XML 35 R23.htm IDEA: XBRL DOCUMENT
v3.20.2

SEGMENT INFORMATION | 9 Months Ended
--- | ---
Sep. 30, 2020
Segment Reporting [Abstract] |
SEGMENT INFORMATION | NOTE 15—SEGMENT INFORMATION As of September 30, 2020, we operated through three reportable business segments: triple-net leased properties, senior living operations and office operations. In our triple-net leased properties segment, we invest in and own senior 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 senior housing communities throughout the United States and Canada and engage independent operators, such as Atria and Sunrise, to manage those communities. In our office operations segment, we primarily acquire, own, develop, lease and manage MOBs and research and innovation centers throughout the United States. 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, loans receivable and investments, and miscellaneous accounts receivable. Our chief operating decision makers evaluate performance of the combined properties in each reportable business segment and determine how to allocate resources to those segments, in significant part, based on segment NOI and related measures. We define segment NOI as total revenues, less interest and other income, property-level operating expenses and office building services costs. We consider segment NOI useful 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 between periods on a consistent basis. In order to facilitate a clear understanding of our historical consolidated operating results, segment NOI should be examined in conjunction with net income attributable to common stockholders 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 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 September 30, 2020
| Triple-Net Leased Properties |  | Senior Living Operations |  | Office Operations |  | All Other |  | Total
| (In thousands)
Revenues: |  |  |  |  |  |  |  |  |
Rental income | $ | 156,136 |  |  | $ | — |  |  | $ | 198,376 |  |  | $ | — |  |  | $ | 354,512 |
Resident fees and services | — |  |  | 541,322 |  |  | — |  |  | — |  |  | 541,322 |
Office building and other services revenue | — |  |  | — |  |  | 2,440 |  |  | 1,428 |  |  | 3,868 |
Income from loans and investments | — |  |  | — |  |  | — |  |  | 18,666 |  |  | 18,666 |
Interest and other income | — |  |  | — |  |  | — |  |  | 572 |  |  | 572 |
Total revenues | $ | 156,136 |  |  | $ | 541,322 |  |  | $ | 200,816 |  |  | $ | 20,666 |  |  | $ | 918,940 |
Total revenues | $ | 156,136 |  |  | $ | 541,322 |  |  | $ | 200,816 |  |  | $ | 20,666 |  |  | $ | 918,940 |
Less: |  |  |  |  |  |  |  |  |
Interest and other income | — |  |  | — |  |  | — |  |  | 572 |  |  | 572 |
Property-level operating expenses | 5,398 |  |  | 422,653 |  |  | 66,934 |  |  | — |  |  | 494,985 |
Office building services costs | — |  |  | — |  |  | 557 |  |  | — |  |  | 557 |
Segment NOI | $ | 150,738 |  |  | $ | 118,669 |  |  | $ | 133,325 |  |  | $ | 20,094 |  |  | 422,826 |
Interest and other income |  |  |  |  |  |  |  |  | 572 |
Interest expense |  |  |  |  |  |  |  |  | (115,505) |
Depreciation and amortization |  |  |  |  |  |  |  |  | (249,366) |
General, administrative and professional fees |  |  |  |  |  |  |  |  | (34,228) |
Loss on extinguishment of debt, net |  |  |  |  |  |  |  |  | (7,386) |
Merger-related expenses and deal costs |  |  |  |  |  |  |  |  | (11,325) |
Allowance on loans receivable and investments |  |  |  |  |  |  |  |  | (4,999) |
