SEGMENT INFORMATION

As of September 30, 2013, we operated through three reportable business segments: triple-net leased properties, senior living operations and MOB operations. Under our triple-net leased properties segment, we acquire and own seniors housing and healthcare properties throughout the United States and lease those properties to healthcare operating companies under “triple-net” or “absolute-net” leases that obligate the tenants to pay all property-related expenses. Under our senior living operations segment, we invest in seniors housing communities throughout the United States and Canada and engage independent operators, such as Atria and Sunrise, to manage those communities. Under our MOB operations segment, we primarily acquire, own, develop, lease and manage MOBs. Information provided for “all other” includes income from loans and investments and other miscellaneous income and various corporate-level expenses not directly attributable to our three reportable business segments. Assets included in “all other” consist primarily of corporate assets, including cash, restricted cash, deferred financing costs, loans receivable and investments, and miscellaneous accounts receivable.

We evaluate performance of the combined properties in each reportable business segment based on segment profit, which we define as NOI adjusted for income/loss from unconsolidated entities. We define NOI as total revenues, less interest and other income, property-level operating expenses and medical office building services costs. Although we believe that net income, as defined by GAAP, is the most appropriate earnings measurement, we consider segment profit a useful supplement to net income because it allows investors, analysts and our management to measure unlevered property-level operating results and to compare our operating results to the operating results of other real estate companies and between periods on a consistent basis. Segment profit should not be considered as an alternative to net income (determined in accordance with GAAP) as an indicator of our financial performance. In order to facilitate a clear understanding of our historical consolidated operating results, segment profit should be examined in conjunction with net income as presented in our Consolidated Financial Statements and other financial data included elsewhere in this Quarterly Report on Form 10-Q.

Interest expense, depreciation and amortization, general, administrative and professional fees, income tax expense, discontinued operations and other non-property specific revenues and expenses are not allocated to individual reportable business segments for purposes of assessing segment performance. There are no intersegment sales or transfers.

Summary information by reportable business segment is as follows:

For the three months ended September 30, 2013:



	Triple-Net Leased Properties		Senior Living Operations			MOB Operations		All Other			Total
	(In thousands)
Revenues:
Rental income	$	219,170	$	—		$	115,444	$	—		$	334,614
Resident fees and services	—		359,112			—		—			359,112
Medical office building and other services revenue	1,116		—			2,530		500			4,146
Income from loans and investments	—		—			—		14,448			14,448
Interest and other income	—		—			—		66			66
Total revenues	$	220,286	$	359,112		$	117,974	$	15,014		$	712,386
Total revenues	$	220,286	$	359,112		$	117,974	$	15,014		$	712,386
Less:
Interest and other income	—		—			—		66			66
Property-level operating expenses	—		244,316			40,796		—			285,112
Medical office building services costs	—		—			1,651		—			1,651
Segment NOI	220,286		114,796			75,527		14,948			425,557
Income (loss) from unconsolidated entities	203		(32		)	71		(132		)	110
Segment profit	$	220,489	$	114,764		$	75,598	$	14,816		425,667
Interest and other income											66
Interest expense											(84,089		)
Depreciation and amortization											(177,710		)
General, administrative and professional fees											(28,659		)
Gain on extinguishment of debt											189
Merger-related expenses and deal costs											(6,208		)
Other											(4,353		)
Income tax benefit											2,780
Discontinued operations											(9,084		)
Net income											$	118,599

For the three months ended September 30, 2012:



	Triple-Net Leased Properties		Senior Living Operations		MOB Operations		All Other		Total
	(In thousands)
Revenues:
Rental income	$	207,372	$	—	$	100,814	$	—	$	308,186
Resident fees and services	—		316,560		—		—		316,560
Medical office building and other services revenue	1,110		—		3,434		—		4,544
Income from loans and investments	—		—		—		9,035		9,035
Interest and other income	—		—		—		330		330
Total revenues	$	208,482	$	316,560	$	104,248	$	9,365	$	638,655
Total revenues	$	208,482	$	316,560	$	104,248	$	9,365	$	638,655
Less:
Interest and other income	—		—		—		330		330
Property-level operating expenses	—		216,306		36,144		—		252,450
Medical office building services costs	—		—		1,487		—		1,487
Segment NOI	208,482		100,254		66,617		9,035		384,388
Income from unconsolidated entities	348		—		16,726		—		17,074
Segment profit	$	208,830	$	100,254	$	83,343	$	9,035	401,462
Interest and other income									330
Interest expense									(74,037		)
Depreciation and amortization									(188,540		)
General, administrative and professional fees									(26,867		)
Gain on extinguishment of debt									1,194
Merger-related expenses and deal costs									(4,917		)
Other									(1,966		)
Income tax benefit									8,886
Discontinued operations									(3,724		)
Net income									$	111,821

