American Realty Capital Healthcare Trust 8-K American Realty Capital Healthcare Trust, Inc. Announces First Quarter 2014 Operating Results

Table of Contents 

	Item	Page
	Financial and Operating Highlights	3
	Consolidated Balance Sheets	4
	Consolidated Statements of Income	5
	Portfolio	6 - 10
	Business Summary	6
	Equity and Investment Activity	7
	Quarterly Revenue and NOI	8
	Portfolio Diversification by State	9
	Seniors Housing / MSA Characteristics	10
	Segment Reporting	11 - 15
	Medical Office Buildings	11 - 12
	Triple-Net Leased	13 - 14
	Seniors Housing - Operating	15
	Debt Structure	16
	Non-GAAP Reconciliations	17
	Definitions	18 - 19
	Property List	20 - 24

The data and other information described in these slides are as of the date of the slides or an earlier date as indicated. Future performance may not be consistent with past performance and is subject to change and inherent risks and uncertainties.

This presentation contains certain statements that are American Realty Capital Healthcare Trust’s (“ARC HT”) and its Management’s hopes, intentions, beliefs, expectations, or projections of the future and might be considered to be forward-looking statements under Federal Securities laws. Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance, and involve risks and uncertainties. ARC HT’s actual future results may differ significantly from the matters discussed in these forward-looking statements, and we may not release revisions to these forward-looking statements to reflect changes after we’ve made the statements. Factors and risks that could cause actual results to differ materially from expectations are disclosed from time to time in greater detail in ARC HT’s filings with the Securities and Exchange Commission including, but not limited to, ARC HT’s report on Form 10-K, Quarterly Report on Form 10-Q, as well as ARC HT’s press releases.

PAGE 2 of 24

Financial and Operating Highlights

Amounts in thousands, except per share data, ratios and percentages

	Quarter ended March 31,
Financial and Operating Information	2014			2013
Total revenues	$	55,989		$	18,678
Net operating income (NOI)	$	32,510		$	13,486
Adjusted EBITDA	$	30,582		$	13,237
Dividends paid per common share	$	0.17		$	0.17
Funds from operations (FFO)	$	21,818		$	7,973
FFO per diluted share	$	0.12		$	0.10
Adjusted funds from operations (AFFO)	$	24,873		$	9,552
AFFO per diluted share	$	0.14		$	0.12
Interest expense	$	5,543		$	3,089
Adjusted interest coverage ratio		7.2	x		5.1	x
Adjusted fixed charge coverage ratio		6.7	x		5.1	x
Same store NOI increase/decrease1		N/A			N/A
Medical office		N/A			N/A
Triple-net leased		N/A			N/A
Seniors housing - operating		N/A			N/A
Seniors housing - operating: operating margin2		32.8	%		N/A

	As of March 31,
Capitalization Data	2014			2013
Real estate investments, net	$	1,777,636		$	709,081
Total assets, gross	$	1,990,910		$	1,195,921
Total debt	$	530,150		$	215,846
Non-controlling interests	$	1,851		$	3,985
Total shareholders' equity	$	1,411,817		$	953,028
Common shares and units outstanding3		183,497			114,652
Share price, end of period4	$	10.00		$	10.00
Total market capitalization	$	2,366,967		$	1,366,350
Total book capitalization	$	1,943,818		$	1,172,859
Debt to total assets, gross		26.6	%		18.0	%
Debt to total market capitalization		22.4	%		15.8	%
Debt to total book capitalization		27.3	%		18.4	%
Secured debt to total assets, gross		15.0	%		18.0	%

1. At March 31, 2014, approximately 95% of the current portfolio did not meet a conventional definition of “same store.” The Company will commence same store reporting once the level of net operating income from stabilized assets held for a period of five consecutive quarters exceeds 50%.

2. Reflects the operating margin for five stabilized properties in this business segment that have been owned for five consecutive quarters. Operating margin is the ratio of operating income divided by revenue.

3. Includes common share equivalents.

4. Represents the price per share, subject to certain volume and other discounts, in our initial public offering pursuant to our registration statement on Form S-11 (File No. 333-169075), as amended, which commenced on February 18, 2011 and closed on April 26, 2013.

PAGE 3 of 24

Consolidated Balance Sheets

Amounts in thousands

	Q1 2014			Q4 2013			Q3 2013			Q2 2013			Q1 2013
Assets
Real estate investments, at cost
Land	$	121,978		$	107,719		$	112,766		$	60,086		$	51,445
Buildings, fixtures and improvements		1,556,438			1,363,858			1,147,659			719,065			606,692
Construction in progress		16,148			11,112			4,819			-			-
Acquired intangible lease assets		199,630			181,264			158,804			97,658			81,813
Total real estate investments at cost		1,894,194			1,663,953			1,424,048			876,809			739,950
Less: accumulated depreciation and amortization		(116,558	)		(87,350	)		(61,156	)		(43,780	)		(30,869	)
Total real estate investments, net		1,777,636			1,576,603			1,362,892			833,029			709,081
Cash and cash equivalents		142,928			103,447			308,911			852,240			424,931
Other assets		70,346			54,523			63,830			39,211			61,909
Total assets	$	1,990,910		$	1,734,573		$	1,735,633		$	1,724,480		$	1,195,921
Liabilities And Equity
Mortgage notes payable	$	298,650		$	259,348		$	239,067		$	215,784		$	215,846
Line of credit		131,500			-			-			-			-
Unsecured term loan		100,000			-			-			-			-
Accounts payable, accrued expenses and other liabilities		47,092			39,481			35,840			25,699			23,062
Total liabilities		577,242			298,829			274,907			241,483			238,908
Common stock		1,821			1,805			1,788			1,771			1,145
Additional paid in capital		1,607,456			1,591,941			1,576,011			1,560,226			1,001,901
Accumulated other comprehensive loss		(1,597	)		(3,243	)		(3,241	)		(1,285	)		(598	)
Accumulated deficit		(195,863	)		(158,378	)		(117,649	)		(81,610	)		(49,420	)
Total shareholders' equity		1,411,817			1,432,125			1,456,909			1,479,102			953,028
Non-controlling interests		1,851			3,619			3,817			3,895			3,985
Total equity		1,413,668			1,435,744			1,460,726			1,482,997			957,013
Total liabilities and equity	$	1,990,910		$	1,734,573		$	1,735,633		$	1,724,480		$	1,195,921

