Segment Reporting | Segment Reporting We invest in seniors housing and health care real estate. We evaluate our business and make resource allocations on our three operating segments: Seniors Housing Operating, Triple-net and Outpatient Medical. Our Seniors Housing Operating properties include seniors apartments, assisted living, independent living/continuing care retirement communities, independent supportive living communities (Canada), care homes with and without nursing (U.K.) and combinations thereof that are generally owned and/or operated through RIDEA structures (see Note 19). Our Triple-net properties include the property types described above as well as long-term/post-acute care facilities. Under the Triple-net segment, we invest in seniors housing and health care real estate through acquisition and financing of primarily single tenant properties. Properties acquired are primarily leased under triple-net leases and we are not involved in the management of the property. Our Outpatient Medical properties are typically leased to multiple tenants and generally require a certain level of property management by us. We evaluate performance based upon consolidated NOI of each segment. We define NOI as total revenues, including tenant reimbursements, less property operating expenses. We believe NOI provides investors relevant and useful information as it measures the operating performance of our properties at the property level on an unleveraged basis. We use NOI to make decisions about resource allocations and to assess the property level performance of our properties. Non-segment revenue consists mainly of interest income on cash investments recorded in other income. Non-segment assets consist of corporate assets including cash, deferred loan expenses and corporate offices and equipment among others. Non-property specific revenues and expenses are not allocated to individual segments in determining NOI. The accounting policies of the segments are the same as those described in the summary of significant accounting policies (see Note 2 to the financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2023). The results of operations for all acquisitions described in Note 3 are included in our consolidated results of operations from the acquisition dates and are components of the appropriate segments. All inter-segment transactions are eliminated. Summary information for the reportable segments (which excludes unconsolidated entities) is as follows (in thousands): Three Months Ended June 30, 2024 Seniors Housing Operating Triple-net Outpatient Medical Non-segment/Corporate Total Resident fees and services $ 1,393,473 $ — $ — $ — $ 1,393,473 Rental income — 141,151 194,660 — 335,811 Interest income 16,077 46,528 848 — 63,453 Other income 1,900 931 2,577 26,739 32,147 Total revenues 1,411,450 188,610 198,085 26,739 1,824,884 Property operating expenses 1,034,906 10,495 61,185 4,711 1,111,297 Consolidated net operating income (loss) 376,544 178,115 136,900 22,028 713,587 Depreciation and amortization 253,531 61,766 66,748 — 382,045 Interest expense 7,326 352 1,310 124,436 133,424 General and administrative expenses — — — 55,565 55,565 Loss (gain) on derivatives and financial instruments, net — (5,825) — — (5,825) Loss (gain) on extinguishment of debt, net 1,705 — — — 1,705 Provision for loan losses, net 6,142 (962) (17) — 5,163 Impairment of assets 1,778 616 — — 2,394 Other expenses 37,724 8,420 331 2,209 48,684 Income (loss) from continuing operations before income taxes and other items 68,338 113,748 68,528 (160,182) 90,432 Income tax (expense) benefit — — — (1,101) (1,101) Income (loss) from unconsolidated entities (2,526) 2,614 4,808 — 4,896 Gain (loss) on real estate dispositions, net 137,061 21,268 8,114 — 166,443 Income (loss) from continuing operations 202,873 137,630 81,450 (161,283) 260,670 Net income (loss) $ 202,873 $ 137,630 $ 81,450 $ (161,283) $ 260,670 Total assets $ 26,007,665 $ 9,454,889 $ 7,487,100 $ 2,584,283 $ 45,533,937 Three Months Ended June 30, 2023 Seniors Housing Operating Triple-net Outpatient Medical Non-segment/Corporate Total Resident fees and services $ 1,159,449 $ — $ — $ — $ 1,159,449 Rental income — 198,916 184,523 — 383,439 Interest income 2,095 36,520 95 — 38,710 Other income 2,895 66,692 1,574 12,719 83,880 Total revenues 1,164,439 302,128 186,192 12,719 1,665,478 Property operating expenses 885,187 10,598 58,697 4,190 958,672 Consolidated net operating income (loss) 279,252 291,530 127,495 8,529 706,806 Depreciation and amortization 220,428 55,234 66,283 — 341,945 Interest expense 16,136 (795) 3,152 133,844 152,337 General and administrative expenses — — — 44,287 44,287 Loss (gain) on derivatives and financial instruments, net — 1,280 — — 1,280 Loss (gain) on extinguishment of debt, net — — 1 — 1 Provision for loan losses, net 1,867 591 (2) — 2,456 Impairment of