Segment Reporting

As of September 30, 2017, we have four operating segments, of which three are separate reporting segments. We aggregate our triple net leased senior living communities, our managed senior living communities and our MOBs into three reporting segments, based on their similar operating and economic characteristics. The first reporting segment includes triple net leased senior living communities that provide short term and long term residential care and other services for residents and with respect to which we receive rents from the operators. The second reporting segment includes managed senior living communities that provide short term and long term residential care and other services for residents where we pay fees to the operator to manage the communities for our account. The third reporting segment includes MOBs where the tenants pay us rent. Our fourth segment includes all of our other operations, including certain properties that offer wellness, fitness and spa services to members and with respect to which we receive rents from operators, which we do not consider to be sufficiently material to constitute a separate reporting segment.



	For the Three Months Ended September 30, 2017
	Triple Net Leased Senior Living Communities			Managed Senior Living Communities			MOBs			All Other Operations			Consolidated
Revenues:
Rental income	$	67,662		$	—		$	96,116		$	4,570		$	168,348
Residents fees and services	—			98,331			—			—			98,331
Total revenues	67,662			98,331			96,116			4,570			266,679

Expenses:
Property operating expenses	—			75,556			29,158			—			104,714
Depreciation and amortization	20,629			12,691			32,351			948			66,619
General and administrative	—			—			—			19,883			19,883
Total expenses	20,629			88,247			61,509			20,831			191,216

Operating income (loss)	47,033			10,084			34,607			(16,261		)	75,463

Dividend income	—			—			—			659			659
Interest and other income	—			—			—			128			128
Interest expense	(655		)	(1,172		)	(6,172		)	(32,106		)	(40,105		)
Loss on early extinguishment of debt	—			—			—			(274		)	(274		)
Income (loss) from continuing operations before income tax expense and equity in earnings of an investee	46,378			8,912			28,435			(47,854		)	35,871
Income tax expense	—			—			—			(109		)	(109		)
Equity in earnings of an investee	—			—			—			31			31
Net income (loss)	46,378			8,912			28,435			(47,932		)	35,793
Net income attributable to noncontrolling interest	—			—			(1,379		)	—			(1,379		)
Net income (loss) attributable to common shareholders	$	46,378		$	8,912		$	27,056		$	(47,932	)	$	34,414

	As of September 30, 2017
	Triple Net Leased Senior Living Communities			Managed Senior Living Communities			MOBs			All Other Operations			Consolidated
Total assets	$	2,270,952		$	1,241,190		$	3,290,138		$	385,461		$	7,187,741



	For the Three Months Ended September 30, 2016
	Triple Net Leased Senior Living Communities			Managed Senior Living Communities			MOBs			All Other Operations			Consolidated
Revenues:
Rental income	$	66,520		$	—		$	94,404		$	4,579		$	165,503
Residents fees and services	—			98,480			—			—			98,480
Total revenues	66,520			98,480			94,404			4,579			263,983

Expenses:
Property operating expenses	47			74,763			28,537			—			103,347
Depreciation and amortization	19,727			20,747			30,922			948			72,344
General and administrative	—			—			—			12,107			12,107
Acquisition and certain other transaction related costs	—			—			—			824			824
Impairment of assets	2,191			2,394			(7		)	—			4,578
Total expenses	21,965			97,904			59,452			13,879			193,200

Operating income (loss)	44,555			576			34,952			(9,300		)	70,783

Dividend income	—			—			—			659			659
Interest and other income	—			—			—			89			89
Interest expense	(6,228		)	(2,104		)	(5,599		)	(29,507		)	(43,438		)
Loss on early extinguishment of debt	—			(84		)	—			—			(84		)
Income (loss) from continuing operations before income tax expense and equity in earnings of an investee	38,327			(1,612		)	29,353			(38,059		)	28,009
Income tax expense	—			—			—			(119		)	(119		)
Equity in earnings of an investee	—			—			—			13			13
Net income (loss)	$	38,327		$	(1,612	)	$	29,353		$	(38,165	)	$	27,903

