SEGMENT INFORMATION

3 Months Ended

Mar. 31, 2013

Segment Reporting [Abstract]

SEGMENT INFORMATION

SEGMENT INFORMATION

As of March 31, 2013, we operated through three reportable business segments: triple-net leased properties, senior living operations and MOB operations. Under our triple-net leased properties segment, we acquire and own seniors housing and healthcare properties throughout the United States and lease those properties to healthcare operating companies under “triple-net” or “absolute-net” leases that obligate the tenants to pay all property-related expenses. Under our senior living operations segment, we invest in seniors housing communities throughout the United States and Canada and engage independent operators, such as Atria and Sunrise, to manage those communities. Under our MOB operations segment, we primarily acquire, own, develop, lease and manage MOBs. Information provided for “all other” includes income from loans and investments and other miscellaneous income and various corporate-level expenses not directly attributable to our three reportable business segments. Assets included in “all other” consist primarily of corporate assets, including cash, restricted cash, deferred financing costs, loans receivable and miscellaneous accounts receivable.

We evaluate performance of the combined properties in each reportable business segment based on segment profit, which we define as NOI adjusted for income/loss from unconsolidated entities. We define NOI as total revenues, less interest and other income, property-level operating expenses and medical office building services costs. We believe that net income, as defined by GAAP, is the most appropriate earnings measurement. However, we believe that segment profit serves as a useful supplement to net income because it allows investors, analysts and our management to measure unlevered property-level operating results and to compare our operating results to the operating results of other real estate companies and between periods on a consistent basis. Segment profit should not be considered as an alternative to net income (determined in accordance with GAAP) as an indicator of our financial performance. In order to facilitate a clear understanding of our consolidated historical operating results, segment profit should be examined in conjunction with net income as presented in our Consolidated Financial Statements and other financial data included elsewhere in this Quarterly Report on Form 10-Q.

Interest expense, depreciation and amortization, general, administrative and professional fees, income tax expense, discontinued operations and other non-property specific revenues and expenses are not allocated to individual reportable business segments for purposes of assessing segment performance. There are no intersegment sales or transfers.

Summary information by reportable business segment is as follows:

For the three months ended March 31, 2013:

	Triple-Net Leased Properties		Senior Living Operations			MOB Operations		All Other		Total
	(In thousands)
Revenues:
Rental income	$	213,763	$	—		$	111,146	$	—	$	324,909
Resident fees and services	—		339,170			—		—		339,170
Medical office building and other services revenue	1,111		—			2,537		—		3,648
Income from loans and investments	—		—			—		16,103		16,103
Interest and other income	—		—			—		1,038		1,038
Total revenues	$	214,874	$	339,170		$	113,683	$	17,141	$	684,868
Total revenues	$	214,874	$	339,170		$	113,683	$	17,141	$	684,868
Less:
Interest and other income	—		—			—		1,038		1,038
Property-level operating expenses	—		230,908			36,541		—		267,449
Medical office building services costs	—		—			1,639		—		1,639
Segment NOI	214,874		108,262			75,503		16,103		414,742
Income (loss) from unconsolidated entities	187		(600		)	1,342		—		929
Segment profit	$	215,061	$	107,662		$	76,845	$	16,103	415,671
Interest and other income										1,038
Interest expense										(79,600		)
Depreciation and amortization										(179,017		)
General, administrative and professional fees										(28,774		)
Merger-related expenses and deal costs										(4,262		)
Other										(4,587		)
Income tax expense										(1,744		)
Discontinued operations										(5,627		)
Net income										$	113,098

For the three months ended March 31, 2012:

	Triple-Net Leased Properties		Senior Living Operations		MOB Operations		All Other		Total
	(In thousands)
Revenues:
Rental income	$	203,575	$	—	$	63,965	$	—	$	267,540
Resident fees and services	—		285,193		—		—		285,193
Medical office building and other services revenue	1,109		—		4,499		—		5,608
Income from loans and investments	—		—		—		8,036		8,036
Interest and other income	—		—		—		47		47
Total revenues	$	204,684	$	285,193	$	68,464	$	8,083	$	566,424
Total revenues	$	204,684	$	285,193	$	68,464	$	8,083	$	566,424
Less:
Interest and other income	—		—		—		47		47
Property-level operating expenses	—		195,134		20,703		—		215,837
Medical office building services costs	—		—		2,988		—		2,988
Segment NOI	204,684		90,059		44,773		8,036		347,552
Income from unconsolidated entities	266		—		51		—		317
Segment profit	$	204,950	$	90,059	$	44,824	$	8,036	347,869
Interest and other income									47
Interest expense									(68,130		)
Depreciation and amortization									(160,421		)
General, administrative and professional fees									(22,198		)
Loss on extinguishment of debt									(29,544		)
Merger-related expenses and deal costs									(7,981		)
Other									(1,576		)
Income tax expense									(11,338		)
Discontinued operations									43,364
Net income									$	90,092

Capital expenditures, including investments in real estate property and development project expenditures, by reportable business segment are as follows:

	For the Three Months Ended March 31,
	2013		2012
	(In thousands)
Capital expenditures:
Triple-net leased	$	13,180	$	4,863
Senior living	20,168		17,166
MOB	64,210		19,764
Total capital expenditures	$	97,558	$	41,793

Our portfolio of properties and mortgage loan and other investments are located in the United States and Canada. Revenues are attributed to an individual country based on the location of each property.

Geographic information regarding our operations is as follows:

	For the Three Months Ended March 31,
	2013		2012
	(In thousands)
Revenues:
United States	$	661,488	$	542,823
Canada	23,380		23,601
Total revenues	$	684,868	$	566,424

	As of March 31, 2013		As of December 31, 2012
	(In thousands)
Net real estate property:
United States	$	16,605,758	$	16,711,508
Canada	389,979		400,024
Total net real estate property	$	16,995,737	$	17,111,532