10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934.

For the quarterly period ended June 30, 2021

or

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from             to             

Commission file number 001-08895

Healthpeak Properties, Inc.

(Exact name of registrant as specified in its charter)

Maryland	33-0091377
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

5050 South Syracuse Street, Suite 800

Denver, CO 80237

(Address of principal executive offices) (Zip Code)

(720) 428-5050

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, $1.00 par value	PEAK	New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).  Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☒	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☐
		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.    ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).  Yes ☐ No ☒

As of August 2, 2021, there were 538,968,372 shares of the registrant’s $1.00 par value common stock outstanding.

HEALTHPEAK PROPERTIES, INC.

INDEX

PART I. FINANCIAL INFORMATION
Item 1.	Financial Statements (Unaudited):
	Consolidated Balance Sheets	3
	Consolidated Statements of Operations	4
	Consolidated Statements of Comprehensive Income (Loss)	5
	Consolidated Statements of Equity	6
	Consolidated Statements of Cash Flows	8
	Notes to the Consolidated Financial Statements	9
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	41
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	65
Item 4.	Controls and Procedures	66
PART II. OTHER INFORMATION
Item 1.	Legal Proceedings	67
Item 1A.	Risk Factors	67
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	67
Item 6.	Exhibits	68
Signatures		69

2

Healthpeak Properties, Inc.

CONSOLIDATED BALANCE SHEETS

(In thousands, except share and per share data)

(Unaudited)

	June 30, 2021		December 31, 2020
ASSETS
Real estate:
Buildings and improvements	$	11,543,657	$	11,048,433
Development costs and construction in progress	711,772		613,182
Land	1,966,665		1,867,278
Accumulated depreciation and amortization	(2,618,101)		(2,409,135)
Net real estate	11,603,993		11,119,758
Net investment in direct financing leases	44,706		44,706
Loans receivable, net of reserves of $4,198 and $10,280	429,076		195,375
Investments in and advances to unconsolidated joint ventures	388,415		402,871
Accounts receivable, net of allowance of $3,429 and $3,994	41,814		42,269
Cash and cash equivalents	96,923		44,226
Restricted cash	129,052		67,206
Intangible assets, net	511,612		519,917
Assets held for sale and discontinued operations, net	246,807		2,626,306
Right-of-use asset, net	215,303		192,349
Other assets, net	624,669		665,106
Total assets	$	14,332,370	$	15,920,089
LIABILITIES AND EQUITY
Bank line of credit and commercial paper	$	720,000	$	129,590
Term loan	249,303		249,182
Senior unsecured notes	3,710,972		5,697,586
Mortgage debt	358,101		221,621
Intangible liabilities, net	139,116		144,199
Liabilities related to assets held for sale and discontinued operations, net	65,272		415,737
Lease liability	189,732		179,895
Accounts payable, accrued liabilities, and other liabilities	688,458		763,391
Deferred revenue	777,687		774,316
Total liabilities	6,898,641		8,575,517
Commitments and contingencies
Common stock, $1.00 par value: 750,000,000 shares authorized; 538,955,168 and 538,405,393 shares issued and outstanding	538,955		538,405
Additional paid-in capital	10,229,549		10,229,857
Cumulative dividends in excess of earnings	(3,880,253)		(3,976,232)
Accumulated other comprehensive income (loss)	(3,389)		(3,685)
Total stockholders’ equity	6,884,862		6,788,345
Joint venture partners	347,610		357,069
Non-managing member unitholders	201,257		199,158
Total noncontrolling interests	548,867		556,227
Total equity	7,433,729		7,344,572
Total liabilities and equity	$	14,332,370	$	15,920,089

See accompanying Notes to the Unaudited Consolidated Financial Statements.

3

Healthpeak Properties, Inc.

CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share data)

(Unaudited)

	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
Revenues:
Rental and related revenues	$	340,642	$	288,253	$	668,614	$	570,570
Resident fees and services	117,308		113,926		233,436		205,706
Income from direct financing leases	2,180		2,150		4,343		5,419
Interest income	16,108		4,230		25,121		7,918
Total revenues	476,238		408,559		931,514		789,613
Costs and expenses:
Interest expense	38,681		54,823		85,524		110,514
Depreciation and amortization	171,459		139,691		328,997		264,803
Operating	190,132		177,808		371,893		415,185
General and administrative	24,088		23,720		48,990		46,069
Transaction costs	619		373		1,417		14,936
Impairments and loan loss reserves (recoveries), net	931		6,837		4,173		17,944
Total costs and expenses	425,910		403,252		840,994		869,451
Other income (expense):
Gain (loss) on sales of real estate, net	175,238		81,284		175,238		83,353
Gain (loss) on debt extinguishments	(60,865)		(25,824)		(225,157)		(24,991)
Other income (expense), net	1,734		17,415		3,934		228,068
Total other income (expense), net	116,107		72,875		(45,985)		286,430
Income (loss) before income taxes and equity income (loss) from unconsolidated joint ventures	166,435		78,182		44,535		206,592
Income tax benefit (expense)	763		(106)		755		29,762
Equity income (loss) from unconsolidated joint ventures	867		(17,735)		2,190		(28,881)
Income (loss) from continuing operations	168,065		60,341		47,480		207,473
Income (loss) from discontinued operations	113,960		(5,292)		383,968		130,116
Net income (loss)	282,025		55,049		431,448		337,589
Noncontrolling interests’ share in continuing operations	(3,535)		(3,486)		(6,841)		(6,949)
Noncontrolling interests’ share in discontinued operations	(2,210)		(57)		(2,539)		(54)
Net income (loss) attributable to Healthpeak Properties, Inc.	276,280		51,506		422,068		330,586
Participating securities’ share in earnings	(287)		(375)		(2,732)		(1,800)
Net income (loss) applicable to common shares	$	275,993	$	51,131	$	419,336	$	328,786
Basic earnings (loss) per common share:
Continuing operations	$	0.30	$	0.10	$	0.07	$	0.38
Discontinued operations	0.21		(0.01)		0.71		0.25
Net income (loss) applicable to common shares	$	0.51	$	0.09	$	0.78	$	0.63
Diluted earnings (loss) per common share:
Continuing operations	$	0.30	$	0.10	$	0.07	$	0.38
Discontinued operations	0.21		(0.01)		0.71		0.25
Net income (loss) applicable to common shares	$	0.51	$	0.09	$	0.78	$	0.63
Weighted average shares outstanding:
Basic	538,929		538,262		538,805		522,427
Diluted	544,694		538,517		539,081		523,498

See accompanying Notes to the Unaudited Consolidated Financial Statements.

4

Healthpeak Properties, Inc.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(In thousands)

(Unaudited)

	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
Net income (loss)	$	282,025	$	55,049	$	431,448	$	337,589
Other comprehensive income (loss):
Net unrealized gains (losses) on derivatives	—		188		332		489
Change in Supplemental Executive Retirement Plan obligation and other	108		121		215		182
Reclassification adjustment realized in net income (loss)	—		—		(251)		—
Total other comprehensive income (loss)	108		309		296		671
Total comprehensive income (loss)	282,133		55,358		431,744		338,260
Total comprehensive (income) loss attributable to noncontrolling interests’ share in continuing operations	(3,535)		(3,486)		(6,841)		(6,949)
Total comprehensive (income) loss attributable to noncontrolling interests’ share in discontinued operations	(2,210)		(57)		(2,539)		(54)
Total comprehensive income (loss) attributable to Healthpeak Properties, Inc.	$	276,388	$	51,815	$	422,364	$	331,257

See accompanying Notes to the Unaudited Consolidated Financial Statements.

5

Healthpeak Properties, Inc.

CONSOLIDATED STATEMENTS OF EQUITY

(In thousands, except per share data)

(Unaudited)

For the three months ended June 30, 2021:

	Common Stock			Additional Paid-In Capital		Cumulative Dividends In Excess Of Earnings		Accumulated Other Comprehensive Income (Loss)		Total Stockholders’ Equity		Total Noncontrolling Interests		Total Equity
	Shares	Amount
April 1, 2021	538,886	$	538,886	$	10,223,711	$	(3,994,562)	$	(3,497)	$	6,764,538	$	552,144	$	7,316,682
Net income (loss)	—	—		—		276,280		—		276,280		5,745		282,025
Other comprehensive income (loss)	—	—		—		—		108		108		—		108
Issuance of common stock, net	75	75		(118)		—		—		(43)		—		(43)
Repurchase of common stock	(10)	(10)		(305)		—		—		(315)		—		(315)
Exercise of stock options	4	4		122		—		—		126		—		126
Amortization of stock-based compensation	—	—		6,144		—		—		6,144		—		6,144
Common dividends ($0.30 per share)	—	—		—		(161,971)		—		(161,971)		—		(161,971)
Distributions to noncontrolling interest	—	—		—		—		—		—		(8,957)		(8,957)
Purchase of noncontrolling interests	—	—		(5)		—		—		(5)		(65)		(70)
June 30, 2021	538,955	$	538,955	$	10,229,549	$	(3,880,253)	$	(3,389)	$	6,884,862	$	548,867	$	7,433,729

For the three months ended June 30, 2020:

	Common Stock			Additional Paid-In Capital		Cumulative Dividends In Excess Of Earnings		Accumulated Other Comprehensive Income (Loss)		Total Stockholders’ Equity		Total Noncontrolling Interests		Total Equity
	Shares	Amount
April 1, 2020	538,135	$	538,135	$	10,213,011	$	(3,512,143)	$	(2,495)	$	7,236,508	$	576,935	$	7,813,443
Net income (loss)	—	—		—		51,506		—		51,506		3,543		55,049
Other comprehensive income (loss)	—	—		—		—		309		309		—		309
Issuance of common stock, net	97	97		670		—		—		767		—		767
Conversion of DownREIT units to common stock	97	97		3,471		—		—		3,568		(3,568)		—
Repurchase of common stock	(11)	(11)		(250)		—		—		(261)		—		(261)
Amortization of stock-based compensation	—	—		5,826		—		—		5,826		—		5,826
Common dividends ($0.37 per share)	—	—		—		(199,550)		—		(199,550)		—		(199,550)
Distributions to noncontrolling interest	—	—		—		—		—		—		(6,862)		(6,862)
June 30, 2020	538,318	$	538,318	$	10,222,728	$	(3,660,187)	$	(2,186)	$	7,098,673	$	570,048	$	7,668,721

6

For the six months ended June 30, 2021:

	Common Stock			Additional Paid-In Capital		Cumulative Dividends In Excess Of Earnings		Accumulated Other Comprehensive Income (Loss)		Total Stockholders’ Equity		Total Noncontrolling Interests		Total Equity
	Shares	Amount
January 1, 2021	538,405	$	538,405	$	10,229,857	$	(3,976,232)	$	(3,685)	$	6,788,345	$	556,227	$	7,344,572
Net income (loss)	—	—		—		422,068		—		422,068		9,380		431,448
Other comprehensive income (loss)	—	—		—		—		296		296		—		296
Issuance of common stock, net	954	954		90		—		—		1,044		—		1,044
Repurchase of common stock	(408)	(408)		(12,072)		—		—		(12,480)		—		(12,480)
Exercise of stock options	4	4		122		—		—		126		—		126
Amortization of stock-based compensation	—	—		11,557		—		—		11,557		—		11,557
Common dividends ($0.60 per share)	—	—		—		(326,089)		—		(326,089)		—		(326,089)
Distributions to noncontrolling interests	—	—		—		—		—		—		(16,675)		(16,675)
Purchase of noncontrolling interests	—	—		(5)		—		—		(5)		(65)		(70)
June 30, 2021	538,955	$	538,955	$	10,229,549	$	(3,880,253)	$	(3,389)	$	6,884,862	$	548,867	$	7,433,729

For the six months ended June 30, 2020:

	Common Stock			Additional Paid-In Capital		Cumulative Dividends In Excess Of Earnings		Accumulated Other Comprehensive Income (Loss)		Total Stockholders’ Equity		Total Noncontrolling Interests		Total Equity
	Shares	Amount
December 31, 2019	505,222	$	505,222	$	9,183,892	$	(3,601,199)	$	(2,857)	$	6,085,058	$	582,416	$	6,667,474
Impact of adoption of ASU No. 2016-13(1)	—	—		—		(1,524)		—		(1,524)		—		(1,524)
January 1, 2020	505,222	505,222		9,183,892		(3,602,723)		(2,857)		6,083,534		582,416		6,665,950
Net income (loss)	—	—		—		330,586		—		330,586		7,003		337,589
Other comprehensive income (loss)	—	—		—		—		671		671		—		671
Issuance of common stock, net	33,201	33,201		1,032,188		—		—		1,065,389		—		1,065,389
Conversion of DownREIT units to common stock	120	120		3,957		—		—		4,077		(4,077)		—
Repurchase of common stock	(279)	(279)		(9,719)		—		—		(9,998)		—		(9,998)
Exercise of stock options	54	54		1,752		—		—		1,806		—		1,806
Amortization of stock-based compensation	—	—		10,658		—		—		10,658		—		10,658
Common dividends ($0.74 per share)	—	—		—		(388,050)		—		(388,050)		—		(388,050)
Distributions to noncontrolling interests	—	—		—		—		—		—		(15,294)		(15,294)
June 30, 2020	538,318	$	538,318	$	10,222,728	$	(3,660,187)	$	(2,186)	$	7,098,673	$	570,048	$	7,668,721

_______________________________________

(1)On January 1, 2020, the Company adopted a series of Accounting Standards Updates (“ASUs”) related to accounting for credit losses and recognized the cumulative-effect of adoption to beginning retained earnings. Refer to Note 2 for a detailed impact of adoption.

See accompanying Notes to the Unaudited Consolidated Financial Statements.

7

Healthpeak Properties, Inc.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(Unaudited)

	Six Months Ended June 30,
	2021		2020
Cash flows from operating activities:
Net income (loss)	$	431,448	$	337,589
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation and amortization of real estate, in-place lease, and other intangibles	328,997		367,764
Amortization of stock-based compensation	9,459		8,972
Amortization of deferred financing costs	4,334		5,116
Straight-line rents	(15,336)		(14,544)
Amortization of nonrefundable entrance fees and above/below market lease intangibles	(45,842)		(37,043)
Equity loss (income) from unconsolidated joint ventures	(7,100)		29,065
Distributions of earnings from unconsolidated joint ventures	4,015		11,594
Loss (gain) on sale of real estate under direct financing leases	—		(41,670)
Deferred income tax expense (benefit)	(2,538)		(31,947)
Impairments and loan loss reserves (recoveries), net	15,168		63,173
Loss (gain) on debt extinguishments	225,157		24,991
Loss (gain) on sales of real estate, net	(557,138)		(247,732)
Loss (gain) upon change of control, net	(1,042)		(169,962)
Casualty-related loss (recoveries), net	1,061		—
Other non-cash items	(8,057)		127
Changes in:
Decrease (increase) in accounts receivable and other assets, net	32,928		13,117
Increase (decrease) in accounts payable, accrued liabilities, and deferred revenue	(55,920)		1,213
Net cash provided by (used in) operating activities	359,594		319,823
Cash flows from investing activities:
Acquisitions of real estate	(498,142)		(300,954)
Development, redevelopment, and other major improvements of real estate	(281,829)		(391,230)
Leasing costs, tenant improvements, and recurring capital expenditures	(43,132)		(40,572)
Proceeds from sales of real estate, net	2,253,889		548,858
Acquisition of CCRC Portfolio	—		(390,599)
Contributions to unconsolidated joint ventures	(10,168)		(1,983)
Distributions in excess of earnings from unconsolidated joint ventures	34,586		3,251
Proceeds from sales/principal repayments on loans receivable and direct financing leases	265,934		109,920
Investments in loans receivable and other	(8,842)		(71,961)
Net cash provided by (used in) investing activities	1,712,296		(535,270)
Cash flows from financing activities:
Borrowings under bank line of credit and commercial paper	8,177,450		2,025,600
Repayments under bank line of credit and commercial paper	(7,587,040)		(2,118,600)
Issuance and borrowings of debt, excluding bank line of credit and commercial paper	142,100		594,750
Repayments and repurchase of debt, excluding bank line of credit and commercial paper	(2,170,170)		(257,511)
Payments for debt extinguishment and deferred financing costs	(217,468)		(30,508)
Issuance of common stock and exercise of options	1,170		1,067,195
Repurchase of common stock	(12,480)		(9,998)
Dividends paid on common stock	(326,089)		(388,050)
Distributions to and purchase of noncontrolling interests	(16,745)		(15,294)
Net cash provided by (used in) financing activities	(2,009,272)		867,584
Effect of foreign exchanges on cash, cash equivalents and restricted cash	—		(153)
Net increase (decrease) in cash, cash equivalents and restricted cash	62,618		651,984
Cash, cash equivalents and restricted cash, beginning of period	181,685		184,657
Cash, cash equivalents and restricted cash, end of period	$	244,303	$	836,641

See accompanying Notes to the Unaudited Consolidated Financial Statements.

8

Healthpeak Properties, Inc.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited) 

NOTE 1.  Business

Overview

Healthpeak Properties, Inc., a Standard & Poor’s 500 company, is a Maryland corporation that is organized to qualify as a real estate investment trust (“REIT”) that, together with its consolidated entities (collectively, “Healthpeak” or the “Company”), invests primarily in real estate serving the healthcare industry in the United States (“U.S.”). Healthpeak® acquires, develops, leases, owns, and manages healthcare real estate. The Company’s diverse portfolio is comprised of investments in the following reportable healthcare segments: (i) life science; (ii) medical office; and (iii) continuing care retirement community (“CCRC”).

The Company’s corporate headquarters are in Denver, Colorado and it has additional offices in Irvine, California and Franklin, Tennessee.

Senior Housing Triple-Net and Senior Housing Operating Portfolio Dispositions

During 2020, the Company established and began executing a plan to dispose of its senior housing triple-net and Senior Housing Operating (“SHOP”) properties. As of December 31, 2020, the Company concluded that the planned dispositions represented a strategic shift that has had and will have a major effect on the Company’s operations and financial results. Therefore, senior housing triple-net and SHOP assets meeting the held for sale criteria on or before June 30, 2021 are classified as discontinued operations in all periods presented herein. See Note 5 for further information.

COVID-19 Update

While the coronavirus (“COVID-19”) pandemic continues to evolve daily and its ultimate course remains uncertain, it has caused significant disruption to individuals, governments, financial markets, and businesses, including the Company. The Company’s tenants, operators, and borrowers continue to face significant cost increases as a result of increased health and safety measures implemented to reduce the spread of COVID-19, including increased staffing demands for patient care and sanitation, as well as increased usage and inventory of critical medical supplies and personal protective equipment. These health and safety measures have been in place since the onset of the pandemic and continue to place a substantial strain on the business operations of many of the Company’s tenants, operators, and borrowers. The Company evaluated the impacts of COVID-19 on its business thus far and incorporated information concerning the impact of COVID-19 into its assessments of liquidity, impairments, and collectibility from tenants, residents, and borrowers as of June 30, 2021. The Company will continue to monitor such impacts and will adjust its estimates and assumptions based on the best available information.

NOTE 2.  Summary of Significant Accounting Policies

Basis of Presentation

The accompanying unaudited consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information. Management is required to make estimates and assumptions in the preparation of financial statements in conformity with GAAP. These estimates and assumptions affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from management’s estimates.

The consolidated financial statements include the accounts of Healthpeak Properties, Inc., its wholly-owned subsidiaries, joint ventures (“JVs”), and variable interest entities (“VIEs”) that it controls through voting rights or other means. Intercompany transactions and balances have been eliminated upon consolidation. All adjustments (consisting of normal recurring adjustments) necessary to present fairly the Company’s financial position, results of operations, and cash flows have been included. Operating results for the three and six months ended June 30, 2021 are not necessarily indicative of the results that may be expected for the year ending December 31, 2021. The accompanying unaudited interim financial information should be read in conjunction with the consolidated financial statements and notes thereto for the year ended December 31, 2020 included in the Company’s Annual Report on Form 10-K filed with the U.S. Securities and Exchange Commission (“SEC”).

9

Government Grant Income

On March 27, 2020, the federal government enacted the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) to provide financial aid to individuals, businesses, and state and local governments. During the three and six months ended June 30, 2021 and 2020, the Company received government grants under the CARES Act primarily to cover increased expenses and lost revenue during the COVID-19 pandemic. Grant income is recognized when there is reasonable assurance that the grant will be received and the Company will comply with all conditions attached to the grant. Additionally, grants are recognized over the periods in which the Company recognizes the increased expenses and lost revenue the grants are intended to defray. As of June 30, 2021, the amount of qualifying expenditures and lost revenue exceeded grant income recognized and the Company believes it has complied and will continue to comply with all grant conditions.

The following table summarizes information related to government grant income received and recognized by the Company (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
Government grant income recorded in other income (expense), net	$	87	$	11,871	$	1,397	$	11,871
Government grant income recorded in equity income (loss) from unconsolidated joint ventures	584		804		1,010		804
Government grant income recorded in income (loss) from discontinued operations	428		2,209		3,660		2,209
Total government grants received	$	1,099	$	14,884	$	6,067	$	14,884

Recent Accounting Pronouncements

Adopted

Credit Losses. In June 2016, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2016-13, Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”). ASU 2016-13 is intended to improve financial reporting by requiring timelier recognition of credit losses on loans and other financial instruments held by financial institutions and other organizations. The amendments in ASU 2016-13 eliminate the “probable” initial threshold for recognition of credit losses in previous accounting guidance and, instead, reflect an entity’s current estimate of all expected credit losses over the life of the financial instrument. Historically, when credit losses were measured under previous accounting guidance, an entity generally only considered past events and current conditions in measuring the incurred loss. The amendments in ASU 2016-13 broaden the information that an entity must consider in developing its expected credit loss estimate for assets measured either collectively or individually. The use of forecasted information incorporates more timely information in the estimate of expected credit loss.

As a result of adopting ASU 2016-13 on January 1, 2020 using the modified retrospective transition approach, the Company recognized a cumulative-effect adjustment to equity of $2 million as of January 1, 2020. Under ASU 2016-13, the Company began using a loss model that relies on future expected credit losses, rather than incurred losses, as was required under historical GAAP. Under the new model, the Company is required to recognize future credit losses expected to be incurred over the life of its finance receivables, including loans receivable, direct financing leases (“DFLs”), and certain accounts receivable, at inception of those instruments. The model emphasizes historical experience and future market expectations to determine a loss to be recognized at inception. However, the model continues to be applied on an individual basis and rely on counter-party specific information to ensure the most accurate estimate is recognized. The Company reassesses its reserves on finance receivables at each balance sheet date to determine if an adjustment to the previous reserve is necessary.

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Accounting for Lease Concessions Related to COVID-19. In April 2020, the FASB staff issued a question-and-answer document (the “Lease Modification Q&A”) focused on the application of lease accounting guidance to lease concessions provided as a result of COVID-19. Under ASC 842, the Company would have to determine, on a lease-by-lease basis, if a lease concession was the result of a new arrangement reached with the tenant (treated within the lease modification accounting framework) or if a lease concession was under the enforceable rights and obligations within the existing lease agreement (precluded from applying the lease modification accounting framework). The Lease Modification Q&A allows the Company, if certain criteria have been met, to bypass the lease-by-lease analysis, and instead elect to either apply the lease modification accounting framework or not, with such election applied consistently to leases with similar characteristics and similar circumstances. During the three and six months ended June 30, 2020, the Company provided rent deferrals (to be repaid before the end of 2020) to certain tenants in its life science and medical office segments that were impacted by COVID-19 (discussed in further detail in Note 6). No such rent deferrals were provided to tenants during the three and six months ended June 30, 2021. The Company elected to not assess these rent deferrals on a lease-by-lease basis and to continue recognizing rent revenue on a straight-line basis.

While the Company’s election for rent deferrals will be applied consistently to future deferrals with similar characteristics and similar circumstances, if the Company grants future lease concessions of a different type (such as rent abatements), it will make an election related to those concessions at that time.

Not Yet Adopted

Reference Rate Reform. In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting (“ASU 2020-04”), which provides optional guidance for a limited period of time to ease the potential burden in accounting for, or recognizing the effects of, reference rate reform on financial reporting. In January 2021, the FASB issued ASU No. 2021-01, Reference Rate Reform (Topic 848): Scope (“ASU 2021-01”), which amends the scope of ASU 2020-04 to include derivative instruments that use an interest rate for margining, discounting, or contract price alignment that is modified as a result of reference rate reform. The amendments in ASU 2020-04 and ASU 2021-01 are effective immediately and may be applied through December 31, 2022. The Company is evaluating: (i) how the transition away from LIBOR will impact the Company, (ii) whether the optional relief provided by these standards will be adopted, and (iii) the impact that adopting ASU 2020-04 or ASU 2021-01 will have on its consolidated financial position, results of operations, cash flows, or disclosures.

NOTE 3.  Master Transactions and Cooperation Agreement with Brookdale

2019 Master Transactions and Cooperation Agreement with Brookdale

In October 2019, the Company and Brookdale Senior Living Inc. (“Brookdale”) entered into a Master Transactions and Cooperation Agreement (the “2019 MTCA”), which includes a series of transactions related to its previously jointly owned 15-campus CCRC portfolio (the “CCRC JV”) and the portfolio of senior housing properties Brookdale triple-net leased from the Company, which, at the time, included 43 properties.

In connection with the 2019 MTCA, the Company and Brookdale, and certain of their respective subsidiaries, closed the following transactions related to the CCRC JV on January 31, 2020:

•The Company, which owned a 49% interest in the CCRC JV, purchased Brookdale’s 51% interest in 13 of the 15 communities in the CCRC JV based on a valuation of $1.06 billion (the “CCRC Acquisition”);

•The management agreements related to the CCRC Acquisition communities were terminated and management transitioned (under new management agreements) from Brookdale to Life Care Services LLC (“LCS”); and

•The Company paid a $100 million management termination fee to Brookdale.

In addition, pursuant to the 2019 MTCA, the Company and Brookdale closed the following transactions related to properties Brookdale triple-net leased from the Company on January 31, 2020:

•Brookdale acquired 18 of the properties from the Company (the “Brookdale Acquisition Assets”) for cash proceeds of $385 million;

•The remaining 24 properties (excludes one property transitioned and expected to be sold to a third party, as discussed below) were restructured into a single master lease with 2.4% annual rent escalators and a maturity date of December 31, 2027 (the “2019 Amended Master Lease”);

•A portion of annual rent (amount in excess of 6.5% of sales proceeds) related to 14 of the 18 Brookdale Acquisition Assets was reallocated to the remaining properties under the 2019 Amended Master Lease; and

•Brookdale paid down $20 million of future rent under the 2019 Amended Master Lease.

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As agreed to by the Company and Brookdale under the 2019 MTCA, in December 2020, the Company terminated the triple-net lease related to one property and converted it to a structure permitted by the Housing and Economic Recovery Act of 2008, and includes most of the provisions previously proposed in the REIT Investment Diversification and Empowerment Act of 2007 (commonly referred to as “RIDEA”). The 24 properties under the 2019 Amended Master Lease were sold in January 2021 (see Note 5).

The Company and Brookdale also agreed that the Company would provide up to $35 million of capital investment in the 2019 Amended Master Lease properties over a five-year term, which would increase rent by 7% of the amount spent, per annum. As of December 31, 2020, the Company had funded $5 million of this capital investment. Upon selling the 24 properties under the 2019 Amended Master Lease in January 2021, the remaining capital investment obligation was transferred to the buyer.

As a result of the above transactions, on January 31, 2020, the Company began consolidating the 13 CCRCs in which it acquired Brookdale’s interest. Accordingly, the Company derecognized its investment in the CCRC JV of $323 million and recognized a gain upon change of control of $170 million, which is included in other income (expense), net. In connection with consolidating the 13 CCRCs during the first quarter of 2020, the Company recognized real estate and intangible assets of $1.8 billion, refundable entrance fee liabilities of $308 million, contractual liabilities associated with previously collected non-refundable entrance fees of $436 million, debt assumed of $215 million, other net assets of $48 million, and cash paid of $396 million.

Upon sale of the Brookdale Acquisition Assets in January 2021, the Company recognized an aggregate gain on sales of real estate of $164 million, which is recorded within income (loss) from discontinued operations.

In May 2021, the CCRC JV sold the two remaining CCRCs subject to the 2019 MTCA for $38 million, $19 million of which represents the Company’s 49% interest in the CCRC JV, resulting in an immaterial gain on sale recorded within equity income (loss) from unconsolidated joint ventures (see Note 8).

Fair Value Measurement Techniques and Quantitative Information

At January 31, 2020, the Company performed a fair value assessment of each of the 2019 MTCA components that provided measurable economic benefit or detriment to the Company. Each fair value calculation was based on an income or market approach and relied on historical and forecasted net operating income (“NOI”), actuarial assumptions about the expected resident length of stay, and market data, including, but not limited to, discount rates ranging from 10% to 12%, annual rent escalators ranging from 2% to 3%, and real estate capitalization rates ranging from 7% to 9%. All assumptions were considered to be Level 3 measurements within the fair value hierarchy.

NOTE 4.  Real Estate Transactions

2021 Real Estate Investments

South San Francisco Land Site Acquisition

In October 2020, the Company executed a definitive agreement to acquire approximately 12 acres of land for $128 million. The acquisition site is located in South San Francisco, California, adjacent to two sites currently held by the Company as land for future development. The Company paid a $10 million nonrefundable deposit upon completing due diligence in November 2020. The first phase of the acquisition, with a purchase price of $61 million, closed in April 2021.

Westview Medical Plaza Acquisition

In February 2021, the Company acquired one medical office building (“MOB”) in Nashville, Tennessee for $13 million.

Pinnacle at Ridgegate Acquisition

In April 2021, the Company acquired one MOB in Denver, Colorado for $38 million.

MOB Portfolio Acquisition

In April 2021, the Company acquired 14 MOBs for $371 million (the “MOB Portfolio”). In conjunction with the acquisition, the Company issued $142 million of secured mortgage debt.

Westside Medical Plaza Acquisition

In June 2021, the Company acquired one MOB in Fort Lauderdale, Florida for $16 million.

Wesley Woodlawn Acquisition

In July 2021, the Company acquired one MOB in Wichita, Kansas for $50 million.

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Atlantic Health Acquisition

In July 2021, the Company acquired three MOBs in Morristown, New Jersey for $155 million.

2020 Real Estate Investments

The Post Acquisition

In April 2020, the Company acquired a life science campus in Waltham, Massachusetts for $320 million.

Scottsdale Gateway Acquisition

In July 2020, the Company acquired one MOB in Scottsdale, Arizona for $27 million.

Midwest MOB Portfolio Acquisition

In October 2020, the Company acquired a portfolio of seven MOBs located in Indiana, Missouri, and Illinois for $169 million.

Cambridge Discovery Park Acquisition

In December 2020, the Company acquired three life science facilities in Cambridge, Massachusetts for $610 million and a 49% unconsolidated joint venture interest in a fourth property on the same campus for $54 million. If the fourth property is sold in a taxable transaction, the Company is generally obligated to indemnify its joint venture partner for its federal and state income taxes associated with the gain that existed at the time of the contribution to the joint venture.

Waldwick JV Interest Purchase

In October 2020, the Company acquired the remaining 15% equity interest of a senior housing joint venture structure (which owned one senior housing facility), in which the Company previously held an unconsolidated equity investment, for $4 million. Subsequent to the acquisition, the Company owned 100% of the equity, began consolidating the facility, and recognized a gain upon change of control of $6 million, which is recorded in other income (expense), net within income (loss) from discontinued operations. In December 2020, the Company sold the property as part of the Atria SHOP Portfolio disposition (see Note 5).

MBK JV Dissolution

In November 2020, as part of the dissolution of a senior housing joint venture, the Company was distributed one property, one land parcel, and $11 million in cash. Upon consolidating the property and land parcel at the time of distribution, the Company recognized a loss upon change of control of $16 million, which is recorded in other income (expense), net within income (loss) from discontinued operations. In conjunction with the distribution of the property, the Company assumed $36 million of secured mortgage debt (classified as liabilities related to assets held for sale and discontinued operations, net) maturing in 2025, which was recorded at its fair value through asset acquisition accounting. The property was classified as discontinued operations as of June 30, 2021.

Other Real Estate Acquisitions

In December 2020, the Company acquired one hospital in Dallas, Texas for $34 million.

Development Activities

The Company’s commitments, which are primarily related to development and redevelopment projects and tenant improvements, increased by $41 million, to $347 million at June 30, 2021, when compared to December 31, 2020, primarily as a result of increased commitments on existing projects and new projects started during the first half of 2021.

In March 2021, management reviewed the estimated useful lives of certain life science properties in connection with future plans of densification on campuses where the Company has densification opportunities. These changes in the planned use of the properties resulted in the Company updating the estimated useful lives of the properties, which differ from the Company’s previous estimates. The estimated useful lives of these properties was reduced from a weighted average remaining useful life of 15 years to 6 years to reflect the timing of the planned densification projects. For the three and six months ended June 30, 2021, this change in estimate increased depreciation expense by $11 million and $15 million, respectively, resulting in a corresponding decrease to income (loss) from continuing operations and net income (loss), as well as a decrease of approximately $0.02 and $0.03, respectively, to basic and diluted earnings per share.

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NOTE 5.  Dispositions of Real Estate and Discontinued Operations

2021 Dispositions of Real Estate

Sunrise Senior Housing Portfolio

In January 2021, the Company sold a portfolio of 32 SHOP assets (the “Sunrise Senior Housing Portfolio”) for $664 million, resulting in an immaterial loss on sale, which is recognized in income (loss) from discontinued operations, and provided the buyer with: (i) financing of $410 million (see Note 7) and (ii) a commitment to finance up to $92 million of additional debt for capital expenditures. The commitment to finance additional debt for capital expenditures was subsequently reduced to $56 million during June 2021, none of which had been funded as of June 30, 2021 (see Note 7). Upon completion of the license transfer process in June 2021, the Company sold the two remaining Sunrise senior housing triple-net assets for $80 million, resulting in a gain on sale of $22 million, which is recognized in income (loss) from discontinued operations.

Brookdale Triple-Net Portfolio

In January 2021, the Company sold 24 senior housing assets in a triple-net lease with Brookdale for $510 million, resulting in total gain on sale of $169 million, which is recognized in income (loss) from discontinued operations.

Additional SHOP Portfolio

In January 2021, the Company sold a portfolio of 16 SHOP assets for $230 million, resulting in total gain on sale of $59 million, which is recognized in income (loss) from discontinued operations, and provided the buyer with financing of $150 million (see Note 7).

HRA Triple-Net Portfolio

In February 2021, the Company sold eight senior housing assets in a triple-net lease with Harbor Retirement Associates for $132 million, resulting in total gain on sale of $33 million, which is recognized in income (loss) from discontinued operations.

Oakmont SHOP Portfolio

In April 2021, the Company sold a portfolio of 12 SHOP assets for $564 million. In conjunction with the sale, mortgage debt held on two properties with a carrying value of $64 million was repaid and the remaining mortgage debt held on four properties with a carrying value of $107 million was assumed by the buyer. The transaction resulted in total gain on sale of $80 million, which is recognized in income (loss) from discontinued operations.

Discovery SHOP Portfolio

In April 2021, the Company sold a portfolio of 10 SHOP assets for $334 million, resulting in total gain on sale of $9 million, which is recognized in income (loss) from discontinued operations. Also included in this transaction was the sale of two mezzanine loans and two preferred equity investments for $21 million, resulting in no gain or loss on sale of the investments (collectively, the “Discovery SHOP Portfolio”).

Sonata SHOP Portfolio

In April 2021, the Company sold a portfolio of five SHOP assets for $64 million, resulting in total gain on sale of $3 million, which is recognized in income (loss) from discontinued operations.

SLC SHOP Portfolio

In May 2021, the Company sold seven SHOP assets for $113 million and repaid $70 million of mortgage debt that was held on six of the assets, resulting in total gain on sale of $1 million, which is recognized in income (loss) from discontinued operations.

Hoag Hospital Disposition

In May 2021, the Company sold one hospital for $226 million through the exercise of a purchase option by a tenant, resulting in gain on sale of $172 million.

2021 Other Dispositions

In addition to the sales discussed above, during the three months ended June 30, 2021, the Company sold the following: (i) six SHOP assets for $44 million, (ii) three senior housing triple-net assets for $12 million, and (iii) four MOBs for $21 million, resulting in total gain on sales of $10 million ($7 million of which is recognized in income (loss) from discontinued operations). In addition to the sales for the three months ended June 30, 2021 discussed above, during the six months ended June 30, 2021, the Company sold one SHOP asset for $5 million, resulting in an immaterial gain on sale, which is recognized in income (loss) from discontinued operations.

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2020 Dispositions of Real Estate

During the three months ended June 30, 2020, the Company sold the following: (i) two SHOP assets for $28 million and (ii) three MOBs for $106 million (through the exercise of a purchase option by a tenant), resulting in total gain on sales of $83 million ($2 million of which is recognized in income (loss) from discontinued operations).

During the six months ended June 30, 2020, the Company sold the following: (i) 9 SHOP assets for $64 million, (ii) 18 senior housing triple-net assets for $385 million (representative of the 18 facilities sold to Brookdale under the 2019 MTCA - see Note 3), and (iii) 3 MOBs for $106 million (through the exercise of a purchase option by a tenant), resulting in total gain on sales of $247 million ($164 million of which is recognized in income (loss) from discontinued operations).

Aegis NNN Portfolio

In December 2020, the Company sold 10 senior housing triple-net assets (the “Aegis NNN Portfolio”) for $358 million and repaid $6 million of variable rate secured mortgage debt held on one asset, resulting in total gain on sale of $228 million, which is recognized in income (loss) from discontinued operations.

Atria SHOP Portfolio

In December 2020, the Company sold 12 SHOP assets (the “Atria SHOP Portfolio”) for $312 million, resulting in total gain on sale of $39 million, which is recognized in income (loss) from discontinued operations. The Company provided the buyer with financing of $61 million on four of the assets sold (see Note 7).

2020 Other Dispositions

In addition to the portfolio sales discussed above, during the year ended December 31, 2020, the Company sold the following: (i) 23 SHOP assets for $190 million, (ii) 21 senior housing triple-net assets for $428 million (inclusive of the 18 facilities sold to Brookdale under the 2019 MTCA - see Note 3), (iii) 11 MOBs for $136 million (inclusive of the exercise of a purchase option by a tenant to acquire 3 MOBs in San Diego, California), (iv) 2 MOB land parcels for $3 million, and (v) 1 asset from other non-reportable segments for $1 million, resulting in total gain on sales of $283 million ($193 million of which is recognized in income (loss) from discontinued operations).

Held for Sale and Discontinued Operations

During 2020, the Company established and began executing a plan to dispose of its senior housing triple-net and SHOP properties. As of December 31, 2020, the Company concluded that the planned dispositions represented a strategic shift that has had and will have a major effect on the Company’s operations and financial results. Therefore, senior housing triple-net and SHOP assets meeting the held for sale criteria on or before June 30, 2021 are classified as discontinued operations in all periods presented herein.

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The following summarizes the assets and liabilities classified as discontinued operations at June 30, 2021 and December 31, 2020, which are included in assets held for sale and discontinued operations, net and liabilities related to assets held for sale and discontinued operations, net, respectively, on the consolidated balance sheets (in thousands):

	June 30, 2021		December 31, 2020
ASSETS
Real estate:
Buildings and improvements	$	106,495	$	2,553,254
Development costs and construction in progress	11,255		21,509
Land	24,215		355,803
Accumulated depreciation and amortization	(42,999)		(615,708)
Net real estate	98,966		2,314,858
Investments in and advances to unconsolidated joint ventures	—		5,842
Accounts receivable, net of allowance of $4,951 and $5,873	10,928		20,500
Cash and cash equivalents	17,354		53,085
Restricted cash	974		17,168
Intangible assets, net	6,596		24,541
Right-of-use asset, net	104		4,109
Other assets, net(1)	29,908		103,965
Total assets of discontinued operations, net(2)	164,830		2,544,068
Assets held for sale, net(3)	81,977		82,238
Assets held for sale and discontinued operations, net	$	246,807	$	2,626,306
LIABILITIES
Mortgage debt(4)	$	37,069	$	318,876
Lease liability	104		3,189
Accounts payable, accrued liabilities, and other liabilities	26,564		79,411
Deferred revenue	797		11,442
Total liabilities of discontinued operations, net(2)	64,534		412,918
Liabilities related to assets held for sale, net(3)	738		2,819
Liabilities related to assets held for sale and discontinued operations, net	$	65,272	$	415,737

_______________________________________

(1)Includes goodwill of $22 million and $29 million as of June 30, 2021 and December 31, 2020, respectively.

(2)At June 30, 2021, four senior housing triple-net facilities and eight SHOP facilities were classified as held for sale and discontinued operations. At December 31, 2020, 41 senior housing triple-net facilities, 97 SHOP facilities, and 1 SHOP joint venture were classified as held for sale and discontinued operations.

(3)As of June 30, 2021, primarily comprised of the following: (i) four MOBs with net real estate assets of $26 million and right-of-use asset, net of $3 million and (ii) two loans receivable with a total carrying value of $53 million. As of December 31, 2020, primarily comprised of six MOBs with net real estate assets of $73 million and deferred revenue of $2 million.

(4)During the three months ended June 30, 2021 and 2020, the Company made full and partial repayments of mortgage debt classified as discontinued operations of $241 million and $1 million, respectively. During the six months ended June 30, 2021 and 2020, the Company made full and partial repayments of mortgage debt classified as discontinued operations of $281 million and $6 million, respectively.

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The results of discontinued operations through June 30, 2021, or the disposal date of each asset or portfolio of assets if they have been sold, are included in the consolidated results for the three and six months ended June 30, 2021 and 2020. Summarized financial information for discontinued operations for the three and six months ended June 30, 2021 and 2020 are as follows (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
Revenues:
Rental and related revenues	$	1,613	$	24,110	$	6,841	$	56,481
Resident fees and services	30,273		155,771		103,270		327,496
Total revenues	31,886		179,881		110,111		383,977
Costs and expenses:
Interest expense	1,177		2,727		3,853		5,412
Depreciation and amortization	—		38,797		—		102,961
Operating	33,647		138,033		105,165		276,669
Transaction costs	—		254		76		539
Impairments and loan loss reserves (recoveries), net	10,995		17,213		10,995		45,229
Total costs and expenses	45,819		197,024		120,089		430,810
Other income (expense):
Gain (loss) on sales of real estate, net	122,238		1,579		381,900		164,379
Other income (expense), net	128		2,171		6,012		2,126
Total other income (expense), net	122,366		3,750		387,912		166,505
Income (loss) before income taxes and equity income (loss) from unconsolidated joint ventures	108,433		(13,393)		377,934		119,672
Income tax benefit (expense)	302		7,452		1,124		10,628
Equity income (loss) from unconsolidated joint ventures	5,225		649		4,910		(184)
Income (loss) from discontinued operations	$	113,960	$	(5,292)	$	383,968	$	130,116

Impairments of Real Estate

2021

During the three and six months ended June 30, 2021, the Company recognized an impairment charge of $4 million related to one SHOP asset classified as held for sale, which is reported in income (loss) from discontinued operations. Following a reduction in the expected sales price of the asset occurring in the second quarter of 2021, the Company wrote down its carrying value of $20 million to its fair value, less estimated costs to sell, of $16 million.

The fair value of the impaired asset was based on a forecasted sales price, which is considered to be a Level 3 measurement within the fair value hierarchy. The Company’s forecasted sales prices are typically determined using an income approach and/or a market approach (comparable sales model), which rely on certain assumptions by management, including: (i) market capitalization rates, (ii) comparable market transactions, (iii) estimated prices per unit, (iv) negotiations with prospective buyers, and (v) forecasted cash flow streams (lease revenue rates, expense rates, growth rates, etc.). There are inherent uncertainties in making these assumptions. For the Company’s impairment calculation as of June 30, 2021, the Company’s fair value estimate primarily relied on a market approach and utilized comparable market transactions and negotiations with prospective buyers.

2020

During the three months ended June 30, 2020, the Company recognized an aggregate impairment charge of $19 million ($17 million of which is reported in income (loss) from discontinued operations) related to 12 SHOP assets, 2 senior housing triple-net assets, 1 MOB, and 1 undeveloped MOB land parcel as a result of being classified as held for sale and wrote down their aggregate carrying value of $108 million to their aggregate fair value, less estimated costs to sell, of $89 million.

During the six months ended June 30, 2020, the Company recognized an aggregate impairment charge of $50 million ($45 million of which is reported in income (loss) from discontinued operations) related to 20 SHOP assets, 4 senior housing triple-net assets, 2 MOBs, and 1 undeveloped MOB land parcel as a result of being classified as held for sale and wrote down their aggregate carrying value of $231 million to their aggregate fair value, less estimated costs to sell, of $181 million.

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For the Company’s impairment calculations during the six months ended and as of June 30, 2020, the Company’s fair value estimates primarily relied on a market approach and utilized prices per unit ranging from $35,000 to $238,000, with a weighted average price based on relative fair value of $90,000.

Goodwill Impairment

When testing goodwill for impairment, if the Company concludes that it is more likely than not that the fair value of a reporting unit is less than its carrying value, the Company recognizes an impairment loss for the amount by which the carrying value, including goodwill, exceeds the reporting unit’s fair value. Following the senior housing triple-net and SHOP dispositions during the period, the Company performed an impairment assessment to evaluate the fair value of its reporting units as of June 30, 2021. These fair value estimates primarily relied on a market approach, utilizing comparable market transactions, forecasted sales prices, and negotiations with prospective buyers. These estimates are considered to be a Level 3 measurement within the fair value hierarchy, and are subject to inherent uncertainties.

As a result of this assessment, during the three and six months ended June 30, 2021, the Company recognized a $7 million goodwill impairment charge reported in income (loss) from discontinued operations as the fair value of the remaining assets based on forecasted sales prices was less than the carrying value of the assets, including the related goodwill. The fair value was greater than the carrying value of the assets and related goodwill of all other reporting units, and as a result, no impairment loss was recognized.

Deferred Tax Asset Valuation Allowance

In conjunction with the Company establishing a plan during the year ended December 31, 2020 to dispose of all of its SHOP assets and classifying such assets as discontinued operations, the Company concluded it was more likely than not that it would no longer realize the future value of certain deferred tax assets generated by the net operating losses of its taxable REIT subsidiary entities. Accordingly, the Company recognized a deferred tax asset valuation allowance of $33 million as of December 31, 2020.

As of June 30, 2021, the Company had a deferred tax asset valuation allowance of $34 million.

NOTE 6.  Leases

Lease Income

The following table summarizes the Company’s lease income, excluding discontinued operations (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
Fixed income from operating leases	$	268,290	$	231,569	$	531,246	$	457,795
Variable income from operating leases	72,352		56,684		137,368		112,775
Interest income from direct financing leases	2,180		2,150		4,343		5,419

Direct Financing Leases

Net investment in DFLs consists of the following (dollars in thousands):

	June 30, 2021		December 31, 2020
Present value of minimum lease payments receivable	$	5,579	$	9,804
Present value of estimated residual value	44,706		44,706
Less deferred selling profits	(5,579)		(9,804)
Net investment in direct financing leases	$	44,706	$	44,706

Direct Financing Lease Internal Ratings

At June 30, 2021, the Company had one hospital under a DFL with a carrying amount of $45 million and an internal rating of “performing”.

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2020 Direct Financing Lease Sale

During the first quarter of 2020, the Company sold a hospital under a DFL for $82 million and recognized a gain on sale of $42 million, which is included in other income (expense), net.

COVID-19 Rent Deferrals

During the second and third quarters of 2020, the Company agreed to defer rent from certain tenants in the medical office segment that were impacted by COVID-19, with the requirement that all deferred rent be repaid by the end of 2020. Under this program, through June 30, 2020, approximately $6 million of rent was deferred for the medical office segment, all of which had been collected as of December 31, 2020.

Additionally, through June 30, 2020, the Company granted approximately $1 million of rent deferrals to certain tenants in the life science segment that were impacted by COVID-19, all of which had been collected as of December 31, 2020.

No such deferrals were granted during the three and six months ended June 30, 2021.

The rent deferrals granted do not impact the pattern of revenue recognition or amount of revenue recognized (refer to Note 2 for additional information).

NOTE 7.  Loans Receivable

The following table summarizes the Company’s loans receivable (in thousands):

	June 30, 2021		December 31, 2020
Secured loans(1)	$	416,729	$	161,530
Mezzanine and other	22,943		44,347
Unamortized discounts, fees, and costs	(6,398)		(222)
Reserve for loan losses	(4,198)		(10,280)
Loans receivable, net	$	429,076	$	195,375

_______________________________________

(1)At June 30, 2021, the Company had $61 million remaining of commitments to fund senior housing redevelopment and capital expenditure projects. At December 31, 2020, the Company had $11 million remaining of commitments to fund senior housing redevelopment and capital expenditure projects.

SHOP Seller Financing

In conjunction with the sale of 32 SHOP facilities in the Sunrise Senior Housing Portfolio for $664 million in January 2021 (see Note 5), the Company provided the buyer with initial financing of $410 million. The remainder of the sales price was received in cash at the time of sale. Additionally, the Company agreed to provide up to $92 million of additional financing for capital expenditures (up to 65% of the estimated cost of capital expenditures). The additional financing was subsequently reduced to $56 million in conjunction with the principal repayments discussed below, none of which had been funded as of June 30, 2021. The initial and additional financing is secured by the buyer's equity ownership in each property.

In conjunction with the sale of 16 additional SHOP facilities for $230 million in January 2021 (see Note 5), the Company provided the buyer with financing of $150 million. The remainder of the sales price was received in cash at the time of sale. The financing is secured by the buyer's equity ownership in each property.

In June 2021, the Company received principal repayments of $246 million on the initial financing provided in conjunction with the sale of the Sunrise Senior Housing Portfolio in January 2021. The Company accelerated recognition of $7 million of the related mark-to-market discount, which is included in interest income in the Consolidated Statements of Operations.

In December 2020, in conjunction with the sale of 4 of the 12 SHOP facilities in the Atria SHOP Portfolio for $94 million (see Note 5), the Company provided the buyer with financing of $61 million. The remainder of the sales price was received in cash at the time of sale. The financing is secured by the buyer's equity ownership in each of the four properties.

19

During the first quarter of 2021, the Company reduced the consideration and reported gain on sales of real estate and recognized a mark-to-market discount of $16 million for certain transactions with seller financing. The Company’s discount is based on the difference between the stated interest rates (ranging from 3.50% to 4.50%) and corresponding prevailing market rates of approximately 5.25% as of the transaction dates. The discount is recognized as interest income over the term of the discounted loans (ranging from one to three years) using the effective interest rate method. During the three and six months ended June 30, 2021, the Company recognized $9 million and $10 million, respectively, of non-cash interest income related to the amortization of its mark-to-market discounts, of which $7 million was recognized as a result of the accelerated recognition discussed above related to the Sunrise Senior Housing Portfolio. The Company did not recognize any non-cash interest income associated with seller financing notes receivable during the three and six months ended June 30, 2020.

2021 Other Loans Receivable Transactions

The Company classifies a loan receivable as held for sale when management no longer has the intent and ability to hold the loan receivable for the foreseeable future or until maturity. If a loan receivable is classified as held for sale, previously recorded reserves for loan losses are reversed and the loan is reported at the lower of amortized cost or fair value. At June 30, 2021, two loans receivable with a total amortized cost of $64 million were classified as held for sale (see Note 5). Upon the transfer of these two loans to held for sale, the carrying value was decreased by $11 million to estimated fair value of $53 million, $8 million of which was previously recognized as a reserve for loan losses. As a result, a $3 million net loss was recognized in impairments and loan loss reserves (recoveries), net during the three and six months ended June 30, 2021.

These fair value estimates were made for each individual loan classified as held for sale and primarily relied on a market approach, utilizing comparable market transactions, forecasted sales prices, and negotiations with prospective buyers. These estimates are considered to be a Level 3 measurement within the fair value hierarchy, and are subject to inherent uncertainties.

In April 2021, the Company sold two mezzanine loans as part of the Discovery SHOP Portfolio disposition (see Note 5), resulting in no gain or loss on sale of the mezzanine loans.

In May 2021, the Company received a $10 million principal repayment related to one of its secured loans.

In July 2021, the Company received repayment of the outstanding balance of an $8 million secured loan.

2020 Other Loans Receivable Transactions

For certain residents that qualify, CCRCs may offer to lend residents the necessary funds to satisfy the entrance fee requirements so that they are able to move into a community while still continuing the process of selling their previous home. The loans are due upon sale of the previous residence. Upon completing the CCRC Acquisition (see Note 3) in January 2020, the Company began consolidating 13 CCRCs, which held approximately $30 million of such notes receivable from various community residents at the time of acquisition. At June 30, 2021 and December 31, 2020, the Company held $22 million and $23 million of such notes receivable, respectively, which are included in mezzanine and other in the table above.

In November 2020, the Company sold one mezzanine loan with a $10 million principal balance for $8 million, resulting in a $2 million loss recognized in impairments and loan loss reserves (recoveries), net.

In December 2020, the Company sold one secured loan with a $115 million principal balance for $109 million, resulting in a $6 million loss recognized in impairments and loan loss reserves (recoveries), net.

Loans Receivable Internal Ratings

In connection with the Company’s quarterly review process or upon the occurrence of a significant event, loans receivable are reviewed and assigned an internal rating of Performing, Watch List, or Workout. Loans that are deemed Performing meet all present contractual obligations, and collection and timing of all amounts owed is reasonably assured. Watch List Loans are defined as loans that do not meet the definition of Performing or Workout. Workout Loans are defined as loans in which the Company has determined, based on current information and events, that: (i) it is probable it will be unable to collect all amounts due according to the contractual terms of the agreement, (ii) the borrower is delinquent on making payments under the contractual terms of the agreement, and (iii) the Company has commenced action or anticipates pursuing action in the near term to seek recovery of its investment.

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The following table summarizes, by year of origination, the Company’s internal ratings for loans receivable, net of unamortized discounts, fees, and costs and reserves for loan losses, as of June 30, 2021 (dollars in thousands):

Investment Type	Year of Origination												Total
	2021		2020		2019		2018		2017		Prior
Secured loans
Risk rating:
Performing loans	$	307,375	$	89,315	$	9,458	$	—	$	—	$	—	$	406,148
Watch list loans	—		—		—		—		—		—		—
Workout loans	—		—		—		—		—		—		—
Total secured loans	$	307,375	$	89,315	$	9,458	$	—	$	—	$	—	$	406,148
Mezzanine and other
Risk rating:
Performing loans	$	19,324	$	3,492	$	112	$	—	$	—	$	—	$	22,928
Watch list loans	—		—		—		—		—		—		—
Workout loans	—		—		—		—		—		—		—
Total mezzanine and other	$	19,324	$	3,492	$	112	$	—	$	—	$	—	$	22,928

Reserve for Loan Losses

The Company evaluates the liquidity and creditworthiness of its borrowers on a quarterly basis. The Company’s evaluation considers industry and economic conditions, individual and portfolio property performance, credit enhancements, liquidity, and other factors. The Company’s borrowers furnish property, portfolio, and guarantor/operator-level financial statements, among other information, on a monthly or quarterly basis, which the Company utilizes to calculate the debt service coverages used in its assessment of internal ratings, which is a primary credit quality indicator. Debt service coverage information is evaluated together with other property, portfolio, and operator performance information, including revenue, expense, NOI, occupancy, rental rates, capital expenditures, and EBITDA (defined as earnings before interest, tax, and depreciation and amortization), along with other liquidity measures.

In its assessment of current expected credit losses for loans receivable and unfunded loan commitments, the Company utilizes past payment history of its borrowers, current economic conditions, and forecasted economic conditions through the maturity date of each loan to estimate a probability of default and a resulting loss for each loan receivable. Future economic conditions are based primarily on near-term economic forecasts from the Federal Reserve and reasonable assumptions for long-term economic trends.

The following table summarizes the Company’s reserve for loan losses (in thousands):

	June 30, 2021						December 31, 2020
	Secured Loans		Mezzanine and Other		Total		Secured Loans		Mezzanine and Other		Total
Reserve for loan losses, beginning of period	$	3,152	$	7,128	$	10,280	$	—	$	—	$	—
Cumulative-effect of adopting of ASU 2016-13 to beginning retained earnings	—		—		—		513		907		1,420
Expected loan losses related to loans sold(1)	—		(675)		(675)		(259)		(8,135)		(8,394)
Expected loan losses related to loans transferred to held for sale(2)	(498)		(7,340)		(7,838)		—		—		—
Provision for expected loan losses	1,529		902		2,431		2,898		14,356		17,254
Reserve for loan losses, end of period	$	4,183	$	15	$	4,198	$	3,152	$	7,128	$	10,280

_______________________________________

(1)Includes two loans sold during the six months ended June 30, 2021 and three loans sold during the year ended December 31, 2020.

(2)Includes two loans held for sale at June 30, 2021.

Additionally, at June 30, 2021 and December 31, 2020, a liability of $0.2 million and $1 million, respectively, related to expected credit losses for unfunded loan commitments was included in accounts payable, accrued liabilities, and other liabilities.

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Credit loss expenses and recoveries are recorded in impairments and loan loss reserves (recoveries), net. During the three months ended June 30, 2021 and 2020, the net credit loss expense was $1 million and $5 million, respectively. During the six months ended June 30, 2021 and 2020, the net credit loss expense was $4 million and $13 million, respectively. The change in the reserve for expected loan losses during the three and six months ended June 30, 2021 is primarily due to the following: (i) principal repayments on loans receivable, (ii) transfers of loans receivable held for investment to loans receivable held for sale, (iii) the sale of two mezzanine loans as part of the Discovery SHOP Portfolio disposition (see Note 5), and (iv) a more positive economic outlook on COVID-19.

