Quarterly report pursuant to Section 13 or 15(d)

INVESTMENTS IN REAL ESTATE AND INTANGIBLES

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INVESTMENTS IN REAL ESTATE AND INTANGIBLES
 6 Months Ended
Jun. 30, 2013
Investments In Real Estate And Intangibles  
INVESTMENTS IN REAL ESTATE AND INTANGIBLES
7.
INVESTMENTS IN REAL ESTATE AND INTANGIBLES

Newcastle recorded investments in real estate and related intangibles at their estimated fair value at acquisition. Expenditures for ordinary maintenance and repairs are expensed as incurred. Renovations and improvements which improve and/or extend the life of the assets are capitalized and depreciated over their estimated useful lives. Newcastle will periodically assess the carrying value of the assets to determine if facts and circumstances exist that would suggest that assets might be impaired or that the useful lives should be modified. In the event that an impairment in value occurs and Newcastle believes that the carrying amount of the assets will not be recovered, a provision will be recorded to reduce the carrying basis of the assets to their estimated fair value. The following table summarizes Newcastle’s investments in real estate:
 
    June 30, 2013     December 31, 2012  
   
Gross Carrying
    
Accumulated
     Net Carrying     
Gross Carrying
    
Accumulated
     Net Carrying   
   
Amount
    
Depreciation
    
Value
    
Amount
    
Depreciation
    
Value
  
Senior Living
                                    
Land
   $ 15,993     $ —     $ 15,993     $ 15,993     $ —     $ 15,993  
Buildings
     144,676       (3,150 )     141,526       144,676       (1,349 )     143,327  
Building improvements
     2,841       (324 )     2,517       2,433       (124 )     2,309  
Furniture, fixtures and equipment
     1,537       (381 )     1,156       1,257       (85 )     1,172  
Senior Living Total
   $ 165,047     $ (3,855 )   $ 161,192     $ 164,359     $ (1,558 )   $ 162,801  
                                                 
Other Commercial Real Estate
                                                
Land
   $ 1,106     $ —     $ 1,106     $ 1,106     $ —     $ 1,106  
Buildings
     6,588       (1,269 )     5,319       6,588       (1,181 )     5,407  
Building improvements
     951       (690 )     261       826       (667 )     159  
Furniture, fixtures and equipment
     —       —       —       —       —       —  
Other Commercial Real Estate Total
   $ 8,645     $ (1,959 )   $ 6,686     $ 8,520     $ (1,848 )   $ 6,672  
                                                 
Total Investments in Real Estate
   $ 173,692     $ (5,814 )   $ 167,878     $ 172,879     $ (3,406 )   $ 169,473  
 
Intangibles

The following table summarizes Newcastle’s intangible assets related to its senior living real estate:
 
    June 30, 2013     December 31, 2012  
   
Gross Carrying
    
Accumulated
     Net Carrying     
Gross Carrying
    
Accumulated
     Net Carrying    
   
Amount
    
Amortization
    
Value
    
Amount
    
Amortization
    
Value
  
In-place resident lease intangibles
   $ 22,711     $ (9,882 )   $ 12,829     $ 22,711     $ (4,205 )   $ 18,506  
Non-compete intangibles
     600       (80 )     520       600       (20 )     580  
Total intangibles
   $ 23,311     $ (9,962 )   $ 13,349     $ 23,311     $ (4,225 )   $ 19,086