FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

Quarterly Report Under Section 13 of 15(d)

of the Securities Exchange Act of 1934

For quarter ended March 31, 2004 Commission file number 33-41863

                           NATIONAL HEALTH INVESTORS, INC.                            

(Exact name of registrant as specified in its Charter)

               Maryland                               62-1470956               
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
100 Vine Street
           Murfreesboro, TN                               37130                    
(Address of principal (Zip Code)
executive offices)
Registrant's telephone number, including area code (615) 890-9100
Indicate by check mark whether the registrant
          (1)     Has filed all reports required to be filed by Section 13 or 15(d), of the Securities
                    Exchange Act of 1934 during the preceding 12 months.

Yes x

No
          (2)     Has been subject to such filing requirements for the past 90 days.

Yes x

No
Indicate by check mark whether the registrant is an accelerated filer. Yes x No
27,483,325 shares of common stock were outstanding as of April 30, 2004.



PART I. FINANCIAL INFORMATION
Item 1. Financial Statements.
NATIONAL HEALTH INVESTORS, INC.
INTERIM CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except share and per share amounts)
March 31, December 31,
2004 2003
(unaudited)
ASSETS
     Real estate properties:
          Land $ 33,600 $ 33,600
          Buildings and improvements 366,388 366,215
          Construction in progress 679 588
400,667 400,403
          Less accumulated depreciation (114,504) (110,938)
               Real estate properties, net 286,163 289,465
     Mortgage and other notes receivable, net 143,556 149,892
     Investment in preferred stock 38,132 38,132
     Investment in real estate mortgage investment conduits 16,407 16,043
     Cash and cash equivalents 102,212 93,687
     Marketable securities 22,611 26,835
     Accounts receivable 4,562 4,309
     Deferred costs and other assets 8,594 6,003
          Total Assets $622,237 $624,366
LIABILITIES
Unsecured public notes $100,000 $100,000
     Debt 57,304 62,100
     Convertible subordinated debentures 1,210 1,351
     Accounts payable and other accrued expenses 32,736 30,882
     Accrued interest 1,565 3,409
     Dividends payable 11,386 13,385
     Deferred income 3,525 3,595
          Total Liabilities 207,726 214,722
     Commitments and guarantees
STOCKHOLDERS' EQUITY
     Cumulative convertible preferred stock,
          $.01 par value; 10,000,000 shares authorized, 747,994
shares, issued and outstanding, stated at
           liquidation preference of $25 per share 18,700 18,700
     Common stock, $.01 par value; 40,000,000 shares authorized; 26,790,263
          and 26,770,123 shares, respectively, issued and outstanding 267 267
     Capital in excess of par value of common stock 441,319 441,178
     Cumulative net income 515,856 502,421
     Cumulative dividends (575,464) (563,681)
     Unrealized gains on marketable securities 13,833 10,759
          Total Stockholders' Equity 414,511 409,644
          Total Liabilities and Stockholders' Equity $622,237 $624,366


The accompanying notes to interim condensed consolidated financial statements are an integral part of these financial statements.

The interim condensed balance sheet at December 31, 2003 is taken from the audited financial statements at that date.

NATIONAL HEALTH INVESTORS, INC.

INTERIM CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

Three Months Ended
March 31
2004 2003
REVENUES:

(in thousands, except share and per share amounts)

     Mortgage interest income $ 4,851 $ 5,543
     Rental income 12,213 13,357
     Investment interest and other income 2,133 1,644
     Facility operating revenue 20,400 19,121
39,597 39,665
EXPENSES:
     Interest 3,120 3,988
     Depreciation 3,538 3,773
     Amortization of loan costs 37 183
     Legal expense 149 (81)
     Franchise and excise tax 70 396
     General and administrative 856 714
     Loan and security (recoveries) losses (1,989) 1,500
     Facility operating expense 20,202 18,662
25,983 29,135
INCOME FROM CONTINUING OPERATIONS 13,614 10,530
Discontinued Operations
Operating loss - discontinued (179) (342)
Gain on sale of real estate -- 1,932
(179) 1,590
NET INCOME 13,435 12,120
DIVIDENDS TO PREFERRED STOCKHOLDERS 397 397
NET INCOME APPLICABLE TO COMMON STOCK $13,038 $ 11,723
INCOME FROM CONTINUING OPERATIONS PER COMMON SHARE:
     Basic $ .49 $ .38
     Diluted $ .49 $ .37
DISCONTINUED OPERATIONS PER COMMON SHARE:
Basic $ .00 $ .06
Diluted $ (.01) $ .06
NET INCOME PER COMMON SHARE:
Basic $ .49 $ .44
Diluted $ .48 $ .43
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:
     Basic 26,782,468 26,688,984
     Diluted 27,071,585 26,944,523
Common dividends per share declared $ .425 $ .40



The accompanying notes to interim condensed consolidated financial statements are an integral part of these financial statements.

