Entergy Corporation and Subsidiaries Notes to Financial Statements 138 As of December 31, 2008, System Energy had future minimum lease payments (reflecting an implicit rate of 5.13%), which are recorded as long-term debt as follows:
## Table 0 ##
Unconsolidated Joint Ventures The following is summarized unaudited information for our unconsolidated joint ventures as of and for the year ended December 31, 2006 (square feet and dollars in thousands):
## Table 1 ##
(1) Senior housing facilities are stated in units (e. g. , studio, one or two bedroom units) and medical office buildings are measured in square feet.
(2) Represents the carrying amount of real estate assets within the joint ventures, including intangibles, after adding back accumulated depreciation and amortization.
Healthcare Sectors and Property Types We have investments in senior housing facilities, medical office buildings, hospitals, skilled nursing facilities, and other healthcare facilities.
Certain tenants of our properties are reliant on government reimbursements, such as those from Medicare and Medicaid.
See “Governmental Regulation” for the potential impact on the value of our investments and our results of operations.
The following describes the nature of the operations of our tenants and borrowers.
Senior Housing Facilities.
We have interests in 337 senior housing facilities, including four properties in unconsolidated joint ventures.
Senior housing properties include ILFs, ALFs and CCRCs, which cater to different segments of the elderly population based upon their needs.
Services provided by our tenants in these facilities are primarily paid for by the residents directly or through private insurance and are less reliant on government reimbursement programs such as Medicaid and Medicare.  ?
Independent Living Facilities.
ILFs are designed to meet the needs of seniors who choose to live in an environment surrounded by their peers with services such as housekeeping, meals and activities.
These residents generally do not need assistance with activities of daily living (“ADLs”), including bathing, eating and dressing.
However, residents have the option to contract for these services.  ?
Assisted Living Facilities.
ALFs are licensed care facilities that provide personal care services, support and housing for those who need help with ADLs yet require limited medical care.
The programs and services may include transportation, social activities, exercise and fitness programs, beauty or barber shop access, hobby and craft activities, community excursions, meals in a dining room setting and other activities sought by residents.
These facilities are often in apartment-like buildings with private residences ranging from single rooms to large apartments.
Certain ALFs may offer higher levels of personal assistance for residents with Alzheimer’s disease or other forms of dementia.
Levels of personal assistance are based in part on local regulations.  ?
Continuing Care Retirement Communities.
CCRCs provide housing and health-related services under long-term contracts.
This alternative is appealing to residents as it eliminates the need for relocating when health and medical needs change, thus allowing residents to “age in place.
” Some CCRCs require a substantial entry fee or buy-in fee, and most also charge monthly maintenance fees in exchange for a living unit, meals and some health services.
CCRCs typically require the individual to be in relatively good health and independent upon entry.
HCP, Inc.  NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) Company is required to carry forward CRP’s accounting conclusions after the acquisition relative to their primary beneficiary assessments, provided the Company does not believe CRP’s accounting to be in error.
The Company believes that its accounting for the VIEs is the appropriate application of FIN46R.
On December 21, 2007, the Company made an investment of approximately $900 million in mezzanine loans where each mezzanine borrower has been identified as a VIE.
The Company has also determined that it is not the primary beneficiary of these VIEs.
The carrying amount and classification of the related assets, liabilities and maximum exposure to loss as a result of the Company’s involvement with VIEs are presented below (in thousands):
## Table 2 ##
(1) The Company’s maximum loss exposure related to the VIE tenants represents the future minimum lease payments over the remaining term of the respective leases, which may be mitigated by re-leasing the respective properties.
The Company’s maximum loss exposure related to loans to VIEs represents the carrying amount of the respective loan.
See Notes 7 and 14 for additional description of the nature, purpose and activities of the Company’s variable interest entities and the Company’s interests therein.
The Company applies Emerging Issues Task Force (‘‘EITF’’) Issue 04-5, Investor’s Accounting for an Investment in a Limited Partnership When the Investor is the Sole General Partner and the Limited Partners Have Certain Rights (‘‘EITF 04-5’’), to investments in joint ventures.
