SEGMENT REPORTING

3 Months Ended

Jul. 31, 2017

SEGMENT REPORTING

SEGMENT REPORTING

NOTE 5 • SEGMENT REPORTING

We report our results in two reportable segments, which are aggregations of similar properties: multifamily and healthcare. We measure the performance of our segments based on net operating income (“NOI”), which we define as total real estate revenues less real estate expenses (which consist of utilities, maintenance, real estate taxes, insurance, property management expenses and other property expenses). We believe that NOI is an important supplemental measure of operating performance for a REIT’s operating real estate because it provides a measure of core operations that is unaffected by depreciation, amortization, financing, and general and administrative expense. NOI does not represent cash generated by operating activities in accordance with US GAAP and should not be considered an alternative to net income, net income available for common shareholders, or cash flow from operating activities as a measure of financial performance.

The revenues and NOI for these reportable segments are summarized as follows for the three months ended July 31, 2017 and 2016, along with reconciliations to the condensed consolidated financial statements. Segment assets are also reconciled to total assets as reported in the condensed consolidated financial statements.

	(in thousands)
Three Months Ended July 31, 2017	Multifamily		Healthcare		All Other		Amounts Not Allocated To Segments(1)		Total
Real estate revenue	$	38,430	$	11,378	$	2,927	$	—	$	52,735
Real estate expenses		17,465		4,285		793		1,707		24,250
Net operating income (loss)	$	20,965	$	7,093	$	2,134	$	(1,707)	$	28,485
Depreciation and amortization										(28,927)
Impairment of real estate investments										(256)
General and administrative expenses										(4,002)
Interest expense										(9,295)
Loss on debt extinguishment										(199)
Interest and other income										231
Loss before gain on sale of real estate and other investments and income from discontinued operations										(13,963)
Gain on sale of real estate and other investments										124
Loss from continuing operations										(13,839)
Income from discontinued operations										560
Net loss									$	(13,279)

(1) Consists of offsite costs associated with property management and casualty-related amounts, which are excluded in our assessment of segment performance.

	(in thousands)
Three Months Ended July 31, 2016	Multifamily		Healthcare		All Other		Amounts Not Allocated To Segments(1)			Total
Real estate revenue	$	35,042	$	11,541	$	3,028	$	—	$	49,611
Real estate expenses		14,879		4,192		725		1,838		21,634
Net operating income (loss)	$	20,163	$	7,349	$	2,303	$	(1,838)		27,977
Depreciation and amortization										(14,267)
Impairment of real estate investments										(54,153)
General and administrative expenses										(3,501)
Interest expense										(10,364)
Interest and other income										188
Loss before gain on sale of real estate and other investments and income from discontinued operations										(54,120)
Gain on sale of real estate and other investments										8,958
Loss from continuing operations										(45,162)
Income from discontinued operations										4,568
Net loss									$	(40,594)

(1) Consists of offsite costs associated with property management and casualty-related amounts, which are excluded in our assessment of segment performance.

Segment Assets and Accumulated Depreciation

Segment assets are summarized as follows as of July 31, 2017, and April 30, 2017, along with reconciliations to the condensed consolidated financial statements:

	(in thousands)
As of July 31, 2017	Multifamily		Healthcare		All Other		Total
Segment assets
Property owned	$	1,313,469	$	324,197	$	106,586	$	1,744,252
Less accumulated depreciation		(254,380)		(89,561)		(24,828)		(368,769)
Total property owned	$	1,059,089	$	234,636	$	81,758	$	1,375,483
Assets held for sale and assets from discontinued operations								37,552
Cash and cash equivalents								23,801
Receivables and other assets								30,319
Unimproved land								15,195
Total Assets							$	1,482,350

	(in thousands)
As of April 30, 2017	Multifamily		Healthcare		All Other		Total
Segment assets
Property owned	$	1,260,541	$	323,148	$	93,792	$	1,677,481
Less accumulated depreciation		(232,592)		(86,139)		(21,686)		(340,417)
Total property owned	$	1,027,949	$	237,009	$	72,106	$	1,337,064
Assets held for sale and assets from discontinued operations								37,708
Cash and cash equivalents								28,819
Receivables and other assets								52,468
Unimproved land								18,455
Total Assets							$	1,474,514