SCHEDULE III REAL ESTATE AND ACCUMULATED DEPRECIATION

12 Months Ended

Dec. 31, 2013

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, 2013
				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	$	371	$	210	$	2,964	$	3,174		$	814		1985		2001
218 Albuquerque, NM		—			1,696		3,891		530		1,696		4,421		6,117			1,277		2008		2005
219 Albuquerque, NM		—			1,950		8,910		207		1,950		9,117		11,067			2,617		1982		2005
220 Albuquerque, NM		—			2,463		7,647		9		2,463		7,656		10,119			2,201		1970		2005
042 Altoona, IA		—			105		2,309		444		105		2,753		2,858			1,580		1973		1996
252 Amarillo, TX		—			844		—		7,925		844		7,925		8,769			186		2013		2011
214 Aransas Pass, TX		—			154		1,276		589		154		1,865		2,019			601		2008		2004
247 Arlington, TX		—			1,016		13,649		—		1,016		13,649		14,665			1,427		2007		2011
171 Atlanta, GA		—			175		1,282		3		175		1,285		1,460			648		1968		1999
040 Atmore, AL		—			131		2,877		196		131		3,073		3,204			1,594		1974		1996
221 Beaumont, TX		—			370		1,141		93		370		1,234		1,604			410		1950		2005
213 Beeville, TX		—			186		1,197		70		186		1,267		1,453			340		1974		2004
215 Benbrook, TX		—			480		2,121		102		480		2,223		2,703			700		1976		2005
007 Bradenton, FL		—			330		2,720		160		330		2,880		3,210			1,723		2002		1993
256 Brownwood, TX		—			164		6,336		—		164		6,336		6,500			312		2011		2012
189 Canyon, TX		—	(2)		196		507		211		196		718		914			718		1986		2000
043 Carroll, IA		—			47		1,033		213		47		1,246		1,293			714		1969		1996
177 Chesapeake, VA		—			388		3,469		1,097		388		4,566		4,954			2,638		2007		1995
257 Cincinnati, OH		—			1,890		25,110		—		1,890		25,110		27,000			816		2009		2012
125 Clovis, NM		—			561		5,539		307		561		5,846		6,407			1,880		2006		2001
129 Clovis, NM		—			598		5,902		59		598		5,961		6,559			1,945		1995		2001
253 Colton, CA		—			2,342		15,158		—		2,342		15,158		17,500			931		1990		2011
211 Commerce City, CO		—			236		3,217		167		236		3,384		3,620			1,137		1964		2004
212 Commerce City, CO		—			161		2,160		95		161		2,255		2,416			736		1967		2004
246 Crowley, TX		—			2,247		14,276		—		2,247		14,276		16,523			1,380		2007		2011
235 Daleville, VA		—			279		8,382		—		279		8,382		8,661			1,086		2005		2010
258 Dayton, OH		—			373		26,627		—		373		26,627		27,000			871		2010		2012
196 Dresden, TN		—			31		1,529		875		31		2,404		2,435			655		2002		2000
185 Gardner, KS		—			896		4,478		4,150		896		8,628		9,524			2,676		2011		1999
248 Granbury, TX		—			836		6,693		—		836		6,693		7,529			1,001		2008		2011
044 Granger, IA		—			62		1,356		221		62		1,577		1,639			862		1979		1996
205 Grapevine, TX		—			431		1,449		188		431		1,637		2,068			752		1974		2002
172 Griffin, GA		—			500		2,900		—		500		2,900		3,400			1,333		1969		1999
250 Hewitt, TX		—			1,780		8,220		99		1,780		8,319		10,099			587		2008		2011
054 Houston, TX		—			202		4,458		1,426		202		5,884		6,086			3,218		2007		1996
051 Houston, TX		—			365		3,769		1,598		365		5,367		5,732			2,874		1968		1996
055 Houston, TX		—			202		4,458		1,359		202		5,817		6,019			3,118		2008		1996
208 Jacksonville, FL		—			486		1,981		30		486		2,011		2,497			764		1987		2002
045 Jefferson, IA		—			86		1,883		296		86		2,179		2,265			1,169		1972		1996
