SCHEDULE III REAL ESTATE AND ACCUMULATED DEPRECIATION

12 Months Ended

Dec. 31, 2012

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, 2012
				Initial cost to company				Costs capitalized subsequent to acquisition
	Encumbrances			Land		Building and improvements				Land		Building and improvements		Total(1)			Accum deprec.		Construction/ renovation date		Acquisition date
Skilled Nursing Properties:
134 Alamogordo, NM		—			210		2,593		319		210		2,912		3,122			751		1985		2001
218 Albuquerque, NM		—			1,696		3,891		530		1,696		4,421		6,117			1,162		2008		2005
219 Albuquerque, NM		—			1,950		8,910		207		1,950		9,117		11,067			2,407		1982		2005
220 Albuquerque, NM		—			2,463		7,647		9		2,463		7,656		10,119			2,028		1970		2005
042 Altoona, IA		—			105		2,309		444		105		2,753		2,858			1,503		1973		1996
214 Aransas Pass, TX		—			154		1,276		589		154		1,865		2,019			523		2008		2004
247 Arlington, TX		—			1,016		13,649		—		1,016		13,649		14,665			917		2007		2011
171 Atlanta, GA		—			175		1,282		3		175		1,285		1,460			617		1968		1999
040 Atmore, AL		—			131		2,877		196		131		3,073		3,204			1,510		1974		1996
221 Beaumont, TX		—			370		1,141		93		370		1,234		1,604			384		1950		2005
213 Beeville, TX		—			186		1,197		70		186		1,267		1,453			303		1974		2004
215 Benbrook, TX		—			480		2,121		102		480		2,223		2,703			651		1976		2005
256 Brownwood, TX		—			164		6,336		—		164		6,336		6,500			104		2011		2012
189 Canyon, TX		—	(2)		196		507		211		196		718		914			717		1986		2000
043 Carroll, IA		—			47		1,033		213		47		1,246		1,293			679		1969		1996
177 Chesapeake, VA		—			388		3,469		1,097		388		4,566		4,954			2,484		2007		1995
257 Cincinnati, OH		—			1,890		25,110		—		1,890		25,110		27,000			240		2009		2012
125 Clovis, NM		—			561		5,539		307		561		5,846		6,407			1,738		2006		2001
129 Clovis, NM		—			598		5,902		59		598		5,961		6,559			1,801		1995		2001
253 Colton, CA		—			2,342		15,158		—		2,342		15,158		17,500			501		1990		2011
211 Commerce City, CO		—			236		3,217		167		236		3,384		3,620			1,049		1964		2004
212 Commerce City, CO		—			161		2,160		95		161		2,255		2,416			680		1967		2004
246 Crowley, TX		—			2,247		14,276		—		2,247		14,276		16,523			860		2007		2011
235 Daleville, VA		—			279		8,382		—		279		8,382		8,661			783		2005		2010
258 Dayton, OH		—			373		26,627		—		373		26,627		27,000			256		2010		2012
217 Del Norte, CO		—			103		930		336		103		1,266		1,369			337		2006		2005
196 Dresden, TN		—			31		1,529		123		31		1,652		1,683			618		2002		2000
185 Gardner, KS		—			896		4,478		4,150		896		8,628		9,524			2,435		2011		1999
248 Granbury, TX		—			836		6,693		—		836		6,693		7,529			680		2008		2011
044 Granger, IA		—			62		1,356		221		62		1,577		1,639			815		1979		1996
205 Grapevine, TX		—			431		1,449		188		431		1,637		2,068			716		1974		2002
172 Griffin, GA		—			500		2,900		—		500		2,900		3,400			1,258		1969		1999
250 Hewitt, TX		—			1,780		8,220		99		1,780		8,319		10,099			341		2008		2011
054 Houston, TX		—			202		4,458		1,426		202		5,884		6,086			3,041		2007		1996
051 Houston, TX		—			365		3,769		1,598		365		5,367		5,732			2,737		1968		1996
055 Houston, TX		—			202		4,458		1,359		202		5,817		6,019			2,945		2008		1996
208 Jacksonville, FL		—			486		1,981		30		486		2,011		2,497			720		1987		2002
045 Jefferson, IA		—			86		1,883		296		86		2,179		2,265			1,105		1972		1996
216 Marion, OH		—			119		1,156		1,142		119		2,298		2,417			639		2007		2005
222 Marion, OH		—			48		2,466		—		48		2,466		2,514			597		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			4,164		1996		1996
226 Mesa, AZ		—			1,095		2,330		—		1,095		2,330		3,425			564		1979		2006
050 Midland, TX		—			33		2,285		26		33		2,311		2,344			1,195		1973		1996
