SCHEDULE III REAL ESTATE AND ACCUMULATED DEPRECIATION

12 Months Ended

Dec. 31, 2011

SCHEDULE III REAL ESTATE AND ACCUMULATED DEPRECIATION

SCHEDULE III REAL ESTATE AND ACCUMULATED DEPRECIATION

SCHEDULE III

REAL ESTATE AND ACCUMULATED DEPRECIATION

(in thousands)

										Gross amount at which carried at December 31, 2011
				Initial cost to company				Costs capitalized subsequent to acquisition
	Encumbrances			Land		Building and improvements				Land		Building and improvements		Total(2)		Accum deprec.		Construction/ renovation date		Acquisition date
Skilled Nursing Properties:
134 Alamogordo, NM		—			210		2,590		3		210		2,593		2,803		687		1985		2001
218 Albuquerque, NM		—			1,696		3,891		530		1,696		4,421		6,117		1,008		2008		2005
219 Albuquerque, NM		—			1,950		8,910		207		1,950		9,117		11,067		2,111		1982		2005
220 Albuquerque, NM		—			2,463		7,647		9		2,463		7,656		10,119		1,783		1970		2005
042 Altoona, IA		—			105		2,309		444		105		2,753		2,858		1,422		1973		1996
214 Aransas Pass, TX		—			154		1,276		589		154		1,865		2,019		442		2008		2004
247 Arlington, TX		—			1,022		13,636		—		1,022		13,636		14,658		409		2007		2011
171 Atlanta, GA		—			175		1,282		3		175		1,285		1,460		587		1968		1999
040 Atmore, AL		—			131		2,877		196		131		3,073		3,204		1,427		1974		1996
221 Beaumont, TX		—			370		1,141		93		370		1,234		1,604		329		1950		2005
213 Beeville, TX		—			186		1,197		70		186		1,267		1,453		265		1974		2004
215 Benbrook, TX		—			503		2,121		102		503		2,223		2,726		600		1976		2005
189 Canyon, TX(3)		—			196		506		211		196		717		913		384		1986		2000
043 Carroll, IA		—			47		1,033		213		47		1,246		1,293		642		1969		1996
177 Chesapeake, VA		—			388		3,469		1,097		388		4,566		4,954		2,309		2007		1995
125 Clovis, NM		—			561		5,539		307		561		5,846		6,407		1,597		2006		2001
129 Clovis, NM		—			598		5,902		59		598		5,961		6,559		1,658		1995		2001
253 Colton, CA		—			2,342		15,158		—		2,342		15,158		17,500		71		1990		2011
211 Commerce City, CO		—			236		3,217		167		236		3,384		3,620		961		1964		2004
212 Commerce City, CO		—			161		2,160		95		161		2,255		2,416		625		1967		2004
246 Crowley, TX		—			2,137		14,366		—		2,137		14,366		16,503		342		2007		2011
235 Daleville, VA		—			279		8,382		—		279		8,382		8,661		480		2005		2010
217 Del Norte, CO		—			103		930		336		103		1,266		1,369		290		2006		2005
196 Dresden, TN		—			31		1,529		123		31		1,652		1,683		581		2002		2000
185 Gardner, KS		—			896		4,478		4,150		896		8,628		9,524		2,188		2011		1999
248 Granbury, TX		—			878		6,708		—		878		6,708		7,586		359		2008		2011
044 Granger, IA		—			62		1,356		221		62		1,577		1,639		767		1979		1996
205 Grapevine, TX		—			431		1,449		188		431		1,637		2,068		676		1974		2002
172 Griffin, GA		—			500		2,900		—		500		2,900		3,400		1,182		1969		1999
250 Hewitt, TX		—			1,780		8,220		—		1,780		8,220		10,000		98		2008		2011
054 Houston, TX		—			202		4,458		1,426		202		5,884		6,086		2,863		2007		1996
051 Houston, TX		—			365		3,769		1,598		365		5,367		5,732		2,596		1968		1996
055 Houston, TX		—			202		4,458		1,359		202		5,817		6,019		2,770		2008		1996
208 Jacksonville, FL		—			486		1,981		30		486		2,011		2,497		676		1987		2002
045 Jefferson, IA		—			86		1,883		296		86		2,179		2,265		1,042		1972		1996
216 Marion, OH		—			119		1,156		1,142		119		2,298		2,417		554		2007		2005
222 Marion, OH		—			48		2,466		—		48		2,466		2,514		507		1997		2006
227 Marion, OH		—			210		804		—		210		804		1,014		804		1959		2008
