Segment Reporting

9 Months Ended

Sep. 30, 2022

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 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). In addition, Seniors Housing Operating properties include seniors apartments. 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 cash investments recorded in 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, 2021). 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 September 30, 2022:	Seniors Housing Operating		Triple-net		Outpatient Medical		Non-segment / Corporate		Total
Resident fees and services	$	1,068,706	$	—	$	—	$	—	$	1,068,706
Rental income	—		191,443		170,540		—		361,983
Interest income	2,155		35,556		80		—		37,791
Other income	1,739		1,820		1,558		247		5,364
Total revenues	1,072,600		228,819		172,178		247		1,473,844
Property operating expenses	841,914		11,495		52,921		5,850		912,180
Consolidated net operating income (loss)	230,686		217,324		119,257		(5,603)		561,664
Depreciation and amortization	235,984		57,338		60,377		—		353,699
Interest expense	9,022		196		4,343		126,121		139,682
General and administrative expenses	—		—		—		34,811		34,811
Loss (gain) on derivatives and financial instruments, net	—		6,905		—		—		6,905
Loss (gain) on extinguishment of debt, net	—		—		2		—		2
Provision for loan losses, net	198		290		2		—		490
Impairment of assets	—		3,595		761		—		4,356
Other expenses	8,341		820		366		5,954		15,481
Income (loss) from continuing operations before income taxes and other items	(22,859)		148,180		53,406		(172,489)		6,238
Income tax (expense) benefit	—		—		—		(3,257)		(3,257)
Income (loss) from unconsolidated entities	(8,788)		3,167		(1,077)		—		(6,698)
Gain (loss) on real estate dispositions, net	1,146		674		(606)		(150)		1,064
Income (loss) from continuing operations	(30,501)		152,021		51,723		(175,896)		(2,653)
Net income (loss)	$	(30,501)	$	152,021	$	51,723	$	(175,896)	$	(2,653)
Total assets	$	21,560,096	$	8,700,199	$	6,569,005	$	585,188	$	37,414,488

Three Months Ended September 30, 2021:	Seniors Housing Operating		Triple-net		Outpatient Medical		Non-segment / Corporate		Total
Resident fees and services	$	835,617	$	—	$	—	$	—	$	835,617
Rental income	—		200,641		157,343		—		357,984
Interest income	1,135		38,257		472		—		39,864
Other income	2,767		1,087		1,688		790		6,332
Total revenues	839,519		239,985		159,503		790		1,239,797
Property operating expenses	666,610		11,664		48,072		3,054		729,400
Consolidated net operating income (loss)	172,909		228,321		111,431		(2,264)		510,397
Depreciation and amortization	157,176		54,226		56,352		—		267,754
Interest expense	9,360		1,548		4,811		106,803		122,522
General and administrative expenses	—		—		—		32,256		32,256
Loss (gain) on derivatives and financial instruments, net	—		(8,078)		—		—		(8,078)
Loss (gain) on extinguishment of debt, net	—		—		(5)		—		(5)
Provision for loan losses, net	152		(323)		(100)		—		(271)
Impairment of assets	—		1,490		—		—		1,490
Other expenses	5,449		(4,248)		640		1,734		3,575
Income (loss) from continuing operations before income taxes and other items	772		183,706		49,733		(143,057)		91,154
Income tax (expense) benefit	—		—		—		(4,940)		(4,940)
Income (loss) from unconsolidated entities	(15,810)		5,038		(5,060)		—		(15,832)
Gain (loss) on real estate dispositions, net	(615)		81,712		38,857		—		119,954
Income (loss) from continuing operations	(15,653)		270,456		83,530		(147,997)		190,336
Net income (loss)	$	(15,653)	$	270,456	$	83,530	$	(147,997)	$	190,336

