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SEGMENT INFORMATION | 9 Months Ended
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Sep. 30, 2024
Segment Reporting [Abstract] |
SEGMENT INFORMATION | NOTE 16—SEGMENT INFORMATION As of September 30, 2024, we operated through three reportable business segments: SHOP, outpatient medical and research portfolio and triple-net leased properties. In our SHOP segment, we invest in senior housing communities throughout the United States and Canada and engage operators to operate those communities. In our outpatient medical and research portfolio segment, we primarily acquire, own, develop, lease and manage outpatient medical buildings and research centers throughout the United States. In our triple-net leased properties segment, we invest in and own senior housing communities, skilled nursing facilities (“SNFs”), long term acute care hospitals (“LTACs”), freestanding inpatient rehabilitation facilities (“IRFs”) and other healthcare facilities throughout the United States and the United Kingdom and lease those properties to tenants under triple-net or absolute-net leases that obligate the tenants to pay all property-related expenses, including maintenance, utilities, repairs, taxes, insurance and capital expenditures. Information provided for “non-segment” includes management fees and promote revenues, net of expenses related to our third-party institutional capital management business, income from loans and investments and various corporate-level expenses not directly attributable to any of our three reportable business segments. Non-segment assets consist primarily of corporate assets, including cash, restricted cash, loans receivable and investments and miscellaneous accounts receivable as well as investments in unconsolidated entities. Our investments in unconsolidated entities include investments made through our third-party institutional capital management business, Ventas Investment Management (“VIM”). Our chief operating decision maker evaluates performance of the combined properties in each reportable business segment and determines how to allocate resources to those segments based on NOI for each segment. We define NOI as total revenues, less interest and other income, property-level operating expenses and third party capital management expenses. We consider 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, 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. See “Non-GAAP Financial Measures” included elsewhere in this Quarterly Report on Form 10-Q for additional disclosure and reconciliations of net income attributable to common stockholders, as computed in accordance with GAAP, to NOI. 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 (dollars in thousands):
| For the Three Months Ended September 30, 2024
| SHOP |  | OM&R |  | NNN |  | Non-Segment |  | Total
Revenues |  |  |  |  |  |  |  |  |
Rental income | $ | — |  |  | $ | 220,957 |  |  | $ | 155,349 |  |  | $ | — |  |  | $ | 376,306 |
Resident fees and services | 845,532 |  |  | — |  |  | — |  |  | — |  |  | 845,532 |
Third party capital management revenues | — |  |  | 618 |  |  | — |  |  | 3,774 |  |  | 4,392 |
Income from loans and investments | — |  |  | — |  |  | — |  |  | 1,881 |  |  | 1,881 |
Interest and other income | — |  |  | — |  |  | — |  |  | 8,204 |  |  | 8,204 |
Total revenues | $ | 845,532 |  |  | $ | 221,575 |  |  | $ | 155,349 |  |  | $ | 13,859 |  |  | $ | 1,236,315 |
Total revenues | $ | 845,532 |  |  | $ | 221,575 |  |  | $ | 155,349 |  |  | $ | 13,859 |  |  | $ | 1,236,315 |
Less: |  |  |  |  |  |  |  |  |
Interest and other income | — |  |  | — |  |  | — |  |  | 8,204 |  |  | 8,204 |
Property-level operating expenses | 631,550 |  |  | 77,479 |  |  | 4,379 |  |  | — |  |  | 713,408 |
Third party capital management expenses | — |  |  | — |  |  | — |  |  | 1,553 |  | 1,553 |
NOI | $ | 213,982 |  |  | $ | 144,096 |  |  | $ | 150,970 |  |  | $ | 4,102 |  |  | 513,150 |
Interest and other income |  |  |  |  |  |  |  |  | 8,204 |
Interest expense |  |  |  |  |  |  |  |  | (150,437) |
