SEGMENT INFORMATION

As of June 30, 2013, we operated through three reportable business segments: triple-net leased properties, senior living operations and MOB operations. Under our triple-net leased properties segment, we acquire and own seniors housing and healthcare properties throughout the United States and lease those properties to healthcare operating companies under “triple-net” or “absolute-net” leases that obligate the tenants to pay all property-related expenses. Under our senior living operations segment, we invest in seniors housing communities throughout the United States and Canada and engage independent operators, such as Atria and Sunrise, to manage those communities. Under our MOB operations segment, we primarily acquire, own, develop, lease and manage MOBs. Information provided for “all other” includes income from loans and investments and other miscellaneous income and various corporate-level expenses not directly attributable to our three reportable business segments. Assets included in “all other” consist primarily of corporate assets, including cash, restricted cash, deferred financing costs, loans receivable and investments, and miscellaneous accounts receivable.

We evaluate performance of the combined properties in each reportable business segment based on segment profit, which we define as NOI adjusted for income/loss from unconsolidated entities. We define NOI as total revenues, less interest and other income, property-level operating expenses and medical office building services costs. Although we believe that net income, as defined by GAAP, is the most appropriate earnings measurement, we consider segment profit a useful supplement to net income because it allows investors, analysts and our management to measure unlevered property-level operating results and to compare our operating results to the operating results of other real estate companies and between periods on a consistent basis. Segment profit should not be considered as an alternative to net income (determined in accordance with GAAP) as an indicator of our financial performance. In order to facilitate a clear understanding of our historical consolidated operating results, segment profit should be examined in conjunction with net income as presented in our Consolidated Financial Statements and other financial data included elsewhere in this Quarterly Report on Form 10-Q.

Interest expense, depreciation and amortization, general, administrative and professional fees, income tax expense, discontinued operations and other non-property specific revenues and expenses are not allocated to individual reportable business segments for purposes of assessing segment performance. There are no intersegment sales or transfers.

Summary information by reportable business segment is as follows:

For the three months ended June 30, 2013:



	Triple-Net Leased Properties		Senior Living Operations			MOB Operations		All Other			Total
	(In thousands)
Revenues:
Rental income	$	214,239	$	—		$	110,946	$	—		$	325,185
Resident fees and services	—		341,594			—		—			341,594
Medical office building and other services revenue	1,115		—			2,159		263			3,537
Income from loans and investments	—		—			—		14,733			14,733
Interest and other income	—		—			—		797			797
Total revenues	$	215,354	$	341,594		$	113,105	$	15,793		$	685,846
Total revenues	$	215,354	$	341,594		$	113,105	$	15,793		$	685,846
Less:
Interest and other income	—		—			—		797			797
Property-level operating expenses	—		231,337			38,401		—			269,738
Medical office building services costs	—		—			1,667		—			1,667
Segment NOI	215,354		110,257			73,037		14,996			413,644
Income (loss) from unconsolidated entities	183		(541		)	43		(191		)	(506		)
Segment profit	$	215,537	$	109,716		$	73,080	$	14,805		413,138
Interest and other income											797
Interest expense											(83,046		)
Depreciation and amortization											(172,706		)
General, administrative and professional fees											(27,327		)
Gain on extinguishment of debt											720
Merger-related expenses and deal costs											(6,667		)
Other											(4,385		)
Income tax benefit											12,064
Discontinued operations											(18,055		)
Net income											$	114,533

For the three months ended June 30, 2012:



	Triple-Net Leased Properties		Senior Living Operations		MOB Operations		All Other		Total
	(In thousands)
Revenues:
Rental income	$	204,561	$	—	$	89,110	$	—	$	293,671
Resident fees and services	—		303,437		—		—		303,437
Medical office building and other services revenue	1,110		—		5,529		—		6,639
Income from loans and investments	—		—		—		8,152		8,152
Interest and other income	—		—		—		65		65
Total revenues	$	205,671	$	303,437	$	94,639	$	8,217	$	611,964
Total revenues	$	205,671	$	303,437	$	94,639	$	8,217	$	611,964
Less:
Interest and other income	—		—		—		65		65
Property-level operating expenses	—		207,031		29,621		—		236,652
Medical office building services costs	—		—		3,839		—		3,839
Segment NOI	205,671		96,406		61,179		8,152		371,408
Income from unconsolidated entities	454		—		60		—		514
Segment profit	$	206,125	$	96,406	$	61,239	$	8,152	371,922
Interest and other income									65
Interest expense									(72,767		)
Depreciation and amortization									(187,367		)
General, administrative and professional fees									(26,423		)
Loss on extinguishment of debt									(9,989		)
Merger-related expenses and deal costs									(36,668		)
Other									(1,510		)
Income tax benefit									5,179
Discontinued operations									31,294
Net income									$	73,736

