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Segment Reporting (Tables)
 6 Months Ended
Jun. 30, 2019
Segment Reporting [Abstract]  
Schedule of Real Estate Properties
The following table presents the operators and tenants of the Company’s properties, excluding properties owned through unconsolidated joint ventures as of June 30, 2019 (dollars in thousands):
 
 
 
 
 
 
Six Months Ended June 30, 2019
Operator / Tenant
 
Properties Under Management
 
Units Under Management(1)
 
Property and Other Revenues
 
% of Total Property and Other Revenues
Watermark Retirement Communities
 
30

 
5,265

 
$
76,521

 
51.9
%
Solstice Senior Living
(2) 
32

 
4,000

 
53,224

 
36.1
%
Avamere Health Services
 
5

 
453

 
8,252

 
5.6
%
Arcadia Management
 
4

 
572

 
5,308

 
3.6
%
Integral Senior Living
(2) 
3

 
162

 
2,991

 
2.0
%
Peregrine Senior Living
(3) 
—

 
—

 
598

 
0.4
%
Senior Lifestyle Corporation
(4) 
1

 
63

 
—

 
—
%
Other
(5) 
—

 
—

 
599

 
0.4
%
Total
 
75

 
10,515

 
$
147,493

 
100.0
%
______________________________________
(1)
Represents rooms for ALF and ILF and beds for MCF and SNF, based on predominant type.
(2)
Solstice is a joint venture of which affiliates of ISL own 80%.
(3)
In May 2019, the Company sold the two properties leased to Peregrine Senior Living.
(4)
Tenant has failed to remit rental payments during the six months ended June 30, 2019. Properties and unit counts exclude one property held for sale.
(5)
Consists primarily of interest income earned on corporate-level cash accounts.
Summary of Segment Reporting
The following tables present segment reporting for the three months ended June 30, 2019 and 2018 (dollars in thousands):
 
 
Direct Investments
 
 
 
 
 
 
 
 
Three Months Ended June 30, 2019
 
Net Lease
 
Operating
 
Unconsolidated Investments
 
Debt and Securities
 
Corporate(1)
 
Total
Rental and resident fee income
 
$
8,446

 
$
65,523

 
$
—

 
$
—

 
$
—

 
$
73,969

Net interest income on debt and securities
 
—

 
—

 
—

 
1,923

 
—

 
1,923

Other revenue
 
—

 
760

 
—

 
10

 
233

 
1,003

Property operating expenses
 
(1
)
 
(44,635
)
 
—

 
—

 
—

 
(44,636
)
Interest expense
 
(3,124
)
 
(14,148
)
 
—

 
—

 
(22
)
 
(17,294
)
Transaction costs
 
—

 
(38
)
 
—

 
—

 
—

 
(38
)
Asset management and other fees - related party
 
—

 
—

 
—

 
—

 
(4,995
)
 
(4,995
)
General and administrative expenses
 
(97
)
 
(25
)
 
—

 
(9
)
 
(2,218
)
 
(2,349
)
Depreciation and amortization
 
(3,499
)
 
(12,463
)
 
—

 
—

 
—

 
(15,962
)
Impairment loss
 
(146
)
 
(10,000
)
 
—

 
—

 
—

 
(10,146
)
Realized gain (loss) on investments and other
 
5,871

 
(10
)
 
—

 
—

 
(376
)
 
5,485

Income (loss) before equity in earnings (losses) of unconsolidated ventures and income tax benefit (expense)
 
7,450

 
(15,036
)
 
—

 
1,924

 
(7,378
)
 
(13,040
)
Equity in earnings (losses) of unconsolidated ventures
 
—

 
—

 
(4,405
)
 
—

 
—

 
(4,405
)
Income tax benefit (expense)
 
—

 
(15
)
 
—

 
—

 
—

 
(15
)
Net income (loss)
 
$
7,450

 
$
(15,051
)
 
$
(4,405
)
 
$
1,924

 
$
(7,378
)
 
$
(17,460
)
_______________________________________
(1)
Includes unallocated asset management fee-related party and general and administrative expenses.



