SOURCE: Nationwide Health Properties

Nationwide Health Properties

February 28, 2011 06:32 ET

Nationwide Health Properties, Inc. Reports 2010 Fourth Quarter and Full Year Results

-- Adjusted Diluted FFO and Adjusted Diluted FFO per Share Increased 24% and 13%, Respectively, Over Fourth Quarter 2009

-- Adjusted Diluted FFO and Adjusted Diluted FFO per Share Increased 15% and 3%, Respectively, Over Full Year 2009

-- Completed $248 Million of Investments in the Fourth Quarter of 2010 and $924 Million in the Year

-- Increased Quarterly Dividend to $0.48 per Share

NEWPORT BEACH, CA--(Marketwire - February 28, 2011) - Nationwide Health Properties, Inc. (NYSE: NHP) today announced results of operations for the fourth quarter and the year ended December 31, 2010.

"Our comparable period fourth quarter results concluded a very strong year for NHP with fourth quarter revenues up 20%, adjusted diluted FFO per share up 13% and adjusted diluted FAD per share up 9%. As a result, NHP's Board of Directors increased our quarterly dividend by $0.01 to $0.48 per share, or $1.92 per share on an annualized basis. This represents a 9% increase in our annualized dividend from the year ago quarter. Our credit statistics and dividend coverage continue to be outstanding with a diluted FAD payout ratio and FAD coverage at 81% and 1.23x, respectively," commented Douglas M. Pasquale, NHP's Chairman and Chief Executive Officer. "We also concluded an excellent year of investments capped by fourth quarter investments of $248 million at a 9.1% blended yield and annual investments totaling $924 million at an 8.7% blended yield. Further, 2011 is off to an impressive start with $102 million of investments already closed, and another $141 million set to close by quarter end," Mr. Pasquale added.

FOURTH QUARTER 2010 RESULTS OF OPERATIONS

The following table presents selected unaudited financial information for the fourth quarter and the year ended December 31, 2010 as compared to the same periods of 2009:

                          Selected Financial Data
                ($ in thousands, except per share amounts)

                                      Three Months Ended December 31,
                                -------------------------------------------
                                  2010       2009     $ Change   % Change
                                ---------- ---------- ---------  ---------

Revenue                         $  116,657 $   97,045 $  19,612       20.2%
Income from Continuing
 Operations                     $   38,050 $   29,043 $   9,007       31.0%
Net Income Attributable to NHP
 Common Stockholders            $   35,313 $   30,895 $   4,418       14.3%
Net Income Attributable to NHP
 Common Stockholders Per
 Diluted Share                  $     0.27 $     0.27 $       -        0.0%
Diluted FFO                     $   60,373 $   61,821 $  (1,448)      -2.3%
Adjusted Diluted FFO            $   77,392 $   62,651 $  14,741       23.5%
Diluted FFO Per Share           $     0.47 $     0.53 $   (0.06)     -11.3%
Adjusted Diluted FFO Per Share  $     0.60 $     0.53 $    0.07       13.2%
Diluted FAD                     $   57,889 $   61,481 $  (3,592)      -5.8%
Adjusted Diluted FAD            $   74,908 $   62,311 $  12,597       20.2%
Diluted FAD Per Share           $     0.45 $     0.52 $   (0.07)     -13.5%
Adjusted Diluted FAD Per Share  $     0.58 $     0.53 $    0.05        9.4%

                                          Year Ended December 31,
                                -------------------------------------------
                                  2010       2009     $ Change   % Change
                                ---------- ---------- ---------  ---------