PAGE 4 of 24

Consolidated Statements of Income

Amounts in thousands, except per share data and ratios 

	Q1 2014			Q4 2013			Q3 2013			Q2 2013			Q1 2013
Revenues:
Rental income	$	47,517		$	41,597		$	29,285		$	20,885		$	15,987
Operating expense reimbursement		4,184			3,626			2,859			2,474			2,189
Resident services and fee income		4,288			3,368			2,003			578			502
Total revenues		55,989			48,591			34,147			23,937			18,678
Property operating		23,479			20,089			13,940			7,444			5,192
Net operating income		32,510			28,502			20,207			16,493			13,486
Acquisition and transaction related		3,422			5,748			3,107			2,713			2,038
General and administrative		1,928			1,686			1,429			1,250			249
Depreciation and amortization		28,943			25,908			17,140			12,714			11,694
Operating income (loss)		(1,783	)		(4,840	)		(1,469	)		(184	)		(495	)
Other income (expenses)
Interest expense		(5,543	)		(5,089	)		(4,350	)		(3,315	)		(3,089	)
Income from investments		300			49			354			255			-
Total other expense		(5,243	)		(5,040	)		(3,996	)		(3,060	)		(3,089	)
Net income (loss)		(7,026	)		(9,880	)		(5,465	)		(3,244	)		(3,584	)
Net income (loss) attributable to non-controlling interests		(9	)		(12	)		(10	)		(13	)		(22	)
Net income (loss) attributable to shareholders	$	(7,035	)	$	(9,892	)	$	(5,475	)	$	(3,257	)	$	(3,606	)
Basic weighted average shares outstanding		181,621			179,930			178,231			170,125			77,029
Basic net loss per share attributable to shareholders	$	(0.04	)	$	(0.05	)	$	(0.03	)	$	(0.02	)	$	(0.05	)
Funds from operations:
Net gain (loss) in accordance with GAAP	$	(7,035	)	$	(9,892	)	$	(5,475	)	$	(3,257	)	$	(3,606	)
Depreciation and amortization		28,940			25,907			17,140			12,714			11,694
Proportionate share of adjustments related to non-controlling interests		(87	)		(121	)		(122	)		(122	)		(115	)
Funds from operations	$	21,818		$	15,894		$	11,543		$	9,335		$	7,973
Acquisition fees and expenses		3,422			5,748			3,107			2,713			2,038
Amortization of above-market lease assets and liabilities		95			98			160			119			67
Straight-line rent		(1,930	)		(1,851	)		(1,357	)		(1,174	)		(1,026	)
Capital expenditures		0			0			0			0			0
Non-recurring items
Accretion of discount/amortization of premiums		(264	)		(233	)		(226	)		(188	)		(179	)
Deferred financing costs		1,561			1,520			1,209			637			617
Non-cash stock compensation		10			68			13			11			9
Loss on sale of investments		0			300			0			0			0
Distributions on Class B units		139			103			63			37			17
Proportionate share of adjustments related to non-controlling interests		22			31			35			34			36
Adjusted funds from operations (AFFO)	$	24,873		$	21,678		$	14,547		$	11,524		$	9,552
Diluted weighted average shares outstanding		182,478			180,546			178,621			170,357			77,148
Distributions paid in cash		13,818			13,865			13,960			11,663			5,494
Distributions reinvested		16,533			16,537			16,519			12,954			4,847
Distributions on unvested shares		3			6			3			3			0
Distributions on Class B units		139			103			63			37			17
Total distributions paid	$	30,493		$	30,511		$	30,545		$	24,657		$	10,358
FFO per diluted share	$	0.12		$	0.09		$	0.06		$	0.05		$	0.10
FFO payout ratio		140	%		192	%		265	%		264	%		130	%
AFFO per diluted share	$	0.14		$	0.12		$	0.08		$	0.07		$	0.12
AFFO payout ratio		123	%		141	%		210	%		214	%		108	%

PAGE 5 of 24

Business Summary

Amounts in thousands, except number of properties, number of units / beds, square feet and percentages

	Number of		No. Units /						Gross					Annualized					Annualized
	Properties		Beds		Square Feet		States		Asset Value		% of Total			Revenue1		% of Total			NOI1			% of Total
By Business Segment
Medical office		77		-		3,914,661		24	$	1,026,470		55	%	$	97,259		40	%	$	78,901			55	%
Triple-net leased		21		1,145		899,221		5		274,307		14	%		25,709		11	%		25,150			18	%
Seniors housing - operating		29		2,435		1,939,320		11		572,502		31	%		119,325		49	%		38,745			27	%
Land		2		-		-		2		3,020		0	%		-		0	%		(46	)		0	%
Total		129		3,580		6,753,202		27	$	1,876,299		100	%	$	242,293		100	%	$	142,750			100	%
By Investment Type
Medical office		77		-		3,914,661		24	$	1,026,470		55	%	$	97,259		40	%	$	78,901			55	%
Seniors housing		39		2,961		2,401,767		13		649,146		34	%		126,192		52	%		45,602			32	%
Post acute / skilled nursing		4		175		73,103		3		31,747		2	%		3,213		1	%		3,055			2	%
Hospital		7		444		363,671		2		165,916		9	%		15,629		7	%		15,238			11	%
Land		2		-		-		2		3,020		0	%		-		0	%		(46	)		0	%
Total		129		3,580		6,753,202		27	$	1,876,299		100	%	$	242,293		100	%	$	142,750			100	%

1 Annualized revenue and NOI represent Trailing Twelve Month (TTM) figures through the period ended March 31, 2014 for properties owned for the entire TTM period, and annualized figures for properties acquired during such period.

PAGE 6 of 24

Equity and Investment Activity

Amounts in thousands, except number of properties and percentages

Equity Raise1	Q1 2014		Q4 2013		Q3 2013		Q2 2013		Q1 2013
Equity Raised during period	$	15,860	$	15,881	$	15,741	$	620,878	$	581,287
Cumulative Equity Raised	$	1,807,058	$	1,791,198	$	1,775,317	$	1,759,576	$	1,138,698

Investment Activity	Q1 2014				Q4 2013				Q3 2013				Q2 2013				Q1 2013
	Number of		Gross		Number of		Gross		Number of		Gross		Number of		Gross		Number of		Gross
	Properties		Asset Value		Properties		Asset Value		Properties		Asset Value		Properties		Asset Value		Properties		Asset Value
By Business Segment
Medical office		2	$	36,747		4	$	45,330		19	$	339,571		8	$	95,380		6	$	36,667
Triple-net leased		8		56,583		3		51,900		2		40,000		1		8,410		0		-
Seniors housing - operating		3		129,907		4		136,042		12		159,560		3		33,081		2		28,097
Land		1		1,231		0		-		1		1,788		0		-		0		-
Total		14	$	224,468		11	$	233,272		34	$	540,919		12	$	136,871		8	$	64,764
By Investment Type
Medical office		2	$	36,747		4	$	45,330		19	$	339,571		8	$	95,380		6	$	36,667
Seniors housing		11		186,490		5		147,692		12		159,560		4		41,491		2		28,097
Post acute / skilled nursing		0		-		1		12,250		0		-		0		-		0		-
Hospital		0		-		1		28,000		2		40,000		0		-		0		-
Land		1		1,231		0		-		1		1,788		0		-		0		-
Total		14	$	224,468		11	$	233,272		34	$	540,919		12	$	136,871		8	$	64,764

Additional Net Operating Income from Investing Activity (annualized)2
By Business Segment	Q1 2014			Q4 2013			Q3 2013			Q2 2013			Q1 2013
Medical office	$	2,581		$	4,012		$	24,924		$	6,608		$	3,006
Triple-net leased		5,002			4,670			3,492			802			-
Seniors housing - operating		8,994			8,982			9,829			2,361			2,778
Land		-			-			(46	)		-			-
Total	$	16,577		$	17,664		$	38,199		$	9,771		$	5,784
By Investment Type
Medical office	$	2,581		$	4,012		$	24,924		$	6,608		$	3,006
Seniors housing		13,996			10,035			9,829			3,163			2,778
Post acute / skilled nursing		-			1,222			-			-			-
Hospital		-			2,395			3,492			-			-
Land		-			-			(46	)		-			-
Total	$	16,577		$	17,664		$	38,199		$	9,771		$	5,784
NOI yield3		7.4	%		7.6	%		7.1	%		7.1	%		8.9	%

1. Equity raised includes proceeds received from our initial public offering and distribution reinvestment plan.

2.	Annualized NOI represents Trailing Twelve Month (TTM) figures through the period ended March 31, 2014 for properties owned for the entire TTM period, and annualized figures for properties acquired during such period.
3.	NOI yield is defined as Net Operating Income (NOI) divided by Gross Asset Value.

PAGE 7 of 24

Quarterly Revenue and Net Operating Income by Business Segment and Investment Type

Amounts in thousands

	Q1 2014			Q4 2013			Q3 2013		Q2 2013		Q1 2013
Revenues
By Business Segment
Medical office	$	23,993		$	22,791		$	15,735	$	13,660	$	11,889
Triple-net leased		4,793			4,435			3,197		3,140		2,807
Seniors housing - operating		27,203			21,364			15,216		7,137		3,982
Land		-			-			-		-		-
Total	$	55,989		$	48,590		$	34,148	$	23,937	$	18,678
By Investment Type
Medical office	$	23,993		$	22,791		$	15,735	$	13,660	$	11,889
Seniors housing		28,121			21,609			15,416		7,334		3,982
Post acute / skilled nursing		806			649			494		480		491
Hospital		3,069			3,541			2,503		2,463		2,316
Land		-			-			-		-		-
Total	$	55,989		$	48,590		$	34,148	$	23,937	$	18,678
Net Operating Income
By Business Segment
Medical office	$	19,221		$	18,554		$	12,422	$	11,011	$	9,273
Triple-net leased		4,569			4,050			3,038		2,995		2,798
Seniors housing - operating		8,733			5,914			4,748		2,488		1,414
Land		(13	)		(18	)		-		-		-
Total	$	32,510		$	28,500		$	20,208	$	16,494	$	13,485
By Investment Type
Medical office	$	19,221		$	18,554		$	12,422	$	11,011	$	9,273
Seniors housing		9,650			6,160			4,948		2,685		1,414
Post acute / skilled nursing		763			589			460		460		460
Hospital		2,889			3,215			2,378		2,338		2,338
Land		(13	)		(18	)		-		-		-
Total	$	32,510		$	28,500		$	20,208	$	16,494	$	13,485

