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Segment Reporting | 9 Months Ended
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Sep. 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 September 30, 2023
|  | Office Portfolio |  | SHOP |  | Non-Segment |  | Consolidated
Revenues: |  |  |  |  |  |  |  |
Rental income |  | $ | 55,058 |  |  | $ | — |  |  | $ | 8,332 |  |  | $ | 63,390 |
Residents fees and services |  | — |  |  | 293,134 |  |  | — |  |  | 293,134 |
Total revenues |  | 55,058 |  |  | 293,134 |  |  | 8,332 |  |  | 356,524 |
Expenses: |  |  |  |  |  |  |  |
Property operating expenses |  | 25,784 |  |  | 272,445 |  |  | 203 |  |  | 298,432 |
Depreciation and amortization |  | 20,175 |  |  | 44,587 |  |  | 2,474 |  |  | 67,236 |
General and administrative |  | — |  |  | — |  |  | 6,954 |  |  | 6,954 |
Acquisition and certain other transaction related costs |  | — |  |  | — |  |  | 3,676 |  |  | 3,676 |
Impairment of assets |  | 427 |  |  | 729 |  |  | — |  |  | 1,156 |
Total expenses |  | 46,386 |  |  | 317,761 |  |  | 13,307 |  |  | 377,454 |
Interest and other income |  | — |  |  | 115 |  |  | 3,128 |  |  | 3,243 |
Interest expense |  | (119) |  |  | (79) |  |  | (47,560) |  |  | (47,758) |
Income (loss) before income tax expense and equity in net losses of investees |  | 8,553 |  |  | (24,591) |  |  | (49,407) |  |  | (65,445) |
Income tax expense |  | — |  |  | — |  |  | (189) |  |  | (189) |
Equity in net losses of investees |  | (145) |  |  | — |  |  | — |  |  | (145) |
Net income (loss) |  | $ | 8,408 |  |  | $ | (24,591) |  |  | $ | (49,596) |  |  | $ | (65,779) |
|  | For the Nine Months Ended September 30, 2023
|  | Office Portfolio |  | SHOP |  | Non-Segment |  | Consolidated
Revenues: |  |  |  |  |  |  |  |
Rental income |  | $ | 165,448 |  |  | $ | — |  |  | $ | 25,753 |  |  | $ | 191,201 |
Residents fees and services |  | — |  |  | 857,572 |  |  | — |  |  | 857,572 |
Total revenues |  | 165,448 |  |  | 857,572 |  |  | 25,753 |  |  | 1,048,773 |
Expenses: |  |  |  |  |  |  |  |
Property operating expenses |  | 73,237 |  |  | 796,733 |  |  | 770 |  |  | 870,740 |
Depreciation and amortization |  | 63,065 |  |  | 129,891 |  |  | 7,474 |  |  | 200,430 |
General and administrative |  | — |  |  | — |  |  | 20,111 |  |  | 20,111 |
Acquisition and certain other transaction related costs |  | — |  |  | — |  |  | 9,812 |  |  | 9,812 |
Impairment of assets |  | 14,034 |  |  | 4,346 |  |  | — |  |  | 18,380 |
Total expenses |  | 150,336 |  |  | 930,970 |  |  | 38,167 |  |  | 1,119,473 |
Gain on sale of properties |  | — |  |  | 1,233 |  |  | — |  |  | 1,233 |
Gains on equity securities, net |  | — |  |  | — |  |  | 8,126 |  |  | 8,126 |
Interest and other income |  | — |  |  | 1,581 |  |  | 10,991 |  |  | 12,572 |
Interest expense |  | (344) |  |  | (502) |  |  | (142,076) |  |  | (142,922) |
Loss on modification or early extinguishment of debt |  | — |  |  | — |  |  | (1,075) |  |  | (1,075) |
Income (loss) before income tax expense and equity in net earnings of investees |  | 14,768 |  |  | (71,086) |  |  | (136,448) |  |  | (192,766) |
Income tax expense |  | — |  |  | — |  |  | (379) |  |  | (379) |
Equity in net earnings of investees |  | 2,137 |  |  | — |  |  | — |  |  | 2,137 |
Net income (loss) |  | $ | 16,905 |  |  | $ | (71,086) |  |  | $ | (136,827) |  |  | $ | (191,008) |
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 $1,581 and $1,084 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 nine months ended September 30, 2023 and 2022, respectively.
