SEGMENT INFORMATION

3 Months Ended

Mar. 31, 2017

Segment Reporting [Abstract]

SEGMENT INFORMATION

NOTE 16—SEGMENT INFORMATION

As of March 31, 2017, we operated through three reportable business segments: triple-net leased properties, senior living operations and office operations. Under our triple-net leased properties segment, we invest in and own seniors housing and healthcare properties throughout the United States and the United Kingdom 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. In 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. In our office operations segment, we primarily acquire, own, develop, lease and manage MOBs and life science and innovation centers throughout the United States. Information provided for “all other” includes income from loans and investments and other miscellaneous income and various corporate-level expenses not directly attributable to any of 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.

Our chief operating decision makers evaluate performance of the combined properties in each reportable business segment and determine how to allocate resources to those segments, in significant part, based on segment net operating income (“NOI”) and related measures. We define segment NOI as NOI adjusted for income or loss from unconsolidated entities, and we define NOI as total revenues, less interest and other income, property-level operating expenses and office building services costs. We consider segment NOI useful 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 between periods on a consistent basis. In order to facilitate a clear understanding of our historical consolidated operating results, segment NOI should be examined in conjunction with income from continuing operations 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 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 March 31, 2017
	Triple-Net Leased Properties		Senior Living Operations			Office Operations		All Other			Total
	(In thousands)
Revenues:
Rental income	$	209,327	$	—		$	185,895	$	—		$	395,222
Resident fees and services	—		464,188			—		—			464,188
Office building and other services revenue	1,205		—			1,931		270			3,406
Income from loans and investments	—		—			—		20,146			20,146
Interest and other income	—		—			—		481			481
Total revenues	$	210,532	$	464,188		$	187,826	$	20,897		$	883,443
Total revenues	$	210,532	$	464,188		$	187,826	$	20,897		$	883,443
Less:
Interest and other income	—		—			—		481			481
Property-level operating expenses	—		312,073			56,914		—			368,987
Office building services costs	—		—			738		—			738
Segment NOI	210,532		152,115			130,174		20,416			513,237
Income (loss) from unconsolidated entities	3,269		(76		)	335		(378		)	3,150
Segment profit	$	213,801	$	152,039		$	130,509	$	20,038		516,387
Interest and other income											481
Interest expense											(108,804		)
Depreciation and amortization											(217,783		)
General, administrative and professional fees											(33,961		)
Loss on extinguishment of debt, net											(309		)
Merger-related expenses and deal costs											(2,056		)
Other											(1,188		)
Income tax benefit											3,145
Income from continuing operations											$	155,912

	For the Three Months Ended March 31, 2016
	Triple-Net Leased Properties			Senior Living Operations		Office Operations			All Other		Total
	(In thousands)
Revenues:
Rental income	$	214,487		$	—	$	144,136		$	—	$	358,623
Resident fees and services	—			463,976		—			—		463,976
Office building and other services revenue	1,199			—		4,976			1,010		7,185
Income from loans and investments	—			—		—			22,386		22,386
Interest and other income	—			—		—			119		119
Total revenues	$	215,686		$	463,976	$	149,112		$	23,515	$	852,289
Total revenues	$	215,686		$	463,976	$	149,112		$	23,515	$	852,289
Less:
Interest and other income	—			—		—			119		119
Property-level operating expenses	—			312,541		43,681			—		356,222
Office building services costs	—			—		3,451			—		3,451
Segment NOI	215,686			151,435		101,980			23,396		492,497
(Loss) income from unconsolidated entities	(671		)	337		(126		)	262		(198		)
Segment profit	$	215,015		$	151,772	$	101,854		$	23,658	492,299
Interest and other income											119
Interest expense											(103,273		)
Depreciation and amortization											(236,387		)
General, administrative and professional fees											(31,726		)
Loss on extinguishment of debt, net											(314		)
Merger-related expenses and deal costs											(1,632		)
Other											(4,168		)
Income tax benefit											8,421
Income from continuing operations											$	123,339

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

	For the Three Months Ended March 31,
	2017		2016
	(In thousands)
Capital expenditures:
Triple-net leased properties	$	93,809	$	40,701
Senior living operations	21,325		18,994
Office operations	193,996		12,413
Total capital expenditures	$	309,130	$	72,108

Our portfolio of properties and mortgage loan and other investments are located in the United States, Canada and the United Kingdom. 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 March 31,
	2017		2016
	(In thousands)
Revenues:
United States	$	832,820	$	804,201
Canada	44,595		41,129
United Kingdom	6,028		6,959
Total revenues	$	883,443	$	852,289

	As of March 31, 2017		As of December 31, 2016
	(In thousands)
Net real estate property:
United States	$	19,325,618	$	19,105,939
Canada	1,036,815		1,037,105
United Kingdom	253,296		251,710
Total net real estate property	$	20,615,729	20,394,754