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Segment Reporting
 9 Months Ended
Sep. 30, 2020
Segment Reporting [Abstract]  
Segment Reporting Segment Reporting
The Company conducts its business through the following five segments, which are based on how management reviews and manages its business.
•Direct Investments - Net Lease - Healthcare properties operated under net leases with a tenant/operator.
•Direct Investments - Operating - Healthcare properties operated pursuant to management agreements with healthcare operators/managers.
•Unconsolidated Investments - Healthcare joint ventures, including properties operated under net leases or pursuant to management agreements with healthcare operators, in which the Company owns a minority interest.
•Debt and Securities Investments - Mortgage loans or mezzanine loans to owners of healthcare real estate and commercial mortgage backed securities backed primarily by loans secured by healthcare properties.
•Corporate - The corporate segment includes corporate level asset management and other fees - related party and general and administrative expenses.
The Company primarily generates rental and resident fee income from its direct investments and interest income on real estate debt and securities investments.
The following table presents the operators and tenants of the Company’s properties, excluding properties owned through unconsolidated joint ventures (dollars in thousands):
Nine Months Ended September 30, 2020
Operator / TenantProperties Under Management
Units Under Management(1)
Property and Other Revenues(2)
% of Total Property and Other Revenues
Watermark Retirement Communities30 5,265 $106,499 50.8 %
Solstice Senior Living
(3)
32 4,000 76,314 36.3 %
Avamere Health Services5 453 13,496 6.4 %
Arcadia Management4 572 7,961 3.8 %
Integral Senior Living
(3)
3 162 5,521 2.6 %
Senior Lifestyle Corporation
(4)
1 63 — — %
Other
(5)
— — 163 0.1 %
Total75 10,515 $209,954 100.0 %
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(1)Represents rooms for ALFs and ILFs and beds for MCFs and SNFs, based on predominant type.
(2)Includes rental income received from the Company’s net lease properties as well as rental income, ancillary service fees and other related revenue earned from ILF residents and resident fee income derived from the Company’s ALFs, MCFs and CCRCs, which includes resident room and care charges, ancillary fees and other resident service charges.
(3)Solstice is a joint venture of which affiliates of ISL own 80%.
(4)Tenant has failed to remit rental payments during the nine months ended September 30, 2020.
(5)Consists primarily of interest income earned on corporate-level cash accounts.
The following tables present segment reporting (dollars in thousands):
Direct Investments
Three Months Ended September 30, 2020Net LeaseOperatingUnconsolidated InvestmentsDebt and Securities
Corporate(1)
Total
Property and other revenues$8,225 $59,507 $— $— $23 $67,755 
Interest income on debt investments— — — 1,927 — 1,927 
Real estate properties - operating expenses— (46,501)— — — (46,501)
Interest expense(2,967)(13,165)— — (327)(16,459)
Asset management and other fees - related party— — — — (4,431)(4,431)
General and administrative expenses(562)(82)— — (2,802)(3,446)
Depreciation and amortization(3,722)(12,223)— — — (15,945)
Equity in earnings (losses) of unconsolidated ventures— — (1,043)— — (1,043)
Income tax expense— (15)— — — (15)
Net income (loss)$974 $(12,479)$(1,043)$1,927 $(7,537)$(18,158)
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(1)Includes unallocated asset management fee-related party and general and administrative expenses.
Direct Investments
Three Months Ended September 30, 2019Net LeaseOperatingUnconsolidated InvestmentsDebt and Securities
Corporate(1)
Total
Property and other revenues$8,204 $64,496 $— $10 $68 $72,778 
Interest income on debt investments— — — 1,946 — 1,946 
Real estate properties - operating expenses(5)(45,354)— — — (45,359)
Interest expense(3,025)(14,193)— — — (17,218)
Transaction costs— (29)— — — (29)
Asset management and other fees - related party— — — — (4,994)(4,994)
General and administrative expenses(47)19 — (10)(2,769)(2,807)
Depreciation and amortization(3,595)(12,569)— — — (16,164)
Realized gain (loss) on investments and other— 204 — — — 204 
Equity in earnings (losses) of unconsolidated ventures— — (3,037)— — (3,037)
Income tax expense— (17)— — — (17)
Net income (loss)$1,532 $(7,443)$(3,037)$1,946 $(7,695)$(14,697)
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(1)Includes unallocated asset management fee-related party and general and administrative expenses.
Direct Investments
Nine Months Ended September 30, 2020Net LeaseOperatingUnconsolidated InvestmentsDebt and Securities
Corporate(1)
Total
Property and other revenues$24,673 $185,118 $— $— $163 $209,954 
Interest income on debt investments— — — 5,738 — 5,738 
Real estate properties - operating expenses(13)(137,517)— — — (137,530)
Interest expense(8,879)(40,089)— — (623)(49,591)
Transaction costs— (7)— — — (7)
Asset management and other fees - related party— — — — (13,293)(13,293)
General and administrative expenses(667)(182)— (19)(7,895)(8,763)
Depreciation and amortization(11,123)(37,806)— — — (48,929)
Impairment loss(722)(90,715)— — — (91,437)
Equity in earnings (losses) of unconsolidated ventures— — (36,799)— — (36,799)
Income tax expense— (43)— — — (43)
Net income (loss)$3,269 $(121,241)$(36,799)$5,719 $(21,648)$(170,700)

Direct Investments
Nine Months Ended September 30, 2019Net LeaseOperatingUnconsolidated InvestmentsDebt and Securities
Corporate(1)
Total
Property and other revenues$25,203 $194,391 $— $29 $648 $220,271 
Interest income on debt investments— — — 5,771 — 5,771 
Real estate properties - operating expenses(5)(135,208)— — — (135,213)
Interest expense(9,424)(42,382)— — (102)(51,908)
Transaction costs— (105)— — — (105)
Asset management and other fees - related party— — — — (14,983)(14,983)
General and administrative expenses(159)(17)— (28)(8,006)(8,210)
Depreciation and amortization(10,657)(43,868)— — — (54,525)
Impairment loss(146)(10,000)— — — (10,146)
Realized gain (loss) on investments and other5,871 431 — — (376)5,926 
Equity in earnings (losses) of unconsolidated ventures— — (7,666)— — (7,666)
Income tax benefit (expense)— (38)— — — (38)
Net income (loss)$10,683 $(36,796)$(7,666)$5,772 $(22,819)$(50,826)
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(1)Includes unallocated asset management fee-related party and general and administrative expenses.
The following table presents total assets by segment (dollars in thousands):
Direct Investments
Total Assets:Net LeaseOperatingUnconsolidated InvestmentsDebt and Securities
Corporate(1)
Total
September 30, 2020$353,283 $1,304,172 $230,254 $55,649 $64,604 $2,007,962 
December 31, 2019365,789 1,420,023 268,892 56,099 30,404 2,141,207 
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(1)Represents primarily corporate cash and cash equivalents balances.