10-Q/A

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q/A

Amendment No. 1

(Mark One)

    x     QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2012

or

    ¨     TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from        to        

Commission File Number 000-53969

SENTIO HEALTHCARE PROPERTIES, INC.

(Exact name of registrant as specified in its charter)

MARYLAND	20-5721212
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
189 South Orange Avenue, Suite 1700, Orlando, FL	32801
(Address of principal executive offices)	(Zip Code)

407-999-7679

(Registrant’s telephone number, including area code)

Not Applicable

(Former name, former address and former fiscal year, if changed since last report)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by section 13 or 15(d) of the Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    x  Yes    ¨  No

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (Sec.232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    x  Yes    ¨  No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company. See the definitions of “large accelerated filer”, “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. Check one:

Large accelerated filer	¨	Accelerated filer	¨
Non-accelerated filer	¨	Smaller reporting company	x

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    ¨  Yes    x  No

As of August 17, 2012, there were 12,853,819 shares of common stock of Sentio Healthcare Properties, Inc. outstanding.

Explanatory Note

The purpose of this Amendment No. 1 to Sentio Healthcare Properties, Inc.’s Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2012, filed with the Securities and Exchange Commission on August 20, 2012 (the “Form 10-Q”), is solely to furnish Exhibit 101 to the Form 10-Q in accordance with Rule 405 of Regulation S-T. Exhibit 101 to the Form 10-Q provides the consolidated financial statements and related notes from the Form 10-Q formatted in XBRL (eXtensible Business Reporting Language).

No other changes have been made to the Form 10-Q. This Amendment No. 1 to the Form 10-Q speaks as of the original filing date of the Form 10-Q, does not reflect events that may have occurred subsequent to the original filing date, and does not modify or update in any way disclosures made in the original Form 10-Q.

Pursuant to Rule 406T of Regulation S-T, the XBRL (Extensible Business Reporting Language) information contained in Exhibit 101 is furnished and not filed or a part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933, is deemed not filed for purposes of Section 18 of the Securities Exchange Act of 1934, and otherwise is not subject to liability under these sections.

Item 6. Exhibits

Ex.	Description
3.1*	Articles of Amendment and Restatement of the Registrant, as amended on December 29, 2009 and January 24, 2012 (incorporated by reference to Exhibit 3.1 to the Registrant’s annual report on Form 10-K for the year ended December 31, 2011).
3.2*	Amended and Restated Bylaws of the Registrant (incorporated by reference to Exhibit 3.2 to the Registrant’s current report on Form 8-K filed January 25, 2012).
3.3*	Amended and Restated Limited Partnership Agreement of Sentio Healthcare Properties OP, L.P., dated January 25, 2012 (incorporated by reference to Exhibit 3.2 to the Registrant’s current report on Form 8-K filed January 25, 2012).
4.1*	Subscription Agreement (incorporated by reference to Appendix A to the Registrant’s prospectus filed on February 7, 2011).
4.2*	Statement regarding restrictions on transferability of the Registrant’s shares of common stock (to appear on stock certificate or to be sent upon request and without charge to stockholders issued shares without certificates) (incorporated by reference to Exhibit 4.2 to Pre-Effective Amendment No. 2 to the Registration Statement on Form S-11 (No. 333-139704) filed on June 15, 2007 (“Pre-Effective Amendment No. 2”).
4.3*	Amended and Restated Distribution Reinvestment Plan (incorporated by reference to Appendix B to the Registrant’s prospectus filed on February 7, 2011).
10.1*	Multifamily Loan and Security Agreement by and Between Forestview Manor, LLC, and KeyCorp Real Estate Capital Markets, Inc., dated June 11, 2012 with Schedule disclosing other essentially similar Loan and Security Agreements (incorporated by reference to Exhibit 10.1 to the Registrant’s current report on Form 8-K filed June 14, 2012).
10.2*	Purchase and Sale Agreement dated as of May 7, 2012 by and among Sentio Leah Bay, LLC, as Buyer, and Urbana Care Group LLC, Springfield Care Group LLC, Bryan Care Group, LP and Erwin Family Properties I, L.L.C., as Seller, and Fidelity National Title Agency, Inc., as Escrow Agent.
10.3*	First Amendment dated as of June 21, 2012 to Purchase and Sale Agreement dated as of May 7, 2012 by and among Sentio Leah Bay, LLC, as Buyer, and Urbana Care Group LLC, Springfield Care Group LLC, Bryan Care Group, LP and Erwin Family Properties I, L.L.C., as Seller, and Fidelity National Title Agency, Inc., as Escrow Agent.
10.4*	Assignment and Assumption of Purchase and Sale Agreement dated as of June 28, 2012 by and between Sentio Leah Bay LLC and Sentio Leah Bay Portfolio LLC.
31.1*	Certification of Principal Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2*	Certification of Principal Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1*	Certification of Principal Executive Officer and Principal Financial Officer, pursuant to 18 U.S.C. Section 1350, as created by Section 906 of the Sarbanes-Oxley Act of 2002.
32.2*	Certification of Principal Executive Officer and Principal Financial Officer, pursuant to 18 U.S.C. Section 1350, as created by Section 906 of the Sarbanes-Oxley Act of 2002.
101.INS**	XBRL Instance Document
101.SCH**	XBRL Taxonomy Extension Schema Document
101.CAL**	XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF**	XBRL Taxonomy Extension Definition Linkbase Document
101.LAB**	XBRL Taxonomy Extension Label Linkbase Document
101.PRE**	XBRL Taxonomy Extension Presentation Linkbase Document

* These exhibits were previously included or incorporated by reference in Sentio Healthcare Properties, Inc.’s Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2012, filed with the Securities and Exchange Commission on August 20, 2012.

** Furnished with this Amendment No. 1.

SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this quarterly report to be signed on its behalf by the undersigned, thereunto duly authorized this 24th day of August 2012.

SENTIO HEALTHCARE PROPERTIES, INC.
By:	/s/ JOHN MARK RAMSEY
	John Mark Ramsey, President and Chief Executive Officer
	(Principal Executive Officer)
By:	/s/ SHARON C. KAISER
	Sharon C. Kaiser, Chief Financial Officer
	(Principal Financial Officer and Principal Accounting Officer)

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Allowance for Doubtful Accounts (Details) (USD $)	Jun. 30, 2012	Dec. 31, 2011
Allowance for Doubtful Accounts (Textual) [Abstract]
Allowances for doubtful accounts related to tenants and other receivables	$ 65,000	$ 76,000

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Related Party Transactions (Details) (USD $)	3 Months Ended		6 Months Ended			3 Months Ended		6 Months Ended	3 Months Ended		6 Months Ended				3 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011	Dec. 31, 2011	Mar. 31, 2011 Maximum [Member]	Jun. 30, 2012 2012 Advisory Agreement [Member]	Jun. 30, 2012 2012 Advisory Agreement [Member]	Jun. 30, 2011 2011 Advisory Agreement [Member]	Mar. 31, 2011 2011 Advisory Agreement [Member]	Jun. 30, 2012 2011 Advisory Agreement [Member]	Jun. 30, 2011 2011 Advisory Agreement [Member]	Jun. 30, 2012 Omnibus Agreement [Member]	Dec. 31, 2011 Omnibus Agreement [Member]	Jun. 30, 2012 Pacific Cornerstone Capital, Inc. [Member]	Apr. 29, 2011 Pacific Cornerstone Capital, Inc. [Member] Maximum [Member]
Related Party Transactions (Textual) [Abstract]
Related party transactions , agreement date								Jan. 01, 2012			Jul. 29, 2011
Total organizational and offering costs	$ 5,100,000		$ 5,100,000		$ 5,100,000								$ 800,000	$ 800,000
Percentage of acquisition fees equal to investments								1.00%			2.00%
Percentage of proceeds from gross offering	3.50%		3.50%													7.00%
Percentage of manager fee excess of gross offering	13.50%		13.50%													3.00%
Operating expenses reimbursed and included in general and administrative expenses							0	0	400,000			800,000
Net loss	(393,000)	(1,618,000)	(640,000)	(3,471,000)
Percentage of gross proceeds from sales in primary offerings						0.50%				13.50%
Sales commission and dealer manager fee			1,700,000												300,000
Financing coordination fees							200,000	200,000
Related Party Transactions (Additional Textual) [Abstract]
Organizational cost	100,000		100,000		100,000
Offering costs	5,000,000		5,000,000		5,000,000
Initial public offering cost	4,000,000		4,000,000		4,000,000
Follow on offering cost	1,000,000		1,000,000		1,000,000
Acquisition expenses	190,000	514,000	206,000	1,431,000
Acquisition fees not allocated		900,000		900,000
Asset management fee	0.08%
Management fees	500,000	400,000	1,000,000	800,000
Asset management fee included in management fee		200,000
Percentage of average invested assets	2.00%
Percentage of net income	25.00%
Management fee and expenses and operating expenses	5,000,000
Disposition fee	1.00%
Real estate commission	6.00%
Percent of investment invested in capital plus	7.00%
Payment percentage on subordinated participation in net sale or refinancing proceeds	0.50%
Promissory note bearing simple interest rate	5.00%
Acquisition cost earned by Prior Advisor		0.2		0.5
Comparable fees			0
Increase in net loss	$ 1,600,000

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Notes Payable (Details) (USD $)	6 Months Ended
	Jun. 30, 2012	Dec. 31, 2011
Summary of covenants and requirements outstanding
Outstanding Principal Beginning Balance	$ 111,446,000	$ 85,978,000
Carriage Court of Hilliard [Member]
Summary of covenants and requirements outstanding
Payment Type	Principal and interest at a 35-year amortization rate
Interest Rate	5.40% — fixed
Outstanding Principal Beginning Balance	13,364,000	13,440,000
Maturity Date	Aug. 01, 2044
Caruth Haven Court [Member]
Summary of covenants and requirements outstanding
Payment Type	Principal and interest at a 30-year amortization rate
Interest Rate	6.43% — fixed
Outstanding Principal Beginning Balance	9,736,000	9,793,000
Maturity Date	Dec. 16, 2019
Greentree [Member]
Summary of covenants and requirements outstanding
Payment Type	Principal and interest at a 30-year amortization rate
Interest Rate	4.45% — fixed
Outstanding Principal Beginning Balance	3,865,000	2,832,000
Maturity Date	Jul. 01, 2019
Forestview Manor [Member]
Summary of covenants and requirements outstanding
Payment Type	Principal and interest at a 30-year amortization rate
Interest Rate	4.45% — fixed
Outstanding Principal Beginning Balance	8,775,000	5,935,000
Maturity Date	Jul. 01, 2019
Global Rehab Inpatient Rehab Facility [Member]
Summary of covenants and requirements outstanding
Payment Type	Principal and interest at a 30-year amortization rate
Interest Rate	6.25% — fixed for 3 years; thereafter the greater of 6.25% and 3yr LIBOR+ 3.25%
Outstanding Principal Beginning Balance	7,396,000	7,441,000
Maturity Date	Dec. 22, 2016
Hedgcoxe Health Plaza [Member]
Summary of covenants and requirements outstanding
Payment Type	Interest only
Interest Rate	30-day LIBOR + 4.00% with a 2% LIBOR floor
Outstanding Principal Beginning Balance	5,060,000	5,060,000
Maturity Date	Jul. 31, 2012
Mesa Vista Inn Health Center [Member]
Summary of covenants and requirements outstanding
Payment Type	Principal and interest at a 20-year amortization rate
Interest Rate	6.50% — fixed
Outstanding Principal Beginning Balance	7,033,000	7,136,000
Maturity Date	Jan. 05, 2015
Oakleaf Village Portfolio [Member]
Summary of covenants and requirements outstanding
Payment Type	Principal and interest at a 30-year amortization rate
Interest Rate	5.45% plus the greater of 1% or the 3 month LIBOR
Outstanding Principal Beginning Balance	17,538,000	17,644,000
Maturity Date	Apr. 30, 2015
River's Edge of Yardley [Member]
Summary of covenants and requirements outstanding
Payment Type	Principal and interest at a 30-year amortization rate
Interest Rate	4.45% — fixed
Outstanding Principal Beginning Balance	6,500,000	2,500,000
Maturity Date	Jul. 01, 2019
Rome LTACH Project [Member]
Summary of covenants and requirements outstanding
Payment Type	Principal and interest at a 30-year amortization rate
Interest Rate	4.45% — fixed
Outstanding Principal Beginning Balance	13,509,000
Maturity Date	Mar. 31, 2017
The Oaks Bradenton [Member]
Summary of covenants and requirements outstanding
Payment Type	Principal and interest at a 30-year amortization rate
Interest Rate	4.45% — fixed
Outstanding Principal Beginning Balance	4,095,000	2,697,000
Maturity Date	Jul. 01, 2019
Terrace at Mountain Creek [Member]
Summary of covenants and requirements outstanding
Payment Type	Principal and interest at a 30-year amortization rate
Interest Rate	4.45% — fixed
Outstanding Principal Beginning Balance	8,775,000	5,700,000
Maturity Date	Jul. 01, 2019
Woodland Terrace at the Oaks [Member]
Summary of covenants and requirements outstanding
Payment Type	Months 1-22 interest only. Month 23 to maturity principal and interest at a 25-year amortization rate
Interest Rate	3Mo LIBOR +3.75% with a floor of 5.75%
Outstanding Principal Beginning Balance	$ 5,800,000	$ 5,800,000
Maturity Date	May 01, 2014

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Business Combinations (Details) (USD $)	3 Months Ended		6 Months Ended				6 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012 Forestview Manor [Member]	Jan. 14, 2011 Forestview Manor [Member]	Jun. 30, 2012 Sunrise of Allentown [Member]	Apr. 14, 2011 Sunrise of Allentown [Member]	Jun. 30, 2012 Rome LTACH Project [Member]
Summary of purchase price of the acquired property
Land					$ 1,320,000		$ 1,000,000
Buildings & improvements					6,803,000		6,395,000		16,300,000
Site improvements					1,040,000		350,000
Furniture & fixtures					350,000	10,800,000	220,000	9,000,000
Intangible assets					960,000		590,000		2,018,000
Goodwill					277,000		445,000		545,000
Real estate acquisition					10,750,000		9,000,000		18,843,000
Acquisition expenses	$ 190,000	$ 514,000	$ 206,000	$ 1,431,000	$ 160,000		$ 142,000		$ 182,000

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Segment Reporting (Details 1) (USD $)	Jun. 30, 2012	Dec. 31, 2011	Jun. 30, 2011	Dec. 31, 2010
Investments in real estate:
Total reportable segments	$ 143,410,000	$ 127,827,000
Reconciliation to consolidated assets:
Cash and cash equivalents	31,958,000	27,972,000	31,024,000	29,718,000
Deferred financing costs, net	1,508,000	824,000
Tenant and other receivables, net	2,159,000	1,366,000
Deferred costs and other assets	2,357,000	1,938,000
Investment in an unconsolidated entities	3,629,000	3,387,000
Restricted cash	3,424,000	3,806,000
Goodwill	6,510,000	5,965,000
Total assets	194,955,000	173,085,000
Senior living operations [Member]
Investments in real estate:
Total reportable segments	91,053,000	92,975,000
Reconciliation to consolidated assets:
Goodwill	6,500,000	6,000,000
Triple-net leased properties [Member]
Investments in real estate:
Total reportable segments	44,028,000	26,366,000
Medical office building [Member]
Investments in real estate:
Total reportable segments	$ 8,329,000	$ 8,486,000

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Summary of Significant Accounting Policies (Details) (USD $)	6 Months Ended
	Jun. 30, 2012	Dec. 31, 2011
Summary of Significant Accounting Policies (Textual) [Abstract]
Fair value of notes payable	$ 113,200,000	$ 87,000,000
Carrying values of notes payable	111,446,000	85,978,000
Fair value of recorded equity method investment	6,000,000
Income (Loss) from Equity Method Investments	$ 1,300,000

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Business Combinations (Details Textual) (USD $)	3 Months Ended		6 Months Ended			3 Months Ended	6 Months Ended			3 Months Ended	6 Months Ended				6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011	Dec. 31, 2011	Jun. 30, 2011 Forestview Manor [Member]	Jun. 30, 2011 Forestview Manor [Member]	Jun. 30, 2012 Forestview Manor [Member]	Jan. 14, 2011 Forestview Manor [Member]	Jun. 30, 2011 Sunrise of Allentown [Member]	Jun. 30, 2011 Sunrise of Allentown [Member]	Jun. 30, 2012 Sunrise of Allentown [Member]	Apr. 14, 2011 Sunrise of Allentown [Member]	Jan. 12, 2010 Floyd Medical Center [Member]	Jun. 30, 2012 Rome LTH Partners, LP [Member]	Jan. 12, 2010 Rome LTH Partners, LP [Member]	Jan. 12, 2010 Rome LTH Partners, LP [Member] Cornerstone Private Equity Fund Operating Partnership, LP [Member]	Jan. 12, 2010 Rome LTH Partners, LP [Member] The Cirrus Group Affiliates [Member]	Jan. 12, 2010 Rome LTH Partners, LP [Member] The Cirrus Group's Fourth Affiliate [Member]	Apr. 30, 2012 Rome LTH Partners, LP [Member] Cornerstone Private Equity Fund Operating Partnership, L.P and Cirrus Group Affiliates [Member]
Business Combinations (Textual) [Abstract]
Purchase price of assisted-living property								$ 350,000	$ 10,800,000			$ 220,000	$ 9,000,000
Contribution by the Company to acquire limited partnership interest																2,700,000
Percentage of limited partnership interest acquired by the company	100.00%		100.00%		75.00%											75.00%	15.00%	9.50%	0.50%
Acquisition cost funded by related parties																	500,000	300,000
Revenues	11,453,000	10,810,000	22,557,000	21,261,000		1,000,000	1,800,000			600,000	600,000				600,000
Net loss	(393,000)	(1,618,000)	(640,000)	(3,471,000)		100,000	300,000			300,000	300,000				100,000
The aggregate acquisition cost														16,300,000						5,200,000
Business Combinations (Additional Textual) [Abstract]
Acquisition-related cost excluded from the pro forma net loss		$ 100,000		$ 300,000

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Concentration of Risks (Tables)

6 Months Ended

Jun. 30, 2012

Segment Reporting Information [Line Items]

Geographic risks by operating segment

The following table provides information about our geographic risks by operating segment for the three and six months ended June 30, 2012:

	Three Months Ended						Six Months Ended
State	Percentage of Segment Revenues			Percentage of Total Revenues			Percentage of Segment Revenues			Percentage of Total Revenues
Senior living operations
South Carolina		19.0	%		15.9	%		19.1	%		16.3	%
Texas		18.3	%		15.2	%		18.1	%		15.5	%
Ohio		13.2	%		11.0	%		13.1	%		11.2	%
Pennsylvania		17.4	%		14.4	%		17.5	%		15.0	%
New Hampshire		10.9	%		9.1	%		11.1	%		9.5	%
Tennessee		10.7	%		8.9	%		10.7	%		9.2	%
Indiana		5.5	%		4.6	%		5.5	%		4.7	%
Florida		5.0	%		4.1	%		4.9	%		4.2	%
Triple-net leased properties
Texas		61.9	%		8.7	%		76.5	%		8.9	%
Georgia		38.1	%		5.4	%		23.5	%		2.7	%
Medical office building
Texas		100.0	%		2.7	%		100.0	%		2.8	%

Senior living operations [Member]

Segment Reporting Information [Line Items]

Summary of segment concentration

The following table provides information about our senior living operation segment concentration for the three and six months ended June 30, 2012:

	Three Months Ended						Six Months Ended
Operators	Percentage of Segment  Revenues			Percentage of Total  Revenues			Percentage of Segment  Revenues			Percentage of Total  Revenues
Good Neighbor Care		31.9	%		26.6	%		31.9	%		27.3	%
Royal Senior Care		19.1	%		15.9	%		19.0	%		16.3	%
Woodbine Senior Living		20.2	%		16.8	%		20.6	%		17.6	%
12 Oaks Senior Living		18.3	%		15.2	%		18.1	%		15.5	%
Provision Living		5.5	%		4.6	%		5.4	%		4.7	%
Legend Senior Living		5.0	%		4.1	%		5.0	%		4.2	%
		100.0	%		83.2	%		100.0	%		85.6	%

Triple-net leased properties [Member]

Segment Reporting Information [Line Items]

Summary of segment concentration

The following table provides information about our triple-net leased segment for the three and six months ended June 30, 2012:

	Three Months Ended						Six Months Ended
Tenant	Percentage of Segment  Revenues			Percentage of Total  Revenues			Percentage of Segment  Revenues			Percentage of Total  Revenues
Babcock PM Management		32.2	%		4.5	%		39.8	%		4.7	%
Global Rehab Hospitals		29.7	%		4.2	%		36.6	%		4.3	%
The Specialty Hospital		30.5	%		4.3	%		18.8	%		2.2	%
Floyd Healthcare Management		7.6	%		1.1	%		4.81	%		0.5	%
		100.0	%		14.1	%		100.0	%		11.7	%

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Notes Payable (Details Textual) (USD $)	1 Months Ended			3 Months Ended		6 Months Ended
	Aug. 14, 2012	Jun. 30, 2012	Aug. 31, 2011	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011	Dec. 31, 2011
Notes Payable (Additional Textual) [Abstract]
Notes payable		$ 111,446,000		$ 111,446,000		$ 111,446,000		$ 85,978,000
Fixed and variable rate secured mortgage loans with average effective interest rate		5.52%		5.52%		5.52%		5.91%
Fixed rate debt		75,700,000		75,700,000		75,700,000		32,700,000
Fixed rate debt, notes payable		68.00%		68.00%		68.00%		38.00%
Fixed rate debt, weighted average interest rate		5.37%		5.37%		5.37%		6.01%
Variable rate debt		35,800,000		35,800,000		35,800,000		53,300,000
Variable rate debt, notes payable		32.00%		32.00%		32.00%		62.00%
Variable rate debt, weighted average interest rate		5.86%		5.86%		5.86%		5.85%
Aggregate loan amount		12,900,000		12,900,000		12,900,000
Additional loan amount		5,100,000		5,100,000		5,100,000
Interest on loan refinanced		4.45%
Terms on refinanced loan						7 years
Proceeds from the Loans						32,000,000
Debt repaid and loan fees and expenses						11,500,000
Fees and expenses for documentation and closing of the loan						791,000
Loss on debt extinguishment						148,000
Revolving credit facility amount		25,000,000		25,000,000		25,000,000
Credit facility term						24 months
Maturity date of revolving credit facility						Nov. 18, 2012
Amount outstanding under revolving credit facility		5,100,000		5,100,000		5,100,000		16,300,000
Revised maturity date			Jul. 31, 2012
Refinancing proceeds of keybank credit facility	5,600,000
Net deferred financing costs		1,508,000		1,508,000		1,508,000		824,000
Capitalized interest				1,600,000	1,400,000	290,000	120,000
Deferred financing costs				1,500,000	800,000	(974,000)	(150,000)
Interest expense				$ 1,597,000	$ 1,403,000	$ 3,024,000	$ 2,726,000
Maximum [Member]
Notes Payable (Textual) [Abstract]
Fixed and variable rate secured mortgage loans with effective interest rates		6.50%		6.50%		6.50%		6.50%
Minimum [Member]
Notes Payable (Textual) [Abstract]
Fixed and variable rate secured mortgage loans with effective interest rates		4.45%		4.45%		4.45%		3.45%

