Concentration of Credit Risk

12 Months Ended

Dec. 31, 2014

Note 9. Concentration of Credit Risk

The assets included in these financial statements are primarily income producing senior housing and healthcare related real estate located throughout the United States. The following is a summary of the assets leased and rents earned from our significant lessee as of and for the years ended December 31, 2014 and 2013:


	At				At
	December 31, 2014				December 31, 2013
	Investment(1)		% of Total		Investment(1)		% of Total
Five Star	$	2,125,517	34	%	$	2,099,713	40	%
All others		4,113,094	66	%		3,163,912	60	%
	$	6,238,611	100	%	$	5,263,625	100	%


	Year Ended				Year Ended
	December 31, 2014				December 31, 2013
	Rental income		% of Total		Rental income		% of Total
Five Star	$	196,269	37	%	$	203,719	44	%
All others		330,434	63	%		255,661	56	%
	$	526,703	100	%	$	459,380	100	%

(1)

Represents real and personal property leased to our tenants at historical cost after impairment losses and before depreciation. Excludes properties classified as held for sale.

As discussed above, Five Star is our former subsidiary. At December 31, 2014, rental income from Five Star represented 37% of our annualized rental income and the properties Five Star leases from us represented 34% of our investments, at cost, as of December 31, 2014. As of December 31, 2014, Five Star also managed a portfolio of 46 senior living communities for our account.

See Note 5 for further information relating to our leases and management arrangements with Five Star.

- Definition

The entire disclosure for any concentrations existing at the date of the financial statements that make an entity vulnerable to a reasonably possible, near-term, severe impact. This disclosure informs financial statement users about the general nature of the risk associated with the concentration, and may indicate the percentage of concentration risk as of the balance sheet date.

+ References+ Details