SEGMENT INFORMATION

12 Months Ended

Dec. 31, 2023

Segment Reporting [Abstract]

SEGMENT INFORMATION

NOTE 18 – SEGMENT INFORMATION

As of December 31, 2023, we operated through three reportable business segments: SHOP, outpatient medical and research portfolio and triple-net leased properties. In our SHOP segment, we invest in senior housing communities throughout the United States and Canada and engage operators to operate those communities. In our outpatient medical and research portfolio segment, we primarily acquire, own, develop, lease and manage outpatient medical buildings and research centers throughout the United States. In our triple-net leased properties segment, we invest in and own senior housing communities, skilled nursing facilities (“SNFs”), long-term acute care facilities (“LTACs”), freestanding inpatient rehabilitation facilities (“IRFs”) and other healthcare facilities throughout the United States and the United Kingdom and lease those properties to tenants under triple-net or absolute-net leases that obligate the tenants to pay all property-related expenses, including maintenance, utilities, repairs, taxes, insurance and capital expenditures. Information provided for “non-segment” includes management fees and promote revenues, net of expenses related to our third-party institutional capital management business, income from loans and investments and various corporate-level expenses not directly attributable to any of our three reportable business segments. Non-segment assets consist primarily of corporate assets, including cash, restricted cash, loans receivable and investments and miscellaneous accounts receivable as well as investments in unconsolidated entities including VIM.

Our chief operating decision maker evaluates performance of the combined properties in each reportable business segment and determines how to allocate resources to those segments, in significant part, based on NOI and related measures for each segment. We define NOI as total revenues, less interest and other income, property-level operating expenses and third-party capital management expenses. We consider NOI 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, NOI should be examined in conjunction with net income attributable to common stockholders as presented in our Consolidated Financial Statements and other financial data included elsewhere in this Annual Report. See “Non-GAAP Financial Measures” included elsewhere in this Annual Report for additional disclosure and reconciliations of net income attributable to common stockholders, as computed in accordance with GAAP, to NOI.

Interest expense, depreciation and amortization, general, administrative and professional fees, income tax expense 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 (dollars in thousands):

	For the Year Ended December 31, 2023
	SHOP		Outpatient Medical and Research Portfolio		Triple-Net Leased Properties		Non-Segment		Total
Revenues:
Rental income	$	—	$	867,193	$	619,208	$	—	$	1,486,401
Resident fees and services	2,959,219		—		—		—		2,959,219
Third party capital management revenues	—		2,515		—		15,326		17,841
Income from loans and investments	—		—		—		22,952		22,952
Interest and other income	—		—		—		11,414		11,414
Total revenues	$	2,959,219	$	869,708	$	619,208	$	49,692	$	4,497,827
Total revenues	$	2,959,219	$	869,708	$	619,208	$	49,692	$	4,497,827
Less:
Interest and other income	—		—		—		11,414		11,414
Property-level operating expenses	2,247,812		292,776		14,557		—		2,555,145
Third party capital management expenses	—		—		—		6,101		6,101
NOI	$	711,407	$	576,932	$	604,651	$	32,177	1,925,167
Interest and other income									11,414
Interest expense									(574,112)
Depreciation and amortization									(1,392,461)
General, administrative and professional fees									(148,876)
Gain on extinguishment of debt, net									6,104
Transaction, transition and restructuring costs									(15,215)
Allowance on loans receivable and investments									20,270
Gain on foreclosure of real estate									29,127
Other income									23,001
Income from unconsolidated entities									13,626
Gain on real estate dispositions									62,119
Income tax benefit									9,539
Loss from continuing operations									(30,297)
Net loss									(30,297)
Net income attributable to noncontrolling interests									10,676
Net loss attributable to common stockholders									$	(40,973)

