Equity

9 Months Ended

Sep. 30, 2011

Equity

Equity

(13) Equity

Preferred Stock

At September 30, 2011, the Company had two series of preferred stock outstanding, “Series E” and “Series F” preferred stock. The Series E and Series F preferred stock have no stated maturity, are not subject to any sinking fund or mandatory redemption and are not convertible into any other securities of the Company. Holders of each series of preferred stock generally have no voting rights, except under limited conditions, and all holders are entitled to receive cumulative preferential dividends based upon each series’ respective liquidation preference. To preserve the Company’s status as a REIT, each series of preferred stock is subject to certain restrictions on ownership and transfer. Dividends are payable quarterly in arrears on the last day of March, June, September and December. The Series E and Series F preferred stock are currently redeemable at the Company’s option.

The following table lists the Series E cumulative redeemable preferred stock cash dividends paid and declared by the Company during the nine months ended September 30, 2011:

Declaration Date	Record Date	Amount Per Share		Dividend Payable Date
January 27	March 15	$	0.45313	March 31
April 28	June 15	$	0.45313	June 30
July 28	September 15	$	0.45313	September 30

The following table lists the Series F cumulative redeemable preferred stock cash dividends paid and declared by the Company during the nine months ended September 30, 2011:

Declaration Date	Record Date	Amount Per Share		Dividend Payable Date
January 27	March 15	$	0.44375	March 31
April 28	June 15	$	0.44375	June 30
July 28	September 15	$	0.44375	September 30

On October 27, 2011, the Company announced that its Board declared a quarterly cash dividend of $0.45313 per share on its Series E cumulative redeemable preferred stock and $0.44375 per share on its Series F cumulative redeemable preferred stock. These dividends will be paid on December 30, 2011 to stockholders of record as of the close of business on December 15, 2011.

Common Stock

The following table lists the common stock cash dividends paid and declared by the Company during the nine months ended September 30, 2011:

Declaration Date	Record Date	Amount Per Share		Dividend Payable Date
January 27	February 10	$	0.48	February 23
April 28	May 9	$	0.48	May 24
July 28	August 8	$	0.48	August 23

On October 27, 2011, the Company announced that its Board declared a quarterly cash dividend of $0.48 per share. The common stock cash dividend will be paid on November 22, 2011 to stockholders of record as of the close of business on November 7, 2011.

On December 20, 2010, the Company completed a $1.472 billion public offering of 46 million shares of common stock at a price of $32.00 per share. The Company received total net proceeds of $1.413 billion, which it used, together with proceeds from its January 2011 senior unsecured notes offering, March 2011 common stock offerings and the reinvestment of proceeds from the repayment of the Company’s existing HCR ManorCare debt investments, to finance the HCR ManorCare Acquisition.

In March 2011, the Company completed a $1.273 billion public offering of 34.5 million shares of common stock at a price of $36.90 per share. The Company received total net proceeds of $1.235 billion, which it used, together with proceeds from its December 2010 equity offering, January 2011 senior unsecured notes offering and the reinvestment of proceeds from the repayment of the Company’s existing HCR ManorCare debt investments, to finance the HCR ManorCare Acquisition.

The following is a summary of the Company’s other common stock issuances:

	Nine Months Ended September 30,
	2011	2010
	(shares in thousands)
Dividend Reinvestment and Stock Purchase Plan (“DRIP”)	1,533	869
Conversion of DownREIT units	30	130
Exercise of stock options	733	150
Restricted stock awards(1)	—	221
Vesting of restricted stock units(1)	228	265

(1)Issued under the Company’s 2006 Performance Incentive Plan.

Accumulated Other Comprehensive Income (Loss) (“AOCI”)

The following is a summary of the Company’s accumulated other comprehensive loss (in thousands):

	September 30,			December 31,
	2011			2010
Unrealized losses in available for sale securities	$	(10,152	)	$	—
Unrealized losses on cash flow hedges, net	(15,526		)	(10,312		)
Supplemental Executive Retirement Plan minimum liability	(2,199		)	(2,299		)
Cumulative foreign currency translation adjustment	(606		)	(626		)
Total accumulated other comprehensive loss	$	(28,483	)	$	(13,237	)

Noncontrolling Interests

At September 30, 2011, there were 4.2 million non-managing member units outstanding in five DownREIT LLCs, for which the Company is the managing member. At September 30, 2011, the carrying and fair values of these DownREIT units were $171 million and $208 million, respectively.

Total Comprehensive Income

The following table provides a reconciliation of comprehensive income (in thousands):

	Three Months Ended September 30,						Nine Months Ended September 30,
	2011			2010			2011			2010
Net income	$	175,471		$	26,173		$	483,707		$	198,869
Other comprehensive loss	(14,650		)	(2,874		)	(15,246		)	(5,292		)
Total comprehensive income	$	160,821		$	23,299		$	468,461		$	193,577