Segment Reporting

6 Months Ended

Jun. 30, 2018

As of June 30, 2018, we have four operating segments, of which three are separate reporting segments. We aggregate the reporting units in each of our MOBs, our triple net leased senior living communities and our managed senior living communities into three reporting segments, based on their similar operating and economic characteristics. The first reporting segment includes MOBs where the tenants pay us rent. The second 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 third 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 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 June 30, 2018
	MOBs			Triple Net Leased Senior Living Communities			Managed Senior Living Communities			All Other Operations			Consolidated
Revenues:
Rental income	$	103,854		$	66,113		$	—		$	4,618		$	174,585
Residents fees and services	—			—			102,663			—			102,663
Total revenues	103,854			66,113			102,663			4,618			277,248

Expenses:
Property operating expenses	31,183			—			78,909			—			110,092
Depreciation and amortization	36,326			20,186			14,841			947			72,300
General and administrative	—			—			—			29,078			29,078
Acquisition and certain other transaction related costs	—			—			—			77			77
Impairment of assets	—			548			—			—			548
Total expenses	67,509			20,734			93,750			30,102			212,095

Operating income (loss)	36,345			45,379			8,913			(25,484		)	65,153

Dividend income	—			—			—			659			659
Unrealized gains and losses on equity securities, net	—			—			—			23,265			23,265
Interest and other income	—			—			—			60			60
Interest expense	(6,113		)	(565		)	(1,256		)	(36,879		)	(44,813		)
Income (loss) from continuing operations before income tax expense and equity in earnings of an investee	30,232			44,814			7,657			(38,379		)	44,324
Income tax expense	—			—			—			(105		)	(105		)
Equity in earnings of an investee	—			—			—			7			7
Income (loss) before gain on sale of properties	30,232			44,814			7,657			(38,477		)	44,226
Gain on sale of properties	—			80,762			—			—			80,762
Net income (loss)	30,232			125,576			7,657			(38,477		)	124,988
Net income attributable to noncontrolling interest	(1,401		)	—			—			—			(1,401		)
Net income (loss) attributable to common shareholders	$	28,831		$	125,576		$	7,657		$	(38,477	)	$	123,587



	For the Six Months Ended June 30, 2018
	MOBs			Triple Net Leased Senior Living Communities			Managed Senior Living Communities			All Other Operations			Consolidated
Revenues:
Rental income	$	205,005		$	134,088		$	—		$	9,220		$	348,313
Residents fees and services	—			—			204,750			—			204,750
Total revenues	205,005			134,088			204,750			9,220			553,063

Expenses:
Property operating expenses	62,121			—			156,114			—			218,235
Depreciation and amortization	70,711			40,381			29,652			1,895			142,639
General and administrative	—			—			—			54,196			54,196
Acquisition and certain other transaction related costs	—			—			—			97			97
Impairment of assets	—			548			—			—			548
Total expenses	132,832			40,929			185,766			56,188			415,715

Operating income (loss)	72,173			93,159			18,984			(46,968		)	137,348

Dividend income	—			—			—			1,318			1,318
Unrealized gains and losses on equity securities, net	—			—			—			50,506			50,506
Interest and other income	—			—			—			114			114
Interest expense	(12,022		)	(1,136		)	(2,583		)	(72,624		)	(88,365		)
Loss on early extinguishment of debt	—			—			(130		)	—			(130		)
Income (loss) from continuing operations before income tax expense and equity in earnings of an investee	60,151			92,023			16,271			(67,654		)	100,791
Income tax expense	—			—			—			(365		)	(365		)
Equity in earnings of an investee	—			—			—			51			51
Income (loss) before gain on sale of properties	60,151			92,023			16,271			(67,968		)	100,477
Gain on sale of properties	—			261,916			—			—			261,916
Net income (loss)	60,151			353,939			16,271			(67,968		)	362,393
Net income attributable to noncontrolling interest	(2,784		)	—			—			—			(2,784		)
Net income (loss) attributable to common shareholders	$	57,367		$	353,939		$	16,271		$	(67,968	)	$	359,609



	As of June 30, 2018
	MOBs		Triple Net Leased Senior Living Communities		Managed Senior Living Communities		All Other Operations		Consolidated
Total assets	$	3,425,719	$	2,138,399	$	1,340,992	$	530,526	$	7,435,636



	For the Three Months Ended June 30, 2017
	MOBs			Triple Net Leased Senior Living Communities			Managed Senior Living Communities			All Other Operations			Consolidated
Revenues:
Rental income	$	94,651		$	67,426		$	—		$	4,570		$	166,647
Residents fees and services	—			—			98,366			—			98,366
Total revenues	94,651			67,426			98,366			4,570			265,013

Expenses:
Property operating expenses	27,646			—			75,149			—			102,795
Depreciation and amortization	31,861			20,470			16,390			948			69,669
General and administrative	—			—			—			22,922			22,922
Impairment of assets	—			—			—			5,082			5,082
Total expenses	59,507			20,470			91,539			28,952			200,468

Operating income (loss)	35,144			46,956			6,827			(24,382		)	64,545

Dividend income	—			—			—			659			659
Interest and other income	—			—			—			76			76
Interest expense	(6,250		)	(2,211		)	(1,176		)	(31,163		)	(40,800		)
Loss on early extinguishment of debt	(59		)	(7,294		)	—			—			(7,353		)
Income (loss) from continuing operations before income tax expense and equity in earnings of an investee	28,835			37,451			5,651			(54,810		)	17,127
Income tax expense	—			—			—			(99		)	(99		)
Equity in earnings of an investee	—			—			—			374			374
Net income (loss)	28,835			37,451			5,651			(54,535		)	17,402
Net income attributable to noncontrolling interest	(1,360		)	—			—			—			(1,360		)
Net income (loss) attributable to common shareholders	$	27,475		$	37,451		$	5,651		$	(54,535	)	$	16,042



	For the Six Months Ended June 30, 2017
	MOBs			Triple Net Leased Senior Living Communities			Managed Senior Living Communities			All Other Operations			Consolidated
Revenues:
Rental income	$	189,297		$	134,678		$	—		$	9,115		$	333,090
Residents fees and services	—			—			196,484			—			196,484
Total revenues	189,297			134,678			196,484			9,115			529,574

Expenses:
Property operating expenses	54,823			—			149,028			—			203,851
Depreciation and amortization	63,539			40,804			36,605			1,896			142,844
General and administrative	—			—			—			38,005			38,005
Acquisition and certain other transaction related costs	—			—			—			292			292
Impairment of assets	—			—			—			5,082			5,082
Total expenses	118,362			40,804			185,633			45,275			390,074

Operating income (loss)	70,935			93,874			10,851			(36,160		)	139,500

Dividend income	—			—			—			1,319			1,319
Interest and other income	—			—			—			195			195
Interest expense	(12,570		)	(7,550		)	(2,352		)	(61,817		)	(84,289		)
Loss on early extinguishment of debt	(59		)	(7,294		)	—			—			(7,353		)
Income (loss) from continuing operations before income tax expense and equity in earnings of an investee	58,306			79,030			8,499			(96,463		)	49,372
Income tax expense	—			—			—			(191		)	(191		)
Equity in earnings of an investee	—			—			—			502			502
Net income (loss)	58,306			79,030			8,499			(96,152		)	49,683
Net income attributable to noncontrolling interest	(1,486		)	—			—			—			(1,486		)
Net income (loss) attributable to common shareholders	$	56,820		$	79,030		$	8,499		$	(96,152	)	$	48,197



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