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Segment Reporting
 6 Months Ended
Jun. 30, 2023
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 segment includes leases, mortgages and other note investments in ILFs, ALFs, EFCs, SLCs, SNFs and a HOSP. Under the Real Estate Investments segment, we invest in senior 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 properties. The SHOP segment includes multi-tenant ILFs. The SHOP properties and related operations are controlled by the Company and are operated by property managers in exchange for a management fee. See Note 5 for further discussion.

We formed the SHOP segment effective April 1, 2022 upon termination of the triple-net lease for the legacy Holiday Retirement (“Holiday”) portfolio at which time the operations and properties of 15 ILFs were transferred into two separate ventures, as discussed further in Note 5. 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 SHOP segment. There is no impact to the prior year’s presentation.

Our chief operating decision maker evaluates performance based upon segment net operating income (“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 both the three and six months ended June 30, 2023 and 2022. Capital expenditures for the six months ended June 30, 2023 were approximately $56.2 million for the Real Estate Investments segment and $3.0 million for the SHOP segment. 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 discussed in Note 2. The results of operations for all acquisitions described in Note 3 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 months ended June 30, 2023 is as follows ($ in thousands):
For the three months ended June 30, 2023:
Real Estate InvestmentSHOPNon-segment/CorporateTotal
Rental income$60,952 $— $— $60,952 
Resident fees and services— 11,793 — 11,793 
Interest income and other5,083 — 48 5,131 
   Total revenues66,035 11,793 48 77,876 
Senior housing operating expenses— 9,682 — 9,682 
Taxes and insurance on leased properties3,212 — — 3,212 
   NOI 62,823 2,111 48 64,982 
Depreciation15,477 2,239 14 17,730 
Interest766 — 13,428 14,194 
Legal — — 174 174 
Franchise, excise and other taxes— — 258 258 
General and administrative— — 4,306 4,306 
Loan and realty losses186 — — 186 
Gains on sales of real estate, net(11,366)— — (11,366)
Gain on operations transfer(20)— — (20)
Loss on early retirement of debt— — 73 73 
    Net income (loss)$57,780 $(128)$(18,205)$39,447 
Total assets$2,217,124 $271,359 $10,012 $2,498,495 

For the three months ended June 30, 2022:Real Estate InvestmentSHOPNon-segment/CorporateTotal
Rental income$39,982 $— $— $39,982 
Resident fees and services— 11,992 — 11,992 
Interest income and other7,825 — 100 7,925 
   Total revenues47,807 11,992 100 59,899 
Senior housing operating expenses— 9,113 — 9,113 
Taxes and insurance on leased properties2,157 — — 2,157 
   NOI 45,650 2,879 100 48,629 
Depreciation15,638 2,116 18 17,772 
Interest771 — 10,091 10,862 
Legal — — 339 339 
Franchise, excise and other taxes— — 225 225 
General and administrative— — 5,049 5,049 
Loan and realty losses4,094 — — 4,094 
Gains on sales of real estate, net(10,521)— — (10,521)
Loss on operations transfer, net729 — — 729 
Gain on note receivable payoff(1,113)— — (1,113)
Gains from equity method investment(273)— — (273)
    Net income (loss)$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, 2023:
Real Estate InvestmentSHOPNon-segment/CorporateTotal
Rental income$126,250 $— $— $126,250 
Resident fees and services— 23,493 — 23,493 
Interest income and other10,391 — 130 10,521 
   Total revenues136,641 23,493 130 160,264 
Senior housing operating expenses— 19,481 — 19,481 
Taxes and insurance on leased properties5,830 — — 5,830 
   NOI 130,811 4,012 130 134,953 
Depreciation30,854 4,466 27 35,347 
Interest1,525 — 26,696 28,221 
Legal — — 297 297 
Franchise, excise and other taxes— — 441 441 
General and administrative— — 9,959 9,959 
Loan and realty gains(232)— — (232)
Gains on sales of real estate, net(12,763)— — (12,763)
Gain on operations transfer, net(20)— — (20)
Loss on early retirement of debt— — 73 73 
    Net income (loss)$111,447 $(454)$(37,363)$73,630 


For the six months ended June 30, 2022:Real Estate InvestmentSHOPNon-segment/CorporateTotal
Rental income$104,541 $— $— $104,541 
Resident fees and services— 11,992 — 11,992 
Interest income and other14,542 — 152 14,694 
   Total revenues119,083 11,992 152 131,227 
Senior housing operating expenses— 9,113 — 9,113 
Taxes and insurance on leased properties5,195 — — 5,195 
   NOI 113,888 2,879 152 116,919 
Depreciation33,892 2,116 36 36,044 
Interest1,534 — 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 losses28,622 — — 28,622 
Gains on sales of real estate, net(13,502)— — (13,502)
Loss on operations transfer, net729 — — 729 
Gain on note receivable payoff(1,113)— — (1,113)
Loss on early retirement of debt— — 151 151 
Gains from equity method investment(569)— — (569)
    Net income (loss)$64,295 $763 $(35,346)$29,712