SCHEDULE III — REAL ESTATE INVESTMENTS AND ACCUMULATED DEPRECIATION

December 31, 2013


Location	Type of Property	Initial Costs				Additions Subsequent to Acquisition					Cost at December 31, 2013						Accumu- lated Depreci- ation		Encum- brances		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)
Baden-Wurttemburg, Germany	Rehabilitation hospital	$	—	$	11,968	$	—	$	—		$	—	$	11,968	$	11,968	$	29				1994		November 29, 2013		40
Saxony, Germany	Rehabilitation hospital		471		25,956		—		—			471		25,956		26,427		73				1996		November 29, 2013		40
Rhineland-Pflaz, Germany	Rehabilitation hospital		4,017		18,989		—		—			4,017		18,989		23,006		48				1960		November 29, 2013		40
Brandenburg, Germany	Rehabilitation hospital		438		22,615		—		—			438		22,615		23,053		68				1994		November 29, 2013		40
Hesse, Germany	Rehabilitation hospital		116		6,625		—		—			116		6,625		6,741		19				1981		November 29, 2013		40
Hesse, Germany	Rehabilitation hospital		3,894		18,730		—		—			3,894		18,730		22,624		53				1977		November 29, 2013		40
Rhineland-Pflaz, Germany	Rehabilitation hospital		—		37,579		—		—			—		37,579		37,579		103				1992		November 29, 2013		40
Saxony, Germany	Rehabilitation hospital		682		18,907		—		—			682		18,907		19,589		48				1904, 1995		November 29, 2013		40
Rhineland-Pflaz, Germany	Rehabilitation hospital		921		8,281		—		—			921		8,281		9,202		21				1980		November 29, 2013		40
Rhineland-Pflaz, Germany	Rehabilitation hospital		7,382		20,382		—		—			7,382		20,382		27,764		67				1930		November 29, 2013		40
Baden-Wurttemburg, Germany	Rehabilitation hospital		4,327		7,372		—		—			4,327		7,372		11,699		25				1986		November 29, 2013		40
Little Elm, TX	Acute care general hospital		1,241		2,963		—		—			1,241		2,963		4,204		6				2013		December 1, 2013		40
Port Arthur, TX	Acute care general hospital		2,178		74,225		—		—			2,178		74,225		76,403		464				2005		September 26, 2013		40
West Monroe, LA	Acute care general hospital		10,555		71,429		—		—			10,555		71,429		81,984		449				1962		September 26, 2013		40
Hausman, TX	Acute care general hospital		1,500		8,958		—		—			1,500		8,958		10,458		169				2013		March 1, 2013		40
Lafayette, IN	Rehabilitation hospital		800		14,968		—		—			800		14,968		15,768		328				2013		February 1, 2013		40
Mesa, AZ	Acute care general hospital		3,875		101,248		—		—			3,875		101,248		105,123		633				2007		September 26, 2013		40
Overlook, TX	Acute care general hospital		2,452		9,666		—		—			2,452		9,666		12,118		203				2012		February 1, 2013		40
Post Falls, ID	Rehabilitation hospital		417		12,175		—		—			417		12,175		12,592		25				2013		December 31, 2013		40
Spartanburg, SC	Rehabilitation hospital		1,135		15,717		—		—			1,135		15,717		16,852		145				2013		August 1, 2013		40
Victoria, TX	Rehabilitation hospital		—		9,355		—		—			—		9,355		9,355		—				2013		December 31, 2013		40
Covington, LA	Long term acute care hospital		821		10,238		—		14			821		10,252		11,073		2,200		—		1984		June 9, 2005		40
Redding, CA	Long term acute care hospital		—		19,952		—		4,361			1,629		22,684		24,313		4,621		—		1991		June 30, 2005		40
Bloomington, IN	Acute care general hospital		2,457		31,209		—		408			2,576		31,498		34,074		5,800		—		2006		August 8, 2006		40
Dallas, TX	Long term acute care hospital		1,000		13,589		—		368			1,421		13,536		14,957		2,481		—		2006		September 5, 2006		40
La Palma, CA	Acute care general hospital		937		10,907		—		3			937		10,910		11,847		1,954		—		1971		November 8, 2006		40
Anaheim, CA	Acute care general hospital		1,875		21,814		—		10			1,875		21,824		23,699		3,910		—		1964		November 8, 2006		40
Luling, TX	Long term acute care hospital		811		9,345		—		—			811		9,345		10,156		1,655		—		2002		December 1, 2006		40
Victoria, TX	Long term acute care hospital		625		7,197		—		—			625		7,197		7,822		1,275		—		1998		December 1, 2006		40
Houston, TX	Acute care general hospital		4,757		56,238		—		1,259			5,464		56,790		62,254		10,006		41,200		2006		December 1, 2006		40
Bensalem, PA	Acute care general hospital		6,911		38,185		—		(353	)		6,911		37,832		44,743		6,602		—		2006		March 19, 2007		40
Portland, OR	Long term acute care hospital		3,085		17,859		—		2,559			3,071		20,432		23,503		3,356		—		1964		April 18, 2007		40
San Diego, CA	Acute care general hospital		6,550		15,653		—		77			6,550		15,730		22,280		2,619		—		1964		May 9, 2007		40
Redding, CA	Acute care general hospital		1,555		53,863		—		13			1,555		53,876		55,431		8,653		—		1974		August 10, 2007		40