242 Mission, TX		—			1,111		16,602		—		1,111		16,602		17,713			973		2004		2010
041 Montgomery, AL		—			242		5,327		115		242		5,442		5,684			2,740		1974		1996
115 Nacogdoches, TX		—			100		1,738		168		100		1,906		2,006			911		1973		1997
233 Nacogdoches, TX		—			394		7,456		168		394		7,624		8,018			705		1991		2010
249 Nacogdoches, TX		—			1,015		11,109		—		1,015		11,109		12,124			848		2007		2011
046 Norwalk, IA		—			47		1,033		239		47		1,272		1,319			669		1975		1996
176 Olathe, KS		—			520		1,872		313		520		2,185		2,705			1,014		1968		1999
224 Orrville, OH		—			107		1,946		108		107		2,054		2,161			551		1956		2006
251 Pasadena, TX		—			1,155		14,345		—		1,155		14,345		15,500			477		2005		2011
210 Phoenix, AZ		—			334		3,383		456		334		3,839		4,173			1,328		1982		2004
193 Phoenix, AZ		—			300		9,703		92		300		9,795		10,095			4,090		1985		2000
047 Polk City, IA		—			63		1,376		153		63		1,529		1,592			802		1976		1996
094 Portland, OR		—			100		1,925		2,652		100		4,577		4,677			1,919		2007		1997
254 Red Oak, TX		—			1,427		17,173		—		1,427		17,173		18,600			387		2002		2012
124 Richland Hills, TX		—			144		1,656		427		144		2,083		2,227			876		1976		2001
197 Ripley, TN		—			20		985		387		20		1,372		1,392			517		2007		2000
133 Roswell, NM		—			568		5,235		449		568		5,684		6,252			1,516		1975		2001
081 Sacramento, CA		—			220		2,929		—		220		2,929		3,149			1,464		1968		1997
085 Salina, KS		—	(2)		100		1,153		628		100		1,781		1,881			934		1985		1997
243 Stephenville TX		—			670		10,117		—		670		10,117		10,787			855		2009		2010
234 St. Petersburg, FL		—			1,070		7,930		—		1,070		7,930		9,000			682		1988		2010
225 Tacoma, WA		—			723		6,401		901		723		7,302		8,025			1,750		2009		2006
178 Tappahannock, VA		—	(2)		375		1,327		397		375		1,724		2,099			1,303		1978		1995
192 Tucson, AZ		—			276		8,924		112		276		9,036		9,312			3,768		1992		2000
209 Tyler, TX		—			300		3,071		22		300		3,093		3,393			813		1974		2004
223 Wooster, OH		—			118		1,711		2,223		118		3,934		4,052			1,171		2008		2006
Skilled Nursing Properties		—			37,707		373,090		27,591		37,707		400,681		438,388			83,422
Assisted Living Properties:
077 Ada, OK		—			100		1,650		—		100		1,650		1,750			684		1996		1996
136 Arlington, OH		—			629		6,973		—		629		6,973		7,602			2,011		1993		2001
105 Arvada, CO		—			100		2,810		276		100		3,086		3,186			1,206		1997		1997
063 Athens, TX		—			96		1,510		1		96		1,511		1,607			662		1995		1996
260 Aurora, CO		—			831		10,071		—		831		10,071		10,902			—		1999		2012
203 Bakersfield, CA		—			834		11,986		812		834		12,798		13,632			3,968		2002		2001
072 Battleground, WA		—			100		2,500		—		100		2,500		2,600			1,030		1996		1996
117 Beatrice, NE		—			100		2,173		—		100		2,173		2,273			854		1997		1997
137 Bexley, OH		—			306		4,196		—		306		4,196		4,502			1,211		1992		2001
106 Bullhead City, AZ		—			100		2,500		—		100		2,500		2,600			983		1997		1997
111 Burley, ID		—			100		2,200		—		100		2,200		2,300			868		1997		1997
112 Caldwell, ID		—			100		2,200		—		100		2,200		2,300			868		1997		1997
024 Camas, WA		—	(3)		100		2,175		—		100		2,175		2,275			926		1996		1996
160 Central, SC		—			100		2,321		—		100		2,321		2,421			746		1998		1999
263 Chatham, NJ		—			5,365		36,399		—		5,365		36,399		41,764			—		2002		2012
191 Cordele, GA		—			153		1,455		132		153		1,587		1,740			659		2002		2000
240 Daytona Beach, FL		—			900		3,400		—		900		3,400		4,300			229		1996		2010
156 Denison, IA		—			100		2,713		—		100		2,713		2,813			1,009		1998		1998
057 Dodge City, KS		—			84		1,666		4		84		1,670		1,754			754		1995		1995
083 Durant, OK		—			100		1,769		—		100		1,769		1,869			717		1997		1997
107 Edmond, OK		—			100		1,365		526		100		1,891		1,991			746		1996		1997
