10-Q

Table of Contents

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, 2023

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.)

4600 South Syracuse Street, Suite 500

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 July 26, 2023, there were 547,054,288 shares of the registrant’s $1.00 par value common stock outstanding.

Table of Contents

HEALTHPEAK PROPERTIES, INC.

INDEX

PART I. FINANCIAL INFORMATION
Item 1.	Financial Statements (Unaudited):	3
	Consolidated Balance Sheets	3
	Consolidated Statements of Operations	4
	Consolidated Statements of Comprehensive Income (Loss)	5
	Consolidated Statements of Equity and Redeemable Noncontrolling Interests	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	34
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	59
Item 4.	Controls and Procedures	60
PART II. OTHER INFORMATION
Item 1A.	Risk Factors	61
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	61
Item 5.	Other Information	61
Item 6.	Exhibits	62
Signatures		63

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PART I. FINANCIAL INFORMATION

Item 1.  Financial Statements (Unaudited)

Healthpeak Properties, Inc.

CONSOLIDATED BALANCE SHEETS

(In thousands, except share and per share data)

(Unaudited)

	June 30, 2023		December 31, 2022
ASSETS
Real estate:
Buildings and improvements	$	13,039,278	$	12,784,078
Development costs and construction in progress	775,836		760,355
Land	2,661,963		2,667,188
Accumulated depreciation and amortization	(3,379,874)		(3,188,138)
Net real estate	13,097,203		13,023,483
Loans receivable, net of reserves of $8,366 and $8,280	214,030		374,832
Investments in and advances to unconsolidated joint ventures	731,956		706,677
Accounts receivable, net of allowance of $2,387 and $2,399	53,467		53,436
Cash and cash equivalents	103,780		72,032
Restricted cash	56,745		54,802
Intangible assets, net	364,453		418,061
Assets held for sale, net	8,282		49,866
Right-of-use asset, net	234,050		237,318
Other assets, net	739,574		780,722
Total assets	$	15,603,540	$	15,771,229
LIABILITIES AND EQUITY
Bank line of credit and commercial paper	$	329,000	$	995,606
Term loans	496,382		495,957
Senior unsecured notes	5,399,504		4,659,451
Mortgage debt	343,766		346,599
Intangible liabilities, net	140,060		156,193
Liabilities related to assets held for sale, net	52		4,070
Lease liability	204,489		208,515
Accounts payable, accrued liabilities, and other liabilities	682,764		772,485
Deferred revenue	881,870		844,076
Total liabilities	8,477,887		8,482,952
Commitments and contingencies (Note 10)
Redeemable noncontrolling interests	63,792		105,679
Common stock, $1.00 par value: 750,000,000 shares authorized; 547,052,994 and 546,641,973 shares issued and outstanding	547,053		546,642
Additional paid-in capital	10,384,982		10,349,614
Cumulative dividends in excess of earnings	(4,428,423)		(4,269,689)
Accumulated other comprehensive income (loss)	31,453		28,134
Total stockholders’ equity	6,535,065		6,654,701
Joint venture partners	316,247		327,721
Non-managing member unitholders	210,549		200,176
Total noncontrolling interests	526,796		527,897
Total equity	7,061,861		7,182,598
Total liabilities and equity	$	15,603,540	$	15,771,229

See accompanying Notes to the Unaudited Consolidated Financial Statements.

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Healthpeak Properties, Inc.

CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share data)

(Unaudited)

	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Revenues:
Rental and related revenues	$	409,967	$	387,079	$	802,398	$	757,229
Resident fees and services	130,184		125,360		257,268		246,920
Interest income	5,279		5,493		11,442		10,987
Income from direct financing leases	—		—		—		1,168
Total revenues	545,430		517,932		1,071,108		1,016,304
Costs and expenses:
Interest expense	49,074		41,867		97,037		79,453
Depreciation and amortization	197,573		180,489		376,798		358,222
Operating	221,837		215,044		444,925		422,291
General and administrative	25,936		24,781		50,483		48,612
Transaction costs	637		612		3,062		908
Impairments and loan loss reserves (recoveries), net	2,607		139		394		271
Total costs and expenses	497,664		462,932		972,699		909,757
Other income (expense):
Gain (loss) on sales of real estate, net	4,885		10,340		86,463		14,196
Other income (expense), net	1,955		2,861		2,727		21,177
Total other income (expense), net	6,840		13,201		89,190		35,373
Income (loss) before income taxes and equity income (loss) from unconsolidated joint ventures	54,606		68,201		187,599		141,920
Income tax benefit (expense)	(1,136)		718		(1,438)		(59)
Equity income (loss) from unconsolidated joint ventures	2,729		382		4,545		2,466
Income (loss) from continuing operations	56,199		69,301		190,706		144,327
Income (loss) from discontinued operations	—		2,992		—		3,309
Net income (loss)	56,199		72,293		190,706		147,636
Noncontrolling interests’ share in continuing operations	(4,300)		(3,955)		(19,855)		(7,685)
Net income (loss) attributable to Healthpeak Properties, Inc.	51,899		68,338		170,851		139,951
Participating securities’ share in earnings	(149)		(281)		(1,402)		(2,258)
Net income (loss) applicable to common shares	$	51,750	$	68,057	$	169,449	$	137,693
Basic earnings (loss) per common share:
Continuing operations	$	0.09	$	0.12	$	0.31	$	0.25
Discontinued operations	—		0.01		—		0.01
Net income (loss) applicable to common shares	$	0.09	$	0.13	$	0.31	$	0.26
Diluted earnings (loss) per common share:
Continuing operations	$	0.09	$	0.12	$	0.31	$	0.25
Discontinued operations	—		0.01		—		0.01
Net income (loss) applicable to common shares	$	0.09	$	0.13	$	0.31	$	0.26
Weighted average shares outstanding:
Basic	547,026		539,558		546,936		539,456
Diluted	547,294		539,815		547,204		539,701

See accompanying Notes to the Unaudited Consolidated Financial Statements.

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Healthpeak Properties, Inc.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(In thousands)

(Unaudited)

	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Net income (loss)	$	56,199	$	72,293	$	190,706	$	147,636
Other comprehensive income (loss):
Net unrealized gains (losses) on derivatives	12,668		1,629		3,191		1,629
Change in Supplemental Executive Retirement Plan obligation and other	64		100		128		200
Total other comprehensive income (loss)	12,732		1,729		3,319		1,829
Total comprehensive income (loss)	68,931		74,022		194,025		149,465
Total comprehensive (income) loss attributable to noncontrolling interests’ share in continuing operations	(4,300)		(3,955)		(19,855)		(7,685)
Total comprehensive income (loss) attributable to Healthpeak Properties, Inc.	$	64,631	$	70,067	$	174,170	$	141,780

See accompanying Notes to the Unaudited Consolidated Financial Statements.

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Healthpeak Properties, Inc.

CONSOLIDATED STATEMENTS OF EQUITY AND REDEEMABLE NONCONTROLLING INTERESTS

(In thousands, except per share data)

(Unaudited)

For the three months ended June 30, 2023:

	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		Redeemable Noncontrolling Interests
	Shares	Amount
April 1, 2023	546,995	$	546,995	$	10,360,058	$	(4,316,038)	$	18,721	$	6,609,736	$	527,997	$	7,137,733	$	85,902
Net income (loss)	—	—		—		51,899		—		51,899		4,153		56,052		147
Other comprehensive income (loss)	—	—		—		—		12,732		12,732		—		12,732		—
Issuance of common stock, net	51	51		132		—		—		183		—		183		—
Conversion of DownREIT units to common stock	7	7		216		—		—		223		(223)		—		—
Repurchase of common stock	—	—		(7)		—		—		(7)		—		(7)		—
Stock-based compensation	—	—		2,256		—		—		2,256		3,138		5,394		—
Common dividends ($0.30 per share)	—	—		—		(164,284)		—		(164,284)		—		(164,284)		—
Distributions to noncontrolling interests	—	—		—		—		—		—		(8,269)		(8,269)		(54)
Contributions from noncontrolling interests	—	—		—		—		—		—		—		—		124
Adjustments to redemption value of redeemable noncontrolling interests	—	—		22,327		—		—		22,327		—		22,327		(22,327)
June 30, 2023	547,053	$	547,053	$	10,384,982	$	(4,428,423)	$	31,453	$	6,535,065	$	526,796	$	7,061,861	$	63,792

For the three months ended June 30, 2022:

	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		Redeemable Noncontrolling Interests
	Shares	Amount
April 1, 2022	539,524	$	539,524	$	10,084,687	$	(4,212,941)	$	(3,047)	$	6,408,223	$	539,499	$	6,947,722	$	97,890
Net income (loss)	—	—		—		68,338		—		68,338		3,942		72,280		13
Other comprehensive income (loss)	—	—		—		—		1,729		1,729		—		1,729		—
Issuance of common stock, net	65	65		262		—		—		327		—		327		—
Repurchase of common stock	(9)	(9)		(254)		—		—		(263)		—		(263)		—
Stock-based compensation	—	—		6,721		—		—		6,721		—		6,721		—
Common dividends ($0.30 per share)	—	—		—		(162,159)		—		(162,159)		—		(162,159)		—
Distributions to noncontrolling interests	—	—		—		—		—		—		(8,265)		(8,265)		(85)
Contributions from noncontrolling interests	—	—		—		—		—		—		—		—		355
Adjustments to redemption value of redeemable noncontrolling interests	—	—		(17,704)		—		—		(17,704)		—		(17,704)		17,704
June 30, 2022	539,580	$	539,580	$	10,073,712	$	(4,306,762)	$	(1,318)	$	6,305,212	$	535,176	$	6,840,388	$	115,877

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For the six months ended June 30, 2023:

	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		Redeemable Noncontrolling Interests
	Shares	Amount
January 1, 2023	546,642	$	546,642	$	10,349,614	$	(4,269,689)	$	28,134	$	6,654,701	$	527,897	$	7,182,598	$	105,679
Net income (loss)	—	—		—		170,851		—		170,851		19,542		190,393		313
Other comprehensive income (loss)	—	—		—		—		3,319		3,319		—		3,319		—
Issuance of common stock, net	642	642		(285)		—		—		357		—		357		—
Conversion of DownREIT units to common stock	7	7		216		—		—		223		(223)		—		—
Repurchase of common stock	(238)	(238)		(6,236)		—		—		(6,474)		—		(6,474)		—
Stock-based compensation	—	—		(621)		—		—		(621)		10,580		9,959		—
Common dividends ($0.60 per share)	—	—		—		(329,585)		—		(329,585)		—		(329,585)		—
Distributions to noncontrolling interests	—	—		—		—		—		—		(31,000)		(31,000)		(126)
Contributions from noncontrolling interests	—	—		—		—		—		—		—		—		220
Adjustments to redemption value of redeemable noncontrolling interests	—	—		42,294		—		—		42,294		—		42,294		(42,294)
June 30, 2023	547,053	$	547,053	$	10,384,982	$	(4,428,423)	$	31,453	$	6,535,065	$	526,796	$	7,061,861	$	63,792

For the six months ended June 30, 2022:

	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		Redeemable Noncontrolling Interests
	Shares	Amount
January 1, 2022	539,097	$	539,097	$	10,100,294	$	(4,120,774)	$	(3,147)	$	6,515,470	$	543,290	$	7,058,760	$	87,344
Net income (loss)	—	—		—		139,951		—		139,951		7,660		147,611		25
Other comprehensive income (loss)	—	—		—		—		1,829		1,829		—		1,829		—
Issuance of common stock, net	831	831		(175)		—		—		656		—		656		—
Repurchase of common stock	(348)	(348)		(11,267)		—		—		(11,615)		—		(11,615)		—
Stock-based compensation	—	—		12,865		—		—		12,865		—		12,865		—
Common dividends ($0.60 per share)	—	—		—		(325,939)		—		(325,939)		—		(325,939)		—
Distributions to noncontrolling interests	—	—		—		—		—		—		(15,774)		(15,774)		(85)
Contributions from noncontrolling interests	—	—		—		—		—		—		—		—		588
Adjustments to redemption value of redeemable noncontrolling interests	—	—		(28,005)		—		—		(28,005)		—		(28,005)		28,005
June 30, 2022	539,580	$	539,580	$	10,073,712	$	(4,306,762)	$	(1,318)	$	6,305,212	$	535,176	$	6,840,388	$	115,877

See accompanying Notes to the Unaudited Consolidated Financial Statements.

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Healthpeak Properties, Inc.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(Unaudited)

	Six Months Ended June 30,
	2023		2022
Cash flows from operating activities:
Net income (loss)	$	190,706	$	147,636
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	376,798		358,222
Stock-based compensation amortization expense	7,532		10,021
Amortization of deferred financing costs	5,774		5,377
Straight-line rents	(5,431)		(23,872)
Amortization of nonrefundable entrance fees and above (below) market lease intangibles	(54,910)		(50,054)
Equity loss (income) from unconsolidated joint ventures	(4,545)		(2,530)
Distributions of earnings from unconsolidated joint ventures	352		476
Loss (gain) on sale of real estate under direct financing leases	—		(22,693)
Deferred income tax expense (benefit)	(901)		(1,038)
Impairments and loan loss reserves (recoveries), net	394		271
Loss (gain) on sales of real estate, net	(86,463)		(16,688)
Loss (gain) upon change of control, net	(234)		—
Casualty-related loss (recoveries), net	(266)		78
Other non-cash items	2,505		(1,187)
Changes in:
Decrease (increase) in accounts receivable and other assets, net	9,656		10,714
Increase (decrease) in accounts payable, accrued liabilities, and deferred revenue	30,770		34,935
Net cash provided by (used in) operating activities	471,737		449,668
Cash flows from investing activities:
Acquisitions of real estate	(15,770)		(159,206)
Development, redevelopment, and other major improvements of real estate	(394,141)		(366,404)
Leasing costs, tenant improvements, and recurring capital expenditures	(42,233)		(50,745)
Proceeds from sales of real estate, net	141,651		37,719
Investments in unconsolidated joint ventures	(28,214)		(1,971)
Distributions in excess of earnings from unconsolidated joint ventures	6,420		5,496
Proceeds from insurance recovery	14,265		—
Proceeds from sales/principal repayments on loans receivable, direct financing leases, and marketable debt securities	184,299		77,685
Investments in loans receivable and other	(4,946)		(3,710)
Net cash provided by (used in) investing activities	(138,669)		(461,136)
Cash flows from financing activities:
Borrowings under bank line of credit and commercial paper	6,014,005		8,242,327
Repayments under bank line of credit and commercial paper	(6,680,611)		(7,959,733)
Issuances and borrowings of term loans, senior unsecured notes, and mortgage debt	743,778		—
Repayments and repurchases of term loans, senior unsecured notes, and mortgage debt	(2,619)		(2,507)
Payments for deferred financing costs	(7,322)		—
Issuance of common stock and exercise of options, net of offering costs	(298)		(7)
Repurchase of common stock	(6,474)		(11,615)
Dividends paid on common stock	(328,930)		(325,276)
Distributions to and purchase of noncontrolling interests	(31,126)		(15,859)
Contributions from and issuance of noncontrolling interests	220		588
Net cash provided by (used in) financing activities	(299,377)		(72,082)
Net increase (decrease) in cash, cash equivalents, and restricted cash	33,691		(83,550)
Cash, cash equivalents, and restricted cash, beginning of period	126,834		219,448
Cash, cash equivalents, and restricted cash, end of period	$	160,525	$	135,898

See accompanying Notes to the Unaudited Consolidated Financial Statements.

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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, owns, leases, and manages healthcare real estate. The Company’s diverse portfolio is comprised of investments in the following reportable healthcare segments: (i) lab; (ii) outpatient medical; and (iii) continuing care retirement community (“CCRC”).

During the second quarter of 2023, the Company changed the name of its “life science” and “medical office” segments to “lab” and “outpatient medical,” respectively. The segment name changes did not result in any changes to the composition of the Company’s segments, and therefore, had no impact on the Company’s historical results of segment operations.

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

On February 10, 2023, the Company completed its corporate reorganization (the “Reorganization”) into an umbrella partnership REIT (“UPREIT”). Substantially all of the Company’s business is conducted through Healthpeak OP, LLC (“Healthpeak OP”). The Company is the managing member of Healthpeak OP and does not have material assets or liabilities, other than through its investment in Healthpeak OP. For additional information on the UPREIT reorganization, see the Company’s Current Report on Form 8-K12B filed with the U.S. Securities and Exchange Commission (“SEC”) on February 10, 2023.

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, 2023 are not necessarily indicative of the results that may be expected for the year ending December 31, 2023. The accompanying unaudited interim financial information should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2022 filed with the 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, 2023 and 2022, the Company received government grants under the CARES Act primarily to cover increased expenses and lost revenue during the coronavirus pandemic. Grant income is recognized to the extent that qualifying expenses and lost revenues exceed grants received and the Company will comply with all conditions attached to the grant. As of June 30, 2023, 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. In the event of non-compliance, all such amounts received are subject to recapture.

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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,
	2023		2022		2023		2022
Government grant income recorded in other income (expense), net	$	47	$	209	$	184	$	6,762
Government grant income recorded in equity income (loss) from unconsolidated joint ventures	—		—		229		648
Government grant income recorded in income (loss) from discontinued operations	—		—		—		206
Total government grants received	$	47	$	209	$	413	$	7,616

Discontinued Operations

Senior Housing Triple-Net and Senior Housing Operating Portfolio Dispositions

In 2020, the Company concluded that the dispositions of its senior housing triple-net and Senior Housing Operating Property (“SHOP”) portfolios represented a strategic shift that had a major effect on its operations and financial results. Therefore, senior housing triple-net and SHOP assets are classified as discontinued operations in all periods presented herein. See Note 4 for further information.

Recent Accounting Pronouncements

Government Assistance. In November 2021, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2021-10, Government Assistance (Topic 832): Disclosures by Business Entities about Government Assistance (“ASU 2021-10”), which increased the transparency of government assistance including the disclosure of the types of assistance, an entity’s accounting for assistance, and the effect of the assistance on an entity’s financial statements. The adoption of ASU 2021-10 on January 1, 2022 did not have a material impact on the Company’s consolidated financial position, results of operations, cash flows, or disclosures.

Reference Rate Reform. From March 2020 to December 2022, the FASB issued a series of ASUs that provide optional expedients that may be elected through December 31, 2024 to ease the potential burden in accounting for, or recognizing the effects of, reference rate reform on financial reporting. The amendments in these ASUs were effective immediately upon issuance. During the first quarter of 2023, the Company amended certain of its variable rate mortgage debt and the related interest rate swap agreements to change the interest rate benchmark from the London Interbank Offered Rate (“LIBOR”) to the Secured Overnight Financing Rate (“SOFR”) and accordingly, the Company elected to apply certain practical expedients provided by these ASUs related to cash flow hedges. These expedients and the effects of reference rate reform have not had a material impact on the Company’s consolidated financial position, results of operations, cash flows, or disclosures.

NOTE 3.  Real Estate

2023 Real Estate Investment Acquisitions

60 Loomis Land Parcel

In January 2023, the Company acquired a lab land parcel in Cambridge, Massachusetts for $9 million.

Wylie Outpatient Medical Building

In April 2023, the Company acquired the remaining 80% interest in one of the outpatient medical buildings in the Ventures IV unconsolidated joint venture for $4 million (see Note 7). Subsequent to the acquisition, the Company began consolidating the building and recognized a gain upon change of control of $0.2 million, which is recorded in other income (expense), net.

2022 Real Estate Investment Acquisitions

67 Smith Place

In January 2022, the Company closed a lab acquisition in Cambridge, Massachusetts for $72 million.

Vista Sorrento Phase II

In January 2022, the Company closed a lab acquisition in San Diego, California for $24 million.

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Webster Outpatient Medical Portfolio

In March 2022, the Company acquired a portfolio of two outpatient medical buildings in Houston, Texas for $43 million.

Northwest Medical Plaza

In May 2022, the Company acquired one outpatient medical building in Bentonville, Arkansas for $26 million.

Concord Avenue Land Parcels

In December 2022, the Company closed a lab acquisition in Cambridge, Massachusetts for $18 million.

Development Activities

The Company’s commitments, which are primarily related to development and redevelopment projects and Company-owned tenant improvements, decreased by $64 million, to $188 million at June 30, 2023, when compared to December 31, 2022, primarily as a result of construction spend on and completion of existing projects in the first half of 2023, thereby decreasing the remaining commitment.

NOTE 4.  Dispositions of Real Estate and Discontinued Operations

2023 Dispositions of Real Estate

In January 2023, the Company sold two lab buildings in Durham, North Carolina, which were classified as held for sale as of December 31, 2022, for $113 million, resulting in total gain on sales of $60 million. Additionally, in March 2023, the Company sold two outpatient medical buildings for $32 million, resulting in total gain on sales of $21 million.

2022 Dispositions of Real Estate

During the three months ended March 31, 2022, the Company sold one lab building in Salt Lake City, Utah for $14 million, resulting in a gain on sale of $4 million.

During the three months ended June 30, 2022, the Company sold three outpatient medical buildings and one outpatient medical land parcel for $27 million, resulting in total gain on sales of $10 million.

During the three months ended September 30, 2022, the Company sold two outpatient medical buildings for $9 million, resulting in total gain on sales of $1 million.

Held for Sale and Discontinued Operations

As of June 30, 2023, one outpatient medical building was classified as held for sale, with a carrying value of $8 million, primarily comprised of net real estate assets. As of June 30, 2023, liabilities related to the asset held for sale were de minimis. As of December 31, 2022, two lab buildings were classified as held for sale, with an aggregate carrying value of $50 million, primarily comprised of net real estate assets of $44 million. As of December 31, 2022, liabilities related to these assets held for sale were $4 million. These two lab buildings were sold in January 2023, as discussed above.

In 2020, the Company concluded that the dispositions of its senior housing triple-net and SHOP portfolios represented a strategic shift that had a major effect on its operations and financial results. Therefore, senior housing triple-net and SHOP assets are classified as discontinued operations in all periods presented herein.

At each of June 30, 2023 and December 31, 2022, the total assets and total liabilities classified as discontinued operations were zero.

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The results of discontinued operations during the three and six months ended June 30, 2023 and 2022 are presented below (in thousands) and are included in the consolidated results of operations for the three and six months ended June 30, 2023 and 2022:

	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Revenues:
Resident fees and services	$	—	$	2,825	$	—	$	5,480
Total revenues	—		2,825		—		5,480
Costs and expenses:
Operating	—		2,442		—		5,116
Total costs and expenses	—		2,442		—		5,116
Other income (expense):
Gain (loss) on sales of real estate, net	—		2,563		—		2,492
Other income (expense), net	—		16		—		19
Total other income (expense), net	—		2,579		—		2,511
Income (loss) before income taxes and equity income (loss) from unconsolidated joint ventures	—		2,962		—		2,875
Income tax benefit (expense)	—		30		—		370
Equity income (loss) from unconsolidated joint ventures	—		—		—		64
Income (loss) from discontinued operations	$	—	$	2,992	$	—	$	3,309

Impairments of Real Estate

During the three and six months ended June 30, 2023 and 2022, the Company did not recognize any impairment charges.

Other Losses

During the six months ended June 30, 2022, the Company recognized $14 million of expenses within other income (expense), net on the Consolidated Statements of Operations for tenant relocation and other costs associated with the demolition of an outpatient medical building.

NOTE 5.  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,
	2023		2022		2023		2022
Fixed income from operating leases	$	311,663	$	296,729	$	606,179	$	584,020
Variable income from operating leases	98,304		90,350		196,219		173,209
Interest income from direct financing leases	—		—		—		1,168

Direct Financing Leases

2022 Direct Financing Lease Sale

During the first quarter of 2022, the Company sold its remaining hospital under a direct financing lease (“DFL”) for $68 million and recognized a gain on sale of $23 million, which is included in other income (expense), net. Therefore, at June 30, 2023 and December 31, 2022, the Company had no leases classified as a DFL.

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Straight-Line Rents

For operating leases with minimum scheduled rent increases, the Company recognizes income on a straight-line basis over the lease term when collectibility of future minimum lease payments is probable. If the Company determines that collectibility of future minimum lease payments is not probable, the straight-line rent receivable balance is written off and recognized as a decrease in revenue in that period and future revenue recognition is limited to amounts contractually owed and paid. The Company does not resume recognition of income on a straight-line basis unless it determines that collectibility of future payments related to these leases is probable. For the Company’s portfolio of operating leases that are deemed probable of collection but exhibit a certain level of collectibility risk, the Company may also recognize an incremental allowance as a reduction to revenue.

During the first quarter of 2023, the Company wrote off $9 million of straight-line rent receivable associated with four in-place operating leases with Sorrento Therapeutics, Inc. (“Sorrento”), which commenced voluntary reorganization proceedings (the “Filing”) under Chapter 11 of the U.S. Bankruptcy Code during the period. This write-off was recognized as a reduction in rental and related revenues on the Consolidated Statements of Operations. Subsequent to the write-off, revenue related to this tenant is recognized on a cash basis. Sorrento also had a single development lease with the Company, but had not taken occupancy at the time of the Filing. During the second quarter of 2023, the U.S. Bankruptcy Court approved Sorrento’s rejection of the development lease, resulting in termination of the lease. The Company filed a proof of claim for related damages, $2 million of which was received by the Company by drawing on Sorrento’s letter of credit during the three months ended June 30, 2023. These cash proceeds of $2 million were recognized as lease termination fee income, which is included in rental and related revenues on the Consolidated Statements of Operations. Given the nature of bankruptcy proceedings, the probability, timing, or amount of the additional proceeds, if any, that the Company may ultimately receive in connection with the claim is uncertain. Accordingly, the Company has not recorded any estimated recoveries associated with this claim as of June 30, 2023.

NOTE 6.  Loans Receivable

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

	June 30, 2023		December 31, 2022
Secured loans(1)	$	188,319	$	350,837
CCRC resident loans	35,034		33,083
Unamortized discounts, fees, and costs	(957)		(808)
Reserve for loan losses	(8,366)		(8,280)
Loans receivable, net	$	214,030	$	374,832

_______________________________________

(1)At each of June 30, 2023 and December 31, 2022, the Company had $40 million remaining of commitments to fund additional loans for senior housing redevelopment and capital expenditure projects.

Sunrise Senior Housing Portfolio Seller Financing

In conjunction with the sale of 32 SHOP facilities for $664 million in January 2021, 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 initial and additional financing is secured by the buyer’s equity ownership in each property. In June 2023, the interest rate on this secured loan was converted from a variable rate based on LIBOR to a variable rate based on Term SOFR (plus a 10 basis point adjustment related to SOFR transition).

In June 2021, February 2022, July 2022, and December 2022, the Company received principal repayments of $246 million, $8 million, $27 million, and $10 million, respectively, in conjunction with the disposition of the underlying collateral. In connection with these principal repayments, the additional financing available was reduced to $40 million, of which $0.4 million had been funded as of June 30, 2023. At each of June 30, 2023 and December 31, 2022, this secured loan had an outstanding principal balance of $120 million.

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Other Seller Financing

In conjunction with the sale of 16 additional SHOP facilities for $230 million in January 2021, 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. Upon maturity in January 2023, the borrower did not make the required principal repayment. In February 2023, the borrower made a partial principal repayment of $102 million and the remaining balance owed was refinanced with the Company. In connection with the refinance, the maturity date of the loan was extended to January 2024 and the interest rate on the loan was increased to a variable rate based on Term SOFR (plus an 11 basis point adjustment related to SOFR transition) plus 6.0% for the first six months of the extended term, increasing to 7.0% for the last six months of the extended term. The Company also received a $1 million extension fee in connection with the refinance, which is recognized in interest income over the remaining term of the loan.

2023 Other Loans Receivable Transactions

In February 2023, the Company received full repayment of the outstanding balance of one $35 million secured loan.

In April 2023, the Company received full repayment of the outstanding balance of one $14 million secured loan.

In May 2023, the interest rate on one secured loan with an outstanding balance of $21 million was converted from a variable rate based on LIBOR to a variable rate based on Term SOFR (plus a 10 basis point adjustment related to SOFR transition).

Also in May 2023, the Company received full repayment of two outstanding secured loans with an aggregate balance of $12 million.

2022 Other Loans Receivable Transactions

In May 2022, the Company received full repayment of the outstanding balance of a $2 million secured loan.

In November 2022, the Company received full repayment of the outstanding balance of a $1 million mezzanine loan.

In December 2022, the Company extended the maturity dates of four secured loans with an aggregate outstanding balance of $61 million, originally scheduled to mature in December 2022, by one year to December 2023. In connection with the extensions, the interest rates on the loans were increased to a variable rate based on Term SOFR (plus an 11 basis point adjustment related to SOFR transition) with a floor of 8.5% for the first six months of the extended term, increasing to a floor of 10.5% for the last six months of the extended term. All four of these secured loans were repaid during 2023 as discussed above.

CCRC Resident Loans

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 resident’s previous home. At June 30, 2023 and December 31, 2022, the Company held $35 million and $33 million, respectively, of such notes receivable.

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 reserves for loan losses, as of June 30, 2023 (in thousands):

Investment Type	Year of Origination												Total
	2023		2022		2021		2020		2019		Prior
Secured loans
Risk rating:
Performing loans	$	—	$	—	$	162,813	$	16,183	$	—	$	—	$	178,996
Watch list loans	—		—		—		—		—		—		—
Workout loans	—		—		—		—		—		—		—
Total secured loans	$	—	$	—	$	162,813	$	16,183	$	—	$	—	$	178,996
Current period gross write-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Current period recoveries	—		—		—		—		—		—		—
Current period net write-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—
CCRC resident loans
Risk rating:
Performing loans	$	26,348	$	8,686	$	—	$	—	$	—	$	—	$	35,034
Watch list loans	—		—		—		—		—		—		—
Workout loans	—		—		—		—		—		—		—
Total CCRC resident loans	$	26,348	$	8,686	$	—	$	—	$	—	$	—	$	35,034
Current period gross write-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Current period recoveries	—		—		—		—		—		—		—
Current period net write-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Reserve for Loan Losses

The Company evaluates the liquidity and creditworthiness of its borrowers on a quarterly basis to determine whether any updates to the future expected losses recognized upon inception are necessary. The Company’s evaluation considers industry and economic conditions, individual and portfolio property performance, credit enhancements, liquidity, and other factors. The determination of loan losses also considers concentration of credit risk associated with the senior housing industry to which its loans receivable relate. 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, 2023						December 31, 2022
	Secured Loans		Other(1)		Total		Secured Loans		Other(1)		Total
Reserve for loan losses, beginning of period	$	8,280	$	—	$	8,280	$	1,804	$	9	$	1,813
Provision for expected loan losses	2,882		—		2,882		6,527		7		6,534
Expected loan losses (recoveries) related to loans sold or repaid	(2,796)		—		(2,796)		(51)		(16)		(67)
Reserve for loan losses, end of period	$	8,366	$	—	$	8,366	$	8,280	$	—	$	8,280

_______________________________________

(1)Includes CCRC resident loans and other loan activity.

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Additionally, at June 30, 2023 and December 31, 2022, a liability of $1.1 million and $0.8 million, respectively, related to expected credit losses for unfunded loan commitments was included in accounts payable, accrued liabilities, and other liabilities.

The change in the reserve for expected loan losses during the six months ended June 30, 2023 is primarily due to macroeconomic conditions and increased interest rates on variable rate loans, partially offset by principal repayments on seller financing.

NOTE 7.  Investments in and Advances to Unconsolidated Joint Ventures

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

				Carrying Amount
				June 30,		December 31,
Entity(1)	Segment	Property Count(2)	Ownership %(2)	2023		2022
SWF SH JV	Other	19	54	$	341,894	$	345,978
South San Francisco JVs(3)	Lab	7	70	337,450		309,969
Lab JV	Lab	1	49	28,863		26,601
Needham Land Parcel JV(4)	Lab	—	38	15,697		15,391
Outpatient Medical JVs(5)	Outpatient medical	2	20 - 67	8,052		8,738
				$	731,956	$	706,677

_______________________________________

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

(2)Property counts and ownership percentages are as of June 30, 2023.

(3)In August 2022, the Company sold a 30% interest in seven lab buildings in South San Francisco, California to a sovereign wealth fund. This transaction resulted in the recognition of seven unconsolidated lab joint ventures in which the Company holds a 70% ownership percentage in each joint venture. These joint ventures have been aggregated herein due to similarity of the investments and operations.

(4)Land held for development is excluded from the property count as of June 30, 2023.

(5)Includes two unconsolidated outpatient medical joint ventures in which the Company holds an ownership percentage as follows: (i) Ventures IV (20%) and (ii) Suburban Properties, LLC (67%). As of December 31, 2022, these joint ventures held a total of three properties. In April 2023, the Company acquired the remaining 80% interest in one of the two properties in the Ventures IV unconsolidated joint venture for $4 million (see Note 3). These joint ventures have been aggregated herein due to similarity of the investments and operations.

NOTE 8.  Intangibles

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

Intangible lease assets	June 30, 2023		December 31, 2022(1)
Gross intangible lease assets	$	758,282	$	770,285
Accumulated depreciation and amortization	(393,829)		(352,224)
Intangible assets, net	$	364,453	$	418,061
Weighted average remaining amortization period in years	5		5

_______________________________________

(1)Excludes intangible assets reported in assets held for sale of $2 million.

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, 2023		December 31, 2022
Gross intangible lease liabilities	$	231,659	$	237,464
Accumulated depreciation and amortization	(91,599)		(81,271)
Intangible liabilities, net	$	140,060	$	156,193
Weighted average remaining amortization period in years	7		7

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During the six months ended June 30, 2023, in conjunction with the Company’s acquisition of real estate, the Company acquired $0.5 million of intangible assets with a weighted average amortization period at acquisition of 5 years.

During the year ended December 31, 2022, in conjunction with the Company’s acquisitions of real estate, the Company acquired intangible assets of $7 million and intangible liabilities of $6 million. The intangible assets and liabilities acquired had a weighted average amortization period at acquisition of 7 years and 11 years, respectively.

NOTE 9.  Debt

Subsequent to the Reorganization, Healthpeak OP, the Company’s consolidated operating subsidiary, is the borrower under, and the Company is the guarantor of, all of the unsecured debt discussed below, which includes the Revolving Facility, Term Loan Facilities, Commercial Paper Program (each as defined below), and senior unsecured notes. The Company’s guarantee of the senior unsecured notes is full and unconditional and applicable to existing and future senior unsecured notes.

Bank Line of Credit and Term Loans

On May 23, 2019, the Company executed a $2.5 billion unsecured revolving line of credit facility, with a maturity date of May 23, 2023 and two six-month extension options, subject to certain customary conditions. In September 2021, the Company executed an amended and restated unsecured revolving line of credit (the “Revolving Facility”) to increase total revolving commitments from $2.5 billion to $3.0 billion and extend the maturity date to January 20, 2026. This maturity date may be further extended pursuant to two six-month extension options, subject to certain customary conditions. Borrowings under the Revolving Facility accrue interest at the applicable interest rate benchmark plus a margin that depends on the credit ratings of the Company’s senior unsecured long-term debt. On February 10, 2023, the Company executed an amendment to the Revolving Facility to convert the interest rate benchmark from LIBOR to SOFR. The Company also pays a facility fee on the entire revolving commitment that depends on its credit ratings. Additionally, the Revolving Facility includes a sustainability-linked pricing component whereby the applicable margin may be reduced by up to 0.025% based on the Company’s achievement of specified sustainability-linked metrics, subject to certain conditions. Based on the Company’s credit ratings at June 30, 2023, and inclusive of achievement of a sustainability-linked metric, the margin on the Revolving Facility was 0.85% and the facility fee was 0.15%. The Revolving Facility includes 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. At each of June 30, 2023 and December 31, 2022, the Company had no balance outstanding under the Revolving Facility.

On August 22, 2022, the Company executed a term loan agreement (the “Term Loan Agreement”) that provided for two senior unsecured delayed draw term loans in an aggregate principal amount of up to $500 million (the “Term Loan Facilities”). The Term Loan Facilities were available to be drawn from time to time during a 180-day period after closing, subject to customary borrowing conditions, and the Company drew the entirety of the $500 million under the Term Loan Facilities in October 2022. $250 million of the Term Loan Facilities has an initial stated maturity of 4.5 years, which may be extended for a one-year period subject to certain customary conditions. The other $250 million of the Term Loan Facilities has a stated maturity of 5 years with no option to extend. At each of June 30, 2023 and December 31, 2022, the Company had $500 million outstanding under the Term Loan Facilities.

Loans outstanding under the Term Loan Facilities accrue interest at Term SOFR plus a margin that depends on the credit ratings of the Company’s senior unsecured long-term debt. The Term Loan Agreement also includes a sustainability-linked pricing component whereby the applicable margin under the Term Loan Facilities may be reduced by 0.01% based on the Company’s achievement of specified sustainability-linked metrics. Based on the Company’s credit ratings as of June 30, 2023, and inclusive of achievement of a sustainability-linked metric, the margin on the Term Loan Facilities was 0.94%. The Term Loan Agreement includes a feature that allows the Company to increase the borrowing capacity by an aggregate amount of up to an additional $500 million, subject to securing additional commitments.

In August 2022, the Company entered into two forward-starting interest rate swap instruments that are designated as cash flow hedges (see Note 17). The Term Loan Facilities associated with these interest rate swap instruments are reported as fixed rate debt due to the Company having effectively established a fixed interest rate for the underlying debt instruments. Based on the Company’s credit ratings as of June 30, 2023, the Term Loan Facilities had a blended fixed effective interest rate of 3.76%, inclusive of the impact of these interest rate swap instruments and amortization of the related debt issuance costs.

The Revolving Facility and Term Loan Facilities are subject to certain financial restrictions and other customary requirements, including financial covenants and cross-default provisions to other indebtedness. Among other things, these covenants, using terms defined in the applicable agreement: (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 $7.7 billion. The Company believes it was in compliance with each of these covenants at June 30, 2023.

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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, short-term unsecured notes with varying maturities. Amounts available under the Commercial Paper Program may be borrowed, repaid, and re-borrowed from time to time. At each of June 30, 2023 and December 31, 2022, the maximum aggregate face or principal amount that can be outstanding at any one time was $2.0 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 short-term unsecured notes issued under the Commercial Paper Program. At June 30, 2023, the Company had $329 million of notes outstanding under the Commercial Paper Program, with original maturities of approximately 21 days and a weighted average interest rate of 5.45%. At December 31, 2022, the Company had $996 million of notes outstanding under the Commercial Paper Program, with original maturities of approximately two months and a weighted average interest rate of 4.90%.

Senior Unsecured Notes

At June 30, 2023 and December 31, 2022, the Company had senior unsecured notes outstanding with an aggregate principal balance of $5.5 billion and $4.7 billion, respectively. 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, 2023.

