SEGMENT INFORMATION

3 Months Ended

Mar. 31, 2019

NOTE 15—SEGMENT INFORMATION

As of March 31, 2019, we operated through three reportable business segments: triple-net leased properties, senior living operations and office operations. In 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, Sunrise and ESL, to manage those communities. In our office operations segment, we primarily acquire, own, develop, lease and manage MOBs and research 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, 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 NOI and related measures. We define segment 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 net income attributable to common stockholders 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 31,2019
	Triple-Net Leased Properties		Senior Living Operations			Office Operations		All Other			Total
	(In thousands)
Revenues:
Rental income	$	200,068	$	—		$	201,428	$	—		$	401,496
Resident fees and services	—		521,447			—		—			521,447
Office building and other services revenue	—		—			1,775		743			2,518
Income from loans and investments	—		—			—		17,126			17,126
Interest and other income	—		—			—		287			287
Total revenues	$	200,068	$	521,447		$	203,203	$	18,156		$	942,874

Total revenues	$	200,068	$	521,447		$	203,203	$	18,156		$	942,874
Less:
Interest and other income	—		—			—		287			287
Property-level operating expenses	7,433		360,986			62,085		—			430,504
Office building services costs	—		—			633		—			633
Segment NOI	192,635		160,461			140,485		17,869			511,450
Income (loss) from unconsolidated entities	508		(934		)	229		(749		)	(946		)
Segment profit	$	193,143	$	159,527		$	140,714	$	17,120		510,504
Interest and other income											287
Interest expense											(110,619		)
Depreciation and amortization											(235,920		)
General, administrative and professional fees											(40,760		)
Loss on extinguishment of debt, net											(405		)
Merger-related expenses and deal costs											(2,180		)
Other											(23		)
Gain on real estate dispositions											5,447
Income tax benefit											1,257
Income from continuing operations											127,588
Discontinued operations											—
Net income											127,588
Net income attributable to noncontrolling interests											1,803
Net income attributable to common stockholders											$	125,785



	For the Three Months Ended March 31, 2018
	Triple-Net Leased Properties			Senior Living Operations			Office Operations			All Other			Total
	(In thousands)
Revenues:
Rental income	$	190,641		$	—		$	194,168		$	—		$	384,809
Resident fees and services	—			514,753			—			—			514,753
Office building and other services revenue	1,142			—			1,634			552			3,328
Income from loans and investments	—			—			—			31,181			31,181
Interest and other income	—			—			—			9,634			9,634
Total revenues	$	191,783		$	514,753		$	195,802		$	41,367		$	943,705

Total revenues	$	191,783		$	514,753		$	195,802		$	41,367		$	943,705
Less:
Interest and other income	—			—			—			9,634			9,634
Property-level operating expenses	—			352,220			60,693			—			412,913
Office building services costs	—			—			115			—			115
Segment NOI	191,783			162,533			134,994			31,733			521,043
Loss from unconsolidated entities	(38,654		)	(641		)	(620		)	(824		)	(40,739		)
Segment profit	$	153,129		$	161,892		$	134,374		$	30,909		480,304
Interest and other income													9,634
Interest expense													(111,363		)
Depreciation and amortization													(233,150		)
General, administrative and professional fees													(37,174		)
Loss on extinguishment of debt, net													(10,977		)
Merger-related expenses and deal costs													(17,336		)
Other													(3,120		)
Gain on real estate dispositions													48
Income tax benefit													3,242
Income from continuing operations													80,108
Discontinued operations													(10		)
Net income													80,098
Net income attributable to noncontrolling interests													1,395
Net income attributable to common stockholders													$	78,703

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,
	2019		2018
	(In thousands)
Capital expenditures:
Triple-net leased properties	$	8,591	$	5,668
Senior living operations	26,959		30,577
Office operations	49,154		69,711
Total capital expenditures	$	84,704	$	105,956

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,
	2019		2018
	(In thousands)
Revenues:
United States	$	888,281	$	887,745
Canada	47,597		48,536
United Kingdom	6,996		7,424
Total revenues	$	942,874	$	943,705



	As of March 31, 2019		As of December 31, 2018
	(In thousands)
Net real estate property:
United States	$	18,879,373	$	18,861,163
Canada	978,703		963,588
United Kingdom	271,521		268,906
Total net real estate property	$	20,129,597	$	20,093,657