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Concentration of Risks (Details 2)	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011
Senior living operations [Member]
Geographic risks by operating segment
Percentage of Segment Revenues	100.00%		100.00%
Percentage of Total Revenues	83.20%	73.70%	85.60%	82.10%
Senior living operations [Member] | South Carolina [Member]
Geographic risks by operating segment
Percentage of Segment Revenues	19.00%		19.10%
Percentage of Total Revenues	15.90%		16.30%
Senior living operations [Member] | Texas [Member]
Geographic risks by operating segment
Percentage of Segment Revenues	18.30%		18.10%
Percentage of Total Revenues	15.20%		15.50%
Senior living operations [Member] | Ohio [Member]
Geographic risks by operating segment
Percentage of Segment Revenues	13.20%		13.10%
Percentage of Total Revenues	11.00%		11.20%
Senior living operations [Member] | Pennsylvania [Member]
Geographic risks by operating segment
Percentage of Segment Revenues	17.40%		17.50%
Percentage of Total Revenues	14.40%		15.00%
Senior living operations [Member] | New Hampshire [Member]
Geographic risks by operating segment
Percentage of Segment Revenues	10.90%		11.10%
Percentage of Total Revenues	9.10%		9.50%
Senior living operations [Member] | Tennessee [Member]
Geographic risks by operating segment
Percentage of Segment Revenues	10.70%		10.70%
Percentage of Total Revenues	8.90%		9.20%
Senior living operations [Member] | Indiana [Member]
Geographic risks by operating segment
Percentage of Segment Revenues	5.50%		5.50%
Percentage of Total Revenues	4.60%		4.70%
Senior living operations [Member] | Florida [Member]
Geographic risks by operating segment
Percentage of Segment Revenues	5.00%		4.90%
Percentage of Total Revenues	4.10%		4.20%
Triple-net leased properties [Member]
Geographic risks by operating segment
Percentage of Segment Revenues	100.00%		100.00%
Percentage of Total Revenues	14.10%	18.70%	11.70%	15.20%
Triple-net leased properties [Member] | Texas [Member]
Geographic risks by operating segment
Percentage of Segment Revenues	61.90%		76.50%
Percentage of Total Revenues	8.70%		8.90%
Triple-net leased properties [Member] | Georgia [Member]
Geographic risks by operating segment
Percentage of Segment Revenues	38.10%		23.50%
Percentage of Total Revenues	5.40%		2.70%
Medical office building [Member]
Geographic risks by operating segment
Percentage of Total Revenues	2.70%	2.40%	2.80%	2.70%
Medical office building [Member] | Texas [Member]
Geographic risks by operating segment
Percentage of Segment Revenues	100.00%		100.00%
Percentage of Total Revenues	2.70%		2.80%

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Investment in Real Estate and Unconsolidated Entites (Details Textual) (USD $)	3 Months Ended		6 Months Ended							1 Months Ended	3 Months Ended		6 Months Ended				3 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012 Maximum [Member]	Jun. 30, 2012 Minimum [Member]	Apr. 30, 2012 Rome LTACH Project [Member]	Jun. 30, 2012 Littleton Specialty Rehabilitation Facility [Member]	Apr. 02, 2012 Physicians Centre MOB [Member]	Jan. 31, 2012 Columbus, IN [Member] GreenTree at Westwood [Member]	Jun. 30, 2012 Columbus, IN [Member] GreenTree at Westwood [Member]	Jun. 30, 2011 Columbus, IN [Member] GreenTree at Westwood [Member]	Jun. 30, 2012 Columbus, IN [Member] GreenTree at Westwood [Member]	Jun. 30, 2011 Columbus, IN [Member] GreenTree at Westwood [Member]	Dec. 31, 2011 Columbus, IN [Member] GreenTree at Westwood [Member]	Jun. 30, 2012 Rome, GA [Member] Rome LTACH Project [Member]	Jun. 30, 2011 Chattanooga, TN [Member] Terrace at Mountain Creek [Member]	Jun. 30, 2012 Chattanooga, TN [Member] Terrace at Mountain Creek [Member]	Jun. 30, 2012 Littleton, CO [Member] Littleton Specialty Rehabilitation Facility [Member]
Investment in Real Estate (Textual) [Abstract]
Fair value of earn-out agreement							$ 18,900,000								$ 1,000,000			$ 1,000,000
Earn-out payment			380,000	1,000,000						1,000,000							1,000,000
Real estate acquisition costs and contingent consideration	190,000	514,000	206,000	1,431,000							0	200,000	0	500,000
Real estate assets costs of property							5,200,000	7,100,000	2,500,000		5,150,000		5,150,000			18,900,000		8,500,000	1,600,000
Useful lives of intangible assets					20 years	1 year
Pecentage of acquisition							100.00%
Investment in Real Estate (Additional Textual) [Abstract]
Depreciation expense associated with buildings and improvements, site improvements and furniture and fixtures	1,100,000	900,000	2,000,000	1,700,000
Amortization associated with the intangible assets	$ 400,000	$ 1,100,000	$ 1,000,000	$ 2,000,000
Weighted-average amortization period for intangible assets			13 years

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Stockholders' Equity (Details 1) (USD $)	1 Months Ended						3 Months Ended		6 Months Ended
	Jun. 30, 2012	May 31, 2012	Apr. 30, 2012	Mar. 31, 2012	Feb. 29, 2012	Jan. 31, 2012	Jun. 30, 2012	Mar. 31, 2012	Jun. 30, 2012
Summary of repurchased shares
Total Number of Shares Redeemed		17,582	9,203			33,008	26,785	33,008	59,793
Average Price Paid per Share		$ 9.00	$ 9.00			$ 9.98	$ 9.00	$ 9.98

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Immaterial Corrections to Prior Period Financial Statements (Details 2) (USD $)	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011	Dec. 31, 2011
Cash flows from operating activities:
Net income (loss)	$ 591,000	$ (1,714,000)	$ 419,000	$ (3,337,000)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Amortization of deferred financing costs	1,600,000	1,400,000	290,000	120,000
Depreciation and amortization	1,530,000	1,974,000	2,963,000	3,712,000
Straight-line rent amortization			(253,000)	(251,000)
Real estate earn out costs			110,000	511,000
Equity loss from unconsolidated entities	442,000	(99,000)	376,000	15,000
Bad debt expense			26,000	1,630,000
Change in operating assets and liabilities:
Tenant and other receivables			(573,000)	39,000
Prepaid expenses and other assets			163,000	(1,033,000)
Restricted cash			103,000	(154,000)
Prepaid rent and tenant security deposits			63,000	352,000
Payable to related parties				(38,000)
Receivable from related parties				(1,630,000)
Accounts payable and accrued liabilities			1,704,000	1,739,000
Net cash provided by operating activities			3,918,000	1,675,000
Cash flows from investing activities:
Real estate acquisitions			(5,672,000)	(19,741,000)
Additions to real estate			(361,000)	(371,000)
Payments for Construction in progress				(81,000)
Changes in restricted cash			279,000	(118,000)
Acquisition deposits			(392,000)	100,000
Net cash used in investing activities			(8,636,000)	(20,881,000)
Cash flows from financing activities:
Proceeds from issuance of common stock				14,160,000
Redeemed shares			(570,000)	(1,604,000)
Proceeds from issuance of notes payable			32,481,000	14,571,000
Repayments of notes payable			(19,936,000)	(399,000)
Payment of real estate earn out costs			(380,000)	(1,000,000)
Offering costs				(1,917,000)
Deferred financing costs	1,500,000	800,000	(974,000)	(150,000)
Purchase of noncontrolling interest
Distributions paid to stockholders			(1,615,000)	(3,149,000)
Distributions paid to noncontrolling interests			(302,000)
Net cash provided by financing activities			8,704,000	20,512,000
Net increase in cash and cash equivalents			3,986,000	1,306,000
Cash and cash equivalents - beginning of period			27,972,000	29,718,000
Cash and cash equivalents - end of period	31,958,000	31,024,000	31,958,000	31,024,000
Supplemental disclosure of cash flow information:
Cash paid for interest			3,170,000	2,364,000
Cash paid for income taxes			404,000	441,000
Supplemental disclosure of non-cash financing and investing activities:
Distributions declared not paid	799,000	801,000	799,000	801,000	814,000
Distribution reinvested				1,484,000
Retained Earnings (Accumulated Deficit)
Beginning of year			(17,054,000)
End of year	(16,762,000)		(16,762,000)
As Previously Reported [Member]
Cash flows from operating activities:
Net income (loss)				(3,340,000)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Amortization of deferred financing costs				283,000
Depreciation and amortization		2,129,000		3,990,000
Straight-line rent amortization				(452,000)
Real estate earn out costs				721,000
Bad debt expense				1,630,000
Change in operating assets and liabilities:
Tenant and other receivables				(299,000)
Prepaid expenses and other assets				1,027,000
Restricted cash				221,000
Prepaid rent and tenant security deposits				(498,000)
Payable to related parties				(38,000)
Receivable from related parties				1,630,000
Accounts payable and accrued liabilities				1,475,000
Net cash provided by operating activities				2,188,000
Cash flows from investing activities:
Real estate acquisitions				(19,751,000)
Additions to real estate				(371,000)
Changes in restricted cash				(118,000)
Development of real estate				(2,807,000)
Acquisition deposits				100,000
Net cash used in investing activities				(22,947,000)
Cash flows from financing activities:
Proceeds from issuance of common stock				14,160,000
Redeemed shares				(1,604,000)
Proceeds from issuance of notes payable				16,901,000
Repayments of notes payable				(395,000)
Payment of real estate earn out costs				(1,000,000)
Offering costs				(1,917,000)
Deferred financing costs				(302,000)
Distributions paid to stockholders				(3,149,000)
Distributions paid to noncontrolling interests				(71,000)
Net cash provided by financing activities				22,623,000
Net increase in cash and cash equivalents				1,864,000
Cash and cash equivalents - beginning of period				29,819,000	28,258,000
Cash and cash equivalents - end of period		31,683,000		31,683,000	28,258,000
Supplemental disclosure of cash flow information:
Cash paid for interest				2,718,000
Cash paid for income taxes				441,000
Supplemental disclosure of non-cash financing and investing activities:
Distributions declared not paid		801,000		801,000	814,000
Distribution reinvested				1,484,000
Accrued real estate development costs				279,000
Capitalized Interest				19,000
Accrued promote monetization liability				2,018,000
Deferred financing amortization capitalized to real estate				20,000
Retained Earnings (Accumulated Deficit)
Beginning of year					(17,054,000)
End of year	(15,013,000)		(15,013,000)		(17,054,000)
As Corrected [Member]
Cash flows from operating activities:
Net income (loss)				(3,337,000)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Amortization of deferred financing costs				120,000
Depreciation and amortization		1,974,000		3,712,000
Straight-line rent amortization				(251,000)
Real estate earn out costs				511,000
Equity loss from unconsolidated entities		(99,000)		15,000
Bad debt expense				1,630,000
Change in operating assets and liabilities:
Tenant and other receivables				(39,000)
Prepaid expenses and other assets				1,033,000
Restricted cash				154,000
Prepaid rent and tenant security deposits				(352,000)
Payable to related parties				(38,000)
Receivable from related parties				1,630,000
Accounts payable and accrued liabilities				1,739,000
Net cash provided by operating activities				1,675,000
Cash flows from investing activities:
Real estate acquisitions				(19,741,000)
Additions to real estate				(371,000)
Payments for Construction in progress				(81,000)
Purchase of an interest in an unconsolidated entity				(897,000)
Changes in restricted cash				(118,000)
Acquisition deposits				100,000
Net cash used in investing activities				(20,881,000)
Cash flows from financing activities:
Proceeds from issuance of common stock				14,160,000
Redeemed shares				(1,604,000)
Proceeds from issuance of notes payable				14,571,000
Repayments of notes payable				(399,000)
Payment of real estate earn out costs				(1,000,000)
Offering costs				(1,917,000)
Deferred financing costs				(150,000)
Distributions paid to stockholders				(3,149,000)
Net cash provided by financing activities				20,512,000
Net increase in cash and cash equivalents				1,306,000
Cash and cash equivalents - beginning of period				29,718,000	27,972,000
Cash and cash equivalents - end of period		31,024,000		31,024,000	27,972,000
Supplemental disclosure of cash flow information:
Cash paid for interest				2,364,000
Cash paid for income taxes				441,000
Supplemental disclosure of non-cash financing and investing activities:
Distributions declared not paid		801,000		801,000	814,000
Distribution reinvested				1,484,000
Retained Earnings (Accumulated Deficit)
Beginning of year					(17,054,000)
End of year	$ (15,013,000)		$ (15,013,000)		$ (17,054,000)

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Segment Reporting (Details Textual) (USD $)	Jun. 30, 2012	Dec. 31, 2011
Segment Reporting (Textual) [Abstract]
Goodwill	$ 6,510,000	$ 5,965,000
Senior living operations [Member]
Segment Reporting (Textual) [Abstract]
Goodwill	$ 6,500,000	$ 6,000,000

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Summary of Significant Accounting Policies

6 Months Ended

Jun. 30, 2012

Summary of Significant Accounting Policies [Abstract]

Summary of Significant Accounting Policies

3. Summary of Significant Accounting Policies

For more information regarding our significant accounting policies and estimates, please refer to “Summary of Significant Accounting Policies” contained in our Annual Report on Form 10-K for the year ended December 31, 2011.

Principles of Consolidation and Basis of Presentation

The accompanying consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. In accordance with the guidance for the consolidation of variable interest entities (“VIEs”), we analyze our variable interests, including investments in partnerships and joint ventures, to determine if the entity in which we have a variable interest is a variable interest entity. Our analysis includes both quantitative and qualitative reviews, based on our review of the design of the entity, its organizational structure including decision-making ability, risk and reward sharing experience and financial condition of other partner(s), voting rights, involvement in day-to-day capital and operating decisions and financial agreements. We also use quantitative and qualitative analyses to determine if we must consolidate a variable interest entity as the primary beneficiary.

Investments in Unconsolidated Entities

We account for our investments in an unconsolidated joint ventures under the equity method of accounting. We exercise significant influence, but do not control these entities or direct the activities that most significantly impact the venture’s performance. Investments in unconsolidated entities are recorded initially at cost and subsequently adjusted for cash contributions and distributions. We recognize our allocable share of the equity in earnings of our unconsolidated entities based on the respective venture’s structure and preferences.

Use of Estimates

The preparation of our financial statements requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses. We base these estimates on various assumptions that we believe to be reasonable under the circumstances, and these estimates form the basis for our judgments concerning the carrying values of assets and liabilities that are not readily apparent from other sources. We periodically evaluate these estimates and judgments based on available information and experience. Actual results could differ from our estimates under different assumptions and conditions. If actual results significantly differ from our estimates, our financial condition and results of operations could be materially impacted.

Comprehensive Income

In June 2011, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) 2011-05, Comprehensive Income: Presentation of Comprehensive Income, which eliminates the option to present components of other comprehensive income as part of the statement of shareholders’ equity and requires the presentation of components of net income and components of other comprehensive income either in a single continuous statement of comprehensive income or in two separate but consecutive statements. In December 2011, the FASB deferred the requirement to present reclassification adjustments for each component of accumulated other comprehensive income in both net income and other comprehensive income on the face of the financial statements.

As of June 30, 2012, the Company had no components of other comprehensive income. Accordingly, net income (loss) is equal to comprehensive income (loss) for all periods presented.

Interim Financial Information

The accompanying interim condensed consolidated financial statements have been prepared by our management in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and in conjunction with the rules and regulations of the SEC. Certain information and note disclosures required for annual financial statements have been condensed or excluded pursuant to SEC rules and regulations. Accordingly, the interim condensed consolidated financial statements do not include all of the information and notes required by GAAP for complete financial statements. The accompanying financial information reflects all adjustments which are, in the opinion of our management, of a normal recurring nature and necessary for a fair presentation of our financial position, results of operations and cash flows for the interim periods. Operating results for the three and six months ended June 30, 2012 are not necessarily indicative of the results that may be expected for the year ending December 31, 2012. Our accompanying interim condensed consolidated financial statements should be read in conjunction with our audited condensed consolidated financial statements and the notes thereto included on our 2011 Annual Report on Form 10-K, as filed with the SEC.

Fair Value of Financial Instruments and Fair Value Measurements

FASB Accounting Standards Codification (“ASC”) 825-10, “Financial Instruments”, requires the disclosure of fair value information about financial instruments, whether or not recognized on the face of the balance sheet, for which it is practical to estimate that value. In May 2011, the FASB issued ASU 2011-04, Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRS (“ASU 2011-04”). The amendments in this update result in additional fair value measurement and disclosure requirements within U.S. GAAP and International Financial Reporting Standards. Consequently, the amendments change the wording used to describe many of the requirements in U.S. GAAP for measuring fair value and for disclosing information about fair value measurements. The adoption of ASU 2011-04 on January 1, 2012 did not have a material impact on the Company’s consolidated financial position or results of operations. The impact on the Company’s disclosures was not material. Financial assets and liabilities recorded at fair value on the condensed consolidated balance sheets and disclosed in the financial statements are categorized based on the inputs to the valuation techniques as follows:

Level 1. Quoted prices in active markets for identical instruments.

Level 2. Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.

Level 3. Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.

Assets and liabilities measured at fair value are classified according to the lowest level input that is significant to their valuation. A financial instrument that has a significant unobservable input along with significant observable inputs may still be classified as a Level 3 instrument.

We generally determine or calculate the fair value of financial instruments using quoted market prices in active markets when such information is available or using appropriate present value or other valuation techniques, such as discounted cash flow analyses, incorporating available market discount rate information for similar types of instruments and our estimates for non-performance and liquidity risk. These techniques are significantly affected by the assumptions used, including the discount rate, credit spreads, and estimates of future cash flow.

Our balance sheets include the following financial instruments: cash and cash equivalents, tenant and other receivables, restricted cash, security deposits, accounts payable and accrued liabilities, distributions payable, and notes payable. With the exception of an equity method the Company obtained control of in April 2012 and notes payable discussed below, we consider the carrying values of our financial instruments to approximate fair value because they generally expose the Company to limited credit risk and because of the short period of time between origination of the financial assets and liabilities and their expected settlement.

Under the fair value hierarchy, cash and cash equivalents and restricted cash are classified as Level 1. Tenant and other receivables, security deposits and accounts payable and accrued liabilities (except for the accrued promote liabilities) are classified as Level 2.

The fair market value of notes payable is estimated using lending rates available to us for financial instruments with similar terms and maturities and are classified as Level 2. As of June 30, 2012 and December 31, 2011, the fair value of notes payable was $113.2 million and $87.0 million, compared to the carrying values of $111.4 million and $86.0 million, respectively. Upon acquiring control of a previously unconsolidated entity, the Company recorded their equity method investment at fair value of $6.0 million, and recorded a gain of approximately $1.3 million. The fair value of the equity method investment was estimated using appraisals on the respective investment.

There were no transfers between Levels 1 or 2 during the three months and six months ended June 30, 2012. The Company has no financial instruments classified using level 3 measurements as of June 30, 2012.

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Immaterial Corrections to Prior Period Financial Statements (Details Textual) (USD $)	Jun. 30, 2012	Dec. 31, 2011	Jun. 30, 2011	Dec. 31, 2010
New Accounting Pronouncements or Change in Accounting Principle (Textual) [Abstract]
Noncontrolling interests	$ 1,067,000	$ 1,242,000
Total equity	78,806,000	80,859,000	85,792,000	81,691,000
Previously Reported [Member]
New Accounting Pronouncements or Change in Accounting Principle (Textual) [Abstract]
Noncontrolling interests			2,700,000	2,800,000
Total equity			86,800,000	82,800,000
Restatement Adjustment [Member]
New Accounting Pronouncements or Change in Accounting Principle (Textual) [Abstract]
Noncontrolling interests			1,700,000	1,700,000
Total equity			$ 85,800,000	$ 81,700,000

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Concentration of Risks (Details Textual) (USD $)				3 Months Ended		6 Months Ended		3 Months Ended		6 Months Ended		3 Months Ended		6 Months Ended
	Jul. 21, 2010	Jul. 21, 2010 Minimum [Member]	Jul. 21, 2010 Maximum [Member]	Jun. 30, 2012 Senior living operations [Member]	Jun. 30, 2011 Senior living operations [Member]	Jun. 30, 2012 Senior living operations [Member]	Jun. 30, 2011 Senior living operations [Member]	Jun. 30, 2012 Triple-net leased properties [Member]	Jun. 30, 2011 Triple-net leased properties [Member]	Jun. 30, 2012 Triple-net leased properties [Member]	Jun. 30, 2011 Triple-net leased properties [Member]	Jun. 30, 2012 Medical office building [Member] Property	Jun. 30, 2011 Medical office building [Member]	Jun. 30, 2012 Medical office building [Member] Property	Jun. 30, 2011 Medical office building [Member]
Concentration of Risks (Textual) [Abstract]
Increase in cash limit of Securities Investor Protection Corporation		$ 100,000	$ 250,000
Percentage of total revenues				83.20%	73.70%	85.60%	82.10%	14.10%	18.70%	11.70%	15.20%	2.70%	2.40%	2.80%	2.70%
Number of properties owned												14		14
Number of states properties owned located												10		10
Concentration of Risks (Additional Textual) [Abstract]
Federal deposit insurance limit	$ 250,000

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Business Combinations (Tables)

6 Months Ended

Jun. 30, 2012

Business Combinations [Abstract]

Summary of purchase price of the acquired property

The detail of the purchase price of the acquired property is set forth below:

	Forestview Manor		Sunrise of Allentown		Rome LTACH Project
Land	$	1,320,000	$	1,000,000	$	—
Buildings & improvements		6,803,000		6,395,000		16,300,000
Site improvements		1,040,000		350,000		—
Furniture & fixtures		350,000		220,000		—
Intangible assets		960,000		590,000		2,018,000
Goodwill		277,000		445,000		545,000
Real estate acquisition	$	10,750,000		9,000,000		18,863,000
Acquisition expenses	$	160,000	$	142,000	$	182,000

Pro forma incremental effect information as part of acquisitions

For the three and six months ended June 30, 2011, acquisition-related costs of $0.1 million and $0.3 million, respectively, were excluded from the pro forma net loss.