Revenue                         $  439,251 $  383,853 $  55,398       14.4%
Income from Continuing
 Operations                     $  137,224 $  121,800 $  15,424       12.7%
Net Income Attributable to NHP
 Common Stockholders            $  143,766 $  143,040 $     726        0.5%
Net Income Attributable to NHP
 Common Stockholders Per
 Diluted Share                  $     1.15 $     1.31 $   (0.16)     -12.2%
Diluted FFO                     $  266,856 $  253,357 $  13,499        5.3%
Adjusted Diluted FFO            $  286,285 $  249,291 $  36,994       14.8%
Diluted FFO Per Share           $     2.14 $     2.27 $   (0.13)      -5.7%
Adjusted Diluted FFO Per Share  $     2.30 $     2.23 $    0.07        3.1%
Diluted FAD                     $  261,152 $  251,956 $   9,196        3.6%
Adjusted Diluted FAD            $  280,581 $  247,890 $  32,691       13.2%
Diluted FAD Per Share           $     2.10 $     2.25 $   (0.15)      -6.7%
Adjusted Diluted FAD Per Share  $     2.25 $     2.22 $    0.03        1.4%

NON-GAAP FINANCIAL MEASURES

Diluted Funds From Operations ("FFO") and Diluted Funds Available for Distribution ("FAD") are non-GAAP measures that we believe are important to understanding our operations. We believe diluted FFO is an important supplemental measure of operating performance because it excludes the effects of depreciation and amortization 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). We believe diluted FAD is an important supplemental measure of operating performance because, like diluted FFO, it excludes the effects of depreciation and amortization 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). It also excludes straight-lined rent and other non-cash items that have become more significant for us and our competitors over the last several years. We believe that net income is the most directly comparable GAAP measure to diluted FFO and diluted FAD. Reconciliations between net income and diluted FFO and net income and diluted FAD are included in the accompanying financial data. For guidance, we have also included in the accompanying financial data reconciliations between net income per share and diluted FFO and diluted FAD per share. We have also included adjusted diluted FFO and adjusted diluted FAD amounts which exclude acquisition costs, impairments and the recognition of a net gain on re-measurement of equity interest upon acquisition in 2010 and gains on debt extinguishments in 2010 and 2009.

FOURTH QUARTER 2010 INVESTMENT ACTIVITY

                         Investment Activity 2010
                             ($ in thousands)

                         Q1         Q2         Q3         Q4       2010
Investment             Total      Total      Total      Total      Total
                     ---------  ---------  ---------  ---------  ---------
Assisted and
 Independent Living
 Facilities
  Investment                    $   6,000  $  46,000  $  59,000  $ 111,000
  Initial Yield                       8.8%       8.2%       8.1%       8.2%
                     ---------  ---------  ---------  ---------  ---------
Skilled Nursing
 Facilities
  Investment                    $ 130,000  $  47,000  $  92,000  $ 269,000
  Initial Yield                       9.1%       9.6%      10.3%       9.6%
                     ---------  ---------  ---------  ---------  ---------
Continuing Care
 Retirement
 Communities
  Investment                                          $  16,000  $  16,000
  Initial Yield                                             9.1%       9.1%
                     ---------  ---------  ---------  ---------  ---------
Medical Office
 Buildings
  Investment         $ 380,000  $  46,000             $  77,000  $ 503,000
  Initial Yield            8.2%       9.3%                  8.5%       8.4%
                     ---------  ---------  ---------  ---------  ---------
Total
  Investment         $ 380,000  $ 182,000  $  93,000  $ 244,000  $ 899,000
  Initial Yield            8.2%       9.1%       8.9%       9.1%       8.7%
                     ---------  ---------  ---------  ---------  ---------

In the fourth quarter of 2010, we invested approximately $4.0 million in revenue producing capital expenditures at a blended yield of 9.0% for a total of $19.0 million at a blended yield of 8.5% for the year. Additionally during the year, we funded two unsecured loans totaling $5.5 million at a blended rate of 9.3%. We also entered into a joint venture with PMB to develop a medical office building in Mission Hills, CA, our first development pursuant to the Amended and Restated Pipeline Property Agreement. We funded $1.6 million in the fourth quarter and $17.8 million year to date for two development projects with combined budgets of $59.6 million.

