Note 2. Real Estate and Mortgage Notes Receivable Investments

The Company had investments of approximately $2.7 billion in 216 real estate properties and mortgage notes receivable as of June 30, 2011, excluding assets classified as held for sale and including an investment in one unconsolidated joint venture. The Company’s 203 owned real estate properties, excluding assets classified as held for sale, are located in 28 states and comprise approximately 13.4 million total square feet. The table below details the Company’s investments.


	Number of		Gross Investment					Square Feet
(Dollars and Square Feet in thousands)	Investments		Amount		%			Footage		%

Owned properties:
Master leases
Medical office/outpatient		27	$	220,777		7.9	%		1,204		9.0	%
Inpatient		14		328,788		12.0	%		1,072		7.9	%
Other		2		9,545		0.3	%		92		0.7	%

		43		559,110		20.2	%		2,368		17.6	%

Property operating agreements
Medical office/outpatient		8		83,065		3.0	%		624		4.7	%

		8		83,065		3.0	%		624		4.7	%

Multi-tenanted with occupancy leases
Medical office/outpatient		139		1,598,621		58.5	%		8,954		66.9	%
Medical office/outpatient - stabilization in progress		8		235,026		8.6	%		808		6.0	%
Other		2		19,648		0.7	%		256		1.9	%

		149		1,853,295		67.8	%		10,018		74.8	%
Construction in progress
Medical office/outpatient		3		83,968		3.1	%		378		2.9	%
Land held for development		—		20,773		0.8	%		—		—

		3		104,741		3.9	%		378		2.9	%

Corporate property		—		15,037		0.5	%		—		—


Total owned properties		203		2,615,248		95.4	%		13,388		100.0	%


Mortgage loans:
Medical office/outpatient		9		49,714		1.8	%
Inpatient		2		32,889		1.2	%
Other		1		40,000		1.5	%

		12		122,603		4.5	%
Unconsolidated joint venture:
Other		1		1,266		0.1	%

		1		1,266		0.1	%

Total real estate investments		216	$	2,739,117		100.0	%

Mortgage loans

A summary of the Company’s mortgage loans is shown in the table below:


	June 30, 2011						December 31, 2010
	Principal		Unamortized				Principal		Unamortized
(Dollars in thousands)	Balance		Fees		Total		Balance		Fees		Total

Construction mortgage loans	$	61,551	$	246	$	61,305	$	18,409	$	430	$	17,979

Other mortgage loans		61,298		—		61,298		18,620		—		18,620

	$	122,849	$	246	$	122,603	$	37,029	$	430	$	36,599

All of the Company’s mortgage notes receivable are classified as held-for-investment based on management’s intent and ability to hold the loans until maturity. As such, the loans are carried at amortized cost. At June 30, 2011, the Company has recorded allowances on interest receivables totaling $0.2 million on two construction mortgage notes receivable with principal balances totaling $4.4 million as of June 30, 2011 and has placed those mortgages on non-accrual status. Also, at June 30, 2011, approximately $72.9 million, or 59.5%, and $24.0 million, or 19.6%, respectively, of the Company’s mortgage notes receivable were due from affiliates of Ladco and United Trust Fund which is developing the two build-to-suit facilities affiliated with Mercy Health.