EITF 04-5 provides guidance on the type of rights held by the limited partner(s) that preclude consolidation in circumstances in which the sole general partner would otherwise consolidate the limited partnership in accordance with GAAP.
The assessment of limited partners’ rights and their impact on the presumption of control of the limited partnership by the sole general partner should be made when an investor becomes the sole general partner and should be reassessed if (i) there is a change to the terms or in the exercisability of the rights of the limited partners, (ii) the sole general partner increases or decreases its ownership of limited partnership interests, or (iii) there is an increase or decrease in the number of outstanding limited partnership interests.
EITF 04-5 also applies to managing member interests in limited liability companies.
Investments in Unconsolidated Joint Ventures Investments in entities which the Company does not consolidate but for which the Company has the ability to exercise significant influence over operating and financial policies are reported under the equity method of accounting.
Under the equity method of accounting, the Company’s share of the investee’s earnings or losses are included in the Company’s consolidated results of operations.
The initial carrying value of investments in unconsolidated joint ventures is based on the amount paid to purchase the joint venture interest or the carrying value of the assets prior to the sale of interests in the joint venture.
To the extent that the Company’s cost basis is different from the basis reflected at the joint venture level, the basis difference is generally amortized over the life of the related assets and liabilities and included in the Company’s share of equity in earnings of the joint venture.
The Company evaluates its equity method investments for impairment based upon a
Hospital Results are as of and for the years ended December 31, 2013 and 2012 (dollars in thousands, except per bed data):
## Table 3 ##
(1) From our 2012 presentation of SPP, we removed two hospitals that were sold or classified as held for sale.
(2) Represents rental and related revenues and income from DFLs.
(3) Represents average capacity as reported by the respective tenants or operators for a twelve-month period that is a quarter in arrears from the periods presented.
Certain operators in our hospital portfolio are not required under their respective leases to provide operational data.
SPP and Total Portfolio NOI and Adjusted NOI.
SPP and total portfolio NOI primarily decreased due to a net $12 million correction in 2013 that reduced previously recognized non-cash revenues including straight-line rents and to increasing amortization of below market lease intangibles related to our Medical City Dallas hospital.
SPP and total portfolio adjusted NOI increased due to annual rent increases, a new lease on our Plano hospital and rents on our Fresno hospital that was placed in service in January 2013.
Other Income and Expense Items Interest income.
Interest income increased $62 million to $86 million for the year ended December 31, 2013.
The increase was primarily the result of interest income from the repayment of our Barchester loan in September 2013 (acquired earlier in 2013 at a discount), additional interest income earned from the second tranche of our mezzanine loan facility to Tandem Health Care in June 2013 and interest earned from our Four Seasons senior unsecured notes purchased in 2012 (see Notes 7 and 10 to the Consolidated Financial Statements).
Interest expense.
For the year ended December 31, 2013, interest expense increased $19 million to $435 million.
The increase was primarily the result of increases in the average outstanding indebtedness during 2013 compared to 2012 and a decrease of capitalized interest in 2013 related to assets that were under development in our life science and medical office segments and were placed in service during 2013 and 2012.
These increases were partially offset by a decrease in interest rates.
Our exposure to expense fluctuations related to our variable rate indebtedness is mitigated by our interest rate swap contracts.
For a more detailed discussion of our interest rate risk, see ‘‘Quantitative and Qualitative Disclosures About Market Risk’’ section in Item 7A.

