NEXION HEALTH MANAGEMENT, INC. 18 55,496,000 2% 2% PRIMROSE RETIREMENT ASSOCIATES 8 55,016,000 2% 1% TRANS HEALTHCARE 7 46,676,000 1% 1% HEALTHSOUTH CORPORATION* 2 45,645,000 1% 2% OTHER - PUBLIC COMPANIES 14 56,975,000 2% 2% OTHER 166 807,326,000 26% 25% 480 $3,108,269,000 100% 100% * PUBLIC COMPANY TOP FIVE STATES INVESTMENT AND REVENUE (excluding held for sale, medical office building portfolio and JV portfolio) PERCENT PERCENT MEDICAID AS NUMBER OF INVESTMENT OF OF A PERCENTAGE FACILITIES AMOUNT INVESTMENT REVENUES OF REVENUES TEXAS 65 $455,489,000 15% 14% 4% MASSACHUSETTS 31 $309,035,000 10% 9% 4% CALIFORNIA 32 $232,296,000 7% 10% 2% FLORIDA 30 $208,303,000 7% 6% 2% WISCONSIN 36 $195,030,000 6% 5% 1% SECURITY DEPOSITS BANK LETTERS OF CREDIT $57,605,000 CASH DEPOSITS 21,464,000 $79,069,000 CAPITALIZATION (UNDEPRECIATED BOOK BASIS) 6/30/07 12/31/06 6/30/06 AMOUNT PERCENTAGE PERCENTAGE PERCENTAGE SECURED DEBT $333,305,000 11% 12% 12% UNSECURED DEBT 1,076,500,000 33% 34% 39% TOTAL DEBT 1,409,805,000 44% 46% 51% EQUITY 1,826,221,000 56% 54% 49% $3,236,026,000 100% 100% 100% DEBT COMPOSITION AMOUNT PERCENTAGE WEIGHTED RATE FIXED RATE $1,138,811,000 81% 6.6% FLOATING RATE SECURED 60,994,000 4% 5.8% FLOATING RATE CREDIT 210,000,000 15% 8.25% Prime/6.23% LIBOR FACILITY $1,409,805,000 100% 2007 INVESTMENTS INVESTMENT PER BED/ BEDS/ UNIT/ UNITS/ FACILITIES INVESTMENT SQ FT. SQ FT. CURRENT QUARTER INVESTMENTS NHP ASSISTED & IND LIVING FACILITIES 30 $104,000,000 $73,000 1,418 SKILLED NURSING FACILITIES 14 61,000,000 $49,000 1,250 MEDICAL OFFICE BUILDINGS 3 23,000,000 $156 147,086 TOTAL ASSETS ACQUIRED 47 188,000,000 LOANS ACQUIRED/FUNDED 47,000,000 TOTAL ACQUISITIONS 235,000,000 CAPITAL EXPENDITURES 5,000,000 TOTAL INVESTMENTS 47 $240,000,000 UNCONSOLIDATED JOINT VENTURE SKILLED NURSING FACILITIES - $- $- - ASSISTED & IND LIVING FACILITIES* 1 17,000,000 $163,000 104 TOTAL ACQUISITIONS 1 $17,000,000 TOTAL TOTAL ASSETS ACQUIRED 48 $205,000,000 LOANS ACQUIRED/FUNDED 47,000,000 TOTAL ACQUISITIONS 252,000,000 CAPITAL EXPENDITURES 5,000,000 TOTAL INVESTMENTS 48 $257,000,000 CURRENT YEAR INVESTMENTS NHP ASSISTED & IND LIVING FACILITIES 35 $163,000,000 $86,000 1,891 SKILLED NURSING FACILITIES 16 75,000,000 $52,000 1,440 CONTINUING CARE RETIREMENT COM. 3 39,000,000 $74,000 527 MEDICAL OFFICE BUILDINGS 3 23,000,000 $156 147,086 TOTAL ASSETS ACQUIRED 57 300,000,000 LOANS ACQUIRED/FUNDED 47,000,000 TOTAL ACQUISITIONS 347,000,000 CAPITAL EXPENDITURES 10,000,000 TOTAL INVESTMENTS 57 $357,000,000 UNCONSOLIDATED JOINT VENTURE SKILLED NURSING FACILITIES 7 $151,000,000 $147,000 1,028 ASSISTED & IND LIVING FACILITIES* 2 37,000,000 $175,000 212 TOTAL ACQUISITIONS 9 $188,000,000 TOTAL TOTAL ASSETS ACQUIRED 66 $488,000,000 LOANS ACQUIRED/FUNDED 47,000,000 TOTAL ACQUISITIONS 535,000,000 CAPITAL EXPENDITURES 10,000,000 TOTAL INVESTMENTS 66 $545,000,000 * The above totals exclude four assisted living facilities the joint venture acquired from NHP for $41 million SENIOR NOTE MATURITIES WEIGHTED YEAR AMOUNT RATE Q4 2007 $55,000,000 (1) 6.9% Q1 2008 10,000,000 6.7% Q3 2008 40,000,000 (2) 6.6% Q4 2008 33,500,000 (3) 7.6% 2009 32,000,000 7.8% 2011 350,000,000 6.5% 2012 96,000,000 8.3% 2015 250,000,000 6.0% $866,500,000 6.7% (1) Notes putable October of 2007, '09, '12, '17, '27 with a final maturity in 2037. (2) Notes putable July of 