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Segment Reporting | 3 Months Ended
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Mar. 31, 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 March 31, 2023: |  | Seniors Housing Operating |  | Triple-net |  | Outpatient Medical |  | Non-segment / Corporate |  | Total
Resident fees and services |  | $ | 1,131,685 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 1,131,685 |
Rental income |  | — |  |  | 202,419 |  |  | 181,640 |  |  | — |  |  | 384,059 |
Interest income |  | 2,551 |  |  | 33,763 |  |  | 91 |  |  | — |  |  | 36,405 |
Other income |  | 2,445 |  |  | 1,883 |  |  | 3,100 |  |  | 1,152 |  |  | 8,580 |
Total revenues |  | 1,136,681 |  |  | 238,065 |  |  | 184,831 |  |  | 1,152 |  |  | 1,560,729 |
Property operating expenses |  | 883,784 |  |  | 11,723 |  |  | 58,365 |  |  | 3,881 |  |  | 957,753 |
Consolidated net operating income (loss) |  | 252,897 |  |  | 226,342 |  |  | 126,466 |  |  | (2,729) |  |  | 602,976 |
Depreciation and amortization |  | 220,407 |  |  | 54,528 |  |  | 64,177 |  |  | — |  |  | 339,112 |
Interest expense |  | 11,487 |  |  | (15) |  |  | 4,104 |  |  | 128,827 |  |  | 144,403 |
General and administrative expenses |  | — |  |  | — |  |  | — |  |  | 44,371 |  |  | 44,371 |
Loss (gain) on derivatives and financial instruments, net |  | — |  |  | 930 |  |  | — |  |  | — |  |  | 930 |
Loss (gain) on extinguishment of debt, net |  | — |  |  | — |  |  | 5 |  |  | — |  |  | 5 |
Provision for loan losses, net |  | (73) |  |  | 850 |  |  | — |  |  | — |  |  | 777 |
Impairment of assets |  | 12,629 |  |  | — |  |  | — |  |  | — |  |  | 12,629 |
Other expenses |  | 17,579 |  |  | 2,467 |  |  | 547 |  |  | 2,152 |  |  | 22,745 |
Income (loss) from continuing operations before income taxes and other items |  | (9,132) |  |  | 167,582 |  |  | 57,633 |  |  | (178,079) |  |  | 38,004 |
Income tax (expense) benefit |  | — |  |  | — |  |  | — |  |  | (3,045) |  |  | (3,045) |
Income (loss) from unconsolidated entities |  | (15,589) |  |  | 8,432 |  |  | 86 |  |  | — |  |  | (7,071) |
Gain (loss) on real estate dispositions, net |  | 833 |  |  | 520 |  |  | (606) |  |  | — |  |  | 747 |
Income (loss) from continuing operations |  | (23,888) |  |  | 176,534 |  |  | 57,113 |  |  | (181,124) |  |  | 28,635 |
Net income (loss) |  | $ | (23,888) |  |  | $ | 176,534 |  |  | $ | 57,113 |  |  | $ | (181,124) |  |  | $ | 28,635 |
Total assets |  | $ | 22,201,219 |  |  | $ | 8,776,956 |  |  | $ | 7,007,092 |  |  | $ | 508,622 |  |  | $ | 38,493,889 |
Three Months Ended March 31, 2022: |  | Seniors Housing Operating |  | Triple-net |  | Outpatient Medical |  | Non-segment / Corporate |  | Total
Resident fees and services |  | $ | 994,335 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 994,335 |
Rental income |  | — |  |  | 196,001 |  |  | 160,389 |  |  | — |  |  | 356,390 |
Interest income |  | 1,417 |  |  | 37,506 |  |  | 71 |  |  | — |  |  | 38,994 |
Other income |  | 860 |  |  | 1,656 |  |  | 2,863 |  |  | 606 |  |  | 5,985 |
Total revenues |  | 996,612 |  |  | 235,163 |  |  | 163,323 |  |  | 606 |  |  | 1,395,704 |
Property operating expenses |  | 789,928 |  |  | 11,211 |  |  | 49,915 |  |  | 2,615 |  |  | 853,669 |
Consolidated net operating income (loss) |  | 206,684 |  |  | 223,952 |  |  | 113,408 |  |  | (2,009) |  |  | 542,035 |
Depreciation and amortization |  | 192,793 |  |  | 53,504 |  |  | 57,791 |  |  | — |  |  | 304,088 |
Interest expense |  | 7,650 |  |  | 314 |  |  | 4,567 |  |  | 109,165 |  |  | 121,696 |
General and administrative expenses |  | — |  |  | — |  |  | — |  |  | 37,706 |  |  | 37,706 |
Loss (gain) on derivatives and financial instruments, net |  | — |  |  | 2,578 |  |  | — |  |  | — |  |  | 2,578 |