NOTE 8.  Investments in and Advances to Unconsolidated Joint Ventures

The Company owns interests in the following entities that are accounted for under the equity method, excluding investments classified as discontinued operations (dollars in thousands): 

				Carrying Amount
				June 30,		December 31,
Entity(1)(2)	Segment	Property Count(3)	Ownership %(3)	2021		2020
SWF SH JV	Other	19	54	$	352,368	$	357,581
Life Science JV	Life science	1	49	24,505		24,879
Medical Office JVs(4)	Medical office	3	20 - 67	9,501		9,673
CCRC JV(5)	CCRC	—	—	2,041		1,581
Other JVs(6)	Other	—	—	—		9,157
				$	388,415	$	402,871

_______________________________________

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

(2)Excludes the Otay Ranch JV (90% ownership percentage), which is classified as discontinued operations and had an aggregate carrying value of $6 million at December 31, 2020 (see Note 5). In April 2021, the SHOP property in the Otay Ranch JV was sold, resulting in the Company’s share of proceeds of $32 million and a gain on sale of $5 million recognized in equity income (loss) from unconsolidated joint ventures within income (loss) from discontinued operations.

(3)Property count and ownership percentage are as of June 30, 2021.

(4)Includes three unconsolidated medical office joint ventures in which the Company holds an ownership percentage as follows: (i) Ventures IV (20%); (ii) Ventures III (30%); and (iii) Suburban Properties, LLC (67%).

(5)See Note 3 for a discussion of the 2019 MTCA with Brookdale, including the acquisition of Brookdale’s interest in 13 of the 15 communities in the CCRC JV in January 2020. In May 2021, the two remaining CCRCs were sold for $38 million, $19 million of which represents the Company’s 49% interest, resulting in an immaterial gain on sale recorded within equity income (loss) from unconsolidated joint ventures.

(6)In April 2021, the Company sold its two preferred equity investments for their carrying value as part of the Discovery SHOP Portfolio disposition (see Note 5). At December 31, 2020, includes two unconsolidated other joint ventures in which the Company’s ownership percentage is as follows: (i) Discovery Naples JV (41%) and (ii) Discovery Sarasota JV (47%).

NOTE 9.  Intangibles

Intangible assets primarily consist of lease-up intangibles and above market tenant lease intangibles. The following table summarizes the Company’s intangible lease assets (dollars in thousands):

Intangible lease assets	June 30, 2021		December 31, 2020
Gross intangible lease assets	$	794,423	$	761,328
Accumulated depreciation and amortization	(282,811)		(241,411)
Intangible assets, net(1)	$	511,612	$	519,917
Weighted average remaining amortization period in years	6		5

_______________________________________

(1)Excludes intangible assets reported in assets held for sale and discontinued operations, net of $7 million and $25 million as of June 30, 2021 and December 31, 2020, respectively.

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Intangible liabilities consist of below market lease intangibles. The following table summarizes the Company’s intangible lease liabilities (dollars in thousands):

Intangible lease liabilities	June 30, 2021		December 31, 2020
Gross intangible lease liabilities	$	197,623	$	194,565
Accumulated depreciation and amortization	(58,507)		(50,366)
Intangible liabilities, net	$	139,116	$	144,199
Weighted average remaining amortization period in years	8		8

During the six months ended June 30, 2021, in conjunction with the Company’s acquisitions of real estate, the Company acquired intangible assets of $44 million and intangible liabilities of $6 million. The intangible assets and liabilities acquired had a weighted average amortization period at acquisition of 9 years and 7 years, respectively.

During the year ended December 31, 2020, in conjunction with the Company’s acquisitions of real estate, the Company acquired intangible assets of $352 million and intangible liabilities of $83 million. The intangible assets and intangible liabilities acquired had a weighted average amortization period at acquisition of 7 years and 9 years, respectively.

NOTE 10.  Debt

Bank Line of Credit and Term Loan

On May 23, 2019, the Company executed a $2.5 billion unsecured revolving line of credit facility (the “Revolving Facility”), which matures on May 23, 2023 and contains two six-month extension options, subject to certain customary conditions. Borrowings under the Revolving Facility accrue interest at LIBOR plus a margin that depends on credit ratings of the Company’s senior unsecured long-term debt. The Company pays a facility fee on the entire revolving commitment that depends on its credit ratings. Based on those credit ratings at June 30, 2021, the margin on the Revolving Facility was 0.83% and the facility fee was 0.15%. At June 30, 2021 and December 31, 2020, the Company had no balance outstanding under the Revolving Facility.

In May 2019, the Company also entered into a $250 million unsecured term loan facility, which the Company fully drew down during the second quarter of 2019 (the “2019 Term Loan” and, together with the Revolving Facility, the “Facilities”). The 2019 Term Loan matures on May 23, 2024. Based on credit ratings for the Company’s senior unsecured long-term debt at June 30, 2021, the 2019 Term Loan accrues interest at a rate of LIBOR plus 0.90%, with a weighted average effective interest rate of 1.09%.

In July 2021, the Company repaid the $250 million outstanding balance on the 2019 Term Loan.

The Facilities include a feature that allows the Company to increase the borrowing capacity by an aggregate amount of up to $750 million, subject to securing additional commitments. The Facilities also contain certain financial restrictions and other customary requirements, including cross-default provisions to other indebtedness. Among other things, these covenants, using terms defined in the agreements: (i) limit the ratio of Enterprise Total Indebtedness to Enterprise Gross Asset Value to 60%; (ii) limit the ratio of Enterprise Secured Debt to Enterprise Gross Asset Value to 40%; (iii) limit the ratio of Enterprise Unsecured Debt to Enterprise Unencumbered Asset Value to 60%; (iv) require a minimum Fixed Charge Coverage ratio of 1.5 times; and (v) require a minimum Consolidated Tangible Net Worth of $7.0 billion. At June 30, 2021, the Company believes it was in compliance with each of these restrictions and requirements of the Facilities.

Commercial Paper Program

In September 2019, the Company established an unsecured commercial paper program (the “Commercial Paper Program”). Under the terms of the Commercial Paper Program, the Company may issue, from time to time, unsecured short-term debt securities with varying maturities. Amounts available under the Commercial Paper Program may be borrowed, repaid, and re-borrowed from time to time. In April 2021, the Company increased the maximum aggregate face or principal amount that can be outstanding at any one time from $1.0 billion to $1.25 billion. Amounts borrowed under the Commercial Paper Program will be sold on terms that are customary for the U.S. commercial paper market and will be at least equal in right of payment with all of the Company’s other unsecured and unsubordinated indebtedness. The Company uses its Revolving Facility as a liquidity backstop for the repayment of unsecured short-term debt securities issued under the Commercial Paper Program. At June 30, 2021, the Company had $720 million of securities outstanding under the Commercial Paper Program, with original maturities of approximately one month and a weighted average interest rate of 0.24%. At December 31, 2020, the Company had $130 million of securities outstanding under the Commercial Paper Program, with original maturities of approximately one month and a weighted average interest rate of 0.30%.

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Senior Unsecured Notes

At June 30, 2021, the Company had senior unsecured notes outstanding with an aggregate principal balance of $3.75 billion. The senior unsecured notes contain certain covenants including limitations on debt, maintenance of unencumbered assets, cross-acceleration provisions and other customary terms. The Company believes it was in compliance with these covenants at June 30, 2021.

The following table summarizes the Company’s senior unsecured notes repurchases and redemptions during the six months ended June 30, 2021 (dollars in thousands):

Payoff Date	Amount		Coupon Rate		Maturity Year
May 19, 2021(1)	$	251,806	3.40	%	2025
May 19, 2021(1)	298,194		4.00	%	2025
February 26, 2021(2)	188,000		4.25	%	2023
February 26, 2021(2)	149,000		4.20	%	2024
February 26, 2021(2)	331,000		3.88	%	2024
January 28, 2021(2)	112,000		4.25	%	2023
January 28, 2021(2)	201,000		4.20	%	2024
January 28, 2021(2)	469,000		3.88	%	2024

_______________________________________

(1)Upon repurchasing a portion of the 3.40% and 4.00% senior unsecured notes due 2025, the Company recognized a $61 million loss on debt extinguishment.

(2)Upon completing the repurchases and redemptions of all outstanding 4.25%, 4.20%, and 3.88% senior unsecured notes due 2023 and 2024, the Company recognized a $164 million loss on debt extinguishment.

There were no senior unsecured notes issuances during the six months ended June 30, 2021.

In July 2021, the Company completed its inaugural green bond offering. The net proceeds from the offering were allocated to the Company’s previous acquisition of Cambridge Discovery Park, completed in December 2020 (see Note 4), which has received LEED Gold certification and qualifies as an eligible green project. However, the Company may choose to allocate or re-allocate net proceeds to one more other eligible green projects. The senior unsecured notes were issued and the proceeds were received on July 12, 2021 as follows (dollars in thousands):

Issue Date	Amount		Coupon Rate		Maturity Year
July 12, 2021	$	450,000	1.35	%	2027

The following table summarizes the Company’s senior unsecured notes repurchases and redemptions during the year ended December 31, 2020 (dollars in thousands):

Payoff Date	Amount		Coupon Rate		Maturity Year
July 9, 2020(1)	$	300,000	3.15	%	2022
June 24, 2020(2)	250,000		4.25	%	2023

_______________________________________

(1)Upon completing the redemption of all outstanding 3.15% senior unsecured notes due 2022, the Company recognized an $18 million loss on debt extinguishment.

(2)Upon repurchasing a portion of the 4.25% senior unsecured notes due 2023, the Company recognized a $26 million loss on debt extinguishment.

The following table summarizes the Company’s senior unsecured notes issuances during the year ended December 31, 2020 (dollars in thousands):

Issue Date	Amount		Coupon Rate		Maturity Year
June 23, 2020	$	600,000	2.88	%	2031

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Mortgage Debt

At June 30, 2021 and December 31, 2020, the Company had $356 million and $217 million, respectively, in aggregate principal of mortgage debt outstanding (excluding mortgage debt on assets held for sale and discontinued operations), which was secured by 19 and 6 healthcare facilities, respectively, with an aggregate carrying value of $845 million and $517 million, respectively.

Mortgage debt generally requires monthly principal and interest payments, is collateralized by real estate assets, and is non-recourse. Mortgage debt typically restricts transfer of the encumbered assets, prohibits additional liens, restricts prepayment, requires payment of real estate taxes, requires maintenance of the assets in good condition, requires insurance on the assets, and includes conditions to obtain lender consent to enter into or terminate material leases. Some of the mortgage debt may require tenants or operators to maintain compliance with the applicable leases or operating agreements of such real estate assets.

During the three and six months ended June 30, 2021, the Company made aggregate principal repayments of mortgage debt of $1 million and $3 million, respectively (excluding mortgage debt on assets held for sale and discontinued operations). During the three and six months ended June 30, 2020, the Company made aggregate principal repayments of mortgage debt of $1 million and $2 million, respectively (excluding mortgage debt on assets held for sale and discontinued operations).

In April 2021, in conjunction with the acquisition of the MOB Portfolio, the Company issued $142 million of secured mortgage debt (see Note 4) with a weighted average effective interest rate of 2.60% that matures in May 2026.

Debt Maturities

The following table summarizes the Company’s stated debt maturities and scheduled principal repayments at June 30, 2021 (in thousands):

							Senior Unsecured Notes(3)				Mortgage Debt(4)
Year	Bank Line of Credit		Commercial Paper(1)		Term Loan(2)		Amount		Interest Rate		Amount		Interest Rate		Total
2021	$	—	$	—	$	—	$	—	—	%	$	10,159	4.86	%	$	10,159
2022	—		—		—		—		—	%	4,843		3.80	%	4,843
2023	—		720,000		—		—		—	%	89,874		3.80	%	809,874
2024	—		—		250,000		—		—	%	3,050		3.80	%	253,050
2025	—		—		—		800,000		3.93	%	3,209		3.80	%	803,209
Thereafter	—		—		—		2,950,000		3.68	%	244,889		3.07	%	3,194,889
	—		720,000		250,000		3,750,000				356,024				5,076,024
(Discounts), premium and debt costs, net	—		—		(697)		(39,028)				2,077				(37,648)
	—		720,000		249,303		3,710,972				358,101				5,038,376
Debt on assets held for sale and discontinued operations(5)	—		—		—		—				37,069				37,069
	$	—	$	720,000	$	249,303	$	3,710,972			$	395,170			$	5,075,445

_______________________________________

(1)Commercial Paper Program borrowings are backstopped by the Revolving Facility. As such, the Company calculates the weighted average remaining term of its Commercial Paper Program borrowings using the maturity date of the Revolving Facility.

(2)As of June 30, 2021, the Company had $250 million outstanding on the 2019 Term Loan, which was scheduled to mature on May 23, 2024. In July 2021, the Company repaid the $250 million outstanding balance on the 2019 Term Loan.

(3)Effective interest rates on the senior unsecured notes range from 3.10% to 6.91% with a weighted average effective interest rate of 3.75% and a weighted average maturity of 8 years. In July 2021, the Company issued $450 million aggregate principal amount of 1.35% senior unsecured notes due 2027 in its inaugural green bond offering.

(4)Excluding mortgage debt on assets classified as held for sale and discontinued operations, effective interest rates on the mortgage debt range from 2.42% to 5.91% with a weighted average effective interest rate of 3.28% and a weighted average maturity of 4 years.

(5)Represents mortgage debt on an asset held for sale reported in discontinued operations with an interest rate of 3.87% that matures in 2025.

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NOTE 11.  Commitments and Contingencies

Legal Proceedings

From time to time, the Company is a party to legal proceedings, lawsuits and other claims that arise in the ordinary course of the Company’s business. The Company is not aware of any legal proceedings or claims that it believes may have, individually or taken together, a material adverse effect on the Company’s financial condition, results of operations, or cash flows. The Company’s policy is to expense legal costs as they are incurred.

DownREITs

In connection with the formation of certain limited liability companies (“DownREITs”), members may contribute appreciated real estate to a DownREIT in exchange for DownREIT units. These contributions are generally tax-deferred, so that the pre-contribution gain related to the property is not taxed to the member. However, if a contributed property is later sold by the DownREIT, the unamortized pre-contribution gain that exists at the date of sale is specifically allocated and taxed to the contributing members. In many of the DownREITs, the Company has entered into indemnification agreements with those members who contributed appreciated property into the DownREIT. Under these indemnification agreements, if any of the appreciated real estate contributed by the members is sold by the DownREIT in a taxable transaction within a specified number of years, the Company will reimburse the affected members for the federal and state income taxes associated with the pre-contribution gain that is specially allocated to the affected member under the Code (“make-whole payments”). These make-whole payments include a tax gross-up provision. These indemnification agreements have expirations terms that range through 2039 on a total of 29 properties.

NOTE 12.  Equity

Dividends

On July 29, 2021, the Company announced that its Board of Directors declared a quarterly cash dividend of $0.30 per share. The common stock cash dividend will be paid on August 20, 2021 to stockholders of record as of the close of business on August 9, 2021.

During the three months ended June 30, 2021 and 2020, the Company declared and paid common stock cash dividends of $0.30 per share and $0.37 per share, respectively. During the six months ended June 30, 2021 and 2020, the Company declared and paid common stock cash dividends of $0.60 and $0.74 per share, respectively.

At-The-Market Equity Offering Program

The Company established an at-the-market equity offering program (“ATM Program”), which was most recently amended in May 2021 (as amended, the “2020 ATM Program”) to increase the size of the program from $1.25 billion to $1.50 billion, pursuant to which shares of common stock having an aggregate gross sales price of up to $1.50 billion may be sold (i) by the Company through a consortium of banks acting as sales agents or directly to the banks acting as principals or (ii) by a consortium of banks acting as forward sellers on behalf of any forward purchasers pursuant to a forward sale agreement. The use of a forward sale agreement allows the Company to lock in a share price on the sale of shares at the time the forward sales agreement is effective, but defer receiving the proceeds from the sale of shares until a later date.

ATM forward sale agreements generally have a one year term. At any time during the term, the Company may settle a forward sale by delivery of physical shares of common stock to the forward seller or, at the Company’s election, in cash or net shares. The forward sale price the Company expects to receive upon settlement of outstanding forward contracts will be the initial forward price established upon the effective date, subject to adjustments for: (i) accrued interest, (ii) the forward purchasers’ stock borrowing costs, and (iii) certain fixed price reductions during the term of the forward sale agreement.

At June 30, 2021, $1.50 billion of the Company’s common stock remained available for sale under the 2020 ATM Program.

ATM Forward Contracts

During the three and six months ended June 30, 2021 and the three months ended June 30, 2020, the Company did not utilize the forward provisions under any ATM Program. During the six months ended June 30, 2020, the Company utilized the forward provisions under a previous ATM Program established in 2019 (the “2019 ATM Program”) to allow for the sale of up to an aggregate of 2.0 million shares of its common stock at an initial weighted average net price of $35.23 per share, after commissions.

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During the three months ended March 31, 2020, the Company settled all 16.8 million shares previously outstanding under ATM forward contracts at a weighted average net price of $31.38 per share, after commissions, resulting in net proceeds of $528 million. No shares were settled subsequent to March 31, 2020 and therefore, at June 30, 2021 and June 30, 2020, no shares remained outstanding under ATM forward contracts.

ATM Direct Issuances

During the three and six months ended June 30, 2021 and 2020, no shares of common stock were issued under the 2020 ATM Program or 2019 ATM Program.

Forward Equity Offerings

November 2019 Offering. In November 2019, the Company entered into a forward equity sales agreement (the "2019 forward equity sales agreement") to sell an aggregate of 15.6 million shares of its common stock (including shares sold through the exercise of underwriters’ options) at an initial net price of $34.46 per share, after underwriting discounts and commissions, which was subject to adjustments for: (i) accrued interest, (ii) the forward purchasers’ stock borrowing costs, and (iii) certain fixed price reductions during the term of the agreement. During the three months ended March 31, 2020, the Company settled all 15.6 million shares under the 2019 forward equity sales agreement at a weighted average net price of $34.18 per share, resulting in net proceeds of $534 million (total net proceeds of $1.06 billion, when aggregated with the net proceeds from settling ATM forward contracts, as discussed above). Therefore, at June 30, 2021 and June 30, 2020, no shares remained outstanding under the 2019 forward equity sales agreement.

Accumulated Other Comprehensive Income (Loss)

The following table summarizes the Company’s accumulated other comprehensive income (loss) (in thousands):

	June 30, 2021		December 31, 2020
Unrealized gains (losses) on derivatives, net	$	—	$	(81)
Supplemental Executive Retirement Plan minimum liability	(3,389)		(3,604)
Total accumulated other comprehensive income (loss)	$	(3,389)	$	(3,685)

NOTE 13.  Earnings Per Common Share

Basic income (loss) per common share (“EPS”) is computed based on the weighted average number of common shares outstanding. Diluted income (loss) per common share is computed based on the weighted average number of common shares outstanding plus the impact of forward equity sales agreements using the treasury stock method and common shares issuable from the assumed conversion of DownREIT units, stock options, certain performance restricted stock units, and unvested restricted stock units. Only those instruments having a dilutive impact on the Company’s basic income (loss) per share are included in diluted income (loss) per share during the periods presented.

Restricted stock and certain performance restricted stock units are considered participating securities, because dividend payments are not forfeited even if the underlying award does not vest, and require use of the two-class method when computing basic and diluted earnings per share.

Refer to Note 12 for a discussion of the sale of shares under and settlement of forward sales agreements during the periods presented. The Company considered the potential dilution resulting from the forward agreements to the calculation of earnings per share. At inception, the agreements do not have an effect on the computation of basic EPS as no shares are delivered until settlement. However, the Company uses the treasury stock method to calculate the dilution, if any, resulting from the forward sales agreements during the period of time prior to settlement. The aggregate effect on the Company’s diluted weighted-average common shares for the six months ended June 30, 2021 and 2020 was zero and 0.8 million weighted-average incremental shares, respectively, from the forward equity sales agreements. 

27

The following table illustrates the computation of basic and diluted earnings per share (in thousands, except per share amounts):

	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
Numerator
Income (loss) from continuing operations	$	168,065	$	60,341	$	47,480	$	207,473
Noncontrolling interests' share in continuing operations	(3,535)		(3,486)		(6,841)		(6,949)
Income (loss) from continuing operations attributable to Healthpeak Properties, Inc.	164,530		56,855		40,639		200,524
Less: Participating securities' share in continuing operations	(287)		(375)		(2,732)		(1,800)
Income (loss) from continuing operations applicable to common shares	164,243		56,480		37,907		198,724
Income (loss) from discontinued operations	113,960		(5,292)		383,968		130,116
Noncontrolling interests' share in discontinued operations	(2,210)		(57)		(2,539)		(54)
Net income (loss) applicable to common shares	$	275,993	$	51,131	$	419,336	$	328,786
Numerator - Dilutive
Net income (loss) applicable to common shares	$	275,993	$	51,131	$	419,336	$	328,786
Add: distributions on dilutive convertible units and other	1,540		—		—		—
Dilutive net income (loss) available to common shares	$	277,533	$	51,131	$	419,336	$	328,786
Denominator
Basic weighted average shares outstanding	538,929		538,262		538,805		522,427
Dilutive potential common shares - equity awards(1)	264		255		276		263
Dilutive potential common shares - forward equity agreements(2)	—		—		—		808
Dilutive potential common shares - DownREIT conversions	5,501		—		—		—
Diluted weighted average common shares	544,694		538,517		539,081		523,498
Basic earnings (loss) per common share
Continuing operations	$	0.30	$	0.10	$	0.07	$	0.38
Discontinued operations	0.21		(0.01)		0.71		0.25
Net income (loss) applicable to common shares	$	0.51	$	0.09	$	0.78	$	0.63
Diluted earnings (loss) per common share
Continuing operations	$	0.30	$	0.10	$	0.07	$	0.38
Discontinued operations	0.21		(0.01)		0.71		0.25
Net income (loss) applicable to common shares	$	0.51	$	0.09	$	0.78	$	0.63

_______________________________________

(1)For all periods presented, represents the dilutive impact of 1 million outstanding equity awards (restricted stock units and stock options).

(2)For the three and six months ended June 30, 2021, forward sales agreements had no dilutive impact as all agreements were settled prior to the start of the period. For the six months ended June 30, 2020, represents the dilutive impact of 32 million shares that were settled during the six months then ended. For the three months ended June 30, 2020, forward sales agreements had no dilutive impact as all agreements were settled prior to the start of the period.

For the three months ended June 30, 2021, 6 million out of 7 million DownREIT shares were dilutive. For all other periods presented in the table above, all 7 million shares issuable upon conversion of DownREIT units were not included because they were anti-dilutive.

NOTE 14.  Segment Disclosures

The Company’s reportable segments, based on how its chief operating decision makers (“CODMs”) evaluates its business and allocates resources, are as follows: (i) life science, (ii) medical office, and (iii) CCRC. The Company has non-reportable segments that are comprised primarily of the Company’s interests in an unconsolidated senior housing joint venture 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 2020 Annual Report on Form 10-K filed with the SEC, as updated by Note 2 herein.

In December 2020, the Company’s senior housing triple-net and SHOP portfolios were classified as discontinued operations and are no longer reportable segments. See Notes 1 and 5 for further information.

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In December 2020, as a result of a change in how operating results are reported to the Company’s CODMs, the Company’s hospitals were reclassified from other non-reportable segments to the medical office segment and the Company’s one remaining unconsolidated investment in a senior housing joint venture was reclassified from the SHOP segment to other non-reportable segments.

All prior period segment information has been recast to conform to the current period presentation.

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 that 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. Additionally, management believes that net income (loss) is the most directly comparable GAAP measure to NOI and Adjusted NOI. NOI and Adjusted NOI should not be viewed as alternative measures of operating performance to net income (loss) as defined by GAAP since they do not reflect various excluded items.

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, loans receivable, marketable equity securities, other assets, real estate assets held for sale and discontinued operations, and liabilities related to assets held for sale.

29

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

For the three months ended June 30, 2021:

	Life Science		Medical Office		CCRC		Other Non-reportable		Corporate Non-segment		Total
Total revenues	$	177,527	$	165,295	$	117,308	$	16,108	$	—	$	476,238
Government grant income(1)	—		—		87		—		—		87
Less: Interest income	—		—		—		(16,108)		—		(16,108)
Healthpeak’s share of unconsolidated joint venture total revenues	1,412		710		2,415		16,740		—		21,277
Healthpeak’s share of unconsolidated joint venture government grant income	—		—		—		583		—		583
Noncontrolling interests’ share of consolidated joint venture total revenues	(75)		(8,825)		—		—		—		(8,900)
Operating expenses	(40,724)		(54,648)		(94,760)		—		—		(190,132)
Healthpeak’s share of unconsolidated joint venture operating expenses	(428)		(317)		(2,208)		(12,451)		—		(15,404)
Noncontrolling interests’ share of consolidated joint venture operating expenses	21		2,552		—		—		—		2,573
Adjustments to NOI(2)	(12,366)		(2,003)		1,226		(27)		—		(13,170)
Adjusted NOI	125,367		102,764		24,068		4,845		—		257,044
Plus: Adjustments to NOI(2)	12,366		2,003		(1,226)		27		—		13,170
Interest income	—		—		—		16,108		—		16,108
Interest expense	(48)		(786)		(1,924)		—		(35,923)		(38,681)
Depreciation and amortization	(76,955)		(63,371)		(31,133)		—		—		(171,459)
General and administrative	—		—		—		—		(24,088)		(24,088)
Transaction costs	21		35		(657)		(18)		—		(619)
Impairments and loan loss reserves	—		—		—		(931)		—		(931)
Gain (loss) on sales of real estate, net	—		175,238		—		—		—		175,238
Gain (loss) on debt extinguishments	—		—		—		—		(60,865)		(60,865)
Other income (expense), net	28		(175)		165		—		1,716		1,734
Less: Government grant income	—		—		(87)		—		—		(87)
Less: Healthpeak’s share of unconsolidated joint venture NOI	(984)		(393)		(207)		(4,872)		—		(6,456)
Plus: Noncontrolling interests’ share of consolidated joint venture NOI	54		6,273		—		—		—		6,327
Income (loss) before income taxes and equity income (loss) from unconsolidated joint ventures	59,849		221,588		(11,001)		15,159		(119,160)		166,435
Income tax benefit (expense)	—		—		—		—		763		763
Equity income (loss) from unconsolidated joint ventures	111		137		639		(20)		—		867
Income (loss) from continuing operations	59,960		221,725		(10,362)		15,139		(118,397)		168,065
Income (loss) from discontinued operations	—		—		—		—		113,960		113,960
Net income (loss)	$	59,960	$	221,725	$	(10,362)	$	15,139	$	(4,437)	$	282,025

_______________________________________

(1)Represents government grant income received under the CARES Act, which is recorded in other income (expense), net in the Consolidated Statements of Operations (see Note 2).

(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.

30

For the three months ended June 30, 2020:

	Life Science		Medical Office		CCRC		Other Non-reportable		Corporate Non-segment		Total
Total revenues	$	138,496	$	151,844	$	113,926	$	4,293	$	—	$	408,559
Government grant income(1)	—		—		11,871		—		—		11,871
Less: Interest income	—		—		—		(4,230)		—		(4,230)
Healthpeak’s share of unconsolidated joint venture total revenues	—		691		4,781		18,682		—		24,154
Healthpeak’s share of unconsolidated joint venture government grant income	—		—		534		270		—		804
Noncontrolling interests’ share of consolidated joint venture total revenues	(57)		(8,347)		—		—		—		(8,404)
Operating expenses	(34,205)		(49,355)		(94,248)		—		—		(177,808)
Healthpeak’s share of unconsolidated joint venture operating expenses	—		(276)		(4,826)		(13,681)		—		(18,783)
Noncontrolling interests’ share of consolidated joint venture operating expenses	18		2,507		—		—		—		2,525
Adjustments to NOI(2)	(2,779)		(465)		18		99		—		(3,127)
Adjusted NOI	101,473		96,599		32,056		5,433		—		235,561
Plus: Adjustments to NOI(2)	2,779		465		(18)		(99)		—		3,127
Interest income	—		—		—		4,230		—		4,230
Interest expense	(60)		(100)		(1,969)		—		(52,694)		(54,823)
Depreciation and amortization	(52,356)		(55,904)		(31,426)		(5)		—		(139,691)
General and administrative	—		—		—		—		(23,720)		(23,720)
Transaction costs	(1)		—		(368)		(4)		—		(373)
Impairments and loan loss reserves	—		(2,119)		—		(4,718)		—		(6,837)
Gain (loss) on sales of real estate, net	—		81,284		—		—		—		81,284
Gain (loss) on debt extinguishments	—		—		—		—		(25,824)		(25,824)
Other income (expense), net	—		—		14,142		—		3,273		17,415
Less: Government grant income	—		—		(11,871)		—		—		(11,871)
Less: Healthpeak’s share of unconsolidated joint venture NOI	—		(415)		(489)		(5,271)		—		(6,175)
Plus: Noncontrolling interests’ share of consolidated joint venture NOI	39		5,840		—		—		—		5,879
Income (loss) before income taxes and equity income (loss) from unconsolidated joint ventures	51,874		125,650		57		(434)		(98,965)		78,182
Income tax benefit (expense)	—		—		—		—		(106)		(106)
Equity income (loss) from unconsolidated joint ventures	—		210		401		(18,346)		—		(17,735)
Income (loss) from continuing operations	51,874		125,860		458		(18,780)		(99,071)		60,341
Income (loss) from discontinued operations	—		—		—		—		(5,292)		(5,292)
Net income (loss)	$	51,874	$	125,860	$	458	$	(18,780)	$	(104,363)	$	55,049

______________________________________________________________________________

(1)Represents government grant income received under the CARES Act, which is recorded in other income (expense), net in the Consolidated Statements of Operations (see Note 2).

(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.

31

For the six months ended June 30, 2021:

	Life Science		Medical Office		CCRC		Other Non-reportable		Corporate Non-segment		Total
Total revenues	$	347,461	$	325,496	$	233,436	$	25,121	$	—	$	931,514
Government grant income(1)	—		—		1,397		—		—		1,397
Less: Interest income	—		—		—		(25,121)		—		(25,121)
Healthpeak’s share of unconsolidated joint venture total revenues	2,749		1,425		6,903		33,493		—		44,570
Healthpeak’s share of unconsolidated joint venture government grant income	—		—		199		810		—		1,009
Noncontrolling interests’ share of consolidated joint venture total revenues	(140)		(17,751)		—		—		—		(17,891)
Operating expenses	(80,185)		(105,769)		(185,939)		—		—		(371,893)
Healthpeak’s share of unconsolidated joint venture operating expenses	(853)		(611)		(6,953)		(25,046)		—		(33,463)
Noncontrolling interests’ share of consolidated joint venture operating expenses	41		5,056		—		—		—		5,097
Adjustments to NOI(2)	(24,176)		(3,926)		1,246		85		—		(26,771)
Adjusted NOI	244,897		203,920		50,289		9,342		—		508,448
Plus: Adjustments to NOI(2)	24,176		3,926		(1,246)		(85)		—		26,771
Interest income	—		—		—		25,121		—		25,121
Interest expense	(150)		(881)		(3,842)		—		(80,651)		(85,524)
Depreciation and amortization	(145,388)		(121,326)		(62,283)		—		—		(328,997)
General and administrative	—		—		—		—		(48,990)		(48,990)
Transaction costs	(11)		(295)		(1,090)		(21)		—		(1,417)
Impairments and loan loss reserves	—		—		—		(4,173)		—		(4,173)
Gain (loss) on sales of real estate, net	—		175,238		—		—		—		175,238
Gain (loss) on debt extinguishments	—		—		—		—		(225,157)		(225,157)
Other income (expense), net	33		(2,454)		2,341		482		3,532		3,934
Less: Government grant income	—		—		(1,397)		—		—		(1,397)
Less: Healthpeak’s share of unconsolidated joint venture NOI	(1,896)		(814)		(149)		(9,257)		—		(12,116)
Plus: Noncontrolling interests’ share of consolidated joint venture NOI	99		12,695		—		—		—		12,794
Income (loss) before income taxes and equity income (loss) from unconsolidated joint ventures	121,760		270,009		(17,377)		21,409		(351,266)		44,535
Income tax benefit (expense)	—		—		—		—		755		755
Equity income (loss) from unconsolidated joint ventures	18		328		639		1,205		—		2,190
Income (loss) from continuing operations	121,778		270,337		(16,738)		22,614		(350,511)		47,480
Income (loss) from discontinued operations	—		—		—		—		383,968		383,968
Net income (loss)	$	121,778	$	270,337	$	(16,738)	$	22,614	$	33,457	$	431,448

______________________________________________________________________________

(1)Represents government grant income received under the CARES Act, which is recorded in other income (expense), net in the Consolidated Statements of Operations (see Note 2).

(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.

32

For the six months ended June 30, 2020:

	Life Science		Medical Office		CCRC		Other Non-reportable		Corporate Non-segment		Total
Total revenues	$	267,379	$	308,485	$	205,706	$	8,043	$	—	$	789,613
Government grant income(1)	—		—		11,871		—		—		11,871
Less: Interest income	—		—		—		(7,918)		—		(7,918)
Healthpeak’s share of unconsolidated joint venture total revenues	—		1,386		26,428		38,876		—		66,690
Healthpeak’s share of unconsolidated joint venture government grant income	—		—		534		270		—		804
Noncontrolling interests’ share of consolidated joint venture total revenues	(109)		(16,987)		—		—		—		(17,096)
Operating expenses	(64,406)		(100,049)		(250,730)		—		—		(415,185)
Healthpeak’s share of unconsolidated joint venture operating expenses	—		(551)		(22,863)		(26,959)		—		(50,373)
Noncontrolling interests’ share of consolidated joint venture operating expenses	35		5,107		—		—		—		5,142
Adjustments to NOI(2)	(7,059)		(1,459)		91,579		51		—		83,112
Adjusted NOI	195,840		195,932		62,525		12,363		—		466,660
Plus: Adjustments to NOI(2)	7,059		1,459		(91,579)		(51)		—		(83,112)
Interest income	—		—		—		7,918		—		7,918
Interest expense	(122)		(203)		(3,273)		—		(106,916)		(110,514)
Depreciation and amortization	(102,567)		(110,571)		(51,655)		(10)		—		(264,803)
General and administrative	—		—		—		—		(46,069)		(46,069)
Transaction costs	(1)		—		(14,842)		(93)		—		(14,936)
Impairments and loan loss reserves	—		(4,825)		—		(13,119)		—		(17,944)
Gain (loss) on sales of real estate, net	—		83,393		—		(40)		—		83,353
Gain (loss) on debt extinguishments	—		—		—		—		(24,991)		(24,991)
Other income (expense), net	—		—		184,474		41,707		1,887		228,068
Less: Government grant income	—		—		(11,871)		—		—		(11,871)
Less: Healthpeak’s share of unconsolidated joint venture NOI	—		(835)		(4,099)		(12,187)		—		(17,121)
Plus: Noncontrolling interests’ share of consolidated joint venture NOI	74		11,880		—		—		—		11,954
Income (loss) before income taxes and equity income (loss) from unconsolidated joint ventures	100,283		176,230		69,680		36,488		(176,089)		206,592
Income tax benefit (expense)(3)	—		—		—		—		29,762		29,762
Equity income (loss) from unconsolidated joint ventures	—		407		(1,479)		(27,809)		—		(28,881)
Income (loss) from continuing operations	100,283		176,637		68,201		8,679		(146,327)		207,473
Income (loss) from discontinued operations	—		—		—		—		130,116		130,116
Net income (loss)	$	100,283	$	176,637	$	68,201	$	8,679	$	(16,211)	$	337,589

______________________________________________________________________________

(1)Represents government grant income received under the CARES Act, which is recorded in other income (expense), net in the Consolidated Statements of Operations (see Note 2).

(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 quarter 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.

33

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

	Three Months Ended June 30,				Six Months Ended June 30,
Segment	2021		2020		2021		2020
Life science	$	177,527	$	138,496	$	347,461	$	267,379
Medical office	165,295		151,844		325,496		308,485
CCRC	117,308		113,926		233,436		205,706
Other non-reportable	16,108		4,293		25,121		8,043
Total revenues	$	476,238	$	408,559	$	931,514	$	789,613

See Notes 3, 4, and 5 for significant transactions impacting the Company’s segment assets during the periods presented.

NOTE 15.  Supplemental Cash Flow Information

The following table provides supplemental cash flow information (in thousands):

	Six Months Ended June 30,
	2021		2020
Supplemental cash flow information:
Interest paid, net of capitalized interest	$	109,277	$	104,370
Income taxes paid (refunded)	4,026		164
Capitalized interest	10,867		13,680
Supplemental schedule of non-cash investing and financing activities:
Accrued construction costs	113,221		117,895
Vesting of restricted stock units and conversion of non-managing member units into common stock	900		4,703
Net noncash impact from the consolidation of previously unconsolidated joint ventures	—		323,138
Mortgages assumed with real estate acquisitions	—		215,335
Carrying value of mortgages assumed by buyer in real estate dispositions	106,632		—
Refundable entrance fees assumed with real estate acquisitions	—		307,954
Seller financing provided on disposition of real estate asset	559,745		12,480
ROU asset obtained in exchange for new lease liability related to operating leases	13,157		23,962

See Note 3 for a discussion of the impact of the 2019 MTCA with Brookdale on the Company’s consolidated balance sheets and statements of operations.

The following table summarizes certain cash flow information related to assets classified as discontinued operations (in thousands):

	Six Months Ended June 30,
	2021		2020
Depreciation and amortization of real estate, in-place lease, and other intangibles	$	—	$	102,961
Development, redevelopment, and other major improvements of real estate	4,569		17,816
Leasing costs, tenant improvements, and recurring capital expenditures	2,349		6,520

34

The following table summarizes cash, cash equivalents and restricted cash (in thousands):

	Six Months Ended June 30,
	2021		2020		2021		2020		2021		2020
	Continuing operations				Discontinued operations				Total
Beginning of period:
Cash and cash equivalents	$	44,226	$	80,398	$	53,085	$	63,834	$	97,311	$	144,232
Restricted cash	67,206		13,385		17,168		27,040		84,374		40,425
Cash, cash equivalents and restricted cash	$	111,432	$	93,783	$	70,253	$	90,874	$	181,685	$	184,657
End of period:
Cash and cash equivalents	$	96,923	$	672,078	$	17,354	$	58,879	$	114,277	$	730,957
Restricted cash	129,052		85,473		974		20,211		130,026		105,684
Cash, cash equivalents and restricted cash	$	225,975	$	757,551	$	18,328	$	79,090	$	244,303	$	836,641

NOTE 16.  Variable Interest Entities

Unconsolidated Variable Interest Entities

At June 30, 2021, the Company had investments in: (i) one unconsolidated VIE joint venture, (ii) marketable debt securities of one VIE, and (iii) one loan to a VIE borrower. At December 31, 2020, the Company had investments in: (i) two properties leased to a VIE tenant, (ii) four unconsolidated VIE joint ventures, (iii) marketable debt securities of one VIE, and (iv) one loan to a VIE borrower. The Company determined it is not the primary beneficiary of and therefore does not consolidate these VIEs because it does not have the ability to control the activities that most significantly impact their economic performance. Except for the Company’s equity interest in the unconsolidated joint ventures (the LLC investment discussed below), it has no formal involvement in these VIEs beyond its investments.

VIE Tenant. As of December 31, 2020, the Company leased two properties to one tenant that was identified as a VIE (the “VIE tenant”). The VIE tenant was a “thinly capitalized” entity that relied on the operating cash flows generated from the senior housing facilities to pay operating expenses, including the rent obligations under its leases. In June 2021, the Company sold these two properties as part of the Sunrise Senior Housing Portfolio (see Note 5).

CCRC OpCo. As of December 31, 2020, the Company held a 49% ownership interest in CCRC OpCo, a joint venture entity formed in August 2014 that operated senior housing properties and had been identified as a VIE. The equity members of CCRC OpCo “lacked power” because they shared certain operating rights with Brookdale, as manager of the CCRCs. The assets of CCRC OpCo primarily consisted of the CCRCs that it owned and leased, resident fees receivable, notes receivable, and cash and cash equivalents; its obligations primarily consisted of operating lease obligations to CCRC PropCo, debt service payments, capital expenditures, accounts payable, and expense accruals. Assets generated by the operations of CCRC OpCo (primarily rents from CCRC residents) of CCRC OpCo may only be used to settle its contractual obligations (primarily from debt service payments, capital expenditures, and rental costs and operating expenses incurred to manage such facilities). In May 2021, the CCRC JV sold the two remaining CCRCs. Refer to Note 3 for additional discussion related to transactions impacting CCRC OpCo.

LLC Investment. The Company holds a limited partner ownership interest in an unconsolidated LLC that has been identified as a VIE. The Company’s involvement in the entity is limited to its equity investment as a limited partner and it does not have any substantive participating rights or kick-out rights over the general partner. The assets and liabilities of the entity primarily consist of those associated with its senior housing real estate and development activities. Any assets generated by the entity may only be used to settle its contractual obligations (primarily development expenses and debt service payments).

Development Investments. As of December 31, 2020, the Company held investments (consisting of mezzanine debt and/or preferred equity) in two senior housing development joint ventures. The joint ventures were also capitalized by senior loans from a third party and equity from the third party managing-member, but were considered to be “thinly capitalized” as there was insufficient equity investment at risk. In April 2021, the Company sold two mezzanine loans and two preferred equity investments as part of the Discovery SHOP Portfolio disposition (see Note 5).

Debt Securities Investment. The Company holds commercial mortgage-backed securities (“CMBS”) issued by Federal Home Loan Mortgage Corporation (commonly referred to as Freddie MAC) through a special purpose entity that has been identified as a VIE because it is “thinly capitalized.” The CMBS issued by the VIE are backed by mortgage debt obligations on real estate assets. These securities are classified as held-to-maturity because the Company has the intent and ability to hold the securities until maturity.

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Loan Receivable. The Company provided seller financing related to its sale of seven senior housing triple-net facilities. The financing was provided in the form of a secured five-year mezzanine loan to a “thinly capitalized” borrower created to acquire the facilities.

The classification of the related assets and liabilities and the maximum loss exposure as a result of the Company’s involvement with these VIEs at June 30, 2021 was as follows (in thousands):

VIE Type	Asset Type	Maximum Loss Exposure and Carrying Amount(1)
Continuing operations:
CCRC OpCo	Investments in and advances to unconsolidated joint ventures	$	1,940
Loans receivable	Loans receivable, net	3,045
CMBS and LLC investment	Other assets, net	35,999

_______________________________________

(1)The Company’s maximum loss exposure represents the aggregate carrying amount of such investments (including accrued interest).

As of June 30, 2021, the Company had not provided, and is not required to provide, financial support through a liquidity arrangement or otherwise, to its unconsolidated VIEs, including under circumstances in which it could be exposed to further losses (e.g., cash shortfalls).

See Notes 3, 7, and 8 for additional descriptions of the nature, purpose, and operating activities of the Company’s unconsolidated VIEs and interests therein.

Consolidated Variable Interest Entities

The Company’s consolidated total assets and total liabilities at June 30, 2021 and December 31, 2020 include certain assets of VIEs that can only be used to settle the liabilities of the related VIE. The VIE creditors do not have recourse to the Company.

Ventures V, LLC.  The Company holds a 51% ownership interest in and is the managing member of a joint venture entity formed in October 2015 that owns and leases MOBs (“Ventures V”). The Company classifies Ventures V as a VIE due to the non-managing member lacking substantive participation rights in the management of Ventures V or kick-out rights over the managing member. The Company consolidates Ventures V as the primary beneficiary because it has the ability to control the activities that most significantly impact the VIE’s economic performance. The assets of Ventures V primarily consist of leased properties (net real estate), rents receivable, and cash and cash equivalents; its obligations primarily consist of capital expenditures for the properties. Assets generated by Ventures V may only be used to settle its contractual obligations (primarily from capital expenditures).

Life Science JVs.  The Company holds a 99% ownership interest in multiple joint venture entities that own and lease life science assets (the “Life Science JVs”). The Life Science JVs are VIEs as the members share in control of the entities, but substantially all of the activities are performed on behalf of the Company. The Company consolidates the Life Science JVs as the primary beneficiary because it has the ability to control the activities that most significantly impact these VIEs’ economic performance. The assets of the Life Science JVs primarily consist of leased properties (net real estate), rents receivable, and cash and cash equivalents; their obligations primarily consist of debt service payments and capital expenditures for the properties. Assets generated by the Life Science JVs may only be used to settle their contractual obligations (primarily from capital expenditures).

MSREI MOB JV. The Company holds a 51% ownership interest in, and is the managing member of, a joint venture entity formed in August 2018 that owns and leases MOBs (the “MSREI JV”). The MSREI JV is a VIE due to the non-managing member lacking substantive participation rights in the management of the joint venture or kick-out rights over the managing member. The Company consolidates the MSREI JV as the primary beneficiary because it has the ability to control the activities that most significantly impact the VIE’s economic performance. The assets of the MSREI JV primarily consist of leased properties (net real estate), rents receivable, and cash and cash equivalents; its obligations primarily consist of capital expenditures for the properties. Assets generated by the MSREI JV may only be used to settle its contractual obligations (primarily from capital expenditures).

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Consolidated Lessees. The Company leases three senior housing properties to lessee entities under cash flow leases through which the Company receives monthly rent equal to the residual cash flows of the properties. The lessee entities are classified as VIEs as they are "thinly capitalized" entities. The Company consolidates the lessee entities as it has the ability to control the activities that most significantly impact the economic performance of the lessee entities. The lessee entities’ assets primarily consist of leasehold interests in senior housing facilities (operating leases), resident fees receivable, and cash and cash equivalents; its obligations primarily consist of lease payments to the Company and operating expenses of the senior housing facilities (accounts payable and accrued expenses). Assets generated by the senior housing operations (primarily from senior housing resident rents) may only be used to settle contractual obligations (primarily from the rental costs, operating expenses incurred to manage such facility and debt costs).

DownREITs.  The Company holds a controlling ownership interest in and is the managing member of seven DownREITs. The Company classifies the DownREITs as VIEs due to the non-managing members lacking substantive participation rights in the management of the DownREITs or kick-out rights over the managing member. The Company consolidates the DownREITs as the primary beneficiary because it has the ability to control the activities that most significantly impact these VIEs’ economic performance. The assets of the DownREITs primarily consist of leased properties (net real estate), rents receivable, and cash and cash equivalents; their obligations primarily consist of debt service payments and capital expenditures for the properties. Assets generated by the DownREITs (primarily from resident rents) may only be used to settle their contractual obligations (primarily from debt service and capital expenditures).

Other Consolidated Real Estate Partnerships.  The Company holds a controlling ownership interest in and is the general partner (or managing member) of multiple partnerships that own and lease real estate assets (the “Partnerships”). The Company classifies the Partnerships as VIEs due to the limited partners (non-managing members) lacking substantive participation rights in the management of the Partnerships or kick-out rights over the general partner (managing member). The Company consolidates the Partnerships as the primary beneficiary because it has the ability to control the activities that most significantly impact these VIEs’ economic performance. The assets of the Partnerships primarily consist of leased properties (net real estate), rents receivable, and cash and cash equivalents; their obligations primarily consist of debt service payments and capital expenditures for the properties. Assets generated by the Partnerships (primarily from resident rents) may only be used to settle their contractual obligations (primarily from debt service and capital expenditures).

Exchange Accommodation Titleholder. During the year ended December 31, 2020, the Company acquired seven MOBs, one hospital, and three life science facilities (the “acquired properties”) using reverse like-kind exchange structures pursuant to Section 1031 of the Code (a “reverse 1031 exchange”). As of December 31, 2020, the Company had not completed the reverse 1031 exchanges and as such, the acquired properties remained in the possession of Exchange Accommodation Titleholders (“EATs”). The EATs were classified as VIEs as they were “thinly capitalized” entities. The Company consolidated the EATs because it had the ability to control the activities that most significantly impacted the economic performance of the EATs and was, therefore, the primary beneficiary of the EATs. The properties held by the EATs were reflected as real estate with a carrying value of $813 million as of December 31, 2020. The assets of the EATs primarily consisted of leased properties (net real estate), rents receivable, and cash and cash equivalents; their obligations primarily consisted of capital expenditures for the properties. Assets generated by the EATs may only be used to settle its contractual obligations (primarily from capital expenditures). The reverse 1031 exchanges described above were completed during the three months ended June 30, 2021. Therefore, as of June 30, 2021, no properties remained in possession of an EAT.

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Total assets and total liabilities include VIE assets and liabilities as follows (in thousands):

	June 30, 2021		December 31, 2020
Assets
Buildings and improvements	$	2,337,717	$	2,988,599
Development costs and construction in progress	46,634		85,595
Land	379,376		433,574
Accumulated depreciation and amortization	(520,226)		(602,491)
Net real estate	2,243,501		2,905,277
Accounts receivable, net	6,781		12,009
Cash and cash equivalents	26,970		16,550
Restricted cash	86,642		7,977
Intangible assets, net	102,428		179,027
Assets held for sale and discontinued operations, net	25,411		704,966
Right-of-use asset, net	108,088		95,407
Other assets, net	61,457		59,063
Total assets	$	2,661,278	$	3,980,276
Liabilities
Mortgage debt	$	144,263	$	39,085
Intangible liabilities, net	20,378		56,467
Liabilities related to assets held for sale and discontinued operations, net	4,560		190,919
Lease liability	97,849		97,605
Accounts payable, accrued liabilities, and other liabilities	52,757		102,391
Deferred revenue	34,427		90,183
Total liabilities	$	354,234	$	576,650

Total assets and liabilities related to assets held for sale and discontinued operations include VIE assets and liabilities as follows (in thousands):

	June 30, 2021		December 31, 2020
Assets
Buildings and improvements	$	32,173	$	639,759
Development costs and construction in progress	91		68
Land	2,724		106,209
Accumulated depreciation and amortization	(16,096)		(57,235)
Net real estate	18,892		688,801
Accounts receivable, net	2,368		1,700
Cash and cash equivalents	1,016		6,306
Restricted cash	294		3,124
Right-of-use asset, net	405		1,391
Other assets, net	2,436		3,644
Total assets	$	25,411	$	704,966
Liabilities
Mortgage debt	$	—	$	176,702
Lease liability	644		1,392
Accounts payable, accrued liabilities, and other liabilities	3,743		11,003
Deferred revenue	173		1,822
Total liabilities	$	4,560	$	190,919

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NOTE 17.  Fair Value Measurements

Financial assets and liabilities measured at fair value on a recurring basis in the consolidated balance sheets are immaterial at June 30, 2021 and December 31, 2020.

The table below summarizes the carrying amounts and fair values of the Company’s financial instruments (in thousands):

	June 30, 2021(3)				December 31, 2020(3)
	Carrying Value		Fair Value		Carrying Value		Fair Value
Loans receivable, net(2)	$	429,076	$	437,632	$	195,375	$	201,228
Marketable debt securities(2)	20,673		20,673		20,355		20,355
Interest rate cap assets(2)	244		244		—		—
Bank line of credit and commercial paper(2)	720,000		720,000		129,590		129,590
Term loan(2)	249,303		249,303		249,182		249,182
Senior unsecured notes(1)	3,710,972		4,169,472		5,697,586		6,517,650
Mortgage debt(2)(4)	358,101		360,296		221,621		221,181
Interest rate swap liabilities(2)	—		—		81		81

_______________________________________

(1)Level 1: Fair value calculated based on quoted prices in active markets.

(2)Level 2: Fair value based on (i) for marketable debt securities, quoted prices for similar or identical instruments in active or inactive markets, respectively, or (ii) for loans receivable, net, mortgage debt, swaps, and caps, standardized pricing models in which significant inputs or value drivers are observable in active markets. For bank line of credit, commercial paper, and term loan, the carrying values are a reasonable estimate of fair value because the borrowings are primarily based on market interest rates and the Company’s credit rating.

(3)During the six months ended June 30, 2021 and year ended December 31, 2020, there were no material transfers of financial assets or liabilities within the fair value hierarchy.

(4)For the six months ended June 30, 2021 and year ended December 31, 2020, excludes mortgage debt on assets held for sale and discontinued operations of $37 million and $319 million, respectively.

NOTE 18.  Derivative Financial Instruments

The Company uses derivative instruments to mitigate the effects of interest rate fluctuations on specific forecasted transactions as well as recognized financial obligations or assets. Utilizing derivative instruments allows the Company to manage the risk of fluctuations in interest rates related to the potential impact these changes could have on future earnings and forecasted cash flows. The Company does not use derivative instruments for speculative or trading purposes.

In March 2021, the Company repaid $39 million of variable rate secured debt on two SHOP assets classified as discontinued operations as of June 30, 2021 and terminated the two remaining related interest rate swap contracts. Therefore, at June 30, 2021, the Company had no remaining interest rate swap contracts.

In April 2021, the Company executed two interest rate cap agreements on its mortgage debt issued in conjunction with the acquisition of the MOB Portfolio (see Note 4). The following table summarizes the Company’s outstanding interest rate cap agreements as of June 30, 2021 (dollars in thousands):

Date Entered	Maturity Date	Hedge Designation	Notional		Strike Rate	Index	Fair Value(1)
Interest rate:
April 2021(2)	May 2024	Non-designated	$	142,100	2.00 %	1 mo. USD-LIBOR-BBA	$	244

_____________________________

(1)Derivative assets are recorded in other assets, net in the consolidated balance sheets.

(2)Represents two interest rate cap agreements that manage the Company’s exposure to variable cash flows on certain mortgage debt borrowings by limiting interest rates.

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NOTE 19.    Accounts Payable, Accrued Liabilities, and Other Liabilities

The following table summarizes the Company’s accounts payable, accrued liabilities, and other liabilities, excluding accounts payable, accrued liabilities, and other liabilities related to assets classified as discontinued operations (in thousands):

	June 30, 2021		December 31, 2020
Refundable entrance fees(1)	$	301,953	$	317,444
Construction related accrued liabilities	113,221		95,293
Accrued interest	55,373		78,735
Other accounts payable and accrued liabilities	217,911		271,919
Accounts payable, accrued liabilities, and other liabilities	$	688,458	$	763,391

_______________________________________

(1)At June 30, 2021 and December 31, 2020, unamortized nonrefundable entrance fee liabilities were $485 million and $484 million, respectively, which are recorded within deferred revenue on the Consolidated Balance Sheets.

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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

All references in this report to “Healthpeak,” the “Company,” “we,” “us” or “our” mean Healthpeak Properties, Inc., together with its consolidated subsidiaries. Unless the context suggests otherwise, references to “Healthpeak Properties, Inc.” mean the parent company without its subsidiaries.

Cautionary Language Regarding Forward-Looking Statements

Statements in this Quarterly Report on Form 10-Q that are not historical factual statements are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Forward-looking statements include, among other things, statements regarding our and our officers’ intent, belief or expectation as identified by the use of words such as “may,” “will,” “project,” “expect,” “believe,” “intend,” “anticipate,” “seek,” “target,” “forecast,” “plan,” “potential,” “estimate,” “could,” “would,” “should” and other comparable and derivative terms or the negatives thereof. Forward-looking statements reflect our current expectations and views about future events and are subject to risks and uncertainties that could cause actual results, including our future financial condition and results of operations, to differ materially from those expressed or implied by any forward-looking statements. You are urged to carefully review the disclosures we make concerning risks and uncertainties that may affect our business and future financial performance.

Forward-looking statements are based on certain assumptions and analysis made in light of our experience and perception of historical trends, current conditions and expected future developments as well as other factors that we believe are appropriate under the circumstances. While forward-looking statements reflect our good faith belief and assumptions we believe to be reasonable based upon current information, we can give no assurance that our expectations or forecasts will be attained. Further, we cannot guarantee the accuracy of any such forward-looking statement contained in this Quarterly Report.