	Three Months Ended June 30, 2012			Three Months Ended June 30, 2011
Revenues	$	11,453,000		$	10,810,000
Net loss	$	(393,000	)	$	(1,618,000	)
Basic and diluted net loss per common share attributable to common stockholders	$	(0.03	)	$	(0.12	)

	Six Months Ended June 30, 2012			Six Months Ended June 30, 2011
Revenues	$	22,557,000		$	21,261,000
Net loss	$	(640,000	)	$	(3,471,000	)
Basic and diluted net loss per common share attributable to common stockholders	$	(0.05	)	$	(0.28	)

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Stockholders' Equity (Tables)

6 Months Ended

Jun. 30, 2012

Stockholders' Equity [Abstract]

Summary of distributions declared

The following are the distributions declared during the six months ended June 30, 2012 and 2011:

	Distribution Declared (1)
Period	Cash		Reinvested		Total
First quarter 2011	$	1,152,000	$	1,124,000	$	2,276,000
Second quarter 2011	$	2,436,000	$	—	$	2,436,000
First quarter 2012	$	801,000	$	—	$	801,000
Second quarter 2012	$	799,000	$	—	$	799,000

(1) Distributions declared represented a return of capital and taxable ordinary income for tax purposes. In order to meet the requirements for being treated as a REIT under the Internal Revenue Code, we must pay distributions to our stockholders each taxable year equal to at least 90% of our net ordinary taxable income. Some of our distributions have been paid from sources other than operating cash flow, such as offering proceeds. Until proceeds from our offering are fully invested and generating operating cash flow sufficient to fully cover distributions to stockholders, we intend to pay all or a portion of our distributions from the proceeds of our offerings or from borrowings in anticipation of future cash flow.

Summary of repurchased shares

During the three and six months ended June 30, 2012, we repurchased shares pursuant to our stock repurchase program as follows:

Period	Total Number of Shares Redeemed		Average Price Paid per Share
January		33,008	$	9.98
February		—	$	—
March		—	$	—
First quarter 2012		33,008	$	9.98
April		9,203	$	9.00
May		17,582	$	9.00
June		—	$	—
Second quarter 2012		26,785	$	9.00
		59,793

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Business Combinations (Details 1) (USD $)	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011
Pro forma incremental effect information as part of acquisition
Revenues	$ 11,453,000	$ 10,810,000	$ 22,557,000	$ 21,261,000
Net loss	$ (393,000)	$ (1,618,000)	$ (640,000)	$ (3,471,000)
Basic and diluted net loss per common share attributable to common stockholders	$ (0.03)	$ (0.12)	$ (0.05)	$ (0.28)

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Income Taxes (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2012 Subsidiary Facility	Jun. 30, 2011	Jun. 30, 2012 Subsidiary Facility	Jun. 30, 2011	Dec. 31, 2011
Income Taxes (Textual) [Abstract]
Number of assisted-living facilities acquired	10		10
Number of wholly owned taxable REIT subsidiaries formed	10		10
TRS recognized for Federal and State income taxes	$ 0.1	$ 0.2	$ 0.1	$ 0.2
Net deferred tax assets related to the TRS entities	$ 1.3		$ 1.3		$ 1.1

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Immaterial Corrections to Prior Period Financial Statements (Tables)

6 Months Ended

Jun. 30, 2012

Immaterial Corrections to Prior Period Financial Statements [Abstract]

Summary of the effects of the correction of immaterial errors on consolidated financial statements

A summary of the effects of the correction of these immaterial errors on our consolidated financial statements for the three and six month periods ended June 30, 2011 and as of December 31, 2011 are presented in the tables below:

	December 31, 2011
	As Previously Reported			As Corrected
ASSETS
Cash and cash equivalents	$	28,258,000		$	27,972,000
Investments in real estate
Land		21,270,000			20,713,000
Buildings and improvements, net		114,584,000			100,687,000
Furniture, fixtures and equipment, net		2,562,000			2,562,000
Construction in progress		5,218,000			—
Intangible lease assets, net		5,581,000			3,865,000
Total		149,215,000			127,827,000
Deferred financing costs, net		1,121,000			824,000
Investments in unconsolidated entities		—			3,387,000
Tenant and other receivables		1,808,000			1,366,000
Deferred costs and other assets		1,948,000			1,938,000
Restricted cash		3,873,000			3,806,000
Goodwill		5,965,000			5,965,000
Total assets	$	192,188,000		$	173,085,000
LIABILITIES AND EQUITY
Liabilities:
Notes payable	$	100,059,000		$	85,978,000
Accounts payable and accrued liabilities		7,683,000			3,899,000
Prepaid rent and security deposits		1,740,000			1,535,000
Dividends payable		814,000			814,000
Total liabilities		110,296,000			92,226,000
Stockholders’ equity (deficit):
Common stock		129,000			129,000
Additional paid-in capital		96,542,000			96,542,000
Accumulated deficit		(17,054,000	)		(17,054,000	)
Total controlling stockholders’ equity (deficit)		79,617,000			79,617,000
Noncontrolling interest		2,275,000			1,242,000
Total equity (deficit)		81,892,000			80,859,000
Total liabilities and equity	$	192,188,000		$	173,085,000

	2011 Three months ended June 30						2011 Six months ended June 30
	As Previously Reported			As Corrected			As Previously Reported			As Corrected
Revenues:
Rental revenues	$	8,371,000		$	7,861,000		$	15,931,000		$	15,071,000
Resident fees and services		2,020,000			2,020,000			3,722,000			3,722,000
Tenant reimbursements and other income		308,000			234,000			631,000			513,000
		10,699,000			10,115,000			20,284,000			19,306,000
Expenses:
Property operating and maintenance expenses		6,464,000			6,372,000			12,152,000			12,001,000
General and administrative expenses		1,297,000			1,292,000			1,961,000			1,958,000
Asset management fees and expenses		376,000			376,000			807,000			807,000
Real estate acquisition costs and contingent consideration		514,000			514,000			1,641,000			1,431,000
Depreciation and amortization		2,129,000			1,974,000			3,990,000			3,712,000
		10,780,000			10,528,000			20,551,000			19,909,000
Loss from operations		(81,000	)		(413,000	)		(267,000	)		(603,000	)
Other income (expense):
Interest income		3,000			3,000			7,000			7,000
Interest expense		(1,604,000	)		(1,403,000	)		(3,080,000	)		(2,726,000	)
Net income (loss) from unconsolidated entities		—			99,000			—			(15,000	)
Net loss		(1,682,000	)		(1,714,000	)		(3,340,000	)		(3,337,000	)
Less: Net income (loss) attributable to the noncontrolling interests		16,000			(16,000	)		(49,000	)		(46,000	)
Net loss attributable to common stockholders	$	(1,698,000	)	$	(1,698,000	)	$	(3,291,000	)	$	(3,291,000	)
Basic and diluted net loss per common share attributable to common stockholders	$	(0.13	)	$	(0.13	)	$	(0.26	)	$	(0.26	)

	2011 6 months ended 6/30
	As Previously Reported			As Corrected
Cash flows from operating activities:
Net loss	$	(3,340,000	)	$	(3,337,000	)
Adjustments to reconcile net loss to net cash used in operating activities:
Amortization of deferred financing costs		283,000			120,000
Depreciation and amortization		3,990,000			3,712,000
Straight-line rent amortization		(452,000	)		(251,000	)
Real estate earn out costs		721,000			511,000
Equity loss from an unconsolidated entity					15,000
Bad debt expense		1,630,000			1,630,000
Change in operating assets/liabilities:
Tenant and other receivables		299,000			39,000
Prepaid expenses and other assets		(1,027,000	)		(1,033,000	)
Restricted cash		(221,000	)		(154,000	)
Prepaid rent and security deposits		498,000			352,000
Payable to related parties		(38,000	)		(38,000	)
Accounts payable and accrued liabilities		1,475,000			1,739,000
Receivable from related parties		(1,630,000	)		(1,630,000	)
Net cash provided by operating activities		2,188,000			1,675,000
Cash flows from investing activities:
Real estate acquisitions		(19,751,000	)		(19,741,000	)
Additions to real estate		(371,000	)		(371,000	)
Payments for construction in progress		—			(81,000	)
Purchase of an interest in an unconsolidated entity		—			(897,000	)
Changes in Restricted cash		(118,000	)		(118,000	)
Development of real estate		(2,807,000	)
Acquisition deposits		100,000			100,000
Distributions from unconsolidated joint ventures		—			227,000
Net cash used in investing activities		(22,947,000	)		(20,881,000	)
Cash flows from financing activities:
Proceeds from issuance of common stock		14,160,000			14,160,000
Redeemed shares		(1,604,000	)		(1,604,000	)
Proceeds from issuance of notes payable		16,901,000			14,571,000
Repayment of notes payable		(395,000	)		(399,000	)
Payment of real estate earn out costs		(1,000,000	)		(1,000,000	)
Offering costs		(1,917,000	)		(1,917,000	)
Deferred financing costs		(302,000	)		(150,000	)
Distributions paid to stockholders		(3,149,000	)		(3,149,000	)
Distributions paid to noncontrolling interest		(71,000	)		—
Net cash provided by financing activities		22,623,000			20,512,000
Net increase in cash and cash equivalents		1,864,000			1,306,000
Cash and cash equivalents - beginning of period		29,819,000			29,718,000
Cash and cash equivalents - end of period		31,683,000			31,024,000
Supplemental disclosure of cash flow information:
Cash paid for interest	$	2,718,000		$	2,364,000
Cash paid for income taxes		441,000			441,000
Supplemental disclosure of non-cash financing and investing activities:
Distribution declared not paid		801,000			801,000
Distribution reinvested		1,484,000			1,484,000
Accrued real estate development costs		279,000			—
Accrued promote monetization liability		2,018,000			—
Deferred financing amortization capitalized to real estate development		20,000			—

	2011
	As Previously Reported			As Corrected
Retained Earnings (Accumulated Deficit)
Beginning of period – December 31, 2010		(11,722,000	)		(11,722,000	)
End of period – June 30, 2011		(15,013,000	)		(15,013,000	)

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Organization (Details)	6 Months Ended
	Jun. 30, 2012
Sentio Investments, LLC [Member]
Organization (Textual) [Abstract]
Formation date	December 20, 2011
Cornerstone Leveraged Realty Advisors, LLC [Member]
Organization (Textual) [Abstract]
Formation date	October 16, 2006
Sentio Healthcare Properties OP, LP [Member]
Organization (Textual) [Abstract]
Formation date	October 17, 2006
Operating Partnership and the HC Operating Partnership, LP [Member]
Organization (Textual) [Abstract]
Percentage of interest owned	100.00%

XML

Public Offering

6 Months Ended

Jun. 30, 2012

Public Offering [Abstract]

Public Offering

2. Public Offering

Our charter authorizes the issuance of up to 580,000,000 shares of common stock with a par value of $0.01 per share and 20,000,000 shares of preferred stock with a par value of $0.01 per share.

On June 20, 2008, we commenced an initial public offering of up to 50,000,000 shares of our common stock, consisting of 40,000,000 shares for sale pursuant to a primary offering and 10,000,000 shares for sale pursuant to our distribution reinvestment plan. We stopped making offers under our initial public offering on February 3, 2011 after raising gross offering proceeds of $123.9 million from the sale of 12.4 million shares, including shares sold under the distribution reinvestment plan.

On February 4, 2011, the U.S. Securities and Exchange Commission (“SEC”) declared the registration statement for our follow-on offering effective and we commenced a follow-on offering of up to 55,000,000 shares of our common stock, consisting of 44,000,000 shares for sale pursuant to a primary offering and 11,000,000 shares for sale pursuant to our dividend reinvestment plan. As of June 30, 2012, we had sold a total of 12.7 million shares of our common stock pursuant to our initial and follow-on public offerings for aggregate gross proceeds of $127.0 million.

On April 29, 2011 we informed our stockholders that the Independent Directors Committee of our board of directors had directed us to suspend our follow-on offering, our dividend reinvestment program and our stock repurchase program (except repurchases due to death) because of the uncertainty associated with our Independent Directors Committee consideration of various strategic alternatives to enhance our stockholders’ value. On October 18, 2011, we announced that the Independent Directors Committee had suspended its analysis of strategic alternatives for the Company and concluded that the Company was well positioned as an investment program with a continued focus on healthcare real estate. The Independent Directors

Committee identified strategies in its evaluation process that it believes will enhance this position and is implementing operating changes designed to increase portfolio cash flow and increase shareholder value. In particular, the Company is focused on enhancing portfolio performance by identifying investment and financing opportunities, implementing operational efficiencies and evaluating the potential for growth in the future. As of June 30, 2012, sales pursuant to our follow-on offering remained suspended.

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Public Offering (Details) (USD $) In Millions, except Share data, unless otherwise specified	Jun. 30, 2012	Dec. 31, 2011	Feb. 03, 2011 Initial public offering [Member]	Jun. 20, 2008 Initial public offering [Member]	Feb. 04, 2011 Follow-on offering [Member]	Feb. 04, 2011 Primary offering [Member]	Jun. 20, 2008 Primary offering [Member]	Jun. 20, 2008 Distribution reinvestment plan [Member]	Feb. 04, 2011 Dividend reinvestment plan [Member]
Public Offering (Textual) [Abstract]
Common stock, shares authorized	580,000,000	580,000,000		50,000,000	55,000,000	44,000,000	40,000,000	10,000,000	11,000,000
Sale of common stock	12,700,000		12,400,000
Proceeds from sale of shares	$ 127.0		$ 123.9
Public Offering (Additional Textual) [Abstract]
Common stock, par value	$ 0.01	$ 0.01
Preferred stock, shares authorized	20,000,000	20,000,000
Preferred stock, par value	$ 0.01	$ 0.01

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Concentration of Risks (Details) (Senior living operations [Member])	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011
Summary of segment concentration
Percentage of Segment Revenues	100.00%		100.00%
Percentage of Total Revenues	83.20%	73.70%	85.60%	82.10%
Good Neighbor Care [Member]
Summary of segment concentration
Percentage of Segment Revenues	31.90%		31.90%
Percentage of Total Revenues	26.60%		27.30%
Royal Senior Care [Member]
Summary of segment concentration
Percentage of Segment Revenues	19.10%		19.00%
Percentage of Total Revenues	15.90%		16.30%
Woodbine Senior Living [Member]
Summary of segment concentration
Percentage of Segment Revenues	20.20%		20.60%
Percentage of Total Revenues	16.80%		17.60%
12 Oaks Senior Living [Member]
Summary of segment concentration
Percentage of Segment Revenues	18.30%		18.10%
Percentage of Total Revenues	15.20%		15.50%
Provision Living [Member]
Summary of segment concentration
Percentage of Segment Revenues	5.50%		5.40%
Percentage of Total Revenues	4.60%		4.70%
Legend Senior Living [Member]
Summary of segment concentration
Percentage of Segment Revenues	5.00%		5.00%
Percentage of Total Revenues	4.10%		4.20%

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Stockholders' Equity (Details Textual) (USD $)	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011	Dec. 31, 2011	Dec. 22, 2011
Stockholders' Equity (Textual) [Abstract]
Common stock, shares authorized	580,000,000		580,000,000		580,000,000
Number of shares sold	12,856,819		12,856,819		12,916,612
Net income (loss)	$ 591,000	$ (1,714,000)	$ 419,000	$ (3,337,000)
Stockholder's Equity (Additional Textual) [Abstract]
Common stock, par value	$ 0.01		$ 0.01		$ 0.01
Preferred stock, shares authorized	20,000,000		20,000,000		20,000,000
Preferred stock, par value	$ 0.01		$ 0.01		$ 0.01
Common stock reinvested	13,300,000	13,300,000	13,300,000	13,300,000
Gross proceeds of common stock	132,300,000	132,300,000	132,300,000	132,300,000
Net asset						$ 9.02
Net ordinary taxable income			90.00%
Annualized rate	$ 0.75	$ 0.25	$ 0.75	$ 0.25
Percentage of annualized rate	7.50%	2.50%	7.50%	2.50%
Annualized rate per share	$ 10.00	$ 10.00	$ 10.00	$ 10.00
Aggregate distributions			16,200,000
Repurchase cannot be exercised due to limitations			2,500
Number of days prior notice to stockholders regarding changes in program			30 days
Repurchase price of stockholders purchase price			100.00%
Repurchase of stock towards stock repurchase program		123,478		167,308
Distribution reinvestment plan [Member]
Stockholders' Equity (Textual) [Abstract]
Common stock, shares authorized	10,000,000		10,000,000
Price paid by the purchaser for common stock	95.00%		95.00%
Number of shares sold	551,000		551,000		551,000
Repurchased stock			62,293
Net income (loss)			$ 16,800,000
Distribution reinvestment plan [Member] | Minimum [Member]
Stockholders' Equity (Textual) [Abstract]
Sale of stock, price per share	$ 9.50		$ 9.50

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Condensed Consolidated Balance Sheets (Unaudited) (USD $)	Jun. 30, 2012	Dec. 31, 2011
ASSETS
Cash and cash equivalents	$ 31,958,000	$ 27,972,000
Investments in real estate:
Land	20,713,000	20,713,000
Buildings and improvements, net	115,649,000	100,687,000
Furniture, fixtures and equipment, net	2,352,000	2,562,000
Intangible lease assets, net	4,696,000	3,865,000
Total investments in real estate	143,410,000	127,827,000
Deferred financing costs, net	1,508,000	824,000
Investment in an unconsolidated entities	3,629,000	3,387,000
Tenant and other receivables, net	2,159,000	1,366,000
Restricted cash	3,424,000	3,806,000
Deferred costs and other assets	2,357,000	1,938,000
Goodwill	6,510,000	5,965,000
Total assets	194,955,000	173,085,000
Liabilities:
Notes payable	111,446,000	85,978,000
Accounts payable and accrued liabilities	2,306,000	3,899,000
Prepaid rent and security deposits	1,598,000	1,535,000
Distributions payable	799,000	814,000
Total liabilities	116,149,000	92,226,000
Commitments and contingencies (Note 13)
STOCKHOLDERS' EQUITY
Preferred stock, $0.01 par value per share; 20,000,000 shares authorized; no shares were issued or outstanding at June 30, 2012 and December 31, 2011
Common stock, $0.01 par value per share; 580,000,000 shares authorized; 12,856,819 and 12,916,612 shares issued and outstanding at June 30, 2012 and December 31, 2011, respectively	129,000	129,000
Additional paid-in capital	94,372,000	96,542,000
Accumulated deficit	(16,762,000)	(17,054,000)
Total stockholders' equity	77,739,000	79,617,000
Noncontrolling interests	1,067,000	1,242,000
Total equity	78,806,000	80,859,000
Total liabilities and equity	$ 194,955,000	$ 173,085,000

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Segment Reporting (Details) (USD $)	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011
Reconciliation of segment activity to consolidated net income
Rental revenues	$ 8,249,000	$ 7,861,000	$ 16,094,000	$ 15,071,000
Resident services and fee income	2,311,000	2,020,000	4,589,000	3,722,000
Tenant reimbursements and other income	447,000	234,000	809,000	513,000
Total revenues	11,007,000	10,115,000	21,492,000	19,306,000
Property operating and maintenance expenses	6,921,000	6,372,000	13,447,000	12,001,000
Net operating income	1,493,000	(413,000)	2,688,000	(603,000)
General and administrative expenses	370,000	1,292,000	1,204,000	1,958,000
Asset management fees and expenses	503,000	376,000	984,000	807,000
Real estate acquisition costs and contingent consideration	190,000	514,000	206,000	1,431,000
Depreciation and amortization	1,530,000	1,974,000	2,963,000	3,712,000
Interest income	(1,000)	(3,000)	(1,000)	(7,000)
Interest expense	1,597,000	1,403,000	3,024,000	2,726,000
Other expenses	146,000		152,000
Net (loss) income from unconsolidated entities	(442,000)	99,000	(376,000)	(15,000)
Fair value adjustment for equity method investment	1,282,000		1,282,000
Net income (loss)	591,000	(1,714,000)	419,000	(3,337,000)
Net (loss) income attributable to the noncontrolling interests	50,000	(16,000)	127,000	(46,000)
Net income (loss) attributable to common stockholders	541,000	(1,698,000)	292,000	(3,291,000)
Senior living operations [Member]
Reconciliation of segment activity to consolidated net income
Rental revenues	6,715,000	5,774,000	13,540,000	11,974,000
Resident services and fee income	2,311,000	2,020,000	4,589,000	3,722,000
Tenant reimbursements and other income	137,000	65,000	279,000	175,000
Total revenues	9,163,000	7,859,000	18,408,000	15,871,000
Property operating and maintenance expenses	6,614,000	5,119,000	12,918,000	10,564,000
Net operating income	2,549,000	2,740,000	5,490,000	5,307,000
Triple-net leased properties [Member]
Reconciliation of segment activity to consolidated net income
Rental revenues	1,325,000	1,886,000	2,134,000	2,695,000
Resident services and fee income	0	0	0	0
Tenant reimbursements and other income	222,000	113,000	371,000	227,000
Total revenues	1,547,000	1,999,000	2,505,000	2,922,000
Property operating and maintenance expenses	228,000	1,190,000	377,000	1,304,000
Net operating income	1,319,000	809,000	2,128,000	1,618,000
Medical office building [Member]
Reconciliation of segment activity to consolidated net income
Rental revenues	209,000	201,000	420,000	402,000
Resident services and fee income	0	0	0	0
Tenant reimbursements and other income	88,000	56,000	159,000	111,000
Total revenues	297,000	257,000	579,000	513,000
Property operating and maintenance expenses	79,000	63,000	152,000	133,000
Net operating income	$ 218,000	$ 194,000	$ 427,000	$ 380,000

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Condensed Consolidated Statements of Cash Flows (Unaudited) (USD $)	6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011
Cash flows from operating activities:
Net income (loss)	$ 419,000	$ (3,337,000)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Amortization of deferred financing costs	290,000	120,000
Depreciation and amortization	2,963,000	3,712,000
Straight-line rent amortization	(253,000)	(251,000)
Real estate earn out costs	110,000	511,000
Fair value adjustment for equity method investment	(1,282,000)
Equity loss from unconsolidated entities	376,000	15,000
Bad debt expense	26,000	1,630,000
Change in operating assets and liabilities:
Change in deferred taxes	(191,000)
Tenant and other receivables	(573,000)	39,000
Prepaid expenses and other assets	163,000	(1,033,000)
Restricted cash	103,000	(154,000)
Prepaid rent and tenant security deposits	63,000	352,000
Payable to related parties		(38,000)
Receivable from related parties		(1,630,000)
Accounts payable and accrued liabilities	1,704,000	1,739,000
Net cash provided by operating activities	3,918,000	1,675,000
Cash flows from investing activities:
Real estate acquisitions	(5,672,000)	(19,741,000)
Additions to real estate	(361,000)	(371,000)
Payments for Construction in progress		(81,000)
Purchase of an interest in an unconsolidated entity	(2,490,000)	(897,000)
Changes in restricted cash	279,000	(118,000)
Acquisition deposits	(392,000)	100,000
Distributions from unconsolidated joint ventures		227,000
Net cash used in investing activities	(8,636,000)	(20,881,000)
Cash flows from financing activities:
Proceeds from issuance of common stock		14,160,000
Redeemed shares	(570,000)	(1,604,000)
Proceeds from notes payable	32,481,000	14,571,000
Repayments of notes payable	(19,936,000)	(399,000)
Offering costs		(1,917,000)
Deferred financing costs	(974,000)	(150,000)
Payment of real estate earn out costs	(380,000)	(1,000,000)
Distributions paid to stockholders	(1,615,000)	(3,149,000)
Distributions paid to noncontrolling interests	(302,000)
Net cash provided by financing activities	8,704,000	20,512,000
Net increase in cash and cash equivalents	3,986,000	1,306,000
Cash and cash equivalents - beginning of period	27,972,000	29,718,000
Cash and cash equivalents - end of period	31,958,000	31,024,000
Supplemental disclosure of cash flow information:
Cash paid for interest	3,170,000	2,364,000
Cash paid for income taxes	404,000	441,000
Supplemental disclosure of non-cash financing and investing activities:
Distributions declared not paid	799,000	801,000
Distribution reinvested		$ 1,484,000