PAGE 8 of 24

Portfolio Diversification by State

Amounts in thousands, except number of properties and percentages

								Medical Office Buildings							Triple-net Leases																					Seniors Housing
	Total1							Single & Multi-Tenants							Seniors housing							Post acute / skilled nursing							Hospital							Operating Properties
								Number							Number							Number							Number							Number
	Number of		Annualized		% of			of		Annualized		% of			of		Annualized		% of			of		Annualized		% of			of		Annualized		% of			of		Annualized		% of
Top 20 States	Properties		NOI2		Total			Properties		NOI2		Total			Properties		NOI2		Total			Properties		NOI2		Total			Properties		NOI2		Total			Properties		NOI2		Total
1. Texas		16	$	24,721		17	%		8	$	6,036		8	%		1	$	1,098		16	%		1	$	1,222		40	%		5	$	11,746		77	%		1	$	4,619		12	%
2. Georgia		17		14,688		10	%		8		5,467		7	%		0		-		0	%		0		-		0	%		0		-		0	%		8		9,266		24	%
3. Illinois		15		13,767		10	%		7		9,469		12	%		7		3,904		57	%		0		-		0	%		0		-		0	%		1		394		1	%
4. California		7		12,980		9	%		3		4,952		6	%		0		-		0	%		2		988		32	%		0		-		0	%		2		7,039		18	%
5. Florida		11		10,996		8	%		5		5,158		7	%		0		-		0	%		0		-		0	%		0		-		0	%		5		5,838		15	%
6. Indiana		6		8,455		6	%		6		8,455		11	%		0		-		0	%		0		-		0	%		0		-		0	%		0		-		0	%
7. Wisconsin		6		8,283		6	%		6		8,283		11	%		0		-		0	%		0		-		0	%		0		-		0	%		0		-		0	%
8. Arizona		6		6,666		5	%		2		1,528		2	%		1		802		12	%		1		845		28	%		2		3,492		23	%		0		-		0	%
9. Oregon		7		6,362		5	%		0		-		0	%		0		-		0	%		0		-		0	%		0		-		0	%		7		6,362		17	%
10. Pennsylvania		4		5,944		4	%		4		5,944		8	%		0		-		0	%		0		-		0	%		0		-		0	%		0		-		0	%
11. Nevada		5		4,957		3	%		5		4,957		6	%		0		-		0	%		0		-		0	%		0		-		0	%		0		-		0	%
12. Michigan		4		4,440		3	%		4		4,440		6	%		0		-		0	%		0		-		0	%		0		-		0	%		0		-		0	%
13. South Carolina		3		3,670		3	%		2		2,638		3	%		0		-		0	%		0		-		0	%		0		-		0	%		1		1,032		3	%
14. Virginia		2		2,597		2	%		2		2,597		3	%		0		-		0	%		0		-		0	%		0		-		0	%		0		-		0	%
15. North Dakota		2		2,103		1	%		1		1,049		1	%		1		1,053		15	%		0		-		0	%		0		-		0	%		0		-		0	%
16. North Carolina		2		2,086		1	%		1		802		1	%		0		-		0	%		0		-		0	%		0		-		0	%		1		1,283		3	%
17. New York		2		1,811		1	%		2		1,811		2	%		0		-		0	%		0		-		0	%		0		-		0	%		0		-		0	%
18. Minnesota		2		1,566		1	%		2		1,566		2	%		0		-		0	%		0		-		0	%		0		-		0	%		0		-		0	%
19. Tennessee		2		1,335		1	%		1		370		0	%		0		-		0	%		0		-		0	%		0		-		0	%		1		966		2	%
20. Ohio		1		1,333		1	%		0		-		0	%		0		-		0	%		0		-		0	%		0		-		0	%		1		1,333		3	%
States 1 to 20 Subtotal		120	$	138,760		97	%		69	$	75,522		96	%		10	$	6,857		100	%		4	$	3,055		100	%		7	$	15,238		100	%		28	$	38,132		98	%
All other states		9	$	3,990		3	%		8	$	3,379		4	%		0	$	-		0	%		0		-		0	%		0	$	-		0	%		1	$	613		2	%
Total		129	$	142,750		100	%		77	$	78,901		100	%		10	$	6,857		100	%		4	$	3,055		100	%		7	$	15,238		100	%		29	$	38,745		100	%

1. Totals include two holdings in land properties.

2. Annualized NOI represents Trailing Twelve Month (TTM) figures through the period ended March 31, 2014 for properties owned for the entire TTM period, and annualized figures for properties acquired during such period.

PAGE 9 of 24

Seniors Housing Position Compared to Metropolitan Statistical Area (“MSA”) Characteristics

							MSA Statistics
		Annualized											Median
		NOI2					Population			% Population			Household
By MSA / Location	No. Properties	(in thousands)		% of Total			Growth3			Over 654			Income4		Unemployment %5
Atlanta, GA	7	$	7,948		17.4	%		4.1	%		9.9	%	$	54,628		6.9	%
Houston, TX	1		4,619		10.1	%		6.1	%		9.2	%		55,910		5.7	%
Sacramento, CA	1		3,602		7.9	%		2.8	%		13.0	%		56,813		8.2	%
Los Angeles, CA	1		3,437		7.5	%		2.2	%		11.7	%		57,271		8.1	%
Portland, OR	3		2,021		4.4	%		3.7	%		12.3	%		56,978		7.0	%
Salem, OR1	2		1,826		4.0	%		2.3	%		14.9	%		49,161		8.0	%
Cleveland, OH	1		1,333		2.9	%		-0.5	%		15.9	%		46,944		8.1	%
Athens, GA1	1		1,318		2.9	%		2.3	%		11.5	%		47,209		5.1	%
Asheville, NC1	1		1,283		2.8	%		2.9	%		13.8	%		45,150		5.2	%
Cape Coral, FL	1		1,246		2.7	%		6.5	%		25.0	%		46,278		6.1	%
Top Ten Markets	19		28,633		62.6	%		3.2	%		13.7	%		51,634		6.8	%
Remaining Markets	20		16,969		37.4	%		2.8	%		15.1	%		48,822		6.6	%
Total	39	$	45,602		100.0	%		3.0	%		14.5	%	$	50,045		6.7	%
					US National Average			2.7	%		12.8	%	$	57,150		7.0	%

1. Are not within defined MSAs. For statistical comparison, statewide data is presented.

2. Annualized NOI represents Trailing Twelve Month (TTM) figures through the period ended March 31, 2014 for properties owned for the entire TTM period, and annualized figures for properties acquired during such period.

