0000899749
2010-01-01
2010-12-31
0000899749
2010-03-31
0000899749
2009-12-31
0000899749
2010-01-01
2010-03-31
0000899749
2011-03-31
0000899749
2010-12-31
0000899749
2010-06-30
0000899749
2011-04-30
0000899749
2011-01-01
2011-03-31
iso4217:USD
xbrli:shares
xbrli:shares
iso4217:USD
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<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>Note 1. Summary of Significant Accounting Policies</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt"><i>Business Overview</i>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     Healthcare Realty Trust Incorporated (the “Company”) is a real estate investment trust
(“REIT”) that owns, acquires, manages, finances, and develops income-producing real estate
properties associated primarily with the delivery of outpatient healthcare services throughout the
United States. The Company had investments of approximately $2.7 billion in 213 real estate
properties and mortgages as of March 31, 2011, excluding assets classified as held for sale and
including an investment in one unconsolidated joint venture. The Company’s 202 owned real estate
properties, excluding assets classified as held for sale, are comprised of six facility types,
located in 28 states, totaling approximately 13.3 million square feet. As of March 31, 2011, the
Company provided property management services to approximately 9.2 million square feet nationwide.
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><i>Principles of Consolidation</i>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The Condensed Consolidated Financial Statements include the accounts of the Company, its
wholly-owned subsidiaries, joint ventures, and partnerships where the Company controls the
operating activities. During the first quarter of 2011, the Company purchased the remaining
noncontrolling interest in its two consolidated joint ventures: (1) HR Ladco Holdings, LLC in which
the Company held an 80% interest and (2) Lakewood MOB, LLC in which the Company held a 98.75%
interest. The noncontrolling interest holder in both joint ventures was Ladco MPF I, LLC. Prior
to the purchase, the noncontrolling interests were reported as equity and the related net income
(loss) attributable to the noncontrolling interests as part of consolidated net income in the
Company’s Condensed Consolidated Financial Statements. The Company’s investment in its one
unconsolidated joint venture, which is carried at cost, is included in other assets with its related income recognized in
other income (expense) in the Company’s Condensed Consolidated Financial Statements.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The Condensed Consolidated Financial Statements have been prepared in accordance with
accounting principles generally accepted in the United States of America (“GAAP”) for interim
financial information and with the instructions to Form 10-Q and Article 10 of Regulation <br />
S-X.
Accordingly, they do not include all of the information and footnotes required by GAAP for complete
financial statements that are included in the Company’s Annual Report on Form 10-K for the year
ended December 31, 2010. Management believes, however, that all adjustments of a normal, recurring
nature considered necessary for a fair presentation have been included. All material intercompany
transactions and balances have been eliminated in consolidation.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     This interim financial information should be read in conjunction with the financial statements
and Management’s Discussion and Analysis of Financial Condition and Results of Operations included
in this report and in the Company’s Annual Report on Form 10-K for the year ended December 31,
2010. This interim financial information does not necessarily represent or indicate what the
operating results will be for the year ending December 31, 2011 for many reasons including, but not
limited to, acquisitions, dispositions, capital financing transactions, changes in interest rates
and the effects of other trends and uncertainties.
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><i>Use of Estimates in the Condensed Consolidated Financial Statements</i>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     Preparation of the Condensed Consolidated Financial Statements in accordance with GAAP
requires management to make estimates and assumptions that affect amounts reported in the Condensed
Consolidated Financial Statements and accompanying notes. Actual results may differ from those
estimates.
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><i>Segment Reporting</i>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The Company owns, acquires, manages, finances, and develops outpatient, healthcare-related
properties. The Company is managed as one operating segment, rather than multiple operating
segments, for internal reporting purposes and for internal decision-making. Therefore, the Company
discloses its operating results in a single segment.
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<b>
</b>
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<div align="left" style="font-size: 10pt; margin-top: 12pt"><i>Reclassifications</i>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     Certain amounts in the Company’s Condensed Consolidated Financial Statements for prior periods
have been reclassified to conform to the current period presentation. Assets sold or held for sale,
and related liabilities, have been reclassified in the Company’s Condensed Consolidated Balance
Sheets, and the operating results of those assets have been reclassified from continuing to
discontinued operations for all periods presented. The Company also reclassified one property from
discontinued operations to continuing operations as discussed in Note 3.
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><i>Revenue Recognition</i>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 1%"><u><i>General</i></u>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The Company recognizes revenue when it is realized or realizable and earned. There are four
criteria that must be met before a company may recognize revenue, including: persuasive evidence
that an arrangement exists; delivery has occurred or services have been rendered (i.e., the tenant
has taken possession of and controls the physical use of the leased asset); the price has been
fixed or is determinable; and collectability is reasonably assured. Income received but not yet
earned is deferred until such time it is earned. Deferred revenue is included in other liabilities
in the Company’s Condensed Consolidated Balance Sheets.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The Company derives most of its revenues from its real estate and mortgage notes receivable
portfolio. The Company’s rental and mortgage interest income is recognized based on contractual
arrangements with its tenants, sponsors or borrowers. These contractual arrangements generally
fall into three categories: leases, mortgage notes receivable, and property operating agreements as
described in the following paragraphs. The Company may accrue late fees based on the contractual
terms of a lease or note. Such fees, if accrued, are included in master lease rent, property
operating income, or mortgage interest income in the Company’s Condensed Consolidated Statements of
Operations, based on the type of contractual agreement.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 1%"><u><i>Rental Income</i></u>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     Rental income related to non-cancelable operating leases is recognized as earned over the life
of the lease agreements on a straight-line basis. The Company’s lease agreements generally include
provisions for stated annual increases or increases based on a Consumer Price Index. The Company’s
multi-tenant office lease arrangements also generally allow for operating expense recoveries which
the Company calculates and bills to its tenants. Rental income from properties under master lease
arrangements with tenants is included in master lease rent and rental income from properties with
multi-tenant office lease arrangements is included in property operating income in the Company’s
Condensed Consolidated Statements of Operations.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 1%"><u><i>Interest Income</i></u>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     Mortgage interest income and notes receivable interest income are recognized based on the
interest rates and maturity date or amortization period specific to each note. Loan origination
fees received are deferred and are recognized in mortgage interest income over the estimated life
of the loan.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 1%"><u><i>Property Operating Income</i></u>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The Company has eight real estate properties subject to property operating agreements that
obligate the sponsoring health system to provide to the Company a minimum return on the Company’s
investment in the property in exchange for the right to be involved in the operating decisions of
the property, including tenancy. If the minimum return is not achieved through normal operations
of the property, the sponsor is responsible to the Company for the shortfall under the terms of
these agreements. The Company recognizes any shortfall income in other operating income in the
Company’s Condensed Consolidated Statements of Operations.
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><i>Accumulated Other Comprehensive Loss</i>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     A company must include certain items in comprehensive income (loss), such as foreign currency
translation adjustments, minimum pension liability adjustments, and unrealized gains or losses on
available-for-sale securities. The Company’s accumulated other comprehensive loss includes pension
liability adjustments, which are generally recognized in the fourth quarter of each year.
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><i>Income Taxes</i>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The Company intends at all times to qualify as a REIT under Sections 856 through 860 of the
Internal Revenue Code of 1986, as amended. Accordingly, no provision has been made for federal
income taxes. The Company must
distribute at least 90% per annum of its REIT taxable income to its stockholders and meet other
requirements to continue to qualify as a REIT.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The Company must pay certain state income taxes which are generally included in general and
administrative expense in the Company’s Condensed Consolidated Statements of Operations.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The Company classifies interest and penalties related to uncertain tax positions, if any, in
its Condensed Consolidated Financial Statements as a component of general and administrative
expense.
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><i>Incentive Plans</i>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The Company has various outstanding employee and non-employee stock-based awards, including
restricted stock issued under its incentive plans, and options granted to employees pursuant to its
employee stock purchase plan (the “Employee Stock Purchase Plan”). The Company recognizes
compensation expense for these awards based on the grant date fair value of the awards ratably over
the requisite service period.
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><i>Accounting for Defined Benefit Pension Plans</i>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The Company has a retirement plan (the “Executive Retirement Plan”) under which three of the
Company’s founding officers may receive certain benefits upon retirement. The plan is unfunded and
benefits will be paid from cash flows of the Company. The maximum annual benefits payable under
the Executive Retirement Plan have been frozen at $896,000, subject to cost-of-living adjustments.
The Company recognizes pension expense on an accrual basis over an estimated service period. The
Company calculates pension expense and the corresponding liability annually on the measurement date
(December 31) which requires certain assumptions, such as a discount rate and the recognition of
actuarial gains and losses.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The Company also had a pension plan under which the Company’s non-employee directors would
receive certain retirement benefits. That plan was terminated in 2009 and during 2010 lump sum
payments were made to those directors who participated in the plan. See Note 8 for further
discussion.
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><i>Operating Leases</i>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     As described in more detail in the Company’s Annual Report on Form 10-K for the year ended
December 31, 2010, the Company is obligated under operating lease agreements consisting primarily
of its corporate office lease and various ground leases related to the Company’s real estate
investments where the Company is the lessee.
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><i>Discontinued Operations and Assets Held for Sale</i>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The Company sells properties from time to time due to a variety of factors, including among
other things, market conditions or the exercise of purchase options by tenants. The operating
results of properties that have been sold or are held for sale are reported as discontinued
operations in the Company’s Condensed Consolidated Statements of Operations. A company must report
discontinued operations when a component of an entity has either been disposed of or is deemed to
be held for sale if (i) both the operations and cash flows of the component have been or will be
eliminated from ongoing operations as a result of the disposal transaction, and (ii) the entity
will not have any significant continuing involvement in the operations of the component after the
disposal transaction. Long-lived assets classified as held for sale in the Company’s Condensed
Consolidated Balance Sheets are reported at the lower of their carrying amount or their estimated
fair value less cost to sell. Further, depreciation of these assets ceases at the time the assets
are classified as discontinued operations. Losses resulting from the sale or anticipated sale of
such properties are characterized as impairment losses relating to discontinued operations in the
Company’s Condensed Consolidated Statements of Operations. See Note 3 for a detail of the
Company’s assets held for sale and discontinued operations.
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><i>Land Held for Development</i>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     Land held for development, which is included in construction in progress in the Company’s
Condensed Consolidated Balance Sheets, includes parcels of land owned by the Company, upon which
the Company intends to develop and own outpatient healthcare facilities.
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<b>
</b>
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<div align="left" style="font-size: 10pt; margin-top: 12pt"><i>Fair Value Measurements</i>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     Fair value is defined as the price that would be received to sell an asset, or paid to
transfer a liability, in an orderly transaction between market participants. In calculating fair
value, a company must maximize the use of observable market inputs, minimize the use of
unobservable market inputs and disclose in the form of an outlined hierarchy the details of such
fair value measurements.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     A hierarchy of valuation techniques is defined to determine whether the inputs to a fair value
measurement are considered to be observable or unobservable in a marketplace. Observable inputs
reflect market data obtained from independent sources, while unobservable inputs reflect the
Company’s market assumptions. This hierarchy requires the use of observable market data when
available. These inputs have created the following fair value hierarchy:
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     o <i>Level 1 </i>— quoted prices for identical instruments in active markets;
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     o <i>Level 2 </i>— quoted prices for similar instruments in active markets; quoted prices for
identical or similar instruments in markets that are not active; and model-derived valuations in
which significant inputs and significant value drivers are observable in active markets; and
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     o <i>Level 3 </i>— fair value measurements derived from valuation techniques in which one or more
significant inputs or significant value drivers are unobservable.
