XML 35 R23.htm IDEA: XBRL DOCUMENT v3.20.2
SEGMENT INFORMATION
 9 Months Ended
Sep. 30, 2020
Segment Reporting [Abstract]  
SEGMENT INFORMATION
NOTE 15—SEGMENT INFORMATION

    As of September 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/A.

    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 September 30, 2020
Triple-Net
Leased
Properties		Senior
Living
Operations		Office
Operations		All
Other		Total
 (In thousands)
Revenues:     
Rental income$156,136 $— $198,376 $— $354,512 
Resident fees and services— 541,322 — — 541,322 
Office building and other services revenue— — 2,440 1,428 3,868 
Income from loans and investments— — — 18,666 18,666 
Interest and other income— — — 572 572 
Total revenues$156,136 $541,322 $200,816 $20,666 $918,940 
Total revenues$156,136 $541,322 $200,816 $20,666 $918,940 
Less:     
Interest and other income— — — 572 572 
Property-level operating expenses5,398 422,653 66,934 — 494,985 
Office building services costs— — 557 — 557 
Segment NOI$150,738 $118,669 $133,325 $20,094 422,826 
Interest and other income    572 
Interest expense    (115,505)
Depreciation and amortization    (249,366)
General, administrative and professional fees    (34,228)
Loss on extinguishment of debt, net(7,386)
Merger-related expenses and deal costs    (11,325)
Allowance on loans receivable and investments(4,999)
Other    (3,534)
Income from unconsolidated entities865 
Gain on real estate dispositions12,622 
Income tax benefit    3,195 
Income from continuing operations    13,737 
Net income13,737 
Net income attributable to noncontrolling interests986 
Net income attributable to common stockholders$12,751 
For the Three Months Ended September 30, 2019
Triple-Net
Leased
Properties		Senior
Living
Operations		Office
Operations		All
Other		Total
 (In thousands)
Revenues:     
Rental income$193,383 $— $214,939 $— $408,322 
Resident fees and services— 541,090 — — 541,090 
Office building and other services revenue— — 2,059 900 2,959 
Income from loans and investments— — — 30,164 30,164 
Interest and other income— — — 620 620 
Total revenues$193,383 $541,090 $216,998 $31,684 $983,155 
Total revenues$193,383 $541,090 $216,998 $31,684 $983,155 
Less:     
Interest and other income— — — 620 620 
Property-level operating expenses6,338 388,011 67,144 — 461,493 
Office building services costs— — 627 — 627 
Segment NOI$187,045 $153,079 $149,227 $31,064 520,415 
Interest and other income    620 
Interest expense    (113,967)
Depreciation and amortization    (234,603)
General, administrative and professional fees    (40,530)
Loss on extinguishment of debt, net(37,434)
Merger-related expenses and deal costs    (4,304)
Other    (2,164)
Income from unconsolidated entities854 
Gain on real estate dispositions36 
Income tax expense    (2,005)
Income from continuing operations    86,918 
Net income86,918 
Net income attributable to noncontrolling interests
1,659 
Net income attributable to common stockholders$85,259 
For the Nine Months Ended September 30, 2020
Triple-Net Leased PropertiesSenior Living OperationsOffice OperationsAll OtherTotal
(In thousands)
Revenues:
Rental income$527,238 $— $599,696 $— $1,126,934 
Resident fees and services— 1,667,421 — — 1,667,421 
Office building and other services revenue— — 6,871 3,798 10,669 
Income from loans and investments— — — 62,203 62,203 
Interest and other income— — — 6,965 6,965 
Total revenues$527,238 $1,667,421 $606,567 $72,966 $2,874,192 
Total revenues$527,238 $1,667,421 $606,567 $72,966 $2,874,192 
Less:
Interest and other income— — — 6,965 6,965 
Property-level operating expenses17,004 1,265,362 192,192 — 1,474,558 
Office building services costs— — 1,827 — 1,827 
Segment NOI$510,234 $402,059 $412,548 $66,001 1,390,842 
Interest and other income6,965 
Interest expense(355,333)
Depreciation and amortization(847,797)
General, administrative and professional fees(106,747)
Loss on extinguishment of debt, net(7,386)
Merger-related expenses and deal costs(26,129)
Allowance on loans receivable and investments(34,654)
Other(10,624)
Loss from unconsolidated entities(15,861)
Gain on real estate dispositions240,101 
Income tax benefit95,855 
Income from continuing operations329,232 
Net income329,232 
Net income attributable to noncontrolling interests534 
Net income attributable to common stockholders$328,698 
For the Nine Months Ended September 30, 2019
Triple-Net Leased PropertiesSenior Living OperationsOffice OperationsAll OtherTotal
(In thousands)
Revenues:
Rental income$589,833 $— $618,555 $— $1,208,388 
Resident fees and services— 1,583,262 — — 1,583,262 
Office building and other services revenue— — 5,685 2,483 8,168 
Income from loans and investments— — — 66,819 66,819 
Interest and other income— — — 10,109 10,109 
Total revenues$589,833 $1,583,262 $624,240 $79,411 $2,876,746 
Total revenues$589,833 $1,583,262 $624,240 $79,411 $2,876,746 
Less:
Interest and other income— — — 10,109 10,109 
Property-level operating expenses20,092 1,115,834 191,972 — 1,327,898 
Office building services costs— — 1,775 — 1,775 
Segment NOI$569,741 $467,428 $430,493 $69,302 1,536,964 
Interest and other income10,109 
Interest expense(334,955)
Depreciation and amortization(696,710)
General, administrative and professional fees(124,369)
Loss on extinguishment of debt, net(41,861)
Merger-related expenses and deal costs(11,084)
Other9,294 
Loss from unconsolidated entities(2,621)
Gain on real estate dispositions24,633 
Income tax benefit57,004 
Income from continuing operations426,404 
Net income426,404 
Net income attributable to noncontrolling interests4,831 
Net income attributable to common stockholders$421,573 

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,
 2020201920202019
 (In thousands)
Capital expenditures:  
Triple-net leased properties$11,832 $13,558 $33,000 $27,805 
Senior living operations46,349 780,837 129,165 845,290 
Office operations112,432 94,396 319,834 396,342 
Total capital expenditures$170,613 $888,791 $481,999 $1,269,437 
    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 September 30,For the Nine Months Ended September 30,
 2020201920202019
 (In thousands)
Revenues:  
United States$817,949 $904,031 $2,569,467 $2,688,329 
Canada96,896 72,495 287,056 167,881 
United Kingdom4,095 6,629 17,669 20,536 
Total revenues$918,940 $983,155 $2,874,192 $2,876,746 

As of September 30, 2020As of December 31, 2019
 (In thousands)
Net real estate property:  
United States$17,874,378 $18,636,839 
Canada2,853,245 2,830,850 
United Kingdom250,789 266,885 
Total net real estate property$20,978,412 $21,734,573