3. United States Census Bureau: Annual Estimates 2010 - 2013.

4. United States Census Bureau: 2012 American Community Survey.

5. Bureau of Labor Statistics: 2014 Unemployment Rates for Metropolitan Areas.

PAGE 10 of 24

Segment Reporting: Medical Office Buildings (“MOB”)

Amounts in thousands, except property count, square feet, per square foot, age and percentages

MOB Classification	Property Count		Square Feet		Gross Asset Value		Annualized Revenue1		Annualized NOI1		Average Age (years)		Occupancy
Affiliated		59		2,896,789	$	794,942	$	76,488	$	60,544		11.7		96.2	%
Non-Affiliated		18		1,017,872		231,528		20,771		18,357		13.2		97.9	%
Total		77		3,914,661	$	1,026,470	$	97,259	$	78,901		12.1		96.6	%
On campus		25		1,313,427	$	352,176	$	32,774	$	25,479		12.2		96.6	%
Off campus		52		2,601,234		674,294		64,485		53,422		12.0		96.7	%
Total		77		3,914,661	$	1,026,470	$	97,259	$	78,901		12.1		96.6	%
Single Tenant		49		2,514,691	$	653,722	$	55,696	$	51,008		11.2		100.0	%
Multi-Tenant		28		1,399,970		372,748		41,563		27,893		13.5		90.6	%
Total		77		3,914,661	$	1,026,470	$	97,259	$	78,901		12.1		96.6	%

Property Summary	Q1 2014			Q4 2013			Q3 2013			Q2 2013			Q1 2013
Properties		77			75			71			52			44
Average Age (years)		12.1			11.9			11.8			10.5			10.6
Square feet		3,914,661			3,768,063			3,560,439			2,160,132			1,793,568
Gross Asset Value	$	1,026,470		$	989,723		$	944,393		$	604,823		$	509,442
Occupancy		96.6	%		96.5	%		95.5	%		94.8	%		96.6	%
Revenues (annualized)1	$	97,259		$	92,915		$	87,473		$	59,765		$	50,717
NOI (annualized)1	$	78,901		$	75,826		$	72,467		$	47,775		$	41,171
Total Cap-Ex/TI/Leasing	$	432		$	358		$	140		$	50		$	46
Revenues per square foot	$	24.84		$	24.66		$	24.57		$	27.67		$	28.28
NOI per square foot	$	20.16		$	20.12		$	20.35		$	22.12		$	22.95
Newly Leased square feet		-			5,164			11,533			15,470			-
Retained square feet		5,345			3,923			-			-			-
Expired square feet		8,703			7,869			-			1,526			12,584
Retention rate		61.4	%		49.9	%		0.0	%		0.0	%		0.0	%

1. Annualized revenue and NOI represent Trailing Twelve Month (TTM) figures through the period ended March 31, 2014 for properties owned for the entire TTM period, and annualized figures for properties acquired during such period.

PAGE 11 of 24

Segment Reporting: Medical Office Buildings

Amounts in thousands, except square feet and percentages

Lease Expirations	2014			2015			2016			2017			2018			2019			Beyond 2019
Square feet		13,375			43,307			139,344			155,378			348,578			151,249			2,931,961
% of MOB portfolio		0.4	%		1.1	%		3.7	%		4.1	%		9.2	%		4.0	%		77.5	%

Diversification by Tenant1	Annualized NOI2		% of Total			Square Feet		% of Total			Credit Rating
UnitedHealth Group Incorporated	$	9,755		12.4	%		610,670		15.6	%	Moody's: A1
Aurora Health Care		5,027		6.4	%		226,046		5.8	%	Moody's: A3
Crozer-Keystone Health System		4,580		5.8	%		259,716		6.6	%	Moody's: Baa3
Rush Copley Medical Center		3,911		5.0	%		160,088		4.1	%	Moody's: A2
Ascension Health		3,250		4.1	%		179,138		4.6	%	Moody's: Aa2
Carson Tahoe Regional Healthcare		3,147		4.0	%		193,048		4.9	%	S&P: BBB+
Spartanburg Regional Healthcare System		2,638		3.3	%		90,948		2.3	%	Moody's: A1
Bronson Healthcare Group		2,354		3.0	%		100,321		2.6	%	Moody's: A2
IU Health		2,152		2.7	%		63,000		1.6	%	Moody's: A1
Advocate Health Care Network		1,967		2.5	%		127,663		3.3	%	Moody's: Aa2
Top 10 Tenants		38,781		49.2	%		2,010,638		51.4	%
Remaining Tenants		40,120		50.8	%		1,904,023		48.6	%
Total	$	78,901		100.0	%		3,914,661		100.0	%

1. Includes multi-tenant buildings for which the tenant is the anchor tenant in the building.

2. Annualized NOI represents Trailing Twelve Month (TTM) figures through the period ended March 31, 2014 for properties owned for the entire TTM period, and annualized figures for properties acquired during such period.

PAGE 12 of 24

Segment Reporting: Triple-net Leased Diversification by Operators

Amounts in thousands, except property count, units, beds and percentages

Seniors Housing - Triple-net leased

					Gross		Annualized
Diversification by Operator	Property Count		Units		Asset Value		NOI1		% of Total
Meridian Senior Living		8		410	$	55,083	$	4,956		72	%
Frontier Management		1		48		8,410		802		12	%
PM Management		1		68		13,150		1,098		16	%
Total		10		526	$	76,643	$	6,856		100	%

Hospital

					Gross		Annualized
Leased Properties	Property Count		Beds		Asset Value		NOI1		% of Total
Reliant Rehabilitation		2		120	$	65,391	$	6,513		42	%
Baylor Scott & White Medical System		2		64		44,000		3,740		25	%
Global Rehabilitation		1		60		16,525		1,493		10	%
Acuity, LLC2		2		200		40,000		3,492		23	%
Total		7		444	$	165,916	$	15,238		100	%

Post acute / skilled nursing

					Gross		Annualized
Diversification by Operator	Property Count		Beds		Asset Value		NOI1		% of Total
National Mentor Holdings, Inc.		3		55	$	19,497	$	1,833		60	%
Gentiva Health Services		1		120		12,250		1,222		40	%
Total		4		175	$	31,747	$	3,055		100	%

1. Annualized NOI represents Trailing Twelve Month (TTM) figures through the period ended March 31, 2014 for properties owned for the entire TTM period, and annualized figures for properties acquired during such period.

2. Acuity LLC is a replacement manager/tenant in connection with two LTAC facilities formerly leased to Restora, Inc. The annualized NOI reflected in this report represents the annualized NOI the Company will receive under the new lease with Acuity, Inc., which lease has a 10 year term.

PAGE 13 of 24

Segment Reporting: Triple-net Leased Property Summaries

Gross Asset Value amounts in thousands

Seniors Housing - Triple-net leased	Q1 2014			Q4 2013			Q3 2013			Q2 2013			Q1 2013
Property count		10			2			1			1			0
Number of units		526			115			48			48			0
Square Feet		462,447			109,681			25,971			25,971			-
Occupancy1		91	%		87	%		85	%		77	%		0	%
Average remaining lease term		14.6			14.4			14.0			14.0			N/A
Gross Asset Value	$	76,643		$	20,060		$	8,410		$	8,410		$	-

Hospital	Q1 2014			Q4 2013			Q3 2013			Q2 2013			Q1 2013
Property count		7			7			6			4			4
Number of beds		444			444			420			220			220
Square Feet		363,671			363,671			306,428			210,428			210,428
Occupancy1		55	%		53	%		48	%		48	%		51	%
Average remaining lease term		16.0			16.0			16.0			16.3			16.3
Gross Asset Value	$	165,916		$	165,916		$	137,916		$	97,916		$	97,916

Post acute / skilled nursing	Q1 2014			Q4 2013			Q3 2013			Q2 2013			Q1 2013
Property count		4			4			3			3			3
Number of beds		175			175			55			55			55
Square Feet		73,103			73,103			30,250			30,250			30,250
Occupancy1		65	%		66	%		57	%		57	%		54	%
Average remaining lease term		12.0			12.0			11.6			11.6			11.6
Gross Asset Value	$	31,748		$	31,748		$	19,497		$	19,497		$	19,497

1. Occupancy statistics are compiled through reports from operators and have not been independently validated by the company.

PAGE 14 of 24

Segment Reporting: Seniors Housing - Operating

Amounts in thousands, except property count, units, square feet, age and margin

										Gross
Diversification by Operator	Property Count		Units		Square Feet		% of Total			Asset Value		Annualized NOI1
Arbor Company		9		826		650,519		34	%	$	212,804	$	13,272
Frontier Management		8		600		433,019		22	%		88,683		6,975
Principal Senior Living Group, LLC		6		413		308,095		16	%		95,995		6,762
MBK Senior Living		2		293		231,991		12	%		104,507		7,039
Spectrum Retirement		1		97		102,000		5	%		22,542		1,333
Other		3		206		213,696		11	%		47,971		3,364
Total		29		2,435		1,939,320		100	%	$	572,502	$	38,745

Property Summary	Q1 2014			Q4 2013			Q3 2013			Q2 2013			Q1 2013
Property count		29			26			22			10			7
Number of units		2,435			2,039			1,686			780			572
Square feet	$	1,939,320		$	1,633,217		$	1,188,058		$	577,449		$	418,297
Occupancy		93	%		92	%		92	%		92	%		89	%
Average age (years)		11.7			11.8			10.8			8.2			6.1
Gross Asset Value	$	572,502		$	442,595		$	306,553		$	146,994		$	113,913
Revenues (annualized)1	$	119,325		$	111,692		$	89,532		$	47,950		$	33,301
NOI (annualized)1	$	38,745		$	39,931		$	28,986		$	17,877		$	13,349
Operating margin2		32	%		36	%		32	%		37	%		40	%
REVPOR3	$	53		$	60		$	58		$	67		$	65
Capital Expenditures	$	312		$	65		$	40		$	2		$	3

1. Annualized revenue and NOI represent Trailing Twelve Month (TTM) figures through the period ended March 31, 2014 for properties owned for the entire TTM period, and annualized figures for properties acquired during such period. Annualized NOI for MBK assets reflect TTM historical NOI prior to acquisitions on January 30, 2014 and February 20, 2014.

