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Segment Reporting | 6 Months Ended
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Jun. 30, 2022
Segment Reporting [Abstract] |
Segment Reporting | Segment Reporting We evaluate our business and make resource allocations on our two operating segments: Real Estate Investments and SHOP. Our Real Estate Investments includes lease, mortgage and other note investments in independent living facilities, assisted living facilities, entrance-fee communities, senior living campuses, skilled nursing facilities and a hospital. Under the Real Estate Investment segment, we invest in seniors housing and health care real estate through acquisition and financing of primarily single- tenant properties. Properties acquired are primarily leased under triple-net leases, and we are not involved in the management of the property. SHOP includes multi-tenant independent living facilities. The SHOP properties and related operations are controlled by the Company and are operated by property managers in exchange for a management fee (reference Note 5). We formed the SHOP segment effective April 1, 2022 upon termination of the triple-net lease for the legacy Holiday portfolio at which time the operations and properties of 15 ILFs were transferred into two separate ventures, as discussed further in Notes 5 and 8. The results associated with the prior triple-net lease structure for these properties are included in the Real Estate Investments segment and the results from operating these SHOP properties after the transition are included in our new SHOP segment. There is no impact to prior year’s presentation. Our chief operating decision maker evaluates performance based upon segment NOI. We define NOI as total revenues, less tenant reimbursements and property operating expenses. We use NOI to make decisions about resource allocations and to assess the property level performance of our properties. There were no intersegment transactions for the three and six months ended June 30, 2022. Capital expenditures for the six months ended June 30, 2022 were approximately $7.0 million for the Real Estate Investments segment and $0.7 million for the SHOP segment. Non-segment revenue consists mainly of other income. Non-segment assets consist of corporate assets including cash, deferred loan expenses and corporate offices and equipment among others. Non-property specific revenues and expenses are not allocated to individual segments in determining NOI. The accounting policies of the segments are the same as those described in the summary of significant accounting policies (see Note 2). The results of operations for all acquisitions described in Notes 3 and 4 are included in our consolidated results of operations from the acquisition dates and are components of the appropriate segments. Summary information for the reportable segments during the three and six months ended June 30, 2022 is as follows ($ in thousands):
For the three months ended June 30, 2022: | Real Estate Investment |  | SHOP |  | Non-segment/Corporate |  | Total
Rental income | $ | 39,982 |  |  | $ | — |  |  | $ | — |  |  | $ | 39,982 |
Resident fees and services | — |  |  | 11,992 |  |  | — |  |  | 11,992 |
Interest income and other | 7,825 |  |  | — |  |  | 100 |  |  | 7,925 |
Total revenues | 47,807 |  |  | 11,992 |  |  | 100 |  |  | 59,899 |
Senior housing operating expenses | — |  |  | 9,113 |  |  | — |  |  | 9,113 |
Taxes and insurance on leased properties | 2,157 |  |  | — |  |  | — |  |  | 2,157 |
NOI | 45,650 |  |  | 2,879 |  |  | 100 |  |  | 48,629 |
Depreciation | 15,638 |  |  | 2,116 |  |  | 18 |  |  | 17,772 |
Interest | 771 |  |  | — |  |  | 10,091 |  |  | 10,862 |
Legal | — |  |  | — |  |  | 339 |  |  | 339 |
Franchise, excise and other taxes | — |  |  | — |  |  | 225 |  |  | 225 |
General and administrative | — |  |  | — |  |  | 5,049 |  |  | 5,049 |
Loan and realty losses | 4,094 |  |  | — |  |  | — |  |  | 4,094 |
Gains on sales of real estate, net | (10,521) |  |  | — |  |  | — |  |  | (10,521) |
Loss on operations transfer, net | 729 |  |  | — |  |  | — |  |  | 729 |
Gain on note payoff | (1,113) |  |  | — |  |  | — |  |  | (1,113) |
Gains from equity method investment | (273) |  |  | — |  |  | — |  |  | (273) |
Net Income | $ | 36,325 |  |  | $ | 763 |  |  | $ | (15,622) |  |  | $ | 21,466 |
Total assets | $ | 2,277,599 |  |  | $ | 277,155 |  |  | $ | 32,537 |  |  | $ | 2,587,291 |
For the six months ended June 30, 2022: | Real Estate Investment |  | SHOP |  | Non-segment/Corporate |  | Total
Rental income | $ | 104,541 |  |  | $ | — |  |  | $ | — |  |  | $ | 104,541 |
Resident fees and services | — |  |  | 11,992 |  |  | — |  |  | 11,992 |
Interest income and other | 14,542 |  |  | — |  |  | 152 |  |  | 14,694 |
Total revenues | 119,083 |  |  | 11,992 |  |  | 152 |  |  | 131,227 |
Senior housing operating expenses | — |  |  | 9,113 |  |  | — |  |  | 9,113 |
Taxes and insurance on leased properties | 5,195 |  |  | — |  |  | — |  |  | 5,195 |
NOI | 113,888 |  |  | 2,879 |  |  | 152 |  |  | 116,919 |
Depreciation | 33,892 |  |  | 2,116 |  |  | 36 |  |  | 36,044 |
Interest | 1,534 |  |  | — |  |  | 19,526 |  |  | 21,060 |
Legal | — |  |  | — |  |  | 2,166 |  |  | 2,166 |
Franchise, excise and other taxes | — |  |  | — |  |  | 469 |  |  | 469 |
General and administrative | — |  |  | — |  |  | 13,150 |  |  | 13,150 |
Loan and realty losses | 28,622 |  |  | — |  |  | — |  |  | 28,622 |
Gains on sales of real estate, net | (13,502) |  |  | — |  |  | — |  |  | (13,502) |
Loss on operations transfer, net | 729 |  |  | — |  |  | — |  |  | 729 |
Gain on note payoff | (1,113) |  |  | — |  |  | — |  |  | (1,113) |
Loss on early retirement of debt | — |  |  | — |  |  | 151 |  |  | 151 |
Gains from equity method investment | (569) |  |  | — |  |  | — |  |  | (569) |
Net Income | $ | 64,295 |  |  | $ | 763 |  |  | $ | (35,346) |  |  | $ | 29,712 |

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- 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=123359005&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=123359005&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=123359005&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=123359005&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=123359005&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=123359005&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=123359005&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=123359005&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=123359005&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=123359005&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=123359005&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=123359005&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=123359005&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
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