Loan Receivable

6 Months Ended

Jun. 30, 2011

Loan Receivable

Loan Receivable

Note 5.  Loan Receivable

In May 2011, we and Five Star entered into a loan agreement under which we agreed to lend Five Star up to $80,000, or the Bridge Loan, to fund Five Star’s purchase of six senior living communities that Five Star had agreed to acquire for an aggregate purchase price of approximately $122,800.  In June 2011, Five Star acquired two of these senior living communities and borrowed $41,000 under the Bridge Loan.  Five Star subsequently repaid $32,000 of this advance in June 2011.  As of June 30, 2011, there was $9,000 outstanding and $39,000 available to borrow under the Bridge Loan.  In July 2011, Five Star acquired one more of these senior living communities and borrowed $15,000 under the Bridge Loan.  As of July 28, 2011, there is $24,000 outstanding and $24,000 available to borrow under this Bridge Loan.  The Bridge Loan is secured by mortgages on three of the senior living communities that Five Star acquired and on four other senior living communities owned by Five Star.  The Bridge Loan matures on July 1, 2012 and bears interest at a rate equal to the annual rates of interest applicable to our borrowings under our revolving credit facility, plus 1%.  We recognized interest income from this Bridge Loan of $58 in the three months ended June 30, 2011, which is included in interest and other income in our condensed consolidated statements of income.