SEGMENT INFORMATION

As of June 30, 2015, 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 the United Kingdom 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. In 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. In 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 any of 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 investments, 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 consider segment profit useful 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. In order to facilitate a clear understanding of our historical consolidated 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/benefit, 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 June 30, 2015:



	Triple-Net Leased Properties		Senior Living Operations			MOB Operations		All Other			Total
	(In thousands)
Revenues:
Rental income	$	260,562	$	—		$	140,403	$	—		$	400,965
Resident fees and services	—		454,645			—		—			454,645
Medical office building and other services revenue	1,139		—			7,749		520			9,408
Income from loans and investments	—		—			—		26,068			26,068
Interest and other income	—		—			—		236			236
Total revenues	$	261,701	$	454,645		$	148,152	$	26,824		$	891,322
Total revenues	$	261,701	$	454,645		$	148,152	$	26,824		$	891,322
Less:
Interest and other income	—		—			—		236			236
Property-level operating expenses	—		299,252			43,321		—			342,573
Medical office building services costs	—		—			5,764		—			5,764
Segment NOI	261,701		155,393			99,067		26,588			542,749
Income (loss) from unconsolidated entities	221		(240		)	143		(115		)	9
Segment profit	$	261,922	$	155,153		$	99,210	$	26,473		542,758
Interest and other income											236
Interest expense											(107,591		)
Depreciation and amortization											(249,195		)
General, administrative and professional fees											(33,962		)
Gain on extinguishment of debt, net											455
Merger-related expenses and deal costs											(14,585		)
Other											(5,091		)
Income tax benefit											9,789
Discontinued operations											67
Gain on real estate dispositions											7,469
Net income											$	150,350

For the three months ended June 30, 2014:



	Triple-Net Leased Properties		Senior Living Operations		MOB Operations		All Other			Total
	(In thousands)
Revenues:
Rental income	$	242,726	$	—	$	114,890	$	—		$	357,616
Resident fees and services	—		374,473		—		—			374,473
Medical office building and other services revenue	1,145		—		2,722		500			4,367
Income from loans and investments	—		—		—		14,625			14,625
Interest and other income	—		—		—		173			173
Total revenues	$	243,871	$	374,473	$	117,612	$	15,298		$	751,254
Total revenues	$	243,871	$	374,473	$	117,612	$	15,298		$	751,254
Less:
Interest and other income	—		—		—		173			173
Property-level operating expenses	—		249,424		39,335		—			288,759
Medical office building services costs	—		—		1,626		—			1,626
Segment NOI	243,871		125,049		76,651		15,125			460,696
Income (loss) from unconsolidated entities	17		160		307		(136		)	348
Segment profit	$	243,888	$	125,209	$	76,958	$	14,989		461,044
Interest and other income										173
Interest expense										(91,501		)
Depreciation and amortization										(190,818		)
General, administrative and professional fees										(31,306		)
Loss on extinguishment of debt, net										(2,924		)
Merger-related expenses and deal costs										(9,599		)
Other										(4,863		)
Income tax expense										(3,274		)
Discontinued operations										(255		)
Gain on real estate dispositions										11,889
Net income										$	138,566

For the six months ended June 30, 2015:



	Triple-Net Leased Properties		Senior Living Operations			MOB Operations		All Other			Total
	(In thousands)
Revenues:
Rental income	$	526,768	$	—		$	277,393	$	—		$	804,161
Resident fees and services	—		901,559			—		—			901,559
Medical office building and other services revenue	2,275		—			16,607		1,069			19,951
Income from loans and investments	—		—			—		48,967			48,967
Interest and other income	—		—			—		708			708
Total revenues	$	529,043	$	901,559		$	294,000	$	50,744		$	1,775,346
Total revenues	$	529,043	$	901,559		$	294,000	$	50,744		$	1,775,346
Less:
Interest and other income	—		—			—		708			708
Property-level operating expenses	—		597,614			85,670		—			683,284
Medical office building services costs	—		—			12,682		—			12,682
Segment NOI	529,043		303,945			195,648		50,036			1,078,672
Income (loss) from unconsolidated entities	645		(662		)	119		(344		)	(242		)
Segment profit	$	529,688	$	303,283		$	195,767	$	49,692		1,078,430
Interest and other income											708
Interest expense											(214,181		)
Depreciation and amortization											(496,636		)
General, administrative and professional fees											(68,292		)
Gain on extinguishment of debt, net											434
Merger-related expenses and deal costs											(49,757		)
Other											(10,387		)
Income tax benefit											17,039
Discontinued operations											(356		)
Gain on real estate dispositions											14,155
Net income											$	271,157

