SCHEDULE III — REAL ESTATE INVESTMENTS AND ACCUMULATED DEPRECIATION

December 31, 2010


						Additions Subsequent to Acquisition																Life on which depreciation in latest income statements is
	Type of	Initial Costs						Carrying			Cost at December 31, 2010						Accumulated		Date of		Date	computed
Location	Property	Land		Buildings		Improvements		Costs			Land		Buildings		Total		Depreciation		Construction		Acquired	(Years)
(Dollar amounts in thousands)
Thornton, CO	Long term acute care hospital	$	2,130	$	6,013	$	2,237	$	—		$	2,130	$	8,250	$	10,380	$	1,068		1962	August 17, 2004		40
New Bedford, MA	Long term acute care hospital		1,400		19,772		256		—			1,400		20,028		21,428		3,159		1942	August 17, 2004		40
Covington, LA	Long term acute care hospital		821		10,238		—		14			821		10,252		11,073		1,431		1984	June 9, 2005		40
Denham Springs, LA	Long term acute care hospital		429		5,340		—		49			429		5,389		5,818		686		1960	June 9, 2005		40
Redding, CA	Long term acute care hospital		—		19,952		—		4,361			1,629		22,684		24,313		2,919		1991	June 30, 2005		40
Sherman Oaks, CA	Acute care general hospital		5,290		13,587		—		31			5,290		13,618		18,908		1,706		1956	December 30, 2005		40
Bloomington, IN	Acute care general hospital		2,457		31,209		—		408			2,576		31,498		34,074		3,435		2006	August 8, 2006		40
Dallas, TX	Long term acute care hospital		1,000		13,589		—		368			1,421		13,536		14,957		1,466		2006	September 5, 2006		40
Huntington Beach, CA	Acute care general hospital		937		10,907		—		3			937		10,910		11,847		1,136		1965	November 8, 2006		40
La Palma, CA	Acute care general hospital		937		10,907		—		3			937		10,910		11,847		1,136		1971	November 8, 2006		40
Anaheim, CA	Acute care general hospital		1,875		21,814		—		10			1,875		21,824		23,699		2,273		1964	November 8, 2006		40
Luling, TX	Long term acute care hospital		811		9,345		—		—			811		9,345		10,156		954		2002	December 1, 2006		40
San Antonio, TX	Rehabilitation hospital		—		10,198		—		—			—		10,198		10,198		1,041		1987	December 1, 2006		40
Victoria, TX	Long term acute care hospital		625		7,197		—		—			625		7,197		7,822		735		1998	December 1, 2006		40
Houston, TX	Acute care general hospital		4,757		56,238		—		1,259			5,464		56,790		62,254		5,742		2006	December 1, 2006		40
Bensalem, PA	Acute care general hospital		6,911		38,185		—		(352	)		6,912		37,832		44,744		3,670		2006	March 19, 2007		40
Portland, OR	Long term acute care hospital		3,085		17,859		—		2,559			3,071		20,432		23,503		1,815		1964	April 18, 2007		40
San Diego, CA	Acute care general hospital		6,550		15,653		—		77			6,550		15,730		22,280		1,439		1964	May 9, 2007		40
Redding, CA	Acute care general hospital		1,555		53,863		—		13			1,555		53,876		55,431		4,613		1974	August 10, 2007		40
Houston, TX	Acute care general hospital		3,501		34,530		—		(7,319	)		3,274		27,438		30,712		2,312		1960	August 10, 2007		40
Bennettsville, SC	Acute care general hospital		794		15,772		—		—			794		15,772		16,566		1,085		1984	April 1, 2008		40
Bossier City, LA	Long term acute care hospital		900		17,818		—		—			900		17,818		18,718		1,222		1982	April 1, 2008		40
Bristol, CT	Wellness Center		485		2,267		—		—			485		2,267		2,752		429		1975	April 22, 2008		10
Cheraw, SC	Acute care general hospital		657		19,576		—		—			657		19,576		20,233		1,345		1982	April 1, 2008		40
Detroit, MI	Long term acute care hospital		1,220		8,687		—		(365	)		1,220		8,322		9,542		624		1956	May 22, 2008		40
Enfield, CT	Wellness Center		384		2,257		—		—			384		2,257		2,641		427		1974	April 22, 2008		10
Fayetteville, AR	Rehabilitation hospital		909		18,332		—		—			909		18,332		19,241		1,146		1991	July 14, 2008		40
Fort Lauderdale, FL	Rehabilitation hospital		3,499		21,939		—		—			3,499		21,940		25,439		1,465		1985	April 22, 2008		40
Garden Grove, CA	Acute care general hospital		5,502		10,748		—		52			5,502		10,799		16,301		574		1982	November 25, 2008		40
Garden Grove, CA	Medical Office Building		862		7,888		—		28			862		7,916		8,778		413		1982	November 25, 2008		40