053 Mesa, AZ		—			305		6,909		1,876		305		8,785		9,090		3,919		1996		1996
226 Mesa, AZ		—			1,095		2,330		—		1,095		2,330		3,425		476		1979		2006
050 Midland, TX		—			33		2,285		26		33		2,311		2,344		1,133		1973		1996
242 Mission, TX		—			1,111		16,602		—		1,111		16,602		17,713		448		2004		2010
041 Montgomery, AL		—			242		5,327		115		242		5,442		5,684		2,592		1974		1996
115 Nacogdoches, TX		—			100		1,738		168		100		1,906		2,006		862		1973		1997
233 Nacogdoches, TX		—			394		7,456		168		394		7,624		8,018		463		1991		2010
249 Nacogdoches, TX		—			1,084		11,012		—		1,084		11,012		12,096		389		2007		2011
046 Norwalk, IA		—			47		1,033		239		47		1,272		1,319		627		1975		1996
176 Olathe, KS		—			520		1,872		313		520		2,185		2,705		938		1968		1999
224 Orrville, OH		—			107		1,946		108		107		2,054		2,161		469		1956		2006
251 Pasadena, TX		—			1,155		14,345		—		1,155		14,345		15,500		94		2005		2011
210 Phoenix, AZ		—			334		3,383		456		334		3,839		4,173		1,211		1982		2004
193 Phoenix, AZ		—			300		9,703		92		300		9,795		10,095		3,838		1985		2000
047 Polk City, IA		—			63		1,376		153		63		1,529		1,592		758		1976		1996
094 Portland, OR		—			100		1,925		2,652		100		4,577		4,677		1,703		2007		1997
124 Richland Hills, TX		—			144		1,656		427		144		2,083		2,227		818		1976		2001
197 Ripley, TN		—			20		985		387		20		1,372		1,392		481		2007		2000
133 Roswell, NM		—			568		5,232		3		568		5,235		5,803		1,387		1975		2001
070 Rusk, TX		—			34		2,399		448		34		2,847		2,881		1,650		1969		1994
081 Sacramento, CA		—			220		2,929		—		220		2,929		3,149		1,387		1968		1997
085 Salina, KS(3)		—			100		1,153		628		100		1,781		1,881		885		1985		1997
243 Stephenville TX		—			670		10,117		—		670		10,117		10,787		569		2009		2010
234 St. Petersburg, FL		—			1,070		7,930		—		1,070		7,930		9,000		441		1988		2010
225 Tacoma, WA		—			723		6,401		901		723		7,302		8,025		1,425		2009		2006
178 Tappahannock, VA(3)		—			375		1,327		397		375		1,724		2,099		1,256		1978		1995
192 Tucson, AZ		—			276		8,924		112		276		9,036		9,312		3,536		1992		2000
209 Tyler, TX		—			300		3,071		22		300		3,093		3,393		740		1974		2004
223 Wooster, OH		—			118		1,711		2,223		118		3,934		4,052		936		2008		2006
Skilled Nursing Properties		—			33,917		300,231		27,178		33,917		327,409		361,326		73,523
Assisted Living Properties:
077 Ada, OK		—			100		1,650		—		100		1,650		1,750		644		1996		1996
136 Arlington, OH		—			629		6,973		—		629		6,973		7,602		1,839		1993		2001
105 Arvada, CO		—			100		2,810		276		100		3,086		3,186		1,130		1997		1997
063 Athens, TX		—			96		1,510		1		96		1,511		1,607		624		1995		1996
203 Bakersfield, CA		—			834		11,986		812		834		12,798		13,632		3,569		2002		2001
072 Battleground, WA		—			100		2,500		—		100		2,500		2,600		968		1996		1996
117 Beatrice, NE		—			100		2,173		—		100		2,173		2,273		800		1997		1997
137 Bexley, OH		—			306		4,196		—		306		4,196		4,502		1,108		1992		2001
106 Bullhead City, AZ		—			100		2,500		—		100		2,500		2,600		922		1997		1997
111 Burley, ID		—			100		2,200		—		100		2,200		2,300		815		1997		1997
112 Caldwell, ID		—			100		2,200		—		100		2,200		2,300		815		1997		1997
024 Camas, WA		—	(1)		100		2,175		—		100		2,175		2,275		872		1996		1996
160 Central, SC		—			100		2,321		—		100		2,321		2,421		695		1998		1999
240 Daytona Beach, FL		—			900		3,400		—		900		3,400		4,300		123		1996		2010
156 Denison, IA		—			100		2,713		—		100		2,713		2,813		942		1998		1998
057 Dodge City, KS		—			84		1,666		4		84		1,670		1,754		714		1995		1995
