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   &lt;div align="left" style="font-size: 10pt; margin-top: 10pt"&gt;&lt;b&gt;18. Related Party Transactions&lt;/b&gt;
   &lt;/div&gt;
   &lt;div align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%"&gt;In August&amp;#160;2008, Dr.&amp;#160;Jeffrey Rush became a director of NHP. In August&amp;#160;2008, we acquired for
   $3.5&amp;#160;million a 44.95% interest in PMB SB, an entity that owns two multi-tenant medical office
   buildings, and as of March&amp;#160;1, 2010, we acquired the remaining interest in PMB SB (see Note 6). Dr.
   Rush, through an unaffiliated entity, had an ownership interest in PMB SB.
   &lt;/div&gt;
   &lt;div align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%"&gt;In September&amp;#160;2008, we funded a mortgage loan secured by a multi-tenant medical office building
   in the amount of $47.5&amp;#160;million. As of February&amp;#160;1, 2010, we acquired the multi-tenant medical office
   building, and as a result, the loan was retired (see Notes 4 and 5). Dr.&amp;#160;Rush has an ownership
   interest in another unaffiliated entity that owned the multi-tenant medical office building that
   was security for this loan.
   &lt;/div&gt;
   &lt;div align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%"&gt;In February&amp;#160;2008, we entered into an agreement with Pacific Medical Buildings LLC to acquire a
   50% interest in PMBRES, a full service property management company (see Note 6). Dr.&amp;#160;Rush, through
   an unaffiliated entity, has an ownership interest in PMB Partners LLC which owns 50% of PMBRES.
   &lt;/div&gt;
   &lt;div align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%"&gt;We have entered into an agreement with PMB Pomona LLC to acquire a medical office building
   currently in development for $37.5&amp;#160;million upon completion which was amended as of February&amp;#160;1, 2010
   to provide for the future acquisition of the medical office building by NHP/PMB. Dr.&amp;#160;Rush, through
   an unaffiliated entity, has an ownership interest in PMB Pomona LLC. We also entered into an
   agreement with PMB LLC, the manager of PMB Pomona LLC, to extend up to $3.0&amp;#160;million of funding at
   an interest rate of 7.25%, which was secured by 100% of the membership interests in PMB Pomona LLC
   (see Note 17).
   &lt;/div&gt;
   &lt;div align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%"&gt;As of March&amp;#160;1, 2010, NHP/PMB became obligated to pay $2.1&amp;#160;million under the Contribution
   Agreement, of which $1.9&amp;#160;million was paid to Pacific Medical Buildings LLC in cash (see Note 5).
   Dr.&amp;#160;Rush is the Chairman of and owns an interest in Pacific Medical Buildings LLC. In addition, Dr.
   Rush and certain of his family members own or owned interests, directly and indirectly through
   partnerships and trusts, in the entities that contributed the five multi-tenant medical office
   buildings acquired by NHP/PMB, Gilbert JV and Pasadena JV during the nine months ended September
   30, 2010 (see Note 6), in PMB Mission Hills 1 LLC (see Note 6) and/or own the remaining development
   property that may be acquired in the future under the Contribution Agreement.
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