NOTE 5. INVESTMENTS IN MARKETABLE SECURITIES

Our investments in marketable securities include available-for-sale securities and are reported at fair value. Unrealized gains and losses on available-for-sale securities are recorded in stockholders' equity. Realized gains and losses from securities sales are determined based upon specific identification of the securities.

During the six months ended June 30, 2011 and 2010, we recognized $519,000 and $627,000, respectively, of dividend and interest income from our marketable securities and have included these amounts in non-operating income in the Condensed Consolidated Statements of Income.

During the six months ended June 30, 2011, we sold our 96,330 shares of National HealthCare Corporation's convertible preferred stock in addition to the sale of 381,000 common shares of LTC and recognized gains of $8,655,000 and $8,809,000 for the three and six month periods ending June 30, 2011, respectively.


Marketable securities consist of the following (in thousands):

		June 30, 2011				December 31, 2010
			Amortized		Fair		Amortized		Fair
			Cost		Value		Cost		Value
	Common and preferred stock of other REITs	$	3,093	$	10,372	$	5,831	$	21,156
	NHC convertible preferred stock		-		-		1,315		1,320
		$	3,093	$	10,372	$	7,146	$	22,476

Gross unrealized gains related to available-for-sale securities were $7,279,000 at June 30, 2011 and $15,330,000 at December 31, 2010.