Segment Reporting

6 Months Ended

Jun. 30, 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 June 30, 2021:	Seniors Housing Operating		Triple-net		Outpatient Medical		Non-segment / Corporate		Total
Resident fees and services	$	740,891	$	—	$	—	$	—	$	740,891
Rental income	—		204,725		149,998		—		354,723
Interest income	856		32,861		4,731		—		38,448
Other income	802		1,355		4,343		430		6,930
Total revenues	742,549		238,941		159,072		430		1,140,992
Property operating expenses	582,361		12,627		45,495		2,174		642,657
Consolidated net operating income	160,188		226,314		113,577		(1,744)		498,335
Depreciation and amortization	131,035		54,406		55,444		—		240,885
Interest expense	10,553		1,704		3,907		106,177		122,341
General and administrative expenses	—		—		—		31,436		31,436
Loss (gain) on derivatives and financial instruments, net	—		(359)		—		—		(359)
Loss (gain) on extinguishment of debt, net	3,106		—		—		52,506		55,612
Provision for loan losses	(181)		10,019		(3,641)		—		6,197
Impairment of assets	17,713		3,768		2,211		—		23,692
Other expenses	3,709		4,110		1,098		2,770		11,687
Income (loss) from continuing operations before income taxes and other items	(5,747)		152,666		54,558		(194,633)		6,844
Income tax (expense) benefit	—		—		—		2,221		2,221
Income (loss) from unconsolidated entities	(12,938)		4,877		85		—		(7,976)
Gain (loss) on real estate dispositions, net	(28)		42,709		1,987		—		44,668
Income (loss) from continuing operations	(18,713)		200,252		56,630		(192,412)		45,757
Net income (loss)	$	(18,713)	$	200,252	$	56,630	$	(192,412)	$	45,757
Total assets	$	16,129,367	$	9,490,724	$	6,212,491	$	343,534	$	32,176,116

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

Six Months Ended June 30, 2021	Seniors Housing Operating		Triple-net		Outpatient Medical		Non-segment / Corporate		Total
Resident fees and services	$	1,464,355	$	—	$	—	$	—	$	1,464,355
Rental income	—		357,188		300,378		—		657,566
Interest income	1,975		47,783		8,269		—		58,027
Other income	2,621		2,452		6,648		1,385		13,106
Total revenues	1,468,951		407,423		315,295		1,385		2,193,054
Property operating expenses	1,138,329		25,468		92,358		3,828		1,259,983
Consolidated net operating income	330,622		381,955		222,937		(2,443)		933,071
Depreciation and amortization	263,621		111,073		110,617		—		485,311
Interest expense	21,971		3,586		7,922		212,004		245,483
General and administrative expenses	—		—		—		61,362		61,362
Loss (gain) on derivatives and financial instruments, net	—		1,575		—		—		1,575
Loss (gain) on extinguishment of debt, net	(1,537)		—		—		52,506		50,969
Provision for loan losses	70		10,872		(3,362)		—		7,580
Impairment of assets	22,317		22,732		2,211		—		47,260
Other expenses	7,168		9,093		1,810		4,610		22,681
Income (loss) from continuing operations before income taxes and other items	17,012		223,024		103,739		(332,925)		10,850
Income tax (expense) benefit	—		—		—		(1,722)		(1,722)
Income (loss) from unconsolidated entities	(7,704)		9,784		2,993		—		5,073
Gain (loss) on real estate dispositions, net	5,167		44,751		53,830		—		103,748
Income (loss) from continuing operations	14,475		277,559		160,562		(334,647)		117,949
Net income (loss)	$	14,475	$	277,559	$	160,562	$	(334,647)	$	117,949

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	—		18.69	8,523		—	(29)		18.69	—		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

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, 2021				June 30, 2020				June 30, 2021				June 30, 2020
Revenues:	Amount(1)		%		Amount		%		Amount(1)		%		Amount		%
United States	$	893,672	78.4	%	$	973,772	81.9	%	$	1,719,320	78.4	%	$	2,001,553	81.8	%
United Kingdom	140,756		12.3	%	109,437		9.2	%	259,630		11.8	%	227,319		9.3	%
Canada	106,564		9.3	%	105,266		8.9	%	214,104		9.8	%	218,205		8.9	%
Total	$	1,140,992	100.0	%	$	1,188,475	100.0	%	$	2,193,054	100.0	%	$	2,447,077	100.0	%
	As of
	June 30, 2021				December 31, 2020
Assets:	Amount		%		Amount		%
United States	$	25,673,854	79.8	%	$	26,658,659	82.1	%
United Kingdom	4,075,693		12.7	%	3,352,549		10.3	%
Canada	2,426,569		7.5	%	2,472,434		7.6	%
Total	$	32,176,116	100.0	%	$	32,483,642	100.0	%

(1) The United States, United Kingdom and Canada represent 73%, 13% and 14% of our resident fees and services revenue for the three and six month periods ended June 30, 2021, respectively.