Operating revenue for the quarter was $83.8 million versus $72.6 million for the second quarter of 2011. The increase was primarily a result of $7.4 million of incremental lease revenue from a combination of acquisitions completed in the second half of 2011, capital improvements made to our facilities throughout 2011 and 2012 and lease amendments made during that same time period, $4 million of mortgage interest from new mortgages originated throughout 2011 and a $0.5 million of other investment income related to a $28 million note originated in December.
These three were partially offset by a $700,000 reduction in lease revenue related to one operator whose revenue is recorded on a cash basis and is anticipated to be current in the third quarter. The $83.8 million of revenue for the quarter includes approximately $8 million of non-cash revenue.
Operating expense for the second quarter of 2012, when excluding nursing home expenses, provisions for uncollectible accounts receivable and stock-based compensation expense increased by $2.5 million as compared to the second quarter of 2011. The increase was primarily a result of $2.4 million in depreciation and amortization expense related to the closing of approximately $370 million of new investments since July 1, 2011.
From a G&A standpoint, we project our 2012 annual G&A expense to be approximately $14.5 million assuming no extraordinary transactions or unusual events. Interest expense for the quarter when excluding refinancing cost and non-cash deferred financing cost was $24 million versus $20 million for the same period of 2011. The $4 million increase in interest expense resulted from higher debt balances associated with financings related to $370 million of new investments completed since July 1, 2011 and includes a full quarter of interest associated with the $400 million 5 7/8% bonds due 2024 that were issued in March 2012 offset by interest related to the March redemption of our then 175 million 7% bonds due 2016.Read the rest of this transcript for free on seekingalpha.com
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