Segment Reporting

6 Months Ended

Jun. 30, 2020

Segment Reporting [Abstract]

Segment Reporting

Segment Reporting

We invest in seniors housing and health care real estate. We evaluate our business and make resource allocations on our three operating segments: Seniors Housing Operating, Triple-net and Outpatient Medical. Our Seniors Housing Operating properties include seniors apartments, assisted living, independent living/continuing care retirement communities, independent supportive living communities (Canada), care homes with and without nursing (U.K.) and combinations thereof that are owned and/or operated through RIDEA structures (see Note 19). Our Triple-net properties include the property types described above as well as long-term/post-acute care facilities. Under the Triple-net segment, we invest in seniors housing and health care real estate through acquisition and financing of primarily single tenant properties. Properties acquired are primarily leased under triple-net leases and we are not involved in the management of the property. Our Outpatient Medical properties are typically leased to multiple tenants and generally require a certain level of property management by us.

We evaluate performance based upon consolidated NOI of each segment. We define NOI as total revenues, including tenant reimbursements, less property operating expenses. We believe NOI provides investors relevant and useful information as it measures the operating performance of our properties at the property level on an unleveraged basis. We use NOI to make decisions about resource allocations and to assess the property level performance of our properties.  

Non-segment revenue consists mainly of interest income on certain non-real estate investments and other income. Non-segment assets consist of corporate assets including cash, deferred loan expenses and corporate offices and equipment among others. Non-property specific revenues and expenses are not allocated to individual segments in determining NOI.

The accounting policies of the segments are the same as those described in the summary of significant accounting policies (see Note 2 to the financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2019). The results of operations for all acquisitions described in Note 3 are included in our consolidated results of operations from the acquisition dates and are components of the appropriate segments. There are no intersegment sales or transfers.

Summary information for the reportable segments (which excludes unconsolidated entities) is as follows (in thousands): 

Three Months Ended June 30, 2020:	Seniors Housing Operating		Triple-net		Outpatient Medical		Non-segment / Corporate		Total
Resident fees and services	$	769,560	$	—	$	—	$	—	$	769,560
Rental income	—		217,492		178,813		—		396,305
Interest income	88		15,520		461		—		16,069
Other income	4,002		607		1,557		375		6,541
Total revenues	773,650		233,619		180,831		375		1,188,475
Property operating expenses	595,513		13,563		51,688		—		660,764
Consolidated net operating income	178,137		220,056		129,143		375		527,711
Depreciation and amortization	139,163		58,138		68,070		—		265,371
Interest expense	14,029		2,746		4,326		105,256		126,357
General and administrative expenses	—		—		—		34,062		34,062
Loss (gain) on derivatives and financial instruments, net	—		1,434		—		—		1,434
Loss (gain) on extinguishment of debt, net	(492)		—		741		—		249
Provision for loan losses	—		1,451		(29)		—		1,422
Impairment of assets	75,151		—		—		—		75,151
Other expenses	5,251		3,500		6,456		4,204		19,411
Income (loss) from continuing operations before income taxes and other items	(54,965)		152,787		49,579		(143,147)		4,254
Income tax (expense) benefit	—		—		—		(2,233)		(2,233)
Income (loss) from unconsolidated entities	(6,787)		6,403		1,716		—		1,332
Gain (loss) on real estate dispositions, net	14,465		2,148		139,250		—		155,863
Income (loss) from continuing operations	(47,287)		161,338		190,545		(145,380)		159,216
Net income (loss)	$	(47,287)	$	161,338	$	190,545	$	(145,380)	$	159,216
Total assets	$	14,915,588	$	9,189,707	$	7,434,364	$	1,622,993	$	33,162,652

Three Months Ended June 30, 2019:	Seniors Housing Operating		Triple-net		Outpatient Medical		Non-segment / Corporate		Total
Resident fees and services	$	914,085	$	—	$	—	$	—	$	914,085
Rental income	—		222,362		163,224		—		385,586
Interest income	—		17,118		238		—		17,356
Other income	1,444		1,278		(97)		454		3,079
Total revenues	915,529		240,758		163,365		454		1,320,106
Property operating expenses	637,317		12,823		50,987		—		701,127
Consolidated net operating income	278,212		227,935		112,378		454		618,979
Depreciation and amortization	136,551		56,056		55,445		—		248,052
Interest expense	17,572		3,225		3,386		117,153		141,336
General and administrative expenses	—		—		—		33,741		33,741
Loss (gain) on derivatives and financial instruments, net	—		1,913		—		—		1,913
Impairment of assets	—		(940)		10,879		—		9,939
Other expenses	11,857		5,560		(4)		4,215		21,628
Income (loss) from continuing operations before income taxes and other items	112,232		162,121		42,672		(154,655)		162,370
Income tax (expense) benefit	—		—		—		(1,599)		(1,599)
Income (loss) from unconsolidated entities	(17,453)		6,578		1,826		—		(9,049)
Gain (loss) on real estate dispositions, net	(550)		(1,130)		(2)		—		(1,682)
Income (loss) from continuing operations	94,229		167,569		44,496		(156,254)		150,040
Net income (loss)	$	94,229	$	167,569	$	44,496	$	(156,254)	$	150,040

