NOTE 11. DISCONTINUED OPERATIONS

As described in Note 2, the planned sale of the Fundamental facilities meets the accounting criteria as being held for sale and we have reclassified the results of operations of these facilities as discontinued operations for all periods presented in our Condensed Consolidated Statements of Income. Our lease revenue from the facilities was $1,211,000 and $1,188,000 for the three months ended September 30, 2011 and 2010, respectively, and $3,610,000 and $3,604,000 for the nine months ended September 30, 2011 and 2010, respectively.

In June 2010, we sold two skilled nursing facilities in Texas to the current lessee Legend Healthcare and affiliates ("Legend"). We have reclassified the results of operations of these facilities as discontinued operations for all periods presented in our Condensed Consolidated Statements of Income. Our lease revenue from the facilities was $-0- and $107,000 for the nine months ended September 30, 2011 and 2010, respectively.

As described in Note 2, in December 2010, we agreed to the terms of sale with the current tenant of two medical office buildings. The sale of these facilities met the accounting criteria as being held for sale. We have reclassified the results of operations of these facilities as discontinued operations for all periods presented in our Condensed Consolidated Statements of Income. Our lease revenue from the facilities was $-0- and $146,000 for the three months ended September 30, 2011 and 2010, respectively, and $41,000 and $438,000 for the nine months ended September 30, 2011 and 2010, respectively.

As described in Note 2, in August 2011, we completed the sale of a 60-unit assisted living facility located in Daytona Beach, Florida to the current tenant. We have reclassified the results of operations of these facilities as discontinued operations for all periods presented in our Condensed Consolidated Statements of Income. Our lease revenue from the facilities was $30,000 and $91,000 for the three months ended September 30, 2011 and 2010, respectively, and $201,000 and $273,000 for the nine months ended September 30, 2011 and 2010, respectively.

Income from discontinued operations, excluding gains on sale of real estate, is summarized below: (in thousands):


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2011		2010		2011		2010
Revenues		1,241	$	1,425	$	3,852	$	4,422
Expenses:
Depreciation		6		54		39		230
General and administrative		-		-		-		(14)
Income from operations - discontinued		1,235	$	1,371	$	3,813	$	4,206