Mortgage Loans on Real Estate

12 Months Ended

Dec. 31, 2011

Mortgage Loans on Real Estate [Abstract]

Mortgage Loans on Real Estate

Schedule IV – Mortgage Loans on Real Estate at December 31, 2011

(Dollars in thousands)

Description	Interest Rate			Maturity Date		Periodic Payment Terms		Original Face Amount		Carrying Amount (6)		Balloon
Permanent Mortgage Loans:
Medical office building in Iowa		8.00	%		12/01/2020		(1)	$	3,700	$	3,230	$	3,230
Other office building in Iowa		7.70	%		01/10/2014		(2)		40,000		40,000		40,000
Medical office building in Florida		7.00	%		03/01/2016		(3)		2,700		2,680		2,562
Construction Mortgage Loans:
Medical office building in Iowa		11.00	%		03/31/2012		(2)		2,136		1,469		1,469
Medical office building in Texas		8.10	%(4)		05/01/2012		(5)		12,444		9,547		9,547
Medical office building in Oklahoma		6.75	%		12/31/2013		(1)		91,179		19,896		19,896
Orthopedic surgical facility in Missouri		6.75	%		12/31/2013		(1)		111,400		20,559		20,559
Total Mortgage Notes Receivable										$	97,381

(1) Interest only until maturity.

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

(3) Paid in monthly installments of principal and interest, based on a 30-year amortization schedule.

(4) The interest rate was 7.50% per annum through the construction completion date of May 1, 2011 and is 8.10% thereafter.

(5) The initial maturity date is 365 days after the construction completion date. If the payee has not exercised its purchase option and the maker exercises the extension option, the loan will be due on the second anniversary of the initial maturity date. Prepayments may be made at any time after the initial maturity date.

(6) A rollforward of Mortgage loans on real estate for the three years ended December 31, 2011 follows:

	Years Ended December 31,
(Dollars in thousands)	2011			2010			2009
Balance at beginning of period	$	36,599		$	31,008		$	59,001
Additions during period:
New or acquired mortgages		85,467			24,440			9,900
Amortization of loan origination fee (7)		184			153			—
Increased funding on existing mortgages		19,164			—			10,616
		104,815			24,593			20,516
Deductions during period:
Scheduled principal payments		(491	)		(27	)		(26	)
Principal repayments and reductions (8)		(17,232	)		(9,075	)		(12,747	)
Principal reductions due to acquisitions (9)		—			(9,900	)		(35,736	)
Conversions to land held for development (10)		(4,371	)		—			—
Mortgage eliminated in consolidation (9)		(21,939	)		—			—
		(44,033	)		(19,002	)		(48,509	)
Balance at end of period (11)	$	97,381		$	36,599		$	31,008

(7) 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 is now being eliminated in consolidation. See note 9 below.

(8) Principal repayments for the years ended December 31, 2011, 2010 and 2009 include unscheduled principal reductions on mortgage notes of $0.5 million, $1.9 million and $0.1 million, respectively.

(9) A consolidated joint venture, in which the Company owned an 80% controlling interest, purchased three medical office buildings in 2009 and one medical office building in 2010 which are located in Iowa. Construction of the medical office buildings was financed by the Company through a construction loan. Upon acquisition of the buildings 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.

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

(11) Total mortgage notes at December 31, 2011 had an aggregate total cost of $97.4 million for federal income tax purposes.