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Concentration of Credit Risk
 12 Months Ended
Dec. 31, 2013
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, 2013 and 2012:

 
   At
December 31, 2013		   At
December 31, 2012		  
 
   Investment(1)   % of Total   Investment(1)   % of Total  

Five Star

   $ 2,099,713     40%   $ 2,074,877     41%  

All others

     3,163,912     60%     2,944,738     59%  
                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

 

   $ 5,263,625     100%   $ 5,019,615     100%  
                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
                   


 

 
   Year Ended
December 31, 2013		   Year Ended
December 31, 2012		  
 
   Rental income   % of Total   Rental income   % of Total  

Five Star

   $ 203,719     44%   $ 200,912     45%  

All others

     255,661     56%     249,857     55%  
                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

 

   $ 459,380     100%   $ 450,769     100%  
                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
                   
(1)
Represents real and personal property leased to our tenants at historical cost after impairment losses and before depreciation. Excludes properties classified as held for sale.

As discussed above, Five Star is our former subsidiary. Rental income from Five Star represented 42% of our annualized rental income and the properties Five Star leases from us represented 40% of our investments, at cost, as of December 31, 2013. As of December 31, 2013, Five Star also managed a portfolio of 44 senior living communities for our account.

Subject to the information in the following paragraph, financial information about Five Star may be found on the SEC's website by entering Five Star's name at http://www.sec.gov/edgar/searchedgar/companysearch.html. Reference to Five Star's financial information on this external website is presented to comply with applicable accounting regulations of the SEC. Except for such financial information contained therein as is required to be included herein under such regulations, Five Star's public filings and other information located in external websites are not incorporated by reference into these financial statements.

In November 2013, Five Star announced that it will restate its financial results for 2011, 2012 and the first and second quarters of 2013 due to certain errors primarily relating to the accounting for non-cash income tax items in prior periods, and that its previously filed financial reports for the years ended December 31, 2011 and December 31, 2012 and for the periods ended March 31, 2013 and June 30, 2013 should no longer be relied upon. In addition, Five Star has not yet filed its Quarterly Report on Form 10-Q for the quarter ended September 30, 2013. Five Star also announced that it had determined that, as a result of the matters discussed above, Five Star has a material weakness in its internal control over financial reporting. We understand that Five Star is currently in the process of preparing restated financial statements for the fiscal years ended December 31, 2011 and December 31, 2012 and the quarters ended March 31, 2013 and June 30, 2013, which will be filed with the SEC on an amended Annual Report on Form 10-K for the year ended December 31, 2012 and amended Quarterly Reports on Form 10-Q for the quarters ended March 31, 2013 and June 30, 2013. We understand that Five Star is also in the process of preparing its Quarterly Report on Form 10-Q for the quarter ended September 30, 2013. However, there is no assurance as to when the restatements and updated SEC filings will be completed.

See Note 5 for further information relating to our leases and management arrangements with Five Star.