##### 



Exhibit 13
 Selected Financial
  Years Ended December 31,(Dollars in thousands, except per share data)
    
    2007(1)
    
    2006(2)
    
    2005(2)
    
    2004(2)
    
    2003(2)Statement of Income Data:Total revenues
    
    $
    212,593
    
    
    $
    212,792
    
    
    $
    206,745
    
    
    $
    181,871
    
    
    $
    143,964Total expenses
    
    $
    195,916
    
    
    $
    196,816
    
    
    $
    186,852
    
    
    $
    152,787
    
    
    $
    107,418Income from continuing operations
    
    $
    16,677
    
    
    $
    15,976
    
    
    $
    19,893
    
    
    $
    29,084
    
    
    $
    36,546Discontinued operations
    
    $
    43,385
    
    
    $
    23,743
    
    
    $
    32,775
    
    
    $
    26,449
    
    
    $
    23,856Net income
    
    $
    60,062
    
    
    $
    39,719
    
    
    $
    52,668
    
    
    $
    55,533
    
    
    $
    60,402Per Share Data:Basic:Income from continuing operations
per common share
    
    $
    0.35
    
    
    $
    0.34
    
    
    $
    0.43
    
    
    $
    0.67
    
    
    $
    0.89Discontinued operations
per common share
    
    $
    0.91
    
    
    $
    0.51
    
    
    $
    0.70
    
    
    $
    0.60
    
    
    $
    0.58Net income per common share
    
    $
    1.26
    
    
    $
    0.85
    
    
    $
    1.13
    
    
    $
    1.27
    
    
    $
    1.47Diluted:Income from continuing operations
per common share
    
    $
    0.35
    
    
    $
    0.34
    
    
    $
    0.42
    
    
    $
    0.65
    
    
    $
    0.87Discontinued operations
per common share
    
    $
    0.89
    
    
    $
    0.50
    
    
    $
    0.69
    
    
    $
    0.59
    
    
    $
    0.57Net income per common share
    
    $
    1.24
    
    
    $
    0.84
    
    
    $
    1.11
    
    
    $
    1.24
    
    
    $
    1.44Weighted average common shares
outstanding  Basic
    
    
    47,536,133
    
    
    
    46,527,857
    
    
    
    46,465,215
    
    
    
    43,706,528
    
    
    
    41,142,619Weighted average common shares
outstanding  Diluted
    
    
    48,291,330
    
    
    
    47,498,937
    
    
    
    47,406,798
    
    
    
    44,627,475
    
    
    
    41,840,188Balance Sheet Data(as of the end of the period):Real estate properties, net
    
    $
    1,351,173
    
    
    $
    1,554,620
    
    
    $
    1,513,247
    
    
    $
    1,558,794
    
    
    $
    1,329,323Mortgage notes receivable
    
    $
    30,117
    
    
    $
    73,856
    
    
    $
    105,795
    
    
    $
    40,321
    
    
    $
    91,835Assets held for sale, net
    
    $
    15,639
    
    
    $
    
    
    
    $
    21,415
    
    
    $
    61,246
    
    
    $
    Total assets
    
    $
    1,495,492
    
    
    $
    1,736,603
    
    
    $
    1,747,652
    
    
    $
    1,750,810
    
    
    $
    1,501,802Notes and bonds payable
    
    $
    785,289
    
    
    $
    849,982
    
    
    $
    778,446
    
    
    $
    719,264
    
    
    $
    590,281Total stockholders equity
    
    $
    631,995
    
    
    $
    825,672
    
    
    $
    912,468
    
    
    $
    980,616
    
    
    $
    876,130Other Data:Funds from operations  Basic(3)
    
    $
    73,156
    
    
    $
    101,106
    
    
    $
    107,943
    
    
    $
    110,172
    
    
    $
    103,716Funds from operations  Diluted (3)
    
    $
    73,156
    
    
    $
    101,106
    
    
    $
    107,943
    
    
    $
    110,172
    
    
    $
    103,716Funds from operations per common
share  Basic (3)
    
    $
    1.54
    
    
    $
    2.17
    
    
    $
    2.32
    
    
    $
    2.52
    
    
    $
    2.52Funds from operations per common
share  Diluted (3)
    
    $
    1.51
    
    
    $
    2.13
    
    
    $
    2.28
    
    
    $
    2.47
    
    
    $
    2.48Dividends declared and paid per
common share
    
    $
    6.84
    
    
    $
    2.64
    
    
    $
    2.63
    
    
    $
    2.55
    
    
    $
    2.47
 
 (1)
    
    The Company completed the sale of its senior living assets in 2007 and paid a $4.75
per share special dividend with a portion of the proceeds. See Note 6 to the Consolidated
Financial Statements for more information on this transaction.(2)
    
    The years ended December 31, 2006, 2005, 2004 and 2003 are restated to conform to
the discontinued operations presentation for 2007. See Note 4 to the
Consolidated Financial Statements for more information on the
Companys discontinued operations at December 31, 2007.(3)
    
    See Managements Discussion and Analysis of Financial Condition and Results of
Operations for a discussion of Funds From Operations (FFO), including why the Company presents
FFO and a reconciliation of Net income to FFO. 1




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##### 



Managements Discussion and Analysis of Financial Condition  AND RESULTS OF OPERATIONS
 Overview
 Business Overview
    Executive Overview
  .
   2




---



##### 



Managements Discussion and Analysis of Financial Condition  AND RESULTS OF OPERATIONS
    Trends and Matters Impacting Operating Results
   Development Activity
  3




---



##### 



Managements Discussion and Analysis of Financial Condition  AND RESULTS OF OPERATIONS
  Acquisitions
  Dispositions
  Purchase Options Exercised and Exercisable
    Expiring Leases and Financial Support Agreements
  4




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##### 



Managements Discussion and Analysis of Financial Condition  AND RESULTS OF OPERATIONS
  Discontinued Operations
  Amortization of In-Place Leases
  Variable Interest Entities
  Funds from Operations
  5




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##### 



Managements Discussion and Analysis of Financial Condition  AND RESULTS OF OPERATIONS
     Year Ended December 31,(Dollars in thousands, except per share data)
    
    2007
    
    2006
    
    2005Net income
    
    $
    60,062
    
    
    $
    39,719
    
    
    $
    52,668Gain on sales of real estate properties
    
    
    (40,405
    )
    
    
    (3,275
    )
    
    
    (7,483
    )Real estate depreciation and amortization
    
    
    53,499
    
    
    
    64,662
    
    
    
    62,758Total adjustments
    
    
    13,094
    
    
    
    61,387
    
    
    
    55,275Funds from Operations  Basic and Diluted
    
    $
    73,156
    
    
    $
    101,106
    
    
    $
    107,943Weighted average common shares outstanding  Basic
    
    
    47,536,133
    
    
    
    46,527,857
    
    
    
    46,465,215Weighted average common shares outstanding  Diluted
    
    
    48,291,330
    
    
    
    47,498,937
    
    
    
    47,406,798Funds from Operations per Common Share  Basic
    
    $
    1.54
    
    
    $
    2.17
    
    
    $
    2.32Funds from Operations per Common Share  Diluted
    
    $
    1.51
    
    
    $
    2.13
    
    
    $
    2.28
  6




---



##### 



Managements Discussion and Analysis of Financial Condition  AND RESULTS OF OPERATIONS
 Results of Operations  2007 Compared to 2006
    7




---



##### 



Managements Discussion and Analysis of Financial Condition  AND RESULTS OF OPERATIONS
 Change(Dollars in thousands)
    
    2007
    
    2006
    
    $
    
    %REVENUESMaster lease rent
    
    $
    61,799
    
    
    $
    58,140
    
    
    $
    3,659
    
    
    
    6.3
    %Property operating
    
    
    129,181
    
    
    
    125,394
    
    
    
    3,787
    
    
    
    3.0
    %Straight-line rent
    
    
    1,044
    
    
    
    2,415
    
    
    
    (1,371
    )
    
    
    -56.8
    %Mortgage interest
    
    
    1,752
    
    
    
    5,101
    
    
    
    (3,349
    )
    
    
    -65.7
    %Other operating
    
    
    18,817
    
    
    
    21,742
    
    
    
    (2,925
    )
    
    
    -13.5
    %212,593
    
    
    
    212,792
    
    
    
    (199
    )
    
    
    -0.1
    %EXPENSESGeneral and administrative
    
    
    20,619
    
    
    
    16,856
    
    
    
    3,763
    
    
    
    22.3
    %Property operating
    
    
    74,696
    
    
    
    68,790
    
    
    
    5,906
    
    
    
    8.6
    %Other operating
    
    
    
    
    
    
    173
    
    
    
    (173
    )
    
    
    -100.0
    %Impairments
    
    
    
    
    
    
    4,111
    
    
    
    (4,111
    )
    
    
    -100.0
    %Bad debts,
net of recoveries
    
    
    229
    
    
    
    861
    
    
    
    (632
    )
    
    
    -73.4
    %Interest
    
    
    50,378
    
    
    
    52,954
    
    
    
    (2,576
    )
    
    
    -4.9
    %Depreciation
    
    
    45,427
    
    
    
    43,157
    
    
    
    2,270
    
    
    
    5.3
    %Amortization
    
    
    4,567
    
    
    
    9,914
    
    
    
    (5,347
    )
    
    
    -53.9
    %195,916
    
    
    
    196,816
    
    
    
    (900
    )
    
    
    -0.5
    %INCOME FROM CONTINUING OPERATIONS
    
    
    16,677
    
    
    
    15,976
    
    
    
    701
    
    
    
    4.4
    %DISCONTINUED OPERATIONSIncome from discontinued operations
    
    
    10,069
    
    
    
    22,041
    
    
    
    (11,972
    )
    
    
    -54.3
    %Impairments
    
    
    (7,089
    )
    
    
    (1,573
    )
    
    
    (5,516
    )
    
    
    350.7
    %Gain on sales of real estate properties
    
    
    40,405
    
    
    
    3,275
    
    
    
    37,130
    
    
    
    1,133.7
    %INCOME FROM DISCONTINUED OPERATIONS
    
    
    43,385
    
    
    
    23,743
    
    
    
    19,642
    
    
    
    82.7
    %NET INCOME
    
    $
    60,062
    
    
    $
    39,719
    
    
    $
    20,343
    
    
    
    51.2
    %
  
    
    Master lease rental income increased $3.7 million, or 6.3%, from 2006 to 2007. During 2007,
the Company recognized incremental master lease rental income of approximately $2.5 million
from its 2006 acquisitions and recognized approximately $0.5 million in master lease rental
income from a $7.3 million acquisition in 2007. The Company also recognized incremental master
lease rental income of approximately $0.4 million related to new master lease agreements
executed during 2006 on properties whose income was previously reported in property operating
income. Annual rent increases also attributed to an approximate $1.2 million increase from
2006 and 2007. These increases were offset partially by a decrease of approximately $0.9
million in master lease rental income related to properties whose master lease agreements
expired during 2007. As such, subsequent to the expiration of the master lease, rather than
recording rental income under a master lease, the underlying tenant rents were reported in
property operating income.
 
    
    Property operating income increased $3.8 million, or 3.0%, from 2006 to 2007. During 2007,
two properties previously under construction commenced operations resulting in
approximately $1.4 million in rental income. Also, the Company acquired $23.2 million of managed
real estate properties during 2007 resulting in additional property operating income of
approximately $0.6 million, and the Company began recognizing in property operating income the
underlying tenant rents totaling approximately $0.6 million relating to properties whose master
lease agreements had expired. The Company also received during 2007 a lump sum payment of
approximately $0.3 million related to a
 8




---



##### 



Managements Discussion and Analysis of Financial Condition  AND RESULTS OF OPERATIONS
 bankruptcy settlement with one tenant. The remaining $1.0 million increase was generally
related to revenue generated from individually insignificant new leases and from annual rent
increases.
    
    Straight-line rent decreased $1.4 million, or 56.8%, from 2006 to 2007. Straight-line rent
decreased approximately $0.7 million from 2006 to 2007 due to a favorable adjustment recorded
in 2006 on several leases related to one operator. Also, during 2006, the Company recorded
favorable adjustments to straight-line rent totaling approximately $0.5 million related to
amendments to certain leases which extended the maturity dates of the leases.
    
