XML 60 R15.htm IDEA: XBRL DOCUMENT v2.4.0.6
Concentration of Credit Risk
 12 Months Ended
Dec. 31, 2012
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, 2012 and 2011:

 
   At
December 31, 2012		   At
December 31, 2011		  
 
   Investment(1)   % of Total   Investment(1)   % of Total  

Five Star

   $ 2,181,338     42%   $ 2,150,722     46%  

All others

     3,001,969     58%     2,570,869     54%  
                   

 

   $ 5,183,307     100%   $ 4,721,591     100%  
                   


 

 
   Year Ended
December 31, 2012		   Year Ended
December 31, 2011		  
 
   Rental income   % of Total   Rental income   % of Total  

Five Star

   $ 200,912     44%   $ 195,409     46%  

All others

     259,899     56%     226,757     54%  
                   

 

   $ 460,811     100%   $ 422,166     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. Rental income from Five Star represented 44% of our annualized rental income and the properties Five Star leases from us represent 42% of our investments, at cost, as of December 31, 2012. As of December 31, 2012, Five Star also manages a portfolio of 39 senior living communities. These properties leased and managed by Five Star are included in our short and long term residential care communities segment. The following tables present summary financial information for Five Star for the years ended December 31, 2012, 2011 and 2010, as reported in its Annual Report on Form 10-K for the year ended December 31, 2012.


Summary Financial Information of Five Star Quality Care, Inc.

 
   For the Year Ended December 31,  
 
   2012   2011   2010  

Operations

                    

Total revenues

   $ 1,350,878   $ 1,205,150   $ 1,133,976  

Operating income

     20,858     17,111     25,975  

Income from continuing operations

     13,428     67,485     25,354  

Net income

     24,945     64,201     23,492  


 

 
   For the Year Ended December 31,  
 
   2012   2011   2011  

Cash Flows

                    

Cash provided by operating activities

   $ 56,755   $ 40,295   $ 106,906  

Net cash (used in) provided by discontinued operations

     (6,018 )   3,417     662  

Cash used in investing activities

     (3,265 )   (126,756 )   (37,277 )

Cash (used in) provided by financing activities

     (51,208 )   90,648     (54,538 )

Change in cash and cash equivalents

     (3,736 )   7,604     15,753  

Cash and cash equivalents at beginning of period

     28,374     20,770     5,017  

Cash and cash equivalents at end of period

     24,638     28,374     20,770  


 

 
   As of December 31,    
  
 
   2012   2011    
  

Financial Position

                    

Current assets

   $ 137,314   $ 148,252        

Non-current assets

     434,042     435,225        

Total indebtedness

     71,132     122,713        

Current liabilities

     183,960     189,331        

Non-current liabilities

     80,591     113,952        

Total shareholders' equity

     306,805     280,194        

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 to show the source of the information only, and the other information in Five Star's Annual Report on Form 10-K is not incorporated by reference into these financial statements. See Note 5 for further information regarding our leases with Five Star.