083 Durant, OK		—			100		1,769		—		100		1,769		1,869		674		1997		1997
107 Edmond, OK		—			100		1,365		526		100		1,891		1,991		699		1996		1997
122 Elkhart, IN		—			100		2,435		—		100		2,435		2,535		879		1997		1997
155 Erie, PA		—			850		7,477		—		850		7,477		8,327		2,663		1998		1999
113 Eugene, OR		—			100		2,600		—		100		2,600		2,700		958		1997		1997
100 Fremont ,OH		—			100		2,435		—		100		2,435		2,535		904		1997		1997
163 Ft. Collins, CO		—			100		2,961		—		100		2,961		3,061		967		1998		1999
170 Ft. Collins, CO		—			100		3,400		—		100		3,400		3,500		1,084		1999		1999
132 Ft. Meyers, FL		—			100		2,728		9		100		2,737		2,837		968		1998		1998
230 Ft. Wayne, IN		—			594		3,461		731		594		4,192		4,786		249		1996		2009
167 Goldsboro, NC		—			100		2,385		1		100		2,386		2,486		664		1998		1999
022 Grandview, WA		—	(1)		100		1,940		—		100		1,940		2,040		793		1996		1996
056 Great Bend, KS		—			80		1,570		21		80		1,591		1,671		737		1995		1995
102 Greeley, CO		—			100		2,310		270		100		2,580		2,680		951		1997		1997
164 Greenville, NC		—			100		2,478		2		100		2,480		2,580		778		1998		1999
062 Greenville, TX		—			42		1,565		—		42		1,565		1,607		647		1995		1996
161 Greenwood, SC		—			100		2,638		—		100		2,638		2,738		845		1998		1999
241 Gulf Breeze, FL		—			720		3,780		—		720		3,780		4,500		149		2000		2010
079 Hayden, ID		—			100		2,450		243		100		2,693		2,793		1,035		1996		1996
097 Hoquiam, WA		—			100		2,500		—		100		2,500		2,600		927		1997		1997
066 Jacksonville, TX		—			100		1,900		—		100		1,900		2,000		779		1996		1996
071 Kelso, WA		—			100		2,500		—		100		2,500		2,600		1,024		1996		1996
021 Kennewick. WA		—	(1)		100		1,940		—		100		1,940		2,040		797		1996		1996
073 Klamath Falls, OR		—			100		2,300		—		100		2,300		2,400		888		1996		1996
101 Lake Havasu, AZ		—			100		2,420		—		100		2,420		2,520		898		1997		1997
148 Longmont, CO		—			100		2,640		—		100		2,640		2,740		923		1998		1998
060 Longview, TX		—			38		1,568		1		38		1,569		1,607		654		1995		1995
114 Loveland, CO		—			100		2,865		270		100		3,135		3,235		1,138		1997		1997
068 Lufkin, TX		—			100		1,950		—		100		1,950		2,050		793		1996		1996
119 Madison, IN		—			100		2,435		—		100		2,435		2,535		894		1997		1997
061 Marshall, TX		—			38		1,568		451		38		2,019		2,057		843		1995		1995
058 McPherson, KS		—			79		1,571		4		79		1,575		1,654		730		1994		1995
239 Merritt Island, FL		—			550		8,150		—		550		8,150		8,700		300		2004		2010
104 Millville, NJ		—			100		2,825		—		100		2,825		2,925		1,044		1997		1997
231 Monroeville, PA		—			526		5,334		435		526		5,769		6,295		337		1997		2009
082 Nampa, ID		—			100		2,240		23		100		2,263		2,363		874		1997		1997
166 New Bern, NC		—			100		2,427		1		100		2,428		2,528		688		1998		1999
118 Newark, OH		—			100		2,435		—		100		2,435		2,535		894		1997		1997
123 Newport Richey, FL		—			100		5,845		664		100		6,509		6,609		2,609		1995		1998
074 Newport, OR		—			100		2,050		—		100		2,050		2,150		989		1996		1996
143 Niceville, FL		—			100		2,680		—		100		2,680		2,780		937		1998		1998
095 Norfolk, NE		—			100		2,123		—		100		2,123		2,223		796		1997		1997
232 Pittsburgh, PA		—			470		2,615		333		470		2,948		3,418		176		1994		2009
165 Rocky Mount, NC		—			100		2,494		1		100		2,495		2,595		730		1998		1999
141 Rocky River, OH		—			760		6,963		—		760		6,963		7,723		2,424		1998		1999
059 Salina, KS		—			79		1,571		4		79		1,575		1,654		730		1994		1995
084 San Antonio, TX		—			100		1,900		—		100		1,900		2,000		723		1997		1997