As more fully set forth under Part I, Item 1A. “Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended December 31, 2020, risks and uncertainties that may cause our actual results to differ materially from the expectations contained in the forward-looking statements include, among other things:

•the coronavirus (“COVID-19”) pandemic and health and safety measures intended to reduce its spread, the availability, effectiveness and public usage and acceptance of vaccines, and how quickly and to what extent normal economic and operating conditions can resume within the markets in which we operate;

•operational risks associated with third party management contracts, including the additional regulation and liabilities of our properties operated through structures permitted by the Housing and Economic Recovery Act of 2008, which includes most of the provisions previously proposed in the REIT Investment Diversification and Empowerment Act of 2007 (commonly referred to as “RIDEA”);

•the ability of our existing and future tenants, operators and borrowers to conduct their respective businesses in a manner sufficient to maintain or increase their revenues and manage their expenses in order to generate sufficient income to make rent and loan payments to us and our ability to recover investments made, if applicable, in their operations;

•increased competition, operating costs and market changes affecting our tenants, operators and borrowers;

•the financial condition of our tenants, operators and borrowers, including potential bankruptcies and downturns in their businesses, and their legal and regulatory proceedings;

•our concentration of investments in the healthcare property sector, which makes us more vulnerable to a downturn in a specific sector than if we invested in multiple industries;

•our ability to identify replacement tenants and operators and the potential renovation costs and regulatory approvals associated therewith;

•our property development and redevelopment activity risks, including costs above original estimates, project delays and lower occupancy rates and rents than expected;

•changes within the life science industry;

•high levels of regulation, funding requirements, expense and uncertainty faced by our life science tenants;

•the ability of the hospitals on whose campuses our medical office buildings (“MOBs”) are located and their affiliated healthcare systems to remain competitive or financially viable;

•our ability to maintain or expand our hospital and health system client relationships;

•economic and other conditions that negatively affect geographic areas from which we recognize a greater percentage of our revenue;

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•uninsured or underinsured losses, which could result in significant losses and/or performance declines by us or our tenants and operators;

•our investments in joint ventures and unconsolidated entities, including our lack of sole decision making authority and our reliance on our partners’ financial condition and continued cooperation;

•our use of contingent rent provisions and/or rent escalators based on the Consumer Price Index;

•competition for suitable healthcare properties to grow our investment portfolio;

•our ability to make material acquisitions and successfully integrate them;

•the potential impact on us and our tenants, operators and borrowers from litigation matters, including rising liability and insurance costs;

•our ability to foreclose on collateral securing our real estate-related loans;

•laws or regulations prohibiting eviction of our tenants;

•the failure of our tenants and operators to comply with federal, state and local laws and regulations, including resident health and safety requirements, as well as licensure, certification and inspection requirements;

•required regulatory approvals to transfer our healthcare properties;

•compliance with the Americans with Disabilities Act and fire, safety and other health regulations;

•the requirements of, or changes to, governmental reimbursement programs such as Medicare or Medicaid;

•legislation to address federal government operations and administration decisions affecting the Centers for Medicare and Medicaid Services;

•our participation in the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) Provider Relief Program and other COVID-19 related stimulus and relief programs;

•volatility or uncertainty in the capital markets, the availability and cost of capital as impacted by interest rates, changes in our credit ratings and the value of our common stock, and other conditions that may adversely impact our ability to fund our obligations or consummate transactions, or reduce the earnings from potential transactions;

•cash available for distribution to stockholders and our ability to make dividend distributions at expected levels;

•our ability to manage our indebtedness level and covenants in and changes to the terms of such indebtedness;

•changes in global, national and local economic and other conditions;

•provisions of Maryland law and our charter that could prevent a transaction that may otherwise be in the interest of our stockholders;

•environmental compliance costs and liabilities associated with our real estate investments;

•our ability to maintain our qualification as a real estate investment trust (“REIT”);

•changes to U.S. federal income tax laws, and potential deferred and contingent tax liabilities from corporate acquisitions;

•calculating non-REIT tax earnings and profits;

•ownership limits in our charter that restrict ownership in our stock;

•our reliance on information technology systems and the potential impact of system failures, disruptions or breaches;

•unfavorable litigation resolution or disputes; and

•the loss or limited availability of our key personnel.

Except as required by law, we do not undertake, and hereby disclaim, any obligation to update any forward-looking statements, which speak only as of the date on which they are made.

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Overview

The information set forth in this Item 2 is intended to provide readers with an understanding of our financial condition, changes in financial condition and results of operations. We will discuss and provide our analysis in the following order:

•Executive Summary

•COVID-19 Update

•2021 Transaction Overview

•Dividends

•Results of Operations

•Liquidity and Capital Resources

•Contractual Obligations and Off-Balance Sheet Arrangements

•Non-GAAP Financial Measures Reconciliations

•Critical Accounting Policies and Recent Accounting Pronouncements

Executive Summary

Healthpeak Properties, Inc. is a Standard & Poor’s (“S&P”) 500 company that acquires, develops, owns, leases and manages healthcare real estate across the United States (“U.S.”). Our company was originally founded in 1985. We are a Maryland corporation and qualify as a self-administered REIT. In November 2020, we moved our corporate headquarters from Irvine, California to Denver, Colorado. With properties in nearly every state, the new headquarters provides a favorable mix of affordability and a centralized geographic location. We also operate offices in Irvine, California and Franklin, Tennessee.

During 2020, we began the process of disposing of our senior housing triple-net portfolio and senior housing operating (“SHOP”) portfolio. We have successfully disposed of a significant portion of both portfolios and will continue that process during the remainder of 2021. Refer to a discussion of recent and upcoming dispositions in “Item 2, Management’s Discussion and Analysis of Financial Condition and Results of Operations—2021 Transaction Overview” for the current status of transactions. As of December 31, 2020, we concluded that the planned dispositions represented a strategic shift that has had and will have a major effect on our operations and financial results and, therefore, the assets are classified as discontinued operations in all periods presented herein. Prior periods have been recast to conform to the current period presentation. See Note 5 to the Consolidated Financial Statements for further information regarding discontinued operations.

In conjunction with the planned disposal of our senior housing triple-net and SHOP portfolios, we focused our strategy on investing in a diversified portfolio of high-quality healthcare properties across our three core asset classes of life science, medical office, and continuing care retirement community (“CCRC”) real estate. Under the life science and medical office segments, we invest through the acquisition, development and management of life science buildings, MOBs, and hospitals. Under the CCRC segment, our properties are operated through RIDEA structures. We have other non-reportable segments that are comprised primarily of an interest in an unconsolidated joint venture that owns 19 senior housing assets and debt investments.

At June 30, 2021, our portfolio of investments, including properties in our unconsolidated joint ventures and excluding investments classified as discontinued operations, consisted of interests in 473 properties. The following table summarizes information for our reportable segments, excluding discontinued operations, for the three months ended June 30, 2021 (dollars in thousands):

Segment	Total Portfolio Adjusted NOI(1)(2)		Percentage of Total Portfolio Adjusted NOI(1)		Number of Properties
Life science	$	125,367	49	%	142
Medical office	102,764		40	%	297
CCRC	24,068		9	%	15
Other non-reportable	4,845		2	%	19
Totals	$	257,044	100	%	473

_______________________________________

(1)Total Portfolio metrics include results of operations from disposed properties through the disposition date. See “Item 2, Management’s Discussion and Analysis of Financial Condition and Results of Operations—Non-GAAP Financial Measures” for additional information regarding Adjusted NOI and see Note 14 to the Consolidated Financial Statements for a reconciliation of Adjusted NOI by segment to net income (loss).

(2)For the three months ended June 30, 2021, Adjusted NOI for our senior housing triple-net and SHOP portfolios was $1 million and $(2) million, respectively. Operating results for these portfolios are reported as discontinued operations for all periods presented herein.

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For a description of our significant activities during 2021, see “Item 2, Management’s Discussion and Analysis of Financial Condition and Results of Operations—2021 Transaction Overview” in this report.

We invest in and manage our real estate portfolio for the long-term to maximize benefit to our stockholders and support the growth of our dividends. Our strategy consists of four core elements:

(i)Our real estate: Our portfolio is grounded in high-quality properties in desirable locations. We focus on three purposely selected private pay asset classes, life science, medical office, and continuing care retirement community, to provide stability through inevitable market cycles.

(ii)Our financials: We maintain a strong investment-grade balance sheet with ample liquidity as well as long-term fixed-rate debt financing with staggered maturities to reduce our exposure to interest rate volatility and refinancing risk.

(iii)Our partnerships: We work with leading healthcare companies, operators and service providers and are responsive to their space and capital needs. We provide high-quality management services to encourage tenants to renew, expand and relocate into our properties, which drives increased occupancy, rental rates, and property values.

(iv)Our platform: We have a people-first culture that we believe attracts, develops and retains top talent. We continually strive to create and maintain an industry-leading platform, with systems and tools that allow us to effectively and efficiently manage our assets and investment activity.

COVID-19 Update

Our tenants, operators, and borrowers continue to face significant cost increases as a result of increased health and safety measures implemented to reduce the spread of COVID-19, including increased staffing demands for patient care and sanitation, as well as increased usage and inventory of critical medical supplies and personal protective equipment. These health and safety measures have been in place since the onset of the pandemic and continue to place a substantial strain on the business operations of many of our tenants, operators, and borrowers. In addition, our senior housing and CCRC property operators have experienced significant cost increases as a result of higher staffing hours and compensation, which we expect to remain elevated beyond the pandemic as higher wages become standard practice.

The impact of COVID-19 on the ability of our tenants to pay rent in the future is currently unknown. We have monitored, and will continue to monitor the credit quality of each of our tenants and write off straight-line rent and accounts receivable, as necessary. In the event we conclude that substantially all of a tenant’s straight-line rent or accounts receivable is not probable of collection in the future, such amounts will be written off, which could have a material impact on our future results of operations.

All development, redevelopment, and tenant improvement projects in our life science portfolio that were previously delayed in the greater San Francisco and Boston areas, and all redevelopment projects in our senior housing portfolio, have been allowed to restart with infection control protocols in place, although future local, state, or federal orders could cause work to be re-suspended.

We are well-positioned to navigate economic changes resulting from the pandemic, with approximately $1.93 billion of liquidity available, including $1.85 billion of borrowing capacity under our bank line of credit facility and approximately $86 million of cash and cash equivalents as of August 2, 2021.

We have taken, and will continue to take, proactive measures to provide for the well-being of our workforce. We have maximized our systems infrastructure as well as virtual and remote working technologies for our employees, including our executive team, to ensure productivity and connectivity internally, as well as with key third-party relationships.

It is too early to determine the full, long-term economic impact of the COVID-19 pandemic. While we have seen some abatement in related costs as resident caseloads have declined in our senior housing and CCRC facilities, this could change with new surges. Future potential outbreaks of COVID-19, including outbreaks caused by new variants, could materially and adversely disrupt operations, as well as cause significant reputational harm to us, our operators, and our tenants.

See Part I, Item 1A. “Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended December 31, 2020 for additional discussion of the risks posed by the COVID-19 pandemic and uncertainties we and our tenants, operators, and borrowers may face as a result.

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2021 Transaction Overview

South San Francisco Land Site Acquisition

In October 2020, we executed a definitive agreement to acquire approximately 12 acres of land for $128 million. The acquisition site is located in South San Francisco, California, adjacent to two sites currently held by us as land for future development. We paid a $10 million nonrefundable deposit upon completing due diligence in November 2020. The first phase of the acquisition, with a purchase price of $61 million, closed in April 2021.

Westview Medical Plaza Acquisition

In February 2021, we acquired one MOB in Nashville, Tennessee for $13 million.

Pinnacle at Ridgegate Acquisition

In April 2021, we acquired one MOB in Denver, Colorado for $38 million.

MOB Portfolio Acquisition

In April 2021, we acquired 14 MOBs for $371 million and issued $142 million of secured mortgage debt (the “MOB Portfolio”).

Westside Medical Plaza Acquisition

In June 2021, we acquired one MOB in Fort Lauderdale, Florida for $16 million.

Wesley Woodlawn Acquisition

In July 2021, we acquired one MOB in Wichita, Kansas for $50 million.

Atlantic Health Acquisition

In July 2021, we acquired three MOBs in Morristown, New Jersey for $155 million.

Senior Housing Portfolio Sales

•In January 2021, we sold a portfolio of 32 SHOP assets (the “Sunrise Senior Housing Portfolio”) for $664 million and provided the buyer with: (i) financing of $410 million and (ii) a commitment to finance up to $92 million of additional debt for capital expenditures. In June 2021, we received principal repayments of $246 million on the January 2021 financing. As a result of this repayment, the commitment to finance additional debt for capital expenditures was reduced to $56 million, none of which had been funded as of June 30, 2021.

•In January 2021, we sold 24 senior housing assets under a triple-net lease with Brookdale for $510 million.

•In January 2021, we sold a portfolio of 16 SHOP assets for $230 million and provided the buyer with financing of $150 million.

•In February 2021, we sold eight senior housing assets in a triple-net lease with Harbor Retirement Associates for $132 million.

•In April 2021, we sold a portfolio of 12 SHOP assets for $564 million.

•In April 2021, we sold: (i) a portfolio of 10 SHOP assets for $334 million and (ii) 2 mezzanine loans and 2 preferred equity investments for $21 million.

•In April 2021, we sold a portfolio of five SHOP assets for $64 million.

•In May 2021, we sold a portfolio of seven SHOP assets for $113 million.

•In June 2021, upon completion of the license transfer process, we sold the two remaining Sunrise senior housing triple-net assets for $80 million.

Other Real Estate Transactions

•In April 2021, the SHOP property in the Otay Ranch JV was sold, resulting in our share of proceeds of $32 million.

•In May 2021, the CCRC JV sold the remaining two CCRCs for $38 million, $19 million of which represents our 49% interest.

•In addition to the transactions above, during the six months ended June 30, 2021, we sold seven SHOP assets for $49 million, three senior housing triple-net assets for $12 million, four MOBs for $21 million, and one hospital for $226 million (through the exercise of a purchase option by a tenant).

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Financing Activities

•In January 2021, we repurchased $112 million aggregate principal amount of our 4.25% senior unsecured notes due 2023, $201 million aggregate principal amount of our 4.20% senior unsecured notes due 2024, and $469 million aggregate principal amount of our 3.88% senior unsecured notes due 2024.

•In February 2021, we used optional redemption provisions to redeem the remaining $188 million of our 4.25% senior unsecured notes due 2023, $149 million of our 4.20% senior unsecured notes due 2024, and $331 million of our 3.88% senior unsecured notes due 2024.

•In May 2021, we repurchased $252 million of our 3.40% senior unsecured notes due 2025 and $298 million of our 4.00% senior unsecured notes due 2025.

•In July 2021, we completed our inaugural green bond offering, issuing $450 million aggregate principal amount of 1.35% senior unsecured notes due 2027.

•In July 2021, we repaid the $250 million outstanding balance on our unsecured term loan facility (“2019 Term Loan”).

Development Activities

•At June 30, 2021, we had five on-campus MOB developments in process with an aggregate total estimated cost of $122 million.

•At June 30, 2021, we had six life science development projects in process with an aggregate total estimated cost of approximately $1.05 billion.

•During the six months ended June 30, 2021, the following projects were placed in service: (i) one life science development project with a total project cost of $151 million at completion, (ii) one life science redevelopment project with a total project cost of $19 million at completion, and (iii) one redevelopment asset in our joint venture with a sovereign wealth fund with a total project cost of $9 million at completion.

Dividends

The following table summarizes our common stock cash dividends declared in 2021:

Declaration Date	Record Date	Amount Per Share		Dividend Payment Date
February 9	February 22	$	0.30	March 5
April 29	May 10	0.30		May 21
July 29	August 9	0.30		August 20

Results of Operations

We evaluate our business and allocate resources among our reportable business segments: (i) life science, (ii) medical office, and (iii) CCRC. Under the life science and medical office segments, we invest through the acquisition and development of life science facilities, MOBs, and hospitals, which generally require a greater level of property management. Our CCRCs are operated through RIDEA structures. We have other non-reportable segments that are comprised primarily of: (i) an interest in an unconsolidated joint venture that owns 19 senior housing assets and (ii) debt investments. We evaluate performance based upon property adjusted net operating income (“Adjusted NOI” or “Cash NOI”) in each segment. The accounting policies of the segments are the same as those described in the summary of significant accounting policies in Note 2 to the Consolidated Financial Statements in our Annual Report on Form 10-K for the year ended December 31, 2020 filed with the U.S. Securities and Exchange Commission (“SEC”), as updated by Note 2 to the Consolidated Financial Statements herein.

In conjunction with classifying our senior housing triple-net and SHOP portfolios as discontinued operations as of December 31, 2020, the results of operations related to those portfolios are no longer presented in reportable business segments. Accordingly, results of operations of those portfolios are not included in the reportable business segment analysis below. Refer to Note 5 to the Consolidated Financial Statements for further information regarding discontinued operations.

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Non-GAAP Financial Measures

Net Operating Income

NOI and Adjusted NOI are non-U.S. generally accepted accounting principles (“GAAP”) supplemental financial measures used to evaluate the operating performance of real estate. 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) as presented in Note 14 to the Consolidated Financial Statements. 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 our share of income (loss) generated by unconsolidated joint ventures and exclude noncontrolling interests’ share of income (loss) generated by consolidated joint ventures. Adjusted NOI is oftentimes referred to as “Cash NOI.” Management believes NOI and Adjusted NOI are important supplemental measures because they provide relevant and useful information by reflecting only income and operating expense items that are incurred at the property level and present them on an unlevered basis. We use NOI and Adjusted NOI to make decisions about resource allocations, to assess and compare property level performance, and to evaluate our Same-Store (“SS”) performance, as described below. We believe that net income (loss) is the most directly comparable GAAP measure to NOI and Adjusted NOI. NOI and Adjusted NOI should not be viewed as alternative measures of operating performance to net income (loss) as defined by GAAP since they do not reflect various excluded items. Further, our definitions of NOI and Adjusted NOI may not be comparable to the definitions used by other REITs or real estate companies, as they may use different methodologies for calculating NOI and Adjusted NOI. For a reconciliation of NOI and Adjusted NOI to net income (loss) by segment, refer to Note 14 to the Consolidated Financial Statements.

Operating expenses generally relate to leased medical office and life science properties, as well as SHOP and CCRC facilities. We generally recover all or a portion of our leased medical office and life science property expenses through tenant recoveries. We present expenses as operating or general and administrative based on the underlying nature of the expense.

Same-Store

Same-Store NOI and Adjusted (Cash) NOI information allows us to evaluate the performance of our property portfolio under a consistent population by eliminating changes in the composition of our consolidated portfolio of properties. Same-Store Adjusted NOI excludes amortization of deferred revenue from tenant-funded improvements and certain non-property specific operating expenses that are allocated to each operating segment on a consolidated basis.

Properties are included in Same-Store once they are stabilized for the full period in both comparison periods. Newly acquired operating assets are generally considered stabilized at the earlier of lease-up (typically when the tenant(s) control(s) the physical use of at least 80% of the space) or 12 months from the acquisition date. Newly completed developments and redevelopments are considered stabilized at the earlier of lease-up or 24 months from the date the property is placed in service. Properties that experience a change in reporting structure, such as a conversion from a triple-net lease to a RIDEA reporting structure, are considered stabilized after 12 months in operations under a consistent reporting structure. A property is removed from Same-Store when it is classified as held for sale, sold, placed into redevelopment, experiences a casualty event that significantly impacts operations, a change in reporting structure or operator transition has been agreed to, or a significant tenant relocates from a Same-Store property to a non Same-Store property and that change results in a corresponding increase in revenue. We do not report Same-Store metrics for our other non-reportable segments. For a reconciliation of Same-Store to total portfolio Adjusted NOI and other relevant disclosures by segment, refer to our Segment Analysis below.

Funds From Operations (“FFO”)

FFO encompasses Nareit FFO and FFO as Adjusted, each of which is described in detail below. We believe FFO applicable to common shares, diluted FFO applicable to common shares, and diluted FFO per common share are important supplemental non-GAAP measures of operating performance for a REIT. Because the historical cost accounting convention used for real estate assets utilizes straight-line depreciation (except on land), such accounting presentation implies that the value of real estate assets diminishes predictably over time. Since real estate values instead have historically risen and fallen with market conditions, presentations of operating results for a REIT that use historical cost accounting for depreciation could be less informative. The term FFO was designed by the REIT industry to address this issue.

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Nareit FFO. FFO, as defined by the National Association of Real Estate Investment Trusts (“Nareit”), is net income (loss) applicable to common shares (computed in accordance with GAAP), excluding gains or losses from sales of depreciable property, including any current and deferred taxes directly associated with sales of depreciable property, impairments of, or related to, depreciable real estate, plus real estate and other real estate-related depreciation and amortization, and adjustments to compute our share of Nareit FFO and FFO as Adjusted (see below) from joint ventures. Adjustments for joint ventures are calculated to reflect our pro-rata share of both our consolidated and unconsolidated joint ventures. We reflect our share of Nareit FFO for unconsolidated joint ventures by applying our actual ownership percentage for the period to the applicable reconciling items on an entity by entity basis. For consolidated joint ventures in which we do not own 100%, we reflect our share of the equity by adjusting our Nareit FFO to remove the third party ownership share of the applicable reconciling items based on actual ownership percentage for the applicable periods. Our pro-rata share information is prepared on a basis consistent with the comparable consolidated amounts, is intended to reflect our proportionate economic interest in the operating results of properties in our portfolio and is calculated by applying our actual ownership percentage for the period. We do not control the unconsolidated joint ventures, and the pro-rata presentations of reconciling items included in Nareit FFO do not represent our legal claim to such items. The joint venture members or partners are entitled to profit or loss allocations and distributions of cash flows according to the joint venture agreements, which provide for such allocations generally according to their invested capital.

The presentation of pro-rata information has limitations, which include, but are not limited to, the following: (i) the amounts shown on the individual line items were derived by applying our overall economic ownership interest percentage determined when applying the equity method of accounting and do not necessarily represent our legal claim to the assets and liabilities, or the revenues and expenses and (ii) other companies in our industry may calculate their pro-rata interest differently, limiting the usefulness as a comparative measure. Because of these limitations, the pro-rata financial information should not be considered independently or as a substitute for our financial statements as reported under GAAP. We compensate for these limitations by relying primarily on our GAAP financial statements, using the pro-rata financial information as a supplement.

Nareit FFO does not represent cash generated from operating activities in accordance with GAAP, is not necessarily indicative of cash available to fund cash needs and should not be considered an alternative to net income (loss). We compute Nareit FFO in accordance with the current Nareit definition; however, other REITs may report Nareit FFO differently or have a different interpretation of the current Nareit definition from ours.

FFO as Adjusted. In addition, we present Nareit FFO on an adjusted basis before the impact of non-comparable items including, but not limited to, transaction-related items, other impairments (recoveries) and other losses (gains), restructuring and severance related charges, prepayment costs (benefits) associated with early retirement or payment of debt, litigation costs (recoveries), casualty-related charges (recoveries), foreign currency remeasurement losses (gains), deferred tax asset valuation allowances, and changes in tax legislation (“FFO as Adjusted”). Transaction-related items include transaction expenses and gains/charges incurred as a result of mergers and acquisitions and lease amendment or termination activities. Prepayment costs (benefits) associated with early retirement of debt include the write-off of unamortized deferred financing fees, or additional costs, expenses, discounts, make-whole payments, penalties or premiums incurred as a result of early retirement or payment of debt. Other impairments (recoveries) and other losses (gains) include interest income associated with early and partial repayments of loans receivable and other losses or gains associated with non-depreciable assets including goodwill, DFLs, undeveloped land parcels, and loans receivable. Management believes that FFO as Adjusted provides a meaningful supplemental measurement of our FFO run-rate and is frequently used by analysts, investors, and other interested parties in the evaluation of our performance as a REIT. At the same time that Nareit created and defined its FFO measure for the REIT industry, it also recognized that “management of each of its member companies has the responsibility and authority to publish financial information that it regards as useful to the financial community.” We believe stockholders, potential investors, and financial analysts who review our operating performance are best served by an FFO run-rate earnings measure that includes certain other adjustments to net income (loss), in addition to adjustments made to arrive at the Nareit defined measure of FFO. FFO as Adjusted is used by management in analyzing our business and the performance of our properties and we believe it is important that stockholders, potential investors, and financial analysts understand this measure used by management. We use FFO as Adjusted to: (i) evaluate our performance in comparison with expected results and results of previous periods, relative to resource allocation decisions, (ii) evaluate the performance of our management, (iii) budget and forecast future results to assist in the allocation of resources, (iv) assess our performance as compared with similar real estate companies and the industry in general, and (v) evaluate how a specific potential investment will impact our future results. Other REITs or real estate companies may use different methodologies for calculating an adjusted FFO measure, and accordingly, our FFO as Adjusted may not be comparable to those reported by other REITs. For a reconciliation of net income (loss) to Nareit FFO and FFO as Adjusted and other relevant disclosure, refer to “Non-GAAP Financial Measures Reconciliations” below.

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Adjusted FFO (“AFFO”)

AFFO is defined as FFO as Adjusted after excluding the impact of the following: (i) amortization of stock-based compensation, (ii) amortization of deferred financing costs, net, (iii) straight-line rents, (iv) deferred income taxes, and (v) other AFFO adjustments which includes: (a) amortization of acquired market lease intangibles, net, (b) non-cash interest related to DFLs and lease incentive amortization (reduction of straight-line rents), (c) actuarial reserves for insurance claims that have been incurred but not reported, and (d) amortization of deferred revenues, excluding amounts amortized into rental income that are associated with tenant funded improvements owned/recognized by us and up-front cash payments made by tenants to reduce their contractual rents. Also, AFFO is computed after deducting recurring capital expenditures, including second generation leasing costs and second generation tenant and capital improvements, and includes adjustments to compute our share of AFFO from our unconsolidated joint ventures. More specifically, recurring capital expenditures, including second generation leasing costs and second generation tenant and capital improvements ("AFFO capital expenditures") excludes our share from unconsolidated joint ventures (reported in “other AFFO adjustments”). Adjustments for joint ventures are calculated to reflect our pro-rata share of both our consolidated and unconsolidated joint ventures. We reflect our share of AFFO for unconsolidated joint ventures by applying our actual ownership percentage for the period to the applicable reconciling items on an entity by entity basis. We reflect our share for consolidated joint ventures in which we do not own 100% of the equity by adjusting our AFFO to remove the third party ownership share of the applicable reconciling items based on actual ownership percentage for the applicable periods (reported in “other AFFO adjustments”). See FFO for further disclosure regarding our use of pro-rata share information and its limitations. Other REITs or real estate companies may use different methodologies for calculating AFFO, and accordingly, our AFFO may not be comparable to those reported by other REITs. Although our AFFO computation may not be comparable to that of other REITs, management believes AFFO provides a meaningful supplemental measure of our performance and is frequently used by analysts, investors, and other interested parties in the evaluation of our performance as a REIT. We believe AFFO is an alternative run-rate earnings measure that improves the understanding of our operating results among investors and makes comparisons with: (i) expected results, (ii) results of previous periods, and (iii) results among REITs more meaningful. AFFO does not represent cash generated from operating activities determined in accordance with GAAP and is not necessarily indicative of cash available to fund cash needs as it excludes the following items which generally flow through our cash flows from operating activities: (i) adjustments for changes in working capital or the actual timing of the payment of income or expense items that are accrued in the period, (ii) transaction-related costs, (iii) litigation settlement expenses, (iv) restructuring and severance-related charges, and (v) actual cash receipts from interest income recognized on loans receivable (in contrast to our AFFO adjustment to exclude non-cash interest and depreciation related to our investments in direct financing leases). Furthermore, AFFO is adjusted for recurring capital expenditures, which are generally not considered when determining cash flows from operations or liquidity. AFFO is a non-GAAP supplemental financial measure and should not be considered as an alternative to net income (loss) determined in accordance with GAAP. For a reconciliation of net income (loss) to AFFO and other relevant disclosure, refer to “Non-GAAP Financial Measures Reconciliations” below.

Comparison of the Three and Six Months Ended June 30, 2021 to the Three and Six Months Ended June 30, 2020

Overview

Three Months Ended June 30, 2021 and 2020

The following table summarizes results for the three months ended June 30, 2021 and 2020 (dollars in thousands):

	Three Months Ended June 30,
	2021		2020		Change
Net income (loss) applicable to common shares	$	275,993	$	51,131	$	224,862
Nareit FFO	149,671		182,367		(32,696)
FFO as Adjusted	217,242		214,713		2,529
AFFO	189,038		191,926		(2,888)

Net income (loss) applicable to common shares increased primarily as a result of the following:

•an increase in income (loss) from discontinued operations, primarily due to an increase in gain on sales of real estate and lower impairments of depreciable real estate, partially offset by a goodwill impairment charge related to our senior housing triple-net asset sales;

•NOI generated from our life science and medical office segments related to: (i) 2020 and 2021 acquisitions of real estate, (ii) development and redevelopment projects placed in service during 2020 and 2021, and (iii) new leasing activity during 2020 and 2021 (including the impact to straight-line rents);

•an increase in our share of net income from an unconsolidated joint venture owning 19 SHOP assets;

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•a reduction in interest expense, primarily as a result of senior unsecured notes repurchases and redemptions in 2021;

•an increase in interest income, primarily as a result of seller financing and the accelerated recognition of a mark-to-market discount resulting from prepayments on loans receivable; and

•a reduction in COVID-19 related expenses and increased rates for resident fees at our CCRCs.

The increase in net income (loss) applicable to common shares was partially offset by:

•an increase in loss on debt extinguishments related to our repurchase and redemption of certain outstanding senior notes in the second quarter of 2021;

•an increase in depreciation, primarily as a result of: (i) 2020 and 2021 acquisitions of real estate, (ii) accelerated depreciation related to the change in estimated useful lives on certain of our densification projects, and (iii) development and redevelopment projects placed into service during 2020 and 2021; and

•a reduction in other income, net as a result of a decline in government grant income received under the CARES Act.

Nareit FFO decreased primarily as a result of the aforementioned events impacting net income (loss) applicable to common shares, except for the following, which are excluded from Nareit FFO:

•net gain on sales of depreciable real estate;

•depreciation and amortization expense; and

•impairment charges related to depreciable real estate.

FFO as Adjusted increased primarily as a result of the aforementioned events impacting Nareit FFO, except for the following, which are excluded from FFO as Adjusted:

•the loss on debt extinguishment;

•goodwill impairment charge related to our senior housing triple-net asset sales; and

•the accelerated recognition of a mark-to-market discount resulting from prepayments on loans receivable.

AFFO decreased primarily as a result of the aforementioned events impacting FFO as Adjusted, except for the impact of straight-line rents, which is excluded from AFFO.

Six Months Ended June 30, 2021 and 2020

The following table summarizes results for the six months ended June 30, 2021 and 2020 (dollars in thousands):

	Six Months Ended June 30,
	2021		2020		Change
Net income (loss) applicable to common shares	$	419,336	$	328,786	$	90,550
Nareit FFO	189,905		353,917		(164,012)
FFO as Adjusted	432,635		441,727		(9,092)
AFFO	373,839		399,528		(25,689)

Net income (loss) applicable to common shares increased primarily as a result of the following:

•an increase in income (loss) from discontinued operations, primarily due to an increase in gain on sales of real estate and lower impairments of depreciable real estate, partially offset by a goodwill impairment charge related to our senior housing triple-net asset sales;

•NOI generated from our life science and medical office segments related to: (i) 2020 and 2021 acquisitions of real estate, (ii) development and redevelopment projects placed in service during 2020 and 2021, and (iii) new leasing activity during 2020 and 2021 (including the impact to straight-line rents);

•a reduction in operating expenses related to our CCRCs primarily as a result of the management termination fee paid to Brookdale in connection with transitioning management of 13 CCRCs to Life Care Services LLC (“LCS”) during the first quarter of 2020;

•an increase in our share of net income from an unconsolidated joint venture owning 19 SHOP assets;

•a reduction in interest expense, primarily as a result of senior unsecured notes repurchases and redemptions in 2021;

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•an increase in interest income, primarily as a result of seller financing and the accelerated recognition of a mark-to-market discount resulting from prepayments on loans receivable;

•a reduction in transaction costs, primarily as a result of costs associated with the transition of 13 CCRCs from Brookdale to LCS in the first quarter of 2020;

•a reduction in impairment charges related to depreciable real estate; and

•an increase in rates for resident fees at our CCRCs.

The increase in net income (loss) applicable to common shares was partially offset by:

•a reduction in other income, net as a result of: (i) a gain upon change of control related to the acquisition of the outstanding equity interest in 13 CCRCs from Brookdale during the first quarter of 2020, (ii) a gain on sale related to the sale of a hospital underlying a DFL during the first quarter of 2020, and (iii) a decline in government grant income received under the CARES Act;

•an increase in loss on debt extinguishments related to our repurchase and redemption of certain outstanding senior notes in the first and second quarters of 2021;

•an increase in depreciation, primarily as a result of: (i) 2020 and 2021 acquisitions of real estate, (ii) accelerated depreciation related to the change in estimated useful lives on certain of our densification projects, (iii) development and redevelopment projects placed into service during 2020 and 2021, and (iv) the above-mentioned acquisition of the outstanding equity interest and consolidation of 13 CCRCs from Brookdale during the first quarter of 2020; and

•a decrease in income tax benefit, primarily as a result of the tax benefits recognized in the first quarter of 2020 related to the above-mentioned acquisition of the outstanding equity interest in 13 CCRCs from Brookdale and the management termination fee expense fee paid to Brookdale in connection with transitioning management to LCS.

Nareit FFO decreased primarily as a result of the aforementioned events impacting net income (loss) applicable to common shares, except for the following, which are excluded from Nareit FFO:

•the gain upon change of control related to the acquisition of Brookdale’s interest in 13 CCRCs;

•net gain on sales of depreciable real estate;

•depreciation and amortization expense; and

•impairment charges related to depreciable real estate.

FFO as Adjusted decreased primarily as a result of the aforementioned events impacting Nareit FFO, except for the following, which are excluded from FFO as Adjusted:

•the loss on debt extinguishment;

•the management termination fee paid to Brookdale in connection with our acquisition of their interest in 13 CCRCs;

•net gain on sales of assets underlying DFLs;

•the transaction costs associated with transition of 13 CCRCs from Brookdale to LCS;

•goodwill impairment charge related to senior housing triple-net asset sales; and

•the accelerated recognition of a mark-to-market discount resulting from prepayments on loans receivable.

AFFO decreased primarily as a result of the aforementioned events impacting FFO as Adjusted, except for the impact of straight-line rents, which is excluded from AFFO.

Segment Analysis 

The following tables provide selected operating information for our Same-Store and total property portfolio for each of our reportable segments. For the three months ended June 30, 2021, our Same-Store consists of 375 properties representing properties acquired or placed in service and stabilized on or prior to April 1, 2020 and that remained in operations under a consistent reporting structure through June 30, 2021. For the six months ended June 30, 2021, our Same-Store consists of 360 properties representing properties acquired or placed in service and stabilized on or prior to January 1, 2020 and that remained in operations under a consistent reporting structure through June 30, 2021. Our total property portfolio consisted of 473 and 451 properties at June 30, 2021 and 2020, respectively.

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Life Science

The following table summarizes results at and for the three months ended June 30, 2021 and 2020 (dollars and square feet in thousands, except per square foot data):

	SS									Total Portfolio
	Three Months Ended June 30,									Three Months Ended June 30,
	2021			2020			Change			2021			2020			Change
Rental and related revenues	$	123,019		$	113,199		$	9,820		$	177,527		$	138,496		$	39,031
Healthpeak’s share of unconsolidated joint venture total revenues	—			—			—			1,412			—			1,412
Noncontrolling interests’ share of consolidated joint venture total revenues	(55)			(51)			(4)			(75)			(57)			(18)
Operating expenses	(27,678)			(26,812)			(866)			(40,724)			(34,205)			(6,519)
Healthpeak’s share of unconsolidated joint venture operating expenses	—			—			—			(428)			—			(428)
Noncontrolling interests’ share of consolidated joint venture operating expenses	15			17			(2)			21			18			3
Adjustments to NOI(1)	(4,845)			(2,150)			(2,695)			(12,366)			(2,779)			(9,587)
Adjusted NOI	$	90,456		$	84,203		$	6,253		125,367			101,473			23,894
Less: non-SS Adjusted NOI										(34,911)			(17,270)			(17,641)
SS Adjusted NOI										$	90,456		$	84,203		$	6,253
Adjusted NOI % change							7.4		%
Property count(2)	111			111						142			135
End of period occupancy	97.0		%	97.8		%				96.6		%	96.9		%
Average occupancy	97.3		%	96.7		%				96.8		%	95.9		%
Average occupied square feet	7,528			7,466						9,971			8,757
Average annual total revenues per occupied square foot(3)	$	63		$	59					$	67		$	62
Average annual base rent per occupied square foot(4)	$	50		$	47					$	53		$	49

_______________________________________

(1)Represents adjustments to NOI in accordance with our definition of Adjusted NOI. Refer to “Non-GAAP Financial Measures” above for definitions of NOI and Adjusted NOI.

(2)From our second quarter 2020 presentation of Same-Store, we removed one life science facility related to a significant tenant relocation.

(3)Average annual total revenues does not include non-cash revenue adjustments (i.e., straight-line rents, amortization of market lease intangibles, and deferred revenues).

(4)Base rent does not include tenant recoveries, additional rents in excess of floors and non-cash revenue adjustments (i.e., straight-line rents, amortization of market lease intangibles, and deferred revenues).

Same-Store Adjusted NOI increased primarily as a result of the following:

•annual rent escalations;

•new leasing activity; and

•mark-to-market lease renewals.

Total Portfolio Adjusted NOI increased primarily as a result of the aforementioned impacts to Same-Store and the following Non-Same-Store impacts:

•NOI from (i) increased occupancy in developments and redevelopments placed into service in 2020 and 2021 and (ii) acquisitions in 2020.

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The following table summarizes results at and for the six months ended June 30, 2021 and 2020 (dollars and square feet in thousands, except per square foot data):

	SS									Total Portfolio
	Six Months Ended June 30,									Six Months Ended June 30,
	2021			2020			Change			2021			2020			Change
Rental and related revenues	$	237,485		$	220,372		$	17,113		$	347,461		$	267,379		$	80,082
Healthpeak’s share of unconsolidated joint venture total revenues	—			—			—			2,749			—			2,749
Noncontrolling interests’ share of consolidated joint venture total revenues	(108)			(97)			(11)			(140)			(109)			(31)
Operating expenses	(53,998)			(51,621)			(2,377)			(80,185)			(64,406)			(15,779)
Healthpeak’s share of unconsolidated joint venture operating expenses	—			—			—			(853)			—			(853)
Noncontrolling interests’ share of consolidated joint venture operating expenses	30			31			(1)			41			35			6
Adjustments to NOI(1)	(8,635)			(6,691)			(1,944)			(24,176)			(7,059)			(17,117)
Adjusted NOI	$	174,774		$	161,994		$	12,780		244,897			195,840			49,057
Less: non-SS Adjusted NOI										(70,123)			(33,846)			(36,277)
SS Adjusted NOI										$	174,774		$	161,994		$	12,780
Adjusted NOI % change							7.9		%
Property count	109			109						142			135
End of period occupancy	96.9		%	97.8		%				96.6		%	96.9		%
Average occupancy	97.3		%	96.1		%				96.7		%	95.4		%
Average occupied square feet	7,426			7,340						9,890			8,405
Average annual total revenues per occupied square foot(2)	$	62		$	58					$	66		$	62
Average annual base rent per occupied square foot(3)	$	49		$	46					$	52		$	49

_______________________________________

(1)Represents adjustments to NOI in accordance with our definition of Adjusted NOI. Refer to “Non-GAAP Financial Measures” above for definitions of NOI and Adjusted NOI.

(2)Average annual total revenues does not include non-cash revenue adjustments (i.e., straight-line rents, amortization of market lease intangibles, and deferred revenues).

(3)Base rent does not include tenant recoveries, additional rents in excess of floors and non-cash revenue adjustments (i.e., straight-line rents, amortization of market lease intangibles, and deferred revenues).

Same-Store Adjusted NOI increased primarily as a result of the following:

•annual rent escalations;

•new leasing activity; and

•mark-to-market lease renewals.

Total Portfolio Adjusted NOI increased primarily as a result of the aforementioned impacts to Same-Store and the following Non-Same-Store impacts:

•NOI from (i) increased occupancy in developments and redevelopments placed into service in 2020 and 2021 and (ii) acquisitions in 2020.

53

Medical Office

The following table summarizes results at and for the three months ended June 30, 2021 and 2020 (dollars and square feet in thousands, except per square foot data):

	SS									Total Portfolio(1)
	Three Months Ended June 30,									Three Months Ended June 30,
	2021			2020			Change			2021			2020			Change
Rental and related revenues	$	137,202		$	131,240		$	5,962		$	163,115		$	149,694		$	13,421
Income from direct financing leases	2,180			2,150			30			2,180			2,150			30
Healthpeak’s share of unconsolidated joint venture total revenues	687			669			18			710			691			19
Noncontrolling interests’ share of consolidated joint venture total revenues	(8,483)			(8,052)			(431)			(8,825)			(8,347)			(478)
Operating expenses	(44,928)			(43,046)			(1,882)			(54,648)			(49,355)			(5,293)
Healthpeak’s share of unconsolidated joint venture operating expenses	(317)			(275)			(42)			(317)			(276)			(41)
Noncontrolling interests’ share of consolidated joint venture operating expenses	2,473			2,436			37			2,552			2,507			45
Adjustments to NOI(2)	(1,192)			(975)			(217)			(2,003)			(465)			(1,538)
Adjusted NOI	$	87,622		$	84,147		$	3,475		102,764			96,599			6,165
Less: non-SS Adjusted NOI										(15,142)			(12,452)			(2,690)
SS Adjusted NOI										$	87,622		$	84,147		$	3,475
Adjusted NOI % change							4.1		%
Property count(3)	249			249						297			279
End of period occupancy	92.0		%	92.4		%				89.9		%	91.3		%
Average occupancy	91.9		%	92.4		%				90.0		%	91.7		%
Average occupied square feet	18,447			18,540						20,862			20,352
Average annual total revenues per occupied square foot(4)	$	30		$	29					$	31		$	30
Average annual base rent per occupied square foot(5)	$	26		$	25					$	27		$	26

_______________________________________

(1)Total Portfolio includes results of operations from disposed properties through the disposition date.

(2)Represents adjustments to NOI in accordance with our definition of Adjusted NOI. Refer to “Non-GAAP Financial Measures” above for definitions of NOI and Adjusted NOI.

(3)From our second quarter 2020 presentation of Same-Store, we removed six MOBs that were sold and three MOBs that were classified as held for sale.

(4)Average annual total revenues does not include non-cash revenue adjustments (i.e., straight-line rents, amortization of market lease intangibles, DFL non-cash interest, and deferred revenues).

(5)Base rent does not include tenant recoveries, additional rents in excess of floors and non-cash revenue adjustments (i.e., straight-line rents, amortization of market lease intangibles, DFL non-cash interest, and deferred revenues).

Same-Store Adjusted NOI increased primarily as a result of the following:

•mark-to-market lease renewals;

•annual rent escalations; and

•higher parking income and percentage-based rents.

Total Portfolio Adjusted NOI increased primarily as a result of the aforementioned increases to Same-Store and the following Non-Same-Store impacts:

•increased NOI from our 2020 and 2021 acquisitions;

•increased occupancy in former redevelopment and development properties that have been placed into service; partially offset by

•decreased NOI from our 2020 and 2021 dispositions.

54

The following table summarizes results at and for the six months ended June 30, 2021 and 2020 (dollars and square feet in thousands, except per square foot data):

	SS									Total Portfolio(1)
	Six Months Ended June 30,									Six Months Ended June 30,
	2021			2020			Change			2021			2020			Change
Rental and related revenues	$	273,531		$	265,569		$	7,962		$	321,153		$	303,066		$	18,087
Income from direct financing leases	4,344			4,274			70			4,343			5,419			(1,076)
Healthpeak’s share of unconsolidated joint venture total revenues	1,380			1,341			39			1,425			1,386			39
Noncontrolling interests’ share of consolidated joint venture total revenues	(17,069)			(16,385)			(684)			(17,751)			(16,987)			(764)
Operating expenses	(88,799)			(87,260)			(1,539)			(105,769)			(100,049)			(5,720)
Healthpeak’s share of unconsolidated joint venture operating expenses	(610)			(550)			(60)			(611)			(551)			(60)
Noncontrolling interests’ share of consolidated joint venture operating expenses	4,907			4,962			(55)			5,056			5,107			(51)
Adjustments to NOI(2)	(2,873)			(2,420)			(453)			(3,926)			(1,459)			(2,467)
Adjusted NOI	$	174,811		$	169,531		$	5,280		203,920			195,932			7,988
Less: non-SS Adjusted NOI										(29,109)			(26,401)			(2,708)
SS Adjusted NOI										$	174,811		$	169,531		$	5,280
Adjusted NOI % change							3.1		%
Property count(3)	249			249						297			279
End of period occupancy	92.0		%	92.4		%				89.9		%	91.3		%
Average occupancy	92.0		%	92.3		%				90.2		%	91.7		%
Average occupied square feet	18,471			18,521						20,783			20,376
Average annual total revenues per occupied square foot(4)	$	30		$	29					$	31		$	30
Average annual base rent per occupied square foot(5)	$	26		$	25					$	26		$	26

_______________________________________

(1)Total Portfolio includes results of operations from disposed properties through the disposition date.

(2)Represents adjustments to NOI in accordance with our definition of Adjusted NOI. Refer to “Non-GAAP Financial Measures” above for definitions of NOI and Adjusted NOI.

(3)From our second quarter 2020 presentation of Same-Store, we removed six MOBs that were sold and three MOBs that were classified as held for sale.

(4)Average annual total revenues does not include non-cash revenue adjustments (i.e., straight-line rents, amortization of market lease intangibles, DFL non-cash interest, and deferred revenues).

(5)Base rent does not include tenant recoveries, additional rents in excess of floors and non-cash revenue adjustments (i.e., straight-line rents, amortization of market lease intangibles, DFL non-cash interest, and deferred revenues).

Same-Store Adjusted NOI increased primarily as a result of the following:

•mark-to-market lease renewals;

•annual rent escalations; and

•higher parking income and percentage-based rents.

Total Portfolio Adjusted NOI increased primarily as a result of the aforementioned increases to Same-Store and the following Non-Same-Store impacts:

•increased NOI from our 2020 and 2021 acquisitions;

•increased occupancy in former redevelopment and development properties that have been placed into service; partially offset by

•decreased NOI from our 2020 and 2021 dispositions.

55

Continuing Care Retirement Community

The following table summarizes results at and for the three months ended June 30, 2021 and 2020 (dollars in thousands, except per unit data):

	SS									Total Portfolio
	Three Months Ended June 30,									Three Months Ended June 30,
	2021			2020			Change			2021			2020			Change
Resident fees and services	$	117,308		$	113,926		$	3,382		$	117,308		$	113,926		$	3,382
Government grant income(1)	87			11,871			(11,784)			87			11,871			(11,784)
Healthpeak’s share of unconsolidated joint venture total revenues	—			—			—			2,415			4,781			(2,366)
Healthpeak’s share of unconsolidated joint venture government grant income	—			—			—			—			534			(534)
Operating expenses	(94,366)			(94,248)			(118)			(94,760)			(94,248)			(512)
Healthpeak’s share of unconsolidated joint venture operating expenses	—			—			—			(2,208)			(4,826)			2,618
Adjustments to NOI(2)	1,209			—			1,209			1,226			18			1,208
Adjusted NOI	$	24,238		$	31,549		$	(7,311)		24,068			32,056			(7,988)
Less: non-SS Adjusted NOI										170			(507)			677
SS Adjusted NOI										$	24,238		$	31,549		$	(7,311)
Adjusted NOI % change							(23.2)		%
Property count	15			15						15			17
Average occupancy	79.4		%	80.4		%				79.4		%	80.4		%
Average capacity (units)(3)	7,437			7,432						7,887			8,321
Average annual rent per unit	$	63,094		$	61,317					$	62,050		$	65,682

_______________________________________

(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 adjustments to NOI in accordance with our definition of Adjusted NOI. Refer to “Non-GAAP Financial Measures” above for definitions of NOI and Adjusted NOI.

(3)Represents average capacity as reported by the respective tenants or operators for the three-month period.

Same-Store Adjusted NOI and Total Portfolio Adjusted NOI decreased primarily as a result of the following:

•lower occupancy due to COVID-19; and

•decreased government grant income received under the CARES Act; partially offset by

•lower COVID-19 related expenses; and

•increased rates for resident fees.

56

The following table summarizes results at and for the six months ended June 30, 2021 and 2020 (dollars in thousands, except per unit data):

	SS									Total Portfolio
	Six Months Ended June 30,									Six Months Ended June 30,
	2021			2020			Change			2021			2020			Change
Resident fees and services	$	36,584		$	39,015		$	(2,431)		$	233,436		$	205,706		$	27,730
Government grant income(1)	143			1,733			(1,590)			1,397			11,871			(10,474)
Healthpeak’s share of unconsolidated joint venture total revenues	—			—			—			6,903			26,428			(19,525)
Healthpeak’s share of unconsolidated joint venture government grant income	—			—			—			199			534			(335)
Operating expenses	(26,408)			(28,021)			1,613			(185,939)			(250,730)			64,791
Healthpeak’s share of unconsolidated joint venture operating expenses	—			—			—			(6,953)			(22,863)			15,910
Adjustments to NOI(2)	—			—			—			1,246			91,579			(90,333)
Adjusted NOI	$	10,319		$	12,727		$	(2,408)		50,289			62,525			(12,236)
Less: non-SS Adjusted NOI										(39,970)			(49,798)			9,828
SS Adjusted NOI										$	10,319		$	12,727		$	(2,408)
Adjusted NOI % change							(18.9)		%
Property count	2			2						15			17
Average occupancy	75.5		%	83.7		%				79.0		%	83.2		%
Average capacity (units)(3)	6,312			6,312						8,105			8,321
Average annual rent per unit	$	69,552		$	74,174					$	61,532		$	65,430

_______________________________________

(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 adjustments to NOI in accordance with our definition of Adjusted NOI. Refer to “Non-GAAP Financial Measures” above for definitions of NOI and Adjusted NOI.

(3)Represents average capacity as reported by the respective tenants or operators for the six-month period.

Same-Store Adjusted NOI decreased primarily as a result of the following:

•lower occupancy due to COVID-19; and

•decreased government grant income received under the CARES Act; partially offset by

•lower COVID-19 related expenses; and

•increased rates for resident fees.

Total Portfolio Adjusted NOI decreased primarily as a result of the aforementioned decreases to Same-Store, which are also applicable to our properties not yet included in Same-Store.

57

Other Income and Expense Items

The following table summarizes the results of our other income and expense items for the three and six months ended June 30, 2021 and 2020 (in thousands):

	Three Months Ended June 30,						Six Months Ended June 30,
	2021		2020		Change		2021		2020		Change
Interest income	$	16,108	$	4,230	$	11,878	$	25,121	$	7,918	$	17,203
Interest expense	38,681		54,823		(16,142)		85,524		110,514		(24,990)
Depreciation and amortization	171,459		139,691		31,768		328,997		264,803		64,194
General and administrative	24,088		23,720		368		48,990		46,069		2,921
Transaction costs	619		373		246		1,417		14,936		(13,519)
Impairments and loan loss reserves (recoveries), net	931		6,837		(5,906)		4,173		17,944		(13,771)
Gain (loss) on sales of real estate, net	175,238		81,284		93,954		175,238		83,353		91,885
Gain (loss) on debt extinguishments	(60,865)		(25,824)		(35,041)		(225,157)		(24,991)		(200,166)
Other income (expense), net	1,734		17,415		(15,681)		3,934		228,068		(224,134)
Income tax benefit (expense)	763		(106)		869		755		29,762		(29,007)
Equity income (loss) from unconsolidated joint ventures	867		(17,735)		18,602		2,190		(28,881)		31,071
Income (loss) from discontinued operations	113,960		(5,292)		119,252		383,968		130,116		253,852
Noncontrolling interests’ share in continuing operations	(3,535)		(3,486)		(49)		(6,841)		(6,949)		108
Noncontrolling interests’ share in discontinued operations	(2,210)		(57)		(2,153)		(2,539)		(54)		(2,485)

Interest income

Interest income increased for the three and six months ended June 30, 2021 primarily as a result of seller financing and the accelerated recognition of a mark-to-market discount resulting from prepayments on loans receivable.

Interest expense

Interest expense decreased for the three and six months ended June 30, 2021 as a result of senior unsecured notes repurchases and redemptions in the first and second quarters of 2021.

Depreciation and amortization expense

Depreciation and amortization expense increased for the three and six months ended June 30, 2021 primarily as a result of: (i) assets acquired during 2020 and 2021, (ii) the acquisition of Brookdale’s interest in and consolidation of 13 CCRCs during the first quarter of 2020, (iii) development and redevelopment projects placed into service during 2020 and 2021, and (iv) accelerated depreciation related to the change in estimated useful lives on certain of our densification projects. The increase was partially offset by dispositions of real estate throughout 2020 and 2021.

General and administrative expense

General and administrative expenses increased for the six months ended June 30, 2021 primarily as a result of increased restructuring and severance related charges.

Transaction Costs

Transaction costs decreased for the six months ended June 30, 2021 primarily as a result of costs associated with the transition of 13 CCRCs from Brookdale to LCS in January 2020.

58

Impairments and loan loss reserves (recoveries), net

The impairment charges recognized in each period vary depending on facts and circumstances related to each asset and are impacted by negotiations with potential buyers, current operations of the assets, and other factors. Impairments and loan loss reserves (recoveries), net decreased for the three and six months ended June 30, 2021 primarily as a result of: (i) no assets being impaired under the held for sale impairment model, other than the impairment charge on one asset classified as discontinued operations, and (ii) a decrease in loan loss reserves under the current expected credit losses model, partially offset by impairment charges on loans classified as held for sale. The reduction in loan loss reserves during the three months ended June 30, 2021 is primarily due to: (i) principal repayments on seller financing during the second quarter of 2021, (ii) loans receivable transferred from held for investment to held for sale during the three and six months ended June 30, 2021, (iii) the sale of two mezzanine loans as part of the Discovery SHOP Portfolio, and (iv) a more positive economic outlook on COVID-19. The reduction in loan loss reserves during the six months ended June 30, 2021 is partially offset by new seller financing in the first quarter of 2021.

Gain (loss) on sales of real estate, net

Gain (loss) on sales of real estate, net increased during the three and six months ended June 30, 2021 primarily as a result of the sale of four MOBs for $21 million and one hospital for $226 million during the three and six months ended June 30, 2021, compared to the sale of three MOBs for $106 million during the three and six months ended June 30, 2020.

Gain (loss) on debt extinguishments

Refer to Note 10 to the Consolidated Financial Statements for information regarding senior unsecured note repurchases and redemptions and the associated loss on debt extinguishment recognized.

Other income (expense), net

Other income (expense), net decreased for the three months ended June 30, 2021 primarily as a result of a decline in government grant income received under the CARES Act.

Other income (expense), net decreased for the six months ended June 30, 2021 primarily as a result of: (i) a gain upon change of control related to the acquisition of the outstanding equity interest in 13 CCRCs from Brookdale during the first quarter of 2020, (ii) a gain on sale related to the sale of a hospital underlying a DFL during the first quarter of 2020, and (iii) a decline in government grant income received under the CARES Act.

Income tax benefit (expense)

Income tax benefit decreased for the six months ended June 30, 2021 primarily as result of the tax benefits recognized in the first quarter of 2020 related to the following: (i) the purchase of Brookdale’s interest in 13 of the 15 communities in the CCRC JV, including the management termination fee expense paid to Brookdale in connection with transitioning management of 13 CCRCs to LCS, and (ii) the extension of the net operating loss carryback period provided by the CARES Act.

Equity income (loss) from unconsolidated joint ventures

Equity income from unconsolidated joint ventures increased for the three and six months ended June 30, 2021 as a result of a decrease in amortization expense due to fully amortized intangible assets related to an unconsolidated joint venture owning 19 SHOP assets. The increase in equity income from unconsolidated joint ventures for the six months ended June 30, 2021 was partially offset by our share of a gain on sale of one asset in an unconsolidated joint venture during the first quarter of 2020.

Income (loss) from discontinued operations

Income from discontinued operations increased for the three and six months ended June 30, 2021 primarily as a result of: (i) increased gain on sales of real estate from the disposal of multiple senior housing portfolios during 2021; (ii) decreased depreciation and amortization expense due to assets being disposed of or classified as held for sale throughout 2020 and assets that were fully depreciated in 2020; (iii) decreased impairments of depreciable real estate as a result of fewer assets being impaired under the held for sale impairment model, and (iv) decreased expenses and increased occupancy related to a decline in COVID-19 cases. The increase in income (loss) from discontinued operations during the three and six months ended June 30, 2021 was partially offset by decreased NOI from dispositions of real estate during 2020 and 2021. The increase in income (loss) from discontinued operations during the three months ended June 30, 2021 was further offset by a decrease in government grant income received under the CARES Act.

59

Liquidity and Capital Resources

We anticipate that our cash flow from operations, available cash balances and cash from our various financing activities will be adequate for at least the next 12 months for purposes of: (i) funding recurring operating expenses; (ii) meeting debt service requirements; and (iii) satisfying our obligations to make distributions to our stockholders and non-controlling interest members. Distributions were made using a combination of cash flows from operations, funds available under our bank line of credit and commercial paper program, proceeds from the sale of properties, and other sources of cash available to us. 

Our principal investing liquidity needs for the next 12 months are to:

•fund capital expenditures, including tenant improvements and leasing costs; and

•fund future acquisition, transactional and development and redevelopment activities.

We anticipate satisfying these future investing needs using one or more of the following:

•cash flow from operations;

•sale of, or exchange of ownership interests in, properties or other investments;

•borrowings under our bank line of credit and commercial paper program;

•issuance of additional debt, including unsecured notes, term loans and mortgage debt; and/or

•issuance of common or preferred stock or its equivalent.

Our ability to access the capital markets impacts our cost of capital and ability to refinance maturing indebtedness, as well as our ability to fund future acquisitions and development through the issuance of additional securities or secured debt. Credit ratings impact our ability to access capital and directly impact our cost of capital as well. For example, our bank line of credit and term loan accrue interest at a rate per annum equal to LIBOR plus a margin that depends upon the credit ratings of our senior unsecured long-term debt. We also pay a facility fee on the entire revolving commitment that depends upon our credit ratings. As of August 2, 2021, we had long-term credit ratings of Baa1 from Moody’s and BBB+ from S&P Global and Fitch, and short-term credit ratings of P-2, A-2, and F2 from Moody’s, S&P Global, and Fitch, respectively.

A downgrade in credit ratings by Moody’s, S&P Global, and Fitch may have a negative impact on the interest rates and facility fees for our bank line of credit and term loan and may negatively impact the pricing of notes issued under our commercial paper program and senior unsecured notes. While a downgrade in our credit ratings would adversely impact our cost of borrowing, we believe we would continue to have access to the unsecured debt markets, and we could also seek to enter into one or more secured debt financings, issue additional securities, including under our 2020 ATM Program (as defined below), or dispose of certain assets to fund future operating costs, capital expenditures, or acquisitions, although no assurances can be made in this regard. Refer to “COVID-19 Update” above for a more comprehensive discussion of the potential impact of COVID-19 on our business.

Cash Flow Summary

The following summary discussion of our cash flows is based on the Consolidated Statements of Cash Flows and is not meant to be an all-inclusive discussion of the changes in our cash flows for the periods presented below.