    Mortgage interest income decreased $3.3 million, or 65.7%, from 2006 to 2007 mainly due to a
$4.0 million decrease in interest income related to the repayment of seven mortgage notes
receivable in 2006, offset partially by the addition of two mortgage notes receivable during
2006 and two mortgage notes receivable during 2007 resulting in an increase in interest income
during 2007 of approximately $0.6 million.
    
    Other operating income decreased $2.9 million, or 13.5%, from 2006 to 2007. During 2006, the
Company recognized prepayment fees related to the prepayment of two mortgage notes receivable
totaling approximately $2.2 million and recognized approximately $1.0 million more in lease
guaranty income than in 2007. These decreases were offset partially by the recognition of an
additional $0.7 million during 2007 related to replacement rent received from one operator.
  
    
    General and administrative expenses increased $3.8 million, or 22.3%, from 2006 to 2007. This
increase was attributable mainly to higher compensation-related expenses in 2007 of
approximately $2.4 million related mainly to a $1.5 million charge recorded in 2007 related to
the retirement or termination of six employees and $0.9 million related to annual increases in
the executive retirement plan liability, annual salary increases and amortization expense
recognized on restricted shares. Also, the Company accrued approximately $0.7 million in
additional state taxes as discussed in Note 1 to the Consolidated Financial Statements.
    
    Property operating expenses increased $5.9 million, or 8.6%, from 2006 to 2007. This increase
was attributable mainly to additional expenses of approximately $1.2 million related to two
properties that commenced operations during 2007 that were previously under construction.
Also, the Company began recognizing expenses relating to properties whose triple-net master
lease agreements had expired totaling approximately $0.8 million, the Company acquired $23.2
million of managed real estate properties resulting in additional property operating expenses
of approximately $0.3 million, and utility rates and real estate tax increased in 2007
resulting in additional expenses of approximately $0.9 million and $1.2 million, respectively.
Further, during 2007, the Company recorded straight-line rent expense of approximately $0.8
million (of which $0.6 million was related to prior years) associated with ground leases where
the Company is the lessee.
    
    Impairment charges totaling $4.1 million were recognized in 2006 related to a patient
accounts receivable acquired by the Company as part of a troubled debt restructuring with a
healthcare provider. See Note 5 to the Consolidated Financial Statements for additional
information on these impairment charges.
    
    Interest expense decreased $2.6 million, or 4.9%, from 2006 to 2007. The decrease in interest
expense was mainly attributable to an increase in the capitalization of interest of
approximately $2.7 million related to the Companys development activities and a decrease of
approximately $0.7 million related to the payoff of the 9.49% senior notes due 2006. These
decreases in interest expense were offset partially by an increase in interest expense of
approximately $1.2 million on the unsecured credit facility due mainly to an increase in the
weighted average balance outstanding in 2007 compared to 2006.
 9




---



##### 



Managements Discussion and Analysis of Financial Condition  AND RESULTS OF OPERATIONS
 
    
    Depreciation expense increased $2.3 million, or 5.3%, from 2006 to 2007 mainly due to the
acquisition of real estate properties, the commencement of operations of two buildings during
2007, as well as additional building and tenant improvements during 2006 and 2007.
    
    Amortization expense decreased $5.3 million, or 53.9%, from 2006 to 2007, mainly due to a
decrease in amortization expense recognized on lease intangibles recorded related to
properties acquired during 2003 and 2004 which are becoming fully amortized.
  2006 Compared to 2005
  Change(Dollars in thousands)
    
    2006
    
    
    2005
    
    
    $
    
    
    %REVENUESMaster lease rent
    
    $
    58,140
    
    
    $
    48,177
    
    
    $
    9,963
    
    
    
    20.7
    %Property operating
    
    
    125,394
    
    
    
    133,042
    
    
    
    (7,648
    )
    
    
    -5.7
    %Straight-line rent
    
    
    2,415
    
    
    
    2,381
    
    
    
    34
    
    
    
    1.4
    %Mortgage interest
    
    
    5,101
    
    
    
    5,565
    
    
    
    (464
    )
    
    
    -8.3
    %Other operating
    
    
    21,742
    
    
    
    17,580
    
    
    
    4,162
    
    
    
    23.7
    %212,792
    
    
    
    206,745
    
    
    
    6,047
    
    
    
    2.9
    %EXPENSESGeneral and administrative
    
    
    16,856
    
    
    
    16,086
    
    
    
    770
    
    
    
    4.8
    %Property operating
    
    
    68,790
    
    
    
    70,501
    
    
    
    (1,711
    )
    
    
    -2.4
    %Other operating
    
    
    173
    
    
    
    55
    
    
    
    118
    
    
    
    214.5
    %Impairments
    
    
    4,111
    
    
    
    
    
    
    
    4,111
    
    
    
    
    %Bad debts,
net of recoveries
    
    
    861
    
    
    
    1,262
    
    
    
    (401
    )
    
    
    -31.8
    %Interest
    
    
    52,954
    
    
    
    47,984
    
    
    
    4,970
    
    
    
    10.4
    %Depreciation
    
    
    43,157
    
    
    
    38,852
    
    
    
    4,305
    
    
    
    11.1
    %Amortization
    
    
    9,914
    
    
    
    12,112
    
    
    
    (2,198
    )
    
    
    -18.1
    %196,816
    
    
    
    186,852
    
    
    
    9,964
    
    
    
    5.3
    %INCOME FROM CONTINUING
OPERATIONS
    
    
    15,976
    
    
    
    19,893
    
    
    
    (3,917
    )
    
    
    -19.7
    %DISCONTINUED OPERATIONSIncome from discontinued
operations
    
    
    22,041
    
    
    
    26,005
    
    
    
    (3,964
    )
    
    
    -15.2
    %Impairments
    
    
    (1,573
    )
    
    
    (713
    )
    
    
    (860
    )
    
    
    120.6
    %Gain on sales of real estate
properties
    
    
    3,275
    
    
    
    7,483
    
    
    
    (4,208
    )
    
    
    -56.2
    %INCOME FROM
DISCONTINUED OPERATIONS
    
    
    23,743
    
    
    
    32,775
    
    
    
    (9,032
    )
    
    
    -27.6
    %NET INCOME
    
    $
    39,719
    
    
    $
    52,668
    
    
    $
    (12,949
    )
    
    
    -24.6
    %
 10




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##### 



Managements Discussion and Analysis of Financial Condition  AND RESULTS OF OPERATIONS
  
    
    Master lease rental income increased $10.0 million, or 20.7%, from 2005 to 2006. During 2006,
the Company acquired $65.0 million of real estate properties pursuant to master lease
agreements resulting in additional master lease rental income in 2006 of approximately $2.7
million. The Company also recognized master lease income of $5.4 million related to new master
lease agreements executed during 2005 on properties whose income was previously reported in
property operating income. The remaining $2.0 million increase was generally attributable to
annual rent increases.
 
    
    Property operating income decreased $7.6 million, or 5.7%, from 2005 to 2006. During the
fourth quarter of 2005, the Company entered into master lease agreements related to properties
whose gross revenues were previously reported in property operating income, resulting in a
$7.4 million decrease in property operating income from 2005 to 2006.
 
    
    Mortgage interest income decreased $0.5 million, or 8.3%, from 2005 to 2006 mainly due to the
repayment of seven mortgage notes receivable in 2006, resulting in a decrease to mortgage
interest income of $3.1 million, offset partially by the acquisition of approximately $32.9
million of mortgage notes receivable during 2006, resulting in additional mortgage interest
income of $2.5 million.
 
    
    Other operating income increased $4.2 million, or 23.7%, from 2005 to 2006. During 2006, the
Company recognized prepayment fees related to the prepayment of two mortgage notes receivable
totaling approximately $2.2 million, recognized replacement rent of $1.8 million from one
operator and received bankruptcy liquidation proceeds of $0.8 million related to past due
rents due from a former operator. These increases in income were offset partially by a
decrease in interest income recognized on several notes receivable totaling approximately $0.6
million.
  
    
    General and administrative expenses increased $0.8 million, or 4.8%, for 2006 compared to
2005 due mainly to an increase in the liability and related expense for the Companys pension
plan totaling approximately $0.8 million and additional compensation expense of approximately
$0.2 million from the adoption and implementation of SFAS No. 123(R), Share-Based Payment.
 
    
    Property operating expenses decreased $1.7 million, or 2.4%, from 2005 to 2006 mainly due to
the execution of master lease agreements in the fourth quarter of 2005 related to properties
previously managed by the Company whose expenses were reflected in property operating expense.
 
    
    Impairment charges totaling $4.1 million were recognized in 2006 related to a patient
accounts receivable acquired by the Company in 2005 as part of a troubled debt restructuring
with a healthcare provider. See Note 5 to the Consolidated Financial Statements for additional
information on these impairment charges.
 
    
    Interest expense increased $5.0 million, or 10.4%, from 2005 to 2006. The increase in
interest expense was mainly attributable to additional principal amounts drawn on the
Companys unsecured credit facility, resulting in additional interest expense of $5.6 million
compared to 2005. Also, interest expense on the Companys interest rate swaps increased $1.3
million during 2006 due to rising interest rates. These interest rate swaps were terminated in
June 2006. Additionally, the Company recognized $0.8 million in additional interest expense
related to a note payable entered into in 2005. These increases were partially offset by a
decrease in interest expense of $2.3 million related to the senior notes due 2006 which were
repaid in April 2006.
 
    
    Depreciation expense increased $4.3 million, or 11.1%, from 2005 to 2006. The increase in
depreciation expense was mainly attributable to the acquisition of real estate properties, as
well as additional building and tenant improvements during the two-year period, resulting in
additional
 11




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##### 



Managements Discussion and Analysis of Financial Condition  AND RESULTS OF OPERATIONS
 depreciation expense of approximately $3.2 million. Also, in 2006, the Company reclassified amounts
related to properties acquired in prior years from land to building resulting in an increase
of $1.8 million to depreciation expense related to prior years. The Company also recorded to
depreciation expense in 2006 and 2005 estimated casualty losses of approximately $0.8 million
and $1.9 million, respectively, related to hurricane damage sustained in late 2005, resulting
in a decrease of approximately $1.1 million in depreciation expense from 2005 to 2006.
 
    
    Amortization expense decreased $2.2 million, or 18.1%, from 2005 to 2006, mainly due to a
decrease in amortization expense recognized on lease intangibles recorded related to
properties acquired during 2003 and 2004 which are becoming fully amortized.
  Liquidity and Capital Resources
  Key Indicators
  
    
    Debt metrics;
 
    
    Dividend payout percentage;
 
    
    Interest rates, underlying treasury rates, debt market spreads and equity markets.
  Contractual Obligations
  12




---



##### 



Managements Discussion and Analysis of Financial Condition  AND RESULTS OF OPERATIONS
 Payments due by periodLess than
    
    1 - 3
    
    3 - 5
    
    More than(Dollars in thousands)
    
    Total
    
    1 year
    
    years
    
    years
    
    5 yearsLong-term debt obligations (1)
    
    $
    1,000,022
    
    
    $
    46,889
    
    
    $
    229,774
    
    
    $
    352,254
    
    
    $
    371,105Operating lease commitments (2)
    
    
    217,419
    
    
    
    3,055
    
    
    
    6,264
    
    
    
    5,188
    
    
    
    202,912Construction in progress(3)
    
    
    178,153
    
    
    
    102,434
    
    
    
    75,719
    
    
    
    
    
    
    
    Tenant improvements (4)
    
    
    14,549
    
    
    
    14,549
    
    
    
    
    
    
    
    
    
    
    
    Deferred gain (5)
    
    
    4,598
    
    
    
    4,598
    
    
    
    
    
    
    
    
    
    
    
    Pension obligation (6)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Total contractual obligations
    
    $
    1,414,741
    
    
    $
    171,525
    
    
    $
    311,757
    
    
    $
    357,442
    
    
    $
    574,017
 
 (1)
    
    The amounts shown include estimated interest on total debt other than the unsecured
credit facility. Excluded from the table above are the premium on the Senior Notes due 2011 of
$0.9 million and the discount on the Senior Notes due 2014 of $1.0 million which are included
in notes and bonds payable on the Companys Consolidated Balance Sheet as of December 31,
2007. The Companys long-term debt principal obligations are presented in more detail in the
table below. ContractualPrincipal
    
