Segment Reporting

9 Months Ended

Sep. 30, 2021

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 cash investments recorded in 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, 2020). 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 inter-segment transactions are eliminated.

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

Three Months Ended September 30, 2021:	Seniors Housing Operating		Triple-net		Outpatient Medical		Non-segment / Corporate		Total
Resident fees and services	$	835,617	$	—	$	—	$	—	$	835,617
Rental income	—		200,641		157,343		—		357,984
Interest income	1,135		38,257		472		—		39,864
Other income	2,767		1,087		1,688		790		6,332
Total revenues	839,519		239,985		159,503		790		1,239,797
Property operating expenses	666,610		11,664		48,072		3,054		729,400
Consolidated net operating income	172,909		228,321		111,431		(2,264)		510,397
Depreciation and amortization	157,176		54,226		56,352		—		267,754
Interest expense	9,360		1,548		4,811		106,803		122,522
General and administrative expenses	—		—		—		32,256		32,256
Loss (gain) on derivatives and financial instruments, net	—		(8,078)		—		—		(8,078)
Loss (gain) on extinguishment of debt, net	—		—		(5)		—		(5)
Provision for loan losses, net	152		(323)		(100)		—		(271)
Impairment of assets	—		1,490		—		—		1,490
Other expenses	5,449		(4,248)		640		1,734		3,575
Income (loss) from continuing operations before income taxes and other items	772		183,706		49,733		(143,057)		91,154
Income tax (expense) benefit	—		—		—		(4,940)		(4,940)
Income (loss) from unconsolidated entities	(15,810)		5,038		(5,060)		—		(15,832)
Gain (loss) on real estate dispositions, net	(615)		81,712		38,857		—		119,954
Income (loss) from continuing operations	(15,653)		270,456		83,530		(147,997)		190,336
Net income (loss)	$	(15,653)	$	270,456	$	83,530	$	(147,997)	$	190,336
Total assets	$	17,741,955	$	9,317,352	$	6,247,215	$	173,503	$	33,480,025

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, net	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

Nine Months Ended September 30, 2021	Seniors Housing Operating		Triple-net		Outpatient Medical		Non-segment / Corporate		Total
Resident fees and services	$	2,299,972	$	—	$	—	$	—	$	2,299,972
Rental income	—		557,829		457,721		—		1,015,550
Interest income	3,110		86,040		8,741		—		97,891
Other income	5,388		3,539		8,336		2,175		19,438
Total revenues	2,308,470		647,408		474,798		2,175		3,432,851
Property operating expenses	1,804,939		37,132		140,430		6,882		1,989,383
Consolidated net operating income	503,531		610,276		334,368		(4,707)		1,443,468
Depreciation and amortization	420,797		165,299		166,969		—		753,065
Interest expense	31,331		5,134		12,733		318,807		368,005
General and administrative expenses	—		—		—		93,618		93,618
Loss (gain) on derivatives and financial instruments, net	—		(6,503)		—		—		(6,503)
Loss (gain) on extinguishment of debt, net	(1,537)		—		(5)		52,506		50,964
Provision for loan losses, net	222		10,549		(3,462)		—		7,309
Impairment of assets	22,317		24,222		2,211		—		48,750
Other expenses	12,617		4,845		2,450		6,344		26,256
Income (loss) from continuing operations before income taxes and other items	17,784		406,730		153,472		(475,982)		102,004
Income tax (expense) benefit	—		—		—		(6,662)		(6,662)
Income (loss) from unconsolidated entities	(23,514)		14,822		(2,067)		—		(10,759)
Gain (loss) on real estate dispositions, net	4,552		126,463		92,687		—		223,702
Income (loss) from continuing operations	(1,178)		548,015		244,092		(482,644)		308,285
Net income (loss)	$	(1,178)	$	548,015	$	244,092	$	(482,644)	$	308,285

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, net	86		18.69	8,895		—	2,370		18.69	—		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

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, 2021				September 30, 2020				September 30, 2021				September 30, 2020
Revenues:	Amount(1)		%		Amount		%		Amount(1)		%		Amount		%
United States	$	990,034	79.9	%	$	819,057	79.0	%	$	2,709,354	78.9	%	$	2,820,609	81.0	%
United Kingdom	146,308		11.8	%	110,281		10.6	%	405,938		11.8	%	337,601		9.7	%
Canada	103,455		8.3	%	107,536		10.4	%	317,559		9.3	%	325,741		9.3	%
Total	$	1,239,797	100.0	%	$	1,036,874	100.0	%	$	3,432,851	100.0	%	$	3,483,951	100.0	%
	As of
	September 30, 2021				December 31, 2020
Assets:	Amount		%		Amount		%
United States	$	27,132,959	81.0	%	$	26,658,659	82.1	%
United Kingdom	3,978,661		11.9	%	3,352,549		10.3	%
Canada	2,368,405		7.1	%	2,472,434		7.6	%
Total	$	33,480,025	100.0	%	$	32,483,642	100.0	%

(1) The United States, United Kingdom and Canada represent 74%, 13% and 13% of our resident fees and services revenue for the three and nine month periods ended September 30, 2021, respectively.