Houston, TX	Acute care general hospital		3,501		34,530		7,433		12,468			3,274		54,658		57,932		4,948		—		1960		August 10, 2007		40
Bennettsville, SC	Acute care general hospital		794		15,772		—		—			794		15,772		16,566		2,268		—		1984		April 1, 2008		40
Bossier City, LA	Long term acute care hospital		900		17,818		—		—			900		17,818		18,718		2,559		—		1982		April 1, 2008		40
Bristol, CT	Wellness Center		485		2,267		—		—			485		2,267		2,752		1,047		—		1975		April 22, 2008		10
Cheraw, SC	Acute care general hospital		657		19,576		—		—			657		19,576		20,233		2,814		—		1982		April 1, 2008		40
Detroit, MI	Long term acute care hospital		1,220		8,687		—		(365	)		1,220		8,322		9,542		1,243		—		1956		May 22, 2008		40
Enfield, CT	Wellness Center		384		2,257		—		—			384		2,257		2,641		1,043		—		1974		April 22, 2008		10
Fort Lauderdale, FL	Rehabilitation hospital		3,499		21,939		—		1			3,499		21,940		25,439		3,114		—		1985		April 22, 2008		40
Garden Grove, CA	Acute care general hospital		5,502		10,748		—		51			5,502		10,799		16,301		1,385		—		1982		November 25, 2008		40
Garden Grove, CA	Medical Office Building		862		7,888		—		28			862		7,916		8,778		1,007		—		1982		November 25, 2008		40
Idaho Falls, ID	Acute care general hospital		1,822		37,467		—		4,665			1,822		42,132		43,954		5,913		—		2002		April 1, 2008		40
Newington, CT	Wellness Center		270		1,615		—		—			270		1,615		1,885		748		—		1979		April 22, 2008		10
Petersburg, VA	Rehabilitation hospital		1,302		9,121		—		—			1,302		9,121		10,423		1,254		—		2006		July 1, 2008		40
West Valley City, UT	Acute care general hospital		5,516		58,314		—		—			5,516		58,314		63,830		8,278		—		1980		April 22, 2008		40
Poplar Bluff, MO	Acute care general hospital		2,659		38,694		—		1			2,660		38,694		41,354		5,493		—		1980		April 22, 2008		40
East Providence, RI	Wellness Center		209		1,265		—		—			209		1,265		1,474		586		—		1979		April 22, 2008		10
San Dimas, CA	Acute care general hospital		6,160		6,839		—		34			6,160		6,873		13,033		874		—		1972		November 25, 2008		40
San Dimas, CA	Medical Office Building		1,915		5,085		—		18			1,915		5,103		7,018		650		—		1979		November 25, 2008		40
West Springfield, MA	Wellness Center		583		3,185		—		—			583		3,185		3,768		1,475		—		1976		April 22, 2008		10
Warwick, RI	Wellness Center		1,265		759		—		—			1,265		759		2,024		351		—		1979		April 22, 2008		10
Wichita, KS	Rehabilitation hospital		1,019		18,373		—		1			1,019		18,374		19,393		2,641		8,678		1992		April 4, 2008		40
Addison, TX	Rehabilitation hospital		2,013		22,531		—		—			2,013		22,531		24,544		1,971				2008		June 17, 2010		40
Shenandoah, TX	Rehabilitation hospital		2,033		21,943		—		—			2,033		21,943		23,976		1,920				2008		June 17, 2010		40
Richardson, TX	Rehabilitation hospital		2,219		17,419		—		—			2,219		17,419		19,638		1,524				2008		June 17, 2010		40
Hill County, TX	Acute care general hospital		1,120		17,882		—		—			1,120		17,882		19,002		3,897				1980		September 17, 2010		40
Webster, TX	Long term acute care hospital		663		33,751		—		—			663		33,751		34,414		2,531				2004		December 21, 2010		40
Tomball, TX	Long term acute care hospital		1,298		23,982		—		—			1,298		23,982		25,280		1,799				2005		December 21, 2010		40
Gilbert, AZ	Acute care general hospital		150		15,553		—		—			150		15,553		15,703		1,166				2005		January 4, 2011		40
Corinth, TX	Long term acute care hospital		1,288		21,175		313		—			1,601		21,175		22,776		1,570				2008		January 31, 2011		40
Bayonne, NJ	Acute care general hospital		2,003		51,495		—		—			2,003		51,495		53,498		7,510				1918		February 4, 2011		20
San Diego, CA	Acute care general hospital		12,663		52,432		—		—			12,663		52,432		65,095		3,823				1973		February 9, 2011		40
Northland, MO	Long term acute care hospital		834		17,182		—		—			834		17,182		18,016		1,253				2007		February 14, 2011		40
DeSoto, TX	Long term acute care hospital		1,067		10,701		86		8			1,161		10,701		11,862		655				2008		July 18, 2011		40
New Braunfels, TX	Long term acute care hospital		1,100		7,883		—		—			1,100		7,883		8,983		443				2007		September 30, 2011		40
Hoboken, NJ	Acute care general hospital		1,387		44,351		—		—			1,387		44,351		45,738		4,730				1863		November 4, 2011		20
Florence, AZ	Acute care general hospital		900		28,462		—		—			900		28,462		29,362		1,236				2012		November 4, 2010		40
Hammond, LA	Long term acute care hospital		519		8,941		—		—			519		8,941		9,460		242				2003		December 14, 2012		40
San Antonio, TX	Acute care general hospital		2,248		5,880		—		—			2,249		5,879		8,128		166				2012		October 14, 2011		40

