SEGMENT INFORMATION

9 Months Ended

Sep. 30, 2021

Segment Reporting [Abstract]

SEGMENT INFORMATION

NOTE 16—SEGMENT INFORMATION

As of September 30, 2021, 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 life science, 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 September 30, 2021
	Triple-Net Leased Properties		Senior Living Operations		Office Operations		All Other		Total
	(In thousands)
Revenues:
Rental income	$	181,379	$	—	$	201,673	$	—	$	383,052
Resident fees and services	—		558,039		—		—		558,039
Office building and other services revenue	—		—		2,872		2,969		5,841
Income from loans and investments	—		—		—		28,729		28,729
Interest and other income	—		—		—		417		417
Total revenues	$	181,379	$	558,039	$	204,545	$	32,115	$	976,078
Total revenues	$	181,379	$	558,039	$	204,545	$	32,115	$	976,078
Less:
Interest and other income	—		—		—		417		417
Property-level operating expenses	3,268		453,659		66,401		—		523,328
Office building services costs	—		—		522		—		522
Segment NOI	$	178,111	$	104,380	$	137,622	$	31,698	451,811
Interest and other income									417
Interest expense									(108,816)
Depreciation and amortization									(313,596)
General, administrative and professional fees									(30,259)
Loss on extinguishment of debt, net									(29,792)
Merger-related expenses and deal costs									(22,662)
Allowance on loans receivable and investments									60
Other									(33,673)
Income from unconsolidated entities									2,772
Gain on real estate dispositions									150,292
Income tax expense									(3,780)
Income from continuing operations									62,774
Net income									62,774
Net income attributable to noncontrolling interests									2,094
Net income attributable to common stockholders									$	60,680

        

	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 expenses	5,398		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									(32,081)
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									(5,681)
Income from unconsolidated entities									865
Gain on real estate dispositions									12,622
Income tax benefit									3,195
Income from continuing operations									13,737
Net income									13,737
Net income attributable to noncontrolling interests									986
Net income attributable to common stockholders									$	12,751