Revenue Recognition. Interest income on mortgage loans is recognized using the effective interest method. We follow a policy related to mortgage interest whereby we consider a loan to be non -performing after 60 days of non - payment of amounts due and do not recognize unpaid mortgage interest income from that loan until the past due amounts have been received. Rental income from operating leases is generally recognized on a straight -line basis over the terms of the leases. Substantially all of our leases contain provisions for specified annual increases over the rents of the prior year and are generally computed in one of four methods depending on specific provisions of each lease as follows: (i) a specified annual increase over the prior year s rent, generally between 2.0% and 3.0%; (ii) a calculation based on the Consumer Price Index; (iii) as a percentage of facility revenues in excess of base amounts or (iv) specific dollar increases. The FASB does not provide for the recognition of contingent revenue until all possible contingencies have been eliminated. We consider the operating history of the lessee and the general condition of the industry when evaluating whether all possible contingencies have been eliminated and have historically, and expect in the future, to not include contingent rents as income until received. We follow a policy related to rental income whereby we consider a lease to be non - performing after 60 days of non -payment of past due amounts and do not recognize unpaid rental income from that lease until the amounts have been received. Rental revenues relating to non -contingent leases that contain specified rental increases over the life of the lease are recognized on the straight -line basis. Recognizing income on a straight -line basis requires us to calculate the total non -contingent rent containing specified rental increases over the life of the lease and to recognize the revenue evenly over that life. This method results in rental income in the early years of a lease being higher