Notes Receivable

6 Months Ended

Jun. 30, 2012

Notes Receivable

Notes Receivable

3.Notes Receivable

During the three months ended June 30, 2012, we funded $53,000 on a 9.0% construction and term loan in which we committed to provide up to $667,000 for capital improvements at one skilled nursing property we own and lease to the borrower. Upon the earlier of the full funding of the $667,000 or December 31, 2012, construction distribution under this loan will cease and this loan will fully amortize to maturity in May 2018.

During the three and six months ended June 30, 2012, we funded $932,000 and $1,966,000, respectively, under an 8.5% construction and term loan in which we committed to provide up to $2,500,000 for capital improvements at two senior housing properties we own and lease to the borrower. Upon the earlier of the full funding of the $2,500,000 or December 31, 2012, construction distribution under this loan will cease and this loan will fully amortize to maturity in November 2017. During the six months ended June 30, 2012 and 2011, we received $191,000 and $359,000, respectively, in principal payments under various loans and line of credit agreements with certain operators.  At June 30, 2012 we had six loans outstanding with a carrying value of $2,647,000 at a weighted average interest rate of 8.6%.