2. Operating margin is the ratio of operating income divided by revenue.

3. REVPOR means revenue per occupied room.

PAGE 15 of 24

Debt Structure

Amounts in thousands, except percentages, term, ratios and shares

	Balance
	Outstanding			Average Life /		Weighted Average			Percentage			Percentage
	March 31, 2014			Term (months)		Int. Rate			Total Debt			Gross Assets
Fixed Rate Debt
Secured debt	$	298,650			38.7		5.1	%		56.3	%		15.0	%
Total fixed rate debt	$	298,650			38.7		5.1	%		56.3	%		15.0	%
Variable Rate Debt
Unsecured term loan	$	100,000			51.8		1.8	%		18.9	%		5.0	%
Unsecured lline of credit		131,500			27.8		3.6	%		24.8	%		6.6	%
Total variable rate debt	$	231,500			38.2		2.8	%		43.7	%		11.6	%
Total Debt	$	530,150			38.5		4.1	%		100.0	%		26.6	%
Ratio of debt to market capitalization		28.9	%

	TTM		YTD		QTR
Interest expense coverage		6.5x		7.2x		7.2x
Fixed charge coverage		6.2x		6.7x		6.7x

Selected Debt Covenants & Credit Ratios
				Qtr. Ended
	Requirement			3/31/2014
Aggregate debt test (debt to gross assets as defined)		55.0	%		26.2	%
Secured debt test (secured debt to gross assets as defined)		35.0	%		14.8	%
Debt service test (EBITDA available for debt service charge, as defined)		1.6			5.5
Unencumbered asset test (minimum unencumbered assets in borrowing base)	$	200,000		$	943,398
Unencumbered NOI (NOI related to borrowing base assets)		N/A		$	76,631

Scheduled Principal Payments
	Unsecured1		Secured		Total
2014	$	-	$	1,040	$	1,040
2015		-		114,351		114,351
2016		131,500		20,935		152,435
2017		-		94,353		94,353
2018		100,000		27,778		127,778
Thereafter		-		40,193		40,193
Total	$	231,500	$	298,650	$	530,150

Summary of Preferred Shares
	Qtr. Ended 3/31/2014	Qtr. Ended 3/31/2013
Total preferred shares outstanding	N/A	N/A

Summary of Common Shares
Weighted average	Qtr. Ended 3/31/2014	Qtr. Ended 3/31/2013
Diluted shares - FFO	182,477,962	77,147,958
Diluted shares - EPS	181,621,246	77,029,025
Total shares and units outstanding at end of period	183,496,642	114,651,922

Weighted average	YTD 3/31/2014	YTD 3/31/2013
Diluted shares - FFO	182,477,962	77,147,958
Diluted shares - EPS	181,621,246	77,029,025

1. Figures represent outstanding balance at maturity date and facility expiration date for the unsecured term loan and unsecured line of credit, respectively.

PAGE 16 of 24

Non-GAAP Reconciliations

Amounts in thousands, except ratios

	Q1 2014			Q4 2013			Q3 2013			Q2 2013			Q1 2013
Adjusted EBITDA:
Net income/(loss)	$	(7,035	)	$	(9,892	)	$	(5,475	)	$	(3,257	)	$	(3,606	)
Acquisition and transaction related		3,422			5,748			3,107			2,713			2,038
Depreciation and amortization		28,943			25,908			17,140			12,714			11,694
Interest expense		5,543			5,089			4,350			3,315			3,089
Loss on investments		-			300			-			-			-
Income from preferred investment and investment securities		(299	)		(308	)		(317	)		(244	)		-
Other income		(1	)		(41	)		(37	)		(11	)		-
Non-controlling interests		9			12			10			13			22
Adjusted EBITDA		30,582			26,816			18,778			15,243			13,237
Net Operating Income (NOI):
General and administrative		1,928			1,686			1,429			1,250			249
NOI		32,510			28,502			20,207			16,493			13,486
Cash NOI:
Amortization of above-market lease assets and liabilities		95			98			160			119			67
Straight-line rent		(1,930	)		(1,851	)		(1,357	)		(1,174	)		(1,026	)
Cash NOI	$	30,675		$	26,749		$	19,010		$	15,438		$	12,527
Interest coverage ratio:
Interest expense	$	5,543		$	5,089		$	4,350		$	3,315		$	3,089
Non-cash interest expense		(1,297	)		(1,287	)		(983	)		(447	)		(438	)
Adjustments related to non-controlling interest		(12	)		(77	)		(79	)		(78	)		(77	)
Total Interest	$	4,234		$	3,725		$	3,288		$	2,790		$	2,574
Adjusted EBITDA		30,582			26,816			18,778			15,243			13,237
Adjusted interest coverage ratio		7.2x			7.2x			5.7x			5.5x			5.1x
Fixed charge ratio:
Total interest	$	4,234		$	3,725		$	3,288		$	2,790		$	2,574
Secured debt principal amortization		301			253			133			63			25
Total fixed charges	$	4,535		$	3,978		$	3,421		$	2,853		$	2,599
Adjusted EBITDA		30,582			26,816			18,778			15,243			13,237
Adjusted fixed charge ratio		6.7x			6.7x			5.5x			5.3x			5.1x

PAGE 17 of 24

Definitions

This section contains an explanation of certain non-GAAP financial measures we provide in other sections of this document, as well as the reasons why management believes these measures provide useful information to investors about the Company’s financial condition or results of operations. Additional detail can be found in the Company’s most recent annual report on Form 10-K as well as other documents filed with or furnished to the SEC from time to time.

Adjusted funds from operations (AFFO)

AFFO is core FFO, excluding certain income or expense items that we consider more reflective of investing activities, other non-cash income and expense items and the income and expense effects of other activities that are not a fundamental attribute of our business plan. These items include unrealized gains and losses, which may not ultimately be realized, such as gains or losses on derivative instruments, gains or losses on contingent valuation rights, gains and losses on investments and early extinguishment of debt. In addition, by excluding non-cash income and expense items such as amortization of above and below market leases, amortization of deferred financing costs, straight-line rent and non-cash equity compensation from AFFO we believe we provide useful information regarding income and expense items which have no cash impact and do not provide liquidity to the company or require capital resources of the company. We exclude distributions related to Class B units and certain interest expenses related to securities that are convertible to common stock as the shares are assumed to have converted to common stock in our calculation of weighted average common shares-fully diluted.

Although our AFFO may not be comparable to that of other REITs and real estate companies, we believe it provides a meaningful indicator of our ability to fund cash needs and to make cash distributions to stockholders. In addition, we believe that to further understand our liquidity, AFFO should be compared with our cash flows determined in accordance with GAAP, as presented in our consolidated financial statements. AFFO does not represent cash generated from operating activities determined in accordance with GAAP, and AFFO should not be considered as an alternative to net income (determined in accordance with GAAP) as an indication of our performance, as an alternative to net cash flows from operating activities (determined in accordance with GAAP), or as a measure of our liquidity.

Annualized straight-line rent

Sum of the contractual rent over the term of the lease, including escalations and free rent, divided by the number of months in the lease term and annualized. Excludes contingent rental payments, as applicable, that may be collected from certain tenants based on provisions related to sales thresholds and increases in annual rent based on exceeding certain economic indexes among other items.

