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Segment Disclosures
 9 Months Ended
Sep. 30, 2020
Segment Reporting [Abstract]  
Segment Disclosures Segment Disclosures
The Company evaluates its business and allocates resources based on its reportable business segments: (i) senior housing triple-net, (ii) SHOP, (iii) CCRC, (iv) life science, and (v) medical office. The Company has non-reportable segments that are comprised primarily of the Company’s hospital properties and debt investments. The accounting policies of the segments are the same as those in Note 2 to the Consolidated Financial Statements in the Company’s 2019 Annual Report on Form 10-K filed with the SEC, as updated by Note 2 herein.
During the first quarter of 2020, primarily as a result of: (i) acquiring 100% ownership interest in 13 of 15 CCRCs previously held by a CCRC joint venture (see discussion of the 2019 MTCA with Brookdale in Note 3) and (ii) deconsolidating 19 SHOP assets into a new joint venture in December 2019, the Company's CODMs began reviewing operating results of CCRCs on a stand-alone basis and financial information for each respective segment inclusive of the Company’s share of unconsolidated joint ventures and exclusive of noncontrolling interests’ share on consolidated joint ventures. Therefore, during the first quarter of 2020, the Company began reporting CCRCs as a separate segment and began reporting segment measures inclusive of the Company’s share of unconsolidated joint ventures and exclusive of noncontrolling interests’ share of consolidated joint ventures. Accordingly, all prior period segment information has been recast to conform to the current period presentation.
During the nine months ended September 30, 2020, nine senior housing triple-net facilities were transferred to the Company’s SHOP segment as a result of terminating the triple-net leases and converting the assets to a RIDEA structure. There were no transfers of senior housing triple-net facilities to the Company’s SHOP segment during the three months ended September 30, 2020. During the nine months ended September 30, 2019, 39 senior housing triple-net facilities were transferred to the Company’s SHOP segment as a result of terminating the triple-net leases and converting the assets to a RIDEA structure. There were no transfers of senior housing triple-net facilities to the Company’s SHOP segment during the three months ended September 30, 2019. When an asset is transferred from one segment to another, the results associated with that asset are included in the original segment until the date of transfer. Results generated after the transfer date are included in the new segment.
The Company evaluates performance based on property Adjusted NOI. NOI is defined as real estate revenues (inclusive of rental and related revenues, resident fees and services, income from direct financing leases, and government grant income and exclusive of interest income), less property level operating expenses (which exclude transition costs); NOI excludes all other financial statement amounts included in net income (loss). Adjusted NOI is calculated as NOI after eliminating the effects of straight-line rents, DFL non-cash interest, amortization of market lease intangibles, termination fees, actuarial reserves for insurance claims that have been incurred but not reported, and the impact of deferred community fee income and expense.
NOI and Adjusted NOI include the Company’s share of income (loss) from unconsolidated joint ventures and exclude noncontrolling interests’ share of income (loss) from consolidated joint ventures. Management believes Adjusted NOI is an important supplemental measure because it provides relevant and useful information by reflecting only income and operating expense items that are incurred at the property level and presenting it on an unlevered basis.
Non-segment assets consist of assets in the Company's other non-reportable segments and corporate non-segment assets. Corporate non-segment assets consist primarily of corporate assets, including cash and cash equivalents, restricted cash, accounts receivable, net, marketable equity securities, real estate assets held for sale, and liabilities related to assets held for sale.
The following tables summarize information for the reportable segments (in thousands):
For the three months ended September 30, 2020:
Senior Housing Triple-NetSHOPCCRCLife ScienceMedical OfficeOther Non-reportableCorporate Non-segmentTotal
Total revenues$24,558 $149,615 $115,031 $148,702 $145,153 $14,680 $— $597,739 
Government grant income(1)
— 392 1,761 — — — — 2,153 
Less: Interest income— — — — — (4,443)— (4,443)
Healthpeak's share of unconsolidated joint venture total revenues— 23,800 4,295 — 699 — — 28,794 
Healthpeak's share of unconsolidated joint venture government grant income— 49 246 — — — — 295 
Noncontrolling interests' share of consolidated joint venture total revenues— (459)— (66)(8,788)— — (9,313)
Operating expenses(421)(130,729)(94,992)(36,714)(51,430)(6)— (314,292)
Healthpeak's share of unconsolidated joint venture operating expenses— (18,280)(4,797)— (296)— — (23,373)
Noncontrolling interests' share of consolidated joint venture operating expenses— 361 — 18 2,630 — — 3,009 
Adjustments to NOI(2)
93 (1,228)1,684 (8,330)(2,287)558 — (9,510)
Adjusted NOI24,230 23,521 23,228 103,610 85,681 10,789 — 271,059 
Plus: Adjustments to NOI(2)
(93)1,228 (1,684)8,330 2,287 (558)— 9,510 
Interest income— — — — — 4,443 — 4,443 
Interest expense(45)(2,649)(1,983)(57)(100)— (51,401)(56,235)
Depreciation and amortization(6,694)(24,966)(30,106)(57,170)(53,688)(1,006)— (173,630)
General and administrative— — — — — — (21,661)(21,661)
Transaction costs— — — — — — (2,586)(2,586)
Impairments and loan loss reserves (recoveries), net(12,097)(24,229)— — (1,208)2,984 — (34,550)
Gain (loss) on sales of real estate, net— (2,134)— — 2,283 — — 149 
Loss on debt extinguishments— — — — — — (17,921)(17,921)
Other income (expense), net— 392 3,903 — — — 2,765 7,060 
Income tax benefit (expense)(3)
— — — — — — (24,174)(24,174)
Less: Government grant income— (392)(1,761)— — — — (2,153)
Less: Healthpeak's share of unconsolidated joint venture NOI— (5,569)256 — (403)— — (5,716)
Plus: Noncontrolling interests' share of consolidated joint venture NOI— 98 — 48 6,158 — — 6,304 
Equity income (loss) from unconsolidated joint ventures— (19,432)(322)— 198 76 — (19,480)
Net income (loss)$5,301 $(54,132)$(8,469)$54,761 $41,208 $16,728 $(114,978)$(59,581)
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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.