For the six months ended June 30, 2013:



	Triple-Net Leased Properties		Senior Living Operations			MOB Operations		All Other			Total
	(In thousands)
Revenues:
Rental income	$	427,760	$	—		$	222,092	$	—		$	649,852
Resident fees and services	—		680,764			—		—			680,764
Medical office building and other services revenue	2,226		—			4,696		263			7,185
Income from loans and investments	—		—			—		30,836			30,836
Interest and other income	—		—			—		1,835			1,835
Total revenues	$	429,986	$	680,764		$	226,788	$	32,934		$	1,370,472
Total revenues	$	429,986	$	680,764		$	226,788	$	32,934		$	1,370,472
Less:
Interest and other income	—		—			—		1,835			1,835
Property-level operating expenses	—		462,245			74,942		—			537,187
Medical office building services costs	—		—			3,306		—			3,306
Segment NOI	429,986		218,519			148,540		31,099			828,144
Income (loss) from unconsolidated entities	370		(1,141		)	1,385		(191		)	423
Segment profit	$	430,356	$	217,378		$	149,925	$	30,908		828,567
Interest and other income											1,835
Interest expense											(162,452		)
Depreciation and amortization											(351,495		)
General, administrative and professional fees											(56,101		)
Gain on extinguishment of debt											720
Merger-related expenses and deal costs											(10,929		)
Other											(8,972		)
Income tax benefit											10,320
Discontinued operations											(23,862		)
Net income											$	227,631

For the six months ended June 30, 2012:



	Triple-Net Leased Properties		Senior Living Operations		MOB Operations		All Other		Total
	(In thousands)
Revenues:
Rental income	$	407,798	$	—	$	153,075	$	—	$	560,873
Resident fees and services	—		588,630		—		—		588,630
Medical office building and other services revenue	2,219		—		10,028		—		12,247
Income from loans and investments	—		—		—		16,188		16,188
Interest and other income	—		—		—		112		112
Total revenues	$	410,017	$	588,630	$	163,103	$	16,300	$	1,178,050
Total revenues	$	410,017	$	588,630	$	163,103	$	16,300	$	1,178,050
Less:
Interest and other income	—		—		—		112		112
Property-level operating expenses	—		402,165		50,324		—		452,489
Medical office building services costs	—		—		6,827		—		6,827
Segment NOI	410,017		186,465		105,952		16,188		718,622
Income from unconsolidated entities	720		—		111		—		831
Segment profit	$	410,737	$	186,465	$	106,063	$	16,188	719,453
Interest and other income									112
Interest expense									(140,678		)
Depreciation and amortization									(347,563		)
General, administrative and professional fees									(48,621		)
Loss on extinguishment of debt									(39,533		)
Merger-related expenses and deal costs									(44,649		)
Other									(3,086		)
Income tax expense									(6,159		)
Discontinued operations									74,552
Net income									$	163,828

Capital expenditures, including investments in real estate property and development project expenditures, by reportable business segment are as follows:



	For the Three Months Ended June 30,				For the Six Months Ended June 30,
	2013		2012		2013		2012
	(In thousands)
Capital expenditures:
Triple-net leased	$	31,824	$	9,017	$	45,004	$	13,880
Senior living	224,921		331,665		245,089		348,831
MOB	10,062		601,302		74,272		621,066
Total capital expenditures	$	266,807	$	941,984	$	364,365	$	983,777

The properties and mortgage loan and other investments in our portfolio are located in the United States and Canada. Revenues are attributed to an individual country based on the location of each property.

Geographic information regarding our operations is as follows:



	For the Three Months Ended June 30,				For the Six Months Ended June 30,
	2013		2012		2013		2012
	(In thousands)
Revenues:
United States	$	662,394	$	588,335	$	1,323,640	$	1,130,820
Canada	23,452		23,629		46,832		47,230
Total revenues	$	685,846	$	611,964	$	1,370,472	$	1,178,050



	As of June 30, 2013		As of December 31, 2012
	(In thousands)
Net real estate property:
United States	$	16,758,149	$	16,711,508
Canada	377,699		400,024
Total net real estate property	$	17,135,848	$	17,111,532