008 Lecanto, FL		—			351		2,665		2,737		351		5,402		5,753			3,040		2006		1993
053 Mesa, AZ		—			305		6,909		1,876		305		8,785		9,090			4,408		1996		1996
226 Mesa, AZ		—			1,095		2,330		—		1,095		2,330		3,425			637		1979		2006
050 Midland, TX		—			33		2,285		26		33		2,311		2,344			1,256		1973		1996
242 Mission, TX		—			1,111		16,602		—		1,111		16,602		17,713			1,497		2004		2010
041 Montgomery, AL		—			242		5,327		115		242		5,442		5,684			2,888		1974		1996
115 Nacogdoches, TX		—			100		1,738		168		100		1,906		2,006			960		1973		1997
233 Nacogdoches, TX		—			394		7,456		268		394		7,724		8,118			950		1991		2010
249 Nacogdoches, TX		—			1,015		11,109		—		1,015		11,109		12,124			1,307		2007		2011
046 Norwalk, IA		—			47		1,033		239		47		1,272		1,319			710		1975		1996
176 Olathe, KS		—			520		1,872		313		520		2,185		2,705			1,089		1968		1999
251 Pasadena, TX		—			1,155		14,345		—		1,155		14,345		15,500			861		2005		2011
210 Phoenix, AZ		—			334		3,383		456		334		3,839		4,173			1,431		1982		2004
193 Phoenix, AZ		—			300		9,703		92		300		9,795		10,095			4,342		1985		2000
047 Polk City, IA		—			63		1,376		153		63		1,529		1,592			845		1976		1996
094 Portland, OR		—			100		1,925		2,652		100		4,577		4,677			2,134		2007		1997
254 Red Oak, TX		—			1,427		17,173		—		1,427		17,173		18,600			902		2002		2012
124 Richland Hills, TX		—			144		1,656		427		144		2,083		2,227			931		1976		2001
197 Ripley, TN		—			20		985		641		20		1,626		1,646			554		2007		2000
133 Roswell, NM		—			568		5,235		1,056		568		6,291		6,859			1,644		1975		2001
081 Sacramento, CA		—			220		2,929		—		220		2,929		3,149			1,541		1968		1997
085 Salina, KS		—	(2)		100		1,153		628		100		1,781		1,881			981		1985		1997
243 Stephenville TX		—			670		10,117		—		670		10,117		10,787			1,142		2009		2010
234 St. Petersburg, FL		—			1,070		7,930		—		1,070		7,930		9,000			923		1988		2010
225 Tacoma, WA		—			723		6,401		901		723		7,302		8,025			2,037		2009		2006
178 Tappahannock, VA		—	(2)		375		1,327		397		375		1,724		2,099			1,342		1978		1995
270 Trinity, FL		—			1,653		12,748		—		1,653		12,748		14,401			69		N/A		2013
192 Tucson, AZ		—			276		8,924		112		276		9,036		9,312			4,000		1992		2000
209 Tyler, TX		—			300		3,071		22		300		3,093		3,393			887		1974		2004
Skilled Nursing Properties		—			40,180		382,210		36,369		40,180		418,579		458,759			95,599
Assisted Living Properties:
077 Ada, OK		—			100		1,650		—		100		1,650		1,750			725		1996		1996
136 Arlington, OH		—			629		6,973		—		629		6,973		7,602			2,182		1993		2001
105 Arvada, CO		—			100		2,810		280		100		3,090		3,190			1,282		1997		1997
063 Athens, TX		—			96		1,510		1		96		1,511		1,607			699		1995		1996
260 Aurora, CO		—			831		10,071		—		831		10,071		10,902			303		1999		2012
203 Bakersfield, CA		—			834		11,986		812		834		12,798		13,632			4,367		2002		2001
072 Battleground, WA		—			100		2,500		—		100		2,500		2,600			1,091		1996		1996
117 Beatrice, NE		—			100		2,173		—		100		2,173		2,273			907		1997		1997
137 Bexley, OH		—			306		4,196		—		306		4,196		4,502			1,314		1992		2001
106 Bullhead City, AZ		—			100		2,500		—		100		2,500		2,600			1,045		1997		1997
111 Burley, ID		—			100		2,200		—		100		2,200		2,300			922		1997		1997