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><i>Real Estate Properties</i>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     Real estate properties are recorded at cost. Cost at the time of the acquisition is
allocated between land, buildings, tenant improvements, lease and other intangibles, and personal
property based upon estimated fair values at the time of acquisition.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The Company also capitalizes direct construction and development costs, including interest, to
all consolidated real estate properties that are under construction and substantive activities are
ongoing to prepare the asset for its intended use. The Company considers a building as
substantially complete and held available for occupancy upon the completion of tenant improvements,
but no later than one year from cessation of major construction activity. Costs incurred after a
project is substantially complete and ready for its intended use, or after development activities
have ceased, are expensed as incurred.
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><i>Mortgage Loans</i>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     Loans receivable may be classified as held-for-investment or held-for-sale based on a
lender’s intent and ability to hold the loans. Loans held-for-investment are carried at amortized
cost and are reduced by valuation allowances for estimated credit losses as necessary. Loans
held-for-sale are carried at the lower of cost or fair value. All of the Company’s loans
receivable are classified as held-for-investment.
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><i>Allowance for Doubtful Accounts and Credit Losses</i>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     Management monitors the aging and collectibility of its accounts receivable balances on an
ongoing basis. Whenever deterioration in the timeliness of payment from a tenant or sponsor is
noted, management investigates and determines the reason(s) for the delay. Considering all
information gathered, management’s judgment is exercised in determining whether a receivable is
potentially uncollectible and, if so, how much or what percentage may be uncollectible. Among the
factors management considers in determining collectibility are: the type of contractual arrangement
under which the receivable was recorded (e.g., a triple net lease, a gross lease, a sponsor
guaranty agreement, or some other type of agreement); the tenant’s reason for slow payment;
industry influences under which the tenant operates; evidence of willingness and ability of the
tenant to pay the receivable; credit-worthiness of the tenant; collateral, security deposit,
letters of credit or other monies held as security; tenant’s historical payment pattern; other
contractual agreements between the tenant and the Company; relationship between the tenant and the
Company; the state in which the tenant operates; and the existence of a guarantor and the
willingness and ability of the guarantor to pay the receivable. Considering these factors and
others, management concludes whether all or some of the aged receivable balance is likely
uncollectible. Upon determining that some portion of the receivable is likely uncollectible, the
Company records a provision for bad debts for the amount it expects will be uncollectible. When
efforts to collect a receivable are exhausted, the receivable amount is charged off against the
allowance.
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<b>
</b>
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<div align="left" style="font-size: 10pt; margin-top: 6pt">     The Company also evaluates collectibility of its mortgage notes and notes receivable and
records an allowance on the notes as necessary. A loan is impaired when it is probable that a
creditor will be unable to collect all amounts due according to the contractual terms of the loan
as scheduled, including both contractual interest and principal payments. If a mortgage loan or
note receivable becomes past due, the Company will review the specific circumstances and may
discontinue the accrual of interest on the loan. The loan is not returned to accrual status until
the debtor has demonstrated the ability to continue debt service in accordance with the contractual
terms.
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<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>Note 2. Real Estate and Mortgage Notes Receivable Investments</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The Company had investments of approximately $2.7 billion in 213 real estate properties and
mortgage notes receivable as of March 31, 2011, excluding assets classified as held for sale and
including an investment in one unconsolidated joint venture. The Company’s 202 owned real estate
properties, excluding assets classified as held for sale, are located in 28 states and comprise
approximately 13.3 million total square feet. The table below details the Company’s investments.
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="40%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">Number of</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="7" style="border-bottom: 1px solid #000000">Gross Investment</td>
<td style="border-bottom: 1px solid #000000"> </td>
<td nowrap="nowrap" align="center" colspan="7" style="border-bottom: 1px solid #000000">Square Feet</td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td nowrap="nowrap" align="left"><i>(Dollars and Square Feet in thousands)</i></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">Investments</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">Amount</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">%</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">Footage</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">% </td>
</tr>
<!-- End Table Head -->
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<tr style="font-size: 1px">
<td colspan="21" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px"><b>Owned properties:</b>
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px"><i>Master leases</i>
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:45px; text-indent:-15px">Medical office
</div></td>
<td> </td>
<td> </td>
<td align="right">11</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">100,242</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">3.5</td>
<td nowrap="nowrap">%</td>
<td> </td>
<td> </td>
<td align="right">548</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">4.1</td>
<td nowrap="nowrap">%</td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:45px; text-indent:-15px">Physician clinics
</div></td>
<td> </td>
<td> </td>
<td align="right">13</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">106,063</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">3.9</td>
<td nowrap="nowrap">%</td>
<td> </td>
<td> </td>
<td align="right">602</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">4.6</td>
<td nowrap="nowrap">%</td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:45px; text-indent:-15px">Surgical facilities
</div></td>
<td> </td>
<td> </td>
<td align="right">6</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">162,631</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">6.1</td>
<td nowrap="nowrap">%</td>
<td> </td>
<td> </td>
<td align="right">382</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">2.9</td>
<td nowrap="nowrap">%</td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:45px; text-indent:-15px">Specialty outpatient
</div></td>
<td> </td>
<td> </td>
<td align="right">2</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">4,852</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">0.2</td>
<td nowrap="nowrap">%</td>
<td> </td>
<td> </td>
<td align="right">23</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">0.1</td>
<td nowrap="nowrap">%</td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:45px; text-indent:-15px">Inpatient rehab
</div></td>
<td> </td>
<td> </td>
<td align="right">11</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">178,755</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">6.7</td>
<td nowrap="nowrap">%</td>
<td> </td>
<td> </td>
<td align="right">735</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">5.5</td>
<td nowrap="nowrap">%</td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:45px; text-indent:-15px">Other
</div></td>
<td> </td>
<td> </td>
<td align="right">4</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">31,726</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">1.2</td>
<td nowrap="nowrap">%</td>
<td> </td>
<td> </td>
<td align="right">284</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">2.1</td>
<td nowrap="nowrap">%</td>
</tr>
<tr style="font-size: 1px">
<td> </td>
<td> </td>
<td colspan="19" nowrap="nowrap" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td align="right">47</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">584,269</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">21.6</td>
<td nowrap="nowrap">%</td>
<td> </td>
<td> </td>
<td align="right">2,574</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">19.3</td>
<td nowrap="nowrap">%</td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px"><i>Property operating agreements</i>
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:45px; text-indent:-15px">Medical office
</div></td>
<td> </td>
<td> </td>
<td align="right">8</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">84,062</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">3.1</td>
<td nowrap="nowrap">%</td>
<td> </td>
<td> </td>
<td align="right">624</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">4.7</td>
<td nowrap="nowrap">%</td>
</tr>
<tr style="font-size: 1px">
<td> </td>
<td> </td>
<td colspan="19" nowrap="nowrap" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td align="right">8</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">84,062</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">3.1</td>
<td nowrap="nowrap">%</td>
<td> </td>
<td> </td>
<td align="right">624</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">4.7</td>
<td nowrap="nowrap">%</td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px"><i>Multi-tenanted with occupancy leases</i>
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:45px; text-indent:-15px">Medical office
</div></td>
<td> </td>
<td> </td>
<td align="right">115</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,487,288</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">55.4</td>
<td nowrap="nowrap">%</td>
<td> </td>
<td> </td>
<td align="right">8,196</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">61.8</td>
<td nowrap="nowrap">%</td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:45px; text-indent:-15px">Medical office — stabilization in progress
</div></td>
<td> </td>
<td> </td>
<td align="right">8</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">233,366</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">8.7</td>
<td nowrap="nowrap">%</td>
<td> </td>
<td> </td>
<td align="right">808</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">6.1</td>
<td nowrap="nowrap">%</td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:45px; text-indent:-15px">Medical office — construction in progress
</div></td>
<td> </td>
<td> </td>
<td align="right">3</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">77,818</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">2.9</td>
<td nowrap="nowrap">%</td>
<td> </td>
<td> </td>
<td align="right">405</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">3.1</td>
<td nowrap="nowrap">%</td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:45px; text-indent:-15px">Physician clinics
</div></td>
<td> </td>
<td> </td>
<td align="right">14</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">46,295</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">1.7</td>
<td nowrap="nowrap">%</td>
<td> </td>
<td> </td>
<td align="right">296</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">2.2</td>
<td nowrap="nowrap">%</td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:45px; text-indent:-15px">Surgical facilities
</div></td>
<td> </td>
<td> </td>
<td align="right">4</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">35,303</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">1.3</td>
<td nowrap="nowrap">%</td>
<td> </td>
<td> </td>
<td align="right">212</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">1.6</td>
<td nowrap="nowrap">%</td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:45px; text-indent:-15px">Specialty outpatient
</div></td>
<td> </td>
<td> </td>
<td align="right">1</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">2,562</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">0.1</td>
<td nowrap="nowrap">%</td>
<td> </td>
<td> </td>
<td align="right">10</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">0.1</td>
<td nowrap="nowrap">%</td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:45px; text-indent:-15px">Other
</div></td>
<td> </td>
<td> </td>
<td align="right">2</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">11,210</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">0.4</td>
<td nowrap="nowrap">%</td>
<td> </td>
<td> </td>
<td align="right">144</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">1.1</td>
<td nowrap="nowrap">%</td>
</tr>
<tr style="font-size: 1px">
<td> </td>
<td> </td>
<td colspan="19" nowrap="nowrap" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td align="right">147</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,893,842</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">70.5</td>
<td nowrap="nowrap">%</td>
<td> </td>
<td> </td>
<td align="right">10,071</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">76.0</td>
<td nowrap="nowrap">%</td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px"><i>Land held for development</i>
</div></td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">20,772</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">0.8</td>
<td nowrap="nowrap">%</td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px"><i>Corporate property</i>
</div></td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">15,018</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">0.6</td>
<td nowrap="nowrap">%</td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td> </td>
<td> </td>
<td colspan="19" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">35,790</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">1.4</td>
<td nowrap="nowrap">%</td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td> </td>
<td> </td>
<td colspan="19" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px"><b>Total owned properties</b>
</div></td>
<td> </td>
<td> </td>
<td align="right">202</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">2,597,963</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">96.6</td>
<td nowrap="nowrap">%</td>
<td> </td>
<td> </td>
<td align="right">13,269</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">100.0</td>
<td nowrap="nowrap">%</td>
</tr>
<tr style="font-size: 1px">
<td> </td>
<td> </td>
<td colspan="19" nowrap="nowrap" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px"><b>Mortgage loans:</b>
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Medical office
</div></td>
<td> </td>
<td> </td>
<td align="right">6</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">14,702</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">0.5</td>
<td nowrap="nowrap">%</td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Physician clinics
</div></td>
<td> </td>
<td> </td>
<td align="right">2</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">17,620</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">0.7</td>
<td nowrap="nowrap">%</td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Surgical facilities
</div></td>
<td> </td>
<td> </td>
<td align="right">1</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">15,849</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">0.6</td>
<td nowrap="nowrap">%</td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Other
</div></td>
<td> </td>
<td> </td>
<td align="right">1</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">40,000</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">1.5</td>
<td nowrap="nowrap">%</td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td> </td>
<td> </td>
<td colspan="19" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td align="right">10</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">88,171</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">3.3</td>
<td nowrap="nowrap">%</td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px"><b>Unconsolidated joint venture:</b>
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Other
</div></td>
<td> </td>
<td> </td>
<td align="right">1</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,266</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">0.1</td>
<td nowrap="nowrap">%</td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td> </td>
<td> </td>
<td colspan="19" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td align="right">1</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,266</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">0.1</td>
<td nowrap="nowrap">%</td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td> </td>
<td> </td>
<td colspan="19" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px"><b>Total real estate investments</b>
</div></td>
<td> </td>
<td> </td>
<td align="right">213</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">2,687,400</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">100.0</td>
<td nowrap="nowrap">%</td>
<td> </td>
<td> </td>
<td align="right">13,269</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">100.0</td>
<td nowrap="nowrap">%</td>
</tr>
<tr style="font-size: 1px">
<td> </td>
<td> </td>
<td colspan="19" nowrap="nowrap" align="left" style="border-top: 3px double #000000"> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="center" style="font-size: 10pt; margin-top: 0pt">
<b>
</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><i>Mortgage loans</i>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     A summary of the Company’s mortgage loans is shown in the table below:
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="28%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="11" style="border-bottom: 1px solid #000000">March 31, 2011</td>
<td style="border-bottom: 1px solid #000000"> </td>
<td nowrap="nowrap" align="center" colspan="11" style="border-bottom: 1px solid #000000">December 31, 2010</td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">Principal</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">Unamortized</td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">Principal</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">Unamortized</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td nowrap="nowrap" align="left"><i>(Dollars in thousands)</i></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">Balance</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">Fees</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">Total</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">Balance</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">Fees</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">Total</td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr style="font-size: 1px">
<td colspan="25" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Construction mortgage loans
</div></td>
<td> </td>
<td align="right">$</td>
<td align="right">27,189</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">338</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">26,851</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">18,409</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">430</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">17,979</td>
<td> </td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Other mortgage loans
</div></td>
<td> </td>
<td> </td>
<td align="right">61,320</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">61,320</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">18,620</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">18,620</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td> </td>
<td> </td>
<td colspan="23" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td align="right">$</td>
<td align="right">88,509</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">338</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">88,171</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">37,029</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">430</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">36,599</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td> </td>
<td> </td>
<td colspan="23" align="left" style="border-top: 3px double #000000"> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     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 March 31, 2011, the Company has not recorded any allowances for loan
losses on its mortgage loan portfolio and has not placed any of its loans on non-accrual status.
