Segment Reporting

3 Months Ended

Mar. 31, 2021

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, 2020). 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. All inter-segment transactions are eliminated.

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

Three Months Ended March 31, 2021:	Seniors Housing Operating		Triple-net		Outpatient Medical		Non-segment / Corporate		Total
Resident fees and services	$	723,464	$	—	$	—	$	—	$	723,464
Rental income	—		152,463		150,380		—		302,843
Interest income	1,119		14,922		3,538		—		19,579
Other income	1,819		1,097		2,305		955		6,176
Total revenues	726,402		168,482		156,223		955		1,052,062
Property operating expenses	555,968		12,841		46,863		1,654		617,326
Consolidated net operating income	170,434		155,641		109,360		(699)		434,736
Depreciation and amortization	132,586		56,667		55,173		—		244,426
Interest expense	11,418		1,882		4,015		105,827		123,142
General and administrative expenses	—		—		—		29,926		29,926
Loss (gain) on derivatives and financial instruments, net	—		1,934		—		—		1,934
Loss (gain) on extinguishment of debt, net	(4,643)		—		—		—		(4,643)
Provision for loan losses	251		853		279		—		1,383
Impairment of assets	4,604		18,964		—		—		23,568
Other expenses	3,459		4,983		712		1,840		10,994
Income (loss) from continuing operations before income taxes and other items	22,759		70,358		49,181		(138,292)		4,006
Income tax (expense) benefit	—		—		—		(3,943)		(3,943)
Income (loss) from unconsolidated entities	5,234		4,907		2,908		—		13,049
Gain (loss) on real estate dispositions, net	5,195		2,042		51,843		—		59,080
Income (loss) from continuing operations	33,188		77,307		103,932		(142,235)		72,192
Net income (loss)	$	33,188	$	77,307	$	103,932	$	(142,235)	$	72,192
Total assets	$	16,032,225	$	8,660,043	$	6,380,835	$	1,919,148	$	32,992,251

Three Months Ended March 31, 2020:	Seniors Housing Operating		Triple-net		Outpatient Medical		Non-segment / Corporate		Total
Resident fees and services	$	849,972	$	—	$	—	$	—	$	849,972
Rental income	—		191,385		198,575		—		389,960
Interest income	104		14,671		466		—		15,241
Other income	1,052		1,673		288		416		3,429
Total revenues	851,128		207,729		199,329		416		1,258,602
Property operating expenses	607,871		13,302		60,608		—		681,781
Consolidated net operating income	243,257		194,427		138,721		416		576,821
Depreciation and amortization	146,774		57,694		70,333		—		274,801
Interest expense	16,434		2,852		4,808		117,913		142,007
General and administrative expenses	—		—		—		35,481		35,481
Loss (gain) on derivatives and financial instruments, net	—		7,651		—		—		7,651
Provision for loan losses	—		7,072		—		—		7,072
Impairment of assets	3,495		24,332		—		—		27,827
Other expenses	2,989		513		1,007		1,783		6,292
Income (loss) from continuing operations before income taxes and other items	73,565		94,313		62,573		(154,761)		75,690
Income tax (expense) benefit	—		—		—		(5,442)		(5,442)
Income (loss) from unconsolidated entities	(11,024)		5,796		1,536		—		(3,692)
Gain (loss) on real estate dispositions, net	(149)		49,637		213,336		—		262,824
Income (loss) from continuing operations	62,392		149,746		277,445		(160,203)		329,380
Net income (loss)	$	62,392	$	149,746	$	277,445	$	(160,203)	$	329,380

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
	March 31, 2021				March 31, 2020
Revenues:	Amount(1)		%		Amount		%
United States	$	825,648	78.5	%	$	1,027,781	81.6	%
United Kingdom	118,874		11.3	%	117,882		9.4	%
Canada	107,540		10.2	%	112,939		9.0	%
Total	$	1,052,062	100.0	%	$	1,258,602	100.0	%
	As of
	March 31, 2021				December 31, 2020
Assets:	Amount		%		Amount		%
United States	$	27,112,760	82.1	%	$	26,658,659	82.1	%
United Kingdom	3,415,851		10.4	%	3,352,549		10.3	%
Canada	2,463,640		7.5	%	2,472,434		7.6	%
Total	$	32,992,251	100.0	%	$	32,483,642	100.0	%

(1) The United States, United Kingdom and Canada represent 72%, 14% and 14%, respectively, of our resident fees and services revenue stream for the three months ended March 31, 2021.