|  | As of September 30, 2023
|  | Office Portfolio |  | SHOP |  | Non-Segment |  | Consolidated
Total assets |  | $ | 1,918,452 |  |  | $ | 3,132,120 |  |  | $ | 479,684 |  |  | $ | 5,530,256 |
|  | For the Three Months Ended September 30, 2022
|  | Office Portfolio |  | SHOP |  | Non-Segment |  | Consolidated
Revenues: |  |  |  |  |  |  |  |
Rental income |  | $ | 55,254 |  |  | $ | — |  |  | $ | 8,706 |  |  | $ | 63,960 |
Residents fees and services |  | — |  |  | 258,960 |  |  | — |  |  | 258,960 |
Total revenues |  | 55,254 |  |  | 258,960 |  |  | 8,706 |  |  | 322,920 |
Expenses: |  |  |  |  |  |  |  |
Property operating expenses |  | 24,179 |  |  | 264,722 |  |  | 195 |  |  | 289,096 |
Depreciation and amortization |  | 19,037 |  |  | 38,484 |  |  | 2,886 |  |  | 60,407 |
General and administrative |  | — |  |  | — |  |  | 6,179 |  |  | 6,179 |
Acquisition and certain other transaction related costs |  | — |  |  | — |  |  | 289 |  |  | 289 |
Total expenses |  | 43,216 |  |  | 303,206 |  |  | 9,549 |  |  | 355,971 |
(Loss) gain on sale of properties |  | (5,074) |  |  | 30 |  |  | — |  |  | (5,044) |
Losses on equity securities, net |  | — |  |  | — |  |  | (2,674) |  |  | (2,674) |
Interest and other income |  | — |  |  | 125 |  |  | 3,974 |  |  | 4,099 |
Interest expense |  | (217) |  |  | (298) |  |  | (46,421) |  |  | (46,936) |
Income (loss) before income tax expense and equity in net earnings of investees |  | 6,747 |  |  | (44,389) |  |  | (45,964) |  |  | (83,606) |
Income tax expense |  | — |  |  | — |  |  | (13) |  |  | (13) |
Equity in net earnings of investees |  | 2,127 |  |  | — |  |  | — |  |  | 2,127 |
Net income (loss) |  | $ | 8,874 |  |  | $ | (44,389) |  |  | $ | (45,977) |  |  | $ | (81,492) |
|  | For the Nine Months Ended September 30, 2022
|  | Office Portfolio |  | SHOP |  | Non-Segment |  | Consolidated
Revenues: |  |  |  |  |  |  |  |
Rental income |  | $ | 162,861 |  |  | $ | — |  |  | $ | 28,906 |  |  | $ | 191,767 |
Residents fees and services |  | — |  |  | 754,914 |  |  | — |  |  | 754,914 |
Total revenues |  | 162,861 |  |  | 754,914 |  |  | 28,906 |  |  | 946,681 |
Expenses: |  |  |  |  |  |  |  |
Property operating expenses |  | 69,652 |  |  | 754,057 |  |  | 195 |  |  | 823,904 |
Depreciation and amortization |  | 55,424 |  |  | 111,836 |  |  | 8,667 |  |  | 175,927 |
General and administrative |  | — |  |  | — |  |  | 20,671 |  |  | 20,671 |
Acquisition and certain other transaction related costs |  | — |  |  | — |  |  | 1,826 |  |  | 1,826 |
Total expenses |  | 125,076 |  |  | 865,893 |  |  | 31,359 |  |  | 1,022,328 |
Gain on sale of properties |  | 321,242 |  |  | 822 |  |  | — |  |  | 322,064 |
Losses on equity securities, net |  | — |  |  | — |  |  | (21,384) |  |  | (21,384) |
Interest and other income |  | — |  |  | 1,084 |  |  | 5,676 |  |  | 6,760 |
Interest expense |  | (798) |  |  | (1,283) |  |  | (157,961) |  |  | (160,042) |
Gain (loss) on modification or early extinguishment of debt |  | 16 |  |  | — |  |  | (30,059) |  |  | (30,043) |
Income (loss) before income tax expense and equity in net earnings of investees |  | 358,245 |  |  | (110,356) |  |  | (206,181) |  |  | 41,708 |
Income tax expense |  | — |  |  | — |  |  | (845) |  |  | (845) |
Equity in net earnings of investees |  | 8,685 |  |  | — |  |  | — |  |  | 8,685 |
Net income (loss) |  | $ | 366,930 |  |  | $ | (110,356) |  |  | $ | (207,026) |  |  | $ | 49,548 |
| As of December 31, 2022
| Office Portfolio |  | SHOP |  | Non-Segment |  | Consolidated
Total assets | $ | 1,967,244 |  |  | $ | 3,147,785 |  |  | $ | 887,064 |  |  | $ | 6,002,093 |

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 22 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-22 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 15 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-15 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 31 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-31 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 42 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-42 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 40 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-40 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//280/tableOfContent Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 26 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-26 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 34 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-34 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 41 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-41 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-21 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-21 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 + Details
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