The following table summarizes the Company’s senior unsecured notes issuances during the six months ended June 30, 2023 (dollars in thousands):

Issue Date	Amount		Coupon Rate		Maturity Year
January 17, 2023	$	400,000	5.25	%	2032
May 10, 2023(1)	350,000		5.25	%	2032

_______________________________________

(1)In May 2023, the Company issued $350 million of 5.25% senior unsecured notes due 2032, which constituted an additional issuance of, and are treated as a single series with, the $400 million of senior unsecured notes due 2032 issued in January 2023.

During the three and six months ended June 30, 2023, there were no repurchases or redemptions of senior unsecured notes.

During the year ended December 31, 2022, there were no issuances, repurchases, or redemptions of senior unsecured notes.

Mortgage Debt

At June 30, 2023 and December 31, 2022, the Company had $343 million and $345 million, respectively, in aggregate principal of mortgage debt outstanding, which was secured by 15 outpatient medical buildings and 3 CCRCs, with an aggregate carrying value of $778 million and $793 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 each of the three months ended June 30, 2023 and 2022, the Company made aggregate principal repayments of mortgage debt of $1 million. During each of the six months ended June 30, 2023 and 2022, the Company made aggregate principal repayments of mortgage debt of $3 million.

The Company has $142 million of mortgage debt secured by a portfolio of 13 outpatient medical buildings that matures in May 2026. In April 2022, the Company terminated its existing interest rate cap instruments associated with this variable rate mortgage debt and entered into two interest rate swap instruments that are designated as cash flow hedges and mature in May 2026. In February 2023, the agreements associated with this variable rate mortgage debt were amended to change the interest rate benchmarks from LIBOR to SOFR, effective March 2023. Concurrently, the Company modified the related interest rate swap instruments to reflect the change in the interest rate benchmarks from LIBOR to SOFR (see Note 17). The variable rate mortgage debt associated with these interest rate swap instruments is reported as fixed rate debt due to the Company having effectively established a fixed interest rate for the underlying debt instrument.

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Debt Maturities

The following table summarizes the Company’s stated debt maturities and scheduled principal repayments at June 30, 2023 (dollars in thousands):

							Senior Unsecured Notes(2)				Mortgage Debt(3)
Year	Bank Line  of Credit		Commercial Paper(1)		Term Loans		Amount		Interest Rate		Amount		Interest Rate		Total
2023	$	—	$	—	$	—	$	—	—	%	$	87,471	3.80	%	$	87,471
2024	—		—		—		—		—	%	7,024		6.61	%	7,024
2025	—		—		—		800,000		3.92	%	3,209		3.82	%	803,209
2026	—		329,000		—		650,000		3.40	%	244,523		4.44	%	1,223,523
2027	—		—		500,000		450,000		1.54	%	366		5.91	%	950,366
Thereafter	—		—		—		3,550,000		3.92	%	—		—	%	3,550,000
	—		329,000		500,000		5,450,000				342,593				6,621,593
Premiums, (discounts), and debt issuance costs, net	—		—		(3,618)		(50,496)				1,173				(52,941)
	$	—	$	329,000	$	496,382	$	5,399,504			$	343,766			$	6,568,652

_______________________________________

(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)Effective interest rates on the senior unsecured notes range from 1.54% to 6.87% with a weighted average effective interest rate of 3.66% and a weighted average maturity of 6 years.

(3)Effective interest rates on the mortgage debt range from 3.44% to 8.76% with a weighted average effective interest rate of 4.31% and a weighted average maturity of 2 years. These interest rates include the impact of designated interest rate swap instruments, which effectively fix the interest rate on certain variable rate debt.

NOTE 10.  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 and Other Partnerships

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 Internal Revenue 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.

Additionally, the Company owns a 49% interest in the Lab JV (see Note 7). If the property in the joint venture 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.

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NOTE 11.  Equity and Redeemable Noncontrolling Interests

Dividends

On July 27, 2023, 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 18, 2023 to stockholders of record as of the close of business on August 7, 2023.

During each of the three months ended June 30, 2023 and 2022, the Company declared and paid common stock cash dividends of $0.30 per share. During each of the six months ended June 30, 2023 and 2022, the Company declared and paid common stock cash dividends of $0.60 per share.

At-The-Market Equity Offering Program

In February 2023, in connection with the Reorganization, the Company terminated the previous at-the-market equity offering program (as amended from time to time, the “2020 ATM Program”) and established a new at-the-market equity offering program (the “2023 ATM Program” and, together with the 2020 ATM Program, the “ATM Programs”). The ATM Programs allow for the sale of shares of common stock having an aggregate gross sales price of up to $1.5 billion (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 (each, an “ATM forward contract”). The use of ATM forward contracts allows the Company to lock in a share price on the sale of shares at the time the ATM forward contract becomes effective, but defer receiving the proceeds from the sale of shares until a later date.

ATM forward contracts generally have a one to two 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 ATM 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 ATM forward contract.

At June 30, 2023, $1.5 billion of the Company’s common stock remained available for sale under the 2023 ATM Program.

ATM Forward Contracts

During the year ended December 31, 2021, the Company utilized the forward provisions under the 2020 ATM Program to allow for the sale of an aggregate of 9.1 million shares of its common stock at an initial weighted average net price of $35.25 per share, after commissions. The Company did not enter into any forward contracts under the 2020 ATM Program during the year ended December 31, 2022. In December 2022, the Company settled all 9.1 million shares previously outstanding under ATM forward contracts at a weighted average net price of $34.01 per share, after commissions, resulting in net proceeds of $308 million. During the three and six months ended June 30, 2023, the Company did not utilize the forward provisions under the ATM Programs.

ATM Direct Issuances

During each of the three and six months ended June 30, 2023 and June 30, 2022, there were no direct issuances of shares of common stock under the ATM Programs.

Share Repurchase Program

On August 1, 2022, the Company’s Board of Directors approved a share repurchase program under which the Company may acquire shares of its common stock in the open market up to an aggregate purchase price of $500 million (the “Share Repurchase Program”). Purchases of common stock under the Share Repurchase Program may be exercised at the Company’s discretion with the timing and number of shares repurchased depending on a variety of factors, including price, corporate and regulatory requirements, and other corporate liquidity requirements and priorities. The Share Repurchase Program expires in August 2024 and may be suspended or terminated at any time without prior notice. Under Maryland General Corporation Law, outstanding shares of common stock acquired by a corporation become authorized but unissued shares, which may be re-issued. In August 2022, the Company repurchased 2.1 million shares of its common stock at a weighted average price of $27.16 per share for a total of $56 million. During the three and six months ended June 30, 2023, there were no repurchases under the Share Repurchase Program. Therefore, at June 30, 2023, $444 million of the Company’s common stock remained available for repurchase under the Share Repurchase Program.

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Accumulated Other Comprehensive Income (Loss)

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

	June 30, 2023		December 31, 2022
Unrealized gains (losses) on derivatives, net	$	33,336	$	30,145
Supplemental Executive Retirement Plan minimum liability	(1,883)		(2,011)
Total accumulated other comprehensive income (loss)	$	31,453	$	28,134

The Company has a defined benefit pension plan, known as the Supplemental Executive Retirement Plan, with one plan participant, a former Chief Executive Officer (“CEO”) of the Company who departed in 2003. Changes to the Supplemental Executive Retirement Plan minimum liability are reflected in other comprehensive income (loss).

Noncontrolling Interests

Redeemable Noncontrolling Interests

Arrangements with noncontrolling interest holders are assessed for appropriate balance sheet classification based on the redemption and other rights held by the noncontrolling interest holder. Certain of the Company’s noncontrolling interest holders have the ability to put their equity interests to the Company upon specified events or after the passage of a predetermined period of time. Each put option is payable in cash and subject to increases in redemption value in the event that the underlying property generates specified returns for the Company and meets certain promote thresholds pursuant to the respective agreements. Accordingly, the Company records redeemable noncontrolling interests outside of permanent equity and presents the redeemable noncontrolling interests at the greater of their carrying amount or redemption value at the end of each reporting period.

During the year ended December 31, 2022, one of the redeemable noncontrolling interests met the conditions for redemption, but was not yet exercised as of June 30, 2023. The three remaining redeemable noncontrolling interests had not yet met the conditions for redemption as of June 30, 2023. Two of the interests will become redeemable following the passage of a predetermined amount of time. The third interest will become redeemable at the earlier of a predetermined passage of time or stabilization of the underlying development property. The Company expects the redemption conditions for all three interests to be met in 2023 and 2024. The values of the redeemable noncontrolling interests are subject to change based on the assessment of redemption value at each redemption date.

Healthpeak OP

Immediately following the Reorganization, Healthpeak Properties, Inc. was the initial sole member and 100% owner of Healthpeak OP. Subsequent to the Reorganization, certain employees of the Company (“OP Unitholders”) were issued approximately 2 million noncontrolling, non-managing member units in Healthpeak OP (“OP Units”). When certain conditions are met, the OP Unitholders have the right to require redemption of part or all of their OP Units for cash or shares of the Company’s common stock, at the Company’s option as managing member of Healthpeak OP. The per unit redemption amount is equal to either one share of the Company’s common stock or cash equal to the fair value of a share of common stock at the time of redemption. The Company classifies the OP Units in permanent equity because it may elect, in its sole discretion, to issue shares of its common stock to OP Unitholders who choose to redeem their OP Units rather than using cash. None of the outstanding OP Units met the criteria for redemption as of June 30, 2023.

DownREITs

The non-managing member units of the Company’s DownREITs are exchangeable for an amount of cash approximating the then-current market value of shares of the Company’s common stock or, at the Company’s option, shares of the Company’s common stock (subject to certain adjustments, such as stock splits and reclassifications). Upon exchange of DownREIT units for the Company’s common stock, the carrying amount of the DownREIT units is reclassified to stockholders’ equity. At June 30, 2023, there were five million DownREIT units (seven million shares of Healthpeak common stock are issuable upon conversion) outstanding in seven DownREIT LLCs, for all of which the Company acts as the managing member. At June 30, 2023, the carrying and market values of the five million DownREIT units were $200 million and $146 million, respectively. At December 31, 2022, the carrying and market values of the five million DownREIT units were $200 million and $183 million, respectively.

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NOTE 12.  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, 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.

Certain 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 11 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 forward agreements under its ATM Programs 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 each of the three and six months ended June 30, 2023 and 2022 was zero weighted-average incremental shares from 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,
	2023		2022		2023		2022
Numerator
Income (loss) from continuing operations	$	56,199	$	69,301	$	190,706	$	144,327
Noncontrolling interests' share in continuing operations	(4,300)		(3,955)		(19,855)		(7,685)
Income (loss) from continuing operations attributable to Healthpeak Properties, Inc.	51,899		65,346		170,851		136,642
Less: Participating securities' share in continuing operations	(149)		(281)		(1,402)		(2,258)
Income (loss) from continuing operations applicable to common shares	51,750		65,065		169,449		134,384
Income (loss) from discontinued operations	—		2,992		—		3,309
Net income (loss) applicable to common shares - basic and diluted	$	51,750	$	68,057	$	169,449	$	137,693
Denominator
Basic weighted average shares outstanding	547,026		539,558		546,936		539,456
Dilutive potential common shares - equity awards(1)	268		257		268		245
Diluted weighted average common shares	547,294		539,815		547,204		539,701
Basic earnings (loss) per common share
Continuing operations	$	0.09	$	0.12	$	0.31	$	0.25
Discontinued operations	—		0.01		—		0.01
Net income (loss) applicable to common shares	$	0.09	$	0.13	$	0.31	$	0.26
Diluted earnings (loss) per common share
Continuing operations	$	0.09	$	0.12	$	0.31	$	0.25
Discontinued operations	—		0.01		—		0.01
Net income (loss) applicable to common shares	$	0.09	$	0.13	$	0.31	$	0.26

_______________________________________

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

For the three and six months ended June 30, 2023, forward equity sales agreements had no dilutive impact as no shares were outstanding under ATM forward contracts during the period. For the three and six months ended June 30, 2022, the 9.1 million shares under forward equity sales agreements that had not been settled during the three and six months then ended were anti-dilutive.

For the three and six months ended June 30, 2023 and 2022, all 7 million shares issuable upon conversion of DownREIT units were not included because they were anti-dilutive.

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NOTE 13.  Segment Disclosures

The Company’s reportable segments, based on how its chief operating decision maker (“CODM”) evaluates the business and allocates resources, are as follows: (i) lab, (ii) outpatient medical, and (iii) CCRC. The Company has non-reportable segments that are comprised primarily of the Company’s interests in an unconsolidated JV that owns 19 senior housing assets (the “SWF SH JV”), loans receivable, and marketable debt securities. These non-reportable segments have been presented on an aggregate basis within the Notes to the Consolidated Financial Statements herein. The accounting policies of the segments are the same as those described in Note 2 to the Consolidated Financial Statements in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2022 filed with the SEC, as updated by Note 2 herein.

During the second quarter of 2023, the Company changed the name of its “life science” and “medical office” segments to “lab” and “outpatient medical,” respectively. The segment name changes did not result in any changes to the composition of the Company’s segments or information reviewed by its CODM, and therefore, had no impact on the Company’s historical results of segment operations.

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; 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 are non-GAAP supplemental measures that are calculated as NOI and Adjusted NOI from consolidated properties, plus the Company’s share of NOI and Adjusted NOI from unconsolidated joint ventures (calculated by applying the Company’s actual ownership percentage for the period), less noncontrolling interests’ share of NOI and Adjusted NOI from consolidated joint ventures (calculated by applying the Company’s actual ownership percentage for the period). Management utilizes its share of NOI and Adjusted NOI in assessing its performance as the Company has various joint ventures that contribute to its performance. The Company does not control its unconsolidated joint ventures, and the Company’s share of amounts from unconsolidated joint ventures do not represent the Company’s legal claim to such items. The Company’s share of NOI and Adjusted NOI should not be considered a substitute for, and should only be considered together with and as a supplement to, the Company’s financial information presented in accordance with GAAP. 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 debt securities, other assets, real estate assets held for sale and discontinued operations, and liabilities related to assets held for sale.

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

For the three months ended June 30, 2023:

	Lab		Outpatient Medical		CCRC		Other Non-reportable		Corporate Non-segment		Total
Total revenues	$	223,306	$	186,661	$	130,184	$	5,279	$	—	$	545,430
Government grant income(1)	—		—		47		—		—		47
Less: Interest income	—		—		—		(5,279)		—		(5,279)
Healthpeak’s share of unconsolidated joint venture total revenues	1,928		754		—		20,261		—		22,943
Noncontrolling interests’ share of consolidated joint venture total revenues	(151)		(8,665)		—		—		—		(8,816)
Operating expenses	(54,832)		(65,350)		(101,655)		—		—		(221,837)
Healthpeak’s share of unconsolidated joint venture operating expenses	(848)		(288)		—		(14,618)		—		(15,754)
Noncontrolling interests’ share of consolidated joint venture operating expenses	35		2,409		—		—		—		2,444
Adjustments to NOI(2)	(14,943)		(4,008)		(728)		(9)		—		(19,688)
Adjusted NOI	154,495		111,513		27,848		5,634		—		299,490
Plus: Adjustments to NOI(2)	14,943		4,008		728		9		—		19,688
Interest income	—		—		—		5,279		—		5,279
Interest expense	—		(1,924)		(1,823)		—		(45,327)		(49,074)
Depreciation and amortization	(93,235)		(71,722)		(32,616)		—		—		(197,573)
General and administrative	—		—		—		—		(25,936)		(25,936)
Transaction costs	—		(16)		(278)		—		(343)		(637)
Impairments and loan loss reserves, net	—		—		—		(2,607)		—		(2,607)
Gain (loss) on sales of real estate, net	—		—		—		4,885		—		4,885
Other income (expense), net	(2)		235		674		(19)		1,067		1,955
Less: Government grant income	—		—		(47)		—		—		(47)
Less: Healthpeak’s share of unconsolidated joint venture NOI	(1,080)		(466)		—		(5,643)		—		(7,189)
Plus: Noncontrolling interests’ share of consolidated joint venture NOI	116		6,256		—		—		—		6,372
Income (loss) before income taxes and equity income (loss) from unconsolidated joint ventures	75,237		47,884		(5,514)		7,538		(70,539)		54,606
Income tax benefit (expense)	—		—		—		—		(1,136)		(1,136)
Equity income (loss) from unconsolidated joint ventures	1,314		184		—		1,231		—		2,729
Income (loss) from continuing operations	76,551		48,068		(5,514)		8,769		(71,675)		56,199
Income (loss) from discontinued operations	—		—		—		—		—		—
Net income (loss)	$	76,551	$	48,068	$	(5,514)	$	8,769	$	(71,675)	$	56,199

______________________________________________________________________________

(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, 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.

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For the three months ended June 30, 2022:

	Lab		Outpatient Medical		CCRC		Other Non-reportable		Corporate Non-segment		Total
Total revenues	$	207,771	$	179,308	$	125,360	$	5,493	$	—	$	517,932
Government grant income(1)	—		—		209		—		—		209
Less: Interest income	—		—		—		(5,493)		—		(5,493)
Healthpeak’s share of unconsolidated joint venture total revenues	1,267		761		—		18,215		—		20,243
Noncontrolling interests’ share of consolidated joint venture total revenues	(62)		(8,943)		—		—		—		(9,005)
Operating expenses	(49,446)		(63,321)		(102,277)		—		—		(215,044)
Healthpeak’s share of unconsolidated joint venture operating expenses	(483)		(301)		—		(14,150)		—		(14,934)
Noncontrolling interests’ share of consolidated joint venture operating expenses	19		2,726		—		—		—		2,745
Adjustments to NOI(2)	(21,644)		(2,949)		—		54		—		(24,539)
Adjusted NOI	137,422		107,281		23,292		4,119		—		272,114
Plus: Adjustments to NOI(2)	21,644		2,949		—		(54)		—		24,539
Interest income	—		—		—		5,493		—		5,493
Interest expense	—		(1,930)		(1,876)		—		(38,061)		(41,867)
Depreciation and amortization	(79,673)		(68,873)		(31,943)		—		—		(180,489)
General and administrative	—		—		—		—		(24,781)		(24,781)
Transaction costs	(35)		(70)		(64)		—		(443)		(612)
Impairments and loan loss reserves, net	—		—		—		(139)		—		(139)
Gain (loss) on sales of real estate, net	—		10,340		—		—		—		10,340
Other income (expense), net	29		1,264		630		18		920		2,861
Less: Government grant income	—		—		(209)		—		—		(209)
Less: Healthpeak’s share of unconsolidated joint venture NOI	(784)		(460)		—		(4,065)		—		(5,309)
Plus: Noncontrolling interests’ share of consolidated joint venture NOI	43		6,217		—		—		—		6,260
Income (loss) before income taxes and equity income (loss) from unconsolidated joint ventures	78,646		56,718		(10,170)		5,372		(62,365)		68,201
Income tax benefit (expense)	—		—		—		—		718		718
Equity income (loss) from unconsolidated joint ventures	148		211		—		23		—		382
Income (loss) from continuing operations	78,794		56,929		(10,170)		5,395		(61,647)		69,301
Income (loss) from discontinued operations	—		—		—		—		2,992		2,992
Net income (loss)	$	78,794	$	56,929	$	(10,170)	$	5,395	$	(58,655)	$	72,293

______________________________________________________________________________

(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.

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For the six months ended June 30, 2023:

	Lab		Outpatient Medical		CCRC		Other Non-reportable		Corporate Non-segment		Total
Total revenues	$	428,770	$	373,628	$	257,268	$	11,442	$	—	$	1,071,108
Government grant income(1)	—		—		184		—		—		184
Less: Interest income	—		—		—		(11,442)		—		(11,442)
Healthpeak’s share of unconsolidated joint venture total revenues	4,093		1,498		—		40,607		—		46,198
Healthpeak’s share of unconsolidated joint venture government grant income	—		—		—		229		—		229
Noncontrolling interests’ share of consolidated joint venture total revenues	(294)		(17,628)		—		—		—		(17,922)
Operating expenses	(112,397)		(129,749)		(202,779)		—		—		(444,925)
Healthpeak’s share of unconsolidated joint venture operating expenses	(2,030)		(595)		—		(29,624)		—		(32,249)
Noncontrolling interests’ share of consolidated joint venture operating expenses	75		5,004		—		—		—		5,079
Adjustments to NOI(2)	(15,776)		(7,825)		(678)		(31)		—		(24,310)
Adjusted NOI	302,441		224,333		53,995		11,181		—		591,950
Plus: Adjustments to NOI(2)	15,776		7,825		678		31		—		24,310
Interest income	—		—		—		11,442		—		11,442
Interest expense	—		(3,845)		(3,639)		—		(89,553)		(97,037)
Depreciation and amortization	(168,817)		(142,881)		(65,100)		—		—		(376,798)
General and administrative	—		—		—		—		(50,483)		(50,483)
Transaction costs	(158)		(148)		(497)		—		(2,259)		(3,062)
Impairments and loan loss reserves, net	—		—		—		(394)		—		(394)
Gain (loss) on sales of real estate, net	60,498		21,312		—		4,653		—		86,463
Other income (expense), net	2		439		7		(19)		2,298		2,727
Less: Government grant income	—		—		(184)		—		—		(184)
Less: Healthpeak’s share of unconsolidated joint venture NOI	(2,063)		(903)		—		(11,212)		—		(14,178)
Plus: Noncontrolling interests’ share of consolidated joint venture NOI	219		12,624		—		—		—		12,843
Income (loss) before income taxes and equity income (loss) from unconsolidated joint ventures	207,898		118,756		(14,740)		15,682		(139,997)		187,599
Income tax benefit (expense)	—		—		—		—		(1,438)		(1,438)
Equity income (loss) from unconsolidated joint ventures	1,911		374		—		2,260		—		4,545
Income (loss) from continuing operations	209,809		119,130		(14,740)		17,942		(141,435)		190,706
Income (loss) from discontinued operations	—		—		—		—		—		—
Net income (loss)	$	209,809	$	119,130	$	(14,740)	$	17,942	$	(141,435)	$	190,706

______________________________________________________________________________

(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.

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For the six months ended June 30, 2022:

	Lab		Outpatient Medical		CCRC		Other Non-reportable		Corporate Non-segment		Total
Total revenues	$	401,826	$	356,571	$	246,920	$	10,987	$	—	$	1,016,304
Government grant income(1)	—		—		6,762		—		—		6,762
Less: Interest income	—		—		—		(10,987)		—		(10,987)
Healthpeak’s share of unconsolidated joint venture total revenues	2,698		1,493		—		36,260		—		40,451
Healthpeak’s share of unconsolidated joint venture government grant income	—		—		333		315		—		648
Noncontrolling interests’ share of consolidated joint venture total revenues	(119)		(17,763)		—		—		—		(17,882)
Operating expenses	(97,635)		(124,491)		(200,165)		—		—		(422,291)
Healthpeak’s share of unconsolidated joint venture operating expenses	(966)		(600)		—		(28,205)		—		(29,771)
Noncontrolling interests’ share of consolidated joint venture operating expenses	38		5,328		—		—		—		5,366
Adjustments to NOI(2)	(35,756)		(6,495)		—		45		—		(42,206)
Adjusted NOI	270,086		214,043		53,850		8,415		—		546,394
Plus: Adjustments to NOI(2)	35,756		6,495		—		(45)		—		42,206
Interest income	—		—		—		10,987		—		10,987
Interest expense	—		(2,966)		(3,741)		—		(72,746)		(79,453)
Depreciation and amortization	(157,811)		(136,646)		(63,765)		—		—		(358,222)
General and administrative	—		—		—		—		(48,612)		(48,612)
Transaction costs	(327)		(74)		(64)		—		(443)		(908)
Impairments and loan loss reserves, net	—		—		—		(271)		—		(271)
Gain (loss) on sales of real estate, net	3,856		10,340		—		—		—		14,196
Other income (expense), net	20		12,201		7,141		(13)		1,828		21,177
Less: Government grant income	—		—		(6,762)		—		—		(6,762)
Less: Healthpeak’s share of unconsolidated joint venture NOI	(1,732)		(893)		(333)		(8,370)		—		(11,328)
Plus: Noncontrolling interests’ share of consolidated joint venture NOI	81		12,435		—		—		—		12,516
Income (loss) before income taxes and equity income (loss) from unconsolidated joint ventures	149,929		114,935		(13,674)		10,703		(119,973)		141,920
Income tax benefit (expense)	—		—		—		—		(59)		(59)
Equity income (loss) from unconsolidated joint ventures	1,114		411		539		402		—		2,466
Income (loss) from continuing operations	151,043		115,346		(13,135)		11,105		(120,032)		144,327
Income (loss) from discontinued operations	—		—		—		—		3,309		3,309
Net income (loss)	$	151,043	$	115,346	$	(13,135)	$	11,105	$	(116,723)	$	147,636

______________________________________________________________________________

(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.

See Notes 3, 4, 5, 6, 7, and 15 for significant transactions impacting the Company’s segment assets during the periods presented.

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NOTE 14.  Supplemental Cash Flow Information

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

	Six Months Ended June 30,
	2023		2022
Supplemental cash flow information:
Interest paid, net of capitalized interest	$	90,911	$	74,327
Income taxes paid (refunded)	2,855		(612)
Capitalized interest	28,182		16,320
Supplemental schedule of non-cash investing and financing activities:
Increase in ROU asset in exchange for new lease liability related to operating leases	121		508
Accrued construction costs	142,826		163,391
Net noncash impact from the consolidation of property previously held in an unconsolidated joint venture	993		—

Operating, investing, and financing cash flows in the Consolidated Statements of Cash Flows are reported inclusive of both cash flows from continuing operations and cash flows from discontinued operations. The following table summarizes certain cash flow information related to discontinued operations (in thousands):

	Six Months Ended June 30,
	2023		2022
Leasing costs, tenant improvements, and recurring capital expenditures	$	—	$	21
Development, redevelopment, and other major improvements of real estate	—		18
Depreciation and amortization of real estate, in-place lease, and other intangibles	—		—

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

	Six Months Ended June 30,
	2023		2022		2023		2022		2023		2022
	Continuing operations				Discontinued operations				Total
Beginning of period:
Cash and cash equivalents	$	72,032	$	158,287	$	—	$	7,707	$	72,032	$	165,994
Restricted cash	54,802		53,454		—		—		54,802		53,454
Cash, cash equivalents, and restricted cash	$	126,834	$	211,741	$	—	$	7,707	$	126,834	$	219,448
End of period:
Cash and cash equivalents	$	103,780	$	73,013	$	—	$	8,070	$	103,780	$	81,083
Restricted cash	56,745		54,815		—		—		56,745		54,815
Cash, cash equivalents, and restricted cash	$	160,525	$	127,828	$	—	$	8,070	$	160,525	$	135,898

Cash and Cash Equivalents

The Company maintains its cash and cash equivalents at financial institutions insured by the Federal Deposit Insurance Corporation (“FDIC”) up to $250,000 per institution. As of June 30, 2023 and December 31, 2022, the account balances at certain institutions exceeded the FDIC insurance coverage.

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NOTE 15.  Variable Interest Entities

Operating Subsidiary

Subsequent to the Reorganization, Healthpeak OP is the Company’s operating subsidiary and a limited liability company that has governing provisions that are the functional equivalent of a limited partnership. The Company holds a membership interest in Healthpeak OP, acts as the managing member of Healthpeak OP, and exercises full responsibility, discretion, and control over the day-to-day management of Healthpeak OP. Because the noncontrolling interests in Healthpeak OP do not have substantive liquidation rights, substantive kick-out rights without cause, or substantive participating rights, the Company has determined that Healthpeak OP is a VIE. The Company, as managing member, has the power to direct the core activities of Healthpeak OP that most significantly affect Healthpeak OP’s performance, and through its interest in Healthpeak OP, has both the right to receive benefits from and the obligation to absorb losses of Healthpeak OP. Accordingly, the Company is the primary beneficiary of Healthpeak OP and consolidates Healthpeak OP. As the Company conducts its business and holds its assets and liabilities through Healthpeak OP, the total consolidated assets and liabilities, income (losses), and cash flows of Healthpeak OP represent substantially all of the total consolidated assets and liabilities, income (losses), and cash flows of the Company.

Unconsolidated Variable Interest Entities

At June 30, 2023, the Company had investments in two unconsolidated VIE joint ventures. At December 31, 2022, the Company had investments in: (i) two unconsolidated VIE joint ventures and (ii) marketable debt securities of one VIE. 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 and Needham Land Parcel JV discussed below), it has no formal involvement in these VIEs beyond its investments.

Debt Securities Investment. At December 31, 2022, the Company held $22 million of commercial mortgage-backed securities (“CMBS”) issued by Federal Home Loan Mortgage Corporation (commonly referred to as Freddie Mac) through a special purpose entity that had been identified as a VIE because it was “thinly capitalized.” The CMBS issued by the VIE were backed by mortgage debt obligations on real estate assets. These securities were classified as held-to-maturity because the Company had the intent and ability to hold the securities until maturity. These securities matured on December 31, 2022, and the Company received the related proceeds in January 2023.

LLC Investment. The Company holds a limited partner ownership interest in an unconsolidated LLC (“LLC Investment”) 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 three hospitals as well as senior housing real estate. Any assets generated by the entity may only be used to settle its contractual obligations (primarily capital expenditures and debt service payments).

Needham Land Parcel JV. In December 2021, the Company acquired a 38% interest in a lab development joint venture in Needham, Massachusetts for $13 million. Current equity at risk is not sufficient to finance the joint venture’s activities. The assets and liabilities of the entity primarily consist of real estate and debt service obligations. Any assets generated by the entity may only be used to settle its contractual obligations (primarily development costs and debt service payments). See Note 7 for additional descriptions of the nature, purpose, and operating activities of this unconsolidated VIE and interests therein.

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, 2023 was as follows (in thousands):

VIE Type	Asset Type	Maximum Loss Exposure and Carrying Amount(1)
LLC Investment	Other assets, net	$	14,985
Needham Land Parcel JV	Investments in and advances to unconsolidated joint ventures	15,697

_______________________________________

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

As of June 30, 2023, 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).

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Consolidated Variable Interest Entities

The Company’s consolidated total assets and total liabilities at June 30, 2023 and December 31, 2022 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 outpatient medical buildings (“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.

Lab JVs.  The Company holds a 98% or greater ownership interest in multiple joint venture entities that own and lease lab buildings (the “Lab JVs”). The Lab JVs are VIEs as the members share in certain decisions of the entities, but substantially all of the activities are performed on behalf of the Company. The Company consolidates the Lab 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 Lab JVs primarily consist of leased properties (net real estate), rents receivable, and cash and cash equivalents; their obligations primarily consist of capital expenditures for the properties. Assets generated by the Lab JVs may only be used to settle their contractual obligations. Refer to Note 11 for a discussion of certain put options associated with the Lab JVs.

MSREI 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 outpatient medical buildings (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.

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).

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Total assets and total liabilities include VIE assets and liabilities, excluding those of Healthpeak OP, as follows (in thousands):

	June 30, 2023		December 31, 2022
Assets
Buildings and improvements	$	2,361,693	$	2,356,905
Development costs and construction in progress	53,917		58,499
Land	314,865		324,714
Accumulated depreciation and amortization	(633,506)		(623,244)
Net real estate	2,096,969		2,116,874
Accounts receivable, net	4,322		6,893
Cash and cash equivalents	22,243		20,586
Restricted cash	489		354
Intangible assets, net	65,227		73,860
Assets held for sale, net	—		30,355
Right-of-use asset, net	98,451		99,376
Other assets, net	76,603		73,690
Total assets	$	2,364,304	$	2,421,988
Liabilities
Mortgage debt	$	144,736	$	144,604
Intangible liabilities, net	13,462		15,066
Liabilities related to assets held for sale, net	—		401
Lease liability	99,372		99,039
Accounts payable, accrued liabilities, and other liabilities	59,709		68,979
Deferred revenue	48,907		39,661
Total liabilities	$	366,186	$	367,750

Total assets and total liabilities related to assets held for sale include VIE assets and liabilities, excluding those of Healthpeak OP, as follows (in thousands):

	June 30, 2023		December 31, 2022
Assets
Buildings and improvements	$	—	$	39,934
Land	—		1,926
Accumulated depreciation and amortization	—		(15,612)
Net real estate	—		26,248
Intangible assets, net	—		215
Other assets, net	—		3,892
Total assets	$	—	$	30,355
Liabilities
Deferred revenue	$	—	$	401
Total liabilities	$	—	$	401

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NOTE 16.  Fair Value Measurements

The table below summarizes the carrying amounts and fair values of the Company’s financial instruments either recorded or disclosed on a recurring basis (in thousands):

	June 30, 2023(3)				December 31, 2022(3)
	Carrying Value		Fair Value		Carrying Value		Fair Value
Loans receivable, net(2)	$	214,030	$	218,864	$	374,832	$	369,425
Marketable debt securities(2)	—		—		21,702		21,702
Interest rate swap instruments(2)	33,450		33,450		30,259		30,259
Bank line of credit and commercial paper(2)	329,000		329,000		995,606		995,606
Term loans(2)	496,382		496,382		495,957		495,957
Senior unsecured notes(1)	5,399,504		4,981,027		4,659,451		4,238,124
Mortgage debt(2)	343,766		320,866		346,599		330,867

_______________________________________

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

(2)Level 2: Fair value is 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, interest rate swap instruments, and mortgage debt, standardized pricing models in which significant inputs or value drivers are observable in active markets. For bank line of credit, commercial paper, and term loans, 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, 2023 and year ended December 31, 2022, there were no material transfers of financial assets or liabilities within the fair value hierarchy.

NOTE 17.  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 and their related potential impact on future earnings and cash flows. The Company does not use derivative instruments for speculative or trading purposes. At June 30, 2023, a one percentage point increase or decrease in the underlying interest rate curve would result in a corresponding increase or decrease in the fair value of the derivative instruments by approximately $20 million.

In April 2021, the Company executed two interest rate cap instruments on $142 million of variable rate mortgage debt secured by a portfolio of outpatient medical buildings (see Note 9). During the three and six months ended June 30, 2022, the Company recognized a $0.1 million and $2 million increase, respectively, in the fair value of the interest rate cap instruments within other income (expense), net. In April 2022, the Company terminated these interest rate cap instruments and entered into two interest rate swap instruments that are designated as cash flow hedges and mature in May 2026. In February 2023, the Company modified these two interest rate swap instruments to reflect the change in the related variable rate mortgage debt’s interest rate benchmarks from LIBOR to SOFR (see Note 9). The Company applied certain practical expedients provided by the reference rate reform ASUs in connection with the modifications to these cash flow hedges (see Note 2).

In August 2022, the Company entered into two forward-starting interest rate swap instruments on the $500 million aggregate principal amount of the Term Loan Facilities (see Note 9). The interest rate swap instruments are designated as cash flow hedges.

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The following table summarizes the Company’s interest rate swap instruments (in thousands):

							Fair Value(2)
Date Entered	Maturity Date	Hedge Designation	Notional Amount		Pay Rate(1)	Receive Rate(1)	June 30, 2023		December 31, 2022
April 2022(3)	May 2026	Cash flow	$	51,100	4.99 %	USD-SOFR w/ -5 Day Lookback + 2.50%	$	2,525	$	2,300
April 2022(3)	May 2026	Cash flow	91,000		4.54 %	USD-SOFR w/ -5 Day Lookback + 2.05%	4,496		4,096
August 2022(3)	February 2027	Cash flow	250,000		2.60 %	1 mo. USD-SOFR CME Term	12,659		11,299
August 2022(3)	August 2027	Cash flow	250,000		2.54 %	1 mo. USD-SOFR CME Term	13,770		12,564

_____________________________

(1)Pay rates and receive rates are as of June 30, 2023. As of December 31, 2022, the interest rate swap instrument with a $51 million notional amount had a pay rate of 5.08% and a receive rate of 1 mo. USD-LIBOR-BBA + 2.50%. As of December 31, 2022, the interest rate swap instrument with a $91 million notional amount had a pay rate of 4.63% and a receive rate of 1 mo. USD-LIBOR-BBA + 2.05%.

(2)At each of June 30, 2023 and December 31, 2022, the interest rate swap instruments were in an asset position. Derivative assets are recorded at fair value in other assets, net on the Consolidated Balance Sheets.

(3)Represents interest rate swap instruments that hedge fluctuations in interest payments on variable rate debt by converting the interest rates to fixed interest rates. The changes in fair value of designated derivatives that qualify as cash flow hedges are recorded in accumulated other comprehensive income (loss) on the Consolidated Balance Sheets.

NOTE 18.    Accounts Payable, Accrued Liabilities, and Other Liabilities

The following table summarizes the Company’s accounts payable, accrued liabilities, and other liabilities (in thousands):

	June 30, 2023		December 31, 2022
Refundable entrance fees	$	257,624	$	268,972
Accrued construction costs	142,826		178,626
Accrued interest	59,641		59,291
Other accounts payable and accrued liabilities(1)	222,673		265,596
Accounts payable, accrued liabilities, and other liabilities	$	682,764	$	772,485

_______________________________________

(1)As of June 30, 2023 and December 31, 2022, includes $11 million and $15 million, respectively, of severance-related obligations associated with the departure of a former CEO in October 2022 that had not yet been paid.

NOTE 19.    Deferred Revenue

The following table summarizes the Company’s deferred revenue, excluding deferred revenue related to assets classified as held for sale (in thousands):

	June 30, 2023		December 31, 2022
Nonrefundable entrance fees(1)	$	537,821	$	518,573
Other deferred revenue(2)	344,049		325,503
Deferred revenue	$	881,870	$	844,076

_______________________________________

(1)During the three and six months ended June 30, 2023, the Company collected nonrefundable entrance fees of $31 million and $60 million, respectively, and recognized amortization of $20 million and $40 million, respectively. During the three and six months ended June 30, 2022, the Company collected nonrefundable entrance fees of $29 million and $50 million, respectively, and recognized amortization of $19 million and $38 million, respectively. The amortization of nonrefundable entrance fees is included within resident fees and services on the Consolidated Statements of Operations.

(2)Other deferred revenue is primarily comprised of prepaid rent, deferred rent, and tenant-funded tenant improvements owned by the Company. During the three and six months ended June 30, 2023, the Company recognized amortization related to other deferred revenue of $18 million and $31 million, respectively. During the three and six months ended June 30, 2022, the Company recognized amortization related to other deferred revenue of $11 million and $20 million, respectively. The amortization of other deferred revenue is included in rental and related revenues on the Consolidated Statements of Operations.

