Segment Reporting

9 Months Ended

Sep. 30, 2023

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 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, 2022). 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, 2023	Seniors Housing Operating		Triple-net		Outpatient Medical		Non-segment / Corporate		Total
Resident fees and services	$	1,199,808	$	—	$	—	$	—	$	1,199,808
Rental income	—		194,912		189,595		—		384,507
Interest income	2,194		39,928		98		—		42,220
Other income	1,897		1,482		2,265		29,834		35,478
Total revenues	1,203,899		236,322		191,958		29,834		1,662,013
Property operating expenses	918,990		10,044		62,204		4,035		995,273
Consolidated net operating income (loss)	284,909		226,278		129,754		25,799		666,740
Depreciation and amortization	215,195		58,196		65,923		—		339,314
Interest expense	14,358		374		2,313		139,487		156,532
General and administrative expenses	—		—		—		46,106		46,106
Loss (gain) on derivatives and financial instruments, net	—		2,885		—		—		2,885
Loss (gain) on extinguishment of debt, net	—		—		1		—		1
Provision for loan losses, net	384		3,675		—		—		4,059
Impairment of assets	2,400		4,988		—		—		7,388
Other expenses	34,865		1,627		1,117		611		38,220
Income (loss) from continuing operations before income taxes and other items	17,707		154,533		60,400		(160,405)		72,235
Income tax (expense) benefit	—		—		—		(4,584)		(4,584)
Income (loss) from unconsolidated entities	(6,021)		2,056		(66)		—		(4,031)
Gain (loss) on real estate dispositions, net	71,173		(12)		(59)		—		71,102
Income (loss) from continuing operations	82,859		156,577		60,275		(164,989)		134,722
Net income (loss)	$	82,859	$	156,577	$	60,275	$	(164,989)	$	134,722
Total assets	$	22,568,523	$	9,891,968	$	7,204,561	$	1,989,650	$	41,654,702

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)

Nine Months Ended September 30, 2023	Seniors Housing Operating		Triple-net		Outpatient Medical		Non-segment / Corporate		Total
Resident fees and services	$	3,490,942	$	—	$	—	$	—	$	3,490,942
Rental income	—		596,247		555,758		—		1,152,005
Interest income	6,840		110,211		284		—		117,335
Other income	7,237		70,057		6,939		43,705		127,938
Total revenues	3,505,019		776,515		562,981		43,705		4,888,220
Property operating expenses	2,687,961		32,365		179,266		12,106		2,911,698
Consolidated net operating income (loss)	817,058		744,150		383,715		31,599		1,976,522
Depreciation and amortization	656,030		167,958		196,383		—		1,020,371
Interest expense	41,981		(436)		9,569		402,158		453,272
General and administrative expenses	—		—		—		134,764		134,764
Loss (gain) on derivatives and financial instruments, net	—		5,095		—		—		5,095
Loss (gain) on extinguishment of debt, net	—		—		7		—		7
Provision for loan losses, net	2,178		5,116		(2)		—		7,292
Impairment of assets	15,029		6,074		—		—		21,103
Other expenses	60,504		4,912		2,311		4,307		72,034
Income (loss) from continuing operations before income taxes and other items	41,336		555,431		175,447		(509,630)		262,584
Income tax (expense) benefit	—		—		—		(11,132)		(11,132)
Income (loss) from unconsolidated entities	(61,055)		9,858		(237)		—		(51,434)
Gain (loss) on real estate dispositions, net	69,910		436		(665)		—		69,681
Income (loss) from continuing operations	50,191		565,725		174,545		(520,762)		269,699
Net income (loss)	$	50,191	$	565,725	$	174,545	$	(520,762)	$	269,699

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 (loss)	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

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, 2023				September 30, 2022				September 30, 2023				September 30, 2022
Revenues:	Amount		%		Amount		%		Amount(1)		%		Amount		%
United States	$	1,384,381	83.2	%	$	1,220,306	82.8	%	$	4,072,915	83.3	%	$	3,578,201	82.4	%
United Kingdom	153,765		9.3	%	136,896		9.3	%	455,669		9.3	%	420,739		9.7	%
Canada	123,867		7.5	%	116,642		7.9	%	359,636		7.4	%	343,144		7.9	%
Total	$	1,662,013	100.0	%	$	1,473,844	100.0	%	$	4,888,220	100.0	%	$	4,342,084	100.0	%
	Three Months Ended								Nine Months Ended
	September 30, 2023				September 30, 2022				September 30, 2023				September 30, 2022
Resident Fees and Services:	Amount		%		Amount		%		Amount(1)		%		Amount		%
United States	$	967,360	80.7	%	$	855,822	80.1	%	$	2,806,301	80.4	%	$	2,438,744	79.3	%
United Kingdom	111,947		9.3	%	99,405		9.3	%	334,544		9.6	%	300,121		9.8	%
Canada	120,501		10.0	%	113,479		10.6	%	350,097		10.0	%	334,175		10.9	%
Total	$	1,199,808	100.0	%	$	1,068,706	100.0	%	$	3,490,942	100.0	%	$	3,073,040	100.0	%
	As of
	September 30, 2023				December 31, 2022
Assets:	Amount		%		Amount		%
United States	$	34,990,725	84.0	%	$	31,740,907	83.8	%
United Kingdom	3,385,630		8.1	%	3,476,793		9.2	%
Canada	3,278,347		7.9	%	2,675,533		7.0	%
Total	$	41,654,702	100.0	%	$	37,893,233	100.0	%