Measured in terms of Funds From Operations, the REIT's earnings were slightly lower than the $25.2 million or $0.54 per diluted share for the same period in 2000. For the first six months of 2001, the diluted FFO per share was $1.04 compared to $1.07 for the same period last year.

Revenues totaled $42.6 million during the second quarter 2001, compared to $43.1 million for the second quarter of 2000. Diluted net income available to common shareholders for the first six months was also lower, declining to $0.63 per share from $0.69 per share for the first half of 2000.

"Financially, the results for the second quarter and the first half of the year are in line with management's expectations," said R. Bruce Andrews, NHP's president and CEO. "All the factors that will enable the company to start growing earnings and dividends in the coming years appear to be in place."