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

On February 10, 2023, we completed our corporate reorganization (the “Reorganization”) into an umbrella partnership REIT (“UPREIT”). Substantially all of our business is conducted through Healthpeak OP, LLC (“Healthpeak OP”). We are the managing member of Healthpeak OP and do not have material assets or liabilities, other than through our investment in Healthpeak OP.

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 on Form 10-Q.

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, 2022 and in Part II, Item 1A. “Risk Factors” in our Quarterly Report on Form 10-Q for the quarter ended March 31, 2023, 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:

•macroeconomic trends, including inflation, interest rates, labor costs, and unemployment;

•the ability of our existing and future tenants, operators, and borrowers to conduct their respective businesses in a manner that generates sufficient income to make rent and loan payments to us;

•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 real estate investments in the healthcare property sector, which makes us more vulnerable to a downturn in a specific sector than if we invested across multiple sectors;

•the illiquidity of real estate investments;

•our ability to identify and secure new or replacement tenants and operators;

•our property development, redevelopment, and tenant improvement activity risks, including project abandonments, project delays, and lower profits than expected;

•changes within the industries in which we operate;

•significant regulation, funding requirements, and uncertainty faced by our lab tenants;

•the ability of the hospitals on whose campuses our outpatient medical buildings are located and their affiliated healthcare systems to remain competitive or financially viable;

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

•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”);

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•economic conditions, natural disasters, weather, and other conditions that negatively affect geographic areas where we have concentrated investments;

•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 fixed rent escalators, 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 foreclose or exercise rights on collateral securing our real estate-related loans;

•investment of substantial resources and time in transactions that are not consummated;

•our ability to successfully integrate or operate acquisitions;

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

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

•epidemics, pandemics, or other infectious diseases, including the coronavirus disease (“Covid”), and health and safety measures intended to reduce their spread;

•the loss or limited availability of our key personnel;

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

•increased borrowing costs, including due to rising interest rates;

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

•the availability of external capital on acceptable terms or at all, including due to rising interest rates, changes in our credit ratings and the value of our common stock, volatility or uncertainty in the capital markets, and other factors;

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

•bank failures or other events affecting financial institutions;

•the failure of our tenants, operators, and borrowers 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 senior housing properties;

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

•laws or regulations prohibiting eviction of our tenants;

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

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

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

•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 distributions;

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

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

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

•Market Trends and Uncertainties

•Overview of Transactions

•Dividends

•Results of Operations

•Liquidity and Capital Resources

•Non-GAAP Financial Measures Reconciliations

•Critical Accounting Estimates

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. As noted above, we completed our Reorganization on February 10, 2023, and following that date, we hold substantially all of our assets and conduct our operations through the operating subsidiary, Healthpeak OP, LLC, a consolidated subsidiary of which we are the managing member. We are a Maryland corporation and qualify as a self-administered REIT. Our corporate headquarters are located in Denver, Colorado, and we have additional offices in California, Tennessee, and Massachusetts.

Our strategy is to invest in a diversified portfolio of high-quality healthcare properties across our three core asset classes of lab, outpatient medical, and continuing care retirement community (“CCRC”) real estate. Under the lab and outpatient medical segments, we invest through the acquisition, development, and management of lab buildings, outpatient medical buildings, and hospitals. Under the CCRC segment, our properties are operated through RIDEA structures. We have other non-reportable segments that are comprised primarily of loans receivable, marketable debt securities, and an interest in an unconsolidated joint venture that owns 19 senior housing assets (our “SWF SH JV”). These non-reportable segments have been presented on an aggregate basis herein.

During the second quarter of 2023, we changed the name of our “life science” and “medical office” segments to “lab” and “outpatient medical,” respectively. The segment name changes did not result in any changes to the composition of our segments, and therefore, had no impact on our historical results of segment operations.

At June 30, 2023, our portfolio of investments, including properties in our unconsolidated joint ventures, consisted of interests in 475 properties. The following table summarizes information for our reportable and other non-reportable segments for the three months ended June 30, 2023 (dollars in thousands):

Segment	Total Portfolio Adjusted NOI(1)		Percentage of Total Portfolio Adjusted NOI		Number of Properties
Lab	$	154,495	51.6	%	146
Outpatient medical	111,513		37.2	%	295
CCRC	27,848		9.3	%	15
Other non-reportable	5,634		1.9	%	19
	$	299,490	100	%	475

_______________________________________

(1)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 13 to the Consolidated Financial Statements for a reconciliation of Adjusted NOI by segment to net income (loss).

For a description of our significant activities during 2023, see “Item 2, Management’s Discussion and Analysis of Financial Condition and Results of Operations—Overview of Transactions” in this report.

In 2020, we concluded that the dispositions of our senior housing triple-net and senior housing operating property (“SHOP”) portfolios represented a strategic shift that had a major effect on our operations and financial results. Therefore, senior housing triple-net and SHOP assets are classified as discontinued operations in all periods presented herein. See Note 4 to the Consolidated Financial Statements for further information regarding discontinued operations.

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Business Strategy

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—lab, outpatient medical, 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 pharmaceutical and biotechnology companies, healthcare companies, operators, and service providers and are responsive to their space and capital needs. We provide high-quality property 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.

Market Trends and Uncertainties

Our operating results have been and will continue to be impacted by global and national economic and market conditions generally and by the local economic conditions where our properties are located.

Rising interest rates, high inflation, supply chain disruptions, ongoing geopolitical tensions, and increased volatility in public and private equity and fixed income markets have led to increased costs and limited the availability of capital. In addition, bank failures and other adverse conditions in the financial or credit markets impacting financial institutions, or concerns or rumors about such events, may lead to disruptions in access to bank deposits and the ability of financial institutions to meet their obligations. To the extent our tenants or operators experience increased costs, liquidity constraints, or financing difficulties due to the foregoing macroeconomic and market conditions, they may be unable or unwilling to make payments or perform their obligations when due. In addition, increased interest rates could affect our borrowing costs and the fair value of our fixed rate instruments.

We have also been affected by significant inflation in construction costs over the past couple of years, which, together with rising costs of capital, have negatively affected the expected yields on our development and redevelopment projects. In addition, labor shortages and global supply chain disruptions, including procurement delays and long lead times on certain materials, have adversely impacted and could continue to adversely impact the scheduled completion and/or costs of these projects.

We continuously monitor the effects of domestic and global events, including but not limited to inflation, labor shortages, supply chain matters, rising interest rates, and distress in the financial markets on our operations and financial position, as well as on the operations and financial position of our tenants, operators, and borrowers, to ensure that we remain responsive and adaptable to the dynamic changes in our operating environment.

See Part I, Item 1A. “Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended December 31, 2022 and Part II, Item 1A. “Risk Factors” in our Quarterly Report on Form 10-Q for the quarter ended March 31, 2023 for additional discussion of the risks posed by macroeconomic conditions, as well as the uncertainties we and our tenants, operators, and borrowers may face as a result.

Overview of Transactions

As of February 10, 2023, we are structured as an UPREIT. This structure provides prospective sellers an alternative for disposing of property that has appreciated in value in a tax-deferred manner to Healthpeak OP and aligns our corporate structure with other publicly traded U.S. real estate investment trusts. Following the Reorganization, Healthpeak OP is the borrower under, and we are the guarantor of, all of the unsecured debt, which includes the Revolving Facility, Term Loan Facilities (each as defined below), commercial paper program, and senior unsecured notes. Our guarantee of the senior unsecured notes is full and unconditional and applicable to existing and future senior unsecured notes. The Reorganization did not have a material impact on our financial position, consolidated financial statements, outstanding debt securities, material debt facilities, or business operations.

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Real Estate Transactions

•In January 2023, we sold two lab buildings in Durham, North Carolina for $113 million.

•In January 2023, we acquired a lab land parcel in Cambridge, Massachusetts for $9 million.

•In March 2023, we sold two outpatient medical buildings for $32 million.

•In April 2023, we acquired the remaining 80% interest in one of the outpatient medical buildings in the Ventures IV unconsolidated joint venture for $4 million.

Development Activities

•During the six months ended June 30, 2023, the following projects were placed in service: (i) one lab development project with total costs of $171 million, (ii) a portion of one lab redevelopment project with total costs of $43 million, (iii) a portion of one lab development project with total costs of $32 million, (iv) one lab redevelopment project with total costs of $14 million, (v) one outpatient medical redevelopment project with total costs of $8 million, and (vi) one CCRC redevelopment project with total costs of $7 million.

Financing Activities

•In January 2023, we completed a public offering of $400 million aggregate principal amount of 5.25% senior unsecured notes due 2032.

•In May 2023, we completed a public offering of $350 million aggregate principal amount of 5.25% senior unsecured notes due 2032, which constituted an additional issuance of, and are treated as a single series with, the $400 million of senior unsecured notes due 2032 issued in January 2023.

Other Activities

•In February 2023, we received a partial principal repayment of $102 million on one secured loan with an original maturity of January 2023. The remaining $48 million outstanding was refinanced with us, extending the maturity date to January 2024 and converting the fixed interest rate on the loan to a variable rate based on SOFR (as defined below) plus a margin.

•In February 2023, we received full repayment of the outstanding balance of one $35 million secured loan.

•In April 2023, we received full repayment of the outstanding balance of one $14 million secured loan.

•In May 2023, we received full repayment of two outstanding secured loans with an aggregate balance of $12 million.

Dividends

The following table summarizes our common stock cash dividends declared in 2023:

Declaration Date	Record Date	Amount Per Share		Dividend Payment Date
February 1	February 9	$	0.30	February 23
April 27	May 8	0.30		May 19
July 27	August 7	0.30		August 18

Results of Operations

We evaluate our business and allocate resources among our reportable business segments: (i) lab, (ii) outpatient medical, and (iii) CCRC. Under the lab and outpatient medical segments, we invest through the acquisition, development, and management of lab buildings, outpatient medical buildings, and hospitals. Our CCRCs are operated through RIDEA structures. We have other non-reportable segments that are comprised primarily of: (i) an interest in our unconsolidated SWF SH JV, (ii) loans receivable, and (iii) marketable debt securities. These non-reportable segments have been presented on an aggregate basis herein. 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 fiscal year ended December 31, 2022 filed with the U.S. Securities and Exchange Commission (“SEC”), as updated by Note 2 to the Consolidated Financial Statements herein.

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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; NOI excludes all other financial statement amounts included in net income (loss) as presented in Note 13 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 are calculated as NOI and Adjusted NOI from consolidated properties, plus our share of NOI and Adjusted NOI from unconsolidated joint ventures (calculated by applying our actual ownership percentage for the period), less noncontrolling interests’ share of NOI and Adjusted NOI from consolidated joint ventures (calculated by applying our actual ownership percentage for the period). Management utilizes its share of NOI and Adjusted NOI in assessing its performance as we have various joint ventures that contribute to its performance. We do not control our unconsolidated joint ventures, and our share of amounts from unconsolidated joint ventures do not represent our legal claim to such items. Our share of NOI and Adjusted NOI should not be considered a substitute for, and should only be considered together with and as a supplement to, our financial information presented in accordance with GAAP.

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 13 to the Consolidated Financial Statements.

Operating expenses generally relate to leased outpatient medical and lab buildings, as well as CCRC facilities. We generally recover all or a portion of our leased outpatient medical and lab 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 portfolio of properties, excluding properties within the other non-reportable segments. We include properties from our consolidated portfolio, as well as properties owned by our unconsolidated joint ventures in Same-Store NOI and Adjusted NOI (see NOI definition above for further discussion regarding our use of pro-rata share information and its limitations). Same-Store NOI and Adjusted NOI exclude government grant income under the CARES Act. Same-Store Adjusted NOI also 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 and rental payments have commenced) 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 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.

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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.

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.

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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), deferred tax asset valuation allowances, and changes in tax legislation (“FFO as Adjusted”). These adjustments are net of tax, when applicable. 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.

Adjusted FFO (“AFFO”). AFFO is defined as FFO as Adjusted after excluding the impact of the following: (i) stock-based compensation amortization expense, (ii) amortization of deferred financing costs, net, (iii) straight-line rents, (iv) deferred income taxes, (v) amortization of above (below) market lease intangibles, net and (vi) other AFFO adjustments, which include: (a) non-cash interest related to DFLs and lease incentive amortization (reduction of straight-line rents), (b) actuarial reserves for insurance claims that have been incurred but not reported, and (c) 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. 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, and (iv) restructuring and severance-related charges. Furthermore, AFFO is adjusted for recurring capital expenditures, which are generally not considered when determining cash flows from operations or liquidity. 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. 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, and by presenting AFFO, we are assisting these parties in their evaluation. 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 and should only be considered together with and as a supplement to our financial information prepared in accordance with GAAP. For a reconciliation of net income (loss) to AFFO and other relevant disclosures, refer to “Non-GAAP Financial Measures Reconciliations” below.

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Comparison of the Three and Six Months Ended June 30, 2023 to the Three and Six Months Ended June 30, 2022

Overview

Three Months Ended June 30, 2023 and 2022(1)

The following table summarizes results for the three months ended June 30, 2023 and 2022 (in thousands):

	Three Months Ended June 30,
	2023		2022		Change
Net income (loss) applicable to common shares	$	51,750	$	68,057	$	(16,307)
Nareit FFO	245,412		236,154		9,258
FFO as Adjusted	249,202		236,478		12,724
AFFO	220,855		195,595		25,260

_______________________________________

(1)For the reconciliation of non-GAAP financial measures, see “Non-GAAP Financial Measures Reconciliations” below.

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

•an increase in depreciation, primarily as a result of: (i) development and redevelopment projects placed in service during 2022 and 2023 and (ii) 2022 acquisitions of real estate;

•an increase in interest expense, primarily as a result of: (i) senior unsecured notes issued during the first half of 2023, (ii) borrowings under the Term Loan Facilities, which were drawn during the fourth quarter of 2022, and (iii) higher interest rates under the commercial paper program, partially offset by lower borrowings on the commercial paper program;

•an increase in loan loss reserves primarily as a result of: (i) macroeconomic conditions and (ii) increased interest rates on variable rate loans;

•a decrease in income from discontinued operations primarily as a result of decreased gain on sales of real estate from the completion of dispositions of our senior housing portfolios;

•an increase in income tax expense primarily as a result of an increase in operating income associated with our CCRCs; and

•an increase in general and administrative expenses primarily as a result of severance-related charges associated with certain employee departures during the second quarter of 2023.

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

•an increase in NOI generated from our lab and outpatient medical segments related to: (i) development and redevelopment projects placed in service during 2022 and 2023, (ii) new leasing activity during 2022 and 2023 (including the impact to straight-line rents), and (iii) 2022 acquisitions of real estate;

•an increase in equity income from unconsolidated joint ventures primarily as a result of increased income from the South San Francisco JVs and the SWF SH JV.

Nareit FFO increased 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:

•depreciation and amortization expense; and

•gain on sales of 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:

•loan loss reserves; and

•severance-related charges.

AFFO increased 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, and lower AFFO capital expenditures during the period.

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Six Months Ended June 30, 2023 and 2022(1)

The following table summarizes results for the six months ended June 30, 2023 and 2022 (in thousands):

	Six Months Ended June 30,
	2023		2022		Change
Net income (loss) applicable to common shares	$	169,449	$	137,693	$	31,756
Nareit FFO	473,513		479,583		(6,070)
FFO as Adjusted	478,741		471,295		7,446
AFFO	428,509		397,625		30,884

_______________________________________

(1)For the reconciliation of non-GAAP financial measures, see “Non-GAAP Financial Measures Reconciliations” below.

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

•an increase in gains on sale of depreciable real estate related to lab and outpatient medical building sales during 2023 as compared to 2022;

•an increase in NOI generated from our lab and outpatient medical segments related to: (i) development and redevelopment projects placed in service during 2022 and 2023, (ii) new leasing activity during 2022 and 2023 (including the impact to straight-line rents), and (iii) 2022 acquisitions of real estate;

•a decrease in expenses incurred in 2022 for tenant relocation and other costs associated with the demolition of an outpatient medical building; and

•an increase in equity income from unconsolidated joint ventures primarily as a result of increased income from the South San Francisco JVs and the SWF SH JV.

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

•a gain on sale associated with the disposition of a hospital under a direct financing lease (“DFL”) in 2022;

•an increase in depreciation, primarily as a result of: (i) development and redevelopment projects placed in service during 2022 and 2023 and (ii) 2022 acquisitions of real estate;

•an increase in interest expense, primarily as a result of: (i) senior unsecured notes issued during the first half of 2023, (ii) borrowings under the Term Loan Facilities, which were drawn during the fourth quarter of 2022, and (iii) higher interest rates under the commercial paper program, partially offset by lower borrowings on the commercial paper program;

•an increase in loan loss reserves primarily as a result of: (i) macroeconomic conditions and (ii) increased interest rates on variable rate loans;

•a decrease in income from discontinued operations primarily as a result of decreased gain on sales of real estate from the completion of dispositions of our senior housing portfolios;

•an increase in income tax expense primarily as a result of an increase in operating income associated with our CCRCs;

•an increase in transaction costs, primarily as a result of expenses incurred in connection with our reorganization to an UPREIT structure in 2023;

•a decrease in government grant income received under the CARES Act in 2023; and

•an increase in general and administrative expenses primarily as a result of severance-related charges associated with certain employee departures during the second quarter of 2023.

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:

•gain on sales of depreciable real estate; and

•depreciation and amortization expense.

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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 gain on sale of a hospital under a DFL;

•the expenses for tenant relocation and other costs associated with the demolition of an outpatient medical building;

•loan loss reserves;

•transaction costs; and

•severance-related charges.

AFFO increased 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, and lower AFFO capital expenditures during the period.

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, 2023, our Same-Store consists of 413 properties representing properties acquired or placed in service and stabilized on or prior to April 1, 2022 and that remained in operations under a consistent reporting structure through June 30, 2023. For the six months ended June 30, 2023, our Same-Store consists of 406 properties representing properties acquired or placed in service and stabilized on or prior to January 1, 2022 and that remained in operations under a consistent reporting structure through June 30, 2023. Our total property portfolio consisted of 475 and 481 properties at June 30, 2023 and 2022, respectively. Included in our total property portfolio at each of June 30, 2023 and 2022 are 19 senior housing assets in our SWF SH JV.

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Lab

The following table summarizes results at and for the three months ended June 30, 2023 and 2022 (dollars and square feet in thousands, except per square foot data):

	SS									Total Portfolio
	Three Months Ended June 30,									Three Months Ended June 30,
	2023			2022			Change			2023			2022			Change
Rental and related revenues	$	176,479		$	167,433		$	9,046		$	223,306		$	207,771		$	15,535
Healthpeak’s share of unconsolidated joint venture total revenues	1,607			3,552			(1,945)			1,928			1,267			661
Noncontrolling interests’ share of consolidated joint venture total revenues	(35)			(32)			(3)			(151)			(62)			(89)
Operating expenses	(45,164)			(40,481)			(4,683)			(54,832)			(49,446)			(5,386)
Healthpeak’s share of unconsolidated joint venture operating expenses	(584)			(565)			(19)			(848)			(483)			(365)
Noncontrolling interests’ share of consolidated joint venture operating expenses	11			10			1			35			19			16
Adjustments to NOI(1)	(11,613)			(13,627)			2,014			(14,943)			(21,644)			6,701
Adjusted NOI	$	120,701		$	116,290		$	4,411		154,495			137,422			17,073
Less: non-SS Adjusted NOI										(33,794)			(21,132)			(12,662)
SS Adjusted NOI										$	120,701		$	116,290		$	4,411
Adjusted NOI % change							3.8		%
Property count(2)	121			121						146			149
End of period occupancy(3)	97.4		%	98.8		%				97.7		%	98.6		%
Average occupancy(3)	97.8		%	99.0		%				98.1		%	98.8		%
Average occupied square feet	9,181			9,276						10,585			10,607
Average annual total revenues per occupied square foot(4)	$	73		$	68					$	80		$	71
Average annual base rent per occupied square foot(5)	$	56		$	53					$	62		$	55

_______________________________________

(1)Represents adjustments to NOI in accordance with our definition of Adjusted NOI. Refer to “Non-GAAP Financial Measures” above for the definitions of NOI and Adjusted NOI. See Note 13 to the Consolidated Financial Statements for a reconciliation of Adjusted NOI by segment to net income (loss).

(2)From our second quarter 2022 presentation of Same-Store, we added: (i) five stabilized acquisitions, (ii) three stabilized redevelopments placed in service, (iii) two stabilized buildings that previously experienced a significant tenant relocation, and (iv) two stabilized developments placed in service, and we removed: (i) eight buildings that were placed into redevelopment, (ii) one asset that was placed into land held for development, and (iii) one building that experienced a significant tenant relocation.

(3)Refer to “Non-GAAP Financial Measures” above for the definition of Same-Store. Total Portfolio occupancy excludes any of the following: (i) developments, (ii) significant redevelopments, (iii) newly completed properties under lease-up, and (iv) properties 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, 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, and deferred revenues).

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

•annual rent escalations; and

•new leasing activity; partially offset by

•higher operating expenses.

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

•increased NOI from developments and redevelopments placed in service in 2022 and 2023; partially offset by

•decreased NOI from our 2022 and 2023 dispositions.

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The following table summarizes results at and for the six months ended June 30, 2023 and 2022 (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,
	2023			2022			Change			2023			2022			Change
Rental and related revenues	$	336,364		$	324,210		$	12,154		$	428,770		$	401,826		$	26,944
Healthpeak’s share of unconsolidated joint venture total revenues	3,443			5,573			(2,130)			4,093			2,698			1,395
Noncontrolling interests’ share of consolidated joint venture total revenues	(66)			(64)			(2)			(294)			(119)			(175)
Operating expenses	(91,460)			(79,382)			(12,078)			(112,397)			(97,635)			(14,762)
Healthpeak’s share of unconsolidated joint venture operating expenses	(1,453)			(1,125)			(328)			(2,030)			(966)			(1,064)
Noncontrolling interests’ share of consolidated joint venture operating expenses	22			20			2			75			38			37
Adjustments to NOI(2)	(11,129)			(24,462)			13,333			(15,776)			(35,756)			19,980
Adjusted NOI	$	235,721		$	224,770		$	10,951		302,441			270,086			32,355
Less: non-SS Adjusted NOI										(66,720)			(45,316)			(21,404)
SS Adjusted NOI										$	235,721		$	224,770		$	10,951
Adjusted NOI % change							4.9		%
Property count(3)	119			119						146			149
End of period occupancy(4)	97.4		%	98.8		%				97.7		%	98.6		%
Average occupancy(4)	98.1		%	98.7		%				98.4		%	98.5		%
Average occupied square feet	9,044			9,080						10,520			10,589
Average annual total revenues per occupied square foot(5)	$	73		$	68					$	80		$	70
Average annual base rent per occupied square foot(6)	$	55		$	52					$	61		$	54

_______________________________________

(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 the definitions of NOI and Adjusted NOI. See Note 13 to the Consolidated Financial Statements for a reconciliation of Adjusted NOI by segment to net income (loss).

(3)From our second quarter 2022 presentation of Same-Store, we added: (i) five stabilized acquisitions, (ii) two stabilized buildings that previously experienced a significant tenant relocation, (iii) two stabilized redevelopments placed in service, and (iv) one stabilized development placed in service, and we removed: (i) eight buildings that were placed into redevelopment and (ii) one building that experienced a significant tenant relocation.

(4)Refer to “Non-GAAP Financial Measures” above for the definition of Same-Store. Total Portfolio occupancy excludes any of the following: (i) developments, (ii) significant redevelopments, (iii) newly completed properties under lease-up, and (iv) properties held for sale.

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

(6)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; and

•new leasing activity; partially offset by

•higher operating expenses.

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

•increased NOI from developments and redevelopments placed in service in 2022 and 2023; partially offset by

•decreased NOI from our 2022 and 2023 dispositions.

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Outpatient Medical

The following table summarizes results at and for the three months ended June 30, 2023 and 2022 (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,
	2023			2022			Change			2023			2022			Change
Rental and related revenues	$	170,674		$	164,325		$	6,349		$	186,661		$	179,308		$	7,353
Healthpeak’s share of unconsolidated joint venture total revenues	719			715			4			754			761			(7)
Noncontrolling interests’ share of consolidated joint venture total revenues	(8,511)			(8,364)			(147)			(8,665)			(8,943)			278
Operating expenses	(58,023)			(55,127)			(2,896)			(65,350)			(63,321)			(2,029)
Healthpeak’s share of unconsolidated joint venture operating expenses	(289)			(294)			5			(288)			(301)			13
Noncontrolling interests’ share of consolidated joint venture operating expenses	2,397			2,517			(120)			2,409			2,726			(317)
Adjustments to NOI(2)	(3,505)			(2,853)			(652)			(4,008)			(2,949)			(1,059)
Adjusted NOI	$	103,462		$	100,919		$	2,543		111,513			107,281			4,232
Less: non-SS Adjusted NOI										(8,051)			(6,362)			(1,689)
SS Adjusted NOI										$	103,462		$	100,919		$	2,543
Adjusted NOI % change							2.5		%
Property count(3)	277			277						295			298
End of period occupancy(4)	91.4		%	91.3		%				90.1		%	89.9		%
Average occupancy(4)	91.4		%	91.5		%				90.1		%	89.9		%
Average occupied square feet	20,405			20,427						21,464			21,627
Average annual total revenues per occupied square foot(5)	$	34		$	33					$	35		$	34
Average annual base rent per occupied square foot(6)	$	27		$	26					$	28		$	27

___________________________________

(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 the definitions of NOI and Adjusted NOI. See Note 13 to the Consolidated Financial Statements for a reconciliation of Adjusted NOI by segment to net income (loss).

(3)From our second quarter 2022 presentation of Same-Store, we added: (i) 27 stabilized acquisitions, (ii) 3 stabilized developments placed in service, (iii) 1 stabilized redevelopment placed in service, and (iv) 3 redevelopments that were placed on hold, and we removed: (i) 2 assets that were sold, (ii) 1 asset that was classified as held for sale, and (iii) 1 asset that was placed into redevelopment.

(4)Refer to “Non-GAAP Financial Measures” above for the definition of Same-Store. Total Portfolio occupancy excludes any of the following: (i) developments, (ii) significant redevelopments, (iii) newly completed properties under lease-up, and (iv) properties held for sale.

(5)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).

(6)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 percentage-based rents; partially offset by

•higher operating expenses.

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 2022 acquisitions;

•increased occupancy in former redevelopment and development properties that have been placed in service; and

•business interruption proceeds related to a demolished asset; partially offset by

•decreased NOI from our 2022 and 2023 dispositions.

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The following table summarizes results at and for the six months ended June 30, 2023 and 2022 (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,
	2023			2022			Change			2023			2022			Change
Rental and related revenues	$	336,237		$	323,924		$	12,313		$	373,628		$	355,403		$	18,225
Income from direct financing leases	—			—			—			—			1,168			(1,168)
Healthpeak’s share of unconsolidated joint venture total revenues	1,413			1,406			7			1,498			1,493			5
Noncontrolling interests’ share of consolidated joint venture total revenues	(16,959)			(16,639)			(320)			(17,628)			(17,763)			135
Operating expenses	(113,439)			(107,727)			(5,712)			(129,749)			(124,491)			(5,258)
Healthpeak’s share of unconsolidated joint venture operating expenses	(588)			(586)			(2)			(595)			(600)			5
Noncontrolling interests’ share of consolidated joint venture operating expenses	4,825			4,937			(112)			5,004			5,328			(324)
Adjustments to NOI(2)	(6,338)			(6,426)			88			(7,825)			(6,495)			(1,330)
Adjusted NOI	$	205,151		$	198,889		$	6,262		224,333			214,043			10,290
Less: non-SS Adjusted NOI										(19,182)			(15,154)			(4,028)
SS Adjusted NOI										$	205,151		$	198,889		$	6,262
Adjusted NOI % change							3.1		%
Property count(3)	272			272						295			298
End of period occupancy(4)	91.5		%	91.5		%				90.1		%	89.9		%
Average occupancy(4)	91.4		%	91.7		%				90.0		%	90.1		%
Average occupied square feet	20,197			20,242						21,487			21,661
Average annual total revenues per occupied square foot(5)	$	34		$	32					$	35		$	33
Average annual base rent per occupied square foot(6)	$	27		$	26					$	28		$	27

___________________________________

(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 the definitions of NOI and Adjusted NOI. See Note 13 to the Consolidated Financial Statements for a reconciliation of Adjusted NOI by segment to net income (loss).

(3)From our second quarter 2022 presentation of Same-Store, we added: (i) 25 stabilized acquisitions, (ii) 3 redevelopments that were placed on hold, and (iii) 2 stabilized developments placed in service, and we removed: (i) 2 assets that were sold, (ii) 1 asset that was classified as held for sale, and (iii) 1 asset that was placed into redevelopment.

(4)Refer to “Non-GAAP Financial Measures” above for the definition of Same-Store. Total Portfolio occupancy excludes any of the following: (i) developments, (ii) significant redevelopments, (iii) newly completed properties under lease-up, and (iv) properties held for sale.

(5)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).

(6)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; partially offset by

•higher operating expenses.

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 2022 acquisitions;

•business interruption proceeds related to a demolished asset; and

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

•decreased NOI from our 2022 and 2023 dispositions.

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Continuing Care Retirement Community

The following table summarizes results at and for the three months ended June 30, 2023 and 2022 (dollars in thousands, except per unit data):

	SS									Total Portfolio
	Three Months Ended June 30,									Three Months Ended June 30,
	2023			2022			Change			2023			2022			Change
Resident fees and services	$	129,999		$	125,360		$	4,639		$	130,184		$	125,360		$	4,824
Government grant income(1)	—			—			—			47			209			(162)
Operating expenses	(101,210)			(101,834)			624			(101,655)			(102,277)			622
Adjustments to NOI(2)	(728)			—			(728)			(728)			—			(728)
Adjusted NOI	$	28,061		$	23,526		$	4,535		27,848			23,292			4,556
Plus (less): non-SS adjustments										213			234			(21)
SS Adjusted NOI										$	28,061		$	23,526		$	4,535
Adjusted NOI % change							19.3		%
Property count(3)	15			15						15			15
Average occupancy(4)(5)	83.4		%	81.1		%				83.4		%	81.1		%
Average occupied units(6)	5,925			5,952						5,929			5,952
Average annual rent per occupied unit	$	87,763		$	84,247					$	87,860		$	84,388

_______________________________________

(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 the definitions of NOI and Adjusted NOI. See Note 13 to the Consolidated Financial Statements for a reconciliation of Adjusted NOI by segment to net income (loss).

(3)From our second quarter 2022 presentation of Same-Store, no properties were added or removed.

(4)Refer to “Non-GAAP Financial Measures” above for the definition of Same-Store. Total Portfolio occupancy excludes any of the following: (i) developments, (ii) significant redevelopments, (iii) newly completed properties under lease-up, and (iv) properties held for sale.

(5)The Total Portfolio and Same-Store increase in average occupancy for the period is primarily due to a decrease in available units from decommissioned senior nursing facility beds.

(6)Represents average occupied units as reported by the operators for the three-month period.

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

•increased rates for resident fees; and

•higher occupancy; partially offset by

•lower business interruption insurance proceeds.

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The following table summarizes results at and for the six months ended June 30, 2023 and 2022 (dollars in thousands, except per unit data):

	SS									Total Portfolio
	Six Months Ended June 30,									Six Months Ended June 30,
	2023			2022			Change			2023			2022			Change
Resident fees and services	$	257,084		$	246,920		$	10,164		$	257,268		$	246,920		$	10,348
Government grant income(1)	—			—			—			184			6,762			(6,578)
Healthpeak’s share of unconsolidated joint venture government grant income	—			—			—			—			333			(333)
Operating expenses	(201,888)			(199,232)			(2,656)			(202,779)			(200,165)			(2,614)
Adjustments to NOI(2)	(678)			—			(678)			(678)			—			(678)
Adjusted NOI	$	54,518		$	47,688		$	6,830		53,995			53,850			145
Plus: non-SS adjustments										523			(6,162)			6,685
SS Adjusted NOI										$	54,518		$	47,688		$	6,830
Adjusted NOI % change							14.3		%
Property count(3)	15			15						15			15
Average occupancy(4)(5)	83.3		%	81.0		%				83.3		%	81.0		%
Average occupied units(6)	5,916			5,946						5,920			5,946
Average annual rent per occupied unit	$	86,911		$	83,054					$	86,976		$	85,440

_______________________________________

(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 the definitions of NOI and Adjusted NOI. See Note 13 to the Consolidated Financial Statements for a reconciliation of Adjusted NOI by segment to net income (loss).

(3)From our second quarter 2022 presentation of Same-Store, no properties were added or removed.

(4)Refer to “Non-GAAP Financial Measures” above for the definition of Same-Store. Total Portfolio occupancy excludes any of the following: (i) developments, (ii) significant redevelopments, (iii) newly completed properties under lease-up, and (iv) properties held for sale.

(5)The Total Portfolio and Same-Store increase in average occupancy for the period is primarily due to a decrease in available units from decommissioned senior nursing facility beds.

(6)Represents average occupied units as reported by the operators for the six-month period.

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

•increased rates for resident fees; and

•higher occupancy; partially offset by

•higher costs of insurance, management fees, utilities, food, and repairs and maintenance; and

•lower business interruption insurance proceeds.

Total Portfolio Adjusted NOI increased primarily as a result of the aforementioned increases to Same-Store, partially offset by decreased government grant income received under the CARES Act.

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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, 2023 and 2022 (in thousands):

	Three Months Ended June 30,						Six Months Ended June 30,
	2023		2022		Change		2023		2022		Change
Interest income	$	5,279	$	5,493	$	(214)	$	11,442	$	10,987	$	455
Interest expense	49,074		41,867		7,207		97,037		79,453		17,584
Depreciation and amortization	197,573		180,489		17,084		376,798		358,222		18,576
General and administrative	25,936		24,781		1,155		50,483		48,612		1,871
Transaction costs	637		612		25		3,062		908		2,154
Impairments and loan loss reserves (recoveries), net	2,607		139		2,468		394		271		123
Gain (loss) on sales of real estate, net	4,885		10,340		(5,455)		86,463		14,196		72,267
Other income (expense), net	1,955		2,861		(906)		2,727		21,177		(18,450)
Income tax benefit (expense)	(1,136)		718		(1,854)		(1,438)		(59)		(1,379)
Equity income (loss) from unconsolidated joint ventures	2,729		382		2,347		4,545		2,466		2,079
Income (loss) from discontinued operations	—		2,992		(2,992)		—		3,309		(3,309)
Noncontrolling interests’ share in continuing operations	(4,300)		(3,955)		(345)		(19,855)		(7,685)		(12,170)

Interest income

Interest income increased for the six months ended June 30, 2023 primarily as a result of higher interest rates, partially offset by principal repayments on loans receivable in 2022 and 2023.

Interest expense

Interest expense increased for the three and six months ended June 30, 2023 primarily as a result of: (i) senior unsecured notes issued during the first half of 2023, (ii) borrowings under the Term Loan Facilities, which were drawn during the fourth quarter of 2022, and (iii) higher interest rates under the commercial paper program, partially offset by lower borrowings on the commercial paper program.

Depreciation and amortization expense

Depreciation and amortization expense increased for the three and six months ended June 30, 2023 primarily as a result of: (i) development and redevelopment projects placed in service during 2022 and 2023 and (ii) assets acquired during 2022. The increase in depreciation and amortization expense for the three and six months ended June 30, 2023 was partially offset by: (i) lower depreciation related to the deconsolidation of seven previously consolidated lab buildings in South San Francisco, California and (ii) dispositions of real estate in 2022 and 2023.

General and administrative expense

General and administrative expenses increased for the three and six months ended June 30, 2023 primarily as a result of severance-related charges associated with certain employee departures during the second quarter of 2023.

Transaction costs

Transaction costs increased for the six months ended June 30, 2023 primarily as a result of expenses incurred in connection with our reorganization to an UPREIT structure in 2023.

Impairments and loan loss reserves (recoveries), net

Impairments and loan loss reserves (recoveries), net increased for the three months ended June 30, 2023 as a result of an increase in loan loss reserves under the current expected credit losses model. The increase in loan loss reserves for the three months ended June 30, 2023 is primarily a result of: (i) macroeconomic conditions and (ii) increased interest rates on variable rate loans, partially offset by principal repayments on seller financing.

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Gain (loss) on sales of real estate, net

Gain (loss) on sales of real estate, net increased during the six months ended June 30, 2023 primarily as a result of: (i) the $60 million gain on sale of two lab buildings in Durham, North Carolina, which were sold in January 2023 and (ii) the $21 million gain on sales of two outpatient medical buildings, which were sold in March 2023, partially offset by: (i) the $4 million gain on sale of one lab building, which was sold during the three months ended March 31, 2022 and (ii) the $10 million gain on sales of three outpatient medical buildings and one outpatient medical land parcel, which were sold during the three months ended June 30, 2022. Refer to Note 4 to the Consolidated Financial Statements for additional information regarding dispositions of real estate and the associated gain (loss) on sales recognized.

Other income (expense), net

Other income decreased for the six months ended June 30, 2023 primarily due to: (i) a gain on sale associated with the disposition of a hospital under a DFL in 2022 and (ii) a decrease in government grant income received under the CARES Act in 2023, partially offset by expenses incurred in 2022 for tenant relocation and other costs associated with the demolition of an outpatient medical building.

Income tax benefit (expense)

Income tax expense increased for the three and six months ended June 30, 2023 primarily as a result of an increase in operating income associated with our CCRCs.

Equity income (loss) from unconsolidated joint ventures

Equity income (loss) from unconsolidated joint ventures increased for the three and six months ended June 30, 2023 primarily as a result of increased income from the South San Francisco JVs and the SWF SH JV.

Income (loss) from discontinued operations

Income from discontinued operations decreased for the three and six months ended June 30, 2023 primarily as a result of decreased gain on sales of real estate from the completion of dispositions of our senior housing portfolios.

Noncontrolling interests’ share in continuing operations

Noncontrolling interests’ share in continuing operations increased for the six months ended June 30, 2023 primarily as a result of a gain on sale of an outpatient medical building in a consolidated joint venture that was sold in 2023.

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 the next 12 months and for the foreseeable future for purposes of: (i) funding recurring operating expenses; (ii) meeting debt service requirements; and (iii) satisfying funding of distributions to our stockholders and non-controlling interest members. Distributions are made using a combination of cash flows from operations, funds available under our bank line of credit (the “Revolving Facility”) and commercial paper program, proceeds from the sale of properties, and other sources of cash available to us.

In addition to funding the activities above, our principal 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.

Our longer term liquidity needs include the items listed above as well as meeting debt service requirements.

We anticipate satisfying these future 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 Revolving Facility 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, including sales of common stock under the ATM Program (as defined below).

