SEGMENT INFORMATION

3 Months Ended

Mar. 31, 2012

SEGMENT INFORMATION

SEGMENT INFORMATION

NOTE 15—SEGMENT INFORMATION

        As of March 31, 2012, we operated through three reportable business segments: triple-net leased properties, senior living operations and MOB operations. Our triple-net leased properties segment consists of acquiring and owning seniors housing and healthcare properties in the United States and leasing those properties to healthcare operating companies under "triple-net" or "absolute-net" leases that obligate the tenants to pay all property-related expenses. Our senior living operations segment consists of investments in seniors housing communities located in the United States and Canada for which we engage independent third parties, such as Atria and Sunrise, to manage the operations. Our MOB operations segment primarily consists of acquiring, owning, developing, leasing and managing MOBs. Information provided for "all other" includes revenues such as income from loans and investments and other miscellaneous income and various corporate-level expenses not directly attributable to our three reportable business segments. Assets included in "all other" consist primarily of corporate assets, including cash, restricted cash, deferred financing costs, loans receivable and miscellaneous accounts receivable.

        We evaluate performance of the combined properties in each reportable business segment based on segment profit, which we define as NOI adjusted for gain/loss from unconsolidated entities. We define NOI as total revenues, less interest and other income, property-level operating expenses and medical office building services costs. We believe that net income, as defined by GAAP, is the most appropriate earnings measurement. However, we believe that segment profit serves as a useful supplement to net income 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 and between periods on a consistent basis. Segment profit should not be considered as an alternative to net income (determined in accordance with GAAP) as an indicator of our financial performance. In order to facilitate a clear understanding of our consolidated historical operating results, segment profit should be examined in conjunction with net income 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, and 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 March 31, 2012:

	Triple-Net Leased Properties		Senior Living Operations		MOB Operations		All Other		Total
	(In thousands)
Revenues:
Rental income	$	209,509	$	—	$	64,696	$	—	$	274,205
Resident fees and services		—		285,795		—		—		285,795
Medical office building and other services revenue		1,109		—		4,499		—		5,608
Income from loans and investments		—		—		—		8,036		8,036
Interest and other income		—		—		—		50		50
Total revenues	$	210,618	$	285,795	$	69,195	$	8,086	$	573,694
Total revenues	$	210,618	$	285,795	$	69,195	$	8,086	$	573,694
Less:
Interest and other income		—		—		—		50		50
Property-level operating expenses		—		195,666		21,090		—		216,756
Medical office building services costs		—		—		2,988		—		2,988
Segment NOI		210,618		90,129		45,117		8,036		353,900
Income from unconsolidated entities		266		—		51		—		317
Segment profit	$	210,884	$	90,129	$	45,168	$	8,036		354,217
Interest and other income										50
Interest expense										(70,668	)
Depreciation and amortization										(163,197	)
General, administrative and professional fees										(22,200	)
Loss on extinguishment of debt										(29,544	)
Merger-related expenses and deal costs										(7,981	)
Other										(1,576	)
Income tax expense										(11,338	)
Discontinued operations										42,329
Net income									$	90,092

        For the three months ended March 31, 2011:

	Triple-Net Leased Properties		Senior Living Operations		MOB Operations			All Other		Total
	(In thousands)
Revenues:
Rental income	$	116,574	$	—	$	24,236		$	—	$	140,810
Resident fees and services		—		114,502		—			—		114,502
Medical office building and other services revenue		—		—		6,957			—		6,957
Income from loans and investments		—		—		—			6,085		6,085
Interest and other income		—		—		—			78		78
Total revenues	$	116,574	$	114,502	$	31,193		$	6,163	$	268,432
Total revenues	$	116,574	$	114,502	$	31,193		$	6,163	$	268,432
Less:
Interest and other income		—		—		—			78		78
Property-level operating expenses		—		78,111		8,676			—		86,787
Medical office building services costs		—		—		5,536			—		5,536
Segment NOI		116,574		36,391		16,981			6,085		176,031
Loss from unconsolidated entities		—		—		(170	)		—		(170	)
Segment profit	$	116,574	$	36,391	$	16,811		$	6,085		175,861
Interest and other income											78
Interest expense											(41,740	)
Depreciation and amortization											(51,314	)
General, administrative and professional fees											(14,832	)
Loss on extinguishment of debt											(16,520	)
Merger-related expenses and deal costs											(6,449	)
Other											(1	)
Income tax benefit											3,197
Discontinued operations											766
Net income										$	49,046

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

	For the Three Months Ended March 31,
	2012		2011
	(In thousands)
Capital expenditures:
Triple-net leased properties	$	4,863	$	579
Senior living operations		17,166		1,965
MOB operations		19,764		5,419
Total capital expenditures	$	41,793	$	7,963

        Our portfolio of properties and mortgage loan and other investments are located in the United States and Canada. 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 March 31,
	2012		2011
	(In thousands)
Revenues:
United States	$	550,093	$	245,913
Canada		23,601		22,519
Total revenues	$	573,694	$	268,432

	As of March 31, 2012		As of December 31, 2011
	(In thousands)
Net real estate property:
United States	$	15,340,181	$	15,510,824
Canada		406,838		402,908
Total net real estate property	$	15,747,019	$	15,913,732