112 Caldwell, ID		—			100		2,200		—		100		2,200		2,300			922		1997		1997
024 Camas, WA		—	(3)		100		2,175		—		100		2,175		2,275			979		1996		1996
160 Central, SC		—			100		2,321		—		100		2,321		2,421			797		1998		1999
263 Chatham, NJ		—			5,365		36,399		—		5,365		36,399		41,764			1,050		2002		2012
191 Cordele, GA		—			153		1,455		132		153		1,587		1,740			701		2002		2000
240 Daytona Beach, FL		—			900		3,400		—		900		3,400		4,300			334		1996		2010
156 Denison, IA		—			100		2,713		—		100		2,713		2,813			1,076		1998		1998
057 Dodge City, KS		—			84		1,666		4		84		1,670		1,754			794		1995		1995
083 Durant, OK		—			100		1,769		—		100		1,769		1,869			761		1997		1997
107 Edmond, OK		—			100		1,365		526		100		1,891		1,991			792		1996		1997
122 Elkhart, IN		—			100		2,435		—		100		2,435		2,535			999		1997		1997
155 Erie, PA		—			850		7,477		—		850		7,477		8,327			3,010		1998		1999
113 Eugene, OR		—			100		2,600		—		100		2,600		2,700			1,086		1997		1997
100 Fremont ,OH		—			100		2,435		—		100		2,435		2,535			1,023		1997		1997
163 Ft. Collins, CO		—			100		2,961		2		100		2,963		3,063			1,109		1998		1999
170 Ft. Collins, CO		—			100		3,400		2		100		3,402		3,502			1,252		1999		1999
132 Ft. Meyers, FL		—			100		2,728		9		100		2,737		2,837			1,103		1998		1998
230 Ft. Wayne, IN		—			594		3,461		731		594		4,192		4,786			594		1996		2009
229 Ft. Worth, TX		—			333		4,385		1,028		333		5,413		5,746			1,280		2009		2008
167 Goldsboro, NC		—			100		2,385		1		100		2,386		2,486			762		1998		1999
022 Grandview, WA		—	(3)		100		1,940		—		100		1,940		2,040			888		1996		1996
056 Great Bend, KS		—			80		1,570		21		80		1,591		1,671			827		1995		1995
102 Greeley, CO		—			100		2,310		270		100		2,580		2,680			1,078		1997		1997
164 Greenville, NC		—			100		2,478		2		100		2,480		2,580			891		1998		1999
062 Greenville, TX		—			42		1,565		—		42		1,565		1,607			723		1995		1996
161 Greenwood, SC		—			100		2,638		—		100		2,638		2,738			968		1998		1999
241 Gulf Breeze, FL		—			720		3,780		—		720		3,780		4,500			402		2000		2010
079 Hayden, ID		—			100		2,450		243		100		2,693		2,793			1,168		1996		1996
097 Hoquiam, WA		—			100		2,500		—		100		2,500		2,600			1,050		1997		1997
066 Jacksonville, TX		—			100		1,900		—		100		1,900		2,000			872		1996		1996
071 Kelso, WA		—			100		2,500		—		100		2,500		2,600			1,147		1996		1996
021 Kennewick. WA		—	(3)		100		1,940		—		100		1,940		2,040			892		1996		1996
073 Klamath Falls, OR		—			100		2,300		—		100		2,300		2,400			1,001		1996		1996
101 Lake Havasu, AZ		—			100		2,420		—		100		2,420		2,520			1,017		1997		1997
190 Lakeland, FL		—			519		2,312		1,626		519		3,938		4,457			1,648		2009		2000
255 Littleton, CO		—			1,882		—		8,249		1,882		8,249		10,131			147		2013		2012
148 Longmont, CO		—			100		2,640		—		100		2,640		2,740			1,053		1998		1998
060 Longview, TX		—			38		1,568		1		38		1,569		1,607			731		1995		1995
221 Louisville, CO		—			911		11,703		—		911		11,703		12,614			345		2000		2012
114 Loveland, CO		—			100		2,865		270		100		3,135		3,235			1,294		1997		1997
068 Lufkin, TX		—			100		1,950		—		100		1,950		2,050			888		1996		1996
119 Madison, IN		—			100		2,435		—		100		2,435		2,535			1,013		1997		1997
061 Marshall, TX		—			38		1,568		451		38		2,019		2,057			945		1995		1995