Adjusted Earnings before interest, taxes, depreciation and amortization (EBITDA)

EBITDA is defined as net income before interest, taxes, depreciation and amortization. We believe EBITDA is an appropriate measure of our ability to incur and service debt. EBITDA should not be considered as an alternative to cash flows from operating activities, as a measure of our liquidity or as an alternative to net income as an indicator of our operating activities. Other REITs may calculate EBITDA differently and our calculation should not be compared to that of other REITs. EBITDA is adjusted to include our pro-rata share of EBITDA from unconsolidated joint ventures.

Cash net operating income (Cash NOI)

NOI, presented on a cash basis, which is NOI after eliminating the effects of straight-lining of rent and fair value lease revenue.

Funds from operations (FFO)

Pursuant to the revised definition of funds from operations adopted by the Board of Governors of the National Association of Real Estate Investment Trusts (“NAREIT”), we calculate funds from operations (FFO), by adjusting net income (loss) attributable stockholders (computed in accordance with GAAP, including non-recurring items) for gains (or losses) from sales of properties, impairment losses on depreciable real estate of consolidated real estate, impairment losses on investments in unconsolidated joint ventures driven by a measurable decrease in the fair value of depreciable real estate held by the unconsolidated joint ventures, real estate related depreciation and amortization, and after adjustment for unconsolidated partnerships and joint ventures. FFO is a non-GAAP financial measure. The use of FFO, combined with the required primary GAAP presentations, has been fundamentally beneficial in improving the understanding of operating results of REITs among the investing public and making comparisons of REIT operating results more meaningful. Management generally considers FFO to be a useful measure for reviewing our comparative operating and financial performance because, by excluding gains and losses related to asset sales (land and property), impairment losses and real estate asset depreciation and amortization (which can vary among owners of identical assets in similar condition based on historical cost accounting and useful life estimates), FFO can help one compare the operating performance of a company’s real estate between periods or as compared to different companies. Our computation of FFO may not be comparable to FFO reported by other REITs or real estate companies that do not define the term in accordance with the current NAREIT definition or that interpret the current NAREIT definition differently.

PAGE 18 of 24

Definitions,continued

FFO should not be considered as an alternative to net income attributable to stockholders (determined in accordance with GAAP) as an indication of our performance. FFO does not represent cash generated from operating activities determined in accordance with GAAP, and is not a measure of liquidity or an indicator of our ability to make cash distributions. We believe that to further understand our performance, FFO should be compared with our reported net income attributable to stockholders and considered in addition to cash flows determined in accordance with GAAP, as presented in our consolidated financial statements.

Net operating income (NOI)

Net operating income (NOI) is a non-GAAP financial measure equal to net income attributable to stockholders, the most directly comparable GAAP financial measure, less discontinued operations, plus corporate general and administrative expense, acquisition and transaction costs, depreciation and amortization and interest expense, income from unconsolidated joint ventures, interest and other income and gains from investments in securities. NOI is adjusted to include our pro-rata share of NOI from unconsolidated joint ventures. We use NOI internally as a performance measure and believe NOI provides useful information to investors regarding our financial condition and results of operations because it reflects only those income and expense items that are incurred at the property level. Therefore, we believe NOI is a useful measure for evaluating the operating performance of our real estate assets and to make decisions about resource allocations. Further, we believe NOI is useful to investors as a performance measure because, when compared across periods, NOI reflects the impact on operations from trends in occupancy rates, rental rates, operating costs acquisition activity on an unleveraged basis, providing perspective not immediately apparent from net income. NOI excludes certain components from net income in order to provide results that are more closely related to a property’s results of operations. For example, interest expense is not necessarily linked to the operating performance of a real estate asset and is often incurred at the corporate level as opposed to the property level. In addition, depreciation and amortization, because of historical cost accounting and useful life estimates, may distort operating performance at the property level. NOI presented by us may not be comparable to NOI reported by other REITs that define NOI differently. We believe that in order to facilitate a clear understanding of our operating results, NOI should be examined in conjunction with net income as presented in our consolidated financial statements. NOI should not be considered as an alternative to net income as an indication of our performance or to cash flows as a measure of our liquidity or ability to make distributions.

PAGE 19 of 24

Property List as of March 31, 2014

Amounts in thousands, except square feet

			Building Size		No. Units /	Year Built /		Gross Asset
Property Name and Location	Address	State	(Sq. Ft.)		Beds¹	Renovated		Value		Net Book Value
MOB: SINGLE TENANT
Methodist North MOB - Peoria IL	2338 Van Winkle Way, Peoria, IL	IL		73,302			2010	$	24,625	$	21,764
Odessa Regional MOB - Odessa TX	520 E. 6th Street, Odessa, TX	TX		39,220			2008		7,359		6,285
Cooper Health MOB I - Willingboro NJ	651 John F. Kennedy Way, Willingboro, NJ	NJ		11,000			2010		3,387		2,934
Univ of Wisconsin Health - Monona WI	1050 East Broadway, Monona, WI	WI		31,374			2011		9,161		8,229
Henry Ford Dialysis Center - Southfield MI	25664 Lahser Road, Southfield, MI	MI		10,100			2002		2,878		2,580
East Pointe Medical Plaza - Lehigh Acres FL	1530 Lee Boulevard, Leigh Acres, FL	FL		34,500			1994		10,516		9,530
PAPP Clinic - Newnan GA	2959 Sharpsburg McCullum Road, Newnan, GA	GA		31,213			1994		5,488		5,021
Cooper Health MOB II - Willingboro NJ	218-C Sunset Road, Willingboro, NJ	NJ		16,314			2012		4,620		4,095
Cancer Care Partners - Mishawaka IN	301 East Day Road, Mishawaka, IN	IN		63,000			2010		26,800		24,459
Aurora Health Care - Two Rivers WI	5300 Memorial Drive, Two Rivers, WI	WI		99,266			2006		30,212		27,667
Aurora Health Care - Hartford WI	1640 East Sumner Street, Hartford, WI	WI		88,390			2006		25,522		23,461
Aurora Health Care - Neenah WI	1136 Westowne Drive, Neenah, WI	WI		38,390			2006		10,485		9,598
Bronson Lakeview OPC - Paw Paw MI	451 Health Parkway, Paw Paw, MI	MI		100,321			2006		30,430		28,071
Advocate Beverly Center - Chicago IL	9831 South Western Avenue, Chicago, IL	IL		59,345			1986		16,500		15,368
Wellmont Blue Ridge MOB - Bristol TN	271 Medical Park Boulevard, Bristol, TN	TN		23,277			2001		4,850		4,544
Metro Health - Wyoming MI	5950 Metro Way SW, Wyoming, MI	MI		21,502			2008		6,243		5,878
Michiana Oncology - Mishawaka IN	5340 Holy Cross Parkway, Mishawaka, IN	IN		49,410			2010		21,740		20,528
North Valley Orthopedic Surgery Center	2262 East Rose Garden Lane, Phoenix, AZ	AZ		17,608			2006		9,000		8,504
Scott & White Healthcare - Kingsland TX	105 FM 2342, Kingsland, TX	TX		14,974			2012		4,400		4,158
Salem Medical - Woodstown NJ	66 East Avenue, Woodstown, NJ	NJ		9,350			2010		3,670		3,465
Rex Wellness Center - Garner NC	1400 Timber Drive East, Garner, NC	NC		30,000			2003		9,000		8,563
Spectrum Health - Wyoming MI	6105 Wilson Avenue SW, Wyoming, MI	MI		52,898			2006		16,683		15,932
Memorial Hermann - Houston TX	14201 East Sam Houston Parkway, Houston, TX	TX		30,000			2012		13,331		12,774
UC Davis Medical - Folsom CA	251 & 271-279 Turnpike Drive, Folsom, CA	CA		36,911			1995		9,488		9,089
Via Christi Clinic - Wichita KS	13213 W 21st Street, Wichita, KS	KS		32,540			2006		8,000		7,721
West Valley Medical Center - Buckeye AZ	525 South Watson Boulevard, Buckeye, AZ	AZ		38,734			2011		8,800		8,612
Crozer-Keystone MOB II - Springfield PA	100 West Sproul Road, Springfield, PA	PA		41,935			1998		12,910		12,636
Crozer-Keystone MOB I - Springfield PA	190 West Sproul Road, Springfield, PA	PA		217,781			1996		55,520		54,225
St. Peter's Recovery Center - Guilderland NY	3 Mercycare Lane, Guilderland, NY	NY		30,000			1990		9,110		8,867
Trinity Health Medical Arts Clinic - Minot ND	400 East Burdick Expressway, Minot, ND	ND		114,000			1995		13,420		13,127
Allina Health - Elk River MN	14181 Business Center Drive NW, Elk River, MN	MN		28,175			2002		7,700		7,585
Spartanburg ASC - Spartanburg, SC	720 North Pine Street, Spartanburg, SC	SC		26,148			2002		13,800		13,602
Texarkana ASC - Texarkana, TX	5404 Summerhill Road, Texarkana, TX	TX		18,268			1994		4,500		3,826