						Additions Subsequent to Acquisition															Life on which depreciation in latest income statements is
	Type of	Initial Costs						Carrying		Cost at December 31, 2010						Accumulated		Date of		Date	computed
Location	Property	Land		Buildings		Improvements		Costs		Land		Buildings		Total		Depreciation		Construction		Acquired	(Years)
(Dollar amounts in thousands)
Idaho Falls, ID	Acute care general hospital		1,822		37,467		—		4,665		1,822		42,132		43,954		2,741		2002	April 1, 2008		40
Morgantown, WV	Rehabilitation hospital		—		21,552		—		—		—		21,552		21,552		2,010		1989	May 19, 2008		40
Newington, CT	Wellness Center		270		1,615		—		—		270		1,615		1,885		308		1979	April 22, 2008		10
Petersburg, VA	Rehabilitation hospital		1,302		9,121		—		—		1,302		9,121		10,423		570		2006	July 1, 2008		40
West Valley City, UT	Acute care general hospital		5,516		58,314		—		—		5,516		58,314		63,830		3,895		1980	April 22, 2008		40
Poplar Bluff, MO	Acute care general hospital		2,659		38,694		—		—		2,659		38,694		41,353		2,584		1980	April 22, 2008		40
East Providence, RI	Wellness Center		209		1,265		—		—		209		1,265		1,474		241		1979	April 22, 2008		10
San Dimas, CA	Acute care general hospital		6,160		6,839		—		34		6,160		6,873		13,033		358		1972	November 25, 2008		40
San Dimas, CA	Medical Office Building		1,915		5,085		—		18		1,915		5,103		7,018		266		1979	November 25, 2008		40
West Springfield, MA	Wellness Center		583		3,185		—		—		583		3,185		3,768		608		1976	April 22, 2008		10
Tucson, AZ	Long term acute care hospital		920		6,078		—		—		920		6,078		6,998		418		1987	April 1, 2008		40
Warwick, RI	Wellness Center		1,265		759		—		—		1,265		759		2,024		144		1979	April 22, 2008		10
Webster, TX	Long term acute care hospital		988		10,432		—		1		988		10,433		11,421		717		1986	April 1, 2008		40
Wichita, KS	Rehabilitation hospital		1,019		18,373		—		1		1,019		18,374		19,393		1,262		1992	April 4, 2008		40
Addison, TX	Rehabilitation hospital		2,013		22,531		—		—		2,013		22,531		24,544		282		2008	June 17, 2010		40
Shenandoah, TX	Rehabilitation hospital		2,033		21,943		—		—		2,033		21,943		23,976		274		2008	June 17, 2010		40
Richardson, TX	Rehabilitation hospital		2,219		17,419		—		—		2,219		17,419		19,638		218		2008	June 17, 2010		40
Hill County, TX	Acute care general hospital		1,120		17,882		—		—		1,120		17,882		19,002		300		1980	September 17, 2010		15
Webster, TX	Long term acute care hospital		664		33,751		—		—		664		33,751		34,414		—		2004	December 21, 2010		40
Tomball, TX	Long term acute care hospital		1,298		23,982		—		—		1,298		23,982		25,280		—		2005	December 21, 2010		40

		$	94,258	$	887,967	$	2,493	$	5,918	$	96,894	$	893,741	$	990,635	$	68,662

The changes in total real estate assets including real estate held for sale but excluding construction in progress, intangible lease asset and mortgage loans, for the years ended:


	December 31, 2010			December 31, 2009			December 31, 2008
COST
Balance at beginning of period	$	934,601		$	943,700		$	614,088
Acquisitions		146,854			421			418,766
Transfers from construction in progress		—			—			2,475
Additions		1,709			5,550			308
Dispositions		(92,529	)		(15,070	)		(85,648	)
Other		—			—			(6,289	)

Balance at end of period	$	990,635		$	934,601	(1)	$	943,700	(1)

The changes in accumulated depreciation including real estate assets held for sale for the years ended:


	December 31, 2010			December 31, 2009			December 31, 2008
ACCUMULATED DEPRECIATION
Balance at beginning of period	$	51,638		$	30,581		$	20,214
Depreciation		22,664			21,389			18,118
Depreciation on disposed property		(5,640	)		(332	)		(7,751	)

Balance at end of period	$	68,662		$	51,638	(2)	$	30,581	(2)

(1)	Includes real estate cost included in real estate held for sale of $72,691 and $87,807 for 2009 and 2008, respectively. Excludes intangible lease assets that are included in real estate held for sale of $24,487 and $24,615 for 2009 and 2008, respectively.

(2)	Includes accumulated depreciation in real estate held for sale of $3,673 and $2,396 for 2009 and 2008 respectively. Excludes accumulated amortization related to intangible lease assets that are included in real estate held for sale of $3,532 and $2,020 for 2009 and 2008, respectively.