Segment Reporting

9 Months Ended

Sep. 30, 2020

Segment Reporting [Abstract]

Segment Reporting

Segment Reporting

We invest in seniors housing and health care real estate. We evaluate our business and make resource allocations on our three operating segments: Seniors Housing Operating, Triple-net and Outpatient Medical. Our Seniors Housing Operating properties include seniors apartments, assisted living, independent living/continuing care retirement communities, independent supportive living communities (Canada), care homes with and without nursing (U.K.) and combinations thereof that are owned and/or operated through RIDEA structures (see Note 19). Our Triple-net properties include the property types described above as well as long-term/post-acute care facilities. Under the 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 Outpatient Medical properties are typically leased to multiple tenants and generally require a certain level of property management by us.

We evaluate performance based upon consolidated NOI of each segment. We define NOI as total revenues, including tenant reimbursements, less property operating expenses. We believe NOI provides investors relevant and useful information as 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 certain 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 NOI.

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, 2019). 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. All intersegment transactions are eliminated.

Summary information for the reportable segments (which excludes unconsolidated entities) is as follows (in thousands): 

Three Months Ended September 30, 2020:	Seniors Housing Operating		Triple-net		Outpatient Medical		Non-segment / Corporate		Total
Resident fees and services	$	740,956	$	—	$	—	$	—	$	740,956
Rental income	—		103,938		171,108		—		275,046
Interest income	113		15,877		760		—		16,750
Other income	996		1,113		836		1,177		4,122
Total revenues	742,065		120,928		172,704		1,177		1,036,874
Property operating expenses	567,704		12,567		52,728		1,718		634,717
Consolidated net operating income	174,361		108,361		119,976		(541)		402,157
Depreciation and amortization	133,224		58,157		64,151		—		255,532
Interest expense	12,728		2,070		4,287		105,766		124,851
General and administrative expenses	—		—		—		31,003		31,003
Loss (gain) on derivatives and financial instruments, net	—		1,395		—		—		1,395
Loss (gain) on extinguishment of debt, net	—		—		—		33,004		33,004
Provision for loan losses	86		372		2,399		—		2,857
Impairment of assets	12,778		10,535		—		—		23,313
Other expenses	6,488		2,805		781		1,470		11,544
Income (loss) from continuing operations before income taxes and other items	9,057		33,027		48,358		(171,784)		(81,342)
Income tax (expense) benefit	—		—		—		(2,003)		(2,003)
Income (loss) from unconsolidated entities	(7,678)		(423)		2,120		—		(5,981)
Gain (loss) on real estate dispositions, net	313,319		(619)		171,604		—		484,304
Income (loss) from continuing operations	314,698		31,985		222,082		(173,787)		394,978
Net income (loss)	$	314,698	$	31,985	$	222,082	$	(173,787)	$	394,978
Total assets	$	15,063,405	$	9,075,910	$	6,892,502	$	1,509,780	$	32,541,597

Three Months Ended September 30, 2019:	Seniors Housing Operating		Triple-net		Outpatient Medical		Non-segment / Corporate		Total
Resident fees and services	$	834,121	$	—	$	—	$	—	$	834,121
Rental income	—		227,499		184,648		—		412,147
Interest income	—		15,279		358		—		15,637
Other income	1,375		1,829		183		841		4,228
Total revenues	835,496		244,607		185,189		841		1,266,133
Property operating expenses	581,341		13,922		60,325		—		655,588
Consolidated net operating income	254,155		230,685		124,864		841		610,545
Depreciation and amortization	148,126		57,147		67,172		—		272,445
Interest expense	16,356		3,076		3,363		114,548		137,343
General and administrative expenses	—		—		—		31,019		31,019
Loss (gain) on derivatives and financial instruments, net	—		1,244		—		—		1,244
Loss (gain) on extinguishment of debt, net	1,450		—		—		64,374		65,824
Impairment of assets	2,599		12,314		3,183		—		18,096
Other expenses	4,274		(2,496)		524		3,884		6,186
Income (loss) from continuing operations before income taxes and other items	81,350		159,400		50,622		(212,984)		78,388
Income tax (expense) benefit	—		—		—		(3,968)		(3,968)
Income (loss) from unconsolidated entities	(3,859)		5,276		1,845		—		3,262
Gain (loss) on real estate dispositions, net	519,203		51,529		(482)		—		570,250
Income (loss) from continuing operations	596,694		216,205		51,985		(216,952)		647,932
Net income (loss)	$	596,694	$	216,205	$	51,985	$	(216,952)	$	647,932