Depreciation and amortization |  |  |  |  |  |  |  |  | (304,268) |
General, administrative and professional fees |  |  |  |  |  |  |  |  | (35,092) |
Transaction, transition and restructuring costs |  |  |  |  |  |  |  |  | (8,580) |
Recovery of allowance on loans receivable and investments, net |  |  |  |  |  |  |  |  | 56 |
Other expense |  |  |  |  |  |  |  |  | (3,935) |
Income from unconsolidated entities |  |  |  |  |  |  |  |  | 4,629 |
Gain on real estate dispositions |  |  |  |  |  |  |  |  | 271 |
Income tax expense |  |  |  |  |  |  |  |  | (3,002) |
Net income |  |  |  |  |  |  |  |  | 20,996 |
Net income attributable to noncontrolling interests |  |  |  |  |  |  |  |  | 1,753 |
Net income attributable to common stockholders |  |  |  |  |  |  |  |  | $ | 19,243 |
| For the Three Months Ended September 30, 2023
| SHOP |  | OM&R |  | NNN |  | Non-Segment |  | Total
Revenues |  |  |  |  |  |  |  |  |
Rental income | $ | — |  |  | $ | 226,326 |  |  | $ | 159,812 |  |  | $ | — |  |  | $ | 386,138 |
Resident fees and services | 754,417 |  |  | — |  |  | — |  |  | — |  |  | 754,417 |
Third party capital management revenues | — |  |  | 662 |  |  | — |  |  | 4,653 |  |  | 5,315 |
Income from loans and investments | — |  |  | — |  |  | — |  |  | 1,208 |  |  | 1,208 |
Interest and other income | — |  |  | — |  |  | — |  |  | 2,754 |  |  | 2,754 |
Total revenues | $ | 754,417 |  |  | $ | 226,988 |  |  | $ | 159,812 |  |  | $ | 8,615 |  |  | $ | 1,149,832 |
Total revenues | $ | 754,417 |  |  | $ | 226,988 |  |  | $ | 159,812 |  |  | $ | 8,615 |  |  | $ | 1,149,832 |
Less: |  |  |  |  |  |  |  |  |
Interest and other income | — |  |  | — |  |  | — |  |  | 2,754 |  |  | 2,754 |
Property-level operating expenses | 573,715 |  |  | 78,915 |  |  | 3,847 |  |  | — |  |  | 656,477 |
Third party capital management expenses | — |  |  | — |  |  | — |  |  | 1,472 |  |  | 1,472 |
NOI | $ | 180,702 |  |  | $ | 148,073 |  |  | $ | 155,965 |  |  | $ | 4,389 |  |  | 489,129 |
Interest and other income |  |  |  |  |  |  |  |  | 2,754 |
Interest expense |  |  |  |  |  |  |  |  | (147,919) |
Depreciation and amortization |  |  |  |  |  |  |  |  | (370,377) |
General, administrative and professional fees |  |  |  |  |  |  |  |  | (33,297) |
Loss on extinguishment of debt, net |  |  |  |  |  |  |  |  | (612) |
Transaction, transition and restructuring costs |  |  |  |  |  |  |  |  | (7,125) |
Recovery of allowance on loans receivable and investments, net |  |  |  |  |  |  |  |  | 66 |
Other expense |  |  |  |  |  |  |  |  | (9,432) |
Loss from unconsolidated entities |  |  |  |  |  |  |  |  | (5,119) |
Gain on real estate dispositions |  |  |  |  |  |  |  |  | 10,711 |
Income tax benefit |  |  |  |  |  |  |  |  | 1,662 |
Net loss |  |  |  |  |  |  |  |  | (69,559) |
Net income attributable to noncontrolling interests |  |  |  |  |  |  |  |  | 1,565 |
Net loss attributable to common stockholders |  |  |  |  |  |  |  |  | $ | (71,124) |
| For the Nine Months Ended September 30, 2024
| SHOP |  | OM&R |  | NNN |  | Non-Segment |  | Total
Revenues |  |  |  |  |  |  |  |  |
Rental income | $ | — |  |  | $ | 658,687 |  |  | $ | 464,651 |  |  | $ | — |  |  | $ | 1,123,338 |
Resident fees and services | 2,476,436 |  |  | — |  |  | — |  |  | — |  |  | 2,476,436 |
Third party capital management revenues | — |  |  | 1,954 |  |  | — |  |  | 11,066 |  |  | 13,020 |
Income from loans and investments | — |  |  | — |  |  | — |  |  | 4,606 |  |  | 4,606 |
Interest and other income | — |  |  | — |  |  | — |  |  | 19,809 |  |  | 19,809 |
Total revenues | $ | 2,476,436 |  |  | $ | 660,641 |  |  | $ | 464,651 |  |  | $ | 35,481 |  |  | $ | 3,637,209 |
Total revenues | $ | 2,476,436 |  |  | $ | 660,641 |  |  | $ | 464,651 |  |  | $ | 35,481 |  |  | $ | 3,637,209 |
Less: |  |  |  |  |  |  |  |  |
Interest and other income | — |  |  | — |  |  | — |  |  | 19,809 |  |  | 19,809 |
Property-level operating expenses | 1,844,730 |  |  | 224,703 |  |  | 11,623 |  |  | — |  |  | 2,081,056 |
Third party capital management expenses | — |  |  | — |  |  | — |  |  | 4,956 |  |  | 4,956 |