(3)Income tax benefit (expense) for the three months ended September 30, 2020 includes a $31 million income tax expense related to the valuation allowance on deferred tax assets that are no longer expected to be realized (see Note 4).
For the three months ended September 30, 2019:
 Senior Housing Triple-NetSHOPCCRCLife ScienceMedical OfficeOther Non-reportableCorporate Non-segmentTotal
Total revenues$47,956 $212,275 $— $118,561 $143,639 $15,540 $— $537,971 
Less: Interest income— — — — — (2,741)— (2,741)
Healthpeak's share of unconsolidated joint venture total revenues— 4,943 52,671 — 701 5,227 — 63,542 
Noncontrolling interests' share of consolidated joint venture total revenues— (515)— (52)(8,605)— — (9,172)
Operating expenses(865)(166,201)— (29,520)(51,472)(11)— (248,069)
Healthpeak's share of unconsolidated joint venture operating expenses— (3,816)(43,193)— (279)(23)— (47,311)
Noncontrolling interests' share of consolidated joint venture operating expenses— 388 — 16 2,593 — — 2,997 
Adjustments to NOI(1)
(1,537)739 5,635 (7,062)(1,609)79 — (3,755)
Adjusted NOI45,554 47,813 15,113 81,943 84,968 18,071 — 293,462 
Plus: Adjustments to NOI(1)
1,537 (739)(5,635)7,062 1,609 (79)— 3,755 
Interest income— — — — — 2,741 — 2,741 
Interest expense(106)(2,637)— (68)(108)— (58,311)(61,230)
Depreciation and amortization(12,773)(58,152)— (45,028)(54,152)(1,839)— (171,944)
General and administrative— — — — — — (22,970)(22,970)
Transaction costs— — — — — — (1,319)(1,319)
Impairments and loan loss reserves (recoveries), net(7,430)(24,721)— — (5,729)(377)— (38,257)
Gain (loss) on sales of real estate, net— (734)— (87)(7)44 — (784)
Loss on debt extinguishments— — — — — — (35,017)(35,017)
Other income (expense), net— — — — — 980 (287)693 
Income tax benefit (expense)— — — — — — 6,261 6,261 
Less: Healthpeak's share of unconsolidated joint venture NOI— (1,127)(9,478)— (422)(5,204)— (16,231)
Plus: Noncontrolling interests' share of consolidated joint venture NOI— 127 — 36 6,012 — — 6,175 
Equity income (loss) from unconsolidated joint ventures— (392)(9,194)— 216 1,727 — (7,643)
Net income (loss)$26,782 $(40,562)$(9,194)$43,858 $32,387 $16,064 $(111,643)$(42,308)
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(1)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 nine months ended September 30, 2020:
Senior Housing Triple-NetSHOPCCRCLife ScienceMedical OfficeOther Non-reportableCorporate Non-segmentTotal
Total revenues$82,282 $475,869 $320,737 $416,081 $431,935 $44,425 $— $1,771,329 
Government grant income(1)
— 2,601 13,632 — — — — 16,233 
Less: Interest income— — — — — (12,361)— (12,361)
Healthpeak's share of unconsolidated joint venture total revenues— 74,249 30,723 — 2,085 86 — 107,143 
Healthpeak's share of unconsolidated joint venture government grant income— 319 780 — — — — 1,099 
Noncontrolling interests' share of consolidated joint venture total revenues— (1,501)— (175)(25,775)— — (27,451)
Operating expenses(1,453)(406,366)(345,722)(101,120)(151,467)(18)— (1,006,146)
Healthpeak's share of unconsolidated joint venture operating expenses— (54,922)(27,660)— (846)1 — (83,427)
Noncontrolling interests' share of consolidated joint venture operating expenses— 1,149 — 53 7,737 — — 8,939 
Adjustments to NOI(2)
(3,240)(579)93,263 (15,389)(4,695)1,504 — 70,864 
Adjusted NOI77,589 90,819 85,753 299,450 258,974 33,637 — 846,222 
Plus: Adjustments to NOI(2)
3,240 579 (93,263)15,389 4,695 (1,504)— (70,864)
Interest income— — — — — 12,361 — 12,361 
Interest expense(199)(8,341)(5,256)(180)(302)— (157,883)(172,161)
Depreciation and amortization(21,031)(113,591)(81,760)(159,737)(161,408)(3,867)— (541,394)
General and administrative— — — — — — (67,730)(67,730)
Transaction costs— — — — — — (18,061)(18,061)
Impairments and loan loss reserves (recoveries), net(17,774)(63,672)— — (6,033)(10,244)— (97,723)
