Segment Disclosures (Tables)

9 Months Ended

Sep. 30, 2020

Segment Reporting [Abstract]

Summary of Financial Information of Reportable Segments

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

For the three months ended September 30, 2020:

	Senior Housing Triple-Net		SHOP		CCRC		Life Science		Medical Office		Other Non-reportable		Corporate Non-segment		Total
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 NOI	24,230		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-Net		SHOP		CCRC		Life Science		Medical Office		Other Non-reportable		Corporate Non-segment		Total
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 NOI	45,554		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-Net		SHOP		CCRC		Life Science		Medical Office		Other Non-reportable		Corporate Non-segment		Total
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 NOI	77,589		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, net	164,043		(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

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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 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-Net		SHOP		CCRC		Life Science		Medical Office		Other Non-reportable		Corporate Non-segment		Total
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 NOI	157,700		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, net	3,557		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 NOI	1		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

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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.

Schedule of Reconciliation of Company's Revenues by Segment

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

	Three Months Ended September 30,				Nine Months Ended September 30,
Segment	2020		2019		2020		2019
Senior housing triple-net	$	24,558	$	47,956	$	82,282	$	156,592
SHOP	149,615		212,275		475,869		515,457
CCRC	115,031		—		320,737		—
Life science	148,702		118,561		416,081		320,630
Medical office	145,153		143,639		431,935		427,761
Other non-reportable	14,680		15,540		44,425		45,252
Total revenues	$	597,739	$	537,971	$	1,771,329	$	1,465,692