    Principal
    
    
    
    InterestBalance at
    
    Balance at
    
    
    
    Rates atDecember 31,
    
    December 31,
    
    Maturity
    
    December 31,
    
    Interest
    
    Principal(Dollars in millions)
    
    2007
    
    2006
    
    Date
    
    2007
    
    Payments
    
    PaymentsUnsecured credit facility(a)
    
    $
    136.0
    
    
    $
    190.0
    
    
    1/09
    
    LIBOR + 0.90%
    
    Quarterly
    
    At maturitySenior notes due 2011
    
    
    300.0
    
    
    
    300.0
    
    
    5/11
    
    
    8.125%
    
    
    Semi-Annual
    
    At maturitySenior notes due 2014
    
    
    300.0
    
    
    
    300.0
    
    
    4/14
    
    
    5.125%
    
    
    Semi-Annual
    
    At maturityMortgage notes payable
    
    
    49.4
    
    
    
    60.1
    
    
    5/11-7/26
    
    
    5.49%-8.50%
    
    
    Monthly
    
    Monthly$
    785.4
    
    
    $
    850.1
 
 (a)
    
    The Company incurred an annual facility fee of 0.20% on the Unsecured Credit
Facility during 2007.(2)
    
    Includes primarily one office lease and ground leases related to 33 real estate
investments for which the Company is currently making payments.(3)
    
    Includes remaining budgeted fundings on the construction of 10 buildings, including
tenant improvements. The payments due by period are estimated based on cash funding
projections of each project.(4)
    
    Includes tenant improvement allowance obligations remaining on ten properties
previously constructed by the Company, one property acquired by the Company during 2007, and
one property developed by a joint venture in which the Company holds a 75% non-controlling
equity interest. For purposes of this table, the Company has assumed that these obligations
will be funded in 2008.(5)
    
    As part of the sale of its senior living assets in 2007, the Company recorded a $5.7
million deferred gain related to one tenant under a lease assigned to one buyer. The amounts
the Company will pay will be based upon the tenants performance under its lease through July
31, 2011. As of December 31, 2007, the Company had made payments totaling $1.1 million to the
buyer which reduced the Companys deferred gain. The payment or timing of future payments, if
any, is unknown. For purposes of this table, the Company has included the entire deferred gain
in the less-than-one-year column.(6)
    
    At December 31, 2007, three employees and five non-employee directors were eligible
to retire under the Executive Retirement Plan or the Retirement Plan for Outside Directors. If
these individuals retired at normal retirement age and received full retirement benefits based
upon the terms of each applicable plan, the future benefits to be paid are estimated to be
approximately $34.5 million as of December 31, 2007, of which approximately $84,000 is
currently being paid annually to one employee who is retired. Because the Company does not
know when these individuals will retire, it has not projected when these amounts would be paid
in this table. At December 31, 2007, the Company had recorded a $15.6 million liability,
included in other liabilities, related to the pension plan obligations in accordance with
applicable accounting literature.  13




---



##### 



Managements Discussion and Analysis of Financial Condition  AND RESULTS OF OPERATIONS
     Capital Markets
  Security Deposits and Letters of Credit
  Acquisitions, Dispositions and Mortgage Repayments
 2007 Acquisitions
  2007 Dispositions
  14




---



##### 



Managements Discussion and Analysis of Financial Condition  AND RESULTS OF OPERATIONS
  Purchase Options
   onstruction in Progress and Other Commitments
   15




---



##### 



Managements Discussion and Analysis of Financial Condition  AND RESULTS OF OPERATIONS
  .
  Operating Leases
  Dividends
  Quarterly
    
    Date of
    
    Date of
    
    Date Paid/Quarter
    
    Dividend
    
    Declaration
    
    Record
    
    *Payable4th Quarter 2006
    
    $
    0.660
    
    
    January 23, 2007
    
    February 15, 2007
    
    March 2, 2007Special dividend
    
    $
    4.750
    
    
    March 26, 2007
    
    April 16, 2007
    
    May 2, 20071st Quarter 2007
    
    $
    0.660
    
    
    April 24, 2007
    
    May 15, 2007
    
    June 1, 20072nd Quarter 2007
    
    $
    0.385
    
    
    July 24, 2007
    
    August 15, 2007
    
    September 4, 20073rd Quarter 2007
    
    $
    0.385
    
    
    October 23, 2007
    
    November 15, 2007
    
    December 3, 20074th Quarter 2007
    
    $
    0.385
    
    
    January 29, 2007
    
    February 15, 2008
    
    * March 3, 2008
   Liquidity
   16




---



##### 



Managements Discussion and Analysis of Financial Condition  AND RESULTS OF OPERATIONS
  Impact of Inflation
   New Accounting Pronouncements
  Market Risk
    17




---



##### 



Managements Discussion and Analysis of Financial Condition  AND RESULTS OF OPERATIONS
 Impact on Earningsand Cash FlowsOutstanding
    
    
    Calculated
    
    
    Assuming 10%
    
    
    Assuming 10%Principal
    
    
    Annual
    
    
    Increase
    
    
    DecreaseBalance
    
    
    Interest
    
    
    in Market
    
    
    in Market(Dollars in thousands)
    
    as of 12/31/07
    
    
    Expense(1)
    
    
    Interest Rates
    
   
    Interest RatesVariable Rate DebtUnsecured Credit Facility due 2009
    
    $
    136,000
    
    
    $
    8,337
    
    
    $
    (711
    )
    
    $
    711Variable Rate ReceivablesMortgage Notes
    
    $
    10,739
    
    
    $
    680
    
    
    $
    (56
    )
    
    $
    56
 Fair ValueCarrying
    
    
    
    
    
    Assuming 10%
    
    Assuming 10%Value at
    
    
    
    
    
    Increase
    
    DecreaseDecember 31,
    
    December 31,
    
    in Market
    
    in Market
    
    December 31,(Dollars in thousands)
    
    2007
    
    2007
    
    Interest Rates
    
    Interest Rates
    
    2006(2)Fixed Rate DebtSenior Notes due 2011,
including premium
    
    $
    300,864
    
    
    $
    325,661
    
    
    $
    322,704
    
    
    $
    328,659
    
    
    $
    312,777Senior Notes due 2014,
net of discount
    
    
    298,976
    
    
    
    307,946
    
    
    
    302,193
    
    
    
    313,770
    
    
    
    288,434Mortgage Notes Payable
    
    
    49,449
    
    
    
    51,270
    
    
    
    50,117
    
    
    
    52,470
    
    
    
    61,688$
    649,289
    
    
    $
    684,877
    
    
    $
    675,014
    
    
    $
    694,899
    
    
    $
    662,899Fixed Rate ReceivablesMortgage Notes
    
    $
    19,378
    
    
    $
    19,279
    
    
    $
    18,294
    
    
    $
    20,336
    
    
    $
    70,389Other Notes
    
    
    624
    
    
    
    511
    
    
    
    486
    
    
    
    538
    
    
    
    9,401$
    20,002
    
    
    $
    19,790
    
    
    $
    18,780
    
    
    $
    20,874
    
    
    $
    79,790
 
 (1)
    
    Annual interest expense was calculated using the December 31, 2007 market rate of
6.13% and a constant principal balance.(2)
    
    Except as otherwise noted, fair values as of December 31, 2006 represent fair values
of obligations or receivables that were outstanding as of that date, and do not reflect the
effect of any subsequent changes in principal balances and/or additions or extinguishments of
instruments. Off-Balance Sheet Arrangements
  Cautionary Language Regarding Forward-Looking Statements
  18




---



##### 



Managements Discussion and Analysis of Financial Condition  AND RESULTS OF OPERATIONS
  Application of Critical Accounting Policies to Accounting Estimates
    Valuation of Long-Lived and Intangible Assets and Goodwill
   19




---



##### 



Managements Discussion and Analysis of Financial Condition  AND RESULTS OF OPERATIONS
 Capitalization of Costs
       141(R))
 20




---



##### 



Managements Discussion and Analysis of Financial Condition  AND RESULTS OF OPERATIONS
 Depreciation of Real Estate Assets and Amortization of Related Intangible Assets
      Allowance for Doubtful Accounts and Credit Losses
  21




---



##### 



Managements Discussion and Analysis of Financial Condition  AND RESULTS OF OPERATIONS
 Accounts Receivable
   
    
    type of contractual arrangement under which the receivable was recorded, e.g., a
mortgage note, a triple net lease, a gross lease, a sponsor guaranty agreement or some
other type of agreement;
    
    tenants or debtors reason for slow payment;
    
    industry influences and healthcare segment under which the tenant or debtor operates;
    
    evidence of willingness and ability of the tenant or debtor to pay the receivable;
    
    credit-worthiness of the tenant or debtor;
    
    collateral, security deposit, letters of credit or other monies held as security;
    
    tenants or debtors historical payment pattern;
    
    other contractual agreements between the tenant or debtor and the Company;
    
    relationship between the tenant or debtor and the Company;
    
    state in which the tenant or debtor operates; and
    
    existence of a guarantor and the willingness and ability of the guarantor to pay the
receivable.
   Mortgage Notes and Notes Receivable
  22




---



##### 



Managements Discussion and Analysis of Financial Condition  AND RESULTS OF OPERATIONS
  Variable Interest Entity Analysis
  MANAGEMENTS ANNUAL REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING
   23




---



##### 



Managements Discussion and Analysis of Financial Condition  AND RESULTS OF OPERATIONS
  24




---



##### 



Report of  INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
 
    Internal Control -
Integrated Framework
 /s/ BDO Seidman, LLP 
 25




---



##### 



Report of  INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
 
 Internal Control-Integrated
Framework
      /s/ BDO Seidman, LLP 
 26




---



##### 



Consolidated
 December 31,(Dollars in thousands, except per share amounts)
    
    2007
    
    2006AssetsReal estate properties:Land
    
    $
    102,321
    
    
    $
    121,330Buildings, improvements and lease intangibles
    
    
    1,483,547
    
    
    
    1,737,126Personal property
    
    
    16,305
    
    
    
    22,707Construction in progress
    
    
    94,457
    
    
    
    47,1631,696,630
    
    
    
    1,928,326Less accumulated depreciation
    
    
    (345,457
    )
    
    
    (373,706
    )Total real estate properties, net
    
    
    1,351,173
    
    
    
    1,554,620Cash and cash equivalents
    
    
    8,519
    
    
    
    1,950Mortgage notes receivable
    
    
    30,117
    
    
    
    73,856Assets held for sale and discontinued operations, net
    
    
    15,639
    
    
    
    Other assets, net
    
    
    90,044
    
    
    
    106,177Total assets
    
    $
    1,495,492
    
    
    $
    1,736,603Liabilities and Stockholders EquityLiabilities:Notes and bonds payable
    
    $
    785,289
    
    
    $
    849,982Accounts payable and accrued liabilities
    
    
    37,376
    
    
    
    32,448Liabilities of discontinued operations
    
    
    34
    
    
    
    Other liabilities
    
    
    40,798
    
    
    
    28,501Total liabilities
    
    
    863,497
    
    
    
    910,931Commitments and contingenciesStockholders equity:Preferred stock, $.01 par value; 50,000,000
shares authorized; none issued and outstanding
    
    
    
    
    
    
    Common stock, $.01 par value; 150,000,000
shares authorized; 50,691,331 and 47,805,448 shares issued and
outstanding at
December 31, 2007 and 2006, respectively
    
    
    507
    
    
    
    478Additional paid-in capital
    
    
    1,286,071
    
    
    
    1,211,234Accumulated other comprehensive loss
    
    
    (4,346
    )
    
    
    (4,035
    )Cumulative net income
    
    
    695,182
    
    
    
    635,120Cumulative dividends
    
    
    (1,345,419
    )
    
    
    (1,017,125
    )Total stockholders equity
    
    
    631,995
    
    
    
    825,672Total liabilities and stockholders equity
    
    $
    1,495,492
    
    
    $
    1,736,603
  27




---



##### 



Consolidated
 Year Ended December 31,(Dollars in thousands, except per share data)
    
