Segment Reporting

3 Months Ended

Jun. 30, 2012

Segment Reporting [Abstract]

Segment Reporting

17. Segment Reporting

We invest in seniors housing and health care real estate. We evaluate our business and make resource allocations within our three business segments: seniors housing triple-net, seniors housing operating and medical facilities. Our seniors housing triple-net properties include skilled nursing/post-acute facilities, assisted living facilities, independent living/continuing care retirement communities and combinations thereof. Under the seniors housing triple-net segment, we invest in seniors housing and health care real estate through acquisition and financing of primarily single tenant properties. Properties acquired are primarily leased under triple-net leases and we are not involved in the management of the property. Our seniors housing operating properties include assisted living facilities and independent living/continuing care retirement communities that are owned and operated through RIDEA (see Note 18) partnership structures. Our primary medical facility properties include medical office buildings, hospitals and life science buildings. Our medical office buildings are typically leased to multiple tenants and generally require a certain level of property management. Our hospital investments are structured similar to our seniors housing triple-net investments. Our life science investments represent investments in an unconsolidated entity (see Note 7 for additional information). The accounting policies of the segments are the same as those described in the summary of significant accounting policies (see Note 2 to the financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2011, as updated by our Current Report on Form 8-K filed on May 10, 2012.) The results of operations for all acquisitions described in Note 3 are included in our consolidated results of operations from the acquisition dates and are components of the appropriate segments. There are no intersegment sales or transfers. We evaluate performance based uponnet operating income from continuing operations (“NOI”) of each segment. We define NOI as total revenues, including tenant reimbursements, less property level operating expenses, which exclude depreciation and amortization, general and administrative expenses, transaction costs, impairments and interest expense. We believe NOI provides investors relevant and useful information because it measures the operating performance of our properties at the property level on an unleveraged basis. We use NOI to make decisions about resource allocations and to assess the property level performance of our properties.Non-segment revenue consists mainly of interest income on non-real estate investments and other income. Non-segment assets consist of corporate assets including cash, deferred loan expenses and corporate offices and equipment among others. Non-property specific revenues and expenses are not allocated to individual segments in determining net operating income.

Summary information for the reportable segments for the six months ended June 30, 2012 and 2011 is as follows (in thousands):

Three Months Ended June 30, 2012:		Seniors Housing Triple-net		Seniors Housing Operating		Medical Facilities		Non-segment / Corporate		Total
Rental income	$	176,777	$	-	$	101,290	$	-	$	278,067
Resident fees and services		-		165,654		-		-		165,654
Interest income		5,984		-		1,895		-		7,879
Other income		761		-		478		243		1,482
Total revenues		183,522		165,654		103,663		243		453,082
Property operating expenses		-		(111,340)		(24,963)		-		(136,303)
Net operating income from continuing operations		183,522		54,314		78,700		243		316,779
Reconciling items:
Interest expense		(1,599)		(16,227)		(8,666)		(68,476)		(94,968)
(Loss) gain on derivatives		(96)		2,772		-		-		2,676
Depreciation and amortization		(54,578)		(37,745)		(39,594)		-		(131,917)
General and administrative		-		-		-		(25,870)		(25,870)
Transaction costs		(23,683)		(2,821)		(2,187)		-		(28,691)
(Loss) gain on extinguishment of debt		(2,238)		1,179		483		-		(576)
Income (loss) from continuing operations before income taxes and income from unconsolidated entities	$	101,328	$	1,472	$	28,736	$	(94,103)	$	37,433
Total assets	$	8,159,852	$	3,485,380	$	4,397,011	$	305,183	$	16,347,426

Three Months Ended June 30, 2011:		Seniors Housing Triple-net		Seniors Housing Operating		Medical Facilities		Non-segment / Corporate		Total
Rental income	$	155,413	$	-	$	72,833	$	-	$	228,246
Resident fees and services		-		123,149		-		-		123,149
Interest income		11,036		-		1,830		-		12,866
Other income		4,497		-		466		378		5,341
Total revenues		170,946		123,149		75,129		378		369,602
Property operating expenses		-		(84,334)		(15,474)		-		(99,808)
Net operating income from continuing operations		170,946		38,815		59,655		378		269,794
Reconciling items:
Interest expense		(829)		(12,974)		(7,200)		(60,481)		(81,484)
Depreciation and amortization		(44,402)		(38,176)		(24,677)		-		(107,255)
General and administrative		-		-		-		(19,562)		(19,562)
Transaction costs		(12,692)		(488)		(558)		-		(13,738)
Provision for loan losses		-		-		(168)		-		(168)
Income (loss) from continuing operations before income taxes and income from unconsolidated entities	$	113,023	$	(12,823)	$	27,052	$	(79,665)	$	47,587

Six Months Ended June 30, 2012:		Seniors Housing Triple-net		Seniors Housing Operating		Medical Facilities		Non-segment / Corporate		Total
Rental income	$	345,456	$	-	$	195,752	$	-	$	541,208
Resident fees and services		-		323,828		-		-		323,828
Interest income		11,861		-		4,159		-		16,020
Other income		1,606		-		1,082		478		3,166
Total revenues		358,923		323,828		200,993		478		884,222
Property operating expenses		-		(218,583)		(46,989)		-		(265,572)
Net operating income from continuing operations		358,923		105,245		154,004		478		618,650
Reconciling items:
Interest expense		(3,380)		(32,062)		(18,904)		(132,595)		(186,941)
(Loss) gain on derivatives		(96)		2,217		-		-		2,121
Depreciation and amortization		(105,752)		(77,518)		(73,551)		-		(256,821)
General and administrative		-		-		-		(53,621)		(53,621)
Transaction costs		(25,205)		(4,399)		(4,666)		-		(34,270)
(Loss) gain on extinguishment of debt		(2,238)		1,179		483		-		(576)
Income (loss) from continuing operations before income taxes and income from unconsolidated entities	$	222,252	$	(5,338)	$	57,366	$	(185,738)	$	88,542

Six Months Ended June 30, 2011:		Seniors Housing Triple-net		Seniors Housing Operating		Medical Facilities		Non-segment / Corporate		Total
Rental income	$	247,021	$	-	$	136,988	$	-	$	384,009
Resident fees and services		-		194,435		-		-		194,435
Interest income		20,415		-		4,160		-		24,575
Other income		5,004		-		2,251		910		8,165
Total revenues		272,440		194,435		143,399		910		611,184
Property operating expenses		-		(133,606)		(29,765)		-		(163,371)
Net operating income from continuing operations		272,440		60,829		113,634		910		447,813
Reconciling items:
Interest expense		(199)		(19,501)		(13,981)		(103,932)		(137,613)
Depreciation and amortization		(71,019)		(58,307)		(47,613)		-		(176,939)
General and administrative		-		-		-		(37,276)		(37,276)
Transaction costs		(16,699)		(32,557)		(547)		-		(49,803)
Provision for loan losses		-		-		(416)		-		(416)
Income (loss) from continuing operations before income taxes and income from unconsolidated entities	$	184,523	$	(49,536)	$	51,077	$	(140,298)	$	45,766

Our portfolio of properties and other investments are located in the United States and Canada. Revenues and assets are attributed to the country in which the property is physically located.For the three months endedJune 30, 2012, $2,055,000, or 0.5% of our revenues, and $296,573,000, or 1.8% of our assets, were located in Canada.