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Investments in and Advances to Unconsolidated Joint Ventures

12 Months Ended

Dec. 31, 2019

Equity Method Investments and Joint Ventures [Abstract]

Investments in and Advances to Unconsolidated Joint Ventures

The Company owns interests in the following entities that are accounted for under the equity method (dollars in thousands):



			Carrying Amount
			December 31,
Entity⁽¹⁾	Property Count	Ownership %	2019		2018
SWF SH JV⁽²⁾	19	54	$	428,258	$	—
CCRC JV⁽³⁾	15	49	325,830		365,764
U.K. JV⁽⁴⁾	—	49	—		101,735
MBK JV	4	50	33,415		35,435
Other SHOP JVs⁽⁵⁾	5	41-90	26,876		25,493
Medical Office JVs⁽⁶⁾	3	20-67	9,845		10,160
K&Y JVs⁽⁷⁾	2	80	1,215		1,430
Advances to unconsolidated joint ventures, net			76		71
			$	825,515	$	540,088

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(1)	These entities are not consolidated because the Company does not control, through voting rights or other means, the joint ventures.


(2)	In December 2019, the Company formed the SWF SH JV with a sovereign wealth fund. See Note 4 for discussion of the formation of the SWF SH JV.


(3)	See Note 3 for discussion of the 2019 MTCA with Brookdale, including the pending acquisition of Brookdale’s interest in the CCRC JV.


(4)	See Note 4 for discussion of the formation of the U.K. JV in 2018 and subsequent sale of the Company’s equity method investment in 2019.

(5)

In June 2019, the Company acquired the outstanding equity interests in, and began consolidating, the Vintage Park JV (see Note 4). Remaining unconsolidated SHOP joint ventures (and the Company's ownership percentage) include: (i) Waldwick JV (85%); (ii) Otay Ranch JV (90%); (iii) MBK Development JV (50%); (iv) Discovery Naples JV (41%); and (v) Discovery Sarasota JV (47%). The Company’s investments in the Discovery Naples JV and the Discovery Sarasota JV are preferred equity investments earning a 10% per annum fixed-rate return.


(6)	Includes three unconsolidated medical office joint ventures (and the Company’s ownership percentage): (i) Ventures IV (20%); (ii) Ventures III (30%); and (iii) Suburban Properties, LLC (67%).


(7)	At December 31, 2019, includes one unconsolidated joint venture. In October 2019, the Company sold its interest in one of the K&Y joint ventures for $4 million. In January 2020, the Company sold its interest in the remaining K&Y joint venture for $12 million. At December 31, 2018, includes three unconsolidated joint ventures.

The following tables summarize combined financial information for the Company’s unconsolidated joint ventures (in thousands):



	December 31,
	2019		2018
Real estate, net	$	2,278,743	$	2,128,147
Other assets, net	511,014		479,935
Total assets	$	2,789,757	$	2,608,082
Mortgage and other debt	$	552,824	$	827,622
Accounts payable and other	591,498		655,177
Other partners’ capital	756,359		515,791
Healthpeak Properties, Inc.'s capital	889,076		609,492
Total liabilities and partners’ capital	$	2,789,757	$	2,608,082



	Year Ended December 31,
	2019			2018			2017
Total revenues	$	523,684		$	642,724		$	810,216
Total operating expense	(381,257		)	(492,784		)	(643,452		)
Net income (loss)	(50,872		)	(43,704		)	(42,408		)
Healthpeak Properties, Inc.’s share in earnings (losses)	(8,625		)	(2,594		)	10,901
Fees earned by Healthpeak Properties, Inc.	169			125			133
Distributions received by Healthpeak Properties, Inc.	47,186			48,939			81,165

At December 31, 2019 and 2018, the aggregate unamortized basis difference of the Company's investments in unconsolidated joint ventures of $64 million and $69 million, respectively, is primarily attributable to the difference between the amount for which the Company purchased its interest in the entity and the historical carrying value of the net assets of the entity. The difference is being amortized over the remaining useful life of the related assets and included in equity income (loss) from unconsolidated joint ventures.

CCRC JV. During 2019, the CCRC JV classified one property that Brookdale and the Company committed to sell to a third-party as held for sale in the joint venture’s stand-alone financial statements. In conjunction with classifying the property as held for sale, the CCRC JV recognized an impairment charge of $12 million to reflect the write-down of the property’s previous carrying value to the estimated selling price, less costs to sell. The Company recognized its 49% share of the impairment charge ($6 million) through equity income (loss) from unconsolidated joint ventures during the year ended December 31, 2019.

Additionally, in October 2019, the Company agreed to acquire Brookdale’s 51% interest in 13 of the 15 communities held by the CCRC JV, which the Company completed in January 2020. Refer to Note 3 for a detailed discussion of the 2019 MTCA with Brookdale.

U.K. JV. In December 2019, the Company sold its remaining 49% interest in the U.K. JV for proceeds of £70 million ($91 million) and recognized a loss on sale of $7 million (based on exchange rates at the time the transaction was completed), including $1 million of loss in accumulated other comprehensive income (loss) that was reclassified to gain (loss) on sale of real estate. As of December 31, 2019, the Company no longer owned real estate in the U.K.