    2007
    
    2006
    
    2005RevenuesMaster lease rent
    
    $
    61,799
    
    
    $
    58,140
    
    
    $
    48,177Property operating
    
    
    129,181
    
    
    
    125,394
    
    
    
    133,042Straight-line rent
    
    
    1,044
    
    
    
    2,415
    
    
    
    2,381Mortgage interest
    
    
    1,752
    
    
    
    5,101
    
    
    
    5,565Other operating
    
    
    18,817
    
    
    
    21,742
    
    
    
    17,580212,593
    
    
    
    212,792
    
    
    
    206,745ExpensesGeneral and administrative
    
    
    20,619
    
    
    
    16,856
    
    
    
    16,086Property operating
    
    
    74,696
    
    
    
    68,790
    
    
    
    70,501Other operating
    
    
    
    
    
    
    173
    
    
    
    55Impairments
    
    
    
    
    
    
    4,111
    
    
    
    Bad debts, net of recoveries
    
    
    229
    
    
    
    861
    
    
    
    1,262Interest
    
    
    50,378
    
    
    
    52,954
    
    
    
    47,984Depreciation
    
    
    45,427
    
    
    
    43,157
    
    
    
    38,852Amortization
    
    
    4,567
    
    
    
    9,914
    
    
    
    12,112195,916
    
    
    
    196,816
    
    
    
    186,852Income From Continuing Operations
    
    
    16,677
    
    
    
    15,976
    
    
    
    19,893Discontinued OperationsIncome from discontinued operations
    
    
    10,069
    
    
    
    22,041
    
    
    
    26,005Impairments
    
    
    (7,089
    )
    
    
    (1,573
    )
    
    
    (713
    )Gain on sales of real estate properties
    
    
    40,405
    
    
    
    3,275
    
    
    
    7,483Income From Discontinued Operations
    
    
    43,385
    
    
    
    23,743
    
    
    
    32,775Net Income
    
    $
    60,062
    
    
    $
    39,719
    
    
    $
    52,668Basic Earnings per Common Share:Income from continuing operations per common share
    
    $
    0.35
    
    
    $
    0.34
    
    
    $
    0.43Discontinued operations per common share
    
    $
    0.91
    
    
    $
    0.51
    
    
    $
    0.70Net income per common share
    
    $
    1.26
    
    
    $
    0.85
    
    
    $
    1.13Diluted Earnings per Common Share:Income from continuing operations per common share
    
    $
    0.35
    
    
    $
    0.34
    
    
    $
    0.42Discontinued operations per common share
    
    $
    0.89
    
    
    $
    0.50
    
    
    $
    0.69Net income per common share
    
    $
    1.24
    
    
    $
    0.84
    
    
    $
    1.11Weighted average common shares outstanding  Basic
    
    
    47,536,133
    
    
    
    46,527,857
    
    
    
    46,465,215Weighted average common shares outstanding  Diluted
    
    
    48,291,330
    
    
    
    47,498,937
    
    
    
    47,406,798
  28




---



##### 



Consolidated
 AccumulatedAdditional
    
    
    Other
    
    
    Cumulative
    
    
    
    
    
    
    Total(Dollars in thousands,
    
    Preferred
    
    
    Common
    
    
    Paid-In
    
    
    Comprehensive
    
    
    Net
    
    
    Cumulative
    
    
    Stockholdersexcept per share data)
    
    Stock
    
    
    Stock
    
    
    Capital
    
    
    Loss
    
    
    Income
    
    
    Dividends
    
    
    EquityBalance at December 31, 2004
    
    $
    
    
    
    $
    477
    
    
    $
    1,202,984
    
    
    $
    
    
    
    $
    542,733
    
    
    $
    (765,578
    )
    
    $
    980,616Issuance of stock
    
    
    
    
    
    
    1
    
    
    
    848
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    849Stock-based compensation
    
    
    
    
    
    
    
    
    
    
    3,677
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    3,677Net income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    52,668
    
    
    
    
    
    
    
    52,668Dividends to common
shareholders
($2.625 per share)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (125,342
    )
    
    
    (125,342
    )Balance at December 31, 2005
    
    
    
    
    
    
    478
    
    
    
    1,207,509
    
    
    
    
    
    
    
    595,401
    
    
    
    (890,920
    )
    
    
    912,468Issuance of stock
    
    
    
    
    
    
    
    
    
    
    204
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    204Common stock redemption
    
    
    
    
    
    
    
    
    
    
    (481
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (481
    )Stock-based compensation
    
    
    
    
    
    
    
    
    
    
    4,002
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    4,002Net income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    39,719
    
    
    
    
    
    
    
    39,719Other comprehensive loss:Adjustment required upon
adoption of SFAS No. 158
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (1,444
    )
    
    
    
    
    
    
    
    
    
    
    (1,444
    )Other comprehensive loss
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (2,591
    )
    
    
    
    
    
    
    
    
    
    
    (2,591
    )Comprehensive income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    35,684Dividends to common
shareholders
($2.64 per share)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (126,205
    )
    
    
    (126,205
    )Balance at December 31, 2006
    
    
    
    
    
    
    478
    
    
    
    1,211,234
    
    
    
    (4,035
    )
    
    
    635,120
    
    
    
    (1,017,125
    )
    
    
    825,672Issuance of stock
    
    
    
    
    
    
    29
    
    
    
    70,545
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    70,574Common stock redemption
    
    
    
    
    
    
    
    
    
    
    (386
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (386
    )Stock-based compensation
    
    
    
    
    
    
    
    
    
    
    4,678
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    4,678Net income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    60,062
    
    
    
    
    
    
    
    60,062Other comprehensive loss
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (311
    )
    
    
    
    
    
    
    
    
    
    
    (311
    )Comprehensive income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    59,751Special
dividend to common shareholders
($4.75 per share)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (227,157
    )
    
    
    (227,157
    )Quarterly dividends to
common shareholders
($2.09 per share)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (101,137
    )
    
    
    (101,137
    )Balance at December 31, 2007
    
    $
    
    
    
    $
    507
    
    
    $
    1,286,071
    
    
    $
    (4,346
    )
    
    $
    695,182
    
    
    $
    (1,345,419
    )
    
    $
    631,995
  29




---



##### 



Consolidated
 Year Ended December 31,(Dollars in thousands)
    
    2007
    
    
    2006
    
    
    2005Operating ActivitiesNet income
    
    $
    60,062
    
    
    $
    39,719
    
    
    $
    52,668Adjustments to reconcile net income to cash provided
by operating activities:Depreciation and amortization
    
    
    53,924
    
    
    
    65,529
    
    
    
    63,529Stock-based compensation
    
    
    4,678
    
    
    
    4,002
    
    
    
    3,677Increase in straight-line rent receivable
    
    
    (1,043
    )
    
    
    (1,736
    )
    
    
    (99
    )Increase in straight-line rent liability
    
    
    954
    
    
    
    
    
    
    
    Gain on sales of real estate properties
    
    
    (40,405
    )
    
    
    (3,275
    )
    
    
    (7,483
    )Impairments
    
    
    7,089
    
    
    
    5,684
    
    
    
    713Equity in losses from unconsolidated LLCs
    
    
    309
    
    
    
    307
    
    
    
    90Provision for bad debt, net of recoveries
    
    
    198
    
    
    
    1,256
    
    
    
    1,308Changes in operating assets and liabilities:Increase in other assets
    
    
    (94
    )
    
    
    (3,062
    )
    
    
    (9,854
    )Decrease in accounts payable
and accrued liabilities
    
    
    (2,202
    )
    
    
    (1,780
    )
    
    
    (3,906
    )Increase in other liabilities
    
    
    7,450
    
    
    
    2,444
    
    
    
    963Net cash provided by operating activities
    
    
    90,920
    
    
    
    109,088
    
    
    
    101,606Investing ActivitiesAcquisition and development of real estate properties
    
    
    (130,799
    )
    
    
    (126,347
    )
    
    
    (87,399
    )Funding of mortgages and notes receivable
    
    
    (14,759
    )
    
    
    (22,794
    )
    
    
    (76,636
    )Investment in unconsolidated LLCs
    
    
    
    
    
    
    (10,654
    )
    
    
    (11,135
    )Distributions received from unconsolidated LLCs
    
    
    1,414
    
    
    
    988
    
    
    
    325Proceeds from sales of real estate
    
    
    311,927
    
    
    
    32,706
    
    
    
    124,879Proceeds from mortgage and notes receivable repayments
    
    
    65,572
    
    
    
    72,553
    
    
    
    14,095Net cash provided by (used in) investing activities
    
    
    233,355
    
    
    
    (53,548
    )
    
    
    (35,871
    )Financing ActivitiesBorrowings on notes and bonds payable
    
    
    451,840
    
    
    
    364,000
    
    
    
    250,348Repayments on notes and bonds payable
    
    
    (511,440
    )
    
    
    (287,048
    )
    
    
    (187,296
    )Special dividend paid
    
    
    (227,157
    )
    
    
    
    
    
    
    Quarterly dividends paid
    
    
    (101,137
    )
    
    
    (126,205
    )
    
    
    (125,342
    )Proceeds from issuance of common stock
    
    
    70,780
    
    
    
    567
    
    
    
    909Interest rate swap termination
    
    
    
    
    
    
    (10,127
    )
    
    
    Common stock redemption
    
    
    (386
    )
    
    
    (481
    )
    
    
    Equity issuance costs
    
    
    (206
    )
    
    
    
    
    
    
    Debt issuance costs
    
    
    
    
    
    
    (1,333
    )
    
    
    Net cash used in financing activities
    
    
    (317,706
    )
    
    
    (60,627
    )
    
    
    (61,381
    )Increase (decrease) in cash and cash equivalents
    
    
    6,569
    
    
    
    (5,087
    )
    
    
    4,354Cash and cash equivalents, beginning of year
    
    
    1,950
    
    
    
    7,037
    
    
    
    2,683Cash and cash equivalents, end of year
    
    $
    8,519
    
    
    $
    1,950
    
    
    $
    7,037Supplemental Cash Flow Information:Interest paid (including interest on interest rate swaps)
    
    $
    53,233
    
    
    $
    55,083
    
    
    $
    50,088Capitalized interest
    
    $
    4,022
    
    
    $
    1,292
    
    
    $
    1,412Company-financed real estate property sales
    
    $
    
    
    
    $
    16,906
    
    
    $
    Capital expenditures accrued
    
    $
    6,699
    
    
    $
    3,470
    
    
    $
    2,411Forgiveness of notes receivable on sale of
certain senior living assets
    
    $
    2,640
    
    
    $
    
    
    
    $
    
  30




---



##### 



Notes to
 1. Summary of Significant Accounting Policies
 Business Overview
  Principles of Consolidation
   Variable Interest Entities
    31




---



##### 



Notes to
 December 31,(Dollars in millions)
    
    2007
    
    2006
    
    2005Number of entities
    
    
    6
    
    
    
    6
    
    
    
    6Carrying amount of consolidated assets that are
collateral for the obligations of the VIE
    
    $
    
    
    
    $
    
    
    
    $
    Amounts included in the respective line items in the
Consolidated Financial Statements of the Company:Cash
    
    $
    
    
    
    $
    0.4
    
    
    $
    0.2Other assets (including accounts receivable)
    
    $
    
    
    
    $
    3.8
    
    
    $
    3.9Total liabilities
    
    $
    
    
    
    $
    2.0
    
    
    $
    2.5Income from discontinued operations
    
    $
    1.0
    
    
    $
    0.8
    
    
    $
    1.7
  December 31,(Dollars in millions)
    
    2006
    
    2005Number of entities
    
    
    15
    
    
    
    20Total assets (1)
    
    $
    32.5
    
    
    $
    34.4Net operating income (loss) (1)
    
    $
    0.5
    
    
    $
    (1.9
    )Maximum exposure to loss (2)
    
    $
    7.5
    
    
    $
    9.0
 
 (1)
    
    Net operating income (loss) for December 31, 2006 and 2005 included depreciation and
amortization of $0.8 million and $0.7 million, respectively, and subordinated management fees
of $3.4 million and $3.0 million, respectively. This financial information was provided by the
VIEs.
 (2)
    
    Maximum exposure to loss equaled the aggregate amount funded by the Company on
behalf of the VIEs as of the date specified.
 Use of Estimates in the Consolidated Financial Statements
  Segment Reporting
  Reclassifications
  32




---



##### 



Notes to
  Real Estate Properties
   Land improvements
    
    9.5 to 15 yearsBuildings and improvements
    
    3.3 to 39 yearsLease intangibles
    
    1.1 to 75 yearsPersonal property
    
    3 to 15 years
 Land Held for Development
  Accounting for Acquisitions of Real Estate Properties with In-Place Leases
   
    
    First, the Company considers whether any of the in-place lease rental rates are above-
or below-market. An asset (if the actual rental rate is above-market) or a liability (if
the actual rental rate is
 33




---



##### 



Notes to
 below-market) is calculated and recorded in an amount equal to
the present value of the future cash flows that represent the difference between the actual
lease rate and the average market rate.
    