</div>
</div>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<!-- Begin Block Tagged Note 3 - hr:AcquisitionsAndDispositionsTextBlock-->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>Note 3. Acquisitions and Dispositions</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt"><i>Asset Acquisitions</i>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     In March 2011, the Company purchased from the noncontrolling interest holder the remaining 20%
equity interest in its HR Ladco Holdings, LLC joint venture and the remaining 1.25% equity interest
in its Lakewood MOB, LLC joint venture, for a total aggregate purchase price of $5.1 million. The
book value of the noncontrolling interests prior to the equity purchase was $3.6 million.
Concurrent with these purchases, the noncontrolling interest holder repaid a loan receivable to the
Company totaling $3.5 million. The loan receivable had been secured by the noncontrolling joint
venture interests. The Company had previously consolidated these joint ventures in its financial
statements. HR Ladco Holdings, LLC owns nine 100% leased outpatient facilities located in Iowa
with an aggregate investment of approximately $87.6 million that aggregate approximately 369,000
square feet. Lakewood MOB, LLC is constructing two medical office buildings and a parking garage
located in Colorado with an aggregate budget of approximately $54.9 million.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     Also, during the first quarter of 2011, the Company originated the following mortgage notes
receivable:
</div>
<div style="margin-top: 6pt">
<table width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; text-align: left">
<tr valign="top" style="font-size: 10pt; color: #000000; background: transparent">
<td width="2%" style="background: transparent"> </td>
<td width="3%" nowrap="nowrap" align="left"><b>•</b></td>
<td width="1%"> </td>
<td>a $40.0 million mortgage loan that is secured by a multi-tenanted office building
located in Iowa that was 94% leased at the time the mortgage was originated. The
mortgage loan requires interest only payments through maturity, has a stated fixed
interest rate of 7.7% and matures in January 2014.</td>
</tr>
</table>
</div>
<div style="margin-top: 6pt">
<table width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; text-align: left">
<tr valign="top" style="font-size: 10pt; color: #000000; background: transparent">
<td width="2%" style="background: transparent"> </td>
<td width="3%" nowrap="nowrap" align="left"><b>•</b></td>
<td width="1%"> </td>
<td>a $2.7 million mortgage note receivable with the purchaser in conjunction with the
disposal of a physician clinic located in Florida as discussed below. The loan has a
stated fixed interest rate of 7.0% and matures in March 2016.</td>
</tr>
</table>
</div>
<div style="margin-top: 6pt">
<table width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; text-align: left">
<tr valign="top" style="font-size: 10pt; color: #000000; background: transparent">
<td width="2%" style="background: transparent"> </td>
<td width="3%" nowrap="nowrap" align="left"><b>•</b></td>
<td width="1%"> </td>
<td>a $3.7 million loan for the construction of a medical office building located in
Missouri. The loan has a stated interest rate of 11.0% and matures in 2012. The
Company had funded $0.5 million on the loan as of March 31, 2011.</td>
</tr>
</table>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     Further, during the first quarter of 2011, the Company funded approximately $8.3 million on
existing construction mortgage loans.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The following table details the Company’s acquisitions for the three months ended March 31,
2011.
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="center" style="font-size: 10pt; margin-top: 0pt">
<b>
</b>
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="23%"> </td>
<td width="4%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="4%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="4%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="4%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="4%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="4%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="4%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">Note</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">Mortgage</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">Date</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">Cash</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">Receivable</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">Note</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">Noncontrolling</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td nowrap="nowrap" align="left"><i>(dollars in millions)</i></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">Acquired</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">Consideration</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">Repayment</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">Financing</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">interests</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">APIC</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">Other</td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr style="font-size: 1px">
<td colspan="29" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td nowrap="nowrap">
<div style="margin-left:15px; text-indent:-15px"><b>Purchase of noncontrolling interests</b>
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Lakewood MOB, LLC
</div></td>
<td> </td>
<td> </td>
<td align="right">03/15/2011</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">0.5</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">0.2</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">0.3</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">HR Ladco Holdings,
LLC
</div></td>
<td> </td>
<td> </td>
<td align="right">03/31/2011</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">0.8</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(3.5</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">3.4</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1.5</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(0.6</td>
<td nowrap="nowrap">)</td>
</tr>
<tr style="font-size: 1px">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td colspan="23" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1.3</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(3.5</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">3.6</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1.5</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(0.3</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px"><b>Mortgage note financing</b>
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Iowa
</div></td>
<td> </td>
<td> </td>
<td align="right">01/03/2011</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">40.0</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">40.0</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Florida
</div></td>
<td> </td>
<td> </td>
<td align="right">02/03/2011</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">2.7</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">2.7</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Missouri
</div></td>
<td> </td>
<td> </td>
<td align="right">03/24/2011</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">0.5</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">0.5</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td colspan="23" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">43.2</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">43.2</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td colspan="23" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">44.5</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right">$</td>
<td align="right">(3.5</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td align="right">$</td>
<td align="right">43.2</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">3.6</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">1.5</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(0.3</td>
<td nowrap="nowrap">)</td>
</tr>
<tr style="font-size: 1px">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td colspan="23" align="left" style="border-top: 3px double #000000"> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><i>Asset Dispositions</i>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     During the first quarter of 2011, the Company disposed of the following properties:
</div>
<div style="margin-top: 6pt">
<table width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; text-align: left">
<tr valign="top" style="font-size: 10pt; color: #000000; background: transparent">
<td width="2%" style="background: transparent"> </td>
<td width="3%" nowrap="nowrap" align="left"><b>•</b></td>
<td width="1%"> </td>
<td>a 35,761 square foot medical office building in Maryland in which the Company had a
net investment of approximately $3.5 million. The Company received approximately $3.4
million in net proceeds and recorded a $0.1 million impairment charge on the disposal.</td>
</tr>
</table>
</div>
<div style="margin-top: 6pt">
<table width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; text-align: left">
<tr valign="top" style="font-size: 10pt; color: #000000; background: transparent">
<td width="2%" style="background: transparent"> </td>
<td width="3%" nowrap="nowrap" align="left"><b>•</b></td>
<td width="1%"> </td>
<td>a 28,861 square foot physician clinic in Florida in which the Company had a net
investment of approximately $3.1 million. The Company received approximately $0.4
million in net cash proceeds, originated a $2.7 million mortgage note receivable with
the purchaser as discussed above, and recognized an immaterial gain on the disposition.</td>
</tr>
</table>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The following table details the Company’s dispositions for the three months ended March 31,
2011.
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="40%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">Net Real</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">Mortgage</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">Estate</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">Note</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">Gain/</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">Square</td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td nowrap="nowrap" align="left"><i>(dollars in millions)</i></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">Net Proceeds</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">Investment</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">Receivable</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">(Loss)</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">Footage</td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr style="font-size: 1px">
<td colspan="21" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px"><b>Real estate dispositions</b>
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Maryland
</div></td>
<td> </td>
<td align="right">$</td>
<td align="right">3.4</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">3.5</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right">$</td>
<td align="right">(0.1</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">35,761</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Florida
</div></td>
<td> </td>
<td> </td>
<td align="right">0.4</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">3.1</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(2.7</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">28,861</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td> </td>
<td> </td>
<td colspan="19" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px"><b>Total dispositions</b>
</div></td>
<td> </td>
<td align="right">$</td>
<td align="right">3.8</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">6.6</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right">$</td>
<td align="right">(2.7</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="right">$</td>
<td align="right">(0.1</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">64,622</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td> </td>
<td> </td>
<td colspan="19" align="left" style="border-top: 3px double #000000"> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><i>Potential Dispositions</i>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     In the fourth quarter of 2010, the Company received notice from a tenant of its intent to
purchase six skilled nursing facilities in Michigan and Indiana pursuant to purchase options
contained in its leases with the Company. The Company’s aggregate net investment in the buildings,
which are classified as held for sale, was approximately $8.2 million at March 31, 2011. The
aggregate purchase price for the properties is expected to be approximately $17.3 million,
resulting in an expected net gain of approximately $9.1 million. The Company expects the sale to
close during the third quarter of 2011.
