XML 34 R20.htm IDEA: XBRL DOCUMENT
v3.8.0.1

Segment Disclosures | 3 Months Ended
--- | ---
Mar. 31, 2018
Segment Reporting [Abstract] |
Segment Disclosures | Segment Disclosures The Company evaluates its business and allocates resources based on its reportable business segments: (i) senior housing triple-net, (ii) SHOP, (iii) life science and (iv) medical office. The Company has non-reportable segments that are comprised primarily of the Company’s debt investments, hospital properties, unconsolidated JVs (see below) and care homes in the U.K. The accounting policies of the segments are the same as those in Note 2 to the Consolidated Financial Statements in the Company’s 2017 Annual Report on Form 10-K filed with the SEC, as updated by Note 2 herein. During the three months ended March 31, 2018, there were no transfers of assets between segments. During the three months ended March 31, 2017, one senior housing triple-net facility was transferred to the Company’s SHOP segment. The Company evaluates performance based upon: (i) property NOI and (ii) Adjusted NOI. NOI is defined as rental and related revenues, including tenant recoveries, resident fees and services, and income from DFLs, less property level operating expenses (which exclude transition costs); NOI excludes all other financial statement amounts included in net income (loss). Adjusted NOI is calculated as NOI after eliminating the effects of straight-line rents, DFL non-cash interest, amortization of market lease intangibles, termination fees, and the impact of deferred community fee income and expense. During the fourth quarter of 2017, as a result of a change in how operating results are reported to the chief operating decision makers, for the purpose of evaluating performance and allocating resources, the Company began excluding unconsolidated JVs from its evaluation of its segments' operating results. Unconsolidated JVs are now reflected in other non-reportable segments. The adjustments to NOI and resulting Adjusted NOI for SHOP have been recast for prior periods to conform to the current period presentation which excludes: (i) the impact of deferred community fee income and expense, resulting in recognition as cash is received and expenses are paid and (ii) adjustments related to unconsolidated JVs (see above). Non-segment assets consist of assets in the Company's other non-reportable segments and corporate non-segment assets. Corporate non-segment assets consist primarily of corporate assets, including cash and cash equivalents, restricted cash, accounts receivable, net, marketable equity securities and, if any, real estate assets and liabilities held for sale. See Note 16 for other information regarding concentrations of credit risk. The following tables summarize information for the reportable segments (in thousands): For the three months ended March 31, 2018:
|  | Senior Housing Triple-Net |  | SHOP |  | Life Science |  | Medical Office |  | Other Non-reportable |  | Corporate Non-segment |  | Total
Rental revenues(1) |  | $ | 74,289 |  |  | $ | 144,670 |  |  | $ | 99,622 |  |  | $ | 123,935 |  |  | $ | 30,316 |  |  | $ | — |  |  | $ | 472,832 |
Operating expenses |  | (1,045 | ) |  | (101,746 | ) |  | (21,809 | ) |  | (46,696 | ) |  | (1,256 | ) |  | — |  |  | (172,552 | )
NOI |  | 73,244 |  |  | 42,924 |  |  | 77,813 |  |  | 77,239 |  |  | 29,060 |  |  | — |  |  | 300,280 |
Adjustments to NOI(2) |  | (1,865 | ) |  | (1,607 | ) |  | (3,751 | ) |  | (1,071 | ) |  | (1,392 | ) |  | — |  |  | (9,686 | )
Adjusted NOI |  | 71,379 |  |  | 41,317 |  |  | 74,062 |  |  | 76,168 |  |  | 27,668 |  |  | — |  |  | 290,594 |
Addback adjustments |  | 1,865 |  |  | 1,607 |  |  | 3,751 |  |  | 1,071 |  |  | 1,392 |  |  | — |  |  | 9,686 |
Interest income |  | — |  |  | — |  |  | — |  |  | — |  |  | 6,365 |  |  | — |  |  | 6,365 |
Interest expense |  | (600 | ) |  | (988 | ) |  | (83 | ) |  | (120 | ) |  | (728 | ) |  | (72,583 | ) |  | (75,102 | )
Depreciation and amortization |  | (21,906 | ) |  | (27,628 | ) |  | (36,080 | ) |  | (45,519 | ) |  | (12,117 | ) |  | — |  |  | (143,250 | )
General and administrative |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (29,175 | ) |  | (29,175 | )
Transaction costs |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (2,195 | ) |  | (2,195 | )
Gain (loss) on sales of real estate, net |  | — |  |  | 20,815 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 20,815 |
Other income (expense), net |  | — |  |  | — |  |  | — |  |  | — |  |  | (40,567 | ) |  | 160 |  |  | (40,407 | )
Income tax benefit (expense) |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 5,336 |  |  | 5,336 |
Equity income (loss) from unconsolidated JVs |  | — |  |  | — |  |  | — |  |  | — |  |  | 570 |  |  | — |  |  | 570 |
Net income (loss) |  | $ | 50,738 |  |  | $ | 35,123 |  |  | $ | 41,650 |  |  | $ | 31,600 |  |  | $ | (17,417 | ) |  | $ | (98,457 | ) |  | $ | 43,237 |
_______________________________________
(1) | Represents rental and related revenues, tenant recoveries, resident fees and services, and income from DFLs.