    Second, the Company estimates an absorption period assuming the building is vacant and
must be leased up to the actual level of occupancy when acquired. During that absorption
period the owner would incur direct costs, such as tenant improvements, and would suffer
lost rental income. Likewise, the owner would have acquired a measurable asset in that,
assuming the building was vacant, certain fixed costs would be avoided because the actual
in-place lessees would reimburse a certain portion of fixed costs through expense
reimbursements during the absorption period. All of these assets (tenant improvement costs
avoided, rental income lost, and fixed costs recovered through in-place lessee
reimbursements) are estimated and recorded in amounts equal to the present value of future
cash flows.
    
    Third, the Company estimates the value of the building as if vacant. The Company uses
the same absorption period and occupancy assumptions used in step two, adding to those the
future cash flows expected in a fully occupied building. The net present value of these
future cash flows, discounted at a market rate of return, becomes the estimated as if
vacant value of the building.
    
    Fourth, the actual purchase price is allocated based on the various asset fair values
described above. The building and tenant improvements components of the purchase price are
depreciated over the useful life of the building or the average remaining term of the
in-places leases, respectively. The above- or below-market rental rate assets or
liabilities are amortized to rental income or property operating expense over the remaining
term of the above- or below-market leases. The at-market in-place leases are amortized to
amortization expense over the average remaining term of the at-market in-place leases,
customer relationship assets are amortized to amortization expense over terms applicable to
each acquisition, and any goodwill recorded would be reviewed for impairments at least
annually.
  Cash and Cash Equivalents
  Allowance for Doubtful Accounts and Credit Losses
 Accounts Receivable
  34




---



##### 



Notes to
  Mortgage Notes and Notes Receivable
     Goodwill and Other Intangible Assets
   35




---



##### 



Notes to
 Derivative Financial Instruments
  Contingent Liabilities
    Accounting for Defined Benefit Pension Plans
  Incentive Plans
   36




---



##### 



Notes to
    (Dollars in thousands, except per share data)
    
    2005Net income, as reported
    
    $
    52,668Add: Compensation expense for equity-based awards to employees, included in net income
    
    
    3,647Deduct: Compensation expense for equity-based awards to employees under the fair value method
    
    
    (3,871
    )Pro-forma net income
    
    $
    52,444Earnings per share, as reported:Basic
    
    $
    1.13Assuming dilution
    
    $
    1.11Pro-forma earnings per share:Basic
    
    $
    1.13Assuming dilution
    
    $
    1.11
 Accumulated Other Comprehensive Loss
  37




---



##### 



Notes to
  (Dollars in thousands)
    
    2007
    
    2006
    
    2005Net income
    
    $
    60,062
    
    
    $
    39,719
    
    
    $
    52,668Adjustment required upon adoption of SFAS No. 158
    
    
    
    
    
    
    (1,444
    )
    
    
    Other comprehensive loss
    
    
    (311
    )
    
    
    (2,591
    )
    
    
    Total comprehensive income
    
    $
    59,751
    
    
    $
    35,684
    
    
    $
    52,668
 Revenue Recognition
    Rental Income
  Mortgage Interest Income
 .
 Other Operating Income
   38




---



##### 



Notes to
    Year
Ended December 31,(Dollars in millions)
    
    2007
    
    
    2006
    
    
    2005Property lease guaranty revenue
    
    $
    13.9
    
    
    $
    15.2
    
    
    $
    14.7Interest income
    
    
    0.3
    
    
    
    0.3
    
    
    
    0.8Management fee income
    
    
    0.3
    
    
    
    0.4
    
    
    
    0.4Prepayment penalty income
    
    
    
    
    
    
    2.2
    
    
    
    0.1Replacement rent
    
    
    2.5
    
    
    
    1.8
    
    
    
    Income (loss) from unconsolidated joint ventures
    
    
    0.8
    
    
    
    0.6
    
    
    
    (0.1
    )Other
    
    
    1.0
    
    
    
    1.2
    
    
    
    1.7$
    18.8
    
    
    $
    21.7
    
    
    $
    17.6
 Federal Income Taxes
  State Income Taxes
  Sales and Use Taxes
  Discontinued Operations
  39




---



##### 



Notes to
    Earnings per Share
  New Pronouncements
 Accounting for Uncertainty in Income Taxes
     Fair Value Measurements
  40




---



##### 



Notes to
 The Fair Value Option for Financial Assets and Financial Liabilities
  Business Combinations and Noncontrolling Interests in Consolidated Financial Statements
  2.
Real Estate and Mortgage Notes Receivable Investments
  41




---



##### 



Notes to
 Buildings,Improvements,Number of
    
    
    
    
    
    Lease Intangibles
    
    Personal
    
    
    
    
    
    Accumulated(Dollars in thousands)
    
    Facilities(1)
    
    Land
    
    and CIP
    
    Property
    
    Total
    
    DepreciationMedical office:Texas
    
    
    28
    
    
    $
    11,782
    
    
    $
    329,979
    
    
    $
    824
    
    
    $
    342,585
    
    
    $
    (47,071
    )Tennessee
    
    
    15
    
    
    
    6,724
    
    
    
    154,074
    
    
    
    139
    
    
    
    160,937
    
    
    
    (29,766
    )Florida
    
    
    15
    
    
    
    7,111
    
    
    
    125,453
    
    
    
    154
    
    
    
    132,718
    
    
    
    (36,858
    )Other states
    
    
    48
    
    
    
    26,132
    
    
    
    406,291
    
    
    
    279
    
    
    
    432,702
    
    
    
    (87,034
    )106
    
    
    
    51,749
    
    
    
    1,015,797
    
    
    
    1,396
    
    
    
    1,068,942
    
    
    
    (200,729
    )Physician clinics:Florida
    
    
    8
    
    
    
    10,639
    
    
    
    44,169
    
    
    
    
    
    
    
    54,808
    
    
    
    (11,588
    )Virginia
    
    
    3
    
    
    
    1,623
    
    
    
    29,161
    
    
    
    127
    
    
    
    30,911
    
    
    
    (8,400
    )Other states
    
    
    21
    
    
    
    6,350
    
    
    
    83,774
    
    
    
    13
    
    
    
    90,137
    
    
    
    (17,630
    )32
    
    
    
    18,612
    
    
    
    157,104
    
    
    
    140
    
    
    
    175,856
    
    
    
    (37,618
    )Ambulatory care/surgery:Texas
    
    
    3
    
    
    
    6,848
    
    
    
    34,110
    
    
    
    74
    
    
    
    41,032
    
    
    
    (11,907
    )California
    
    
    3
    
    
    
    5,107
    
    
    
    34,161
    
    
    
    32
    
    
    
    39,300
    
    
    
    (10,667
    )Florida
    
    
    2
    
    
    
    2,310
    
    
    
    7,211
    
    
    
    
    
    
    
    9,521
    
    
    
    (1,835
    )Other states
    
    
    4
    
    
    
    3,636
    
    
    
    9,430
    
    
    
    
    
    
    
    13,066
    
    
    
    (3,357
    )12
    
    
    
    17,901
    
    
    
    84,912
    
    
    
    106
    
    
    
    102,919
    
    
    
    (27,766
    )Specialty outpatient:Missouri
    
    
    2
    
    
    
    2,254
    
    
    
    14,116
    
    
    
    
    
    
    
    16,370
    
    
    
    (4,458
    )Other states
    
    
    4
    
    
    
    1,624
    
    
    
    9,706
    
    
    
    
    
    
    
    11,330
    
    
    
    (3,014
    )6
    
    
    
    3,878
    
    
    
    23,822
    
    
    
    
    
    
    
    27,700
    
    
    
    (7,472
    )Specialty inpatient:Pennsylvania
    
    
    6
    
    
    
    1,214
    
    
    
    112,653
    
    
    
    
    
    
    
    113,867
    
    
    
    (30,643
    )Indiana
    
    
    1
    
    
    
    1,071
    
    
    
    42,335
    
    
    
    
    
    
    
    43,406
    
    
    
    (1,628
    )Other states
    
    
    7
    
    
    
    6,028
    
    
    
    72,399
    
    
    
    
    
    
    
    78,427
    
    
    
    (19,292
    )14
    
    
    
    8,313
    
    
    
    227,387
    
    
    
    
    
    
    
    235,700
    
    
    
    (51,563
    )Other:Michigan
    
    
    5
    
    
    
    193
    
    
    
    12,729
    
    
    
    183
    
    
    
    13,105
    
    
    
    (5,602
    )Texas
    
    
    
    
    
    
    5
    
    
    
    9,218
    
    
    
    
    
    
    
    9,223
    
    
    
    (1,324
    )Alabama
    
    
    1
    
    
    
    181
    
    
    
    9,304
    
    
    
    8
    
    
    
    9,493
    
    
    
    (4,096
    )Virginia
    
    
    2
    
    
    
    1,140
    
    
    
    8,036
    
    
    
    5
    
    
    
    9,181
    
    
    
    (2,293
    )Other states
    
    
    2
    
    
    
    349
    
    
    
    11,141
    
    
    
    440
    
    
    
    11,930
    
    
    
    (1,931
    )10
    
    
    
    1,868
    
    
    
    50,428
    
    
    
    636
    
    
    
    52,932
    
    
    
    (15,246
    )Land held for development
    
    
    
    
    
    
    
    
    
    
    18,554
    
    
    
    
    
    
    
    18,554
    
    
    
    Corporate Property
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    14,027
    
    
    
    14,027
    
    
    
    (5,063
    )
    
    
    
    18,554
    
    
    
    14,027
    
    
    
    32,581
    
    
    
    (5,063
    )Total owned properties
    
    
    180
    
    
    
    102,321
    
    
    
    1,578,004
    
    
    
    16,305
    
    
    
    1,696,630
    
    
    
    (345,457
    )Mortgage notes receivable
    
    
    4
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    30,117
    
    
    
    Unconsolidated LLC
investments, net
    
    
    3
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    18,356
    
    
    
    Total real estate investments
    
    
    187
    
    
    $
    102,321
    
    
    $
    1,578,004
    
    
    $
    16,305
    
    
    $
    1,745,103
    
    
    $
    (345,457
    )
 
 (1)
    
    Includes 10 lessee developments. 42




---



##### 



Notes to
 3. Real Estate Property Leases
   2008
    
    $
    169,8222009
    
    
    140,6952010
    
    
    113,8132011
    
    
    96,2922012
    
    
    77,4812013 and thereafter
    
    
    227,771$
    825,874
  Purchase Options Exercised
   Purchase Options Exercisable
  43




---



##### 



Notes to
  4. Discontinued Operations
  Senior Living Asset Sale
  Other Real Estate Asset Sales
  Assets Held for Sale and Discontinued Operations
  44




---



##### 



Notes to
   (Dollars in thousands)
    
    December 31, 2007Balance Sheet data(as of the period ended):Land
    
    $
    3,055Buildings, improvements and lease intangibles
    
    
    22,736Personal property
    
    
    7025,861Accumulated depreciation
    
    
    (10,462
    )Assets held for sale, net
    
    
    15,399Receivables
    
    
    217Other assets, net
    
    
    23Assets included in discontinued operations, net
    
    
    240Assets held for sale and discontinued operations, net
    
    $
    15,639Other liabilities
    
    
    34Liabilities of discontinued operations
    
    $
    34
 45




---



##### 



Notes to
 Year Ended December 31,(Dollars in thousands, except per share data)
    