The following table sets forth changes in cash flows (in thousands):

	Six Months Ended June 30,
	2021		2020		Change
Net cash provided by (used in) operating activities	$	359,594	$	319,823	$	39,771
Net cash provided by (used in) investing activities	1,712,296		(535,270)		2,247,566
Net cash provided by (used in) financing activities	(2,009,272)		867,584		(2,876,856)

Operating Cash Flows

The increase in operating cash flow is primarily the result of an increase in income related to: (i) 2020 and 2021 acquisitions, (ii) annual rent increases, (iii) new leasing activity, and (iv) developments and redevelopments placed in service during 2020 and 2021. The increase in operating cash flow is partially offset by a decrease in income related to assets sold during 2020 and 2021. Our cash flow from operations is dependent upon the occupancy levels of our buildings, rental rates on leases, our tenants’ performance on their lease obligations, the level of operating expenses, and other factors.

60

Investing Cash Flows

The following are significant investing activities for the six months ended June 30, 2021:

•made investments of $842 million primarily related to the acquisition, development, and redevelopment of real estate and funding of new and existing loans; and

•received net proceeds of $2.6 billion primarily from sales of real estate assets and repayments on loans receivable.

The following are significant investing activities for the six months ended June 30, 2020:

•made investments of $1.2 billion primarily related to the acquisition, development, and redevelopment of real estate and funding of new and existing loans; and

•received net proceeds of $662 million primarily from sales of real estate assets, repayments on loans receivable, and the sale of a hospital under a DFL.

Financing Cash Flows

The following are significant financing activities for the six months ended June 30, 2021:

•made net borrowings of $590 million under our bank line of credit and commercial paper program;

•made net repayments of $2.2 billion under our senior unsecured notes (including debt extinguishment costs) and mortgage debt; and

•paid cash dividends on common stock of $326 million.

The following are significant financing activities for the six months ended June 30, 2020:

•made net borrowings of $214 million under our bank line of credit, commercial paper program, senior unsecured notes (including debt extinguishment costs) and mortgage debt;

•issued common stock of $1.1 billion; and

•paid cash dividends on common stock of $388 million.

Discontinued Operations

Operating, investing, and financing cash flows in our Consolidated Statements of Cash Flows are reported inclusive of both cash flows from continuing operations and cash flows from discontinued operations. Certain significant cash flows from discontinued operations are disclosed in Note 15 to the Consolidated Financial Statements. The absence of future cash flows from discontinued operations is not expected to significantly impact our liquidity, as the proceeds from senior housing triple-net and SHOP dispositions are expected to be used to pay down debt and invest in additional real estate in our other business lines. Additionally, we have multiple other sources of liquidity that can be utilized in the future, as needed. Refer to the Liquidity and Capital Resources section above for additional information regarding our liquidity.

Debt

In January 2021, we repurchased $112 million aggregate principal amount of our 4.25% senior unsecured notes due 2023, $201 million aggregate principal amount of our 4.20% senior unsecured notes due 2024, and $469 million aggregate principal amount of our 3.88% senior unsecured notes due 2024.

In February 2021, we used optional redemption provisions to redeem the remaining $188 million of our 4.25% senior unsecured notes due 2023, $149 million of our 4.20% senior unsecured notes due 2024, and $331 million of our 3.88% senior unsecured notes due 2024.

In April 2021, in conjunction with the acquisition of the MOB Portfolio, we issued $142 million of secured mortgage debt. Additionally, we executed two interest rate cap agreements on the mortgage debt.

In May 2021, we repurchased $252 million aggregate principal amount of our 3.40% senior unsecured notes due 2025 and $298 million aggregate principal amount of our 4.00% senior unsecured notes due 2025.

In July 2021, we completed our inaugural green bond offering, issuing $450 million aggregate principal amount of 1.35% senior unsecured notes due 2027.

In July 2021, we repaid the $250 million outstanding balance on the 2019 Term Loan.

See Note 10 to the Consolidated Financial Statements for additional information about our outstanding debt.

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Approximately 78% and 96% of our consolidated debt, excluding debt classified as liabilities related to assets held for sale and discontinued operations, net, was fixed rate debt as of June 30, 2021 and 2020, respectively. At June 30, 2021, our fixed rate debt and variable rate debt had weighted average interest rates of 3.75% and 0.73%, respectively. At June 30, 2020, our fixed rate debt and variable rate debt had weighted average interest rates of 3.86% and 1.18%, respectively. As of June 30, 2021 and 2020, we had zero and $41 million, respectively, of variable rate debt swapped to fixed through interest rate swaps. As of June 30, 2021 and 2020, we had $142 million and zero, respectively, of variable rate debt subject to interest rate cap agreements. For a more detailed discussion of our interest rate risk, see “Quantitative and Qualitative Disclosures About Market Risk” in Item 3 below.

Equity

At June 30, 2021, we had 539 million shares of common stock outstanding, equity totaled $7.43 billion, and our equity securities had a market value of $18.19 billion.

At June 30, 2021, non-managing members held an aggregate of five million units in seven limited liability companies (“DownREITs”) for which we are the managing member. The DownREIT units are exchangeable for an amount of cash approximating the then-current market value of shares of our common stock or, at our option, shares of our common stock (subject to certain adjustments, such as stock splits and reclassifications). At June 30, 2021, the outstanding DownREIT units were convertible into approximately seven million shares of our common stock.

At-The-Market Program

In February 2020, we terminated our previous at-the-market equity offering program and concurrently established a new at-the-market equity offering program (as amended from time to time, the “2020 ATM Program”). In May 2021, we amended the 2020 ATM Program to increase the size of the program from $1.25 billion to $1.50 billion. In addition to the issuance and sale of shares of our common stock, we may also enter into one or more forward sales agreements with sales agents for the sale of our shares of common stock under our 2020 ATM Program.

During the three and six months ended June 30, 2021, no shares were settled under ATM forward contracts.

During the three and six months ended June 30, 2021, we did not issue any shares of our common stock under our 2020 ATM Program.

At June 30, 2021, $1.50 billion of our common stock remained available for sale under the 2020 ATM Program. Actual future sales of our common stock will depend upon a variety of factors, including but not limited to market conditions, the trading price of our common stock, and our capital needs. We have no obligation to sell any of the remaining shares under our 2020 ATM Program.

See Note 12 to the Consolidated Financial Statements for additional information about our 2020 ATM Program.

Shelf Registration

In May 2021, we filed a prospectus with the SEC as part of a registration statement on Form S-3, using an automatic shelf registration process. This shelf registration statement expires on May 13, 2024 and at or prior to such time, we expect to file a new shelf registration statement. Under the “shelf” process, we may sell any combination of the securities described in the prospectus through one or more offerings. The securities described in the prospectus include common stock, preferred stock, depositary shares, debt securities, and warrants.

Contractual Obligations and Off-Balance Sheet Arrangements

Our commitments, which are primarily related to development and redevelopment projects and tenant improvements, increased by $41 million, to $347 million at June 30, 2021, when compared to December 31, 2020, primarily as a result of increased commitments on existing projects and new projects started during the first half of 2021.

Our commitments to fund senior housing redevelopment and capital expenditures increased by $50 million, to $61 million at June 30, 2021, when compared to December 31, 2020, primarily as a result of a commitment to finance additional debt for capital expenditures on the Sunrise Senior Housing Portfolio sold during the six months ended June 30, 2021.

Our commitments related to debt have materially changed since December 31, 2020 as a result of issuances of securities under our commercial paper program, the repurchase and redemption of senior unsecured notes in January, February and May 2021, repayments on mortgage debt, the issuance of $450 million 1.35% senior unsecured notes due 2027 in July 2021, and the repayment of our 2019 Term Loan in July 2021. As of June 30, 2021, we had $720 million outstanding under our commercial paper program. See Note 10 to the Consolidated Financial Statements for additional information about our debt commitments.

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There have been no other material changes, outside of the ordinary course of business, to these contractual obligations during the six months ended June 30, 2021.

We own interests in certain unconsolidated joint ventures as described in Note 8 to the Consolidated Financial Statements. Except in limited circumstances, our risk of loss is limited to our investment in the joint ventures. We have no other material off-balance sheet arrangements that we expect would materially affect our liquidity and capital resources except for commitments included in our Annual Report on Form 10-K for the year ended December 31, 2020 in “Contractual Obligations” under “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations.”

Non-GAAP Financial Measures Reconciliations

The following is a reconciliation from net income (loss) applicable to common shares, the most directly comparable financial measure calculated and presented in accordance with GAAP, to Nareit FFO, FFO as Adjusted, and AFFO (in thousands, except per share data):

	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
Net income (loss) applicable to common shares	$	275,993	$	51,131	$	419,336	$	328,786
Real estate related depreciation and amortization(1)	171,459		178,488		328,997		367,764
Healthpeak’s share of real estate related depreciation and amortization from unconsolidated joint ventures	2,869		25,618		7,322		55,228
Noncontrolling interests’ share of real estate related depreciation and amortization	(4,923)		(4,980)		(9,809)		(10,023)
Other real estate-related depreciation and amortization	—		891		—		2,128
Loss (gain) on sales of depreciable real estate, net(1)	(297,476)		(82,863)		(557,138)		(247,732)
Healthpeak’s share of loss (gain) on sales of depreciable real estate, net, from unconsolidated joint ventures	(5,866)		(1,519)		(5,866)		(9,248)
Noncontrolling interests’ share of gain (loss) on sales of depreciable real estate, net	2,179		(3)		2,179		(3)
Loss (gain) upon change of control, net(2)	—		(2,528)		(1,042)		(169,962)
Taxes associated with real estate dispositions	1,693		335		2,183		(11,540)
Impairments (recoveries) of depreciable real estate, net	3,743		17,797		3,743		48,519
Nareit FFO applicable to common shares	149,671		182,367		189,905		353,917
Distributions on dilutive convertible units and other	—		—		—		3,501
Diluted Nareit FFO applicable to common shares	$	149,671	$	182,367	$	189,905	$	357,418
Weighted average shares outstanding - diluted Nareit FFO	539,193		538,517		539,081		529,009
Impact of adjustments to Nareit FFO:
Transaction-related items(3)	$	1,265	$	685	$	5,379	$	93,064
Other impairments (recoveries) and other losses (gains), net(4)	1,845		6,291		5,087		(27,015)
Restructuring and severance related charges	—		—		2,463		—
Loss (gain) on debt extinguishments	60,865		25,824		225,157		24,991
Litigation costs (recoveries)	—		100		—		206
Casualty-related charges (recoveries), net	3,596		—		4,644		—
Foreign currency remeasurement losses (gains)	—		143		—		153
Tax rate legislation impact(5)	—		(697)		—		(3,589)
Total adjustments	$	67,571	$	32,346	$	242,730	$	87,810
FFO as Adjusted applicable to common shares	$	217,242	$	214,713	$	432,635	$	441,727
Distributions on dilutive convertible units and other	2,144		1,834		4,067		3,390
Diluted FFO as Adjusted applicable to common shares	$	219,386	$	216,547	$	436,702	$	445,117
Weighted average shares outstanding - diluted FFO as Adjusted	546,519		544,018		546,407		529,009

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	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
FFO as Adjusted applicable to common shares	$	217,242	$	214,713	$	432,635	$	441,727
Amortization of stock-based compensation	5,095		4,984		9,459		8,972
Amortization of deferred financing costs	2,121		2,534		4,334		5,116
Straight-line rents	(6,201)		(8,316)		(15,336)		(14,544)
AFFO capital expenditures	(22,422)		(18,781)		(43,132)		(40,572)
Deferred income taxes	(2,771)		(6,686)		(4,493)		(1,899)
Other AFFO adjustments	(4,026)		3,478		(9,628)		728
AFFO applicable to common shares	189,038		191,926		373,839		399,528
Distributions on dilutive convertible units and other	1,541		1,864		2,862		3,501
Diluted AFFO applicable to common shares	$	190,579	$	193,790	$	376,701	$	403,029
Weighted average shares outstanding - diluted AFFO	544,694		544,018		544,582		529,009

	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
Diluted earnings per common share	$	0.51	$	0.09	$	0.78	$	0.63
Depreciation and amortization	0.32		0.37		0.60		0.79
Loss (gain) on sales of depreciable real estate, net	(0.56)		(0.15)		(1.04)		(0.49)
Loss (gain) upon change of control, net(2)	—		0.00		0.00		(0.32)
Taxes associated with real estate dispositions	0.00		0.00		0.00		(0.02)
Impairments (recoveries) of depreciable real estate, net	0.01		0.03		0.01		0.09
Diluted Nareit FFO per common share	$	0.28	$	0.34	$	0.35	$	0.68
Transaction-related items(3)	0.00		0.00		0.01		0.18
Other impairments (recoveries) and other losses (gains), net(4)	0.00		0.01		0.01		(0.06)
Restructuring and severance related charges	—		—		0.00		—
Loss (gain) on debt extinguishments	0.11		0.05		0.42		0.05
Litigation costs (recoveries)	—		0.00		—		0.00
Casualty-related charges (recoveries), net	0.01		—		0.01		—
Foreign currency remeasurement losses (gains)	—		0.00		—		0.00
Tax rate legislation impact(5)	—		0.00		—		(0.01)
Diluted FFO as Adjusted per common share	$	0.40	$	0.40	$	0.80	$	0.84

_______________________________________

(1)This amount can be reconciled by combining the balances from the corresponding line of the Consolidated Statements of Operations and the detailed financial information for discontinued operations in Note 5 to the Consolidated Financial Statements.

(2)For the six months ended June 30, 2020, includes a $170 million gain upon consolidation of 13 continuing care retirement communities ("CCRCs") in which we acquired Brookdale's interest and began consolidating during the first quarter of 2020. Gains and losses upon change of control are included in other income (expense), net in the Consolidated Statements of Operations.

(3)For the six months ended June 30, 2020, includes the termination fee and transition fee expenses related to terminating the management agreements with Brookdale for 13 CCRCs and transitioning those communities to Life Care Services, LLC, partially offset by the tax benefit recognized related to those expenses. The expenses related to terminating management agreements are included in operating expenses in the Consolidated Statements of Operations.

(4)For the three and six months ended June 30, 2021, includes a $7 million goodwill impairment charge in connection with our senior housing triple-net asset sales which is reported in income (loss) from discontinued operations in the Consolidated Statements of Operations and $6 million of accelerated recognition of a mark-to-market discount, less loan fees, resulting from prepayments on loans receivable which is included in interest income in the Consolidated Statements of Operations. For the six months ended June 30, 2020, includes a $42 million gain on sale of a hospital that was in a direct financing lease ("DFL") which is included in other income (expense), net in the Consolidated Statements of Operations. The remaining activity for the three and six months ended June 30, 2021 and 2020 includes reserves for loan losses and land impairments recognized in impairments and loan loss reserves (recoveries), net in the Consolidated Statements of Operations.

(5)For the three and six months ended June 30, 2020, represents the tax benefit from the CARES Act, which extended the net operating loss carryback period to five years.

For a reconciliation of Adjusted NOI to net income (loss), refer to Note 14 to the Consolidated Financial Statements. For a reconciliation of Same-Store Adjusted NOI to total portfolio Adjusted NOI by segment, refer to the analysis of each segment in “Results of Operations” above.

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Critical Accounting Policies and Recent Accounting Pronouncements

The preparation of financial statements in conformity with U.S. GAAP requires our management to use judgment in the application of accounting policies, including making estimates and assumptions. We base estimates on the best information available to us at the time, our experience and on various other assumptions believed to be reasonable under the circumstances. These estimates affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expenses during the reporting periods. If our judgment or interpretation of the facts and circumstances relating to various transactions or other matters had been different, it is possible that different accounting would have been applied, resulting in a different presentation of our consolidated financial statements. From time to time, we re-evaluate our estimates and assumptions. In the event estimates or assumptions prove to be different from actual results, adjustments are made in subsequent periods to reflect more current estimates and assumptions about matters that are inherently uncertain. A summary of our critical accounting policies is included in our Annual Report on Form 10-K for the year ended December 31, 2020 in “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations” and Note 2 to the Consolidated Financial Statements. There have been no significant changes to our critical accounting policies during the three and six months ended June 30, 2021.

Item 3.  Quantitative and Qualitative Disclosures About Market Risk

We are exposed to various market risks, including the potential loss arising from adverse changes in interest rates. We use derivative and other financial instruments in the normal course of business to mitigate interest rate risk. We do not use derivative financial instruments for speculative or trading purposes. Derivatives are recorded on the consolidated balance sheets at fair value (see Note 18 to the Consolidated Financial Statements).

Interest Rate Risk. At June 30, 2021, our exposure to interest rate risk is primarily on our variable rate debt. At June 30, 2021, $142 million of our variable-rate debt was subject to interest rate cap agreements. The interest rate caps are non-designated hedges and manage our exposure to variable cash flows on certain mortgage debt borrowings by limiting interest rates. At June 30, 2021, both the fair value and carrying value of the interest rate caps were $0.2 million.

Our remaining variable rate debt at June 30, 2021 was comprised of our bank line of credit, commercial paper program, our term loan, and certain of our mortgage debt. In July 2021, we repaid the term loan in full. Interest rate fluctuations will generally not affect our future earnings or cash flows on our fixed rate debt and assets until their maturity or earlier prepayment and refinancing. If interest rates have risen at the time we seek to refinance our fixed rate debt, whether at maturity or otherwise, our future earnings and cash flows could be adversely affected by additional borrowing costs. Conversely, lower interest rates at the time of refinancing may reduce our overall borrowing costs. However, interest rate changes will affect the fair value of our fixed rate instruments. At June 30, 2021, a one percentage point increase or decrease in interest rates would change the fair value of our fixed rate debt by approximately $284 million and $295 million, respectively, and would not materially impact earnings or cash flows. Conversely, changes in interest rates on variable rate debt and investments would change our future earnings and cash flows, but not materially impact the fair value of those instruments. Assuming a one percentage point change in the interest rate related to our variable-rate debt and variable-rate investments, and assuming no other changes in the outstanding balance at June 30, 2021, our annual interest expense would change by up to approximately $11 million.

Market Risk.  We have investments in marketable debt securities classified as held-to-maturity because we have the positive intent and ability to hold the securities to maturity. Held-to-maturity securities are recorded at amortized cost and adjusted for the amortization of premiums and discounts through maturity. We consider a variety of factors in evaluating an other-than-temporary decline in value, such as: the length of time and the extent to which the market value has been less than our current adjusted carrying value; the issuer’s financial condition, capital strength, and near-term prospects; any recent events specific to that issuer and economic conditions of its industry; and our investment horizon in relationship to an anticipated near-term recovery in the market value, if any. At June 30, 2021, both the fair value and carrying value of marketable debt securities was $21 million.

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Item 4.  Controls and Procedures

Disclosure Controls and Procedures.  We maintain disclosure controls and procedures that are designed to ensure that information required to be disclosed in our reports under the Exchange Act is recorded, processed, summarized, and reported within the time periods specified in the SEC’s rules and forms and that such information is accumulated and communicated to our management, including our Principal Executive Officer and Principal Financial Officer, to allow for timely decisions regarding required disclosure. In designing and evaluating the disclosure controls and procedures, management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives, and management is required to apply its judgment in evaluating the cost-benefit relationship of possible controls and procedures.

As required by Rules 13a-15(b) and 15d-15(b) of the Exchange Act, we carried out an evaluation, under the supervision and with the participation of our management, including our Principal Executive Officer and Principal Financial Officer, of the effectiveness of the design and operation of our disclosure controls and procedures as of June 30, 2021. Based upon that evaluation, our Principal Executive Officer and Principal Financial Officer concluded that our disclosure controls and procedures were effective at the reasonable assurance level as of June 30, 2021.

Changes in Internal Control Over Financial Reporting.  There were no changes in our internal control over financial reporting (as such term is defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) during the fiscal quarter to which this report relates that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

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PART II. OTHER INFORMATION

Item 1. Legal Proceedings

See the “Legal Proceedings” section of Note 11 to the Consolidated Financial Statements for information regarding legal proceedings, which information is incorporated by reference in this Item 1.

Item 1A.  Risk Factors

There are no material changes to the risk factors previously disclosed in Part I, Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2020.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

(a)

None.

(b)

None.

(c)

The following table sets forth information with respect to purchases of our common stock made by us or on our behalf during the three months ended June 30, 2021.

Period Covered	Total Number Of Shares Purchased(1)	Average Price Paid Per Share		Total Number Of Shares (Or Units) Purchased As Part Of Publicly Announced Plans Or Programs	Maximum Number (Or Approximate Dollar Value) Of Shares (Or Units) That May Yet Be Purchased Under The Plans Or Programs
April 1-30, 2021	249	$	32.28	—	—
May 1-31, 2021	9,068	33.07		—	—
June 1-30, 2021	199	33.38		—	—
Total	9,516	$	33.06	—	—

_______________________________________

(1)Represents shares of our common stock withheld under our equity incentive plans to offset tax withholding obligations that occur upon vesting of restricted shares. The value of the shares withheld is based on the closing price of our common stock on the last trading day prior to the date the relevant transaction occurred.

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Item 6. Exhibits

3.1	Articles of Restatement of Healthpeak Properties, Inc. (formerly HCP, Inc.) dated June 1, 2012, as supplemented by the Articles Supplementary, dated July 31, 2017, and as amended by the Articles of Amendment, dated October 30, 2019 (incorporated herein by reference to Exhibit 3.1 to Healthpeak’s Annual Report on Form 10-K filed February 13, 2020).
3.2	Articles of Amendment to Articles of Restatement of Healthpeak Properties, Inc. (formerly HCP, Inc.), dated October 30, 2019 (incorporated herein by reference to Exhibit 3.1 to Healthpeak’s Current Report on Form 8-K filed October 30, 2019).
3.3	Sixth Amended and Restated Bylaws of Healthpeak Properties, Inc., dated October 30, 2019 (incorporated herein by reference to Exhibit 3.2 to Healthpeak’s Current Report on Form 8-K filed October 30, 2019).
4.1	Eleventh Supplemental Indenture, dated July 12, 2021, between Healthpeak Properties, Inc. and The Bank of New York Mellon Trust Company, N.A., as trustee (incorporated herein by reference to Exhibit 4.1 to Healthpeak’s Current Report on Form 8-K filed July 12, 2021).
4.2	Form of 1.350% Senior Notes due 2027 (included in Exhibit 4.1).
10.1*	Amendment No. 1 to At-the-Market Equity Offering Sales Agreement, dated May 13, 2021, among Healthpeak and the sales agents, forward sellers and forward purchasers referred to therein.
31.1*	Certification by Thomas M. Herzog, Healthpeak’s Principal Executive Officer, Pursuant to Securities Exchange Act Rule 13a-14(a).
31.2*	Certification by Peter A. Scott, Healthpeak’s Principal Financial Officer, Pursuant to Securities Exchange Act Rule 13a-14(a).
32.1**	Certification by Thomas M. Herzog, Healthpeak’s Principal Executive Officer, Pursuant to Securities Exchange Act Rule 13a-14(b) and 18 U.S.C. Section 1350.
32.2**	Certification by Peter A. Scott, Healthpeak’s Principal Financial Officer, Pursuant to Securities Exchange Act Rule 13a-14(b) and 18 U.S.C. Section 1350.
101.INS*	XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.
101.SCH*	XBRL Taxonomy Extension Schema Document.
101.CAL*	XBRL Taxonomy Extension Calculation Linkbase Document.
101.DEF*	XBRL Taxonomy Extension Definition Linkbase Document.
101.LAB*	XBRL Taxonomy Extension Labels Linkbase Document.
101.PRE*	XBRL Taxonomy Extension Presentation Linkbase Document.
104	Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101).

_______________________________________

*       Filed herewith.

**     Furnished herewith. 

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

Date: August 4, 2021	Healthpeak Properties, Inc.
	(Registrant)
	/s/ THOMAS M. HERZOG
	Thomas M. Herzog
	Chief Executive Officer
	(Principal Executive Officer)
	/s/ PETER A. SCOTT
	Peter A. Scott
	Chief Financial Officer
	(Principal Financial Officer)
	/s/ SHAWN G. JOHNSTON
	Shawn G. Johnston
	Executive Vice President and
	Chief Accounting Officer
	(Principal Accounting Officer)

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EX-10.1

EXECUTION VERSION

HEALTHPEAK PROPERTIES, INC.

Common Stock
($1.00 par value)

AMENDMENT NO. 1 TO AT-THE-MARKET EQUITY OFFERINGSALES AGREEMENT

May 13, 2021

J.P. Morgan Securities LLC

Barclays Capital Inc.

BofA Securities, Inc.

Credit Agricole Securities (USA) Inc.

Credit Suisse Securities (USA) LLC

Goldman Sachs & Co. LLC

Mizuho Securities USA LLC

Morgan Stanley & Co. LLC

RBC Capital Markets, LLC

Scotia Capital (USA) Inc.

Wells Fargo Securities, LLC

As Agents

JPMorgan Chase Bank, National Association, New York Branch

Bank of America, N.A.

The Bank of Nova Scotia

Barclays Bank PLC

Crédit Agricole Corporate and Investment Bank c/o Credit Agricole Securities (USA) Inc., as agent

Credit Suisse International

Goldman Sachs & Co. LLC

Mizuho Markets Americas LLC

Morgan Stanley & Co. LLC

Royal Bank of Canada

Wells Fargo Bank, National Association

As Forward Purchasers

c/o     J.P. Morgan Securities LLC

383 Madison Avenue

New York, New York 10179

Ladies and Gentlemen:

Reference is made to that certain At-the-Market Equity Offering Sales Agreement , dated February 19, 2020 (the “Sales Agreement”), among J.P. Morgan Securities LLC, Barclays Capital Inc., BofA Securities, Inc., Credit Agricole Securities (USA) Inc., Credit Suisse Securities (USA) LLC, Goldman Sachs & Co. LLC, Mizuho Securities USA LLC, Morgan Stanley & Co. LLC, RBC Capital Markets, LLC, Scotia Capital (USA) Inc. and Wells Fargo Securities, LLC, each as sales agent, forward seller and/or principal (in any such capacity, each, an “Agent”, and collectively, the “Agents”), and JPMorgan Chase Bank, National Association, New York Branch, Bank of America, N.A., The Bank of Nova Scotia, Barclays Bank PLC, Crédit Agricole Corporate and Investment Bank c/o Credit Agricole Securities (USA) Inc., as agent, Credit Suisse International, Goldman Sachs & Co. LLC, Mizuho Markets Americas LLC, Morgan Stanley & Co. LLC, Royal Bank of Canada and Wells Fargo Bank, National Association, each as forward purchaser (in such capacity, each a “Forward Purchaser”, and collectively, the “Forward Purchasers”) and Healthpeak Properties, Inc., formerly HCP, Inc., a Maryland corporation (the “Company”) with respect to the issuance and sale from time to time by the Company to or through the Agents, of shares of its common stock, $1.00 par value, having an aggregate gross sales price of up to $1,250,000,000, in the manner and subject to the terms and conditions set forth in the Sales Agreement. All capitalized terms used in this Amendment No. 1 to the Sales Agreement (this “Amendment”) and not otherwise defined herein shall have the respective meanings assigned to such terms in the Sales Agreement. For the avoidance of doubt, all references to the Sales Agreement in any document related to the transactions contemplated by the Sales Agreement shall be to the Sales Agreement as amended by this Amendment. The Agents, the Forward Purchasers and the Company (collectively, the “parties hereto”) agree as follows:

A.Amendments to Sales Agreement. The parties hereto agree that the Sales Agreement is amended as follows:

1.As contemplated by the Sales Agreement, from and after the date hereof, the term “Registration Statement” as used in the Sales Agreement, shall include the Company’s registration statement on Form S-3 (No. 333-256055) filed with the Commission on May 13, 2021; and the term “Base Prospectus,” as used in the Sales Agreement, shall mean the base prospectus included in the Prospectus most recently filed by the Company with the Commission pursuant to Rule 424(b) under the Securities Act.

2.As of the date hereof, the first sentence of the second paragraph of the Sales Agreement is hereby deleted in its entirety and replaced with the following:

The Company proposes subject to the terms and conditions stated herein, to issue and sell from time to time to or through the Agents, shares of the Company’s common stock, $1.00 par value (the “Common Stock”), having an aggregate gross sales price of up to $1,500,000,000 (the “Shares”)on the terms set forth in this At-the-Market Equity Offering Sales Agreement (the “Agreement”). 

3.As of the date hereof, section 9(c) of the Sales Agreement is hereby deleted in its entirety and replaced with the following:

(c)    This Agreement shall remain in full force and effect until such time as Shares having an aggregate gross sales price of $1,500,000,000 shall have been issued and sold hereunder unless terminated prior thereto pursuant to Section 9(a) or (b) above or otherwise by mutual agreement of the parties; provided that any such termination by mutual agreement or pursuant to this clause (c) shall in all cases be deemed to provide that Sections 1, 3(d), 5, 7, 8, 11, 12, 13 and 15 of this Agreement shall remain in full force and effect.

4.As of the date hereof, Annex 1 to the Sales Agreement is hereby deleted in its entirety and replaced with Annex 1 attached hereto.

B.No Other Amendments. The parties hereto agree that, except as set forth in, and amended by, Section A above, all the terms and provisions of the Sales Agreement shall remain in full force and effect.

C.Counterparts and Electronic Signature. This Amendment may be executed by any one or more of the parties hereto in any number of counterparts, each of which shall be deemed to be an original, but all such respective counterparts shall together constitute one and the same instrument. Counterparts may be delivered via facsimile, electronic mail (including any electronic signature covered by the U.S. federal ESIGN Act of 2000, Uniform Electronic Transactions Act, the Electronic Signatures and Records Act or other applicable law) or other transmission method and any counterpart so delivered shall be deemed to have been duly and validly delivered and be valid and effective for all purposes.

D.Governing Law. This Amendment shall be governed by and construed in accordance with the laws of the State of New York applicable to agreements made and to be performed in such State.

If the foregoing is in accordance with your understanding of our agreement, please sign and return to the Company a counterpart hereof, whereupon this instrument, along with all counterparts, will become a binding agreement among the Agents, the Forward Purchasers and the Company in accordance with its terms.

Very truly yours,

HEALTHPEAK PROPERTIES, INC.

By: /s/ Peter A. Scott    

    Name: Peter A. Scott

Title:     Executive Vice President and Chief

Financial Officer

[Signature Page to Amendment No. 1 to theAt-the-Market Equity Offering Sales Agreement]

Accepted as of the date hereof:     

J.P. Morgan Securities LLC

As Agent

By:    /s/ Brett Chalmers    

     Name: Brett Chalmers          

     Title: Vice President

JPMorgan Chase Bank, National Association, New York Branch

As Forward Purchaser

By:     /s/ Brett Chalmers    

     Name: Brett Chalmers          

  Title: Vice President     

Barclays Capital Inc.

As Agent

By:    /s/ Nicholas Cunningham    

     Name: Nicholas Cunningham          

  Title: Managing Director

Barclays Bank PLC

As Forward Purchaser     

By:    /s/ Nicholas Cunningham    

     Name: Nicholas Cunningham     

  Title: Managing Director

[Signature Page to Amendment No. 1 to theAt-the-Market Equity Offering Sales Agreement]

BofA Securities, Inc.     

As Agent

By: /s/ Gray Hampton    

     Name: Gray Hampton          

     Title: Managing Director

Bank of America, N.A.

As Forward Purchaser        

By:    /s/ Jake Mendelsohn    

     Name: Jake Mendelsohn        

     Title: Managing Director                   

Credit Agricole Securities (USA) Inc.

As Agent     

By:    /s/ Jean-Marc Nguyen    

     Name: Jean-Marc Nguyen     

     Title: Managing Director, Co-Heads GIB Americas

Crédit Agricole Corporate and Investment Bank

c/o Credit Agricole Securities (USA) Inc., as agent

As Forward Purchaser     

By:    /s/ Jean-Marc Nguyen    

     Name: Jean-Marc Nguyen          

     Title: Managing Director, Co-Heads GIB Americas

Credit Suisse Securities (USA) LLC

As Agent     

By: /s/ Craig Wiele    

     Name: Craig Wiele          

     Title: Managing Director

[Signature Page to Amendment No. 1 to theAt-the-Market Equity Offering Sales Agreement]

Credit Suisse International

As Forward Purchaser     

By: /s/ Carole Villoresi    

     Name: Carole Villoresi          

     Title: Authorized Signatory

By: /s/ Shui Wong    

     Name: Shui Wong          

     Title: Authorized Signatory

Goldman Sachs & Co. LLC

As Agent and Forward Purchaser        

By:    /s/ Ryan Cunn    

     Name: Ryan Cunn        

     Title: Managing Director

Mizuho Securities USA LLC

As Agent      

By:    /s/ J.T. Deignan    

     Name: J.T. Deignan          

  Title: Managing Director

Mizuho Markets Americas LLC

As Forward Purchaser     

By: /s/ Adam Hopkins    

     Name: Adam Hopkins          

  Title: Authorized Signatory

[Signature Page to Amendment No. 1 to theAt-the-Market Equity Offering Sales Agreement]

Morgan Stanley & Co. LLC

As Agent and Forward Purchaser     

By: /s/ Patrick Mullen    

     Name: Patrick Mullen          

  Title: Executive Director

RBC Capital Markets, LLC

As Agent     

By: /s/ Alexis Moshang    

     Name: Alexis Moshang          

     Title: Director, RE

Royal Bank of Canada

As Forward Purchaser     

By: /s/ Brian Ward    

     Name: Brian Ward          

     Title: MD, CED

Scotia Capital (USA) Inc.

As Agent     

By:    /s/ Michael Curran    

     Name: Michael Curran          

     Title: Managing Director          

The Bank of Nova Scotia

As Forward Purchaser     

By:    /s/ Michael Curran    

     Name: Michael Curran          

     Title: Managing Director     

[Signature Page to Amendment No. 1 to theAt-the-Market Equity Offering Sales Agreement]

Wells Fargo Securities, LLC

As Agent     

By:    /s/ Elizabeth Alvarez    

     Name: Elizabeth Alvarez          

  Title: Managing Director

Wells Fargo Bank, National Association

As Forward Purchaser     

By: /s/ Thomas Yates    

     Name: Thomas Yates          

  Title: Managing Director

[Signature Page to Amendment No. 1 to theAt-the-Market Equity Offering Sales Agreement]

Annex 1

Healthpeak Properties, Inc.

Common Stock
($1.00 par value)

TERMS AGREEMENT

[]

Ladies and Gentlemen:

Healthpeak Properties, Inc., a corporation organized under the laws of Maryland (the “Company”), proposes, subject to the terms and conditions stated herein and in the At-the-Market Equity Offering Sales Agreement, dated February 19, 2020, as amended by Amendment No. 1 to the At-the-Market Equity Offering Sales Agreement, dated May [], 2021 (collectively, and as so amended, the “Sales Agreement”), each among the Company and J.P. Morgan Securities LLC, Barclays Capital Inc., BofA Securities, Inc., Credit Agricole Securities (USA) Inc., Credit Suisse Securities (USA) LLC, Goldman Sachs & Co. LLC, Mizuho Securities USA LLC, Morgan Stanley & Co. LLC, RBC Capital Markets, LLC, Scotia Capital (USA) Inc. and Wells Fargo Securities, LLC, each as sales agent, forward seller and/or principal (in any such capacity, each, an “Agent”, and collectively, the “Agents”), and JPMorgan Chase Bank, National Association, New York Branch, Bank of America, N.A., The Bank of Nova Scotia, Barclays Bank PLC, Crédit Agricole Corporate and Investment Bank c/o Credit Agricole Securities (USA) Inc., as agent, Credit Suisse International, Goldman Sachs & Co. LLC, Mizuho Markets Americas LLC, Morgan Stanley & Co. LLC, Royal Bank of Canada and Wells Fargo Bank, National Association each as forward purchaser (in such capacity, each a “Forward Purchaser”, and collectively, the “Forward Purchasers”), to issue and sell to [], as Agent, the securities specified in the Schedule hereto (the “Purchased Securities”) [, and solely for the purpose of covering over-allotments, to grant to the Agent the option to purchase the additional securities specified in the Schedule hereto (the “Additional Securities”)]1.  Capitalized terms used herein and not defined have the respective meanings ascribed thereto in the Sales Agreement.

[The Agent shall have the right to purchase from the Company all or a portion of the Additional Securities as may be necessary to cover over-allotments made in connection with the offering of the Purchased Securities, at the same purchase price per share to be paid by the Agent to the Company for the Purchased Securities; provided that the purchase price payable by the Agent for any Additional Securities shall be reduced by an amount per share equal to any dividends or distributions paid or payable by the Company on the Purchased Securities but not payable on such Additional Securities.  This option may be exercised by the Agent at any time

1Include only if [] has an over-allotment option.

(but not more than once) on or before the thirtieth day following the date hereof, by written notice to the Company.  Such notice shall set forth the aggregate number of shares of Additional Securities as to which option is being exercised, and the date and time when the Additional Securities are to be delivered (such date and time being herein referred to as the “Option Closing Date”); provided, however, that the Option Closing Date shall not be earlier than the Time of Delivery (as set forth in the Schedule hereto) nor earlier than the second business day after the date on which the option shall have been exercised nor later than the fifth business day after the date on which the option shall have been exercised. Payment of the purchase price for the Additional Securities shall be made at the Option Closing Date in the same manner and at the same office as the payment for the Purchased Securities.  For purposes of clarity, the parties hereto agree that any Option Closing Date shall be a date on which Shares are delivered to the

Agent pursuant to a Terms Agreement within the meaning of, and requiring the affirmation and deliverables described under, Sections 3((j), (k) and (l) of the Sales Agreement.]*

Each of the provisions of the Sales Agreement not specifically related to (a) the solicitation by the Agent, as agent of the Company, of offers to purchase securities or (b) the Confirmations, Confirmation Shares and related transactions is incorporated herein by reference in its entirety, and shall be deemed to be part of this Terms Agreement to the same extent as if such provisions had been set forth in full herein.  Each of the representations and warranties set forth therein shall be deemed to have been made at and as of the date of this Terms Agreement [and] [,] the Applicable Time [and any Option Closing Date]*, except that each representation and warranty in Section 1 of the Sales Agreement which makes reference to the Prospectus (as therein defined) shall be deemed to be a representation and warranty as of the date of the Sales Agreement in relation to the Prospectus, and also a representation and warranty as of the date of this Terms Agreement [and] [,] the Settlement Date [and any Option Closing Date]* in relation to the Prospectus as amended and supplemented to relate to the Purchased Securities.

An amendment to the Registration Statement (as defined in the Sales Agreement), or a supplement to the Prospectus, as the case may be, relating to the Purchased Securities [and the Additional Securities]*, in the form heretofore delivered to the Agent is now proposed to be filed with the Securities and Exchange Commission.

Subject to the terms and conditions set forth herein and in the Sales Agreement which are incorporated herein by reference, the Company agrees to issue and sell to the Agent and the latter agrees to purchase from the Company the number of shares of the Purchased Securities at the time and place and at the purchase price set forth in the Schedule hereto.

If the foregoing is in accordance with your understanding of our agreement, please sign and return to the Company a counterpart hereof, whereupon this instrument, along with all counterparts, will become a binding agreement between the Agent and the Company in accordance with its terms.

THIS TERMS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK.

		Very truly yours,
		Healthpeak Properties, Inc.
		By:
			Name:
			Title:
Accepted as of the date hereof:
[]
By:
	Name:
	Title:

EX-31.1

EXHIBIT 31.1

CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER

I, Thomas M. Herzog, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Healthpeak Properties, Inc. for the period ended June 30, 2021;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

4
Date: August 4, 2021	/s/ THOMAS M. HERZOG
	Thomas M. Herzog
	Chief Executive Officer
	(Principal Executive Officer)

EX-31.2

EXHIBIT 31.2

CERTIFICATION OF PRINCIPAL FINANCIAL OFFICER

I, Peter A. Scott, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Healthpeak Properties, Inc. for the period ended June 30, 2021;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

4
Date: August 4, 2021	/s/ PETER A. SCOTT
	Peter A. Scott
	Chief Financial Officer
	(Principal Financial Officer)

EX-32.1

EXHIBIT 32.1

CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER

Pursuant to 18 U.S.C. § 1350, as created by Section 906 of the Sarbanes-Oxley Act of 2002, the undersigned officer of Healthpeak Properties, Inc., a Maryland corporation (the “Company”), hereby certifies, to his knowledge, that:

(i) the accompanying quarterly report on Form 10-Q of the Company for the period ended June 30, 2021 (the “Report”) fully complies with the requirements of Section 13(a) or Section 15(d), as applicable, of the Securities Exchange Act of 1934, as amended; and

(ii) the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: August 4, 2021	/s/ THOMAS M. HERZOG
	Thomas M. Herzog
	Chief Executive Officer
	(Principal Executive Officer)

A signed original of this written statement required by Section 906 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request. Such certification will not be deemed to be incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended, except to the extent that the Company specifically incorporates it by reference.

EX-32.2

EXHIBIT 32.2

CERTIFICATION OF PRINCIPAL FINANCIAL OFFICER

Pursuant to 18 U.S.C. § 1350, as created by Section 906 of the Sarbanes-Oxley Act of 2002, the undersigned officer of Healthpeak Properties, Inc., a Maryland corporation (the “Company”), hereby certifies, to his knowledge, that:

(i) the accompanying quarterly report on Form 10-Q of the Company for the period ended June 30, 2021 (the “Report”) fully complies with the requirements of Section 13(a) or Section 15(d), as applicable, of the Securities Exchange Act of 1934, as amended; and

(ii) the information contained in the report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: August 4, 2021	/s/ PETER A. SCOTT
	Peter A. Scott
	Chief Financial Officer
	(Principal Financial Officer)

A signed original of this written statement required by Section 906 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request. Such certification will not be deemed to be incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended, except to the extent that the Company specifically incorporates it by reference.

XML

Cover Page - shares	6 Months Ended
	Jun. 30, 2021	Aug. 02, 2021
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2021
Document Transition Report	false
Entity File Number	001-08895
Entity Registrant Name	Healthpeak Properties, Inc.
Entity Incorporation, State or Country Code	MD
Entity Tax Identification Number	33-0091377
Entity Address, Address Line One	5050 South Syracuse Street
Entity Address, Address Line Two	Suite 800
Entity Address, City or Town	Denver
Entity Address, State or Province	CO
Entity Address, Postal Zip Code	80237
City Area Code	720
Local Phone Number	428-5050
Title of 12(b) Security	Common Stock, $1.00 par value
Trading Symbol	PEAK
Security Exchange Name	NYSE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		538,968,372
Entity Central Index Key	0000765880
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q2

XML

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Real estate:
Buildings and improvements	$ 11,543,657	$ 11,048,433
Development costs and construction in progress	711,772	613,182
Land	1,966,665	1,867,278
Accumulated depreciation and amortization	(2,618,101)	(2,409,135)
Net real estate	11,603,993	11,119,758
Net investment in direct financing leases	44,706	44,706
Loans receivable, net of reserves of $4,198 and $10,280	429,076	195,375
Investments in and advances to unconsolidated joint ventures	388,415	402,871
Accounts receivable, net of allowance of $3,429 and $3,994	41,814	42,269
Cash and cash equivalents	96,923	44,226
Restricted cash	129,052	67,206
Intangible assets, net	511,612	519,917
Assets held for sale and discontinued operations, net	246,807	2,626,306
Right-of-use asset, net	215,303	192,349
Other assets, net	624,669	665,106
Total assets	14,332,370	15,920,089
LIABILITIES AND EQUITY
Bank line of credit and commercial paper	720,000	129,590
Term loan	249,303	249,182
Senior unsecured notes	3,710,972	5,697,586
Mortgage debt	358,101	221,621
Intangible liabilities, net	139,116	144,199
Liabilities related to assets held for sale and discontinued operations, net	65,272	415,737
Lease liability	189,732	179,895
Accounts payable, accrued liabilities, and other liabilities	688,458	763,391
Deferred revenue	777,687	774,316
Total liabilities	6,898,641	8,575,517
Commitments and contingencies
Common stock, $1.00 par value: 750,000,000 shares authorized; 538,955,168 and 538,405,393 shares issued and outstanding	538,955	538,405
Additional paid-in capital	10,229,549	10,229,857
Cumulative dividends in excess of earnings	(3,880,253)	(3,976,232)
Accumulated other comprehensive income (loss)	(3,389)	(3,685)
Total stockholders’ equity	6,884,862	6,788,345
Joint venture partners	347,610	357,069
Non-managing member unitholders	201,257	199,158
Total noncontrolling interests	548,867	556,227
Total equity	7,433,729	7,344,572
Total liabilities and equity	$ 14,332,370	$ 15,920,089

XML

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Balance Sheet Parenthetical Disclosures
Reserves for loans receivable	$ 4,198	$ 10,280
Allowance for accounts receivable	$ 3,429	$ 3,994
Common stock, par value (in dollars per share)	$ 1.00	$ 1.00
Common stock, shares authorized (in shares)	750,000,000	750,000,000
Common stock, shares issued (in shares)	538,955,168	538,405,393
Common stock, shares outstanding (in shares)	538,955,168	538,405,393

XML

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Revenues:
Rental and related revenues	$ 340,642	$ 288,253	$ 668,614	$ 570,570
Resident fees and services	117,308	113,926	233,436	205,706
Income from direct financing leases	2,180	2,150	4,343	5,419
Interest income	16,108	4,230	25,121	7,918
Total revenues	476,238	408,559	931,514	789,613
Costs and expenses:
Interest expense	38,681	54,823	85,524	110,514
Depreciation and amortization	171,459	139,691	328,997	264,803
Operating	190,132	177,808	371,893	415,185
General and administrative	24,088	23,720	48,990	46,069
Transaction costs	619	373	1,417	14,936
Impairments and loan loss reserves (recoveries), net	931	6,837	4,173	17,944
Total costs and expenses	425,910	403,252	840,994	869,451
Other income (expense):
Gain (loss) on sales of real estate, net	175,238	81,284	175,238	83,353
Gain (loss) on debt extinguishments	(60,865)	(25,824)	(225,157)	(24,991)
Other income (expense), net	1,734	17,415	3,934	228,068
Total other income (expense), net	116,107	72,875	(45,985)	286,430
Income (loss) before income taxes and equity income (loss) from unconsolidated joint ventures	166,435	78,182	44,535	206,592
Income tax benefit (expense)	763	(106)	755	29,762
Equity income (loss) from unconsolidated joint ventures	867	(17,735)	2,190	(28,881)
Income (loss) from continuing operations	168,065	60,341	47,480	207,473
Income (loss) from discontinued operations	113,960	(5,292)	383,968	130,116
Net income (loss)	282,025	55,049	431,448	337,589
Noncontrolling interests’ share in continuing operations	(3,535)	(3,486)	(6,841)	(6,949)
Noncontrolling interests’ share in discontinued operations	(2,210)	(57)	(2,539)	(54)
Net income (loss) attributable to Healthpeak Properties, Inc.	276,280	51,506	422,068	330,586
Participating securities’ share in earnings	(287)	(375)	(2,732)	(1,800)
Net income (loss) applicable to common shares	$ 275,993	$ 51,131	$ 419,336	$ 328,786
Basic earnings (loss) per common share:
Continuing operations (in dollars per share)	$ 0.30	$ 0.10	$ 0.07	$ 0.38
Discontinued operations (in dollars per share)	0.21	(0.01)	0.71	0.25
Net income (loss) applicable to common shares (in dollars per share)	0.51	0.09	0.78	0.63
Diluted earnings (loss) per common share:
Continuing operations (in dollars per share)	0.30	0.10	0.07	0.38
Discontinued operations (in dollars per share)	0.21	(0.01)	0.71	0.25
Net income (loss) applicable to common shares (in dollars per share)	$ 0.51	$ 0.09	$ 0.78	$ 0.63
Weighted average shares outstanding:
Basic (in shares)	538,929	538,262	538,805	522,427
Diluted (in shares)	544,694	538,517	539,081	523,498

XML

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Net income (loss)	$ 282,025	$ 55,049	$ 431,448	$ 337,589
Other comprehensive income (loss):
Net unrealized gains (losses) on derivatives	0	188	332	489
Change in Supplemental Executive Retirement Plan obligation and other	108	121	215	182
Reclassification adjustment realized in net income (loss)	0	0	(251)	0
Total other comprehensive income (loss)	108	309	296	671
Total comprehensive income (loss)	282,133	55,358	431,744	338,260
Total comprehensive income (loss) attributable to Healthpeak Properties, Inc.	276,388	51,815	422,364	331,257
Continuing Operations
Other comprehensive income (loss):
Total comprehensive (income) loss attributable to noncontrolling interests'	(3,535)	(3,486)	(6,841)	(6,949)
Discontinued Operations
Other comprehensive income (loss):
Total comprehensive (income) loss attributable to noncontrolling interests'	$ (2,210)	$ (57)	$ (2,539)	$ (54)

XML

CONSOLIDATED STATEMENTS OF EQUITY - USD ($) shares in Thousands, $ in Thousands	Total	Total Stockholders’ Equity	Common Stock	Additional Paid-In Capital	Cumulative Dividends In Excess Of Earnings	Accumulated Other Comprehensive Income (Loss)	Total Noncontrolling Interests	Cumulative Effect, Period of Adoption, Adjustment	[1]	Cumulative Effect, Period of Adoption, Adjustment Total Stockholders’ Equity	[1]	Cumulative Effect, Period of Adoption, Adjustment Cumulative Dividends In Excess Of Earnings	[1]	Cumulative Effect, Period of Adoption, Adjusted Balance	Cumulative Effect, Period of Adoption, Adjusted Balance Total Stockholders’ Equity	Cumulative Effect, Period of Adoption, Adjusted Balance Common Stock	Cumulative Effect, Period of Adoption, Adjusted Balance Additional Paid-In Capital	Cumulative Effect, Period of Adoption, Adjusted Balance Cumulative Dividends In Excess Of Earnings	Cumulative Effect, Period of Adoption, Adjusted Balance Accumulated Other Comprehensive Income (Loss)	Cumulative Effect, Period of Adoption, Adjusted Balance Total Noncontrolling Interests
Balance (in shares) at Dec. 31, 2019			505,222													505,222
Balance at Dec. 31, 2019	$ 6,667,474	$ 6,085,058	$ 505,222	$ 9,183,892	$ (3,601,199)	$ (2,857)	$ 582,416	$ (1,524)		$ (1,524)		$ (1,524)		$ 6,665,950	$ 6,083,534	$ 505,222	$ 9,183,892	$ (3,602,723)	$ (2,857)	$ 582,416
Increase (Decrease) in Stockholders' Equity
Issuance of common stock, net	1,060,000
Balance (in shares) at Mar. 31, 2020			538,135
Balance at Mar. 31, 2020	7,813,443	7,236,508	$ 538,135	10,213,011	(3,512,143)	(2,495)	576,935
Balance (in shares) at Dec. 31, 2019			505,222													505,222
Balance at Dec. 31, 2019	6,667,474	6,085,058	$ 505,222	9,183,892	(3,601,199)	(2,857)	582,416	$ (1,524)		$ (1,524)		$ (1,524)		$ 6,665,950	$ 6,083,534	$ 505,222	$ 9,183,892	$ (3,602,723)	$ (2,857)	$ 582,416
Increase (Decrease) in Stockholders' Equity
Net income (loss)	337,589	330,586			330,586		7,003
Other comprehensive income (loss)	671	671				671
Issuance of common stock, net (in shares)			33,201
Issuance of common stock, net	1,065,389	1,065,389	$ 33,201	1,032,188
Conversion of DownREIT units to common stock (in shares)			120
Conversion of DownREIT units to common stock	0	4,077	$ 120	3,957			(4,077)
Repurchase of common stock (in shares)			(279)
Repurchase of common stock	(9,998)	(9,998)	$ (279)	(9,719)
Exercise of stock options (in shares)			54
Exercise of stock options	1,806	1,806	$ 54	1,752
Amortization of stock-based compensation	10,658	10,658		10,658
Common dividends	(388,050)	(388,050)			(388,050)
Distributions to noncontrolling interest	(15,294)						(15,294)
Balance (in shares) at Jun. 30, 2020			538,318
Balance at Jun. 30, 2020	7,668,721	7,098,673	$ 538,318	10,222,728	(3,660,187)	(2,186)	570,048
Balance (in shares) at Mar. 31, 2020			538,135
Balance at Mar. 31, 2020	7,813,443	7,236,508	$ 538,135	10,213,011	(3,512,143)	(2,495)	576,935
Increase (Decrease) in Stockholders' Equity
Net income (loss)	55,049	51,506			51,506		3,543
Other comprehensive income (loss)	309	309				309
Issuance of common stock, net (in shares)			97
Issuance of common stock, net	767	767	$ 97	670
Conversion of DownREIT units to common stock (in shares)			97
Conversion of DownREIT units to common stock	0	3,568	$ 97	3,471			(3,568)
Repurchase of common stock (in shares)			(11)
Repurchase of common stock	(261)	(261)	$ (11)	(250)
Amortization of stock-based compensation	5,826	5,826		5,826
Common dividends	(199,550)	(199,550)			(199,550)
Distributions to noncontrolling interest	(6,862)						(6,862)
Balance (in shares) at Jun. 30, 2020			538,318
Balance at Jun. 30, 2020	7,668,721	7,098,673	$ 538,318	10,222,728	(3,660,187)	(2,186)	570,048
Balance (in shares) at Dec. 31, 2020			538,405
Balance at Dec. 31, 2020	7,344,572	6,788,345	$ 538,405	10,229,857	(3,976,232)	(3,685)	556,227
Increase (Decrease) in Stockholders' Equity
Net income (loss)	431,448	422,068			422,068		9,380
Other comprehensive income (loss)	296	296				296
Issuance of common stock, net (in shares)			954
Issuance of common stock, net	1,044	1,044	$ 954	90
Repurchase of common stock (in shares)			(408)
Repurchase of common stock	(12,480)	(12,480)	$ (408)	(12,072)
Exercise of stock options (in shares)			4
Exercise of stock options	126	126	$ 4	122
Amortization of stock-based compensation	11,557	11,557		11,557
Common dividends	(326,089)	(326,089)			(326,089)
Distributions to noncontrolling interest	(16,675)						(16,675)
Purchase of noncontrolling interests	(70)	(5)		(5)			(65)
Balance (in shares) at Jun. 30, 2021			538,955
Balance at Jun. 30, 2021	7,433,729	6,884,862	$ 538,955	10,229,549	(3,880,253)	(3,389)	548,867
Balance (in shares) at Mar. 31, 2021			538,886
Balance at Mar. 31, 2021	7,316,682	6,764,538	$ 538,886	10,223,711	(3,994,562)	(3,497)	552,144
Increase (Decrease) in Stockholders' Equity
Net income (loss)	282,025	276,280			276,280		5,745
Other comprehensive income (loss)	108	108				108
Issuance of common stock, net (in shares)			75
Issuance of common stock, net	(43)	(43)	$ 75	(118)
Repurchase of common stock (in shares)			(10)
Repurchase of common stock	(315)	(315)	$ (10)	(305)
Exercise of stock options (in shares)			4
Exercise of stock options	126	126	$ 4	122
Amortization of stock-based compensation	6,144	6,144		6,144
Common dividends	(161,971)	(161,971)			(161,971)
Distributions to noncontrolling interest	(8,957)						(8,957)
Purchase of noncontrolling interests	(70)	(5)		(5)			(65)
Balance (in shares) at Jun. 30, 2021			538,955
Balance at Jun. 30, 2021	$ 7,433,729	$ 6,884,862	$ 538,955	$ 10,229,549	$ (3,880,253)	$ (3,389)	$ 548,867

[1] On January 1, 2020, the Company adopted a series of Accounting Standards Updates (“ASUs”) related to accounting for credit losses and recognized the cumulative-effect of adoption to beginning retained earnings. Refer to Note 2 for a detailed impact of adoption.