 
 
Direct Investments
 
 
 
 
 
 
 
 
Three Months Ended June 30, 2018(1)
 
Net Lease
 
Operating
 
Unconsolidated Investments
 
Debt and Securities
 
Corporate(2)
 
Total
Rental and resident fee income
 
$
7,950

 
$
63,897

 
$
—

 
$
—

 
$
—

 
$
71,847

Net interest income on debt and securities
 
—

 
—

 
—

 
1,921

 
—

 
1,921

Other revenue
 
—

 
728

 
—

 
—

 
202

 
930

Property operating expenses
 
(825
)
 
(46,906
)
 
—

 
—

 
—

 
(47,731
)
Interest expense
 
(3,306
)
 
(14,304
)
 
—

 
—

 
(83
)
 
(17,693
)
Transaction costs
 
—

 
—

 
—

 
—

 
(41
)
 
(41
)
Asset management and other fees - related party
 
—

 
—

 
—

 
—

 
(5,951
)
 
(5,951
)
General and administrative expenses
 
(56
)
 
(128
)
 
—

 
(10
)
 
(3,230
)
 
(3,424
)
Depreciation and amortization
 
(3,368
)
 
(24,126
)
 
—

 
—

 
—

 
(27,494
)
Impairment loss
 
(2,456
)
 
—

 
—

 
—

 
—

 
(2,456
)
Income (loss) before equity in earnings (losses) of unconsolidated ventures and income tax benefit (expense)
 
(2,061
)
 
(20,839
)
 
—

 
1,911

 
(9,103
)
 
(30,092
)
Equity in earnings (losses) of unconsolidated ventures
 
—

 
—

 
(4,098
)
 
—

 
—

 
(4,098
)
Income tax benefit (expense)
 
—

 
(15
)
 
—

 
—

 
—

 
(15
)
Net income (loss)
 
$
(2,061
)
 
$
(20,854
)
 
$
(4,098
)
 
$
1,911

 
$
(9,103
)
 
$
(34,205
)
_______________________________________
(1)
For the three months ended June 30, 2018, the Company did not have activity in the healthcare-related securities segment as a result of having sold the Class B certificates of its consolidated Investing VIE in March 2018 and no longer having to consolidate the related interest income and interest expense on the consolidated statements of operations.
(2)
Includes unallocated asset management fee-related party and general and administrative expenses.

The following tables present segment reporting for the six months ended June 30, 2019 and 2018 (dollars in thousands):
 
 
Direct Investments
 
 
 
 
 
 
 
 
Six Months Ended June 30, 2019
 
Net Lease
 
Operating
 
Unconsolidated Investments
 
Debt and Securities
 
Corporate(1)
 
Total
Rental and resident fee income
 
$
16,998

 
$
129,135

 
$
—

 
$
—

 
$
—

 
$
146,133

Net interest income on debt and securities
 
—

 
—

 
—

 
3,825

 
—

 
3,825

Other revenue
 
1

 
760

 
—

 
19

 
580

 
1,360

Property operating expenses
 
(1
)
 
(89,853
)
 
—

 
—

 
—

 
(89,854
)
Interest expense
 
(6,399
)
 
(28,189
)
 
—

 
—

 
(102
)
 
(34,690
)
Transaction costs
 
—

 
(76
)
 
—

 
—

 
—

 
(76
)
Asset management and other fees - related party
 
—

 
—

 
—

 
—

 
(9,989
)
 
(9,989
)
General and administrative expenses
 
(112
)
 
(37
)
 
—

 
(19
)
 
(5,235
)
 
(5,403
)
Depreciation and amortization
 
(7,063
)
 
(31,298
)
 
—

 
—

 
—

 
(38,361
)
Impairment loss
 
(146
)
 
(10,000
)
 
—

 
—

 
—

 
(10,146
)
Realized gain (loss) on investments and other
 
5,871

 
227

 
—

 
—

 
(376
)
 
5,722

Income (loss) before equity in earnings (losses) of unconsolidated ventures and income tax benefit (expense)
 
9,149

 
(29,331
)
 
—

 
3,825

 
(15,122
)
 
(31,479
)
Equity in earnings (losses) of unconsolidated ventures
 
—

 
—

 
(4,629
)
 
—

 
—

 
(4,629
)
Income tax benefit (expense)
 
—

 
(21
)
 
—

 
—

 
—

 
(21
)
Net income (loss)
 
$
9,149

 
$
(29,352
)
 
$
(4,629
)
 
$
3,825

 
$
(15,122
)
 
$
(36,129
)
_______________________________________
(1)
Includes unallocated asset management fee-related party and general and administrative expenses.


