Segment Disclosures (Tables)

3 Months Ended

Mar. 31, 2015

Information of revenue of reportable segment (in thousands)

For the three months ended March 31, 2015:


							Investment
	Rental		Resident Fees		Interest		Management		Total				Adjusted
Segments	Revenues(1)		and Services		Income		Fee Income		Revenues		NOI(2)		(Cash) NOI(2)
Senior housing	$	127,382	$	105,013	$	7,394	$	—	$	239,789	$	156,885	$	150,472
Post-acute/skilled		140,576		—		25,868		—		166,444		140,043		121,960
Life science		83,551		—		—		1		83,552		66,852		63,777
Medical office		98,305		—		—		459		98,764		60,053		58,187
Hospital		22,242		—		—		—		22,242		21,205		21,457
Total	$	472,056	$	105,013	$	33,262	$	460	$	610,791	$	445,038	$	415,853

For the three months ended March 31, 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	$	150,085	$	38,053	$	3,284	$	—	$	191,422	$	163,590	$	150,375
Post-acute/skilled		137,780		—		13,412		—		151,192		137,248		118,099
Life science		76,122		—		—		1		76,123		61,961		58,829
Medical office		89,262		—		—		448		89,710		53,746		53,029
Hospital		21,545		—		—		—		21,545		20,595		20,661
Total	$	474,794	$	38,053	$	16,696	$	449	$	529,992	$	437,140	$	400,993

(1)

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

(2)

NOI and Adjusted NOI are non-GAAP supplemental financial measures 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 expense; NOI excludes all other financial statement amounts included in net (loss) income as presented below. 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 market lease intangibles and lease termination fees. Adjusted NOI is oftentimes 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 (loss) income is the most directly comparable GAAP measure to NOI. NOI should not be viewed as an alternative measure of operating performance to net (loss) income as defined by GAAP because it does not reflect various 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 (loss) income to NOI and adjusted NOI (in thousands)


	Three Months Ended March 31,
	2015		2014
Net (loss) income	$	(237,503)	$	263,623
Interest income		(33,262)		(16,696)
Investment management fee income		(460)		(449)
Interest expense		116,780		106,638
Depreciation and amortization		114,522		107,388
General and administrative		24,773		20,899
Acquisition and pursuit costs		3,390		495
Impairments		478,464		—
Gains on sales of real estate, net of income taxes		(6,264)		—
Other income, net		(1,724)		(1,930)
Income taxes (benefit) provision		(77)		1,446
Equity income from unconsolidated joint ventures		(13,601)		(14,528)
Total discontinued operations		—		(29,746)
NOI		445,038		437,140
Straight-line rents		(9,546)		(13,968)
DFL accretion		(20,304)		(21,422)
Amortization of above and below market lease intangibles, net		(378)		(168)
Lease termination fees		1,043		(578)
NOI adjustments related to discontinued operations		—		(11)
Adjusted (Cash) NOI	$	415,853	$	400,993

Reconciliation of company's assets to total assets (in thousands)


	March 31,		December 31,
Segments	2015		2014
Senior housing	$	8,445,616	$	8,383,345
Post-acute/skilled nursing		6,488,822		6,875,122
Life science		4,171,320		4,154,789
Medical office		2,997,583		2,988,888
Hospital		639,807		640,253
Gross segment assets		22,743,148		23,042,397
Accumulated depreciation and amortization		(2,680,584)		(2,600,072)
Net segment assets		20,062,564		20,442,325
Other non-segment assets		961,878		927,615
Total assets	$	21,024,442	$	21,369,940

- 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.

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