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Immaterial Corrections to Prior Period Financial Statements (Details) (USD $)	Jun. 30, 2012	Dec. 31, 2011	Jun. 30, 2011	Dec. 31, 2010
ASSETS
Cash and cash equivalents	$ 31,958,000	$ 27,972,000	$ 31,024,000	$ 29,718,000
Investments in real estate:
Land	20,713,000	20,713,000
Buildings and improvements, net	115,649,000	100,687,000
Furniture, fixtures and equipment, net	2,352,000	2,562,000
Intangible lease assets, net	4,696,000	3,865,000
Total investments in real estate	143,410,000	127,827,000
Deferred financing costs, net	1,508,000	824,000
Investments in unconsolidated entities	3,629,000	3,387,000
Tenant and other receivables, net	2,159,000	1,366,000
Deferred costs and other assets	2,357,000	1,938,000
Restricted cash	3,424,000	3,806,000
Goodwill	6,510,000	5,965,000
Total assets	194,955,000	173,085,000
Liabilities:
Notes payable	111,446,000	85,978,000
Accounts payable and accrued liabilities	2,306,000	3,899,000
Prepaid rent and security deposits	1,598,000	1,535,000
Distributions payable	799,000	814,000	801,000
Total liabilities	116,149,000	92,226,000
Commitments and contingencies (Note 13)
Stockholders' equity (deficit):
Common stock	129,000	129,000
Additional paid-in capital	94,372,000	96,542,000
Accumulated deficit	(16,762,000)	(17,054,000)
Total stockholders' equity	77,739,000	79,617,000
Noncontrolling interests	1,067,000	1,242,000
Total equity	78,806,000	80,859,000	85,792,000	81,691,000
Total liabilities and equity	194,955,000	173,085,000
As Previously Reported [Member]
ASSETS
Cash and cash equivalents		28,258,000	31,683,000	29,819,000
Investments in real estate:
Land		21,270,000
Buildings and improvements, net		114,584,000
Furniture, fixtures and equipment, net		2,562,000
Construction in progress		5,218,000
Intangible lease assets, net		5,581,000
Total investments in real estate		149,215,000
Deferred financing costs, net		1,121,000
Tenant and other receivables, net		1,808,000
Deferred costs and other assets		1,948,000
Restricted cash		3,873,000
Goodwill		5,965,000
Total assets		192,188,000
Liabilities:
Notes payable		100,059,000
Accounts payable and accrued liabilities		7,683,000
Prepaid rent and security deposits		1,740,000
Distributions payable		814,000	801,000
Total liabilities		110,296,000
Stockholders' equity (deficit):
Common stock		129,000
Additional paid-in capital		96,542,000
Accumulated deficit	(15,013,000)	(17,054,000)
Total stockholders' equity		79,617,000
Noncontrolling interests		2,275,000
Total equity		81,892,000
Total liabilities and equity		192,188,000
As Corrected [Member]
ASSETS
Cash and cash equivalents		27,972,000	31,024,000	29,718,000
Investments in real estate:
Land		20,713,000
Buildings and improvements, net		100,687,000
Furniture, fixtures and equipment, net		2,562,000
Intangible lease assets, net		3,865,000
Total investments in real estate		127,827,000
Deferred financing costs, net		824,000
Investments in unconsolidated entities		3,387,000
Tenant and other receivables, net		1,366,000
Deferred costs and other assets		1,938,000
Restricted cash		3,806,000
Goodwill		5,965,000
Total assets		173,085,000
Liabilities:
Notes payable		85,978,000
Accounts payable and accrued liabilities		3,899,000
Prepaid rent and security deposits		1,535,000
Distributions payable		814,000	801,000
Total liabilities		92,226,000
Stockholders' equity (deficit):
Common stock		129,000
Additional paid-in capital		96,542,000
Accumulated deficit	(15,013,000)	(17,054,000)
Total stockholders' equity		79,617,000
Noncontrolling interests		1,242,000
Total equity		80,859,000
Total liabilities and equity		$ 173,085,000

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Investment in Real Estate and Unconsolidated Entites (Details 1) (USD $)	Jun. 30, 2012	Dec. 31, 2011
Cost and accumulated depreciation and amortization related to real estate assets and related lease intangibles
Total investments in real estate	$ 143,410,000	$ 127,827,000
Land [Member]
Cost and accumulated depreciation and amortization related to real estate assets and related lease intangibles
Real estate assets costs of property	20,713,000	20,713,000
Accumulated depreciation and amortization
Total investments in real estate	20,713,000	20,713,000
Buildings and improvements [Member]
Cost and accumulated depreciation and amortization related to real estate assets and related lease intangibles
Real estate assets costs of property	122,564,000	105,340,000
Accumulated depreciation and amortization	(6,915,000)	(4,653,000)
Total investments in real estate	115,649,000	100,687,000
Furniture, fixtures and equipment [Member]
Cost and accumulated depreciation and amortization related to real estate assets and related lease intangibles
Real estate assets costs of property	3,733,000	3,578,000
Accumulated depreciation and amortization	(1,381,000)	(1,016,000)
Total investments in real estate	2,352,000	2,562,000
Intangible lease assets [Member]
Cost and accumulated depreciation and amortization related to real estate assets and related lease intangibles
Real estate assets costs of property	12,552,000	10,649,000
Accumulated depreciation and amortization	(7,856,000)	(6,784,000)
Total investments in real estate	$ 4,696,000	$ 3,865,000

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Immaterial Corrections to Prior Period Financial Statements

6 Months Ended

Jun. 30, 2012

Immaterial Corrections to Prior Period Financial Statements [Abstract]

Immaterial Corrections to Prior Period Financial Statements

16. Immaterial Corrections to Prior Period Financial Statements

Subsequent to the issuance of our consolidated financial statements for the year ended December 31, 2011, the Company determined that it should have been accounting for certain investments in joint ventures on the equity method rather than by consolidating these investments. The Company reviewed the impact of these errors on the prior period financial statements and determined that the errors were not material to the financial statements. However, the Company has corrected the accompanying condensed consolidated financial statements and related footnotes to reflect these joint venture investments on the equity method of accounting.

A summary of the effects of the correction of these immaterial errors on our consolidated financial statements for the three and six month periods ended June 30, 2011 and as of December 31, 2011 are presented in the tables below:

	December 31, 2011
	As Previously Reported			As Corrected
ASSETS
Cash and cash equivalents	$	28,258,000		$	27,972,000
Investments in real estate
Land		21,270,000			20,713,000
Buildings and improvements, net		114,584,000			100,687,000
Furniture, fixtures and equipment, net		2,562,000			2,562,000
Construction in progress		5,218,000			—
Intangible lease assets, net		5,581,000			3,865,000
Total		149,215,000			127,827,000
Deferred financing costs, net		1,121,000			824,000
Investments in unconsolidated entities		—			3,387,000
Tenant and other receivables		1,808,000			1,366,000
Deferred costs and other assets		1,948,000			1,938,000
Restricted cash		3,873,000			3,806,000
Goodwill		5,965,000			5,965,000
Total assets	$	192,188,000		$	173,085,000
LIABILITIES AND EQUITY
Liabilities:
Notes payable	$	100,059,000		$	85,978,000
Accounts payable and accrued liabilities		7,683,000			3,899,000
Prepaid rent and security deposits		1,740,000			1,535,000
Dividends payable		814,000			814,000
Total liabilities		110,296,000			92,226,000
Stockholders’ equity (deficit):
Common stock		129,000			129,000
Additional paid-in capital		96,542,000			96,542,000
Accumulated deficit		(17,054,000	)		(17,054,000	)
Total controlling stockholders’ equity (deficit)		79,617,000			79,617,000
Noncontrolling interest		2,275,000			1,242,000
Total equity (deficit)		81,892,000			80,859,000
Total liabilities and equity	$	192,188,000		$	173,085,000

	2011 Three months ended June 30						2011 Six months ended June 30
	As Previously Reported			As Corrected			As Previously Reported			As Corrected
Revenues:
Rental revenues	$	8,371,000		$	7,861,000		$	15,931,000		$	15,071,000
Resident fees and services		2,020,000			2,020,000			3,722,000			3,722,000
Tenant reimbursements and other income		308,000			234,000			631,000			513,000
		10,699,000			10,115,000			20,284,000			19,306,000
Expenses:
Property operating and maintenance expenses		6,464,000			6,372,000			12,152,000			12,001,000
General and administrative expenses		1,297,000			1,292,000			1,961,000			1,958,000
Asset management fees and expenses		376,000			376,000			807,000			807,000
Real estate acquisition costs and contingent consideration		514,000			514,000			1,641,000			1,431,000
Depreciation and amortization		2,129,000			1,974,000			3,990,000			3,712,000
		10,780,000			10,528,000			20,551,000			19,909,000
Loss from operations		(81,000	)		(413,000	)		(267,000	)		(603,000	)
Other income (expense):
Interest income		3,000			3,000			7,000			7,000
Interest expense		(1,604,000	)		(1,403,000	)		(3,080,000	)		(2,726,000	)
Net income (loss) from unconsolidated entities		—			99,000			—			(15,000	)
Net loss		(1,682,000	)		(1,714,000	)		(3,340,000	)		(3,337,000	)
Less: Net income (loss) attributable to the noncontrolling interests		16,000			(16,000	)		(49,000	)		(46,000	)
Net loss attributable to common stockholders	$	(1,698,000	)	$	(1,698,000	)	$	(3,291,000	)	$	(3,291,000	)
Basic and diluted net loss per common share attributable to common stockholders	$	(0.13	)	$	(0.13	)	$	(0.26	)	$	(0.26	)

	2011 6 months ended 6/30
	As Previously Reported			As Corrected
Cash flows from operating activities:
Net loss	$	(3,340,000	)	$	(3,337,000	)
Adjustments to reconcile net loss to net cash used in operating activities:
Amortization of deferred financing costs		283,000			120,000
Depreciation and amortization		3,990,000			3,712,000
Straight-line rent amortization		(452,000	)		(251,000	)
Real estate earn out costs		721,000			511,000
Equity loss from an unconsolidated entity					15,000
Bad debt expense		1,630,000			1,630,000
Change in operating assets/liabilities:
Tenant and other receivables		299,000			39,000
Prepaid expenses and other assets		(1,027,000	)		(1,033,000	)
Restricted cash		(221,000	)		(154,000	)
Prepaid rent and security deposits		498,000			352,000
Payable to related parties		(38,000	)		(38,000	)
Accounts payable and accrued liabilities		1,475,000			1,739,000
Receivable from related parties		(1,630,000	)		(1,630,000	)
Net cash provided by operating activities		2,188,000			1,675,000
Cash flows from investing activities:
Real estate acquisitions		(19,751,000	)		(19,741,000	)
Additions to real estate		(371,000	)		(371,000	)
Payments for construction in progress		—			(81,000	)
Purchase of an interest in an unconsolidated entity		—			(897,000	)
Changes in Restricted cash		(118,000	)		(118,000	)
Development of real estate		(2,807,000	)
Acquisition deposits		100,000			100,000
Distributions from unconsolidated joint ventures		—			227,000
Net cash used in investing activities		(22,947,000	)		(20,881,000	)
Cash flows from financing activities:
Proceeds from issuance of common stock		14,160,000			14,160,000
Redeemed shares		(1,604,000	)		(1,604,000	)
Proceeds from issuance of notes payable		16,901,000			14,571,000
Repayment of notes payable		(395,000	)		(399,000	)
Payment of real estate earn out costs		(1,000,000	)		(1,000,000	)
Offering costs		(1,917,000	)		(1,917,000	)
Deferred financing costs		(302,000	)		(150,000	)
Distributions paid to stockholders		(3,149,000	)		(3,149,000	)
Distributions paid to noncontrolling interest		(71,000	)		—
Net cash provided by financing activities		22,623,000			20,512,000
Net increase in cash and cash equivalents		1,864,000			1,306,000
Cash and cash equivalents - beginning of period		29,819,000			29,718,000
Cash and cash equivalents - end of period		31,683,000			31,024,000
Supplemental disclosure of cash flow information:
Cash paid for interest	$	2,718,000		$	2,364,000
Cash paid for income taxes		441,000			441,000
Supplemental disclosure of non-cash financing and investing activities:
Distribution declared not paid		801,000			801,000
Distribution reinvested		1,484,000			1,484,000
Accrued real estate development costs		279,000			—
Accrued promote monetization liability		2,018,000			—
Deferred financing amortization capitalized to real estate development		20,000			—

	2011
	As Previously Reported			As Corrected
Retained Earnings (Accumulated Deficit)
Beginning of period – December 31, 2010		(11,722,000	)		(11,722,000	)
End of period – June 30, 2011		(15,013,000	)		(15,013,000	)

The Company notes that certain balances within the condensed consolidated statement of equity from December 31, 2010 and June 30,2011 were corrected as a result of the correction of the immaterial error noted above. The noncontrolling interest balance at December 31, 2010 was reported as $2.8 million and has been adjusted to $1.7 million, which changed total equity from a reported balance of $82.8 million to an adjusted balance of $81.7 million. The noncontrolling interest balance at June 30, 2011 was reported as $2.7 million and has been adjusted to $1.7 million, which changed total equity from a reported balance of $86.8 million to an adjusted balance of $85.8 million. There were no other changes in the condensed consolidated statement of equity as a result of the correction of the above noted immaterial error.

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Investment in Real Estate and Unconsolidated Entites (Details 2) (USD $)	Jun. 30, 2012
Estimated amortization
July 2012 - December 2012	$ 322,000
2013	355,000
2014	355,000
2015	355,000
2016	355,000
2017	354,000
2018 and thereafter	$ 2,600,000

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Investment in Real Estate and Unconsolidated Entites (Tables)

6 Months Ended

Jun. 30, 2012

Investment in Real Estate [Abstract]

Summary of current property portfolio

Property	Location	Date Purchased	Gross Square Feet		Purchase Price		June 30, 2012 Debt		June 30, 2012 % Occupancy
Caruth Haven Court	Highland Park, TX	01/22/09		74,647	$	20,500,000	$	9,736,000		97	%
The Oaks Bradenton	Bradenton, FL	05/01/09		18,172	$	4,500,000	$	4,095,000		100	%
GreenTree at Westwood (1)	Columbus, IN	12/30/09		50,249	$	5,150,000	$	3,865,000		99	%
Mesa Vista Inn Health Center	San Antonio, TX	12/31/09		55,525	$	13,000,000	$	7,033,000		100	%
Rome LTACH Project	Rome, GA	01/12/10		52,944	$	18,900,000	$	13,509,000		100	%
Oakleaf Village Portfolio
Oakleaf Village at — Lexington	Lexington, SC	04/30/10		67,000	$	14,512,000	$	9,420,000		83	%
Oakleaf Village at — Greenville	Greer, SC	04/30/10		65,000	$	12,488,000	$	8,118,000		70	%
Global Rehab Inpatient Rehab Facility	Dallas, TX	08/19/10		40,828	$	14,800,000	$	7,396,000		100	%
Terrace at Mountain Creek (3)	Chattanooga, TN	09/03/10		109,643	$	8,500,000	$	8,775,000		89	%
Littleton Specialty Rehabilitation Facility	Littleton, CO	12/16/10		26,808		(4)		(4)		100	%
Carriage Court of Hilliard	Hilliard, OH	12/22/10		69,184	$	17,500,000	$	13,364,000		91	%
Hedgcoxe Health Plaza	Plano, TX	12/22/10		32,109	$	9,094,000	$	5,060,000		100	%
River’s Edge of Yardley	Yardley, PA	12/22/10		26,146	$	4,500,000	$	6,500,000		98	%
Forestview Manor	Meredith, NH	01/14/11		34,270	$	10,750,000	$	8,775,000		98	%
Woodland Terrace at the Oaks	Allentown, PA	04/14/11		50,400	$	9,000,000	$	5,800,000		74	%
Physicians Centre MOB	Bryan, TX	04/02/12		114,583		(5)		(5)		68	%

⁽¹⁾  The earn-out agreement associated with this acquisition was estimated to have a fair value of $1.0 million as of December 31, 2011 and an earn-out payment of approximately $1.0 million was made in January of 2012. For the three month periods ended June 30, 2012 and 2011, expense of $0 and approximately $0.2 million related to the increased earn-out liability associated with the earn-out payment have been included in the condensed consolidated statements of operations under real estate acquisition costs and contingent consideration. For the six month periods ended June 30, 2012 and 2011, expense of $0 and approximately $0.5 million related to the increased earn-out liability associated with the earn-out payment have been included in the condensed consolidated statements of operations under real estate acquisition costs and contingent consideration.

⁽²⁾ Rome LTACH, a development project, was completed in February 2011 and its first tenant moved in on February 1, 2011. As of June 30, 2012 the real estate assets costs for the property were $16.2 million. In April 2012, the Company acquired the interests of Cornerstone Private Equity Fund Operating Partnership, LP and the Cirrus Group affiliates in Rome LTH Partners, LP for a total payment of approximately $5.2 million. We previously held an equity method investment in this property. Therefore, as of April 2012, the Company owned 100% of Rome LTH Partners, LP and consolidated its existing equity method investment and the acquired interest at fair value in the amount of $18.9 million. Refer to Note 5 and 14 for more information on the acquisition and preliminary purchase price allocation.

⁽³⁾ Under the purchase and sale agreement executed in connection with the acquisition, a portion of the purchase price for the property was to be calculated and paid to the seller as earn-out payments based upon the net operating income, as defined, of the property during each of the three years following our acquisition of the property. The earn-out value of $1.0 million was paid during the second quarter of 2011.

⁽⁴⁾ Littleton Specialty Rehabilitation Facility, a development project and unconsolidated entity accounted for on the equity method, was completed in April 2012, and the single tenant began paying rent in July 2012, in accordance with the terms of the lease. Tenant operations will commence upon licensure of the facility. As of June 30, 2012, real estate asset costs for the property were approximately $7.1 million and we had invested a total of approximately $1.6 million in this project.

⁽⁵⁾  On April 2, 2012, through a wholly owned subsidiary, the Company invested $2.5 million to acquire an interest in the Physicians Centre MOB along with Caddis Partners and related affiliates. This investment is accounted for on the equity method and discussed further in Note 5.

Cost and accumulated depreciation and amortization related to real estate assets and related lease intangibles

As of June 30, 2012, cost and accumulated depreciation and amortization related to real estate assets and related lease intangibles were as follows:

	Land		Buildings and improvements			Furniture, fixtures and equipment			Intangible  lease assets
Cost	$	20,713,000	$	122,564,000		$	3,733,000		$	12,552,000
Accumulated depreciation and amortization		—		(6,915,000	)		(1,381,000	)		(7,856,000	)
Net	$	20,713,000	$	115,649,000		$	2,352,000		$	4,696,000

As of December 31, 2011, accumulated depreciation and amortization related to investments in real estate and related lease intangibles were as follows:

	Land		Buildings and improvements			Furniture, fixtures and equipment			Intangible  lease assets
Cost	$	20,713,000	$	105,340,000		$	3,578,000		$	10,649,000
Accumulated depreciation and amortization		—		(4,653,000	)		(1,016,000	)		(6,784,000	)
Net	$	20,713,000	$	100,687,000		$	2,562,000		$	3,865,000

Estimated amortization

Estimated amortization for July 1, 2012 through December 31, 2012 and each of the subsequent years is as follows:

	Intangible assets
July 2012 — December 2012	$	322,000
2013	$	355,000
2014	$	355,000
2015	$	355,000
2016	$	355,000
2017	$	354,000
2018 and thereafter	$	2,600,000

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Organization

6 Months Ended

Jun. 30, 2012

Organization [Abstract]

Organization

1. Organization

Sentio Healthcare Properties, Inc., a Maryland corporation, was formed on October 16, 2006 under the Maryland General Corporation Law for the purpose of engaging in the business of investing in and owning commercial real estate. As used in this report, the “Company”, “we”, “us” and “our” refer to Sentio Healthcare Properties, Inc. and its consolidated subsidiaries, except where context otherwise requires. Effective January 1, 2012, subject to certain restrictions and limitations, our business is managed by Sentio Investments, LLC, a Florida limited liability company that was formed on December 20, 2011 (the “Advisor”). Sentio Investments, LLC is controlled by John Mark Ramsey, our Chief Executive Officer and formerly an owner of our prior sub-advisor, Servant Healthcare Investments, LLC. Prior to January 1, 2012, Cornerstone Leveraged Realty Advisors, LLC, a Delaware limited liability company that was formed on October 16, 2006, was our advisor (the “Prior Advisor”).

Sentio Healthcare Properties OP, LP, a Delaware limited partnership (the “Operating Partnership”), was formed on October 17, 2006. At June 30, 2012, we owned 100% of the interest in the Operating Partnership and HC Operating Partnership, LP, a subsidiary of the Operating Partnership. We anticipate that we will conduct all or a portion of our operations through the Operating Partnership. Our financial statements and the financial statements of the Operating Partnership and its subsidiaries are consolidated in the accompanying condensed consolidated financial statements. All intercompany accounts and transactions have been eliminated in consolidation.

For federal income tax purposes, we have elected to be taxed as a real estate investment trust under Sections 856 through 860 of the Internal Revenue Code of 1986, as amended (the “Code”), beginning with our taxable year ended December 31, 2008. REIT status imposes limitations related to operating assisted-living properties. Generally, to qualify as a REIT, we cannot directly operate assisted-living facilities. However, such facilities may generally be operated by a taxable REIT subsidiary (“TRS”) pursuant to a lease with the Company. Therefore, we have formed Master HC TRS, LLC (“Master TRS”), a wholly owned subsidiary of HC Operating Partnership, LP, to lease any assisted-living properties we acquire and to operate the assisted-living properties pursuant to contracts with unaffiliated management companies. Master TRS and the Company have made the applicable election for Master TRS to qualify as a TRS. Under the management contracts, the management companies have direct control of the daily operations of these assisted-living properties.

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Condensed Consolidated Balance Sheets (Parenthetical) (Unaudited) (USD $)	Jun. 30, 2012	Dec. 31, 2011
Condensed Consolidated Balance Sheets [Abstract]
Preferred stock, par value	$ 0.01	$ 0.01
Preferred stock, shares authorized	20,000,000	20,000,000
Preferred stock, shares issued
Preferred stock, shares outstanding
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	580,000,000	580,000,000
Common stock, shares issued	12,856,819	12,916,612
Common stock, shares outstanding	12,856,819	12,916,612

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Stockholders' Equity

6 Months Ended

Jun. 30, 2012

Stockholders' Equity [Abstract]

Stockholders' Equity

11. Stockholders’ Equity

Common Stock

Our charter authorizes the issuance of 580,000,000 shares of common stock with a par value of $0.01 per share and 20,000,000 shares of preferred stock with a par value of $0.01 per share. As of June 30, 2012, including distributions reinvested, we had issued approximately 13.3 million shares of common stock for a total of approximately $132.3 million of gross proceeds in our initial and follow-on public offering. As of June 30, 2011, including distributions reinvested, we had issued approximately 13.3 million shares of common stock for total gross proceeds of approximately $132.3 million in our initial public offering and follow-on public offering.

