XML 35 R23.htm IDEA: XBRL DOCUMENT v3.23.2
SEGMENT INFORMATION
 6 Months Ended
Jun. 30, 2023
Segment Reporting [Abstract]  
SEGMENT INFORMATION
NOTE 15—SEGMENT INFORMATION

As of June 30, 2023, we operated through three reportable business segments: triple-net leased properties, SHOP and outpatient medical and research portfolio. 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 outpatient medical and research portfolio reportable business segment, we primarily acquire, own, develop, lease and manage outpatient medical buildings and research centers throughout the United States. Information provided for “non-segment” includes management fees and promote revenues, net of expenses related to our third-party institutional capital management business, income from loans and investments 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 maker evaluates performance of the combined properties in each reportable business segment and determines how to allocate resources to those segments, in significant part, based on NOI and related measures for each segment. We define NOI as total revenues, less interest and other income, property-level operating expenses and third party capital management expenses. 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, 2023
SHOPOutpatient Medical and Research PortfolioTriple-Net
Leased
Properties		Non-SegmentTotal
Revenues:     
Rental income$— $215,807 $154,355 $— $370,162 
Resident fees and services724,614 — — — 724,614 
Third party capital management revenues— 559 — 3,437 3,996 
Income from loans and investments— — — 6,554 6,554 
Interest and other income— — — 1,032 1,032 
Total revenues$724,614 $216,366 $154,355 $11,023 $1,106,358 
Total revenues$724,614 $216,366 $154,355 $11,023 $1,106,358 
Less:     
Interest and other income— — — 1,032 1,032 
Property-level operating expenses547,110 72,171 3,537 — 622,818 
Third party capital management expenses— — — 1,4361,436 
NOI$177,504 $144,195 $150,818 $8,555 481,072 
Interest and other income    1,032 
Interest expense    (143,265)
Depreciation and amortization    (304,689)
General, administrative and professional fees    (34,399)
Gain on extinguishment of debt, net6,801 
Transaction expenses and deal costs    (3,069)
Allowance on loans receivable and investments12,065 
Gain on foreclosure of real estate29,127 
Other    17,959 
Income from unconsolidated entities31,254 
Gain on real estate dispositions1,405 
Income tax benefit    9,773 
Income from continuing operations    105,066 
Net income105,066 
Net income attributable to noncontrolling interests1,613 
Net income attributable to common stockholders$103,453 
For the Three Months Ended June 30, 2022
SHOPOutpatient Medical and Research PortfolioTriple-Net
Leased
Properties		Non-SegmentTotal
Revenues:     
Rental income$— $199,241 $149,397 $— $348,638 
Resident fees and services658,056 — — — 658,056 
Third party capital management revenues— 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 expenses507,446 63,328 3,585 — 574,359 
Third party capital management expenses— — — 1,410 1,410 
NOI$150,610 $136,583 $145,812 $12,998 446,003 
Interest and other income    1,166 
Interest expense    (113,951)
Depreciation and amortization    (283,075)
General, administrative and professional fees    (32,915)
Loss on extinguishment of debt, net(7)
Transaction expenses and deal costs    (13,078)
Allowance on loans receivable and investments62 
Other    (48,116)
Loss from unconsolidated entities(1,047)
Loss on real estate dispositions(34)
Income tax benefit    3,790 
Loss from continuing operations    (41,202)
Net loss(41,202)
Net income attributable to noncontrolling interests1,214 
Net loss attributable to common stockholders$(42,416)
For the Six Months Ended June 30, 2023
SHOPOutpatient Medical and Research PortfolioTriple-Net
Leased
Properties		Non-SegmentTotal
Revenues:     
Rental income$— $418,811 $304,094 $— $722,905 
Resident fees and services1,429,607 — — — 1,429,607 
Third party capital management revenues— 1,187 — 6,986 8,173 
Income from loans and investments— — — 20,143 20,143 
Interest and other income— — — 2,775 2,775 
Total revenues$1,429,607 $419,998 $304,094 $29,904 $2,183,603 
Total revenues$1,429,607 $419,998 $304,094 $29,904 $2,183,603 
Less:     
Interest and other income— — — 2,775 2,775 
Property-level operating expenses1,084,332 139,084 7,333 — 1,230,749 
Third party capital management expenses— — — 3,142 3,142 
NOI$345,275 $280,914 $296,761 $23,987 946,937 
Interest and other income    2,775 
Interest expense    (271,340)
Depreciation and amortization    (586,808)
General, administrative and professional fees    (79,197)
Gain on extinguishment of debt, net6,801 
Transaction expenses and deal costs    (4,455)
Allowance on loans receivable and investments20,129 
Gain on foreclosure of real estate29,127 
Other    10,197 
Income from unconsolidated entities25,631 
Gain on real estate dispositions11,606 
Income tax benefit    12,575 
Income from continuing operations123,978 
Net income123,978 
Net income attributable to noncontrolling interests3,008 
Net income attributable to common stockholders    $120,970 
For the Six Months Ended June 30, 2022
SHOPOutpatient Medical and Research PortfolioTriple-Net
Leased
Properties		Non-SegmentTotal
Revenues:     
Rental income$— $399,781 $300,958 $— $700,739 
Resident fees and services1,309,177 — — — 1,309,177 
Third party capital management revenues— 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 expenses982,976 126,511 7,593 — 1,117,080 
Third party capital management expenses— — 2,723 2,723 
NOI$326,201 $274,557 $293,365 $24,864 918,987 
Interest and other income    1,702 
Interest expense    (224,745)
Depreciation and amortization    (572,139)
General, administrative and professional fees    (75,913)
Loss on extinguishment of debt, net(7)
Transaction expenses and deal costs    (33,070)
Allowance on loans receivable and investments116 
Other    (20,926)
Loss from unconsolidated entities(5,316)
Gain on real estate dispositions2,421 
Income tax benefit    8,280 
Loss from continuing operations    (610)
Net loss(610)
Net income attributable to noncontrolling interests3,074 
Net loss attributable to common stockholders$(3,684)
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,
2023202220232022
Capital Expenditures:
SHOP$87,548 $55,540 $155,680 $198,943 
Outpatient medical and research portfolio39,814 85,752 80,618 359,826 
Triple-net leased properties2,039 1,774 5,759 2,408 
Total capital expenditures$129,401 $143,066 $242,057 $561,177 
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,
2023202220232022
Revenues:
United States$983,749 $903,057 $1,941,875 $1,800,990 
Canada115,324 112,809 227,446 224,953 
United Kingdom7,285 7,072 14,282 14,549 
Total revenues$1,106,358 $1,022,938 $2,183,603 $2,040,492 

As of June 30, 2023As of December 31, 2022
Net Real Estate Property:
United States$19,423,245 $18,168,224 
Canada2,845,233 2,782,350 
United Kingdom214,631 209,876 
Total net real estate property$22,483,109 $21,160,450