058 McPherson, KS		—			79		1,571		4		79		1,575		1,654			819		1994		1995
239 Merritt Island, FL		—			550		8,150		—		550		8,150		8,700			818		2004		2010
104 Millville, NJ		—			100		2,825		—		100		2,825		2,925			1,183		1997		1997
231 Monroeville, PA		—			526		5,334		435		526		5,769		6,295			743		1997		2009
082 Nampa, ID		—			100		2,240		23		100		2,263		2,363			985		1997		1997
166 New Bern, NC		—			100		2,427		1		100		2,428		2,528			790		1998		1999
118 Newark, OH		—			100		2,435		—		100		2,435		2,535			1,013		1997		1997
123 Newport Richey, FL		—			100		5,845		664		100		6,509		6,609			2,994		1995		1998
074 Newport, OR		—			100		2,050		—		100		2,050		2,150			1,140		1996		1996
143 Niceville, FL		—			100		2,680		—		100		2,680		2,780			1,069		1998		1998
095 Norfolk, NE		—			100		2,123		—		100		2,123		2,223			900		1997		1997
232 Pittsburgh, PA		—			470		2,615		333		470		2,948		3,418			411		1994		2009
165 Rocky Mount, NC		—			100		2,494		1		100		2,495		2,595			837		1998		1999
141 Rocky River, OH		—			760		6,963		—		760		6,963		7,723			2,751		1998		1999
059 Salina, KS		—			79		1,571		4		79		1,575		1,654			819		1994		1995
084 San Antonio, TX		—			100		1,900		—		100		1,900		2,000			815		1997		1997
092 San Antonio, TX		—			100		2,055		—		100		2,055		2,155			876		1997		1997
149 Shelby, NC		—			100		2,805		2		100		2,807		2,907			1,118		1998		1998
150 Spring Hill, FL		—			100		2,650		—		100		2,650		2,750			1,057		1998		1998
103 Springfield, OH		—			100		2,035		270		100		2,305		2,405			961		1997		1997
162 Sumter, SC		—			100		2,351		—		100		2,351		2,451			828		1998		1999
140 Tallahassee, FL		—			100		3,075		—		100		3,075		3,175			1,229		1998		1998
098 Tiffin, OH		—			100		2,435		—		100		2,435		2,535			1,023		1997		1997
088 Troy, OH		—			100		2,435		306		100		2,741		2,841			1,157		1997		1997
080 Tulsa, OK		—			200		1,650		—		200		1,650		1,850			718		1997		1997
093 Tulsa, OK		—			100		2,395		—		100		2,395		2,495			1,017		1997		1997
238 Tupelo, MS		—			1,170		8,230		—		1,170		8,230		9,400			870		2000		2010
075 Tyler, TX		—			100		1,800		—		100		1,800		1,900			788		1996		1996
202 Vacaville, CA		—			1,662		11,634		1,141		1,662		12,775		14,437			4,300		2002		2001
025 Vancouver, WA		—	(3)		100		2,785		—		100		2,785		2,885			1,252		1996		1996
091 Waco, TX		—			100		2,235		—		100		2,235		2,335			950		1997		1997
096 Wahoo, NE		—			100		2,318		—		100		2,318		2,418			975		1997		1997
023 Walla Walla, WA		2,035	(3)		100		1,940		—		100		1,940		2,040			884		1996		1996
108 Watauga, TX		—			100		1,668		—		100		1,668		1,768			705		1996		1997
109 Weatherford, OK		—			100		1,669		592		100		2,261		2,361			943		1996		1997
110 Wheelersburg, OH		—			29		2,435		—		29		2,435		2,464			1,013		1997		1997
259 Wichita, KS		—			730		—		9,131		730		9,131		9,861			64		2013		2012
076 Wichita Falls, TX		—			100		1,850		—		100		1,850		1,950			810		1996		1996
120 Wichita Falls, TX		—			100		2,750		—		100		2,750		2,850			1,147		1997		1997
264 Williamstown, NJ		—			711		8,649		—		711		8,649		9,360			253		2000		2012
265 Williamstown, NJ		—			711		6,637		—		711		6,637		7,348			215		2000		2012
138 Worthington, OH		—			—		6,102		—		—		6,102		6,102			4,398		1993		2001