Distributions

We have adopted a distribution reinvestment plan that allows our stockholders to have dividends and other distributions otherwise distributable to them invested in additional shares of our common stock at their election. We have registered 10,000,000 shares of our common stock for sale pursuant to the distribution reinvestment plan. The purchase price per share is 95% of the price paid by the purchaser for our common stock, but not less than $9.50 per share. As of June 30, 2012 and December 31, 2011, approximately 551,000 shares had been issued under the distribution reinvestment plan.

On April 29, 2011, we informed our stockholders that our Independent Directors Committee had directed us to suspend our offering, our dividend reinvestment plan and our stock repurchase program (except repurchases due to death) because of the uncertainty associated with our Independent Directors Committee consideration of various strategic alternatives to enhance our stockholders’ value. As a result, we suspended our distribution reinvestment plan effective as of May 10, 2011.

The following are the distributions declared during the six months ended June 30, 2012 and 2011:

	Distribution Declared (1)
Period	Cash		Reinvested		Total
First quarter 2011	$	1,152,000	$	1,124,000	$	2,276,000
Second quarter 2011	$	2,436,000	$	—	$	2,436,000
First quarter 2012	$	801,000	$	—	$	801,000
Second quarter 2012	$	799,000	$	—	$	799,000

(1) Distributions declared represented a return of capital and taxable ordinary income for tax purposes. In order to meet the requirements for being treated as a REIT under the Internal Revenue Code, we must pay distributions to our stockholders each taxable year equal to at least 90% of our net ordinary taxable income. Some of our distributions have been paid from sources other than operating cash flow, such as offering proceeds. Until proceeds from our offering are fully invested and generating operating cash flow sufficient to fully cover distributions to stockholders, we intend to pay all or a portion of our distributions from the proceeds of our offerings or from borrowings in anticipation of future cash flow.

The declaration of distributions is at the discretion of our board of directors and our board will determine the amount of distributions on a regular basis. The amount of distributions will depend on our funds from operations, financial condition, capital requirements, annual distribution requirements under the REIT provisions of the Internal Revenue Code and other factors our board of directors deems relevant. On June 30, 2011, our board of directors resolved to lower our distributions to a current annualized rate of $0.25 per share (2.5% based on a share price of $10.00) from the prior annualized rate of $0.75 per share (7.5% based on a share price of $10.00), effective July 1, 2011 and continuing until and including June 30, 2012. Distributions are paid quarterly commencing with the third quarter distribution paid in October 2011. The rate and frequency of distributions is subject to the discretion of our board of directors and may change from time to time based on our operating results and cash flow.

From our inception in October 2006 through June 30, 2012, we declared aggregate distributions of $16.2 million and our cumulative net loss during the same period was $16.8 million.

Stock Repurchase Program

We adopted a stock repurchase program for investors who have held their shares for at least one year, unless the shares are being repurchased in connection with a stockholder’s death. Under our stock repurchase program, the repurchase price varies depending on the purchase price paid by the stockholder and the number of years the shares are held. Our board of directors may amend, suspend or terminate the program at any time on 30 days prior notice to stockholders. Our board of directors may modify our stock repurchase program so that we can repurchase stock using the proceeds from the sale of our real estate investments or other sources, however, we have no obligation to repurchase our stockholders’ shares. Our board of directors waived the one-year holding period in the event of the death of a stockholder and adjusted the repurchase price to 100% of such stockholders purchase price if the stockholder held the shares for less than three years. Our board of directors reserves the right in its sole discretion at any time and from time to time, upon 30 days prior notice to our stockholders, to adjust the repurchase price for our shares of stock, or suspend or terminate our stock repurchase program.

On April 29, 2011, we informed our stockholders that our Independent Directors Committee had directed us to suspend our offering, our dividend reinvestment program and our stock repurchase program (except repurchases due to death) because of the uncertainty associated with our Independent Directors Committee consideration of various strategic alternatives to enhance our stockholder value. As a result, we suspended our stock repurchase program effective as of May 29, 2011. On December 22, 2011, our Board of Directors approved a net asset valuation of $9.02 per share, and revised the share repurchase price upon the death of a shareholder to this amount.

During the three and six months ended June 30, 2012, we repurchased shares pursuant to our stock repurchase program as follows:

Period	Total Number of Shares Redeemed		Average Price Paid per Share
January		33,008	$	9.98
February		—	$	—
March		—	$	—
First quarter 2012		33,008	$	9.98
April		9,203	$	9.00
May		17,582	$	9.00
June		—	$	—
Second quarter 2012		26,785	$	9.00
		59,793

During the three and six months ended June 30, 2011, we repurchased 123,478 and 167,308 shares, respectively, pursuant to our stock repurchase program.

During the six months ended June 30, 2012, we received requests to have an aggregate of 62,293 shares repurchased pursuant to our stock repurchase program. Of these requests 2,500 shares were not able to be repurchased due to the limitations contained in the terms of our stock repurchase program and the suspension of our stock repurchase program as of May 29, 2011.

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Document and Entity Information	6 Months Ended
	Jun. 30, 2012	Aug. 17, 2012
Document and Entity Information [Abstract]
Entity Registrant Name	Sentio Healthcare Properties Inc
Entity Central Index Key	0001378774
Document Type	10-Q/A
Document Period End Date	Jun. 30, 2012
Amendment Flag	true
Document Fiscal Year Focus	2012
Document Fiscal Period Focus	Q2
Current Fiscal Year End Date	--12-31
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		12,853,819
Amendment Description	The purpose of this Amendment No. 1 to Sentio Healthcare Properties, Inc. Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2012, filed with the Securities and Exchange Commission on August 20, 2012 (the “Form 10-Q”), is solely to furnish Exhibit 101 to the Form 10-Q in accordance with Rule 405 of Regulation S-T. Exhibit 101 to this report provides the consolidated financial statements and related notes from the Form 10-Q formatted in XBRL (eXtensible Business Reporting Language). No other changes have been made to the Form 10-Q. This Amendment No. 1 to the Form 10-Q speaks as of the original filing date of the Form 10-Q, does not reflect events that may have occurred subsequent to the original filing date, and does not modify or update in any way disclosures made in the original Form 10-Q. XBRL (Extensible Business Reporting Language) information is furnished and not filed or a part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933, is deemed not filed for purposes of Section 18 of the Securities Exchange Act of 1934, and otherwise is not subject to liability under these sections

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Related Party Transactions

6 Months Ended

Jun. 30, 2012

Related Party Transactions [Abstract]

Related Party Transactions

12. Related Party Transactions

The Company has no employees. Our Advisor is primarily responsible for managing our business affairs and carrying out the policies established by our board of directors. We have an advisory agreement that entitles the Advisor to specified fees upon the provision of certain services to us, as well as reimbursement for organizational and offering costs incurred by the Advisor on our behalf and reimbursement of certain costs and expenses incurred by the Advisor in providing services to us. Effective January 1, 2012, Sentio Investments, LLC became our Advisor under a new advisory agreement (the “2012 Advisory Agreement”). On July 29, 2011, the Company executed the Omnibus Agreement, which provided for a number of significant changes to the Company’s Advisory Agreement with the Prior Advisor (the “2011 Advisory Agreement”). The 2012 Advisory Agreement and the 2011 Advisory Agreement are collectively referred to as the “Advisory Agreements”.

Advisory Agreements

Under the terms of the 2012 Advisory Agreement, the Advisor is required to use commercially reasonable efforts to present to us investment opportunities to provide a continuing and suitable investment program consistent with the investment policies and objectives adopted by our board of directors. The 2012 Advisory Agreement calls for the Advisor to provide for our day-to-day management and to retain property managers and leasing agents, subject to the authority of our board of directors, and to perform other duties. The 2011 Advisory Agreement had similar provisions.

The fees and expense reimbursements payable to the Advisor and Prior Advisor (collectively, the “Advisors”) under the 2012 Advisory Agreement and the 2011 Advisory Agreement are described below.

Organizational and Offering Costs. Organizational and offering costs of our offerings paid by the Prior Advisor on our behalf were reimbursed to the Prior Advisor from the proceeds of our offerings. Organizational and offering costs consisted of all expenses (other than sales commissions and the dealer manager fee) to be paid by us in connection with our offerings, including our legal, accounting, printing, mailing and filing fees, charges of our escrow holder and other accountable offering expenses, including, but not limited to, (i) amounts to reimburse the Advisor for all marketing related costs and expenses such as salaries and direct expenses of employees of the Advisor and its affiliates in connection with registering and marketing our shares; (ii) technology costs associated with the offering of our shares; (iii) our costs of conducting our training and education meetings; (iv) our costs of attending retail seminars conducted by participating broker-dealers; and (v) payment or reimbursement of bona fide due diligence expenses. At times during our offering stage, the amount of organization and offering expenses that we incur, or that the Advisor and its affiliates incur on our behalf, may exceed 3.5% of the gross offering proceeds then raised, but our Advisor is required to reimburse us to the extent that our organization and offering expenses exceed 3.5% of aggregate gross offering proceeds at the conclusion of our offering. In addition, the Advisor will also pay any organization and offering expenses to the extent that such expenses, plus sales commissions and the dealer manager fee (but not the acquisition fees or expenses) are in excess of 13.5% of gross offering proceeds. In no event will we have any obligation to reimburse the Advisor for organizational and offering costs totaling in excess of 3.5% of the gross proceeds from our primary offerings. As of June 30, 2012 and December 31, 2011, the Prior Advisor and its affiliates had incurred organizational and offering costs totaling approximately $5.1 million, including $0.1 million of organizational costs that have been expensed and $5.0 million of offering costs that reduce net proceeds of our offerings. Of this amount $4.0 million reduced the net proceeds of our initial public offering and $1.0 million reduced the net proceeds of our follow-on offering. Upon the execution of the Omnibus Agreement, we forgave $0.8 million of organization and offering costs in excess of the 3.5% of gross offering proceeds advanced to Prior Advisor pursuant to the 2011 Advisory Agreement. This amount reduced our offering proceeds and has therefore been treated as a reduction in additional paid-in capital in our condensed consolidated balance sheet.

Acquisition Fees and Expenses. The 2012 Advisory Agreement requires us to pay the Advisor acquisition fees in an amount equal to 1.0% of the investments acquired, including any debt attributable to such investments. In addition, we are required to reimburse the Advisor for direct costs the Advisor incurs and amounts the Advisor pays to third parties in connection with the selection and acquisition of a property, whether or not ultimately acquired. The 2011 Advisory Agreement required us to pay the Prior Advisor acquisition fees in an amount equal to 2.0% of the investments acquired, including any debt attributable to such investments. A portion of the acquisition fees were paid upon receipt of offering proceeds, and the balance were paid at the time we acquired a property. However, if the 2011 Advisory Agreement was terminated or not renewed, the Prior Advisor was obligated to return acquisition fees not yet allocated to one of our investments. In addition, we were required to reimburse the Prior Advisor for direct costs the Prior Advisor incurred and amounts the Prior Advisor paid to third parties in connection with the selection and acquisition of a property, whether or not ultimately acquired. For the three months and six months ended June 30, 2012 the Advisor earned approximately $0.1 million of acquisition fees. For the three months and six months ended June 30, 2011, the Prior Advisor earned approximately $0.2 million and $0.5 million in acquisition fees, respectively. As of June 30, 2011, the amount of acquisition fees that had been paid to the Prior Advisor but not allocated to one of our investments was $0.9 million. That amount was expensed and included in real estate acquisition costs and earn out costs in our condensed consolidated statements of operations. Upon the execution of the Omnibus Agreement, we forgave the advance not earned through services rendered in connection with future acquisitions.

Financing Coordination Fee. The 2012 Advisory Agreement requires us to pay the Advisor a financing coordination fee equal to 0.5% of the gross amount of any refinancing, provided, however, that the Advisor shall not be entitled to a financing coordination fee in connection with the refinancing of any debt obligations secured by any particular Asset that was previously subject to a refinancing in which the Advisor received a financing coordination fee within the immediately preceding three year period. For the three months and six months ended June 30, 2012 the Advisor earned approximately $0.2 million of financing coordination fees. The 2011 Advisory Agreement did not provide for a financing coordination fee.

Management Fees. The 2012 Advisory Agreement requires us to pay the Advisor a monthly asset management fee of one-twelfth of 1.0% of the greater of the of (i) the average GAAP basis book carrying value of such asset before reserves for depreciation or bad debts or other similar non-cash reserves, computed by taking the average of such values at the end of each month during such period (or if such specified period is a single month, then the average of such values during such month), or (ii) an amount determined as follows: (A) if such property, loan, or other permitted investment has been appraised by an independent appraiser within the immediately preceding twelve month period, the appraised value of such property, loan, or other permitted investment, or (B) if such property, loan, or other permitted investment has not been appraised by an independent appraiser within the immediately preceding twelve month period, the estimated fair market value of such property, loan, or other permitted investment, as approved by the Independent Directors Committee. The value of each property, loan, or other permitted investment owned by a joint venture shall be the product of the Company’s pro rata ownership interest in such joint venture, multiplied by the greater of (i) the average GAAP basis book carrying value of such asset before reserves for depreciation or bad debts or other similar non-cash reserves, computed by taking the average of such values at the end of each month during such period (or if such specified period is a single month, then the average of such values during such month), or (ii) an amount determined as follows: (A) if such property, loan, or other permitted investment has been appraised by an independent appraiser within the immediately preceding twelve month period, the appraised value of such property, loan, or other permitted Investment, or (B) if such property, loan, or other permitted investment has not been appraised by an independent appraiser within the immediately preceding twelve month period, the estimated fair market value of such property, loan, or other permitted investment, as approved by the Independent Directors Committee. These fees and expenses are in addition to management fees that we expect to pay to third party property managers.

The Prior Advisory Agreement required us to pay the Advisor a monthly asset management fee of one-twelfth of 1.0% of the sum of the aggregate basis in book carrying values of our assets invested, directly or indirectly, in equity interests in and loans secured by real estate before reserves for depreciation or bad debts or other similar non-cash reserves, calculated in accordance with GAAP. In addition, we reimbursed the Prior Advisor for the direct and indirect costs and expenses incurred by the Prior Advisor in providing asset management services to us, including personnel and related employment costs related to providing asset management services on our behalf and amounts paid by our Advisor to Servant Investments, LLC and Servant Healthcare Investments, LLC for portfolio management services provided on our behalf. These fees and expenses are in addition to management fees paid to third party property managers.

For the three months and six months ended June 30, 2012, the Advisor earned approximately $0.5 million and $1.0 million of management fees, respectively. For the three months six months ended June 30, 2011, the Prior Advisor earned approximately $0.4 million and $0.8 million of management fees, respectively. These fees were expensed. For the three months and six months ended June 30, 2011, the Prior Advisor also incurred approximately $0.2 million and $0.4 million of direct and indirect costs and expenses, which are included in asset management fees and expensed in the condensed consolidated statement of operations. No comparable charges were made by the Advisor in 2012.

Operating Expenses. The 2012 Advisory Agreement does not provide for the reimbursement of the Advisor’s direct or indirect costs of providing administrative services to us. Accordingly, there were no such charges for the three months and six months ended June 30, 2012. The 2011 Advisory Agreement provided for reimbursement of the Prior Advisor’s direct and indirect costs of providing administrative and management services to us. For the three months and six months ended June 30, 2011, approximately $0.4 million and $0.8 million of such costs were reimbursed and included in general and administrative expenses on our condensed consolidated statements of operations.

Consistent with limitations set forth in our charter, the Advisory Agreements further provide that, commencing four fiscal quarters after the acquisition of our first real estate asset, we shall not reimburse the Advisor at the end of any fiscal quarter management fees and expenses and operating expenses that, in the four consecutive fiscal quarters then ended exceed (the “Excess Amount”) the greater of 2% of our average invested assets or 25% of our net income for such year (the “2%/25% Guidelines”) unless the Independent Directors Committee of our board of directors determines that such excess was justified, based on unusual and nonrecurring factors which it deems sufficient. If the Independent Directors Committee does not approve such excess as being so justified, the advisory agreement requires that any Excess Amount paid to the Advisor during a fiscal quarter shall be repaid to the Company. In addition, our charter provides that, if the Independent Directors Committee does not determine that the Excess Amount is justified, the Advisor shall reimburse us the amount by which the aggregate annual expenses paid to the Advisor during the four consecutive fiscal quarters then ended exceed the 2%/25% Guidelines.

For the three months ended June 30, 2012, our management fees and expenses and operating expenses exceeded the greater of 2% of our average invested assets and 25% of our net income. For the four quarters ended June 30, 2012, our management fees and expenses and operating expenses totaled $5.0 million. This amount exceeded the greater of 2% of our average invested assets and 25% of our net loss by $1.6 million. Our Independent Directors Committee determined that the Excess Amount was justified as unusual and non-recurring due to recent exploration of strategic alternatives for the Company and transition to a new advisor.

Disposition Fee. The 2012 Advisory Agreement provides that if the Advisor or an Affiliate provides a substantial amount of the services (as determined by a majority of the Directors, including a majority of the Independent Directors Committee) in connection with the sale of one or more properties, other than a sale in connection with a transaction in which the Company sells, grants, transfers, conveys or relinquishes its ownership of all or substantially all of the Company’s assets, the Advisor or such Affiliate shall receive at the closing of such sale a disposition fee equal to the lesser of (i) 1.0% of the sales price of such property or properties, or (ii) one-half of the Competitive Real Estate Commission for such property. Any disposition fee payable may be paid in addition to real estate commissions paid to non-Affiliates, provided that the total real estate commissions (including such disposition fee) paid to all persons by the Company for each property shall not exceed an amount equal to the lesser of (i) 6.0% of the aggregate contract sales price of each property or (ii) the competitive real estate commission for each property.

Subordinated Participation Provisions. The Advisor is entitled to receive a subordinated participation upon the sale of our properties, listing of our common stock or termination of the Advisor, as follows:

• After we pay stockholders cumulative distributions equal to their invested capital plus a 7% cumulative, non-compounded return, the Advisor will be paid a subordinated participation in net sale or refinancing proceeds of 10%. Following a listing, this fee will no longer be payable.

• Upon termination of the advisory agreement, other than for cause, the Advisor will receive the subordinated performance fee due upon termination in the form of a promissory note bearing simple interest at a rate of 5% per annum, in a principal amount equal to 10% the amount, if any, which the sum of the appraised value of our assets minus our liabilities on the date the advisory agreement is terminated plus total distributions (other than stock distributions) paid prior to termination of the advisory agreement exceeds the amount of invested capital plus annualized returns of 7%, less any prior payment to the Advisor of a subordinated share of cash from sales or refinancing’s.

• In the event we list our stock for trading, the Advisor will receive a subordinated incentive listing fee instead of a subordinated participation in net sales proceeds in an amount equal to 10% of the amount by which the market value of our common stock plus all prior distributions (other than stock distributions) exceeds the amount of invested capital plus annualized returns of 7% less any prior payment to the Advisor of a subordinated share of cash from sales or refinancing’s.

Dealer Manager Agreements

Pacific Cornerstone Capital, Inc. (“PCC”), an affiliate of the Prior Advisor, was the dealer manager for our initial and follow-on public offerings, prior to the suspension of our follow-on offering on April 29, 2011. As such, PCC was entitled to receive a sales commission of up to 7% of gross proceeds from sales in the primary offerings. PCC is also entitled to receive a dealer manager fee equal to up to 3% of gross proceeds from sales in the primary offerings. PCC was also entitled to receive a reimbursement of bona fide due diligence expenses up to 0.5% of the gross proceeds from sales in the primary offerings. The 2011 Advisory Agreement required the Prior Advisor to reimburse us to the extent that offering expenses including sales commissions, dealer manager fees and organization and offering expenses (but excluding acquisition fees and acquisition expenses discussed above) were in excess of 13.5% of gross proceeds from our primary offerings. For the three months and six months ended June 30, 2011, PCC earned sales commission and dealer manager fees of approximately $0.3 million and $1.7 million, respectively. Dealer manager fees and sales commissions paid to PCC are a cost of capital raised and, as such, are included as a reduction of additional paid in capital in the accompanying condensed consolidated balance sheets.

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Condensed Consolidated Statements of Operations (Unaudited) (USD $)	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011
Revenue:
Rental revenue	$ 8,249,000	$ 7,861,000	$ 16,094,000	$ 15,071,000
Resident services and fee income	2,311,000	2,020,000	4,589,000	3,722,000
Tenant reimbursements and other income	447,000	234,000	809,000	513,000
Total revenues	11,007,000	10,115,000	21,492,000	19,306,000
Expenses:
Property operating and maintenance	6,921,000	6,372,000	13,447,000	12,001,000
General and administrative expenses	370,000	1,292,000	1,204,000	1,958,000
Asset management fees and expenses	503,000	376,000	984,000	807,000
Real estate acquisition costs and contingent consideration	190,000	514,000	206,000	1,431,000
Depreciation and amortization	1,530,000	1,974,000	2,963,000	3,712,000
Total expenses	9,514,000	10,528,000	18,804,000	19,909,000
Income (loss) from operations	1,493,000	(413,000)	2,688,000	(603,000)
Other income (expense):
Interest income	1,000	3,000	1,000	7,000
Interest expense	(1,597,000)	(1,403,000)	(3,024,000)	(2,726,000)
Other income/expense	(146,000)		(152,000)
Net (loss) income from unconsolidated entities	(442,000)	99,000	(376,000)	(15,000)
Fair value adjustment for equity method investment	1,282,000		1,282,000
Net income (loss)	591,000	(1,714,000)	419,000	(3,337,000)
Net income (loss) attributable to noncontroling interests	50,000	(16,000)	127,000	(46,000)
Net income (loss) attributable to common stockholders	$ 541,000	$ (1,698,000)	$ 292,000	$ (3,291,000)
Basic and diluted net income (loss) per common share attributable to common stockholders	$ 0.04	$ (0.13)	$ 0.02	$ (0.26)
Weighted-average number of common shares	12,870,880	13,004,904	12,884,712	12,488,389
Distribution declared, per common share	$ 0.06	$ 0.19	$ 0.06	$ 0.38

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Allowance for Doubtful Accounts

6 Months Ended

Jun. 30, 2012

Allowance for Doubtful Accounts [Abstract]

Allowance for Doubtful Accounts

6. Allowance for Doubtful Accounts

As of June 30, 2012 and December 31, 2011, we had recorded $65,000 and $76,000, respectively, as allowances for doubtful accounts related to tenants and other receivables.

