For Release:  March 11, 2005

Contact:  Gerald Coggin, Senior VP of Corporate Relations

Phone:  (615) 890-2020

NHR to pay 33.25 cent dividend

            MURFREESBORO, Tenn. -- National Health Realty, Inc., (AMEX: NHR) a real estate investment trust, announced today that it will pay a 33.25 cent per common share first quarter dividend to shareholders of record on March 31 and payable on April 15.

NHR owns the real property of 16 skilled nursing facilities, six assisted living centers and one retirement center.  NHR also owns first and second mortgage notes totaling $13.6 million.  These notes are secured by operating skilled nursing facilities and other health care properties.  Additional information including NHR’s most recent press releases may be obtained on NHR’s web site at www.nationalhealthrealty.com.  The company trades on the American Stock Exchange with the symbol NHR.

Statements in this press release that are not historical facts are forward-looking statements. NHR cautions investors that any forward-looking statements made involve risks and uncertainties and are not guarantees of future performance. All forward-looking statements represent NHR’s best judgment as of the date of this release.