Segment Disclosures (Tables)

3 Months Ended

Mar. 31, 2013

Information of revenue of reportable segment

Summary information for the reportable segments follows (in thousands):

For the three months ended March 31, 2013:

Segments	Rental Revenues(1)		Resident Fees and Services		Interest Income		Investment Management Fee Income		Total Revenues		NOI(2)		Adjusted NOI(2) (Cash NOI)
Senior housing	$	149,091	$	36,891	$	2,401	$	—	$	188,383	$	161,591	$	143,193
Post-acute/skilled	136,103		—		9,985		—		146,088		135,456		116,158
Life science	73,330		—		—		1		73,331		59,947		56,340
Medical office	87,255		—		—		442		87,697		52,959		51,671
Hospital	20,770		—		—		—		20,770		19,882		19,432
Total	$	466,549	$	36,891	$	12,386	$	443	$	516,269	$	429,835	$	386,794

For the three months ended March 31, 2012:

Segments	Rental Revenues(1)		Resident Fees and Services		Interest Income		Investment Management Fee Income		Total Revenues		NOI(2)		Adjusted NOI(2) (Cash NOI)
Senior housing	$	113,500	$	36,179	$	282	$	—	$	149,961	$	128,065	$	114,648
Post-acute/skilled	133,673		—		280		—		133,953		133,473		112,848
Life science	71,830		—		—		1		71,831		58,946		59,104
Medical office	79,955		—		—		492		80,447		48,250		46,921
Hospital	19,378		—		257		—		19,635		18,448		17,893
Total	$	418,336	$	36,179	$	819	$	493	$	455,827	$	387,182	$	351,414

(1) Represents rental and related revenues, tenant recoveries and income from DFLs.

(2) NOI is a non-GAAP supplemental financial measure used to evaluate the operating performance of real estate. The Company defines NOI as rental and related revenues, including tenant recoveries, resident fees and services, and income from direct financing leases, less property level operating expenses. NOI excludes interest income, investment management fee income, interest expense, depreciation and amortization, general and administrative expenses, litigation settlement, impairments, impairment recoveries, other income, net, income taxes, equity income from and impairments of investments in unconsolidated joint ventures, and discontinued operations. The Company believes NOI provides relevant and useful information because it reflects only income and operating expense items that are incurred at the property level and presents them on an unleveraged basis. Adjusted NOI is calculated as NOI after eliminating the effects of straight-line rents, DFL accretion, amortization of above and below market lease intangibles, and lease termination fees. Adjusted NOI is sometimes referred to as “cash NOI.” The Company uses NOI and adjusted NOI to make decisions about resource allocations and to assess and compare property level performance. The Company believes that net income is the most directly comparable GAAP measure to NOI. NOI should not be viewed as an alternative measure of operating performance to net income as defined by GAAP because it does not reflect the aforementioned excluded items. Further, the Company’s definition of NOI may not be comparable to the definition used by other REITs, as those companies may use different methodologies for calculating NOI.

Reconciliation of reported net income to NOI and adjusted NOI

The following is a reconciliation of reported net income to NOI and adjusted NOI (in thousands):

	Three Months Ended March 31,
	2013			2012
Net income	$	233,784		$	196,564
Interest income	(12,386		)	(819		)
Investment management fee income	(443		)	(493		)
Interest expense	109,351			103,752
Depreciation and amortization	104,717			85,280
General and administrative	20,744			20,089
Other income, net	(12,012		)	(436		)
Income taxes	881			(709		)
Equity income from unconsolidated joint ventures	(14,801		)	(13,675		)
Total discontinued operations	—			(2,371		)
NOI	429,835			387,182
Straight-line rents	(18,793		)	(9,927		)
DFL accretion	(24,170		)	(25,622		)
Amortization of above and below market lease intangibles, net	(78		)	(697		)
Lease termination fees	—			(148		)
NOI adjustments related to discontinued operations	—			626
Adjusted NOI	$	386,794		$	351,414

Reconciliation of company's assets to total assets

The Company’s total assets by segment were (in thousands):

	March 31,			December 31,
Segments	2013			2012
Senior housing	$	7,739,727		$	7,658,612
Post-acute/skilled nursing	6,098,982			6,080,826
Life science	3,943,454			3,932,397
Medical office	2,664,053			2,661,394
Hospital	729,826			724,999
Gross segment assets	21,176,042			21,058,228
Accumulated depreciation and amortization	(2,079,778		)	(1,978,597		)
Net segment assets	19,096,264			19,079,631
Other non-segment assets	636,467			835,924
Total assets	$	19,732,731		$	19,915,555