Segment Reporting

9 Months Ended

Sep. 30, 2012

Segment Reporting

Segment Reporting

Note 9.  Segment Reporting

We have three operating segments, of which two are reportable operating segments.  The two reportable operating segments are: (i) short term and long term residential care communities that offer dining for residents and (ii) properties where medical related activities occur but where residential overnight stays and dining services are not provided, or MOBs.  Properties in the short term and long term residential care communities segment include leased and managed independent living communities, assisted living communities, skilled nursing facilities and rehabilitation hospitals.  We earn rental income revenues from the tenants that lease and operate our leased communities and we earn fees and services revenues from the residents of our Managed Communities.  Five Star began managing our Managed Communities for our account in June 2011.  Properties in the MOB segment include those leased to medical providers, medical related businesses, clinics and biotech laboratory tenants.  We earn rental income revenues from tenants of our MOBs.  The “All Other Operations” category in the following table includes amounts related to corporate business activities and the operating results of certain properties that offer fitness, wellness and spa services to members.

SENIOR HOUSING PROPERTIES TRUST

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

(dollar amounts in thousands, except per share data or as otherwise stated)

	For the Three Months Ended September 30, 2012
	Short and Long Term Residential Care Communities			MOBs			All Other Operations			Consolidated
Revenues:
Rental income	$	60,496		$	51,346		$	4,439		$	116,281
Residents fees and services	42,352			—			—			42,352
Total revenues	102,848			51,346			4,439			158,633
Expenses:
Depreciation	22,470			12,462			948			35,880
Property operating expenses	31,233			16,574			—			47,807
General and administrative	—			—			8,352			8,352
Acquisition related costs	—			—			4,297			4,297
Total expenses	53,703			29,036			13,597			96,336
Operating income (loss)	49,145			22,310			(9,158		)	62,297
Interest and other income	—			—			248			248
Interest expense	(11,594		)	(1,014		)	(17,809		)	(30,417		)
Loss on early extinguishment of debt	—			—			(6,349		)	(6,349		)
Loss on lease terminations	(104		)	—			—			(104		)
Loss on sale of properties	—			(101		)	—			(101		)
Equity in earnings of an investee	—			—			115			115
Income (loss) before income tax expense	37,447			21,195			(32,953		)	25,689
Income tax expense	—			—			(43		)	(43		)
Net income (loss)	$	37,447		$	21,195		$	(32,996	)	$	25,646
Total assets	$	2,604,149		$	1,625,180		$	416,966		$	4,646,295

SENIOR HOUSING PROPERTIES TRUST

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

(dollar amounts in thousands, except per share data or as otherwise stated)

	For the Three Months Ended September 30, 2011
	Short and Long Term Residential Care Communities			MOBs			All Other Operations			Consolidated
Rental income	$	58,391		$	40,139		$	4,439		$	102,969
Residents fees and services	10,731			—			—			10,731
Total revenues	69,122			40,139			4,439			113,700
Expenses:
Depreciation	18,369			9,507			948			28,824
Property operating expenses	8,603			11,550			—			20,153
General and administrative	—			—			6,564			6,564
Acquisition related costs	—			—			2,620			2,620
Impairment of assets	1,028			—			—			1,028
Total expenses	28,000			21,057			10,132			59,189
Operating income (loss)	41,122			19,082			(5,693		)	54,511
Interest and other income	—			—			394			394
Interest expense	(11,152		)	(254		)	(13,324		)	(24,730		)
Equity in earnings of an investee	—			—			28			28
Income (loss) before income tax expense	29,970			18,828			(18,595		)	30,203
Income tax expense	—			—			(207		)	(207		)
Net income (loss)	$	29,970		$	18,828		$	(18,802	)	$	29,996
Total assets	$	2,079,432		$	1,465,833		$	458,048		$	4,003,313

SENIOR HOUSING PROPERTIES TRUST

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

(dollar amounts in thousands, except per share data or as otherwise stated)

	For the Nine Months Ended September 30, 2012
	Short and Long Term Residential Care Communities			MOBs			All Other Operations			Consolidated
Revenues:
Rental income	$	178,964		$	144,491		$	13,317		$	336,772
Residents fees and services	113,906			—			—			113,906
Total revenues	292,870			144,491			13,317			450,678
Expenses:
Depreciation	64,432			37,211			2,844			104,487
Property operating expenses	82,976			44,899			—			127,875
General and administrative	—			—			24,106			24,106
Acquisition related costs	—			—			6,814			6,814
Impairment of assets	—			3,071			—			3,071
Total expenses	147,408			85,181			33,764			266,353
Operating income (loss)	145,462			59,310			(20,447		)	184,325
Interest and other income	—			—			957			957
Interest expense	(37,748		)	(1,807		)	(47,871		)	(87,426		)
Loss on early extinguishment of debt	—			—			(6,349		)	(6,349		)
Loss on lease terminations	(104		)	—			—			(104		)
Loss on sale of properties	—			(101		)	—			(101		)
Equity in earnings of an investee	—			—			236			236
Income (loss) before income tax expense	107,610			57,402			(73,474		)	91,538
Income tax expense	—			—			(290		)	(290		)
Net income (loss)	$	107,610		$	57,402		$	(73,764	)	$	91,248
Total assets	$	2,604,149		$	1,625,180		$	416,966		$	4,646,295

SENIOR HOUSING PROPERTIES TRUST

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

(dollar amounts in thousands, except per share data or as otherwise stated)

	For the Nine Months Ended September 30, 2011
	Short and Long Term Residential Care Communities			MOBs			All Other Operations			Consolidated
Rental income	$	172,686		$	115,887		$	13,266		$	301,839
Residents fees and services	11,575			—			—			11,575
Total revenues	184,261			115,887			13,266			313,414
Expenses:
Depreciation	52,112			27,164			2,844			82,120
Property operating expenses	9,212			32,676			—			41,888
General and administrative	—			—			19,513			19,513
Acquisition related costs	—			—			6,547			6,547
Impairment of assets	1,028			166			—			1,194
Total expenses	62,352			60,006			28,904			151,262
Operating income (loss)	121,909			55,881			(15,638		)	162,152
Interest and other income	—			—			870			870
Interest expense	(31,751		)	(686		)	(38,400		)	(70,837		)
Loss on early extinguishment of debt	—			—			(427		)	(427		)
Gain on sale of properties	21,236			79			—			21,315
Equity in earnings of an investee	—			—			111			111
Income (loss) before income tax expense	111,394			55,274			(53,484		)	113,184
Income tax expense	—			—			(365		)	(365		)
Net income (loss)	$	111,394		$	55,274		$	(53,849	)	$	112,819
Total assets	$	2,079,432		$	1,465,833		$	458,048		$	4,003,313