For the six months ended June 30, 2014:



	Triple-Net Leased Properties		Senior Living Operations		MOB Operations		All Other			Total
	(In thousands)
Revenues:
Rental income	$	480,572	$	—	$	230,113	$	—		$	710,685
Resident fees and services	—		745,534		—		—			745,534
Medical office building and other services revenue	2,293		—		7,374		1,000			10,667
Income from loans and investments	—		—		—		25,392			25,392
Interest and other income	—		—		—		446			446
Total revenues	$	482,865	$	745,534	$	237,487	$	26,838		$	1,492,724
Total revenues	$	482,865	$	745,534	$	237,487	$	26,838		$	1,492,724
Less:
Interest and other income	—		—		—		446			446
Property-level operating expenses	—		497,719		78,680		—			576,399
Medical office building services costs	—		—		4,997		—			4,997
Segment NOI	482,865		247,815		153,810		26,392			910,882
Income (loss) from unconsolidated entities	586		16		260		(266		)	596
Segment profit	$	483,451	$	247,831	$	154,070	$	26,126		911,478
Interest and other income										446
Interest expense										(179,342		)
Depreciation and amortization										(384,412		)
General, administrative and professional fees										(64,172		)
Loss on extinguishment of debt, net										(2,665		)
Merger-related expenses and deal costs										(20,359		)
Other										(10,092		)
Income tax expense										(6,707		)
Discontinued operations										2,776
Gain on real estate dispositions										12,889
Net income										$	259,840

Assets by reportable business segment are as follows:



	As of June 30, 2015				As of December 31, 2014
	(Dollars in thousands)
Assets:
Triple-net leased properties	$	9,638,035	39.7	%	$	9,176,159	43.2	%
Senior living operations	8,267,934		34.0		7,421,924		35.0
MOB operations	5,233,638		21.6		3,526,217		16.6
All other assets	1,135,555		4.7		1,101,871		5.2
Total assets	$	24,275,162	100.0	%	$	21,226,171	100.0	%

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



	For the Three Months Ended June 30,				For the Six Months Ended June 30,
	2015		2014		2015		2014
	(In thousands)
Capital expenditures:
Triple-net leased properties	$	102,971	$	57,380	$	559,989	$	249,432
Senior living operations	29,374		62,317		311,806		79,180
MOB operations	100,447		9,830		488,174		22,863
Total capital expenditures	$	232,792	$	129,527	$	1,359,969	$	351,475

Our portfolio of properties and mortgage loan and other investments are located in the United States, Canada and the United Kingdom. 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 June 30,				For the Six Months Ended June 30, 2015
	2015		2014		2015		2014
	(In thousands)
Revenues:
United States	$	840,830	$	724,725	$	1,675,287	$	1,444,833
Canada	44,736		21,821		88,786		43,038
United Kingdom	5,756		4,708		11,273		4,853
Total revenues	$	891,322	$	751,254	$	1,775,346	$	1,492,724



	As of June 30, 2015		As of December 31, 2014
	(In thousands)
Net real estate property:
United States	$	19,858,871	$	17,547,255
Canada	1,163,102		1,269,710
United Kingdom	343,123		168,594
Total net real estate property	$	21,365,096	$	18,985,559