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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. Our two senior unsecured delayed draw term loans with an aggregate principal amount of $500 million (the “Term Loan Facilities”) and our Revolving Facility accrue interest at the Secured Overnight Financing Rate (“SOFR”) plus a margin that depends on the credit ratings of our senior unsecured long-term debt. We also pay a facility fee on the entire commitment under our Revolving Facility that depends upon our credit ratings. As of July 26, 2023, we had long-term credit ratings of Baa1 from Moody’s and BBB+ from S&P Global, and short-term credit ratings of P-2 from Moody’s and A-2 from S&P Global.

A downgrade in credit ratings by Moody’s and S&P Global may have a negative impact on the interest rates and facility fees for our Revolving Facility and Term Loan Facilities 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 ATM Program, 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 “Market Trends and Uncertainties” above for a more comprehensive discussion of the potential impact of economic and market conditions on our business.

Changes in Material Cash Requirements and Off-Balance Sheet Arrangements

Debt. Our material cash requirements related to debt increased by $71 million to $6.6 billion at June 30, 2023, when compared to December 31, 2022, primarily as a result of the January 2023 and May 2023 issuances of $750 million aggregate principal amount of 5.25% senior unsecured notes due 2032, partially offset by repayments of notes under our commercial paper program. As of June 30, 2023, we had $5.4 billion of senior unsecured notes and $329 million outstanding under our commercial paper program. See Note 9 to the Consolidated Financial Statements for additional information about our debt commitments.

Development and redevelopment commitments. Our material cash requirements related to development and redevelopment projects and Company-owned tenant improvements decreased by $64 million, to $188 million at June 30, 2023, when compared to December 31, 2022, primarily as a result of construction spend on and completion of existing projects in the first half of 2023 thereby decreasing the remaining commitment.

Construction loan commitments. Due to the terms of our SHOP seller financing notes receivable, as of June 30, 2023, we are obligated to provide additional loans up to $40 million to fund senior housing redevelopment capital expenditure projects. There was no change in our material cash requirements to provide this additional funding from December 31, 2022 to June 30, 2023. See Note 6 to the Consolidated Financial Statements for additional information.

Redeemable noncontrolling interests. Our material cash requirements related to redeemable noncontrolling interests decreased by $42 million to $64 million at June 30, 2023, when compared to December 31, 2022. Certain of our noncontrolling interest holders have the ability to put their equity interests to us upon specified events or after the passage of a predetermined period of time. Each put option is subject to changes in redemption value in the event that the underlying property generates specified returns for us and meets certain promote thresholds pursuant to the respective agreements. As of June 30, 2023, one of the redeemable noncontrolling interests has met the conditions for redemption, but was not yet exercised. See Note 11 to the Consolidated Financial Statements for additional information.

Distribution and Dividend Requirements. There have been no changes to our distribution and dividend requirements during the six months ended June 30, 2023.

Off-Balance Sheet Arrangements. We own interests in certain unconsolidated joint ventures as described in Note 7 to the Consolidated Financial Statements. Two of these joint ventures have mortgage debt of $88 million, of which our share is $40 million. Except in limited circumstances, our risk of loss is limited to our investment in the joint ventures.

There have been no other material changes, outside of the ordinary course of business, during the six months ended June 30, 2023 to the material cash requirements or material off-balance sheet arrangements disclosed in our Annual Report on Form 10-K for the year ended December 31, 2022 under “Material Cash Requirements” and “Off-Balance Sheet Arrangements” in “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations.”

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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,
	2023		2022		Change
Net cash provided by (used in) operating activities	$	471,737	$	449,668	$	22,069
Net cash provided by (used in) investing activities	(138,669)		(461,136)		322,467
Net cash provided by (used in) financing activities	(299,377)		(72,082)		(227,295)

Operating Cash Flows

Our cash flows from operations are 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. Our net cash provided by operating activities increased $22 million for the six months ended June 30, 2023 compared to the six months ended June 30, 2022 primarily as a result of: (i) developments and redevelopments placed in service during 2022 and 2023, (ii) annual rent increases, (iii) higher nonrefundable entrance fee collections, and (iv) new leasing and renewal activity. The increase in net cash provided by operating activities was partially offset by: (i) an increase in interest expense and (ii) an increase in property operating expenses.

Investing Cash Flows

Our cash flows from investing activities are generally used to fund acquisitions, developments, and redevelopments of real estate assets, net of proceeds received from sales of real estate assets, sales of DFLs, and repayments on loans receivable. Our net cash used in investing activities decreased $322 million for the six months ended June 30, 2023 compared to the six months ended June 30, 2022 primarily as a result of the following: (i) a reduction in acquisitions of real estate assets, (ii) an increase in proceeds from principal repayments on loans receivable and marketable debt securities, and (iii) an increase in proceeds from the sales of real estate assets. The decrease in cash used by investing activities was partially offset by: (i) development and redevelopment of real estate assets and (ii) higher contributions to unconsolidated joint ventures to fund redevelopments of unconsolidated assets.

Financing Cash Flows

Our cash flows from financing activities are generally impacted by issuances of equity, borrowings and repayments under our bank line of credit and commercial paper program, senior unsecured notes, term loans, and mortgage debt, net of dividends paid to common shareholders. Our net cash used in financing activities increased $227 million for the six months ended June 30, 2023 compared to the six months ended June 30, 2022 primarily as a result of the following: (i) net repayments under the bank line of credit and commercial paper program and (ii) increased distributions to noncontrolling interests. The increase in net cash used in financing activities was partially offset by proceeds received from the senior unsecured notes issuances in January 2023 and May 2023.

Debt

In January 2023 and May 2023, we completed public offerings of $750 million aggregate principal amount of 5.25% senior unsecured notes due 2032.

In February 2023, the Revolving Facility was amended to change the interest rate benchmark from LIBOR to SOFR.

Also in February 2023, the agreements associated with $142 million of variable rate mortgage debt were amended to change the interest rate benchmarks from LIBOR to SOFR, effective March 2023. Concurrently, we modified the related interest rate swap instruments to reflect the change in the interest rate benchmarks from LIBOR to SOFR.

See Note 9 to the Consolidated Financial Statements for additional information about our outstanding debt.

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Approximately 95% and 77% of our consolidated debt was fixed rate debt as of June 30, 2023 and 2022, respectively. At June 30, 2023, our fixed rate debt and variable rate debt had weighted average interest rates of 3.70% and 5.49%, respectively. At June 30, 2022, our fixed rate debt and variable rate debt had weighted average interest rates of 3.45% and 1.96%, respectively. As of June 30, 2023, we had $142 million of variable rate mortgage debt and the $500 million Term Loan Facilities swapped to fixed rates through interest rate swap instruments. These interest rate swap instruments are designated as cash flow hedges. For purposes of classification of the amounts above, variable rate debt with a derivative financial instrument designated as a cash flow hedge is reported as fixed rate debt due to us having effectively established a fixed interest rate for the underlying debt instrument. For a more detailed discussion of our interest rate risk, see “Quantitative and Qualitative Disclosures About Market Risk” in Item 3 below.

Supplemental Guarantor Information

Healthpeak OP has issued the senior unsecured notes described in Note 9 to the Consolidated Financial Statements. The obligations of Healthpeak OP to pay principal, premiums, if any, and interest on such senior unsecured notes are guaranteed on a full and unconditional basis by the Company.

Subsidiary issuers of obligations guaranteed by the parent are not required to provide separate financial statements, provided that the parent guarantee is “full and unconditional”, the subsidiary obligor is a consolidated subsidiary of the parent company, the guaranteed security is debt or debt-like, and consolidated financial statements of the parent company have been filed. Accordingly, separate consolidated financial statements of Healthpeak OP have not been presented.

As permitted under Rule 13-01 of Regulation S-X, we have excluded the summarized financial information for the operating subsidiary because the Company and Healthpeak OP have no material assets, liabilities, or operations other than debt financing activities and their investments in non-guarantor subsidiaries, and management believes such summarized financial information would be repetitive and would not provide incremental value to investors.

Equity

At June 30, 2023, we had 547 million shares of common stock outstanding, equity totaled $7.1 billion, and our equity securities had a market value of $11.1 billion.

At-The-Market Program

In February 2023, in connection with the Reorganization, we terminated our previous at-the-market equity offering program and established a new at-the-market equity offering program (the “ATM Program”) that allows for the sale of shares of common stock having an aggregate gross sales price of up to $1.5 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 (each, an “ATM forward contract”) with sales agents for the sale of our shares of common stock under our ATM Program.

During the three and six months ended June 30, 2023, we did not issue any shares of our common stock under any ATM program.

At June 30, 2023, $1.5 billion of our common stock remained available for sale under the 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 shares under our ATM Program.

See Note 11 to the Consolidated Financial Statements for additional information about our ATM Program.

Noncontrolling Interests

Healthpeak OP. Immediately following the Reorganization, Healthpeak Properties, Inc. was the initial sole member and 100% owner of Healthpeak OP. Subsequent to the Reorganization, certain of our employees (“OP Unitholders”) were issued approximately 2 million noncontrolling, non-managing member units in Healthpeak OP (“OP Units”). When certain conditions are met, the OP Unitholders have the right to require redemption of part or all of their OP Units for cash or shares of our common stock, at our option as managing member of Healthpeak OP. The per unit redemption amount is equal to either one share of our common stock or cash equal to the fair value of a share of common stock at the time of redemption. We classify the OP Units in permanent equity because we may elect, in our sole discretion, to issue shares of our common stock to OP Unitholders who choose to redeem their OP Units rather than using cash. None of the outstanding OP Units met the criteria for redemption as of June 30, 2023.

DownREITs. At June 30, 2023, 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, 2023, the outstanding DownREIT units were convertible into approximately seven million shares of our common stock.

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Share Repurchase Program

On August 1, 2022, our Board of Directors approved the Share Repurchase Program under which we may acquire shares of our common stock in the open market up to an aggregate purchase price of $500 million. Purchases of common stock under the Share Repurchase Program may be exercised at our discretion with the timing and number of shares repurchased depending on a variety of factors, including price, corporate and regulatory requirements, and other corporate liquidity requirements and priorities. The Share Repurchase Program expires in August 2024 and may be suspended or terminated at any time without prior notice. During the year ended December 31, 2022, we repurchased 2.1 million shares of our common stock at a weighted average price of $27.16 per share for a total of $56 million. During the three and six months ended June 30, 2023, there were no repurchases under the Share Repurchase Program. Therefore, at June 30, 2023, $444 million of our common stock remained available for repurchase under the Share Repurchase Program.

Shelf Registration

In February 2023, the Company and Healthpeak OP jointly 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 February 13, 2026 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 future offerings of the Company’s common stock, preferred stock, depositary shares, warrants, debt securities, and guarantees of debt securities issued by Healthpeak OP, and Healthpeak OP’s debt securities and guarantees of debt securities issued by the Company.

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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):

	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Net income (loss) applicable to common shares	$	51,750	$	68,057	$	169,449	$	137,693
Real estate related depreciation and amortization	197,573		180,489		376,798		358,222
Healthpeak’s share of real estate related depreciation and amortization from unconsolidated joint ventures	5,893		5,210		11,887		10,345
Noncontrolling interests’ share of real estate related depreciation and amortization	(4,685)		(4,844)		(9,470)		(9,685)
Loss (gain) on sales of depreciable real estate, net	(4,885)		(12,903)		(86,463)		(16,688)
Healthpeak’s share of loss (gain) on sales of depreciable real estate, net, from unconsolidated joint ventures	—		129		—		(150)
Noncontrolling interests’ share of gain (loss) on sales of depreciable real estate, net	—		—		11,546		12
Loss (gain) upon change of control, net	(234)		—		(234)		—
Taxes associated with real estate dispositions	—		16		—		(166)
Nareit FFO applicable to common shares	245,412		236,154		473,513		479,583
Distributions on dilutive convertible units and other	2,342		2,352		4,687		4,704
Diluted Nareit FFO applicable to common shares	$	247,754	$	238,506	$	478,200	$	484,287
Weighted average shares outstanding - diluted Nareit FFO	554,584		547,132		554,494		547,018
Impact of adjustments to Nareit FFO:
Transaction-related items	$	581	$	596	$	2,944	$	893
Other impairments (recoveries) and other losses (gains), net(1)	2,432		139		1,159		(8,770)
Restructuring and severance-related charges	1,368		—		1,368		—
Casualty-related charges (recoveries), net(2)	(591)		(411)		(243)		(411)
Total adjustments	$	3,790	$	324	$	5,228	$	(8,288)
FFO as Adjusted applicable to common shares	$	249,202	$	236,478	$	478,741	$	471,295
Distributions on dilutive convertible units and other	2,338		2,351		4,680		4,719
Diluted FFO as Adjusted applicable to common shares	$	251,540	$	238,829	$	483,421	$	476,014
Weighted average shares outstanding - diluted FFO as Adjusted	554,584		547,132		554,494		547,018
FFO as Adjusted applicable to common shares	$	249,202	$	236,478	$	478,741	$	471,295
Stock-based compensation amortization expense	4,245		5,300		7,532		10,021
Amortization of deferred financing costs	2,954		2,689		5,774		5,377
Straight-line rents(3)	(4,683)		(12,713)		(5,431)		(23,872)
AFFO capital expenditures	(19,444)		(27,906)		(42,233)		(50,745)
Deferred income taxes	(242)		(1,188)		(503)		(927)
Amortization of above (below) market lease intangibles, net	(8,838)		(5,885)		(14,641)		(11,653)
Other AFFO adjustments	(2,339)		(1,180)		(730)		(1,871)
AFFO applicable to common shares	220,855		195,595		428,509		397,625
Distributions on dilutive convertible units and other	2,342		1,649		4,686		3,296
Diluted AFFO applicable to common shares	$	223,197	$	197,244	$	433,195	$	400,921
Weighted average shares outstanding - diluted AFFO	554,584		545,307		554,494		545,193

Refer to footnotes on the next page.

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_______________________________________

(1)The six months ended June 30, 2022 includes the following, which are included in other income (expense), net in the Consolidated Statements of Operations: (i) a $23 million gain on sale of a hospital under a direct financing lease and (ii) $14 million of expenses incurred for tenant relocation and other costs associated with the demolition of an outpatient medical building. The three and six months ended June 30, 2023 and 2022 include reserves for loan losses recognized in impairments and loan loss reserves (recoveries), net in the Consolidated Statements of Operations.

(2)Casualty-related charges (recoveries), net are recognized in other income (expense), net and equity income (loss) from unconsolidated joint ventures in the Consolidated Statements of Operations.

(3)The six months ended June 30, 2023 includes a $9 million write-off of straight-line rent receivable associated with Sorrento Therapeutics, Inc., which commenced voluntary reorganization proceedings under Chapter 11 of the U.S. Bankruptcy Code. This activity is reflected as a reduction of rental and related revenues in the Consolidated Statements of Operations.

Critical Accounting Estimates

The preparation of financial statements in conformity with U.S. GAAP requires our management to use judgment in the application of critical accounting 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 discussion of accounting estimates that we consider critical in that they may require complex judgment in their application or require estimates about matters that are inherently uncertain is included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2022 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 estimates during the three and six months ended June 30, 2023.

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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 17 to the Consolidated Financial Statements).

To illustrate the effect of movements in the interest rate markets, we performed a market sensitivity analysis on our hedging instruments. We applied various basis point spreads to the underlying interest rate curves of our derivative portfolio in order to determine the change in fair value. At June 30, 2023, a one percentage point increase or decrease in the underlying interest rate curve would result in a corresponding increase or decrease in the fair value of the derivative instruments by approximately $20 million.

Interest Rate Risk. At June 30, 2023, our exposure to interest rate risk was primarily on our variable rate debt. At June 30, 2023, $142 million of our variable rate mortgage debt and our $500 million Term Loan Facilities were swapped to fixed rates through interest rate swap instruments. The interest rate swap instruments are designated as cash flow hedges, with the objective of managing the exposure to interest rate risk by converting the interest rates on our variable rate debt to fixed interest rates. At June 30, 2023, both the fair value and carrying value of the interest rate swap instruments were $33 million.

Our remaining variable rate debt at June 30, 2023 was comprised of borrowings under our commercial paper program and certain of our mortgage debt. 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. Interest rate changes will affect the fair value of our fixed rate instruments. At June 30, 2023, a one percentage point increase in interest rates would decrease the fair value of our fixed rate debt by approximately $248 million and a one percentage point decrease in interest rates would increase the fair value of our fixed rate debt by approximately $265 million. These changes would not materially impact earnings or cash flows. Conversely, changes in interest rates on variable rate debt would change our future earnings and cash flows, but not materially impact the fair value of those instruments. Assuming a one percentage point increase in the interest rates related to our variable rate debt, and assuming no other changes in the outstanding balance at June 30, 2023, our annual interest expense would increase by approximately $3 million. Lastly, assuming a one percentage point decrease in the interest rates related to our variable rate loans receivable, and assuming no other changes in the outstanding balance at June 30, 2023, our annual interest income would decrease by approximately $2 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, 2023. 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, 2023.

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 1A.  Risk Factors

We have described in Part I, Item 1A of our Annual Report on Form 10-K for the fiscal year ended December 31, 2022 and updated in Part II, Item 1A of our Quarterly Report on Form 10-Q for the quarter ended March 31, 2023, the primary risk factors that could materially affect our business, financial condition, or future results. There were no material changes to our risk factors during the quarter ended June 30, 2023.

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, 2023.

Period Covered	Total Number of Shares Purchased(1)	Average Price Paid per Share		Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs(2)	Maximum Number (or Approximate Dollar Value) of Shares that May Yet be Purchased Under the Plans or Programs(2)
April 1-30, 2023	—	$	—	—	$	444,018,701
May 1-31, 2023	362	20.23		—	444,018,701
June 1-30, 2023	—	—		—	444,018,701
	362	$	20.23	—	$	444,018,701

_______________________________________

(1)Represents shares of our common stock withheld under our equity incentive plans to offset tax withholding obligations that occur upon vesting of restricted stock units. 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.

(2)On August 1, 2022, our Board of Directors approved the Share Repurchase Program under which we may acquire shares of our common stock in the open market up to an aggregate purchase price of $500 million. Purchases of common stock under the Share Repurchase Program may be exercised at our discretion with the timing and number of shares repurchased depending on a variety of factors, including price, corporate and regulatory requirements, and other corporate liquidity requirements and priorities. The Share Repurchase Program expires in August 2024 and may be suspended or terminated at any time without prior notice. During the year ended December 31, 2022, we repurchased 2.1 million shares of our common stock at a weighted average price of $27.16 per share. During the three and six months ended June 30, 2023, there were no repurchases, therefore, at June 30, 2023, $444 million of our common stock remained available for repurchase under the Share Repurchase Program. Amounts do not include the shares of our common stock withheld under our equity incentive plans to offset tax withholding obligations as discussed in footnote 1.

Item 5. Other Information

During the three months ended June 30, 2023, none of our directors or Section 16 officers adopted, modified, or terminated any Rule 10b5-1 trading arrangement or any non-Rule 10b5-1 trading arrangement.

61

Table of Contents

Item 6. Exhibits

2.1+	Agreement and Plan of Merger, dated February 7, 2023, by and among Healthpeak Properties, Inc., New Healthpeak, Inc. and Healthpeak Merger Sub, Inc. (incorporated herein by reference to Exhibit 2.1 to Healthpeak’s Current Report on Form 8-K12B filed February 10, 2023).
3.1	Articles of Amendment and Restatement of Healthpeak Properties, Inc. (formerly New Healthpeak, Inc.) effective February 10, 2023 (incorporated herein by reference to Exhibit 3.1 to Healthpeak’s Current Report on Form 8-K12B filed February 10, 2023).
3.2	Articles of Amendment of Healthpeak Properties, Inc. (formerly New Healthpeak, Inc.) effective February 10, 2023 (incorporated herein by reference to Exhibit 3.2 to Healthpeak’s Current Report on Form 8-K12B filed February 10, 2023).
3.3	Amended and Restated Bylaws of Healthpeak Properties, Inc. (formerly New Healthpeak, Inc.), dated February 10, 2023 (incorporated herein by reference to Exhibit 3.4 to Healthpeak’s Current Report on Form 8-K12B filed February 10, 2023).
4.1	Fifteenth Supplemental Indenture, dated as of May 10, 2023, among Healthpeak OP, LLC, as issuer, Healthpeak Properties, Inc., as guarantor, 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 May 10, 2023).
4.2	Form of 5.250% Senior Notes due 2032, including the form of Notation of Guarantee (incorporated herein by reference to Exhibit 4.2 to Healthpeak’s Current Report on Form 8-K filed May 10, 2023).
10.1†	Healthpeak Properties, Inc. 2023 Performance Incentive Plan (incorporated herein by reference to Exhibit 10.1 to Healthpeak’s Current Report on Form 8-K filed April 27, 2023).
22.1*	List of Issuers of Guaranteed Securities.
31.1*	Certification by Scott M. Brinker, 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 Scott M. Brinker, 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).

_______________________________________

+ Certain of the exhibits and schedules to this Exhibit have been omitted in accordance with Regulation S-K Item 601(b)(2).

*       Filed herewith.

**     Furnished herewith.

† Management Contract or Compensatory Plan or Arrangement.

62

Table of Contents

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: July 28, 2023	Healthpeak Properties, Inc.
	/s/ SCOTT M. BRINKER
	Scott M. Brinker
	President and 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)

63

EX-22.1

Exhibit 22.1

List of Issuers of Guaranteed Securities

As of June 30, 2023, the following subsidiary was the issuer of the 3.400% Senior Notes due 2025, 4.000% Senior Notes due 2025, 3.250% Senior Notes due 2026, 1.350% Senior Notes due 2027, 2.125% Senior Notes due 2028, 3.500% Senior Notes due 2029, 3.000% Senior Notes due 2030, 2.875% Senior Notes due 2031, 5.250% Senior Notes due 2032 and 6.750% Senior Notes due 2041, each of which was guaranteed by Healthpeak Properties, Inc.

Name of Subsidiary	Jurisdiction of Organization
Healthpeak OP, LLC	Maryland

EX-31.1

EXHIBIT 31.1

CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER

I, Scott M. Brinker, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Healthpeak Properties, Inc. for the period ended June 30, 2023;

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: July 28, 2023	/s/ SCOTT M. BRINKER
	Scott M. Brinker
	President and 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, 2023;

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: July 28, 2023	/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, 2023 (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: July 28, 2023	/s/ SCOTT M. BRINKER
	Scott M. Brinker
	President and 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, 2023 (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: July 28, 2023	/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, 2023	Jul. 26, 2023
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2023
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	4600 South Syracuse Street
Entity Address, Address Line Two	Suite 500
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		547,054,288
Entity Central Index Key	0000765880
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q2

XML

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Real estate:
Buildings and improvements	$ 13,039,278	$ 12,784,078
Development costs and construction in progress	775,836	760,355
Land	2,661,963	2,667,188
Accumulated depreciation and amortization	(3,379,874)	(3,188,138)
Net real estate	13,097,203	13,023,483
Loans receivable, net of reserves of $8,366 and $8,280	214,030	374,832
Investments in and advances to unconsolidated joint ventures	731,956	706,677
Accounts receivable, net of allowance of $2,387 and $2,399	53,467	53,436
Cash and cash equivalents	103,780	72,032
Restricted cash	56,745	54,802
Intangible assets, net	364,453	418,061
Assets held for sale, net	8,282	49,866
Right-of-use asset, net	234,050	237,318
Other assets, net	739,574	780,722
Total assets	15,603,540	15,771,229
LIABILITIES AND EQUITY
Bank line of credit and commercial paper	329,000	995,606
Term loans	496,382	495,957
Senior unsecured notes	5,399,504	4,659,451
Mortgage debt	343,766	346,599
Intangible liabilities, net	140,060	156,193
Liabilities related to assets held for sale, net	52	4,070
Lease liability	204,489	208,515
Accounts payable, accrued liabilities, and other liabilities	682,764	772,485
Deferred revenue	881,870	844,076
Total liabilities	8,477,887	8,482,952
Commitments and contingencies (Note 10)
Redeemable noncontrolling interests	63,792	105,679
Common stock, $1.00 par value: 750,000,000 shares authorized; 547,052,994 and 546,641,973 shares issued and outstanding	547,053	546,642
Additional paid-in capital	10,384,982	10,349,614
Cumulative dividends in excess of earnings	(4,428,423)	(4,269,689)
Accumulated other comprehensive income (loss)	31,453	28,134
Total stockholders’ equity	6,535,065	6,654,701
Joint venture partners	316,247	327,721
Non-managing member unitholders	210,549	200,176
Total noncontrolling interests	526,796	527,897
Total equity	7,061,861	7,182,598
Total liabilities and equity	$ 15,603,540	$ 15,771,229

XML

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Balance Sheet Parenthetical Disclosures
Reserves for loans receivable	$ 8,366	$ 8,280
Allowance for accounts receivable	$ 2,387	$ 2,399
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)	547,052,994	546,641,973
Common stock, shares outstanding (in shares)	547,052,994	546,641,973

XML

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Revenues [Abstract]
Rental and related revenues	$ 409,967	$ 387,079	$ 802,398	$ 757,229
Resident fees and services	130,184	125,360	257,268	246,920
Interest income	5,279	5,493	11,442	10,987
Income from direct financing leases	0	0	0	1,168
Total revenues	545,430	517,932	1,071,108	1,016,304
Costs and expenses:
Interest expense	49,074	41,867	97,037	79,453
Depreciation and amortization	197,573	180,489	376,798	358,222
Operating	221,837	215,044	444,925	422,291
General and administrative	25,936	24,781	50,483	48,612
Transaction costs	637	612	3,062	908
Impairments and loan loss reserves (recoveries), net	2,607	139	394	271
Total costs and expenses	497,664	462,932	972,699	909,757
Other income (expense):
Gain (loss) on sales of real estate, net	4,885	10,340	86,463	14,196
Other income (expense), net	1,955	2,861	2,727	21,177
Total other income (expense), net	6,840	13,201	89,190	35,373
Income (loss) before income taxes and equity income (loss) from unconsolidated joint ventures	54,606	68,201	187,599	141,920
Income tax benefit (expense)	(1,136)	718	(1,438)	(59)
Equity income (loss) from unconsolidated joint ventures	2,729	382	4,545	2,466
Income (loss) from continuing operations	56,199	69,301	190,706	144,327
Income (loss) from discontinued operations	0	2,992	0	3,309
Net income (loss)	56,199	72,293	190,706	147,636
Noncontrolling interests’ share in continuing operations	(4,300)	(3,955)	(19,855)	(7,685)
Net income (loss) attributable to Healthpeak Properties, Inc.	51,899	68,338	170,851	139,951
Participating securities’ share in earnings	(149)	(281)	(1,402)	(2,258)
Net income (loss) applicable to common shares	$ 51,750	$ 68,057	$ 169,449	$ 137,693
Earnings Per Share [Abstract]
Continuing operations (in dollars per share)	$ 0.09	$ 0.12	$ 0.31	$ 0.25
Discontinued operations (in dollars per share)	0	0.01	0	0.01
Net income (loss) applicable to common shares (in dollars per share)	0.09	0.13	0.31	0.26
Diluted earnings (loss) per common share:
Continuing operations (in dollars per share)	0.09	0.12	0.31	0.25
Discontinued operations (in dollars per share)	0	0.01	0	0.01
Net income (loss) applicable to common shares (in dollars per share)	$ 0.09	$ 0.13	$ 0.31	$ 0.26
Weighted average shares outstanding:
Basic (in shares)	547,026	539,558	546,936	539,456
Diluted (in shares)	547,294	539,815	547,204	539,701

XML

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Statement of Comprehensive Income [Abstract]
Net income (loss)	$ 56,199	$ 72,293	$ 190,706	$ 147,636
Other comprehensive income (loss):
Net unrealized gains (losses) on derivatives	12,668	1,629	3,191	1,629
Change in Supplemental Executive Retirement Plan obligation and other	64	100	128	200
Total other comprehensive income (loss)	12,732	1,729	3,319	1,829
Total comprehensive income (loss)	68,931	74,022	194,025	149,465
Total comprehensive (income) loss attributable to noncontrolling interests’ share in continuing operations	(4,300)	(3,955)	(19,855)	(7,685)
Total comprehensive income (loss) attributable to Healthpeak Properties, Inc.	$ 64,631	$ 70,067	$ 174,170	$ 141,780

XML

CONSOLIDATED STATEMENTS OF EQUITY AND REDEEMABLE NONCONTROLLING INTERESTS - 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
Balance (in shares) at Dec. 31, 2021			539,097
Balance at Dec. 31, 2021	$ 7,058,760	$ 6,515,470	$ 539,097	$ 10,100,294	$ (4,120,774)	$ (3,147)	$ 543,290
Increase (Decrease) in Stockholders' Equity
Net income (loss)	147,611	139,951			139,951		7,660
Other comprehensive income (loss)	1,829	1,829				1,829
Issuance of common stock, net (in shares)			831
Issuance of common stock, net	656	656	$ 831	(175)
Repurchase of common stock (in shares)			(348)
Repurchase of common stock	(11,615)	(11,615)	$ (348)	(11,267)
Stock-based compensation	12,865	12,865		12,865
Common dividends	(325,939)	(325,939)			(325,939)
Distributions to noncontrolling interests	(15,774)						(15,774)
Adjustments to redemption value of redeemable noncontrolling interests	(28,005)	(28,005)		(28,005)
Balance (in shares) at Jun. 30, 2022			539,580
Balance at Jun. 30, 2022	6,840,388	6,305,212	$ 539,580	10,073,712	(4,306,762)	(1,318)	535,176
Beginning balance at Dec. 31, 2021	87,344
Increase (Decrease) in Redeemable Noncontrolling Interests
Net income (loss)	25
Distributions to noncontrolling interests	(85)
Contributions from noncontrolling interests	588
Adjustments to redemption value of redeemable noncontrolling interests	28,005
Ending balance at Jun. 30, 2022	115,877
Balance (in shares) at Mar. 31, 2022			539,524
Balance at Mar. 31, 2022	6,947,722	6,408,223	$ 539,524	10,084,687	(4,212,941)	(3,047)	539,499
Increase (Decrease) in Stockholders' Equity
Net income (loss)	72,280	68,338			68,338		3,942
Other comprehensive income (loss)	1,729	1,729				1,729
Issuance of common stock, net (in shares)			65
Issuance of common stock, net	327	327	$ 65	262
Repurchase of common stock (in shares)			(9)
Repurchase of common stock	(263)	(263)	$ (9)	(254)
Stock-based compensation	6,721	6,721		6,721
Common dividends	(162,159)	(162,159)			(162,159)
Distributions to noncontrolling interests	(8,265)						(8,265)
Adjustments to redemption value of redeemable noncontrolling interests	(17,704)	(17,704)		(17,704)
Balance (in shares) at Jun. 30, 2022			539,580
Balance at Jun. 30, 2022	6,840,388	6,305,212	$ 539,580	10,073,712	(4,306,762)	(1,318)	535,176
Beginning balance at Mar. 31, 2022	97,890
Increase (Decrease) in Redeemable Noncontrolling Interests
Net income (loss)	13
Distributions to noncontrolling interests	(85)
Contributions from noncontrolling interests	355
Adjustments to redemption value of redeemable noncontrolling interests	17,704
Ending balance at Jun. 30, 2022	115,877
Balance (in shares) at Dec. 31, 2022			546,642
Balance at Dec. 31, 2022	7,182,598	6,654,701	$ 546,642	10,349,614	(4,269,689)	28,134	527,897
Increase (Decrease) in Stockholders' Equity
Net income (loss)	190,393	170,851			170,851		19,542
Other comprehensive income (loss)	3,319	3,319				3,319
Issuance of common stock, net (in shares)			642
Issuance of common stock, net	357	357	$ 642	(285)
Conversion of DownREIT units to common stock (in shares)			7
Conversion of DownREIT units to common stock	0	223	$ 7	216			(223)
Repurchase of common stock (in shares)			(238)
Repurchase of common stock	(6,474)	(6,474)	$ (238)	(6,236)
Stock-based compensation	9,959	(621)		(621)			10,580
Common dividends	(329,585)	(329,585)			(329,585)
Distributions to noncontrolling interests	(31,000)						(31,000)
Adjustments to redemption value of redeemable noncontrolling interests	42,294	42,294		42,294
Balance (in shares) at Jun. 30, 2023			547,053
Balance at Jun. 30, 2023	7,061,861	6,535,065	$ 547,053	10,384,982	(4,428,423)	31,453	526,796
Beginning balance at Dec. 31, 2022	105,679
Increase (Decrease) in Redeemable Noncontrolling Interests
Net income (loss)	313
Distributions to noncontrolling interests	(126)
Contributions from noncontrolling interests	220
Adjustments to redemption value of redeemable noncontrolling interests	(42,294)
Ending balance at Jun. 30, 2023	63,792
Balance (in shares) at Mar. 31, 2023			546,995
Balance at Mar. 31, 2023	7,137,733	6,609,736	$ 546,995	10,360,058	(4,316,038)	18,721	527,997
Increase (Decrease) in Stockholders' Equity
Net income (loss)	56,052	51,899			51,899		4,153
Other comprehensive income (loss)	12,732	12,732				12,732
Issuance of common stock, net (in shares)			51
Issuance of common stock, net	183	183	$ 51	132
Conversion of DownREIT units to common stock (in shares)			7
Conversion of DownREIT units to common stock	0	223	$ 7	216			(223)
Repurchase of common stock (in shares)			0
Repurchase of common stock	(7)	(7)	$ 0	(7)
Stock-based compensation	5,394	2,256		2,256			3,138
Common dividends	(164,284)	(164,284)			(164,284)
Distributions to noncontrolling interests	(8,269)						(8,269)
Adjustments to redemption value of redeemable noncontrolling interests	22,327	22,327		22,327
Balance (in shares) at Jun. 30, 2023			547,053
Balance at Jun. 30, 2023	7,061,861	$ 6,535,065	$ 547,053	$ 10,384,982	$ (4,428,423)	$ 31,453	$ 526,796
Beginning balance at Mar. 31, 2023	85,902
Increase (Decrease) in Redeemable Noncontrolling Interests
Net income (loss)	147
Distributions to noncontrolling interests	(54)
Contributions from noncontrolling interests	124
Adjustments to redemption value of redeemable noncontrolling interests	(22,327)
Ending balance at Jun. 30, 2023	$ 63,792

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CONSOLIDATED STATEMENTS OF EQUITY AND REDEEMABLE NONCONTROLLING INTERESTS (Parenthetical) - $ / shares	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Statement of Stockholders' Equity [Abstract]
Common dividends, per share (in dollars per share)	$ 0.30	$ 0.30	$ 0.60	$ 0.60

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CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
Cash flows from operating activities:
Net income (loss)	$ 190,706	$ 147,636
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	376,798	358,222
Stock-based compensation amortization expense	7,532	10,021
Amortization of deferred financing costs	5,774	5,377
Straight-line rents	(5,431)	(23,872)
Amortization of nonrefundable entrance fees and above (below) market lease intangibles	(54,910)	(50,054)
Equity loss (income) from unconsolidated joint ventures	(4,545)	(2,530)
Distributions of earnings from unconsolidated joint ventures	352	476
Loss (gain) on sale of real estate under direct financing leases	0	(22,693)
Deferred income tax expense (benefit)	(901)	(1,038)
Impairments and loan loss reserves (recoveries), net	394	271
Loss (gain) on sales of real estate, net	(86,463)	(16,688)
Loss (gain) upon change of control, net	(234)	0
Casualty-related loss (recoveries), net	(266)	78
Other non-cash items	2,505	(1,187)
Changes in:
Decrease (increase) in accounts receivable and other assets, net	9,656	10,714
Increase (decrease) in accounts payable, accrued liabilities, and deferred revenue	30,770	34,935
Net cash provided by (used in) operating activities	471,737	449,668
Cash flows from investing activities:
Acquisitions of real estate	(15,770)	(159,206)
Development, redevelopment, and other major improvements of real estate	(394,141)	(366,404)
Leasing costs, tenant improvements, and recurring capital expenditures	(42,233)	(50,745)
Proceeds from sales of real estate, net	141,651	37,719
Investments in unconsolidated joint ventures	(28,214)	(1,971)
Distributions in excess of earnings from unconsolidated joint ventures	6,420	5,496
Proceeds from insurance recovery	14,265	0
Proceeds from sales/principal repayments on loans receivable, direct financing leases, and marketable debt securities	184,299	77,685
Investments in loans receivable and other	(4,946)	(3,710)
Net cash provided by (used in) investing activities	(138,669)	(461,136)
Cash flows from financing activities:
Borrowings under bank line of credit and commercial paper	6,014,005	8,242,327
Repayments under bank line of credit and commercial paper	(6,680,611)	(7,959,733)
Issuances and borrowings of term loans, senior unsecured notes, and mortgage debt	743,778	0
Repayments and repurchases of term loans, senior unsecured notes, and mortgage debt	(2,619)	(2,507)
Payments for deferred financing costs	(7,322)	0
Issuance of common stock and exercise of options, net of offering costs	(298)	(7)
Repurchase of common stock	(6,474)	(11,615)
Dividends paid on common stock	(328,930)	(325,276)
Distributions to and purchase of noncontrolling interests	(31,126)	(15,859)
Contributions from and issuance of noncontrolling interests	220	588
Net cash provided by (used in) financing activities	(299,377)	(72,082)
Net increase (decrease) in cash, cash equivalents, and restricted cash	33,691	(83,550)
Cash, cash equivalents, and restricted cash, beginning of period	126,834	219,448
Cash, cash equivalents, and restricted cash, end of period	$ 160,525	$ 135,898

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Business

6 Months Ended

Jun. 30, 2023

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, owns, leases, and manages healthcare real estate. The Company’s diverse portfolio is comprised of investments in the following reportable healthcare segments: (i) lab; (ii) outpatient medical; and (iii) continuing care retirement community (“CCRC”).

During the second quarter of 2023, the Company changed the name of its “life science” and “medical office” segments to “lab” and “outpatient medical,” respectively. The segment name changes did not result in any changes to the composition of the Company’s segments, and therefore, had no impact on the Company’s historical results of segment operations.

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

On February 10, 2023, the Company completed its corporate reorganization (the “Reorganization”) into an umbrella partnership REIT (“UPREIT”). Substantially all of the Company’s business is conducted through Healthpeak OP, LLC (“Healthpeak OP”). The Company is the managing member of Healthpeak OP and does not have material assets or liabilities, other than through its investment in Healthpeak OP. For additional information on the UPREIT reorganization, see the Company’s Current Report on Form 8-K12B filed with the U.S. Securities and Exchange Commission (“SEC”) on February 10, 2023.

