Discontinued Operations

9 Months Ended

Sep. 30, 2012

Discontinued Operations

8. Discontinued Operations

As disclosed in Note 3, we sold our Thornton facility in Colorado and our Denham Springs facility in Louisiana in the 2012 third quarter and our HealthSouth Rehabilitation Hospital of Fayetteville in Fayetteville, Arkansas during the 2012 second quarter. In addition, our New Bedford facility was sold in October 2012, and at September 30, 2012, we reclassified the New Bedford facility as held for sale.

On December 30, 2011, we sold Mountain View Regional Rehabilitation Hospital in Morgantown, West Virginia to HealthSouth Corporation for $21.1 million, resulting in a gain of $2.3 million. We also sold Sherman Oaks Hospital in Sherman Oaks, California to Prime, on December 30, 2011 for $20.0 million, resulting in a gain of $3.1 million. Due to this sale, we wrote-off $1.2 million in straight-line rent receivables.

The following table presents the results of discontinued operations, which include the revenue and expenses of the previously-owned facilities noted above, for the three and nine months ended September 30, 2012 and 2011 (dollar amounts in thousands except per share/unit amounts):

	For the Three Months Ended September 30,					For the Nine Months Ended September 30,
	2012			2011		2012		2011
Revenues	$	(342	)	$	3,159	$	3,455	$	7,820
Gain on sale		8,726			—		7,280		5
Income		8,028			2,372		9,169		4,944
Earnings per share/unit — diluted	$	0.06		$	0.02	$	0.07	$	0.05