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Segment Reporting
6 Months Ended
Jun. 30, 2014
Segment Reporting [Abstract]  
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