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><i>Discontinued Operations and Assets Held for Sale</i>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     During the first quarter of 2011, the Company sold one property in Florida and one property in
Maryland and reclassified one property located in Tennessee that was previously classified as held
for sale to held for use upon execution of a long-term lease. The Company’s gross investment in
the Tennessee property was approximately $1.1 million ($0.5 million, net) at March 31, 2011.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The tables below detail the assets, liabilities, and results of operations included in
discontinued operations on the Company’s Condensed Consolidated Statements of Operations and in
assets and liabilities of discontinued operations on the
Company’s Condensed Consolidated Balance Sheets. At March 31, 2011 and December 31, 2010, the
Company had eight and 11 properties, respectively, classified as held for sale, including the six
properties discussed above in “Potential Dispositions.” Of the 11 properties classified as held
for sale at December 31, 2010, two of the properties were sold and one was reclassified to held for
use during the first quarter of 2011.
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="76%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">March 31,</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">December 31,</td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td nowrap="nowrap" align="left"><i>(Dollars in thousands)</i></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">2011</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">2010</td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr style="font-size: 1px">
<td colspan="9" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px"><b>Balance Sheet data (as of the period ended):</b>
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Land
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">4,766</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">7,099</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Buildings, improvements and lease intangibles
</div></td>
<td> </td>
<td> </td>
<td align="right">27,115</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">35,424</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Personal property
</div></td>
<td> </td>
<td> </td>
<td align="right">425</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">429</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td align="right">32,306</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">42,952</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Accumulated depreciation
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(15,883</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(19,447</td>
<td nowrap="nowrap">)</td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:45px; text-indent:-15px">Assets held for sale, net
</div></td>
<td> </td>
<td> </td>
<td align="right">16,423</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">23,505</td>
<td> </td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Other assets, net (including receivables)
</div></td>
<td> </td>
<td> </td>
<td align="right">271</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">410</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:45px; text-indent:-15px">Assets of discontinued operations, net
</div></td>
<td> </td>
<td> </td>
<td align="right">271</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">410</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:45px; text-indent:-15px">Assets held for sale and discontinued operations, net
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">16,694</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">23,915</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Accounts payable and accrued liabilities
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">61</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">229</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Other liabilities
</div></td>
<td> </td>
<td> </td>
<td align="right">84</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">194</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:45px; text-indent:-15px">Liabilities of discontinued operations
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">145</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">423</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<!-- End Table Body -->
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="76%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6">Three Months Ended</td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000">March 31,</td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td nowrap="nowrap" align="left"><i>(Dollars in thousands, except per share data)</i></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">2011</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">2010</td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr style="font-size: 1px">
<td colspan="9" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px"><b>Statements of Operations data (for the period ended):</b>
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px"><b>Revenues</b>
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Master lease rent
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">668</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">1,861</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Property operating
</div></td>
<td> </td>
<td> </td>
<td align="right">240</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">615</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Straight-line rent
</div></td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(16</td>
<td nowrap="nowrap">)</td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td align="right">908</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">2,460</td>
<td> </td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px"><b>Expenses</b>
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">General and administrative
</div></td>
<td> </td>
<td> </td>
<td align="right">1</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">2</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Property operating
</div></td>
<td> </td>
<td> </td>
<td align="right">402</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">561</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Bad debt, net
</div></td>
<td> </td>
<td> </td>
<td align="right">15</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Depreciation
</div></td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">388</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td align="right">418</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">951</td>
<td> </td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px"><b>Other Income (Expense)</b>
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Interest and other income, net
</div></td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">42</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">42</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px"><b>Discontinued Operations</b>
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Income from discontinued operations
</div></td>
<td> </td>
<td> </td>
<td align="right">490</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,551</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Impairment
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(147</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Gain on sales of real estate properties
</div></td>
<td> </td>
<td> </td>
<td align="right">36</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">2,696</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px"><b>Income from Discontinued Operations</b>
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">379</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">4,247</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px"><b>Income from Discontinued Operations per Common Share — Basic</b>
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">0.07</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px"><b>Income from Discontinued Operations per Common Share — Diluted</b>
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">0.07</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="center" style="font-size: 10pt; margin-top: 0pt">
<b>
</b>
</div>
</div>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<!-- Begin Block Tagged Note 4 - us-gaap:DebtDisclosureTextBlock-->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>Note 4. Notes and Bonds Payable</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The table below details the Company’s notes and bonds payable as of March 31, 2011 and
December 31, 2010.
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="28%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">Mar. 31,</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">Dec. 31,</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">Maturity</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">Contractual</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">Principal</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">Interest</td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td nowrap="nowrap" align="left"><i>(Dollars in thousands)</i></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">2011</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">2010</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">Dates</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">Interest Rates</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">Payments</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">Payments</td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr style="font-size: 1px">
<td colspan="25" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Unsecured Credit Facility due 2012
</div></td>
<td> </td>
<td align="right">$</td>
<td align="right">164,000</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="center">9/12</td>
<td> </td>
<td> </td>
<td colspan="3" align="center">LIBOR + 2.80%</td>
<td> </td>
<td colspan="3" align="center">At maturity</td>
<td> </td>
<td colspan="3" align="center">Quarterly</td>
</tr>
<tr valign="bottom">
<td nowrap="nowrap">
<div style="margin-left:15px; text-indent:-15px">Senior Notes due 2011, including premium
</div></td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">278,311</td>
<td> </td>
<td> </td>
<td> </td>
<td align="center">—</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="center">8.125%</td>
<td nowrap="nowrap"> </td>
<td> </td>
<td colspan="3" nowrap="nowrap" align="center">At maturity</td>
<td> </td>
<td colspan="3" nowrap="nowrap" align="center">Semi-Annual</td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Senior Notes due 2014, net of discount
</div></td>
<td> </td>
<td> </td>
<td align="right">264,262</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">264,227</td>
<td> </td>
<td> </td>
<td> </td>
<td align="center">4/14</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="center">5.125%</td>
<td nowrap="nowrap"> </td>
<td> </td>
<td colspan="3" nowrap="nowrap" align="center">At maturity</td>
<td> </td>
<td colspan="3" nowrap="nowrap" align="center">Semi-Annual</td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Senior Notes due 2017, net of discount
</div></td>
<td> </td>
<td> </td>
<td align="right">298,279</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">298,218</td>
<td> </td>
<td> </td>
<td> </td>
<td align="center">1/17</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="center">6.500%</td>
<td nowrap="nowrap"> </td>
<td> </td>
<td colspan="3" nowrap="nowrap" align="center">At maturity</td>
<td> </td>
<td colspan="3" nowrap="nowrap" align="center">Semi-Annual</td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Senior Notes due 2021, net of discount
</div></td>
<td> </td>
<td> </td>
<td align="right">396,870</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">396,812</td>
<td> </td>
<td> </td>
<td> </td>
<td align="center">1/21</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="center">5.750%</td>
<td nowrap="nowrap"> </td>
<td> </td>
<td colspan="3" nowrap="nowrap" align="center">At maturity</td>
<td> </td>
<td colspan="3" nowrap="nowrap" align="center">Semi-Annual</td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Mortgage notes payable, net of discount and
including premiums
</div></td>
<td> </td>
<td> </td>
<td align="right">169,675</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">170,287</td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center">4/13-10/30</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td nowrap="nowrap" align="center">5.000%-7.625%</td>
<td nowrap="nowrap"> </td>
<td> </td>
<td colspan="3" nowrap="nowrap" align="center">Monthly</td>
<td> </td>
<td colspan="3" nowrap="nowrap" align="center">Monthly</td>
</tr>
<tr style="font-size: 1px">
<td> </td>
<td> </td>
<td colspan="7" nowrap="nowrap" align="left" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td align="right">$</td>
<td align="right">1,293,086</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">1,407,855</td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td> </td>
<td> </td>
<td colspan="7" align="left" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The Company’s various debt agreements contain certain representations, warranties, and
financial and other covenants customary in such loan agreements. Among other things, these
provisions require the Company to maintain certain financial ratios and minimum tangible net worth
and impose certain limits on the Company’s ability to incur indebtedness and create liens or
encumbrances. At March 31, 2011, the Company was in compliance with the financial covenant
provisions under all of its various debt instruments.
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b><i>Unsecured Credit Facility due 2012</i></b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     On September 30, 2009, the Company entered into an amended and restated $550.0 million
unsecured credit facility (the “Unsecured Credit Facility”) with a syndicate of 16 lenders that
matures on September 30, 2012. Amounts outstanding under the Unsecured Credit Facility bear
interest at a rate equal to (x) LIBOR or the base rate (defined as the highest of (i) the Federal
Funds Rate plus 0.5%; (ii) the Bank of America prime rate and (iii) LIBOR) plus (y) a margin
ranging from 2.15% to 3.20% (2.80% at March 31, 2011) for LIBOR-based loans and 0.90% to 1.95% for
base rate loans (1.55% at March 31, 2011), based upon the Company’s unsecured debt ratings. In
addition, the Company pays a facility fee per annum on the aggregate amount of commitments. The
facility fee is 0.40% per annum, unless the Company’s credit rating falls below a BBB-/Baa3, at
which point the facility fee would be 0.50%. At March 31, 2011, the Company had $164.0 million
outstanding under the Unsecured Credit Facility with a weighted average interest rate of
approximately 3.05% and had borrowing capacity remaining, under its financial covenants, of
approximately $386.0 million.
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b><i>Senior Notes due 2011</i></b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     On March 28, 2011, the Company redeemed its unsecured senior notes due 2011 (the “Senior Notes
due 2011”) at a redemption price equal to an aggregate of $289.4 million, consisting of outstanding
principal of $278.2 million, accrued interest as of the redemption date of $9.2 million, and a
“make-whole” amount of approximately $2.0 million for the early extinguishment of the debt, which
was approximately equal to the interest that would have been paid between the redemption date and
the maturity date. The Senior Notes due 2011, issued in 2001, bore interest at 8.125% per annum,
payable semi-annually on May 1 and November 1, and were due to mature on May 1, 2011. The
unamortized net gain on these notes was written off upon redemption.
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b><i>Senior Notes due 2014</i></b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     In 2004, the Company issued $300.0 million of unsecured senior notes due 2014 (the “Senior
Notes due 2014”) that bear interest at 5.125% per annum, payable semi-annually on April 1 and
October 1, and are due on April 1, 2014, unless redeemed earlier by the Company. The Senior Notes
due 2014 were issued at a discount of approximately $1.5 million, yielding an effective interest
rate of 5.19% per annum. In previous years, the Company repurchased approximately $35.3 million of
the Senior Notes due 2014 and amortized a pro-rata portion of the discount upon such repurchases.
The following table reconciles the balance of the Senior Notes due 2014 on the Company’s Condensed
Consolidated Balance Sheets.