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Summary of Significant Accounting Policies

6 Months Ended

Jun. 30, 2023

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, 2023 are not necessarily indicative of the results that may be expected for the year ending December 31, 2023. The accompanying unaudited interim financial information should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2022 filed with the 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, 2023 and 2022, the Company received government grants under the CARES Act primarily to cover increased expenses and lost revenue during the coronavirus pandemic. Grant income is recognized to the extent that qualifying expenses and lost revenues exceed grants received and the Company will comply with all conditions attached to the grant. As of June 30, 2023, 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. In the event of non-compliance, all such amounts received are subject to recapture.

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,
	2023		2022		2023		2022
Government grant income recorded in other income (expense), net	$	47	$	209	$	184	$	6,762
Government grant income recorded in equity income (loss) from unconsolidated joint ventures	—		—		229		648
Government grant income recorded in income (loss) from discontinued operations	—		—		—		206
Total government grants received	$	47	$	209	$	413	$	7,616

Discontinued Operations

Senior Housing Triple-Net and Senior Housing Operating Portfolio Dispositions

In 2020, the Company concluded that the dispositions of its senior housing triple-net and Senior Housing Operating Property (“SHOP”) portfolios represented a strategic shift that had a major effect on its operations and financial results. Therefore, senior housing triple-net and SHOP assets are classified as discontinued operations in all periods presented herein. See Note 4 for further information.

Recent Accounting Pronouncements

Government Assistance. In November 2021, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2021-10, Government Assistance (Topic 832): Disclosures by Business Entities about Government Assistance (“ASU 2021-10”), which increased the transparency of government assistance including the disclosure of the types of assistance, an entity’s accounting for assistance, and the effect of the assistance on an entity’s financial statements. The adoption of ASU 2021-10 on January 1, 2022 did not have a material impact on the Company’s consolidated financial position, results of operations, cash flows, or disclosures.

Reference Rate Reform. From March 2020 to December 2022, the FASB issued a series of ASUs that provide optional expedients that may be elected through December 31, 2024 to ease the potential burden in accounting for, or recognizing the effects of, reference rate reform on financial reporting. The amendments in these ASUs were effective immediately upon issuance. During the first quarter of 2023, the Company amended certain of its variable rate mortgage debt and the related interest rate swap agreements to change the interest rate benchmark from the London Interbank Offered Rate (“LIBOR”) to the Secured Overnight Financing Rate (“SOFR”) and accordingly, the Company elected to apply certain practical expedients provided by these ASUs related to cash flow hedges. These expedients and the effects of reference rate reform have not had a material impact on the Company’s consolidated financial position, results of operations, cash flows, or disclosures.

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Real Estate

6 Months Ended

Jun. 30, 2023

Real Estate [Abstract]

Real Estate

Real Estate

2023 Real Estate Investment Acquisitions

60 Loomis Land Parcel

In January 2023, the Company acquired a lab land parcel in Cambridge, Massachusetts for $9 million.

Wylie Outpatient Medical Building

In April 2023, the Company acquired the remaining 80% interest in one of the outpatient medical buildings in the Ventures IV unconsolidated joint venture for $4 million (see Note 7). Subsequent to the acquisition, the Company began consolidating the building and recognized a gain upon change of control of $0.2 million, which is recorded in other income (expense), net.

2022 Real Estate Investment Acquisitions

67 Smith Place

In January 2022, the Company closed a lab acquisition in Cambridge, Massachusetts for $72 million.

Vista Sorrento Phase II

In January 2022, the Company closed a lab acquisition in San Diego, California for $24 million.

Webster Outpatient Medical Portfolio

In March 2022, the Company acquired a portfolio of two outpatient medical buildings in Houston, Texas for $43 million.

Northwest Medical Plaza

In May 2022, the Company acquired one outpatient medical building in Bentonville, Arkansas for $26 million.

Concord Avenue Land Parcels

In December 2022, the Company closed a lab acquisition in Cambridge, Massachusetts for $18 million.

Development Activities

The Company’s commitments, which are primarily related to development and redevelopment projects and Company-owned tenant improvements, decreased by $64 million, to $188 million at June 30, 2023, when compared to December 31, 2022, primarily as a result of construction spend on and completion of existing projects in the first half of 2023, thereby decreasing the remaining commitment.

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Dispositions of Real Estate and Discontinued Operations

6 Months Ended

Jun. 30, 2023

Discontinued Operations and Disposal Groups [Abstract]

Dispositions of Real Estate and Discontinued Operations

Dispositions of Real Estate and Discontinued Operations

2023 Dispositions of Real Estate

In January 2023, the Company sold two lab buildings in Durham, North Carolina, which were classified as held for sale as of December 31, 2022, for $113 million, resulting in total gain on sales of $60 million. Additionally, in March 2023, the Company sold two outpatient medical buildings for $32 million, resulting in total gain on sales of $21 million.

2022 Dispositions of Real Estate

During the three months ended March 31, 2022, the Company sold one lab building in Salt Lake City, Utah for $14 million, resulting in a gain on sale of $4 million.

During the three months ended June 30, 2022, the Company sold three outpatient medical buildings and one outpatient medical land parcel for $27 million, resulting in total gain on sales of $10 million.

During the three months ended September 30, 2022, the Company sold two outpatient medical buildings for $9 million, resulting in total gain on sales of $1 million.

Held for Sale and Discontinued Operations

As of June 30, 2023, one outpatient medical building was classified as held for sale, with a carrying value of $8 million, primarily comprised of net real estate assets. As of June 30, 2023, liabilities related to the asset held for sale were de minimis. As of December 31, 2022, two lab buildings were classified as held for sale, with an aggregate carrying value of $50 million, primarily comprised of net real estate assets of $44 million. As of December 31, 2022, liabilities related to these assets held for sale were $4 million. These two lab buildings were sold in January 2023, as discussed above.

In 2020, the Company concluded that the dispositions of its senior housing triple-net and SHOP portfolios represented a strategic shift that had a major effect on its operations and financial results. Therefore, senior housing triple-net and SHOP assets are classified as discontinued operations in all periods presented herein.

At each of June 30, 2023 and December 31, 2022, the total assets and total liabilities classified as discontinued operations were zero.

The results of discontinued operations during the three and six months ended June 30, 2023 and 2022 are presented below (in thousands) and are included in the consolidated results of operations for the three and six months ended June 30, 2023 and 2022:

	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Revenues:
Resident fees and services	$	—	$	2,825	$	—	$	5,480
Total revenues	—		2,825		—		5,480
Costs and expenses:
Operating	—		2,442		—		5,116
Total costs and expenses	—		2,442		—		5,116
Other income (expense):
Gain (loss) on sales of real estate, net	—		2,563		—		2,492
Other income (expense), net	—		16		—		19
Total other income (expense), net	—		2,579		—		2,511
Income (loss) before income taxes and equity income (loss) from unconsolidated joint ventures	—		2,962		—		2,875
Income tax benefit (expense)	—		30		—		370
Equity income (loss) from unconsolidated joint ventures	—		—		—		64
Income (loss) from discontinued operations	$	—	$	2,992	$	—	$	3,309

Impairments of Real Estate

During the three and six months ended June 30, 2023 and 2022, the Company did not recognize any impairment charges.

Other Losses

During the six months ended June 30, 2022, the Company recognized $14 million of expenses within other income (expense), net on the Consolidated Statements of Operations for tenant relocation and other costs associated with the demolition of an outpatient medical building.

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Leases

6 Months Ended

Jun. 30, 2023

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,
	2023		2022		2023		2022
Fixed income from operating leases	$	311,663	$	296,729	$	606,179	$	584,020
Variable income from operating leases	98,304		90,350		196,219		173,209
Interest income from direct financing leases	—		—		—		1,168

Direct Financing Leases

2022 Direct Financing Lease Sale

During the first quarter of 2022, the Company sold its remaining hospital under a direct financing lease (“DFL”) for $68 million and recognized a gain on sale of $23 million, which is included in other income (expense), net. Therefore, at June 30, 2023 and December 31, 2022, the Company had no leases classified as a DFL.

Straight-Line Rents

For operating leases with minimum scheduled rent increases, the Company recognizes income on a straight-line basis over the lease term when collectibility of future minimum lease payments is probable. If the Company determines that collectibility of future minimum lease payments is not probable, the straight-line rent receivable balance is written off and recognized as a decrease in revenue in that period and future revenue recognition is limited to amounts contractually owed and paid. The Company does not resume recognition of income on a straight-line basis unless it determines that collectibility of future payments related to these leases is probable. For the Company’s portfolio of operating leases that are deemed probable of collection but exhibit a certain level of collectibility risk, the Company may also recognize an incremental allowance as a reduction to revenue.

During the first quarter of 2023, the Company wrote off $9 million of straight-line rent receivable associated with four in-place operating leases with Sorrento Therapeutics, Inc. (“Sorrento”), which commenced voluntary reorganization proceedings (the “Filing”) under Chapter 11 of the U.S. Bankruptcy Code during the period. This write-off was recognized as a reduction in rental and related revenues on the Consolidated Statements of Operations. Subsequent to the write-off, revenue related to this tenant is recognized on a cash basis. Sorrento also had a single development lease with the Company, but had not taken occupancy at the time of the Filing. During the second quarter of 2023, the U.S. Bankruptcy Court approved Sorrento’s rejection of the development lease, resulting in termination of the lease. The Company filed a proof of claim for related damages, $2 million of which was received by the Company by drawing on Sorrento’s letter of credit during the three months ended June 30, 2023. These cash proceeds of $2 million were recognized as lease termination fee income, which is included in rental and related revenues on the Consolidated Statements of Operations. Given the nature of bankruptcy proceedings, the probability, timing, or amount of the additional proceeds, if any, that the Company may ultimately receive in connection with the claim is uncertain. Accordingly, the Company has not recorded any estimated recoveries associated with this claim as of June 30, 2023.

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,
	2023		2022		2023		2022
Fixed income from operating leases	$	311,663	$	296,729	$	606,179	$	584,020
Variable income from operating leases	98,304		90,350		196,219		173,209
Interest income from direct financing leases	—		—		—		1,168

Direct Financing Leases

2022 Direct Financing Lease Sale

During the first quarter of 2022, the Company sold its remaining hospital under a direct financing lease (“DFL”) for $68 million and recognized a gain on sale of $23 million, which is included in other income (expense), net. Therefore, at June 30, 2023 and December 31, 2022, the Company had no leases classified as a DFL.

Straight-Line Rents

For operating leases with minimum scheduled rent increases, the Company recognizes income on a straight-line basis over the lease term when collectibility of future minimum lease payments is probable. If the Company determines that collectibility of future minimum lease payments is not probable, the straight-line rent receivable balance is written off and recognized as a decrease in revenue in that period and future revenue recognition is limited to amounts contractually owed and paid. The Company does not resume recognition of income on a straight-line basis unless it determines that collectibility of future payments related to these leases is probable. For the Company’s portfolio of operating leases that are deemed probable of collection but exhibit a certain level of collectibility risk, the Company may also recognize an incremental allowance as a reduction to revenue.

During the first quarter of 2023, the Company wrote off $9 million of straight-line rent receivable associated with four in-place operating leases with Sorrento Therapeutics, Inc. (“Sorrento”), which commenced voluntary reorganization proceedings (the “Filing”) under Chapter 11 of the U.S. Bankruptcy Code during the period. This write-off was recognized as a reduction in rental and related revenues on the Consolidated Statements of Operations. Subsequent to the write-off, revenue related to this tenant is recognized on a cash basis. Sorrento also had a single development lease with the Company, but had not taken occupancy at the time of the Filing. During the second quarter of 2023, the U.S. Bankruptcy Court approved Sorrento’s rejection of the development lease, resulting in termination of the lease. The Company filed a proof of claim for related damages, $2 million of which was received by the Company by drawing on Sorrento’s letter of credit during the three months ended June 30, 2023. These cash proceeds of $2 million were recognized as lease termination fee income, which is included in rental and related revenues on the Consolidated Statements of Operations. Given the nature of bankruptcy proceedings, the probability, timing, or amount of the additional proceeds, if any, that the Company may ultimately receive in connection with the claim is uncertain. Accordingly, the Company has not recorded any estimated recoveries associated with this claim as of June 30, 2023.

Lessee

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,
	2023		2022		2023		2022
Fixed income from operating leases	$	311,663	$	296,729	$	606,179	$	584,020
Variable income from operating leases	98,304		90,350		196,219		173,209
Interest income from direct financing leases	—		—		—		1,168

Direct Financing Leases

2022 Direct Financing Lease Sale

During the first quarter of 2022, the Company sold its remaining hospital under a direct financing lease (“DFL”) for $68 million and recognized a gain on sale of $23 million, which is included in other income (expense), net. Therefore, at June 30, 2023 and December 31, 2022, the Company had no leases classified as a DFL.

Straight-Line Rents

For operating leases with minimum scheduled rent increases, the Company recognizes income on a straight-line basis over the lease term when collectibility of future minimum lease payments is probable. If the Company determines that collectibility of future minimum lease payments is not probable, the straight-line rent receivable balance is written off and recognized as a decrease in revenue in that period and future revenue recognition is limited to amounts contractually owed and paid. The Company does not resume recognition of income on a straight-line basis unless it determines that collectibility of future payments related to these leases is probable. For the Company’s portfolio of operating leases that are deemed probable of collection but exhibit a certain level of collectibility risk, the Company may also recognize an incremental allowance as a reduction to revenue.

During the first quarter of 2023, the Company wrote off $9 million of straight-line rent receivable associated with four in-place operating leases with Sorrento Therapeutics, Inc. (“Sorrento”), which commenced voluntary reorganization proceedings (the “Filing”) under Chapter 11 of the U.S. Bankruptcy Code during the period. This write-off was recognized as a reduction in rental and related revenues on the Consolidated Statements of Operations. Subsequent to the write-off, revenue related to this tenant is recognized on a cash basis. Sorrento also had a single development lease with the Company, but had not taken occupancy at the time of the Filing. During the second quarter of 2023, the U.S. Bankruptcy Court approved Sorrento’s rejection of the development lease, resulting in termination of the lease. The Company filed a proof of claim for related damages, $2 million of which was received by the Company by drawing on Sorrento’s letter of credit during the three months ended June 30, 2023. These cash proceeds of $2 million were recognized as lease termination fee income, which is included in rental and related revenues on the Consolidated Statements of Operations. Given the nature of bankruptcy proceedings, the probability, timing, or amount of the additional proceeds, if any, that the Company may ultimately receive in connection with the claim is uncertain. Accordingly, the Company has not recorded any estimated recoveries associated with this claim as of June 30, 2023.

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Loans Receivable

6 Months Ended

Jun. 30, 2023

Receivables [Abstract]

Loans Receivable

Loans Receivable

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

	June 30, 2023		December 31, 2022
Secured loans(1)	$	188,319	$	350,837
CCRC resident loans	35,034		33,083
Unamortized discounts, fees, and costs	(957)		(808)
Reserve for loan losses	(8,366)		(8,280)
Loans receivable, net	$	214,030	$	374,832

_______________________________________

(1)At each of June 30, 2023 and December 31, 2022, the Company had $40 million remaining of commitments to fund additional loans for senior housing redevelopment and capital expenditure projects.

Sunrise Senior Housing Portfolio Seller Financing

In conjunction with the sale of 32 SHOP facilities for $664 million in January 2021, 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 initial and additional financing is secured by the buyer’s equity ownership in each property. In June 2023, the interest rate on this secured loan was converted from a variable rate based on LIBOR to a variable rate based on Term SOFR (plus a 10 basis point adjustment related to SOFR transition).

In June 2021, February 2022, July 2022, and December 2022, the Company received principal repayments of $246 million, $8 million, $27 million, and $10 million, respectively, in conjunction with the disposition of the underlying collateral. In connection with these principal repayments, the additional financing available was reduced to $40 million, of which $0.4 million had been funded as of June 30, 2023. At each of June 30, 2023 and December 31, 2022, this secured loan had an outstanding principal balance of $120 million.

Other Seller Financing

In conjunction with the sale of 16 additional SHOP facilities for $230 million in January 2021, 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. Upon maturity in January 2023, the borrower did not make the required principal repayment. In February 2023, the borrower made a partial principal repayment of $102 million and the remaining balance owed was refinanced with the Company. In connection with the refinance, the maturity date of the loan was extended to January 2024 and the interest rate on the loan was increased to a variable rate based on Term SOFR (plus an 11 basis point adjustment related to SOFR transition) plus 6.0% for the first six months of the extended term, increasing to 7.0% for the last six months of the extended term. The Company also received a $1 million extension fee in connection with the refinance, which is recognized in interest income over the remaining term of the loan.

2023 Other Loans Receivable Transactions

In February 2023, the Company received full repayment of the outstanding balance of one $35 million secured loan.

In April 2023, the Company received full repayment of the outstanding balance of one $14 million secured loan.

In May 2023, the interest rate on one secured loan with an outstanding balance of $21 million was converted from a variable rate based on LIBOR to a variable rate based on Term SOFR (plus a 10 basis point adjustment related to SOFR transition).

Also in May 2023, the Company received full repayment of two outstanding secured loans with an aggregate balance of $12 million.

2022 Other Loans Receivable Transactions

In May 2022, the Company received full repayment of the outstanding balance of a $2 million secured loan.

In November 2022, the Company received full repayment of the outstanding balance of a $1 million mezzanine loan.

In December 2022, the Company extended the maturity dates of four secured loans with an aggregate outstanding balance of $61 million, originally scheduled to mature in December 2022, by one year to December 2023. In connection with the extensions, the interest rates on the loans were increased to a variable rate based on Term SOFR (plus an 11 basis point adjustment related to SOFR transition) with a floor of 8.5% for the first six months of the extended term, increasing to a floor of 10.5% for the last six months of the extended term. All four of these secured loans were repaid during 2023 as discussed above.

CCRC Resident Loans

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 resident’s previous home. At June 30, 2023 and December 31, 2022, the Company held $35 million and $33 million, respectively, of such notes receivable.

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 reserves for loan losses, as of June 30, 2023 (in thousands):

Investment Type	Year of Origination												Total
	2023		2022		2021		2020		2019		Prior
Secured loans
Risk rating:
Performing loans	$	—	$	—	$	162,813	$	16,183	$	—	$	—	$	178,996
Watch list loans	—		—		—		—		—		—		—
Workout loans	—		—		—		—		—		—		—
Total secured loans	$	—	$	—	$	162,813	$	16,183	$	—	$	—	$	178,996
Current period gross write-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Current period recoveries	—		—		—		—		—		—		—
Current period net write-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—
CCRC resident loans
Risk rating:
Performing loans	$	26,348	$	8,686	$	—	$	—	$	—	$	—	$	35,034
Watch list loans	—		—		—		—		—		—		—
Workout loans	—		—		—		—		—		—		—
Total CCRC resident loans	$	26,348	$	8,686	$	—	$	—	$	—	$	—	$	35,034
Current period gross write-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Current period recoveries	—		—		—		—		—		—		—
Current period net write-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Reserve for Loan Losses

The Company evaluates the liquidity and creditworthiness of its borrowers on a quarterly basis to determine whether any updates to the future expected losses recognized upon inception are necessary. The Company’s evaluation considers industry and economic conditions, individual and portfolio property performance, credit enhancements, liquidity, and other factors. The determination of loan losses also considers concentration of credit risk associated with the senior housing industry to which its loans receivable relate. 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, 2023						December 31, 2022
	Secured Loans		Other(1)		Total		Secured Loans		Other(1)		Total
Reserve for loan losses, beginning of period	$	8,280	$	—	$	8,280	$	1,804	$	9	$	1,813
Provision for expected loan losses	2,882		—		2,882		6,527		7		6,534
Expected loan losses (recoveries) related to loans sold or repaid	(2,796)		—		(2,796)		(51)		(16)		(67)
Reserve for loan losses, end of period	$	8,366	$	—	$	8,366	$	8,280	$	—	$	8,280

_______________________________________

(1)Includes CCRC resident loans and other loan activity.

Additionally, at June 30, 2023 and December 31, 2022, a liability of $1.1 million and $0.8 million, respectively, related to expected credit losses for unfunded loan commitments was included in accounts payable, accrued liabilities, and other liabilities.

The change in the reserve for expected loan losses during the six months ended June 30, 2023 is primarily due to macroeconomic conditions and increased interest rates on variable rate loans, partially offset by principal repayments on seller financing.

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Investments in and Advances to Unconsolidated Joint Ventures

6 Months Ended

Jun. 30, 2023

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 (dollars in thousands): 

				Carrying Amount
				June 30,		December 31,
Entity(1)	Segment	Property Count(2)	Ownership %(2)	2023		2022
SWF SH JV	Other	19	54	$	341,894	$	345,978
South San Francisco JVs(3)	Lab	7	70	337,450		309,969
Lab JV	Lab	1	49	28,863		26,601
Needham Land Parcel JV(4)	Lab	—	38	15,697		15,391
Outpatient Medical JVs(5)	Outpatient medical	2	20 - 67	8,052		8,738
				$	731,956	$	706,677

_______________________________________

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

(2)Property counts and ownership percentages are as of June 30, 2023.

(3)In August 2022, the Company sold a 30% interest in seven lab buildings in South San Francisco, California to a sovereign wealth fund. This transaction resulted in the recognition of seven unconsolidated lab joint ventures in which the Company holds a 70% ownership percentage in each joint venture. These joint ventures have been aggregated herein due to similarity of the investments and operations.

(4)Land held for development is excluded from the property count as of June 30, 2023.

(5)Includes two unconsolidated outpatient medical joint ventures in which the Company holds an ownership percentage as follows: (i) Ventures IV (20%) and (ii) Suburban Properties, LLC (67%). As of December 31, 2022, these joint ventures held a total of three properties. In April 2023, the Company acquired the remaining 80% interest in one of the two properties in the Ventures IV unconsolidated joint venture for $4 million (see Note 3). These joint ventures have been aggregated herein due to similarity of the investments and operations.

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Intangibles

6 Months Ended

Jun. 30, 2023

Intangibles [Abstract]

Intangibles

Intangibles

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

Intangible lease assets	June 30, 2023		December 31, 2022(1)
Gross intangible lease assets	$	758,282	$	770,285
Accumulated depreciation and amortization	(393,829)		(352,224)
Intangible assets, net	$	364,453	$	418,061
Weighted average remaining amortization period in years	5		5

_______________________________________

(1)Excludes intangible assets reported in assets held for sale of $2 million.

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, 2023		December 31, 2022
Gross intangible lease liabilities	$	231,659	$	237,464
Accumulated depreciation and amortization	(91,599)		(81,271)
Intangible liabilities, net	$	140,060	$	156,193
Weighted average remaining amortization period in years	7		7

During the six months ended June 30, 2023, in conjunction with the Company’s acquisition of real estate, the Company acquired $0.5 million of intangible assets with a weighted average amortization period at acquisition of 5 years.

During the year ended December 31, 2022, in conjunction with the Company’s acquisitions of real estate, the Company acquired intangible assets of $7 million and intangible liabilities of $6 million. The intangible assets and liabilities acquired had a weighted average amortization period at acquisition of 7 years and 11 years, respectively.

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Debt

6 Months Ended

Jun. 30, 2023

Debt Disclosure [Abstract]

Debt

Debt

Subsequent to the Reorganization, Healthpeak OP, the Company’s consolidated operating subsidiary, is the borrower under, and the Company is the guarantor of, all of the unsecured debt discussed below, which includes the Revolving Facility, Term Loan Facilities, Commercial Paper Program (each as defined below), and senior unsecured notes. The Company’s guarantee of the senior unsecured notes is full and unconditional and applicable to existing and future senior unsecured notes.

Bank Line of Credit and Term Loans

On May 23, 2019, the Company executed a $2.5 billion unsecured revolving line of credit facility, with a maturity date of May 23, 2023 and two six-month extension options, subject to certain customary conditions. In September 2021, the Company executed an amended and restated unsecured revolving line of credit (the “Revolving Facility”) to increase total revolving commitments from $2.5 billion to $3.0 billion and extend the maturity date to January 20, 2026. This maturity date may be further extended pursuant to two six-month extension options, subject to certain customary conditions. Borrowings under the Revolving Facility accrue interest at the applicable interest rate benchmark plus a margin that depends on the credit ratings of the Company’s senior unsecured long-term debt. On February 10, 2023, the Company executed an amendment to the Revolving Facility to convert the interest rate benchmark from LIBOR to SOFR. The Company also pays a facility fee on the entire revolving commitment that depends on its credit ratings. Additionally, the Revolving Facility includes a sustainability-linked pricing component whereby the applicable margin may be reduced by up to 0.025% based on the Company’s achievement of specified sustainability-linked metrics, subject to certain conditions. Based on the Company’s credit ratings at June 30, 2023, and inclusive of achievement of a sustainability-linked metric, the margin on the Revolving Facility was 0.85% and the facility fee was 0.15%. The Revolving Facility includes 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. At each of June 30, 2023 and December 31, 2022, the Company had no balance outstanding under the Revolving Facility.

On August 22, 2022, the Company executed a term loan agreement (the “Term Loan Agreement”) that provided for two senior unsecured delayed draw term loans in an aggregate principal amount of up to $500 million (the “Term Loan Facilities”). The Term Loan Facilities were available to be drawn from time to time during a 180-day period after closing, subject to customary borrowing conditions, and the Company drew the entirety of the $500 million under the Term Loan Facilities in October 2022. $250 million of the Term Loan Facilities has an initial stated maturity of 4.5 years, which may be extended for a one-year period subject to certain customary conditions. The other $250 million of the Term Loan Facilities has a stated maturity of 5 years with no option to extend. At each of June 30, 2023 and December 31, 2022, the Company had $500 million outstanding under the Term Loan Facilities.

Loans outstanding under the Term Loan Facilities accrue interest at Term SOFR plus a margin that depends on the credit ratings of the Company’s senior unsecured long-term debt. The Term Loan Agreement also includes a sustainability-linked pricing component whereby the applicable margin under the Term Loan Facilities may be reduced by 0.01% based on the Company’s achievement of specified sustainability-linked metrics. Based on the Company’s credit ratings as of June 30, 2023, and inclusive of achievement of a sustainability-linked metric, the margin on the Term Loan Facilities was 0.94%. The Term Loan Agreement includes a feature that allows the Company to increase the borrowing capacity by an aggregate amount of up to an additional $500 million, subject to securing additional commitments.

In August 2022, the Company entered into two forward-starting interest rate swap instruments that are designated as cash flow hedges (see Note 17). The Term Loan Facilities associated with these interest rate swap instruments are reported as fixed rate debt due to the Company having effectively established a fixed interest rate for the underlying debt instruments. Based on the Company’s credit ratings as of June 30, 2023, the Term Loan Facilities had a blended fixed effective interest rate of 3.76%, inclusive of the impact of these interest rate swap instruments and amortization of the related debt issuance costs.

The Revolving Facility and Term Loan Facilities are subject to certain financial restrictions and other customary requirements, including financial covenants and cross-default provisions to other indebtedness. Among other things, these covenants, using terms defined in the applicable agreement: (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 $7.7 billion. The Company believes it was in compliance with each of these covenants at June 30, 2023.

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, short-term unsecured notes with varying maturities. Amounts available under the Commercial Paper Program may be borrowed, repaid, and re-borrowed from time to time. At each of June 30, 2023 and December 31, 2022, the maximum aggregate face or principal amount that can be outstanding at any one time was $2.0 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 short-term unsecured notes issued under the Commercial Paper Program. At June 30, 2023, the Company had $329 million of notes outstanding under the Commercial Paper Program, with original maturities of approximately 21 days and a weighted average interest rate of 5.45%. At December 31, 2022, the Company had $996 million of notes outstanding under the Commercial Paper Program, with original maturities of approximately two months and a weighted average interest rate of 4.90%.

Senior Unsecured Notes

At June 30, 2023 and December 31, 2022, the Company had senior unsecured notes outstanding with an aggregate principal balance of $5.5 billion and $4.7 billion, respectively. 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, 2023.

The following table summarizes the Company’s senior unsecured notes issuances during the six months ended June 30, 2023 (dollars in thousands):

Issue Date	Amount		Coupon Rate		Maturity Year
January 17, 2023	$	400,000	5.25	%	2032
May 10, 2023(1)	350,000		5.25	%	2032

_______________________________________

(1)In May 2023, the Company issued $350 million of 5.25% senior unsecured notes due 2032, which constituted an additional issuance of, and are treated as a single series with, the $400 million of senior unsecured notes due 2032 issued in January 2023.

During the three and six months ended June 30, 2023, there were no repurchases or redemptions of senior unsecured notes.

During the year ended December 31, 2022, there were no issuances, repurchases, or redemptions of senior unsecured notes.

Mortgage Debt

At June 30, 2023 and December 31, 2022, the Company had $343 million and $345 million, respectively, in aggregate principal of mortgage debt outstanding, which was secured by 15 outpatient medical buildings and 3 CCRCs, with an aggregate carrying value of $778 million and $793 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 each of the three months ended June 30, 2023 and 2022, the Company made aggregate principal repayments of mortgage debt of $1 million. During each of the six months ended June 30, 2023 and 2022, the Company made aggregate principal repayments of mortgage debt of $3 million.

The Company has $142 million of mortgage debt secured by a portfolio of 13 outpatient medical buildings that matures in May 2026. In April 2022, the Company terminated its existing interest rate cap instruments associated with this variable rate mortgage debt and entered into two interest rate swap instruments that are designated as cash flow hedges and mature in May 2026. In February 2023, the agreements associated with this variable rate mortgage debt were amended to change the interest rate benchmarks from LIBOR to SOFR, effective March 2023. Concurrently, the Company modified the related interest rate swap instruments to reflect the change in the interest rate benchmarks from LIBOR to SOFR (see Note 17). The variable rate mortgage debt associated with these interest rate swap instruments is reported as fixed rate debt due to the Company having effectively established a fixed interest rate for the underlying debt instrument.

Debt Maturities

The following table summarizes the Company’s stated debt maturities and scheduled principal repayments at June 30, 2023 (dollars in thousands):

							Senior Unsecured Notes(2)				Mortgage Debt(3)
Year	Bank Line  of Credit		Commercial Paper(1)		Term Loans		Amount		Interest Rate		Amount		Interest Rate		Total
2023	$	—	$	—	$	—	$	—	—	%	$	87,471	3.80	%	$	87,471
2024	—		—		—		—		—	%	7,024		6.61	%	7,024
2025	—		—		—		800,000		3.92	%	3,209		3.82	%	803,209
2026	—		329,000		—		650,000		3.40	%	244,523		4.44	%	1,223,523
2027	—		—		500,000		450,000		1.54	%	366		5.91	%	950,366
Thereafter	—		—		—		3,550,000		3.92	%	—		—	%	3,550,000
	—		329,000		500,000		5,450,000				342,593				6,621,593
Premiums, (discounts), and debt issuance costs, net	—		—		(3,618)		(50,496)				1,173				(52,941)
	$	—	$	329,000	$	496,382	$	5,399,504			$	343,766			$	6,568,652

_______________________________________

(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)Effective interest rates on the senior unsecured notes range from 1.54% to 6.87% with a weighted average effective interest rate of 3.66% and a weighted average maturity of 6 years.

(3)Effective interest rates on the mortgage debt range from 3.44% to 8.76% with a weighted average effective interest rate of 4.31% and a weighted average maturity of 2 years. These interest rates include the impact of designated interest rate swap instruments, which effectively fix the interest rate on certain variable rate debt.

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Commitments and Contingencies

6 Months Ended

Jun. 30, 2023

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 and Other Partnerships

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 Internal Revenue 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.

Additionally, the Company owns a 49% interest in the Lab JV (see Note 7). If the property in the joint venture 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.

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Equity and Redeemable Noncontrolling Interests

6 Months Ended

Jun. 30, 2023

Equity [Abstract]

Equity and Redeemable Noncontrolling Interests

Equity and Redeemable Noncontrolling Interests

Dividends

On July 27, 2023, 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 18, 2023 to stockholders of record as of the close of business on August 7, 2023.

During each of the three months ended June 30, 2023 and 2022, the Company declared and paid common stock cash dividends of $0.30 per share. During each of the six months ended June 30, 2023 and 2022, the Company declared and paid common stock cash dividends of $0.60 per share.

At-The-Market Equity Offering Program

In February 2023, in connection with the Reorganization, the Company terminated the previous at-the-market equity offering program (as amended from time to time, the “2020 ATM Program”) and established a new at-the-market equity offering program (the “2023 ATM Program” and, together with the 2020 ATM Program, the “ATM Programs”). The ATM Programs allow for the sale of shares of common stock having an aggregate gross sales price of up to $1.5 billion (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 (each, an “ATM forward contract”). The use of ATM forward contracts allows the Company to lock in a share price on the sale of shares at the time the ATM forward contract becomes effective, but defer receiving the proceeds from the sale of shares until a later date.

ATM forward contracts generally have a one to two 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 ATM 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 ATM forward contract.

At June 30, 2023, $1.5 billion of the Company’s common stock remained available for sale under the 2023 ATM Program.

ATM Forward Contracts

During the year ended December 31, 2021, the Company utilized the forward provisions under the 2020 ATM Program to allow for the sale of an aggregate of 9.1 million shares of its common stock at an initial weighted average net price of $35.25 per share, after commissions. The Company did not enter into any forward contracts under the 2020 ATM Program during the year ended December 31, 2022. In December 2022, the Company settled all 9.1 million shares previously outstanding under ATM forward contracts at a weighted average net price of $34.01 per share, after commissions, resulting in net proceeds of $308 million. During the three and six months ended June 30, 2023, the Company did not utilize the forward provisions under the ATM Programs.

ATM Direct Issuances

During each of the three and six months ended June 30, 2023 and June 30, 2022, there were no direct issuances of shares of common stock under the ATM Programs.

Share Repurchase Program

On August 1, 2022, the Company’s Board of Directors approved a share repurchase program under which the Company may acquire shares of its common stock in the open market up to an aggregate purchase price of $500 million (the “Share Repurchase Program”). Purchases of common stock under the Share Repurchase Program may be exercised at the Company’s discretion with the timing and number of shares repurchased depending on a variety of factors, including price, corporate and regulatory requirements, and other corporate liquidity requirements and priorities. The Share Repurchase Program expires in August 2024 and may be suspended or terminated at any time without prior notice. Under Maryland General Corporation Law, outstanding shares of common stock acquired by a corporation become authorized but unissued shares, which may be re-issued. In August 2022, the Company repurchased 2.1 million shares of its common stock at a weighted average price of $27.16 per share for a total of $56 million. During the three and six months ended June 30, 2023, there were no repurchases under the Share Repurchase Program. Therefore, at June 30, 2023, $444 million of the Company’s common stock remained available for repurchase under the Share Repurchase Program.

Accumulated Other Comprehensive Income (Loss)

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

	June 30, 2023		December 31, 2022
Unrealized gains (losses) on derivatives, net	$	33,336	$	30,145
Supplemental Executive Retirement Plan minimum liability	(1,883)		(2,011)
Total accumulated other comprehensive income (loss)	$	31,453	$	28,134

The Company has a defined benefit pension plan, known as the Supplemental Executive Retirement Plan, with one plan participant, a former Chief Executive Officer (“CEO”) of the Company who departed in 2003. Changes to the Supplemental Executive Retirement Plan minimum liability are reflected in other comprehensive income (loss).

Noncontrolling Interests

Redeemable Noncontrolling Interests

Arrangements with noncontrolling interest holders are assessed for appropriate balance sheet classification based on the redemption and other rights held by the noncontrolling interest holder. Certain of the Company’s noncontrolling interest holders have the ability to put their equity interests to the Company upon specified events or after the passage of a predetermined period of time. Each put option is payable in cash and subject to increases in redemption value in the event that the underlying property generates specified returns for the Company and meets certain promote thresholds pursuant to the respective agreements. Accordingly, the Company records redeemable noncontrolling interests outside of permanent equity and presents the redeemable noncontrolling interests at the greater of their carrying amount or redemption value at the end of each reporting period.

During the year ended December 31, 2022, one of the redeemable noncontrolling interests met the conditions for redemption, but was not yet exercised as of June 30, 2023. The three remaining redeemable noncontrolling interests had not yet met the conditions for redemption as of June 30, 2023. Two of the interests will become redeemable following the passage of a predetermined amount of time. The third interest will become redeemable at the earlier of a predetermined passage of time or stabilization of the underlying development property. The Company expects the redemption conditions for all three interests to be met in 2023 and 2024. The values of the redeemable noncontrolling interests are subject to change based on the assessment of redemption value at each redemption date.

Healthpeak OP

Immediately following the Reorganization, Healthpeak Properties, Inc. was the initial sole member and 100% owner of Healthpeak OP. Subsequent to the Reorganization, certain employees of the Company (“OP Unitholders”) were issued approximately 2 million noncontrolling, non-managing member units in Healthpeak OP (“OP Units”). When certain conditions are met, the OP Unitholders have the right to require redemption of part or all of their OP Units for cash or shares of the Company’s common stock, at the Company’s option as managing member of Healthpeak OP. The per unit redemption amount is equal to either one share of the Company’s common stock or cash equal to the fair value of a share of common stock at the time of redemption. The Company classifies the OP Units in permanent equity because it may elect, in its sole discretion, to issue shares of its common stock to OP Unitholders who choose to redeem their OP Units rather than using cash. None of the outstanding OP Units met the criteria for redemption as of June 30, 2023.

DownREITs

The non-managing member units of the Company’s DownREITs are exchangeable for an amount of cash approximating the then-current market value of shares of the Company’s common stock or, at the Company’s option, shares of the Company’s common stock (subject to certain adjustments, such as stock splits and reclassifications). Upon exchange of DownREIT units for the Company’s common stock, the carrying amount of the DownREIT units is reclassified to stockholders’ equity. At June 30, 2023, there were five million DownREIT units (seven million shares of Healthpeak common stock are issuable upon conversion) outstanding in seven DownREIT LLCs, for all of which the Company acts as the managing member. At June 30, 2023, the carrying and market values of the five million DownREIT units were $200 million and $146 million, respectively. At December 31, 2022, the carrying and market values of the five million DownREIT units were $200 million and $183 million, respectively.

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Earnings Per Common Share

6 Months Ended

Jun. 30, 2023

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, 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.

