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Concentration of Credit Risk
 12 Months Ended
Dec. 31, 2011
Concentration of Credit Risk  
Concentration of Credit Risk

Note 9. Concentration of Credit Risk

The assets included in these financial statements are primarily income producing senior housing and healthcare related real estate located throughout the United States. The following is a summary of the assets leased and rents earned from our significant lessee as of and for the years ended December 31, 2011 and 2010:

 
   At
December 31, 2011 		  At
December 31, 2010 		 
 
   Investment(1)   % of Total   Investment(1)   % of Total  

Five Star

   $ 2,150,722     46%   $ 2,032,155     54%  

All others

     2,570,869     54%     1,729,557     46%  
                   

 

   $ 4,721,591     100%   $ 3,761,712     100%  
                   


 

 
   Year Ended
December 31, 2011 		  Year Ended
December 31, 2010 		 
 
   Rental income   % of Total   Rental income   % of Total  

Five Star

   $ 195,409     46%   $ 189,682     56%  

All others

     226,757     54%     150,431     44%  
                   

 

   $ 422,166     100%   $ 340,113     100%  
                   
(1)
Represents real and personal property leased to our tenants at historical cost after impairment losses and before depreciation.

As discussed above, Five Star is our former subsidiary and both we and Five Star have management contracts with RMR. Five Star is the lessee of 46% of our investments, at cost, as of December 31, 2011. Five Star is included in our short and long term residential care communities segment. Five Star also manages a portfolio of 22 senior living communities for our account. The foregoing table does not include the revenues we realize from these Managed Communities as a Five Star obligation because Five Star is not obligated to pay the rent for the Managed Communities. The following tables present summary financial information for Five Star for the years ended December 31, 2011, 2010 and 2009, as reported in its Annual Report on Form 10-K.


Summary Financial Information of Five Star Quality Care, Inc.

 
   For the Year Ended December 31,  
 
   2011   2010   2009  

Operations

                    

Total revenues

   $ 1,281,764   $ 1,213,261   $ 1,142,740  

Operating income

     21,348     26,124     10,532  

Income from continuing operations

     68,277     25,562     40,420  

Net income

     64,201     23,492     38,330  


 

 
   For the Year Ended December 31,  
 
   2011   2010   2009  

Cash Flows

                    

Cash provided by operating activities

   $ 44,414   $ 109,779   $ 28,836  

Net cash used in discontinued operations

     (156 )   (1,823 )   (1,393 )

Cash used in investing activities

     (127,302 )   (37,665 )   (24,709 )

Cash provided by (used in) financing activities

     90,648     (54,538 )   (13,855 )

Change in cash and cash equivalents

     7,604     15,753     (11,121 )

Cash and cash equivalents at the beginning of the period

     20,770     5,017     16,138  

Cash and cash equivalents at the end of the period

     28,374     20,770     5,017  


 

 
   As of December 31,    
  
 
   2011   2010    
  

Financial Position

                    

Current assets

   $ 141,516   $ 135,965        

Non-current assets

     441,961     243,829        

Total indebtedness

     122,713     45,729        

Current liabilities

     189,331     137,911        

Non-current liabilities

     113,952     77,116        

Total shareholders' equity

     280,194     164,767        

The summary financial information of Five Star is presented to comply with applicable accounting regulations of the SEC. References in these financial statements to the Annual Report on Form 10-K for Five Star are included as textual references only, and the information in Five Star's Annual Report on Form 10-K is not incorporated by reference into these financial statements.