Gain (loss) on sales of real estate, net164,043 (1,798)— — 85,676 (40)— 247,881 
Loss on debt extinguishments— — — — — — (42,912)(42,912)
Other income (expense), net— 2,601 188,377 — — 41,707 4,569 237,254 
Income tax benefit (expense)(3)
— — — — — — 16,216 16,216 
Less: Government grant income— (2,601)(13,632)— — — — (16,233)
Less: Healthpeak's share of unconsolidated joint venture NOI— (19,646)(3,843)— (1,239)(87)— (24,815)
Plus: Noncontrolling interests' share of consolidated joint venture NOI— 352 — 122 18,038 — — 18,512 
Equity income (loss) from unconsolidated joint ventures— (55,360)(1,801)— 604 8,012 — (48,545)
Net income (loss)$205,868 $(170,658)$74,575 $155,044 $199,005 $79,975 $(265,801)$278,008 
_______________________________________
(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.
(3)Income tax benefit (expense) for the nine months ended September 30, 2020 includes: (i) a $51 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), (ii) a $31 million income tax expense related to the valuation allowance on deferred tax assets that are no longer expected to be realized (see Note 4), and (iii) 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 nine months ended September 30, 2019:
 Senior Housing Triple-NetSHOPCCRCLife ScienceMedical OfficeOther Non-reportableCorporate Non-segmentTotal
Total revenues$156,592 $515,457 $— $320,630 $427,761 $45,252 $— $1,465,692 
Less: Interest income— — — — — (6,868)— (6,868)
Healthpeak's share of unconsolidated joint venture total revenues— 16,514 157,744 — 2,115 16,241 — 192,614 
Noncontrolling interests' share of consolidated joint venture total revenues(1)(1,510)— (134)(25,289)— — (26,934)
Operating expenses(2,725)(400,608)— (76,992)(150,635)(29)— (630,989)
Healthpeak's share of unconsolidated joint venture operating expenses— (12,407)(127,026)— (837)(51)— (140,321)
Noncontrolling interests' share of consolidated joint venture operating expenses— 1,058 — 42 7,513 — — 8,613 
Adjustments to NOI(1)
3,834 2,819 13,832 (17,146)(4,569)(413)— (1,643)
Adjusted NOI157,700 121,323 44,550 226,400 256,059 54,132 — 860,164 
Plus: Adjustments to NOI(1)
(3,834)(2,819)(13,832)17,146 4,569 413 — 1,643 
Interest income— — — — — 6,868 — 6,868 
Interest expense(901)(4,626)— (211)(328)— (161,433)(167,499)
Depreciation and amortization(45,138)(134,481)— (122,705)(161,350)(5,517)— (469,191)
General and administrative— — — — — — (71,445)(71,445)
Transaction costs— — — — — — (7,174)(7,174)
Impairments and loan loss reserves (recoveries), net(22,914)(77,685)— — (14,677)(377)— (115,653)
Gain (loss) on sales of real estate, net3,557 8,844 — 3,651 2,876 (220)— 18,708 
Loss on debt extinguishments— — — — — — (36,152)(36,152)
Other income (expense), net— 12,817 — — — 980 11,037 24,834 
Income tax benefit (expense)— — — — — — 11,583 11,583 
Less: Healthpeak's share of unconsolidated joint venture NOI— (4,107)(30,718)— (1,278)(16,190)— (52,293)
Plus: Noncontrolling interests' share of consolidated joint venture NOI1 452 — 92 17,776 — — 18,321 
Equity income (loss) from unconsolidated joint ventures— (1,473)(13,858)— 643 4,676 — (10,012)
Net income (loss)$88,471 $(81,755)$(13,858)$124,373 $104,290 $44,765 $(253,584)$12,702 
_______________________________________
(1)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.
The following table summarizes the Company’s revenues by segment (in thousands):
 Three Months Ended
September 30,		Nine Months Ended
September 30,
Segment2020201920202019
Senior housing triple-net$24,558 $47,956 $82,282 $156,592 
SHOP149,615 212,275 475,869 515,457 
CCRC115,031 — 320,737 — 
Life science148,702 118,561 416,081 320,630 
Medical office145,153 143,639 431,935 427,761 
Other non-reportable14,680 15,540 44,425 45,252 
Total revenues$597,739 $537,971 $1,771,329 $1,465,692 
See Notes 3, 4, 5, 6, and 7 for significant transactions impacting the Company’s segment assets during the periods presented.