Certain 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 11 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 forward agreements under its ATM Programs 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 each of the three and six months ended June 30, 2023 and 2022 was zero weighted-average incremental shares from 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,
	2023		2022		2023		2022
Numerator
Income (loss) from continuing operations	$	56,199	$	69,301	$	190,706	$	144,327
Noncontrolling interests' share in continuing operations	(4,300)		(3,955)		(19,855)		(7,685)
Income (loss) from continuing operations attributable to Healthpeak Properties, Inc.	51,899		65,346		170,851		136,642
Less: Participating securities' share in continuing operations	(149)		(281)		(1,402)		(2,258)
Income (loss) from continuing operations applicable to common shares	51,750		65,065		169,449		134,384
Income (loss) from discontinued operations	—		2,992		—		3,309
Net income (loss) applicable to common shares - basic and diluted	$	51,750	$	68,057	$	169,449	$	137,693
Denominator
Basic weighted average shares outstanding	547,026		539,558		546,936		539,456
Dilutive potential common shares - equity awards(1)	268		257		268		245
Diluted weighted average common shares	547,294		539,815		547,204		539,701
Basic earnings (loss) per common share
Continuing operations	$	0.09	$	0.12	$	0.31	$	0.25
Discontinued operations	—		0.01		—		0.01
Net income (loss) applicable to common shares	$	0.09	$	0.13	$	0.31	$	0.26
Diluted earnings (loss) per common share
Continuing operations	$	0.09	$	0.12	$	0.31	$	0.25
Discontinued operations	—		0.01		—		0.01
Net income (loss) applicable to common shares	$	0.09	$	0.13	$	0.31	$	0.26

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

For the three and six months ended June 30, 2023, forward equity sales agreements had no dilutive impact as no shares were outstanding under ATM forward contracts during the period. For the three and six months ended June 30, 2022, the 9.1 million shares under forward equity sales agreements that had not been settled during the three and six months then ended were anti-dilutive.

For the three and six months ended June 30, 2023 and 2022, 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, 2023

Segment Reporting [Abstract]

Segment Disclosures

Segment Disclosures

The Company’s reportable segments, based on how its chief operating decision maker (“CODM”) evaluates the business and allocates resources, are as follows: (i) lab, (ii) outpatient medical, and (iii) CCRC. The Company has non-reportable segments that are comprised primarily of the Company’s interests in an unconsolidated JV that owns 19 senior housing assets (the “SWF SH JV”), loans receivable, and marketable debt securities. These non-reportable segments have been presented on an aggregate basis within the Notes to the Consolidated Financial Statements herein. The accounting policies of the segments are the same as those described in Note 2 to the Consolidated Financial Statements in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2022 filed with the SEC, as updated by Note 2 herein.

During the second quarter of 2023, the Company changed the name of its “life science” and “medical office” segments to “lab” and “outpatient medical,” respectively. The segment name changes did not result in any changes to the composition of the Company’s segments or information reviewed by its CODM, and therefore, had no impact on the Company’s historical results of segment operations.

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; 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 are non-GAAP supplemental measures that are calculated as NOI and Adjusted NOI from consolidated properties, plus the Company’s share of NOI and Adjusted NOI from unconsolidated joint ventures (calculated by applying the Company’s actual ownership percentage for the period), less noncontrolling interests’ share of NOI and Adjusted NOI from consolidated joint ventures (calculated by applying the Company’s actual ownership percentage for the period). Management utilizes its share of NOI and Adjusted NOI in assessing its performance as the Company has various joint ventures that contribute to its performance. The Company does not control its unconsolidated joint ventures, and the Company’s share of amounts from unconsolidated joint ventures do not represent the Company’s legal claim to such items. The Company’s share of NOI and Adjusted NOI should not be considered a substitute for, and should only be considered together with and as a supplement to, the Company’s financial information presented in accordance with GAAP. 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 debt 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, 2023:

	Lab		Outpatient Medical		CCRC		Other Non-reportable		Corporate Non-segment		Total
Total revenues	$	223,306	$	186,661	$	130,184	$	5,279	$	—	$	545,430
Government grant income(1)	—		—		47		—		—		47
Less: Interest income	—		—		—		(5,279)		—		(5,279)
Healthpeak’s share of unconsolidated joint venture total revenues	1,928		754		—		20,261		—		22,943
Noncontrolling interests’ share of consolidated joint venture total revenues	(151)		(8,665)		—		—		—		(8,816)
Operating expenses	(54,832)		(65,350)		(101,655)		—		—		(221,837)
Healthpeak’s share of unconsolidated joint venture operating expenses	(848)		(288)		—		(14,618)		—		(15,754)
Noncontrolling interests’ share of consolidated joint venture operating expenses	35		2,409		—		—		—		2,444
Adjustments to NOI(2)	(14,943)		(4,008)		(728)		(9)		—		(19,688)
Adjusted NOI	154,495		111,513		27,848		5,634		—		299,490
Plus: Adjustments to NOI(2)	14,943		4,008		728		9		—		19,688
Interest income	—		—		—		5,279		—		5,279
Interest expense	—		(1,924)		(1,823)		—		(45,327)		(49,074)
Depreciation and amortization	(93,235)		(71,722)		(32,616)		—		—		(197,573)
General and administrative	—		—		—		—		(25,936)		(25,936)
Transaction costs	—		(16)		(278)		—		(343)		(637)
Impairments and loan loss reserves, net	—		—		—		(2,607)		—		(2,607)
Gain (loss) on sales of real estate, net	—		—		—		4,885		—		4,885
Other income (expense), net	(2)		235		674		(19)		1,067		1,955
Less: Government grant income	—		—		(47)		—		—		(47)
Less: Healthpeak’s share of unconsolidated joint venture NOI	(1,080)		(466)		—		(5,643)		—		(7,189)
Plus: Noncontrolling interests’ share of consolidated joint venture NOI	116		6,256		—		—		—		6,372
Income (loss) before income taxes and equity income (loss) from unconsolidated joint ventures	75,237		47,884		(5,514)		7,538		(70,539)		54,606
Income tax benefit (expense)	—		—		—		—		(1,136)		(1,136)
Equity income (loss) from unconsolidated joint ventures	1,314		184		—		1,231		—		2,729
Income (loss) from continuing operations	76,551		48,068		(5,514)		8,769		(71,675)		56,199
Income (loss) from discontinued operations	—		—		—		—		—		—
Net income (loss)	$	76,551	$	48,068	$	(5,514)	$	8,769	$	(71,675)	$	56,199

______________________________________________________________________________

(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, 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, 2022:

	Lab		Outpatient Medical		CCRC		Other Non-reportable		Corporate Non-segment		Total
Total revenues	$	207,771	$	179,308	$	125,360	$	5,493	$	—	$	517,932
Government grant income(1)	—		—		209		—		—		209
Less: Interest income	—		—		—		(5,493)		—		(5,493)
Healthpeak’s share of unconsolidated joint venture total revenues	1,267		761		—		18,215		—		20,243
Noncontrolling interests’ share of consolidated joint venture total revenues	(62)		(8,943)		—		—		—		(9,005)
Operating expenses	(49,446)		(63,321)		(102,277)		—		—		(215,044)
Healthpeak’s share of unconsolidated joint venture operating expenses	(483)		(301)		—		(14,150)		—		(14,934)
Noncontrolling interests’ share of consolidated joint venture operating expenses	19		2,726		—		—		—		2,745
Adjustments to NOI(2)	(21,644)		(2,949)		—		54		—		(24,539)
Adjusted NOI	137,422		107,281		23,292		4,119		—		272,114
Plus: Adjustments to NOI(2)	21,644		2,949		—		(54)		—		24,539
Interest income	—		—		—		5,493		—		5,493
Interest expense	—		(1,930)		(1,876)		—		(38,061)		(41,867)
Depreciation and amortization	(79,673)		(68,873)		(31,943)		—		—		(180,489)
General and administrative	—		—		—		—		(24,781)		(24,781)
Transaction costs	(35)		(70)		(64)		—		(443)		(612)
Impairments and loan loss reserves, net	—		—		—		(139)		—		(139)
Gain (loss) on sales of real estate, net	—		10,340		—		—		—		10,340
Other income (expense), net	29		1,264		630		18		920		2,861
Less: Government grant income	—		—		(209)		—		—		(209)
Less: Healthpeak’s share of unconsolidated joint venture NOI	(784)		(460)		—		(4,065)		—		(5,309)
Plus: Noncontrolling interests’ share of consolidated joint venture NOI	43		6,217		—		—		—		6,260
Income (loss) before income taxes and equity income (loss) from unconsolidated joint ventures	78,646		56,718		(10,170)		5,372		(62,365)		68,201
Income tax benefit (expense)	—		—		—		—		718		718
Equity income (loss) from unconsolidated joint ventures	148		211		—		23		—		382
Income (loss) from continuing operations	78,794		56,929		(10,170)		5,395		(61,647)		69,301
Income (loss) from discontinued operations	—		—		—		—		2,992		2,992
Net income (loss)	$	78,794	$	56,929	$	(10,170)	$	5,395	$	(58,655)	$	72,293

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(1)Represents government grant income received under the CARES Act, which is recorded in other income (expense), net in the Consolidated Statements of Operations (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, 2023:

	Lab		Outpatient Medical		CCRC		Other Non-reportable		Corporate Non-segment		Total
Total revenues	$	428,770	$	373,628	$	257,268	$	11,442	$	—	$	1,071,108
Government grant income(1)	—		—		184		—		—		184
Less: Interest income	—		—		—		(11,442)		—		(11,442)
Healthpeak’s share of unconsolidated joint venture total revenues	4,093		1,498		—		40,607		—		46,198
Healthpeak’s share of unconsolidated joint venture government grant income	—		—		—		229		—		229
Noncontrolling interests’ share of consolidated joint venture total revenues	(294)		(17,628)		—		—		—		(17,922)
Operating expenses	(112,397)		(129,749)		(202,779)		—		—		(444,925)
Healthpeak’s share of unconsolidated joint venture operating expenses	(2,030)		(595)		—		(29,624)		—		(32,249)
Noncontrolling interests’ share of consolidated joint venture operating expenses	75		5,004		—		—		—		5,079
Adjustments to NOI(2)	(15,776)		(7,825)		(678)		(31)		—		(24,310)
Adjusted NOI	302,441		224,333		53,995		11,181		—		591,950
Plus: Adjustments to NOI(2)	15,776		7,825		678		31		—		24,310
Interest income	—		—		—		11,442		—		11,442
Interest expense	—		(3,845)		(3,639)		—		(89,553)		(97,037)
Depreciation and amortization	(168,817)		(142,881)		(65,100)		—		—		(376,798)
General and administrative	—		—		—		—		(50,483)		(50,483)
Transaction costs	(158)		(148)		(497)		—		(2,259)		(3,062)
Impairments and loan loss reserves, net	—		—		—		(394)		—		(394)
Gain (loss) on sales of real estate, net	60,498		21,312		—		4,653		—		86,463
Other income (expense), net	2		439		7		(19)		2,298		2,727
Less: Government grant income	—		—		(184)		—		—		(184)
Less: Healthpeak’s share of unconsolidated joint venture NOI	(2,063)		(903)		—		(11,212)		—		(14,178)
Plus: Noncontrolling interests’ share of consolidated joint venture NOI	219		12,624		—		—		—		12,843
Income (loss) before income taxes and equity income (loss) from unconsolidated joint ventures	207,898		118,756		(14,740)		15,682		(139,997)		187,599
Income tax benefit (expense)	—		—		—		—		(1,438)		(1,438)
Equity income (loss) from unconsolidated joint ventures	1,911		374		—		2,260		—		4,545
Income (loss) from continuing operations	209,809		119,130		(14,740)		17,942		(141,435)		190,706
Income (loss) from discontinued operations	—		—		—		—		—		—
Net income (loss)	$	209,809	$	119,130	$	(14,740)	$	17,942	$	(141,435)	$	190,706

______________________________________________________________________________

(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, 2022:

	Lab		Outpatient Medical		CCRC		Other Non-reportable		Corporate Non-segment		Total
Total revenues	$	401,826	$	356,571	$	246,920	$	10,987	$	—	$	1,016,304
Government grant income(1)	—		—		6,762		—		—		6,762
Less: Interest income	—		—		—		(10,987)		—		(10,987)
Healthpeak’s share of unconsolidated joint venture total revenues	2,698		1,493		—		36,260		—		40,451
Healthpeak’s share of unconsolidated joint venture government grant income	—		—		333		315		—		648
Noncontrolling interests’ share of consolidated joint venture total revenues	(119)		(17,763)		—		—		—		(17,882)
Operating expenses	(97,635)		(124,491)		(200,165)		—		—		(422,291)
Healthpeak’s share of unconsolidated joint venture operating expenses	(966)		(600)		—		(28,205)		—		(29,771)
Noncontrolling interests’ share of consolidated joint venture operating expenses	38		5,328		—		—		—		5,366
Adjustments to NOI(2)	(35,756)		(6,495)		—		45		—		(42,206)
Adjusted NOI	270,086		214,043		53,850		8,415		—		546,394
Plus: Adjustments to NOI(2)	35,756		6,495		—		(45)		—		42,206
Interest income	—		—		—		10,987		—		10,987
Interest expense	—		(2,966)		(3,741)		—		(72,746)		(79,453)
Depreciation and amortization	(157,811)		(136,646)		(63,765)		—		—		(358,222)
General and administrative	—		—		—		—		(48,612)		(48,612)
Transaction costs	(327)		(74)		(64)		—		(443)		(908)
Impairments and loan loss reserves, net	—		—		—		(271)		—		(271)
Gain (loss) on sales of real estate, net	3,856		10,340		—		—		—		14,196
Other income (expense), net	20		12,201		7,141		(13)		1,828		21,177
Less: Government grant income	—		—		(6,762)		—		—		(6,762)
Less: Healthpeak’s share of unconsolidated joint venture NOI	(1,732)		(893)		(333)		(8,370)		—		(11,328)
Plus: Noncontrolling interests’ share of consolidated joint venture NOI	81		12,435		—		—		—		12,516
Income (loss) before income taxes and equity income (loss) from unconsolidated joint ventures	149,929		114,935		(13,674)		10,703		(119,973)		141,920
Income tax benefit (expense)	—		—		—		—		(59)		(59)
Equity income (loss) from unconsolidated joint ventures	1,114		411		539		402		—		2,466
Income (loss) from continuing operations	151,043		115,346		(13,135)		11,105		(120,032)		144,327
Income (loss) from discontinued operations	—		—		—		—		3,309		3,309
Net income (loss)	$	151,043	$	115,346	$	(13,135)	$	11,105	$	(116,723)	$	147,636

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

See Notes 3, 4, 5, 6, 7, and 15 for significant transactions impacting the Company’s segment assets during the periods presented.

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Supplemental Cash Flow Information

6 Months Ended

Jun. 30, 2023

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,
	2023		2022
Supplemental cash flow information:
Interest paid, net of capitalized interest	$	90,911	$	74,327
Income taxes paid (refunded)	2,855		(612)
Capitalized interest	28,182		16,320
Supplemental schedule of non-cash investing and financing activities:
Increase in ROU asset in exchange for new lease liability related to operating leases	121		508
Accrued construction costs	142,826		163,391
Net noncash impact from the consolidation of property previously held in an unconsolidated joint venture	993		—

Operating, investing, and financing cash flows in the Consolidated Statements of Cash Flows are reported inclusive of both cash flows from continuing operations and cash flows from discontinued operations. The following table summarizes certain cash flow information related to discontinued operations (in thousands):

	Six Months Ended June 30,
	2023		2022
Leasing costs, tenant improvements, and recurring capital expenditures	$	—	$	21
Development, redevelopment, and other major improvements of real estate	—		18
Depreciation and amortization of real estate, in-place lease, and other intangibles	—		—

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

	Six Months Ended June 30,
	2023		2022		2023		2022		2023		2022
	Continuing operations				Discontinued operations				Total
Beginning of period:
Cash and cash equivalents	$	72,032	$	158,287	$	—	$	7,707	$	72,032	$	165,994
Restricted cash	54,802		53,454		—		—		54,802		53,454
Cash, cash equivalents, and restricted cash	$	126,834	$	211,741	$	—	$	7,707	$	126,834	$	219,448
End of period:
Cash and cash equivalents	$	103,780	$	73,013	$	—	$	8,070	$	103,780	$	81,083
Restricted cash	56,745		54,815		—		—		56,745		54,815
Cash, cash equivalents, and restricted cash	$	160,525	$	127,828	$	—	$	8,070	$	160,525	$	135,898

Cash and Cash Equivalents

The Company maintains its cash and cash equivalents at financial institutions insured by the Federal Deposit Insurance Corporation (“FDIC”) up to $250,000 per institution. As of June 30, 2023 and December 31, 2022, the account balances at certain institutions exceeded the FDIC insurance coverage.

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Variable Interest Entities

6 Months Ended

Jun. 30, 2023

Variable Interest Entities [Abstract]

Variable Interest Entities

Variable Interest Entities

Operating Subsidiary

Subsequent to the Reorganization, Healthpeak OP is the Company’s operating subsidiary and a limited liability company that has governing provisions that are the functional equivalent of a limited partnership. The Company holds a membership interest in Healthpeak OP, acts as the managing member of Healthpeak OP, and exercises full responsibility, discretion, and control over the day-to-day management of Healthpeak OP. Because the noncontrolling interests in Healthpeak OP do not have substantive liquidation rights, substantive kick-out rights without cause, or substantive participating rights, the Company has determined that Healthpeak OP is a VIE. The Company, as managing member, has the power to direct the core activities of Healthpeak OP that most significantly affect Healthpeak OP’s performance, and through its interest in Healthpeak OP, has both the right to receive benefits from and the obligation to absorb losses of Healthpeak OP. Accordingly, the Company is the primary beneficiary of Healthpeak OP and consolidates Healthpeak OP. As the Company conducts its business and holds its assets and liabilities through Healthpeak OP, the total consolidated assets and liabilities, income (losses), and cash flows of Healthpeak OP represent substantially all of the total consolidated assets and liabilities, income (losses), and cash flows of the Company.

Unconsolidated Variable Interest Entities

At June 30, 2023, the Company had investments in two unconsolidated VIE joint ventures. At December 31, 2022, the Company had investments in: (i) two unconsolidated VIE joint ventures and (ii) marketable debt securities of one VIE. 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 and Needham Land Parcel JV discussed below), it has no formal involvement in these VIEs beyond its investments.

Debt Securities Investment. At December 31, 2022, the Company held $22 million of commercial mortgage-backed securities (“CMBS”) issued by Federal Home Loan Mortgage Corporation (commonly referred to as Freddie Mac) through a special purpose entity that had been identified as a VIE because it was “thinly capitalized.” The CMBS issued by the VIE were backed by mortgage debt obligations on real estate assets. These securities were classified as held-to-maturity because the Company had the intent and ability to hold the securities until maturity. These securities matured on December 31, 2022, and the Company received the related proceeds in January 2023.

LLC Investment. The Company holds a limited partner ownership interest in an unconsolidated LLC (“LLC Investment”) 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 three hospitals as well as senior housing real estate. Any assets generated by the entity may only be used to settle its contractual obligations (primarily capital expenditures and debt service payments).

Needham Land Parcel JV. In December 2021, the Company acquired a 38% interest in a lab development joint venture in Needham, Massachusetts for $13 million. Current equity at risk is not sufficient to finance the joint venture’s activities. The assets and liabilities of the entity primarily consist of real estate and debt service obligations. Any assets generated by the entity may only be used to settle its contractual obligations (primarily development costs and debt service payments). See Note 7 for additional descriptions of the nature, purpose, and operating activities of this unconsolidated VIE and interests therein.

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, 2023 was as follows (in thousands):

VIE Type	Asset Type	Maximum Loss Exposure and Carrying Amount(1)
LLC Investment	Other assets, net	$	14,985
Needham Land Parcel JV	Investments in and advances to unconsolidated joint ventures	15,697

_______________________________________

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

As of June 30, 2023, 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).

Consolidated Variable Interest Entities

The Company’s consolidated total assets and total liabilities at June 30, 2023 and December 31, 2022 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 outpatient medical buildings (“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.

Lab JVs.  The Company holds a 98% or greater ownership interest in multiple joint venture entities that own and lease lab buildings (the “Lab JVs”). The Lab JVs are VIEs as the members share in certain decisions of the entities, but substantially all of the activities are performed on behalf of the Company. The Company consolidates the Lab 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 Lab JVs primarily consist of leased properties (net real estate), rents receivable, and cash and cash equivalents; their obligations primarily consist of capital expenditures for the properties. Assets generated by the Lab JVs may only be used to settle their contractual obligations. Refer to Note 11 for a discussion of certain put options associated with the Lab JVs.

MSREI 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 outpatient medical buildings (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.

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).

Total assets and total liabilities include VIE assets and liabilities, excluding those of Healthpeak OP, as follows (in thousands):

	June 30, 2023		December 31, 2022
Assets
Buildings and improvements	$	2,361,693	$	2,356,905
Development costs and construction in progress	53,917		58,499
Land	314,865		324,714
Accumulated depreciation and amortization	(633,506)		(623,244)
Net real estate	2,096,969		2,116,874
Accounts receivable, net	4,322		6,893
Cash and cash equivalents	22,243		20,586
Restricted cash	489		354
Intangible assets, net	65,227		73,860
Assets held for sale, net	—		30,355
Right-of-use asset, net	98,451		99,376
Other assets, net	76,603		73,690
Total assets	$	2,364,304	$	2,421,988
Liabilities
Mortgage debt	$	144,736	$	144,604
Intangible liabilities, net	13,462		15,066
Liabilities related to assets held for sale, net	—		401
Lease liability	99,372		99,039
Accounts payable, accrued liabilities, and other liabilities	59,709		68,979
Deferred revenue	48,907		39,661
Total liabilities	$	366,186	$	367,750

Total assets and total liabilities related to assets held for sale include VIE assets and liabilities, excluding those of Healthpeak OP, as follows (in thousands):

	June 30, 2023		December 31, 2022
Assets
Buildings and improvements	$	—	$	39,934
Land	—		1,926
Accumulated depreciation and amortization	—		(15,612)
Net real estate	—		26,248
Intangible assets, net	—		215
Other assets, net	—		3,892
Total assets	$	—	$	30,355
Liabilities
Deferred revenue	$	—	$	401
Total liabilities	$	—	$	401

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Fair Value Measurements

6 Months Ended

Jun. 30, 2023

Fair Value Disclosures [Abstract]

Fair Value Measurements

Fair Value Measurements

The table below summarizes the carrying amounts and fair values of the Company’s financial instruments either recorded or disclosed on a recurring basis (in thousands):

	June 30, 2023(3)				December 31, 2022(3)
	Carrying Value		Fair Value		Carrying Value		Fair Value
Loans receivable, net(2)	$	214,030	$	218,864	$	374,832	$	369,425
Marketable debt securities(2)	—		—		21,702		21,702
Interest rate swap instruments(2)	33,450		33,450		30,259		30,259
Bank line of credit and commercial paper(2)	329,000		329,000		995,606		995,606
Term loans(2)	496,382		496,382		495,957		495,957
Senior unsecured notes(1)	5,399,504		4,981,027		4,659,451		4,238,124
Mortgage debt(2)	343,766		320,866		346,599		330,867

_______________________________________

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

(2)Level 2: Fair value is 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, interest rate swap instruments, and mortgage debt, standardized pricing models in which significant inputs or value drivers are observable in active markets. For bank line of credit, commercial paper, and term loans, 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, 2023 and year ended December 31, 2022, there were no material transfers of financial assets or liabilities within the fair value hierarchy.

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Derivative Financial Instruments

6 Months Ended

Jun. 30, 2023

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 and their related potential impact on future earnings and cash flows. The Company does not use derivative instruments for speculative or trading purposes. At June 30, 2023, a one percentage point increase or decrease in the underlying interest rate curve would result in a corresponding increase or decrease in the fair value of the derivative instruments by approximately $20 million.

In April 2021, the Company executed two interest rate cap instruments on $142 million of variable rate mortgage debt secured by a portfolio of outpatient medical buildings (see Note 9). During the three and six months ended June 30, 2022, the Company recognized a $0.1 million and $2 million increase, respectively, in the fair value of the interest rate cap instruments within other income (expense), net. In April 2022, the Company terminated these interest rate cap instruments and entered into two interest rate swap instruments that are designated as cash flow hedges and mature in May 2026. In February 2023, the Company modified these two interest rate swap instruments to reflect the change in the related variable rate mortgage debt’s interest rate benchmarks from LIBOR to SOFR (see Note 9). The Company applied certain practical expedients provided by the reference rate reform ASUs in connection with the modifications to these cash flow hedges (see Note 2).

In August 2022, the Company entered into two forward-starting interest rate swap instruments on the $500 million aggregate principal amount of the Term Loan Facilities (see Note 9). The interest rate swap instruments are designated as cash flow hedges.

The following table summarizes the Company’s interest rate swap instruments (in thousands):

							Fair Value(2)
Date Entered	Maturity Date	Hedge Designation	Notional Amount		Pay Rate(1)	Receive Rate(1)	June 30, 2023		December 31, 2022
April 2022(3)	May 2026	Cash flow	$	51,100	4.99 %	USD-SOFR w/ -5 Day Lookback + 2.50%	$	2,525	$	2,300
April 2022(3)	May 2026	Cash flow	91,000		4.54 %	USD-SOFR w/ -5 Day Lookback + 2.05%	4,496		4,096
August 2022(3)	February 2027	Cash flow	250,000		2.60 %	1 mo. USD-SOFR CME Term	12,659		11,299
August 2022(3)	August 2027	Cash flow	250,000		2.54 %	1 mo. USD-SOFR CME Term	13,770		12,564

_____________________________

(1)Pay rates and receive rates are as of June 30, 2023. As of December 31, 2022, the interest rate swap instrument with a $51 million notional amount had a pay rate of 5.08% and a receive rate of 1 mo. USD-LIBOR-BBA + 2.50%. As of December 31, 2022, the interest rate swap instrument with a $91 million notional amount had a pay rate of 4.63% and a receive rate of 1 mo. USD-LIBOR-BBA + 2.05%.

(2)At each of June 30, 2023 and December 31, 2022, the interest rate swap instruments were in an asset position. Derivative assets are recorded at fair value in other assets, net on the Consolidated Balance Sheets.

(3)Represents interest rate swap instruments that hedge fluctuations in interest payments on variable rate debt by converting the interest rates to fixed interest rates. The changes in fair value of designated derivatives that qualify as cash flow hedges are recorded in accumulated other comprehensive income (loss) on the Consolidated Balance Sheets.

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Accounts Payable, Accrued Liabilities, and Other Liabilities

6 Months Ended

Jun. 30, 2023

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 (in thousands):

	June 30, 2023		December 31, 2022
Refundable entrance fees	$	257,624	$	268,972
Accrued construction costs	142,826		178,626
Accrued interest	59,641		59,291
Other accounts payable and accrued liabilities(1)	222,673		265,596
Accounts payable, accrued liabilities, and other liabilities	$	682,764	$	772,485

_______________________________________

(1)As of June 30, 2023 and December 31, 2022, includes $11 million and $15 million, respectively, of severance-related obligations associated with the departure of a former CEO in October 2022 that had not yet been paid.

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Deferred Revenue

6 Months Ended

Jun. 30, 2023

Revenues [Abstract]

Deferred Revenue

Deferred Revenue

The following table summarizes the Company’s deferred revenue, excluding deferred revenue related to assets classified as held for sale (in thousands):

	June 30, 2023		December 31, 2022
Nonrefundable entrance fees(1)	$	537,821	$	518,573
Other deferred revenue(2)	344,049		325,503
Deferred revenue	$	881,870	$	844,076

_______________________________________

(1)During the three and six months ended June 30, 2023, the Company collected nonrefundable entrance fees of $31 million and $60 million, respectively, and recognized amortization of $20 million and $40 million, respectively. During the three and six months ended June 30, 2022, the Company collected nonrefundable entrance fees of $29 million and $50 million, respectively, and recognized amortization of $19 million and $38 million, respectively. The amortization of nonrefundable entrance fees is included within resident fees and services on the Consolidated Statements of Operations.

(2)Other deferred revenue is primarily comprised of prepaid rent, deferred rent, and tenant-funded tenant improvements owned by the Company. During the three and six months ended June 30, 2023, the Company recognized amortization related to other deferred revenue of $18 million and $31 million, respectively. During the three and six months ended June 30, 2022, the Company recognized amortization related to other deferred revenue of $11 million and $20 million, respectively. The amortization of other deferred revenue is included in rental and related revenues on the Consolidated Statements of Operations.

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Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Pay vs Performance Disclosure
Net Income (Loss) Attributable to Parent	$ 51,899	$ 68,338	$ 170,851	$ 139,951

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Insider Trading Arrangements	3 Months Ended
	Jun. 30, 2023
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

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Summary of Significant Accounting Policies (Policies)

6 Months Ended

Jun. 30, 2023

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, 2023 are not necessarily indicative of the results that may be expected for the year ending December 31, 2023. The accompanying unaudited interim financial information should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2022 filed with the 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, 2023 and 2022, the Company received government grants under the CARES Act primarily to cover increased expenses and lost revenue during the coronavirus pandemic. Grant income is recognized to the extent that qualifying expenses and lost revenues exceed grants received and the Company will comply with all conditions attached to the grant. As of June 30, 2023, 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. In the event of non-compliance, all such amounts received are subject to recapture.

Discontinued Operations

Discontinued Operations

Senior Housing Triple-Net and Senior Housing Operating Portfolio Dispositions

In 2020, the Company concluded that the dispositions of its senior housing triple-net and Senior Housing Operating Property (“SHOP”) portfolios represented a strategic shift that had a major effect on its operations and financial results. Therefore, senior housing triple-net and SHOP assets are classified as discontinued operations in all periods presented herein. See Note 4 for further information.

Recent Accounting Pronouncements

Recent Accounting Pronouncements

Government Assistance. In November 2021, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2021-10, Government Assistance (Topic 832): Disclosures by Business Entities about Government Assistance (“ASU 2021-10”), which increased the transparency of government assistance including the disclosure of the types of assistance, an entity’s accounting for assistance, and the effect of the assistance on an entity’s financial statements. The adoption of ASU 2021-10 on January 1, 2022 did not have a material impact on the Company’s consolidated financial position, results of operations, cash flows, or disclosures.

Reference Rate Reform. From March 2020 to December 2022, the FASB issued a series of ASUs that provide optional expedients that may be elected through December 31, 2024 to ease the potential burden in accounting for, or recognizing the effects of, reference rate reform on financial reporting. The amendments in these ASUs were effective immediately upon issuance. During the first quarter of 2023, the Company amended certain of its variable rate mortgage debt and the related interest rate swap agreements to change the interest rate benchmark from the London Interbank Offered Rate (“LIBOR”) to the Secured Overnight Financing Rate (“SOFR”) and accordingly, the Company elected to apply certain practical expedients provided by these ASUs related to cash flow hedges. These expedients and the effects of reference rate reform have not had a material impact on the Company’s consolidated financial position, results of operations, cash flows, or disclosures.

Cash and Cash Equivalents

Cash and Cash Equivalents

The Company maintains its cash and cash equivalents at financial institutions insured by the Federal Deposit Insurance Corporation (“FDIC”) up to $250,000 per institution. As of June 30, 2023 and December 31, 2022, the account balances at certain institutions exceeded the FDIC insurance coverage.

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Summary of Significant Accounting Policies (Tables)

6 Months Ended

Jun. 30, 2023

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,
	2023		2022		2023		2022
Government grant income recorded in other income (expense), net	$	47	$	209	$	184	$	6,762
Government grant income recorded in equity income (loss) from unconsolidated joint ventures	—		—		229		648
Government grant income recorded in income (loss) from discontinued operations	—		—		—		206
Total government grants received	$	47	$	209	$	413	$	7,616

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Dispositions of Real Estate and Discontinued Operations (Tables)

6 Months Ended

Jun. 30, 2023

Discontinued Operations and Disposal Groups [Abstract]

Schedule of Results of Discontinued Operations

The results of discontinued operations during the three and six months ended June 30, 2023 and 2022 are presented below (in thousands) and are included in the consolidated results of operations for the three and six months ended June 30, 2023 and 2022:

	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Revenues:
Resident fees and services	$	—	$	2,825	$	—	$	5,480
Total revenues	—		2,825		—		5,480
Costs and expenses:
Operating	—		2,442		—		5,116
Total costs and expenses	—		2,442		—		5,116
Other income (expense):
Gain (loss) on sales of real estate, net	—		2,563		—		2,492
Other income (expense), net	—		16		—		19
Total other income (expense), net	—		2,579		—		2,511
Income (loss) before income taxes and equity income (loss) from unconsolidated joint ventures	—		2,962		—		2,875
Income tax benefit (expense)	—		30		—		370
Equity income (loss) from unconsolidated joint ventures	—		—		—		64
Income (loss) from discontinued operations	$	—	$	2,992	$	—	$	3,309

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Leases (Tables)

6 Months Ended

Jun. 30, 2023

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,
	2023		2022		2023		2022
Fixed income from operating leases	$	311,663	$	296,729	$	606,179	$	584,020
Variable income from operating leases	98,304		90,350		196,219		173,209
Interest income from direct financing leases	—		—		—		1,168

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Loans Receivable (Tables)

6 Months Ended

Jun. 30, 2023

Receivables [Abstract]

Schedule of Loans Receivable

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

	June 30, 2023		December 31, 2022
Secured loans(1)	$	188,319	$	350,837
CCRC resident loans	35,034		33,083
Unamortized discounts, fees, and costs	(957)		(808)
Reserve for loan losses	(8,366)		(8,280)
Loans receivable, net	$	214,030	$	374,832

_______________________________________

(1)At each of June 30, 2023 and December 31, 2022, the Company had $40 million remaining of commitments to fund additional loans for 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 reserves for loan losses, as of June 30, 2023 (in thousands):

Investment Type	Year of Origination												Total
	2023		2022		2021		2020		2019		Prior
Secured loans
Risk rating:
Performing loans	$	—	$	—	$	162,813	$	16,183	$	—	$	—	$	178,996
Watch list loans	—		—		—		—		—		—		—
Workout loans	—		—		—		—		—		—		—
Total secured loans	$	—	$	—	$	162,813	$	16,183	$	—	$	—	$	178,996
Current period gross write-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Current period recoveries	—		—		—		—		—		—		—
Current period net write-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—
CCRC resident loans
Risk rating:
Performing loans	$	26,348	$	8,686	$	—	$	—	$	—	$	—	$	35,034
Watch list loans	—		—		—		—		—		—		—
Workout loans	—		—		—		—		—		—		—
Total CCRC resident loans	$	26,348	$	8,686	$	—	$	—	$	—	$	—	$	35,034
Current period gross write-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Current period recoveries	—		—		—		—		—		—		—
Current period net write-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Schedule of Financing Receivable, Allowance for Credit Loss

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

	June 30, 2023						December 31, 2022
	Secured Loans		Other(1)		Total		Secured Loans		Other(1)		Total
Reserve for loan losses, beginning of period	$	8,280	$	—	$	8,280	$	1,804	$	9	$	1,813
Provision for expected loan losses	2,882		—		2,882		6,527		7		6,534
Expected loan losses (recoveries) related to loans sold or repaid	(2,796)		—		(2,796)		(51)		(16)		(67)
Reserve for loan losses, end of period	$	8,366	$	—	$	8,366	$	8,280	$	—	$	8,280

_______________________________________

(1)Includes CCRC resident loans and other loan activity.

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Investments in and Advances to Unconsolidated Joint Ventures (Tables)

6 Months Ended

Jun. 30, 2023

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 (dollars in thousands): 

				Carrying Amount
				June 30,		December 31,
Entity(1)	Segment	Property Count(2)	Ownership %(2)	2023		2022
SWF SH JV	Other	19	54	$	341,894	$	345,978
South San Francisco JVs(3)	Lab	7	70	337,450		309,969
Lab JV	Lab	1	49	28,863		26,601
Needham Land Parcel JV(4)	Lab	—	38	15,697		15,391
Outpatient Medical JVs(5)	Outpatient medical	2	20 - 67	8,052		8,738
				$	731,956	$	706,677

_______________________________________

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

(2)Property counts and ownership percentages are as of June 30, 2023.

(3)In August 2022, the Company sold a 30% interest in seven lab buildings in South San Francisco, California to a sovereign wealth fund. This transaction resulted in the recognition of seven unconsolidated lab joint ventures in which the Company holds a 70% ownership percentage in each joint venture. These joint ventures have been aggregated herein due to similarity of the investments and operations.

(4)Land held for development is excluded from the property count as of June 30, 2023.

(5)Includes two unconsolidated outpatient medical joint ventures in which the Company holds an ownership percentage as follows: (i) Ventures IV (20%) and (ii) Suburban Properties, LLC (67%). As of December 31, 2022, these joint ventures held a total of three properties. In April 2023, the Company acquired the remaining 80% interest in one of the two properties in the Ventures IV unconsolidated joint venture for $4 million (see Note 3). These joint ventures have been aggregated herein due to similarity of the investments and operations.

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Intangibles (Tables)

6 Months Ended

Jun. 30, 2023

Intangibles [Abstract]

Schedule of Intangible Lease Assets

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

Intangible lease assets	June 30, 2023		December 31, 2022(1)
Gross intangible lease assets	$	758,282	$	770,285
Accumulated depreciation and amortization	(393,829)		(352,224)
Intangible assets, net	$	364,453	$	418,061
Weighted average remaining amortization period in years	5		5

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(1)Excludes intangible assets reported in assets held for sale of $2 million.

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, 2023		December 31, 2022
Gross intangible lease liabilities	$	231,659	$	237,464
Accumulated depreciation and amortization	(91,599)		(81,271)
Intangible liabilities, net	$	140,060	$	156,193
Weighted average remaining amortization period in years	7		7

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Debt (Tables)

6 Months Ended

Jun. 30, 2023

Debt Disclosure [Abstract]

Summary of Senior Notes Issuances

The following table summarizes the Company’s senior unsecured notes issuances during the six months ended June 30, 2023 (dollars in thousands):

Issue Date	Amount		Coupon Rate		Maturity Year
January 17, 2023	$	400,000	5.25	%	2032
May 10, 2023(1)	350,000		5.25	%	2032

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(1)In May 2023, the Company issued $350 million of 5.25% senior unsecured notes due 2032, which constituted an additional issuance of, and are treated as a single series with, the $400 million of senior unsecured notes due 2032 issued in January 2023.

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, 2023 (dollars in thousands):

							Senior Unsecured Notes(2)				Mortgage Debt(3)
Year	Bank Line  of Credit		Commercial Paper(1)		Term Loans		Amount		Interest Rate		Amount		Interest Rate		Total
2023	$	—	$	—	$	—	$	—	—	%	$	87,471	3.80	%	$	87,471
2024	—		—		—		—		—	%	7,024		6.61	%	7,024
2025	—		—		—		800,000		3.92	%	3,209		3.82	%	803,209
2026	—		329,000		—		650,000		3.40	%	244,523		4.44	%	1,223,523
2027	—		—		500,000		450,000		1.54	%	366		5.91	%	950,366
Thereafter	—		—		—		3,550,000		3.92	%	—		—	%	3,550,000
	—		329,000		500,000		5,450,000				342,593				6,621,593
Premiums, (discounts), and debt issuance costs, net	—		—		(3,618)		(50,496)				1,173				(52,941)
	$	—	$	329,000	$	496,382	$	5,399,504			$	343,766			$	6,568,652

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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)Effective interest rates on the senior unsecured notes range from 1.54% to 6.87% with a weighted average effective interest rate of 3.66% and a weighted average maturity of 6 years.

