SEGMENT INFORMATION

6 Months Ended

Jun. 30, 2020

NOTE 15—SEGMENT INFORMATION

As of June 30, 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 June 30, 2020
	Triple-Net Leased Properties		Senior Living Operations		Office Operations		All Other		Total
	(In thousands)
Revenues:
Rental income	$	176,240	$	—	$	192,925	$	—	$	369,165
Resident fees and services	—		549,329		—		—		549,329
Office building and other services revenue	—		—		2,257		1,416		3,673
Income from loans and investments	—		—		—		19,491		19,491
Interest and other income	—		—		—		1,540		1,540
Total revenues	$	176,240	$	549,329	$	195,182	$	22,447	$	943,198

Total revenues	$	176,240	$	549,329	$	195,182	$	22,447	$	943,198
Less:
Interest and other income	—		—		—		1,540		1,540
Property-level operating expenses	5,275		432,578		60,752		—		498,605
Office building services costs	—		—		543		—		543
Segment NOI	$	170,965	$	116,751	$	133,887	$	20,907	442,510
Interest and other income									1,540
Interest expense									(123,132)
Depreciation and amortization									(349,594)
General, administrative and professional fees									(29,984)

Merger-related expenses and deal costs									(6,586)
Allowance on loans receivable and investments									(29,655)
Other									(3,382)
Loss from unconsolidated entities									(5,850)
Gain on real estate dispositions									1,254
Income tax expense									(56,356)
Loss from continuing operations									(159,235)
Net loss									(159,235)
Net loss attributable to noncontrolling interests									(2,065)
Net loss attributable to common stockholders									$	(157,170)


	For the Three Months Ended June 30, 2019
	Triple-Net Leased Properties		Senior Living Operations		Office Operations		All Other		Total
	(In thousands)
Revenues:
Rental income	$	196,382	$	—	$	202,188	$	—	$	398,570
Resident fees and services	—		520,725		—		—		520,725
Office building and other services revenue	—		—		1,850		841		2,691
Income from loans and investments	—		—		—		19,529		19,529
Interest and other income	—		—		—		9,202		9,202
Total revenues	$	196,382	$	520,725	$	204,038	$	29,572	$	950,717

Total revenues	$	196,382	$	520,725	$	204,038	$	29,572	$	950,717
Less:
Interest and other income	—		—		—		9,202		9,202
Property-level operating expenses	6,321		366,837		62,743		—		435,901
Office building services costs	—		—		515		—		515
Segment NOI	$	190,061	$	153,888	$	140,780	$	20,370	505,099
Interest and other income									9,202
Interest expense									(110,369)
Depreciation and amortization									(226,187)
General, administrative and professional fees									(43,079)
Loss on extinguishment of debt, net									(4,022)
Merger-related expenses and deal costs									(4,600)
Other									11,481
Loss from unconsolidated entities									(2,529)
Gain on real estate dispositions									19,150
Income tax benefit									57,752
Income from continuing operations									211,898
Net income									211,898
Net income attributable to noncontrolling interests									1,369
Net income attributable to common stockholders									$	210,529


	For the Six Months Ended June 30, 2020
	Triple-Net Leased Properties		Senior Living Operations		Office Operations		All Other		Total
	(In thousands)
Revenues:
Rental income	$	371,102	$	—	$	401,320	$	—	$	772,422
Resident fees and services	—		1,126,099		—		—		1,126,099
Office building and other services revenue	—		—		4,432		2,369		6,801
Income from loans and investments	—		—		—		43,537		43,537
Interest and other income	—		—		—		6,393		6,393
Total revenues	$	371,102	$	1,126,099	$	405,752	$	52,299	$	1,955,252

Total revenues	$	371,102	$	1,126,099	$	405,752	$	52,299	$	1,955,252
Less:
Interest and other income	—		—		—		6,393		6,393
Property-level operating expenses	11,606		842,709		125,258		—		979,573
Office building services costs	—		—		1,270		—		1,270
Segment NOI	$	359,496	$	283,390	$	279,224	$	45,906	968,016
Interest and other income									6,393
Interest expense									(239,828)
Depreciation and amortization									(598,431)
General, administrative and professional fees									(72,519)

Merger-related expenses and deal costs									(14,804)
Allowance on loans receivable and investments									(29,655)
Other									(7,090)
Loss from unconsolidated entities									(16,726)
Gain on real estate dispositions									227,479
Income tax benefit									92,660
Income from continuing operations									315,495
Net income									315,495
Net loss attributable to noncontrolling interests									(452)
Net income attributable to common stockholders									$	315,947


	For the Six Months Ended June 30, 2019
	Triple-Net Leased Properties		Senior Living Operations		Office Operations		All Other		Total
	(In thousands)
Revenues:
Rental income	$	396,450	$	—	$	403,616	$	—	$	800,066
Resident fees and services	—		1,042,172		—		—		1,042,172
Office building and other services revenue	—		—		3,626		1,583		5,209
Income from loans and investments	—		—		—		36,655		36,655
Interest and other income	—		—		—		9,489		9,489
Total revenues	$	396,450	$	1,042,172	$	407,242	$	47,727	$	1,893,591

Total revenues	$	396,450	$	1,042,172	$	407,242	$	47,727	$	1,893,591
Less:
Interest and other income	—		—		—		9,489		9,489
Property-level operating expenses	13,754		727,823		124,828		—		866,405
Office building services costs	—		—		1,148		—		1,148
Segment NOI	$	382,696	$	314,349	$	281,266	$	38,238	1,016,549
Interest and other income									9,489
Interest expense									(220,988)
Depreciation and amortization									(462,107)
General, administrative and professional fees									(83,839)
Loss on extinguishment of debt, net									(4,427)
Merger-related expenses and deal costs									(6,780)
Other									11,458
Loss from unconsolidated entities									(3,475)
Gain on real estate dispositions									24,597
Income tax benefit									59,009
Income from continuing operations									339,486
Net income									339,486
Net income attributable to noncontrolling interests									3,172
Net income attributable to common stockholders									$	336,314

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


	For the Three Months Ended June 30,						For the Six Months Ended June 30,
	2020		2019		2020		2019
	(In thousands)
Capital expenditures:
Triple-net leased properties	$	13,483	$	5,656	$	21,168	$	14,247
Senior living operations	30,932		37,494		82,816		64,453
Office operations	66,415		252,792		207,402		301,946
Total capital expenditures	$	110,830	$	295,942	$	311,386	$	380,646

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 June 30,						For the Six Months Ended June 30,
	2020		2019		2020		2019
	(In thousands)
Revenues:
United States	$	843,324	$	896,083	$	1,751,518	$	1,784,364
Canada	93,190		47,723		190,160		95,320
United Kingdom	6,684		6,911		13,574		13,907
Total revenues	$	943,198	$	950,717	$	1,955,252	$	1,893,591


	As of June 30, 2020		As of December 31, 2019
	(In thousands)
Net real estate property:
United States	$	17,852,855	$	18,631,352
Canada	2,796,358		2,830,850
United Kingdom	243,529		266,885
Total net real estate property	$	20,892,742	$	21,729,087