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Segment Reporting
6 Months Ended
Jun. 30, 2022
Segment Reporting [Abstract]  
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, 2022Net LeaseOperatingUnconsolidated InvestmentsDebt
Corporate(1)
Total
Property and other revenues$247 $44,988 $— $— $139 $45,374 
Interest income on debt investments— — — — — — 
Property operating expenses(11)(33,219)— — — (33,230)
Interest expense(903)(9,651)— — — (10,554)
Transaction costs— — — — — — 
Asset management fees - related party— — — — (2,457)(2,457)
General and administrative expenses— (17)— — (3,738)(3,755)
Depreciation and amortization(868)(8,672)— — — (9,540)
Impairment loss— (13,002)— — — (13,002)
Other income, net— — — — 
Realized gain (loss) on investments and other(206)(46)— — — (252)
Equity in earnings (losses) of unconsolidated ventures— — 34,053 — — 34,053 
Income tax expense— (15)— — — (15)
Net income (loss)$(1,741)$(19,629)$34,053 $— $(6,056)$6,627 
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(1)Includes unallocated asset management fee-related party and general and administrative expenses.
Direct Investments
Three Months Ended June 30, 2021Net LeaseOperatingUnconsolidated InvestmentsDebt
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)
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(1)Includes unallocated asset management fee-related party and general and administrative expenses.
Direct Investments
Six Months Ended June 30, 2022Net LeaseOperatingUnconsolidated InvestmentsDebt
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)
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(1)Includes unallocated asset management fee-related party and general and administrative expenses.
Direct Investments
Six Months Ended June 30, 2021Net LeaseOperatingUnconsolidated InvestmentsDebt
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)
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(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 LeaseOperatingUnconsolidated InvestmentsDebt
Corporate(1)
Total
June 30, 2022 (Unaudited)
$103,546 $885,335 $208,030 $— $93,631 $1,290,542 
December 31, 2021104,809 908,517 212,309 — 187,238 1,412,873 
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(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, 2022Six Months Ended June 30, 2022
Operator / ManagerProperties 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 Communities14 1,753 22,360 25.2 %
Avamere Health Services453 9,657 10.9 %
Integral Senior Living44 2,424 2.7 %
Arcadia Management(4)
572 496 0.6 %
Other(5)
— — 157 0.2 %
Total56 6,822 $88,706 100.0 %
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(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.