092 San Antonio, TX		—			100		2,055		—		100		2,055		2,155		775		1997		1997
149 Shelby, NC		—			100		2,805		2		100		2,807		2,907		979		1998		1998
150 Spring Hill, FL		—			100		2,650		—		100		2,650		2,750		927		1998		1998
103 Springfield, OH		—			100		2,035		270		100		2,305		2,405		848		1997		1997
162 Sumter, SC		—			100		2,351		—		100		2,351		2,451		723		1998		1999
140 Tallahassee, FL		—			100		3,075		—		100		3,075		3,175		1,077		1998		1998
098 Tiffin, OH		—			100		2,435		—		100		2,435		2,535		904		1997		1997
088 Troy, OH		—			100		2,435		306		100		2,741		2,841		1,022		1997		1997
080 Tulsa, OK		—			200		1,650		—		200		1,650		1,850		638		1997		1997
093 Tulsa, OK		—			100		2,395		—		100		2,395		2,495		899		1997		1997
238 Tupelo, MS		—			1,170		8,230		—		1,170		8,230		9,400		321		2000		2010
075 Tyler, TX		—			100		1,800		—		100		1,800		1,900		701		1996		1996
202 Vacaville, CA		—			1,662		11,634		1,141		1,662		12,775		14,437		3,504		2002		2001
025 Vancouver, WA		—	(1)		100		2,785		—		100		2,785		2,885		1,115		1996		1996
091 Waco, TX		—			100		2,235		—		100		2,235		2,335		841		1997		1997
096 Wahoo, NE		—			100		2,318		—		100		2,318		2,418		862		1997		1997
023 Walla Walla, WA		3,200	(1)		100		1,940		—		100		1,940		2,040		789		1996		1996
108 Watauga, TX		—			100		1,668		—		100		1,668		1,768		624		1996		1997
109 Weatherford, OK		—			100		1,669		592		100		2,261		2,361		832		1996		1997
110 Wheelersburg, OH		—			29		2,435		—		29		2,435		2,464		894		1997		1997
076 Wichita Falls, TX		—			100		1,850		—		100		1,850		1,950		719		1996		1996
120 Wichita Falls,TX		—			100		2,750		—		100		2,750		2,850		1,012		1997		1997
138 Worthington, OH		—			—		6,102		—		—		6,102		6,102		3,509		1993		2001
139 Worthington, OH		—			—		3,402		—		—		3,402		3,402		1,991		1995		2001
099 York, NE		—			100		2,318		—		100		2,318		2,418		862		1997		1997
Assisted Living Properties		3,200			17,036		261,551		7,394		17,036		268,945		285,981		86,131
Other Senior Housing:
007 Bradenton, FL		—			330		2,720		160		330		2,880		3,210		1,556		2002		1993
199 Brownsville, TX		—			302		1,856		835		302		2,691		2,993		592		2009		2004
191 Cordele, GA		—			153		1,455		132		153		1,587		1,740		616		2002		2000
168 Des Moines, IA(3)		—			115		2,096		1,433		115		3,529		3,644		1,536		1972		1999
229 Ft. Worth, TX		—			333		4,385		919		333		5,304		5,637		613		2009		2008
26A Gardendale, AL		—			84		6,316		2,084		84		8,400		8,484		2,980		2009		1996
26B Gardendale, AL		—			16		1,234		—		16		1,234		1,250		576		1988		1996
194 Holyoke, CO		—			211		1,513		283		211		1,796		2,007		847		1963		2000
190 Lakeland, FL		—			519		2,313		1,626		519		3,939		4,458		1,309		2009		2000
008 Lecanto, FL		—			351		2,665		2,737		351		5,402		5,753		2,718		2006		1993
245 Newberry, SC		—			439		4,638		562		439		5,200		5,639		141		1995		2011
244 Newberry, SC		—			919		5,453		112		919		5,565		6,484		171		2001		2011
236 Wytheville, VA		—			647		12,692		—		647		12,692		13,339		900		1996		2010
Other Senior Housing		—			4,419		49,336		10,883		4,419		60,219		64,638		14,555
School:
237 Eagan, MN		—			1,110		1,790		22		1,110		1,812		2,922		115		1994		2010
159 Trenton, NJ		—			100		6,000		3,170		100		9,170		9,270		3,872		1998		1998
School		—			1,210		7,790		3,192		1,210		10,982		12,192		3,987
Properties Under Development:
252 Amarillo, TX		—			844		—		50		844		50		894		—		N/A		2011
Properties Under Development		—			844		—		50		844		50		894		—
	$	3,200		$	57,426	$	618,908	$	48,697	$	57,426	$	667,605	$	725,031	$	178,196