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="center" style="font-size: 10pt; margin-top: 0pt">
<b>
</b>
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="76%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">March 31,</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">December 31,</td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td nowrap="nowrap" align="left"><i>(Dollars in thousands)</i></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">2011</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">2010</td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr style="font-size: 1px">
<td colspan="9" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Senior Notes due 2014 face value
</div></td>
<td> </td>
<td align="right">$</td>
<td align="right">264,737</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">264,737</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Unaccreted discount
</div></td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(475</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(510</td>
<td nowrap="nowrap">)</td>
</tr>
<tr style="font-size: 1px">
<td> </td>
<td> </td>
<td colspan="7" nowrap="nowrap" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Senior Notes due 2014 carrying amount
</div></td>
<td> </td>
<td align="right">$</td>
<td align="right">264,262</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">264,227</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td> </td>
<td> </td>
<td colspan="7" align="left" style="border-top: 3px double #000000"> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b><i>Senior Notes due 2017</i></b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     In 2009, the Company issued $300.0 million of unsecured senior notes due 2017 (the “Senior
Notes due 2017”) that bear interest at 6.50% per annum, payable semi-annually on January 17 and
July 17, and are due on January 17, 2017, unless redeemed earlier by the Company. The Senior Notes
due 2017 were issued at a discount of approximately $2.0 million, yielding an effective interest
rate of 6.618% per annum. For the quarter ended March 31, 2011, the Company amortized
approximately $0.1 million of the discount which is included in interest expense on the Company’s
Consolidated Statements of Operations. The following table reconciles the balance of the Senior
Notes due 2017 on the Company’s Condensed Consolidated Balance Sheets.
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="76%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">March 31,</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">December 31,</td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td nowrap="nowrap" align="left"><i>(Dollars in thousands)</i></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">2011</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">2010</td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr style="font-size: 1px">
<td colspan="9" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Senior Notes due 2017 face value
</div></td>
<td> </td>
<td align="right">$</td>
<td align="right">300,000</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">300,000</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Unaccreted discount
</div></td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(1,721</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(1,782</td>
<td nowrap="nowrap">)</td>
</tr>
<tr style="font-size: 1px">
<td> </td>
<td> </td>
<td colspan="7" nowrap="nowrap" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Senior Notes due 2017 carrying amount
</div></td>
<td> </td>
<td align="right">$</td>
<td align="right">298,279</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">298,218</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td> </td>
<td> </td>
<td colspan="7" align="left" style="border-top: 3px double #000000"> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b><i>Senior Notes due 2021</i></b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     In December 2010, the Company issued $400.0 million of unsecured senior notes due 2021 (the
“Senior Notes due 2021”) that bear interest at 5.75%, payable semi-annually on January 15 and July
15, beginning July 15, 2011, and are due on January 15, 2021, unless redeemed earlier by the
Company. The Senior Notes due 2021 were issued at a discount of approximately $3.2 million, which
yielded a 5.855% interest rate per annum upon issuance. For the quarter ended March 31, 2011, the
Company amortized approximately $0.1 million of the discount which is included in interest expense
on the Company’s Consolidated Statements of Operations. The following table reconciles the balance
of the Senior Notes due 2021 on the Company’s Consolidated Balance Sheet as of March 31, 2011.
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="76%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">March 31,</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">December 31,</td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td nowrap="nowrap" align="left"><i>(Dollars in thousands)</i></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">2011</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">2010</td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr style="font-size: 1px">
<td colspan="9" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Senior Notes due 2021 face value
</div></td>
<td> </td>
<td align="right">$</td>
<td align="right">400,000</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">400,000</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Unaccreted discount
</div></td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(3,130</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(3,188</td>
<td nowrap="nowrap">)</td>
</tr>
<tr style="font-size: 1px">
<td> </td>
<td> </td>
<td colspan="7" nowrap="nowrap" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Senior Notes due 2021 carrying amount
</div></td>
<td> </td>
<td align="right">$</td>
<td align="right">396,870</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">396,812</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td> </td>
<td> </td>
<td colspan="7" align="left" style="border-top: 3px double #000000"> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b><i>Mortgage Notes Payable</i></b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The following table reconciles the Company’s aggregate mortgage notes principal balance with
the Company’s Condensed Consolidated Balance Sheets.
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="76%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">March 31,</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">December 31,</td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td nowrap="nowrap" align="left"><i>(Dollars in thousands)</i></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">2011</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">2010</td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr style="font-size: 1px">
<td colspan="9" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Mortgage notes payable principal balance
</div></td>
<td> </td>
<td align="right">$</td>
<td align="right">175,832</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">176,638</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Unaccreted discount, net
</div></td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(6,157</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(6,351</td>
<td nowrap="nowrap">)</td>
</tr>
<tr style="font-size: 1px">
<td> </td>
<td> </td>
<td colspan="7" nowrap="nowrap" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Mortgage notes payable carrying amount
</div></td>
<td> </td>
<td align="right">$</td>
<td align="right">169,675</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">170,287</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td> </td>
<td> </td>
<td colspan="7" align="left" style="border-top: 3px double #000000"> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="center" style="font-size: 10pt; margin-top: 0pt">
<b>
</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The following table further details the Company’s mortgage notes payable, with related
collateral, at March 31, 2011.
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="23%"> </td>
<td width="4%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="4%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="4%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="4%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="4%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="4%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="4%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">Investment in</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="7"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">Effective</td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">Collateral at</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="7" style="border-bottom: 1px solid #000000">Balance at</td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">Original</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">Interest</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">Maturity</td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">March 31,</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">Mar. 31,</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">Dec. 31,</td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td nowrap="nowrap" align="left"><i>(Dollars in millions)</i></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">Balance</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">Rate (13)</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">Date</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">Collateral (14)</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">2011</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">2011</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">2010</td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr style="font-size: 1px">
<td colspan="29" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Life Insurance Co. (1)
</div></td>
<td> </td>
<td align="right">$</td>
<td align="right">4.7</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">7.765</td>
<td nowrap="nowrap">%</td>
<td> </td>
<td> </td>
<td align="right">1/17</td>
<td> </td>
<td> </td>
<td colspan="3" align="center">MOB</td>
<td> </td>
<td align="right">$</td>
<td align="right">11.5</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">2.2</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">2.2</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Commercial Bank (2)
</div></td>
<td> </td>
<td> </td>
<td align="right">1.8</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">5.550</td>
<td nowrap="nowrap">%</td>
<td> </td>
<td> </td>
<td align="right">10/30</td>
<td> </td>
<td> </td>
<td colspan="3" align="center">OTH</td>
<td> </td>
<td> </td>
<td align="right">7.9</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1.7</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1.7</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Life Insurance Co. (3)
</div></td>
<td> </td>
<td> </td>
<td align="right">15.1</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">5.490</td>
<td nowrap="nowrap">%</td>
<td> </td>
<td> </td>
<td align="right">1/16</td>
<td> </td>
<td> </td>
<td colspan="3" align="center">MOB</td>
<td> </td>
<td> </td>
<td align="right">32.6</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">13.4</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">13.5</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Commercial Bank (4)
</div></td>
<td> </td>
<td> </td>
<td align="right">17.4</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">6.480</td>
<td nowrap="nowrap">%</td>
<td> </td>
<td> </td>
<td align="right">5/15</td>
<td> </td>
<td> </td>
<td colspan="3" align="center">MOB</td>
<td> </td>
<td> </td>
<td align="right">19.9</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">14.5</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">14.5</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Commercial Bank (5)
</div></td>
<td> </td>
<td> </td>
<td align="right">12.0</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">6.110</td>
<td nowrap="nowrap">%</td>
<td> </td>
<td> </td>
<td align="right">7/15</td>
<td> </td>
<td> </td>
<td colspan="3" align="center">2 MOBs</td>
<td> </td>
<td> </td>
<td align="right">19.4</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">9.7</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">9.7</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Commercial Bank (6)
</div></td>
<td> </td>
<td> </td>
<td align="right">15.2</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">7.650</td>
<td nowrap="nowrap">%</td>
<td> </td>
<td> </td>
<td align="right">7/20</td>
<td> </td>
<td> </td>
<td colspan="3" align="center">MOB</td>
<td> </td>
<td> </td>
<td align="right">20.2</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">12.8</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">12.8</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Life Insurance Co. (7)
</div></td>
<td> </td>
<td> </td>
<td align="right">1.5</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">6.810</td>
<td nowrap="nowrap">%</td>
<td> </td>
<td> </td>
<td align="right">7/16</td>
<td> </td>
<td> </td>
<td colspan="3" align="center">SOP</td>
<td> </td>
<td> </td>
<td align="right">2.2</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1.1</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1.2</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Commercial Bank (8)
</div></td>
<td> </td>
<td> </td>
<td align="right">12.9</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">6.430</td>
<td nowrap="nowrap">%</td>
<td> </td>
<td> </td>
<td align="right">2/21</td>
<td> </td>
<td> </td>
<td colspan="3" align="center">MOB</td>
<td> </td>
<td> </td>
<td align="right">20.6</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">11.5</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">11.5</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Investment Fund (9)
</div></td>
<td> </td>
<td> </td>
<td align="right">80.0</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">7.250</td>
<td nowrap="nowrap">%</td>
<td> </td>
<td> </td>
<td align="right">12/16</td>
<td> </td>
<td> </td>
<td colspan="3" align="center">15 MOBs</td>
<td> </td>
<td> </td>
<td align="right">154.0</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">79.0</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">79.2</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Life Insurance Co. (10)
</div></td>
<td> </td>
<td> </td>
<td align="right">7.0</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">5.530</td>
<td nowrap="nowrap">%</td>
<td> </td>
<td> </td>
<td align="right">1/18</td>
<td> </td>
<td> </td>
<td colspan="3" align="center">MOB</td>
<td> </td>
<td> </td>
<td align="right">14.5</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">3.9</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">4.0</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Investment Co. (11)
</div></td>
<td> </td>
<td> </td>
<td align="right">15.9</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">6.550</td>
<td nowrap="nowrap">%</td>
<td> </td>
<td> </td>
<td align="right">4/13</td>
<td> </td>
<td> </td>
<td colspan="3" align="center">MOB</td>
<td> </td>
<td> </td>
<td align="right">23.3</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">15.5</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">15.6</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Investment Co. (12)
</div></td>
<td> </td>
<td> </td>
<td align="right">4.6</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">5.250</td>
<td nowrap="nowrap">%</td>
<td> </td>
<td> </td>
<td align="right">9/15</td>
<td> </td>
<td> </td>
<td colspan="3" align="center">MOB</td>
<td> </td>
<td> </td>
<td align="right">6.9</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">4.4</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">4.4</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td colspan="11" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">333.0</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">169.7</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">170.3</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td colspan="11" align="left" style="border-top: 3px double #000000"> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="left">
<div style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000"> 
</div>
</div>
<table width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; text-align: left">
<tr>
<td width="3%"></td>
<td width="1%"></td>
<td width="96%"></td>
</tr>
<tr valign="top">
<td nowrap="nowrap" align="left">(1)</td>
<td> </td>
<td>Payable in monthly installments of principal and interest based on a 20-year
amortization with the final payment due at maturity.</td>
</tr>
<tr style="font-size: 3pt">
<td> </td>
</tr>
<tr valign="top">
<td nowrap="nowrap" align="left">(2)</td>
<td> </td>
<td>Payable in monthly installments of principal and interest based on a 27-year
amortization with the final payment due at maturity.</td>
</tr>
<tr style="font-size: 3pt">
<td> </td>
</tr>
<tr valign="top">
<td nowrap="nowrap" align="left">(3)</td>
<td> </td>
<td>Payable in monthly installments of principal and interest based on a 10-year
amortization with the final payment due at maturity.</td>
</tr>
<tr style="font-size: 3pt">
<td> </td>
</tr>
<tr valign="top">
<td nowrap="nowrap" align="left">(4)</td>
<td> </td>
<td>Payable in monthly installments of principal and interest based on a 10-year
amortization with the final payment due at maturity. The Company recorded a $2.7 million
discount on this note upon acquisition which is included in the balance above.</td>
</tr>
<tr style="font-size: 3pt">
<td> </td>
</tr>
<tr valign="top">
<td nowrap="nowrap" align="left">(5)</td>
<td> </td>
<td>Payable in monthly installments of principal and interest based on a 10-year