PAGE 20 of 24

Property List as of March 31, 2014,continued

Amounts in thousands, except square feet

			Building Size		No. Units /	Year Built /		Gross Asset		Net Book
Property Name and Location	Address	State	(Sq. Ft.)		Beds¹	Renovated		Value		Value
MOB: Single Tenant,continued
Davita Dialysis - Marked Tree AR	216 Hester Parker Drive, Marked Tree, AR	AR		4,596			2009		1,444		1,203
Davita Dialysis - Rockford IL	1302 E State Street, Rockford, IL	IL		7,032			2009		2,050		1,756
BioLife Sciences Building - Denton TX	3455 Quail Creek Drive, Denton, TX	TX		15,000			2010		5,747		5,183
Sisters of Mercy Building - Springfield MO	4520 S. National Avenue, Springfield, MO	MO		42,430			2008		11,045		9,929
DaVita Dialysis - Paoli IN	555 W. Longest St., Paoli, IN	IN		5,725			2011		1,874		1,703
Unitron Hearing - Plymouth MN	14755 27th Avenue North, Plymouth, MN	MN		81,927			2011		9,390		8,403
Fresenius Medical - Metairie LA	3030 North Arnoult Street, Metairie, LA	LA		18,149			2012		3,739		3,452
United Healthcare - Cypress CA	5701 Katella Ave, Cypress, CA	CA		214,000			1985		53,904		52,404
United Healthcare - Indianapolis IN	7440-7500 Woodland Dr, Indianapolis, IN	IN		209,184			1988		36,972		35,988
United Healthcare - Onalaska WI	2700 Midwest Drive, Onalaska, WI	WI		66,000			1995		9,195		8,941
United Healthcare - Wawatosa WI	10701 Research Dr West, Wawatosa, WI	WI		121,486			1995		22,267		21,723
Virginia Urology Center - Richmond VA	9105 Stony Point Drive, Richmond, VA	VA		53,318			2004		19,200		18,665
Bay Medical Plaza - Lynn Haven, FL	2851 Martin Luther King, Jr. Boulevard, Lynn Haven, FL	FL		80,555			2003		18,625		18,551
Bay Medical Center - Panama City, FL	801 East 6th Street, Panama City, FL	FL		66,043			1987		18,122		18,041
MOB Single Tenant Subtotal/Average				2,514,691			2003		653,722		618,640
MOB: MULTI TENANT
Carson Tahoe - Specialty Medical Center	775 Fleischmann Way, Carson City, NV	NV		154,622			1981		29,131		23,831
Spring Creek Medical Plaza - Tomball TX	24727 Tomball Parkway, Tomball, TX	TX		22,345			2006		7,755		6,647
Carson Tahoe MOB West - Carson City NV	1470 Medical Parkway, Carson City, NV	NV		38,426			2007		8,500		7,188
Sunnyvale Medical Plaza - Sunnyvale TX	241 Wheatfield Drive, Sunnyvale, TX	TX		48,910			2009		12,602		10,993
Texas Clinic at Arlington - Arlington TX	400 W. Arbrook Boulevard, Arlington, TX	TX		66,824			2010		21,838		19,351
Pinnacle Health - Harrisburg PA	2808 Old Post Road, Harrisburg, PA	PA		52,600			2002		13,048		11,424
Rush Copley POB I - Aurora IL	2020 Ogden Avenue, Aurora, IL	IL		79,344			1996		26,264		24,060
Rush Copley POB II - Aurora IL	2040 Ogden Avenue, Aurora, IL	IL		80,744			2009		25,550		23,210
Albany Medical Center MOB - Albany NY	12 & 16 New Scotland Avenue, Albany, NY	NY		53,229			2010		15,000		14,159
Crystal Lakes Medical Arts - Crystal Lake IL	360 Station Drive, Crystal Lake, IL	IL		65,052			2007		19,000		17,949
Advocate Good Shepard - Crystal Lake IL	525 East Congress Parkway, Crystal Lake, IL	IL		68,318			2008		9,142		8,233
Dakota Ridge - Littleton CO	13402 West Coal Mine Avenue, Littleton, CO	CO		62,202			2007		8,400		7,492
St. Francis Cancer Center - Midlothian VA	14051 St. Francis Boulevard, Richmond, VA	VA		51,183			2006		19,335		17,981
Fayette MOB - Fayetteville GA	1279 Highway 54 West, Fayetteville, GA	GA		62,016			2004		17,434		16,598
Lutheran Medical Arts - Ft. Wayne IN	7920 W Jeffrson Blvd, Fort Wayne, IN	IN		45,858			2000		12,276		11,817

PAGE 21 of 24

Property List as of March 31, 2014,continued

Amounts in thousands, except square feet andunits/beds

			Building Size		No. Units /		Year Built /	Gross Asset		Net Book
Property Name and Location	Address	State	(Sq. Ft.)		Beds¹		Renovated	Value		Value
MOB: Multi Tenant,continued
Dupont Road MOB - Ft. Wayne IN	2512 East Dupont Road, Fort Wayne, IN	IN		60,325			2001		9,364		9,023
Aventura Medical Plaza - Aventura FL	21150 Biscayne Blvd, Aventura, FL	FL		48,353			1996		15,950		15,118
Athens Medical Complex - Athens GA	2142 West Broad Street, Athens, GA	GA		55,752			2011		19,503		18,888
Spartanburg Regional MOB - Spartanburg SC	100 East Wood Street, Spartanburg, SC	SC		64,800			1986		20,119		19,443
Capital Regional MOB I - Tallahassee FL	2626 Care Drive, Tallahassee, FL	FL		38,225			1998		9,046		8,514
Riverdale MOB - Riverdale GA	34 Upper Riverdale Road, Riverdale, GA	GA		39,301			2005		10,410		10,215
Durango Medical Plaza - Las Vegas NV	8530 W Sunset Road, Las Vegas, NV	NV		73,094			2008		23,483		19,066
Northside East Cobb - Marietta GA	1121 & 1163 Johnson Ferry Rd, Marietta, GA	GA		68,447			1991		19,597		17,963
MOB Multi Tenant Subtotal/Average				1,399,970			2003		372,747		339,163
MOB Subtotal/Average				3,914,661			2003		1,026,469		957,803
TRIPLE-NET: SENIORS HOUSING
Lakeview Terrace - Lake Havasu AZ	320 Lake Havasu Avenue North, Lake Havasu City, AZ	AZ		25,971		48	2009		8,410		7,995
Wellington ALF - Minot ND	601 24th Ave SW, Minot, ND	ND		83,710		67	2005		11,650		11,517
Villas of Holly Brook - Herrin, IL	505 Rushing Drive, Herrin, IL	IL		46,139		50	2012		6,671		6,615
Villas of Holly Brook, Shelbyville, IL	2201 West Main Street, Shelbyville, IL	IL		39,735		45	2011		5,954		5,906
Villas of Holly Brook - Marshall, IL	17050 N. Quality Lime Road, Marshall, IL	IL		29,269		46	2012		6,071		6,023
Villas of Holly Brook - Effingham, IL	404 W Evergreen Ave, Effingham, IL	IL		46,130		46	2011		6,327		6,274
Lakeside ALF - San Antonio, TX	8627 Lakeside Parkway, San Antonio, TX	TX		56,500		68	2013		13,150		13,096
Villas of St. James - Breese, IL	14335 Jamestown Road, Breese, IL	IL		53,878		65	2009		6,500		6,473
Villas of Holly Brook - Chatham, IL	825 E Walnut Street, Chatham, IL	IL		46,130		50	2012		6,567		6,567
Villas of Holly Brook - Newton, IL	101 South Gregory St, Newton, IL	IL		34,985		41	2011		5,343		5,343
Triple-Net Seniors Housing Subtotal/Average				462,447		526	2011		76,643		75,809
TRIPLE-NET: SKILLED NURSING
CareMeridian Rehab - Phoenix AZ	5301 E Thomas Road, Phoenix, AZ	AZ		13,500		31	2008		9,016		7,799
Village Healthcare Center - Santa Ana CA	18792 East 17th Street, Santa Ana, CA	CA		7,750		9	2008		4,482		4,089
CareMeridian - La Mesa CA	5640 Aztec Drive, La Mesa, CA	CA		9,000		15	2012		6,000		5,635
TriSun Care Center - San Antonio TX	8707 Lakeside Parkway, San Antonio, TX	TX		42,853		120	2012		12,250		12,029
Triple-Net Skilled Nursing Subtotal/Average				73,103		175	2010		31,748		29,552