NOI | $ | 631,706 |  |  | $ | 435,938 |  |  | $ | 453,028 |  |  | $ | 10,716 |  |  | 1,531,388 |
Interest and other income |  |  |  |  |  |  |  |  | 19,809 |
Interest expense |  |  |  |  |  |  |  |  | (449,629) |
Depreciation and amortization |  |  |  |  |  |  |  |  | (944,371) |
General, administrative and professional fees |  |  |  |  |  |  |  |  | (121,556) |
Loss on extinguishment of debt, net |  |  |  |  |  |  |  |  | (672) |
Transaction, transition and restructuring costs |  |  |  |  |  |  |  |  | (16,143) |
Recovery of allowance on loans receivable and investments, net |  |  |  |  |  |  |  |  | 166 |
Shareholder relations matters |  |  |  |  |  |  |  |  | (15,751) |
Other expense |  |  |  |  |  |  |  |  | (10,729) |
Loss from unconsolidated entities |  |  |  |  |  |  |  |  | (5,406) |
Gain on real estate dispositions |  |  |  |  |  |  |  |  | 50,282 |
Income tax expense |  |  |  |  |  |  |  |  | (7,764) |
Net income |  |  |  |  |  |  |  |  | 29,624 |
Net income attributable to noncontrolling interests |  |  |  |  |  |  |  |  | 5,306 |
Net income attributable to common stockholders |  |  |  |  |  |  |  |  | $ | 24,318 |
| For the Nine Months Ended September 30, 2023
| SHOP |  | OM&R |  | NNN |  | Non-Segment |  | Total
Revenues |  |  |  |  |  |  |  |  |
Rental income | $ | — |  |  | $ | 645,137 |  |  | $ | 463,906 |  |  | $ | — |  |  | $ | 1,109,043 |
Resident fees and services | 2,184,024 |  |  | — |  |  | — |  |  | — |  |  | 2,184,024 |
Third party capital management revenues | — |  |  | 1,849 |  |  | — |  |  | 11,639 |  |  | 13,488 |
Income from loans and investments | — |  |  | — |  |  | — |  |  | 21,351 |  |  | 21,351 |
Interest and other income | — |  |  | — |  |  | — |  |  | 5,529 |  |  | 5,529 |
Total revenues | $ | 2,184,024 |  |  | $ | 646,986 |  |  | $ | 463,906 |  |  | $ | 38,519 |  |  | $ | 3,333,435 |
Total revenues | $ | 2,184,024 |  |  | $ | 646,986 |  |  | $ | 463,906 |  |  | $ | 38,519 |  |  | $ | 3,333,435 |
Less: |  |  |  |  |  |  |  |  |
Interest and other income | — |  |  | — |  |  | — |  |  | 5,529 |  |  | 5,529 |
Property-level operating expenses | 1,658,047 |  |  | 217,999 |  |  | 11,180 |  |  | — |  |  | 1,887,226 |
Third party capital management expenses | — |  |  | — |  |  | — |  |  | 4,614 |  |  | 4,614 |
NOI | $ | 525,977 |  |  | $ | 428,987 |  |  | $ | 452,726 |  |  | $ | 28,376 |  |  | 1,436,066 |
Interest and other income |  |  |  |  |  |  |  |  | 5,529 |
Interest expense |  |  |  |  |  |  |  |  | (419,259) |
Depreciation and amortization |  |  |  |  |  |  |  |  | (957,185) |
General, administrative and professional fees |  |  |  |  |  |  |  |  | (112,494) |
Gain on extinguishment of debt, net |  |  |  |  |  |  |  |  | 6,189 |
Transaction, transition and restructuring costs |  |  |  |  |  |  |  |  | (11,580) |
Recovery of allowance on loans receivable and investments, net |  |  |  |  |  |  |  |  | 20,195 |
Gain on foreclosure of real estate |  |  |  |  |  |  |  |  | 29,127 |
Other income |  |  |  |  |  |  |  |  | 765 |
Income from unconsolidated entities |  |  |  |  |  |  |  |  | 20,512 |
Gain on real estate dispositions |  |  |  |  |  |  |  |  | 22,317 |
Income tax benefit |  |  |  |  |  |  |  |  | 14,237 |
Net income |  |  |  |  |  |  |  |  | 54,419 |
Net income attributable to noncontrolling interests |  |  |  |  |  |  |  |  | 4,573 |
Net income attributable to common stockholders |  |  |  |  |  |  |  |  | $ | 49,846 |
Assets by reportable business segment are as follows (dollars in thousands):
| As of September 30, 2024 |  | As of December 31, 2023
Assets: |  |  |  |  |  |  |
SHOP | $ | 12,854,462 |  |  | 50.7 | % |  | $ | 12,864,029 |  |  | 52.0 | %
Outpatient medical and research portfolio | 6,879,036 |  |  | 27.1 |  |  | 6,943,446 |  |  | 28.1 |
Triple-net leased properties | 4,022,354 |  |  | 15.9 |  |  | 4,120,691 |  |  | 16.7 |
Non-segment | 1,591,337 |  |  | 6.3 |  |  | 797,267 |  |  | 3.2 |
Total assets | $ | 25,347,189 |  |  | 100.0 | % |  | $ | 24,725,433 |  |  | 100.0 | %

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