Profile: Nationwide Health Properties, Inc. (NHP)

Nationwide Health Properties, Inc. (NHP), incorporated on October 14, 1985, is a real estate investment trust (REIT) that invests primarily in healthcare-related senior housing, long-term care properties and medical office buildings. As of December 31, 2008, the Company had investments in 583 healthcare facilities located in 43 states. Its operations are organized into two segments: triple-net leases and multi-tenant leases. In the triple-net leases segment, NHP invests in healthcare related properties and lease the facilities to unaffiliated tenants. In the multi-tenant leases segment, it invests in healthcare related properties that have several tenants under separate leases. As of December 31, 2008, approximately 93% of NHP’s revenues are derived from its leases, with the remaining 7% from the Company’s mortgage loans and other financing activities.

As of December 31, 2008, the Company’s directly owned facilities, other than its multi-tenant medical office buildings, most of which are operated by its consolidated joint ventures, were operated by 84 different healthcare providers, including Assisted Living Concepts, Inc; Brookdale Senior Living, Inc; Emeritus Corporation; Extendicare, Inc; HEALTHSOUTH Corporation; Kindred Healthcare, Inc, and Sun Healthcare Group, Inc. Two of NHP’s triple-net lease tenants, Brookdale Senior Living, Inc. and Hearthstone Senior Services, L.P. accounted for more than 10% of the Company’s revenues at December 31, 2008.

During the year ended December 31, 2008, NHP acquired 18 assisted and independent living facilities, 11 skilled nursing facilities and 12 medical office buildings subject to triple-net master leases. In April 2008, NHP formed NHP/PMB L.P. (NHP/PMB), to acquire properties from entities affiliated with PMB. During 2008, NHP/PMB acquired PMB’s affiliates’ interests in nine of the 18 medical office buildings, including one property which is included in its triple-net leases segment and eight properties which are multi-tenant medical office buildings, During 2008, it also acquired one of the 18 medical office buildings directly (not through NHP/PMB). At December 31, 2008, NHP held 15 mortgage loans receivable secured by 17 skilled nursing facilities, nine assisted and independent living facilities, one medical office building and one land parcel.

Senior Housing/Assisted and Independent Living Facilities

Assisted and independent living facilities offer studio, one bedroom and two bedroom apartments on a month-to-month basis primarily to elderly individuals, including those with Alzheimer’s or related dementia, with various levels of assistance requirements. Assisted and independent living residents are provided meals and eat in a central dining area; assisted living residents may also be assisted with some daily living activities with programs and services that allow residents certain conveniences and make it possible for them to live as independently as possible, staff is also available when residents need assistance and for group activities. Services provided to residents who require more assistance with daily living activities, but who do not require the constant supervision skilled nursing facilities provide, include personal supervision and assistance with eating, bathing, grooming and administering medication. Charges for room, board and services are generally paid from private sources.

Long-Term Care/Skilled Nursing Facilities

Skilled nursing facilities provide rehabilitative, restorative, skilled nursing and medical treatment for patients and residents who do not require the high-technology, care-intensive, high-cost setting of an acute care or rehabilitative hospital. Treatment programs include physical, occupational, speech, respiratory and other therapeutic programs, including sub-acute clinical protocols, such as wound care and intravenous drug treatment.

Continuing Care Retirement Communities

Continuing care retirement communities provide a continuum of care. At the most basic level, independent living residents might receive meal service, maid service or other services as part of their monthly rent. Services, which aid in everyday living, are provided to other residents, much like in an assisted living facility. At the far end of the spectrum, skilled nursing, rehabilitation and medical treatment are provided to residents who need those services. This type of facility consists of independent living units, dedicated assisted living units and licensed skilled nursing beds on one campus.

Specialty Hospitals

Rehabilitation hospitals provide inpatient and outpatient medical care to patients requiring high intensity physical, respiratory, neurological, orthopedic or other treatment protocols and for intermediate periods in their recovery. These programs are often effective in treating severe skeletal or neurological injuries and traumatic diseases, such as stroke and acute arthritis. Long-term acute care hospitals serve medically complex, chronically ill patients. These hospitals have the capability to treat patients who suffer from multiple systemic failures or conditions, such as neurological disorders, head injuries, brain stem and spinal cord trauma, cerebral vascular accidents, chemical brain injuries, central nervous system disorders, developmental anomalies and cardiopulmonary disorders.

Medical Office Buildings

Medical office buildings are typically on or near an acute care hospital campus. They usually house several different unrelated medical practices, although they can be associated with a large single-specialty or multi-specialty group. Tenants include physicians, dentists, psychologists, therapists and other healthcare providers, with space devoted to patient examination and treatment, diagnostic imaging, outpatient surgery and other outpatient services.

The Company competes with HCP, Inc., Health Care REIT, Inc., Healthcare Realty Trust Incorporated, LTC Properties, Inc., Omega Healthcare Investors, Inc., Senior Housing Properties Trust and Ventas, Inc.