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Investments in Consolidated Joint Ventures and Unconsolidated Entities

6 Months Ended

Jun. 30, 2012

Investments in Consolidated Joint Ventures and Unconsolidated Entities [Abstract]

Investments in Consolidated Joint Ventures and Unconsolidated Entities

5. Investments in Consolidated Joint Ventures and Unconsolidated Entities

Consolidated Joint Ventures

Oakleaf Joint Venture

On April 30, 2010, we invested approximately $21.6 million to acquire 80% equity interests in Royal Cornerstone South Carolina Portfolio, LLC (“Portfolio LLC”) and Royal Cornerstone South Carolina Tenant Portfolio, LLC (“Tenant LLC”) (collectively, we refer to the Portfolio LLC and the Tenant LLC as the “Oakleaf Joint Venture”). In accordance with the joint venture agreement, the Company is deemed the managing member and consolidates these entities. The Oakleaf Joint Venture owns and operates two assisted-living properties located in Lexington and Greenville, South Carolina. As of June 30, 2012, total assets related to Oakleaf Joint Venture were approximately $25.4 million, which includes approximately $23.8 million of real estate assets and total liabilities were approximately $18.1 million, which includes approximately $17.5 million of secured mortgage debt. We may be required to fund additional capital contributions, including funding of any capital expenditures deemed necessary to continue to operate the entity and any operating cash shortfalls that the entity may experience.

Rome LTACH Project

On January 12, 2010, we funded an investment in a joint venture with affiliates of The Cirrus Group, an unaffiliated entity, to develop a $16.3 million free-standing medical facility on the campus of the Floyd Medical Center in Rome, Georgia. We contributed approximately $2.7 million of capital to acquire a 75% limited partnership interest in Rome LTH Partners, LP (“Rome LTH”). Cornerstone Private Equity Fund Operating Partnership, LP, an affiliate of our Prior Advisor, contributed approximately $0.5 million of capital to acquire a 15% limited partnership interest in Rome LTH. Three affiliates of The Cirrus Group contributed an aggregate of approximately $0.3 million to acquire an aggregate 9.5% limited partnership interest in Rome LTH. A fourth affiliate of the Cirrus Group acted as the general partner and held the remaining 0.5% interest in Rome LTH. The terms of the Rome LTH operating agreement included provisions obligating the joint venture to monetize a portion of our partners’ interest in the appreciation of value in the joint venture property. The obligation was exercisable by our partners at their sole discretion between years two and four of the joint venture. In February 2011, construction of the Rome LTACH project was completed.

In December 2011, The Cirrus Group notified us of their intended exercise of the promote monetization provisions of the Rome LTH operating agreement. On April 6, 2012, we acquired the interests of Cornerstone Private Equity Fund Operating Partnership, LP in the Rome LTH for $1.1 million. On April 12, 2012, we acquired the interests of The Cirrus Group in Rome LTH for $4.1 million, which included a $3.0 million payment of the promote termination amount. As of April 12, 2012, we owned 100% of Rome LTH. Upon acquiring control of Rome LTH, the Company recorded a gain on the fair value adjustment of this previously recorded equity method investment in the amount of $1.3 million during the period ended June 30, 2012. The acquisition of interests was funded by approximately $2.6 million of equity raised in our offerings and $2.6 million of debt proceeds, which is presented as fair value adjustment for equity method investment in our statement of operations.

As of June 30, 2012, total assets related to this project were $18.9 million, which includes $18.0 million of net real estate related assets. Total liabilities were $13.6 million at June 30, 2012, which includes $13.5 million of secured mortgage debt. As of December 31, 2011, total assets related to this project were $16.5 million, which included $15.6 million of net real estate related assets. Total liabilities were $14.1 million at December 31, 2011, which includes $10.9 million of secured mortgage debt. For the three and six months ended June 30, 2011, Rome LTH recorded revenue of $0.6 million and $1.0 million, and net income (loss) of $0.1 million and $0.1 million, respectively.

Unconsolidated Entities

Littleton Specialty Rehabilitation Facility

On December 16, 2010, we funded an investment in a joint venture with affiliates of The Cirrus Group, an unaffiliated entity, to develop a $7.3 million specialty rehabilitation facility in Littleton, CO. We agreed to contribute approximately $1.6 million of capital to acquire a 90.0% limited partnership interest in Littleton Med Partners, LP. Three affiliates of The Cirrus Group contributed an aggregate of approximately $0.2 million to acquire an aggregate 9.5% limited partnership interest in the Littleton Med Partners, LP. A fourth affiliate of the Cirrus Group acts as the general partner and holds the remaining 0.5% interest in the Littleton Med Partners, LP. As of June 30, 2012 and December 31, 2011, we owned a 90.0% limited partnership interest in Littleton Med Partners, LP. Our net investment in this property as of June 30, 2012 and December 31, 2011 was $1.6 million. For the three months ended June 30, 2012 and 2011, we recorded a loss from this unconsolidated entity of $0.1 million and $0, respectively. For the six months ended June 30, 2012 and 2011, we recorded a loss from this unconsolidated entity of $0.1 million and $0, respectively. As of June 30, 2012, total assets related to this project were $7.3 million, which includes $7.0 million of net real estate related assets. Total liabilities were $5.6 million at June 30, 2012, which includes $5.4 million of secured mortgage debt. As of December 31, 2011, total assets related to this project were $6.0 million, which included $5.8 million of net real estate related assets. Total liabilities were $4.2 million at December 31, 2011, which includes $3.2 million of secured mortgage debt. The joint venture began operations in July 2012.

Under the terms of the joint venture agreement, the joint venture may be obligated to monetize a portion of our partners’ interest in the appreciation of value in the joint venture property. These obligations may be exercised by our partners at their sole discretion between years two and four of the joint venture. The amount that would be paid upon monetization is subject to change based on a number of factors, including the value of the property, net income earned by the property and payment of preferred returns on equity. In April 2012, construction of the property was completed and in July 2012, the tenant began paying rent in accordance with the terms of the lease. Tenant operations will commence upon licensure of the facility. As of June 30, 2012, the license to operate the specialty rehabilitation facility had not yet been received and operations had not commenced. As of June 30, 2012, the Company believes that it is reasonably possible that it may need to fund capital contributions to Littleton Med Partners, LP so that the partnership may terminate the promote monetization feature. Therefore, the Company may be required to fund additional capital into the partnership in the future that ranges from approximately $0.3 million to $1.2 million as of the period ended June 30, 2012.

Physicians Centre MOB

On April 2, 2012, through a wholly-owned subsidiary, we entered into a joint venture with affiliates of Caddis Partners, an unaffiliated entity, and a group of unaffiliated physicians to acquire an on-campus medical office building (the “Physicians Centers MOB”) located in Bryan, Texas.

The Company invested approximately $2.5 million of capital to acquire a 71.9% limited partnership interest in Bryan MOB Partners, L.P the (“Bryan LP”). Affiliates of Caddis Partners contributed an aggregate of approximately $0.35 million to acquire an aggregate 10.1% limited partnership interest in the Bryan LP and another affiliate of the Caddis Partners acts as the Bryan LP general partner, but does not own a partnership interest. The physician partners contributed approximately $0.625 million to acquire an 18.0% interest in Bryan LP. The Company’s equity investment in the joint venture was funded from proceeds from its public offering.

For the three and six months ended June 30, 2012, we recorded a loss from this unconsolidated entity of $0.3 million. As of June 30, 2012, total assets related to this joint venture were approximately $10.3 million, which includes approximately $9.6 million of real estate assets and total liabilities were approximately $7.3 million, which includes approximately $7.2 million of secured mortgage debt. At June 30, 2012, our maximum exposure to loss for this joint venture is limited to our investment. We may be required to fund additional capital contributions, including funding of any capital expenditures deemed necessary to continue to operate the entity, and any operating cash shortfalls that the entity may experience.

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Summary of Significant Accounting Policies (Policies)

6 Months Ended

Jun. 30, 2012

Summary of Significant Accounting Policies [Abstract]

Principles of Consolidation and Basis of Presentation

Principles of Consolidation and Basis of Presentation

The accompanying consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. In accordance with the guidance for the consolidation of variable interest entities (“VIEs”), we analyze our variable interests, including investments in partnerships and joint ventures, to determine if the entity in which we have a variable interest is a variable interest entity. Our analysis includes both quantitative and qualitative reviews, based on our review of the design of the entity, its organizational structure including decision-making ability, risk and reward sharing experience and financial condition of other partner(s), voting rights, involvement in day-to-day capital and operating decisions and financial agreements. We also use quantitative and qualitative analyses to determine if we must consolidate a variable interest entity as the primary beneficiary.

Investment in Unconsolidated Entities

Investments in Unconsolidated Entities

We account for our investments in an unconsolidated joint ventures under the equity method of accounting. We exercise significant influence, but do not control these entities or direct the activities that most significantly impact the venture’s performance. Investments in unconsolidated entities are recorded initially at cost and subsequently adjusted for cash contributions and distributions. We recognize our allocable share of the equity in earnings of our unconsolidated entities based on the respective venture’s structure and preferences.

Use of Estimates

Use of Estimates

The preparation of our financial statements requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses. We base these estimates on various assumptions that we believe to be reasonable under the circumstances, and these estimates form the basis for our judgments concerning the carrying values of assets and liabilities that are not readily apparent from other sources. We periodically evaluate these estimates and judgments based on available information and experience. Actual results could differ from our estimates under different assumptions and conditions. If actual results significantly differ from our estimates, our financial condition and results of operations could be materially impacted.

Comprehensive Income

Comprehensive Income

In June 2011, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) 2011-05, Comprehensive Income: Presentation of Comprehensive Income, which eliminates the option to present components of other comprehensive income as part of the statement of shareholders’ equity and requires the presentation of components of net income and components of other comprehensive income either in a single continuous statement of comprehensive income or in two separate but consecutive statements. In December 2011, the FASB deferred the requirement to present reclassification adjustments for each component of accumulated other comprehensive income in both net income and other comprehensive income on the face of the financial statements.

Interim Financial Information

Interim Financial Information

The accompanying interim condensed consolidated financial statements have been prepared by our management in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and in conjunction with the rules and regulations of the SEC. Certain information and note disclosures required for annual financial statements have been condensed or excluded pursuant to SEC rules and regulations. Accordingly, the interim condensed consolidated financial statements do not include all of the information and notes required by GAAP for complete financial statements. The accompanying financial information reflects all adjustments which are, in the opinion of our management, of a normal recurring nature and necessary for a fair presentation of our financial position, results of operations and cash flows for the interim periods. Operating results for the three and six months ended June 30, 2012 are not necessarily indicative of the results that may be expected for the year ending December 31, 2012. Our accompanying interim condensed consolidated financial statements should be read in conjunction with our audited condensed consolidated financial statements and the notes thereto included on our 2011 Annual Report on Form 10-K, as filed with the SEC.

Fair Value of Financial Instruments and Fair Value Measurements

Fair Value of Financial Instruments and Fair Value Measurements

FASB Accounting Standards Codification (“ASC”) 825-10, “Financial Instruments”, requires the disclosure of fair value information about financial instruments, whether or not recognized on the face of the balance sheet, for which it is practical to estimate that value. In May 2011, the FASB issued ASU 2011-04, Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRS (“ASU 2011-04”). The amendments in this update result in additional fair value measurement and disclosure requirements within U.S. GAAP and International Financial Reporting Standards. Consequently, the amendments change the wording used to describe many of the requirements in U.S. GAAP for measuring fair value and for disclosing information about fair value measurements. The adoption of ASU 2011-04 on January 1, 2012 did not have a material impact on the Company’s consolidated financial position or results of operations. The impact on the Company’s disclosures was not material. Financial assets and liabilities recorded at fair value on the condensed consolidated balance sheets and disclosed in the financial statements are categorized based on the inputs to the valuation techniques as follows:

Level 1. Quoted prices in active markets for identical instruments.

Level 2. Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.

Level 3. Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.

Assets and liabilities measured at fair value are classified according to the lowest level input that is significant to their valuation. A financial instrument that has a significant unobservable input along with significant observable inputs may still be classified as a Level 3 instrument.

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Commitments and Contingencies

6 Months Ended

Jun. 30, 2012

Commitments and Contingencies [Abstract]

Commitments and Contingencies

13. Commitments and Contingencies

We monitor our properties for the presence of hazardous or toxic substances. We are not currently aware of any environmental liability with respect to the properties that we believe would have a material effect on our financial condition, results of operations and cash flows. Further, we are not aware of any environmental liability or any unasserted claim or assessment with respect to an environmental liability that we believe would require additional disclosure or the recording of a loss contingency.

Our commitments and contingencies include the usual obligations of real estate owners and operators in the normal course of business. In the opinion of management, these matters are not expected to have a material impact on our condensed consolidated financial position, cash flows and results of operations. We are not presently subject to any material litigation nor, to our knowledge, is any material litigation threatened against the Company which if determined unfavorably to us would have a material adverse effect on our cash flows, financial condition or results of operations.

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Segment Reporting

6 Months Ended

Jun. 30, 2012

Segment Reporting [Abstract]

Segment Reporting

9. Segment Reporting

As of June 30, 2012, we operated in three reportable business segments: senior living operations, triple-net leased properties, and medical office building (“MOB”) properties. Our senior living operations segment primarily consists of investments in senior housing communities located in the United States for which we engage independent third-party managers. Our triple-net leased properties segment consists of investments in skilled nursing and hospital facilities in the United States. These facilities are leased to healthcare operating companies under long-term “triple-net” or “absolute-net” leases, which require the tenants to pay all property-related expenses. Our medical office building operations segment primarily consists of investing in medical office buildings and leasing those properties to healthcare providers under long-term leases, which may require tenants to pay property-related expenses.

We evaluate performance of the combined properties in each segment based on net operating income. Net operating income is defined as total revenue less property operating and maintenance expenses. There are no intersegment sales or transfers. We use net operating income to evaluate the operating performance of our real estate investments and to make decisions concerning the operation of the property. We believe that net operating income is useful to investors in understanding the value of income-producing real estate. Net income is the GAAP measure that is most directly comparable to net operating income; however, net operating income should not be considered as an alternative to net income as the primary indicator of operating performance as it excludes certain items such as depreciation and amortization, asset management fees and expenses, real estate acquisition costs, interest expense and corporate general and administrative expenses. Additionally, net operating income as we define it may not be comparable to net operating income as defined by other REITs or companies.

The following tables reconcile the segment activity to consolidated net income for the three months and six months ended June 30, 2012 and 2011:

	Three Months Ended June 30, 2012									Three Months Ended June 30, 2011
	Senior living operations		Triple-net leased properties		Medical office building		Consolidated			Senior living operations		Triple-net leased properties		Medical office building		Consolidated
Rental revenues	$	6,715,000	$	1,325,000	$	209,000	$	8,249,000		$	5,774,000	$	1,886,000	$	201,000	$	7,861,000
Resident services and fee income		2,311,000		—		—		2,311,000			2,020,000		—		—		2,020,000
Tenant reimbursements and other income		137,000		222,000		88,000		447,000			65,000		113,000		56,000		234,000
	$	9,163,000	$	1,547,000	$	297,000	$	11,007,000		$	7,859,000	$	1,999,000	$	257,000	$	10,115,000
Property operating and maintenance expenses		6,614,000		228,000		79,000		6,921,000			5,119,000		1,190,000		63,000		6,372,000
Net operating income	$	2,549,000	$	1,319,000	$	218,000	$	4,086,000		$	2,740,000	$	809,000	$	194,000	$	3,743,000
General and administrative expenses								370,000									1,292,000
Asset management fees and expenses								503,000									376,000
Real estate acquisition costs and contingent consideration								190,000									514,000
Depreciation and amortization								1,530,000									1,974,000
Interest income								(1,000	)								(3,000	)
Interest expense								1,597,000									1,403,000
Other expense								146,000									—
(Loss) income from unconsolidated entities								(442,000	)								99,000
Fair value adjustment for equity method investment								1,282,000									—
Net income (loss)							$	591,000								$	(1,714,000	)
Net income (loss) attributable to non controlling interests								50,000									(16,000	)
Net income (loss) attributable to common stockholders							$	541,000								$	(1,698,000	)
	Six Months Ended June 30, 2012									Six Months Ended June 30, 2011
	Senior living operations		Triple-net leased properties		Medical office building		Consolidated			Senior living operations		Triple-net leased properties		Medical office building		Consolidated
Rental revenues	$	13,540,000	$	2,134,000	$	420,000	$	16,094,000		$	11,974,000	$	2,695,000	$	402,000	$	15,071,000
Resident services and fee income		4,589,000		—		—		4,589,000			3,722,000		—		—		3,722,000
Tenant reimbursements and other income		279,000		371,000		159,000		809,000			175,000		227,000		111,000		513,000
	$	18,408,000	$	2,505,000	$	579,000	$	21,492,000		$	15,871,000	$	2,922,000	$	513,000	$	19,306,000
Property operating and maintenance expenses		12,918,000		377,000		152,000		13,447,000			10,564,000		1,304,000		133,000		12,001,000
Net operating income	$	5,490,000	$	2,128,000	$	427,000	$	8,045,000		$	5,307,000	$	1,618,000	$	380,000	$	7,305,000
General and administrative expenses								1,204,000									1,958,000
Asset management fees and expenses								984,000									807,000
Real estate acquisition costs and contingent consideration								206,000									1,431,000
Depreciation and amortization								2,963,000									3,712,000
Interest income								(1,000	)								(7,000	)
Interest expense								3,024,000									2,726,000
Other expense								152,000									—
Loss from unconsolidated entities								(376,000	)								(15,000	)
Fair value adjustment for equity method investment								1,282,000									—
Net income (loss)							$	419,000								$	(3,337,000	)
Net income (loss) attributable to the noncontrolling interests								127,000									(46,000	)
Net income (loss) attributable to common stockholders							$	292,000								$	(3,291,000	)

The following table reconciles the segment activity to consolidated financial position as of June 30, 2012 and December 31, 2011.

	June 30, 2012		December 31, 2011
Assets
Investment in real estate:
Senior living operations	$	91,053,000	$	92,975,000
Triple-net leased properties		44,028,000		26,366,000
Medical office building		8,329,000		8,486,000
Total reportable segments	$	143,410,000	$	127,827,000
Reconciliation to consolidated assets:
Cash and cash equivalents		31,958,000		27,972,000
Deferred financing costs, net		1,508,000		824,000
Investment in unconsolidated entities		3,629,000		3,387,000
Tenant and other receivables, net		2,159,000		1,366,000
Deferred costs and other assets		2,357,000		1,938,000
Restricted cash		3,424,000		3,806,000
Goodwill		6,510,000		5,965,000
Total assets	$	194,955,000	$	173,085,000

As of June 30, 2012 and December 31, 2011, goodwill had a balance of approximately $6.5 million and $6.0 million, respectively, all related to senior the living operations segment. The Company historically has not recorded any impairment charges for goodwill.

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Immaterial Corrections to Prior Period Financial Statements (Details 1) (USD $)	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011
Revenue:
Rental revenue	$ 8,249,000	$ 7,861,000	$ 16,094,000	$ 15,071,000
Resident services and fee income	2,311,000	2,020,000	4,589,000	3,722,000
Tenant reimbursements and other income	447,000	234,000	809,000	513,000
Total revenues	11,007,000	10,115,000	21,492,000	19,306,000
Expenses:
Property operating and maintenance	6,921,000	6,372,000	13,447,000	12,001,000
General and administrative expenses	370,000	1,292,000	1,204,000	1,958,000
Asset management fees and expenses	503,000	376,000	984,000	807,000
Real estate acquisition costs and contingent consideration	190,000	514,000	206,000	1,431,000
Depreciation and amortization	1,530,000	1,974,000	2,963,000	3,712,000
Total expenses	9,514,000	10,528,000	18,804,000	19,909,000
Income (loss) from operations	1,493,000	(413,000)	2,688,000	(603,000)
Other income (expense):
Interest income	1,000	3,000	1,000	7,000
Interest expense	(1,597,000)	(1,403,000)	(3,024,000)	(2,726,000)
Net (loss) income from unconsolidated entities	(442,000)	99,000	(376,000)	(15,000)
Fair value adjustment for equity method investment	1,282,000		1,282,000
Net income (loss)	591,000	(1,714,000)	419,000	(3,337,000)
Net income (loss) attributable to noncontroling interests	50,000	(16,000)	127,000	(46,000)
Net income (loss) attributable to common stockholders	541,000	(1,698,000)	292,000	(3,291,000)
Basic and diluted net income (loss) per common share attributable to common stockholders	$ 0.04	$ (0.13)	$ 0.02	$ (0.26)
As Previously Reported [Member]
Revenue:
Rental revenue		8,371,000		15,931,000
Resident services and fee income		2,020,000		3,722,000
Tenant reimbursements and other income		308,000		631,000
Total revenues		10,699,000		20,284,000
Expenses:
Property operating and maintenance		6,464,000		12,152,000
General and administrative expenses		1,297,000		1,961,000
Asset management fees and expenses		376,000		807,000
Real estate acquisition costs and contingent consideration		514,000		1,641,000
Depreciation and amortization		2,129,000		3,990,000
Total expenses		10,780,000		20,551,000
Income (loss) from operations		(81,000)		(267,000)
Other income (expense):
Interest income		3,000		7,000
Interest expense		1,604,000		3,080,000
Net loss		(1,682,000)		(3,340,000)
Net income (loss)				(3,340,000)
Net income (loss) attributable to noncontroling interests		16,000		(49,000)
Net income (loss) attributable to common stockholders		(1,698,000)		(3,291,000)
Basic and diluted net income (loss) per common share attributable to common stockholders		$ (0.13)		$ (0.26)
As Corrected [Member]
Revenue:
Rental revenue		7,861,000		15,071,000
Resident services and fee income		2,020,000		3,722,000
Tenant reimbursements and other income		234,000		513,000
Total revenues		10,115,000		19,306,000
Expenses:
Property operating and maintenance		6,372,000		12,001,000
General and administrative expenses		1,292,000		1,958,000
Asset management fees and expenses		376,000		807,000
Real estate acquisition costs and contingent consideration		514,000		1,431,000
Depreciation and amortization		1,974,000		3,712,000
Total expenses		10,528,000		19,909,000
Income (loss) from operations		(413,000)		(603,000)
Other income (expense):
Interest income		3,000		7,000
Interest expense		1,403,000		2,726,000
Net (loss) income from unconsolidated entities		99,000		(15,000)
Net loss		(1,714,000)		(3,337,000)
Net income (loss)				(3,337,000)
Net income (loss) attributable to noncontroling interests		(16,000)		(46,000)
Net income (loss) attributable to common stockholders		$ (1,698,000)		$ (3,291,000)
Basic and diluted net income (loss) per common share attributable to common stockholders		$ (0.13)		$ (0.26)

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Concentration of Risks

6 Months Ended

Jun. 30, 2012

Concentration of Risks [Abstract]

Concentration of Risks

7. Concentration of Risks

Financial instruments that potentially subject the Company to a concentration of credit risk are primarily cash investments; cash is generally invested in investment-grade short-term instruments. On July 21, 2010, President Obama signed into law the “Dodd-Frank Wall Street Reform and Consumer Protection Act” that includes provisions that made permanent the $250,000 limit for federal deposit insurance and increase the cash limit of Securities Investor Protection Corporation protection from $100,000 to $250,000, and provide unlimited federal deposit insurance until January 1, 2013 for non-interest bearing demand transaction accounts at all insured depository institutions. As of June 30, 2012, we had cash accounts in excess of Federal Deposit Insurance Corporation insured limits. We believe this risk is not significant.