PAGE 22 of 24

Property List as of March 31, 2014,continued

Amounts in thousands, except square feet and units/beds

			Building Size		No. Units /		Year Built /	Gross Asset		Net Book
Property Name and Location	Address	State	(Sq. Ft.)		Beds¹		Renovated	Value		Value
TRIPLE-NET: HOSPITAL
Reliant Rehabilitation - Dallas TX	7930 Northaven, Dallas, TX	TX		64,600		60	2009		33,798		29,699
Select Rehabilitation - San Antonio TX	19126 Stonehue, San Antonio, TX	TX		40,828		60	2010		16,525		14,440
Reliant Rehabilitation - Houston TX	20180 Chasewood Park Drive, Houston, TX	TX		65,000		60	2012		31,593		28,466
Baylor Institute for Rehabilition - Ft. Worth TX	6601 Harris Parkway, Fort Worth, TX	TX		40,000		40	2008		16,000		14,601
Sun City LTAC	13818 North Thunderbird Blvd, Sun City, AZ	AZ		48,000		100	2012		20,000		19,448
Mesa LTAC	215 South Power Road, Mesa, AZ	AZ		48,000		100	2012		20,000		19,448
Baylor Orthopedic & Spine - Arlington TX	707 W. Highlander Boulevard, Arlington, TX	TX		57,243		24	2009		28,000		27,303
Triple-Net Hospital Subtotal/Average				363,671		444	2010		165,916		153,405
Triple-Net Subtotal/Average				899,221		1,145	2010		274,307		258,766
LAND
Arbor Terrace - Decatur GA (Land)	1899 Lawrenceville Highway, Decatur, GA	GA							1,789		1,788
Lexington Park - Lady Lake FL (Land)	930 Highway 466, Lady Lake, FL	FL							1,231		1,231
Land Subtotal/Average									3,020		3,020
CONSTRUCTION IN PROGRESS
Aurora Healthcare-Kenosha, WI	7145 120th Ave, Kenosha, WI	WI		54,820			2014		17,896		17,895
Construction in Progress Subtotal/Average				54,820			2014		17,896		17,895
OPERATING PROPERTIES: SENIORS HOUSING
Benton Village - Palm Coast FL	100 Magnolia Trace Way, Palm Coast, FL	FL		104,525		80	2007		17,370		15,752
Benton House - Douglasville GA	4999 Prestley Mill Rd., Douglasville, GA	GA		40,636		59	2010		14,650		13,665
Benton Village - Stockbridge GA	195 & 201 Evergreen Terrace, Stockbridge, GA	GA		86,520		108	2008		17,095		15,363
Benton House - Sugar Hill GA	6009 Suwanee Dam Rd., Sugar Hill, GA	GA		38,571		59	2010		16,150		14,856
Benton House - Newnan GA	25 Newnan Lakes Blvd, Newnan, GA	GA		47,550		64	2010		20,550		18,716
Pelican Pointe - Klamath Falls	605 Washington Way, Klamath, OR	OR		61,045		112	2011		20,957		18,929
Princeton Village - Clackamas OR	14370 SE Oregon Trail Drive, Clackamas, OR	OR		39,450		53	1999		7,140		6,381
Cedar Village - Salem OR	4452 Lancaster Drive NE, Salem, OR	OR		51,585		75	1999		11,545		10,540
Ocean Ridge - Coos Bay OR	1855 SE Ocean Boulevard, Coos Bay, OR	OR		68,139		81	2006		13,606		12,430

PAGE 23 of 24

Property List as of March 31, 2014,continued

Amounts in thousands, except square feet and units/beds

			Building Size		No. Units /		Year Built /	Gross Asset		Net Book
Property Name and Location	Address	State	(Sq. Ft.)		Beds¹		Renovated	Value		Value
Operating Properties: Seniors Housing,continued
Pheasant Pointe - Molalla OR	835 E. Main Street, Molalla, OR	OR		39,428		57	1998		7,930		7,132
Wyndcrest - Rochester IL	4817 Oak Hill Road, Rochester, IL	IL		35,059		37	2005		5,200		4,832
Garden House - Anderson SC	201 Edgebrook Drive, Anderson, SC	SC		50,144		64	2000		13,550		12,716
Arbor Terrace - Largo FL (Tampa)	333 16th Ave SE, Largo, FL	FL		57,844		66	1992		9,274		8,113
Arbor Terrace - Athens GA	170 Marilyn Farmer Way, Athens, GA	GA		38,380		56	1998		19,001		17,470
Barrington Terrace - Naples FL	5175 Tamiami Trail East, Naples, FL	FL		58,169		122	2004		24,312		22,209
Arbor Terrace at Cascade - Atlanta GA	1001 Research Center Atlanta Dr, Atlanta, GA	GA		40,547		68	1999		10,111		9,001
Barrington Terrace - Fort Myers FL	9731 Commerce Center Court, Fort Meyers, FL	FL		54,307		117	2001		18,050		16,234
Arbor Terrace - Knoxville, TN	9051 Cross Park Drive, Knoxville, TN	TN		58,113		84	1997		18,556		16,995
Ocean Crest - Coos Bay OR	192 Norman Avenue, Coos Bay, OR	OR		46,696		61	2006		4,200		3,769
Redwood Heights - Salem OR	4050 12th Street Cut-Off SE, Salem, OR	OR		63,879		80	1999		12,000		11,199
Clearwater Springs - Vancouver WA	201 NW 78th Street, Vancouver, WA	WA		62,797		81	2003		11,305		10,573
Benton House - Covington GA	7155 Dearing Road, Covington, GA	GA		44,674		59	2009		14,000		13,149
Arbor Terrace - Asheville NC	3199 Sweeten Creek Road, Asheville, NC	NC		42,000		63	1998		18,688		17,574
Arbor Terrace - Decatur GA	425 Winn Way, Decatur, GA	GA		51,159		66	1990		23,552		22,170
Gardens at Westlake - Westlake OH	27569 Detroit Road, Westlake, OH	OH		102,000		97	1987		22,543		21,660
Solana at Cinco Ranch - Katy, TX	24001 Cinco Village Center Blvd., Katy, TX	TX		250,000		184	2010		71,260		69,974
Summerhill Villa - Santa Clarita, CA	24431 Lyons Ave, Santa Clarita, CA	CA		90,791		134	2001		52,257		51,601
Casa de Sante Fe - Rocklin, CA	3201 Santa Fe Way, Rocklin, CA	CA		141,200		159	2001		52,250		51,926
Lexington Park - Lake Lady, FL	930 Highway 466, Lady Lake, FL	FL		74,112		89	2010		25,400		25,225
Seniors Housing Operating Properties/Average				1,939,320		2,435	2002		572,502		540,154
Grand Total/Average				6,808,022		3,580	2004		1,894,194		1,777,638

1. Units reported for Senior Housing assets (IL and AL); beds reported for Skilled Nursing facilities, Post-Acute and Hospital assets

PAGE 24 of 24

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