Other |  |  |  |  |  |  |  |  | (3,534) |
Income from unconsolidated entities |  |  |  |  |  |  |  |  | 865 |
Gain on real estate dispositions |  |  |  |  |  |  |  |  | 12,622 |
Income tax benefit |  |  |  |  |  |  |  |  | 3,195 |
Income from continuing operations |  |  |  |  |  |  |  |  | 13,737 |
Net income |  |  |  |  |  |  |  |  | 13,737 |
Net income attributable to noncontrolling interests |  |  |  |  |  |  |  |  | 986 |
Net income attributable to common stockholders |  |  |  |  |  |  |  |  | $ | 12,751 |
| For the Three Months Ended September 30, 2019
| Triple-Net Leased Properties |  | Senior Living Operations |  | Office Operations |  | All Other |  | Total
| (In thousands)
Revenues: |  |  |  |  |  |  |  |  |
Rental income | $ | 193,383 |  |  | $ | — |  |  | $ | 214,939 |  |  | $ | — |  |  | $ | 408,322 |
Resident fees and services | — |  |  | 541,090 |  |  | — |  |  | — |  |  | 541,090 |
Office building and other services revenue | — |  |  | — |  |  | 2,059 |  |  | 900 |  |  | 2,959 |
Income from loans and investments | — |  |  | — |  |  | — |  |  | 30,164 |  |  | 30,164 |
Interest and other income | — |  |  | — |  |  | — |  |  | 620 |  |  | 620 |
Total revenues | $ | 193,383 |  |  | $ | 541,090 |  |  | $ | 216,998 |  |  | $ | 31,684 |  |  | $ | 983,155 |
Total revenues | $ | 193,383 |  |  | $ | 541,090 |  |  | $ | 216,998 |  |  | $ | 31,684 |  |  | $ | 983,155 |
Less: |  |  |  |  |  |  |  |  |
Interest and other income | — |  |  | — |  |  | — |  |  | 620 |  |  | 620 |
Property-level operating expenses | 6,338 |  |  | 388,011 |  |  | 67,144 |  |  | — |  |  | 461,493 |
Office building services costs | — |  |  | — |  |  | 627 |  |  | — |  |  | 627 |
Segment NOI | $ | 187,045 |  |  | $ | 153,079 |  |  | $ | 149,227 |  |  | $ | 31,064 |  |  | 520,415 |
Interest and other income |  |  |  |  |  |  |  |  | 620 |
Interest expense |  |  |  |  |  |  |  |  | (113,967) |
Depreciation and amortization |  |  |  |  |  |  |  |  | (234,603) |
General, administrative and professional fees |  |  |  |  |  |  |  |  | (40,530) |
Loss on extinguishment of debt, net |  |  |  |  |  |  |  |  | (37,434) |
Merger-related expenses and deal costs |  |  |  |  |  |  |  |  | (4,304) |
Other |  |  |  |  |  |  |  |  | (2,164) |
Income from unconsolidated entities |  |  |  |  |  |  |  |  | 854 |
Gain on real estate dispositions |  |  |  |  |  |  |  |  | 36 |
Income tax expense |  |  |  |  |  |  |  |  | (2,005) |
Income from continuing operations |  |  |  |  |  |  |  |  | 86,918 |
Net income |  |  |  |  |  |  |  |  | 86,918 |
Net income attributable to noncontrolling interests |  |  |  |  |  |  |  |  | 1,659 |
Net income attributable to common stockholders |  |  |  |  |  |  |  |  | $ | 85,259 |
| For the Nine Months Ended September 30, 2020
| Triple-Net Leased Properties |  | Senior Living Operations |  | Office Operations |  | All Other |  | Total
| (In thousands)
Revenues: |  |  |  |  |  |  |  |  |
Rental income | $ | 527,238 |  |  | $ | — |  |  | $ | 599,696 |  |  | $ | — |  |  | $ | 1,126,934 |
Resident fees and services | — |  |  | 1,667,421 |  |  | — |  |  | — |  |  | 1,667,421 |
Office building and other services revenue | — |  |  | — |  |  | 6,871 |  |  | 3,798 |  |  | 10,669 |
Income from loans and investments | — |  |  | — |  |  | — |  |  | 62,203 |  |  | 62,203 |
Interest and other income | — |  |  | — |  |  | — |  |  | 6,965 |  |  | 6,965 |
Total revenues | $ | 527,238 |  |  | $ | 1,667,421 |  |  | $ | 606,567 |  |  | $ | 72,966 |  |  | $ | 2,874,192 |