		$	151,814	$	1,547,919	$	7,832	$	25,629		$	154,858	$	1,578,336	$	1,733,194	$	144,235	$	49,878

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


	December 31, 2013			December 31, 2012			December 31, 2011
COST
Balance at beginning of period	$	1,189,552		$	1,191,096		$	990,635
Acquisitions		483,162			9,460			240,474
Transfers from construction in progress		81,347			37,174			—
Additions		7,749			19,971			1,011
Dispositions		(28,616	)		(68,149	)		(40,460	)
Other		—			—			(564	)

Balance at end of period	$	1,733,194		$	1,189,552	(3)	$	1,191,096	(1)

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


	December 31, 2013			December 31, 2012			December 31, 2011
ACCUMULATED DEPRECIATION
Balance at beginning of period	$	114,399		$	93,430		$	68,662
Depreciation		33,349			31,026			29,523
Depreciation on disposed property		(3,513	)		(10,057	)		(4,755	)

Balance at end of period	$	144,235		$	114,399	(4)	$	93,430	(2)

(1)	Includes real estate cost included in real estate held for sale of $96,766 at December 31, 2011. Excludes intangible lease assets that are included in real estate held for sale of $3,012 for 2011.

(2)	Includes accumulated depreciation in real estate held for sale of $11,807 for 2011. Excludes accumulated amortization related to intangible lease assets that are included in real estate held for sale of $1,949 for 2011.

(3)	Includes real estate cost included in real estate held for sale of $28,617 at December 31, 2012. Excludes intangible lease assets that are included in real estate held for sale of $858 for 2012.

(4)	Includes in accumulated depreciation in real estate held for sale of $3,511 for 2012. Excludes accumulated amortization related to intangible lease assets that are included in real estate held for sale of $426 for 2012.

(5)	The aggregate cost for federal income tax purposes is $2,155,240.