Segment Disclosures (Tables)

9 Months Ended

Sep. 30, 2014

Information of revenue of reportable segment

For the three months ended September 30, 2014:


							Investment
	Rental		Resident Fees		Interest		Management		Total				Adjusted
Segments	Revenues(1)		and Services		Income		Fee Income		Revenues		NOI(2)		(Cash) NOI(2)
Senior housing	$	183,834	$	62,213	$	3,919	$	—	$	249,966	$	203,030	$	155,512
Post-acute/skilled		139,205		—		13,598		—		152,803		138,671		121,978
Life science		79,450		—		—		1		79,451		62,813		60,722
Medical office		92,412		—		—		446		92,858		53,953		54,481
Hospital		21,560		—		—		—		21,560		20,608		20,738
Total	$	516,461	$	62,213	$	17,517	$	447	$	596,638	$	479,075	$	413,431

For the three months ended September 30, 2013:


							Investment
	Rental		Resident Fees		Interest		Management		Total				Adjusted
Segments	Revenues(1)		and Services		Income		Fee Income		Revenues		NOI(2)		(Cash) NOI(2)
Senior housing	$	149,443	$	36,370	$	3,121	$	—	$	188,934	$	162,078	$	148,684
Post-acute/skilled		136,017		—		38,642		—		174,659		135,388		117,921
Life science		72,531		—		—		1		72,532		58,440		56,352
Medical office		88,425		—		—		463		88,888		52,438		52,397
Hospital		20,829		—		315		—		21,144		19,854		19,883
Total	$	467,245	$	36,370	$	42,078	$	464	$	546,157	$	428,198	$	395,237

For the nine months ended September 30, 2014:


							Investment
	Rental		Resident Fees		Interest		Management		Total				Adjusted
Segments	Revenues(1)		and Services		Income		Fee Income		Revenues		NOI(2)		(Cash) NOI(2)
Senior housing	$	485,823	$	138,205	$	10,633	$	—	$	634,661	$	531,640	$	459,363
Post-acute/skilled		415,533		—		40,517		—		456,050		413,934		362,182
Life science		233,113		—		—		3		233,116		186,866		178,890
Medical office		273,215		—		—		1,337		274,552		162,075		161,280
Hospital		64,372		—		—		—		64,372		61,573		61,874
Total	$	1,472,056	$	138,205	$	51,150	$	1,340	$	1,662,751	$	1,356,088	$	1,223,589

For the nine months ended September 30, 2013:


							Investment
	Rental		Resident Fees		Interest		Management		Total				Adjusted
Segments	Revenues(1)		and Services		Income		Fee Income		Revenues		NOI(2)		(Cash) NOI(2)
Senior housing	$	448,600	$	108,509	$	8,328	$	—	$	565,437	$	486,516	$	439,410
Post-acute/skilled		405,108		—		59,656		—		464,764		403,218		349,590
Life science		221,088		—		—		3		221,091		179,775		170,957
Medical office		265,252		—		—		1,403		266,655		159,888		157,406
Hospital		51,007		—		627		—		51,634		48,177		59,664
Total	$	1,391,055	$	108,509	$	68,611	$	1,406	$	1,569,581	$	1,277,574	$	1,177,027

(1) Represents rental and related revenues, tenant recoveries and income from DFLs.

(2) NOI is a non-GAAP supplemental financial measure used to evaluate the operating performance of real estate. The Company defines NOI as rental and related revenues, including tenant recoveries, resident fees and services, and income from DFLs, less property level operating expenses. NOI excludes interest income, investment management fee income, interest expense, depreciation and amortization, general and administrative expenses, litigation settlement, impairments, impairment recoveries, other income, net, income taxes, equity income from and impairments of investments in unconsolidated joint ventures, and discontinued operations. The Company believes NOI provides relevant and useful information because it reflects only income and operating expense items that are incurred at the property level and presents them on an unleveraged basis. Adjusted NOI is calculated as NOI after eliminating the effects of straight-line rents, DFL accretion, amortization of above and below market lease intangibles, and lease termination fees. Adjusted NOI is also referred to as “Cash NOI.” The Company uses NOI and adjusted NOI to make decisions about resource allocations and to assess and compare property level performance. The Company believes that net income is the most directly comparable GAAP measure to NOI. NOI should not be viewed as an alternative measure of operating performance to net income as defined by GAAP because it does not reflect the aforementioned excluded items. Further, the Company’s definition of NOI may not be comparable to the definition used by other REITs or real estate companies, as those companies may use different methodologies for calculating NOI.

Reconciliation of reported net income to NOI and adjusted NOI


	Three Months Ended September 30,				Nine Months Ended September 30,
	2014		2013		2014		2013
Net income	$	251,059	$	236,858	$	736,961	$	687,367
Interest income		(17,517)		(42,078)		(51,150)		(68,611)
Investment management fee income		(447)		(464)		(1,340)		(1,406)
Interest expense		111,275		108,088		324,755		325,650
Depreciation and amortization		122,975		104,783		343,496		317,172
General and administrative		24,954		45,326		75,410		90,043
Other income, net		(3,111)		(1,632)		(5,750)		(17,032)
Income taxes		55		1,034		2,840		3,553
Equity income from unconsolidated joint ventures		(10,168)		(13,892)		(39,388)		(44,278)
Total discontinued operations		—		(9,825)		(29,746)		(14,884)
NOI		479,075		428,198		1,356,088		1,277,574
Straight-line rents		(8,627)		(12,604)		(35,082)		(28,559)
DFL accretion		(18,760)		(19,822)		(57,995)		(65,386)
Amortization of above and below market lease intangibles, net		(276)		(346)		(619)		(6,414)
Lease termination fees		(37,981)		(205)		(38,792)		(220)
NOI adjustments related to discontinued operations		—		16		(11)		32
Adjusted (Cash) NOI	$	413,431	$	395,237	$	1,223,589	$	1,177,027

Reconciliation of company's assets to total assets


	September 30,		December 31,
Segments	2014		2013
Senior housing	$	8,427,636	$	7,803,085
Post-acute/skilled nursing		6,336,758		6,266,938
Life science		4,113,227		3,986,187
Medical office		2,892,081		2,686,069
Hospital		639,922		639,357
Gross segment assets		22,409,624		21,381,636
Accumulated depreciation and amortization		(2,488,484)		(2,257,188)
Net segment assets		19,921,140		19,124,448
Assets held-for-sale, net		—		9,819
Other non-segment assets		823,750		941,603
Total assets	$	20,744,890	$	20,075,870

- Definition

Tabular disclosure of the profit or loss and total assets for each reportable segment. An entity discloses certain information on each reportable segment if the amounts (a) are included in the measure of segment profit or loss reviewed by the chief operating decision maker or (b) are otherwise regularly provided to the chief operating decision maker, even if not included in that measure of segment profit or loss.

+ References+ Details