In the fourth quarter of 2010, we sold seven properties for gross sales proceeds of $28.3 million resulting in a total gain of $10.5 million. For the year, we sold 12 properties for gross sales proceeds of $44.3 million resulting in a total gain of $16.9 million. Also during the fourth quarter, we concluded that our investment in one of our medical office properties was impaired, and we plan to dispose of this investment in 2011. As a result, we recorded a non-cash impairment charge totaling $15.0 million in discontinued operations relating to this investment.

FOURTH QUARTER 2010 FINANCING TRANSACTIONS

                At-The-Market Equity Offering Program 2010
                  (in thousands, except price per share)

                         Q1         Q2         Q3         Q4       2010
                       Total      Total      Total      Total      Total
                     ---------- ---------- ---------- ---------- ----------

Number of Shares          1,269      3,789      2,793      1,290      9,141
Average Price
 per Share           $    35.58 $    35.69 $    37.90 $    40.59 $    37.04
Net Proceeds         $   44,673 $  133,820 $  104,750 $   51,820 $  335,063
                     ---------- ---------- ---------- ---------- ----------

In the fourth quarter, we prepaid $105.9 million of mortgage debt. We also assumed $15.8 million of mortgage debt in conjunction with our acquisitions of two medical office buildings. The assumed mortgage debt has a blended interest rate of 5.8% and matures in 2014. In order to fund investments during the fourth quarter, we drew $175 million on our $700 million credit facility, and subsequent to year end, we have drawn an additional $50 million to bring the total currently outstanding under our credit facility to $225 million.

HEARTHSTONE LEASE MODIFICATIONS

In February 2011, our tenant, Hearthstone Senior Services, L.P. ("Hearthstone"), notified us that it would be unable to pay the rent then due under its leases with us, and asked us to amend certain terms of the leases to make rents achievable. In order to substantially increase the ability of Hearthstone to meet its future obligations, we agreed to certain modifications of the terms of our leases with Hearthstone that include, among other things, a reduction in the aggregate rent payable by $7.4 million for the lease year ending February 2012, and by $6.4 million for subsequent lease years. After giving effect to these reductions, the aggregate rent payable by Hearthstone is $31.7 million for the first lease year, $33.7 million for the second lease year and increases by 3% each year thereafter. In connection with the lease modifications, we also obtained the right to terminate any and all of our leases with Hearthstone at any time without cause.

CONFERENCE CALL INFORMATION

The conference call previously scheduled for February 28, 2011 at 11:00 a.m. Pacific Time to discuss our fourth quarter and year end results has been cancelled. There will be a conference call today at 5:30 a.m. Pacific Time (8:30 am Eastern Time) to discuss the previously announced merger transaction between Nationwide Health Properties and Ventas. The conference call is being webcast by Thomson Reuters and can be accessed at the Ventas website at www.ventasreit.com and at NHP's website at www.nhp-reit.com or by dialing (866) 610-1072 and providing the conference ID "48183257". A replay of the webcast will be available on Ventas' and NHP's websites or by calling (800) 642-1687, referencing conference ID "48183257", at approximately 11:30 a.m. Eastern Time today. The webcast will be archived for 30 days.

An investor presentation discussing the transaction will be available on Ventas' website at www.ventasreit.com and on NHP's website at www.nhp-reit.com.

Our supplemental information package for the quarter ended December 31, 2010 is available on our website, free of charge, at http://www.nhp-reit.com by selecting "Investor Relations" followed by "Financial Information" and is included in our Current Report on Form 8-K filed February 28, 2011 with the SEC also containing this release. Shareholders may receive, free of charge, a complete set of our audited financial statements upon request.

ABOUT NATIONWIDE HEALTH PROPERTIES, INC.

Nationwide Health Properties, Inc. is a real estate investment trust (REIT) that invests primarily in healthcare real estate in the United States. As of December 31, 2010, the Company's portfolio of properties, including mortgage loans and properties owned by unconsolidated joint ventures, totaled 667 properties among the following segments: 298 senior housing facilities, 212 skilled nursing facilities, 134 medical office buildings, 12 continuing care retirement communities, 7 specialty hospitals, 2 assets in development and 2 assets held for sale. For more information on Nationwide Health Properties, Inc., visit our website at http://www.nhp-reit.com.