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CONSOLIDATED STATEMENTS OF EQUITY (Parenthetical) - $ / shares	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Statement of Stockholders' Equity [Abstract]
Common dividends, per share (in dollars per share)	$ 0.30	$ 0.37	$ 0.60	$ 0.74

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CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020
Cash flows from operating activities:
Net income (loss)	$ 431,448	$ 337,589
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation and amortization of real estate, in-place lease, and other intangibles	328,997	367,764
Amortization of stock-based compensation	9,459	8,972
Amortization of deferred financing costs	4,334	5,116
Straight-line rents	(15,336)	(14,544)
Amortization of nonrefundable entrance fees and above/below market lease intangibles	(45,842)	(37,043)
Equity loss (income) from unconsolidated joint ventures	(7,100)	29,065
Distributions of earnings from unconsolidated joint ventures	4,015	11,594
Loss (gain) on sale of real estate under direct financing leases	0	(41,670)
Deferred income tax expense (benefit)	(2,538)	(31,947)
Impairments and loan loss reserves (recoveries), net	15,168	63,173
Loss (gain) on debt extinguishments	225,157	24,991
Loss (gain) on sales of real estate, net	(557,138)	(247,732)
Loss (gain) upon change of control, net	(1,042)	(169,962)
Casualty-related loss (recoveries), net	1,061	0
Other non-cash items	(8,057)	127
Decrease (increase) in accounts receivable and other assets, net	32,928	13,117
Increase (decrease) in accounts payable, accrued liabilities, and deferred revenue	(55,920)	1,213
Net cash provided by (used in) operating activities	359,594	319,823
Cash flows from investing activities:
Acquisitions of real estate	(498,142)	(300,954)
Development, redevelopment, and other major improvements of real estate	(281,829)	(391,230)
Leasing costs, tenant improvements, and recurring capital expenditures	(43,132)	(40,572)
Proceeds from sales of real estate, net	2,253,889	548,858
Acquisition of CCRC Portfolio	0	(390,599)
Contributions to unconsolidated joint ventures	(10,168)	(1,983)
Distributions in excess of earnings from unconsolidated joint ventures	34,586	3,251
Proceeds from sales/principal repayments on loans receivable and direct financing leases	265,934	109,920
Investments in loans receivable and other	(8,842)	(71,961)
Net cash provided by (used in) investing activities	1,712,296	(535,270)
Cash flows from financing activities:
Borrowings under bank line of credit and commercial paper	8,177,450	2,025,600
Repayments under bank line of credit and commercial paper	(7,587,040)	(2,118,600)
Issuance and borrowings of debt, excluding bank line of credit and commercial paper	142,100	594,750
Repayments and repurchase of debt, excluding bank line of credit and commercial paper	(2,170,170)	(257,511)
Payments for debt extinguishment and deferred financing costs	(217,468)	(30,508)
Issuance of common stock and exercise of options	1,170	1,067,195
Repurchase of common stock	(12,480)	(9,998)
Dividends paid on common stock	(326,089)	(388,050)
Distributions to and purchase of noncontrolling interests	(16,745)	(15,294)
Net cash provided by (used in) financing activities	(2,009,272)	867,584
Effect of foreign exchanges on cash, cash equivalents and restricted cash	0	(153)
Net increase (decrease) in cash, cash equivalents and restricted cash	62,618	651,984
Cash, cash equivalents and restricted cash, beginning of period	181,685	184,657
Cash, cash equivalents and restricted cash, end of period	$ 244,303	$ 836,641

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Business

6 Months Ended

Jun. 30, 2021

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Business

Business

Overview

Healthpeak Properties, Inc., a Standard & Poor’s 500 company, is a Maryland corporation that is organized to qualify as a real estate investment trust (“REIT”) that, together with its consolidated entities (collectively, “Healthpeak” or the “Company”), invests primarily in real estate serving the healthcare industry in the United States (“U.S.”). Healthpeak® acquires, develops, leases, owns, and manages healthcare real estate. The Company’s diverse portfolio is comprised of investments in the following reportable healthcare segments: (i) life science; (ii) medical office; and (iii) continuing care retirement community (“CCRC”).

The Company’s corporate headquarters are in Denver, Colorado and it has additional offices in Irvine, California and Franklin, Tennessee.

Senior Housing Triple-Net and Senior Housing Operating Portfolio Dispositions

During 2020, the Company established and began executing a plan to dispose of its senior housing triple-net and Senior Housing Operating (“SHOP”) properties. As of December 31, 2020, the Company concluded that the planned dispositions represented a strategic shift that has had and will have a major effect on the Company’s operations and financial results. Therefore, senior housing triple-net and SHOP assets meeting the held for sale criteria on or before June 30, 2021 are classified as discontinued operations in all periods presented herein. See Note 5 for further information.

COVID-19 Update

While the coronavirus (“COVID-19”) pandemic continues to evolve daily and its ultimate course remains uncertain, it has caused significant disruption to individuals, governments, financial markets, and businesses, including the Company. The Company’s tenants, operators, and borrowers continue to face significant cost increases as a result of increased health and safety measures implemented to reduce the spread of COVID-19, including increased staffing demands for patient care and sanitation, as well as increased usage and inventory of critical medical supplies and personal protective equipment. These health and safety measures have been in place since the onset of the pandemic and continue to place a substantial strain on the business operations of many of the Company’s tenants, operators, and borrowers. The Company evaluated the impacts of COVID-19 on its business thus far and incorporated information concerning the impact of COVID-19 into its assessments of liquidity, impairments, and collectibility from tenants, residents, and borrowers as of June 30, 2021. The Company will continue to monitor such impacts and will adjust its estimates and assumptions based on the best available information.

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Summary of Significant Accounting Policies

6 Months Ended

Jun. 30, 2021

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

Summary of Significant Accounting Policies

Basis of Presentation

The accompanying unaudited consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information. Management is required to make estimates and assumptions in the preparation of financial statements in conformity with GAAP. These estimates and assumptions affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from management’s estimates.

The consolidated financial statements include the accounts of Healthpeak Properties, Inc., its wholly-owned subsidiaries, joint ventures (“JVs”), and variable interest entities (“VIEs”) that it controls through voting rights or other means. Intercompany transactions and balances have been eliminated upon consolidation. All adjustments (consisting of normal recurring adjustments) necessary to present fairly the Company’s financial position, results of operations, and cash flows have been included. Operating results for the three and six months ended June 30, 2021 are not necessarily indicative of the results that may be expected for the year ending December 31, 2021. The accompanying unaudited interim financial information should be read in conjunction with the consolidated financial statements and notes thereto for the year ended December 31, 2020 included in the Company’s Annual Report on Form 10-K filed with the U.S. Securities and Exchange Commission (“SEC”).

Government Grant Income

On March 27, 2020, the federal government enacted the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) to provide financial aid to individuals, businesses, and state and local governments. During the three and six months ended June 30, 2021 and 2020, the Company received government grants under the CARES Act primarily to cover increased expenses and lost revenue during the COVID-19 pandemic. Grant income is recognized when there is reasonable assurance that the grant will be received and the Company will comply with all conditions attached to the grant. Additionally, grants are recognized over the periods in which the Company recognizes the increased expenses and lost revenue the grants are intended to defray. As of June 30, 2021, the amount of qualifying expenditures and lost revenue exceeded grant income recognized and the Company believes it has complied and will continue to comply with all grant conditions.

The following table summarizes information related to government grant income received and recognized by the Company (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
Government grant income recorded in other income (expense), net	$	87	$	11,871	$	1,397	$	11,871
Government grant income recorded in equity income (loss) from unconsolidated joint ventures	584		804		1,010		804
Government grant income recorded in income (loss) from discontinued operations	428		2,209		3,660		2,209
Total government grants received	$	1,099	$	14,884	$	6,067	$	14,884

Recent Accounting Pronouncements

Adopted

Credit Losses. In June 2016, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2016-13, Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”). ASU 2016-13 is intended to improve financial reporting by requiring timelier recognition of credit losses on loans and other financial instruments held by financial institutions and other organizations. The amendments in ASU 2016-13 eliminate the “probable” initial threshold for recognition of credit losses in previous accounting guidance and, instead, reflect an entity’s current estimate of all expected credit losses over the life of the financial instrument. Historically, when credit losses were measured under previous accounting guidance, an entity generally only considered past events and current conditions in measuring the incurred loss. The amendments in ASU 2016-13 broaden the information that an entity must consider in developing its expected credit loss estimate for assets measured either collectively or individually. The use of forecasted information incorporates more timely information in the estimate of expected credit loss.

As a result of adopting ASU 2016-13 on January 1, 2020 using the modified retrospective transition approach, the Company recognized a cumulative-effect adjustment to equity of $2 million as of January 1, 2020. Under ASU 2016-13, the Company began using a loss model that relies on future expected credit losses, rather than incurred losses, as was required under historical GAAP. Under the new model, the Company is required to recognize future credit losses expected to be incurred over the life of its finance receivables, including loans receivable, direct financing leases (“DFLs”), and certain accounts receivable, at inception of those instruments. The model emphasizes historical experience and future market expectations to determine a loss to be recognized at inception. However, the model continues to be applied on an individual basis and rely on counter-party specific information to ensure the most accurate estimate is recognized. The Company reassesses its reserves on finance receivables at each balance sheet date to determine if an adjustment to the previous reserve is necessary.

Accounting for Lease Concessions Related to COVID-19. In April 2020, the FASB staff issued a question-and-answer document (the “Lease Modification Q&A”) focused on the application of lease accounting guidance to lease concessions provided as a result of COVID-19. Under ASC 842, the Company would have to determine, on a lease-by-lease basis, if a lease concession was the result of a new arrangement reached with the tenant (treated within the lease modification accounting framework) or if a lease concession was under the enforceable rights and obligations within the existing lease agreement (precluded from applying the lease modification accounting framework). The Lease Modification Q&A allows the Company, if certain criteria have been met, to bypass the lease-by-lease analysis, and instead elect to either apply the lease modification accounting framework or not, with such election applied consistently to leases with similar characteristics and similar circumstances. During the three and six months ended June 30, 2020, the Company provided rent deferrals (to be repaid before the end of 2020) to certain tenants in its life science and medical office segments that were impacted by COVID-19 (discussed in further detail in Note 6). No such rent deferrals were provided to tenants during the three and six months ended June 30, 2021. The Company elected to not assess these rent deferrals on a lease-by-lease basis and to continue recognizing rent revenue on a straight-line basis.

While the Company’s election for rent deferrals will be applied consistently to future deferrals with similar characteristics and similar circumstances, if the Company grants future lease concessions of a different type (such as rent abatements), it will make an election related to those concessions at that time.

Not Yet Adopted

Reference Rate Reform. In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting (“ASU 2020-04”), which provides optional guidance for a limited period of time to ease the potential burden in accounting for, or recognizing the effects of, reference rate reform on financial reporting. In January 2021, the FASB issued ASU No. 2021-01, Reference Rate Reform (Topic 848): Scope (“ASU 2021-01”), which amends the scope of ASU 2020-04 to include derivative instruments that use an interest rate for margining, discounting, or contract price alignment that is modified as a result of reference rate reform. The amendments in ASU 2020-04 and ASU 2021-01 are effective immediately and may be applied through December 31, 2022. The Company is evaluating: (i) how the transition away from LIBOR will impact the Company, (ii) whether the optional relief provided by these standards will be adopted, and (iii) the impact that adopting ASU 2020-04 or ASU 2021-01 will have on its consolidated financial position, results of operations, cash flows, or disclosures.

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Master Transactions and Cooperation Agreement with Brookdale

6 Months Ended

Jun. 30, 2021

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Master Transactions and Cooperation Agreement with Brookdale

Master Transactions and Cooperation Agreement with Brookdale

2019 Master Transactions and Cooperation Agreement with Brookdale

In October 2019, the Company and Brookdale Senior Living Inc. (“Brookdale”) entered into a Master Transactions and Cooperation Agreement (the “2019 MTCA”), which includes a series of transactions related to its previously jointly owned 15-campus CCRC portfolio (the “CCRC JV”) and the portfolio of senior housing properties Brookdale triple-net leased from the Company, which, at the time, included 43 properties.

In connection with the 2019 MTCA, the Company and Brookdale, and certain of their respective subsidiaries, closed the following transactions related to the CCRC JV on January 31, 2020:

•The Company, which owned a 49% interest in the CCRC JV, purchased Brookdale’s 51% interest in 13 of the 15 communities in the CCRC JV based on a valuation of $1.06 billion (the “CCRC Acquisition”);

•The management agreements related to the CCRC Acquisition communities were terminated and management transitioned (under new management agreements) from Brookdale to Life Care Services LLC (“LCS”); and

•The Company paid a $100 million management termination fee to Brookdale.

In addition, pursuant to the 2019 MTCA, the Company and Brookdale closed the following transactions related to properties Brookdale triple-net leased from the Company on January 31, 2020:

•Brookdale acquired 18 of the properties from the Company (the “Brookdale Acquisition Assets”) for cash proceeds of $385 million;

•The remaining 24 properties (excludes one property transitioned and expected to be sold to a third party, as discussed below) were restructured into a single master lease with 2.4% annual rent escalators and a maturity date of December 31, 2027 (the “2019 Amended Master Lease”);

•A portion of annual rent (amount in excess of 6.5% of sales proceeds) related to 14 of the 18 Brookdale Acquisition Assets was reallocated to the remaining properties under the 2019 Amended Master Lease; and

•Brookdale paid down $20 million of future rent under the 2019 Amended Master Lease.

As agreed to by the Company and Brookdale under the 2019 MTCA, in December 2020, the Company terminated the triple-net lease related to one property and converted it to a structure permitted by the Housing and Economic Recovery Act of 2008, and includes most of the provisions previously proposed in the REIT Investment Diversification and Empowerment Act of 2007 (commonly referred to as “RIDEA”). The 24 properties under the 2019 Amended Master Lease were sold in January 2021 (see Note 5).

The Company and Brookdale also agreed that the Company would provide up to $35 million of capital investment in the 2019 Amended Master Lease properties over a five-year term, which would increase rent by 7% of the amount spent, per annum. As of December 31, 2020, the Company had funded $5 million of this capital investment. Upon selling the 24 properties under the 2019 Amended Master Lease in January 2021, the remaining capital investment obligation was transferred to the buyer.

As a result of the above transactions, on January 31, 2020, the Company began consolidating the 13 CCRCs in which it acquired Brookdale’s interest. Accordingly, the Company derecognized its investment in the CCRC JV of $323 million and recognized a gain upon change of control of $170 million, which is included in other income (expense), net. In connection with consolidating the 13 CCRCs during the first quarter of 2020, the Company recognized real estate and intangible assets of $1.8 billion, refundable entrance fee liabilities of $308 million, contractual liabilities associated with previously collected non-refundable entrance fees of $436 million, debt assumed of $215 million, other net assets of $48 million, and cash paid of $396 million.

Upon sale of the Brookdale Acquisition Assets in January 2021, the Company recognized an aggregate gain on sales of real estate of $164 million, which is recorded within income (loss) from discontinued operations.

In May 2021, the CCRC JV sold the two remaining CCRCs subject to the 2019 MTCA for $38 million, $19 million of which represents the Company’s 49% interest in the CCRC JV, resulting in an immaterial gain on sale recorded within equity income (loss) from unconsolidated joint ventures (see Note 8).

Fair Value Measurement Techniques and Quantitative Information

At January 31, 2020, the Company performed a fair value assessment of each of the 2019 MTCA components that provided measurable economic benefit or detriment to the Company. Each fair value calculation was based on an income or market approach and relied on historical and forecasted net operating income (“NOI”), actuarial assumptions about the expected resident length of stay, and market data, including, but not limited to, discount rates ranging from 10% to 12%, annual rent escalators ranging from 2% to 3%, and real estate capitalization rates ranging from 7% to 9%. All assumptions were considered to be Level 3 measurements within the fair value hierarchy.

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Real Estate Transactions

6 Months Ended

Jun. 30, 2021

Real Estate [Abstract]

Real Estate Transactions

Real Estate Transactions

2021 Real Estate Investments

South San Francisco Land Site Acquisition

In October 2020, the Company executed a definitive agreement to acquire approximately 12 acres of land for $128 million. The acquisition site is located in South San Francisco, California, adjacent to two sites currently held by the Company as land for future development. The Company paid a $10 million nonrefundable deposit upon completing due diligence in November 2020. The first phase of the acquisition, with a purchase price of $61 million, closed in April 2021.

Westview Medical Plaza Acquisition

In February 2021, the Company acquired one medical office building (“MOB”) in Nashville, Tennessee for $13 million.

Pinnacle at Ridgegate Acquisition

In April 2021, the Company acquired one MOB in Denver, Colorado for $38 million.

MOB Portfolio Acquisition

In April 2021, the Company acquired 14 MOBs for $371 million (the “MOB Portfolio”). In conjunction with the acquisition, the Company issued $142 million of secured mortgage debt.

Westside Medical Plaza Acquisition

In June 2021, the Company acquired one MOB in Fort Lauderdale, Florida for $16 million.

Wesley Woodlawn Acquisition

In July 2021, the Company acquired one MOB in Wichita, Kansas for $50 million.

Atlantic Health Acquisition

In July 2021, the Company acquired three MOBs in Morristown, New Jersey for $155 million.

2020 Real Estate Investments

The Post Acquisition

In April 2020, the Company acquired a life science campus in Waltham, Massachusetts for $320 million.

Scottsdale Gateway Acquisition

In July 2020, the Company acquired one MOB in Scottsdale, Arizona for $27 million.

Midwest MOB Portfolio Acquisition

In October 2020, the Company acquired a portfolio of seven MOBs located in Indiana, Missouri, and Illinois for $169 million.

Cambridge Discovery Park Acquisition

In December 2020, the Company acquired three life science facilities in Cambridge, Massachusetts for $610 million and a 49% unconsolidated joint venture interest in a fourth property on the same campus for $54 million. If the fourth property is sold in a taxable transaction, the Company is generally obligated to indemnify its joint venture partner for its federal and state income taxes associated with the gain that existed at the time of the contribution to the joint venture.

Waldwick JV Interest Purchase

In October 2020, the Company acquired the remaining 15% equity interest of a senior housing joint venture structure (which owned one senior housing facility), in which the Company previously held an unconsolidated equity investment, for $4 million. Subsequent to the acquisition, the Company owned 100% of the equity, began consolidating the facility, and recognized a gain upon change of control of $6 million, which is recorded in other income (expense), net within income (loss) from discontinued operations. In December 2020, the Company sold the property as part of the Atria SHOP Portfolio disposition (see Note 5).

MBK JV Dissolution

In November 2020, as part of the dissolution of a senior housing joint venture, the Company was distributed one property, one land parcel, and $11 million in cash. Upon consolidating the property and land parcel at the time of distribution, the Company recognized a loss upon change of control of $16 million, which is recorded in other income (expense), net within income (loss) from discontinued operations. In conjunction with the distribution of the property, the Company assumed $36 million of secured mortgage debt (classified as liabilities related to assets held for sale and discontinued operations, net) maturing in 2025, which was recorded at its fair value through asset acquisition accounting. The property was classified as discontinued operations as of June 30, 2021.

Other Real Estate Acquisitions

In December 2020, the Company acquired one hospital in Dallas, Texas for $34 million.

Development Activities

The Company’s commitments, which are primarily related to development and redevelopment projects and tenant improvements, increased by $41 million, to $347 million at June 30, 2021, when compared to December 31, 2020, primarily as a result of increased commitments on existing projects and new projects started during the first half of 2021.

In March 2021, management reviewed the estimated useful lives of certain life science properties in connection with future plans of densification on campuses where the Company has densification opportunities. These changes in the planned use of the properties resulted in the Company updating the estimated useful lives of the properties, which differ from the Company’s previous estimates. The estimated useful lives of these properties was reduced from a weighted average remaining useful life of 15 years to 6 years to reflect the timing of the planned densification projects. For the three and six months ended June 30, 2021, this change in estimate increased depreciation expense by $11 million and $15 million, respectively, resulting in a corresponding decrease to income (loss) from continuing operations and net income (loss), as well as a decrease of approximately $0.02 and $0.03, respectively, to basic and diluted earnings per share.

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Dispositions of Real Estate and Discontinued Operations

6 Months Ended

Jun. 30, 2021

Discontinued Operations and Disposal Groups [Abstract]

Dispositions of Real Estate and Discontinued Operations

Dispositions of Real Estate and Discontinued Operations

2021 Dispositions of Real Estate

Sunrise Senior Housing Portfolio

In January 2021, the Company sold a portfolio of 32 SHOP assets (the “Sunrise Senior Housing Portfolio”) for $664 million, resulting in an immaterial loss on sale, which is recognized in income (loss) from discontinued operations, and provided the buyer with: (i) financing of $410 million (see Note 7) and (ii) a commitment to finance up to $92 million of additional debt for capital expenditures. The commitment to finance additional debt for capital expenditures was subsequently reduced to $56 million during June 2021, none of which had been funded as of June 30, 2021 (see Note 7). Upon completion of the license transfer process in June 2021, the Company sold the two remaining Sunrise senior housing triple-net assets for $80 million, resulting in a gain on sale of $22 million, which is recognized in income (loss) from discontinued operations.

Brookdale Triple-Net Portfolio

In January 2021, the Company sold 24 senior housing assets in a triple-net lease with Brookdale for $510 million, resulting in total gain on sale of $169 million, which is recognized in income (loss) from discontinued operations.

Additional SHOP Portfolio

In January 2021, the Company sold a portfolio of 16 SHOP assets for $230 million, resulting in total gain on sale of $59 million, which is recognized in income (loss) from discontinued operations, and provided the buyer with financing of $150 million (see Note 7).

HRA Triple-Net Portfolio

In February 2021, the Company sold eight senior housing assets in a triple-net lease with Harbor Retirement Associates for $132 million, resulting in total gain on sale of $33 million, which is recognized in income (loss) from discontinued operations.

Oakmont SHOP Portfolio

In April 2021, the Company sold a portfolio of 12 SHOP assets for $564 million. In conjunction with the sale, mortgage debt held on two properties with a carrying value of $64 million was repaid and the remaining mortgage debt held on four properties with a carrying value of $107 million was assumed by the buyer. The transaction resulted in total gain on sale of $80 million, which is recognized in income (loss) from discontinued operations.

Discovery SHOP Portfolio

In April 2021, the Company sold a portfolio of 10 SHOP assets for $334 million, resulting in total gain on sale of $9 million, which is recognized in income (loss) from discontinued operations. Also included in this transaction was the sale of two mezzanine loans and two preferred equity investments for $21 million, resulting in no gain or loss on sale of the investments (collectively, the “Discovery SHOP Portfolio”).

Sonata SHOP Portfolio

In April 2021, the Company sold a portfolio of five SHOP assets for $64 million, resulting in total gain on sale of $3 million, which is recognized in income (loss) from discontinued operations.

SLC SHOP Portfolio

In May 2021, the Company sold seven SHOP assets for $113 million and repaid $70 million of mortgage debt that was held on six of the assets, resulting in total gain on sale of $1 million, which is recognized in income (loss) from discontinued operations.

Hoag Hospital Disposition

In May 2021, the Company sold one hospital for $226 million through the exercise of a purchase option by a tenant, resulting in gain on sale of $172 million.

2021 Other Dispositions

In addition to the sales discussed above, during the three months ended June 30, 2021, the Company sold the following: (i) six SHOP assets for $44 million, (ii) three senior housing triple-net assets for $12 million, and (iii) four MOBs for $21 million, resulting in total gain on sales of $10 million ($7 million of which is recognized in income (loss) from discontinued operations). In addition to the sales for the three months ended June 30, 2021 discussed above, during the six months ended June 30, 2021, the Company sold one SHOP asset for $5 million, resulting in an immaterial gain on sale, which is recognized in income (loss) from discontinued operations.

2020 Dispositions of Real Estate

During the three months ended June 30, 2020, the Company sold the following: (i) two SHOP assets for $28 million and (ii) three MOBs for $106 million (through the exercise of a purchase option by a tenant), resulting in total gain on sales of $83 million ($2 million of which is recognized in income (loss) from discontinued operations).

During the six months ended June 30, 2020, the Company sold the following: (i) 9 SHOP assets for $64 million, (ii) 18 senior housing triple-net assets for $385 million (representative of the 18 facilities sold to Brookdale under the 2019 MTCA - see Note 3), and (iii) 3 MOBs for $106 million (through the exercise of a purchase option by a tenant), resulting in total gain on sales of $247 million ($164 million of which is recognized in income (loss) from discontinued operations).

Aegis NNN Portfolio

In December 2020, the Company sold 10 senior housing triple-net assets (the “Aegis NNN Portfolio”) for $358 million and repaid $6 million of variable rate secured mortgage debt held on one asset, resulting in total gain on sale of $228 million, which is recognized in income (loss) from discontinued operations.

Atria SHOP Portfolio

In December 2020, the Company sold 12 SHOP assets (the “Atria SHOP Portfolio”) for $312 million, resulting in total gain on sale of $39 million, which is recognized in income (loss) from discontinued operations. The Company provided the buyer with financing of $61 million on four of the assets sold (see Note 7).

2020 Other Dispositions

In addition to the portfolio sales discussed above, during the year ended December 31, 2020, the Company sold the following: (i) 23 SHOP assets for $190 million, (ii) 21 senior housing triple-net assets for $428 million (inclusive of the 18 facilities sold to Brookdale under the 2019 MTCA - see Note 3), (iii) 11 MOBs for $136 million (inclusive of the exercise of a purchase option by a tenant to acquire 3 MOBs in San Diego, California), (iv) 2 MOB land parcels for $3 million, and (v) 1 asset from other non-reportable segments for $1 million, resulting in total gain on sales of $283 million ($193 million of which is recognized in income (loss) from discontinued operations).

Held for Sale and Discontinued Operations

During 2020, the Company established and began executing a plan to dispose of its senior housing triple-net and SHOP properties. As of December 31, 2020, the Company concluded that the planned dispositions represented a strategic shift that has had and will have a major effect on the Company’s operations and financial results. Therefore, senior housing triple-net and SHOP assets meeting the held for sale criteria on or before June 30, 2021 are classified as discontinued operations in all periods presented herein.

The following summarizes the assets and liabilities classified as discontinued operations at June 30, 2021 and December 31, 2020, which are included in assets held for sale and discontinued operations, net and liabilities related to assets held for sale and discontinued operations, net, respectively, on the consolidated balance sheets (in thousands):

	June 30, 2021		December 31, 2020
ASSETS
Real estate:
Buildings and improvements	$	106,495	$	2,553,254
Development costs and construction in progress	11,255		21,509
Land	24,215		355,803
Accumulated depreciation and amortization	(42,999)		(615,708)
Net real estate	98,966		2,314,858
Investments in and advances to unconsolidated joint ventures	—		5,842
Accounts receivable, net of allowance of $4,951 and $5,873	10,928		20,500
Cash and cash equivalents	17,354		53,085
Restricted cash	974		17,168
Intangible assets, net	6,596		24,541
Right-of-use asset, net	104		4,109
Other assets, net(1)	29,908		103,965
Total assets of discontinued operations, net(2)	164,830		2,544,068
Assets held for sale, net(3)	81,977		82,238
Assets held for sale and discontinued operations, net	$	246,807	$	2,626,306
LIABILITIES
Mortgage debt(4)	$	37,069	$	318,876
Lease liability	104		3,189
Accounts payable, accrued liabilities, and other liabilities	26,564		79,411
Deferred revenue	797		11,442
Total liabilities of discontinued operations, net(2)	64,534		412,918
Liabilities related to assets held for sale, net(3)	738		2,819
Liabilities related to assets held for sale and discontinued operations, net	$	65,272	$	415,737

_______________________________________

(1)Includes goodwill of $22 million and $29 million as of June 30, 2021 and December 31, 2020, respectively.

(2)At June 30, 2021, four senior housing triple-net facilities and eight SHOP facilities were classified as held for sale and discontinued operations. At December 31, 2020, 41 senior housing triple-net facilities, 97 SHOP facilities, and 1 SHOP joint venture were classified as held for sale and discontinued operations.

(3)As of June 30, 2021, primarily comprised of the following: (i) four MOBs with net real estate assets of $26 million and right-of-use asset, net of $3 million and (ii) two loans receivable with a total carrying value of $53 million. As of December 31, 2020, primarily comprised of six MOBs with net real estate assets of $73 million and deferred revenue of $2 million.

(4)During the three months ended June 30, 2021 and 2020, the Company made full and partial repayments of mortgage debt classified as discontinued operations of $241 million and $1 million, respectively. During the six months ended June 30, 2021 and 2020, the Company made full and partial repayments of mortgage debt classified as discontinued operations of $281 million and $6 million, respectively.

The results of discontinued operations through June 30, 2021, or the disposal date of each asset or portfolio of assets if they have been sold, are included in the consolidated results for the three and six months ended June 30, 2021 and 2020. Summarized financial information for discontinued operations for the three and six months ended June 30, 2021 and 2020 are as follows (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
Revenues:
Rental and related revenues	$	1,613	$	24,110	$	6,841	$	56,481
Resident fees and services	30,273		155,771		103,270		327,496
Total revenues	31,886		179,881		110,111		383,977
Costs and expenses:
Interest expense	1,177		2,727		3,853		5,412
Depreciation and amortization	—		38,797		—		102,961
Operating	33,647		138,033		105,165		276,669
Transaction costs	—		254		76		539
Impairments and loan loss reserves (recoveries), net	10,995		17,213		10,995		45,229
Total costs and expenses	45,819		197,024		120,089		430,810
Other income (expense):
Gain (loss) on sales of real estate, net	122,238		1,579		381,900		164,379
Other income (expense), net	128		2,171		6,012		2,126
Total other income (expense), net	122,366		3,750		387,912		166,505
Income (loss) before income taxes and equity income (loss) from unconsolidated joint ventures	108,433		(13,393)		377,934		119,672
Income tax benefit (expense)	302		7,452		1,124		10,628
Equity income (loss) from unconsolidated joint ventures	5,225		649		4,910		(184)
Income (loss) from discontinued operations	$	113,960	$	(5,292)	$	383,968	$	130,116

Impairments of Real Estate

2021

During the three and six months ended June 30, 2021, the Company recognized an impairment charge of $4 million related to one SHOP asset classified as held for sale, which is reported in income (loss) from discontinued operations. Following a reduction in the expected sales price of the asset occurring in the second quarter of 2021, the Company wrote down its carrying value of $20 million to its fair value, less estimated costs to sell, of $16 million.

The fair value of the impaired asset was based on a forecasted sales price, which is considered to be a Level 3 measurement within the fair value hierarchy. The Company’s forecasted sales prices are typically determined using an income approach and/or a market approach (comparable sales model), which rely on certain assumptions by management, including: (i) market capitalization rates, (ii) comparable market transactions, (iii) estimated prices per unit, (iv) negotiations with prospective buyers, and (v) forecasted cash flow streams (lease revenue rates, expense rates, growth rates, etc.). There are inherent uncertainties in making these assumptions. For the Company’s impairment calculation as of June 30, 2021, the Company’s fair value estimate primarily relied on a market approach and utilized comparable market transactions and negotiations with prospective buyers.

2020

During the three months ended June 30, 2020, the Company recognized an aggregate impairment charge of $19 million ($17 million of which is reported in income (loss) from discontinued operations) related to 12 SHOP assets, 2 senior housing triple-net assets, 1 MOB, and 1 undeveloped MOB land parcel as a result of being classified as held for sale and wrote down their aggregate carrying value of $108 million to their aggregate fair value, less estimated costs to sell, of $89 million.

During the six months ended June 30, 2020, the Company recognized an aggregate impairment charge of $50 million ($45 million of which is reported in income (loss) from discontinued operations) related to 20 SHOP assets, 4 senior housing triple-net assets, 2 MOBs, and 1 undeveloped MOB land parcel as a result of being classified as held for sale and wrote down their aggregate carrying value of $231 million to their aggregate fair value, less estimated costs to sell, of $181 million.

For the Company’s impairment calculations during the six months ended and as of June 30, 2020, the Company’s fair value estimates primarily relied on a market approach and utilized prices per unit ranging from $35,000 to $238,000, with a weighted average price based on relative fair value of $90,000.

Goodwill Impairment

When testing goodwill for impairment, if the Company concludes that it is more likely than not that the fair value of a reporting unit is less than its carrying value, the Company recognizes an impairment loss for the amount by which the carrying value, including goodwill, exceeds the reporting unit’s fair value. Following the senior housing triple-net and SHOP dispositions during the period, the Company performed an impairment assessment to evaluate the fair value of its reporting units as of June 30, 2021. These fair value estimates primarily relied on a market approach, utilizing comparable market transactions, forecasted sales prices, and negotiations with prospective buyers. These estimates are considered to be a Level 3 measurement within the fair value hierarchy, and are subject to inherent uncertainties.

As a result of this assessment, during the three and six months ended June 30, 2021, the Company recognized a $7 million goodwill impairment charge reported in income (loss) from discontinued operations as the fair value of the remaining assets based on forecasted sales prices was less than the carrying value of the assets, including the related goodwill. The fair value was greater than the carrying value of the assets and related goodwill of all other reporting units, and as a result, no impairment loss was recognized.

Deferred Tax Asset Valuation Allowance

In conjunction with the Company establishing a plan during the year ended December 31, 2020 to dispose of all of its SHOP assets and classifying such assets as discontinued operations, the Company concluded it was more likely than not that it would no longer realize the future value of certain deferred tax assets generated by the net operating losses of its taxable REIT subsidiary entities. Accordingly, the Company recognized a deferred tax asset valuation allowance of $33 million as of December 31, 2020.

As of June 30, 2021, the Company had a deferred tax asset valuation allowance of $34 million.

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Leases

6 Months Ended

Jun. 30, 2021

Leases [Abstract]

Leases

Leases

Lease Income

The following table summarizes the Company’s lease income, excluding discontinued operations (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
Fixed income from operating leases	$	268,290	$	231,569	$	531,246	$	457,795
Variable income from operating leases	72,352		56,684		137,368		112,775
Interest income from direct financing leases	2,180		2,150		4,343		5,419

Direct Financing Leases

Net investment in DFLs consists of the following (dollars in thousands):

	June 30, 2021		December 31, 2020
Present value of minimum lease payments receivable	$	5,579	$	9,804
Present value of estimated residual value	44,706		44,706
Less deferred selling profits	(5,579)		(9,804)
Net investment in direct financing leases	$	44,706	$	44,706

Direct Financing Lease Internal Ratings

At June 30, 2021, the Company had one hospital under a DFL with a carrying amount of $45 million and an internal rating of “performing”.

2020 Direct Financing Lease Sale

During the first quarter of 2020, the Company sold a hospital under a DFL for $82 million and recognized a gain on sale of $42 million, which is included in other income (expense), net.

COVID-19 Rent Deferrals

During the second and third quarters of 2020, the Company agreed to defer rent from certain tenants in the medical office segment that were impacted by COVID-19, with the requirement that all deferred rent be repaid by the end of 2020. Under this program, through June 30, 2020, approximately $6 million of rent was deferred for the medical office segment, all of which had been collected as of December 31, 2020.

Additionally, through June 30, 2020, the Company granted approximately $1 million of rent deferrals to certain tenants in the life science segment that were impacted by COVID-19, all of which had been collected as of December 31, 2020.

No such deferrals were granted during the three and six months ended June 30, 2021.

The rent deferrals granted do not impact the pattern of revenue recognition or amount of revenue recognized (refer to Note 2 for additional information).

Leases

Leases

Lease Income

The following table summarizes the Company’s lease income, excluding discontinued operations (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
Fixed income from operating leases	$	268,290	$	231,569	$	531,246	$	457,795
Variable income from operating leases	72,352		56,684		137,368		112,775
Interest income from direct financing leases	2,180		2,150		4,343		5,419

Direct Financing Leases

Net investment in DFLs consists of the following (dollars in thousands):

	June 30, 2021		December 31, 2020
Present value of minimum lease payments receivable	$	5,579	$	9,804
Present value of estimated residual value	44,706		44,706
Less deferred selling profits	(5,579)		(9,804)
Net investment in direct financing leases	$	44,706	$	44,706

Direct Financing Lease Internal Ratings

At June 30, 2021, the Company had one hospital under a DFL with a carrying amount of $45 million and an internal rating of “performing”.

2020 Direct Financing Lease Sale

During the first quarter of 2020, the Company sold a hospital under a DFL for $82 million and recognized a gain on sale of $42 million, which is included in other income (expense), net.

COVID-19 Rent Deferrals

During the second and third quarters of 2020, the Company agreed to defer rent from certain tenants in the medical office segment that were impacted by COVID-19, with the requirement that all deferred rent be repaid by the end of 2020. Under this program, through June 30, 2020, approximately $6 million of rent was deferred for the medical office segment, all of which had been collected as of December 31, 2020.

Additionally, through June 30, 2020, the Company granted approximately $1 million of rent deferrals to certain tenants in the life science segment that were impacted by COVID-19, all of which had been collected as of December 31, 2020.

No such deferrals were granted during the three and six months ended June 30, 2021.

The rent deferrals granted do not impact the pattern of revenue recognition or amount of revenue recognized (refer to Note 2 for additional information).

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Loans Receivable

6 Months Ended

Jun. 30, 2021

Receivables [Abstract]

Loans Receivable

Loans Receivable

The following table summarizes the Company’s loans receivable (in thousands):

	June 30, 2021		December 31, 2020
Secured loans(1)	$	416,729	$	161,530
Mezzanine and other	22,943		44,347
Unamortized discounts, fees, and costs	(6,398)		(222)
Reserve for loan losses	(4,198)		(10,280)
Loans receivable, net	$	429,076	$	195,375

_______________________________________

(1)At June 30, 2021, the Company had $61 million remaining of commitments to fund senior housing redevelopment and capital expenditure projects. At December 31, 2020, the Company had $11 million remaining of commitments to fund senior housing redevelopment and capital expenditure projects.

SHOP Seller Financing

In conjunction with the sale of 32 SHOP facilities in the Sunrise Senior Housing Portfolio for $664 million in January 2021 (see Note 5), the Company provided the buyer with initial financing of $410 million. The remainder of the sales price was received in cash at the time of sale. Additionally, the Company agreed to provide up to $92 million of additional financing for capital expenditures (up to 65% of the estimated cost of capital expenditures). The additional financing was subsequently reduced to $56 million in conjunction with the principal repayments discussed below, none of which had been funded as of June 30, 2021. The initial and additional financing is secured by the buyer's equity ownership in each property.

In conjunction with the sale of 16 additional SHOP facilities for $230 million in January 2021 (see Note 5), the Company provided the buyer with financing of $150 million. The remainder of the sales price was received in cash at the time of sale. The financing is secured by the buyer's equity ownership in each property.

In June 2021, the Company received principal repayments of $246 million on the initial financing provided in conjunction with the sale of the Sunrise Senior Housing Portfolio in January 2021. The Company accelerated recognition of $7 million of the related mark-to-market discount, which is included in interest income in the Consolidated Statements of Operations.

In December 2020, in conjunction with the sale of 4 of the 12 SHOP facilities in the Atria SHOP Portfolio for $94 million (see Note 5), the Company provided the buyer with financing of $61 million. The remainder of the sales price was received in cash at the time of sale. The financing is secured by the buyer's equity ownership in each of the four properties.

During the first quarter of 2021, the Company reduced the consideration and reported gain on sales of real estate and recognized a mark-to-market discount of $16 million for certain transactions with seller financing. The Company’s discount is based on the difference between the stated interest rates (ranging from 3.50% to 4.50%) and corresponding prevailing market rates of approximately 5.25% as of the transaction dates. The discount is recognized as interest income over the term of the discounted loans (ranging from one to three years) using the effective interest rate method. During the three and six months ended June 30, 2021, the Company recognized $9 million and $10 million, respectively, of non-cash interest income related to the amortization of its mark-to-market discounts, of which $7 million was recognized as a result of the accelerated recognition discussed above related to the Sunrise Senior Housing Portfolio. The Company did not recognize any non-cash interest income associated with seller financing notes receivable during the three and six months ended June 30, 2020.

2021 Other Loans Receivable Transactions

The Company classifies a loan receivable as held for sale when management no longer has the intent and ability to hold the loan receivable for the foreseeable future or until maturity. If a loan receivable is classified as held for sale, previously recorded reserves for loan losses are reversed and the loan is reported at the lower of amortized cost or fair value. At June 30, 2021, two loans receivable with a total amortized cost of $64 million were classified as held for sale (see Note 5). Upon the transfer of these two loans to held for sale, the carrying value was decreased by $11 million to estimated fair value of $53 million, $8 million of which was previously recognized as a reserve for loan losses. As a result, a $3 million net loss was recognized in impairments and loan loss reserves (recoveries), net during the three and six months ended June 30, 2021.

These fair value estimates were made for each individual loan classified as held for sale and primarily relied on a market approach, utilizing comparable market transactions, forecasted sales prices, and negotiations with prospective buyers. These estimates are considered to be a Level 3 measurement within the fair value hierarchy, and are subject to inherent uncertainties.

In April 2021, the Company sold two mezzanine loans as part of the Discovery SHOP Portfolio disposition (see Note 5), resulting in no gain or loss on sale of the mezzanine loans.

In May 2021, the Company received a $10 million principal repayment related to one of its secured loans.

In July 2021, the Company received repayment of the outstanding balance of an $8 million secured loan.

2020 Other Loans Receivable Transactions

For certain residents that qualify, CCRCs may offer to lend residents the necessary funds to satisfy the entrance fee requirements so that they are able to move into a community while still continuing the process of selling their previous home. The loans are due upon sale of the previous residence. Upon completing the CCRC Acquisition (see Note 3) in January 2020, the Company began consolidating 13 CCRCs, which held approximately $30 million of such notes receivable from various community residents at the time of acquisition. At June 30, 2021 and December 31, 2020, the Company held $22 million and $23 million of such notes receivable, respectively, which are included in mezzanine and other in the table above.

In November 2020, the Company sold one mezzanine loan with a $10 million principal balance for $8 million, resulting in a $2 million loss recognized in impairments and loan loss reserves (recoveries), net.

In December 2020, the Company sold one secured loan with a $115 million principal balance for $109 million, resulting in a $6 million loss recognized in impairments and loan loss reserves (recoveries), net.

Loans Receivable Internal Ratings

In connection with the Company’s quarterly review process or upon the occurrence of a significant event, loans receivable are reviewed and assigned an internal rating of Performing, Watch List, or Workout. Loans that are deemed Performing meet all present contractual obligations, and collection and timing of all amounts owed is reasonably assured. Watch List Loans are defined as loans that do not meet the definition of Performing or Workout. Workout Loans are defined as loans in which the Company has determined, based on current information and events, that: (i) it is probable it will be unable to collect all amounts due according to the contractual terms of the agreement, (ii) the borrower is delinquent on making payments under the contractual terms of the agreement, and (iii) the Company has commenced action or anticipates pursuing action in the near term to seek recovery of its investment.

The following table summarizes, by year of origination, the Company’s internal ratings for loans receivable, net of unamortized discounts, fees, and costs and reserves for loan losses, as of June 30, 2021 (dollars in thousands):

Investment Type	Year of Origination												Total
	2021		2020		2019		2018		2017		Prior
Secured loans
Risk rating:
Performing loans	$	307,375	$	89,315	$	9,458	$	—	$	—	$	—	$	406,148
Watch list loans	—		—		—		—		—		—		—
Workout loans	—		—		—		—		—		—		—
Total secured loans	$	307,375	$	89,315	$	9,458	$	—	$	—	$	—	$	406,148
Mezzanine and other
Risk rating:
Performing loans	$	19,324	$	3,492	$	112	$	—	$	—	$	—	$	22,928
Watch list loans	—		—		—		—		—		—		—
Workout loans	—		—		—		—		—		—		—
Total mezzanine and other	$	19,324	$	3,492	$	112	$	—	$	—	$	—	$	22,928

Reserve for Loan Losses

The Company evaluates the liquidity and creditworthiness of its borrowers on a quarterly basis. The Company’s evaluation considers industry and economic conditions, individual and portfolio property performance, credit enhancements, liquidity, and other factors. The Company’s borrowers furnish property, portfolio, and guarantor/operator-level financial statements, among other information, on a monthly or quarterly basis, which the Company utilizes to calculate the debt service coverages used in its assessment of internal ratings, which is a primary credit quality indicator. Debt service coverage information is evaluated together with other property, portfolio, and operator performance information, including revenue, expense, NOI, occupancy, rental rates, capital expenditures, and EBITDA (defined as earnings before interest, tax, and depreciation and amortization), along with other liquidity measures.

In its assessment of current expected credit losses for loans receivable and unfunded loan commitments, the Company utilizes past payment history of its borrowers, current economic conditions, and forecasted economic conditions through the maturity date of each loan to estimate a probability of default and a resulting loss for each loan receivable. Future economic conditions are based primarily on near-term economic forecasts from the Federal Reserve and reasonable assumptions for long-term economic trends.

The following table summarizes the Company’s reserve for loan losses (in thousands):

	June 30, 2021						December 31, 2020
	Secured Loans		Mezzanine and Other		Total		Secured Loans		Mezzanine and Other		Total
Reserve for loan losses, beginning of period	$	3,152	$	7,128	$	10,280	$	—	$	—	$	—
Cumulative-effect of adopting of ASU 2016-13 to beginning retained earnings	—		—		—		513		907		1,420
Expected loan losses related to loans sold(1)	—		(675)		(675)		(259)		(8,135)		(8,394)
Expected loan losses related to loans transferred to held for sale(2)	(498)		(7,340)		(7,838)		—		—		—
Provision for expected loan losses	1,529		902		2,431		2,898		14,356		17,254
Reserve for loan losses, end of period	$	4,183	$	15	$	4,198	$	3,152	$	7,128	$	10,280

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(1)Includes two loans sold during the six months ended June 30, 2021 and three loans sold during the year ended December 31, 2020.

(2)Includes two loans held for sale at June 30, 2021.

Additionally, at June 30, 2021 and December 31, 2020, a liability of $0.2 million and $1 million, respectively, related to expected credit losses for unfunded loan commitments was included in accounts payable, accrued liabilities, and other liabilities.

Credit loss expenses and recoveries are recorded in impairments and loan loss reserves (recoveries), net. During the three months ended June 30, 2021 and 2020, the net credit loss expense was $1 million and $5 million, respectively. During the six months ended June 30, 2021 and 2020, the net credit loss expense was $4 million and $13 million, respectively. The change in the reserve for expected loan losses during the three and six months ended June 30, 2021 is primarily due to the following: (i) principal repayments on loans receivable, (ii) transfers of loans receivable held for investment to loans receivable held for sale, (iii) the sale of two mezzanine loans as part of the Discovery SHOP Portfolio disposition (see Note 5), and (iv) a more positive economic outlook on COVID-19.

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Investments in and Advances to Unconsolidated Joint Ventures

6 Months Ended

Jun. 30, 2021

Equity Method Investments and Joint Ventures [Abstract]

Investments in and Advances to Unconsolidated Joint Ventures

Investments in and Advances to Unconsolidated Joint Ventures

The Company owns interests in the following entities that are accounted for under the equity method, excluding investments classified as discontinued operations (dollars in thousands): 

				Carrying Amount
				June 30,		December 31,
Entity(1)(2)	Segment	Property Count(3)	Ownership %(3)	2021		2020
SWF SH JV	Other	19	54	$	352,368	$	357,581
Life Science JV	Life science	1	49	24,505		24,879
Medical Office JVs(4)	Medical office	3	20 - 67	9,501		9,673
CCRC JV(5)	CCRC	—	—	2,041		1,581
Other JVs(6)	Other	—	—	—		9,157
				$	388,415	$	402,871

_______________________________________

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

(2)Excludes the Otay Ranch JV (90% ownership percentage), which is classified as discontinued operations and had an aggregate carrying value of $6 million at December 31, 2020 (see Note 5). In April 2021, the SHOP property in the Otay Ranch JV was sold, resulting in the Company’s share of proceeds of $32 million and a gain on sale of $5 million recognized in equity income (loss) from unconsolidated joint ventures within income (loss) from discontinued operations.

(3)Property count and ownership percentage are as of June 30, 2021.

(4)Includes three unconsolidated medical office joint ventures in which the Company holds an ownership percentage as follows: (i) Ventures IV (20%); (ii) Ventures III (30%); and (iii) Suburban Properties, LLC (67%).

(5)See Note 3 for a discussion of the 2019 MTCA with Brookdale, including the acquisition of Brookdale’s interest in 13 of the 15 communities in the CCRC JV in January 2020. In May 2021, the two remaining CCRCs were sold for $38 million, $19 million of which represents the Company’s 49% interest, resulting in an immaterial gain on sale recorded within equity income (loss) from unconsolidated joint ventures.

(6)In April 2021, the Company sold its two preferred equity investments for their carrying value as part of the Discovery SHOP Portfolio disposition (see Note 5). At December 31, 2020, includes two unconsolidated other joint ventures in which the Company’s ownership percentage is as follows: (i) Discovery Naples JV (41%) and (ii) Discovery Sarasota JV (47%).

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Intangibles

6 Months Ended

Jun. 30, 2021

Intangibles [Abstract]

Intangibles

Intangibles

Intangible assets primarily consist of lease-up intangibles and above market tenant lease intangibles. The following table summarizes the Company’s intangible lease assets (dollars in thousands):

Intangible lease assets	June 30, 2021		December 31, 2020
Gross intangible lease assets	$	794,423	$	761,328
Accumulated depreciation and amortization	(282,811)		(241,411)
Intangible assets, net(1)	$	511,612	$	519,917
Weighted average remaining amortization period in years	6		5

_______________________________________

(1)Excludes intangible assets reported in assets held for sale and discontinued operations, net of $7 million and $25 million as of June 30, 2021 and December 31, 2020, respectively.

Intangible liabilities consist of below market lease intangibles. The following table summarizes the Company’s intangible lease liabilities (dollars in thousands):

Intangible lease liabilities	June 30, 2021		December 31, 2020
Gross intangible lease liabilities	$	197,623	$	194,565
Accumulated depreciation and amortization	(58,507)		(50,366)
Intangible liabilities, net	$	139,116	$	144,199
Weighted average remaining amortization period in years	8		8

During the six months ended June 30, 2021, in conjunction with the Company’s acquisitions of real estate, the Company acquired intangible assets of $44 million and intangible liabilities of $6 million. The intangible assets and liabilities acquired had a weighted average amortization period at acquisition of 9 years and 7 years, respectively.

During the year ended December 31, 2020, in conjunction with the Company’s acquisitions of real estate, the Company acquired intangible assets of $352 million and intangible liabilities of $83 million. The intangible assets and intangible liabilities acquired had a weighted average amortization period at acquisition of 7 years and 9 years, respectively.

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Debt

6 Months Ended

Jun. 30, 2021

Debt Disclosure [Abstract]

Debt

Debt

Bank Line of Credit and Term Loan

On May 23, 2019, the Company executed a $2.5 billion unsecured revolving line of credit facility (the “Revolving Facility”), which matures on May 23, 2023 and contains two six-month extension options, subject to certain customary conditions. Borrowings under the Revolving Facility accrue interest at LIBOR plus a margin that depends on credit ratings of the Company’s senior unsecured long-term debt. The Company pays a facility fee on the entire revolving commitment that depends on its credit ratings. Based on those credit ratings at June 30, 2021, the margin on the Revolving Facility was 0.83% and the facility fee was 0.15%. At June 30, 2021 and December 31, 2020, the Company had no balance outstanding under the Revolving Facility.

In May 2019, the Company also entered into a $250 million unsecured term loan facility, which the Company fully drew down during the second quarter of 2019 (the “2019 Term Loan” and, together with the Revolving Facility, the “Facilities”). The 2019 Term Loan matures on May 23, 2024. Based on credit ratings for the Company’s senior unsecured long-term debt at June 30, 2021, the 2019 Term Loan accrues interest at a rate of LIBOR plus 0.90%, with a weighted average effective interest rate of 1.09%.

In July 2021, the Company repaid the $250 million outstanding balance on the 2019 Term Loan.

The Facilities include a feature that allows the Company to increase the borrowing capacity by an aggregate amount of up to $750 million, subject to securing additional commitments. The Facilities also contain certain financial restrictions and other customary requirements, including cross-default provisions to other indebtedness. Among other things, these covenants, using terms defined in the agreements: (i) limit the ratio of Enterprise Total Indebtedness to Enterprise Gross Asset Value to 60%; (ii) limit the ratio of Enterprise Secured Debt to Enterprise Gross Asset Value to 40%; (iii) limit the ratio of Enterprise Unsecured Debt to Enterprise Unencumbered Asset Value to 60%; (iv) require a minimum Fixed Charge Coverage ratio of 1.5 times; and (v) require a minimum Consolidated Tangible Net Worth of $7.0 billion. At June 30, 2021, the Company believes it was in compliance with each of these restrictions and requirements of the Facilities.

Commercial Paper Program

In September 2019, the Company established an unsecured commercial paper program (the “Commercial Paper Program”). Under the terms of the Commercial Paper Program, the Company may issue, from time to time, unsecured short-term debt securities with varying maturities. Amounts available under the Commercial Paper Program may be borrowed, repaid, and re-borrowed from time to time. In April 2021, the Company increased the maximum aggregate face or principal amount that can be outstanding at any one time from $1.0 billion to $1.25 billion. Amounts borrowed under the Commercial Paper Program will be sold on terms that are customary for the U.S. commercial paper market and will be at least equal in right of payment with all of the Company’s other unsecured and unsubordinated indebtedness. The Company uses its Revolving Facility as a liquidity backstop for the repayment of unsecured short-term debt securities issued under the Commercial Paper Program. At June 30, 2021, the Company had $720 million of securities outstanding under the Commercial Paper Program, with original maturities of approximately one month and a weighted average interest rate of 0.24%. At December 31, 2020, the Company had $130 million of securities outstanding under the Commercial Paper Program, with original maturities of approximately one month and a weighted average interest rate of 0.30%.

Senior Unsecured Notes

At June 30, 2021, the Company had senior unsecured notes outstanding with an aggregate principal balance of $3.75 billion. The senior unsecured notes contain certain covenants including limitations on debt, maintenance of unencumbered assets, cross-acceleration provisions and other customary terms. The Company believes it was in compliance with these covenants at June 30, 2021.

The following table summarizes the Company’s senior unsecured notes repurchases and redemptions during the six months ended June 30, 2021 (dollars in thousands):

Payoff Date	Amount		Coupon Rate		Maturity Year
May 19, 2021(1)	$	251,806	3.40	%	2025
May 19, 2021(1)	298,194		4.00	%	2025
February 26, 2021(2)	188,000		4.25	%	2023
February 26, 2021(2)	149,000		4.20	%	2024
February 26, 2021(2)	331,000		3.88	%	2024
January 28, 2021(2)	112,000		4.25	%	2023
January 28, 2021(2)	201,000		4.20	%	2024
January 28, 2021(2)	469,000		3.88	%	2024

_______________________________________

(1)Upon repurchasing a portion of the 3.40% and 4.00% senior unsecured notes due 2025, the Company recognized a $61 million loss on debt extinguishment.

(2)Upon completing the repurchases and redemptions of all outstanding 4.25%, 4.20%, and 3.88% senior unsecured notes due 2023 and 2024, the Company recognized a $164 million loss on debt extinguishment.

There were no senior unsecured notes issuances during the six months ended June 30, 2021.

In July 2021, the Company completed its inaugural green bond offering. The net proceeds from the offering were allocated to the Company’s previous acquisition of Cambridge Discovery Park, completed in December 2020 (see Note 4), which has received LEED Gold certification and qualifies as an eligible green project. However, the Company may choose to allocate or re-allocate net proceeds to one more other eligible green projects. The senior unsecured notes were issued and the proceeds were received on July 12, 2021 as follows (dollars in thousands):

Issue Date	Amount		Coupon Rate		Maturity Year
July 12, 2021	$	450,000	1.35	%	2027

The following table summarizes the Company’s senior unsecured notes repurchases and redemptions during the year ended December 31, 2020 (dollars in thousands):

Payoff Date	Amount		Coupon Rate		Maturity Year
July 9, 2020(1)	$	300,000	3.15	%	2022
June 24, 2020(2)	250,000		4.25	%	2023

_______________________________________

(1)Upon completing the redemption of all outstanding 3.15% senior unsecured notes due 2022, the Company recognized an $18 million loss on debt extinguishment.

(2)Upon repurchasing a portion of the 4.25% senior unsecured notes due 2023, the Company recognized a $26 million loss on debt extinguishment.

The following table summarizes the Company’s senior unsecured notes issuances during the year ended December 31, 2020 (dollars in thousands):

Issue Date	Amount		Coupon Rate		Maturity Year
June 23, 2020	$	600,000	2.88	%	2031

Mortgage Debt

At June 30, 2021 and December 31, 2020, the Company had $356 million and $217 million, respectively, in aggregate principal of mortgage debt outstanding (excluding mortgage debt on assets held for sale and discontinued operations), which was secured by 19 and 6 healthcare facilities, respectively, with an aggregate carrying value of $845 million and $517 million, respectively.

Mortgage debt generally requires monthly principal and interest payments, is collateralized by real estate assets, and is non-recourse. Mortgage debt typically restricts transfer of the encumbered assets, prohibits additional liens, restricts prepayment, requires payment of real estate taxes, requires maintenance of the assets in good condition, requires insurance on the assets, and includes conditions to obtain lender consent to enter into or terminate material leases. Some of the mortgage debt may require tenants or operators to maintain compliance with the applicable leases or operating agreements of such real estate assets.

During the three and six months ended June 30, 2021, the Company made aggregate principal repayments of mortgage debt of $1 million and $3 million, respectively (excluding mortgage debt on assets held for sale and discontinued operations). During the three and six months ended June 30, 2020, the Company made aggregate principal repayments of mortgage debt of $1 million and $2 million, respectively (excluding mortgage debt on assets held for sale and discontinued operations).

In April 2021, in conjunction with the acquisition of the MOB Portfolio, the Company issued $142 million of secured mortgage debt (see Note 4) with a weighted average effective interest rate of 2.60% that matures in May 2026.

Debt Maturities

The following table summarizes the Company’s stated debt maturities and scheduled principal repayments at June 30, 2021 (in thousands):

							Senior Unsecured Notes(3)				Mortgage Debt(4)
Year	Bank Line of Credit		Commercial Paper(1)		Term Loan(2)		Amount		Interest Rate		Amount		Interest Rate		Total
2021	$	—	$	—	$	—	$	—	—	%	$	10,159	4.86	%	$	10,159
2022	—		—		—		—		—	%	4,843		3.80	%	4,843
2023	—		720,000		—		—		—	%	89,874		3.80	%	809,874
2024	—		—		250,000		—		—	%	3,050		3.80	%	253,050
2025	—		—		—		800,000		3.93	%	3,209		3.80	%	803,209
Thereafter	—		—		—		2,950,000		3.68	%	244,889		3.07	%	3,194,889
	—		720,000		250,000		3,750,000				356,024				5,076,024
(Discounts), premium and debt costs, net	—		—		(697)		(39,028)				2,077				(37,648)
	—		720,000		249,303		3,710,972				358,101				5,038,376
Debt on assets held for sale and discontinued operations(5)	—		—		—		—				37,069				37,069
	$	—	$	720,000	$	249,303	$	3,710,972			$	395,170			$	5,075,445

_______________________________________

(1)Commercial Paper Program borrowings are backstopped by the Revolving Facility. As such, the Company calculates the weighted average remaining term of its Commercial Paper Program borrowings using the maturity date of the Revolving Facility.

(2)As of June 30, 2021, the Company had $250 million outstanding on the 2019 Term Loan, which was scheduled to mature on May 23, 2024. In July 2021, the Company repaid the $250 million outstanding balance on the 2019 Term Loan.

