Segment Disclosures (Tables)

6 Months Ended

Jun. 30, 2020

Summary of Financial Information of Reportable Segments

The following tables summarize information for the reportable segments (in thousands):

For the three months ended June 30, 2020:



	Senior Housing Triple-Net			SHOP			CCRC			Life Science			Medical Office			Other Non-reportable			Corporate Non-segment			Total
Total revenues	$	24,589		$	155,293		$	113,926		$	138,496		$	141,636		$	14,500		$	—		$	588,440
Government grant income⁽¹⁾	—			2,209			11,871			—			—			—			—			14,080
Less: Interest income	—			—			—			—			—			(4,230		)	—			(4,230		)
Healthpeak's share of unconsolidated joint venture total revenues	—			24,684			4,781			—			691			—			—			30,156
Healthpeak's share of unconsolidated joint venture government grant income	—			270			534			—			—			—			—			804
Noncontrolling interests' share of consolidated joint venture total revenues	—			(504		)	—			(57		)	(8,347		)	—			—			(8,908		)
Operating expenses	(526		)	(137,507		)	(94,248		)	(34,205		)	(49,350		)	(5		)	—			(315,841		)
Healthpeak's share of unconsolidated joint venture operating expenses	—			(18,686		)	(4,826		)	—			(275		)	(1		)	—			(23,788		)
Noncontrolling interests' share of consolidated joint venture operating expenses	—			411			—			18			2,507			—			—			2,936
Adjustments to NOI⁽²⁾	41			118			18			(2,779		)	(951		)	485			—			(3,068		)
Adjusted NOI	24,104			26,288			32,056			101,473			85,911			10,749			—			280,581
Plus: Adjustments to NOI⁽²⁾	(41		)	(118		)	(18		)	2,779			951			(485		)	—			3,068
Interest income	—			—			—			—			—			4,230			—			4,230
Interest expense	(72		)	(2,837		)	(1,969		)	(60		)	(100		)	—			(52,512		)	(57,550		)
Depreciation and amortization	(7,175		)	(31,621		)	(31,426		)	(52,356		)	(54,572		)	(1,338		)	—			(178,488		)
General and administrative	—			—			—			—			—			—			(23,720		)	(23,720		)
Transaction costs	—			—			—			—			—			—			(627		)	(627		)
Impairments and loan loss reserves (recoveries), net	(1,007		)	(16,158		)	—			—			(2,119		)	(4,766		)	—			(24,050		)
Gain (loss) on sales of real estate, net	—			1,579			—			—			81,284			—			—			82,863
Loss on debt extinguishments	—			—			—			—			—			—			(25,824		)	(25,824		)
Other income (expense), net	—			2,209			14,142			—			—			—			3,235			19,586
Income tax benefit (expense)	—			—			—			—			—			—			7,346			7,346
Less: Government grant income	—			(2,209		)	(11,871		)	—			—			—			—			(14,080		)
Less: Healthpeak's share of unconsolidated joint venture NOI	—			(6,268		)	(489		)	—			(416		)	1			—			(7,172		)
Plus: Noncontrolling interests' share of consolidated joint venture NOI	—			93			—			39			5,840			—			—			5,972
Equity income (loss) from unconsolidated joint ventures	—			(17,779		)	401			—			210			82			—			(17,086		)
Net income (loss)	$	15,809		$	(46,821	)	$	826		$	51,875		$	116,989		$	8,473		$	(92,102	)	$	55,049

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(1)	Represents government grant income received under the CARES Act, which is recorded in other income (expense), net in the consolidated statements of operations.

(2)

Represents straight-line rents, DFL non-cash interest, amortization of market lease intangibles, net, actuarial reserves for insurance claims that have been incurred but not reported, deferral of community fees, and termination fees. Includes the Company’s share of income (loss) generated by unconsolidated joint ventures and excludes noncontrolling interests’ share of income (loss) generated by consolidated joint ventures.

For the three months ended June 30, 2019:



	Senior Housing Triple-Net			SHOP			CCRC			Life Science			Medical Office			Other Non-reportable			Corporate Non-segment			Total
Total revenues	$	49,805		$	177,001		$	—		$	107,596		$	141,927		$	15,238		$	—		$	491,567
Less: Interest income	—			—			—			—			—			(2,414		)	—			(2,414		)
Healthpeak's share of unconsolidated joint venture total revenues	—			5,922			52,835			—			709			5,482			—			64,948
Noncontrolling interests' share of consolidated joint venture total revenues	1			(523		)	—			(42		)	(8,381		)	—			—			(8,945		)
Operating expenses	(866		)	(137,460		)	—			(25,480		)	(50,176		)	(11		)	—			(213,993		)
Healthpeak's share of unconsolidated joint venture operating expenses	—			(4,430		)	(42,456		)	—			(283		)	(11		)	—			(47,180		)
Noncontrolling interests' share of consolidated joint venture operating expenses	—			320			—			13			2,496			—			—			2,829
Adjustments to NOI⁽¹⁾	4,806			898			4,745			(7,606		)	(1,212		)	(213		)	—			1,418
Adjusted NOI	53,746			41,728			15,124			74,481			85,080			18,071			—			288,230
Plus: Adjustments to NOI⁽¹⁾	(4,806		)	(898		)	(4,745		)	7,606			1,212			213			—			(1,418		)
Interest income	—			—			—			—			—			2,414			—			2,414
Interest expense	(206		)	(1,326		)	—			(70		)	(109		)	—			(55,231		)	(56,942		)
Depreciation and amortization	(15,688		)	(52,242		)	—			(41,431		)	(54,096		)	(1,839		)	—			(165,296		)
General and administrative	—			—			—			—			—			—			(27,120		)	(27,120		)
Transaction costs	—			—			—			—			—			—			(1,337		)	(1,337		)
Impairments and loan loss reserves (recoveries), net	(15,485		)	(52,963		)	—			—			(90		)	—			—			(68,538		)
Gain (loss) on sales of real estate, net	—			4,691			—			3,816			2,941			—			—			11,448
Loss on debt extinguishments	—			—			—			—			—			—			(1,135		)	(1,135		)
Other income (expense), net	—			12,817			—			—			—			—			8,191			21,008
Income tax benefit (expense)	—			—			—			—			—			—			1,864			1,864
Less: Healthpeak's share of unconsolidated joint venture NOI	—			(1,492		)	(10,379		)	—			(426		)	(5,471		)	—			(17,768		)
Plus: Noncontrolling interests' share of consolidated joint venture NOI	(1		)	203			—			29			5,885			—			—			6,116
Equity income (loss) from unconsolidated joint ventures	—			(603		)	(2,568		)	—			216			1,449			—			(1,506		)
Net income (loss)	$	17,560		$	(50,085	)	$	(2,568	)	$	44,431		$	40,613		$	14,837		$	(74,768	)	$	(9,980	)

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(1)

For the six months ended June 30, 2020:



	Senior Housing Triple-Net			SHOP			CCRC			Life Science			Medical Office			Other Non-reportable			Corporate Non-segment			Total
Total revenues	$	57,724		$	326,254		$	205,706		$	267,379		$	286,782		$	29,745		$	—		$	1,173,590
Government grant income⁽¹⁾	—			2,209			11,871			—			—			—			—			14,080
Less: Interest income	—			—			—			—			—			(7,918		)	—			(7,918		)
Healthpeak's share of unconsolidated joint venture total revenues	—			50,449			26,428			—			1,386			86			—			78,349
Healthpeak's share of unconsolidated joint venture government grant income	—			270			534			—			—			—			—			804
Noncontrolling interests' share of consolidated joint venture total revenues	—			(1,042		)	—			(109		)	(16,987		)	—			—			(18,138		)
Operating expenses	(1,032		)	(275,637		)	(250,730		)	(64,406		)	(100,037		)	(12		)	—			(691,854		)
Healthpeak's share of unconsolidated joint venture operating expenses	—			(36,642		)	(22,863		)	—			(550		)	1			—			(60,054		)
Noncontrolling interests' share of consolidated joint venture operating expenses	—			788			—			35			5,107			—			—			5,930
Adjustments to NOI⁽²⁾	(3,333		)	649			91,579			(7,059		)	(2,408		)	946			—			80,374
Adjusted NOI	53,359			67,298			62,525			195,840			173,293			22,848			—			575,163
Plus: Adjustments to NOI⁽²⁾	3,333			(649		)	(91,579		)	7,059			2,408			(946		)	—			(80,374		)
Interest income	—			—			—			—			—			7,918			—			7,918
Interest expense	(154		)	(5,692		)	(3,273		)	(122		)	(203		)	—			(106,482		)	(115,926		)
Depreciation and amortization	(14,337		)	(88,623		)	(51,655		)	(102,567		)	(107,720		)	(2,862		)	—			(367,764		)
General and administrative	—			—			—			—			—			—			(46,069		)	(46,069		)
Transaction costs	—			—			—			—			—			—			(15,475		)	(15,475		)
Impairments and loan loss reserves (recoveries), net	(5,677		)	(39,443		)	—			—			(4,825		)	(13,228		)	—			(63,173		)
Gain (loss) on sales of real estate, net	164,043			336			—			—			83,393			(40		)	—			247,732
Loss on debt extinguishments	—			—			—			—			—			—			(24,991		)	(24,991		)
Other income (expense), net	—			2,209			184,474			—			—			41,707			1,804			230,194
Income tax benefit (expense)⁽³⁾	—			—			—			—			—			—			40,390			40,390
Less: Government grant income	—			(2,209		)	(11,871		)	—			—			—			—			(14,080		)
Less: Healthpeak's share of unconsolidated joint venture NOI	—			(14,077		)	(4,099		)	—			(836		)	(87		)	—			(19,099		)
Plus: Noncontrolling interests' share of consolidated joint venture NOI	—			254			—			74			11,880			—			—			12,208
Equity income (loss) from unconsolidated joint ventures	—			(35,929		)	(1,479		)	—			407			7,936			—			(29,065		)
Net income (loss)	$	200,567		$	(116,525	)	$	83,043		$	100,284		$	157,797		$	63,246		$	(150,823	)	$	337,589

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(1)	Represents government grant income received under the CARES Act, which is recorded in other income (expense), net in the consolidated statements of operations.

