SEGMENT INFORMATION

6 Months Ended

Jun. 30, 2022

Segment Reporting [Abstract]

SEGMENT INFORMATION

NOTE 16—SEGMENT INFORMATION

As of June 30, 2022, we operated through three reportable business segments: triple-net leased properties, SHOP and office operations. In our triple-net leased properties reportable business 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 SHOP reportable business 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 reportable business segment, we primarily acquire, own, develop, lease and manage MOBs and life science, research and innovation centers throughout the United States. Information provided for “non-segment” 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 “non-segment” 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 NOI and related measures. We define NOI as total revenues, less interest and other income, property-level operating expenses and office building and other services costs. We consider 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, 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. See “Non-GAAP

Financial Measures” included elsewhere in this Quarterly Report on Form 10-Q for additional disclosure and reconciliations of net income attributable to common stockholders, as computed in accordance with GAAP, to NOI.

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 (dollars in thousands):

	For the Three Months Ended June 30, 2022
	SHOP		Office Operations		Triple-Net Leased Properties		Non-Segment		Total
Revenues:
Rental income	$	—	$	199,241	$	149,397	$	—	$	348,638
Resident fees and services	658,056		—		—		—		658,056
Office building and other services revenue	—		670		—		3,656		4,326
Income from loans and investments	—		—		—		10,752		10,752
Interest and other income	—		—		—		1,166		1,166
Total revenues	$	658,056	$	199,911	$	149,397	$	15,574	$	1,022,938
Total revenues	$	658,056	$	199,911	$	149,397	$	15,574	$	1,022,938
Less:
Interest and other income	—		—		—		1,166		1,166
Property-level operating expenses	507,446		63,328		3,585		—		574,359
Office building and other services costs	—		—		—		1,410		1,410
NOI	$	150,610	$	136,583	$	145,812	$	12,998	446,003
Interest and other income									1,166
Interest expense									(113,951)
Depreciation and amortization									(283,075)
General, administrative and professional fees									(32,915)
Loss on extinguishment of debt, net									(7)
Transaction expenses and deal costs									(13,078)
Allowance on loans receivable and investments									62
Other									(48,116)
Loss from unconsolidated entities									(1,047)
Loss on real estate dispositions									(34)
Income tax benefit									3,790
Loss from continuing operations									(41,202)
Net loss									(41,202)
Net income attributable to noncontrolling interests									1,214
Net loss attributable to common stockholders									$	(42,416)

	For the Three Months Ended June 30, 2021
	SHOP		Office Operations		Triple-Net Leased Properties		Non-Segment		Total
Revenues:
Rental income	$	—	$	200,388	$	159,223	$	—	$	359,611
Resident fees and services	535,952		—		—		—		535,952
Office building and other services revenue	—		2,540		—		2,841		5,381
Income from loans and investments	—		—		—		17,665		17,665
Interest and other income	—		—		—		585		585
Total revenues	$	535,952	$	202,928	$	159,223	$	21,091	$	919,194
Total revenues	$	535,952	$	202,928	$	159,223	$	21,091	$	919,194
Less:
Interest and other income	—		—		—		585		585
Property-level operating expenses	424,813		64,950		4,432		—		494,195
Office building and other services costs	—		658		—		—		658
NOI	$	111,139	$	137,320	$	154,791	$	20,506	423,756
Interest and other income									585
Interest expense									(110,051)
Depreciation and amortization									(250,700)
General, administrative and professional fees									(30,588)
Gain on extinguishment of debt, net									74
Transaction expenses and deal costs									(721)
Allowance on loans receivable and investments									59
Other									13,490
Income from unconsolidated entities									4,767
Gain on real estate dispositions									41,258
Income tax expense									(3,641)
Income from continuing operations									88,288
Net income									88,288
Net income attributable to noncontrolling interests									1,897
Net income attributable to common stockholders									$	86,391