FORWARD-LOOKING STATEMENTS

Certain information contained in this release includes forward-looking statements. Forward-looking statements include statements regarding our expectations, beliefs, intentions, plans, objectives, goals, strategies, future events or performance and underlying assumptions and other statements which are not statements of historical facts. These statements may be identified, without limitation, by the use of forward-looking terminology such as "may," "will," "anticipates," "expects," "believes," "intends," "should" or comparable terms or the negative thereof. These forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those described in the statements. Risks and uncertainties associated with our business include (without limitation) the following: deterioration in the operating results or financial condition, including bankruptcies, of our tenants or other significant operators in the healthcare industry; non-payment or late payment of rent, interest or loan principal amounts by our tenants; the ability of our tenants to pay contractual rent and/or interest escalations in future periods; the ability of our tenants to obtain and maintain adequate liability and other insurance and potential underinsured or uninsured losses; occupancy levels at certain facilities; our reliance on one tenant for a significant percentage of our revenues; risks associated with real estate ownership, including the illiquid nature of real estate and the real estate market, maintenance and repair costs, potential liability under environmental laws, leases that are not renewed or are renewed at lower rates, our ability to attract new tenants for certain facilities, purchase option exercises that reduce revenue and our ability to sell certain facilities for their book value; the amount and yield of any additional investments and risks associated with acquisitions, including our ability to identify and complete favorable transactions, delays or failures in obtaining third party consents or approvals, the failure to achieve perceived benefits, unexpected costs or liabilities and potential litigation; risks associated with development, including our ability to obtain financing, delays or failures in obtaining necessary permits and authorizations, the failure to achieve original project estimates and our limited history in conducting ground-up development projects; access to the capital markets and the cost and availability of capital; changes in the ratings of our debt securities; our level of indebtedness; the effect of economic and market conditions and changes in interest rates; maintaining compliance with our debt covenants and restrictions imposed by such covenants; the possibility that we could be required to repurchase some of our senior notes; increased competition in our business sector; adverse trends in the healthcare industry; tenant regulatory and licensing requirements and the effect of healthcare reform legislation or government regulations, including changes in the reimbursement levels under the Medicare and Medicaid programs; our ability to retain key personnel; changes in or inadvertent violations of tax laws and regulations and other factors that can affect our status as a real estate investment trust; and other factors discussed from time to time in our news releases, public statements and/or filings with the Securities and Exchange Commission, especially the "Risk Factors" sections of our Annual and Quarterly Reports on Forms 10-K and 10-Q. Forward-looking information is provided by us pursuant to the safe harbor established under the Private Securities Litigation Reform Act of 1995 and should be evaluated in the context of these factors. We disclaim any intent or obligation to update these forward-looking statements.

***Financial Tables to Follow***

                    NATIONWIDE HEALTH PROPERTIES, INC.
                      CONSOLIDATED INCOME STATEMENTS
                  (In thousands, except per share data)