    2007
    
    2006
    
    2005Statements of Income data(for the period ended):Revenues(1)Master lease rent
    
    $
    9,978
    
    
    $
    26,188
    
    
    $
    33,751Property operating
    
    
    588
    
    
    
    1,925
    
    
    
    3,729Straight-line rent
    
    
    (1
    )
    
    
    (119
    )
    
    
    (2,284
    )Mortgage interest
    
    
    1,841
    
    
    
    5,913
    
    
    
    3,538Other operating
    
    
    18,373
    
    
    
    19,648
    
    
    
    19,12930,779
    
    
    
    53,555
    
    
    
    57,863Expenses(2)General and administrative
    
    
    
    
    
    
    35
    
    
    
    12Property operating
    
    
    1,135
    
    
    
    1,767
    
    
    
    2,884Other operating
    
    
    16,687
    
    
    
    17,036
    
    
    
    15,882Bad debts, net of recoveries
    
    
    (31
    )
    
    
    395
    
    
    
    46Interest
    
    
    308
    
    
    
    729
    
    
    
    985Depreciation
    
    
    2,611
    
    
    
    11,519
    
    
    
    11,972Amortization
    
    
    
    
    
    
    33
    
    
    
    7720,710
    
    
    
    31,514
    
    
    
    31,858Income from Discontinued Operations
    
    
    10,069
    
    
    
    22,041
    
    
    
    26,005Impairments (3)
    
    
    (7,089
    )
    
    
    (1,573
    )
    
    
    (713
    )Gain on sales of real estate properties (4)
    
    
    40,405
    
    
    
    3,275
    
    
    
    7,483Income from Discontinued Operations
    
    $
    43,385
    
    
    $
    23,743
    
    
    $
    32,775Income
from Discontinued Operations per common share  basic
    
    $
    0.91
    
    
    $
    0.51
    
    
    $
    0.70Income
from Discontinued Operations per common share  diluted
    
    $
    0.89
    
    
    $
    0.50
    
    
    $
    0.69
 
 (1)
    
    Total revenues for the years ended December 31, 2007, 2006 and 2005 include $27.7 million, $47.8 million and
$40.5 million, respectively, related to the sale of the senior living assets; $0.7 million, $3.4 million, and
$14.9 million, respectively, related to other properties sold; and $2.4 million, $2.4 million, and $2.5 million
related to six properties currently held for sale.(2)
    
    Total expenses for the years ended December 31, 2007, 2006 and 2005 include $19.3 million, $28.8 million, and
$26.9 million, respectively, related to the sale of the senior living assets; $0.6 million, $1.7 million, and $4.0
million, respectively, related to other properties sold; and $0.8 million, $1.0 million, and $1.0 million related
to six properties currently held for sale.(3)
    
    Impairment charges for the year ended December 31, 2007 include approximately $4.1 million related to one
property sold and $3.0 million related to the properties held for sale at December 31, 2007. Impairment charges
for the year ended December 31, 2006 include $1.5 million related to one property to lower the propertys carrying
value to its estimated fair value less costs to sell in accordance with SFAS No. 144 and $0.1 million related to
one property sold.(4)
    
    The net gain for the year ended December 31, 2007 includes a net gain related to the sale of senior living
assets during 2007 of $40.2 million and a net gain of $0.2 million from the sale of a property pursuant to a
purchase option exercised by the operator. The net gain for the year ended December 31, 2006 was related to the
sale of five properties during 2006. 5. Impairment Charges
   46




---



##### 



Notes to
   6. Acquisitions, Dispositions, and Mortgage Repayments
 Acquisitions
 2007 Real Estate Acquisitions
  2007 Mortgage Note Financings
   Cash
    
    Real
    
    Mortgage
    
    
    
    
    
    Square(Dollars in millions)
    
    Consideration
    
    Estate
    
    Financing
    
    Other
    
    FootageReal estate acquisitionsTexas
    
    $
    22.3
    
    
    $
    22.3
    
    
    $
    
    
    
    $
    
    
    
    
    76,246Texas (land)
    
    
    16.1
    
    
    
    16.1
    
    
    
    
    
    
    
    
    
    
    
    Illinois (land)
    
    
    14.3
    
    
    
    14.3
    
    
    
    
    
    
    
    
    
    
    
    Virginia
    
    
    0.9
    
    
    
    0.9
    
    
    
    
    
    
    
    
    
    
    
    12,365Tennessee
    
    
    5.4
    
    
    
    7.3
    
    
    
    
    
    
    
    (1.9
    )
    
    
    75,00059.0
    
    
    
    60.9
    
    
    
    
    
    
    
    (1.9
    )
    
    
    163,611Mortgage note financings
    
    
    14.2
    
    
    
    
    
    
    
    14.2
    
    
    
    
    
    
    
    Total 2007 Acquisitions
    
    $
    73.2
    
    
    $
    60.9
    
    
    $
    14.2
    
    
    $
    (1.9
    )
    
    
    163,611
 47




---



##### 



Notes to
 2006 Real Estate Acquisitions
  2006 LLC Investments
  2006 Mortgage Note Financings
   Cash
    
    Real
    
    Mortgage
    
    
    
    
    
    Square(Dollars in millions)
    
    Consideration
    
    Estate
    
    Financing
    
    Other
    
    FootageReal estate acquisitionsIndiana
    
    $
    65.0
    
    
    $
    65.0
    
    
    $
    
    
    
    $
    
    
    
    
    175,999Texas (land)
    
    
    8.3
    
    
    
    8.3
    
    
    
    
    
    
    
    
    
    
    
    Hawaii (land)
    
    
    2.5
    
    
    
    2.5
    
    
    
    
    
    
    
    
    
    
    
    75.8
    
    
    
    75.8
    
    
    
    
    
    
    
    
    
    
    
    175,999LLC investments
    
    
    9.0
    
    
    
    
    
    
    
    
    
    
    
    9.0
    
    
    
    Mortgage note financings
    
    
    20.9
    
    
    
    
    
    
    
    37.8
    
    
    
    (16.9
    )
    
    
    Total 2006 Acquisitions
    
    $
    105.7
    
    
    $
    75.8
    
    
    $
    37.8
    
    
    $
    (7.9
    )
    
    
    175,999
 48




---



##### 



Notes to
 Dispositions
 2007 Real Estate Dispositions
 Senior Living Asset Disposition
    Other Dispositions
  49




---



##### 



Notes to
  Lease
    
    
    
    
    
    MortgageNet Real
    
    Termination/
    
    Other
    
    and OtherNet
    
    Estate
    
    Prepayment
    
    (Including
    
    Notes
    
    Gain/
    
    Square(Dollars in millions)
    
    Proceeds
    
    Investment
    
    Penalties
    
    Receivables)
    
    Receivable
    
    (Loss)
    
    FootageReal estate dispositionsSenior living assets
    
    $
    312.3
    
    
    $
    259.9
    
    
    $
    
    
    
    $
    5.9
    
    
    $
    6.3
    
    
    $
    40.2
    
    
    
    2,535,623Texas
    
    
    4.1
    
    
    
    8.2
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (4.1
    )
    
    
    72,862Tennessee
    
    
    2.1
    
    
    
    1.9
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    0.2
    
    
    
    17,464Virginia
    
    
    0.3
    
    
    
    0.3
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    3,264318.8
    
    
    
    270.3
    
    
    
    
    
    
    
    5.9
    
    
    
    6.3
    
    
    
    36.3
    
    
    
    2,629,213Mortgage note repaymentsSenior living assets
    
    
    57.1
    
    
    
    
    
    
    
    0.2
    
    
    
    
    
    
    
    56.9
    
    
    
    
    
    
    
    Total 2007 Dispositions
    
    $
    375.9
    
    
    $
    270.3
    
    
    $
    0.2
    
    
    $
    5.9
    
    
    $
    63.2
    
    
    $
    36.3
    
    
    
    2,629,213
 2006 Real Estate Dispositions
  2006 Mortgage Notes Receivable Repayments
  50




---



##### 



Notes to
  Lease
    
    
    
    
    
    MortgageNet Real
    
    Termination/
    
    Other
    
    and OtherNet
    
    Estate
    
    Prepayment
    
    (Including
    
    Notes
    
    Gain/
    
    Square(Dollars in millions)
    
    Proceeds
    
    Investment
    
    Penalties
    
    Receivables)
    
    Receivable
    
    (Loss)
    
    FootageReal estate dispositionsPennsylvania
    
    $
    11.7
    
    
    $
    8.0
    
    
    $
    0.3
    
    
    $
    0.1
    
    
    $
    
    
    
    $
    3.3
    
    
    
    50,883Alabama
    
    
    21.0
    
    
    
    21.1
    
    
    
    
    
    
    
    (0.1
    )
    
    
    
    
    
    
    
    
    
    
    152,063California
    
    
    
    
    
    
    13.4
    
    
    
    
    
    
    
    
    
    
    
    (13.4
    )
    
    
    
    
    
    
    87,000Texas
    
    
    0.3
    
    
    
    2.4
    
    
    
    
    
    
    
    
    
    
    
    (2.0
    )
    
    
    (0.1
    )
    
    
    17,30033.0
    
    
    
    44.9
    
    
    
    0.3
    
    
    
    
    
    
    
    (15.4
    )
    
    
    3.2
    
    
    
    307,246Mortgage
note repayments
    
    
    71.3
    
    
    
    
    
    
    
    2.2
    
    
    
    
    
    
    
    69.1
    
    
    
    
    
    
    
    Total 2006 Dispositions
    
    $
    104.3
    
    
    $
    44.9
    
    
    $
    2.5
    
    
    $
    
    
    
    $
    53.7
    
    
    $
    3.2
    
    
    
    307,246
 7. Other Assets
  December 31,(In millions)
    
    2007
    
    2006Straight-line rent receivables
    
    $
    23.2
    
    
    $
    22.8Equity investments in LLCs
    
    
    18.4
    
    
    
    20.1Accounts receivable
    
    
    16.9
    
    
    
    19.9Prepaid assets
    
    
    12.9
    
    
    
    14.1Above-market intangible assets, net
    
    
    6.7
    
    
    
    6.6Deferred financing costs, net
    
    
    4.1
    
    
    
    5.5Goodwill
    
    
    3.5
    
    
    
    3.5Acquired patient accounts receivable, net
    
    
    1.9
    
    
    
    2.5Customer relationship intangible asset, net
    
    
    1.3
    
    
    
    1.4Allowance for uncollectible accounts
    
    
    (1.5
    )
    
    
    (2.5
    )Notes receivable
    
    
    0.6
    
    
    
    10.4Other
    
    
    2.0
    
    
    
    1.9$
    90.0
    
    
    $
    106.2
 Unconsolidated Limited Liability Companies
  51




---



##### 



Notes to
 December 31,(Dollars in thousands)
    
    2007
    
    2006
    
    2005Net LLC investments, beginning of period
    
    $
    20,079
    
    
    $
    10,720
    
    
    $
    New investments during the period
    
    
    
    
    
    
    9,045
    
    
    
    11,135Additional investments during the period
    
    
    
    
    
    
    1,609
    
    
    
    Equity income (loss) recognized during the period
    
    
    (309
    )
    
    
    (307
    )
    
    
    (90
    )Distributions received during the period
    
    
    (1,414
    )
    
    
    (988
    )
    
    
    (325
    )Net LLC investments, end of period
    
    $
    18,356
    
    
    $
    20,079
    
    
    $
    10,720
 8. Intangible Assets and Liabilities
  Gross
    
    AccumulatedBalance at
    
    Amortization
    
    WeightedDecember 31,
    
    at December 31,
    
    Avg. Life
    
    Balance Sheet(In millions)
    
    2007
    
    2006
    
    2007
    
    2006
    
    (Years)
    
    ClassificationGoodwill
    
    $
    3.5
    
    
    $
    3.5
    
    
    $
    
    
    
    $
    
    
    
    
    N/A
    
    
    Other assetsDeferred financing costs
    
    
    10.7
    
    
    
    10.7
    
    
    
    6.6
    
    
    
    5.2
    
    
    
    4.1
    
    
    Other assetsAbove-market lease intangibles
    
    
    7.0
    
    
    
    6.9
    
    
    
    0.3
    
    
    
    0.3
    
    
    
