Segment Reporting

3 Months Ended

Mar. 31, 2020

We report under the following two segments: Office Portfolio and SHOP. We aggregate these two reporting segments based on their similar operating and economic characteristics. Our Office Portfolio segment consists of medical office properties leased to medical providers and other medical related businesses, as well as life science properties leased to biotech laboratories and other similar tenants. Our SHOP segment consists of managed senior living communities that provide short term and long term residential living and in some instances care and other services for residents where we pay fees to the operator to manage the communities for our account. In addition, prior to January 1, 2020, our SHOP segment included triple net leased senior living communities that provided short term and long term residential living and in some instances care and other services for residents and from which we received rents from Five Star. Pursuant to the Restructuring Transaction, effective January 1, 2020, our previously existing master leases and management and pooling agreements with Five Star were terminated and replaced with new management and related agreements, or collectively, the New Management Agreements, for all of our senior living communities operated by Five Star. Prior periods have been recast to reflect these reportable segments for all periods presented.

We also report “non-segment” operations, which consists of triple net leased senior living communities that are leased to operators other than Five Star from which we receive rents and wellness centers, which we do not consider to be sufficiently material to constitute a separate reporting segment, and any other income or expenses that are not attributable to a specific reporting segment.



	For the Three Months Ended March 31, 2020
	Office Portfolio			SHOP			Non-Segment			Consolidated
Revenues:
Rental income	$	98,770		$	—		$	11,728		$	110,498
Residents fees and services	—			331,969			—			331,969
Total revenues	98,770			331,969			11,728			442,467

Expenses:
Property operating expenses	32,706			283,879			—			316,585
Depreciation and amortization	32,163			33,042			3,225			68,430
General and administrative	—			—			8,832			8,832
Acquisition and certain other transaction related costs	—			—			663			663
Impairment of assets	6,218			5,016			—			11,234
Total expenses	71,087			321,937			12,720			405,744

Gain on sale of properties	2,782			—			—			2,782
Losses on equity securities, net	—			—			(9,943		)	(9,943		)
Interest and other income	—			—			138			138
Interest expense	(6,052		)	(564		)	(35,034		)	(41,650		)
Gain on lease termination	—			—			22,896			22,896
Loss on early extinguishment of debt	(246		)	—			—			(246		)
Income (loss) from continuing operations before income tax expense	24,167			9,468			(22,935		)	10,700
Income tax expense	—			—			443			443
Net income (loss)	24,167			9,468			(22,492		)	11,143
Net income attributable to noncontrolling interest	(1,408		)	—			—			(1,408		)
Net income (loss) attributable to common shareholders	$	22,759		$	9,468		$	(22,492	)	$	9,735



	As of March 31, 2020
	Office Portfolio		SHOP		Non-Segment		Consolidated
Total assets	$	3,133,881	$	3,080,002	$	489,840	$	6,703,723



	For the Three Months Ended March 31, 2019
	Office Portfolio			SHOP			Non-Segment			Consolidated
Revenues:
Rental income	$	103,221		$	39,313		$	15,707		$	158,241
Residents fees and services	—			108,045			—			108,045
Total revenues	103,221			147,358			15,707			266,286

Expenses:
Property operating expenses	32,177			85,045			—			117,222
Depreciation and amortization	36,101			30,953			5,176			72,230
General and administrative	—			—			9,816			9,816
Acquisition and certain other transaction related costs	—			—			7,814			7,814
Impairment of assets	—			6,206			—			6,206
Total expenses	68,278			122,204			22,806			213,288

Loss on sale of properties	(122		)	—			—			(122		)
Dividend income	—			—			923			923
Gains on equity securities, net	—			—			22,932			22,932
Interest and other income	—			—			114			114
Interest expense	(6,030		)	(994		)	(38,587		)	(45,611		)
Income (loss) from continuing operations before income tax expense and equity in earnings of an investee	28,791			24,160			(21,717		)	31,234
Income tax expense	—			—			(134		)	(134		)
Equity in earnings of an investee	—			—			404			404
Net income (loss)	28,791			24,160			(21,447		)	31,504
Net income attributable to noncontrolling interest	(1,422		)	—			—			(1,422		)
Net income (loss) attributable to common shareholders	$	27,369		$	24,160		$	(21,447	)	$	30,082



	As of December 31, 2019
	Office Portfolio		SHOP		Non-Segment		Consolidated
Total assets	$	3,165,577	$	3,044,989	$	443,260	$	6,653,826