	For the Year Ended December 31, 2022
	SHOP		Outpatient Medical and Research Portfolio		Triple-Net Leased Properties		Non-Segment		Total
Revenues:
Rental income	$	—	$	801,159	$	598,154	$	—	$	1,399,313
Resident fees and services	2,651,886		—		—		—		2,651,886
Third party capital management revenues	—		2,448		—		23,751		26,199
Income from loans and investments	—		—		—		48,160		48,160
Interest and other income	—		—		—		3,635		3,635
Total revenues	$	2,651,886	$	803,607	$	598,154	$	75,546	$	4,129,193
Total revenues	$	2,651,886	$	803,607	$	598,154	$	75,546	$	4,129,193
Less:
Interest and other income	—		—		—		3,635		3,635
Property-level operating expenses	2,004,420		257,003		15,301		—		2,276,724
Third party capital management expenses	—		—		—		6,194		6,194
NOI	$	647,466	$	546,604	$	582,853	$	65,717	1,842,640
Interest and other income									3,635
Interest expense									(467,557)
Depreciation and amortization									(1,197,798)
General, administrative and professional fees									(144,874)
Loss on extinguishment of debt, net									(581)
Transaction, transition and restructuring costs									(30,884)
Allowance on loans receivable and investments									(19,757)
Shareholder relations matters									(20,693)
Other expense									(58,268)
Income from unconsolidated entities									28,500
Gain on real estate dispositions									7,780
Income tax benefit									16,926
Loss from continuing operations									(40,931)
Net loss									(40,931)
Net income attributable to noncontrolling interests									6,516
Net loss attributable to common stockholders									$	(47,447)

	For the Year Ended December 31, 2021
	SHOP		Outpatient Medical and Research Portfolio		Triple-Net Leased Properties		Non-Segment		Total
Revenues:
Rental income	$	—	$	794,297	$	653,823	$	—	$	1,448,120
Resident fees and services	2,270,001		—		—		—		2,270,001
Third party capital management revenues	—		8,384		—		11,712		20,096
Income from loans and investments	—		—		—		74,981		74,981
Interest and other income	—		—		—		14,809		14,809
Total revenues	$	2,270,001	$	802,681	$	653,823	$	101,502	$	3,828,007
Total revenues	$	2,270,001	$	802,681	$	653,823	$	101,502	$	3,828,007
Less:
Interest and other income	—		—		—		14,809		14,809
Property-level operating expenses	1,811,728		257,001		15,335		—		2,084,064
Third party capital management expenses	—		1,798		—		2,635		4,433
NOI	$	458,273	$	543,882	$	638,488	$	84,058	1,724,701
Interest and other income									14,809
Interest expense									(440,089)
Depreciation and amortization									(1,197,403)
General, administrative and professional fees									(129,758)
Loss on extinguishment of debt, net									(59,299)
Transaction, transition and restructuring costs									(47,318)
Allowance on loans receivable and investments									9,082
Other expense									(37,110)
Income from unconsolidated entities									4,983
Gain on real estate dispositions									218,788
Income tax expense									(4,827)
Income from continuing operations									56,559
Net income									56,559
Net income attributable to noncontrolling interests									7,551
Net income attributable to common stockholders									$	49,008

Assets by reportable business segment are as follows (dollars in thousands):

	As of December 31,
Assets:	2023				2022
SHOP	$	12,864,029	52.0	%	$	12,369,218	51.2	%
Outpatient medical and research portfolio	6,943,446		28.1		6,558,416		27.1
Triple-net leased properties	4,120,691		16.7		4,272,303		17.7
Non-segment	797,267		3.2		957,903		4.0
Total assets	$	24,725,433	100.0	%	$	24,157,840	100.0	%

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

	For the Years Ended December 31,
Capital Expenditures:	2023		2022		2021
SHOP	$	409,105	$	423,420	$	1,463,551
Outpatient medical and research portfolio	231,855		472,662		245,546
Triple-net leased properties	8,511		4,614		92,924
Total capital expenditures	$	649,471	$	900,696	$	1,802,021

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 (dollars in thousands):

	For the Years Ended December 31,
Revenues:	2023		2022		2021
United States	$	4,004,173	$	3,652,327	$	3,363,197
Canada	464,772		449,091		434,862
United Kingdom	28,882		27,775		29,948
Total revenues	$	4,497,827	$	4,129,193	$	3,828,007

	As of December 31,
Net Real Estate Property:	2023		2022
United States	$	18,702,960	$	18,168,224
Canada	2,837,858		2,782,350
United Kingdom	208,132		209,876
Total net real estate property	$	21,748,950	$	21,160,450