Total revenues | $ | 527,238 |  |  | $ | 1,667,421 |  |  | $ | 606,567 |  |  | $ | 72,966 |  |  | $ | 2,874,192 |
Less: |  |  |  |  |  |  |  |  |
Interest and other income | — |  |  | — |  |  | — |  |  | 6,965 |  |  | 6,965 |
Property-level operating expenses | 17,004 |  |  | 1,265,362 |  |  | 192,192 |  |  | — |  |  | 1,474,558 |
Office building services costs | — |  |  | — |  |  | 1,827 |  |  | — |  |  | 1,827 |
Segment NOI | $ | 510,234 |  |  | $ | 402,059 |  |  | $ | 412,548 |  |  | $ | 66,001 |  |  | 1,390,842 |
Interest and other income |  |  |  |  |  |  |  |  | 6,965 |
Interest expense |  |  |  |  |  |  |  |  | (355,333) |
Depreciation and amortization |  |  |  |  |  |  |  |  | (847,797) |
General, administrative and professional fees |  |  |  |  |  |  |  |  | (106,747) |
Loss on extinguishment of debt, net |  |  |  |  |  |  |  |  | (7,386) |
Merger-related expenses and deal costs |  |  |  |  |  |  |  |  | (26,129) |
Allowance on loans receivable and investments |  |  |  |  |  |  |  |  | (34,654) |
Other |  |  |  |  |  |  |  |  | (10,624) |
Loss from unconsolidated entities |  |  |  |  |  |  |  |  | (15,861) |
Gain on real estate dispositions |  |  |  |  |  |  |  |  | 240,101 |
Income tax benefit |  |  |  |  |  |  |  |  | 95,855 |
Income from continuing operations |  |  |  |  |  |  |  |  | 329,232 |
Net income |  |  |  |  |  |  |  |  | 329,232 |
Net income attributable to noncontrolling interests |  |  |  |  |  |  |  |  | 534 |
Net income attributable to common stockholders |  |  |  |  |  |  |  |  | $ | 328,698 |
| For the Nine Months Ended September 30, 2019
| Triple-Net Leased Properties |  | Senior Living Operations |  | Office Operations |  | All Other |  | Total
| (In thousands)
Revenues: |  |  |  |  |  |  |  |  |
Rental income | $ | 589,833 |  |  | $ | — |  |  | $ | 618,555 |  |  | $ | — |  |  | $ | 1,208,388 |
Resident fees and services | — |  |  | 1,583,262 |  |  | — |  |  | — |  |  | 1,583,262 |
Office building and other services revenue | — |  |  | — |  |  | 5,685 |  |  | 2,483 |  |  | 8,168 |
Income from loans and investments | — |  |  | — |  |  | — |  |  | 66,819 |  |  | 66,819 |
Interest and other income | — |  |  | — |  |  | — |  |  | 10,109 |  |  | 10,109 |
Total revenues | $ | 589,833 |  |  | $ | 1,583,262 |  |  | $ | 624,240 |  |  | $ | 79,411 |  |  | $ | 2,876,746 |
Total revenues | $ | 589,833 |  |  | $ | 1,583,262 |  |  | $ | 624,240 |  |  | $ | 79,411 |  |  | $ | 2,876,746 |
Less: |  |  |  |  |  |  |  |  |
Interest and other income | — |  |  | — |  |  | — |  |  | 10,109 |  |  | 10,109 |
Property-level operating expenses | 20,092 |  |  | 1,115,834 |  |  | 191,972 |  |  | — |  |  | 1,327,898 |
Office building services costs | — |  |  | — |  |  | 1,775 |  |  | — |  |  | 1,775 |
Segment NOI | $ | 569,741 |  |  | $ | 467,428 |  |  | $ | 430,493 |  |  | $ | 69,302 |  |  | 1,536,964 |
Interest and other income |  |  |  |  |  |  |  |  | 10,109 |
Interest expense |  |  |  |  |  |  |  |  | (334,955) |
Depreciation and amortization |  |  |  |  |  |  |  |  | (696,710) |
General, administrative and professional fees |  |  |  |  |  |  |  |  | (124,369) |
Loss on extinguishment of debt, net |  |  |  |  |  |  |  |  | (41,861) |
Merger-related expenses and deal costs |  |  |  |  |  |  |  |  | (11,084) |
Other |  |  |  |  |  |  |  |  | 9,294 |
Loss from unconsolidated entities |  |  |  |  |  |  |  |  | (2,621) |
Gain on real estate dispositions |  |  |  |  |  |  |  |  | 24,633 |