(3)Effective interest rates on the mortgage debt range from 3.44% to 8.76% with a weighted average effective interest rate of 4.31% and a weighted average maturity of 2 years. These interest rates include the impact of designated interest rate swap instruments, which effectively fix the interest rate on certain variable rate debt.

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Equity and Redeemable Noncontrolling Interests (Tables)

6 Months Ended

Jun. 30, 2023

Equity [Abstract]

Schedule of Accumulated Other comprehensive Loss

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

	June 30, 2023		December 31, 2022
Unrealized gains (losses) on derivatives, net	$	33,336	$	30,145
Supplemental Executive Retirement Plan minimum liability	(1,883)		(2,011)
Total accumulated other comprehensive income (loss)	$	31,453	$	28,134

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Earnings Per Common Share (Tables)

6 Months Ended

Jun. 30, 2023

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,
	2023		2022		2023		2022
Numerator
Income (loss) from continuing operations	$	56,199	$	69,301	$	190,706	$	144,327
Noncontrolling interests' share in continuing operations	(4,300)		(3,955)		(19,855)		(7,685)
Income (loss) from continuing operations attributable to Healthpeak Properties, Inc.	51,899		65,346		170,851		136,642
Less: Participating securities' share in continuing operations	(149)		(281)		(1,402)		(2,258)
Income (loss) from continuing operations applicable to common shares	51,750		65,065		169,449		134,384
Income (loss) from discontinued operations	—		2,992		—		3,309
Net income (loss) applicable to common shares - basic and diluted	$	51,750	$	68,057	$	169,449	$	137,693
Denominator
Basic weighted average shares outstanding	547,026		539,558		546,936		539,456
Dilutive potential common shares - equity awards(1)	268		257		268		245
Diluted weighted average common shares	547,294		539,815		547,204		539,701
Basic earnings (loss) per common share
Continuing operations	$	0.09	$	0.12	$	0.31	$	0.25
Discontinued operations	—		0.01		—		0.01
Net income (loss) applicable to common shares	$	0.09	$	0.13	$	0.31	$	0.26
Diluted earnings (loss) per common share
Continuing operations	$	0.09	$	0.12	$	0.31	$	0.25
Discontinued operations	—		0.01		—		0.01
Net income (loss) applicable to common shares	$	0.09	$	0.13	$	0.31	$	0.26

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

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Segment Disclosures (Tables)

6 Months Ended

Jun. 30, 2023

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, 2023:

	Lab		Outpatient Medical		CCRC		Other Non-reportable		Corporate Non-segment		Total
Total revenues	$	223,306	$	186,661	$	130,184	$	5,279	$	—	$	545,430
Government grant income(1)	—		—		47		—		—		47
Less: Interest income	—		—		—		(5,279)		—		(5,279)
Healthpeak’s share of unconsolidated joint venture total revenues	1,928		754		—		20,261		—		22,943
Noncontrolling interests’ share of consolidated joint venture total revenues	(151)		(8,665)		—		—		—		(8,816)
Operating expenses	(54,832)		(65,350)		(101,655)		—		—		(221,837)
Healthpeak’s share of unconsolidated joint venture operating expenses	(848)		(288)		—		(14,618)		—		(15,754)
Noncontrolling interests’ share of consolidated joint venture operating expenses	35		2,409		—		—		—		2,444
Adjustments to NOI(2)	(14,943)		(4,008)		(728)		(9)		—		(19,688)
Adjusted NOI	154,495		111,513		27,848		5,634		—		299,490
Plus: Adjustments to NOI(2)	14,943		4,008		728		9		—		19,688
Interest income	—		—		—		5,279		—		5,279
Interest expense	—		(1,924)		(1,823)		—		(45,327)		(49,074)
Depreciation and amortization	(93,235)		(71,722)		(32,616)		—		—		(197,573)
General and administrative	—		—		—		—		(25,936)		(25,936)
Transaction costs	—		(16)		(278)		—		(343)		(637)
Impairments and loan loss reserves, net	—		—		—		(2,607)		—		(2,607)
Gain (loss) on sales of real estate, net	—		—		—		4,885		—		4,885
Other income (expense), net	(2)		235		674		(19)		1,067		1,955
Less: Government grant income	—		—		(47)		—		—		(47)
Less: Healthpeak’s share of unconsolidated joint venture NOI	(1,080)		(466)		—		(5,643)		—		(7,189)
Plus: Noncontrolling interests’ share of consolidated joint venture NOI	116		6,256		—		—		—		6,372
Income (loss) before income taxes and equity income (loss) from unconsolidated joint ventures	75,237		47,884		(5,514)		7,538		(70,539)		54,606
Income tax benefit (expense)	—		—		—		—		(1,136)		(1,136)
Equity income (loss) from unconsolidated joint ventures	1,314		184		—		1,231		—		2,729
Income (loss) from continuing operations	76,551		48,068		(5,514)		8,769		(71,675)		56,199
Income (loss) from discontinued operations	—		—		—		—		—		—
Net income (loss)	$	76,551	$	48,068	$	(5,514)	$	8,769	$	(71,675)	$	56,199

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

(2)Represents straight-line rents, 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, 2022:

	Lab		Outpatient Medical		CCRC		Other Non-reportable		Corporate Non-segment		Total
Total revenues	$	207,771	$	179,308	$	125,360	$	5,493	$	—	$	517,932
Government grant income(1)	—		—		209		—		—		209
Less: Interest income	—		—		—		(5,493)		—		(5,493)
Healthpeak’s share of unconsolidated joint venture total revenues	1,267		761		—		18,215		—		20,243
Noncontrolling interests’ share of consolidated joint venture total revenues	(62)		(8,943)		—		—		—		(9,005)
Operating expenses	(49,446)		(63,321)		(102,277)		—		—		(215,044)
Healthpeak’s share of unconsolidated joint venture operating expenses	(483)		(301)		—		(14,150)		—		(14,934)
Noncontrolling interests’ share of consolidated joint venture operating expenses	19		2,726		—		—		—		2,745
Adjustments to NOI(2)	(21,644)		(2,949)		—		54		—		(24,539)
Adjusted NOI	137,422		107,281		23,292		4,119		—		272,114
Plus: Adjustments to NOI(2)	21,644		2,949		—		(54)		—		24,539
Interest income	—		—		—		5,493		—		5,493
Interest expense	—		(1,930)		(1,876)		—		(38,061)		(41,867)
Depreciation and amortization	(79,673)		(68,873)		(31,943)		—		—		(180,489)
General and administrative	—		—		—		—		(24,781)		(24,781)
Transaction costs	(35)		(70)		(64)		—		(443)		(612)
Impairments and loan loss reserves, net	—		—		—		(139)		—		(139)
Gain (loss) on sales of real estate, net	—		10,340		—		—		—		10,340
Other income (expense), net	29		1,264		630		18		920		2,861
Less: Government grant income	—		—		(209)		—		—		(209)
Less: Healthpeak’s share of unconsolidated joint venture NOI	(784)		(460)		—		(4,065)		—		(5,309)
Plus: Noncontrolling interests’ share of consolidated joint venture NOI	43		6,217		—		—		—		6,260
Income (loss) before income taxes and equity income (loss) from unconsolidated joint ventures	78,646		56,718		(10,170)		5,372		(62,365)		68,201
Income tax benefit (expense)	—		—		—		—		718		718
Equity income (loss) from unconsolidated joint ventures	148		211		—		23		—		382
Income (loss) from continuing operations	78,794		56,929		(10,170)		5,395		(61,647)		69,301
Income (loss) from discontinued operations	—		—		—		—		2,992		2,992
Net income (loss)	$	78,794	$	56,929	$	(10,170)	$	5,395	$	(58,655)	$	72,293

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(1)Represents government grant income received under the CARES Act, which is recorded in other income (expense), net in the Consolidated Statements of Operations (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, 2023:

	Lab		Outpatient Medical		CCRC		Other Non-reportable		Corporate Non-segment		Total
Total revenues	$	428,770	$	373,628	$	257,268	$	11,442	$	—	$	1,071,108
Government grant income(1)	—		—		184		—		—		184
Less: Interest income	—		—		—		(11,442)		—		(11,442)
Healthpeak’s share of unconsolidated joint venture total revenues	4,093		1,498		—		40,607		—		46,198
Healthpeak’s share of unconsolidated joint venture government grant income	—		—		—		229		—		229
Noncontrolling interests’ share of consolidated joint venture total revenues	(294)		(17,628)		—		—		—		(17,922)
Operating expenses	(112,397)		(129,749)		(202,779)		—		—		(444,925)
Healthpeak’s share of unconsolidated joint venture operating expenses	(2,030)		(595)		—		(29,624)		—		(32,249)
Noncontrolling interests’ share of consolidated joint venture operating expenses	75		5,004		—		—		—		5,079
Adjustments to NOI(2)	(15,776)		(7,825)		(678)		(31)		—		(24,310)
Adjusted NOI	302,441		224,333		53,995		11,181		—		591,950
Plus: Adjustments to NOI(2)	15,776		7,825		678		31		—		24,310
Interest income	—		—		—		11,442		—		11,442
Interest expense	—		(3,845)		(3,639)		—		(89,553)		(97,037)
Depreciation and amortization	(168,817)		(142,881)		(65,100)		—		—		(376,798)
General and administrative	—		—		—		—		(50,483)		(50,483)
Transaction costs	(158)		(148)		(497)		—		(2,259)		(3,062)
Impairments and loan loss reserves, net	—		—		—		(394)		—		(394)
Gain (loss) on sales of real estate, net	60,498		21,312		—		4,653		—		86,463
Other income (expense), net	2		439		7		(19)		2,298		2,727
Less: Government grant income	—		—		(184)		—		—		(184)
Less: Healthpeak’s share of unconsolidated joint venture NOI	(2,063)		(903)		—		(11,212)		—		(14,178)
Plus: Noncontrolling interests’ share of consolidated joint venture NOI	219		12,624		—		—		—		12,843
Income (loss) before income taxes and equity income (loss) from unconsolidated joint ventures	207,898		118,756		(14,740)		15,682		(139,997)		187,599
Income tax benefit (expense)	—		—		—		—		(1,438)		(1,438)
Equity income (loss) from unconsolidated joint ventures	1,911		374		—		2,260		—		4,545
Income (loss) from continuing operations	209,809		119,130		(14,740)		17,942		(141,435)		190,706
Income (loss) from discontinued operations	—		—		—		—		—		—
Net income (loss)	$	209,809	$	119,130	$	(14,740)	$	17,942	$	(141,435)	$	190,706

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(1)Represents government grant income received under the CARES Act, which is recorded in other income (expense), net in the Consolidated Statements of Operations (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, 2022:

	Lab		Outpatient Medical		CCRC		Other Non-reportable		Corporate Non-segment		Total
Total revenues	$	401,826	$	356,571	$	246,920	$	10,987	$	—	$	1,016,304
Government grant income(1)	—		—		6,762		—		—		6,762
Less: Interest income	—		—		—		(10,987)		—		(10,987)
Healthpeak’s share of unconsolidated joint venture total revenues	2,698		1,493		—		36,260		—		40,451
Healthpeak’s share of unconsolidated joint venture government grant income	—		—		333		315		—		648
Noncontrolling interests’ share of consolidated joint venture total revenues	(119)		(17,763)		—		—		—		(17,882)
Operating expenses	(97,635)		(124,491)		(200,165)		—		—		(422,291)
Healthpeak’s share of unconsolidated joint venture operating expenses	(966)		(600)		—		(28,205)		—		(29,771)
Noncontrolling interests’ share of consolidated joint venture operating expenses	38		5,328		—		—		—		5,366
Adjustments to NOI(2)	(35,756)		(6,495)		—		45		—		(42,206)
Adjusted NOI	270,086		214,043		53,850		8,415		—		546,394
Plus: Adjustments to NOI(2)	35,756		6,495		—		(45)		—		42,206
Interest income	—		—		—		10,987		—		10,987
Interest expense	—		(2,966)		(3,741)		—		(72,746)		(79,453)
Depreciation and amortization	(157,811)		(136,646)		(63,765)		—		—		(358,222)
General and administrative	—		—		—		—		(48,612)		(48,612)
Transaction costs	(327)		(74)		(64)		—		(443)		(908)
Impairments and loan loss reserves, net	—		—		—		(271)		—		(271)
Gain (loss) on sales of real estate, net	3,856		10,340		—		—		—		14,196
Other income (expense), net	20		12,201		7,141		(13)		1,828		21,177
Less: Government grant income	—		—		(6,762)		—		—		(6,762)
Less: Healthpeak’s share of unconsolidated joint venture NOI	(1,732)		(893)		(333)		(8,370)		—		(11,328)
Plus: Noncontrolling interests’ share of consolidated joint venture NOI	81		12,435		—		—		—		12,516
Income (loss) before income taxes and equity income (loss) from unconsolidated joint ventures	149,929		114,935		(13,674)		10,703		(119,973)		141,920
Income tax benefit (expense)	—		—		—		—		(59)		(59)
Equity income (loss) from unconsolidated joint ventures	1,114		411		539		402		—		2,466
Income (loss) from continuing operations	151,043		115,346		(13,135)		11,105		(120,032)		144,327
Income (loss) from discontinued operations	—		—		—		—		3,309		3,309
Net income (loss)	$	151,043	$	115,346	$	(13,135)	$	11,105	$	(116,723)	$	147,636

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

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Supplemental Cash Flow Information (Tables)

6 Months Ended

Jun. 30, 2023

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,
	2023		2022
Supplemental cash flow information:
Interest paid, net of capitalized interest	$	90,911	$	74,327
Income taxes paid (refunded)	2,855		(612)
Capitalized interest	28,182		16,320
Supplemental schedule of non-cash investing and financing activities:
Increase in ROU asset in exchange for new lease liability related to operating leases	121		508
Accrued construction costs	142,826		163,391
Net noncash impact from the consolidation of property previously held in an unconsolidated joint venture	993		—

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

	Six Months Ended June 30,
	2023		2022
Leasing costs, tenant improvements, and recurring capital expenditures	$	—	$	21
Development, redevelopment, and other major improvements of real estate	—		18
Depreciation and amortization of real estate, in-place lease, and other intangibles	—		—

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,
	2023		2022		2023		2022		2023		2022
	Continuing operations				Discontinued operations				Total
Beginning of period:
Cash and cash equivalents	$	72,032	$	158,287	$	—	$	7,707	$	72,032	$	165,994
Restricted cash	54,802		53,454		—		—		54,802		53,454
Cash, cash equivalents, and restricted cash	$	126,834	$	211,741	$	—	$	7,707	$	126,834	$	219,448
End of period:
Cash and cash equivalents	$	103,780	$	73,013	$	—	$	8,070	$	103,780	$	81,083
Restricted cash	56,745		54,815		—		—		56,745		54,815
Cash, cash equivalents, and restricted cash	$	160,525	$	127,828	$	—	$	8,070	$	160,525	$	135,898

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Variable Interest Entities (Tables)

6 Months Ended

Jun. 30, 2023

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, 2023 was as follows (in thousands):

VIE Type	Asset Type	Maximum Loss Exposure and Carrying Amount(1)
LLC Investment	Other assets, net	$	14,985
Needham Land Parcel JV	Investments in and advances to unconsolidated joint ventures	15,697

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

Consolidated Assets and Liabilities of Variable Interest Entities

Total assets and total liabilities include VIE assets and liabilities, excluding those of Healthpeak OP, as follows (in thousands):

	June 30, 2023		December 31, 2022
Assets
Buildings and improvements	$	2,361,693	$	2,356,905
Development costs and construction in progress	53,917		58,499
Land	314,865		324,714
Accumulated depreciation and amortization	(633,506)		(623,244)
Net real estate	2,096,969		2,116,874
Accounts receivable, net	4,322		6,893
Cash and cash equivalents	22,243		20,586
Restricted cash	489		354
Intangible assets, net	65,227		73,860
Assets held for sale, net	—		30,355
Right-of-use asset, net	98,451		99,376
Other assets, net	76,603		73,690
Total assets	$	2,364,304	$	2,421,988
Liabilities
Mortgage debt	$	144,736	$	144,604
Intangible liabilities, net	13,462		15,066
Liabilities related to assets held for sale, net	—		401
Lease liability	99,372		99,039
Accounts payable, accrued liabilities, and other liabilities	59,709		68,979
Deferred revenue	48,907		39,661
Total liabilities	$	366,186	$	367,750

Total assets and total liabilities related to assets held for sale include VIE assets and liabilities, excluding those of Healthpeak OP, as follows (in thousands):

	June 30, 2023		December 31, 2022
Assets
Buildings and improvements	$	—	$	39,934
Land	—		1,926
Accumulated depreciation and amortization	—		(15,612)
Net real estate	—		26,248
Intangible assets, net	—		215
Other assets, net	—		3,892
Total assets	$	—	$	30,355
Liabilities
Deferred revenue	$	—	$	401
Total liabilities	$	—	$	401

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Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2023

Fair Value Disclosures [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 either recorded or disclosed on a recurring basis (in thousands):

	June 30, 2023(3)				December 31, 2022(3)
	Carrying Value		Fair Value		Carrying Value		Fair Value
Loans receivable, net(2)	$	214,030	$	218,864	$	374,832	$	369,425
Marketable debt securities(2)	—		—		21,702		21,702
Interest rate swap instruments(2)	33,450		33,450		30,259		30,259
Bank line of credit and commercial paper(2)	329,000		329,000		995,606		995,606
Term loans(2)	496,382		496,382		495,957		495,957
Senior unsecured notes(1)	5,399,504		4,981,027		4,659,451		4,238,124
Mortgage debt(2)	343,766		320,866		346,599		330,867

_______________________________________

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

(2)Level 2: Fair value is 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, interest rate swap instruments, and mortgage debt, standardized pricing models in which significant inputs or value drivers are observable in active markets. For bank line of credit, commercial paper, and term loans, 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, 2023 and year ended December 31, 2022, there were no material transfers of financial assets or liabilities within the fair value hierarchy.

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Derivative Financial Instruments (Tables)

6 Months Ended

Jun. 30, 2023

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Derivative Instruments

The following table summarizes the Company’s interest rate swap instruments (in thousands):

							Fair Value(2)
Date Entered	Maturity Date	Hedge Designation	Notional Amount		Pay Rate(1)	Receive Rate(1)	June 30, 2023		December 31, 2022
April 2022(3)	May 2026	Cash flow	$	51,100	4.99 %	USD-SOFR w/ -5 Day Lookback + 2.50%	$	2,525	$	2,300
April 2022(3)	May 2026	Cash flow	91,000		4.54 %	USD-SOFR w/ -5 Day Lookback + 2.05%	4,496		4,096
August 2022(3)	February 2027	Cash flow	250,000		2.60 %	1 mo. USD-SOFR CME Term	12,659		11,299
August 2022(3)	August 2027	Cash flow	250,000		2.54 %	1 mo. USD-SOFR CME Term	13,770		12,564

_____________________________

(1)Pay rates and receive rates are as of June 30, 2023. As of December 31, 2022, the interest rate swap instrument with a $51 million notional amount had a pay rate of 5.08% and a receive rate of 1 mo. USD-LIBOR-BBA + 2.50%. As of December 31, 2022, the interest rate swap instrument with a $91 million notional amount had a pay rate of 4.63% and a receive rate of 1 mo. USD-LIBOR-BBA + 2.05%.

(2)At each of June 30, 2023 and December 31, 2022, the interest rate swap instruments were in an asset position. Derivative assets are recorded at fair value in other assets, net on the Consolidated Balance Sheets.

(3)Represents interest rate swap instruments that hedge fluctuations in interest payments on variable rate debt by converting the interest rates to fixed interest rates. The changes in fair value of designated derivatives that qualify as cash flow hedges are recorded in accumulated other comprehensive income (loss) on the Consolidated Balance Sheets.

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Accounts Payable, Accrued Liabilities, and Other Liabilities (Tables)

6 Months Ended

Jun. 30, 2023

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 (in thousands):

	June 30, 2023		December 31, 2022
Refundable entrance fees	$	257,624	$	268,972
Accrued construction costs	142,826		178,626
Accrued interest	59,641		59,291
Other accounts payable and accrued liabilities(1)	222,673		265,596
Accounts payable, accrued liabilities, and other liabilities	$	682,764	$	772,485

_______________________________________

(1)As of June 30, 2023 and December 31, 2022, includes $11 million and $15 million, respectively, of severance-related obligations associated with the departure of a former CEO in October 2022 that had not yet been paid.

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Deferred Revenue (Tables)

6 Months Ended

Jun. 30, 2023

Revenues [Abstract]

Schedule of Deferred Revenue

The following table summarizes the Company’s deferred revenue, excluding deferred revenue related to assets classified as held for sale (in thousands):

	June 30, 2023		December 31, 2022
Nonrefundable entrance fees(1)	$	537,821	$	518,573
Other deferred revenue(2)	344,049		325,503
Deferred revenue	$	881,870	$	844,076

_______________________________________

(1)During the three and six months ended June 30, 2023, the Company collected nonrefundable entrance fees of $31 million and $60 million, respectively, and recognized amortization of $20 million and $40 million, respectively. During the three and six months ended June 30, 2022, the Company collected nonrefundable entrance fees of $29 million and $50 million, respectively, and recognized amortization of $19 million and $38 million, respectively. The amortization of nonrefundable entrance fees is included within resident fees and services on the Consolidated Statements of Operations.

(2)Other deferred revenue is primarily comprised of prepaid rent, deferred rent, and tenant-funded tenant improvements owned by the Company. During the three and six months ended June 30, 2023, the Company recognized amortization related to other deferred revenue of $18 million and $31 million, respectively. During the three and six months ended June 30, 2022, the Company recognized amortization related to other deferred revenue of $11 million and $20 million, respectively. The amortization of other deferred revenue is included in rental and related revenues on the Consolidated Statements of Operations.

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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, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Unusual or Infrequent Item, or Both [Line Items]
Government grant income received	$ 47	$ 209	$ 413	$ 7,616
Government grant income recorded in other income (expense), net
Unusual or Infrequent Item, or Both [Line Items]
Government grant income received	47	209	184	6,762
Government grant income recorded in equity income (loss) from unconsolidated joint ventures
Unusual or Infrequent Item, or Both [Line Items]
Government grant income received	0	0	229	648
Government grant income recorded in income (loss) from discontinued operations
Unusual or Infrequent Item, or Both [Line Items]
Government grant income received	$ 0	$ 0	$ 0	$ 206

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Real Estate - Real Estate Investments (Details) $ in Millions	1 Months Ended
	Apr. 30, 2023 USD ($) property	Apr. 28, 2023 USD ($) property	Jan. 31, 2023 USD ($)	Dec. 31, 2022 USD ($) property	May 31, 2022 USD ($) property	Mar. 31, 2022 USD ($) property	Jan. 31, 2022 USD ($)	Jun. 30, 2023
HCP Ventures IV, LLC
Real Estate [Line Items]
Investment ownership percentage	80.00%	80.00%						20.00%
Property count | property	1	1
Cash paid	$ 4.0	$ 4.0
Gain on investments	$ 0.2
Lab | MASSACHUSETTS
Real Estate [Line Items]
Payments to acquire real estate			$ 9.0	$ 18.0			$ 72.0
Lab | CALIFORNIA
Real Estate [Line Items]
Payments to acquire real estate							$ 24.0
Outpatient Medical Buildings
Real Estate [Line Items]
Property count | property				3
Outpatient Medical Buildings | TEXAS
Real Estate [Line Items]
Payments to acquire real estate						$ 43.0
Number of properties acquired | property						2
Outpatient Medical Buildings | ARKANSAS
Real Estate [Line Items]
Payments to acquire real estate					$ 26.0
Number of properties acquired | property					1

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Real Estate - Development Activities (Details) $ in Millions	6 Months Ended
	Jun. 30, 2023 USD ($)
Real Estate [Line Items]
Development and redevelopment projects, amount decrease	$ (64)
Development commitments	$ 188

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Dispositions of Real Estate and Discontinued Operations - Narrative (Details)	1 Months Ended		3 Months Ended				6 Months Ended
	Mar. 31, 2023 USD ($) property	Jan. 31, 2023 USD ($) property	Jun. 30, 2023 USD ($) property	Sep. 30, 2022 USD ($) property	Jun. 30, 2022 USD ($) property	Mar. 31, 2022 USD ($) property	Jun. 30, 2023 USD ($) property	Jun. 30, 2022 USD ($)	Dec. 31, 2022 USD ($) property
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Gain (loss) on sales of real estate, net			$ 4,885,000		$ 10,340,000		$ 86,463,000	$ 14,196,000
Assets held for sale, net			8,282,000				8,282,000		$ 49,866,000
Impairment of real estate			0		$ 0		0	0
Planned MOB Demolition, Tenant Relocation and Other Costs
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Expense on other								$ 14,000,000
Held-for-sale
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Assets held for sale, net			8,000,000				8,000,000		50,000,000
Liabilities related to assets held for sale, net									4,000,000
Total asset of discontinued operation									$ 0
Total liabilities of discontinued operation			$ 0				$ 0
Lab
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Number of properties sold | property		2				1
Proceeds from sale of buildings		$ 113,000,000				$ 14,000,000
Gain (loss) on sales of real estate, net		$ 60,000,000				$ 4,000,000
Lab | Held-for-sale
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Number of properties classified as held for sale | property			1				1		2
Net real estate assets									$ 44,000,000
Outpatient Medical Buildings
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Number of properties sold | property	2			2	3
Proceeds from sale of buildings	$ 32,000,000			$ 9,000,000	$ 27,000,000
Gain (loss) on sales of real estate, net	$ 21,000,000			$ 1,000,000	$ 10,000,000
Outpatient Medical Land Parcel
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Number of properties sold | property					1

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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, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Revenues [Abstract]
Resident fees and services	$ 0	$ 2,825	$ 0	$ 5,480
Total revenues	0	2,825	0	5,480
Costs and expenses:
Operating	0	2,442	0	5,116
Total costs and expenses	0	2,442	0	5,116
Other income (expense):
Gain (loss) on sales of real estate, net	0	2,563	0	2,492
Other income (expense), net	0	16	0	19
Total other income (expense), net	0	2,579	0	2,511
Income (loss) before income taxes and equity income (loss) from unconsolidated joint ventures	0	2,962	0	2,875
Income tax benefit (expense)	0	30	0	370
Equity income (loss) from unconsolidated joint ventures	0	0	0	64
Income (loss) from discontinued operations	$ 0	$ 2,992	$ 0	$ 3,309

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Leases - Lease Income (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Interest and Other Income [Abstract]
Fixed income from operating leases	$ 311,663	$ 296,729	$ 606,179	$ 584,020
Variable income from operating leases	98,304	90,350	196,219	173,209
Interest income from direct financing leases	$ 0	$ 0	$ 0	$ 1,168

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Leases - Narrative (Details) $ in Thousands	3 Months Ended			6 Months Ended
	Jun. 30, 2023 USD ($) property	Mar. 31, 2023 USD ($) lease	Mar. 31, 2022 USD ($)	Jun. 30, 2023 USD ($) property	Jun. 30, 2022 USD ($)	Dec. 31, 2022 property
Lessor, Lease, Description [Line Items]
Proceeds from sale of lease receivable			$ 68,000
Gain on sale of direct financing lease			$ 23,000
Number of properties classified as DFL | property	0			0		0
Straight-line rent receivable				$ 5,431	$ 23,872
Litigation settlement, amount awarded from other party	$ 2,000
Proceeds from legal settlements	$ 2,000
Sorrento Therapeutics, Inc.
Lessor, Lease, Description [Line Items]
Number of leases | lease		4
Straight-line rent receivable		$ 9,000

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Loans Receivable - Schedule of Loans Receivable (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022	Dec. 31, 2021
Financing Receivable, Allowance for Credit Loss [Line Items]
Unamortized discounts, fees, and costs	$ (957)	$ (808)
Reserve for loan losses	(8,366)	(8,280)	$ (1,813)
Loans receivable, net	214,030	374,832
Loans and Leases Receivable, Remaining Commitments	40,000	40,000
Secured Loans
Financing Receivable, Allowance for Credit Loss [Line Items]
Financing receivable, gross	188,319	350,837
Reserve for loan losses	(8,366)	(8,280)	$ (1,804)
CCRC resident loans
Financing Receivable, Allowance for Credit Loss [Line Items]
Financing receivable, gross	$ 35,034	$ 33,083

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Loans Receivable - Narrative (Details) $ in Thousands	1 Months Ended											5 Months Ended	6 Months Ended
	Jun. 30, 2023 USD ($)	May 31, 2023 USD ($) loan	Apr. 30, 2023 USD ($) loan	Feb. 28, 2023 USD ($) loan	Dec. 31, 2022 USD ($) loan	Nov. 30, 2022 USD ($)	Jul. 31, 2022 USD ($)	May 31, 2022 USD ($)	Feb. 28, 2022 USD ($)	Jun. 30, 2021 USD ($)	Jan. 31, 2021 USD ($) facility	May 31, 2023 loan	Jun. 30, 2023 USD ($)	Jun. 30, 2022 USD ($)
Loans Receivable:
Net cash provided by financing activities													$ (299,377)	$ (72,082)
Financing receivable, after allowance for credit loss	$ 214,030				$ 374,832								214,030
Loans receivable, extension fee				$ 1,000
Credit loss reserve on unfunded loan commitments	1,100				$ 800								1,100
SHOP
Loans Receivable:
Proceeds from sale of property											$ 230,000
Net cash provided by financing activities											$ 150,000
SHOP
Loans Receivable:
Number of assets to be sold | facility											16
Secured Mortgage Loans
Loans Receivable:
Proceeds from the collection of loans receivable				102,000
Secured Mortgage Loans | Other
Loans Receivable:
Proceeds from the collection of loans receivable		$ 21,000	$ 14,000	$ 35,000				$ 2,000
Number of secured loans | loan		1	1	1	4							4
Loans receivable, outstanding balance					$ 61,000
Loans receivable, term					1 year
Secured Mortgage Loans | Secured Overnight Financing Rate (SOFR)
Loans Receivable:
Loans receivable, basis spread on variable rate				0.11%
Secured Mortgage Loans | Secured Overnight Financing Rate (SOFR) | Other
Loans Receivable:
Loans receivable, conversion of basis spread on variable rate		0.10%
Loans receivable, basis spread on variable rate					0.11%
Secured Mortgage Loans | Secured Overnight Financing Rate (SOFR), First Six Months
Loans Receivable:
Loans receivable, basis spread on variable rate				6.00%
Secured Mortgage Loans | Secured Overnight Financing Rate (SOFR), First Six Months | Other
Loans Receivable:
Loans receivable, basis spread on variable rate					8.50%
Secured Mortgage Loans | Secured Overnight Financing Rate (SOFR), Last Six Months
Loans Receivable:
Loans receivable, basis spread on variable rate				7.00%
Secured Mortgage Loans | Secured Overnight Financing Rate (SOFR), Last Six Months | Other
Loans Receivable:
Loans receivable, basis spread on variable rate					10.50%
Secured Mortgage Loans | Other
Loans Receivable:
Proceeds from the collection of loans receivable		$ 12,000
Number of secured loans | loan		2
Mezzanine | Other
Loans Receivable:
Proceeds from the collection of loans receivable						$ 1,000
Other Non-Reporting Segment | CCRC JV | Brookedale MTCA | Lessor Asset Under Operating Lease
Loans Receivable:
Financing receivable, after allowance for credit loss	35,000				$ 33,000								35,000
Sunrise Senior Housing Portfolio | SHOP
Loans Receivable:
Net cash provided by financing activities											$ 410,000
Capital expenditure funding, amount committed											$ 92,000		40,000
Capital expenditure funding, cost of capital, percent committed											65.00%
Capital expenditure funding, amount funded													400
Sunrise Senior Housing Portfolio | SHOP
Loans Receivable:
Number of assets to be sold | facility											32
Proceeds from sale of property											$ 664,000
Proceeds from the collection of loans receivable					10,000		$ 27,000		$ 8,000	$ 246,000
Financing receivable, after allowance for credit loss	$ 120,000				$ 120,000								$ 120,000
Sunrise Senior Housing Portfolio | SHOP | Secured Overnight Financing Rate (SOFR)
Loans Receivable:
Loans receivable, conversion of basis spread on variable rate	0.10%

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Loans Receivable - Schedule of Loans Receivable by Origination Year (Details) $ in Thousands	Jun. 30, 2023 USD ($)
Secured Mortgage Loans
Loans receivable
2023	$ 0
2022	0
2021	162,813
2020	16,183
2019	0
Prior	0
Total	178,996
CCRC resident loans
Loans receivable
2023	26,348
2022	8,686
2021	0
2020	0
2019	0
Prior	0
Total	35,034
Performing loans | Secured Mortgage Loans
Loans receivable
2023	0
2022	0
2021	162,813
2020	16,183
2019	0
Prior	0
Total	178,996
Performing loans | CCRC resident loans
Loans receivable
2023	26,348
2022	8,686
2021	0
2020	0
2019	0
Prior	0
Total	35,034
Watch list loans | Secured Mortgage Loans
Loans receivable
2023	0
2022	0
2021	0
2020	0
2019	0
Prior	0
Total	0
Watch list loans | CCRC resident loans
Loans receivable
2023	0
2022	0
2021	0
2020	0
2019	0
Prior	0
Total	0
Workout loans | Secured Mortgage Loans
Loans receivable
2023	0
2022	0
2021	0
2020	0
2019	0
Prior	0
Total	0
Workout loans | CCRC resident loans
Loans receivable
2023	0
2022	0
2021	0
2020	0
2019	0
Prior	0
Total	0
Current period gross write-offs | Secured Mortgage Loans
Loans receivable
2023	0
2022	0
2021	0
2020	0
2019	0
Prior	0
Total	0
Current period gross write-offs | CCRC resident loans
Loans receivable
2023	0
2022	0
2021	0
2020	0
2019	0
Prior	0
Total	0
Current period recoveries | Secured Mortgage Loans
Loans receivable
2023	0
2022	0
2021	0
2020	0
2019	0
Prior	0
Total	0
Current period recoveries | CCRC resident loans
Loans receivable
2023	0
2022	0
2021	0
2020	0
2019	0
Prior	0
Total	0
Current period net write-offs | Secured Mortgage Loans
Loans receivable
2023	0
2022	0
2021	0
2020	0
2019	0
Prior	0
Total	0
Current period net write-offs | CCRC resident loans
Loans receivable
2023	0
2022	0
2021	0
2020	0
2019	0
Prior	0
Total	$ 0

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Loans Receivable - Schedule of Reserve for Loan Losses (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2023	Dec. 31, 2022
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Reserve for loan losses, beginning of period	$ 8,280	$ 1,813
Provision for expected loan losses	2,882	6,534
Expected loan losses (recoveries) related to loans sold or repaid	(2,796)	(67)
Reserve for loan losses, end of period	8,366	8,280
Secured Loans
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Reserve for loan losses, beginning of period	8,280	1,804
Provision for expected loan losses	2,882	6,527
Expected loan losses (recoveries) related to loans sold or repaid	(2,796)	(51)
Reserve for loan losses, end of period	8,366	8,280
Other
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Reserve for loan losses, beginning of period	0	9
Provision for expected loan losses	0	7
Expected loan losses (recoveries) related to loans sold or repaid	0	(16)
Reserve for loan losses, end of period	$ 0	$ 0

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Investments in and Advances to Unconsolidated Joint Ventures (Details) $ in Thousands	1 Months Ended
	Apr. 30, 2023 USD ($) property	Apr. 28, 2023 USD ($) property	Dec. 31, 2021 USD ($)	Jun. 30, 2023 USD ($) property joint_venture	Dec. 31, 2022 USD ($) property	Aug. 31, 2022 joint_venture property
Schedule of Equity Method Investments [Line Items]
Investments in and advances to unconsolidated joint ventures | $				$ 731,956	$ 706,677
Medical Office JVs
Schedule of Equity Method Investments [Line Items]
Property count	2
Number of unconsolidated joint ventures (in joint ventures) | joint_venture				2
HCP Ventures IV, LLC
Schedule of Equity Method Investments [Line Items]
Property count	1	1
Investment ownership percentage	80.00%	80.00%		20.00%
Cash paid | $	$ 4,000	$ 4,000
Suburban Properties, LLC
Schedule of Equity Method Investments [Line Items]
Investment ownership percentage				67.00%
Other Non-Reporting Segment | SWF SH JV
Schedule of Equity Method Investments [Line Items]
Property count				19
Investment ownership percentage				54.00%
Equity method investments | $				$ 341,894	345,978
Lab | South San Francisco JVs
Schedule of Equity Method Investments [Line Items]
Property count				7
Investment ownership percentage				70.00%		70.00%
Equity method investments | $				$ 337,450	309,969
Number of unconsolidated joint ventures (in joint ventures) | joint_venture						7
Lab | Lab JV
Schedule of Equity Method Investments [Line Items]
Property count				1
Investment ownership percentage				49.00%
Equity method investments | $				$ 28,863	26,601
Lab | Needham Land Parcel JV
Schedule of Equity Method Investments [Line Items]
Property count				0
Investment ownership percentage			38.00%	38.00%
Equity method investments | $				$ 15,697	$ 15,391
Cash paid | $			$ 13,000
Lab | Life Science JV in San Francisco, California
Schedule of Equity Method Investments [Line Items]
Property count						7
Lab | Life Science JV in San Francisco, California | Life Science JV in San Francisco, California
Schedule of Equity Method Investments [Line Items]
Investment ownership percentage						30.00%
Outpatient Medical
Schedule of Equity Method Investments [Line Items]
Property count					3
Outpatient Medical | Medical Office JVs
Schedule of Equity Method Investments [Line Items]
Property count				2
Equity method investments | $				$ 8,052	$ 8,738
Outpatient Medical | Medical Office JVs | Minimum
Schedule of Equity Method Investments [Line Items]
Investment ownership percentage				20.00%
Outpatient Medical | Medical Office JVs | Maximum
Schedule of Equity Method Investments [Line Items]
Investment ownership percentage				67.00%