amortization with the final payment due at maturity. The Company recorded a $2.1 million
discount on this note upon acquisition which is included in the balance above.</td>
</tr>
<tr style="font-size: 3pt">
<td> </td>
</tr>
<tr valign="top">
<td nowrap="nowrap" align="left">(6)</td>
<td> </td>
<td>Payable in monthly installments of interest only for 24 months and then installments of
principal and interest based on an 11-year amortization with the final payment due at
maturity. The Company recorded a $2.4 million discount on this note upon acquisition which
is included in the balance above.</td>
</tr>
<tr style="font-size: 3pt">
<td> </td>
</tr>
<tr valign="top">
<td nowrap="nowrap" align="left">(7)</td>
<td> </td>
<td>Payable in monthly installments of principal and interest based on a 9-year
amortization with the final payment due at maturity. The Company recorded a $0.2 million
discount on this note upon acquisition which is included in the balance above.</td>
</tr>
<tr style="font-size: 3pt">
<td> </td>
</tr>
<tr valign="top">
<td nowrap="nowrap" align="left">(8)</td>
<td> </td>
<td>Payable in monthly installments of principal and interest based on a 12-year
amortization with the final payment due at maturity. The Company recorded a $1.0 million
discount on this note upon acquisition which is included in the balance above.</td>
</tr>
<tr style="font-size: 3pt">
<td> </td>
</tr>
<tr valign="top">
<td nowrap="nowrap" align="left">(9)</td>
<td> </td>
<td>Payable in monthly installments of principal and interest based on a 30-year
amortization with a 7-year initial term (maturity 12/01/16) and the option to extend the
initial term for two, one-year floating rate extension terms.</td>
</tr>
<tr style="font-size: 3pt">
<td> </td>
</tr>
<tr valign="top">
<td nowrap="nowrap" align="left">(10)</td>
<td> </td>
<td>Payable in monthly installments of principal and interest based on a 15-year
amortization with the final payment due at maturity. The Company acquired this mortgage
note in an acquisition during the third quarter 2010.</td>
</tr>
<tr style="font-size: 3pt">
<td> </td>
</tr>
<tr valign="top">
<td nowrap="nowrap" align="left">(11)</td>
<td> </td>
<td>Payable in monthly installments of principal and interest based on a 30-year
amortization with the option to extend for three years at a fixed rate of 6.75%. The
Company recorded a $0.5 million premium on this note upon acquisition which is included in
the balance above.</td>
</tr>
<tr style="font-size: 3pt">
<td> </td>
</tr>
<tr valign="top">
<td nowrap="nowrap" align="left">(12)</td>
<td> </td>
<td>Payable in monthly installments of principal and interest with a balloon payment of
$4.0 million due at maturity.</td>
</tr>
<tr style="font-size: 3pt">
<td> </td>
</tr>
<tr valign="top">
<td nowrap="nowrap" align="left">(13)</td>
<td> </td>
<td>The contractual interest rates ranged from 5.00% to 7.625% at March 31, 2011.</td>
</tr>
<tr style="font-size: 3pt">
<td> </td>
</tr>
<tr valign="top">
<td nowrap="nowrap" align="left">(14)</td>
<td> </td>
<td>MOB-Medical office building; SOP-Specialty outpatient; OTH-Other.</td>
</tr>
</table>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b><i>Long-Term Debt Maturities</i></b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     Future maturities of the Company’s notes and bonds payable as of March 31, 2011 were:
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="52%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">Principal</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">Net Accretion/</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">Notes and</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"> </td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td nowrap="nowrap" align="left"><i>(Dollars in thousands)</i></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">Maturities</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">Amortization (1)</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">Bonds Payable</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">%</td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr style="font-size: 1px">
<td colspan="17" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">2011 (remaining)
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">2,475</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(1,073</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td align="left">$</td>
<td align="right">1,402</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">0.1</td>
<td nowrap="nowrap">%</td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">2012
</div></td>
<td> </td>
<td> </td>
<td align="right">167,491</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(1,508</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">165,983</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">12.8</td>
<td nowrap="nowrap">%</td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">2013
</div></td>
<td> </td>
<td> </td>
<td align="right">18,284</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(1,738</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">16,546</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">1.3</td>
<td nowrap="nowrap">%</td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">2014
</div></td>
<td> </td>
<td> </td>
<td align="right">268,460</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(1,785</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">266,675</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">20.6</td>
<td nowrap="nowrap">%</td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">2015
</div></td>
<td> </td>
<td> </td>
<td align="right">32,632</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(1,443</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">31,189</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">2.4</td>
<td nowrap="nowrap">%</td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">2016 and thereafter
</div></td>
<td> </td>
<td> </td>
<td align="right">815,227</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(3,936</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">811,291</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">62.8</td>
<td nowrap="nowrap">%</td>
</tr>
<tr style="font-size: 1px">
<td> </td>
<td> </td>
<td colspan="15" nowrap="nowrap" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">1,304,569</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(11,483</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td align="left">$</td>
<td align="right">1,293,086</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">100.0</td>
<td nowrap="nowrap">%</td>
</tr>
<tr style="font-size: 1px">
<td> </td>
<td> </td>
<td colspan="15" nowrap="nowrap" align="left" style="border-top: 3px double #000000"> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="left">
<div style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000"> 
</div>
</div>
<table width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; text-align: left">
<tr>
<td width="3%"></td>
<td width="1%"></td>
<td width="96%"></td>
</tr>
<tr valign="top">
<td nowrap="nowrap" align="left">(1)</td>
<td> </td>
<td>Includes discount accretion and premium amortization related to the Company’s Senior
Notes due 2014, Senior Notes due 2017, Senior Notes due 2021 and six mortgage notes payable.</td>
</tr>
</table>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="center" style="font-size: 10pt; margin-top: 0pt">
<b>
</b>
</div>
</div>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<!-- Begin Block Tagged Note 5 - us-gaap:DeferredCostsCapitalizedPrepaidAndOtherAssetsDisclosureTextBlock-->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>Note 5. Other Assets</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     Other assets consist primarily of straight-line rent receivables, prepaid assets, intangible
assets and receivables. Items included in other assets on the Company’s Condensed Consolidated
Balance Sheets are detailed in the table below.
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="76%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">March 31,</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">December 31,</td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td nowrap="nowrap" align="left"><i>(Dollars in millions)</i></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">2011</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">2010</td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr style="font-size: 1px">
<td colspan="9" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Prepaid assets
</div></td>
<td> </td>
<td align="right">$</td>
<td align="right">29.9</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">27.9</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Straight-line rent receivables
</div></td>
<td> </td>
<td> </td>
<td align="right">28.3</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">27.0</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Above-market intangible assets, net
</div></td>
<td> </td>
<td> </td>
<td align="right">13.3</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">13.4</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Deferred financing costs, net
</div></td>
<td> </td>
<td> </td>
<td align="right">11.0</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">12.0</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Accounts receivable
</div></td>
<td> </td>
<td> </td>
<td align="right">7.6</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">6.1</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Goodwill
</div></td>
<td> </td>
<td> </td>
<td align="right">3.5</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">3.5</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Equity investment in joint venture — cost method
</div></td>
<td> </td>
<td> </td>
<td align="right">1.3</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1.3</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Customer relationship intangible assets, net
</div></td>
<td> </td>
<td> </td>
<td align="right">1.2</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1.2</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Notes receivable
</div></td>
<td> </td>
<td> </td>
<td align="right">0.3</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">3.8</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Allowance for uncollectible accounts
</div></td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(1.3</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(1.2</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Other
</div></td>
<td> </td>
<td> </td>
<td align="right">1.6</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1.5</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td> </td>
<td> </td>
<td colspan="7" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td align="right">$</td>
<td align="right">96.7</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">96.5</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td> </td>
<td> </td>
<td colspan="7" align="left" style="border-top: 3px double #000000"> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><i>Equity investment in joint venture</i>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     At March 31, 2011, the Company had an investment in one unconsolidated joint venture, which
the Company accounts for under the cost method since the Company does not exert significant
influence. The joint venture, which invests in real estate properties, is included in other assets
on the Company’s Condensed Consolidated Balance Sheets, and the related distributions received are
included in interest and other income, net on the Company’s Condensed Consolidated Statements of
Operations.
</div>
</div>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<!-- Begin Block Tagged Note 6 - us-gaap:CommitmentsAndContingenciesDisclosureTextBlock-->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>Note 6. Commitments and Contingencies</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt"><i>Construction in Progress</i>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     As of March 31, 2011, the Company had three medical office buildings under construction with
estimated completion dates in the third quarter of 2011 for two of the buildings and in the first
quarter 2012 for the third building. The table below details the Company’s construction in progress
and land held for development as of March 31, 2011. The information included in the table below
represents management’s estimates and expectations at March 31, 2011 which are subject to change.
The Company’s disclosures regarding certain projections or estimates of completion dates may not
reflect actual results.
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="23%"> </td>
<td width="4%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="4%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="4%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="4%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="4%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="4%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="4%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">Estimated</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">Property</td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">CIP at</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">Estimated</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">Estimated</td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">Completion</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">Type</td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">Approximate</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">March 31,</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">Remaining</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">Total</td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td nowrap="nowrap" align="center">State</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">Date</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">(1)</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">Properties</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">Square Feet</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">2011</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">Funding</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">Investment</td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr style="font-size: 1px">
<td colspan="31" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px"><i>(Dollars in thousands)</i>
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px"><i>Under construction:</i>
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Washington
</div></td>
<td> </td>
<td> </td>
<td align="right" nowrap="nowrap">3Q 2011</td>
<td> </td>
<td> </td>
<td colspan="3" align="center">MOB</td>
<td> </td>
<td> </td>
<td align="right">1</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">206,000</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">54,581</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">37,619</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">92,200</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Colorado
</div></td>
<td> </td>
<td> </td>
<td align="right">3Q 2011</td>
<td> </td>
<td> </td>
<td colspan="3" align="center">MOB</td>
<td> </td>
<td> </td>
<td align="right">1</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">101,907</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">12,184</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">15,925</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">28,109</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Colorado
</div></td>
<td> </td>
<td> </td>
<td align="right">1Q 2012</td>
<td> </td>
<td> </td>
<td colspan="3" align="center">MOB</td>
<td> </td>
<td> </td>
<td align="right">1</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">97,093</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">11,053</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">15,738</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">26,791</td>
<td> </td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px"><i>Land held for development:</i>
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Texas
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">20,772</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td colspan="21" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">3</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">405,000</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">98,590</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">69,282</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">147,100</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td colspan="21" align="left" style="border-top: 3px double #000000"> </td>
</tr><!-- End Table Body -->
</table>
</div>
<div align="left">
<div style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000"> 
</div>
</div>
<table width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; text-align: left">
<tr>
<td width="3%"></td>
<td width="1%"></td>
<td width="96%"></td>
</tr>
<tr valign="top">
<td nowrap="nowrap" align="left">(1)</td>
<td> </td>
<td>MOB-Medical office building.</td>
</tr>
</table>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="center" style="font-size: 10pt; margin-top: 0pt">
<b>
</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><i>Other Construction</i>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The Company had approximately $29.8 million in various first-generation tenant improvement
budgeted amounts remaining as of March 31, 2011 related to properties that were developed by the
Company.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     As of March 31, 2011, the Company had remaining funding commitments totaling $49.6 million on
six construction loans. The Company expects that the remaining commitments on the loans will be
funded during the remainder of 2011 and 2012.