Loss (gain) on extinguishment of debt, net |  | (15) |  |  | — |  |  | 3 |  |  | — |  |  | (12) |
Provision for loan losses, net |  | 267 |  |  | (1,065) |  |  | (6) |  |  | — |  |  | (804) |
Other expenses |  | 8,191 |  |  | 11,044 |  |  | 789 |  |  | 6,045 |  |  | 26,069 |
Income (loss) from continuing operations before income taxes and other items |  | (2,202) |  |  | 157,577 |  |  | 50,264 |  |  | (154,925) |  |  | 50,714 |
Income tax (expense) benefit |  | — |  |  | — |  |  | — |  |  | (5,013) |  |  | (5,013) |
Income (loss) from unconsolidated entities |  | (17,782) |  |  | 15,543 |  |  | (645) |  |  | — |  |  | (2,884) |
Gain (loss) on real estate dispositions, net |  | 2,701 |  |  | 20,449 |  |  | (216) |  |  | — |  |  | 22,934 |
Income (loss) from continuing operations |  | (17,283) |  |  | 193,569 |  |  | 49,403 |  |  | (159,938) |  |  | 65,751 |
Net income (loss) |  | $ | (17,283) |  |  | $ | 193,569 |  |  | $ | 49,403 |  |  | $ | (159,938) |  |  | $ | 65,751 |
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 |  |
|  | March 31, 2023 |  | March 31, 2022 |  |  |  |
Revenues: |  | Amount |  | % |  | Amount |  | % |  |  |  |  |  |  |  |
United States |  | $ | 1,296,022 |  |  | 83.0 | % |  | $ | 1,139,016 |  |  | 81.6 | % |  |  |  |  |  |  |  |
United Kingdom |  | 147,876 |  |  | 9.5 | % |  | 144,491 |  |  | 10.4 | % |  |  |  |  |  |  |  |
Canada |  | 116,831 |  |  | 7.5 | % |  | 112,197 |  |  | 8.0 | % |  |  |  |  |  |  |  |
Total |  | $ | 1,560,729 |  |  | 100.0 | % |  | $ | 1,395,704 |  |  | 100.0 | % |  |  |  |  |  |  |  |
|  | Three Months Ended |  |
|  | March 31, 2023 |  | March 31, 2022 |  |  |  |
Resident Fees and Services: |  | Amount |  | % |  | Amount |  | % |  |  |  |  |  |  |  |
United States |  | $ | 908,944 |  |  | 80.4 | % |  | $ | 784,097 |  |  | 78.8 | % |  |  |  |  |  |  |  |
United Kingdom |  | 109,012 |  |  | 9.6 | % |  | 101,090 |  |  | 10.2 | % |  |  |  |  |  |  |  |
Canada |  | 113,729 |  |  | 10.0 | % |  | 109,148 |  |  | 11.0 | % |  |  |  |  |  |  |  |
Total |  | $ | 1,131,685 |  |  | 100.0 | % |  | $ | 994,335 |  |  | 100.0 | % |  |  |  |  |  |  |  |
|  | As of |  |
|  | March 31, 2023 |  | December 31, 2022 |  |  |  |
Assets: |  | Amount |  | % |  | Amount |  | % |  |  |  |  |  |  |  |
United States |  | $ | 32,325,218 |  |  | 84.0 | % |  | $ | 31,740,907 |  |  | 83.8 | % |  |  |  |  |  |  |  |
United Kingdom |  | 3,518,034 |  |  | 9.1 | % |  | 3,476,793 |  |  | 9.2 | % |  |  |  |  |  |  |  |
Canada |  | 2,650,637 |  |  | 6.9 | % |  | 2,675,533 |  |  | 7.0 | % |  |  |  |  |  |  |  |
Total |  | $ | 38,493,889 |  |  | 100.0 | % |  | $ | 37,893,233 |  |  | 100.0 | % |  |  |  |  |  |  |  |

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8924-108599 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8981-108599 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (a) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8721-108599 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9031-108599 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (f) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (e) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8844-108599 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9038-108599 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (d) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8736-108599 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9054-108599 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 15 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8657-108599 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (b) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8721-108599 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI https://asc.fasb.org/topic&trid=2134510 + Details
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