According to the United States Department of Commerce, Bureau of Economic Analysis, healthcare is one of the largest industries in the United States, and was responsible for approximately 15% of United States gross domestic product in 2002. Healthcare spending has consistently grown at rates greater than overall spending growth and inflation. Healthcare expenditures are projected to increase by more than 7% in 2004 and 2005 to $1.8 trillion and $1.9 trillion, respectively, and are expected to reach $3.1 trillion by 2012.

It is believed that the fundamental reasons for this growth in the demand for healthcare services include the aging and growth of the United States population, the advances in medical technology and treatments, and the increase in life expectancy. The projected compound annual growth rate (or CAGR), from 2000 to 2030 of the population of senior citizens is three times the rate projected for the total United States population. This demographic trend is projected to result in an increase in the percentage of United States citizens who are age 65 or older from 12.4% in 2000 to 19.6% in 2030.

To satisfy this growing demand for healthcare services, there is a significant amount of new construction of healthcare facilities. In 2002 alone, $22.4 billion was spent on the construction of healthcare facilities, according to the United States Department of Health and Human Services, Centers for Medicare and Medicaid Services. This represented an approximately 17% increase over the $19.2 billion in healthcare construction spending for 2001.

Bowling Green facility, licensed for 76 beds, is an approximately 89,139 gross square foot rehabilitation hospital located in Marlton, New Jersey. Marlton, New Jersey is in the Philadelphia, Pennsylvania metropolitan area. Construction of the facility was completed in 1994.

Fresno, California facility, licensed for 62 beds, is an approximately 78,258 gross square foot rehabilitation hospital. Construction of the facility was completed in 1990.

Thornton, Colorado facility, licensed for 117 beds, is an approximately 141,388 gross square foot rehabilitation hospital located in Thornton, Colorado, which is in the Denver, Colorado metropolitan area. Of the 117 beds, 70 are rehabilitation beds, 23 are psychiatric beds and 24 are skilled nursing care beds.

Kentfield, California facility, licensed for 60 beds, is an approximately 43,500 gross square foot long-term acute care hospital located in Kentfield, California, which is in Marin County, approximately 15 miles north of San Francisco. Construction of the facility was completed in 1963 with the last renovations in 1988.

New Bedford, Massachusetts facility, licensed for 90 beds, is an approximately 70,657 gross square foot long-term acute care hospital located in the Boston metropolitan area. Construction of the original facility was completed in 1942 with additions completed as recently as 1995.

In June 2004, the Company entered into agreements with Stealth, L.P., or Stealth, and its affiliate, GP Medical Ventures, LLC, or GPMV, to develop an acute care community hospital and adjoining medical office building in Houston, Texas. The Company has engaged GPMV to develop a 105 bed, 121,884 gross square foot acute care community hospital. Seventy-one beds will be acute care beds to be operated by Stealth and 34 will be long-term acute care beds to be operated by Triumph Southwest, L.P., a tenant of Stealth. The Company has engaged a third-party developer to develop an adjacent 120,000 gross square foot medical office building on the property.

Revenue was $6.48 million for the three months ended March 31, 2005.

Depreciation and amortization expenses for the three months ended March 31, 2005 were $842.41 thousand.

General and administrative expenses for the three months ended March 31, 2005 totaled $1.70 million .

Other income for the three months ended March 31, 2005 was $383.77 thousand.

Interest expense from the borrowings during the three months ended March 31, 2005 totaled $711.15 thousand.