                                 Three Months Ended       Year Ended
                                    December 31,          December 31,
                                --------------------  --------------------
                                  2010       2009       2010       2009
                                ---------  ---------  ---------  ---------
                                    (Unaudited)
Revenue:
  Triple-net lease rent         $  80,555  $  72,411  $ 307,567  $ 287,379
  Medical office building
   operating rent                  26,610     17,944    102,287     70,054
                                ---------  ---------  ---------  ---------
                                  107,165     90,355    409,854    357,433
  Interest and other income         9,492      6,690     29,397     26,420
                                ---------  ---------  ---------  ---------
                                  116,657     97,045    439,251    383,853
Expenses:
  Interest expense                 23,937     23,091     95,761     93,630
  Depreciation and amortization    34,290     30,862    134,540    121,032
  General and administrative        8,574      6,916     30,836     27,320
  Acquisition costs                 2,013        830      5,118        830
  Medical office building
   operating expenses              11,216      7,704     41,325     28,906
                                ---------  ---------  ---------  ---------
                                   80,030     69,403    307,580    271,718
                                ---------  ---------  ---------  ---------
Operating income                   36,627     27,642    131,671    112,135
  Income from unconsolidated
   joint ventures                   1,423      1,401      5,478      5,101
  Gain on debt extinguishment           -          -         75      4,564
                                ---------  ---------  ---------  ---------
Income from continuing
 operations                        38,050     29,043    137,224    121,800
Discontinued operations:
  Gains on sale of facilities,
   net                             10,461      2,756     16,948     23,908
  Impairment of asset             (15,006)         -    (15,006)         -
  Income from discontinued
   operations                       1,060        575      2,957      3,350
                                ---------  ---------  ---------  ---------
                                   (3,485)     3,331      4,899     27,258
                                ---------  ---------  ---------  ---------
Net income                         34,565     32,374    142,123    149,058
  Net loss (income)
   attributable to
   noncontrolling interests           748       (484)     1,643       (668)
                                ---------  ---------  ---------  ---------
Net income attributable to NHP     35,313     31,890    143,766    148,390
  Preferred stock dividends             -       (995)         -     (5,350)
                                ---------  ---------  ---------  ---------
Income available to NHP common
 stockholders                   $  35,313  $  30,895  $ 143,766  $ 143,040
                                =========  =========  =========  =========

Basic earnings per share (EPS):
  Income from continuing
   operations attributable to
   NHP common stockholders      $    0.31  $    0.24  $    1.13  $    1.08
  Discontinued operations
   attributable to NHP common
   stockholders                     (0.03)      0.03       0.04       0.26
                                ---------  ---------  ---------  ---------
  Net income attributable to
   NHP common stockholders      $    0.28  $    0.27  $    1.17  $    1.34
                                =========  =========  =========  =========

Diluted EPS:
  Income from continuing
   operations attributable to
   NHP common stockholders      $    0.30  $    0.24  $    1.11  $    1.06
  Discontinued operations
   attributable to NHP common
   stockholders                     (0.03)      0.03       0.04       0.25
                                ---------  ---------  ---------  ---------
  Net income attributable to
   NHP common stockholders      $    0.27  $    0.27  $    1.15  $    1.31
                                =========  =========  =========  =========

Weighted average shares
 outstanding for EPS:
  Basic                           125,975    112,575    121,687    106,329
                                =========  =========  =========  =========
  Diluted                         128,673    115,009    124,339    108,547
                                =========  =========  =========  =========



       RECONCILIATIONS OF NET INCOME TO NON-GAAP FINANCIAL MEASURES
                  (In thousands, except per share data)
                                (Unaudited)

           Reconciliation of Net Income to Adjusted Diluted FFO

                                 Three Months Ended       Year Ended
                                    December 31,          December 31,
                                --------------------  --------------------
                                  2010       2009       2010       2009
                                ---------  ---------  ---------  ---------

Net income                      $  34,565  $  32,374  $ 142,123  $ 149,058
  Preferred stock dividends             -       (995)         -     (5,350)
  Net loss (income)
   attributable to
   noncontrolling interests           748       (484)     1,643       (668)
  Real estate related
   depreciation and
   amortization                    34,337     31,415    135,245    123,666
  Depreciation in income from
   unconsolidated joint
   ventures                         1,184      1,272      4,793      5,209
  Gains on sale of facilities,
   net                            (10,461)    (2,756)   (16,948)   (23,908)
                                ---------  ---------  ---------  ---------
FFO available to NHP common
 stockholders                      60,373     60,826    266,856    248,007
  Series B preferred dividend
   add-back                             -        995          -      5,350
                                ---------  ---------  ---------  ---------
Diluted FFO                        60,373     61,821    266,856    253,357
  Acquisition costs                 2,013        830      5,118        830
  Impairment of asset              15,006          -     15,006          -
  Gain on extinguishment of
   debt                                 -          -        (75)    (4,896)
  Gain on re-measurement of
   equity interest upon
   acquisition, net                     -          -       (620)         -
                                ---------  ---------  ---------  ---------
Adjusted diluted FFO            $  77,392  $  62,651  $ 286,285  $ 249,291
                                =========  =========  =========  =========

