REAL ESTATE INVESTMENTS AND ACCUMULATED DEPRECIATION

12 Months Ended

Dec. 31, 2012

REAL ESTATE INVESTMENTS AND ACCUMULATED DEPRECIATION

SCHEDULE III — REAL ESTATE INVESTMENTS AND ACCUMULATED DEPRECIATION

December 31, 2012

Location	Type of Property	Initial Costs				Additions Subsequent to Acquisition					Cost at December 31, 2012(3)						Accumu- lated Depreci- ation		Date of Constr- uction		Date Acquired		Life on which depreci- ation in latest income state- ments is computed (Years)
		Land		Buildings		Improve- ments		Carrying Costs			Land		Buildings		Total
	(Amounts in thousands)
Covington, LA	Long term acute care hospital	$	821	$	10,238		—	$	14		$	821	$	10,252	$	11,073	$	1,944		1984		June 9, 2005		40
Redding, CA	Long term acute care hospital		—		19,952		—		4,361			1,629		22,684		24,313		4,054		1991		June 30, 2005		40
Bloomington, IN	Acute care general hospital		2,457		31,209		—		408			2,576		31,498		34,074		5,012		2006		August 8, 2006		40
Dallas, TX	Long term acute care hospital		1,000		13,589		—		368			1,421		13,536		14,957		2,143		2006		September 5, 2006		40
La Palma, CA	Acute care general hospital		937		10,907		—		3			937		10,910		11,847		1,682		1971		November 8, 2006		40
Anaheim, CA	Acute care general hospital		1,875		21,814		—		10			1,875		21,824		23,699		3,364		1964		November 8, 2006		40
Luling, TX	Long term acute care hospital		811		9,345		—		—			811		9,345		10,156		1,421		2002		December 1, 2006		40
San Antonio, TX	Rehabilitaion hospital		—		10,198		—		—			—		10,198		10,198		1,551		1987		December 1, 2006		40
Victoria, TX	Long term acute care hospital		625		7,197		—		—			625		7,197		7,822		1,095		1998		December 1, 2006		40
Houston, TX	Acute care general hospital		4,757		56,238		—		1,259			5,464		56,790		62,254		8,585		2006		December 1, 2006		40
Bensalem, PA	Acute care general hospital		6,911		38,185		—		(353	)		6,911		37,832		44,743		5,625		2006		March 19, 2007		40
Portland, OR	Long term acute care hospital		3,085		17,859		—		2,559			3,071		20,432		23,503		2,842		1964		April 18, 2007		40
San Diego, CA	Acute care general hospital		6,550		15,653		—		77			6,550		15,730		22,280		2,226		1964		May 9, 2007		40
Redding, CA	Acute care general hospital		1,555		53,863		—		13			1,555		53,876		55,431		7,306		1974		August 10, 2007		40
Houston, TX	Acute care general hospital		3,501		34,530		—		12,468			3,274		47,225		50,499		3,680		1960		August 10, 2007		40
Bennettsville, SC	Acute care general hospital		794		15,772		—		—			794		15,772		16,566		1,873		1984		April 1, 2008		40
Bossier City, LA	Long term acute care hospital		900		17,818		—		—			900		17,818		18,718		2,113		1982		April 1, 2008		40
Bristol, CT	Wellness Center		485		2,267		—		—			485		2,267		2,752		840		1975		April 22, 2008		10
Cheraw, SC	Acute care general hospital		657		19,576		—		—			657		19,576		20,233		2,324		1982		April 1, 2008		40
Detroit, MI	Long term acute care hospital		1,220		8,687		—		(365	)		1,220		8,322		9,542		1,037		1956		May 22, 2008		40
Enfield, CT	Wellness Center		384		2,257		—		—			384		2,257		2,641		837		1974		April 22, 2008		10
Fort Lauderdale, FL	Rehabilitaion hospital		3,499		21,939		—		1			3,499		21,940		25,439		2,565		1985		April 22, 2008		40
Garden Grove, CA	Acute care general hospital		5,502		10,748		—		51			5,502		10,799		16,301		1,115		1982		November 25, 2008		40
Garden Grove, CA	Medical Office Building		862		7,888		—		28			862		7,916		8,778		810		1982		November 25, 2008		40
Idaho Falls, ID	Acute care general hospital		1,822		37,467		—		4,665			1,822		42,132		43,954		4,856		2002		April 1, 2008		40
Newington, CT	Wellness Center		270		1,615		—		—			270		1,615		1,885		601		1979		April 22, 2008		10
Petersburg, VA	Rehabilitaion hospital		1,302		9,121		—		—			1,302		9,121		10,423		1,026		2006		July 1, 2008		40
West Valley City, UT	Acute care general hospital		5,516		58,314		—		—			5,516		58,314		63,830		6,817		1980		April 22, 2008		40
Poplar Bluff, MO	Acute care general hospital		2,659		38,694		—		1			2,660		38,694		41,354		4,523		1980		April 22, 2008		40
East Providence, RI	Wellness Center		209		1,265		—		—			209		1,265		1,474		471		1979		April 22, 2008		10
San Dimas, CA	Acute care general hospital		6,160		6,839		—		34			6,160		6,873		13,033		701		1972		November 25, 2008		40
San Dimas, CA	Medical Office Building		1,915		5,085		—		18			1,915		5,103		7,018		522		1979		November 25, 2008		40
West Springfield, MA	Wellness Center		583		3,185		—		—			583		3,185		3,768		1,186		1976		April 22, 2008		10
Tucson, AZ	Long term acute care hospital		920		6,078		—		—			920		6,078		6,998		722		1987		April 1, 2008		40
Warwick, RI	Wellness Center		1,265		759		—		—			1,265		759		2,024		282		1979		April 22, 2008		10
Webster, TX	Long term acute care hospital		988		10,432		—		1			988		10,433		11,421		1,239		1986		April 1, 2008		40
Wichita, KS	Rehabilitaion hospital		1,019		18,373		—		1			1,019		18,374		19,393		2,181		1992		April 4, 2008		40
Addison, TX	Rehabilitaion hospital		2,013		22,531		—		—			2,013		22,531		24,544		1,408		2008		June 17, 2010		40
Shenandoah, TX	Rehabilitaion hospital		2,033		21,943		—		—			2,033		21,943		23,976		1,371		2008		June 17, 2010		40
Richardson, TX	Rehabilitaion hospital		2,219		17,419		—		—			2,219		17,419		19,638		1,089		2008		June 17, 2010		40
Hill County, TX	Acute care general hospital		1,120		17,882		—		—			1,120		17,882		19,002		2,697		1980		September 17, 2010		40
Webster, TX	Long term acute care hospital		663		33,751		—		—			663		33,751		34,414		1,688		2004		December 21, 2010		40
Tomball, TX	Long term acute care hospital		1,298		23,982		—		—			1,298		23,982		25,280		1,199		2005		December 21, 2010		40
Gilbert, AZ	Acute care general hospital		150		15,553		—		—			150		15,553		15,703		778		2005		January 4, 2011		40
Corinth, TX	Long term acute care hospital		1,288		21,175		313		—			1,601		21,175		22,776		1,020		2008		January 31, 2011		40
Bayonne, NJ	Acute care general hospital		2,003		51,495		—		—			2,003		51,495		53,498		4,934		1918		February 4, 2011		20
San Diego, CA	Acute care general hospital		12,663		52,431		—		—			12,663		52,431		65,094		2,512		1973		February 9, 2011		40
Northland, MO	Long term acute care hospital		834		17,182		—		—			834		17,182		18,016		824		2007		February 14, 2011		40
DeSoto, TX	Long term acute care hospital		1,067		10,701		86		8			1,161		10,701		11,862		381		2008		July 18, 2011		40
New Braunfels, TX	Long term acute care hospital		1,100		7,883		—		—			1,100		7,883		8,983		246		2007		September 30, 2011		40
Hoboken, NJ	Acute care general hospital		1,387		44,351		—		—			1,387		44,351		45,738		2,507		1863		November 4, 2011		20
Florence, AZ	Acute care general hospital		900		28,636		—		—			900		28,636		29,536		524		2012		November 4, 2010		40
Hammond, LA	Long term acute care hospital		519		8,941		—		—			519		8,941		9,460		19		2003		December 14, 2012		40
San Antonio, TX	Acute care general hospital		2,248		5,390		—		—			2,248		5,390		7,638		31		2012		October 14, 2011		40
		$	107,321	$	1,056,202	$	399	$	25,630		$	110,364	$	1,079,188	$	1,189,552	$	114,399

