SEGMENT INFORMATION

As of June 30, 2016, 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 invest in 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 throughout the United States. 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 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, 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, 2016:



	Triple-Net Leased Properties		Senior Living Operations		MOB Operations		All Other		Total
	(In thousands)
Revenues:
Rental income	$	210,119	$	—	$	144,087	$	—	$	354,206
Resident fees and services	—		464,437		—		—		464,437
Medical office building and other services revenue	1,231		—		3,369		904		5,504
Income from loans and investments	—		—		—		24,146		24,146
Interest and other income	—		—		—		111		111
Total revenues	$	211,350	$	464,437	$	147,456	$	25,161	$	848,404
Total revenues	$	211,350	$	464,437	$	147,456	$	25,161	$	848,404
Less:
Interest and other income	—		—		—		111		111
Property-level operating expenses	—		307,989		43,966		—		351,955
Medical office building services costs	—		—		1,852		—		1,852
Segment NOI	211,350		156,448		101,638		25,050		494,486
Income from unconsolidated entities	825		336		173		84		1,418
Segment profit	$	212,175	$	156,784	$	101,811	$	25,134	495,904
Interest and other income									111
Interest expense									(103,665		)
Depreciation and amortization									(221,961		)
General, administrative and professional fees									(32,094		)
Loss on extinguishment of debt, net									(2,468		)
Merger-related expenses and deal costs									(7,224		)
Other									(2,303		)
Income tax benefit									11,549
Discontinued operations									(148		)
Gain on real estate dispositions									5,739
Net income									$	143,440

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	$	182,006	$	—		$	140,472	$	—		$	322,478
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	—		—			—		25,215			25,215
Interest and other income	—		—			—		174			174
Total revenues	$	183,145	$	454,645		$	148,221	$	25,909		$	811,920
Total revenues	$	183,145	$	454,645		$	148,221	$	25,909		$	811,920
Less:
Interest and other income	—		—			—		174			174
Property-level operating expenses	—		299,252			43,410		—			342,662
Medical office building services costs	—		—			5,764		—			5,764
Segment NOI	183,145		155,393			99,047		25,735			463,320
Income (loss) from unconsolidated entities	221		(240		)	143		(115		)	9
Segment profit	$	183,366	$	155,153		$	99,190	$	25,620		463,329
Interest and other income											174
Interest expense											(83,959		)
Depreciation and amortization											(214,711		)
General, administrative and professional fees											(33,959		)
Gain on extinguishment of debt, net											455
Merger-related expenses and deal costs											(12,265		)
Other											(4,279		)
Income tax benefit											9,789
Discontinued operations											18,243
Gain on real estate dispositions											7,469
Net income											$	150,286

For the six months ended June 30, 2016:



	Triple-Net Leased Properties		Senior Living Operations		MOB Operations		All Other		Total
	(In thousands)
Revenues:
Rental income	$	424,606	$	—	$	288,223	$	—	$	712,829
Resident fees and services	—		928,413		—		—		928,413
Medical office building and other services revenue	2,430		—		8,345		1,914		12,689
Income from loans and investments	—		—		—		46,532		46,532
Interest and other income	—		—		—		230		230
Total revenues	$	427,036	$	928,413	$	296,568	$	48,676	$	1,700,693
Total revenues	$	427,036	$	928,413	$	296,568	$	48,676	$	1,700,693
Less:
Interest and other income	—		—		—		230		230
Property-level operating expenses	—		620,530		87,647		—		708,177
Medical office building services costs	—		—		5,303		—		5,303
Segment NOI	427,036		307,883		203,618		48,446		986,983
Income from unconsolidated entities	154		673		47		346		1,220
Segment profit	$	427,190	$	308,556	$	203,665	$	48,792	988,203
Interest and other income									230
Interest expense									(206,938		)
Depreciation and amortization									(458,348		)
General, administrative and professional fees									(63,820		)
Loss on extinguishment of debt, net									(2,782		)
Merger-related expenses and deal costs									(8,856		)
Other									(6,471		)
Income tax benefit									19,970
Discontinued operations									(637		)
Gain on real estate dispositions									31,923
Net income									$	292,474

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	$	370,563	$	—		$	277,532	$	—		$	648,095
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	—		—			—		47,268			47,268
Interest and other income	—		—			—		645			645
Total revenues	$	372,838	$	901,559		$	294,139	$	48,982		$	1,617,518
Total revenues	$	372,838	$	901,559		$	294,139	$	48,982		$	1,617,518
Less:
Interest and other income	—		—			—		645			645
Property-level operating expenses	—		597,614			85,847		—			683,461
Medical office building services costs	—		—			12,682		—			12,682
Segment NOI	372,838		303,945			195,610		48,337			920,730
Income (loss) from unconsolidated entities	645		(662		)	119		(344		)	(242		)
Segment profit	$	373,483	$	303,283		$	195,729	$	47,993		920,488
Interest and other income											645
Interest expense											(166,287		)
Depreciation and amortization											(430,930		)
General, administrative and professional fees											(68,285		)
Gain on extinguishment of debt, net											434
Merger-related expenses and deal costs											(42,878		)
Other											(9,153		)
Income tax benefit											17,039
Discontinued operations											35,817
Gain on real estate dispositions											14,155
Net income											$	271,045

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,
	2016		2015		2016		2015
	(In thousands)
Capital expenditures:
Triple-net leased properties	$	15,949	$	102,971	$	56,650	$	559,989
Senior living operations	24,808		29,374		43,802		311,806
MOB operations	38,192		100,447		50,605		488,174
Total capital expenditures	$	78,949	$	232,792	$	151,057	$	1,359,969

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,
	2016		2015		2016		2015
	(In thousands)
Revenues:
United States	$	797,394	$	761,428	$	1,601,595	$	1,517,459
Canada	44,045		44,736		85,174		88,786
United Kingdom	6,965		5,756		13,924		11,273
Total revenues	$	848,404	$	811,920	$	1,700,693	$	1,617,518



	As of June 30, 2016		As of December 31, 2015
	(In thousands)
Net real estate property:
United States	$	17,848,183	$	18,271,829
Canada	1,088,065		1,039,561
United Kingdom	277,502		313,830
Total net real estate property	$	19,213,750	$	19,625,220