    70.7
    
    
    Other assetsCustomer relationship intangibles
    
    
    1.5
    
    
    
    1.5
    
    
    
    0.2
    
    
    
    0.1
    
    
    
    35.6
    
    
    Other assetsBelow-market lease intangibles
    
    
    (0.4
    )
    
    
    (0.4
    )
    
    
    (0.2
    )
    
    
    (0.1
    )
    
    
    1.5
    
    
    Other liabilitiesAt-market lease intangibles
    
    
    40.3
    
    
    
    39.0
    
    
    
    35.9
    
    
    
    31.4
    
    
    
    2.9
    
    
    Real estate propertiesTotal
    
    $
    62.6
    
    
    $
    61.2
    
    
    $
    42.8
    
    
    $
    36.9
    
    
    
    33.9
  9. Notes and Bonds Payable
  December 31,(In thousands)
    
    2007
    
    2006Unsecured credit facility due 2009
    
    $
    136,000
    
    
    $
    190,000Senior notes due 2011, including premium
    
    
    300,864
    
    
    
    301,083Senior notes due 2014, net of discount
    
    
    298,976
    
    
    
    298,838Mortgage notes payable
    
    
    49,449
    
    
    
    60,061$
    785,289
    
    
    $
    849,982
  Unsecured Credit Facility due 2009
  52




---



##### 



Notes to
  Senior Notes due 2011
  December 31,(In thousands)
    
    2007
    
    2006Senior Notes due 2011 face value
    
    $
    300,000
    
    
    $
    300,000Unamortized net gain (net of discount)
    
    
    864
    
    
    
    1,083Senior Notes due 2011 carrying amount
    
    $
    300,864
    
    
    $
    301,083
 Senior Notes due 2014
  53




---



##### 



Notes to
  December 31,(In thousands)
    
    2007
    
    2006Senior Notes due 2014 face value
    
    $
    300,000
    
    
    $
    300,000Unaccreted discount
    
    
    (1,024
    )
    
    
    (1,162
    )Senior Notes due 2014 carrying amount
    
    $
    298,976
    
    
    $
    298,838
 Mortgage Notes Payable
  Investment inEffective
    
    
    
    
    
    Number
    
    
    
    
    
    Collateral at
    
    Contractual Balance atOriginal
    
    Interest
    
    Maturity
    
    of Notes
    
    
    
    
    
    December 31,
    
    December 31,
    
    December 31,(Dollars in millions)
    
    Balance
    
    Rate
    
    Date
    
    Payable
    
    Collateral (6)
    
    2007
    
    2007
    
    2006(7)Life Insurance Co. (1)
    
    $
    23.3
    
    
    
    7.765
    %
    
    
    7/26
    
    
    
    1
    
    
    MOB
    
    $
    46.8
    
    
    $
    20.0
    
    
    $
    20.5Life Insurance Co. (2)
    
    
    4.7
    
    
    
    7.765
    %
    
    
    1/17
    
    
    
    1
    
    
    MOB
    
    
    11.1
    
    
    
    3.0
    
    
    
    3.2Commercial Bank (3)
    
    
    23.4
    
    
    
    7.220
    %
    
    
    5/11
    
    
    
    5
    
    
    6 MOBs; 1 ASC
    
    
    54.2
    
    
    
    10.1
    
    
    
    12.6Commercial Bank (4)
    
    
    1.8
    
    
    
    5.550
    %
    
    
    10/32
    
    
    
    1
    
    
    OTH
    
    
    7.3
    
    
    
    1.8
    
    
    
    Life Insurance Co. (5)
    
    
    15.1
    
    
    
    5.490
    %
    
    
    1/16
    
    
    
    1
    
    
    ASC
    
    
    32.5
    
    
    
    14.5
    
    
    
    14.89
    
    
    
    
    
    
    $
    151.9
    
    
    $
    49.4
    
    
    $
    51.1
 
 (1)
    
    Payable in monthly installments of principal and interest based on a 30-year
amortization with the final payment due at maturity.(2)
    
    Payable in monthly installments of principal and interest based on a 20-year
amortization with the final payment due at maturity.(3)
    
    Payable in fully amortizing monthly installments of principal and interest due at
maturity. Originally, the Company had 8 mortgage notes totaling $35.0 million on 10 MOBs.
Three of the mortgage notes, originally totaling $11.6 million, were defeased during the
second quarter of 2006.(4)
    
    Payable in monthly installments of principal and interest based on a 27-year
amortization with the final payment due at maturity.(5)
    
    Payable in monthly installments of principal and interest based on a 10-year
amortization with the final payment due at maturity.(6)
    
    MOB-Medical office building; ASC-Ambulatory Care/Surgery; OTH-Other.(7)
    
    The December 31, 2006 balance does not include two mortgage notes totaling $9.0
million that were disposed of in the sale of the senior living assets during 2007.  Other Long-Term Debt Information
  Discount/
    
    TotalPrincipal
    
    Premium
    
    Notes and(dollars in thousands)
    
    Maturities
    
    Amortization
    
    Bonds Payable
    
    %2008
    
    $
    3,711
    
    
    $
    91
    
    
    $
    3,802
    
    
    
    0.5
    %2009(1)
    
    
    139,994
    
    
    
    102
    
    
    
    140,096
    
    
    
    17.8
    %2010
    
    
    4,296
    
    
    
    115
    
    
    
    4,411
    
    
    
    0.6
    %2011
    
    
    302,625
    
    
    
    (73
    )
    
    
    302,552
    
    
    
    38.5
    %2012
    
    
    1,719
    
    
    
    (178
    )
    
    
    1,541
    
    
    
    0.2
    %2013 and thereafter
    
    
    333,106
    
    
    
    (219
    )
    
    
    332,887
    
    
    
    42.4
    %$
    785,451
    
    
    $
    (162
    )
    
    $
    785,289
    
    
    
    100.0
    %
 
 (1)
    
    Includes $136.0 million outstanding on the Unsecured Credit Facility due 2009. 54




---



##### 



Notes to
  10. Stockholders Equity
 Common Stock
  Year Ended December 31,2007
    
    2006
    
    2005Balance, beginning of period
    
    
    47,805,448
    
    
    
    47,768,148
    
    
    
    47,701,108Issuance of stock
    
    
    2,833,434
    
    
    
    3,876
    
    
    
    29,348Restricted stock-based awards, net of forfeitures
    
    
    52,449
    
    
    
    33,424
    
    
    
    37,692Balance, end of period
    
    
    50,691,331
    
    
    
    47,805,448
    
    
    
    47,768,148
 Equity Offering
  Authorization to Repurchase Common Stock
  Accumulated Other Comprehensive Loss
  11. Benefit Plans
 Executive Retirement Plan
  55




---



##### 



Notes to
  Retirement Plan for Outside Directors
  Retirement Plan Information
  (In thousands)
    
    2007
    
    2006
    
    2005Service cost
    
    $
    1,022
    
    
    $
    995
    
    
    $
    681Interest cost
    
    
    943
    
    
    
    743
    
    
    
    487Amortization of net gain/loss
    
    
    442
    
    
    
    417
    
    
    
    169$
    2,407
    
    
    $
    2,155
    
    
    $
    1,337Net loss recognized in other comprehensive loss
    
    
    311
    
    
    
    2,591
    
    
    
    Total recognized in net periodic benefit cost and other comprehensive loss
    
    $
    2,718
    
    
    $
    4,746
    
    
    $
    1,337
   (In thousands)
    
    2007
    
    2006Benefit obligation at beginning of year
    
    $
    13,008
    
    
    $
    8,345Service cost
    
    
    1,022
    
    
    
    995Interest cost
    
    
    943
    
    
    
    743Benefits paid
    
    
    (84
    )
    
    
    (83
    )Actuarial gain/loss, net
    
    
    753
    
    
    
    3,008Benefit obligation at end of year
    
    $
    15,642
    
    
    $
    13,008
  (In thousands)
    
    2007
    
    2006Net liabilities included in accrued liabilities
    
    $
    (11,296
    )
    
    $
    (8,973
    )Amounts recognized in accumulated other comprehensive loss
    
    
    (4,346
    )
    
    
    (4,035
    )
 56




---



##### 



Notes to
  As of December 31,2007
    
    2006
    
    2005Discount rate
    
    
    6.0
    %
    
    
    6.4
    %
    
    
    6.4
    %Compensation increases
    
    
    2.7
    %
    
    
    2.7
    %
    
    
    2.7
    %
  12. Stock And Other Incentive Plans
 2007 Employees Stock Incentive Plan
   Non-Employee Directors Stock Plan
  57




---



##### 



Notes to
  2007
    
    2006
    
    2005Restricted shares, beginning of year
    
    
    1,261,613
    
    
    
    1,271,548
    
    
    
    1,307,966Granted
    
    
    65,706
    
    
    
    46,928
    
    
    
    39,220Vested
    
    
    (35,974
    )
    
    
    (56,116
    )
    
    
    (75,638
    )Forfeited
    
    
    (1,699
    )
    
    
    (747
    )
    
    
    Restricted shares, end of year
    
    
    1,289,646
    
    
    
    1,261,613
    
    
    
    1,271,548Weighted-average grant date fair value of:Restricted shares, beginning of year
    
    $
    24.85
    
    
    $
    24.37
    
    
    $
    23.56Restricted shares granted during the year
    
    $
    34.99
    
    
    $
    33.75
    
    
    $
    37.67Restricted shares vested during the year
    
    $
    33.17
    
    
    $
    21.22
    
    
    $
    17.30Restricted shares forfeited during the year
    
    $
    34.89
    
    
    $
    34.15
    
    
    $
    Restricted shares, end of year
    
    $
    25.12
    
    
    $
    24.85
    
    
    $
    24.37Grant date fair value of shares granted during the year
    
    $
    2,298,787
    
    
    $
    1,583,605
    
    
    $
    1,477,478
    Dividend Reinvestment Plan
  Employee Stock Purchase Plan
  58




---



##### 



Notes to
  2007
    
    2006
    
    2005Outstanding, beginning of year
    
    
    171,481
    
    
    
    158,026
    
    
    
    141,037Granted
    
    
    128,928
    
    
    
    148,698
    
    
    
    119,730Exercised
    
    
    (9,947
    )
    
    
    (14,958
    )
    
    
    (12,132
    )Forfeited
    
    
    (43,948
    )
    
    
    (65,135
    )
    
    
    (45,659
    )Expired
    
    
    (66,911
    )
    
    
    (55,150
    )
    
    
    (44,950
    )Outstanding and exercisable at end of year
    
    
    179,603
    
    
    
    171,481
    
    
    
    158,026Weighted-average exercise price of:Options outstanding, beginning of year
    
    $
    30.55
    
    
    $
    28.28
    
    
    $
    27.97Options granted during the year
    
    $
    33.61
    
    
    $
    28.28
    
    
    $
    34.60Options exercised during the year
    
    $
    26.11
    
    
    $
    28.34
    
    
    $
    25.78Options forfeited during the year
    
    $
    26.38
    
    
    $
    29.28
    
    
    $
    31.69Options expired during the year
    
    $
    23.61
    
    
    $
    30.39
    
    
    $
    24.86Options outstanding, end of year
    
    $
    21.58
    
    
    $
    30.55
    
    
    $
    28.28Weighted-average fair value of options granted during the year
(calculated as of the grant date)
    
    $
    8.69
    
    
    $
    6.55
    
    
    $
    7.74Intrinsic value of options exercised during the year
    
    $
    37,898
    
    
    $
    167,543
    
    
    $
    84,749Intrinsic value of options outstanding and exercisable
(calculated as of December 31)
    
    $
    684,287
    
    
    $
    1,470,003
    
    
    $
    64,729Range of
exercise prices of options outstanding (calculated as of December 31)
    
    $
    21.58-$33.61
    
    
    $
    27.07-$34.60
    
    
    $
    28.28-$28.28Weighted-average contractual life of outstanding options
(calculated as of December 31, in years)
    
    
    0.8
    
    
    
    0.8
    
    
    
    0.8
  2007
    
    2006
    
    2005Risk-free interest rates
    
    
    4.82
    %
    
    
    4.82
    %
    
    
    3.08
    %Expected dividend yields
    
    
    4.50
    %
    
    
    6.68
    %
    
    
    7.5
    %Expected life (in years)
    