Concentration of credit risks arise when a number of operators, tenants or obligors related to our investments are engaged in similar business activities, or activities in the same geographic region, or have similar economic features that would cause their ability to meet contractual obligations, including those to the Company, to be similarly affected by changes in economic conditions. We regularly monitor various segments of our portfolio to assess potential concentrations of risk. Management believes the current portfolio is reasonably diversified across healthcare related real estate and does not contain any other significant concentration of credit risks, except as disclosed herein.

Our senior living operations segment accounted for approximately 83.2% and 73.7% of total revenues for the three months ended June 30, 2012 and 2011, respectively and approximately 85.6% and 82.1% of total revenues for the six months ended June 30, 2012 and 2011. The following table provides information about our senior living operation segment concentration for the three and six months ended June 30, 2012:

	Three Months Ended						Six Months Ended
Operators	Percentage of Segment  Revenues			Percentage of Total  Revenues			Percentage of Segment  Revenues			Percentage of Total  Revenues
Good Neighbor Care		31.9	%		26.6	%		31.9	%		27.3	%
Royal Senior Care		19.1	%		15.9	%		19.0	%		16.3	%
Woodbine Senior Living		20.2	%		16.8	%		20.6	%		17.6	%
12 Oaks Senior Living		18.3	%		15.2	%		18.1	%		15.5	%
Provision Living		5.5	%		4.6	%		5.4	%		4.7	%
Legend Senior Living		5.0	%		4.1	%		5.0	%		4.2	%
		100.0	%		83.2	%		100.0	%		85.6	%

Our triple-net leased segment accounted for approximately 14.1% and 18.7% of total revenues for the three months ended June 30, 2012 and 2011, respectively and approximately 11.7% and 15.2% of total revenues for the six months ended June 30, 2012 and 2011, respectively. The following table provides information about our triple-net leased segment for the three and six months ended June 30, 2012:

	Three Months Ended						Six Months Ended
Tenant	Percentage of Segment  Revenues			Percentage of Total  Revenues			Percentage of Segment  Revenues			Percentage of Total  Revenues
Babcock PM Management		32.2	%		4.5	%		39.8	%		4.7	%
Global Rehab Hospitals		29.7	%		4.2	%		36.6	%		4.3	%
The Specialty Hospital		30.5	%		4.3	%		18.8	%		2.2	%
Floyd Healthcare Management		7.6	%		1.1	%		4.81	%		0.5	%
		100.0	%		14.1	%		100.0	%		11.7	%

Our medical office building segment accounted for approximately 2.7% and 2.4% of total revenues for the three months ended June 30, 2012 and 2011, respectively, and approximately 2.8% and 2.7% of total revenues for the six months ended June 30, 2012 and 2011, respectively. As of June 30, 2012, we owned 14 properties, geographically located in nine states. The following table provides information about our geographic risks by operating segment for the three and six months ended June 30, 2012:

	Three Months Ended						Six Months Ended
State	Percentage of Segment Revenues			Percentage of Total Revenues			Percentage of Segment Revenues			Percentage of Total Revenues
Senior living operations
South Carolina		19.0	%		15.9	%		19.1	%		16.3	%
Texas		18.3	%		15.2	%		18.1	%		15.5	%
Ohio		13.2	%		11.0	%		13.1	%		11.2	%
Pennsylvania		17.4	%		14.4	%		17.5	%		15.0	%
New Hampshire		10.9	%		9.1	%		11.1	%		9.5	%
Tennessee		10.7	%		8.9	%		10.7	%		9.2	%
Indiana		5.5	%		4.6	%		5.5	%		4.7	%
Florida		5.0	%		4.1	%		4.9	%		4.2	%
Triple-net leased properties
Texas		61.9	%		8.7	%		76.5	%		8.9	%
Georgia		38.1	%		5.4	%		23.5	%		2.7	%
Medical office building
Texas		100.0	%		2.7	%		100.0	%		2.8	%

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Income Taxes

6 Months Ended

Jun. 30, 2012

Income Taxes [Abstract]

Income Taxes

8. Income Taxes

For federal income tax purposes, we have elected to be taxed as a REIT, under Sections 856 through 860 of the Code beginning with our taxable year ended December 31, 2008, which imposes limitations related to operating assisted-living properties. As of June 30, 2012, we had acquired ten assisted-living facilities and formed ten wholly owned taxable REIT subsidiaries, or TRSs, which includes a Master TRS that consolidates our wholly owned TRSs.

Each TRS is a tax paying component for purposes of classifying deferred tax assets and liabilities. We record net deferred tax assets to the extent we believe these assets will more likely than not be realized. In making such determination, we consider all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax planning strategies and recent financial operations. In the event we were to determine that we would not be able to realize our deferred income tax assets in the future in excess of their net recorded amount, we would establish a valuation allowance which would reduce the provision for income taxes.

The TRS recognized a $0.1 million expense and benefit of $0.2 million for Federal and State income taxes in the three months ended June 30, 2012 and 2011, and of a $0.1 million expense and benefit of $0.2 million for Federal and State income taxes in the six months ended June 30, 2012 and 2011, respectively, which have been recorded in general and administrative expenses. Net deferred tax assets related to the TRS entities totaled approximately $1.3 million and $1.1 million at June 30, 2012 and December 31, 2011, respectively, related primarily to book and tax basis differences for straight-line rent and accrued liabilities. Realization of these deferred tax assets is dependent in part upon generating sufficient taxable income in future periods. These deferred tax assets are included in deferred costs and other assets in our condensed consolidated balance sheets. We have not recorded a valuation allowance against our deferred tax assets as of June 30, 2012 as we have determined the future taxable income from the operations of the TRS entities are sufficient to cover the additional future expenses resulting from these book tax differences.

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Notes Payable

6 Months Ended

Jun. 30, 2012

Notes Payable [Abstract]

Notes Payable

10. Notes Payable

Notes payable were approximately $111.4 million and $86.0 million as of June 30, 2012 and December 31, 2011, respectively. As of June 30, 2012, we had fixed and variable rate secured mortgage loans with effective interest rates ranging from 4.45% to 6.50% per annum and a weighted average effective interest rate of 5.52% per annum. As of June 30, 2012, we had $75.7 million of fixed rate debt, or approximately 68% of notes payable, at a weighted average interest rate of 5.37% per annum and $35.8 million of variable rate debt, or approximately 32% of notes payable, at a weighted average interest rate of 5.86% per annum. As of December 31, 2011, we had fixed and variable rate secured mortgage loans with effective interest rates ranging from 3.45% to 6.50% per annum and a weighted-average effective interest rate of 5.91% per annum. As of December 31, 2011, we had $32.7 million of fixed rate debt, or 38% of notes payable, at a weighted average interest rate of 6.01% per annum and $53.3 million of variable rate debt, or 62% of notes payable, at a weighted average interest rate of 5.85% per annum.

On June 11, 2012, we entered into MultiFamily Loan and Securities Agreements (the “Loans”) with KeyCorp Real Estate Capital Markets, Inc., originated under Fannie Mae’s Delegated Underwriting and Servicing Product Line, to refinance our Terrace at Mountain Creek, River’s Edge at Yardley, Forestview Manor, GreenTree at Westwood and Windsor Oaks of Bradenton properties. The Loans are at a fixed rate of 4.45% for a term of seven years. Proceeds from the Loans of $32.0 million exceeded the debt repaid and loan fees and expenses by approximately $11.5 million. The Loans are secured by first priority liens on the refinanced properties. In connection with the documentation and closing of the Loans, we paid fees and expenses totaling approximately $791,000. In addition, the Company recognized a loss on debt extinguishment of approximately $148,000, which is included in other income/expense in the accompanying condensed consolidated statements of operations.

We are required by the terms of the applicable loan documents to meet certain financial covenants, such as debt service coverage ratios, rent coverage ratios and reporting requirements. As of June 30, 2012, we were in compliance with all such covenants and requirements.

The following table details the notes payable by property as of June 30, 2012 and December 31, 2011.

Property Name	Payment Type	Interest Rate	Outstanding Principal Balance as of June 30, 2012(1)		Outstanding Principal Balance as of December 31, 2011(1)		Maturity Date
Carriage Court of Hilliard	Principal and interest at a 35-year amortization rate	5.40%—fixed	$	13,364,000	$	13,440,000	August 1, 2044
Caruth Haven Court	Principal and interest at a 30-year amortization rate	6.43%—fixed	$	9,736,000	$	9,793,000	December 16, 2019
Greentree (2)	Principal and interest at a 30-year amortization rate	4.45%—fixed	$	3,865,000		2,832,000	July 1, 2019
Forestview Manor (2)	Principal and interest at a 30-year amortization rate	4.45%—fixed	$	8,775,000		5,935,000	July 1, 2019
Global Rehab Inpatient Rehab Facility	Principal and interest at a 30-year amortization rate	6.25%—fixed for 3 years; thereafter the greater of 6.25% and 3yr LIBOR +3.25%	$	7,396,000	$	7,441,000	December 22, 2016
Hedgcoxe Health Plaza (4)	Interest only	30-day LIBOR +4.00% with a 2% LIBOR floor	$	5,060,000	$	5,060,000	July 31, 2012
Mesa Vista Inn Health Center	Principal and interest at a 20-year amortization rate	6.50%—fixed	$	7,033,000	$	7,136,000	January 5, 2015
Oakleaf Village Portfolio (3)	Principal and interest at a 30-year amortization rate	5.45% plus the greater of 1% or the 3 month LIBOR	$	17,538,000	$	17,644,000	April 30, 2015
River’s Edge of Yardley (2)	Principal and interest at a 30-year amortization rate	4.45%—fixed	$	6,500,000	$	2,500,000	July 1, 2019
Rome LTACH Project	Principal and interest at a 30-year amortization rate	4.5%—fixed	$	13,509,000		(5)	March 31, 2017

The Oaks Bradenton (2)	Principal and interest at a 30-year amortization rate.	4.45%—fixed	$	4,095,000	$	2,697,000	July 1, 2019
Terrace at Mountain Creek (2)	Principal and interest at a 30-year amortization rate	4.45%—fixed	$	8,775,000	$	5,700,000	July 1, 2019
Woodland Terrace at the Oaks	Months 1-22 interest only. Month 23 to maturity principal and interests at a 25-year amortization rate	3Mo LIBOR +3.75% with a floor of 5.75%	$	5,800,000	$	5,800,000	May 1, 2014
			$	111,446,000	$	85,978,000

(1) As of June 30, 2012 and December 31, 2011, all notes payable are secured by the underlying real estate.

(2) These loans were refinanced in June 2012 under the Multifamily Loan and Securities Agreement discussed above.

(3) The aggregate loan amount is composed of a restatement date balance of approximately $12.9 million outstanding with respect to a prior loan, and an additional amount of approximately $5.1 million disbursed on the closing date.

(4) In November 2010, we entered into an agreement with KeyBank National Association, an unaffiliated financial institution (“KeyBank”), to obtain a $25,000,000 revolving credit facility. The initial term of the credit facility was 24 months, maturing on November 18, 2012, and could be extended by six months subject to satisfaction of certain conditions, including payment of an extension fee. The actual amount of credit available under the credit facility was a function of certain loan to cost, loan to value and debt service coverage ratios contained in the credit facility. The amount outstanding under the credit facility was $5.1 million and $16.3 million at June 30, 2012 and December 31, 2011, respectively. Effective August 2011, the KeyBank agreement was amended to convert the credit facility to a term loan, revised certain loan covenants and changed the maturity date July 31, 2012, which can be extended to October 30, 2012 subject to satisfaction of certain conditions, including payment of an extension fee. On August 14, 2012, the Company repaid the Key Bank credit facility with the refinancing proceeds of a $5.6 million loan from KeyBank National Association.

(5) Not applicable as this entity was an unconsolidated joint venture at December 31, 2011.

Principal payments due on our notes payable for July 1, 2012 to December 31, 2012 and each of the subsequent years is as follows:

Year	Principal amount
July 1, 2012 to December 31, 2012	$	5,918,000
2013	$	1,726,000
2014	$	11,459,000
2015	$	24,724,000
2016	$	1,351,000
2017 and thereafter	$	66,268,000

Interest Expense and Deferred Financing Cost

For the three months ended June 30, 2012 and 2011, the Company incurred interest expense, including amortization of deferred financing costs of $1.6 million and $1.4 million, respectively. For the six months ended June 30, 2012 and 2011, the Company incurred interest expense, including amortization of deferred financing costs of $3.0 million and $2.7 million, respectively. As of June 30, 2012 and December 31, 2011, the Company’s net deferred financing costs were approximately $1.5 million and $0.8 million, respectively. All deferred financing costs are capitalized and amortized over the life of the respective loan agreement.

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Investment in Real Estate and Unconsolidated Entites (Details) (USD $)				6 Months Ended
	Apr. 30, 2012 Rome LTACH Project [Member]	Jun. 30, 2012 Littleton Specialty Rehabilitation Facility [Member]	Apr. 02, 2012 Physicians Centre MOB [Member]	Jun. 30, 2012 Highland Park, TX [Member] Caruth Haven Court [Member] sqft	Jun. 30, 2012 Bradenton, FL [Member] The Oaks Bradenton [Member] sqft	Jun. 30, 2012 Columbus, IN [Member] GreenTree at Westwood [Member] sqft	Jun. 30, 2012 San Antonio, TX [Member] Mesa Vista Inn Health Center [Member] sqft	Jun. 30, 2012 Rome, GA [Member] Rome LTACH Project [Member] sqft	Jun. 30, 2012 Lexington, SC [Member] Oakleaf Village at-Lexington [Member] sqft	Jun. 30, 2012 Greer, SC [Member] Oakleaf Village at-Greenville [Member] sqft	Jun. 30, 2012 Dallas, TX [Member] Global Rehab Inpatient Rehab Facility [Member] sqft	Jun. 30, 2012 Chattanooga, TN [Member] Terrace at Mountain Creek [Member] sqft	Jun. 30, 2012 Littleton, CO [Member] Littleton Specialty Rehabilitation Facility [Member] sqft	Jun. 30, 2012 Hilliard, OH [Member] Carriage Court of Hilliard [Member] sqft	Jun. 30, 2012 Plano, TX [Member] Hedgcoxe Health Plaza [Member] sqft	Jun. 30, 2012 Yardley, PA [Member] River's Edge of Yardley [Member] sqft	Jun. 30, 2012 Meredith, NH [Member] Forestview Manor [Member] sqft	Jun. 30, 2012 Allentown, PA [Member] Woodland Terrace at the Oaks [Member] sqft	Jun. 30, 2012 Bryan, TX [Member] Physicians Centre MOB [Member] sqft
Summary of current property portfolio
Date Purchased				Jan. 22, 2009	May 01, 2009	Dec. 30, 2009	Dec. 31, 2009	Jan. 12, 2010	Apr. 30, 2010	Apr. 30, 2010	Aug. 19, 2010	Sep. 03, 2010	Dec. 16, 2010	Dec. 22, 2010	Dec. 22, 2010	Dec. 22, 2010	Jan. 14, 2011	Apr. 14, 2011	Apr. 02, 2012
Gross Square Feet				74,647	18,172	50,249	55,525	52,944	67,000	65,000	40,828	109,643	26,808	69,184	32,109	26,146	34,270	50,400	114,583
Purchase Price	$ 5,200,000	$ 7,100,000	$ 2,500,000	$ 20,500,000	$ 4,500,000	$ 5,150,000	$ 13,000,000	$ 18,900,000	$ 14,512,000	$ 12,488,000	$ 14,800,000	$ 8,500,000	$ 1,600,000	$ 17,500,000	$ 9,094,000	$ 4,500,000	$ 10,750,000	$ 9,000,000
Debt				$ 9,736,000	$ 4,095,000	$ 3,865,000	$ 7,033,000	$ 13,509,000	$ 9,420,000	$ 8,118,000	$ 7,396,000	$ 8,775,000		$ 13,364,000	$ 5,060,000	$ 6,500,000	$ 8,775,000	$ 5,800,000
% Occupancy				97.00%	100.00%	99.00%	100.00%	100.00%	83.00%	70.00%	100.00%	89.00%	100.00%	91.00%	100.00%	98.00%	98.00%	74.00%	68.00%

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Stockholders' Equity (Details) (USD $)	3 Months Ended				6 Months Ended
	Jun. 30, 2012	Mar. 31, 2012	Jun. 30, 2011	Mar. 31, 2011	Jun. 30, 2012	Jun. 30, 2011
Summary of distributions declared
Cash	$ 799,000	$ 801,000	$ 2,436,000	$ 1,152,000	$ 1,902,000	$ 4,712,000
Reinvested				1,124,000
Total	$ 799,000	$ 801,000	$ 2,436,000	$ 2,276,000

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Subsequent Events

6 Months Ended

Jun. 30, 2012

Subsequent Events [Abstract]

Subsequent Events

15. Subsequent Events

On August 14, 2012, the Company repaid the KeyBank credit facility with the refinancing proceeds of a $5.6 million loan from KeyBank National Association. This loan has a ten year term with interest at 4.9% and payments of principal on a 30 year amortization rate.

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Segment Reporting (Tables)

6 Months Ended

Jun. 30, 2012

Segment Reporting [Abstract]

Reconciliation of segment activity to consolidated net income

The following tables reconcile the segment activity to consolidated net income for the three months and six months ended June 30, 2012 and 2011:

	Three Months Ended June 30, 2012									Three Months Ended June 30, 2011
	Senior living operations		Triple-net leased properties		Medical office building		Consolidated			Senior living operations		Triple-net leased properties		Medical office building		Consolidated
Rental revenues	$	6,715,000	$	1,325,000	$	209,000	$	8,249,000		$	5,774,000	$	1,886,000	$	201,000	$	7,861,000
Resident services and fee income		2,311,000		—		—		2,311,000			2,020,000		—		—		2,020,000
Tenant reimbursements and other income		137,000		222,000		88,000		447,000			65,000		113,000		56,000		234,000
	$	9,163,000	$	1,547,000	$	297,000	$	11,007,000		$	7,859,000	$	1,999,000	$	257,000	$	10,115,000
Property operating and maintenance expenses		6,614,000		228,000		79,000		6,921,000			5,119,000		1,190,000		63,000		6,372,000
Net operating income	$	2,549,000	$	1,319,000	$	218,000	$	4,086,000		$	2,740,000	$	809,000	$	194,000	$	3,743,000
General and administrative expenses								370,000									1,292,000
Asset management fees and expenses								503,000									376,000
Real estate acquisition costs and contingent consideration								190,000									514,000
Depreciation and amortization								1,530,000									1,974,000
Interest income								(1,000	)								(3,000	)
Interest expense								1,597,000									1,403,000
Other expense								146,000									—
(Loss) income from unconsolidated entities								(442,000	)								99,000
Fair value adjustment for equity method investment								1,282,000									—
Net income (loss)							$	591,000								$	(1,714,000	)
Net income (loss) attributable to non controlling interests								50,000									(16,000	)
Net income (loss) attributable to common stockholders							$	541,000								$	(1,698,000	)
	Six Months Ended June 30, 2012									Six Months Ended June 30, 2011
	Senior living operations		Triple-net leased properties		Medical office building		Consolidated			Senior living operations		Triple-net leased properties		Medical office building		Consolidated
Rental revenues	$	13,540,000	$	2,134,000	$	420,000	$	16,094,000		$	11,974,000	$	2,695,000	$	402,000	$	15,071,000
Resident services and fee income		4,589,000		—		—		4,589,000			3,722,000		—		—		3,722,000
Tenant reimbursements and other income		279,000		371,000		159,000		809,000			175,000		227,000		111,000		513,000
	$	18,408,000	$	2,505,000	$	579,000	$	21,492,000		$	15,871,000	$	2,922,000	$	513,000	$	19,306,000
Property operating and maintenance expenses		12,918,000		377,000		152,000		13,447,000			10,564,000		1,304,000		133,000		12,001,000
Net operating income	$	5,490,000	$	2,128,000	$	427,000	$	8,045,000		$	5,307,000	$	1,618,000	$	380,000	$	7,305,000
General and administrative expenses								1,204,000									1,958,000
Asset management fees and expenses								984,000									807,000
Real estate acquisition costs and contingent consideration								206,000									1,431,000
Depreciation and amortization								2,963,000									3,712,000
Interest income								(1,000	)								(7,000	)
Interest expense								3,024,000									2,726,000
Other expense								152,000									—
Loss from unconsolidated entities								(376,000	)								(15,000	)
Fair value adjustment for equity method investment								1,282,000									—
Net income (loss)							$	419,000								$	(3,337,000	)
Net income (loss) attributable to the noncontrolling interests								127,000									(46,000	)
Net income (loss) attributable to common stockholders							$	292,000								$	(3,291,000	)

Reconciliation of segment activity to consolidated financial position

The following table reconciles the segment activity to consolidated financial position as of June 30, 2012 and December 31, 2011.

	June 30, 2012		December 31, 2011
Assets
Investment in real estate:
Senior living operations	$	91,053,000	$	92,975,000
Triple-net leased properties		44,028,000		26,366,000
Medical office building		8,329,000		8,486,000
Total reportable segments	$	143,410,000	$	127,827,000
Reconciliation to consolidated assets:
Cash and cash equivalents		31,958,000		27,972,000
Deferred financing costs, net		1,508,000		824,000
Investment in unconsolidated entities		3,629,000		3,387,000
Tenant and other receivables, net		2,159,000		1,366,000
Deferred costs and other assets		2,357,000		1,938,000
Restricted cash		3,424,000		3,806,000
Goodwill		6,510,000		5,965,000
Total assets	$	194,955,000	$	173,085,000

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Notes Payable (Details 1) (USD $)	6 Months Ended
	Jun. 30, 2012
July 1, 2012 to December 31, 2012 [Member]
Principal payments due on notes payable
Principal amount	$ 5,918,000
2013 [Member]
Principal payments due on notes payable
Principal amount	1,726,000
2014 [Member]
Principal payments due on notes payable
Principal amount	11,459,000
2015 [Member]
Principal payments due on notes payable
Principal amount	24,724,000
2016 [Member]
Principal payments due on notes payable
Principal amount	1,351,000
2017 and thereafter [Member]
Principal payments due on notes payable
Principal amount	$ 66,268,000

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Concentration of Risks (Details 1) (Triple-net leased properties [Member])	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011
Summary of segment concentration
Percentage of Segment Revenues	100.00%		100.00%
Percentage of Total Revenues	14.10%	18.70%	11.70%	15.20%
Babcock PM Management [Member]
Summary of segment concentration
Percentage of Segment Revenues	32.20%		39.80%
Percentage of Total Revenues	4.50%		4.70%
Global Rehab Hospitals [Member]
Summary of segment concentration
Percentage of Segment Revenues	29.70%		36.60%
Percentage of Total Revenues	4.20%		4.30%
The Specialty Hospital [Member]
Summary of segment concentration
Percentage of Segment Revenues	30.50%		18.80%
Percentage of Total Revenues	4.30%		2.20%
Floyd Healthcare Management [Member]
Summary of segment concentration
Percentage of Segment Revenues	7.60%		4.81%
Percentage of Total Revenues	1.10%		0.50%

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Condensed Consolidated Statements of Equity (Unaudited) (USD $)	Total	Common Stock	Common Stock, Additional Paid-In Capital	Common Stock, Accumulated Deficit	Common Stock, Total Stockholders' Equity	Noncontrolling Interests
Balance-Value at Dec. 31, 2010	$ 81,691,000	$ 116,000	$ 91,588,000	$ (11,722,000)	$ 79,982,000	$ 1,709,000
Beginning balance-Number of Shares at Dec. 31, 2010		11,592,883
Issuance of common stock, shares		1,575,250
Issuance of common stock	15,644,000	16,000	15,628,000		15,644,000
Redeemed shares, shares		(167,308)
Redeemed shares	(1,604,000)	(2,000)	(1,602,000)		(1,604,000)
Offering costs	(1,890,000)		(1,890,000)		(1,890,000)
Distributions	(4,712,000)		(4,712,000)		(4,712,000)
Net (loss) income	(3,337,000)			(3,291,000)	(3,291,000)	(46,000)
Balance-Value at Jun. 30, 2011	85,792,000	130,000	99,012,000	(15,013,000)	84,129,000	1,663,000
Ending balance- Number of Shares at Jun. 30, 2011		13,000,825
Balance-Value at Dec. 31, 2011	80,859,000	129,000	96,542,000	(17,054,000)	79,617,000	1,242,000
Beginning balance-Number of Shares at Dec. 31, 2011		12,916,612
Redeemed shares, shares	(59,793)	(59,793)
Redeemed shares	(570,000)		(570,000)		(570,000)
Distributions	(1,902,000)		(1,600,000)		(1,600,000)	(302,000)
Purchase of noncontrolling interest
Net (loss) income	419,000			292,000	292,000	127,000
Balance-Value at Jun. 30, 2012	$ 78,806,000	$ 129,000	$ 94,372,000	$ (16,762,000)	$ 77,739,000	$ 1,067,000
Ending balance- Number of Shares at Jun. 30, 2012		12,856,819

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Investment in Real Estate and Unconsolidated Entites

6 Months Ended

Jun. 30, 2012

Investment in Real Estate [Abstract]

Investment in Real Estate

4. Investment in Real Estate and Unconsolidated Entities

The following table provides summary information regarding our current property portfolio.