	As of December 31, 2016
	Triple Net Leased Senior Living Communities			Managed Senior Living Communities			MOBs			All Other Operations			Consolidated
Total assets	$	2,289,045		$	1,260,032		$	3,333,141		$	345,536		$	7,227,754



	For the Nine Months Ended September 30, 2017
	Triple Net Leased Senior Living Communities			Managed Senior Living Communities			MOBs			All Other Operations			Consolidated
Revenues:
Rental income	$	202,340		$	—		$	285,413		$	13,684		$	501,437
Residents fees and services	—			294,816			—			—			294,816
Total revenues	202,340			294,816			285,413			13,684			796,253

Expenses:
Property operating expenses	—			224,585			83,980			—			308,565
Depreciation and amortization	61,434			49,295			95,890			2,844			209,463
General and administrative	—			—			—			57,889			57,889
Acquisition and certain other transaction related costs	—			—			—			292			292
Impairment of assets	—			—			—			5,082			5,082
Total expenses	61,434			273,880			179,870			66,107			581,291

Operating income (loss)	140,906			20,936			105,543			(52,423		)	214,962

Dividend income	—			—			—			1,978			1,978
Interest and other income	—			—			—			323			323
Interest expense	(8,205		)	(3,523		)	(18,742		)	(93,924		)	(124,394		)
Loss on early extinguishment of debt	(7,294		)	—			(59		)	(274		)	(7,627		)
Income (loss) from continuing operations before income tax expense and equity in earnings of an investee	125,407			17,413			86,742			(144,320		)	85,242
Income tax expense	—			—			—			(300		)	(300		)
Equity in earnings of an investee	—			—			—			533			533
Net income (loss)	125,407			17,413			86,742			(144,087		)	85,475
Net income attributable to noncontrolling interest	—			—			(2,865		)	—			(2,865		)
Net income (loss) attributable to common shareholders	$	125,407		$	17,413		$	83,877		$	(144,087	)	$	82,610

	As of September 30, 2017
	Triple Net Leased Senior Living Communities			Managed Senior Living Communities			MOBs			All Other Operations			Consolidated
Total assets	$	2,270,952		$	1,241,190		$	3,290,138		$	385,461		$	7,187,741



	For the Nine Months Ended September 30, 2016
	Triple Net Leased Senior Living Communities			Managed Senior Living Communities			MOBs			All Other Operations			Consolidated
Revenues:
Rental income	$	198,269		$	—		$	278,964		$	13,689		$	490,922
Residents fees and services	—			292,803			—			—			292,803
Total revenues	198,269			292,803			278,964			13,689			783,725

Expenses:
Property operating expenses	833			218,582			79,361			—			298,776
Depreciation and amortization	58,401			60,905			92,788			2,844			214,938
General and administrative	—			—			—			34,931			34,931
Acquisition and certain other transaction related costs	—			—			—			1,443			1,443
Impairment of assets	6,583			2,394			7,953			—			16,930
Total expenses	65,817			281,881			180,102			39,218			567,018

Operating income (loss)	132,452			10,922			98,862			(25,529		)	216,707

Dividend income	—			—			—			1,449			1,449
Interest and other income	—			—			—			330			330
Interest expense	(18,892		)	(7,332		)	(7,398		)	(90,215		)	(123,837		)
Loss on early extinguishment of debt	—			(90		)	—			—			(90		)
Income (loss) from continuing operations before income tax expense and equity in earnings of an investee	113,560			3,500			91,464			(113,965		)	94,559
Income tax expense	—			—			—			(318		)	(318		)
Equity in earnings of an investee	—			—			—			107			107
Income (loss) from before gain on sale of properties	113,560			3,500			91,464			(114,176		)	94,348
Gain on sale of properties	4,061			—			—			—			4,061
Net income (loss)	$	117,621		$	3,500		$	91,464		$	(114,176	)	$	98,409

	As of December 31, 2016
	Triple Net Leased Senior Living Communities			Managed Senior Living Communities			MOBs			All Other Operations			Consolidated
Total assets	$	2,289,045		$	1,260,032		$	3,333,141		$	345,536		$	7,227,754