(3)Effective interest rates on the senior unsecured notes range from 3.10% to 6.91% with a weighted average effective interest rate of 3.75% and a weighted average maturity of 8 years. In July 2021, the Company issued $450 million aggregate principal amount of 1.35% senior unsecured notes due 2027 in its inaugural green bond offering.

(4)Excluding mortgage debt on assets classified as held for sale and discontinued operations, effective interest rates on the mortgage debt range from 2.42% to 5.91% with a weighted average effective interest rate of 3.28% and a weighted average maturity of 4 years.

(5)Represents mortgage debt on an asset held for sale reported in discontinued operations with an interest rate of 3.87% that matures in 2025.

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Commitments and Contingencies

6 Months Ended

Jun. 30, 2021

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Commitments and Contingencies

Legal Proceedings

From time to time, the Company is a party to legal proceedings, lawsuits and other claims that arise in the ordinary course of the Company’s business. The Company is not aware of any legal proceedings or claims that it believes may have, individually or taken together, a material adverse effect on the Company’s financial condition, results of operations, or cash flows. The Company’s policy is to expense legal costs as they are incurred.

DownREITs

In connection with the formation of certain limited liability companies (“DownREITs”), members may contribute appreciated real estate to a DownREIT in exchange for DownREIT units. These contributions are generally tax-deferred, so that the pre-contribution gain related to the property is not taxed to the member. However, if a contributed property is later sold by the DownREIT, the unamortized pre-contribution gain that exists at the date of sale is specifically allocated and taxed to the contributing members. In many of the DownREITs, the Company has entered into indemnification agreements with those members who contributed appreciated property into the DownREIT. Under these indemnification agreements, if any of the appreciated real estate contributed by the members is sold by the DownREIT in a taxable transaction within a specified number of years, the Company will reimburse the affected members for the federal and state income taxes associated with the pre-contribution gain that is specially allocated to the affected member under the Code (“make-whole payments”). These make-whole payments include a tax gross-up provision. These indemnification agreements have expirations terms that range through 2039 on a total of 29 properties.

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Equity

6 Months Ended

Jun. 30, 2021

Equity [Abstract]

Equity

Equity

Dividends

On July 29, 2021, the Company announced that its Board of Directors declared a quarterly cash dividend of $0.30 per share. The common stock cash dividend will be paid on August 20, 2021 to stockholders of record as of the close of business on August 9, 2021.

During the three months ended June 30, 2021 and 2020, the Company declared and paid common stock cash dividends of $0.30 per share and $0.37 per share, respectively. During the six months ended June 30, 2021 and 2020, the Company declared and paid common stock cash dividends of $0.60 and $0.74 per share, respectively.

At-The-Market Equity Offering Program

The Company established an at-the-market equity offering program (“ATM Program”), which was most recently amended in May 2021 (as amended, the “2020 ATM Program”) to increase the size of the program from $1.25 billion to $1.50 billion, pursuant to which shares of common stock having an aggregate gross sales price of up to $1.50 billion may be sold (i) by the Company through a consortium of banks acting as sales agents or directly to the banks acting as principals or (ii) by a consortium of banks acting as forward sellers on behalf of any forward purchasers pursuant to a forward sale agreement. The use of a forward sale agreement allows the Company to lock in a share price on the sale of shares at the time the forward sales agreement is effective, but defer receiving the proceeds from the sale of shares until a later date.

ATM forward sale agreements generally have a one year term. At any time during the term, the Company may settle a forward sale by delivery of physical shares of common stock to the forward seller or, at the Company’s election, in cash or net shares. The forward sale price the Company expects to receive upon settlement of outstanding forward contracts will be the initial forward price established upon the effective date, subject to adjustments for: (i) accrued interest, (ii) the forward purchasers’ stock borrowing costs, and (iii) certain fixed price reductions during the term of the forward sale agreement.

At June 30, 2021, $1.50 billion of the Company’s common stock remained available for sale under the 2020 ATM Program.

ATM Forward Contracts

During the three and six months ended June 30, 2021 and the three months ended June 30, 2020, the Company did not utilize the forward provisions under any ATM Program. During the six months ended June 30, 2020, the Company utilized the forward provisions under a previous ATM Program established in 2019 (the “2019 ATM Program”) to allow for the sale of up to an aggregate of 2.0 million shares of its common stock at an initial weighted average net price of $35.23 per share, after commissions.

During the three months ended March 31, 2020, the Company settled all 16.8 million shares previously outstanding under ATM forward contracts at a weighted average net price of $31.38 per share, after commissions, resulting in net proceeds of $528 million. No shares were settled subsequent to March 31, 2020 and therefore, at June 30, 2021 and June 30, 2020, no shares remained outstanding under ATM forward contracts.

ATM Direct Issuances

During the three and six months ended June 30, 2021 and 2020, no shares of common stock were issued under the 2020 ATM Program or 2019 ATM Program.

Forward Equity Offerings

November 2019 Offering. In November 2019, the Company entered into a forward equity sales agreement (the "2019 forward equity sales agreement") to sell an aggregate of 15.6 million shares of its common stock (including shares sold through the exercise of underwriters’ options) at an initial net price of $34.46 per share, after underwriting discounts and commissions, which was subject to adjustments for: (i) accrued interest, (ii) the forward purchasers’ stock borrowing costs, and (iii) certain fixed price reductions during the term of the agreement. During the three months ended March 31, 2020, the Company settled all 15.6 million shares under the 2019 forward equity sales agreement at a weighted average net price of $34.18 per share, resulting in net proceeds of $534 million (total net proceeds of $1.06 billion, when aggregated with the net proceeds from settling ATM forward contracts, as discussed above). Therefore, at June 30, 2021 and June 30, 2020, no shares remained outstanding under the 2019 forward equity sales agreement.

Accumulated Other Comprehensive Income (Loss)

The following table summarizes the Company’s accumulated other comprehensive income (loss) (in thousands):

	June 30, 2021		December 31, 2020
Unrealized gains (losses) on derivatives, net	$	—	$	(81)
Supplemental Executive Retirement Plan minimum liability	(3,389)		(3,604)
Total accumulated other comprehensive income (loss)	$	(3,389)	$	(3,685)

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Earnings Per Common Share

6 Months Ended

Jun. 30, 2021

Earnings Per Share [Abstract]

Earnings Per Common Share

Earnings Per Common Share

Basic income (loss) per common share (“EPS”) is computed based on the weighted average number of common shares outstanding. Diluted income (loss) per common share is computed based on the weighted average number of common shares outstanding plus the impact of forward equity sales agreements using the treasury stock method and common shares issuable from the assumed conversion of DownREIT units, stock options, certain performance restricted stock units, and unvested restricted stock units. Only those instruments having a dilutive impact on the Company’s basic income (loss) per share are included in diluted income (loss) per share during the periods presented.

Restricted stock and certain performance restricted stock units are considered participating securities, because dividend payments are not forfeited even if the underlying award does not vest, and require use of the two-class method when computing basic and diluted earnings per share.

Refer to Note 12 for a discussion of the sale of shares under and settlement of forward sales agreements during the periods presented. The Company considered the potential dilution resulting from the forward agreements to the calculation of earnings per share. At inception, the agreements do not have an effect on the computation of basic EPS as no shares are delivered until settlement. However, the Company uses the treasury stock method to calculate the dilution, if any, resulting from the forward sales agreements during the period of time prior to settlement. The aggregate effect on the Company’s diluted weighted-average common shares for the six months ended June 30, 2021 and 2020 was zero and 0.8 million weighted-average incremental shares, respectively, from the forward equity sales agreements. 

The following table illustrates the computation of basic and diluted earnings per share (in thousands, except per share amounts):

	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
Numerator
Income (loss) from continuing operations	$	168,065	$	60,341	$	47,480	$	207,473
Noncontrolling interests' share in continuing operations	(3,535)		(3,486)		(6,841)		(6,949)
Income (loss) from continuing operations attributable to Healthpeak Properties, Inc.	164,530		56,855		40,639		200,524
Less: Participating securities' share in continuing operations	(287)		(375)		(2,732)		(1,800)
Income (loss) from continuing operations applicable to common shares	164,243		56,480		37,907		198,724
Income (loss) from discontinued operations	113,960		(5,292)		383,968		130,116
Noncontrolling interests' share in discontinued operations	(2,210)		(57)		(2,539)		(54)
Net income (loss) applicable to common shares	$	275,993	$	51,131	$	419,336	$	328,786
Numerator - Dilutive
Net income (loss) applicable to common shares	$	275,993	$	51,131	$	419,336	$	328,786
Add: distributions on dilutive convertible units and other	1,540		—		—		—
Dilutive net income (loss) available to common shares	$	277,533	$	51,131	$	419,336	$	328,786
Denominator
Basic weighted average shares outstanding	538,929		538,262		538,805		522,427
Dilutive potential common shares - equity awards(1)	264		255		276		263
Dilutive potential common shares - forward equity agreements(2)	—		—		—		808
Dilutive potential common shares - DownREIT conversions	5,501		—		—		—
Diluted weighted average common shares	544,694		538,517		539,081		523,498
Basic earnings (loss) per common share
Continuing operations	$	0.30	$	0.10	$	0.07	$	0.38
Discontinued operations	0.21		(0.01)		0.71		0.25
Net income (loss) applicable to common shares	$	0.51	$	0.09	$	0.78	$	0.63
Diluted earnings (loss) per common share
Continuing operations	$	0.30	$	0.10	$	0.07	$	0.38
Discontinued operations	0.21		(0.01)		0.71		0.25
Net income (loss) applicable to common shares	$	0.51	$	0.09	$	0.78	$	0.63

_______________________________________

(1)For all periods presented, represents the dilutive impact of 1 million outstanding equity awards (restricted stock units and stock options).

(2)For the three and six months ended June 30, 2021, forward sales agreements had no dilutive impact as all agreements were settled prior to the start of the period. For the six months ended June 30, 2020, represents the dilutive impact of 32 million shares that were settled during the six months then ended. For the three months ended June 30, 2020, forward sales agreements had no dilutive impact as all agreements were settled prior to the start of the period.

For the three months ended June 30, 2021, 6 million out of 7 million DownREIT shares were dilutive. For all other periods presented in the table above, all 7 million shares issuable upon conversion of DownREIT units were not included because they were anti-dilutive.

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Segment Disclosures

6 Months Ended

Jun. 30, 2021

Segment Reporting [Abstract]

Segment Disclosures

Segment Disclosures

The Company’s reportable segments, based on how its chief operating decision makers (“CODMs”) evaluates its business and allocates resources, are as follows: (i) life science, (ii) medical office, and (iii) CCRC. The Company has non-reportable segments that are comprised primarily of the Company’s interests in an unconsolidated senior housing joint venture 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 2020 Annual Report on Form 10-K filed with the SEC, as updated by Note 2 herein.

In December 2020, the Company’s senior housing triple-net and SHOP portfolios were classified as discontinued operations and are no longer reportable segments. See Notes 1 and 5 for further information.

In December 2020, as a result of a change in how operating results are reported to the Company’s CODMs, the Company’s hospitals were reclassified from other non-reportable segments to the medical office segment and the Company’s one remaining unconsolidated investment in a senior housing joint venture was reclassified from the SHOP segment to other non-reportable segments.

All prior period segment information has been recast to conform to the current period presentation.

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 that 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. Additionally, management believes that net income (loss) is the most directly comparable GAAP measure to NOI and Adjusted NOI. NOI and Adjusted NOI should not be viewed as alternative measures of operating performance to net income (loss) as defined by GAAP since they do not reflect various excluded items.

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, loans receivable, marketable equity securities, other assets, real estate assets held for sale and discontinued operations, and liabilities related to assets held for sale.

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

For the three months ended June 30, 2021:

	Life Science		Medical Office		CCRC		Other Non-reportable		Corporate Non-segment		Total
Total revenues	$	177,527	$	165,295	$	117,308	$	16,108	$	—	$	476,238
Government grant income(1)	—		—		87		—		—		87
Less: Interest income	—		—		—		(16,108)		—		(16,108)
Healthpeak’s share of unconsolidated joint venture total revenues	1,412		710		2,415		16,740		—		21,277
Healthpeak’s share of unconsolidated joint venture government grant income	—		—		—		583		—		583
Noncontrolling interests’ share of consolidated joint venture total revenues	(75)		(8,825)		—		—		—		(8,900)
Operating expenses	(40,724)		(54,648)		(94,760)		—		—		(190,132)
Healthpeak’s share of unconsolidated joint venture operating expenses	(428)		(317)		(2,208)		(12,451)		—		(15,404)
Noncontrolling interests’ share of consolidated joint venture operating expenses	21		2,552		—		—		—		2,573
Adjustments to NOI(2)	(12,366)		(2,003)		1,226		(27)		—		(13,170)
Adjusted NOI	125,367		102,764		24,068		4,845		—		257,044
Plus: Adjustments to NOI(2)	12,366		2,003		(1,226)		27		—		13,170
Interest income	—		—		—		16,108		—		16,108
Interest expense	(48)		(786)		(1,924)		—		(35,923)		(38,681)
Depreciation and amortization	(76,955)		(63,371)		(31,133)		—		—		(171,459)
General and administrative	—		—		—		—		(24,088)		(24,088)
Transaction costs	21		35		(657)		(18)		—		(619)
Impairments and loan loss reserves	—		—		—		(931)		—		(931)
Gain (loss) on sales of real estate, net	—		175,238		—		—		—		175,238
Gain (loss) on debt extinguishments	—		—		—		—		(60,865)		(60,865)
Other income (expense), net	28		(175)		165		—		1,716		1,734
Less: Government grant income	—		—		(87)		—		—		(87)
Less: Healthpeak’s share of unconsolidated joint venture NOI	(984)		(393)		(207)		(4,872)		—		(6,456)
Plus: Noncontrolling interests’ share of consolidated joint venture NOI	54		6,273		—		—		—		6,327
Income (loss) before income taxes and equity income (loss) from unconsolidated joint ventures	59,849		221,588		(11,001)		15,159		(119,160)		166,435
Income tax benefit (expense)	—		—		—		—		763		763
Equity income (loss) from unconsolidated joint ventures	111		137		639		(20)		—		867
Income (loss) from continuing operations	59,960		221,725		(10,362)		15,139		(118,397)		168,065
Income (loss) from discontinued operations	—		—		—		—		113,960		113,960
Net income (loss)	$	59,960	$	221,725	$	(10,362)	$	15,139	$	(4,437)	$	282,025

_______________________________________

(1)Represents government grant income received under the CARES Act, which is recorded in other income (expense), net in the Consolidated Statements of Operations (see Note 2).

(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, 2020:

	Life Science		Medical Office		CCRC		Other Non-reportable		Corporate Non-segment		Total
Total revenues	$	138,496	$	151,844	$	113,926	$	4,293	$	—	$	408,559
Government grant income(1)	—		—		11,871		—		—		11,871
Less: Interest income	—		—		—		(4,230)		—		(4,230)
Healthpeak’s share of unconsolidated joint venture total revenues	—		691		4,781		18,682		—		24,154
Healthpeak’s share of unconsolidated joint venture government grant income	—		—		534		270		—		804
Noncontrolling interests’ share of consolidated joint venture total revenues	(57)		(8,347)		—		—		—		(8,404)
Operating expenses	(34,205)		(49,355)		(94,248)		—		—		(177,808)
Healthpeak’s share of unconsolidated joint venture operating expenses	—		(276)		(4,826)		(13,681)		—		(18,783)
Noncontrolling interests’ share of consolidated joint venture operating expenses	18		2,507		—		—		—		2,525
Adjustments to NOI(2)	(2,779)		(465)		18		99		—		(3,127)
Adjusted NOI	101,473		96,599		32,056		5,433		—		235,561
Plus: Adjustments to NOI(2)	2,779		465		(18)		(99)		—		3,127
Interest income	—		—		—		4,230		—		4,230
Interest expense	(60)		(100)		(1,969)		—		(52,694)		(54,823)
Depreciation and amortization	(52,356)		(55,904)		(31,426)		(5)		—		(139,691)
General and administrative	—		—		—		—		(23,720)		(23,720)
Transaction costs	(1)		—		(368)		(4)		—		(373)
Impairments and loan loss reserves	—		(2,119)		—		(4,718)		—		(6,837)
Gain (loss) on sales of real estate, net	—		81,284		—		—		—		81,284
Gain (loss) on debt extinguishments	—		—		—		—		(25,824)		(25,824)
Other income (expense), net	—		—		14,142		—		3,273		17,415
Less: Government grant income	—		—		(11,871)		—		—		(11,871)
Less: Healthpeak’s share of unconsolidated joint venture NOI	—		(415)		(489)		(5,271)		—		(6,175)
Plus: Noncontrolling interests’ share of consolidated joint venture NOI	39		5,840		—		—		—		5,879
Income (loss) before income taxes and equity income (loss) from unconsolidated joint ventures	51,874		125,650		57		(434)		(98,965)		78,182
Income tax benefit (expense)	—		—		—		—		(106)		(106)
Equity income (loss) from unconsolidated joint ventures	—		210		401		(18,346)		—		(17,735)
Income (loss) from continuing operations	51,874		125,860		458		(18,780)		(99,071)		60,341
Income (loss) from discontinued operations	—		—		—		—		(5,292)		(5,292)
Net income (loss)	$	51,874	$	125,860	$	458	$	(18,780)	$	(104,363)	$	55,049

______________________________________________________________________________

(1)Represents government grant income received under the CARES Act, which is recorded in other income (expense), net in the Consolidated Statements of Operations (see Note 2).

(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 six months ended June 30, 2021:

	Life Science		Medical Office		CCRC		Other Non-reportable		Corporate Non-segment		Total
Total revenues	$	347,461	$	325,496	$	233,436	$	25,121	$	—	$	931,514
Government grant income(1)	—		—		1,397		—		—		1,397
Less: Interest income	—		—		—		(25,121)		—		(25,121)
Healthpeak’s share of unconsolidated joint venture total revenues	2,749		1,425		6,903		33,493		—		44,570
Healthpeak’s share of unconsolidated joint venture government grant income	—		—		199		810		—		1,009
Noncontrolling interests’ share of consolidated joint venture total revenues	(140)		(17,751)		—		—		—		(17,891)
Operating expenses	(80,185)		(105,769)		(185,939)		—		—		(371,893)
Healthpeak’s share of unconsolidated joint venture operating expenses	(853)		(611)		(6,953)		(25,046)		—		(33,463)
Noncontrolling interests’ share of consolidated joint venture operating expenses	41		5,056		—		—		—		5,097
Adjustments to NOI(2)	(24,176)		(3,926)		1,246		85		—		(26,771)
Adjusted NOI	244,897		203,920		50,289		9,342		—		508,448
Plus: Adjustments to NOI(2)	24,176		3,926		(1,246)		(85)		—		26,771
Interest income	—		—		—		25,121		—		25,121
Interest expense	(150)		(881)		(3,842)		—		(80,651)		(85,524)
Depreciation and amortization	(145,388)		(121,326)		(62,283)		—		—		(328,997)
General and administrative	—		—		—		—		(48,990)		(48,990)
Transaction costs	(11)		(295)		(1,090)		(21)		—		(1,417)
Impairments and loan loss reserves	—		—		—		(4,173)		—		(4,173)
Gain (loss) on sales of real estate, net	—		175,238		—		—		—		175,238
Gain (loss) on debt extinguishments	—		—		—		—		(225,157)		(225,157)
Other income (expense), net	33		(2,454)		2,341		482		3,532		3,934
Less: Government grant income	—		—		(1,397)		—		—		(1,397)
Less: Healthpeak’s share of unconsolidated joint venture NOI	(1,896)		(814)		(149)		(9,257)		—		(12,116)
Plus: Noncontrolling interests’ share of consolidated joint venture NOI	99		12,695		—		—		—		12,794
Income (loss) before income taxes and equity income (loss) from unconsolidated joint ventures	121,760		270,009		(17,377)		21,409		(351,266)		44,535
Income tax benefit (expense)	—		—		—		—		755		755
Equity income (loss) from unconsolidated joint ventures	18		328		639		1,205		—		2,190
Income (loss) from continuing operations	121,778		270,337		(16,738)		22,614		(350,511)		47,480
Income (loss) from discontinued operations	—		—		—		—		383,968		383,968
Net income (loss)	$	121,778	$	270,337	$	(16,738)	$	22,614	$	33,457	$	431,448

______________________________________________________________________________

(1)Represents government grant income received under the CARES Act, which is recorded in other income (expense), net in the Consolidated Statements of Operations (see Note 2).

(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 six months ended June 30, 2020:

	Life Science		Medical Office		CCRC		Other Non-reportable		Corporate Non-segment		Total
Total revenues	$	267,379	$	308,485	$	205,706	$	8,043	$	—	$	789,613
Government grant income(1)	—		—		11,871		—		—		11,871
Less: Interest income	—		—		—		(7,918)		—		(7,918)
Healthpeak’s share of unconsolidated joint venture total revenues	—		1,386		26,428		38,876		—		66,690
Healthpeak’s share of unconsolidated joint venture government grant income	—		—		534		270		—		804
Noncontrolling interests’ share of consolidated joint venture total revenues	(109)		(16,987)		—		—		—		(17,096)
Operating expenses	(64,406)		(100,049)		(250,730)		—		—		(415,185)
Healthpeak’s share of unconsolidated joint venture operating expenses	—		(551)		(22,863)		(26,959)		—		(50,373)
Noncontrolling interests’ share of consolidated joint venture operating expenses	35		5,107		—		—		—		5,142
Adjustments to NOI(2)	(7,059)		(1,459)		91,579		51		—		83,112
Adjusted NOI	195,840		195,932		62,525		12,363		—		466,660
Plus: Adjustments to NOI(2)	7,059		1,459		(91,579)		(51)		—		(83,112)
Interest income	—		—		—		7,918		—		7,918
Interest expense	(122)		(203)		(3,273)		—		(106,916)		(110,514)
Depreciation and amortization	(102,567)		(110,571)		(51,655)		(10)		—		(264,803)
General and administrative	—		—		—		—		(46,069)		(46,069)
Transaction costs	(1)		—		(14,842)		(93)		—		(14,936)
Impairments and loan loss reserves	—		(4,825)		—		(13,119)		—		(17,944)
Gain (loss) on sales of real estate, net	—		83,393		—		(40)		—		83,353
Gain (loss) on debt extinguishments	—		—		—		—		(24,991)		(24,991)
Other income (expense), net	—		—		184,474		41,707		1,887		228,068
Less: Government grant income	—		—		(11,871)		—		—		(11,871)
Less: Healthpeak’s share of unconsolidated joint venture NOI	—		(835)		(4,099)		(12,187)		—		(17,121)
Plus: Noncontrolling interests’ share of consolidated joint venture NOI	74		11,880		—		—		—		11,954
Income (loss) before income taxes and equity income (loss) from unconsolidated joint ventures	100,283		176,230		69,680		36,488		(176,089)		206,592
Income tax benefit (expense)(3)	—		—		—		—		29,762		29,762
Equity income (loss) from unconsolidated joint ventures	—		407		(1,479)		(27,809)		—		(28,881)
Income (loss) from continuing operations	100,283		176,637		68,201		8,679		(146,327)		207,473
Income (loss) from discontinued operations	—		—		—		—		130,116		130,116
Net income (loss)	$	100,283	$	176,637	$	68,201	$	8,679	$	(16,211)	$	337,589

______________________________________________________________________________

(1)Represents government grant income received under the CARES Act, which is recorded in other income (expense), net in the Consolidated Statements of Operations (see Note 2).

(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 quarter 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.

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

	Three Months Ended June 30,				Six Months Ended June 30,
Segment	2021		2020		2021		2020
Life science	$	177,527	$	138,496	$	347,461	$	267,379
Medical office	165,295		151,844		325,496		308,485
CCRC	117,308		113,926		233,436		205,706
Other non-reportable	16,108		4,293		25,121		8,043
Total revenues	$	476,238	$	408,559	$	931,514	$	789,613

See Notes 3, 4, and 5 for significant transactions impacting the Company’s segment assets during the periods presented.

XML

Supplemental Cash Flow Information

6 Months Ended

Jun. 30, 2021

Supplemental Cash Flow Elements [Abstract]

Supplemental Cash Flow Information

Supplemental Cash Flow Information

The following table provides supplemental cash flow information (in thousands):

	Six Months Ended June 30,
	2021		2020
Supplemental cash flow information:
Interest paid, net of capitalized interest	$	109,277	$	104,370
Income taxes paid (refunded)	4,026		164
Capitalized interest	10,867		13,680
Supplemental schedule of non-cash investing and financing activities:
Accrued construction costs	113,221		117,895
Vesting of restricted stock units and conversion of non-managing member units into common stock	900		4,703
Net noncash impact from the consolidation of previously unconsolidated joint ventures	—		323,138
Mortgages assumed with real estate acquisitions	—		215,335
Carrying value of mortgages assumed by buyer in real estate dispositions	106,632		—
Refundable entrance fees assumed with real estate acquisitions	—		307,954
Seller financing provided on disposition of real estate asset	559,745		12,480
ROU asset obtained in exchange for new lease liability related to operating leases	13,157		23,962

See Note 3 for a discussion of the impact of the 2019 MTCA with Brookdale on the Company’s consolidated balance sheets and statements of operations.

The following table summarizes certain cash flow information related to assets classified as discontinued operations (in thousands):

	Six Months Ended June 30,
	2021		2020
Depreciation and amortization of real estate, in-place lease, and other intangibles	$	—	$	102,961
Development, redevelopment, and other major improvements of real estate	4,569		17,816
Leasing costs, tenant improvements, and recurring capital expenditures	2,349		6,520

The following table summarizes cash, cash equivalents and restricted cash (in thousands):

	Six Months Ended June 30,
	2021		2020		2021		2020		2021		2020
	Continuing operations				Discontinued operations				Total
Beginning of period:
Cash and cash equivalents	$	44,226	$	80,398	$	53,085	$	63,834	$	97,311	$	144,232
Restricted cash	67,206		13,385		17,168		27,040		84,374		40,425
Cash, cash equivalents and restricted cash	$	111,432	$	93,783	$	70,253	$	90,874	$	181,685	$	184,657
End of period:
Cash and cash equivalents	$	96,923	$	672,078	$	17,354	$	58,879	$	114,277	$	730,957
Restricted cash	129,052		85,473		974		20,211		130,026		105,684
Cash, cash equivalents and restricted cash	$	225,975	$	757,551	$	18,328	$	79,090	$	244,303	$	836,641

XML

Variable Interest Entities

6 Months Ended

Jun. 30, 2021

Variable Interest Entities [Abstract]

Variable Interest Entities

Variable Interest Entities

Unconsolidated Variable Interest Entities

At June 30, 2021, the Company had investments in: (i) one unconsolidated VIE joint venture, (ii) marketable debt securities of one VIE, and (iii) one loan to a VIE borrower. At December 31, 2020, the Company had investments in: (i) two properties leased to a VIE tenant, (ii) four unconsolidated VIE joint ventures, (iii) marketable debt securities of one VIE, and (iv) one loan to a VIE borrower. The Company determined it is not the primary beneficiary of and therefore does not consolidate these VIEs because it does not have the ability to control the activities that most significantly impact their economic performance. Except for the Company’s equity interest in the unconsolidated joint ventures (the LLC investment discussed below), it has no formal involvement in these VIEs beyond its investments.

VIE Tenant. As of December 31, 2020, the Company leased two properties to one tenant that was identified as a VIE (the “VIE tenant”). The VIE tenant was a “thinly capitalized” entity that relied on the operating cash flows generated from the senior housing facilities to pay operating expenses, including the rent obligations under its leases. In June 2021, the Company sold these two properties as part of the Sunrise Senior Housing Portfolio (see Note 5).

CCRC OpCo. As of December 31, 2020, the Company held a 49% ownership interest in CCRC OpCo, a joint venture entity formed in August 2014 that operated senior housing properties and had been identified as a VIE. The equity members of CCRC OpCo “lacked power” because they shared certain operating rights with Brookdale, as manager of the CCRCs. The assets of CCRC OpCo primarily consisted of the CCRCs that it owned and leased, resident fees receivable, notes receivable, and cash and cash equivalents; its obligations primarily consisted of operating lease obligations to CCRC PropCo, debt service payments, capital expenditures, accounts payable, and expense accruals. Assets generated by the operations of CCRC OpCo (primarily rents from CCRC residents) of CCRC OpCo may only be used to settle its contractual obligations (primarily from debt service payments, capital expenditures, and rental costs and operating expenses incurred to manage such facilities). In May 2021, the CCRC JV sold the two remaining CCRCs. Refer to Note 3 for additional discussion related to transactions impacting CCRC OpCo.

LLC Investment. The Company holds a limited partner ownership interest in an unconsolidated LLC that has been identified as a VIE. The Company’s involvement in the entity is limited to its equity investment as a limited partner and it does not have any substantive participating rights or kick-out rights over the general partner. The assets and liabilities of the entity primarily consist of those associated with its senior housing real estate and development activities. Any assets generated by the entity may only be used to settle its contractual obligations (primarily development expenses and debt service payments).

Development Investments. As of December 31, 2020, the Company held investments (consisting of mezzanine debt and/or preferred equity) in two senior housing development joint ventures. The joint ventures were also capitalized by senior loans from a third party and equity from the third party managing-member, but were considered to be “thinly capitalized” as there was insufficient equity investment at risk. In April 2021, the Company sold two mezzanine loans and two preferred equity investments as part of the Discovery SHOP Portfolio disposition (see Note 5).

Debt Securities Investment. The Company holds commercial mortgage-backed securities (“CMBS”) issued by Federal Home Loan Mortgage Corporation (commonly referred to as Freddie MAC) through a special purpose entity that has been identified as a VIE because it is “thinly capitalized.” The CMBS issued by the VIE are backed by mortgage debt obligations on real estate assets. These securities are classified as held-to-maturity because the Company has the intent and ability to hold the securities until maturity.

Loan Receivable. The Company provided seller financing related to its sale of seven senior housing triple-net facilities. The financing was provided in the form of a secured five-year mezzanine loan to a “thinly capitalized” borrower created to acquire the facilities.

The classification of the related assets and liabilities and the maximum loss exposure as a result of the Company’s involvement with these VIEs at June 30, 2021 was as follows (in thousands):

VIE Type	Asset Type	Maximum Loss Exposure and Carrying Amount(1)
Continuing operations:
CCRC OpCo	Investments in and advances to unconsolidated joint ventures	$	1,940
Loans receivable	Loans receivable, net	3,045
CMBS and LLC investment	Other assets, net	35,999

_______________________________________

(1)The Company’s maximum loss exposure represents the aggregate carrying amount of such investments (including accrued interest).

As of June 30, 2021, the Company had not provided, and is not required to provide, financial support through a liquidity arrangement or otherwise, to its unconsolidated VIEs, including under circumstances in which it could be exposed to further losses (e.g., cash shortfalls).

See Notes 3, 7, and 8 for additional descriptions of the nature, purpose, and operating activities of the Company’s unconsolidated VIEs and interests therein.

Consolidated Variable Interest Entities

The Company’s consolidated total assets and total liabilities at June 30, 2021 and December 31, 2020 include certain assets of VIEs that can only be used to settle the liabilities of the related VIE. The VIE creditors do not have recourse to the Company.

Ventures V, LLC.  The Company holds a 51% ownership interest in and is the managing member of a joint venture entity formed in October 2015 that owns and leases MOBs (“Ventures V”). The Company classifies Ventures V as a VIE due to the non-managing member lacking substantive participation rights in the management of Ventures V or kick-out rights over the managing member. The Company consolidates Ventures V as the primary beneficiary because it has the ability to control the activities that most significantly impact the VIE’s economic performance. The assets of Ventures V primarily consist of leased properties (net real estate), rents receivable, and cash and cash equivalents; its obligations primarily consist of capital expenditures for the properties. Assets generated by Ventures V may only be used to settle its contractual obligations (primarily from capital expenditures).

Life Science JVs.  The Company holds a 99% ownership interest in multiple joint venture entities that own and lease life science assets (the “Life Science JVs”). The Life Science JVs are VIEs as the members share in control of the entities, but substantially all of the activities are performed on behalf of the Company. The Company consolidates the Life Science JVs as the primary beneficiary because it has the ability to control the activities that most significantly impact these VIEs’ economic performance. The assets of the Life Science JVs primarily consist of leased properties (net real estate), rents receivable, and cash and cash equivalents; their obligations primarily consist of debt service payments and capital expenditures for the properties. Assets generated by the Life Science JVs may only be used to settle their contractual obligations (primarily from capital expenditures).

MSREI MOB JV. The Company holds a 51% ownership interest in, and is the managing member of, a joint venture entity formed in August 2018 that owns and leases MOBs (the “MSREI JV”). The MSREI JV is a VIE due to the non-managing member lacking substantive participation rights in the management of the joint venture or kick-out rights over the managing member. The Company consolidates the MSREI JV as the primary beneficiary because it has the ability to control the activities that most significantly impact the VIE’s economic performance. The assets of the MSREI JV primarily consist of leased properties (net real estate), rents receivable, and cash and cash equivalents; its obligations primarily consist of capital expenditures for the properties. Assets generated by the MSREI JV may only be used to settle its contractual obligations (primarily from capital expenditures).

Consolidated Lessees. The Company leases three senior housing properties to lessee entities under cash flow leases through which the Company receives monthly rent equal to the residual cash flows of the properties. The lessee entities are classified as VIEs as they are "thinly capitalized" entities. The Company consolidates the lessee entities as it has the ability to control the activities that most significantly impact the economic performance of the lessee entities. The lessee entities’ assets primarily consist of leasehold interests in senior housing facilities (operating leases), resident fees receivable, and cash and cash equivalents; its obligations primarily consist of lease payments to the Company and operating expenses of the senior housing facilities (accounts payable and accrued expenses). Assets generated by the senior housing operations (primarily from senior housing resident rents) may only be used to settle contractual obligations (primarily from the rental costs, operating expenses incurred to manage such facility and debt costs).

DownREITs.  The Company holds a controlling ownership interest in and is the managing member of seven DownREITs. The Company classifies the DownREITs as VIEs due to the non-managing members lacking substantive participation rights in the management of the DownREITs or kick-out rights over the managing member. The Company consolidates the DownREITs as the primary beneficiary because it has the ability to control the activities that most significantly impact these VIEs’ economic performance. The assets of the DownREITs primarily consist of leased properties (net real estate), rents receivable, and cash and cash equivalents; their obligations primarily consist of debt service payments and capital expenditures for the properties. Assets generated by the DownREITs (primarily from resident rents) may only be used to settle their contractual obligations (primarily from debt service and capital expenditures).

Other Consolidated Real Estate Partnerships.  The Company holds a controlling ownership interest in and is the general partner (or managing member) of multiple partnerships that own and lease real estate assets (the “Partnerships”). The Company classifies the Partnerships as VIEs due to the limited partners (non-managing members) lacking substantive participation rights in the management of the Partnerships or kick-out rights over the general partner (managing member). The Company consolidates the Partnerships as the primary beneficiary because it has the ability to control the activities that most significantly impact these VIEs’ economic performance. The assets of the Partnerships primarily consist of leased properties (net real estate), rents receivable, and cash and cash equivalents; their obligations primarily consist of debt service payments and capital expenditures for the properties. Assets generated by the Partnerships (primarily from resident rents) may only be used to settle their contractual obligations (primarily from debt service and capital expenditures).

Exchange Accommodation Titleholder. During the year ended December 31, 2020, the Company acquired seven MOBs, one hospital, and three life science facilities (the “acquired properties”) using reverse like-kind exchange structures pursuant to Section 1031 of the Code (a “reverse 1031 exchange”). As of December 31, 2020, the Company had not completed the reverse 1031 exchanges and as such, the acquired properties remained in the possession of Exchange Accommodation Titleholders (“EATs”). The EATs were classified as VIEs as they were “thinly capitalized” entities. The Company consolidated the EATs because it had the ability to control the activities that most significantly impacted the economic performance of the EATs and was, therefore, the primary beneficiary of the EATs. The properties held by the EATs were reflected as real estate with a carrying value of $813 million as of December 31, 2020. The assets of the EATs primarily consisted of leased properties (net real estate), rents receivable, and cash and cash equivalents; their obligations primarily consisted of capital expenditures for the properties. Assets generated by the EATs may only be used to settle its contractual obligations (primarily from capital expenditures). The reverse 1031 exchanges described above were completed during the three months ended June 30, 2021. Therefore, as of June 30, 2021, no properties remained in possession of an EAT.

Total assets and total liabilities include VIE assets and liabilities as follows (in thousands):

	June 30, 2021		December 31, 2020
Assets
Buildings and improvements	$	2,337,717	$	2,988,599
Development costs and construction in progress	46,634		85,595
Land	379,376		433,574
Accumulated depreciation and amortization	(520,226)		(602,491)
Net real estate	2,243,501		2,905,277
Accounts receivable, net	6,781		12,009
Cash and cash equivalents	26,970		16,550
Restricted cash	86,642		7,977
Intangible assets, net	102,428		179,027
Assets held for sale and discontinued operations, net	25,411		704,966
Right-of-use asset, net	108,088		95,407
Other assets, net	61,457		59,063
Total assets	$	2,661,278	$	3,980,276
Liabilities
Mortgage debt	$	144,263	$	39,085
Intangible liabilities, net	20,378		56,467
Liabilities related to assets held for sale and discontinued operations, net	4,560		190,919
Lease liability	97,849		97,605
Accounts payable, accrued liabilities, and other liabilities	52,757		102,391
Deferred revenue	34,427		90,183
Total liabilities	$	354,234	$	576,650

Total assets and liabilities related to assets held for sale and discontinued operations include VIE assets and liabilities as follows (in thousands):

	June 30, 2021		December 31, 2020
Assets
Buildings and improvements	$	32,173	$	639,759
Development costs and construction in progress	91		68
Land	2,724		106,209
Accumulated depreciation and amortization	(16,096)		(57,235)
Net real estate	18,892		688,801
Accounts receivable, net	2,368		1,700
Cash and cash equivalents	1,016		6,306
Restricted cash	294		3,124
Right-of-use asset, net	405		1,391
Other assets, net	2,436		3,644
Total assets	$	25,411	$	704,966
Liabilities
Mortgage debt	$	—	$	176,702
Lease liability	644		1,392
Accounts payable, accrued liabilities, and other liabilities	3,743		11,003
Deferred revenue	173		1,822
Total liabilities	$	4,560	$	190,919

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Fair Value Measurements

6 Months Ended

Jun. 30, 2021

Financial Instruments, Owned, at Fair Value [Abstract]

Fair Value Measurements

Fair Value Measurements

Financial assets and liabilities measured at fair value on a recurring basis in the consolidated balance sheets are immaterial at June 30, 2021 and December 31, 2020.

The table below summarizes the carrying amounts and fair values of the Company’s financial instruments (in thousands):

	June 30, 2021(3)				December 31, 2020(3)
	Carrying Value		Fair Value		Carrying Value		Fair Value
Loans receivable, net(2)	$	429,076	$	437,632	$	195,375	$	201,228
Marketable debt securities(2)	20,673		20,673		20,355		20,355
Interest rate cap assets(2)	244		244		—		—
Bank line of credit and commercial paper(2)	720,000		720,000		129,590		129,590
Term loan(2)	249,303		249,303		249,182		249,182
Senior unsecured notes(1)	3,710,972		4,169,472		5,697,586		6,517,650
Mortgage debt(2)(4)	358,101		360,296		221,621		221,181
Interest rate swap liabilities(2)	—		—		81		81

_______________________________________

(1)Level 1: Fair value calculated based on quoted prices in active markets.

(2)Level 2: Fair value based on (i) for marketable debt securities, quoted prices for similar or identical instruments in active or inactive markets, respectively, or (ii) for loans receivable, net, mortgage debt, swaps, and caps, standardized pricing models in which significant inputs or value drivers are observable in active markets. For bank line of credit, commercial paper, and term loan, the carrying values are a reasonable estimate of fair value because the borrowings are primarily based on market interest rates and the Company’s credit rating.

(3)During the six months ended June 30, 2021 and year ended December 31, 2020, there were no material transfers of financial assets or liabilities within the fair value hierarchy.

(4)For the six months ended June 30, 2021 and year ended December 31, 2020, excludes mortgage debt on assets held for sale and discontinued operations of $37 million and $319 million, respectively.

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Derivative Financial Instruments

6 Months Ended

Jun. 30, 2021

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Financial Instruments

Derivative Financial Instruments

The Company uses derivative instruments to mitigate the effects of interest rate fluctuations on specific forecasted transactions as well as recognized financial obligations or assets. Utilizing derivative instruments allows the Company to manage the risk of fluctuations in interest rates related to the potential impact these changes could have on future earnings and forecasted cash flows. The Company does not use derivative instruments for speculative or trading purposes.

In March 2021, the Company repaid $39 million of variable rate secured debt on two SHOP assets classified as discontinued operations as of June 30, 2021 and terminated the two remaining related interest rate swap contracts. Therefore, at June 30, 2021, the Company had no remaining interest rate swap contracts.

In April 2021, the Company executed two interest rate cap agreements on its mortgage debt issued in conjunction with the acquisition of the MOB Portfolio (see Note 4). The following table summarizes the Company’s outstanding interest rate cap agreements as of June 30, 2021 (dollars in thousands):

Date Entered	Maturity Date	Hedge Designation	Notional		Strike Rate	Index	Fair Value(1)
Interest rate:
April 2021(2)	May 2024	Non-designated	$	142,100	2.00 %	1 mo. USD-LIBOR-BBA	$	244

_____________________________

(1)Derivative assets are recorded in other assets, net in the consolidated balance sheets.

(2)Represents two interest rate cap agreements that manage the Company’s exposure to variable cash flows on certain mortgage debt borrowings by limiting interest rates.

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Accounts Payable, Accrued Liabilities, and Other Liabilities

6 Months Ended

Jun. 30, 2021

Payables and Accruals [Abstract]

Accounts Payable, Accrued Liabilities, and Other Liabilities

Accounts Payable, Accrued Liabilities, and Other Liabilities

The following table summarizes the Company’s accounts payable, accrued liabilities, and other liabilities, excluding accounts payable, accrued liabilities, and other liabilities related to assets classified as discontinued operations (in thousands):

	June 30, 2021		December 31, 2020
Refundable entrance fees(1)	$	301,953	$	317,444
Construction related accrued liabilities	113,221		95,293
Accrued interest	55,373		78,735
Other accounts payable and accrued liabilities	217,911		271,919
Accounts payable, accrued liabilities, and other liabilities	$	688,458	$	763,391

_______________________________________

(1)At June 30, 2021 and December 31, 2020, unamortized nonrefundable entrance fee liabilities were $485 million and $484 million, respectively, which are recorded within deferred revenue on the Consolidated Balance Sheets.

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Summary of Significant Accounting Policies (Policies)

6 Months Ended

Jun. 30, 2021

Accounting Policies [Abstract]

Basis of Presentation

Basis of Presentation

The accompanying unaudited consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information. Management is required to make estimates and assumptions in the preparation of financial statements in conformity with GAAP. These estimates and assumptions affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from management’s estimates.

The consolidated financial statements include the accounts of Healthpeak Properties, Inc., its wholly-owned subsidiaries, joint ventures (“JVs”), and variable interest entities (“VIEs”) that it controls through voting rights or other means. Intercompany transactions and balances have been eliminated upon consolidation. All adjustments (consisting of normal recurring adjustments) necessary to present fairly the Company’s financial position, results of operations, and cash flows have been included. Operating results for the three and six months ended June 30, 2021 are not necessarily indicative of the results that may be expected for the year ending December 31, 2021. The accompanying unaudited interim financial information should be read in conjunction with the consolidated financial statements and notes thereto for the year ended December 31, 2020 included in the Company’s Annual Report on Form 10-K filed with the U.S. Securities and Exchange Commission (“SEC”).

Government Grant Income

Government Grant Income

On March 27, 2020, the federal government enacted the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) to provide financial aid to individuals, businesses, and state and local governments. During the three and six months ended June 30, 2021 and 2020, the Company received government grants under the CARES Act primarily to cover increased expenses and lost revenue during the COVID-19 pandemic. Grant income is recognized when there is reasonable assurance that the grant will be received and the Company will comply with all conditions attached to the grant. Additionally, grants are recognized over the periods in which the Company recognizes the increased expenses and lost revenue the grants are intended to defray. As of June 30, 2021, the amount of qualifying expenditures and lost revenue exceeded grant income recognized and the Company believes it has complied and will continue to comply with all grant conditions.

Recent Accounting Pronouncements

Recent Accounting Pronouncements

Adopted

Credit Losses. In June 2016, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2016-13, Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”). ASU 2016-13 is intended to improve financial reporting by requiring timelier recognition of credit losses on loans and other financial instruments held by financial institutions and other organizations. The amendments in ASU 2016-13 eliminate the “probable” initial threshold for recognition of credit losses in previous accounting guidance and, instead, reflect an entity’s current estimate of all expected credit losses over the life of the financial instrument. Historically, when credit losses were measured under previous accounting guidance, an entity generally only considered past events and current conditions in measuring the incurred loss. The amendments in ASU 2016-13 broaden the information that an entity must consider in developing its expected credit loss estimate for assets measured either collectively or individually. The use of forecasted information incorporates more timely information in the estimate of expected credit loss.

As a result of adopting ASU 2016-13 on January 1, 2020 using the modified retrospective transition approach, the Company recognized a cumulative-effect adjustment to equity of $2 million as of January 1, 2020. Under ASU 2016-13, the Company began using a loss model that relies on future expected credit losses, rather than incurred losses, as was required under historical GAAP. Under the new model, the Company is required to recognize future credit losses expected to be incurred over the life of its finance receivables, including loans receivable, direct financing leases (“DFLs”), and certain accounts receivable, at inception of those instruments. The model emphasizes historical experience and future market expectations to determine a loss to be recognized at inception. However, the model continues to be applied on an individual basis and rely on counter-party specific information to ensure the most accurate estimate is recognized. The Company reassesses its reserves on finance receivables at each balance sheet date to determine if an adjustment to the previous reserve is necessary.

Accounting for Lease Concessions Related to COVID-19. In April 2020, the FASB staff issued a question-and-answer document (the “Lease Modification Q&A”) focused on the application of lease accounting guidance to lease concessions provided as a result of COVID-19. Under ASC 842, the Company would have to determine, on a lease-by-lease basis, if a lease concession was the result of a new arrangement reached with the tenant (treated within the lease modification accounting framework) or if a lease concession was under the enforceable rights and obligations within the existing lease agreement (precluded from applying the lease modification accounting framework). The Lease Modification Q&A allows the Company, if certain criteria have been met, to bypass the lease-by-lease analysis, and instead elect to either apply the lease modification accounting framework or not, with such election applied consistently to leases with similar characteristics and similar circumstances. During the three and six months ended June 30, 2020, the Company provided rent deferrals (to be repaid before the end of 2020) to certain tenants in its life science and medical office segments that were impacted by COVID-19 (discussed in further detail in Note 6). No such rent deferrals were provided to tenants during the three and six months ended June 30, 2021. The Company elected to not assess these rent deferrals on a lease-by-lease basis and to continue recognizing rent revenue on a straight-line basis.

While the Company’s election for rent deferrals will be applied consistently to future deferrals with similar characteristics and similar circumstances, if the Company grants future lease concessions of a different type (such as rent abatements), it will make an election related to those concessions at that time.

Not Yet Adopted

Reference Rate Reform. In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting (“ASU 2020-04”), which provides optional guidance for a limited period of time to ease the potential burden in accounting for, or recognizing the effects of, reference rate reform on financial reporting. In January 2021, the FASB issued ASU No. 2021-01, Reference Rate Reform (Topic 848): Scope (“ASU 2021-01”), which amends the scope of ASU 2020-04 to include derivative instruments that use an interest rate for margining, discounting, or contract price alignment that is modified as a result of reference rate reform. The amendments in ASU 2020-04 and ASU 2021-01 are effective immediately and may be applied through December 31, 2022. The Company is evaluating: (i) how the transition away from LIBOR will impact the Company, (ii) whether the optional relief provided by these standards will be adopted, and (iii) the impact that adopting ASU 2020-04 or ASU 2021-01 will have on its consolidated financial position, results of operations, cash flows, or disclosures.

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Summary of Significant Accounting Policies (Tables)

6 Months Ended

Jun. 30, 2021

Accounting Policies [Abstract]

Schedule of Government Grant Receivables, CARES Act

The following table summarizes information related to government grant income received and recognized by the Company (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
Government grant income recorded in other income (expense), net	$	87	$	11,871	$	1,397	$	11,871
Government grant income recorded in equity income (loss) from unconsolidated joint ventures	584		804		1,010		804
Government grant income recorded in income (loss) from discontinued operations	428		2,209		3,660		2,209
Total government grants received	$	1,099	$	14,884	$	6,067	$	14,884

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Dispositions of Real Estate and Discontinued Operations (Tables)

6 Months Ended

Jun. 30, 2021

Discontinued Operations and Disposal Groups [Abstract]

Summary of Assets and Liabilities

The following summarizes the assets and liabilities classified as discontinued operations at June 30, 2021 and December 31, 2020, which are included in assets held for sale and discontinued operations, net and liabilities related to assets held for sale and discontinued operations, net, respectively, on the consolidated balance sheets (in thousands):

	June 30, 2021		December 31, 2020
ASSETS
Real estate:
Buildings and improvements	$	106,495	$	2,553,254
Development costs and construction in progress	11,255		21,509
Land	24,215		355,803
Accumulated depreciation and amortization	(42,999)		(615,708)
Net real estate	98,966		2,314,858
Investments in and advances to unconsolidated joint ventures	—		5,842
Accounts receivable, net of allowance of $4,951 and $5,873	10,928		20,500
Cash and cash equivalents	17,354		53,085
Restricted cash	974		17,168
Intangible assets, net	6,596		24,541
Right-of-use asset, net	104		4,109
Other assets, net(1)	29,908		103,965
Total assets of discontinued operations, net(2)	164,830		2,544,068
Assets held for sale, net(3)	81,977		82,238
Assets held for sale and discontinued operations, net	$	246,807	$	2,626,306
LIABILITIES
Mortgage debt(4)	$	37,069	$	318,876
Lease liability	104		3,189
Accounts payable, accrued liabilities, and other liabilities	26,564		79,411
Deferred revenue	797		11,442
Total liabilities of discontinued operations, net(2)	64,534		412,918
Liabilities related to assets held for sale, net(3)	738		2,819
Liabilities related to assets held for sale and discontinued operations, net	$	65,272	$	415,737

_______________________________________

(1)Includes goodwill of $22 million and $29 million as of June 30, 2021 and December 31, 2020, respectively.

(2)At June 30, 2021, four senior housing triple-net facilities and eight SHOP facilities were classified as held for sale and discontinued operations. At December 31, 2020, 41 senior housing triple-net facilities, 97 SHOP facilities, and 1 SHOP joint venture were classified as held for sale and discontinued operations.

(3)As of June 30, 2021, primarily comprised of the following: (i) four MOBs with net real estate assets of $26 million and right-of-use asset, net of $3 million and (ii) two loans receivable with a total carrying value of $53 million. As of December 31, 2020, primarily comprised of six MOBs with net real estate assets of $73 million and deferred revenue of $2 million.

(4)During the three months ended June 30, 2021 and 2020, the Company made full and partial repayments of mortgage debt classified as discontinued operations of $241 million and $1 million, respectively. During the six months ended June 30, 2021 and 2020, the Company made full and partial repayments of mortgage debt classified as discontinued operations of $281 million and $6 million, respectively.

The results of discontinued operations through June 30, 2021, or the disposal date of each asset or portfolio of assets if they have been sold, are included in the consolidated results for the three and six months ended June 30, 2021 and 2020. Summarized financial information for discontinued operations for the three and six months ended June 30, 2021 and 2020 are as follows (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
Revenues:
Rental and related revenues	$	1,613	$	24,110	$	6,841	$	56,481
Resident fees and services	30,273		155,771		103,270		327,496
Total revenues	31,886		179,881		110,111		383,977
Costs and expenses:
Interest expense	1,177		2,727		3,853		5,412
Depreciation and amortization	—		38,797		—		102,961
Operating	33,647		138,033		105,165		276,669
Transaction costs	—		254		76		539
Impairments and loan loss reserves (recoveries), net	10,995		17,213		10,995		45,229
Total costs and expenses	45,819		197,024		120,089		430,810
Other income (expense):
Gain (loss) on sales of real estate, net	122,238		1,579		381,900		164,379
Other income (expense), net	128		2,171		6,012		2,126
Total other income (expense), net	122,366		3,750		387,912		166,505
Income (loss) before income taxes and equity income (loss) from unconsolidated joint ventures	108,433		(13,393)		377,934		119,672
Income tax benefit (expense)	302		7,452		1,124		10,628
Equity income (loss) from unconsolidated joint ventures	5,225		649		4,910		(184)
Income (loss) from discontinued operations	$	113,960	$	(5,292)	$	383,968	$	130,116

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Leases (Tables)

6 Months Ended

Jun. 30, 2021

Leases [Abstract]

Schedule of Company's Lease Income

The following table summarizes the Company’s lease income, excluding discontinued operations (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
Fixed income from operating leases	$	268,290	$	231,569	$	531,246	$	457,795
Variable income from operating leases	72,352		56,684		137,368		112,775
Interest income from direct financing leases	2,180		2,150		4,343		5,419

Schedule of Components of Net Investment in DFLs

Net investment in DFLs consists of the following (dollars in thousands):

	June 30, 2021		December 31, 2020
Present value of minimum lease payments receivable	$	5,579	$	9,804
Present value of estimated residual value	44,706		44,706
Less deferred selling profits	(5,579)		(9,804)
Net investment in direct financing leases	$	44,706	$	44,706

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Loans Receivable (Tables)

6 Months Ended

Jun. 30, 2021

Receivables [Abstract]

Schedule of Loans Receivable

The following table summarizes the Company’s loans receivable (in thousands):

	June 30, 2021		December 31, 2020
Secured loans(1)	$	416,729	$	161,530
Mezzanine and other	22,943		44,347
Unamortized discounts, fees, and costs	(6,398)		(222)
Reserve for loan losses	(4,198)		(10,280)
Loans receivable, net	$	429,076	$	195,375

_______________________________________

(1)At June 30, 2021, the Company had $61 million remaining of commitments to fund senior housing redevelopment and capital expenditure projects. At December 31, 2020, the Company had $11 million remaining of commitments to fund senior housing redevelopment and capital expenditure projects.

Schedule of Financing Receivable Credit Quality Indicators and by Year of Origination

The following table summarizes, by year of origination, the Company’s internal ratings for loans receivable, net of unamortized discounts, fees, and costs and reserves for loan losses, as of June 30, 2021 (dollars in thousands):

Investment Type	Year of Origination												Total
	2021		2020		2019		2018		2017		Prior
Secured loans
Risk rating:
Performing loans	$	307,375	$	89,315	$	9,458	$	—	$	—	$	—	$	406,148
Watch list loans	—		—		—		—		—		—		—
Workout loans	—		—		—		—		—		—		—
Total secured loans	$	307,375	$	89,315	$	9,458	$	—	$	—	$	—	$	406,148
Mezzanine and other
Risk rating:
Performing loans	$	19,324	$	3,492	$	112	$	—	$	—	$	—	$	22,928
Watch list loans	—		—		—		—		—		—		—
Workout loans	—		—		—		—		—		—		—
Total mezzanine and other	$	19,324	$	3,492	$	112	$	—	$	—	$	—	$	22,928

Schedule of Financing Receivable, Allowance for Credit Loss

The following table summarizes the Company’s reserve for loan losses (in thousands):

	June 30, 2021						December 31, 2020
	Secured Loans		Mezzanine and Other		Total		Secured Loans		Mezzanine and Other		Total
Reserve for loan losses, beginning of period	$	3,152	$	7,128	$	10,280	$	—	$	—	$	—
Cumulative-effect of adopting of ASU 2016-13 to beginning retained earnings	—		—		—		513		907		1,420
Expected loan losses related to loans sold(1)	—		(675)		(675)		(259)		(8,135)		(8,394)
Expected loan losses related to loans transferred to held for sale(2)	(498)		(7,340)		(7,838)		—		—		—
Provision for expected loan losses	1,529		902		2,431		2,898		14,356		17,254
Reserve for loan losses, end of period	$	4,183	$	15	$	4,198	$	3,152	$	7,128	$	10,280

_______________________________________

(1)Includes two loans sold during the six months ended June 30, 2021 and three loans sold during the year ended December 31, 2020.

(2)Includes two loans held for sale at June 30, 2021.

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Investments in and Advances to Unconsolidated Joint Ventures (Tables)

6 Months Ended

Jun. 30, 2021

Equity Method Investments and Joint Ventures [Abstract]

Schedule of Equity Method Investments

The Company owns interests in the following entities that are accounted for under the equity method, excluding investments classified as discontinued operations (dollars in thousands): 

				Carrying Amount
				June 30,		December 31,
Entity(1)(2)	Segment	Property Count(3)	Ownership %(3)	2021		2020
SWF SH JV	Other	19	54	$	352,368	$	357,581
Life Science JV	Life science	1	49	24,505		24,879
Medical Office JVs(4)	Medical office	3	20 - 67	9,501		9,673
CCRC JV(5)	CCRC	—	—	2,041		1,581
Other JVs(6)	Other	—	—	—		9,157
				$	388,415	$	402,871

_______________________________________

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

(2)Excludes the Otay Ranch JV (90% ownership percentage), which is classified as discontinued operations and had an aggregate carrying value of $6 million at December 31, 2020 (see Note 5). In April 2021, the SHOP property in the Otay Ranch JV was sold, resulting in the Company’s share of proceeds of $32 million and a gain on sale of $5 million recognized in equity income (loss) from unconsolidated joint ventures within income (loss) from discontinued operations.

