SEGMENT INFORMATION

As of March 31, 2014, 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 the United Kingdom 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. In 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. In 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 any of 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 March 31, 2014:



	Triple-Net Leased Properties		Senior Living Operations			MOB Operations			All Other			Total
	(In thousands)
Revenues:
Rental income	$	237,846	$	—		$	115,223		$	—		$	353,069
Resident fees and services	—		371,061			—			—			371,061
Medical office building and other services revenue	1,148		—			4,652			500			6,300
Income from loans and investments	—		—			—			10,767			10,767
Interest and other income	—		—			—			273			273
Total revenues	$	238,994	$	371,061		$	119,875		$	11,540		$	741,470
Total revenues	$	238,994	$	371,061		$	119,875		$	11,540		$	741,470
Less:
Interest and other income	—		—			—			273			273
Property-level operating expenses	—		248,295			39,345			—			287,640
Medical office building services costs	—		—			3,371			—			3,371
Segment NOI	238,994		122,766			77,159			11,267			450,186
Income (loss) from unconsolidated entities	569		(144		)	(47		)	(130		)	248
Segment profit	$	239,563	$	122,622		$	77,112		$	11,137		450,434
Interest and other income												273
Interest expense												(87,841		)
Depreciation and amortization												(193,594		)
General, administrative and professional fees												(32,866		)
Gain on extinguishment of debt, net												259
Merger-related expenses and deal costs												(10,760		)
Other												(5,229		)
Income tax expense												(3,433		)
Discontinued operations												3,031
Gain on real estate dispositions, net												1,000
Net income												$	121,274

For the three months ended March 31, 2013:



	Triple-Net Leased Properties		Senior Living Operations			MOB Operations		All Other		Total
	(In thousands)
Revenues:
Rental income	$	212,534	$	—		$	110,416	$	—	$	322,950
Resident fees and services	—		339,170			—		—		339,170
Medical office building and other services revenue	1,111		—			2,537		—		3,648
Income from loans and investments	—		—			—		16,103		16,103
Interest and other income	—		—			—		1,038		1,038
Total revenues	$	213,645	$	339,170		$	112,953	$	17,141	$	682,909
Total revenues	$	213,645	$	339,170		$	112,953	$	17,141	$	682,909
Less:
Interest and other income	—		—			—		1,038		1,038
Property-level operating expenses	—		230,908			36,293		—		267,201
Medical office building services costs	—		—			1,639		—		1,639
Segment NOI	213,645		108,262			75,021		16,103		413,031
Income (loss) from unconsolidated entities	187		(600		)	1,342		—		929
Segment profit	$	213,832	$	107,662		$	76,363	$	16,103	413,960
Interest and other income										1,038
Interest expense										(78,634		)
Depreciation and amortization										(175,468		)
General, administrative and professional fees										(28,774		)
Merger-related expenses and deal costs										(4,262		)
Other										(4,587		)
Income tax expense										(1,744		)
Discontinued operations										(8,431		)
Net income										$	113,098

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



	For the Three Months Ended March 31,
	2014		2013
	(In thousands)
Capital expenditures:
Triple-net leased properties	$	192,052	$	13,180
Senior living operations	16,863		20,168
MOB operations	13,033		64,210
Total capital expenditures	$	221,948	$	97,558

Our portfolio of properties and mortgage loan and other investments are located in the United States, Canada and the United Kingdom. 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 March 31,
	2014		2013
	(In thousands)
Revenues:
United States	$	720,107	$	659,529
Canada	21,218		23,380
United Kingdom	145		—
Total revenues	$	741,470	$	682,909



	As of March 31, 2014		As of December 31, 2013
	(In thousands)
Net real estate property:
United States	$	17,556,584	$	17,705,962
Canada	356,580		369,624
United Kingdom	183,303		—
Total net real estate property	$	18,096,467	$	18,075,586