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><i>Legal Proceedings</i>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     Two affiliates of the Company, HR Acquisition of Virginia Limited Partnership and HRT
Holdings, Inc., are defendants in a lawsuit brought by Fork Union Medical Investors Limited
Partnership, Goochland Medical Investors Limited Partnership, and Life Care Centers of America,
Inc., as plaintiffs, in the Circuit Court of Davidson County, Tennessee. The plaintiffs allege that
they overpaid rent between 1991 and 2003 under leases for two skilled nursing facilities in
Virginia and seek a refund of such overpayments. Plaintiffs are seeking up to $2.0 million, plus
pre- and post-judgment interest and attorneys’ fees. The two leases were terminated by agreement in
2003. The Company denies that it is liable to the plaintiffs for any refund of rent paid and will
continue to defend the case vigorously. A trial had been scheduled for April 18, 2011, but has since been
continued on the plaintiffs’ motion. No new trial date has been scheduled.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The Company is, from time to time, involved in litigation arising out of the ordinary course
of business or which is expected to be covered by insurance. The Company is not aware of any other
pending or threatened litigation that, if resolved against the Company, would have a material
adverse effect on the Company’s consolidated financial position, results of operations, or cash
flows.
</div>
</div>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<!-- Begin Block Tagged Note 7 - us-gaap:StockholdersEquityNoteDisclosureTextBlock-->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>Note 7. Stockholders’ Equity</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The following table provides a reconciliation of total equity:
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="20%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">Accumulated</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"> </td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">Additional</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">Other</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">Cumulative</td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">Total</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">Non</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"> </td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td nowrap="nowrap" align="left"><i>(Dollars in thousands,</i></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">Common</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">Paid-In</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">Comprehensive</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">Net</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">Cumulative</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">Stockholders’</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">controlling</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">Total</td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td nowrap="nowrap" align="left"><i>except per share data)</i></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">Stock</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">Capital</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">Loss</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">Income</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">Dividends</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">Equity</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">Interests</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">Equity</td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr style="font-size: 1px">
<td colspan="33" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Balance at Dec. 31, 2010
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">661</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">1,641,379</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(5,269</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td align="left">$</td>
<td align="right">796,165</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(1,593,926</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td align="left">$</td>
<td align="right">839,010</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">3,730</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">842,740</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Issuance of common stock
</div></td>
<td> </td>
<td> </td>
<td align="right">41</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">90,009</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">90,050</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">90,050</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Common stock redemption
</div></td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(51</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(51</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(51</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Stock-based compensation
</div></td>
<td> </td>
<td> </td>
<td align="right">1</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">940</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">941</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">941</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Net income
(loss)
</div></td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(5,789</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(5,789</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">27</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(5,762</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:45px; text-indent:-15px">Other comprehensive loss
</div></td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Comprehensive income
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(5,762</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Dividends to common
stockholders
($0.30 per share)
</div></td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(20,245</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(20,245</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(20,245</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Distributions to noncontrolling interests
</div></td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(247</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(247</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Proceeds from
noncontrolling interests
</div></td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">76</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">76</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Redemption of noncontrolling
interest in
consolidated joint
ventures
</div></td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(1,469</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(1,469</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(3,586</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(5,055</td>
<td nowrap="nowrap">)</td>
</tr>
<tr style="font-size: 1px">
<td> </td>
<td> </td>
<td colspan="31" nowrap="nowrap" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Balance at March 31, 2011
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">703</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">1,730,808</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(5,269</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td align="left">$</td>
<td align="right">790,376</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(1,614,171</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td align="left">$</td>
<td align="right">902,447</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">902,447</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td> </td>
<td> </td>
<td colspan="31" align="left" style="border-top: 3px double #000000"> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="center" style="font-size: 10pt; margin-top: 0pt">
<b>
</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><i>Common Stock</i>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The following table provides a reconciliation of the beginning and ending common stock
outstanding for the three months ended March 31, 2011 and the year ended December 31, 2010:
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="76%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">Three Months Ended</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">Year Ended</td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">March 31,</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">     December 31,   </td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000">2011</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000">2010</td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Balance, beginning of period
</div></td>
<td> </td>
<td> </td>
<td align="right">66,071,424</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">60,614,931</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Issuance of common stock
</div></td>
<td> </td>
<td> </td>
<td align="right">4,128,163</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">5,287,098</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Restricted stock-based awards, net of forfeitures
</div></td>
<td> </td>
<td> </td>
<td align="right">65,675</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">169,395</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Balance, end of period
</div></td>
<td> </td>
<td> </td>
<td align="right">70,265,262</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">66,071,424</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><i>At-The-Market Equity Offering Program</i>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     Since December 2008, the Company has had in place an at-the-market equity offering program to
sell shares of its common stock from time to time in at-the-market sales transactions. During the
three months ended March 31, 2011, the Company sold 4,120,000 shares of common stock under this
program at prices ranging from $20.34 per share to $23.63 per share, generating approximately $89.9
million in net proceeds.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     Between March 31, 2011 and May 4, 2011, the Company sold 2,925,400 shares of common stock,
generating approximately $66.0 million in net proceeds, resulting in 1,394,600 authorized shares
remaining to be sold under the program.
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><i>Common Stock Dividends</i>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     During the first three months of 2011, the Company declared and paid a common stock dividend
in the amount of $0.30 per share.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     On May 3, 2011, the Company declared a quarterly common stock dividend in the amount of $0.30
per share payable on June 2, 2011 to stockholders of record on May 19, 2011.
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><i>Earnings (Loss) Per Common Share</i>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The table below sets forth the computation of basic and diluted earnings (loss) per common
share for the three months ended March 31, 2011 and 2010.
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="center" style="font-size: 10pt; margin-top: 0pt">
<b>
</b>
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="76%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6">Three Months Ended</td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000">March 31,</td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td nowrap="nowrap" align="left"><i>(Dollars in thousands, except per share data)</i></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">2011</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">2010</td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr style="font-size: 1px">
<td colspan="9" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px"><b>Weighted average Common Shares outstanding</b>
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Weighted average Common Shares outstanding
</div></td>
<td> </td>
<td> </td>
<td align="right">67,591,152</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">61,266,352</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:45px; text-indent:-15px">Unvested restricted stock
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(1,439,726</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(1,304,897</td>
<td nowrap="nowrap">)</td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Weighted average Common Shares Outstanding — Basic
</div></td>
<td> </td>
<td> </td>
<td align="right">66,151,426</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">59,961,455</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Weighted average Common Shares — Basic
</div></td>
<td> </td>
<td> </td>
<td align="right">66,151,426</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">59,961,455</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:45px; text-indent:-15px">Dilutive effect of restricted stock
</div></td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">940,597</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:45px; text-indent:-15px">Dilutive effect of employee stock purchase plan
</div></td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">67,678</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Weighted average Common Shares Outstanding — Diluted
</div></td>
<td> </td>
<td> </td>
<td align="right">66,151,426</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">60,969,730</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px"><b>Net income (loss)</b>
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Income (loss) from continuing operations
</div></td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(6,141</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td align="left">$</td>
<td align="right">411</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:45px; text-indent:-15px">Noncontrolling interests’ share in net income
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(27</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(64</td>
<td nowrap="nowrap">)</td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Income from continuing operations attributable to
common shareholders
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(6,168</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">347</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Discontinued operations
</div></td>
<td> </td>
<td> </td>
<td align="right">379</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">4,247</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Net income (loss) attributable to common stockholders
</div></td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(5,789</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td align="left">$</td>
<td align="right">4,594</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px"><b>Basic Earnings (Loss) Per Common Share</b>
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Income from continuing operations
</div></td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(0.09</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td align="left">$</td>
<td align="right">0.01</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Discontinued operations
</div></td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">0.07</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Net income (loss) attributable to common stockholders
</div></td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(0.09</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td align="left">$</td>
<td align="right">0.08</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px"><b>Diluted Earnings (Loss) Per Common Share</b>
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Income from continuing operations
</div></td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(0.09</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td align="left">$</td>
<td align="right">0.01</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Discontinued operations
</div></td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">0.07</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Net income (loss) attributable to common stockholders
</div></td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(0.09</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td align="left">$</td>
<td align="right">0.08</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     Restricted stock totaling 1,023,174 shares and options under the Employee Stock Purchase
Plan to purchase the Company’s stock totaling 89,917 shares were excluded from the calculation of
diluted loss per common share for the three months ended March 31, 2011 because the effect was
anti-dilutive due to the net loss from continuing operations incurred during the period.
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><i>Incentive Plans</i>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The Company has various stock-based incentive plans for its employees and directors. Awards
under these plans include restricted stock issued to employees and the Company’s directors and
options granted to employees pursuant to its Employee Stock Purchase Plan.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     A summary of the activity under the incentive plans for the three months ended March 31, 2011
and 2010 is included in the table below.
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="76%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="7">Three Months Ended</td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="7" style="border-bottom: 1px solid #000000">March 31,</td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">2011</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">2010</td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr style="font-size: 1px">
<td> </td>
<td> </td>
<td colspan="7" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Stock-based awards, beginning of period
</div></td>
<td> </td>
<td> </td>
<td align="right">1,379,243</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,224,779</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Granted
</div></td>
<td> </td>
<td> </td>
<td align="right">79,169</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">76,731</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Vested
</div></td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(10,675</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(2,362</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Forfeited
</div></td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(10,926</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td> </td>
<td> </td>
<td colspan="7" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Stock-based awards, end of period
</div></td>
<td> </td>
<td> </td>
<td align="right">1,436,811</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,299,148</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td> </td>
<td> </td>
<td colspan="7" align="left" style="border-top: 3px double #000000"> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="center" style="font-size: 10pt; margin-top: 0pt">
<b>
</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     Under the Company’s Employee Stock Purchase Plan, in January of each year each eligible
employee is granted an option to purchase up to $25,000 of Common Stock at the lesser of 85% of the
market price on the date of grant or 85% of the market price on the date of exercise of such
option. The number of shares subject to each year’s option becomes fixed on the date of grant.
Options granted under the Employee Stock Purchase Plan expire if not exercised within 27 months
after each such option’s date of grant. The Company recorded approximately $0.2 million to general
and administrative expenses during the first quarter of 2011 relating to the annual grant of
options to its employees under the Employee Stock Purchase Plan. On April 1, 2011, options to
purchase 166,207 shares of Common Stock expired that had not been exercised.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     A summary of the activity under the Employee Stock Purchase Plan for the three months ended
March 31, 2011 and 2010 is included in the table below.
