Segment Reporting

3 Months Ended

Mar. 31, 2023

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, 2022). 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 March 31, 2023:	Seniors Housing Operating		Triple-net		Outpatient Medical		Non-segment / Corporate		Total
Resident fees and services	$	1,131,685	$	—	$	—	$	—	$	1,131,685
Rental income	—		202,419		181,640		—		384,059
Interest income	2,551		33,763		91		—		36,405
Other income	2,445		1,883		3,100		1,152		8,580
Total revenues	1,136,681		238,065		184,831		1,152		1,560,729
Property operating expenses	883,784		11,723		58,365		3,881		957,753
Consolidated net operating income (loss)	252,897		226,342		126,466		(2,729)		602,976
Depreciation and amortization	220,407		54,528		64,177		—		339,112
Interest expense	11,487		(15)		4,104		128,827		144,403
General and administrative expenses	—		—		—		44,371		44,371
Loss (gain) on derivatives and financial instruments, net	—		930		—		—		930
Loss (gain) on extinguishment of debt, net	—		—		5		—		5
Provision for loan losses, net	(73)		850		—		—		777
Impairment of assets	12,629		—		—		—		12,629
Other expenses	17,579		2,467		547		2,152		22,745
Income (loss) from continuing operations before income taxes and other items	(9,132)		167,582		57,633		(178,079)		38,004
Income tax (expense) benefit	—		—		—		(3,045)		(3,045)
Income (loss) from unconsolidated entities	(15,589)		8,432		86		—		(7,071)
Gain (loss) on real estate dispositions, net	833		520		(606)		—		747
Income (loss) from continuing operations	(23,888)		176,534		57,113		(181,124)		28,635
Net income (loss)	$	(23,888)	$	176,534	$	57,113	$	(181,124)	$	28,635
Total assets	$	22,201,219	$	8,776,956	$	7,007,092	$	508,622	$	38,493,889

Three Months Ended March 31, 2022:	Seniors Housing Operating		Triple-net		Outpatient Medical		Non-segment / Corporate		Total
Resident fees and services	$	994,335	$	—	$	—	$	—	$	994,335
Rental income	—		196,001		160,389		—		356,390
Interest income	1,417		37,506		71		—		38,994
Other income	860		1,656		2,863		606		5,985
Total revenues	996,612		235,163		163,323		606		1,395,704
Property operating expenses	789,928		11,211		49,915		2,615		853,669
Consolidated net operating income (loss)	206,684		223,952		113,408		(2,009)		542,035
Depreciation and amortization	192,793		53,504		57,791		—		304,088
Interest expense	7,650		314		4,567		109,165		121,696
General and administrative expenses	—		—		—		37,706		37,706
Loss (gain) on derivatives and financial instruments, net	—		2,578		—		—		2,578
Loss (gain) on extinguishment of debt, net	(15)		—		3		—		(12)
Provision for loan losses, net	267		(1,065)		(6)		—		(804)
Other expenses	8,191		11,044		789		6,045		26,069
Income (loss) from continuing operations before income taxes and other items	(2,202)		157,577		50,264		(154,925)		50,714
Income tax (expense) benefit	—		—		—		(5,013)		(5,013)
Income (loss) from unconsolidated entities	(17,782)		15,543		(645)		—		(2,884)
Gain (loss) on real estate dispositions, net	2,701		20,449		(216)		—		22,934
Income (loss) from continuing operations	(17,283)		193,569		49,403		(159,938)		65,751
Net income (loss)	$	(17,283)	$	193,569	$	49,403	$	(159,938)	$	65,751

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
	March 31, 2023				March 31, 2022
Revenues:	Amount		%		Amount		%
United States	$	1,296,022	83.0	%	$	1,139,016	81.6	%
United Kingdom	147,876		9.5	%	144,491		10.4	%
Canada	116,831		7.5	%	112,197		8.0	%
Total	$	1,560,729	100.0	%	$	1,395,704	100.0	%
	Three Months Ended
	March 31, 2023				March 31, 2022
Resident Fees and Services:	Amount		%		Amount		%
United States	$	908,944	80.4	%	$	784,097	78.8	%
United Kingdom	109,012		9.6	%	101,090		10.2	%
Canada	113,729		10.0	%	109,148		11.0	%
Total	$	1,131,685	100.0	%	$	994,335	100.0	%
	As of
	March 31, 2023				December 31, 2022
Assets:	Amount		%		Amount		%
United States	$	32,325,218	84.0	%	$	31,740,907	83.8	%
United Kingdom	3,518,034		9.1	%	3,476,793		9.2	%
Canada	2,650,637		6.9	%	2,675,533		7.0	%
Total	$	38,493,889	100.0	%	$	37,893,233	100.0	%