122 Elkhart, IN		—			100		2,435		—		100		2,435		2,535			939		1997		1997
155 Erie, PA		—			850		7,477		—		850		7,477		8,327			2,837		1998		1999
113 Eugene, OR		—			100		2,600		—		100		2,600		2,700			1,022		1997		1997
100 Fremont ,OH		—			100		2,435		—		100		2,435		2,535			964		1997		1997
163 Ft. Collins, CO		—			100		2,961		—		100		2,961		3,061			1,038		1998		1999
170 Ft. Collins, CO		—			100		3,400		—		100		3,400		3,500			1,168		1999		1999
132 Ft. Meyers, FL		—			100		2,728		9		100		2,737		2,837			1,035		1998		1998
230 Ft. Wayne, IN		—			594		3,461		731		594		4,192		4,786			421		1996		2009
229 Ft. Worth, TX		—			333		4,385		985		333		5,370		5,703			1,029		2009		2008
167 Goldsboro, NC		—			100		2,385		1		100		2,386		2,486			713		1998		1999
022 Grandview, WA		—	(3)		100		1,940		—		100		1,940		2,040			840		1996		1996
056 Great Bend, KS		—			80		1,570		21		80		1,591		1,671			782		1995		1995
102 Greeley, CO		—			100		2,310		270		100		2,580		2,680			1,014		1997		1997
164 Greenville, NC		—			100		2,478		2		100		2,480		2,580			835		1998		1999
062 Greenville, TX		—			42		1,565		—		42		1,565		1,607			685		1995		1996
161 Greenwood, SC		—			100		2,638		—		100		2,638		2,738			907		1998		1999
241 Gulf Breeze, FL		—			720		3,780		—		720		3,780		4,500			275		2000		2010
079 Hayden, ID		—			100		2,450		243		100		2,693		2,793			1,102		1996		1996
097 Hoquiam, WA		—			100		2,500		—		100		2,500		2,600			989		1997		1997
066 Jacksonville, TX		—			100		1,900		—		100		1,900		2,000			826		1996		1996
071 Kelso, WA		—			100		2,500		—		100		2,500		2,600			1,086		1996		1996
021 Kennewick. WA		—	(3)		100		1,940		—		100		1,940		2,040			844		1996		1996
073 Klamath Falls, OR		—			100		2,300		—		100		2,300		2,400			944		1996		1996
101 Lake Havasu, AZ		—			100		2,420		—		100		2,420		2,520			958		1997		1997
190 Lakeland, FL		—			519		2,312		1,626		519		3,938		4,457			1,479		2009		2000
148 Longmont, CO		—			100		2,640		—		100		2,640		2,740			988		1998		1998
060 Longview, TX		—			38		1,568		1		38		1,569		1,607			693		1995		1995
114 Loveland, CO		—			911		11,703		—		911		11,703		12,614			—		2000		2012
114 Loveland, CO		—			100		2,865		270		100		3,135		3,235			1,217		1997		1997
068 Lufkin, TX		—			100		1,950		—		100		1,950		2,050			840		1996		1996
119 Madison, IN		—			100		2,435		—		100		2,435		2,535			954		1997		1997
061 Marshall, TX		—			38		1,568		451		38		2,019		2,057			894		1995		1995
058 McPherson, KS		—			79		1,571		4		79		1,575		1,654			774		1994		1995
239 Merritt Island, FL		—			550		8,150		—		550		8,150		8,700			559		2004		2010
104 Millville, NJ		—			100		2,825		—		100		2,825		2,925			1,114		1997		1997
231 Monroeville, PA		—			526		5,334		435		526		5,769		6,295			540		1997		2009
082 Nampa, ID		—			100		2,240		23		100		2,263		2,363			929		1997		1997
166 New Bern, NC		—			100		2,427		1		100		2,428		2,528			739		1998		1999
118 Newark, OH		—			100		2,435		—		100		2,435		2,535			954		1997		1997
123 Newport Richey, FL		—			100		5,845		664		100		6,509		6,609			2,804		1995		1998
074 Newport, OR		—			100		2,050		—		100		2,050		2,150			1,064		1996		1996
143 Niceville, FL		—			100		2,680		—		100		2,680		2,780			1,003		1998		1998
095 Norfolk, NE		—			100		2,123		—		100		2,123		2,223			848		1997		1997
232 Pittsburgh, PA		—			470		2,615		333		470		2,948		3,418			294		1994		2009
165 Rocky Mount, NC		—			100		2,494		1		100		2,495		2,595			783		1998		1999
141 Rocky River, OH		—			760		6,963		—		760		6,963		7,723			2,587		1998		1999
059 Salina, KS		—			79		1,571		4		79		1,575		1,654			774		1994		1995
084 San Antonio, TX		—			100		1,900		—		100		1,900		2,000			769		1997		1997
092 San Antonio, TX		—			100		2,055		—		100		2,055		2,155			825		1997		1997