 
 
Direct Investments
 
 
 
 
 
 
 
 
 
 
 
 
Six Months Ended June 30, 2018
 
Net Lease
 
Operating
 
Unconsolidated Investments
 
Debt and Securities
 
Corporate(1)
 
Subtotal
 
Investing VIE(2)
 
Total
Rental and resident fee income
 
$
16,696

 
$
128,708

 
$
—

 
$
—

 
$
—

 
$
145,404

 
$
—

 
$
145,404

Net interest income on debt and securities
 
—

 
—

 
—

 
4,648

(3) 
(314
)
(3) 
4,334

 
811

 
5,145

Other revenue
 
—

 
1,383

 
—

 
—

 
295

 
1,678

 
—

 
1,678

Property operating expenses
 
(834
)
 
(93,323
)
 
—

 
—

 
—

 
(94,157
)
 
—

 
(94,157
)
Interest expense
 
(6,707
)
 
(27,913
)
 
—

 
—

 
(111
)
 
(34,731
)
 
—

 
(34,731
)
Other expenses related to securitization trust
 
—

 
—

 
—

 
—

 
—

 
—

 
(811
)
 
(811
)
Transaction costs
 
—

 
(763
)
 
—

 
—

 
(41
)
 
(804
)
 
—

 
(804
)
Asset management and other fees - related party
 
—

 
—

 
—

 
—

 
(11,894
)
 
(11,894
)
 
—

 
(11,894
)
General and administrative expenses
 
(61
)
 
(441
)
 
—

 
(25
)
 
(6,584
)
 
(7,111
)
 
—

 
(7,111
)
Depreciation and amortization
 
(6,720
)
 
(49,594
)
 
—

 
—

 
—

 
(56,314
)
 
—

 
(56,314
)
Impairment loss
 
(2,456
)
 
(2,783
)
 
—

 
—

 
—

 
(5,239
)
 
—

 
(5,239
)
Unrealized gain (loss) on senior housing mortgage loans and debt held in securitization trust, net
 
—

 
—

 
—

 
(314
)
 
314

 
—

 
—

 
—

Realized gain (loss) on investments and other
 
—

 
—

 
—

 
3,495

 
—

 
3,495

 
—

 
3,495

Income (loss) before equity in earnings (losses) of unconsolidated ventures and income tax benefit (expense)
 
(82
)
 
(44,726
)
 
—

 
7,804

 
(18,335
)
 
(55,339
)
 
—

 
(55,339
)
Equity in earnings (losses) of unconsolidated ventures
 
—

 
—

 
(12,724
)
 
—

 
—

 
(12,724
)
 
—

 
(12,724
)
Income tax benefit (expense)
 
—

 
(30
)
 
—

 
—

 
—

 
(30
)
 
—

 
(30
)
Net income (loss)
 
$
(82
)
 
$
(44,756
)
 
$
(12,724
)
 
$
7,804

 
$
(18,335
)
 
$
(68,093
)
 
$
—

 
$
(68,093
)
______________________________________
(1)
Includes unallocated asset management fee-related party and general and administrative expenses.
(2)
Investing VIEs are not considered to be a segment that the Company conducts its business through, however, U.S. GAAP requires the Company, as the primary beneficiary, to present the assets and liabilities of the securitization trust on its consolidated balance sheets and recognize the related interest income and interest expense, as net interest income on the consolidated statements of operations. Though U.S. GAAP requires this presentation, the Company views its investment in the securitization trust as a net investment in healthcare-related securities.
(3)
Represents income earned from the healthcare-related securities purchased at a discount, recognized using the effective interest method had the transaction been recorded as an available for sale security, at amortized cost. During the six months ended June 30, 2018, $0.3 million was attributable to discount accretion income and was eliminated in consolidation in the corporate segment.
Summary of Assets by Segment
The following table presents total assets by segment as of June 30, 2019 and December 31, 2018 (dollars in thousands):
 
 
Direct Investments
 
 
 
 
 
 
 
 
Total Assets:
 
Net Lease
 
Operating
 
Unconsolidated Investments
 
Debt and Securities
 
Corporate(1)
 
Total
June 30, 2019
 
$
376,284

 
$
1,444,518

 
$
288,905

 
$
57,306

 
$
19,193

 
$
2,186,206

December 31, 2018
 
394,697

 
1,481,522

 
264,317

 
59,620

 
64,260

 
2,264,416

_______________________________________
(1)
Represents primarily corporate cash and cash equivalent balances.