For the nine months ended September 30, 2013:



	Triple-Net Leased Properties		Senior Living Operations			MOB Operations		All Other			Total
	(In thousands)
Revenues:
Rental income	$	645,719	$	—		$	337,536	$	—		$	983,255
Resident fees and services	—		1,039,876			—		—			1,039,876
Medical office building and other services revenue	3,342		—			7,226		763			11,331
Income from loans and investments	—		—			—		45,284			45,284
Interest and other income	—		—			—		1,901			1,901
Total revenues	$	649,061	$	1,039,876		$	344,762	$	47,948		$	2,081,647
Total revenues	$	649,061	$	1,039,876		$	344,762	$	47,948		$	2,081,647
Less:
Interest and other income	—		—			—		1,901			1,901
Property-level operating expenses	—		706,561			115,738		—			822,299
Medical office building services costs	—		—			4,957		—			4,957
Segment NOI	649,061		333,315			224,067		46,047			1,252,490
Income (loss) from unconsolidated entities	573		(1,173		)	1,456		(323		)	533
Segment profit	$	649,634	$	332,142		$	225,523	$	45,724		1,253,023
Interest and other income											1,901
Interest expense											(245,622		)
Depreciation and amortization											(528,180		)
General, administrative and professional fees											(84,760		)
Gain on extinguishment of debt											909
Merger-related expenses and deal costs											(17,137		)
Other											(13,325		)
Income tax benefit											13,100
Discontinued operations											(33,679		)
Net income											$	346,230

For the nine months ended September 30, 2012:



	Triple-Net Leased Properties		Senior Living Operations		MOB Operations		All Other		Total
	(In thousands)
Revenues:
Rental income	$	613,939	$	—	$	253,889	$	—	$	867,828
Resident fees and services	—		905,190		—		—		905,190
Medical office building and other services revenue	3,329		—		13,462		—		16,791
Income from loans and investments	—		—		—		25,223		25,223
Interest and other income	—		—		—		442		442
Total revenues	$	617,268	$	905,190	$	267,351	$	25,665	$	1,815,474
Total revenues	$	617,268	$	905,190	$	267,351	$	25,665	$	1,815,474
Less:
Interest and other income	—		—		—		442		442
Property-level operating expenses	—		618,471		86,468		—		704,939
Medical office building services costs	—		—		8,314		—		8,314
Segment NOI	617,268		286,719		172,569		25,223		1,101,779
Income from unconsolidated entities	1,068		—		16,837		—		17,905
Segment profit	$	618,336	$	286,719	$	189,406	$	25,223	1,119,684
Interest and other income									442
Interest expense									(214,028		)
Depreciation and amortization									(534,792		)
General, administrative and professional fees									(75,488		)
Loss on extinguishment of debt									(38,339		)
Merger-related expenses and deal costs									(49,566		)
Other									(5,052		)
Income tax benefit									2,727
Discontinued operations									70,061
Net income									$	275,649

Capital expenditures, including investments in real estate property and development project expenditures, by reportable business segment are as follows:



	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
	2013		2012		2013		2012
	(In thousands)
Capital expenditures:
Triple-net leased	$	793,594	$	25,535	$	838,598	$	39,415
Senior living	226,442		20,510		471,531		369,341
MOB	99,706		257,479		173,978		878,545
Total capital expenditures	$	1,119,742	$	303,524	$	1,484,107	$	1,287,301

The properties, loans receivable and other investments in our portfolio are located in the United States and Canada. Revenues are attributed to an individual country based on the location of each property.

Geographic information regarding our operations is as follows:



	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
	2013		2012		2013		2012
	(In thousands)
Revenues:
United States	$	689,062	$	614,310	$	2,011,491	$	1,743,899
Canada	23,324		24,345		70,156		71,575
Total revenues	$	712,386	$	638,655	$	2,081,647	$	1,815,474



	As of September 30, 2013		As of December 31, 2012
	(In thousands)
Net real estate property:
United States	$	17,794,819	$	16,711,508
Canada	380,124		400,024
Total net real estate property	$	18,174,943	$	17,111,532