    
    1.59
    
    
    
    1.46
    
    
    
    1.51Expected volatility
    
    
    22.3
    %
    
    
    19.9
    %
    
    
    19.4
    %Expected forfeiture rates
    
    
    79
    %
    
    
    76
    %
    
    
    76
    %
 59




---



##### 



Notes to
 13. Earnings Per Share
  Year Ended December 31,(Dollars in thousands, except per share data)
    
    2007
    
    2006
    
    2005Weighted Average SharesWeighted Average Shares Outstanding
    
    
    48,595,003
    
    
    
    47,803,671
    
    
    
    47,746,562Unvested Restricted Stock Shares
    
    
    (1,058,870
    )
    
    
    (1,275,814
    )
    
    
    (1,281,347
    )Weighted Average Shares  Basic
    
    
    47,536,133
    
    
    
    46,527,857
    
    
    
    46,465,215Weighted Average Shares  Basic
    
    
    47,536,133
    
    
    
    46,527,857
    
    
    
    46,465,215Dilutive effect of Restricted Stock Shares
    
    
    723,195
    
    
    
    930,052
    
    
    
    894,134Dilutive effect of Employee Stock Purchase Plan
    
    
    32,002
    
    
    
    41,028
    
    
    
    47,449Weighted Average Shares  Diluted
    
    
    48,291,330
    
    
    
    47,498,937
    
    
    
    47,406,798Earnings Available to Common StockholdersIncome from Continuing Operations
    
    $
    16,677
    
    
    $
    15,976
    
    
    $
    19,893Discontinued Operations
    
    
    43,385
    
    
    
    23,743
    
    
    
    32,775Net income
    
    $
    60,062
    
    
    $
    39,719
    
    
    $
    52,668Basic Earnings Per Common ShareIncome from Continuing Operations per common share
    
    $
    0.35
    
    
    $
    0.34
    
    
    $
    0.43Discontinued Operations per common share
    
    
    0.91
    
    
    
    0.51
    
    
    
    0.70Net income per common share
    
    $
    1.26
    
    
    $
    0.85
    
    
    $
    1.13Diluted Earnings Per Common ShareIncome from Continuing Operations per common share
    
    $
    0.35
    
    
    $
    0.34
    
    
    $
    0.42Discontinued Operations per common share
    
    
    0.89
    
    
    
    0.50
    
    
    
    0.69Net income per common share
    
    $
    1.24
    
    
    $
    0.84
    
    
    $
    1.11
 14. Commitments and Contingencies
 Construction in Progress
  60




---



##### 



Notes to
 EstimatedCompletion
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Estimated
    
    EstimatedDate 
    
    Property
    
    
    
    
    
    Approximate
    
    Investment
    
    Remaining
    
    TotalState
    
    Core and Shell
    
    Type (1)
    
    Properties
    
    Square Feet
    
    To Date
    
    Fundings
    
    InvestmentUnder construction:Texas
    
    
    1Q 2008
    
    
    MOB
    
    
    1
    
    
    
    140,221
    
    
    $
    17,476
    
    
    $
    7,438
    
    
    $
    24,914Colorado
    
    
    3Q 2008
    
    
    MOB
    
    
    2
    
    
    
    169,050
    
    
    
    12,644
    
    
    
    14,759
    
    
    
    27,403Arizona
    
    
    4Q 2008
    
    
    MOB
    
    
    2
    
    
    
    180,250
    
    
    
    8,306
    
    
    
    22,737
    
    
    
    31,043Texas
    
    
    2Q 2009
    
    
    MOB
    
    
    1
    
    
    
    125,000
    
    
    
    9,245
    
    
    
    23,755
    
    
    
    33,000Texas
    
    
    2Q 2009
    
    
    SIP
    
    
    1
    
    
    
    45,000
    
    
    
    3,230
    
    
    
    9,170
    
    
    
    12,400Texas
    
    
    2Q 2009
    
    
    MOB
    
    
    1
    
    
    
    100,000
    
    
    
    6,119
    
    
    
    19,839
    
    
    
    25,958Illinois
    
    
    3Q 2009
    
    
    MOB
    
    
    1
    
    
    
    83,600
    
    
    
    6,234
    
    
    
    19,526
    
    
    
    25,760Hawaii
    
    
    4Q 2009
    
    
    MOB
    
    
    1
    
    
    
    121,000
    
    
    
    12,649
    
    
    
    60,929
    
    
    
    73,578Land held for development:Illinois
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    8,413Texas
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    4,731Texas
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    5,41010
    
    
    
    964,121
    
    
    $
    94,457
    
    
    $
    178,153
    
    
    $
    254,056
 
 (1)
    
    MOB-Medical office building; SIP-Specialty inpatient facility Other Construction
  Operating Leases
  2008
    
    $
    3,0552009
    
    
    3,1612010
    
    
    3,1032011
    
    
    2,5822012
    
    
    2,6062013 and thereafter
    
    
    202,912$
    217,419
 61




---



##### 



Notes to
 Legal Proceedings
    62




---



##### 



Notes to
   15. Other Data
 Taxable Income (unaudited)
     Year Ended December 31,(In thousands)
    
    2007
    
    2006
    
    2005Net income
    
    $
    60,062
    
    
    $
    39,719
    
    
    $
    52,668Items to Reconcile Net Income to Taxable Income:Depreciation and amortization
    
    
    13,733
    
    
    
    19,499
    
    
    
    15,519Gain or loss on disposition of depreciable assets
    
    
    30,548
    
    
    
    5,010
    
    
    
    2,851Straight-line rent
    
    
    (1,043
    )
    
    
    (2,296
    )
    
    
    (97
    )VIE consolidation
    
    
    767
    
    
    
    1,110
    
    
    
    3,183Receivable allowances
    
    
    (4,625
    )
    
    
    2,603
    
    
    
    8,273Stock-based compensation
    
    
    7,353
    
    
    
    3,832
    
    
    
    4,314Other
    
    
    7,062
    
    
    
    5,210
    
    
    
    (2,494
    )53,795
    
    
    
    34,968
    
    
    
    31,549Taxable income (1)
    
    $
    113,857
    
    
    $
    74,687
    
    
    $
    84,217Dividends paid (2)
    
    $
    328,294
    
    
    $
    126,205
    
    
    $
    125,342
 
 (1)
    
    Before REIT dividend paid deduction.(2)
    
    Dividends paid for the year ended December 31, 2007 include the payment of a
one-time special dividend of approximately $227.2 million paid
from a portion of the proceeds received from
the sale of the senior living assets. 63




---



##### 



Notes to
 Characterization of Distributions (unaudited)
   2007
    
    2006
    
    2005Per share
    
    %
    
    Per share
    
    %
    
    Per share
    
    %Common Stock:Ordinary Income
    
    $
    1.11
    
    
    
    16.3
    %
    
    $
    1.48
    
    
    
    56.2
    %
    
    $
    1.77
    
    
    
    67.4
    %Return of Capital
    
    
    4.44
    
    
    
    64.9
    %
    
    
    1.14
    
    
    
    43.0
    %
    
    
    0.74
    
    
    
    28.2
    %20% Capital Gain
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Unrecaptured section
1250 gain
    
    
    1.29
    
    
    
    18.8
    %
    
    
    0.02
    
    
    
    0.8
    %
    
    
    0.12
    
    
    
    4.4
    %Qualified 5-year
Capital gain
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Common Stock distributions
    
    $
    6.84
    
    
    
    100.0
    %
    
    $
    2.64
    
    
    
    100.0
    %
    
    $
    2.63
    
    
    
    100.0
    %
 State Income Taxes
     (Dollars in thousands)
    
    2007
    
    2006
    
    2005State income tax expense:Texas gross margins tax
    
    $
    391
    
    
    $
    
    
    
    $
    Michigan gross receipts deferred tax liability
    
    
    215
    
    
    
    
    
    
    
    Other
    
    
    88
    
    
    
    (66
    )
    
    
    126Total state income tax expense
    
    $
    694
    
    
    $
    (66
    )
    
    $
    126State income tax payments, net of refunds
    
    $
    137
    
    
    $
    23
    
    
    $
    (3
    )
 16. Fair Value of Financial Instruments
  64




---



##### 



Notes to
  December 31, 2007
    
    December 31, 2006Carrying
    
    Fair
    
    Carrying
    
    Fair(In millions)
    
    value
    
    value
    
    value
    
    valueNotes and bonds payable
    
    $
    785.3
    
    
    $
    820.9
    
    
    $
    850.0
    
    
    $
    852.9Mortgage notes receivable
    
    $
    30.1
    
    
    $
    30.0
    
    
    $
    73.9
    
    
    $
    70.4Notes receivable, net of allowances
    
    $
    0.6
    
    
    $
    0.5
    
    
    $
    9.4
    
    
    $
    9.2
 17. Retirement and Termination Benefits
  (In thousands)
    
    Expense
    
    
    LiabilitySeverance, payroll taxes and related charges
    
    $
    1,078
    
    
    $
    1,513Accelerated vesting of deferred compensation
    
    
    443
    
    
    
    Total expense and liability recorded in 2007
    
    $
    1,521
    
    
    $
    1,513Payments
made during 2007
    
    
    
    
    
    
    (1,251
    )Balance at December 31, 2007
    
    
    
    
    
    $
    262
 18. Subsequent Events
 Dividend Declared
  65




---



##### 



Notes to
 19. Selected Quarterly Financial Data (Unaudited)
  Quarter Ended(In thousands, except per share data)
    
    March 31
    
    June 30
    
    September 30
    
    December 312007Revenues from continuing operations
    
    $
    52,681
    
    
    $
    52,375
    
    
    $
    53,623
    
    
    $
    53,914Income from continuing operations
    
    $
    2,762
    
    
    $
    4,400
    
    
    $
    4,833
    
    
    $
    4,682Discontinued operations
    
    $
    33,582
    
    
    $
    9,243
    
    
    $
    653
    
    
    $
    (93
    )Net income
    
    $
    36,344
    
    
    $
    13,643
    
    
    $
    5,486
    
    
    $
    4,589Basic Earnings per common share:Income from continuing operations
    
    $
    0.06
    
    
    $
    0.09
    
    
    $
    0.10
    
    
    $
    0.09Discontinued operations
    
    $
    0.72
    
    
    $
    0.20
    
    
    $
    0.02
    
    
    $
    Net income
    
    $
    0.78
    
    
    $
    0.29
    
    
    $
    0.12
    
    
    $
    0.09Diluted Earnings per common share:Income from continuing operations
    
    $
    0.05
    
    
    $
    0.08
    
    
    $
    0.10
    
    
    $
    0.09Discontinued operations
    
    $
    0.71
    
    
    $
    0.21
    
    
    $
    0.02
    
    
    $
    Net income
    
    $
    0.76
    
    
    $
    0.29
    
    
    $
    0.12
    
    
    $
    0.092006Revenues from continuing operations
    
    $
    51,381
    
    
    $
    54,265
    
    
    $
    54,535
    
    
    $
    52,611Income from continuing operations
    
    $
    3,242
    
    
    $
    6,716
    
    
    $
    3,899
    
    
    $
    2,119Discontinued operations
    
    $
    9,253
    
    
    $
    4,790
    
    
    $
    4,164
    
    
    $
    5,536Net income
    
    $
    12,495
    
    
    $
    11,506
    
    
    $
    8,063
    
    
    $
    7,655Basic Earnings per common share:Income from continuing operations
    
    $
    0.07
    
    
    $
    0.15
    
    
    $
    0.08
    
    
    $
    0.05Discontinued operations
    
    $
    0.20
    
    
    $
    0.10
    
    
    $
    0.09
    
    
    $
    0.11Net income
    
    $
    0.27
    
    
    $
    0.25
    
    
    $
    0.17
    
    
    $
    0.16Diluted Earnings per common share:Income from continuing operations
    
    $
    0.07
    
    
    $
    0.14
    
    
    $
    0.08
    
    
    $
    0.04Discontinued operations
    
    $
    0.19
    
    
    $
    0.10
    
    
    $
    0.09
    
    
    $
    0.12Net income
    
    $
    0.26
    
    
    $
    0.24
    
    
    $
    0.17
    
    
    $
    0.16
 66