Tables referenced above, in order (Table 0 first):
<table><tr><td></td><td>Amount (In Thousands)</td></tr><tr><td>2009</td><td>$47,760</td></tr><tr><td>2010</td><td>48,569</td></tr><tr><td>2011</td><td>49,437</td></tr><tr><td>2012</td><td>49,959</td></tr><tr><td>2013</td><td>50,546</td></tr><tr><td>Years thereafter</td><td>103,890</td></tr><tr><td>Total</td><td>350,161</td></tr><tr><td>Less: Amount representing interest</td><td>54,857</td></tr><tr><td>Present value of net minimum lease payments</td><td>$295,304</td></tr></table>
<table><tr><td> </td><td> </td><td> </td><td> </td><td> </td><td colspan="2"> 2006</td></tr><tr><td> Property Type</td><td> Number of Properties</td><td> Capacity-1</td><td> Square Feet</td><td> Joint Venture Investment-2</td><td> Total Revenues</td><td> Total Operating Expenses</td></tr><tr><td>Senior housing</td><td>4</td><td>412 Units</td><td>235</td><td>$20,178</td><td>$2,303</td><td>$1,428</td></tr><tr><td>Medical office building</td><td>14</td><td>N/A</td><td>789</td><td>150,875</td><td>5,205</td><td>1,674</td></tr><tr><td>Total</td><td>18</td><td></td><td>1,024</td><td>$171,053</td><td>$7,508</td><td>$3,102</td></tr></table>
<table><tr><td> VIE Type</td><td> Maximum Loss Exposure<sup>-1</sup></td><td> Asset/Liability Type</td><td> Carrying Amount</td></tr><tr><td>VIE tenants—operating leases</td><td>$783,714</td><td>Lease intangibles, net and straight-line rent receivables</td><td>$36,748</td></tr><tr><td>VIE tenants—DFLs</td><td>662,148</td><td>Net investment in DFLs</td><td>212,758</td></tr><tr><td>Senior secured loans</td><td>79,120</td><td>Loans receivable, net</td><td>79,120</td></tr><tr><td>Mezzanine loans</td><td>918,169</td><td>Loans receivable, net</td><td>918,169</td></tr></table>
<table><tr><td></td><td colspan="3">SPP</td><td colspan="3">Total Portfolio</td></tr><tr><td></td><td>2013</td><td>2012-1</td><td>Change</td><td>2013</td><td>2012</td><td>Change</td></tr><tr><td>Rental revenues-2</td><td>$64,249</td><td>$74,815</td><td>$-10,566</td><td>$69,603</td><td>$77,872</td><td>$-8,269</td></tr><tr><td>Tenant recoveries</td><td>2,457</td><td>2,326</td><td>131</td><td>2,457</td><td>2,326</td><td>131</td></tr><tr><td>Total segment revenues</td><td>$66,706</td><td>$77,141</td><td>$-10,435</td><td>$72,060</td><td>$80,198</td><td>$-8,138</td></tr><tr><td>Operating expenses</td><td>-3,812</td><td>-3,506</td><td>-306</td><td>-3,862</td><td>-3,513</td><td>-349</td></tr><tr><td>NOI</td><td>$62,894</td><td>$73,635</td><td>$-10,741</td><td>$68,198</td><td>$76,685</td><td>$-8,487</td></tr><tr><td>Straight-line rents</td><td>19,238</td><td>-554</td><td>19,792</td><td>18,378</td><td>-1,134</td><td>19,512</td></tr><tr><td>Amortization of market lease intangibles, net</td><td>-6,725</td><td>-347</td><td>-6,378</td><td>-6,824</td><td>-447</td><td>-6,377</td></tr><tr><td>Adjusted NOI</td><td>$75,407</td><td>$72,734</td><td>$2,673</td><td>$79,752</td><td>$75,104</td><td>$4,648</td></tr><tr><td>Adjusted NOI % change</td><td></td><td></td><td>3.7%</td><td></td><td></td><td></td></tr><tr><td>Property count</td><td>14</td><td>14</td><td></td><td>16</td><td>15</td><td></td></tr><tr><td>Average capacity (beds)(3)</td><td>2,132</td><td>2,056</td><td></td><td>2,175</td><td>2,087</td><td></td></tr><tr><td>Average annual rent per bed</td><td>$37,151</td><td>$37,091</td><td></td><td>$38,437</td><td>$37,679</td><td></td></tr></table>

Question: In which section the sum of NOI for Total Portfolio has the highest value?
Answer: 2012