Segment Reporting |
Segment Reporting The Company conducts its business through the following five segments, which are based on how management reviews and manages its business. •Direct Investments - Operating - Healthcare properties operated pursuant to management agreements with healthcare managers. •Direct Investments - Net Lease - Healthcare properties operated under net leases with an operator. •Unconsolidated Investments - Healthcare joint ventures, including properties operated under net leases with operators or pursuant to management agreements with healthcare managers, in which the Company owns a minority interest. •Debt Investments - Mortgage loans or mezzanine loans to owners of healthcare real estate. The Company had one mezzanine loan, which was repaid in August 2021. •Corporate - The corporate segment includes corporate level asset management fees - related party and general and administrative expenses. The Company primarily generates rental and resident fee income from its direct investments. Additionally, the Company reports its proportionate interest of revenues and expenses from unconsolidated investments through equity in earnings (losses) of unconsolidated ventures. During the three and six months ended June 30, 2021, the Company generated interest income on its real estate debt investment. The following tables present segment reporting (dollars in thousands): | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Direct Investments | | | | | | | | | Three Months Ended June 30, 2022 | | Net Lease | | Operating | | Unconsolidated Investments | | Debt | | Corporate(1) | | Total | Property and other revenues | | $ | 247 | | | $ | 44,988 | | | $ | — | | | $ | — | | | $ | 139 | | | $ | 45,374 | | Interest income on debt investments | | — | | | — | | | — | | | — | | | — | | | — | | Property operating expenses | | (11) | | | (33,219) | | | — | | | — | | | — | | | (33,230) | | Interest expense | | (903) | | | (9,651) | | | — | | | — | | | — | | | (10,554) | | Transaction costs | | — | | | — | | | — | | | — | | | — | | | — | | Asset management fees - related party | | — | | | — | | | — | | | — | | | (2,457) | | | (2,457) | | General and administrative expenses | | — | | | (17) | | | — | | | — | | | (3,738) | | | (3,755) | | Depreciation and amortization | | (868) | | | (8,672) | | | — | | | — | | | — | | | (9,540) | | Impairment loss | | — | | | (13,002) | | | — | | | — | | | — | | | (13,002) | | Other income, net | | — | | | 5 | | | — | | | — | | | — | | | 5 | | Realized gain (loss) on investments and other | | (206) | | | (46) | | | — | | | — | | | — | | | (252) | | Equity in earnings (losses) of unconsolidated ventures | | — | | | — | | | 34,053 | | | — | | | — | | | 34,053 | | Income tax expense | | — | | | (15) | | | — | | | — | | | — | | | (15) | | Net income (loss) | | $ | (1,741) | | | $ | (19,629) | | | $ | 34,053 | | | $ | — | | | $ | (6,056) | | | $ | 6,627 | |
_______________________________________ (1)Includes unallocated asset management fee-related party and general and administrative expenses. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Direct Investments | | | | | | | | | Three Months Ended June 30, 2021 | | Net Lease | | Operating | | Unconsolidated Investments | | Debt | | Corporate(1) | | Total | Property and other revenues | | $ | 5,706 | | | $ | 58,160 | | | $ | — | | | $ | — | | | $ | 41 | | | $ | 63,907 | | Interest income on debt investments | | — | | | — | | | — | | | 1,387 | | | — | | | 1,387 | | Real estate properties - operating expenses | | — | | | (45,101) | | | — | | | — | | | — | | | (45,101) | | Interest expense | | (2,890) | | | (12,753) | | | — | | | — | | | (319) | | | (15,962) | | Transaction costs | | — | | | — | | | — | | | — | | | — | | | — | | Asset management fees - related party | | — | | | — | | | — | | | — | | | (2,769) | | | (2,769) | | General and administrative expenses | | (66) | | | (114) | | | — | | | — | | | (2,899) | | | (3,079) | | Depreciation and amortization | | (4,006) | | | (11,551) | | | — | | | — | | | — | | | (15,557) | | Impairment loss | | — | | | — | | | — | | | — | | | — | | | — | | Other income, net | | — | | | (468) | | | — | | | — | | | — | | | (468) | | Realized gain (loss) on investments and other | | (159) | | | 48 | | | — | | | — | | | — | | | (111) | | Equity in earnings (losses) of unconsolidated ventures | | — | | | — | | | 10,766 | | | — | | | — | | | 10,766 | | Income tax benefit (expense) | | — | | | (11) | | | — | | | — | | | — | | | (11) | | Net income (loss) | | $ | (1,415) | | | $ | (11,790) | | | $ | 10,766 | | | $ | 1,387 | | | $ | (5,946) | | | $ | (6,998) | | _______________________________________(1)Includes unallocated asset management fee-related party and general and administrative expenses. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Direct Investments | | | | | | | | | Six Months Ended June 30, 2022 | | Net Lease | | Operating | | Unconsolidated Investments | | Debt | | Corporate(1) | | Total | Property and other revenues | | $ | 496 | | | $ | 88,053 | | | $ | — | | | $ | — | | | $ | 157 | | | $ | 88,706 | | Interest income on debt investments | | — | | | — | | | — | | | — | | | — | | | — | | Property operating expenses | | (35) | | | (66,089) | | | — | | | — | | | — | | | (66,124) | | Interest expense | | (1,801) | | | (19,062) | | | — | | | — | | | — | | | (20,863) | | Transaction costs | | — | | | — | | | — | | | — | | | — | | | — | | Asset management fees - related party | | — | | | — | | | — | | | — | | | (5,104) | | | (5,104) | | General and administrative expenses | | — | | | (17) | | | — | | | — | | | (7,424) | | | (7,441) | | Depreciation and amortization | | (1,731) | | | (17,732) | | | — | | | — | | | — | | | (19,463) | | Impairment loss | | — | | | (13,002) | | | — | | | — | | | — | | | (13,002) | | Other income, net | | — | | | 77 | | | — | | | — | | | — | | | 77 | | Realized gain (loss) on investments and other | | (206) | | | 295 | | | 246 | | | — | | | — | | | 335 | | Equity in earnings (losses) of unconsolidated ventures | | — | | | — | | | 36,555 | | | — | | | — | | | 36,555 | | Income tax expense | | — | | | (30) | | | — | | | — | | | — | | | (30) | | Net income (loss) | | $ | (3,277) | | | $ | (27,507) | | | $ | 36,801 | | | $ | — | | | $ | (12,371) | | | $ | (6,354) | |
_______________________________________ (1)Includes unallocated asset management fee-related party and general and administrative expenses. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Direct Investments | | | | | | | | | Six Months Ended June 30, 2021 | | Net Lease | | Operating | | Unconsolidated Investments | | Debt | | Corporate(1) | | Total | Property and other revenues | | $ | 4,931 | | | $ | 116,268 | | | $ | — | | | $ | — | | | $ | 42 | | | $ | 121,241 | | Interest income on debt investments | | — | | | — | | | — | | | 3,600 | | | — | | | 3,600 | | Property operating expenses | | (25) | | | (90,694) | | | — | | | — | | | — | | | (90,719) | | Interest expense | | (5,763) | | | (25,588) | | | — | | | — | | | (636) | | | (31,987) | | Transaction costs | | — | | | (54) | | | — | | | — | | | — | | | (54) | | Asset management fees - related party | | — | | | — | | | — | | | — | | | (5,538) | | | (5,538) | | General and administrative expenses | | (107) | | | (114) | | | — | | | — | | | (5,891) | | | (6,112) | | Depreciation and amortization | | (7,860) | | | (23,084) | | | — | | | — | | | — | | | (30,944) | | Impairment loss | | (786) | | | — | | | — | | | — | | | — | | | (786) | | Other income, net | | — | | | 6,892 | | | — | | | — | | | — | | | 6,892 | | Realized gain (loss) on investments and other | | (159) | | | 7,563 | | | — | | | — | | | — | | | 7,404 | | Equity in earnings (losses) of unconsolidated ventures | | — | | | — | | | 9,876 | | | — | | | — | | | 9,876 | | Income tax benefit (expense) | | — | | | (26) | | | — | | | — | | | — | | | (26) | | Net income (loss) | | $ | (9,769) | | | $ | (8,837) | | | $ | 9,876 | | | $ | 3,600 | | | $ | (12,023) | | | $ | (17,153) | |
_______________________________________ (1)Includes unallocated asset management fee-related party and general and administrative expenses. The following table presents total assets by segment (dollars in thousands): | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Direct Investments | | | | | | | | | Total Assets: | | Net Lease | | Operating | | Unconsolidated Investments | | Debt | | Corporate(1) | | Total | June 30, 2022 (Unaudited) | | $ | 103,546 | | | $ | 885,335 | | | $ | 208,030 | | | $ | — | | | $ | 93,631 | | | $ | 1,290,542 | | December 31, 2021 | | 104,809 | | | 908,517 | | | 212,309 | | | — | | | 187,238 | | | 1,412,873 | |
______________________________________ (1)Represents primarily corporate cash and cash equivalents balances.
The following table presents the operators and managers of the Company’s properties, excluding properties owned through unconsolidated joint ventures (dollars in thousands): | | | | | | | | | | | | | | | | | | | | | | | | | As of June 30, 2022 | | Six Months Ended June 30, 2022 | Operator / Manager | Properties Under Management | | Units Under Management(1) | | Property and Other Revenues(2) | | % of Total Property and Other Revenues | Solstice Senior Living(3) | 32 | | | 4,000 | | | $ | 53,612 | | | 60.4 | % | Watermark Retirement Communities | 14 | | | 1,753 | | | 22,360 | | | 25.2 | % | Avamere Health Services | 5 | | | 453 | | | 9,657 | | | 10.9 | % | Integral Senior Living | 1 | | | 44 | | | 2,424 | | | 2.7 | % | Arcadia Management(4) | 4 | | | 572 | | | 496 | | | 0.6 | % | Other(5) | — | | | — | | | 157 | | | 0.2 | % | Total | 56 | | | 6,822 | | | $ | 88,706 | | | 100.0 | % |
______________________________________ (1)Represents rooms for ALFs and ILFs and beds for MCFs and SNFs, based on predominant type. (2)Includes rental income received from the Company’s net lease properties as well as rental income, ancillary service fees and other related revenue earned from ILF residents and resident fee income derived from the Company’s ALFs and MCFs, which includes resident room and care charges, ancillary fees and other resident service charges. (3)Solstice is a joint venture of which affiliates of ISL own 80%. (4)During the six months ended June 30, 2022, the Company recorded rental income to the extent payments were received. (5)Consists primarily of interest income earned on corporate-level cash accounts.
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