NATIONAL HEALTH INVESTORS, INC.
INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
Three Months Ended
March 31
2004 2003

(in thousands)

CASH FLOWS FROM OPERATING ACTIVITIES:
     Net income $ 13,435 $ 12,120
     Depreciation 3,567 3,888
     Loan and security (recoveries) losses (1,989) 1,500
Gain on sale of real estate -- (1,932)
     Amortization of loan costs 37 183
Realized gain on sale of marketable securities (668) --
     Amortization of bond discount (8) (8)
Amortization of REMIC discount (709) --
     Amortization of deferred income (70) (394)
     Increase in accounts receivable (253) (1,283)
     Increase in deferred costs and other assets (2,628) (1,642)
     Increase (decrease) in accounts payable and accrued liabilities 1,854 (1,132)
Decrease in accrued interest payable (1,844) (3,004)
          NET CASH PROVIDED BY OPERATING ACTIVITIES 10,724 8,296
CASH FLOWS FROM INVESTING ACTIVITIES:
Investment in mortgage notes -- (1,681)
     Collection of mortgage and other notes receivable 5,888 7,793
Disposition of mortgage notes receivable 1,750 --
Collection of real estate mortgage investment conduits 345 --
     Acquisition of property and equipment, net (265) (239)
Disposition of property and equipment, net --- 4,045
     Decrease in marketable securities, net 8,661 ---
          NET CASH PROVIDED BY INVESTING ACTIVITIES 16,379 9,918
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from debt -- 6,215
     Principal payments on debt (4,796) (1,372)
     Redemption of subordinated convertible debentures -- (39,917)
     Dividends paid to shareholders (13,782) (9,737)
          NET CASH USED IN FINANCING ACTIVITIES (18,578) (44,811)
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 8,525 (26,597)
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 93,687 43,062
CASH AND CASH EQUIVALENTS, END OF PERIOD $102,212 $ 16,465

(continued)



NATIONAL HEALTH INVESTORS, INC.

INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)
Three Months Ended
March 31
2004 2003
(in thousands)
Supplemental Information:
     Cash payments for interest expense $ 3,779 $ 5,181
During the three months ended March 31, 2004 and 2003, $141,000 and
$145,000 of Senior Subordinated Convertible Debentures were con-
verted into 20,140 and 20,710 shares of NHI's common stock:
                 Senior subordinated convertible debentures $ (141) $ (145)
                 Financing costs -- 1
                 Accrued interest -- (2)
                 Common stock -- --
                 Capital in excess of par 141 146
During the three months ended March 31, 2003, NHI acquired
property in exchange for its rights under mortgage notes receivable:
Mortgage notes receivable $ -- $ 13,069
Land -- (1,096)
Buildings and improvements -- (11,973)





The accompanying notes to interim condensed consolidated financial statements are an integral part of these financial statements.

NATIONAL HEALTH INVESTORS, INC.

INTERIM CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
FOR THE THREE MONTHS ENDED MARCH 31, 2004 AND 2003
( in thousands, except share and per share amounts)

Cumulative Convertible

 Unrealized Total
Preferred Stock Capital in Gains Stock-
Shares Amount Common Stock Excess of Cumulative Cumulative (losses) on holders'
at $25 per Share Shares Amount Par Value Net Income Dividends Securities Equity
BALANCE AT 12/31/03 747,994 $18,700 26,770,123 $267 $441,178 $502,421 $(563,681) $ 10,759 $409,644
Net income --- --- --- --- --- 13,435 --- --- 13,435
Unrealized gains on securities --- --- --- --- --- --- --- 3,074 3,074
Total Comprehensive Income 16,509
Shares issued in conversion of convertible
   debentures to common stock --- --- 20,140 -- 141 --- --- --- 141
Dividends to common stockholders --- --- --- --- --- --- (11,386) --- (11,386)
Dividends to preferred stockholders --- --- --- --- --- --- (397) --- (397)
BALANCE AT 3/31/04 747,994 $18,700 26,790,263 $267 $441,319 $515,856 $(575,464) $ 13,833 $414,511
BALANCE AT 12/31/02 747,994 $18,700 26,682,994 $266 $440,360 $458,613 $(516,632) $ (878) $400,429
Net income --- --- --- --- --- 12,120 --- --- 12,120
Unrealized losses on securities --- --- --- --- --- --- --- (296) (296)
Total Comprehensive Income 11,824
Shares issued in conversion of convertible
debentures to common stock --- --- 20,710 --- 146 --- --- --- 146
Dividends to common stockholders --- --- --- --- --- --- (10,682) --- (10,682)
Dividends to preferred stockholders --- ---