(1)

Single note backed by five facilities in Washington.

(2)

Depreciation is computed principally by the straight-line method for financial reporting purposes which generally range of a life from 7 to 10 years for furniture and equipment, 35 to 40 years for buildings, 10 to 20 years for building improvements and the respective lease term for acquired lease intangibles.

(3)

An impairment charge totaling $4,190 was taken against 4 facilities based on the Company's estimate of the excess carrying value over the fair value of assets to be held and used, and the carrying value over the fair value less cost to sell in instances where management has determined that the company will dispose of the property.

Activity for the years ended December 31, 2011, 2010 and 2009 is as follows:

	For the Year Ended December 31,
	2011		2010			2009
Reconciliation of real estate:
Carrying cost:
Balance at beginning of period	$	615,666	$	519,460		$	502,617
Acquisitions		106,135		94,250			13,000
Improvements		3,230		5,941			3,843
Conversion of mortgage loans into owned properties		—		2,900			—
Impairment charges		—		—			—
Cost of real estate sold		—		(6,885	)		—
Ending balance	$	725,031	$	615,666		$	519,460
Accumulated depreciation:
Balance at beginning of period	$	158,709	$	145,180		$	130,475
Depreciation Expense		19,487		16,016			14,705
Conversion of mortgage loans into owned properties		—		—			—
Impairment charges		—		—			—
Cost of real estate sold		—		(2,487	)		—
Ending balance	$	178,196	$	158,709		$	145,180