XML 35 R22.htm IDEA: XBRL DOCUMENT v3.22.2
Segment Reporting
 6 Months Ended
Jun. 30, 2022
Segment Reporting [Abstract]  
Segment Reporting Segment Reporting
We evaluate our business and make resource allocations on our two operating segments: Real Estate Investments and SHOP. Our Real Estate Investments includes lease, mortgage and other note investments in independent living facilities, assisted living facilities, entrance-fee communities, senior living campuses, skilled nursing facilities and a hospital. Under the Real Estate Investment 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. SHOP includes multi-tenant independent living facilities. The SHOP properties and related operations are controlled by the Company and are operated by property managers in exchange for a management fee (reference Note 5).

We formed the SHOP segment effective April 1, 2022 upon termination of the triple-net lease for the legacy Holiday portfolio at which time the operations and properties of 15 ILFs were transferred into two separate ventures, as discussed further in Notes 5 and 8. The results associated with the prior triple-net lease structure for these properties are included in the Real Estate Investments segment and the results from operating these SHOP properties after the transition are included in our new SHOP segment. There is no impact to prior year’s presentation.

Our chief operating decision maker evaluates performance based upon segment NOI. We define NOI as total revenues, less tenant reimbursements and property operating expenses. We use NOI to make decisions about resource allocations and to assess the property level performance of our properties. There were no intersegment transactions for the three and six months ended June 30, 2022. Capital expenditures for the six months ended June 30, 2022 were approximately $7.0 million for the Real Estate Investments segment and $0.7 million for the SHOP segment.

Non-segment revenue consists mainly of 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). The results of operations for all acquisitions described in Notes 3 and 4 are included in our consolidated results of operations from the acquisition dates and are components of the appropriate segments.

Summary information for the reportable segments during the three and six months ended June 30, 2022 is as follows ($ in thousands):
For the three months ended June 30, 2022:Real Estate InvestmentSHOPNon-segment/CorporateTotal
Rental income$39,982 $— $— $39,982 
Resident fees and services— 11,992 — 11,992 
Interest income and other7,825 — 100 7,925 
   Total revenues47,807 11,992 100 59,899 
Senior housing operating expenses— 9,113 — 9,113 
Taxes and insurance on leased properties2,157 — — 2,157 
   NOI 45,650 2,879 100 48,629 
Depreciation15,638 2,116 18 17,772 
Interest771 — 10,091 10,862 
Legal — — 339 339 
Franchise, excise and other taxes— — 225 225 
General and administrative— — 5,049 5,049 
Loan and realty losses4,094 — — 4,094 
Gains on sales of real estate, net(10,521)— — (10,521)
Loss on operations transfer, net729 — — 729 
Gain on note payoff(1,113)— — (1,113)
Gains from equity method investment(273)— — (273)
    Net Income$36,325 $763 $(15,622)$21,466 
Total assets$2,277,599 $277,155 $32,537 $2,587,291 


For the six months ended June 30, 2022:Real Estate InvestmentSHOPNon-segment/CorporateTotal
Rental income$104,541 $— $— $104,541 
Resident fees and services— 11,992 — 11,992 
Interest income and other14,542 — 152 14,694 
   Total revenues119,083 11,992 152 131,227 
Senior housing operating expenses— 9,113 — 9,113 
Taxes and insurance on leased properties5,195 — — 5,195 
   NOI 113,888 2,879 152 116,919 
Depreciation33,892 2,116 36 36,044 
Interest1,534 — 19,526 21,060 
Legal — — 2,166 2,166 
Franchise, excise and other taxes— — 469 469 
General and administrative— — 13,150 13,150 
Loan and realty losses28,622 — — 28,622 
Gains on sales of real estate, net(13,502)— — (13,502)
Loss on operations transfer, net729 — — 729 
Gain on note payoff(1,113)— — (1,113)
Loss on early retirement of debt— — 151 151 
Gains from equity method investment(569)— — (569)
    Net Income$64,295 $763 $(35,346)$29,712