Investments In Marketable Securities

12 Months Ended

Dec. 31, 2011

Investments In Marketable Securities

Investments In Marketable Securities

NOTE 6. INVESTMENT IN MARKETABLE SECURITIES

    Our investments in marketable securities include available-for-sale securities and are reported at fair value.  Unrealized gains and losses on available-for-sale securities are recorded in stockholders' equity.  Realized gains and losses from securities sales are determined based upon specific identification of the securities.

Marketable securities consisted of the following at December 31, 2011 and 2010 (in thousands)

	2011				2010
	Amortized		Fair		Amortized		Fair
	Cost		Value		Cost		Value
Common and preferred stock of other REITs	$	4,183	$	11,364	$	5,830	$	21,156
NHC convertible preferred stock		-		-		1,316		1,320
	$	4,183	$	11,364	$	7,146	$	22,476

Gross unrealized gains related to available-for-sale securities were $7,181,000 and $15,330,000 at December 31, 2011 and 2010.

    During 2011, 2010 and 2009, we recognized $822,000, $1,267,000 and $1,448,000, respectively, of dividend and interest income from our marketable securities and have included these amounts in non-operating income in the Consolidated Statements of Income.

        We held an investment of 293,800 and 674,800 common shares of LTC with a fair value and carrying value of $9,067,000 and $18,948,000 at December 31, 2011 and 2010, respectively, which is included in marketable securities.  During 2011, we sold 381,000 shares of LTC for an average price of $29 per share.  As a result, we recorded $8,655,000 as a gain on the sale, $2,732,000 of which was a recovery of a previously recorded other-than-temporary impairment.  During 2009, we sold 100,000 common shares of LTC for an average price of $26 per share.  As a result, we recorded $1,931,000 as a gain on the sale, $717,000 of which was a recovery of a previously recorded other-than-temporary impairment.

    During 2011, we sold our 96,330 shares of National HealthCare Corporation's convertible preferred stock along with sales of other marketable securities and recorded gains of $151,000.

    During 2011, we recognized a gain of $1,090,000 on the sale of our 50,000 common shares of Nationwide Health Properties, Inc. ("NHP") in exchange for 39,330 common shares of Ventas, Inc. ("Ventas") as a result of the acquisition of NHP by Ventas.

    In 2009 we received cash redemptions of principal, and we recorded a partial recovery of $538,000 on liquidation of $8,491,000 in funds distributed to us in a final installment on our former position in the Columbia Strategic Cash Fund, which the Bank of America closed and liquidated in a three-year process.  The 2009 recovery was recognized in investment income and other in the Consolidated Statements of Income.