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Other Assets

6 Months Ended

Jun. 30, 2012

(10) Other Assets

The Company’s other assets consisted of the following (in thousands):

	June 30,		December 31,
	2012		2011
Straight-line rent assets, net of allowance of $34,822 and $34,457, respectively	$	287,590	$	266,620
Marketable debt securities(1)	214,860		—
Leasing costs, net	93,524		92,288
Deferred financing costs, net	38,139		35,649
Goodwill	50,346		50,346
Marketable equity securities	17,396		17,053
Other(2)	33,137		23,502
Total other assets	$	734,992	$	485,458

(1) Represents £136.8 million translated into U.S. dollars as of June 30, 2012.

(2) Includes a $5.4 million allowance for losses related to accrued interest receivable on the Delphis loan, which accrued interest is included in other assets. At both June 30, 2012 and December 31, 2011, the carrying value of interest accrued related to the Delphis loan was zero. See Note 7 for additional information about the Delphis loan and the related impairment.

On June 28, 2012, the Company purchased senior unsecured notes with an aggregate par value of £138.5 million at a discount for £136.8 million ($214.9 million). The notes are issued by Elli Investments Limited, a subsidiary of Terra Firma, a European private equity firm, as part of its financing for the acquisition of Four Seasons Health Care, an elderly and specialist care provider in the United Kingdom. The notes mature in June 2020 and are non-callable until June 2016. The notes bear interest on their par value at a fixed rate of 12.25% per annum, with an original discount resulting in a yield to maturity of 12.5%. This investment is match funded by an equivalent GBP denominated unsecured term loan that is discussed in Note 11. These marketable debt securities are classified as held-to-maturity and had a carrying value of $214.9 million at June 30, 2012.

The marketable equity securities are classified as available-for-sale and had a fair value and adjusted cost basis of $17.4 million and $17.1 million, respectively, at June 30, 2012. At December 31, 2011, the fair value and adjusted cost basis of the marketable equity securities were both $17.1 million.