139 Worthington, OH		—			—		3,402		—		—		3,402		3,402			2,475		1995		2001
099 York, NE		—			100		2,318		—		100		2,318		2,418			975		1997		1997
Assisted Living Properties		2,035			29,182		343,162		27,568		29,182		370,730		399,912			107,337
Range of Care Properties:
199 Brownsville, TX		—			302		1,856		835		302		2,691		2,993			783		2009		2004
168 Des Moines, IA(2)		—			115		2,096		1,433		115		3,529		3,644			1,710		1972		1999
26A Gardendale, AL		—			84		6,316		2,084		84		8,400		8,484			3,574		2009		1996
26B Gardendale, AL		—			16		1,234		—		16		1,234		1,250			644		1988		1996
194 Holyoke, CO		—			211		1,513		283		211		1,796		2,007			919		1963		2000
245 Newberry, SC		—			439		4,639		608		439		5,247		5,686			621		1995		2011
244 Newberry, SC		—			919		5,454		131		919		5,585		6,504			601		2001		2011
236 Wytheville, VA		—			647		12,692		—		647		12,692		13,339			2,037		1996		2010
Range of Care Properties		—			2,733		35,800		5,374		2,733		41,174		43,907			10,889
Other:
Schools:
237 Eagan, MN		—			1,110		1,789		275		1,110		2,064		3,174			392		1994		2010
159 Trenton, NJ		—			100		6,000		3,170		100		9,170		9,270			4,483		1998		1998
Schools		—			1,210		7,789		3,445		1,210		11,234		12,444			4,875
Land:
271 Howell, MI		—			420		—		—		420		—		420			—		N/A		2013
273 Richmond, MI		—			380		—		—		380		—		380			—		N/A		2013
274 Rochester Hills, MI		—			290		—		—		290		—		290			—		N/A		2013
275 Yale, MI		—			73		—		—		73		—		73			—		N/A		2013
Land		—			1,163		—		—		1,163		—		1,163			—
Other		—			2,373		7,789		3,445		2,373		11,234		13,607			4,875
Properties Under Development:
268 Littleton, CO		—			1,200		—		2,170		1,200		2,170		3,370			—		N/A		2013
269 Aurora, CO		—			850		—		655		850		655		1,505			—		N/A		2013
276 Westminster, CO		—			1,425		—		1,015		1,425		1,015		2,440			—		N/A		2013
268 Coldspring, KY		—			2,050		2,688		5,893		2,050		8,581		10,631			—		N/A		2012
267 Frisco, TX		—			1,000		—		2,486		1,000		2,486		3,486			—		N/A		2012
Properties Under Development		—			6,525		2,688		12,219		6,525		14,907		21,432			—
	$	2,035		$	80,993	$	771,649	$	84,975	$	80,993	$	856,624	$	937,617	(4)	$	218,700

⁽¹⁾

Depreciation is computed principally by the straight-line method for financial reporting purposes which generally range of a life from 5 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, 2013, our aggregate cost for Federal income tax purposes was $954,795.

        Activity for the years ended December 31, 2013, 2012 and 2011 is as follows:

	For the Year Ended December 31,
	2013			2012			2011
Reconciliation of real estate:
Carrying cost:
Balance at beginning of period	$	900,095		$	725,031		$	615,666
Acquisitions		19,040			166,750			106,135
Improvements		32,008			11,219			3,230
Conversion of mortgage loans into owned properties		—			—			—
Impairment charges		—			—			—
Cost of real estate sold		(13,526	)		(2,905	)		—
Ending balance	$	937,617		$	900,095		$	725,031
Accumulated depreciation:
Balance at beginning of period	$	198,548		$	178,196		$	158,709
Depreciation Expense		24,568			22,002			19,487
Conversion of mortgage loans into owned properties		—			—			—
Impairment charges		—			—			—
Cost of real estate sold		(4,416	)		(1,650	)		—
Ending balance	$	218,700		$	198,548		$	178,196