Nine Months Ended September 30, 2022	Seniors Housing Operating		Triple-net		Outpatient Medical		Non-segment / Corporate		Total
Resident fees and services	$	3,073,040	$	—	$	—	$	—	$	3,073,040
Rental income	—		584,626		495,158		—		1,079,784
Interest income	5,255		108,454		216		—		113,925
Other income	62,127		5,262		6,449		1,497		75,335
Total revenues	3,140,422		698,342		501,823		1,497		4,342,084
Property operating expenses	2,421,141		34,197		153,484		11,110		2,619,932
Consolidated net operating income	719,281		664,145		348,339		(9,613)		1,722,152
Depreciation and amortization	629,955		160,403		177,724		—		968,082
Interest expense	24,153		830		13,441		350,704		389,128
General and administrative expenses	—		—		—		109,071		109,071
Loss (gain) on derivatives and financial instruments, net	—		8,076		—		—		8,076
Loss (gain) on extinguishment of debt, net	385		—		9		199		593
Provision for loan losses, net	807		(951)		(5)		—		(149)
Impairment of assets	—		3,595		761		—		4,356
Other expenses	45,781		12,327		1,362		17,246		76,716
Income (loss) from continuing operations before income taxes and other items	18,200		479,865		155,047		(486,833)		166,279
Income tax (expense) benefit	—		—		—		(11,335)		(11,335)
Income (loss) from unconsolidated entities	(39,239)		24,584		(1,985)		—		(16,640)
Gain (loss) on real estate dispositions, net	2,623		18,994		(1,001)		(150)		20,466
Income (loss) from continuing operations	(18,416)		523,443		152,061		(498,318)		158,770
Net income (loss)	$	(18,416)	$	523,443	$	152,061	$	(498,318)	$	158,770

Nine Months Ended September 30, 2021	Seniors Housing Operating		Triple-net		Outpatient Medical		Non-segment / Corporate		Total
Resident fees and services	$	2,299,972	$	—	$	—	$	—	$	2,299,972
Rental income	—		557,829		457,721		—		1,015,550
Interest income	3,110		86,040		8,741		—		97,891
Other income	5,388		3,539		8,336		2,175		19,438
Total revenues	2,308,470		647,408		474,798		2,175		3,432,851
Property operating expenses	1,804,939		37,132		140,430		6,882		1,989,383
Consolidated net operating income	503,531		610,276		334,368		(4,707)		1,443,468
Depreciation and amortization	420,797		165,299		166,969		—		753,065
Interest expense	31,331		5,134		12,733		318,807		368,005
General and administrative expenses	—		—		—		93,618		93,618
Loss (gain) on derivatives and financial instruments, net	—		(6,503)		—		—		(6,503)
Loss (gain) on extinguishment of debt, net	(1,537)		—		(5)		52,506		50,964
Provision for loan losses, net	222		10,549		(3,462)		—		7,309
Impairment of assets	22,317		24,222		2,211		—		48,750
Other expenses	12,617		4,845		2,450		6,344		26,256
Income (loss) from continuing operations before income taxes and other items	17,784		406,730		153,472		(475,982)		102,004
Income tax (expense) benefit	—		—		—		(6,662)		(6,662)
Income (loss) from unconsolidated entities	(23,514)		14,822		(2,067)		—		(10,759)
Gain (loss) on real estate dispositions, net	4,552		126,463		92,687		—		223,702
Income (loss) from continuing operations	(1,178)		548,015		244,092		(482,644)		308,285
Net income (loss)	$	(1,178)	$	548,015	$	244,092	$	(482,644)	$	308,285

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								Nine Months Ended
	September 30, 2022				September 30, 2021				September 30, 2022				September 30, 2021
Revenues:	Amount(1)		%		Amount		%		Amount(1)		%		Amount		%
United States	$	1,276,927	86.6	%	$	990,034	79.9	%	$	3,799,621	87.5	%	$	2,709,354	78.9	%
United Kingdom	95,914		6.5	%	146,308		11.8	%	246,226		5.7	%	405,938		11.8	%
Canada	101,003		6.9	%	103,455		8.3	%	296,237		6.8	%	317,559		9.3	%
Total	$	1,473,844	100.0	%	$	1,239,797	100.0	%	$	4,342,084	100.0	%	$	3,432,851	100.0	%
	As of
	September 30, 2022				December 31, 2021
Assets:	Amount		%		Amount		%
United States	$	31,604,241	84.5	%	$	28,595,703	81.9	%
United Kingdom	3,195,747		8.5	%	3,938,258		11.3	%
Canada	2,614,500		7.0	%	2,376,364		6.8	%
Total	$	37,414,488	100.0	%	$	34,910,325	100.0	%

(1) The United States, United Kingdom and Canada represent 80%, 9%, and 11% of our resident fees and services revenue for the three month periods ended September 30, 2022, respectively, and 79%, 10% and 11% of our resident fees and services revenue for the nine month periods ended September 30, 2022, respectively.