Income tax benefit |  |  |  |  |  |  |  |  | 57,004 |
Income from continuing operations |  |  |  |  |  |  |  |  | 426,404 |
Net income |  |  |  |  |  |  |  |  | 426,404 |
Net income attributable to noncontrolling interests |  |  |  |  |  |  |  |  | 4,831 |
Net income attributable to common stockholders |  |  |  |  |  |  |  |  | $ | 421,573 |
Capital expenditures, including investments in real estate property and development project expenditures, by reportable business segment are as follows:
| For the Three Months Ended September 30, |  | For the Nine Months Ended September 30,
| 2020 |  | 2019 |  | 2020 |  | 2019
| (In thousands)
Capital expenditures: |  |  |  |  |  |  |
Triple-net leased properties | $ | 11,832 |  |  | $ | 13,558 |  |  | $ | 33,000 |  |  | $ | 27,805 |
Senior living operations | 46,349 |  |  | 780,837 |  |  | 129,165 |  |  | 845,290 |
Office operations | 112,432 |  |  | 94,396 |  |  | 319,834 |  |  | 396,342 |
Total capital expenditures | $ | 170,613 |  |  | $ | 888,791 |  |  | $ | 481,999 |  |  | $ | 1,269,437 |
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 September 30, |  | For the Nine Months Ended September 30,
| 2020 |  | 2019 |  | 2020 |  | 2019
| (In thousands)
Revenues: |  |  |  |  |  |  |
United States | $ | 817,949 |  |  | $ | 904,031 |  |  | $ | 2,569,467 |  |  | $ | 2,688,329 |
Canada | 96,896 |  |  | 72,495 |  |  | 287,056 |  |  | 167,881 |
United Kingdom | 4,095 |  |  | 6,629 |  |  | 17,669 |  |  | 20,536 |
Total revenues | $ | 918,940 |  |  | $ | 983,155 |  |  | $ | 2,874,192 |  |  | $ | 2,876,746 |
| As of September 30, 2020 |  | As of December 31, 2019
| (In thousands)
Net real estate property: |  |  |
United States | $ | 17,874,378 |  |  | $ | 18,636,839 |
Canada | 2,853,245 |  |  | 2,830,850 |
United Kingdom | 250,789 |  |  | 266,885 |
Total net real estate property | $ | 20,978,412 |  |  | $ | 21,734,573 |

X
- References No definition available. + Details
Name: | us-gaap_SegmentReportingAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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 http://asc.fasb.org/extlink&oid=120311839&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 http://asc.fasb.org/extlink&oid=120311839&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 http://asc.fasb.org/extlink&oid=120311839&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 http://asc.fasb.org/extlink&oid=120311839&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 http://asc.fasb.org/extlink&oid=120311839&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 http://asc.fasb.org/extlink&oid=120311839&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 http://asc.fasb.org/extlink&oid=120311839&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 http://asc.fasb.org/extlink&oid=120311839&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 http://asc.fasb.org/extlink&oid=120311839&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 http://asc.fasb.org/extlink&oid=120311839&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 http://asc.fasb.org/extlink&oid=120311839&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 http://asc.fasb.org/extlink&oid=120311839&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 http://asc.fasb.org/extlink&oid=120311839&loc=d3e8721-108599 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
Name: | us-gaap_SegmentReportingDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration