Mortgage Loans on Real Estate as of December 31, 2012

(Dollars in thousands)



Description	Interest Rate	Maturity Date	Periodic Payment Terms		Original Face Amount		Carrying Amount (3)		Balloon
Permanent Mortgage Loans:
Office building in Iowa	7.70%	1/10/2014	(1	)	$	40,000	$	40,000	$	40,000
Medical office building in Florida	7.50%	4/10/2015	(2	)	3,750		3,750		3,750
Construction Mortgage Loans:
Medical office building in Oklahoma	6.75%	12/31/2013	(2	)	91,179		56,842		56,842
Orthopedic surgical facility in Missouri	6.75%	12/31/2013	(2	)	111,400		61,599		61,599
Total Mortgage Notes Receivable							$	162,191


(1)	Interest only until maturity. Principal payments may be made during term without penalty with remaining principal balance due at maturity.


(2)	Interest only until maturity.


(3)	A rollforward of Mortgage loans on real estate for the three years ended December 31, 2012 follows:



	Years Ended December 31,
(Dollars in thousands)	2012			2011			2010
Balance at beginning of period	$	97,381		$	36,599		$	31,008
Additions during period:
New or acquired mortgages	11,200			85,467			24,440
Amortization of loan origination fee (4)	—			184			153
Increased funding on existing mortgages	78,297			19,164			—
	89,497			104,815			24,593
Deductions during period:
Scheduled principal payments	(16		)	(491		)	(27		)
Principal repayments and reductions (5)	(14,812		)	(17,232		)	(9,075		)
Principal reductions due to acquisitions (6) (7)	(9,859		)	—			(9,900		)
Conversions to land held for development (8)	—			(4,371		)	—
Mortgage eliminated in consolidation (9)	—			(21,939		)	—
	(24,687		)	(44,033		)	(19,002		)
Balance at end of period (10)	$	162,191		$	97,381		$	36,599


(4)	Represents the amortization of a loan origination fee prior to the consolidation of the building securing the mortgage note. The mortgage note and related loan amortization fee was eliminated in consolidation until it was repaid in January 2012.


(5)	Principal repayments for the years ended December 31, 2011 and 2010 include unscheduled principal reductions on mortgage notes of $0.5 million and $1.9 million, respectively.

(6)

A consolidated joint venture, in which the Company owned an 80% controlling interest, purchased one medical office building in 2010 which is located in Iowa. Construction of the medical office building was financed by the Company through a construction loan. Upon acquisition of the building by the joint venture, the construction loan was partially converted to an additional equity investment in the joint venture by the Company with the balance remaining converting to a permanent mortgage note payable to the Company by the consolidated joint venture, which is eliminated in consolidation in the Company’s Consolidated Financial Statements.


(7)	In May 2012, the Company purchased a medical office building in Texas. Concurrent with the acquisition, the Company's construction mortgage note receivable totaling $9.9 million, which secured the building, was repaid.


(8)	The Company received deeds in lieu of trust on two land parcels located in Iowa during 2011.

(9)

In the third quarter of 2011, the Company began consolidating a construction project upon its conclusion that it was the primary beneficiary of the VIE that was constructing the facility. As a result of consolidation of the VIE, the Company also eliminated the construction mortgage note and related interest on its Consolidated Financial Statements. The construction mortgage note was repaid in full in January 2012.


(10)	Total mortgage notes as of December 31, 2012 had an aggregate total cost of $162.2 million for federal income tax purposes.