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REAL ESTATE INVESTMENTS
 9 Months Ended
Sep. 30, 2012
Real Estate Investments, Net [Abstract]  
Real Estate Investments
REAL ESTATE INVESTMENTS
The Company’s investments in real estate consisted of the following (dollars in thousands):
As of September 30, 2012
Property Type
 
Number of
Properties
 
Number of
Beds/Units
 
Total
Real Estate
at Cost
 
Accumulated
Depreciation
 
Total
Real Estate
Investments, Net
Skilled Nursing/Post-Acute
 
93

 
10,549

 
$
712,386

 
$
(118,949
)
 
$
593,437

Senior Housing
 
11

 
1,070

 
89,853

 
(9,494
)
 
80,359

Acute Care Hospital
 
1

 
70

 
61,640

 
(2,539
)
 
59,101

 
 
105

 
11,689

 
863,879

 
(130,982
)
 
732,897

Corporate Level
 
 
 
 
 
246

 
(89
)
 
157

 
 
 
 
 
 
$
864,125

 
$
(131,071
)
 
$
733,054

As of December 31, 2011
Property Type
 
Number of
Properties
 
Number of
Beds/Units
 
Total
Real Estate
at Cost
 
Accumulated
Depreciation
 
Total
Real Estate
Investments, Net
Skilled Nursing/Post-Acute
 
87

 
10,034

 
$
658,222

 
$
(99,570
)
 
$
558,652

Senior Housing
 
9

 
773

 
47,192

 
(8,140
)
 
39,052

Acute Care Hospital
 
1

 
70

 
61,640

 
(1,154
)
 
60,486

 
 
97

 
10,877

 
767,054

 
(108,864
)
 
658,190

Corporate Level
 
 
 
 
 
239

 
(52
)
 
187

 
 
 
 
 
 
$
767,293

 
$
(108,916
)
 
$
658,377

 
September 30, 2012 (1)
 
December 31, 2011
Building and improvements
$
704,277

 
$
626,877

Furniture and equipment
46,889

 
44,045

Land improvements
4,640

 
4,640

Land
108,319

 
91,731

 
864,125

 
767,293

Accumulated depreciation
(131,071
)
 
(108,916
)
 
$
733,054

 
$
658,377

(1) As of September 30, 2012, the purchase price allocations for acquisitions completed during the three months ended September 30, 2012 are preliminary pending the receipt of information necessary to complete the valuation of certain tangible and intangible assets and liabilities and therefore are subject to change.

Operating Leases
As of September 30, 2012, all of the Company’s real estate properties are leased under triple-net operating leases with expirations ranging from eight to 22 years. As of September 30, 2012, the leases have a weighted-average remaining term of 11 years. The leases include provisions to extend the lease terms and other negotiated terms and conditions. The Company, through its subsidiaries, retains substantially all of the risks and benefits of ownership of the real estate assets leased to the tenants. In addition, the Company may receive additional security under these operating leases in the form of security deposits from the lessee or guarantees from the parent of the lessee. As of September 30, 2012, 86 of the Company's 105 real estate properties were leased to subsidiaries of Sun Healthcare Group, Inc. (“Sun”).
The Company monitors the creditworthiness of its tenants by reviewing credit ratings (if available) and evaluating the ability of tenants to meet their lease obligations to the Company based on the tenants' financial performance, including the evaluation of any parent guarantees of tenant lease obligations. Because formal credit ratings may not be available for most of the Company's tenants, the primary basis for the Company's evaluation of the credit quality of its tenants (and more specifically the tenants' ability to pay their rent obligations to the Company) is the tenants' lease coverage ratios. These coverage ratios include EBITDAR to rent coverage and EBITDARM to rent coverage at the facility level and consolidated EBITDAR to total rent coverage at the parent guarantor level when such a guarantee exists (currently the Sun lease portfolio). EBITDARM is defined as EBITDAR before management fees. The Company obtains various financial and operational information from its tenants each month and reviews this information in conjunction with the above-described coverage metrics to determine trends and the operational and financial impact of the environment in the industry (including the impact of government reimbursement) and the management of the tenant's operations. These metrics help the Company identify potential areas of concern relative to its tenants' credit quality and ultimately the tenants' ability to generate sufficient liquidity to meet its obligations, including its obligation to continue to pay the rent due to the Company. For further discussion of the Company's tenant and revenue concentration, see “Note 11. Commitments and Contingencies—Concentration of Credit Risk.”
As of September 30, 2012, the future minimum rental income from the Company’s properties under non-cancelable operating leases is as follows (in thousands):
October 1, 2012 through December 31, 2012
$
26,302

2013
105,210

2014
105,210

2015
105,210

2016
105,210

Thereafter
733,959

 
$
1,181,101