assets — 1,086 — — 1,086 Other expenses 8,060 818 647 1,544 11,069 Income (loss) from continuing operations before income taxes and other items 32,761 233,316 57,414 (171,146) 152,345 Income tax (expense) benefit — — — (3,503) (3,503) Income (loss) from unconsolidated entities (39,445) (630) (257) — (40,332) Gain (loss) on real estate dispositions, net (2,096) (72) — — (2,168) Income (loss) from continuing operations (8,780) 232,614 57,157 (174,649) 106,342 Net income (loss) $ (8,780) $ 232,614 $ 57,157 $ (174,649) $ 106,342 Six Months Ended June 30, 2024 Seniors Housing Operating Triple-net Outpatient Medical Non-segment / Corporate Total Resident fees and services $ 2,753,747 $ — $ — $ — $ 2,753,747 Rental income — 362,895 390,568 — 753,463 Interest income 21,100 93,317 1,700 — 116,117 Other income 3,363 2,130 4,979 50,826 61,298 Total revenues 2,778,210 458,342 397,247 50,826 3,684,625 Property operating expenses 2,054,253 21,312 123,648 8,997 2,208,210 Consolidated net operating income (loss) 723,957 437,030 273,599 41,829 1,476,415 Depreciation and amortization 490,327 124,301 133,280 — 747,908 Interest expense 18,512 710 3,028 258,492 280,742 General and administrative expenses — — — 108,883 108,883 Loss (gain) on derivatives and financial instruments, net — (8,879) — — (8,879) Loss (gain) on extinguishment of debt, net 1,711 — — — 1,711 Provision for loan losses, net 7,710 (1,529) (4) — 6,177 Impairment of assets 45,109 616 — — 45,725 Other expenses 46,481 9,625 940 5,769 62,815 Income (loss) from continuing operations before income taxes and other items 114,107 312,186 136,355 (331,315) 231,333 Income tax (expense) benefit — — — (7,292) (7,292) Income (loss) from unconsolidated entities (6,793) (539) 4,445 — (2,887) Gain (loss) on real estate dispositions, net 141,663 21,294 8,193 — 171,150 Income (loss) from continuing operations 248,977 332,941 148,993 (338,607) 392,304 Net income (loss) $ 248,977 $ 332,941 $ 148,993 $ (338,607) $ 392,304 Six Months Ended June 30, 2023 Seniors Housing Operating Triple-net Outpatient Medical Non-segment / Corporate Total Resident fees and services $ 2,291,134 $ — $ — $ — $ 2,291,134 Rental income — 401,335 366,163 — 767,498 Interest income 4,646 70,283 186 — 75,115 Other income 5,340 68,575 4,674 13,871 92,460 Total revenues 2,301,120 540,193 371,023 13,871 3,226,207 Property operating expenses 1,768,971 22,321 117,062 8,071 1,916,425 Consolidated net operating income (loss) 532,149 517,872 253,961 5,800 1,309,782 Depreciation and amortization 440,835 109,762 130,460 — 681,057 Interest expense 27,623 (810) 7,256 262,671 296,740 General and administrative expenses — — — 88,658 88,658 Loss (gain) on derivatives and financial — 2,210 — — 2,210 Loss (gain) on extinguishment of debt, net — — 6 — 6 Provision for loan losses, net 1,794 1,441 (2) — 3,233 Impairment of assets 12,629 1,086 — — 13,715 Other expenses 25,639 3,285 1,194 3,696 33,814 Income (loss) from continuing operations before income taxes and other items 23,629 400,898 115,047 (349,225) 190,349 Income tax (expense) benefit — — — (6,548) (6,548) Income (loss) from unconsolidated entities (55,034) 7,802 (171) — (47,403) Gain (loss) on real estate dispositions, net (1,263) 448 (606) — (1,421) Income (loss) from continuing operations (32,668) 409,148 114,270 (355,773) 134,977 Net income (loss) $ (32,668) $ 409,148 $ 114,270 $ (355,773) $ 134,977 Our portfolio of properties and other investments are located in the United States, the United Kingdom and Canada. Revenues and assets are attributed to the country in which the property is physically located. The following is a summary of geographic information for the periods presented (dollars in thousands): Three Months Ended Six Months Ended June 30, 2024 June 30, 2023 June 30, 2024 June 30, 2023 Revenues: Amount % Amount % Amount (1) % Amount % United States $ 1,530,174 83.9 % $ 1,392,512 83.7 % $ 3,077,070 83.5 % $ 2,688,534 83.3 % United Kingdom 163,264 8.9 % 154,028 9.2 % 324,772 8.8 % 301,904 9.4 % Canada 131,446 7.2 % 118,938 7.1 % 282,783 7.7 % 235,769 7.3 % Total $ 1,824,884 100.0 % $ 1,665,478 100.0 % $ 3,684,625 100.0 % $ 3,226,207 100.0 % Three Months Ended Six Months Ended June 30, 2024 June 30, 2023 June 30, 2024 June 30, 2023 Resident Fees and Services: Amount % Amount % Amount (1) % Amount % United States $ 1,148,809 82.4 % $ 929,997 80.2 % $ 2,246,148 81.6 % $ 1,838,941 80.3 % United Kingdom 117,794 8.5 % 113,585 9.8 % 234,673 8.5 % 222,597 9.7 % Canada 126,870 9.1 % 115,867 10.0 % 272,926 9.9 % 229,596 10.0 % Total $ 1,393,473 100.0 % $ 1,159,449 100.0 % $ 2,753,747 100.0 % $ 2,291,134 100.0 % As of June 30, 2024 December 31, 2023 Assets: Amount % Amount % United States $ 38,799,436 85.2 % $ 36,929,186 83.9 % United Kingdom 3,604,871 7.9 % 3,587,230 8.2 % Canada 3,129,630 6.9 % 3,495,750 7.9 % Total $ 45,533,937 100.0 % $ 44,012,166 100.0 % |