Investments in Unconsolidated Entities

12 Months Ended

Dec. 31, 2017

Investments in Unconsolidated Entities [Abstract]

7. Investments in Unconsolidated Entities

We participate in a number of joint ventures, which generally invest in seniors housing and health care real estate. The results of operations for these properties have been included in our consolidated results of operations from the date of acquisition by the joint ventures and are reflected in our consolidated statements of comprehensive income as income or loss from unconsolidated entities. The following is a summary of our investments in unconsolidated entities (dollars in thousands):


	Percentage Ownership⁽¹⁾	December 31, 2017		December 31, 2016
Triple-net	10% to 49%	$	22,856	$	27,005
Seniors housing operating	10% to 50%		352,430		407,172
Outpatient medical	43%		70,299		22,961
Total		$	445,585	$	457,138
(1) Excludes ownership of in substance real estate.

During the year ended December 31, 2017, we increased our ownership in Sunrise Senior Living Management, Inc. (“Sunrise”) from 24% to 34%. Sunrise provides comprehensive property management and accounting services with respect to certain of our seniors housing operating properties that Sunrise operates, for which we pay annual management fees pursuant to long-term management agreements. Our management agreements with Sunrise have initial terms expiring through December 2032 plus, if applicable, optional renewal periods ranging from an additional 5 to 15 years depending on the property. The management fees payable to Sunrise under the management agreements include a fee based on a percentage of revenues generated by the applicable properties plus, if applicable, positive or negative adjustments based on specified performance targets. For the years ended December 31, 2017, 2016 and 2015, we recognized fees to Sunrise of $37,573,000, $37,751,000, and $36,403,000, respectively, the majority of which are reflected within property operating expenses in our consolidated statements of comprehensive income.

At December 31, 2017, the aggregate unamortized basis difference of our joint venture investments of $110,063,000 is primarily attributable to the difference between the amount for which we purchased our interest in the entity, including transaction costs, and the historical carrying value of the net assets of the entity. This difference is being amortized over the remaining useful life of the related assets and included in the reported amount of income from unconsolidated entities.

Summary combined financial information for our investments in unconsolidated entities held for the periods presented is as follows (in thousands):

		December 31, 2017		December 31, 2016
Net real estate investments	$	2,955,527	$	2,595,107
Other assets		2,582,943		2,298,503
Total assets		5,538,470		4,893,610
Total liabilities		4,037,145		3,588,007
Total equity	$	1,501,325	$	1,305,603

	Year Ended December 31,
		2017		2016		2015
Total revenues	$	2,074,139	$	1,867,464	$	2,947,993
Net income (loss)		(264,473)		(86,167)		(40,116)