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Intangibles - Intangibles Lease Assets (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2023	Dec. 31, 2022
Intangibles [Abstract]
Gross intangible lease assets	$ 758,282	$ 770,285
Accumulated depreciation and amortization	(393,829)	(352,224)
Intangible assets, net	$ 364,453	$ 418,061
Weighted average remaining amortization period in years	5 years	5 years
Finite-Lived Intangible Assets [Line Items]
Intangible assets, net	$ 364,453	$ 418,061
Discontinued Operations, Held-for-sale or Disposed of by Sale
Intangibles [Abstract]
Intangible assets, net		2,000
Finite-Lived Intangible Assets [Line Items]
Intangible assets, net		$ 2,000

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Intangibles - Intangibles Lease Liabilities (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2023	Dec. 31, 2022
Intangibles [Abstract]
Gross intangible lease liabilities	$ 231,659	$ 237,464
Accumulated depreciation and amortization	(91,599)	(81,271)
Intangible liabilities, net	$ 140,060	$ 156,193
Weighted average remaining amortization period in years	7 years	7 years

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Intangibles - Narrative (Details) - USD ($) $ in Millions	6 Months Ended	12 Months Ended
	Jun. 30, 2023	Dec. 31, 2022
Finite-Lived Intangible Assets [Line Items]
Intangible assets acquired	$ 0.5	$ 7.0
Weighted average remaining amortization period in years	5 years	5 years
Intangible liabilities acquired		$ 6.0
Weighted average remaining amortization period, liabilities	7 years	7 years
Other Property
Finite-Lived Intangible Assets [Line Items]
Weighted average remaining amortization period in years	5 years	7 years
Weighted average remaining amortization period, liabilities		11 years

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Debt - Bank Line of Credit and Term Loan (Details)			1 Months Ended	6 Months Ended
	Aug. 22, 2022 USD ($) loan	May 23, 2019 USD ($) renewal_option	Sep. 30, 2021 USD ($) renewal_option	Jun. 30, 2023 USD ($)	Dec. 31, 2022 USD ($)	Oct. 31, 2022 USD ($)	Aug. 31, 2022 derivative_held
Debt Instrument
Bank line of credit and commercial paper				$ 329,000,000	$ 995,606,000
Long-term Debt				$ 6,568,652,000
Interest rate swap instruments | Designated as Hedging Instrument
Debt Instrument
Number of interest-rate contracts held | derivative_held							2
Term Loan Agreement
Debt Instrument
Number of loans | loan	2
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, minimum				$ 7,700,000,000
Term Loan Agreement | Interest rate swap instruments
Debt Instrument
Pay Rate				3.76%
Bank Line  of Credit
Debt Instrument
Long-term Debt				$ 0
Revolving Credit Facility | Bank Line  of Credit
Debt Instrument
Line of credit facility, maximum borrowing capacity		$ 2,500,000,000	$ 3,000,000,000
Number of extensions | renewal_option		2	2
Length of debt instrument extension period (in months)		6 months	6 months
Debt Instrument, interest rate, reduction available for sustainability metrics				0.00025
Line of credit facility additional aggregate amount, maximum			$ 750,000,000
Bank line of credit and commercial paper				$ 0	0
Revolving Credit Facility | Bank Line  of Credit | Secured Overnight Financing Rate (SOFR)
Debt Instrument
Debt Instrument, basis spread on variable rate				0.85%
Debt instrument, facility fee (as a percent)				0.15%
Term Loan Facilities | Bank Line  of Credit | Term Loan Agreement
Debt Instrument
Length of debt instrument extension period (in months)	1 year
Debt Instrument, interest rate, reduction available for sustainability metrics	0.0001
Aggregate principal amount	$ 500,000,000					$ 500,000,000
Debt instrument, period after closing	180 days
Debt instrument, term (in months)	4 years 6 months
Long-term Debt				$ 500,000,000	$ 500,000,000
Debt instrument, margin rate				0.94%
Line of credit facility, loan feature, higher borrowing capacity option				$ 500,000,000
Term Loan Facilities One | Bank Line  of Credit | Term Loan Agreement
Debt Instrument
Line of credit facility, maximum borrowing capacity	$ 250,000,000
Term Loan Facilities Two | Bank Line  of Credit | Term Loan Agreement
Debt Instrument
Line of credit facility, maximum borrowing capacity	$ 250,000,000
Debt instrument, term (in months)	5 years

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Debt - Commercial Paper Program (Details) - Commercial Paper Program - USD ($)	6 Months Ended	12 Months Ended
	Jun. 30, 2023	Dec. 31, 2022
Debt Instrument
Maximum outstanding amount capacity	$ 2,000,000,000	$ 2,000,000,000
Borrowings	$ 329,000,000	$ 996,000,000
Debt instrument, term (in months)	21 days	2 months
Weighted-average interest rate (as a percent)	5.45%	4.90%

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Debt - Senior Unsecured Notes (Details) - USD ($)	Jun. 30, 2023	May 10, 2023	Jan. 17, 2023	Dec. 31, 2022
Debt Instrument
Principal balance on debt	$ 6,621,593,000
Senior Unsecured Note
Debt Instrument
Principal balance on debt	$ 5,450,000,000			$ 4,700,000,000
Senior Unsecured Note | Unsecured Note 5.25 Percent
Debt Instrument
Aggregate principal amount		$ 350,000,000	$ 400,000,000
Coupon Rate		5.25%	5.25%

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Debt - Mortgage Debt (Details) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023 USD ($) facility	Jun. 30, 2022 USD ($)	Jun. 30, 2023 USD ($) facility	Jun. 30, 2022 USD ($)	Dec. 31, 2022 USD ($) property facility	Aug. 31, 2022 derivative_held	Apr. 30, 2022 derivative_held
Debt Instrument
Principal balance on debt	$ 6,621,593		$ 6,621,593
Interest rate swap instruments | Designated as Hedging Instrument
Debt Instrument
Number of interest-rate contracts held | derivative_held						2
Interest rate swap instruments | Cash Flow Hedging | Designated as Hedging Instrument
Debt Instrument
Number of interest-rate contracts held | derivative_held							2
Outpatient Medical Buildings
Debt Instrument
Property count | property					3
Outpatient Medical Buildings | Mortgage Debt
Debt Instrument
Property count | facility	13		13
Aggregate principal amount	$ 142,000		$ 142,000
Mortgage Debt
Debt Instrument
Principal balance on debt	342,593		342,593		$ 345,000
Debt instrument, collateral, healthcare facilities carrying value	778,000		778,000		$ 793,000
Debt instrument, periodic payment	$ 1,000	$ 1,000	$ 3,000	$ 3,000
Mortgage Debt | Outpatient Medical Buildings
Debt Instrument
Property count | facility	15		15		15
Mortgage Debt | CCRC
Debt Instrument
Property count | facility	3		3		3

XML

Debt - Debt Maturities (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2023	Dec. 31, 2022
Debt Instrument
2023	$ 87,471
2024	7,024
2025	803,209
2026	1,223,523
2027	950,366
Thereafter	3,550,000
Total debt before discount, net	6,621,593
Premiums, (discounts), and debt issuance costs, net	(52,941)
Long-term debt	6,568,652
Bank Line  of Credit
Debt Instrument
2023	0
2024	0
2025	0
2026	0
2027	0
Thereafter	0
Total debt before discount, net	0
Premiums, (discounts), and debt issuance costs, net	0
Long-term debt	0
Commercial Paper
Debt Instrument
2023	0
2024	0
2025	0
2026	329,000
2027	0
Thereafter	0
Total debt before discount, net	329,000
Premiums, (discounts), and debt issuance costs, net	0
Long-term debt	329,000
Term Loans
Debt Instrument
2023	0
2024	0
2025	0
2026	0
2027	500,000
Thereafter	0
Total debt before discount, net	500,000
Premiums, (discounts), and debt issuance costs, net	(3,618)
Long-term debt	496,382
Senior Unsecured Note
Debt Instrument
2023	0
2024	0
2025	800,000
2026	650,000
2027	450,000
Thereafter	3,550,000
Total debt before discount, net	5,450,000	$ 4,700,000
Premiums, (discounts), and debt issuance costs, net	(50,496)
Long-term debt	$ 5,399,504
Weighted-average interest rate (as a percent)	3.66%
Weighted-average maturity (in years)	6 years
Senior Unsecured Note | 2023
Debt Instrument
Interest Rate	0.00%
Senior Unsecured Note | 2024
Debt Instrument
Interest Rate	0.00%
Senior Unsecured Note | 2025
Debt Instrument
Interest Rate	3.92%
Senior Unsecured Note | 2026
Debt Instrument
Interest Rate	3.40%
Senior Unsecured Note | 2027
Debt Instrument
Interest Rate	1.54%
Senior Unsecured Note | Thereafter
Debt Instrument
Interest Rate	3.92%
Senior Unsecured Note | Minimum
Debt Instrument
Interest Rate	1.54%
Senior Unsecured Note | Maximum
Debt Instrument
Interest Rate	6.87%
Mortgage Debt
Debt Instrument
2023	$ 87,471
2024	7,024
2025	3,209
2026	244,523
2027	366
Thereafter	0
Total debt before discount, net	342,593	$ 345,000
Premiums, (discounts), and debt issuance costs, net	1,173
Long-term debt	$ 343,766
Weighted-average interest rate (as a percent)	4.31%
Weighted-average maturity (in years)	2 years
Mortgage Debt | 2023
Debt Instrument
Interest Rate	3.80%
Mortgage Debt | 2024
Debt Instrument
Interest Rate	6.61%
Mortgage Debt | 2025
Debt Instrument
Interest Rate	3.82%
Mortgage Debt | 2026
Debt Instrument
Interest Rate	4.44%
Mortgage Debt | 2027
Debt Instrument
Interest Rate	5.91%
Mortgage Debt | Thereafter
Debt Instrument
Interest Rate	0.00%
Mortgage Debt | Minimum
Debt Instrument
Interest Rate	3.44%
Mortgage Debt | Maximum
Debt Instrument
Interest Rate	8.76%

XML

Commitments and Contingencies (Details)	Jun. 30, 2023 property
Lab JV | Lab
Loss Contingencies [Line Items]
Investment ownership percentage	49.00%
Indemnification Agreement
Loss Contingencies [Line Items]
Number of properties may be contributed in the agreement	29

XML

Equity and Redeemable Noncontrolling Interests - Dividends (Details) - $ / shares		3 Months Ended		6 Months Ended
	Jul. 27, 2023	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Subsequent Event [Line Items]
Dividends declared (in dollars per share)		$ 0.30	$ 0.30	$ 0.60	$ 0.60
Dividends paid (in dollars per share)		$ 0.30	$ 0.30	$ 0.60	$ 0.60
Subsequent Event
Subsequent Event [Line Items]
Dividends declared (in dollars per share)	$ 0.30

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Equity and Redeemable Noncontrolling Interests - ATM Program (Details) - USD ($)	1 Months Ended	3 Months Ended		6 Months Ended		12 Months Ended
	Dec. 31, 2022	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2021
Subsidiary or Equity Method Investee [Line Items]
Issuance of common stock, net		$ 183,000	$ 327,000	$ 357,000	$ 656,000
At-The-Market Program
Subsidiary or Equity Method Investee [Line Items]
ATM aggregate amount authorized				1,500,000,000
Maximum shares issuable under forward equity sales agreement (in shares)	9,100,000
Forward equity sales agreement, initial net price (in dollars per share)	$ 34.01
Issuance of common stock, net	$ 308,000,000	$ 0		$ 0
At-The-Market Program | Minimum
Subsidiary or Equity Method Investee [Line Items]
Option indexed to issuers equity, term (in years)				1 year
At-The-Market Program | Maximum
Subsidiary or Equity Method Investee [Line Items]
Option indexed to issuers equity, term (in years)				2 years
2023 At-The-Market Program
Subsidiary or Equity Method Investee [Line Items]
ATM aggregate amount remaining				$ 1,500,000,000
2020 ATM Program
Subsidiary or Equity Method Investee [Line Items]
Maximum shares issuable under forward equity sales agreement (in shares)						9,100,000
Forward equity sales agreement, initial net price (in dollars per share)						$ 35.25
ATM Direct Issuances | Common Stock
Subsidiary or Equity Method Investee [Line Items]
Issuance of common stock, net (in shares)		0	0	0	0

XML

Equity and Redeemable Noncontrolling Interests - Share Repurchase Program (Details) - USD ($) $ / shares in Units, shares in Millions	1 Months Ended
	Aug. 31, 2022	Jun. 30, 2023	Aug. 01, 2022
Equity [Abstract]
Stock repurchase program, authorized amount			$ 500,000,000
Common stock repurchased (in shares)	2.1
Average cost per share (in dollars per share)	$ 27.16
Stock repurchase program, total value	$ 56,000,000
Stock repurchase program, remaining authorized repurchase amount		$ 444,000,000

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Equity and Redeemable Noncontrolling Interests - AOCI (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2023 USD ($) plan_participant	Dec. 31, 2022 USD ($)
Accumulated Other Comprehensive Loss
Unrealized gains (losses) on derivatives, net	$ 33,336	$ 30,145
Supplemental Executive Retirement Plan minimum liability	(1,883)	(2,011)
Total accumulated other comprehensive income (loss)	$ 31,453	$ 28,134
Number of participants | plan_participant	1

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Equity and Redeemable Noncontrolling Interests - Healthpeak OP (Details) unit in Millions	5 Months Ended	6 Months Ended	12 Months Ended	24 Months Ended
	Jun. 30, 2023 unit	Jun. 30, 2023 interest	Dec. 31, 2022 interest	Dec. 31, 2024 interest	Feb. 10, 2023
Noncontrolling Interest [Line Items]
Number of redeemable noncontrolling interest redemptions			1
Number of interests redeemable over time		3
Healthpeak OP
Noncontrolling Interest [Line Items]
Noncontrolling interest, ownership percentage by parent					100.00%
Healthpeak OP | Total Noncontrolling Interests
Noncontrolling Interest [Line Items]
Issuance of OP units (in units) | unit	2
Forecast
Noncontrolling Interest [Line Items]
Number of interests redeemable over time				2

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Equity and Redeemable Noncontrolling Interests - DownREITs (Details) $ in Thousands, shares in Millions	Jun. 30, 2023 USD ($) entity shares	Dec. 31, 2022 USD ($) shares
Noncontrolling Interest [Line Items]
Non-managing member unitholders	$ 210,549	$ 200,176
Total Noncontrolling Interests
Noncontrolling Interest [Line Items]
DownREIT units outstanding (in shares) | shares	5	5
Common stock issuable (in shares) | shares	7
Number of DownREIT LLCs | entity	7
Non-managing member unitholders	$ 200,000	$ 200,000
Minority interest in preferred unit holders, fair value	$ 146,000	$ 183,000

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Earnings Per Common Share - Narrative (Details) - shares	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Dilutive potential common shares - forward equity agreements (in shares)	0	0	0	0
Forward Equity Sales Agreements
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Shares of anti-dilutive securities excluded from earnings per share calculation (in shares)	0	9,100,000	0	9,100,000
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	7,000,000

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Earnings Per Common Share - Computation of EPS (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Numerator
Income (loss) from continuing operations	$ 56,199	$ 69,301	$ 190,706	$ 144,327
Noncontrolling interests' share in continuing operations	(4,300)	(3,955)	(19,855)	(7,685)
Income (loss) from continuing operations attributable to Healthpeak Properties, Inc.	51,899	65,346	170,851	136,642
Less: Participating securities' share in continuing operations	(149)	(281)	(1,402)	(2,258)
Income (loss) from continuing operations applicable to common shares	51,750	65,065	169,449	134,384
Income (loss) from discontinued operations	0	2,992	0	3,309
Net income (loss) applicable to common shares	51,750	68,057	$ 169,449	$ 137,693
Net income (loss) applicable to common shares	$ 51,750	$ 68,057
Denominator
Basic weighted average shares outstanding (in shares)	547,026	539,558	546,936	539,456
Dilutive potential common shares - equity awards (in shares)	268	257	268	245
Diluted weighted average common shares (in shares)	547,294	539,815	547,204	539,701
Basic earnings (loss) per common share
Continuing operations (in dollars per share)	$ 0.09	$ 0.12	$ 0.31	$ 0.25
Discontinued operations (in dollars per share)	0	0.01	0	0.01
Net income (loss) applicable to common shares (in dollars per share)	0.09	0.13	0.31	0.26
Diluted earnings (loss) per common share
Continuing operations (in dollars per share)	0.09	0.12	0.31	0.25
Discontinued operations (in dollars per share)	0	0.01	0	0.01
Net income (loss) applicable to common shares (in dollars per share)	$ 0.09	$ 0.13	$ 0.31	$ 0.26
Outstanding equity awards (in shares)	1,000	1,000	1,000	1,000

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Segment Disclosures - Narrative (Details)	Jun. 30, 2023 property
Segment Reporting [Abstract]
Number of facilities owned by unconsolidated joint venture	19

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Segment Disclosures - Summary Information for the Reportable Segments (Details) - USD ($) $ in Thousands	1 Months Ended		3 Months Ended				6 Months Ended
	Mar. 31, 2023	Jan. 31, 2023	Jun. 30, 2023	Sep. 30, 2022	Jun. 30, 2022	Mar. 31, 2022	Jun. 30, 2023	Jun. 30, 2022
Segment Reporting Information, Revenue for Reportable Segment [Abstract]
Total revenues			$ 545,430		$ 517,932		$ 1,071,108	$ 1,016,304
Government grant income			47		209		184	6,762
Less: Interest income			(5,279)		(5,493)		(11,442)	(10,987)
Healthpeak’s share of unconsolidated joint venture total revenues			22,943		20,243		46,198	40,451
Healthpeak’s share of unconsolidated joint venture government grant income							229	648
Noncontrolling interests’ share of consolidated joint venture total revenues			(8,816)		(9,005)		(17,922)	(17,882)
Operating expenses			(221,837)		(215,044)		(444,925)	(422,291)
Healthpeak’s share of unconsolidated joint venture operating expenses			(15,754)		(14,934)		(32,249)	(29,771)
Noncontrolling interests’ share of consolidated joint venture operating expenses			2,444		2,745		5,079	5,366
Adjustments to NOI			(19,688)		(24,539)		(24,310)	(42,206)
Adjusted NOI			299,490		272,114		591,950	546,394
Plus: Adjustments to NOI			19,688		24,539		24,310	42,206
Interest income			5,279		5,493		11,442	10,987
Interest expense			(49,074)		(41,867)		(97,037)	(79,453)
Depreciation and amortization			(197,573)		(180,489)		(376,798)	(358,222)
General and administrative			(25,936)		(24,781)		(50,483)	(48,612)
Transaction costs			(637)		(612)		(3,062)	(908)
Impairments and loan loss reserves, net			(2,607)		(139)		(394)	(271)
Gain (loss) on sales of real estate, net			4,885		10,340		86,463	14,196
Other income (expense), net			1,955		2,861		2,727	21,177
Less: Government grant income			(47)		(209)		(184)	(6,762)
Less: Healthpeak’s share of unconsolidated joint venture NOI			(7,189)		(5,309)		(14,178)	(11,328)
Plus: Noncontrolling interests’ share of consolidated joint venture NOI			6,372		6,260		12,843	12,516
Income (loss) before income taxes and equity income (loss) from unconsolidated joint ventures			54,606		68,201		187,599	141,920
Income tax benefit (expense)			(1,136)		718		(1,438)	(59)
Equity income (loss) from unconsolidated joint ventures			2,729		382		4,545	2,466
Income (loss) from continuing operations			56,199		69,301		190,706	144,327
Income (loss) from discontinued operations			0		2,992		0	3,309
Net income (loss)			56,199		72,293		190,706	147,636
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
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			(45,327)		(38,061)		(89,553)	(72,746)
Depreciation and amortization			0		0		0	0
General and administrative			(25,936)		(24,781)		(50,483)	(48,612)
Transaction costs			(343)		(443)		(2,259)	(443)
Impairments and loan loss reserves, net			0		0		0	0
Gain (loss) on sales of real estate, net			0		0		0	0
Other income (expense), net			1,067		920		2,298	1,828
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			(70,539)		(62,365)		(139,997)	(119,973)
Income tax benefit (expense)			(1,136)		718		(1,438)	(59)
Equity income (loss) from unconsolidated joint ventures			0		0		0	0
Income (loss) from continuing operations			(71,675)		(61,647)		(141,435)	(120,032)
Income (loss) from discontinued operations			0		2,992		0	3,309
Net income (loss)			(71,675)		(58,655)		(141,435)	(116,723)
Lab
Segment Reporting Information, Revenue for Reportable Segment [Abstract]
Gain (loss) on sales of real estate, net		$ 60,000				$ 4,000
Lab | Operating Segment
Segment Reporting Information, Revenue for Reportable Segment [Abstract]
Total revenues			223,306		207,771		428,770	401,826
Government grant income			0		0		0	0
Less: Interest income			0		0		0	0
Healthpeak’s share of unconsolidated joint venture total revenues			1,928		1,267		4,093	2,698
Healthpeak’s share of unconsolidated joint venture government grant income							0	0
Noncontrolling interests’ share of consolidated joint venture total revenues			(151)		(62)		(294)	(119)
Operating expenses			(54,832)		(49,446)		(112,397)	(97,635)
Healthpeak’s share of unconsolidated joint venture operating expenses			(848)		(483)		(2,030)	(966)
Noncontrolling interests’ share of consolidated joint venture operating expenses			35		19		75	38
Adjustments to NOI			(14,943)		(21,644)		(15,776)	(35,756)
Adjusted NOI			154,495		137,422		302,441	270,086
Plus: Adjustments to NOI			14,943		21,644		15,776	35,756
Interest income			0		0		0	0
Interest expense			0		0		0	0
Depreciation and amortization			(93,235)		(79,673)		(168,817)	(157,811)
General and administrative			0		0		0	0
Transaction costs			0		(35)		(158)	(327)
Impairments and loan loss reserves, net			0		0		0	0
Gain (loss) on sales of real estate, net			0		0		60,498	3,856
Other income (expense), net			(2)		29		2	20
Less: Government grant income			0		0		0	0
Less: Healthpeak’s share of unconsolidated joint venture NOI			(1,080)		(784)		(2,063)	(1,732)
Plus: Noncontrolling interests’ share of consolidated joint venture NOI			116		43		219	81
Income (loss) before income taxes and equity income (loss) from unconsolidated joint ventures			75,237		78,646		207,898	149,929
Income tax benefit (expense)			0		0		0	0
Equity income (loss) from unconsolidated joint ventures			1,314		148		1,911	1,114
Income (loss) from continuing operations			76,551		78,794		209,809	151,043
Income (loss) from discontinued operations			0		0		0	0
Net income (loss)			76,551		78,794		209,809	151,043
Outpatient Medical
Segment Reporting Information, Revenue for Reportable Segment [Abstract]
Gain (loss) on sales of real estate, net	$ 21,000			$ 1,000	10,000
Outpatient Medical | Operating Segment
Segment Reporting Information, Revenue for Reportable Segment [Abstract]
Total revenues			186,661		179,308		373,628	356,571
Government grant income			0		0		0	0
Less: Interest income			0		0		0	0
Healthpeak’s share of unconsolidated joint venture total revenues			754		761		1,498	1,493
Healthpeak’s share of unconsolidated joint venture government grant income							0	0
Noncontrolling interests’ share of consolidated joint venture total revenues			(8,665)		(8,943)		(17,628)	(17,763)
Operating expenses			(65,350)		(63,321)		(129,749)	(124,491)
Healthpeak’s share of unconsolidated joint venture operating expenses			(288)		(301)		(595)	(600)
Noncontrolling interests’ share of consolidated joint venture operating expenses			2,409		2,726		5,004	5,328
Adjustments to NOI			(4,008)		(2,949)		(7,825)	(6,495)
Adjusted NOI			111,513		107,281		224,333	214,043
Plus: Adjustments to NOI			4,008		2,949		7,825	6,495
Interest income			0		0		0	0
Interest expense			(1,924)		(1,930)		(3,845)	(2,966)
Depreciation and amortization			(71,722)		(68,873)		(142,881)	(136,646)
General and administrative			0		0		0	0
Transaction costs			(16)		(70)		(148)	(74)
Impairments and loan loss reserves, net			0		0		0	0
Gain (loss) on sales of real estate, net			0		10,340		21,312	10,340
Other income (expense), net			235		1,264		439	12,201
Less: Government grant income			0		0		0	0
Less: Healthpeak’s share of unconsolidated joint venture NOI			(466)		(460)		(903)	(893)
Plus: Noncontrolling interests’ share of consolidated joint venture NOI			6,256		6,217		12,624	12,435
Income (loss) before income taxes and equity income (loss) from unconsolidated joint ventures			47,884		56,718		118,756	114,935
Income tax benefit (expense)			0		0		0	0
Equity income (loss) from unconsolidated joint ventures			184		211		374	411
Income (loss) from continuing operations			48,068		56,929		119,130	115,346
Income (loss) from discontinued operations			0		0		0	0
Net income (loss)			48,068		56,929		119,130	115,346
CCRC | Operating Segment
Segment Reporting Information, Revenue for Reportable Segment [Abstract]
Total revenues			130,184		125,360		257,268	246,920
Government grant income			47		209		184	6,762
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	333
Noncontrolling interests’ share of consolidated joint venture total revenues			0		0		0	0
Operating expenses			(101,655)		(102,277)		(202,779)	(200,165)
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			(728)		0		(678)	0
Adjusted NOI			27,848		23,292		53,995	53,850
Plus: Adjustments to NOI			728		0		678	0
Interest income			0		0		0	0
Interest expense			(1,823)		(1,876)		(3,639)	(3,741)
Depreciation and amortization			(32,616)		(31,943)		(65,100)	(63,765)
General and administrative			0		0		0	0
Transaction costs			(278)		(64)		(497)	(64)
Impairments and loan loss reserves, net			0		0		0	0
Gain (loss) on sales of real estate, net			0		0		0	0
Other income (expense), net			674		630		7	7,141
Less: Government grant income			(47)		(209)		(184)	(6,762)
Less: Healthpeak’s share of unconsolidated joint venture NOI			0		0		0	(333)
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			(5,514)		(10,170)		(14,740)	(13,674)
Income tax benefit (expense)			0		0		0	0
Equity income (loss) from unconsolidated joint ventures			0		0		0	539
Income (loss) from continuing operations			(5,514)		(10,170)		(14,740)	(13,135)
Income (loss) from discontinued operations			0		0		0	0
Net income (loss)			(5,514)		(10,170)		(14,740)	(13,135)
Other Non-reportable | Operating Segment
Segment Reporting Information, Revenue for Reportable Segment [Abstract]
Total revenues			5,279		5,493		11,442	10,987
Government grant income			0		0		0	0
Less: Interest income			(5,279)		(5,493)		(11,442)	(10,987)
Healthpeak’s share of unconsolidated joint venture total revenues			20,261		18,215		40,607	36,260
Healthpeak’s share of unconsolidated joint venture government grant income							229	315
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			(14,618)		(14,150)		(29,624)	(28,205)
Noncontrolling interests’ share of consolidated joint venture operating expenses			0		0		0	0
Adjustments to NOI			(9)		54		(31)	45
Adjusted NOI			5,634		4,119		11,181	8,415
Plus: Adjustments to NOI			9		(54)		31	(45)
Interest income			5,279		5,493		11,442	10,987
Interest expense			0		0		0	0
Depreciation and amortization			0		0		0	0
General and administrative			0		0		0	0
Transaction costs			0		0		0	0
Impairments and loan loss reserves, net			(2,607)		(139)		(394)	(271)
Gain (loss) on sales of real estate, net			4,885		0		4,653	0
Other income (expense), net			(19)		18		(19)	(13)
Less: Government grant income			0		0		0	0
Less: Healthpeak’s share of unconsolidated joint venture NOI			(5,643)		(4,065)		(11,212)	(8,370)
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			7,538		5,372		15,682	10,703
Income tax benefit (expense)			0		0		0	0
Equity income (loss) from unconsolidated joint ventures			1,231		23		2,260	402
Income (loss) from continuing operations			8,769		5,395		17,942	11,105
Income (loss) from discontinued operations			0		0		0	0
Net income (loss)			$ 8,769		$ 5,395		$ 17,942	$ 11,105

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Supplemental Cash Flow Information - Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
Supplemental cash flow information:
Interest paid, net of capitalized interest	$ 90,911	$ 74,327
Income taxes paid (refunded)	2,855	(612)
Capitalized interest	28,182	16,320
Supplemental schedule of non-cash investing and financing activities:
Increase in ROU asset in exchange for new lease liability related to operating leases	121	508
Accrued construction costs	142,826	163,391
Net noncash impact from the consolidation of property previously held in an unconsolidated joint venture	$ 993	$ 0

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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, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Leasing costs, tenant improvements, and recurring capital expenditures			$ 42,233	$ 50,745
Development, redevelopment, and other major improvements of real estate			394,141	366,404
Depreciation and amortization of real estate, in-place lease, and other intangibles	$ 197,573	$ 180,489	376,798	358,222
Discontinued Operations
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Leasing costs, tenant improvements, and recurring capital expenditures			0	21
Development, redevelopment, and other major improvements of real estate			0	18
Depreciation and amortization of real estate, in-place lease, and other intangibles			$ 0	$ 0

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Supplemental Cash Flow Information - Schedule of Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022	Jun. 30, 2022	Dec. 31, 2021
Continuing operations
Cash and cash equivalents	$ 103,780	$ 72,032	$ 73,013	$ 158,287
Restricted cash	56,745	54,802	54,815	53,454
Cash, cash equivalents, and restricted cash	160,525	126,834	127,828	211,741
Discontinued operations
Cash and cash equivalents	0	0	8,070	7,707
Restricted cash	0	0	0	0
Cash, cash equivalents, and restricted cash	0	0	8,070	7,707
Cash and cash equivalents, total	103,780	72,032	81,083	165,994
Restricted cash, total	56,745	54,802	54,815	53,454
Cash, cash equivalents and restricted cash, total	$ 160,525	$ 126,834	$ 135,898	$ 219,448

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Variable Interest Entities - Narrative (Details) $ in Millions	1 Months Ended	6 Months Ended
	Dec. 31, 2021 USD ($)	Jun. 30, 2023 hospital joint_venture	Dec. 31, 2022 USD ($) joint_venture
Lab | Needham Land Parcel JV
Variable Interest Entity [Line Items]
Investment ownership percentage	38.00%	38.00%
Payments to acquire equity method investment | $	$ 13
Unconsolidated Variable Interest Entities
Variable Interest Entity [Line Items]
Number of unconsolidated joint ventures (in joint ventures)		2	2
Number of VIE borrowers with marketable debt securities (in joint ventures)			1
Unconsolidated Variable Interest Entities | Commercial Mortgage-Backed Securities
Variable Interest Entity [Line Items]
Debt securities | $			$ 22
Number of hospitals | hospital		3
Ventures V
Variable Interest Entity [Line Items]
VIE ownership percentage		51.00%
Lab JV
Variable Interest Entity [Line Items]
VIE ownership percentage		98.00%
MSREI JV
Variable Interest Entity [Line Items]
VIE ownership percentage		51.00%
DownREIT Partnerships
Variable Interest Entity [Line Items]
Number of controlling ownership interest entities as a managing member		7

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Variable Interest Entities - Schedule of Variable Interest Entities (Details) $ in Thousands	Jun. 30, 2023 USD ($)
LLC Investment
Variable Interest Entity [Line Items]
Maximum Loss Exposure and Carrying Amount	$ 14,985
Needham Land Parcel JV
Variable Interest Entity [Line Items]
Maximum Loss Exposure and Carrying Amount	$ 15,697

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Variable Interest Entities - Consolidated Assets and Liabilities of VIEs (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022	Jun. 30, 2022	Dec. 31, 2021
ASSETS
Buildings and improvements	$ 13,039,278	$ 12,784,078
Development costs and construction in progress	775,836	760,355
Land	2,661,963	2,667,188
Accumulated depreciation and amortization	(3,379,874)	(3,188,138)
Net real estate	13,097,203	13,023,483
Accounts receivable, net	53,467	53,436
Cash and cash equivalents	103,780	72,032	$ 73,013	$ 158,287
Intangible assets, net	364,453	418,061
Right-of-use asset	234,050	237,318
Other assets, net	739,574	780,722
Total assets	15,603,540	15,771,229
Liabilities
Mortgage debt	343,766	346,599
Intangible liabilities, net	140,060	156,193
Lease liability	204,489	208,515
Accounts payable, accrued liabilities, and other liabilities	682,764	772,485
Deferred revenue	881,870	844,076
Total liabilities	8,477,887	8,482,952
Consolidated Lessees VIE
ASSETS
Buildings and improvements	2,361,693	2,356,905
Development costs and construction in progress	53,917	58,499
Land	314,865	324,714
Accumulated depreciation and amortization	(633,506)	(623,244)
Net real estate	2,096,969	2,116,874
Accounts receivable, net	4,322	6,893
Cash and cash equivalents	22,243	20,586
Restricted cash	489	354
Intangible assets, net	65,227	73,860
Assets held for sale, net	0	30,355
Right-of-use asset	98,451	99,376
Other assets, net	76,603	73,690
Total assets	2,364,304	2,421,988
Liabilities
Mortgage debt	144,736	144,604
Intangible liabilities, net	13,462	15,066
Liabilities related to assets held for sale, net	0	401
Lease liability	99,372	99,039
Accounts payable, accrued liabilities, and other liabilities	59,709	68,979
Deferred revenue	48,907	39,661
Total liabilities	366,186	367,750
Consolidated Lessees VIE | Discontinued Operations
ASSETS
Buildings and improvements	0	39,934
Land	0	1,926
Accumulated depreciation and amortization	0	(15,612)
Net real estate	0	26,248
Intangible assets, net	0	215
Other assets, net	0	3,892
Total assets	0	30,355
Liabilities
Deferred revenue	0	401
Total liabilities	$ 0	$ 401

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Fair Value Measurements (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Summary of financial instruments
Bank line of credit and commercial paper	$ 329,000	$ 995,606
Senior unsecured notes	5,399,504	4,659,451
Mortgage debt	343,766	346,599
Carrying Value
Summary of financial instruments
Loans receivable, net	214,030	374,832
Marketable debt securities	0	21,702
Bank line of credit and commercial paper	329,000	995,606
Term loans	496,382	495,957
Senior unsecured notes	5,399,504	4,659,451
Mortgage debt	343,766	346,599
Carrying Value | Interest rate swap instruments
Summary of financial instruments
Interest rate swap instruments	33,450	30,259
Fair Value | Level 1
Summary of financial instruments
Senior unsecured notes	4,981,027	4,238,124
Fair Value | Level 2
Summary of financial instruments
Loans receivable, net	218,864	369,425
Marketable debt securities	0	21,702
Bank line of credit and commercial paper	329,000	995,606
Term loans	496,382	495,957
Mortgage debt	320,866	330,867
Fair Value | Level 2 | Interest rate swap instruments
Summary of financial instruments
Interest rate swap instruments	$ 33,450	$ 30,259

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Derivative Financial Instruments - Narrative (Details) $ in Millions	3 Months Ended	6 Months Ended
	Jun. 30, 2022 USD ($)	Jun. 30, 2023 USD ($)	Jun. 30, 2022 USD ($)	Feb. 28, 2023 derivative_held	Aug. 31, 2022 USD ($) derivative_held	Apr. 30, 2022 derivative_held	Apr. 30, 2021 USD ($) derivative_held
Derivative [Line Items]
Asset at fair value, changes in fair value resulting from changes in assumptions | $		$ 20.0
Interest rate cap instruments | Not Designated as Hedging Instrument
Derivative [Line Items]
Number of interest-rate contracts held | derivative_held							2
Derivative amount terminated | $							$ 142.0
Increase in the fair value of the interest rate cap agreements | $	$ 0.1		$ 2.0
Interest rate swap instruments | Secured Overnight Financing Rate (SOFR)
Derivative [Line Items]
Number of interest-rate contracts held | derivative_held				2
Interest rate swap instruments | Designated as Hedging Instrument
Derivative [Line Items]
Number of interest-rate contracts held | derivative_held					2
Notional amount | $					$ 500.0
Interest rate swap instruments | Designated as Hedging Instrument | Cash Flow Hedging
Derivative [Line Items]
Number of interest-rate contracts held | derivative_held						2

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Derivative Financial Instruments - Schedule of Derivative Instruments (Details) - Designated as Hedging Instrument - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022	Aug. 31, 2022
Interest rate swap instruments
Derivative [Line Items]
Notional Amount			$ 500,000
Interest Rate Swap, 4.99% Pay Rate | Cash Flow Hedging
Derivative [Line Items]
Notional Amount	$ 51,100
Pay Rate	4.99%
Receive Rate	2.50%
Fair Value	$ 2,525	$ 2,300
Interest Rate Swap, 4.54% Pay Rate | Cash Flow Hedging
Derivative [Line Items]
Notional Amount	$ 91,000
Pay Rate	4.54%
Receive Rate	2.05%
Fair Value	$ 4,496	4,096
Interest Rate Swap, 2.60% Pay Rate | Cash Flow Hedging
Derivative [Line Items]
Notional Amount	$ 250,000
Pay Rate	2.60%
Fair Value	$ 12,659	11,299
Interest Rate Swap, 2.54% Pay Rate | Cash Flow Hedging
Derivative [Line Items]
Notional Amount	$ 250,000
Pay Rate	2.54%
Fair Value	$ 13,770	12,564
Interest Rate Swap, 5.08% Pay Rate | Cash Flow Hedging
Derivative [Line Items]
Notional Amount		$ 51,000
Pay Rate		5.08%
Receive Rate		2.50%
Interest Rate Swap, 4.63% Pay Rate | Cash Flow Hedging
Derivative [Line Items]
Notional Amount		$ 91,000
Pay Rate		4.63%
Receive Rate		2.05%

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Accounts Payable, Accrued Liabilities, and Other Liabilities (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2023	Dec. 31, 2022
Payables and Accruals [Abstract]
Refundable entrance fees	$ 257,624	$ 268,972
Accrued construction costs	142,826	178,626
Accrued interest	59,641	59,291
Other accounts payable and accrued liabilities	222,673	265,596
Accounts payable, accrued liabilities, and other liabilities	682,764	772,485
Severance-related charges	$ 11,000	$ 15,000

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Deferred Revenue - Schedule of Deferred Revenue (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Revenues [Abstract]
Nonrefundable entrance fees	$ 537,821		$ 537,821		$ 518,573
Other deferred revenue	344,049		344,049		325,503
Deferred revenue	881,870		881,870		$ 844,076
Proceeds from nonrefundable entrance fees	31,000	$ 29,000	60,000	$ 50,000
Amortization of nonrefundable entrance fee	20,000	19,000	40,000	38,000
Amortization of other deferred charges	$ 18,000	$ 11,000	$ 31,000	$ 20,000