Investments In Direct Financing Leases

12 Months Ended

Dec. 31, 2011

Capital Leases, Net Investment in Direct Financing Leases [Abstract]

Investments In Direct Financing Leases

Investment in a Direct Financing Lease

The Company’s investment in a direct financing lease relates to the Company’s master lease of 27 public charter school properties. Investment in a direct financing lease, net represents estimated unguaranteed residual values of leased assets and net unpaid rentals, less related deferred income. The following table summarizes the carrying amounts of investment in a direct financing lease, net as of December 31, 2011 and 2010 (in thousands):

	2011			2010
Total minimum lease payments receivable	$	683,653		$	699,069
Estimated unguaranteed residual value of leased assets	215,987			213,885
Less deferred income (1)	(666,021		)	(686,521		)
Investment in a direct financing lease, net	$	233,619		$	226,433

 (1) Deferred income is net of $1.8 million of initial direct costs at December 31, 2011 and 2010.

Additionally, the Company has determined that no allowance for losses was necessary at December 31, 2011 and 2010.

The Company’s direct financing lease has expiration dates ranging from approximately 20 to 23 years. Future minimum rentals receivable on this direct financing lease at December 31, 2011 are as follows (in thousands):

	Amount
Year:
2012	$	23,340
2013	24,041
2014	24,762
2015	25,505
2016	26,270
Thereafter	559,735
Total	$	683,653

During the year ended December 31, 2011, the Company completed development of three public charter school properties that are leased to HighMark. At September 30, 2011, these investments totaling $21.0 million were included in investment in direct financing lease, net, in the consolidated balance sheet. Due to a subsequent lease amendment reducing the lease term from 25 to 20 years, at December 31, 2011, these investments have been reclassed to rental properties, net, in the accompanying consolidated balance sheet.