(3)Property count and ownership percentage are as of June 30, 2021.

(4)Includes three unconsolidated medical office joint ventures in which the Company holds an ownership percentage as follows: (i) Ventures IV (20%); (ii) Ventures III (30%); and (iii) Suburban Properties, LLC (67%).

(5)See Note 3 for a discussion of the 2019 MTCA with Brookdale, including the acquisition of Brookdale’s interest in 13 of the 15 communities in the CCRC JV in January 2020. In May 2021, the two remaining CCRCs were sold for $38 million, $19 million of which represents the Company’s 49% interest, resulting in an immaterial gain on sale recorded within equity income (loss) from unconsolidated joint ventures.

(6)In April 2021, the Company sold its two preferred equity investments for their carrying value as part of the Discovery SHOP Portfolio disposition (see Note 5). At December 31, 2020, includes two unconsolidated other joint ventures in which the Company’s ownership percentage is as follows: (i) Discovery Naples JV (41%) and (ii) Discovery Sarasota JV (47%).

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Intangibles (Tables)

6 Months Ended

Jun. 30, 2021

Intangibles [Abstract]

Schedule of Intangible Lease Assets

Intangible assets primarily consist of lease-up intangibles and above market tenant lease intangibles. The following table summarizes the Company’s intangible lease assets (dollars in thousands):

Intangible lease assets	June 30, 2021		December 31, 2020
Gross intangible lease assets	$	794,423	$	761,328
Accumulated depreciation and amortization	(282,811)		(241,411)
Intangible assets, net(1)	$	511,612	$	519,917
Weighted average remaining amortization period in years	6		5

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(1)Excludes intangible assets reported in assets held for sale and discontinued operations, net of $7 million and $25 million as of June 30, 2021 and December 31, 2020, respectively.

Schedule of Intangible Lease Liabilities

Intangible liabilities consist of below market lease intangibles. The following table summarizes the Company’s intangible lease liabilities (dollars in thousands):

Intangible lease liabilities	June 30, 2021		December 31, 2020
Gross intangible lease liabilities	$	197,623	$	194,565
Accumulated depreciation and amortization	(58,507)		(50,366)
Intangible liabilities, net	$	139,116	$	144,199
Weighted average remaining amortization period in years	8		8

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Debt (Tables)

6 Months Ended

Jun. 30, 2021

Debt Disclosure [Abstract]

Summary of Senior Notes Issuances

The following table summarizes the Company’s senior unsecured notes repurchases and redemptions during the six months ended June 30, 2021 (dollars in thousands):

Payoff Date	Amount		Coupon Rate		Maturity Year
May 19, 2021(1)	$	251,806	3.40	%	2025
May 19, 2021(1)	298,194		4.00	%	2025
February 26, 2021(2)	188,000		4.25	%	2023
February 26, 2021(2)	149,000		4.20	%	2024
February 26, 2021(2)	331,000		3.88	%	2024
January 28, 2021(2)	112,000		4.25	%	2023
January 28, 2021(2)	201,000		4.20	%	2024
January 28, 2021(2)	469,000		3.88	%	2024

_______________________________________

(1)Upon repurchasing a portion of the 3.40% and 4.00% senior unsecured notes due 2025, the Company recognized a $61 million loss on debt extinguishment.

(2)Upon completing the repurchases and redemptions of all outstanding 4.25%, 4.20%, and 3.88% senior unsecured notes due 2023 and 2024, the Company recognized a $164 million loss on debt extinguishment.

The senior unsecured notes were issued and the proceeds were received on July 12, 2021 as follows (dollars in thousands):

Issue Date	Amount		Coupon Rate		Maturity Year
July 12, 2021	$	450,000	1.35	%	2027

The following table summarizes the Company’s senior unsecured notes repurchases and redemptions during the year ended December 31, 2020 (dollars in thousands):

Payoff Date	Amount		Coupon Rate		Maturity Year
July 9, 2020(1)	$	300,000	3.15	%	2022
June 24, 2020(2)	250,000		4.25	%	2023

_______________________________________

(1)Upon completing the redemption of all outstanding 3.15% senior unsecured notes due 2022, the Company recognized an $18 million loss on debt extinguishment.

(2)Upon repurchasing a portion of the 4.25% senior unsecured notes due 2023, the Company recognized a $26 million loss on debt extinguishment.

The following table summarizes the Company’s senior unsecured notes issuances during the year ended December 31, 2020 (dollars in thousands):

Issue Date	Amount		Coupon Rate		Maturity Year
June 23, 2020	$	600,000	2.88	%	2031

Summary of Debt Maturities and Schedule Principal Repayments

The following table summarizes the Company’s stated debt maturities and scheduled principal repayments at June 30, 2021 (in thousands):

							Senior Unsecured Notes(3)				Mortgage Debt(4)
Year	Bank Line of Credit		Commercial Paper(1)		Term Loan(2)		Amount		Interest Rate		Amount		Interest Rate		Total
2021	$	—	$	—	$	—	$	—	—	%	$	10,159	4.86	%	$	10,159
2022	—		—		—		—		—	%	4,843		3.80	%	4,843
2023	—		720,000		—		—		—	%	89,874		3.80	%	809,874
2024	—		—		250,000		—		—	%	3,050		3.80	%	253,050
2025	—		—		—		800,000		3.93	%	3,209		3.80	%	803,209
Thereafter	—		—		—		2,950,000		3.68	%	244,889		3.07	%	3,194,889
	—		720,000		250,000		3,750,000				356,024				5,076,024
(Discounts), premium and debt costs, net	—		—		(697)		(39,028)				2,077				(37,648)
	—		720,000		249,303		3,710,972				358,101				5,038,376
Debt on assets held for sale and discontinued operations(5)	—		—		—		—				37,069				37,069
	$	—	$	720,000	$	249,303	$	3,710,972			$	395,170			$	5,075,445

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(1)Commercial Paper Program borrowings are backstopped by the Revolving Facility. As such, the Company calculates the weighted average remaining term of its Commercial Paper Program borrowings using the maturity date of the Revolving Facility.

(2)As of June 30, 2021, the Company had $250 million outstanding on the 2019 Term Loan, which was scheduled to mature on May 23, 2024. In July 2021, the Company repaid the $250 million outstanding balance on the 2019 Term Loan.

(3)Effective interest rates on the senior unsecured notes range from 3.10% to 6.91% with a weighted average effective interest rate of 3.75% and a weighted average maturity of 8 years. In July 2021, the Company issued $450 million aggregate principal amount of 1.35% senior unsecured notes due 2027 in its inaugural green bond offering.

(4)Excluding mortgage debt on assets classified as held for sale and discontinued operations, effective interest rates on the mortgage debt range from 2.42% to 5.91% with a weighted average effective interest rate of 3.28% and a weighted average maturity of 4 years.

(5)Represents mortgage debt on an asset held for sale reported in discontinued operations with an interest rate of 3.87% that matures in 2025.

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Equity (Tables)

6 Months Ended

Jun. 30, 2021

Equity [Abstract]

Schedule of Accumulated Other comprehensive Loss

The following table summarizes the Company’s accumulated other comprehensive income (loss) (in thousands):

	June 30, 2021		December 31, 2020
Unrealized gains (losses) on derivatives, net	$	—	$	(81)
Supplemental Executive Retirement Plan minimum liability	(3,389)		(3,604)
Total accumulated other comprehensive income (loss)	$	(3,389)	$	(3,685)

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Earnings Per Common Share (Tables)

6 Months Ended

Jun. 30, 2021

Earnings Per Share [Abstract]

Schedule of Computation of Basic and Diluted Earnings per Share

The following table illustrates the computation of basic and diluted earnings per share (in thousands, except per share amounts):

	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
Numerator
Income (loss) from continuing operations	$	168,065	$	60,341	$	47,480	$	207,473
Noncontrolling interests' share in continuing operations	(3,535)		(3,486)		(6,841)		(6,949)
Income (loss) from continuing operations attributable to Healthpeak Properties, Inc.	164,530		56,855		40,639		200,524
Less: Participating securities' share in continuing operations	(287)		(375)		(2,732)		(1,800)
Income (loss) from continuing operations applicable to common shares	164,243		56,480		37,907		198,724
Income (loss) from discontinued operations	113,960		(5,292)		383,968		130,116
Noncontrolling interests' share in discontinued operations	(2,210)		(57)		(2,539)		(54)
Net income (loss) applicable to common shares	$	275,993	$	51,131	$	419,336	$	328,786
Numerator - Dilutive
Net income (loss) applicable to common shares	$	275,993	$	51,131	$	419,336	$	328,786
Add: distributions on dilutive convertible units and other	1,540		—		—		—
Dilutive net income (loss) available to common shares	$	277,533	$	51,131	$	419,336	$	328,786
Denominator
Basic weighted average shares outstanding	538,929		538,262		538,805		522,427
Dilutive potential common shares - equity awards(1)	264		255		276		263
Dilutive potential common shares - forward equity agreements(2)	—		—		—		808
Dilutive potential common shares - DownREIT conversions	5,501		—		—		—
Diluted weighted average common shares	544,694		538,517		539,081		523,498
Basic earnings (loss) per common share
Continuing operations	$	0.30	$	0.10	$	0.07	$	0.38
Discontinued operations	0.21		(0.01)		0.71		0.25
Net income (loss) applicable to common shares	$	0.51	$	0.09	$	0.78	$	0.63
Diluted earnings (loss) per common share
Continuing operations	$	0.30	$	0.10	$	0.07	$	0.38
Discontinued operations	0.21		(0.01)		0.71		0.25
Net income (loss) applicable to common shares	$	0.51	$	0.09	$	0.78	$	0.63

_______________________________________

(1)For all periods presented, represents the dilutive impact of 1 million outstanding equity awards (restricted stock units and stock options).

(2)For the three and six months ended June 30, 2021, forward sales agreements had no dilutive impact as all agreements were settled prior to the start of the period. For the six months ended June 30, 2020, represents the dilutive impact of 32 million shares that were settled during the six months then ended. For the three months ended June 30, 2020, forward sales agreements had no dilutive impact as all agreements were settled prior to the start of the period.

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Segment Disclosures (Tables)

6 Months Ended

Jun. 30, 2021

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 June 30, 2021:

	Life Science		Medical Office		CCRC		Other Non-reportable		Corporate Non-segment		Total
Total revenues	$	177,527	$	165,295	$	117,308	$	16,108	$	—	$	476,238
Government grant income(1)	—		—		87		—		—		87
Less: Interest income	—		—		—		(16,108)		—		(16,108)
Healthpeak’s share of unconsolidated joint venture total revenues	1,412		710		2,415		16,740		—		21,277
Healthpeak’s share of unconsolidated joint venture government grant income	—		—		—		583		—		583
Noncontrolling interests’ share of consolidated joint venture total revenues	(75)		(8,825)		—		—		—		(8,900)
Operating expenses	(40,724)		(54,648)		(94,760)		—		—		(190,132)
Healthpeak’s share of unconsolidated joint venture operating expenses	(428)		(317)		(2,208)		(12,451)		—		(15,404)
Noncontrolling interests’ share of consolidated joint venture operating expenses	21		2,552		—		—		—		2,573
Adjustments to NOI(2)	(12,366)		(2,003)		1,226		(27)		—		(13,170)
Adjusted NOI	125,367		102,764		24,068		4,845		—		257,044
Plus: Adjustments to NOI(2)	12,366		2,003		(1,226)		27		—		13,170
Interest income	—		—		—		16,108		—		16,108
Interest expense	(48)		(786)		(1,924)		—		(35,923)		(38,681)
Depreciation and amortization	(76,955)		(63,371)		(31,133)		—		—		(171,459)
General and administrative	—		—		—		—		(24,088)		(24,088)
Transaction costs	21		35		(657)		(18)		—		(619)
Impairments and loan loss reserves	—		—		—		(931)		—		(931)
Gain (loss) on sales of real estate, net	—		175,238		—		—		—		175,238
Gain (loss) on debt extinguishments	—		—		—		—		(60,865)		(60,865)
Other income (expense), net	28		(175)		165		—		1,716		1,734
Less: Government grant income	—		—		(87)		—		—		(87)
Less: Healthpeak’s share of unconsolidated joint venture NOI	(984)		(393)		(207)		(4,872)		—		(6,456)
Plus: Noncontrolling interests’ share of consolidated joint venture NOI	54		6,273		—		—		—		6,327
Income (loss) before income taxes and equity income (loss) from unconsolidated joint ventures	59,849		221,588		(11,001)		15,159		(119,160)		166,435
Income tax benefit (expense)	—		—		—		—		763		763
Equity income (loss) from unconsolidated joint ventures	111		137		639		(20)		—		867
Income (loss) from continuing operations	59,960		221,725		(10,362)		15,139		(118,397)		168,065
Income (loss) from discontinued operations	—		—		—		—		113,960		113,960
Net income (loss)	$	59,960	$	221,725	$	(10,362)	$	15,139	$	(4,437)	$	282,025

_______________________________________

(1)Represents government grant income received under the CARES Act, which is recorded in other income (expense), net in the Consolidated Statements of Operations (see Note 2).

(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, 2020:

	Life Science		Medical Office		CCRC		Other Non-reportable		Corporate Non-segment		Total
Total revenues	$	138,496	$	151,844	$	113,926	$	4,293	$	—	$	408,559
Government grant income(1)	—		—		11,871		—		—		11,871
Less: Interest income	—		—		—		(4,230)		—		(4,230)
Healthpeak’s share of unconsolidated joint venture total revenues	—		691		4,781		18,682		—		24,154
Healthpeak’s share of unconsolidated joint venture government grant income	—		—		534		270		—		804
Noncontrolling interests’ share of consolidated joint venture total revenues	(57)		(8,347)		—		—		—		(8,404)
Operating expenses	(34,205)		(49,355)		(94,248)		—		—		(177,808)
Healthpeak’s share of unconsolidated joint venture operating expenses	—		(276)		(4,826)		(13,681)		—		(18,783)
Noncontrolling interests’ share of consolidated joint venture operating expenses	18		2,507		—		—		—		2,525
Adjustments to NOI(2)	(2,779)		(465)		18		99		—		(3,127)
Adjusted NOI	101,473		96,599		32,056		5,433		—		235,561
Plus: Adjustments to NOI(2)	2,779		465		(18)		(99)		—		3,127
Interest income	—		—		—		4,230		—		4,230
Interest expense	(60)		(100)		(1,969)		—		(52,694)		(54,823)
Depreciation and amortization	(52,356)		(55,904)		(31,426)		(5)		—		(139,691)
General and administrative	—		—		—		—		(23,720)		(23,720)
Transaction costs	(1)		—		(368)		(4)		—		(373)
Impairments and loan loss reserves	—		(2,119)		—		(4,718)		—		(6,837)
Gain (loss) on sales of real estate, net	—		81,284		—		—		—		81,284
Gain (loss) on debt extinguishments	—		—		—		—		(25,824)		(25,824)
Other income (expense), net	—		—		14,142		—		3,273		17,415
Less: Government grant income	—		—		(11,871)		—		—		(11,871)
Less: Healthpeak’s share of unconsolidated joint venture NOI	—		(415)		(489)		(5,271)		—		(6,175)
Plus: Noncontrolling interests’ share of consolidated joint venture NOI	39		5,840		—		—		—		5,879
Income (loss) before income taxes and equity income (loss) from unconsolidated joint ventures	51,874		125,650		57		(434)		(98,965)		78,182
Income tax benefit (expense)	—		—		—		—		(106)		(106)
Equity income (loss) from unconsolidated joint ventures	—		210		401		(18,346)		—		(17,735)
Income (loss) from continuing operations	51,874		125,860		458		(18,780)		(99,071)		60,341
Income (loss) from discontinued operations	—		—		—		—		(5,292)		(5,292)
Net income (loss)	$	51,874	$	125,860	$	458	$	(18,780)	$	(104,363)	$	55,049

______________________________________________________________________________

(1)Represents government grant income received under the CARES Act, which is recorded in other income (expense), net in the Consolidated Statements of Operations (see Note 2).

(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 six months ended June 30, 2021:

	Life Science		Medical Office		CCRC		Other Non-reportable		Corporate Non-segment		Total
Total revenues	$	347,461	$	325,496	$	233,436	$	25,121	$	—	$	931,514
Government grant income(1)	—		—		1,397		—		—		1,397
Less: Interest income	—		—		—		(25,121)		—		(25,121)
Healthpeak’s share of unconsolidated joint venture total revenues	2,749		1,425		6,903		33,493		—		44,570
Healthpeak’s share of unconsolidated joint venture government grant income	—		—		199		810		—		1,009
Noncontrolling interests’ share of consolidated joint venture total revenues	(140)		(17,751)		—		—		—		(17,891)
Operating expenses	(80,185)		(105,769)		(185,939)		—		—		(371,893)
Healthpeak’s share of unconsolidated joint venture operating expenses	(853)		(611)		(6,953)		(25,046)		—		(33,463)
Noncontrolling interests’ share of consolidated joint venture operating expenses	41		5,056		—		—		—		5,097
Adjustments to NOI(2)	(24,176)		(3,926)		1,246		85		—		(26,771)
Adjusted NOI	244,897		203,920		50,289		9,342		—		508,448
Plus: Adjustments to NOI(2)	24,176		3,926		(1,246)		(85)		—		26,771
Interest income	—		—		—		25,121		—		25,121
Interest expense	(150)		(881)		(3,842)		—		(80,651)		(85,524)
Depreciation and amortization	(145,388)		(121,326)		(62,283)		—		—		(328,997)
General and administrative	—		—		—		—		(48,990)		(48,990)
Transaction costs	(11)		(295)		(1,090)		(21)		—		(1,417)
Impairments and loan loss reserves	—		—		—		(4,173)		—		(4,173)
Gain (loss) on sales of real estate, net	—		175,238		—		—		—		175,238
Gain (loss) on debt extinguishments	—		—		—		—		(225,157)		(225,157)
Other income (expense), net	33		(2,454)		2,341		482		3,532		3,934
Less: Government grant income	—		—		(1,397)		—		—		(1,397)
Less: Healthpeak’s share of unconsolidated joint venture NOI	(1,896)		(814)		(149)		(9,257)		—		(12,116)
Plus: Noncontrolling interests’ share of consolidated joint venture NOI	99		12,695		—		—		—		12,794
Income (loss) before income taxes and equity income (loss) from unconsolidated joint ventures	121,760		270,009		(17,377)		21,409		(351,266)		44,535
Income tax benefit (expense)	—		—		—		—		755		755
Equity income (loss) from unconsolidated joint ventures	18		328		639		1,205		—		2,190
Income (loss) from continuing operations	121,778		270,337		(16,738)		22,614		(350,511)		47,480
Income (loss) from discontinued operations	—		—		—		—		383,968		383,968
Net income (loss)	$	121,778	$	270,337	$	(16,738)	$	22,614	$	33,457	$	431,448

______________________________________________________________________________

(1)Represents government grant income received under the CARES Act, which is recorded in other income (expense), net in the Consolidated Statements of Operations (see Note 2).

(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 six months ended June 30, 2020:

	Life Science		Medical Office		CCRC		Other Non-reportable		Corporate Non-segment		Total
Total revenues	$	267,379	$	308,485	$	205,706	$	8,043	$	—	$	789,613
Government grant income(1)	—		—		11,871		—		—		11,871
Less: Interest income	—		—		—		(7,918)		—		(7,918)
Healthpeak’s share of unconsolidated joint venture total revenues	—		1,386		26,428		38,876		—		66,690
Healthpeak’s share of unconsolidated joint venture government grant income	—		—		534		270		—		804
Noncontrolling interests’ share of consolidated joint venture total revenues	(109)		(16,987)		—		—		—		(17,096)
Operating expenses	(64,406)		(100,049)		(250,730)		—		—		(415,185)
Healthpeak’s share of unconsolidated joint venture operating expenses	—		(551)		(22,863)		(26,959)		—		(50,373)
Noncontrolling interests’ share of consolidated joint venture operating expenses	35		5,107		—		—		—		5,142
Adjustments to NOI(2)	(7,059)		(1,459)		91,579		51		—		83,112
Adjusted NOI	195,840		195,932		62,525		12,363		—		466,660
Plus: Adjustments to NOI(2)	7,059		1,459		(91,579)		(51)		—		(83,112)
Interest income	—		—		—		7,918		—		7,918
Interest expense	(122)		(203)		(3,273)		—		(106,916)		(110,514)
Depreciation and amortization	(102,567)		(110,571)		(51,655)		(10)		—		(264,803)
General and administrative	—		—		—		—		(46,069)		(46,069)
Transaction costs	(1)		—		(14,842)		(93)		—		(14,936)
Impairments and loan loss reserves	—		(4,825)		—		(13,119)		—		(17,944)
Gain (loss) on sales of real estate, net	—		83,393		—		(40)		—		83,353
Gain (loss) on debt extinguishments	—		—		—		—		(24,991)		(24,991)
Other income (expense), net	—		—		184,474		41,707		1,887		228,068
Less: Government grant income	—		—		(11,871)		—		—		(11,871)
Less: Healthpeak’s share of unconsolidated joint venture NOI	—		(835)		(4,099)		(12,187)		—		(17,121)
Plus: Noncontrolling interests’ share of consolidated joint venture NOI	74		11,880		—		—		—		11,954
Income (loss) before income taxes and equity income (loss) from unconsolidated joint ventures	100,283		176,230		69,680		36,488		(176,089)		206,592
Income tax benefit (expense)(3)	—		—		—		—		29,762		29,762
Equity income (loss) from unconsolidated joint ventures	—		407		(1,479)		(27,809)		—		(28,881)
Income (loss) from continuing operations	100,283		176,637		68,201		8,679		(146,327)		207,473
Income (loss) from discontinued operations	—		—		—		—		130,116		130,116
Net income (loss)	$	100,283	$	176,637	$	68,201	$	8,679	$	(16,211)	$	337,589

______________________________________________________________________________

(1)Represents government grant income received under the CARES Act, which is recorded in other income (expense), net in the Consolidated Statements of Operations (see Note 2).

(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 quarter 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.

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	2021		2020		2021		2020
Life science	$	177,527	$	138,496	$	347,461	$	267,379
Medical office	165,295		151,844		325,496		308,485
CCRC	117,308		113,926		233,436		205,706
Other non-reportable	16,108		4,293		25,121		8,043
Total revenues	$	476,238	$	408,559	$	931,514	$	789,613

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Supplemental Cash Flow Information (Tables)

6 Months Ended

Jun. 30, 2021

Supplemental Cash Flow Elements [Abstract]

Schedule of Supplemental Cash Flow Information

The following table provides supplemental cash flow information (in thousands):

	Six Months Ended June 30,
	2021		2020
Supplemental cash flow information:
Interest paid, net of capitalized interest	$	109,277	$	104,370
Income taxes paid (refunded)	4,026		164
Capitalized interest	10,867		13,680
Supplemental schedule of non-cash investing and financing activities:
Accrued construction costs	113,221		117,895
Vesting of restricted stock units and conversion of non-managing member units into common stock	900		4,703
Net noncash impact from the consolidation of previously unconsolidated joint ventures	—		323,138
Mortgages assumed with real estate acquisitions	—		215,335
Carrying value of mortgages assumed by buyer in real estate dispositions	106,632		—
Refundable entrance fees assumed with real estate acquisitions	—		307,954
Seller financing provided on disposition of real estate asset	559,745		12,480
ROU asset obtained in exchange for new lease liability related to operating leases	13,157		23,962

The following table summarizes certain cash flow information related to assets classified as discontinued operations (in thousands):

	Six Months Ended June 30,
	2021		2020
Depreciation and amortization of real estate, in-place lease, and other intangibles	$	—	$	102,961
Development, redevelopment, and other major improvements of real estate	4,569		17,816
Leasing costs, tenant improvements, and recurring capital expenditures	2,349		6,520

Schedule of Cash, Cash Equivalents and Restricted Cash

The following table summarizes cash, cash equivalents and restricted cash (in thousands):

	Six Months Ended June 30,
	2021		2020		2021		2020		2021		2020
	Continuing operations				Discontinued operations				Total
Beginning of period:
Cash and cash equivalents	$	44,226	$	80,398	$	53,085	$	63,834	$	97,311	$	144,232
Restricted cash	67,206		13,385		17,168		27,040		84,374		40,425
Cash, cash equivalents and restricted cash	$	111,432	$	93,783	$	70,253	$	90,874	$	181,685	$	184,657
End of period:
Cash and cash equivalents	$	96,923	$	672,078	$	17,354	$	58,879	$	114,277	$	730,957
Restricted cash	129,052		85,473		974		20,211		130,026		105,684
Cash, cash equivalents and restricted cash	$	225,975	$	757,551	$	18,328	$	79,090	$	244,303	$	836,641

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Variable Interest Entities (Tables)

6 Months Ended

Jun. 30, 2021

Variable Interest Entities [Abstract]

Schedule of Variable Interest Entities

The classification of the related assets and liabilities and the maximum loss exposure as a result of the Company’s involvement with these VIEs at June 30, 2021 was as follows (in thousands):

VIE Type	Asset Type	Maximum Loss Exposure and Carrying Amount(1)
Continuing operations:
CCRC OpCo	Investments in and advances to unconsolidated joint ventures	$	1,940
Loans receivable	Loans receivable, net	3,045
CMBS and LLC investment	Other assets, net	35,999

_______________________________________

(1)The Company’s maximum loss exposure represents the aggregate carrying amount of such investments (including accrued interest).

Consolidated Assets and Liabilities of Variable Interest Entities

Total assets and total liabilities include VIE assets and liabilities as follows (in thousands):

	June 30, 2021		December 31, 2020
Assets
Buildings and improvements	$	2,337,717	$	2,988,599
Development costs and construction in progress	46,634		85,595
Land	379,376		433,574
Accumulated depreciation and amortization	(520,226)		(602,491)
Net real estate	2,243,501		2,905,277
Accounts receivable, net	6,781		12,009
Cash and cash equivalents	26,970		16,550
Restricted cash	86,642		7,977
Intangible assets, net	102,428		179,027
Assets held for sale and discontinued operations, net	25,411		704,966
Right-of-use asset, net	108,088		95,407
Other assets, net	61,457		59,063
Total assets	$	2,661,278	$	3,980,276
Liabilities
Mortgage debt	$	144,263	$	39,085
Intangible liabilities, net	20,378		56,467
Liabilities related to assets held for sale and discontinued operations, net	4,560		190,919
Lease liability	97,849		97,605
Accounts payable, accrued liabilities, and other liabilities	52,757		102,391
Deferred revenue	34,427		90,183
Total liabilities	$	354,234	$	576,650

Total assets and liabilities related to assets held for sale and discontinued operations include VIE assets and liabilities as follows (in thousands):

	June 30, 2021		December 31, 2020
Assets
Buildings and improvements	$	32,173	$	639,759
Development costs and construction in progress	91		68
Land	2,724		106,209
Accumulated depreciation and amortization	(16,096)		(57,235)
Net real estate	18,892		688,801
Accounts receivable, net	2,368		1,700
Cash and cash equivalents	1,016		6,306
Restricted cash	294		3,124
Right-of-use asset, net	405		1,391
Other assets, net	2,436		3,644
Total assets	$	25,411	$	704,966
Liabilities
Mortgage debt	$	—	$	176,702
Lease liability	644		1,392
Accounts payable, accrued liabilities, and other liabilities	3,743		11,003
Deferred revenue	173		1,822
Total liabilities	$	4,560	$	190,919

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Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2021

Financial Instruments, Owned, at Fair Value [Abstract]

Summary of Carry Amounts and Fair Value of Financial Instruments

The table below summarizes the carrying amounts and fair values of the Company’s financial instruments (in thousands):

	June 30, 2021(3)				December 31, 2020(3)
	Carrying Value		Fair Value		Carrying Value		Fair Value
Loans receivable, net(2)	$	429,076	$	437,632	$	195,375	$	201,228
Marketable debt securities(2)	20,673		20,673		20,355		20,355
Interest rate cap assets(2)	244		244		—		—
Bank line of credit and commercial paper(2)	720,000		720,000		129,590		129,590
Term loan(2)	249,303		249,303		249,182		249,182
Senior unsecured notes(1)	3,710,972		4,169,472		5,697,586		6,517,650
Mortgage debt(2)(4)	358,101		360,296		221,621		221,181
Interest rate swap liabilities(2)	—		—		81		81

_______________________________________

(1)Level 1: Fair value calculated based on quoted prices in active markets.

(2)Level 2: Fair value based on (i) for marketable debt securities, quoted prices for similar or identical instruments in active or inactive markets, respectively, or (ii) for loans receivable, net, mortgage debt, swaps, and caps, standardized pricing models in which significant inputs or value drivers are observable in active markets. For bank line of credit, commercial paper, and term loan, the carrying values are a reasonable estimate of fair value because the borrowings are primarily based on market interest rates and the Company’s credit rating.

(3)During the six months ended June 30, 2021 and year ended December 31, 2020, there were no material transfers of financial assets or liabilities within the fair value hierarchy.

(4)For the six months ended June 30, 2021 and year ended December 31, 2020, excludes mortgage debt on assets held for sale and discontinued operations of $37 million and $319 million, respectively.

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Derivative Instruments and Hedging Activities (Tables)

6 Months Ended

Jun. 30, 2021

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Derivative Instruments

In April 2021, the Company executed two interest rate cap agreements on its mortgage debt issued in conjunction with the acquisition of the MOB Portfolio (see Note 4). The following table summarizes the Company’s outstanding interest rate cap agreements as of June 30, 2021 (dollars in thousands):

Date Entered	Maturity Date	Hedge Designation	Notional		Strike Rate	Index	Fair Value(1)
Interest rate:
April 2021(2)	May 2024	Non-designated	$	142,100	2.00 %	1 mo. USD-LIBOR-BBA	$	244

_____________________________

(1)Derivative assets are recorded in other assets, net in the consolidated balance sheets.

(2)Represents two interest rate cap agreements that manage the Company’s exposure to variable cash flows on certain mortgage debt borrowings by limiting interest rates.

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Accounts Payable, Accrued Liabilities, and Other Liabilities (Tables)

6 Months Ended

Jun. 30, 2021

Payables and Accruals [Abstract]

Schedule of Accounts Payable and Accrued Liabilities

The following table summarizes the Company’s accounts payable, accrued liabilities, and other liabilities, excluding accounts payable, accrued liabilities, and other liabilities related to assets classified as discontinued operations (in thousands):

	June 30, 2021		December 31, 2020
Refundable entrance fees(1)	$	301,953	$	317,444
Construction related accrued liabilities	113,221		95,293
Accrued interest	55,373		78,735
Other accounts payable and accrued liabilities	217,911		271,919
Accounts payable, accrued liabilities, and other liabilities	$	688,458	$	763,391

_______________________________________

(1)At June 30, 2021 and December 31, 2020, unamortized nonrefundable entrance fee liabilities were $485 million and $484 million, respectively, which are recorded within deferred revenue on the Consolidated Balance Sheets.

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Summary of Significant Accounting Policies - Government Grant Income (Details) - Government Assistance, CARES Act - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Unusual or Infrequent Item, or Both [Line Items]
Government grant income received	$ 1,099	$ 14,884	$ 6,067	$ 14,884
Government grant income recorded in other income (expense), net
Unusual or Infrequent Item, or Both [Line Items]
Government grant income received	87	11,871	1,397	11,871
Government grant income recorded in equity income (loss) from unconsolidated joint ventures
Unusual or Infrequent Item, or Both [Line Items]
Government grant income received	584	804	1,010	804
Government grant income recorded in income (loss) from discontinued operations
Unusual or Infrequent Item, or Both [Line Items]
Government grant income received	$ 428	$ 2,209	$ 3,660	$ 2,209

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Summary of Significant Accounting Policies - Narrative (Details) - USD ($) $ in Thousands		Jun. 30, 2021	Mar. 31, 2021	Dec. 31, 2020	Jun. 30, 2020	Mar. 31, 2020	Jan. 01, 2020	Dec. 31, 2019
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Cumulative effect adjustment		$ 7,433,729	$ 7,316,682	$ 7,344,572	$ 7,668,721	$ 7,813,443		$ 6,667,474
Cumulative Effect, Period of Adoption, Adjustment
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Cumulative effect adjustment	[1]							$ (1,524)
Cumulative Effect, Period of Adoption, Adjustment | Accounting Standards Update 2016-13
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Cumulative effect adjustment							$ 2,000

[1] On January 1, 2020, the Company adopted a series of Accounting Standards Updates (“ASUs”) related to accounting for credit losses and recognized the cumulative-effect of adoption to beginning retained earnings. Refer to Note 2 for a detailed impact of adoption.

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Master Transactions and Cooperation Agreement with Brookdale (Details)		1 Months Ended				3 Months Ended			6 Months Ended		12 Months Ended
	Jan. 31, 2020 USD ($) lease property	May 31, 2021 USD ($) property	Jan. 31, 2021 USD ($) property	Dec. 31, 2020 USD ($) property	Oct. 31, 2019 USD ($) property	Jun. 30, 2021 USD ($) property	Jun. 30, 2020 USD ($)	Mar. 31, 2020 USD ($) property	Jun. 30, 2021 USD ($) asset property	Jun. 30, 2020 USD ($) property	Dec. 31, 2020 USD ($) property
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Property count | property	15
Number of properties acquired | asset									0
Number of properties disposed | property										18
Capital investment				$ 5,000,000							$ 5,000,000
Gain upon change of control, net									$ 1,042,000	$ 169,962,000
Long-term debt						$ 5,075,445,000			5,075,445,000
Gain on sales of real estate, net						$ 175,238,000	$ 81,284,000		$ 175,238,000	83,353,000
Measurement Input, Discount Rate | Minimum
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Measurement input	0.10
Measurement Input, Discount Rate | Maximum
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Measurement input	0.12
Measurement Input, Annual Rent Escalators | Minimum
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Measurement input	0.02
Measurement Input, Annual Rent Escalators | Maximum
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Measurement input	0.03
Measurement Input, Cap Rate | Minimum
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Measurement input	0.07
Measurement Input, Cap Rate | Maximum
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Measurement input	0.09
Brookedale MTCA
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Number of properties disposed | property	18										18
Cash proceeds	$ 385,000,000
Gain on sales of real estate, net			$ 164,000,000
CCRC JV
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Property count | property						0			0
Investment ownership percentage	49.00%	49.00%		49.00%		0.00%			0.00%		49.00%
Equity method investments				$ 1,581,000		$ 2,041,000			$ 2,041,000		$ 1,581,000
Proceeds from sale of buildings		$ 19,000,000
CCRC JV | Brookedale MTCA
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Interest acquired	51.00%
Purchase cost	$ 1,060,000,000.00
Management termination fee	$ 100,000,000
Number of assets to be sold | property		2
Proceeds from sale of buildings		$ 38,000,000
CCRC JV | Brookedale MTCA
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Property count | property	15
Number of properties acquired | property	13							13
Equity method investments	$ 323,000,000
Real estate and intangible assets								$ 1,800,000,000
Refundable entrance fee liabilities								308,000,000
Non-refundable entrance fee liabilities								436,000,000
Long-term debt								215,000,000
Working capital								48,000,000
Cash paid								$ 396,000,000
CCRC JV | Brookedale MTCA | Government grant income recorded in other income (expense), net
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Gain upon change of control, net	$ 170,000,000
Senior Housing Triple-Net
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Number of assets to be sold | property											21
Proceeds from sale of buildings						$ 12,000,000				$ 385,000,000	$ 428,000,000
2019 Amended Master Lease | Brookedale MTCA
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Annual rent escalator	2.40%
Lessor Asset Under Operating Lease | 2019 Amended Master Lease | Brookedale MTCA
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Number of properties to be restructured | property	24		24
Number of leases to be terminated	1			1
Percent of sales proceeds	6.50%
Number of properties to be reallocated | property	14
Future rent	$ 20,000,000
Capital investment					$ 35,000,000
Capital investment term					5 years
Annual percent increase					7.00%
Other Non-reportable Segments
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Number of assets to be sold | property											1
Proceeds from sale of buildings											$ 1,000,000
Other Non-reportable Segments | Lessor Asset Under Operating Lease
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Property count | property				1							1
Other Non-reportable Segments | Lessor Asset Under Operating Lease | Brookedale MTCA
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Property count | property	13
Other Non-reportable Segments | Lessor Asset Under Operating Lease | CCRC JV
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Property count | property					15
Other Non-reportable Segments | Lessor Asset Under Operating Lease | CCRC JV | Brookedale MTCA
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Property count | property	13
Senior Housing Triple-Net
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Number of assets to be sold | property						3				18
Senior Housing Triple-Net | Lessor Asset Under Operating Lease
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Property count | property					43

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Real Estate Transactions - Real Estate Investments (Details)	1 Months Ended									6 Months Ended		12 Months Ended
	Jul. 31, 2021 USD ($) property	Jun. 30, 2021 USD ($) property	Apr. 30, 2021 USD ($) property	Feb. 28, 2021 USD ($) property	Dec. 31, 2020 USD ($) property	Nov. 30, 2020 USD ($) property	Oct. 31, 2020 USD ($) a property	Jul. 31, 2020 USD ($) property	Apr. 30, 2020 USD ($)	Jun. 30, 2021 USD ($) asset	Jun. 30, 2020 USD ($)	Dec. 31, 2020 asset
Real Estate [Line Items]
Number of properties acquired | asset										0
Loss from change of control										$ (1,042,000)	$ (169,962,000)
Debt assumed		$ 5,076,024,000								$ 5,076,024,000
Life science joint ventures
Real Estate [Line Items]
Investment ownership percentage		49.00%								49.00%
Waldwick
Real Estate [Line Items]
Number of properties acquired | property							1
Investment ownership percentage							100.00%
Additional ownership percentage acquired							15.00%
Payments to acquire real estate joint ventures							$ 4,000,000
Gain from change of control, net							$ 6,000,000
Mbk Jv
Real Estate [Line Items]
Number of properties acquired | property						1
Proceeds from divestiture of interest in joint venture						$ 11,000,000
Loss from change of control						16,000,000
Debt assumed						36,000,000
San Francisco, California
Real Estate [Line Items]
Area of land | a							12
Payments to acquire land							$ 128,000,000
Number of adjacent sites currently held | property							2
Payments for deposits on real estate acquisitions						$ 10,000,000
San Francisco, California | First Tranche
Real Estate [Line Items]
Payments to acquire land			$ 61,000,000
Massachusetts
Real Estate [Line Items]
Payments to acquire real estate					$ 54,000,000
Massachusetts | Life science joint ventures
Real Estate [Line Items]
Investment ownership percentage					49.00%							49.00%
Medical office
Real Estate [Line Items]
Number of properties acquired | asset												7
Medical office | Mortgage Debt
Real Estate [Line Items]
Amount			$ 142,000,000
Medical office | TENNESSEE
Real Estate [Line Items]
Number of properties acquired | property				1
Payments to acquire real estate				$ 13,000,000
Medical office | COLORADO
Real Estate [Line Items]
Number of properties acquired | property			1
Payments to acquire real estate			$ 38,000,000
Medical office | UNITED STATES
Real Estate [Line Items]
Number of properties acquired | property			14
Payments to acquire real estate			$ 371,000,000
Medical office | FLORIDA
Real Estate [Line Items]
Number of properties acquired | property		1
Payments to acquire real estate		$ 16,000,000
Medical office | Kansas | Subsequent Event
Real Estate [Line Items]
Number of properties acquired | property	1
Payments to acquire real estate	$ 50,000,000
Medical office | NEW JERSEY | Subsequent Event
Real Estate [Line Items]
Number of properties acquired | property	3
Payments to acquire real estate	$ 155,000,000
Medical office | ARIZONA
Real Estate [Line Items]
Number of properties acquired | property								1
Payments to acquire real estate								$ 27,000,000
Medical office | Indiana, Missouri, Illinois
Real Estate [Line Items]
Number of properties acquired | property							7
Payments to acquire real estate							$ 169,000,000
Medical office | T X
Real Estate [Line Items]
Number of properties acquired | property					1
Payments to acquire real estate					$ 34,000,000
Life science
Real Estate [Line Items]
Number of properties acquired | asset												3
Life science | Massachusetts
Real Estate [Line Items]
Number of properties acquired | property					3
Payments to acquire real estate					$ 610,000,000				$ 320,000,000
Land parcel | Mbk Jv
Real Estate [Line Items]
Number of properties acquired | property						1

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Real Estate Transactions - Development Activities (Details) - USD ($) $ / shares in Units, $ in Thousands	1 Months Ended	2 Months Ended	3 Months Ended		6 Months Ended
	Mar. 31, 2021	Feb. 28, 2021	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Real Estate [Line Items]
Development and redevelopment projects, amount increase					$ 41,000
Development commitments			$ 347,000		347,000
Depreciation and amortization of real estate, in-place lease, and other intangibles			171,459	$ 139,691	328,997	$ 264,803
Decrease to income (loss) from continuing operations			$ (168,065)	$ (60,341)	$ (47,480)	$ (207,473)
Continuing operations basic earnings per share (in dollars per share)			$ (0.30)	$ (0.10)	$ (0.07)	$ (0.38)
Continuing operations diluted earnings per share (in dollars per share)			$ (0.30)	$ (0.10)	$ (0.07)	$ (0.38)
Life science
Real Estate [Line Items]
Weighted average remaining useful life	6 years	15 years
Depreciation and amortization of real estate, in-place lease, and other intangibles			$ 11,000		$ 15,000
Decrease to income (loss) from continuing operations			$ 11,000		$ 15,000
Continuing operations basic earnings per share (in dollars per share)			$ 0.02		$ 0.03
Continuing operations diluted earnings per share (in dollars per share)			$ 0.02		$ 0.03

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Dispositions of Real Estate and Discontinued Operations - Dispositions of Real Estate (Details)		1 Months Ended							3 Months Ended			6 Months Ended		12 Months Ended
	Jan. 31, 2020 property	Jun. 30, 2021 USD ($) property	May 31, 2021 USD ($) property	Apr. 30, 2021 USD ($) property	Mar. 31, 2021 USD ($) property	Feb. 28, 2021 USD ($) property	Jan. 31, 2021 USD ($) property	Dec. 31, 2020 USD ($) property	Jun. 30, 2021 USD ($) property	Mar. 31, 2021 USD ($) property	Jun. 30, 2020 USD ($) property	Jun. 30, 2021 USD ($) property	Jun. 30, 2020 USD ($) property	Dec. 31, 2020 USD ($) property
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Net cash provided by financing activities												$ (2,009,272,000)	$ 867,584,000
Gain on sales of real estate, net									$ 175,238,000		$ 81,284,000	175,238,000	$ 83,353,000
Repayments of secured debt								$ 6,000,000
Number of properties disposed | property													18
Carrying value of mortgages assumed by buyer in real estate dispositions												$ 106,632,000	$ 0
Number of loans sold | property		2						3	2			2		3
Mortgage Debt
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Number of assets classified as discontinued operations | property			6	2	2			1		2				1
Repayments of secured debt				$ 64,000,000	$ 39,000,000
Disposal Group, Disposed of by Means Other than Sale, Not Discontinued Operations, Abandonment
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Gain on sales of real estate, net									$ 10,000,000		83,000,000		247,000,000	$ 283,000,000
Discontinued Operations
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Gain on sales of real estate, net									7,000,000		2,000,000		164,000,000	$ 193,000,000
Brookedale MTCA
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Gain on sales of real estate, net							$ 164,000,000
Number of properties disposed | property	18													18
Sunrise Senior Housing Portfolio | SHOP
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Net cash provided by financing activities							410,000,000
Capital expenditure funding, amount committed		$ 56,000,000					92,000,000
Capital expenditure funding, amount funded												$ 0
Oakmont SHOP Portfolio
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Carrying value of mortgages assumed by buyer in real estate dispositions				$ 107,000,000
Oakmont SHOP Portfolio | Mortgage Debt
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Number of properties disposed | property				4
Senior housing triple-net
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Number of assets to be sold | property														21
Proceeds from sale of buildings									12,000,000				385,000,000	$ 428,000,000
Senior housing triple-net | Brookdale Triple Net Portfolio
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Proceeds from sale of buildings							510,000,000
Gain on sales of real estate, net							169,000,000
Senior housing triple-net | HRA Triple Net Portfolio
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Proceeds from sale of buildings						$ 132,000,000
Gain on sales of real estate, net						$ 33,000,000
Senior housing triple-net | Aegis NNN Portfolio
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Proceeds from sale of buildings								$ 358,000,000
Gain on sales of real estate, net								$ 228,000,000
SHOP
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Proceeds from sale of buildings							230,000,000		$ 44,000,000		$ 28,000,000		$ 64,000,000	190,000,000
Net cash provided by financing activities							150,000,000
Gain on sales of real estate, net							$ 59,000,000			$ (16,000,000)		$ 7,000,000
SHOP | Oakmont SHOP Portfolio
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Proceeds from sale of buildings				$ 564,000,000
Gain on sales of real estate, net				80,000,000
SHOP | Discovery SHOP Portfolio
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Proceeds from sale of buildings				334,000,000
Gain on sales of real estate, net				9,000,000
Proceeds from sale of loans and preferred equity method investments				21,000,000
SHOP | Sonata SHOP Portfolio
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Proceeds from sale of buildings				64,000,000
Gain on sales of real estate, net				$ 3,000,000
SHOP | Atria SHOP Portfolio
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Number of assets to be sold | property								12
Proceeds from sale of buildings								$ 312,000,000
Gain on sales of real estate, net								$ 39,000,000
Medical office
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Proceeds from sale of buildings														136,000,000
MOB Land Parcels
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Proceeds from sale of buildings														$ 3,000,000
SHOP
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Number of assets to be sold | property							16		6		2	1	9	23
Proceeds from sale of buildings												$ 5,000,000
SHOP | Sunrise Senior Housing Portfolio
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Number of assets to be sold | property		2					32
Proceeds from sale of buildings							$ 664,000,000
Net cash provided by financing activities							$ 410,000,000
Gain on sales of real estate, net		$ (7,000,000)
SHOP | Oakmont SHOP Portfolio
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Number of assets to be sold | property				12
SHOP | Discovery SHOP Portfolio
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Number of assets to be sold | property				10
Gain on sales of real estate, net				$ 0
Number of preferred equity method investments sold | property				2
SHOP | Discovery SHOP Portfolio | Secured Loans
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Number of loans sold | property				2
SHOP | Sonata SHOP Portfolio
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Number of assets to be sold | property				5
SHOP | SLC SHOP Portfolio
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Number of assets to be sold | property			7
Repayments of secured debt			$ 70,000,000
SHOP | SLC SHOP Portfolio | Definitive Agreement Four
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Proceeds from sale of buildings			113,000,000
Gain on sales of real estate, net			$ 1,000,000
SHOP | Atria SHOP Portfolio
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Number of assets to be sold | property								4
Net cash provided by financing activities								$ 61,000,000
Senior housing triple-net
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Number of assets to be sold | property									3				18
Senior housing triple-net | Sunrise Senior Housing Portfolio
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Number of assets to be sold | property		2
Proceeds from sale of buildings		$ 80,000,000
Gain on sales of real estate, net		$ 22,000,000
Senior housing triple-net | Brookdale Triple Net Portfolio
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Number of assets to be sold | property							24
Senior housing triple-net | HRA Triple Net Portfolio
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Number of assets to be sold | property						8
Senior housing triple-net | Aegis NNN Portfolio
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Number of assets to be sold | property								10
Medical Office, Hospital
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Number of assets to be sold | property			1
Proceeds from sale of buildings			$ 226,000,000
Gain on sales of real estate, net			$ 172,000,000
Medical office
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Number of assets to be sold | property									4		3		3	11
Proceeds from sale of buildings									$ 21,000,000		$ 106,000,000		$ 106,000,000
Medical office | San Diego
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Number of assets to be sold | property														3
MOB Land Parcels
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Number of assets to be sold | property														2
Other Non-reportable Segments
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Number of assets to be sold | property														1
Proceeds from sale of buildings														$ 1,000,000

XML

Dispositions of Real Estate and Discontinued Operations - Assets and Liabilities for Discontinued Operations (Details) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021 USD ($) property	Jun. 30, 2020 USD ($)	Jun. 30, 2021 USD ($) property loan	Jun. 30, 2020 USD ($)	Dec. 31, 2020 USD ($) property	Dec. 31, 2019 USD ($)
Real estate:
Cash and cash equivalents	$ 17,354	$ 58,879	$ 17,354	$ 58,879	$ 53,085	$ 63,834
Restricted cash	974	20,211	974	20,211	17,168	$ 27,040
Intangible assets, net	7,000		7,000		25,000
Total assets of discontinued operations, net	246,807		246,807		2,626,306
LIABILITIES
Total liabilities of discontinued operations, net(2)	65,272		65,272		415,737
Allowance for doubtful accounts receivable	4,951		4,951		5,873
Right-of-use asset	215,303		215,303		192,349
Financing receivable, after allowance for credit loss	429,076		429,076		195,375
Deferred revenue	777,687		777,687		774,316
Mortgage Debt
LIABILITIES
Debt instrument, periodic payment	1,000	1,000	3,000	2,000
Held-for-sale
Real estate:
Buildings and improvements	106,495		106,495		2,553,254
Development costs and construction in progress	11,255		11,255		21,509
Land	24,215		24,215		355,803
Accumulated depreciation and amortization	(42,999)		(42,999)		(615,708)
Net real estate	98,966		98,966		2,314,858
Investments in and advances to unconsolidated joint ventures	0		0		5,842
Accounts receivable, net of allowance of $4,951 and $5,873	10,928		10,928		20,500
Cash and cash equivalents	17,354		17,354		53,085
Restricted cash	974		974		17,168
Intangible assets, net	6,596		6,596		24,541
Right-of-use asset, net	104		104		4,109
Other assets, net	29,908		29,908		103,965
Total assets of discontinued operations, net	164,830		164,830		2,544,068
Assets held for sale, net	81,977		81,977		82,238
Assets held for sale and discontinued operations, net	246,807		246,807		2,626,306
LIABILITIES
Mortgage debt(4)	37,069		37,069		318,876
Lease liability	104		104		3,189
Accounts payable, accrued liabilities, and other liabilities	26,564		26,564		79,411
Deferred revenue	797		797		11,442
Total liabilities of discontinued operations, net(2)	64,534		64,534		412,918
Liabilities related to assets held for sale, net	738		738		2,819
Liabilities related to assets held for sale and discontinued operations, net	65,272		65,272		415,737
Goodwill	22,000		22,000		29,000
Net real estate assets	26,000		26,000		73,000
Right-of-use asset	3,000		$ 3,000
Number of loans receivable | loan			2
Financing receivable, after allowance for credit loss	$ 53,000		$ 53,000
Deferred revenue					$ 2,000
Held-for-sale | Senior housing triple-net
LIABILITIES
Number of properties classified as held for sale | property	4		4		41
Held-for-sale | SHOP
LIABILITIES
Number of properties classified as held for sale | property	8		8		97
Held-for-sale | Senior Housing Operating Portfolio Joint Venture
LIABILITIES
Number of properties classified as held for sale | property					1
Held-for-sale | Medical office
LIABILITIES
Number of properties classified as held for sale | property	4		4		6
Discontinued Operations | Mortgage Debt
LIABILITIES
Debt instrument, periodic payment	$ 241,000	$ 1,000	$ 281,000	$ 6,000

XML

Dispositions of Real Estate and Discontinued Operations - Schedule of Results of Discontinued Operations (Details) - Held-for-sale - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Rental and related revenues	$ 1,613	$ 24,110	$ 6,841	$ 56,481
Resident fees and services	30,273	155,771	103,270	327,496
Total revenues	31,886	179,881	110,111	383,977
Interest expense	1,177	2,727	3,853	5,412
Depreciation and amortization	0	38,797	0	102,961
Operating	33,647	138,033	105,165	276,669
Transaction costs	0	254	76	539
Impairments and loan loss reserves (recoveries), net	10,995	17,213	10,995	45,229
Total costs and expenses	45,819	197,024	120,089	430,810
Gain (loss) on sales of real estate, net	122,238	1,579	381,900	164,379
Other income (expense), net	128	2,171	6,012	2,126
Total other income (expense), net	122,366	3,750	387,912	166,505
Income (loss) before income taxes and equity income (loss) from unconsolidated joint ventures	108,433	(13,393)	377,934	119,672
Income tax benefit (expense)	302	7,452	1,124	10,628
Equity income (loss) from unconsolidated joint ventures	5,225	649	4,910	(184)
Income (loss) from discontinued operations	$ 113,960	$ (5,292)	$ 383,968	$ 130,116

XML

Dispositions of Real Estate and Discontinued Operations - Dispositions of Real Estate (Details) $ / item in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021 USD ($) property	Jun. 30, 2020 USD ($) property	Jun. 30, 2021 USD ($) property	Jun. 30, 2020 USD ($) $ / item property	Dec. 31, 2020 USD ($)
Real Estate [Line Items]
Impairment of real estate		$ 19,000,000		$ 50,000,000
Deferred tax assets, valuation allowance	$ 34,000,000		$ 34,000,000		$ 33,000,000
Minimum
Real Estate [Line Items]
Impairment calculation, price per unit | $ / item				35
Maximum
Real Estate [Line Items]
Impairment calculation, price per unit | $ / item				238
Weighted Average
Real Estate [Line Items]
Impairment calculation, price per unit | $ / item				90
Discontinued Operations
Real Estate [Line Items]
Impairment of real estate		17,000,000		$ 45,000,000
Impairments 2021
Real Estate [Line Items]
Real estate investment property, aggregate carrying value before impairment	20,000,000		20,000,000
Real estate held-for-sale	16,000,000		16,000,000
Impairments 2020, Group One
Real Estate [Line Items]
Real estate investment property, aggregate carrying value before impairment		108,000,000		108,000,000
Real estate held-for-sale		89,000,000		89,000,000
Impairments 2020, Group Two
Real Estate [Line Items]
Real estate investment property, aggregate carrying value before impairment		231,000,000		231,000,000
Real estate held-for-sale		$ 181,000,000		$ 181,000,000
SHOP
Real Estate [Line Items]
Impairment of real estate	$ 4,000,000		$ 4,000,000
Number of real estate properties impaired | property	1	12	1	20
Senior housing triple-net
Real Estate [Line Items]
Number of real estate properties impaired | property		2		4
Goodwill, impairment loss	$ 0		$ 0
Senior housing triple-net | Held-for-sale
Real Estate [Line Items]
Goodwill, impairment loss	$ 7,000,000		$ 7,000,000
Medical office
Real Estate [Line Items]
Number of real estate properties impaired | property		1		2
Undeveloped MOB land parcel
Real Estate [Line Items]
Number of real estate properties impaired | property		1		1

XML

Leases - Lease Income (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Interest and Other Income [Abstract]
Fixed income from operating leases	$ 268,290	$ 231,569	$ 531,246	$ 457,795
Variable income from operating leases	72,352	56,684	137,368	112,775
Interest income from direct financing leases	$ 2,180	$ 2,150	$ 4,343	$ 5,419

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Leases - Direct Financing Leases (Details) $ in Thousands	Jun. 30, 2021 USD ($) property	Dec. 31, 2020 USD ($)
Lessor, Lease, Description [Line Items]
Present value of minimum lease payments receivable	$ 5,579	$ 9,804
Present value of estimated residual value	44,706	44,706
Less deferred selling profits	(5,579)	(9,804)
Net investment in direct financing leases	$ 44,706	$ 44,706
Properties subject to direct financing leases | property	1
Medical office
Lessor, Lease, Description [Line Items]
Net investment in direct financing leases	$ 45,000

XML

Leases - Direct Financing Lease Sale and Conversion (Details) $ in Millions	3 Months Ended
	Mar. 31, 2020 USD ($)
Leases [Abstract]
Proceeds from sale of lease receivable	$ 82
Gain on sale of direct financing lease	$ 42

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Leases - Rent Deferrals (Details) - USD ($)	3 Months Ended	6 Months Ended
	Jun. 30, 2021	Jun. 30, 2021	Jun. 30, 2020
Lessor, Lease, Description [Line Items]
Rent deferred during the period	$ 0	$ 0
Medical Office
Lessor, Lease, Description [Line Items]
Rent deferred during the period			$ 6,000,000
Life Science
Lessor, Lease, Description [Line Items]
Rent deferred during the period			$ 1,000,000

XML

Loans Receivable - Schedule of Loans Receivable (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020	Dec. 31, 2019
Financing Receivable, Allowance for Credit Loss [Line Items]
Unamortized discounts, fees, and costs	$ (6,398)	$ (222)
Reserve for loan losses	(4,198)	(10,280)	$ 0
Loans receivable, net	429,076	195,375
Remaining loans receivable commitments	61,000	11,000
Secured loans
Financing Receivable, Allowance for Credit Loss [Line Items]
Financing receivable, gross	416,729	161,530
Mezzanine and other
Financing Receivable, Allowance for Credit Loss [Line Items]
Financing receivable, gross	$ 22,943	$ 44,347

