Supplemental Cash Flow Information (Tables)

12 Months Ended

Dec. 31, 2011

Supplemental Cash Flow Information

Supplemental Cash Flow Information

	For the year ended December 31,
	2011		2010		2009
	(in thousands)
Non-cash investing and financing transactions:
Conversion of mortgage loans to owned properties	$	—	$	2,900	$	—
Acquisition of real estate investments(1)		5,975		—		—
Conversion of preferred stock to common stock		—		823		22
Redemption of non-controlling interest		—		—		1,144
Restricted stock issued, net of cancellations		—		2		1

(1)

We purchased four skilled nursing properties with 524-beds in Texas for $50,841 which consists of $41,000 in cash at closing with the remainder in the form of contingent earn-out payments. The contingent earn-out payment arrangements require us to pay two earn-out payments totalling up to $11,000 upon the properties achieving a sustainable stipulated rent coverage ratio. During 2011, we paid $4,000 related to the first contingent earn-out payment which has been included in Investment in real estate properties and capital improvements, net on our consolidated statement of cash flows. We estimated the fair value of the contingent earn-out payments using a discounted cash flow analysis. This fair value measurement is based on significant input not observable in the market and thus represents a Level 3 measurement.