	For the Six Months Ended June 30, 2022
	SHOP		Office Operations		Triple-Net Leased Properties		Non-Segment		Total
Revenues:
Rental income	$	—	$	399,781	$	300,958	$	—	$	700,739
Resident fees and services	1,309,177		—		—		—		1,309,177
Office building and other services revenue	—		1,287		—		6,988		8,275
Income from loans and investments	—		—		—		20,599		20,599
Interest and other income	—		—		—		1,702		1,702
Total revenues	$	1,309,177	$	401,068	$	300,958	$	29,289	$	2,040,492
Total revenues	$	1,309,177	$	401,068	$	300,958	$	29,289	$	2,040,492
Less:
Interest and other income	—		—		—		1,702		1,702
Property-level operating expenses	982,976		126,511		7,593		—		1,117,080
Office building and other services costs	—		—		—		2,723		2,723
NOI	$	326,201	$	274,557	$	293,365	$	24,864	918,987
Interest and other income									1,702
Interest expense									(224,745)
Depreciation and amortization									(572,139)
General, administrative and professional fees									(75,913)
Loss on extinguishment of debt, net									(7)
Transaction expenses and deal costs									(33,070)
Allowance on loans receivable and investments									116
Other									(20,926)
Loss from unconsolidated entities									(5,316)
Gain on real estate dispositions									2,421
Income tax benefit									8,280
Loss from continuing operations									(610)
Net loss									(610)
Net income attributable to noncontrolling interests									3,074
Net loss attributable to common stockholders									$	(3,684)

	For the Six Months Ended June 30, 2021
	SHOP		Office Operations		Triple-Net Leased Properties		Non-Segment		Total
Revenues:
Rental income	$	—	$	397,843	$	319,108	$	—	$	716,951
Resident fees and services	1,064,602		—		—		—		1,064,602
Office building and other services revenue	—		4,884		—		5,447		10,331
Income from loans and investments	—		—		—		36,675		36,675
Interest and other income	—		—		—		926		926
Total revenues	$	1,064,602	$	402,727	$	319,108	$	43,048	$	1,829,485
Total revenues	$	1,064,602	$	402,727	$	319,108	$	43,048	$	1,829,485
Less:
Interest and other income	—		—		—		926		926
Property-level operating expenses	842,642		128,896		9,257		—		980,795
Office building and other services costs	—		1,276		—		—		1,276
NOI	$	221,960	$	272,555	$	309,851	$	42,122	846,488
Interest and other income									926
Interest expense									(220,818)
Depreciation and amortization									(564,848)
General, administrative and professional fees									(70,897)
Loss on extinguishment of debt, net									(27,016)
Transaction expenses and deal costs									(5,338)
Allowance on loans receivable and investments									8,961
Other									22,918
Income from unconsolidated entities									4,517
Gain on real estate dispositions									43,791
Income tax expense									(5,794)
Income from continuing operations									32,890
Net income									32,890
Net income attributable to noncontrolling interests									3,708
Net income attributable to common stockholders									$	29,182

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

	For the Three Months Ended June 30,				For the Six Months Ended June 30,
Capital Expenditures:	2022		2021		2022		2021
SHOP	$	55,540	$	51,156	$	198,943	$	99,873
Office operations	85,752		56,667		359,826		88,213
Triple-net leased properties	1,774		8,921		2,408		17,139
Total capital expenditures	$	143,066	$	116,744	$	561,177	$	205,225

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 (dollars in thousands):

	For the Three Months Ended June 30,				For the Six Months Ended June 30,
	2022		2021		2022		2021
Revenues:
United States	$	903,057	$	803,242	$	1,800,990	$	1,601,010
Canada	112,809		108,342		224,953		213,375
United Kingdom	7,072		7,610		14,549		15,100
Total revenues	$	1,022,938	$	919,194	$	2,040,492	$	1,829,485

	As of June 30, 2022		As of December 31, 2021
Net Real Estate Property:
United States	$	18,581,304	$	18,562,738
Canada	2,927,708		3,007,008
United Kingdom	216,771		247,092
Total net real estate property	$	21,725,783	$	21,816,838