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Loans Receivable - Narrative (Details)	1 Months Ended							3 Months Ended				6 Months Ended		12 Months Ended
	Jul. 31, 2021 USD ($)	Jun. 30, 2021 USD ($) property	May 31, 2021 USD ($) property	Apr. 30, 2021 USD ($) property	Jan. 31, 2021 USD ($) property	Dec. 31, 2020 USD ($) property	Nov. 30, 2020 USD ($) property	Jun. 30, 2021 USD ($) property	Mar. 31, 2021 USD ($)	Jun. 30, 2020 USD ($) property	Mar. 31, 2020 USD ($)	Jun. 30, 2021 USD ($) property	Jun. 30, 2020 USD ($) property	Dec. 31, 2020 USD ($) property	Jan. 31, 2020 USD ($) property	Dec. 31, 2019 USD ($)	Oct. 31, 2019 property
Loans Receivable:
Net cash provided by financing activities												$ (2,009,272,000)	$ 867,584,000
Reduction of gain on sale of real estate								$ (175,238,000)		$ (81,284,000)		(175,238,000)	(83,353,000)
Gain (loss) on sales of real estate, net								$ 175,238,000		81,284,000		$ 175,238,000	83,353,000
Number of loans held for sale | property		2						2				2
Financing receivable, after allowance for credit loss		$ 429,076,000				$ 195,375,000		$ 429,076,000				$ 429,076,000		$ 195,375,000
Reserves for loans receivable		4,198,000				10,280,000		4,198,000				4,198,000		10,280,000		$ 0
Loss on sale of financing receivable											$ (42,000,000)
Property count | property															15
Credit loss reserve on unfunded loan commitments		200,000				1,000,000		200,000				200,000		1,000,000
Credit loss expenses								1,000,000		$ 5,000,000		4,000,000	$ 13,000,000
Sunrise Senior Housing Portfolio | SHOP
Loans Receivable:
Net cash provided by financing activities					$ 410,000,000
Capital expenditure funding, amount committed		56,000,000			$ 92,000,000
Capital expenditure funding, cost of capital, percent committed					65.00%
Capital expenditure funding, amount funded												0
Secured Loans
Loans Receivable:
Reserves for loans receivable		4,183,000				3,152,000		4,183,000				4,183,000		3,152,000		$ 0
Secured mortgage loans
Loans Receivable:
Financing receivable, gross		$ 416,729,000				$ 161,530,000		$ 416,729,000				$ 416,729,000		$ 161,530,000
SHOP
Loans Receivable:
Number of assets to be sold | property					16			6		2		1	9	23
Proceeds from sale of buildings												$ 5,000,000
SHOP | Sunrise Senior Housing Portfolio
Loans Receivable:
Number of assets to be sold | property		2			32
Proceeds from sale of buildings					$ 664,000,000
Net cash provided by financing activities					410,000,000
Proceeds from the collection of loans receivable		$ 246,000,000
Reduction of gain on sale of real estate		7,000,000
Gain (loss) on sales of real estate, net		$ (7,000,000)
SHOP | Atria SHOP Portfolio
Loans Receivable:
Number of assets to be sold | property						4
Net cash provided by financing activities						$ 61,000,000
SHOP | Discovery SHOP Portfolio
Loans Receivable:
Number of assets to be sold | property				10
Reduction of gain on sale of real estate				$ 0
Gain (loss) on sales of real estate, net				$ 0
SHOP | Atria SHOP Portfolio
Loans Receivable:
Number of assets to be sold | property						4
Proceeds from sale of buildings						$ 94,000,000
Net cash provided by financing activities						$ 61,000,000
SHOP | Secured Loans | Discovery SHOP Portfolio
Loans Receivable:
Number of loans held for sale | property				2
Loss on sale of financing receivable				$ 0
Other non-reportable
Loans Receivable:
Number of assets to be sold | property														1
Proceeds from sale of buildings														$ 1,000,000
Secured Loans
Loans Receivable:
Number of loans held for sale | property							1
Financing receivable, gross							$ 10,000,000
Loss on sale of financing receivable							2,000,000
Proceeds from sale of receivables							$ 8,000,000
Secured mortgage loans
Loans Receivable:
Number of loans held for sale | property		2				1		2				2		1
Financing receivable, gross		$ 64,000,000				$ 115,000,000		$ 64,000,000				$ 64,000,000		$ 115,000,000
Decrease in financing receivable												11,000,000
Financing receivable, after allowance for credit loss		53,000,000						53,000,000				53,000,000
Reserves for loans receivable		8,000,000						8,000,000				8,000,000
Loss on sale of financing receivable						6,000,000		3,000,000				3,000,000
Proceeds from sale of receivables						$ 109,000,000
Principal repayments received			$ 10,000,000
Number of loans receivable | property			1
Secured mortgage loans | Subsequent Event
Loans Receivable:
Principal repayments received	$ 8,000,000
Brookedale MTCA
Loans Receivable:
Reduction of gain on sale of real estate					(164,000,000)
Gain (loss) on sales of real estate, net					164,000,000
Lessor Asset Under Operating Lease | Other non-reportable
Loans Receivable:
Property count | property						1								1
Lessor Asset Under Operating Lease | Brookedale MTCA | Other non-reportable
Loans Receivable:
Property count | property															13
SHOP
Loans Receivable:
Proceeds from sale of buildings					230,000,000			44,000,000		$ 28,000,000			$ 64,000,000	$ 190,000,000
Net cash provided by financing activities					150,000,000
Reduction of gain on sale of real estate					(59,000,000)				$ 16,000,000			(7,000,000)
Loans receivable, market rate									5.25%
Non-cash interest income								9,000,000		$ 0		10,000,000	$ 0
Gain (loss) on sales of real estate, net					$ 59,000,000				$ (16,000,000)			7,000,000
SHOP | Minimum
Loans Receivable:
Loans receivable, stated interest rate									3.50%
Interest income, amortization period									1 year
SHOP | Maximum
Loans Receivable:
Loans receivable, stated interest rate									4.50%
Interest income, amortization period									3 years
SHOP | Atria SHOP Portfolio
Loans Receivable:
Number of assets to be sold | property						12
Proceeds from sale of buildings						$ 312,000,000
Reduction of gain on sale of real estate						(39,000,000)
Gain (loss) on sales of real estate, net						39,000,000
SHOP | Discovery SHOP Portfolio
Loans Receivable:
Proceeds from sale of buildings				334,000,000
Reduction of gain on sale of real estate				(9,000,000)
Gain (loss) on sales of real estate, net				$ 9,000,000
CCRC JV | Brookedale MTCA
Loans Receivable:
Property count | property															15
CCRC JV | Lessor Asset Under Operating Lease | Other non-reportable
Loans Receivable:
Property count | property																	15
CCRC JV | Lessor Asset Under Operating Lease | Brookedale MTCA | Other non-reportable
Loans Receivable:
Financing receivable, after allowance for credit loss		$ 22,000,000				$ 23,000,000		$ 22,000,000				$ 22,000,000		$ 23,000,000	$ 30,000,000
Property count | property															13

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Loans Receivable - Schedule of Loans Receivable by Origination Year (Details) $ in Thousands	Jun. 30, 2021 USD ($)
Secured loans
Loans Receivable:
2021	$ 307,375
2020	89,315
2019	9,458
2018	0
2017	0
Prior	0
Total	406,148
Mezzanine and other
Loans Receivable:
2021	19,324
2020	3,492
2019	112
2018	0
2017	0
Prior	0
Total	22,928
Performing loans | Secured loans
Loans Receivable:
2021	307,375
2020	89,315
2019	9,458
2018	0
2017	0
Prior	0
Total	406,148
Performing loans | Mezzanine and other
Loans Receivable:
2021	19,324
2020	3,492
2019	112
2018	0
2017	0
Prior	0
Total	22,928
Watch list loans | Secured loans
Loans Receivable:
2021	0
2020	0
2019	0
2018	0
2017	0
Prior	0
Total	0
Watch list loans | Mezzanine and other
Loans Receivable:
2021	0
2020	0
2019	0
2018	0
2017	0
Prior	0
Total	0
Workout loans | Secured loans
Loans Receivable:
2021	0
2020	0
2019	0
2018	0
2017	0
Prior	0
Total	0
Workout loans | Mezzanine and other
Loans Receivable:
2021	0
2020	0
2019	0
2018	0
2017	0
Prior	0
Total	$ 0

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Loans Receivable - Schedule of Reserve for Loan Losses (Details) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2021 USD ($) property	Dec. 31, 2020 USD ($) property
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Reserve for loan losses, beginning of period	$ 10,280	$ 0
Cumulative-effect of adopting of ASU 2016-13 to beginning retained earnings	0	1,420
Expected loan losses related to loans sold	(675)	(8,394)
Expected loan losses related to loans transferred to held for sale	(7,838)	0
Provision for expected loan losses	2,431	17,254
Reserve for loan losses, end of period	$ 4,198	$ 10,280
Number of loans sold | property	2	3
Number of loans held for sale | property	2
Secured Loans
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Reserve for loan losses, beginning of period	$ 3,152	$ 0
Cumulative-effect of adopting of ASU 2016-13 to beginning retained earnings	0	513
Expected loan losses related to loans sold	0	(259)
Expected loan losses related to loans transferred to held for sale	(498)	0
Provision for expected loan losses	1,529	2,898
Reserve for loan losses, end of period	4,183	3,152
Mezzanine and Other
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Reserve for loan losses, beginning of period	7,128	0
Cumulative-effect of adopting of ASU 2016-13 to beginning retained earnings	0	907
Expected loan losses related to loans sold	(675)	(8,135)
Expected loan losses related to loans transferred to held for sale	(7,340)	0
Provision for expected loan losses	902	14,356
Reserve for loan losses, end of period	$ 15	$ 7,128

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Investments in and Advances to Unconsolidated Joint Ventures (Details) $ in Thousands	1 Months Ended			3 Months Ended		6 Months Ended		12 Months Ended
	May 31, 2021 USD ($) property	Apr. 30, 2021 USD ($) property	Jan. 31, 2021 property	Jun. 30, 2021 USD ($) property joint_venture	Jun. 30, 2020 property	Jun. 30, 2021 USD ($) property joint_venture	Jun. 30, 2020 property	Dec. 31, 2020 USD ($) property joint_venture	Jan. 31, 2020 property
Schedule of Equity Method Investments [Line Items]
Property count | property									15
Investments in and advances to unconsolidated joint ventures | $				$ 388,415		$ 388,415		$ 402,871
Discovery Naples JV
Schedule of Equity Method Investments [Line Items]
Investment ownership percentage								41.00%
Discovery Sarasota JV
Schedule of Equity Method Investments [Line Items]
Investment ownership percentage								47.00%
SWF SH JV
Schedule of Equity Method Investments [Line Items]
Property count | property				19		19
Investment ownership percentage				54.00%		54.00%
Equity method investments | $				$ 352,368		$ 352,368		$ 357,581
Life science joint ventures
Schedule of Equity Method Investments [Line Items]
Property count | property				1		1
Investment ownership percentage				49.00%		49.00%
Equity method investments | $				$ 24,505		$ 24,505		24,879
Medical Office JVs
Schedule of Equity Method Investments [Line Items]
Property count | property				3		3
Equity method investments | $				$ 9,501		$ 9,501		$ 9,673
Number of unconsolidated joint ventures (in joint ventures) | joint_venture				3		3
Medical Office JVs | Minimum
Schedule of Equity Method Investments [Line Items]
Investment ownership percentage				20.00%		20.00%
Medical Office JVs | Maximum
Schedule of Equity Method Investments [Line Items]
Investment ownership percentage				67.00%		67.00%
HCP Ventures IV, LLC
Schedule of Equity Method Investments [Line Items]
Investment ownership percentage				20.00%		20.00%
HCP Ventures III, LLC
Schedule of Equity Method Investments [Line Items]
Investment ownership percentage				30.00%		30.00%
Suburban Properties, LLC
Schedule of Equity Method Investments [Line Items]
Investment ownership percentage				67.00%		67.00%
CCRC JV
Schedule of Equity Method Investments [Line Items]
Property count | property				0		0
Investment ownership percentage	49.00%			0.00%		0.00%		49.00%	49.00%
Equity method investments | $				$ 2,041		$ 2,041		$ 1,581
Proceeds from sale of buildings | $	$ 19,000
Other JVs
Schedule of Equity Method Investments [Line Items]
Property count | property				0		0
Investment ownership percentage				0.00%		0.00%
Equity method investments | $				$ 0		$ 0		$ 9,157
Otay Ranch
Schedule of Equity Method Investments [Line Items]
Proceeds from sale of equity method investments | $		$ 32,000
Otay Ranch | Discontinued Operations
Schedule of Equity Method Investments [Line Items]
Gain on sale of unconsolidated joint venture | $		$ 5,000
Otay Ranch | Equity Method Investment, Nonconsolidated Investee or Group of Investees
Schedule of Equity Method Investments [Line Items]
Investment ownership percentage								90.00%
Equity method investments | $								$ 6,000
Discovery Naples JV and Discovery Sarasota JV
Schedule of Equity Method Investments [Line Items]
Number of unconsolidated joint ventures (in joint ventures) | joint_venture								2
Brookedale MTCA | CCRC JV
Schedule of Equity Method Investments [Line Items]
Number of assets to be sold | property	2
Proceeds from sale of buildings | $	$ 38,000
Other non-reportable
Schedule of Equity Method Investments [Line Items]
Number of assets to be sold | property								1
Proceeds from sale of buildings | $								$ 1,000
Other non-reportable | Lessor Asset Under Operating Lease
Schedule of Equity Method Investments [Line Items]
Property count | property								1
Other non-reportable | Brookedale MTCA | Lessor Asset Under Operating Lease
Schedule of Equity Method Investments [Line Items]
Property count | property									13
SHOP
Schedule of Equity Method Investments [Line Items]
Number of assets to be sold | property			16	6	2	1	9	23
Proceeds from sale of buildings | $						$ 5,000
SHOP | Discovery SHOP Portfolio
Schedule of Equity Method Investments [Line Items]
Number of assets to be sold | property		10
Number of preferred equity method investments sold | property		2

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Intangibles - Intangibles Lease Assets (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2021	Dec. 31, 2020
Intangibles [Abstract]
Gross intangible lease assets	$ 794,423	$ 761,328
Accumulated depreciation and amortization	(282,811)	(241,411)
Intangible assets, net	$ 511,612	$ 519,917
Weighted average remaining amortization period in years	6 years	5 years

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Intangibles - Intangibles Lease Liabilities (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2021	Dec. 31, 2020
Intangibles [Abstract]
Gross intangible lease liabilities	$ 197,623	$ 194,565
Accumulated depreciation and amortization	(58,507)	(50,366)
Intangible liabilities, net	$ 139,116	$ 144,199
Weighted average remaining amortization period in years	8 years	8 years

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Intangibles - Narrative (Details) - USD ($) $ in Millions	6 Months Ended	12 Months Ended
	Jun. 30, 2021	Dec. 31, 2020
Finite-Lived Intangible Assets [Line Items]
Intangible assets, net	$ 7.0	$ 25.0
Weighted average remaining amortization period in years	6 years	5 years
Weighted average remaining amortization period in years	8 years	8 years
Brookedale MTCA
Finite-Lived Intangible Assets [Line Items]
Intangible assets acquired	$ 44.0	$ 352.0
Intangible liabilities acquired	$ 6.0	$ 83.0
Weighted average remaining amortization period in years	9 years	7 years
Weighted average remaining amortization period in years	7 years	9 years

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Debt - Bank Line of Credit and Term Loans (Details)		1 Months Ended	6 Months Ended
	May 23, 2019 USD ($) renewal_option	Jul. 31, 2021 USD ($)	Jun. 30, 2021 USD ($)	Dec. 31, 2020 USD ($)
Debt Instrument
Balance outstanding			$ 720,000,000	$ 129,590,000
Weighted-average interest rate (as a percent)			0.24%	0.30%
Line of Credit and Term Loan
Debt Instrument
Debt instrument, covenant debt to assets (as a percent)			60.00%
Debt instrument, covenant secured debt to assets (as a percent)			40.00%
Debt instrument, covenant unsecured debt to unencumbered assets (as a percent)			60.00%
Debt instrument, covenant minimum fixed charge coverage ratio			1.5
Debt instrument, covenant net worth			$ 7,000,000,000.0
Bank Line of Credit | Revolving Credit Facility
Debt Instrument
Line of credit facility, maximum borrowing capacity	$ 2,500,000,000
Number of extensions | renewal_option	2
Length of debt instrument extension period	6 months
Debt instrument, facility fee (as a percent)			0.15%
Balance outstanding			$ 0	$ 0
Line of credit facility additional aggregate amount, maximum			$ 750,000,000
Bank Line of Credit | Revolving Credit Facility | LIBOR
Debt Instrument
Debt instrument, basis spread on variable rate (as a percent)			0.83%
Bank Line of Credit | 2019 Term Loan
Debt Instrument
Weighted-average interest rate (as a percent)			1.09%
Amount			$ 250,000,000
Bank Line of Credit | 2019 Term Loan | Subsequent Event
Debt Instrument
Repayment of 2019 term loan		$ 250,000,000
Bank Line of Credit | 2019 Term Loan | LIBOR
Debt Instrument
Debt instrument, basis spread on variable rate (as a percent)			0.90%

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Debt - Commercial Paper Program (Details) - USD ($)	6 Months Ended	12 Months Ended
	Jun. 30, 2021	Dec. 31, 2020	Apr. 30, 2021	Mar. 31, 2021
Debt Instrument
Debt instrument, term	1 month	1 month
Weighted-average interest rate (as a percent)	0.24%	0.30%
Commercial Paper Program
Debt Instrument
Maximum outstanding amount capacity			$ 1,250,000,000	$ 1,000,000,000.0
Borrowings	$ 720,000,000	$ 130,000,000

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Debt - Senior Unsecured Notes (Details) - USD ($)					3 Months Ended		6 Months Ended
	May 04, 2021	Feb. 26, 2021	Jul. 09, 2020	Jun. 24, 2020	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020	Jul. 12, 2021	May 19, 2021	Jan. 28, 2021	Dec. 31, 2020	Jun. 23, 2020
Debt Instrument
Principal balance on debt					$ 5,076,024,000		$ 5,076,024,000
Loss on extinguishment of debt					60,865,000	$ 25,824,000	225,157,000	$ 24,991,000
Senior unsecured note issuances					3,710,972,000		3,710,972,000					$ 5,697,586,000
Senior Unsecured Note
Debt Instrument
Principal balance on debt					3,750,000,000		3,750,000,000
Senior unsecured note issuances					$ 0		$ 0
Senior Unsecured Note | Unsecured Note 3.400 Percent
Debt Instrument
Amount										$ 251,806,000
Coupon Rate	3.40%									3.40%
Senior Unsecured Note | Unsecured Note 4.000 Percent
Debt Instrument
Amount										$ 298,194,000
Coupon Rate	4.00%									4.00%
Senior Unsecured Note | Unsecured Note 4.250 Percent
Debt Instrument
Amount		$ 188,000,000		$ 250,000,000							$ 112,000,000
Coupon Rate		4.25%		4.25%							4.25%
Loss on extinguishment of debt				$ 26,000,000
Senior Unsecured Note | Unsecured Note 4.200 Percent
Debt Instrument
Amount		$ 149,000,000									$ 201,000,000
Coupon Rate		4.20%									4.20%
Senior Unsecured Note | Unsecured Note 3.880 Percent
Debt Instrument
Amount		$ 331,000,000									$ 469,000,000
Coupon Rate		3.88%									3.88%
Senior Unsecured Note | Senior Notes Due 2026
Debt Instrument
Loss on extinguishment of debt	$ 61,000,000
Senior Unsecured Note | Senior Notes Due 2023 and 2024
Debt Instrument
Loss on extinguishment of debt		$ 164,000,000
Senior Unsecured Note | 2031 Notes
Debt Instrument
Amount													$ 600,000,000
Coupon Rate													2.88%
Senior Unsecured Note | Unsecured note 3.150 percent
Debt Instrument
Amount			$ 300,000,000
Coupon Rate			3.15%
Loss on extinguishment of debt			$ 18,000,000
Senior Unsecured Note | Unsecured note 3.150 percent | Subsequent Event
Debt Instrument
Amount									$ 450,000,000
Coupon Rate									1.35%

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Debt - Mortgage Debt (Details)	3 Months Ended		6 Months Ended
	Jun. 30, 2021 USD ($) facility	Jun. 30, 2020 USD ($)	Jun. 30, 2021 USD ($) facility	Jun. 30, 2020 USD ($)	Apr. 30, 2021 USD ($)	Dec. 31, 2020 USD ($) facility
Debt Instrument
Principal balance on debt	$ 5,076,024,000		$ 5,076,024,000
Weighted-average interest rate (as a percent)	0.24%		0.24%			0.30%
Medical office | Mortgage Debt
Debt Instrument
Amount					$ 142,000,000
Weighted-average interest rate (as a percent)					2.60%
Mortgage Debt
Debt Instrument
Principal balance on debt	$ 356,024,000		$ 356,024,000			$ 217,000,000
Number of healthcare facilities used to secure debt (in facilities) | facility	19		19			6
Debt instrument, collateral, healthcare facilities carrying value	$ 845,000,000		$ 845,000,000			$ 517,000,000
Debt instrument, periodic payment	$ 1,000,000	$ 1,000,000	$ 3,000,000	$ 2,000,000
Weighted-average interest rate (as a percent)	3.28%		3.28%

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Debt - Debt Maturities (Details) - USD ($)	1 Months Ended	6 Months Ended
	Jul. 31, 2021	Jun. 30, 2021	Jul. 12, 2021	Dec. 31, 2020	Jul. 09, 2020
Debt Instrument
2021		$ 10,159,000
2022		4,843,000
2023		809,874,000
2024		253,050,000
2025		803,209,000
Thereafter		3,194,889,000
Total debt before discount, net		5,076,024,000
(Discounts), premium and debt costs, net		(37,648,000)
Long-term debt, net assets held for sale		5,038,376,000
Long-term debt		$ 5,075,445,000
Weighted-average interest rate (as a percent)		0.24%		0.30%
Held-for-sale
Debt Instrument
Debt on assets held for sale and discontinued operations		$ 37,069,000
Bank Line of Credit
Debt Instrument
2021		0
2022		0
2023		0
2024		0
2025		0
Thereafter		0
Total debt before discount, net		0
(Discounts), premium and debt costs, net		0
Long-term debt, net assets held for sale		0
Long-term debt		0
Bank Line of Credit | 2019 Term Loan
Debt Instrument
Amount		$ 250,000,000
Weighted-average interest rate (as a percent)		1.09%
Bank Line of Credit | 2019 Term Loan | Subsequent Event
Debt Instrument
Repayment of 2019 term loan	$ 250,000,000
Bank Line of Credit | Held-for-sale
Debt Instrument
Debt on assets held for sale and discontinued operations		$ 0
Commercial Paper
Debt Instrument
2021		0
2022		0
2023		720,000,000
2024		0
2025		0
Thereafter		0
Total debt before discount, net		720,000,000
(Discounts), premium and debt costs, net		0
Long-term debt, net assets held for sale		720,000,000
Long-term debt		720,000,000
Commercial Paper | Held-for-sale
Debt Instrument
Debt on assets held for sale and discontinued operations		0
Term Loan
Debt Instrument
2021		0
2022		0
2023		0
2024		250,000,000
2025		0
Thereafter		0
Total debt before discount, net		250,000,000
(Discounts), premium and debt costs, net		(697,000)
Long-term debt, net assets held for sale		249,303,000
Long-term debt		249,303,000
Term Loan | Held-for-sale
Debt Instrument
Debt on assets held for sale and discontinued operations		0
Senior Unsecured Note
Debt Instrument
2021		0
2022		0
2023		0
2024		0
2025		800,000,000
Thereafter		2,950,000,000
Total debt before discount, net		3,750,000,000
(Discounts), premium and debt costs, net		(39,028,000)
Long-term debt, net assets held for sale		3,710,972,000
Long-term debt		$ 3,710,972,000
Weighted-average interest rate (as a percent)		3.75%
Weighted-average maturity		8 years
Senior Unsecured Note | Interest Rate 2021 (six months)
Debt Instrument
Interest Rate		0.00%
Senior Unsecured Note | Interest Rate 2022
Debt Instrument
Interest Rate		0.00%
Senior Unsecured Note | Interest Rate 2023
Debt Instrument
Interest Rate		0.00%
Senior Unsecured Note | Interest Rate 2024
Debt Instrument
Interest Rate		0.00%
Senior Unsecured Note | Interest Rate 2025
Debt Instrument
Interest Rate		3.93%
Senior Unsecured Note | Interest Rate Thereafter
Debt Instrument
Interest Rate		3.68%
Senior Unsecured Note | Unsecured note 3.150 percent
Debt Instrument
Amount					$ 300,000,000
Interest Rate					3.15%
Senior Unsecured Note | Unsecured note 3.150 percent | Subsequent Event
Debt Instrument
Amount			$ 450,000,000
Interest Rate			1.35%
Senior Unsecured Note | Held-for-sale
Debt Instrument
Debt on assets held for sale and discontinued operations		$ 0
Senior Unsecured Note | Minimum
Debt Instrument
Interest Rate		3.10%
Senior Unsecured Note | Maximum
Debt Instrument
Interest Rate		6.91%
Mortgage Debt
Debt Instrument
2021		$ 10,159,000
2022		4,843,000
2023		89,874,000
2024		3,050,000
2025		3,209,000
Thereafter		244,889,000
Total debt before discount, net		356,024,000		$ 217,000,000
(Discounts), premium and debt costs, net		2,077,000
Long-term debt, net assets held for sale		358,101,000
Long-term debt		$ 395,170,000
Weighted-average interest rate (as a percent)		3.28%
Weighted-average maturity		4 years
Mortgage Debt | Interest Rate 2021 (six months)
Debt Instrument
Interest Rate		4.86%
Mortgage Debt | Interest Rate 2022
Debt Instrument
Interest Rate		3.80%
Mortgage Debt | Interest Rate 2023
Debt Instrument
Interest Rate		3.80%
Mortgage Debt | Interest Rate 2024
Debt Instrument
Interest Rate		3.80%
Mortgage Debt | Interest Rate 2025
Debt Instrument
Interest Rate		3.80%
Mortgage Debt | Interest Rate Thereafter
Debt Instrument
Interest Rate		3.07%
Mortgage Debt | Held-for-sale
Debt Instrument
Debt on assets held for sale and discontinued operations		$ 37,069,000
Mortgage Debt | Held-for-sale | Debt Maturing In 2027
Debt Instrument
Interest Rate		3.87%
Mortgage Debt | Minimum
Debt Instrument
Interest Rate		2.42%
Mortgage Debt | Maximum
Debt Instrument
Interest Rate		5.91%

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Commitments and Contingencies (Details)	Jun. 30, 2021 property
Indemnification Agreement
Loss Contingencies [Line Items]
Number of properties may be contributed in the agreement	29

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Equity - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands			1 Months Ended		3 Months Ended			6 Months Ended
	Jul. 29, 2021	Apr. 30, 2021	May 31, 2021	Nov. 30, 2019	Jun. 30, 2021	Jun. 30, 2020	Mar. 31, 2020	Jun. 30, 2021	Jun. 30, 2020
Class of Stock [Line Items]
Dividends declared (in dollars per share)					$ 0.30	$ 0.37		$ 0.60	$ 0.74
Dividends paid (in dollars per share)					$ 0.30	$ 0.37		$ 0.60	$ 0.74
Issuance of common stock, net					$ (43)	$ 767	$ 1,060,000	$ 1,044	$ 1,065,389
Subsequent Event
Class of Stock [Line Items]
Dividends declared (in dollars per share)	$ 0.30
2020 ATM Program
Class of Stock [Line Items]
ATM aggregate amount authorized		$ 1,250,000	$ 1,500,000
ATM aggregate amount remaining								$ 1,500,000
At-The-Market Program
Class of Stock [Line Items]
Option indexed to issuers equity, term								1 year
2019 ATM Program
Class of Stock [Line Items]
Maximum shares issuable under forward equity sales agreement (in shares)									2,000,000.0
Forward equity sales agreement, initial net price (in usd per share)									$ 35.23
2019 ATM Program, Settled
Class of Stock [Line Items]
Share settlement (in shares)							16,800,000
Weighted average settlement price (in usd per share)							$ 31.38
Issuance of common stock, net							$ 528,000
Issuance of common stock, net (in shares)							0
Remainder outstanding (in shares)					0	0		0	0
ATM Direct Issuances | Common Stock
Class of Stock [Line Items]
Issuance of common stock, net (in shares)					0	0		0	0
2019 Forward Equity Offering
Class of Stock [Line Items]
Maximum shares issuable under forward equity sales agreement (in shares)				15,600,000
Forward equity sales agreement, initial net price (in usd per share)				$ 34.46
Share settlement (in shares)							15,600,000
Issuance of common stock, net							$ 534,000
Issuance of common stock, net (in shares)								0	0
Weighted average net price (in usd per share)							$ 34.18

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Equity - AOCI (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Accumulated Other Comprehensive Loss
Unrealized gains (losses) on derivatives, net	$ 0	$ (81)
Supplemental Executive Retirement Plan minimum liability	(3,389)	(3,604)
Total accumulated other comprehensive income (loss)	$ (3,389)	$ (3,685)

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Earnings Per Common Share - Narrative (Details) - shares	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Dilutive potential common shares - forward equity agreements (in shares)	0	0	0	808,000
Dilutive potential common shares - DownREIT conversions (in shares)	5,501,000	0	0	0
Common shares attributable to DownREIT conversions, total (in shares)	7,000,000
Down REIT
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Shares of anti-dilutive securities excluded from earnings per share calculation (in shares)		7,000,000	7,000,000	7,000,000

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Earnings Per Common Share - Computation of EPS (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Numerator
Income (loss) from continuing operations	$ 168,065	$ 60,341	$ 47,480	$ 207,473
Noncontrolling interests' share in continuing operations	(3,535)	(3,486)	(6,841)	(6,949)
Income (loss) from continuing operations attributable to Healthpeak Properties, Inc.	164,530	56,855	40,639	200,524
Less: Participating securities' share in continuing operations	(287)	(375)	(2,732)	(1,800)
Income (loss) from continuing operations applicable to common shares	164,243	56,480	37,907	198,724
Income (loss) from discontinued operations	113,960	(5,292)	383,968	130,116
Noncontrolling interests' share in discontinued operations	(2,210)	(57)	(2,539)	(54)
Net income (loss) applicable to common shares	275,993	51,131	419,336	328,786
Add: distributions on dilutive convertible units and other	1,540	0	0	0
Dilutive net income (loss) available to common shares	$ 277,533	$ 51,131	$ 419,336	$ 328,786
Denominator
Basic weighted average shares outstanding (in shares)	538,929,000	538,262,000	538,805,000	522,427,000
Dilutive potential common shares - equity awards (in shares)	264,000	255,000	276,000	263,000
Dilutive potential common shares - forward equity agreements (in shares)	0	0	0	808,000
Dilutive potential common shares - DownREIT conversions (in shares)	5,501,000	0	0	0
Diluted weighted average common shares (in shares)	544,694,000	538,517,000	539,081,000	523,498,000
Basic earnings (loss) per common share
Continuing operations (in dollars per share)	$ 0.30	$ 0.10	$ 0.07	$ 0.38
Discontinued operations (in dollars per share)	0.21	(0.01)	0.71	0.25
Net income (loss) applicable to common shares (in dollars per share)	0.51	0.09	0.78	0.63
Diluted earnings (loss) per common share
Continuing operations (in dollars per share)	0.30	0.10	0.07	0.38
Discontinued operations (in dollars per share)	0.21	(0.01)	0.71	0.25
Net income (loss) applicable to common shares (in dollars per share)	$ 0.51	$ 0.09	$ 0.78	$ 0.63
Outstanding equity awards (in shares)	1,000,000	1,000,000	1,000,000	1,000,000
Forward sales agreements that have been settled (in shares)	0	0	0	32,000,000

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Segment Disclosures - Summary Information for the Reportable Segments (Details) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021 USD ($)	Jun. 30, 2020 USD ($)	Jun. 30, 2021 USD ($)	Jun. 30, 2020 USD ($)	Dec. 31, 2020 property	Jan. 31, 2020 property
Segment Disclosure
Property count | property						15
Tax benefit recognized in conjunction with internal restructuring activities		$ 52,000
Tax benefit recognized from CARES Act		3,600
Segment Reporting Information, Revenue for Reportable Segment [Abstract]
Total revenues	$ 476,238	408,559	$ 931,514	$ 789,613
Government grant income	87	11,871	1,397	11,871
Less: Interest income	(16,108)	(4,230)	(25,121)	(7,918)
Healthpeak’s share of unconsolidated joint venture total revenues	21,277	24,154	44,570	66,690
Healthpeak’s share of unconsolidated joint venture government grant income	583	804	1,009	804
Noncontrolling interests’ share of consolidated joint venture total revenues	(8,900)	(8,404)	(17,891)	(17,096)
Operating expenses	(190,132)	(177,808)	(371,893)	(415,185)
Healthpeak’s share of unconsolidated joint venture operating expenses	(15,404)	(18,783)	(33,463)	(50,373)
Noncontrolling interests’ share of consolidated joint venture operating expenses	2,573	2,525	5,097	5,142
Adjustments to NOI	(13,170)	(3,127)	(26,771)	83,112
Adjusted NOI	257,044	235,561	508,448	466,660
Plus: Adjustments to NOI	13,170	3,127	26,771	(83,112)
Interest income	16,108	4,230	25,121	7,918
Interest expense	(38,681)	(54,823)	(85,524)	(110,514)
Depreciation and amortization	(171,459)	(139,691)	(328,997)	(264,803)
General and administrative	(24,088)	(23,720)	(48,990)	(46,069)
Transaction costs	(619)	(373)	(1,417)	(14,936)
Impairments and loan loss reserves	(931)	(6,837)	(4,173)	(17,944)
Gain (loss) on sales of real estate, net	175,238	81,284	175,238	83,353
Gain (loss) on debt extinguishments	(60,865)	(25,824)	(225,157)	(24,991)
Other income (expense), net	1,734	17,415	3,934	228,068
Less: Government grant income	(87)	(11,871)	(1,397)	(11,871)
Less: Healthpeak’s share of unconsolidated joint venture NOI	(6,456)	(6,175)	(12,116)	(17,121)
Plus: Noncontrolling interests’ share of consolidated joint venture NOI	6,327	5,879	12,794	11,954
Income (loss) before income taxes and equity income (loss) from unconsolidated joint ventures	166,435	78,182	44,535	206,592
Income tax benefit (expense)	763	(106)	755	29,762
Equity income (loss) from unconsolidated joint ventures	867	(17,735)	2,190	(28,881)
Income (loss) from continuing operations	168,065	60,341	47,480	207,473
Income (loss) from discontinued operations	113,960	(5,292)	383,968	130,116
Net income (loss)	282,025	55,049	431,448	337,589
Operating Segment
Segment Reporting Information, Revenue for Reportable Segment [Abstract]
Total revenues	476,238	408,559	931,514	789,613
Corporate Non-segment
Segment Reporting Information, Revenue for Reportable Segment [Abstract]
Total revenues	0	0	0	0
Government grant income	0	0	0	0
Less: Interest income	0	0	0	0
Healthpeak’s share of unconsolidated joint venture total revenues	0	0	0	0
Healthpeak’s share of unconsolidated joint venture government grant income	0	0	0	0
Noncontrolling interests’ share of consolidated joint venture total revenues	0	0	0	0
Operating expenses	0	0	0	0
Healthpeak’s share of unconsolidated joint venture operating expenses	0	0	0	0
Noncontrolling interests’ share of consolidated joint venture operating expenses	0	0	0	0
Adjustments to NOI	0	0	0	0
Adjusted NOI	0	0	0	0
Plus: Adjustments to NOI	0	0	0	0
Interest income	0	0	0	0
Interest expense	(35,923)	(52,694)	(80,651)	(106,916)
Depreciation and amortization	0	0	0	0
General and administrative	(24,088)	(23,720)	(48,990)	(46,069)
Transaction costs	0	0	0	0
Impairments and loan loss reserves	0	0	0	0
Gain (loss) on sales of real estate, net	0	0	0	0
Gain (loss) on debt extinguishments	(60,865)	(25,824)	(225,157)	(24,991)
Other income (expense), net	1,716	3,273	3,532	1,887
Less: Government grant income	0	0	0	0
Less: Healthpeak’s share of unconsolidated joint venture NOI	0	0	0	0
Plus: Noncontrolling interests’ share of consolidated joint venture NOI	0	0	0	0
Income (loss) before income taxes and equity income (loss) from unconsolidated joint ventures	(119,160)	(98,965)	(351,266)	(176,089)
Income tax benefit (expense)	763	(106)	755	29,762
Equity income (loss) from unconsolidated joint ventures	0	0	0	0
Income (loss) from continuing operations	(118,397)	(99,071)	(350,511)	(146,327)
Income (loss) from discontinued operations	113,960	(5,292)	383,968	130,116
Net income (loss)	(4,437)	(104,363)	33,457	(16,211)
Life Science
Segment Reporting Information, Revenue for Reportable Segment [Abstract]
Depreciation and amortization	(11,000)		(15,000)
Income (loss) from continuing operations	(11,000)		(15,000)
Life Science | Operating Segment
Segment Reporting Information, Revenue for Reportable Segment [Abstract]
Total revenues	177,527	138,496	347,461	267,379
Government grant income	0	0	0	0
Less: Interest income	0	0	0	0
Healthpeak’s share of unconsolidated joint venture total revenues	1,412	0	2,749	0
Healthpeak’s share of unconsolidated joint venture government grant income	0	0	0	0
Noncontrolling interests’ share of consolidated joint venture total revenues	(75)	(57)	(140)	(109)
Operating expenses	(40,724)	(34,205)	(80,185)	(64,406)
Healthpeak’s share of unconsolidated joint venture operating expenses	(428)	0	(853)	0
Noncontrolling interests’ share of consolidated joint venture operating expenses	21	18	41	35
Adjustments to NOI	(12,366)	(2,779)	(24,176)	(7,059)
Adjusted NOI	125,367	101,473	244,897	195,840
Plus: Adjustments to NOI	12,366	2,779	24,176	7,059
Interest income	0	0	0	0
Interest expense	(48)	(60)	(150)	(122)
Depreciation and amortization	(76,955)	(52,356)	(145,388)	(102,567)
General and administrative	0	0	0	0
Transaction costs	21	(1)	(11)	(1)
Impairments and loan loss reserves	0	0	0	0
Gain (loss) on sales of real estate, net	0	0	0	0
Gain (loss) on debt extinguishments	0	0	0	0
Other income (expense), net	28	0	33	0
Less: Government grant income	0	0	0	0
Less: Healthpeak’s share of unconsolidated joint venture NOI	(984)	0	(1,896)	0
Plus: Noncontrolling interests’ share of consolidated joint venture NOI	54	39	99	74
Income (loss) before income taxes and equity income (loss) from unconsolidated joint ventures	59,849	51,874	121,760	100,283
Income tax benefit (expense)	0	0	0	0
Equity income (loss) from unconsolidated joint ventures	111	0	18	0
Income (loss) from continuing operations	59,960	51,874	121,778	100,283
Income (loss) from discontinued operations	0	0	0	0
Net income (loss)	59,960	51,874	121,778	100,283
Medical Office | Operating Segment
Segment Reporting Information, Revenue for Reportable Segment [Abstract]
Total revenues	165,295	151,844	325,496	308,485
Government grant income	0	0	0	0
Less: Interest income	0	0	0	0
Healthpeak’s share of unconsolidated joint venture total revenues	710	691	1,425	1,386
Healthpeak’s share of unconsolidated joint venture government grant income	0	0	0	0
Noncontrolling interests’ share of consolidated joint venture total revenues	(8,825)	(8,347)	(17,751)	(16,987)
Operating expenses	(54,648)	(49,355)	(105,769)	(100,049)
Healthpeak’s share of unconsolidated joint venture operating expenses	(317)	(276)	(611)	(551)
Noncontrolling interests’ share of consolidated joint venture operating expenses	2,552	2,507	5,056	5,107
Adjustments to NOI	(2,003)	(465)	(3,926)	(1,459)
Adjusted NOI	102,764	96,599	203,920	195,932
Plus: Adjustments to NOI	2,003	465	3,926	1,459
Interest income	0	0	0	0
Interest expense	(786)	(100)	(881)	(203)
Depreciation and amortization	(63,371)	(55,904)	(121,326)	(110,571)
General and administrative	0	0	0	0
Transaction costs	35	0	(295)	0
Impairments and loan loss reserves	0	(2,119)	0	(4,825)
Gain (loss) on sales of real estate, net	175,238	81,284	175,238	83,393
Gain (loss) on debt extinguishments	0	0	0	0
Other income (expense), net	(175)	0	(2,454)	0
Less: Government grant income	0	0	0	0
Less: Healthpeak’s share of unconsolidated joint venture NOI	(393)	(415)	(814)	(835)
Plus: Noncontrolling interests’ share of consolidated joint venture NOI	6,273	5,840	12,695	11,880
Income (loss) before income taxes and equity income (loss) from unconsolidated joint ventures	221,588	125,650	270,009	176,230
Income tax benefit (expense)	0	0	0	0
Equity income (loss) from unconsolidated joint ventures	137	210	328	407
Income (loss) from continuing operations	221,725	125,860	270,337	176,637
Income (loss) from discontinued operations	0	0	0	0
Net income (loss)	221,725	125,860	270,337	176,637
CCRC | Operating Segment
Segment Reporting Information, Revenue for Reportable Segment [Abstract]
Total revenues	117,308	113,926	233,436	205,706
Government grant income	87	11,871	1,397	11,871
Less: Interest income	0	0	0	0
Healthpeak’s share of unconsolidated joint venture total revenues	2,415	4,781	6,903	26,428
Healthpeak’s share of unconsolidated joint venture government grant income	0	534	199	534
Noncontrolling interests’ share of consolidated joint venture total revenues	0	0	0	0
Operating expenses	(94,760)	(94,248)	(185,939)	(250,730)
Healthpeak’s share of unconsolidated joint venture operating expenses	(2,208)	(4,826)	(6,953)	(22,863)
Noncontrolling interests’ share of consolidated joint venture operating expenses	0	0	0	0
Adjustments to NOI	1,226	18	1,246	91,579
Adjusted NOI	24,068	32,056	50,289	62,525
Plus: Adjustments to NOI	(1,226)	(18)	(1,246)	(91,579)
Interest income	0	0	0	0
Interest expense	(1,924)	(1,969)	(3,842)	(3,273)
Depreciation and amortization	(31,133)	(31,426)	(62,283)	(51,655)
General and administrative	0	0	0	0
Transaction costs	(657)	(368)	(1,090)	(14,842)
Impairments and loan loss reserves	0	0	0	0
Gain (loss) on sales of real estate, net	0	0	0	0
Gain (loss) on debt extinguishments	0	0	0	0
Other income (expense), net	165	14,142	2,341	184,474
Less: Government grant income	(87)	(11,871)	(1,397)	(11,871)
Less: Healthpeak’s share of unconsolidated joint venture NOI	(207)	(489)	(149)	(4,099)
Plus: Noncontrolling interests’ share of consolidated joint venture NOI	0	0	0	0
Income (loss) before income taxes and equity income (loss) from unconsolidated joint ventures	(11,001)	57	(17,377)	69,680
Income tax benefit (expense)	0	0	0	0
Equity income (loss) from unconsolidated joint ventures	639	401	639	(1,479)
Income (loss) from continuing operations	(10,362)	458	(16,738)	68,201
Income (loss) from discontinued operations	0	0	0	0
Net income (loss)	(10,362)	458	(16,738)	68,201
Other non-reportable | Operating Segment
Segment Reporting Information, Revenue for Reportable Segment [Abstract]
Total revenues	16,108	4,293	25,121	8,043
Government grant income	0	0	0	0
Less: Interest income	(16,108)	(4,230)	(25,121)	(7,918)
Healthpeak’s share of unconsolidated joint venture total revenues	16,740	18,682	33,493	38,876
Healthpeak’s share of unconsolidated joint venture government grant income	583	270	810	270
Noncontrolling interests’ share of consolidated joint venture total revenues	0	0	0	0
Operating expenses	0	0	0	0
Healthpeak’s share of unconsolidated joint venture operating expenses	(12,451)	(13,681)	(25,046)	(26,959)
Noncontrolling interests’ share of consolidated joint venture operating expenses	0	0	0	0
Adjustments to NOI	(27)	99	85	51
Adjusted NOI	4,845	5,433	9,342	12,363
Plus: Adjustments to NOI	27	(99)	(85)	(51)
Interest income	16,108	4,230	25,121	7,918
Interest expense	0	0	0	0
Depreciation and amortization	0	(5)	0	(10)
General and administrative	0	0	0	0
Transaction costs	(18)	(4)	(21)	(93)
Impairments and loan loss reserves	(931)	(4,718)	(4,173)	(13,119)
Gain (loss) on sales of real estate, net	0	0	0	(40)
Gain (loss) on debt extinguishments	0	0	0	0
Other income (expense), net	0	0	482	41,707
Less: Government grant income	0	0	0	0
Less: Healthpeak’s share of unconsolidated joint venture NOI	(4,872)	(5,271)	(9,257)	(12,187)
Plus: Noncontrolling interests’ share of consolidated joint venture NOI	0	0	0	0
Income (loss) before income taxes and equity income (loss) from unconsolidated joint ventures	15,159	(434)	21,409	36,488
Income tax benefit (expense)	0	0	0	0
Equity income (loss) from unconsolidated joint ventures	(20)	(18,346)	1,205	(27,809)
Income (loss) from continuing operations	15,139	(18,780)	22,614	8,679
Income (loss) from discontinued operations	0	0	0	0
Net income (loss)	$ 15,139	$ (18,780)	$ 22,614	$ 8,679
Lessor Asset Under Operating Lease | Other non-reportable
Segment Disclosure
Property count | property					1

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Segment Disclosures - Revenues by Segment (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Segment Disclosure
Total revenues	$ 476,238	$ 408,559	$ 931,514	$ 789,613
Operating segment
Segment Disclosure
Total revenues	476,238	408,559	931,514	789,613
Operating segment | Life science
Segment Disclosure
Total revenues	177,527	138,496	347,461	267,379
Operating segment | Medical office
Segment Disclosure
Total revenues	165,295	151,844	325,496	308,485
Operating segment | CCRC
Segment Disclosure
Total revenues	117,308	113,926	233,436	205,706
Operating segment | Other non-reportable
Segment Disclosure
Total revenues	$ 16,108	$ 4,293	$ 25,121	$ 8,043

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Supplemental Cash Flow Information - Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020
Supplemental cash flow information:
Interest paid, net of capitalized interest	$ 109,277	$ 104,370
Income taxes paid (refunded)	4,026	164
Capitalized interest	10,867	13,680
Supplemental schedule of non-cash investing and financing activities:
Accrued construction costs	113,221	117,895
Vesting of restricted stock units and conversion of non-managing member units into common stock	900	4,703
Net noncash impact from the consolidation of previously unconsolidated joint ventures	0	323,138
Mortgages assumed with real estate acquisitions	0	215,335
Carrying value of mortgages assumed by buyer in real estate dispositions	106,632	0
Refundable entrance fees assumed with real estate acquisitions	0	307,954
Seller financing provided on disposition of real estate asset	559,745	12,480
ROU asset obtained in exchange for new lease liability related to operating leases	$ 13,157	$ 23,962

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Supplemental Cash Flow Information - Summary of Cash Flow Information Discontinued Operations (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Depreciation and amortization of real estate, in-place lease, and other intangibles	$ 171,459	$ 139,691	$ 328,997	$ 264,803
Development, redevelopment, and other major improvements of real estate			281,829	391,230
Leasing costs, tenant improvements, and recurring capital expenditures			43,132	40,572
Discontinued Operations
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Depreciation and amortization of real estate, in-place lease, and other intangibles			0	102,961
Development, redevelopment, and other major improvements of real estate			4,569	17,816
Leasing costs, tenant improvements, and recurring capital expenditures			$ 2,349	$ 6,520

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Supplemental Cash Flow Information - Schedule of Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020	Jun. 30, 2020	Dec. 31, 2019
Continuing operations
Cash and cash equivalents	$ 96,923	$ 44,226	$ 672,078	$ 80,398
Restricted cash	129,052	67,206	85,473	13,385
Cash, cash equivalents and restricted cash	225,975	111,432	757,551	93,783
Discontinued operations
Cash and cash equivalents	17,354	53,085	58,879	63,834
Restricted cash	974	17,168	20,211	27,040
Cash, cash equivalents and restricted cash	18,328	70,253	79,090	90,874
Cash and cash equivalents, total	114,277	97,311	730,957	144,232
Restricted cash, total	130,026	84,374	105,684	40,425
Cash, cash equivalents and restricted cash, total	$ 244,303	$ 181,685	$ 836,641	$ 184,657

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Variable Interest Entities - Narrative (Details) $ in Millions			1 Months Ended				3 Months Ended		6 Months Ended		12 Months Ended
	Dec. 31, 2020 USD ($) joint_venture loan tenant property investment	Jan. 31, 2020 property	Jun. 30, 2021 joint_venture property loan	May 31, 2021 property	Apr. 30, 2021 property	Jan. 31, 2021 property	Jun. 30, 2021 joint_venture property loan	Jun. 30, 2020 property	Jun. 30, 2021 joint_venture asset property loan facility	Jun. 30, 2020 property	Dec. 31, 2020 USD ($) joint_venture property asset loan tenant
Variable Interest Entity [Line Items]
Number of investments in senior housing development joint ventures | investment	2
Number of loans sold	3		2				2		2		3
Number of properties disposed										18
Term of facility									1 month		1 month
Number of properties acquired | asset									0
Exchange accommodation titleholder, real estate, carrying value | $	$ 813										$ 813
Brookedale MTCA
Variable Interest Entity [Line Items]
Number of properties disposed		18									18
CCRC JV
Variable Interest Entity [Line Items]
Investment ownership percentage	49.00%	49.00%	0.00%	49.00%			0.00%		0.00%		49.00%
CCRC JV | Brookedale MTCA
Variable Interest Entity [Line Items]
Number of assets to be sold				2
VIE tenant - operating leases
Variable Interest Entity [Line Items]
Number of properties leased (in properties)	2										2
Number of VIE tenants (in tenants) | tenant	1										1
Unconsolidated Variable Interest Entities
Variable Interest Entity [Line Items]
Number of unconsolidated joint ventures (in joint ventures) | joint_venture	4		1				1		1		4
Number of VIE borrowers with marketable debt securities (in joint ventures) | joint_venture	1		1				1		1		1
Number of loans to VIE borrowers (in loans) | loan	1		1				1		1		1
Number of properties leased (in properties)	2										2
Hcp Ventures V
Variable Interest Entity [Line Items]
VIE ownership percentage									51.00%
Life science joint ventures
Variable Interest Entity [Line Items]
VIE ownership percentage									99.00%
MSREI JV
Variable Interest Entity [Line Items]
VIE ownership percentage									51.00%
Consolidated Lessees VIE
Variable Interest Entity [Line Items]
Number of properties leased (in properties)			3				3		3
DownREIT Partnerships
Variable Interest Entity [Line Items]
Number of controlling ownership interest entities as a managing member | joint_venture									7
SHOP
Variable Interest Entity [Line Items]
Number of assets to be sold						16	6	2	1	9	23
SHOP | Sunrise Senior Housing Portfolio
Variable Interest Entity [Line Items]
Number of assets to be sold			2			32
SHOP | Discovery SHOP Portfolio
Variable Interest Entity [Line Items]
Number of assets to be sold					10
Number of preferred equity method investments sold					2
SHOP | Discovery SHOP Portfolio | Secured Loans
Variable Interest Entity [Line Items]
Number of loans sold					2
Senior Housing Triple-Net
Variable Interest Entity [Line Items]
Number of assets to be sold							3			18
Senior Housing Triple-Net | Sunrise Senior Housing Portfolio
Variable Interest Entity [Line Items]
Number of assets to be sold			2
Senior Housing Triple-Net | Loans receivable
Variable Interest Entity [Line Items]
Number of properties disposed | facility									7
Term of facility									5 years
Medical office
Variable Interest Entity [Line Items]
Number of assets to be sold							4	3		3	11
Number of properties acquired | asset											7
Medical Office, Hospital
Variable Interest Entity [Line Items]
Number of assets to be sold				1
Number of properties acquired | asset											1
Life science
Variable Interest Entity [Line Items]
Number of properties acquired | asset											3

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Variable Interest Entities - Schedule of Variable Interest Entities (Details) $ in Thousands	Jun. 30, 2021 USD ($)
CCRC OpCo
Variable Interest Entity [Line Items]
Maximum Loss Exposure and Carrying Amount	$ 1,940
Loans receivable
Variable Interest Entity [Line Items]
Maximum Loss Exposure and Carrying Amount	3,045
CMBS and LLC investment
Variable Interest Entity [Line Items]
Maximum Loss Exposure and Carrying Amount	$ 35,999

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Variable Interest Entities - Consolidated Assets and Liabilities of VIEs (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020	Jun. 30, 2020	Dec. 31, 2019
ASSETS
Buildings and improvements	$ 11,543,657	$ 11,048,433
Development costs and construction in progress	711,772	613,182
Land	1,966,665	1,867,278
Accumulated depreciation and amortization	(2,618,101)	(2,409,135)
Net real estate	11,603,993	11,119,758
Accounts receivable, net	41,814	42,269
Cash and cash equivalents	96,923	44,226	$ 672,078	$ 80,398
Intangible assets, net	511,612	519,917
Assets held for sale and discontinued operations, net	246,807	2,626,306
Right-of-use asset, net	215,303	192,349
Other assets, net	624,669	665,106
Total assets	14,332,370	15,920,089
Liabilities
Mortgage debt	358,101	221,621
Intangible liabilities, net	139,116	144,199
Liabilities related to assets held for sale and discontinued operations, net	65,272	415,737
Lease liability	189,732	179,895
Accounts payable, accrued liabilities, and other liabilities	688,458	763,391
Deferred revenue	777,687	774,316
Total liabilities	6,898,641	8,575,517
Consolidated Lessees VIE
ASSETS
Buildings and improvements	2,337,717	2,988,599
Development costs and construction in progress	46,634	85,595
Land	379,376	433,574
Accumulated depreciation and amortization	(520,226)	(602,491)
Net real estate	2,243,501	2,905,277
Accounts receivable, net	6,781	12,009
Cash and cash equivalents	26,970	16,550
Restricted cash	86,642	7,977
Intangible assets, net	102,428	179,027
Assets held for sale and discontinued operations, net	25,411	704,966
Right-of-use asset, net	108,088	95,407
Other assets, net	61,457	59,063
Total assets	2,661,278	3,980,276
Liabilities
Mortgage debt	144,263	39,085
Intangible liabilities, net	20,378	56,467
Liabilities related to assets held for sale and discontinued operations, net	4,560	190,919
Lease liability	97,849	97,605
Accounts payable, accrued liabilities, and other liabilities	52,757	102,391
Deferred revenue	34,427	90,183
Total liabilities	354,234	576,650
Consolidated Lessees VIE | Discontinued Operations
ASSETS
Buildings and improvements	32,173	639,759
Development costs and construction in progress	91	68
Land	2,724	106,209
Accumulated depreciation and amortization	(16,096)	(57,235)
Net real estate	18,892	688,801
Accounts receivable, net	2,368	1,700
Cash and cash equivalents	1,016	6,306
Restricted cash	294	3,124
Right-of-use asset, net	405	1,391
Other assets, net	2,436	3,644
Total assets	25,411	704,966
Liabilities
Mortgage debt	0	176,702
Liabilities related to assets held for sale and discontinued operations, net	3,743	11,003
Lease liability	644	1,392
Deferred revenue	173	1,822
Total liabilities	$ 4,560	$ 190,919

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Fair Value Measurements (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Summary of financial instruments
Bank line of credit and commercial paper	$ 720,000	$ 129,590
Senior unsecured notes	3,710,972	5,697,586
Mortgage debt	358,101	221,621
Carrying Value
Summary of financial instruments
Loans receivable, net	429,076	195,375
Marketable debt securities	20,673	20,355
Interest rate cap assets	244	0
Bank line of credit and commercial paper	720,000	129,590
Term loan	249,303	249,182
Senior unsecured notes	3,710,972	5,697,586
Mortgage debt	358,101	221,621
Interest rate swap liabilities	0	81
Carrying Value | Discontinued Operations
Summary of financial instruments
Mortgage debt	37,000	319,000
Fair Value | Level 1
Summary of financial instruments
Senior unsecured notes	4,169,472	6,517,650
Fair Value | Level 2
Summary of financial instruments
Loans receivable, net	437,632	201,228
Marketable debt securities	20,673	20,355
Interest rate cap assets	244	0
Bank line of credit and commercial paper	720,000	129,590
Term loan	249,303	249,182
Mortgage debt	360,296	221,181
Interest rate swap liabilities	$ 0	$ 81

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Derivative Financial Instruments - Narrative (Details) $ in Millions	1 Months Ended
	Apr. 30, 2021 USD ($) property	Mar. 31, 2021 USD ($) property derivativeHeld	Dec. 31, 2020 USD ($) property	Jun. 30, 2021 derivativeHeld	May 31, 2021 property
Derivative [Line Items]
Repayments of secured debt | $			$ 6
Number of interest rate derivatives | derivativeHeld				0
Mortgage Debt
Derivative [Line Items]
Repayments of secured debt | $	$ 64	$ 39
Number of assets classified as discontinued operations | property	2	2	1		6
Number of interest rate derivatives terminated | derivativeHeld		2

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Derivative Financial Instruments - Schedule of Derivative Instruments (Details) - Not Designated as Hedging Instrument	Jun. 30, 2021 USD ($)	Apr. 30, 2021 derivativeHeld
Derivative [Line Items]
Number of interest-rate contracts held | derivativeHeld		2
Interest Rate Cap
Derivative [Line Items]
Notional	$ 142,100,000
Strike Rate	2.00%
Fair Value	$ 244,000

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Accounts Payable, Accrued Liabilities, and Other Liabilities (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Payables and Accruals [Abstract]
Refundable entrance fees	$ 301,953	$ 317,444
Construction related accrued liabilities	113,221	95,293
Accrued interest	55,373	78,735
Other accounts payable and accrued liabilities	217,911	271,919
Accounts payable, accrued liabilities, and other liabilities	688,458	763,391
Unamortized nonrefundable entrance fee	$ 485,000	$ 484,000

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Label	Element	Value
Accounting Standards Update [Extensible Enumeration]	us-gaap_AccountingStandardsUpdateExtensibleList	Accounting Standards Update 2016-13 [Member]