2008, '13, '18, '23, '28 with a final maturity in 2038. (3) Notes putable November of 2008, '13, '18, '23 with a final maturity in 2028. NOTES AND BONDS PAYABLE MATURITIES WEIGHTED YEAR AMOUNT RATE 2007 $639,000 7.8% 2008 - - 2009 38,969,000 6.9% 2010 74,489,000 6.0% 2011 5,459,000 7.7% 2012 33,152,000 7.6% 2013 75,692,000 6.3% 2015 11,339,000 6.4% THEREAFTER 93,566,000 5.5% $333,305,000 6.2% LEASE EXPIRATIONS (excluding held for sale, medical office building portfolio and JV portfolio) MINIMUM NUMBER OF YEAR RENT FACILITIES 2007 $2,821,000 10 2008 2,489,000 5 2009 3,776,000 9 2010 12,334,000 23 2011 9,005,000 22 2012 18,080,000 19 2013 18,552,000 32 2014 20,963,000 25 2015 8,835,000 10 2016 28,500,000 47 THEREAFTER 156,322,000 246 $281,677,000 448 MORTGAGE LOAN RECEIVABLE PRINCIPAL PAYMENTS PRINCIPAL NUMBER YEAR PAYMENTS OF FACILITIES 2007 $10,115,000 2 2008 34,573,000 13 2009 38,744,000 9 2010 986,000 - 2011 1,072,000 - 2012 1,168,000 - 2013 9,775,000 - 2014 1,396,000 - 2015 3,650,000 1 2016 10,439,000 2 THEREAFTER 42,577,000 6 $154,495,000 33 UNCONSOLIDATED JOINT VENTURE FINANCIAL STATEMENTS BALANCE SHEET AT JUNE 30, 2007 ASSETS LIABILITIES AND EQUITY LAND $9,389,000 NOTES AND BONDS PAYABLE $122,295,000 BUILDINGS AND A/P AND ACCRUED IMPROVEMENTS 218,580,000 LIABILITIES 2,260,000 GROSS REAL TOTAL LIABILITIES 124,555,000 ESTATE 227,969,000 ACCUMULATED DEPRECIATION (2,126,000) EQUITY 104,750,000 NET REAL ESTATE 225,843,000 CASH 2,543,000 RECEIVABLES 170,000 OTHER ASSETS 749,000 TOTAL LIABILITIES TOTAL ASSETS $229,305,000 AND EQUITY $229,305,000 INCOME STATEMENT - SIX MONTHS ENDED JUNE 30, 2007 REVENUES RENT $5,000,000 INTEREST AND OTHER INCOME 12,000 TOTAL REVENUES 5,012,000 EXPENSES INTEREST AND DEFERRED FINANCE COSTS 1,366,000 DEPRECIATION AND AMORTIZATION 2,126,000 GENERAL AND ADMINISTRATIVE* 564,000 TOTAL EXPENSES 4,056,000 NET INCOME $956,000 NHP INCOME AND FFO FROM JV 25% SHARE OF NET INCOME $239,000 MANAGEMENT FEE* 456,000 INCOME FROM JV 695,000 25% SHARE OF DEPRECIATION 532,000 FFO FROM JV $1,227,000 * the management fee is included in the joint venture's general and administrative expense RECONCILIATION OF 2007 NET INCOME GUIDANCE TO 2007 DILUTED FFO GUIDANCE LOW HIGH NET INCOME $2.47 $2.50 LESS: PREFERRED DIVIDENDS (0.06) (0.06) REAL ESTATE RELATED DEPRECIATION AND AMORTIZATION 1.05 1.05 LESS: GAINS ON SALE (1.31) (1.31) DILUTION FROM CONVERTIBLE PREFERRED STOCK (0.12) (0.11) DILUTED FUNDS FROM OPERATIONS $2.03 $2.07 2007 EXPECTED REVENUE LEAKAGE 2007 FULL YEAR GROSS REVENUE REVENUE PROCEEDS GAIN First Half 2007 Purchase Options $390,000 $524,000 $3,750,000 $1,048,000 Projected Remaining 2007 Certain Purchase Options $576,000 $4,586,000 $44,026,000 $10,600,000 High Purchase Options 145,000 1,041,000 9,650,000 723,000 Loan Payoffs* 749,000 4,098,000 35,534,000 9,902,000 Asset Recycling 527,000 1,264,000 15,823,000 4,314,000 Lease Restructurings/ Renewals 110,000 265,000 - - Total High 1,531,000 6,668,000 61,007,000 14,939,000 Total Projected Remaining 2007 $2,107,000 $11,254,000 $105,033,000 $25,539,000 Total Projected 2007 Total Certain $966,000 $5,110,000 $47,776,000 $11,648,000 Total High 1,531,000 6,668,000 61,007,000 14,939,000 $2,497,000 $11,778,000 $108,783,000 $26,587,000 * The gain on the loan payoff represents the gain deferred at the time we financed the sale of the facilities