Weighted average shares
 outstanding for diluted FFO:
  Diluted weighted average
   shares outstanding (1)         128,769    115,116    124,438    108,621
  Series B preferred stock
   conversion add-back if not
   already converted                    -      2,517         76      3,154
                                ---------  ---------  ---------  ---------
  Fully diluted weighted
   average shares outstanding     128,769    117,633    124,514    111,775
                                =========  =========  =========  =========

Diluted FFO per share           $    0.47  $    0.53  $    2.14  $    2.27
                                =========  =========  =========  =========
Adjusted diluted FFO per share  $    0.60  $    0.53  $    2.30  $    2.23
                                =========  =========  =========  =========

Dividends declared per common
 share                          $    0.47  $    0.44  $    1.82  $    1.76
                                =========  =========  =========  =========

Adjusted diluted FFO payout
 ratio                                 78%        83%        79%        79%
                                =========  =========  =========  =========
Adjusted diluted FFO coverage        1.28       1.20       1.26       1.27
                                =========  =========  =========  =========

(1) Diluted weighted average shares outstanding includes the effect of all
    participating and non-participating share-based payment awards which
    for us consists of stock options and other share-based payment awards
    if the effect is dilutive.  The dilutive effect of all share-based
    payment awards is calculated using the treasury stock method.
    Additionally, our redeemable OP units are included as if converted to
    common stock on a one-for-one basis.



                   NATIONWIDE HEALTH PROPERTIES, INC.
       RECONCILIATIONS OF NET INCOME TO NON-GAAP FINANCIAL MEASURES
               (In thousands, except per share data)
                            (Unaudited)

           Reconciliation of Net Income to Adjusted Diluted FAD

                                 Three Months Ended       Year Ended
                                    December 31,          December 31,
                                --------------------  --------------------
                                  2010       2009       2010       2009
                                ---------  ---------  ---------  ---------

Net income                      $  34,565  $  32,374  $ 142,123  $ 149,058
  Preferred stock dividends             -       (995)         -     (5,350)
  Net loss (income)
   attributable to
   noncontrolling interests           748       (484)     1,643       (668)
  Real estate related
   depreciation and
   amortization                    34,337     31,415    135,245    123,666
  Gains on sale of facilities,
   net                            (10,461)    (2,756)   (16,948)   (23,908)
   Straight-lined rent             (3,586)    (1,509)   (11,970)    (6,275)
   Amortization of intangible
    assets and liabilities            134       (157)       341       (564)
   Non-cash stock-based
    compensation expense            1,765      1,780      6,939      7,007
   Deferred financing cost
    amortization                    1,044        765      3,808      3,101
   Lease commissions and tenant
    and capital improvements       (1,875)    (1,257)    (4,931)    (4,733)
   Unconsolidated joint
    ventures:
     Real estate related
      depreciation and
      amortization                  1,184      1,272      4,793      5,209
     Straight-lined rent                9         17         16        (26)
     Amortization of intangible
      assets and liabilities            -          -          -          5
     Deferred finance cost
      amortization                     25         21         93         84
                                ---------  ---------  ---------  ---------
FAD available to NHP common
 stockholders                      57,889     60,486    261,152    246,606
  Series B preferred dividends          -        995          -      5,350
                                ---------  ---------  ---------  ---------
Diluted FAD                        57,889     61,481    261,152    251,956
  Acquisition costs                 2,013        830      5,118        830
  Impairment of asset              15,006          -     15,006          -
  Gain on extinguishment of
   debt                                 -          -        (75)    (4,896)
  Gain on re-measurement of
   equity interest upon
   acquisition, net                     -          -       (620)         -
                                ---------  ---------  ---------  ---------
Adjusted diluted FAD            $  74,908  $  62,311  $ 280,581  $ 247,890
                                =========  =========  =========  =========