149 Shelby, NC		—			100		2,805		2		100		2,807		2,907			1,049		1998		1998
150 Spring Hill, FL		—			100		2,650		—		100		2,650		2,750			992		1998		1998
103 Springfield, OH		—			100		2,035		270		100		2,305		2,405			904		1997		1997
162 Sumter, SC		—			100		2,351		—		100		2,351		2,451			776		1998		1999
140 Tallahassee, FL		—			100		3,075		—		100		3,075		3,175			1,153		1998		1998
098 Tiffin, OH		—			100		2,435		—		100		2,435		2,535			964		1997		1997
088 Troy, OH		—			100		2,435		306		100		2,741		2,841			1,090		1997		1997
080 Tulsa, OK		—			200		1,650		—		200		1,650		1,850			678		1997		1997
093 Tulsa, OK		—			100		2,395		—		100		2,395		2,495			958		1997		1997
238 Tupelo, MS		—			1,170		8,230		—		1,170		8,230		9,400			595		2000		2010
075 Tyler, TX		—			100		1,800		—		100		1,800		1,900			744		1996		1996
202 Vacaville, CA		—			1,662		11,634		1,141		1,662		12,775		14,437			3,902		2002		2001
025 Vancouver, WA		—	(3)		100		2,785		—		100		2,785		2,885			1,184		1996		1996
091 Waco, TX		—			100		2,235		—		100		2,235		2,335			896		1997		1997
096 Wahoo, NE		—			100		2,318		—		100		2,318		2,418			918		1997		1997
023 Walla Walla, WA		2,635	(3)		100		1,940		—		100		1,940		2,040			836		1996		1996
108 Watauga, TX		—			100		1,668		—		100		1,668		1,768			664		1996		1997
109 Weatherford, OK		—			100		1,669		592		100		2,261		2,361			888		1996		1997
110 Wheelersburg, OH		—			29		2,435		—		29		2,435		2,464			954		1997		1997
076 Wichita Falls, TX		—			100		1,850		—		100		1,850		1,950			764		1996		1996
120 Wichita Falls, TX		—			100		2,750		—		100		2,750		2,850			1,079		1997		1997
264 Williamstown, NJ		—			711		8,649		—		711		8,649		9,360			—		2000		2012
265 Williamstown, NJ		—			711		6,637		—		711		6,637		7,348			—		2000		2012
138 Worthington, OH		—			—		6,102		—		—		6,102		6,102			3,953		1993		2001
139 Worthington, OH		—			—		3,402		—		—		3,402		3,402			2,233		1995		2001
099 York, NE		—			100		2,318		—		100		2,318		2,418			918		1997		1997
Assisted Living Properties		2,635			26,570		343,162		10,137		26,570		353,299		379,869			96,901
Range of Care Properties:
007 Bradenton, FL		—			330		2,720		160		330		2,880		3,210			1,639		2002		1993
199 Brownsville, TX		—			302		1,856		835		302		2,691		2,993			687		2009		2004
168 Des Moines, IA(3)		—			115		2,096		1,433		115		3,529		3,644			1,623		1972		1999
26A Gardendale, AL		—			84		6,316		2,084		84		8,400		8,484			3,277		2009		1996
26B Gardendale, AL		—			16		1,234		—		16		1,234		1,250			610		1988		1996
194 Holyoke, CO		—			211		1,513		283		211		1,796		2,007			883		1963		2000
008 Lecanto, FL		—			351		2,665		2,737		351		5,402		5,753			2,879		2006		1993
245 Newberry, SC		—			439		4,639		608		439		5,247		5,686			375		1995		2011
244 Newberry, SC		—			919		5,454		131		919		5,585		6,504			385		2001		2011
236 Wytheville, VA		—			647		12,692		—		647		12,692		13,339			1,469		1996		2010
Range of Care Properties		—			3,414		41,185		8,271		3,414		49,456		52,870			13,827
School:
237 Eagan, MN		—			1,110		1,789		157		1,110		1,946		3,056			220		1994		2010
159 Trenton, NJ		—			100		6,000		3,170		100		9,170		9,270			4,178		1998		1998
School		—			1,210		7,789		3,327		1,210		11,116		12,326			4,398
Properties Under Development:
252 Amarillo, TX		—			844		—		2,747		844		2,747		3,591			—		N/A		2011
268 Coldspring, KY		—			2,050		2,688		32		2,050		2,720		4,770			—		N/A		2012
267 Frisco, TX		—			1,000		—		47		1,000		47		1,047			—		N/A		2012
255 Littleton, CO		—			1,882		—		3,748		1,882		3,748		5,630			—		N/A		2012
259 Wichita, KS		—			730		—		874		730		874		1,604			—		N/A		2012
Properties Under Development		—			6,506		2,688		7,448		6,506		10,136		16,642			—
	$	2,635		$	75,407	$	767,914	$	56,774	$	75,407	$	824,688	$	900,095	(4)	$	198,548