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="76%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="7">Three Months Ended</td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="7" style="border-bottom: 1px solid #000000">March 31,</td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">2011</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">2010</td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr style="font-size: 1px">
<td> </td>
<td> </td>
<td colspan="7" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Outstanding and exercisable, beginning of period
</div></td>
<td> </td>
<td> </td>
<td align="right">392,517</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">335,608</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Granted
</div></td>
<td> </td>
<td> </td>
<td align="right">261,960</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">256,080</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Exercised
</div></td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(4,591</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(3,368</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Forfeited
</div></td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(23,406</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(11,660</td>
<td nowrap="nowrap">)</td>
</tr>
<tr style="font-size: 1px">
<td> </td>
<td> </td>
<td colspan="7" nowrap="nowrap" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Outstanding and exercisable, end of period
</div></td>
<td> </td>
<td> </td>
<td align="right">626,480</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">576,660</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td> </td>
<td> </td>
<td colspan="7" align="left" style="border-top: 3px double #000000"> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
</div>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<!-- Begin Block Tagged Note 8 - us-gaap:ScheduleOfDefinedBenefitPlansDisclosuresTextBlock-->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>Note 8. Defined Benefit Pension Plans</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The Company’s Executive Retirement Plan provides benefits upon retirement for three of the
Company’s founding officers. The plan is unfunded and benefits will be paid from cash flows of the
Company. The maximum annual benefits payable under the Executive Retirement Plan have been frozen
at $896,000, subject to cost-of-living adjustments. As of March 31, 2011, only the Company’s Chief
Executive Officer was eligible to retire under the Executive Retirement Plan.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The Company’s retirement plan for its non-employee directors was terminated in November 2009.
During 2010, the Company made lump sum payments to the plan participants, totaling approximately
$2.6 million, which represented the non-employee directors’ aggregate accumulated pension benefits
payable.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     Net periodic benefit cost recorded related to the Company’s pension plans for the three months
ended March 31, 2011 and 2010 is detailed in the following table.
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="76%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="7">Three Months Ended</td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="7" style="border-bottom: 1px solid #000000">March 31,</td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td nowrap="nowrap" align="left"><i>(Dollars in thousands)</i></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">2011</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">2010</td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr style="font-size: 1px">
<td colspan="9" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Service costs
</div></td>
<td> </td>
<td align="right">$</td>
<td align="right">17</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">13</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Interest costs
</div></td>
<td> </td>
<td> </td>
<td align="right">214</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">242</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Amortization of net gain/loss
</div></td>
<td> </td>
<td> </td>
<td align="right">232</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">187</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td> </td>
<td> </td>
<td colspan="7" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Total recognized in net periodic
benefit cost
</div></td>
<td> </td>
<td align="right">$</td>
<td align="right">463</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">442</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td> </td>
<td> </td>
<td colspan="7" align="left" style="border-top:3px double #000000"> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
</div>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<!-- Begin Block Tagged Note 9 - hr:OtherOperatingIncomeTextBlock-->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>Note 9. Other Operating Income</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     Other operating income on the Company’s Condensed Consolidated Statements of Operations
generally includes guaranty revenue recognized under its property operating agreements, interest
income on notes receivable, and other items as detailed in the table below.
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="center" style="font-size: 10pt; margin-top: 0pt">
<b>
</b>
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="76%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="7">Three Months Ended</td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="7" style="border-bottom: 1px solid #000000">March 31,</td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td nowrap="nowrap" align="left"><i>(Dollars in thousands)</i></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">2011</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">2010</td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr style="font-size: 1px">
<td colspan="9" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Property operating agreement guaranty revenue
</div></td>
<td> </td>
<td align="right">$</td>
<td align="right">1,975</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">1,892</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Interest income on notes receivable
</div></td>
<td> </td>
<td> </td>
<td align="right">240</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">172</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Management fee income
</div></td>
<td> </td>
<td> </td>
<td align="right">38</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">45</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Other
</div></td>
<td> </td>
<td> </td>
<td align="right">52</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">60</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td> </td>
<td> </td>
<td colspan="7" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td align="right">$</td>
<td align="right">2,305</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">2,169</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td> </td>
<td> </td>
<td colspan="7" align="left" style="border-top: 3px double #000000"> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
</div>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<!-- Begin Block Tagged Note 10 - us-gaap:IncomeTaxDisclosureTextBlock-->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>Note 10. Taxable Income (Loss)</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt"><i>Taxable Income (Loss)</i>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The Company has elected to be taxed as a REIT, as defined under the Internal Revenue Code of
1986, as amended. To qualify as a REIT, the Company must meet a number of organizational and
operational requirements, including a requirement that it distribute at least 90% of its annual
taxable income to its stockholders.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     As a REIT, the Company generally will not be subject to federal income tax on taxable income
it distributes currently to its stockholders. Accordingly, no provision for federal income taxes
has been made in the accompanying Condensed Consolidated Financial Statements. If the Company
fails to qualify as a REIT for any taxable year, then it will be subject to federal income taxes at
regular corporate rates, including any applicable alternative minimum tax, and may not be able to
qualify as a REIT for four subsequent taxable years. Even if the Company qualifies as a REIT, it
may be subject to certain state and local taxes on its income and property and to federal income
and excise tax on its undistributed taxable income.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     Earnings and profits, the current and accumulated amounts of which determine the taxability of
distributions to stockholders, vary from net income (loss) attributable to common stockholders and
taxable income (loss) because of different depreciation recovery periods and methods, and other
items.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The following table reconciles the Company’s consolidated net income (loss) attributable to
common stockholders to taxable income (loss) for the three months ended March 31, 2011 and 2010.
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="76%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="7">Three Months Ended</td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="7" style="border-bottom: 1px solid #000000">March 31,</td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td nowrap="nowrap" align="left"><i>(Dollars in thousands)</i></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">2011</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">2010</td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr style="font-size: 1px">
<td colspan="9" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Net income (loss) attributable to common
stockholders
</div></td>
<td> </td>
<td nowrap="nowrap" align="right">$</td>
<td align="right">(5,789</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td align="right">$</td>
<td align="right">4,594</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Reconciling items to taxable income:
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Depreciation and amortization
</div></td>
<td> </td>
<td> </td>
<td align="right">5,325</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">5,052</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Gain or loss on disposition of depreciable assets
</div></td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(2,176</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">6,275</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Straight-line rent
</div></td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(1,140</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(481</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Receivable allowances
</div></td>
<td> </td>
<td> </td>
<td align="right">396</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(655</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Stock-based compensation
</div></td>
<td> </td>
<td> </td>
<td align="right">1,386</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,175</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Other
</div></td>
<td> </td>
<td> </td>
<td align="right">1,089</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">725</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td> </td>
<td> </td>
<td colspan="7" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Taxable income (loss) (1)
</div></td>
<td> </td>
<td nowrap="nowrap" align="right">$</td>
<td align="right">(909</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td align="right">$</td>
<td align="right">16,685</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td> </td>
<td> </td>
<td colspan="7" align="left" style="border-top: 3px double #000000"> </td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Dividends paid
</div></td>
<td> </td>
<td align="right">$</td>
<td align="right">20,245</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">18,417</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td> </td>
<td> </td>
<td colspan="7" align="left" style="border-top: 3px double #000000"> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="left">
<div style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000"> 
</div>
</div>
<table width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; text-align: left">
<tr>
<td width="3%"></td>
<td width="1%"></td>
<td width="96%"></td>
</tr>
<tr valign="top">
<td nowrap="nowrap" align="left">(1)</td>
<td> </td>
<td>Before REIT dividend paid deduction.</td>
</tr>
</table>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="center" style="font-size: 10pt; margin-top: 0pt">
<b>
</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><i>State Income Taxes</i>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     State income tax expense and state income tax payments for the three months ended March 31,
2011 and 2010 are detailed in the table below.
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="76%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="7">Three Months Ended</td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="7" style="border-bottom: 1px solid #000000">March 31,</td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td nowrap="nowrap" align="left"><i>(Dollars in thousands)</i></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">2011</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">2010</td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr style="font-size: 1px">
<td colspan="9" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">State income tax expense:
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Texas gross margin tax
</div></td>
<td> </td>
<td align="right">$</td>
<td align="right">119</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">111</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Other
</div></td>
<td> </td>
<td> </td>
<td align="right">44</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">48</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td> </td>
<td> </td>
<td colspan="7" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Total state income tax expense
</div></td>
<td> </td>
<td align="right">$</td>
<td align="right">163</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">159</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td> </td>
<td> </td>
<td colspan="7" align="left" style="border-top: 3px double #000000"> </td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">State income tax payments, net of refunds
</div></td>
<td> </td>
<td align="right">$</td>
<td align="right">23</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right">$</td>
<td align="right">(6</td>
<td nowrap="nowrap">)</td>
</tr>
<tr style="font-size: 1px">
<td> </td>
<td> </td>
<td colspan="7" nowrap="nowrap" align="left" style="border-top: 3px double #000000"> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The Texas gross margin tax is a tax on gross receipts from operations in Texas. The
Company understands that the Securities and Exchange Commission views this tax as an income tax.
As such, the Company has disclosed the Texas gross margin tax in the table above. The Company does
not necessarily agree with the Securities and Exchange Commission’s position concerning the Texas
gross margin tax.
</div>
</div>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<!-- Begin Block Tagged Note 11 - us-gaap:FairValueByBalanceSheetGroupingTextBlock-->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>Note 11. Fair Value of Financial Instruments</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The carrying amounts of cash and cash equivalents, receivables and payables are reasonable
estimates of their fair value as of March 31, 2011 and December 31, 2010 due to their short-term
nature. The fair value of notes and bonds payable is estimated using cash flow analyses, based on
the Company’s current interest rates for similar types of borrowing arrangements. The fair value of
mortgage notes and notes receivable is estimated either based on cash flow analyses at an assumed
market rate of interest or at a rate consistent with the rates on mortgage notes acquired by the
Company recently or notes receivable entered into by the Company recently. The table below details
the fair value and carrying values for notes and bonds payable, mortgage notes receivable and notes
receivable at March 31, 2011 and December 31, 2010.
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="52%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000">March 31, 2011</td>
<td style="border-bottom: 1px solid #000000"> </td>
<td style="border-bottom: 1px solid #000000"> </td>
<td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000">December 31, 2010</td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">Carrying</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">Fair</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">Carrying</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">Fair</td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td nowrap="nowrap" align="left"><i>(Dollars in millions)</i></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">value</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">value</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">value</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">value</td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr style="font-size: 1px">
<td colspan="17" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Notes and bonds payable
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">1,293.1</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">1,335.0</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">1,407.9</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">1,460.2</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Mortgage notes receivable
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">88.2</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">86.6</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">36.6</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">35.9</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Notes receivable, net of allowances
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">0.3</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">0.3</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">3.8</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">3.8</td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
</div>
false
--12-31
Q1
2011
2011-03-31
10-Q
0000899749
72742110
Yes
Large Accelerated Filer
1353691371
HEALTHCARE REALTY TRUST INC
No
Yes
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