Weighted average shares
 outstanding for diluted FAD:
  Diluted weighted average
   shares outstanding (1)         128,769    115,116    124,438    108,621
  Series B preferred stock
   add-back if not already
   converted                            -      2,517         76      3,154
                                ---------  ---------  ---------  ---------
  Fully diluted weighted
   average shares outstanding     128,769    117,633    124,514    111,775
                                =========  =========  =========  =========

Diluted FAD per share           $    0.45  $    0.52  $    2.10  $    2.25
                                =========  =========  =========  =========
Adjusted diluted FAD per share  $    0.58  $    0.53  $    2.25  $    2.22
                                =========  =========  =========  =========

Dividends declared per common
 share                          $    0.47  $    0.44  $    1.82  $    1.76
                                =========  =========  =========  =========

Adjusted diluted FAD payout
 ratio                                 81%        83%        81%        79%
                                =========  =========  =========  =========
Adjusted diluted FAD coverage        1.23       1.20       1.24       1.26
                                =========  =========  =========  =========

(1) Diluted weighted average shares outstanding includes the effect of all
    participating and non-participating share-based payment awards which
    for us consists of stock options and other share-based payment awards
    if the effect is dilutive.  The dilutive effect of all share-based
    payment awards is calculated using the treasury stock method.
    Additionally, our redeemable OP units are included as if converted to
    common stock on a one-for-one basis.



                    NATIONWIDE HEALTH PROPERTIES, INC.
                        CONSOLIDATED BALANCE SHEETS
                              (In thousands)

                                                  December 31, December 31,
                                                      2010         2009
                                                  -----------  -----------
Assets
  Investments in real estate:
    Land                                          $   339,534  $   318,457
    Buildings and improvements                      3,679,745    3,088,183
    Development in progress                            17,827            -
                                                  -----------  -----------
                                                    4,037,106    3,406,640
    Less accumulated depreciation                    (670,601)    (585,294)
                                                  -----------  -----------
                                                    3,366,505    2,821,346
    Mortgage loans receivable, net                    289,187      110,613
    Mortgage loan receivable from related party             -       47,500
    Investments in unconsolidated joint ventures       42,582       51,924
                                                  -----------  -----------
      Net real estate related investments           3,698,274    3,031,383
  Cash and cash equivalents                            59,591      382,278
  Receivables, net                                      8,336        6,605
  Assets held for sale                                  5,150            -
  Intangible assets                                   163,238       93,657
  Other assets                                        158,035      133,152
                                                  -----------  -----------
      Total assets                                $ 4,092,624  $ 3,647,075
                                                  ===========  ===========

Liabilities and Equity
  Unsecured senior credit facility                $   175,000  $         -
  Senior notes                                        991,633      991,633
  Notes and bonds payable                             362,624      431,456
  Accounts payable and accrued liabilities            151,069      132,915
                                                  -----------  -----------
   Total liabilities                                1,680,326    1,556,004

  Redeemable OP unitholder interests                   79,188       57,335

Equity:
  NHP stockholders' equity:
    Series B convertible preferred stock                    -       51,364
    Common stock                                       12,625       11,432
    Capital in excess of par value                  2,516,397    2,128,843
    Cumulative net income                           1,849,045    1,705,279
    Accumulated other comprehensive income (loss)       8,614         (823)
    Cumulative dividends                           (2,086,854)  (1,862,996)
                                                  -----------  -----------
    Total NHP stockholders' equity                  2,299,827    2,033,099
  Noncontrolling interests                             33,283          637
                                                  -----------  -----------
    Total equity                                    2,333,110    2,033,736
                                                  -----------  -----------
      Total liabilities and equity                $ 4,092,624  $ 3,647,075
                                                  ===========  ===========