⁽¹⁾

Depreciation is computed principally by the straight-line method for financial reporting purposes which generally range of a life from 7 to 15 years for furniture and equipment, 35 to 45 years for buildings, 10 to 20 years for building improvements and the respective lease term for acquired lease intangibles.

⁽²⁾

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.

⁽³⁾

Single note backed by five facilities in Washington.

⁽⁴⁾

As of December 31, 2012, our aggregate cost for Federal income tax purposes was $915,408.

        Activity for the years ended December 31, 2012, 2011 and 2010 is as follows:

	For the Year Ended December 31,
	2012			2011		2010
Reconciliation of real estate:
Carrying cost:
Balance at beginning of period	$	725,031		$	615,666	$	519,460
Acquisitions		166,750			106,135		94,250
Improvements		11,219			3,230		5,941
Conversion of mortgage loans into owned properties		—			—		2,900
Impairment charges		—			—		—
Cost of real estate sold		(2,905	)		—		(6,885	)
Ending balance	$	900,095		$	725,031	$	615,666
Accumulated depreciation:
Balance at beginning of period	$	178,196		$	158,709	$	145,180
Depreciation Expense		22,002			19,487		16,016
Conversion of mortgage loans into owned properties		—			—		—
Impairment charges		—			—		—
Cost of real estate sold		(1,650	)		—		(2,487	)
Ending balance	$	198,548		$	178,196	$	158,709