Nine Months Ended September 30, 2020	Seniors Housing Operating		Triple-net		Outpatient Medical		Non-segment / Corporate		Total
Resident fees and services	$	2,360,488	$	—	$	—	$	—	$	2,360,488
Rental income	—		512,815		548,496		—		1,061,311
Interest income	305		46,068		1,687		—		48,060
Other income	6,050		3,393		2,681		1,968		14,092
Total revenues	2,366,843		562,276		552,864		1,968		3,483,951
Property operating expenses	1,771,088		39,432		165,024		1,718		1,977,262
Consolidated net operating income	595,755		522,844		387,840		250		1,506,689
Depreciation and amortization	419,161		173,989		202,554		—		795,704
Interest expense	43,191		7,668		13,421		328,935		393,215
General and administrative expenses	—		—		—		100,546		100,546
Loss (gain) on derivatives and financial instruments, net	—		10,480		—		—		10,480
Loss (gain) on extinguishment of debt, net	(492)		—		741		33,004		33,253
Provision for loan losses	86		8,895		2,370		—		11,351
Impairment of assets	91,424		34,867		—		—		126,291
Other expenses	13,463		6,818		8,244		8,722		37,247
Income (loss) from continuing operations before income taxes and other items	28,922		280,127		160,510		(470,957)		(1,398)
Income tax (expense) benefit	—		—		—		(9,678)		(9,678)
Income (loss) from unconsolidated entities	(25,489)		11,776		5,372		—		(8,341)
Gain (loss) on real estate dispositions, net	327,635		51,166		524,190		—		902,991
Income (loss) from continuing operations	331,068		343,069		690,072		(480,635)		883,574
Net income (loss)	$	331,068	$	343,069	$	690,072	$	(480,635)	$	883,574

Nine Months Ended September 30, 2019	Seniors Housing Operating			Triple-net			Outpatient Medical			Non-segment / Corporate		Total
Resident fees and services	$	2,616,491		$	—		$	—		$	—	$	2,616,491
Rental income	—			681,893			496,924			—		1,178,817
Interest income	—			47,343			769			—		48,112
Other income	6,920			4,370			322			3,452		15,064
Total revenues	2,623,411			733,606			498,015			3,452		3,858,484
Property operating expenses	1,826,344			41,700			159,478			—		2,027,522
Consolidated net operating income	797,067			691,906			338,537			3,452		1,830,962
Depreciation and amortization	416,252			174,551			173,626			—		764,429
Interest expense	52,179			9,741			10,097			351,894		423,911
General and administrative expenses	—			—			—			100,042		100,042
Loss (gain) on derivatives and financial instruments, net	—			670			—			—		670
Loss (gain) on extinguishment of debt, net	1,450			—			—			80,093		81,543
Provision for loan losses	—		18.69	18,690		—	—		18.69	—		18,690
Impairment of assets	2,599			11,374			14,062			—		28,035
Other expenses	19,077			6,093			1,274			10,126		36,570
Income (loss) from continuing operations before income taxes and other items	305,510			470,787			139,478			(538,703)		377,072
Income tax (expense) benefit	—			—			—			(7,789)		(7,789)
Income (loss) from unconsolidated entities	(37,892)			17,512			5,394			—		(14,986)
Gain (loss) on real estate dispositions, net	518,493			217,973			(489)			—		735,977
Income (loss) from continuing operations	786,111			706,272			144,383			(546,492)		1,090,274
Net income (loss)	$	786,111		$	706,272		$	144,383		$	(546,492)	$	1,090,274

Our portfolio of properties and other investments are located in the United States, the United Kingdom and Canada. Revenues and assets are attributed to the country in which the property is physically located. The following is a summary of geographic information for the periods presented (dollars in thousands): 

	Three Months Ended								Nine Months Ended
	September 30, 2020				September 30, 2019				September 30, 2020				September 30, 2019
Revenues:	Amount(1)		%		Amount		%		Amount(1)		%		Amount		%
United States	$	819,057	79.0	%	$	1,039,016	82.1	%	$	2,820,609	81.0	%	$	3,175,059	82.3	%
United Kingdom	110,281		10.6	%	110,303		8.7	%	337,601		9.7	%	335,368		8.7	%
Canada	107,536		10.4	%	116,814		9.2	%	325,741		9.3	%	348,057		9.0	%
Total	$	1,036,874	100.0	%	$	1,266,133	100.0	%	$	3,483,951	100.0	%	$	3,858,484	100.0	%
	As of
	September 30, 2020				December 31, 2019
Assets:	Amount		%		Amount		%
United States	$	26,988,613	83.0	%	$	27,513,911	82.4	%
United Kingdom	3,200,439		9.8	%	3,405,388		10.2	%
Canada	2,352,545		7.2	%	2,461,452		7.4	%
Total	$	32,541,597	100.0	%	$	33,380,751	100.0	%

(1) The United States, United Kingdom and Canada represent 76%, 11% and 13%, respectively, of our resident fees and services revenue stream for the three and nine months ended September 30, 2020.