Segment Reporting |
Segment Reporting The Company conducts its business through the following segments, which are based on how management reviews and manages its business: | | • | Real Estate Equity - Focused on equity investments backed by properties in the mid-acuity senior housing sector, which the Company defines as assisted living, memory care, skilled nursing and independent living facilities that have an emphasis on private pay patients and may also include medical office buildings and rehabilitation facilities. Certain healthcare properties operate under the RIDEA structure generating resident income from short-term residential agreements and incur customary related operating expenses. |
| | • | Real Estate Debt - Focused on originating, acquiring and asset managing healthcare-related debt investments including first mortgage loans, subordinate interests and mezzanine loans and participations in such loans, as well as preferred equity interests. |
| | • | Healthcare-Related Securities - Focused on investing in and asset managing healthcare-related securities primarily consisting of commercial mortgage backed securities and may include other securities backed primarily by loans secured by healthcare properties. |
The Company primarily generates revenue from rental and resident fee income from real estate equity and interest income on the real estate debt investments. The Company’s income is also derived through the difference between net revenue and the cost at which the Company is able to finance its investments. The Company may also acquire investments which generate attractive returns without any leverage. The following tables present segment reporting for the three and six months ended June 30, 2014 and 2013: | | | | | | | | | | | | | | | | | | Three months ended June 30, 2014 | | Real Estate Equity | | Real Estate Debt | | Corporate (1) | | Total | Rental and resident fee income | | $ | 5,033,166 |
| | $ | — |
| | $ | — |
| | $ | 5,033,166 |
| Interest income | | — |
| | 784,030 |
| | — |
| | 784,030 |
| Property operating expenses | | 2,749,963 |
| | — |
| | — |
| | 2,749,963 |
| Asset management and other fees-related party | | — |
| | — |
| | 585,888 |
| | 585,888 |
| Other expenses | | 1,530,996 |
| | 53,169 |
| | 1,146,220 |
| | 2,730,385 |
| Income (loss) from operations | | 752,207 |
| | 730,861 |
| | (1,732,108 | ) |
| (249,040 | ) | Equity in earnings (losses) of unconsolidated ventures | | (296,680 | ) | | — |
| | — |
| | (296,680 | ) | Net Income (loss) | | $ | 455,527 |
| | $ | 730,861 |
| | $ | (1,732,108 | ) | | $ | (545,720 | ) |
| | | | | | | | | | | | | | Three months ended June 30, 2013 | | Real Estate Debt | | Corporate (1) | | Total | Interest income | | $ | 39,000 |
| | $ | — |
| | $ | 39,000 |
| Asset management and other fees-related party | | — |
| | 4,819 |
| | 4,819 |
| Other expenses | | — |
| | 15,135 |
| | 15,135 |
| Net income (loss) | | $ | 39,000 |
|
| $ | (19,954 | ) |
| $ | 19,046 |
|
| | | | | | | | | | | | | | | | | | Six months ended June 30, 2014 | | Real Estate Equity | | Real Estate Debt | | Corporate (1) | | Total | Rental and resident fee income | | $ | 8,997,182 |
| | $ | — |
| | $ | — |
| | $ | 8,997,182 |
| Interest income | | — |
| | 1,267,312 |
| | — |
| | 1,267,312 |
| Property operating expenses | | 4,957,788 |
| | — |
| | — |
| | 4,957,788 |
| Asset management and other fees-related party | | — |
| | — |
| | 2,751,409 |
| | 2,751,409 |
| Other expenses | | 3,672,993 |
| | 55,994 |
| | 2,512,896 |
| | 6,241,883 |
| Income (loss) from operations | | 366,401 |
|
| 1,211,318 |
|
| (5,264,305 | ) |
| (3,686,586 | ) | Equity in earnings (losses) of unconsolidated ventures | | (296,680 | ) | | — |
| | — |
| | (296,680 | ) | Net Income (loss) | | $ | 69,721 |
| | $ | 1,211,318 |
| | $ | (5,264,305 | ) | | $ | (3,983,266 | ) |
| | | | | | | | | | | | | | Six months ended June 30, 2013 | | Real Estate Debt | | Corporate (1) | | Total | Interest income | | $ | 39,000 |
| | $ | — |
| | $ | 39,000 |
| Asset management and other fees-related party | | — |
| | 4,819 |
| | 4,819 |
| Other expenses | | — |
| | 21,223 |
| | 21,223 |
| Net income (loss) | | $ | 39,000 |
| | $ | (26,042 | ) | | $ | 12,958 |
|
_________________________________________________ | | (1) | Includes unallocated asset management fee - related party and general and administrative expenses, if any. |
The following table presents total assets by segment as of June 30, 2014 and December 31, 2013: | | | | | | | | | | | | | | | | | | Total Assets | | Real Estate Equity | | Real Estate Debt | | Corporate | | Total | June 30, 2014 | | 168,443,355 |
| | 107,846,580 |
| | 83,559,615 |
| | $ | 359,849,550 |
| December 31, 2013 | | $ | 57,521,280 |
| | $ | 11,406,597 |
| | $ | 46,911,253 |
| | $ | 115,839,130 |
|
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