Property	Location	Date Purchased	Gross Square Feet		Purchase Price		June 30, 2012 Debt		June 30, 2012 % Occupancy
Caruth Haven Court	Highland Park, TX	01/22/09		74,647	$	20,500,000	$	9,736,000		97	%
The Oaks Bradenton	Bradenton, FL	05/01/09		18,172	$	4,500,000	$	4,095,000		100	%
GreenTree at Westwood (1)	Columbus, IN	12/30/09		50,249	$	5,150,000	$	3,865,000		99	%
Mesa Vista Inn Health Center	San Antonio, TX	12/31/09		55,525	$	13,000,000	$	7,033,000		100	%
Rome LTACH Project	Rome, GA	01/12/10		52,944	$	18,900,000	$	13,509,000		100	%
Oakleaf Village Portfolio
Oakleaf Village at — Lexington	Lexington, SC	04/30/10		67,000	$	14,512,000	$	9,420,000		83	%
Oakleaf Village at — Greenville	Greer, SC	04/30/10		65,000	$	12,488,000	$	8,118,000		70	%
Global Rehab Inpatient Rehab Facility	Dallas, TX	08/19/10		40,828	$	14,800,000	$	7,396,000		100	%
Terrace at Mountain Creek (3)	Chattanooga, TN	09/03/10		109,643	$	8,500,000	$	8,775,000		89	%
Littleton Specialty Rehabilitation Facility	Littleton, CO	12/16/10		26,808		(4)		(4)		100	%
Carriage Court of Hilliard	Hilliard, OH	12/22/10		69,184	$	17,500,000	$	13,364,000		91	%
Hedgcoxe Health Plaza	Plano, TX	12/22/10		32,109	$	9,094,000	$	5,060,000		100	%
River’s Edge of Yardley	Yardley, PA	12/22/10		26,146	$	4,500,000	$	6,500,000		98	%
Forestview Manor	Meredith, NH	01/14/11		34,270	$	10,750,000	$	8,775,000		98	%
Woodland Terrace at the Oaks	Allentown, PA	04/14/11		50,400	$	9,000,000	$	5,800,000		74	%
Physicians Centre MOB	Bryan, TX	04/02/12		114,583		(5)		(5)		68	%

⁽¹⁾  The earn-out agreement associated with this acquisition was estimated to have a fair value of $1.0 million as of December 31, 2011 and an earn-out payment of approximately $1.0 million was made in January of 2012. For the three month periods ended June 30, 2012 and 2011, expense of $0 and approximately $0.2 million related to the increased earn-out liability associated with the earn-out payment have been included in the condensed consolidated statements of operations under real estate acquisition costs and contingent consideration. For the six month periods ended June 30, 2012 and 2011, expense of $0 and approximately $0.5 million related to the increased earn-out liability associated with the earn-out payment have been included in the condensed consolidated statements of operations under real estate acquisition costs and contingent consideration.

⁽²⁾ Rome LTACH, a development project, was completed in February 2011 and its first tenant moved in on February 1, 2011. As of June 30, 2012 the real estate assets costs for the property were $16.2 million. In April 2012, the Company acquired the interests of Cornerstone Private Equity Fund Operating Partnership, LP and the Cirrus Group affiliates in Rome LTH Partners, LP for a total payment of approximately $5.2 million. We previously held an equity method investment in this property. Therefore, as of April 2012, the Company owned 100% of Rome LTH Partners, LP and consolidated its existing equity method investment and the acquired interest at fair value in the amount of $18.9 million. Refer to Note 5 and 14 for more information on the acquisition and preliminary purchase price allocation.

⁽³⁾ Under the purchase and sale agreement executed in connection with the acquisition, a portion of the purchase price for the property was to be calculated and paid to the seller as earn-out payments based upon the net operating income, as defined, of the property during each of the three years following our acquisition of the property. The earn-out value of $1.0 million was paid during the second quarter of 2011.

⁽⁴⁾ Littleton Specialty Rehabilitation Facility, a development project and unconsolidated entity accounted for on the equity method, was completed in April 2012, and the single tenant began paying rent in July 2012, in accordance with the terms of the lease. Tenant operations will commence upon licensure of the facility. As of June 30, 2012, real estate asset costs for the property were approximately $7.1 million and we had invested a total of approximately $1.6 million in this project.

⁽⁵⁾  On April 2, 2012, through a wholly owned subsidiary, the Company invested $2.5 million to acquire an interest in the Physicians Centre MOB along with Caddis Partners and related affiliates. This investment is accounted for on the equity method and discussed further in Note 5.

As of June 30, 2012, cost and accumulated depreciation and amortization related to real estate assets and related lease intangibles were as follows:

	Land		Buildings and improvements			Furniture, fixtures and equipment			Intangible  lease assets
Cost	$	20,713,000	$	122,564,000		$	3,733,000		$	12,552,000
Accumulated depreciation and amortization		—		(6,915,000	)		(1,381,000	)		(7,856,000	)
Net	$	20,713,000	$	115,649,000		$	2,352,000		$	4,696,000

As of December 31, 2011, accumulated depreciation and amortization related to investments in real estate and related lease intangibles were as follows:

	Land		Buildings and improvements			Furniture, fixtures and equipment			Intangible  lease assets
Cost	$	20,713,000	$	105,340,000		$	3,578,000		$	10,649,000
Accumulated depreciation and amortization		—		(4,653,000	)		(1,016,000	)		(6,784,000	)
Net	$	20,713,000	$	100,687,000		$	2,562,000		$	3,865,000

Depreciation expense associated with buildings and improvements, site improvements and furniture and fixtures for the three months ended June 30, 2012 and 2011 was approximately $1.1 million and $0.9 million, respectively. Depreciation expense associated with building and improvements, site improvements and furniture and fixtures for the six months ended June 30, 2012 and 2011 was $2.0 million and $1.7 million, respectively.

Amortization associated with intangible assets for the three months ended June 30, 2012 and 2011 was $0.4 million and $1.1 million, respectively. Amortization associated with intangible assets for the six months ended June 30, 2012 and 2011 was $1.0 million and $2.0 million, respectively. Estimated amortization for July 1, 2012 through December 31, 2012 and each of the subsequent years is as follows:

	Intangible assets
July 2012 — December 2012	$	322,000
2013	$	355,000
2014	$	355,000
2015	$	355,000
2016	$	355,000
2017	$	354,000
2018 and thereafter	$	2,600,000

The estimated useful lives for intangible assets range from approximately one to twenty years. As of June 30, 2012, the weighted-average amortization period for intangible assets was 13 years.

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Subsequent Events (Details) (USD $) In Millions, unless otherwise specified	1 Months Ended
	Aug. 14, 2012
Subsequents Events (Textual) [Abstract]
Refinancing proceeds of keybank credit facility	$ 5.6
Period of Term loan	10 years
Interest rate of loan	4.90%
Term loan principal payment period	30 years

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Notes Payable (Tables)

6 Months Ended

Jun. 30, 2012

Notes Payable [Abstract]

Summary of covenants and requirements outstanding

The following table details the notes payable by property as of June 30, 2012 and December 31, 2011.

Property Name	Payment Type	Interest Rate	Outstanding Principal Balance as of June 30, 2012(1)		Outstanding Principal Balance as of December 31, 2011(1)		Maturity Date
Carriage Court of Hilliard	Principal and interest at a 35-year amortization rate	5.40%—fixed	$	13,364,000	$	13,440,000	August 1, 2044
Caruth Haven Court	Principal and interest at a 30-year amortization rate	6.43%—fixed	$	9,736,000	$	9,793,000	December 16, 2019
Greentree (2)	Principal and interest at a 30-year amortization rate	4.45%—fixed	$	3,865,000		2,832,000	July 1, 2019
Forestview Manor (2)	Principal and interest at a 30-year amortization rate	4.45%—fixed	$	8,775,000		5,935,000	July 1, 2019
Global Rehab Inpatient Rehab Facility	Principal and interest at a 30-year amortization rate	6.25%—fixed for 3 years; thereafter the greater of 6.25% and 3yr LIBOR +3.25%	$	7,396,000	$	7,441,000	December 22, 2016
Hedgcoxe Health Plaza (4)	Interest only	30-day LIBOR +4.00% with a 2% LIBOR floor	$	5,060,000	$	5,060,000	July 31, 2012
Mesa Vista Inn Health Center	Principal and interest at a 20-year amortization rate	6.50%—fixed	$	7,033,000	$	7,136,000	January 5, 2015
Oakleaf Village Portfolio (3)	Principal and interest at a 30-year amortization rate	5.45% plus the greater of 1% or the 3 month LIBOR	$	17,538,000	$	17,644,000	April 30, 2015
River’s Edge of Yardley (2)	Principal and interest at a 30-year amortization rate	4.45%—fixed	$	6,500,000	$	2,500,000	July 1, 2019
Rome LTACH Project	Principal and interest at a 30-year amortization rate	4.5%—fixed	$	13,509,000		(5)	March 31, 2017

The Oaks Bradenton (2)	Principal and interest at a 30-year amortization rate.	4.45%—fixed	$	4,095,000	$	2,697,000	July 1, 2019
Terrace at Mountain Creek (2)	Principal and interest at a 30-year amortization rate	4.45%—fixed	$	8,775,000	$	5,700,000	July 1, 2019
Woodland Terrace at the Oaks	Months 1-22 interest only. Month 23 to maturity principal and interests at a 25-year amortization rate	3Mo LIBOR +3.75% with a floor of 5.75%	$	5,800,000	$	5,800,000	May 1, 2014
			$	111,446,000	$	85,978,000

(1) As of June 30, 2012 and December 31, 2011, all notes payable are secured by the underlying real estate.

(2) These loans were refinanced in June 2012 under the Multifamily Loan and Securities Agreement discussed above.

(3) The aggregate loan amount is composed of a restatement date balance of approximately $12.9 million outstanding with respect to a prior loan, and an additional amount of approximately $5.1 million disbursed on the closing date.

(4) In November 2010, we entered into an agreement with KeyBank National Association, an unaffiliated financial institution (“KeyBank”), to obtain a $25,000,000 revolving credit facility. The initial term of the credit facility was 24 months, maturing on November 18, 2012, and could be extended by six months subject to satisfaction of certain conditions, including payment of an extension fee. The actual amount of credit available under the credit facility was a function of certain loan to cost, loan to value and debt service coverage ratios contained in the credit facility. The amount outstanding under the credit facility was $5.1 million and $16.3 million at June 30, 2012 and December 31, 2011, respectively. Effective August 2011, the KeyBank agreement was amended to convert the credit facility to a term loan, revised certain loan covenants and changed the maturity date July 31, 2012, which can be extended to October 30, 2012 subject to satisfaction of certain conditions, including payment of an extension fee. On August 14, 2012, the Company repaid the Key Bank credit facility with the refinancing proceeds of a $5.6 million loan from KeyBank National Association.

Principal payments due on notes payable

Principal payments due on our notes payable for July 1, 2012 to December 31, 2012 and each of the subsequent years is as follows:

Year	Principal amount
July 1, 2012 to December 31, 2012	$	5,918,000
2013	$	1,726,000
2014	$	11,459,000
2015	$	24,724,000
2016	$	1,351,000
2017 and thereafter	$	66,268,000

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Investments in Consolidated Joint Ventures (Details) (USD $)	3 Months Ended		6 Months Ended			3 Months Ended		6 Months Ended		3 Months Ended		6 Months Ended				3 Months Ended	6 Months Ended		12 Months Ended			3 Months Ended		6 Months Ended		12 Months Ended	3 Months Ended	6 Months Ended						6 Months Ended			6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011	Dec. 31, 2011	Jun. 30, 2012 Triple-net leased properties [Member]	Jun. 30, 2011 Triple-net leased properties [Member]	Jun. 30, 2012 Triple-net leased properties [Member]	Jun. 30, 2011 Triple-net leased properties [Member]	Jun. 30, 2012 Medical office building [Member]	Jun. 30, 2011 Medical office building [Member]	Jun. 30, 2012 Medical office building [Member]	Jun. 30, 2011 Medical office building [Member]	Jun. 30, 2012 Oakleaf Joint Venture [Member]	Apr. 30, 2010 Oakleaf Joint Venture [Member]	Jun. 30, 2011 Rome LTACH Project [Member]	Jun. 30, 2012 Rome LTACH Project [Member]	Jun. 30, 2011 Rome LTACH Project [Member]	Dec. 31, 2011 Rome LTACH Project [Member]	Apr. 12, 2012 Rome LTACH Project [Member]	Mar. 31, 2011 Rome LTACH Project [Member]	Jun. 30, 2012 Littleton Specialty Rehabilitation Facility [Member]	Jun. 30, 2011 Littleton Specialty Rehabilitation Facility [Member]	Jun. 30, 2012 Littleton Specialty Rehabilitation Facility [Member]	Jun. 30, 2011 Littleton Specialty Rehabilitation Facility [Member]	Dec. 31, 2011 Littleton Specialty Rehabilitation Facility [Member]	Jun. 30, 2012 Physicans Centre MOB [Member]	Jun. 30, 2012 Physicans Centre MOB [Member]	Jan. 12, 2010 Free-standing medical facility [Member] Rome LTACH Project [Member]	Dec. 16, 2010 Littleton, CO [Member] Littleton Specialty Rehabilitation Facility [Member]	Jun. 30, 2012 Bryan MOB Partners, L.P [Member] Physicans Centre MOB [Member]	Jun. 30, 2012 Physician partners [Member] Physicans Centre MOB [Member]	Jun. 30, 2012 Caddis Partners [Member] Physicans Centre MOB [Member]	Jun. 30, 2012 Cornerstone Private Equity Fund Operating Partnership, LP [Member] Rome LTACH Project [Member]	Apr. 30, 2012 Cornerstone Private Equity Fund Operating Partnership, LP [Member] Rome LTACH Project [Member]	Apr. 06, 2012 Cornerstone Private Equity Fund Operating Partnership, LP [Member] Rome LTACH Project [Member]	Jun. 30, 2012 Three affiliates of The Cirrus Group [Member] Rome LTACH Project [Member]	Jun. 30, 2012 Three affiliates of The Cirrus Group [Member] Littleton Specialty Rehabilitation Facility [Member]	Jun. 30, 2012 Fourth affiliate of Cirrus Group [Member] Rome LTACH Project [Member]	Jun. 30, 2012 Fourth affiliate of Cirrus Group [Member] Littleton Specialty Rehabilitation Facility [Member]	Apr. 12, 2012 Cirrus Group [Member] Rome LTACH Project [Member]
Investments and Joint Ventures (Textual) [Abstract]
Investments in Joint Ventures															$ 21,600,000		$ 2,700,000					$ 1,600,000		$ 1,600,000					$ 16,300,000	$ 7,300,000				$ 500,000	$ 5,200,000	$ 1,100,000	$ 300,000				$ 4,100,000
Percentage limited partnership interest																	100.00%		75.00%					90.00%		90.00%								15.00%			9.50%	9.50%	0.50%	0.50%
Payments under promote obligation																					3,000,000
Buildings and improvements	115,649,000		115,649,000		100,687,000																200,000
Total net assets														25,400,000			18,900,000		16,500,000			7,300,000		7,300,000		6,000,000	10,300,000	10,300,000
Real estate assets														23,800,000			18,000,000		15,600,000			7,000,000		7,000,000		5,800,000	9,600,000	9,600,000
Total liabilities														18,100,000			13,600,000		14,100,000			5,600,000		5,600,000		4,200,000	7,300,000	7,300,000
Secured mortgage debt														17,500,000			13,500,000		10,900,000			5,400,000		5,400,000		3,200,000	7,200,000	7,200,000
Equity raised for acquisition of interests																	2,600,000
Excess refinancing proceeds																	2,600,000
Contingent liability, low																								300,000
Contingent liability, high																								1,200,000
Contribution by the Company to acquire limited partnership interest																															2,500,000	625,000	350,000
Percentage of limited partnership interest acquired by the company	100.00%		100.00%		75.00%										80.00%					100.00%											71.90%	18.00%	10.10%
Percentage of total revenues						14.10%	18.70%	11.70%	15.20%	2.70%	2.40%	2.80%	2.70%
Revenues	11,007,000	10,115,000	21,492,000	19,306,000		1,547,000	1,999,000	2,505,000	2,922,000	297,000	257,000	579,000	513,000			600,000		1,000,000
Net Income or Loss	541,000	(1,698,000)	292,000	(3,291,000)												100,000		100,000				100,000	0	100,000	0		300,000	300,000
Gain on the fair value adjustment																	$ 1,300,000

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Business Combinations

6 Months Ended

Jun. 30, 2012

Business Combinations [Abstract]

Business Combinations

14. Business Combinations

On January 14, 2011, through a wholly-owned subsidiary, we purchased an assisted-living property, Forestview Manor, from 153 Parade Road, LLC a non-related party, for a purchase price of approximately $10.8 million. The acquisition was funded with our revolving credit facility from KeyBank National Association and with proceeds from our initial public offering.

On April 14, 2011, through a wholly-owned subsidiary, we purchased an assisted-living property, Sunrise of Allentown, from an affiliate of Sunrise Senior Living, Inc., for $9.0 million. The property has been rebranded as Woodland Terrace at the Oaks at the Oaks Senior Living. The acquisition of Woodland Terrace at the Oaks was funded with proceeds from our public offerings and a mortgage loan from an unaffiliated lender, post-closing.

On January 12, 2010, we funded an investment in a joint venture with affiliates of The Cirrus Group, an unaffiliated entity, to develop a $16.3 million free-standing medical facility on the campus of the Floyd Medical Center in Rome, Georgia. We contributed approximately $2.7 million of capital to acquire a 75% limited partnership interest in Rome LTH Partners, LP (“Rome LTH”). Cornerstone Private Equity Fund Operating Partnership, LP, an affiliate of our Prior Advisor, contributed approximately $0.5 million of capital to acquire a 15% limited partnership interest in Rome LTH. Three affiliates of The Cirrus Group contributed an aggregate of approximately $0.3 million to acquire an aggregate 9.5% limited partnership interest in Rome LTH. A fourth affiliate of the Cirrus Group acted as the general partner and held the remaining 0.5% in Rome LTH. In April 2012, we acquired the interest of Cornerstone Private Equity Fund Operating Partnership, LP and the Cirrus Group affiliates in Rome LTH for a total payment of approximately $5.2 million. As of June 30, 2012 and December 31, 2011, we owned a 100% and 75% limited partnership interest in Rome LTH. We began consolidating Rome LTH when we obtained control of this venture in April 2012.

As of June 30, 2012, the Rome LTACH Project purchase price allocation to the fair value of assets acquired and liabilities assumed is not yet complete. Accounting and valuation activity that could impact the opening balance estimates shown below is expected to be complete by the end of the third quarter 2012.

The following summary provides the allocation of the acquired assets and liabilities as of the acquisition date. We have accounted for the acquisitions as business combinations under U.S. GAAP. Under business combination accounting, the assets and liabilities of the acquired property were recorded as of the acquisition date, at their respective fair values, and consolidated in our financial statements. The detail of the purchase price of the acquired property is set forth below:

	Forestview Manor		Sunrise of Allentown		Rome LTACH Project
Land	$	1,320,000	$	1,000,000	$	—
Buildings & improvements		6,803,000		6,395,000		16,300,000
Site improvements		1,040,000		350,000		—
Furniture & fixtures		350,000		220,000		—
Intangible assets		960,000		590,000		2,018,000
Goodwill		277,000		445,000		545,000
Real estate acquisition	$	10,750,000		9,000,000		18,863,000
Acquisition expenses	$	160,000	$	142,000	$	182,000

The following unaudited pro forma information for the three and six months ended June 30, 2012 and 2011 have been prepared to reflect the incremental effect of the Forestview Manor and Sunrise of Allentown acquisitions as if such acquisitions had occurred on January 1, 2011. For the three and six months ended June 30, 2011, acquisition-related costs of $0.1 million and $0.3 million, respectively, were excluded from the pro forma net loss.

	Three Months Ended June 30, 2012			Three Months Ended June 30, 2011
Revenues	$	11,453,000		$	10,810,000
Net loss	$	(393,000	)	$	(1,618,000	)
Basic and diluted net loss per common share attributable to common stockholders	$	(0.03	)	$	(0.12	)

	Six Months Ended June 30, 2012			Six Months Ended June 30, 2011
Revenues	$	22,557,000		$	21,261,000
Net loss	$	(640,000	)	$	(3,471,000	)
Basic and diluted net loss per common share attributable to common stockholders	$	(0.05	)	$	(0.28	)

The Company recorded revenues of $1.0 million and $1.8 million for the three and six months ended June 30, 2011, respectively, and net loss of $0.1 million and $0.3 million for the three and six months ended June 30, 2011, respectively, for Forestview Manor.

The Company recorded revenues of $0.6 million for the three and six months ended June 30, 2011 and net loss of $0.3 million for the three and six months ended June 30, 2011, respectively, for Sunrise of Allentown.

The Company recorded revenues of $0.6 for the six months ended June 30, 2012 and net loss of $0.1 million for the six months ended June 30, 2012, respectively, for the Rome LTACH Project. Prior to April of 2012, the Rome LTACH Project was being accounted for under the equity method.