As discussed in the "Results of Operations" section contained in our Form 10-K for the year ended December 31, 2012, our net loss and MFFO for the three months and year ended December 31, 2012, have been significantly impacted by our acquisition of the Homeland Portfolio and additional debt we incurred to purchase such properties. The information below should be read in conjunction with the discussion regarding the Homeland Portfolio acquisition in Results of Operations.
(1) Changes in MFFO between the three months ended December 31, 2012 and 2011 include the following:
•Total revenues less all property operating expenses were approximately $9.8 million for the three months ended December 31, 2012 compared to approximately $7.2 million for the three months ended December 31, 2011, thereby increasing MFFO by approximately $2.6 million. Such increase was primarily due to the acquisition of 32 properties during the fourth quarter of 2011 and the year ended December 31, 2012, along with an increase in same-store operating income of approximately $0.9 million or approximately 10.4%. •A decrease in MFFO of approximately $1.2 million due to increased interest expense, primarily related to interest incurred on the Second Restated KeyBank Loan (approximately $0.8 million) and, to a lesser extent, other new debt incurred.
Changes in MFFO between the year ended December 31, 2012 and 2011 include the following:
•Total revenues less all property operating expenses were approximately $32.5 million for the year ended December 31, 2012 compared to approximately $24.3 million for the year ended December 31, 2011, thereby increasing MFFO by approximately $8.2 million. Such increase was primarily due to the acquisition of 65 properties during 2011 and 2012, along with an increase in same-store operating income during the same period of approximately $2.3 million, or approximately 11.5%. •A decrease in MFFO of approximately $6.0 million due to increased interest expense, primarily related to interest incurred on the Second Restated KeyBank Loan (approximately $3.8 million), the KeyBank Bridge Loan (approximately $0.7 million) and other new debt incurred. •A decrease in MFFO of approximately $2.1 million due to increased amortization of deferred financing costs, which increased for principally the same reasons as interest expense. Of the increase, approximately $0.9 million related to the KeyBank Bridge Loan.
(2) Relates to the noncontrolling interest in our consolidated joint venture and the noncontrolling interests in our Operating Partnership. The noncontrolling interest holder's share of our consolidated venture's real estate depreciation and amortization of intangible assets was $56,000 and $86,000, respectively, for the three months ended December 31, 2012 and 2011, and $225,000 and $621,000, respectively, for the years ended December 31, 2012 and 2011.
(3) In evaluating investments in real estate, we differentiate the costs to acquire the investment from the operations derived from the investment. Such information would be comparable only for publicly registered, non-traded REITs that have generally completed their acquisition activity and have other similar operating characteristics. By excluding expensed acquisition related expenses, we believe MFFO provides useful supplemental information that is comparable for each type of real estate investment and is consistent with management's analysis of the investing and operating performance of our properties. Acquisition fees and expenses include payments to our Advisor and third parties. Acquisition related expenses under GAAP are considered operating expenses and as expenses included in the determination of net income (loss) and income (loss) from continuing operations, both of which are performance measures under GAAP. All paid and accrued acquisition fees and expenses will have negative effects on returns to investors, the potential for future distributions, and cash flows generated by us, unless earnings from operations or net sales proceeds from the disposition of other properties are generated to cover the purchase price of the property, these fees and expenses and other costs related to such property.
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