Business Focus

Our tenants’ success translates into our success. We work closely with our tenants to help them achieve their business objectives thereby consistently strengthening our tenant relationships. These close relationships have resulted in consistent repeat business. As of December 31, 2010, 137 of our 185 properties are being leased to operators with whom we have had a relationship for at least five years, and 71 of the 185 properties are leased to operators with whom we have done business for at least 10 years.

Our years of experience, industry contacts and insight allow us to identify high quality local, regional and national operators to successfully triple-net lease our properties. We endeavor to identify operators that possess local market knowledge, demonstrate hands-on management, have proven track records and that are typically management-owned and controlled.

We are disciplined and selective about the investments we make. Our underwriting process includes evaluations of the track record and history of each operator, the facility condition, the market area for each facility and the reimbursement environment. We pursue a strategy of multiple tenants in each of our markets and multiple facilities for each of our tenants.

We have a long, successful track record of acquisitions, developments and other investments involving healthcare properties. Through our predecessor entities, we have been in the business of financing operators of SNFs for more than 30 years.

We lease our properties to a diverse group of 32 local, regional and national operators. In addition, we have a geographically diversified portfolio of properties located in 24 states.

We have implemented systems to monitor the performance of our tenants and the tenants’ operation of the properties. These include: regular and ongoing contact with tenants, routine visits to our properties and monitoring of the financial and overall performance of each property. This knowledge helps position us to re-lease properties on a proactive basis as it becomes necessary or desirable. In addition, our active focus on portfolio management enables us to identify strategic opportunities to finance capital expenditures, which enhance a facility’s physical plant, market position, occupancy and growth prospects.

Many members of our management team have significant industry experience and have been with the Company for 10 years or more. Craig Bernfield, our Chairman, President and Chief Executive Officer, has been with Aviv and its predecessor entities for over 20 years.