XML 26 R16.htm IDEA: XBRL DOCUMENT v3.23.2
Segment Reporting
6 Months Ended
Jun. 30, 2023
Segment Reporting [Abstract]  
Segment Reporting Segment Reporting
We operate in, and report financial information for, the following two segments: Office Portfolio and SHOP. We aggregate each of these two reporting segments based on their similar operating and economic characteristics. Our Office Portfolio segment consists of medical office properties leased to medical providers and other medical related businesses, as well as life science properties leased to biotech laboratories and other similar tenants. Our SHOP segment consists of managed senior living communities that provide short term and long term residential living and, in some instances, care and other services for residents where we pay fees to managers to operate the communities on our behalf.
We also report “non-segment” operations, which consists of triple net leased senior living communities and wellness centers that are leased to third party operators from which we receive rents, which we do not consider to be sufficiently material to constitute a separate reporting segment, and any other income or expenses that are not attributable to a specific reporting segment.
For the Three Months Ended June 30, 2023
 Office PortfolioSHOPNon-SegmentConsolidated
Revenues:    
Rental income$53,368 $— $8,005 $61,373 
Residents fees and services— 284,846 — 284,846 
Total revenues53,368 284,846 8,005 346,219 
Expenses:    
Property operating expenses23,938 261,959 331 286,228 
Depreciation and amortization22,855 43,152 2,387 68,394 
General and administrative— — 7,284 7,284 
Acquisition and certain other transaction related costs
— — 6,043 6,043 
Impairment of assets11,299 — — 11,299 
Total expenses58,092 305,111 16,045 379,248 
Interest and other income— 1,466 3,668 5,134 
Interest expense(116)(152)(47,116)(47,384)
Loss before income tax expense and equity in net earnings of investees(4,840)(18,951)(51,488)(75,279)
Income tax expense— — (221)(221)
Equity in net earnings of investees2,929 — — 2,929 
Net loss$(1,911)$(18,951)$(51,709)$(72,571)
 For the Six Months Ended June 30, 2023
 Office PortfolioSHOPNon-SegmentConsolidated
Revenues:    
Rental income$110,390 $— $17,421 $127,811 
Residents fees and services— 564,438 — 564,438 
Total revenues110,390 564,438 17,421 692,249 
Expenses:    
Property operating expenses47,453 524,288 567 572,308 
Depreciation and amortization42,890 85,304 5,000 133,194 
General and administrative— — 13,157 13,157 
Acquisition and certain other transaction related costs
— — 6,136 6,136 
Impairment of assets13,607 3,617 — 17,224 
Total expenses103,950 613,209 24,860 742,019 
Gain on sale of properties— 1,233 — 1,233 
Gains on equity securities, net— — 8,126 8,126 
Interest and other income— 1,466 7,863 9,329 
Interest expense(225)(423)(94,516)(95,164)
Loss on modification or early extinguishment of debt— — (1,075)(1,075)
Income (loss) before income tax expense and equity in net earnings of investees6,215 (46,495)(87,041)(127,321)
Income tax expense— — (190)(190)
Equity in net earnings of investees2,282 — — 2,282 
Net income (loss)$8,497 $(46,495)$(87,231)$(125,229)
Under the Coronavirus Aid, Relief, and Economic Security Act, or the CARES Act, the U.S. Department of Health and Human Services established a Provider Relief Fund. Subsequently, the American Rescue Plan Act, or ARPA, was enacted. Retention and use of the funds received under the CARES Act and ARPA are subject to certain terms and conditions. The terms and conditions require that the funds be utilized to compensate for lost revenues that are attributable to the COVID-19 pandemic and for eligible costs to prevent, prepare for and respond to the COVID-19 pandemic that are not covered by other sources. Further, fund recipients are required to be participating in Medicare at the time of distribution and are subject to certain other terms and conditions, including quarterly reporting requirements. In addition, fund recipients are required to have billed Medicare during 2019 and to continue to provide care after January 31, 2020 for diagnosis, testing or care for individuals with possible or actual COVID-19 cases. Any funds not used in accordance with the terms and conditions must be returned. We recognize income from government grants on a systematic and rational basis over the period in which we recognize the related expenses or loss of revenues for which the grants are intended to compensate when there is reasonable assurance that we will comply with the applicable terms and conditions of the grant and there is reasonable assurance that the grant will be received. We have received funds related to certain programs under the CARES Act, ARPA and various state programs in which certain of our communities in our SHOP segment are located. We have recognized $1,466 and $959 with respect to those funds we received as interest and other income in our condensed consolidated statements of comprehensive income (loss) with respect to our SHOP segment for the six months ended June 30, 2023 and 2022, respectively.
 As of June 30, 2023
 Office PortfolioSHOP Non-SegmentConsolidated
Total assets$1,922,835 $3,185,289 $477,351 $5,585,475 
 For the Three Months Ended June 30, 2022
 Office PortfolioSHOPNon-SegmentConsolidated
Revenues:    
Rental income$52,610 $— $9,912 $62,522 
Residents fees and services— 250,506 — 250,506 
Total revenues52,610 250,506 9,912 313,028 
Expenses:    
Property operating expenses22,026 244,040 — 266,066 
Depreciation and amortization17,997 37,369 2,895 58,261 
General and administrative— — 7,207 7,207 
Acquisition and certain other transaction related costs
— — 609 609 
Total expenses40,023 281,409 10,711 332,143 
(Loss) gain on sale of properties(1,226)540 — (686)
Losses on equity securities, net— — (10,157)(10,157)
Interest and other income— 760 1,506 2,266 
Interest expense(216)(491)(55,268)(55,975)
Gain (loss) on modification or early extinguishment of debt16 — (29,576)(29,560)
Income (loss) before income tax benefit and equity in net earnings of investees11,161 (30,094)(94,294)(113,227)
Income tax benefit— — 640 640 
Equity in net earnings of investees3,204 — — 3,204 
Net income (loss)$14,365 $(30,094)$(93,654)$(109,383)
 For the Six Months Ended June 30, 2022
 Office PortfolioSHOP Non-SegmentConsolidated
Revenues:    
Rental income$107,607 $— $20,200 $127,807 
Residents fees and services— 495,954 — 495,954 
Total revenues107,607 495,954 20,200 623,761 
Expenses:    
Property operating expenses45,473 489,335 — 534,808 
Depreciation and amortization36,387 73,352 5,781 115,520 
General and administrative— — 14,492 14,492 
Acquisition and certain other transaction related costs
— — 1,537 1,537 
Total expenses81,860 562,687 21,810 666,357 
Gain on sale of properties326,316 792 — 327,108 
Losses on equity securities, net— — (18,710)(18,710)
Interest and other income— 959 1,702 2,661 
Interest expense(581)(985)(111,540)(113,106)
Gain (loss) on modification or early extinguishment of debt16 — (30,059)(30,043)
Income (loss) before income tax expense and equity in net earnings of investees351,498 (65,967)(160,217)125,314 
Income tax expense— — (832)(832)
Equity in net earnings of investees6,558 — — 6,558 
Net income (loss)$358,056 $(65,967)$(161,049)$131,040 
 As of December 31, 2022
Office PortfolioSHOP Non-SegmentConsolidated
Total assets$1,967,244 $3,147,785 $887,064 $6,002,093