SEGMENT INFORMATION

3 Months Ended

Mar. 31, 2020

NOTE 15—SEGMENT INFORMATION

As of March 31, 2020, 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 senior 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 senior 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 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, 2020
	Triple-Net Leased Properties		Senior Living Operations		Office Operations		All Other		Total
	(In thousands)
Revenues:
Rental income	$	194,862	$	—	$	208,395	$	—	$	403,257
Resident fees and services	—		576,770		—		—		576,770
Office building and other services revenue	—		—		2,174		954		3,128
Income from loans and investments	—		—		—		24,046		24,046
Interest and other income	—		—		—		4,853		4,853
Total revenues	$	194,862	$	576,770	$	210,569	$	29,853	$	1,012,054

Total revenues	$	194,862	$	576,770	$	210,569	$	29,853	$	1,012,054
Less:
Interest and other income	—		—		—		4,853		4,853
Property-level operating expenses	6,331		410,131		64,506		—		480,968
Office building services costs	—		—		727		—		727
Segment NOI	$	188,531	$	166,639	$	145,336	$	25,000	525,506
Interest and other income									4,853
Interest expense									(116,696		)
Depreciation and amortization									(248,837		)
General, administrative and professional fees									(42,535		)
Merger-related expenses and deal costs									(8,218		)
Other									(3,708		)
Loss from unconsolidated entities									(10,876		)
Gain on real estate dispositions									226,225
Income tax benefit									149,016
Income from continuing operations									474,730
Net income									474,730
Net income attributable to noncontrolling interests									1,613
Net income attributable to common stockholders									$	473,117



	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
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		)
Loss from unconsolidated entities									(946		)
Gain on real estate dispositions									5,447
Income tax benefit									1,257
Income from continuing operations									127,588
Net income									127,588
Net income attributable to noncontrolling interests									1,803
Net income attributable to common stockholders									$	125,785

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,
	2020		2019
	(In thousands)
Capital expenditures:
Triple-net leased properties	$	7,685	$	8,591
Senior living operations	51,884		26,959
Office operations	140,988		49,154
Total capital expenditures	$	200,557	$	84,704

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,
	2020		2019
	(In thousands)
Revenues:
United States	$	908,193	$	888,281
Canada	96,970		47,597
United Kingdom	6,891		6,996
Total revenues	$	1,012,054	$	942,874



	As of March 31, 2020		As of December 31, 2019
	(In thousands)
Net real estate property:
United States	$	18,089,200	$	18,631,352
Canada	2,631,249		2,830,850
United Kingdom	246,827		266,885
Total net real estate property	$	20,967,276	$	21,729,087