(2) | Represents straight-line rents, DFL non-cash interest, amortization of market lease intangibles, net, deferral of community fees, net and termination fees.
For the three months ended March 31, 2017:
|  | Senior Housing Triple-Net |  | SHOP |  | Life Science |  | Medical Office |  | Other Non-reportable |  | Corporate Non-segment |  | Total
Rental revenues(1) |  | $ | 100,034 |  |  | $ | 140,228 |  |  | $ | 85,321 |  |  | $ | 118,371 |  |  | $ | 29,883 |  |  | $ | — |  |  | $ | 473,837 |
Operating expenses |  | (1,111 | ) |  | (94,539 | ) |  | (17,319 | ) |  | (44,864 | ) |  | (1,248 | ) |  | — |  |  | (159,081 | )
NOI |  | 98,923 |  |  | 45,689 |  |  | 68,002 |  |  | 73,507 |  |  | 28,635 |  |  | — |  |  | 314,756 |
Adjustments to NOI(2) |  | (1,839 | ) |  | (310 | ) |  | (305 | ) |  | (961 | ) |  | (1,012 | ) |  | — |  |  | (4,427 | )
Adjusted NOI |  | 97,084 |  |  | 45,379 |  |  | 67,697 |  |  | 72,546 |  |  | 27,623 |  |  | — |  |  | 310,329 |
Addback adjustments |  | 1,839 |  |  | 310 |  |  | 305 |  |  | 961 |  |  | 1,012 |  |  | — |  |  | 4,427 |
Interest income |  | — |  |  | — |  |  | — |  |  | — |  |  | 18,331 |  |  | — |  |  | 18,331 |
Interest expense |  | (627 | ) |  | (4,596 | ) |  | (104 | ) |  | (129 | ) |  | (1,997 | ) |  | (79,265 | ) |  | (86,718 | )
Depreciation and amortization |  | (26,411 | ) |  | (26,358 | ) |  | (33,791 | ) |  | (42,729 | ) |  | (7,265 | ) |  | — |  |  | (136,554 | )
General and administrative |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (22,478 | ) |  | (22,478 | )
Transaction costs |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (1,057 | ) |  | (1,057 | )
Gain (loss) on sales of real estate, net |  | 268,464 |  |  | 366 |  |  | 44,633 |  |  | — |  |  | 3,795 |  |  | — |  |  | 317,258 |
Other income (expense), net |  | — |  |  | — |  |  | — |  |  | — |  |  | 50,895 |  |  | 313 |  |  | 51,208 |
Income tax benefit (expense) |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 6,162 |  |  | 6,162 |
Equity income (loss) from unconsolidated JVs |  | — |  |  | — |  |  | — |  |  | — |  |  | 3,269 |  |  | — |  |  | 3,269 |
Net income (loss) |  | $ | 340,349 |  |  | $ | 15,101 |  |  | $ | 78,740 |  |  | $ | 30,649 |  |  | $ | 95,663 |  |  | $ | (96,325 | ) |  | $ | 464,177 |
_______________________________________
(1) | Represents rental and related revenues, tenant recoveries, resident fees and services, and income from DFLs.
(2) | Represents straight-line rents, DFL non-cash interest, amortization of market lease intangibles, net, deferral of community fees, net and termination fees.
The following table summarizes the Company’s revenues by segment (in thousands):
|  | Three Months Ended March 31,
Segment |  | 2018 |  | 2017
Senior housing triple-net |  | $ | 74,289 |  |  | $ | 100,034 |
SHOP |  | 144,670 |  |  | 140,228 |
Life science |  | 99,622 |  |  | 85,321 |
Medical office |  | 123,935 |  |  | 118,371 |
Other non-reportable segments |  | 36,681 |  |  | 48,214 |
Total revenues |  | $ | 479,197 |  |  | $ | 492,168 |
See Notes 3, 4 and 6 for significant transactions impacting the Company’s segment assets during the periods presented.

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/presentationRef -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