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

	December 31, 2012			December 31, 2011			December 31, 2010
COST
Balance at beginning of period	$	1,191,096		$	990,635		$	934,601
Acquisitions		9,460			240,474			146,854
Transfers from construction in progress		37,174			—			—
Additions		19,971			1,011			1,709
Dispositions		(68,149	)		(40,460	)		(92,529	)
Other		—			(564	)		—
Balance at end of period	$	1,189,552		$	1,191,096	(1)	$	990,635	(1)

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

	December 31, 2012			December 31, 2011 (1)			December 31, 2010
ACCUMULATED DEPRECIATION
Balance at beginning of period	$	93,430		$	68,662		$	51,638
Depreciation		31,026			29,523			22,664
Depreciation on disposed property		(10,057	)		(4,755	)		(5,640	)
Balance at end of period	$	114,399		$	93,430	(2)	$	68,662	(2)

(1) Includes real estate cost included in real estate held for sale of $68,148 and $109,173 at December 31, 2011 and 2010, respectively. Excludes intangible lease assets that are included in real estate held for sale of $2,194 and $3,555 for 2011 and 2010, respectively.

(2) Includes accumulated depreciation in real estate held for sale of $8,964 and $10,910 for 2011 and 2010, respectively. Excludes accumulated amortization related to intangible lease assets that are included in real estate held for sale of $1,585 and $1,941 for 2011 and 2010, respectively.

(3) The aggregate cost for federal income tax purposes is $1,183,464.