(2)

(3)

Income tax benefit (expense) for the six months ended June 30, 2020 includes: (i) a $52 million tax benefit recognized in conjunction with internal restructuring activities, which resulted in the transfer of assets subject to certain deferred tax liabilities from taxable REIT subsidiaries to the REIT in connection with the 2019 MTCA (see Note 3) and (ii) a $3.6 million net tax benefit recognized due to changes under the CARES Act, which resulted in net operating losses being utilized at a higher income tax rate than previously available.

For the six months ended June 30, 2019:



	Senior Housing Triple-Net			SHOP			CCRC			Life Science			Medical Office			Other Non-reportable			Corporate Non-segment			Total
Total revenues	$	108,637		$	303,182		$	—		$	202,068		$	284,122		$	29,712		$	—		$	927,721
Less: Interest income	—			—			—			—			—			(4,127		)	—			(4,127		)
Healthpeak's share of unconsolidated joint venture total revenues	—			11,571			105,073			—			1,414			11,014			—			129,072
Noncontrolling interests' share of consolidated joint venture total revenues	(1		)	(995		)	—			(82		)	(16,684		)	—			—			(17,762		)
Operating expenses	(1,860		)	(234,407		)	—			(47,472		)	(99,163		)	(18		)	—			(382,920		)
Healthpeak's share of unconsolidated joint venture operating expenses	—			(8,591		)	(83,833		)	—			(558		)	(28		)	—			(93,010		)
Noncontrolling interests' share of consolidated joint venture operating expenses	—			670			—			26			4,920			—			—			5,616
Adjustments to NOI⁽¹⁾	5,371			2,080			8,197			(10,084		)	(2,960		)	(492		)	—			2,112
Adjusted NOI	112,147			73,510			29,437			144,456			171,091			36,061			—			566,702
Plus: Adjustments to NOI⁽¹⁾	(5,371		)	(2,080		)	(8,197		)	10,084			2,960			492			—			(2,112		)
Interest income	—			—			—			—			—			4,127			—			4,127
Interest expense	(795		)	(1,989		)	—			(143		)	(221		)	—			(103,121		)	(106,269		)
Depreciation and amortization	(32,366		)	(76,328		)	—			(77,677		)	(107,198		)	(3,678		)	—			(297,247		)
General and administrative	—			—			—			—			—			—			(48,475		)	(48,475		)
Transaction costs	—			—			—			—			—			—			(5,855		)	(5,855		)
Impairments and loan loss reserves (recoveries), net	(15,485		)	(52,963		)	—			—			(8,948		)	—			—			(77,396		)
Gain (loss) on sales of real estate, net	3,557			9,314			—			3,738			2,883			—			—			19,492
Loss on debt extinguishments	—			—			—			—			—			—			(1,135		)	(1,135		)
Other income (expense), net	—			12,817			—			—			—			—			11,324			24,141
Income tax benefit (expense)	—			—			—			—			—			—			5,322			5,322
Less: Healthpeak's share of unconsolidated joint venture NOI	—			(2,980		)	(21,240		)	—			(856		)	(10,986		)	—			(36,062		)
Plus: Noncontrolling interests' share of consolidated joint venture NOI	1			325			—			56			11,764			—			—			12,146
Equity income (loss) from unconsolidated joint ventures	—			(1,081		)	(4,664		)	—			427			2,949			—			(2,369		)
Net income (loss)	$	61,688		$	(41,455	)	$	(4,664	)	$	80,514		$	71,902		$	28,965		$	(141,940	)	$	55,010

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(1)

Schedule of Reconciliation of Company's Revenues by Segment

The following table summarizes the Company’s revenues by segment (in thousands):



	Three Months Ended June 30,				Six Months Ended June 30,
Segment	2020		2019		2020		2019
Senior housing triple-net	$	24,589	$	49,805	$	57,724	$	108,637
SHOP	155,293		177,001		326,254		303,182
CCRC	113,926		—		205,706		—
Life science	138,496		107,596		267,379		202,068
Medical office	141,636		141,927		286,782		284,122
Other Non-reportable	14,500		15,238		29,745		29,712
Total revenues	$	588,440	$	491,567	$	1,173,590	$	927,721