Discontinued Operations

3 Months Ended

Mar. 31, 2013

Discontinued Operations [Abstract]

Discontinued Operations

DISCONTINUED OPERATIONS

We have reclassified, for all periods presented, the operations of facilities meeting the accounting criteria as either being sold or held for sale as discontinued operations.

In December 2012, our tenant Sunrise Senior Living exercised its option to purchase our assisted living facility in Edison, NJ. Our lease revenue from the facility was $343,000 for the quarter ended March 31, 2012.

In December 2012, we entered into a letter of agreement with NHC to sell six skilled nursing facilities for $21,000,000 on December 31, 2013. Our lease revenue from the facilities was $915,000 and $891,000 for the quarters ended March 31, 2013 and 2012, respectively.

Income from discontinued operations is summarized below (in thousands):

	Three Months Ended
	March 31,
	2013		2012
Revenues:
Rental income	$	915	$	1,234
Expenses:
Depreciation	—		101
Total discontinued operations	$	915	$	1,133

Reclassification

In September 2012, we canceled our agreement to sell five skilled nursing facilities in Texas to our current tenant, Fundamental, because of several factors, including obstacles Fundamental faced in securing HUD financing for the entire group of properties. Fundamental agreed to extend the lease term for an additional three years ending February 29, 2016.

As a result of this cancellation, this portfolio no longer meets the accounting criteria as discontinued operations and we have reclassified our lease revenue of $1,223,000 for the quarter ended March 31, 2012, into continuing operations in our Condensed Consolidated Statements of Income.