Six Months Ended June 30, 2020	Seniors Housing Operating		Triple-net		Outpatient Medical		Non-segment / Corporate		Total
Resident fees and services	$	1,619,532	$	—	$	—	$	—	$	1,619,532
Rental income	—		408,877		377,388		—		786,265
Interest income	192		30,191		927		—		31,310
Other income	5,054		2,280		1,845		791		9,970
Total revenues	1,624,778		441,348		380,160		791		2,447,077
Property operating expenses	1,203,384		26,865		112,296		—		1,342,545
Consolidated net operating income	421,394		414,483		267,864		791		1,104,532
Depreciation and amortization	285,937		115,832		138,403		—		540,172
Interest expense	30,463		5,598		9,134		223,169		268,364
General and administrative expenses	—		—		—		69,543		69,543
Loss (gain) on derivatives and financial instruments, net	—		9,085		—		—		9,085
Loss (gain) on extinguishment of debt, net	(492)		—		741		—		249
Provision for loan losses	—		8,523		(29)		—		8,494
Impairment of assets	78,646		24,332		—		—		102,978
Other expenses	8,240		4,013		7,463		5,987		25,703
Income (loss) from continuing operations before income taxes and other items	18,600		247,100		112,152		(297,908)		79,944
Income tax (expense) benefit	—		—		—		(7,675)		(7,675)
Income (loss) from unconsolidated entities	(17,811)		12,199		3,252		—		(2,360)
Gain (loss) on real estate dispositions, net	14,316		51,785		352,586		—		418,687
Income (loss) from continuing operations	15,105		311,084		467,990		(305,583)		488,596
Net income (loss)	$	15,105	$	311,084	$	467,990	$	(305,583)	$	488,596

Six Months Ended June 30, 2019	Seniors Housing Operating			Triple-net			Outpatient Medical			Non-segment / Corporate		Total
Resident fees and services	$	1,782,370		$	—		$	—		$	—	$	1,782,370
Rental income	—			454,394			312,276			—		766,670
Interest income	—			32,064			411			—		32,475
Other income	5,545			2,541			139			2,611		10,836
Total revenues	1,787,915			488,999			312,826			2,611		2,592,351
Property operating expenses	1,245,003			27,778			99,153			—		1,371,934
Consolidated net operating income	542,912			461,221			213,673			2,611		1,220,417
Depreciation and amortization	268,126			117,404			106,454			—		491,984
Interest expense	35,823			6,665			6,734			237,346		286,568
General and administrative expenses	—			—			—			69,023		69,023
Loss (gain) on derivatives and financial instruments, net	—			(574)			—			—		(574)
Loss (gain) on extinguishment of debt, net	—			—			—			15,719		15,719
Provision for loan losses	—		18.69	18,690		—	—		18.69	—		18,690
Impairment of assets	—			(940)			10,879			—		9,939
Other expenses	14,803			8,589			750			6,242		30,384
Income (loss) from continuing operations before income taxes and other items	224,160			311,387			88,856			(325,719)		298,684
Income tax (expense) benefit	—			—			—			(3,821)		(3,821)
Income (loss) from unconsolidated entities	(34,033)			12,236			3,549			—		(18,248)
Gain (loss) on real estate dispositions, net	(710)			166,444			(7)			—		165,727
Income (loss) from continuing operations	189,417			490,067			92,398			(329,540)		442,342
Net income (loss)	$	189,417		$	490,067		$	92,398		$	(329,540)	$	442,342

Our portfolio of properties and other investments are located in the United States, the United Kingdom and Canada. Revenues and assets are attributed to the country in which the property is physically located. The following is a summary of geographic information for the periods presented (dollars in thousands): 

	Three Months Ended								Six Months Ended
	June 30, 2020				June 30, 2019				June 30, 2020				June 30, 2019
Revenues:	Amount(1)		%		Amount		%		Amount(1)		%		Amount		%
United States	$	973,772	81.9	%	$	1,092,376	82.8	%	$	2,001,553	81.8	%	$	2,136,042	82.4	%
United Kingdom	109,437		9.2	%	112,647		8.5	%	227,319		9.3	%	225,065		8.7	%
Canada	105,266		8.9	%	115,083		8.7	%	218,205		8.9	%	231,244		8.9	%
Total	$	1,188,475	100.0	%	$	1,320,106	100.0	%	$	2,447,077	100.0	%	$	2,592,351	100.0	%
	As of
	June 30, 2020				December 31, 2019
Assets:	Amount		%		Amount		%
United States	$	27,655,745	83.4	%	$	27,513,911	82.4	%
United Kingdom	3,175,033		9.6	%	3,405,388		10.2	%
Canada	2,331,874		7.0	%	2,461,452		7.4	%
Total	$	33,162,652	100.0	%	$	33,380,751	100.0	%

⁽¹⁾ The United States, United Kingdom and Canada represent 77%, 10% and 13%, respectively, of our resident fees and services revenue stream for the three and six months ended June 30, 2020.