Segment Reporting

As of December 31, 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 Year Ended December 31, 2017
	Triple Net Leased Senior Living Communities			Managed Senior Living Communities			MOBs			All Other Operations			Consolidated
Revenues:
Rental income	$	280,641		$	—		$	382,127		$	18,254		$	681,022
Residents fees and services	—			393,797			—			—			393,797
Total revenues	280,641			393,797			382,127			18,254			1,074,819

Expenses:
Property operating expenses	—			300,500			112,930			—			413,430
Depreciation and amortization	81,976			62,266			128,827			3,792			276,861
General and administrative	—			—			—			103,702			103,702
Acquisition and certain other transaction related costs	—			—			—			547			547
Impairment of assets	—			—			—			5,082			5,082
Total expenses	81,976			362,766			241,757			113,123			799,622

Operating income (loss)	198,665			31,031			140,370			(94,869		)	275,197

Dividend income	—			—			—			2,637			2,637
Interest and other income	—			—			—			406			406
Interest expense	(8,855		)	(4,685		)	(24,919		)	(126,560		)	(165,019		)
Loss on early extinguishment of debt	(7,294		)	—			(59		)	(274		)	(7,627		)
Income (loss) before income tax expense and equity in earnings of an investee	182,516			26,346			115,392			(218,660		)	105,594
Income tax expense	—			—			—			(454		)	(454		)
Equity in earnings of an investee	—			—			—			608			608
Income (loss) before gain on sale of properties	182,516			26,346			115,392			(218,506		)	105,748
Gain on sale of properties	45,901			—			—			154			46,055
Net income (loss)	228,417			26,346			115,392			(218,352		)	151,803
Net income attributable to noncontrolling interest	—			—			(4,193		)	—			(4,193		)
Net income (loss) attributable to common shareholders	$	228,417		$	26,346		$	111,199		$	(218,352	)	$	147,610

	As of December 31, 2017
	Triple Net Leased Senior Living Communities			Managed Senior Living Communities			MOBs			All Other Operations			Consolidated
Total assets	$	2,251,756		$	1,273,757		$	3,367,485		$	401,021		$	7,294,019



	For the Year Ended December 31, 2016
	Triple Net Leased Senior Living Communities			Managed Senior Living Communities			MOBs			All Other Operations			Consolidated
Revenues:
Rental income	$	275,697		$	—		$	372,233		$	18,270		$	666,200
Residents fees and services	—			391,822			—			—			391,822
Total revenues	275,697			391,822			372,233			18,270			1,058,022

Expenses:
Property operating expenses	833			293,195			105,762			—			399,790
Depreciation	78,361			81,482			124,196			3,792			287,831
General and administrative	—			—			—			46,559			46,559
Acquisition related costs	—			—			—			2,085			2,085
Impairment of assets	6,583			2,174			7,122			2,795			18,674
Total expenses	85,777			376,851			237,080			55,231			754,939

Operating income (loss)	189,920			14,971			135,153			(36,961		)	303,083

Dividend income	—			—			—			2,108			2,108
Interest and other income	—			—			—			430			430
Interest expense	(24,795		)	(8,540		)	(13,852		)	(120,387		)	(167,574		)
Loss on early extinguishment of debt	(467		)	(59		)	—			—			(526		)
Income (loss) from continuing operations before income tax expense and equity in earnings of an investee	164,658			6,372			121,301			(154,810		)	137,521
Income tax expense	—			—			—			(424		)	(424		)
Equity in earnings of an investee	—			—			—			137			137
Income (loss) from before gain on sale of properties	164,658			6,372			121,301			(155,097		)	137,234
Gain on sale of properties	4,061			—			—			—			4,061
Net income (loss)	$	168,719		$	6,372		$	121,301		$	(155,097	)	$	141,295

	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 Year Ended December 31, 2015
	Triple Net Leased Senior Living Communities			Managed Senior Living Communities			MOBs			All Other Operations			Consolidated
Revenues:
Rental income	$	256,035		$	—		$	356,586		$	18,278		$	630,899
Residents fees and services	—			367,874			—			—			367,874
Total revenues	256,035			367,874			356,586			18,278			998,773

Expenses:
Property operating expenses	—			278,242			99,337			—			377,579
Depreciation	70,417			60,600			122,974			3,792			257,783
General and administrative	—			—			—			42,830			42,830
Acquisition related costs	—			—			—			6,853			6,853
Impairment of assets	194			—			—			—			194
Total expenses	70,611			338,842			222,311			53,475			685,239

Operating income (loss)	185,424			29,032			134,275			(35,197		)	313,534

Dividend income	—			—			—			2,773			2,773
Interest and other income	—			—			—			379			379
Interest expense	(25,015		)	(9,973		)	(6,214		)	(109,679		)	(150,881		)
Loss on distribution to common shareholders of RMR common stock	—			—			—			(38,437		)	(38,437		)
Gain (loss) on early extinguishment of debt	(6		)	(34		)	(250		)	(1,604		)	(1,894		)
Income (loss) from continuing operations before income tax expense and equity in earnings of an investee	160,403			19,025			127,811			(181,765		)	125,474
Income tax expense	—			—			—			(574		)	(574		)
Equity in earnings of an investee	—			—			—			20			20
Income (loss) from continuing operations	160,403			19,025			127,811			(182,319		)	124,920
Discontinued Operations:
Loss from discontinued operations	—			—			(350		)	—			(350		)
Loss on impairment of assets from discontinued operations	—			—			(602		)	—			(602		)
Net income (loss)	$	160,403		$	19,025		$	126,859		$	(182,319	)	$	123,968

	As of December 31, 2015
	Triple Net Leased Senior Living Communities			Managed Senior Living Communities			MOBs			All Other Operations			Consolidated
Total assets	$	2,251,212		$	1,260,425		$	3,362,214		$	286,239		$	7,160,090