Segment Disclosures (Tables)

9 Months Ended

Sep. 30, 2023

Summary of Financial Information of Reportable Segments

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

For the three months ended September 30, 2023:


	Lab		Outpatient Medical		CCRC		Other Non-reportable		Corporate Non-segment		Total
Total revenues	$	226,059	$	191,016	$	133,808	$	5,360	$	—	$	556,243

Less: Interest income	—		—		—		(5,360)		—		(5,360)
Healthpeak’s share of unconsolidated joint venture total revenues	2,425		746		—		20,572		—		23,743

Noncontrolling interests’ share of consolidated joint venture total revenues	(154)		(8,735)		—		—		—		(8,889)
Operating expenses	(60,268)		(67,693)		(104,773)		—		—		(232,734)
Healthpeak’s share of unconsolidated joint venture operating expenses	(958)		(301)		—		(15,439)		—		(16,698)
Noncontrolling interests’ share of consolidated joint venture operating expenses	33		2,474		—		—		—		2,507

Adjustments to NOI(1)	(9,842)		(3,547)		—		(27)		—		(13,416)
Adjusted NOI	157,295		113,960		29,035		5,106		—		305,396
Plus: Adjustments to NOI(1)	9,842		3,547		—		27		—		13,416
Interest income	—		—		—		5,360		—		5,360
Interest expense	—		(1,947)		(1,830)		—		(46,733)		(50,510)
Depreciation and amortization	(78,646)		(72,736)		(33,177)		—		—		(184,559)
General and administrative	—		—		—		—		(23,093)		(23,093)
Transaction costs	(51)		(23)		85		—		(47)		(36)
Impairments and loan loss reserves, net	—		—		—		550		—		550


Other income (expense), net	(1)		78		254		(53)		1,203		1,481

Less: Healthpeak’s share of unconsolidated joint venture NOI	(1,467)		(445)		—		(5,133)		—		(7,045)
Plus: Noncontrolling interests’ share of consolidated joint venture NOI	121		6,261		—		—		—		6,382
Income (loss) before income taxes and equity income (loss) from unconsolidated joint ventures	87,093		48,695		(5,633)		5,857		(68,670)		67,342
Income tax benefit (expense)	—		—		—		—		(787)		(787)
Equity income (loss) from unconsolidated joint ventures	1,244		211		—		646		—		2,101

Income (loss) from continuing operations	88,337		48,906		(5,633)		6,503		(69,457)		68,656
Income (loss) from discontinued operations	—		—		—		—		—		—
Net income (loss)	$	88,337	$	48,906	$	(5,633)	$	6,503	$	(69,457)	$	68,656

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(1)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 September 30, 2022:


	Lab		Outpatient Medical		CCRC		Other Non-reportable		Corporate Non-segment		Total
Total revenues	$	207,795	$	184,506	$	122,142	$	5,963	$	—	$	520,406
Government grant income(1)	—		—		4		—		—		4
Less: Interest income	—		—		—		(5,963)		—		(5,963)
Healthpeak’s share of unconsolidated joint venture total revenues	2,938		756		—		18,656		—		22,350
Healthpeak’s share of unconsolidated joint venture government grant income	—		—		—		183		—		183
Noncontrolling interests’ share of consolidated joint venture total revenues	(55)		(8,968)		—		—		—		(9,023)
Operating expenses	(55,162)		(64,782)		(100,264)		—		—		(220,208)
Healthpeak’s share of unconsolidated joint venture operating expenses	(777)		(313)		—		(14,599)		—		(15,689)
Noncontrolling interests’ share of consolidated joint venture operating expenses	21		2,558		—		—		—		2,579

Adjustments to NOI(2)	(15,221)		(4,079)		—		76		—		(19,224)
Adjusted NOI	139,539		109,678		21,882		4,316		—		275,415
Plus: Adjustments to NOI(2)	15,221		4,079		—		(76)		—		19,224
Interest income	—		—		—		5,963		—		5,963
Interest expense	—		(1,964)		(1,887)		—		(40,227)		(44,078)
Depreciation and amortization	(70,141)		(70,917)		(32,132)		—		—		(173,190)
General and administrative	—		—		—		—		(24,549)		(24,549)
Transaction costs	(40)		(94)		(594)		—		—		(728)
Impairments and loan loss reserves, net	—		—		—		(3,407)		—		(3,407)
Gain (loss) on sales of real estate, net	—		554		—		(4,703)		—		(4,149)

Other income (expense), net	311,912		154		(7,086)		—		698		305,678
Less: Government grant income	—		—		(4)		—		—		(4)
Less: Healthpeak’s share of unconsolidated joint venture NOI	(2,161)		(443)		—		(4,240)		—		(6,844)
Plus: Noncontrolling interests’ share of consolidated joint venture NOI	34		6,410		—		—		—		6,444
Income (loss) before income taxes and equity income (loss) from unconsolidated joint ventures	394,364		47,457		(19,821)		(2,147)		(64,078)		355,775
Income tax benefit (expense)	—		—		—		—		3,834		3,834
Equity income (loss) from unconsolidated joint ventures	(877)		206		—		346		—		(325)

Income (loss) from continuing operations	393,487		47,663		(19,821)		(1,801)		(60,244)		359,284
Income (loss) from discontinued operations	—		—		—		—		(1,298)		(1,298)
Net income (loss)	$	393,487	$	47,663	$	(19,821)	$	(1,801)	$	(61,542)	$	357,986

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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 nine months ended September 30, 2023:


	Lab		Outpatient Medical		CCRC		Other Non-reportable		Corporate Non-segment		Total
Total revenues	$	654,829	$	564,644	$	391,076	$	16,802	$	—	$	1,627,351
Government grant income(1)	—		—		184		—		—		184
Less: Interest income	—		—		—		(16,802)		—		(16,802)
Healthpeak’s share of unconsolidated joint venture total revenues	6,519		2,245		—		61,179		—		69,943
Healthpeak’s share of unconsolidated joint venture government grant income	—		—		—		229		—		229
Noncontrolling interests’ share of consolidated joint venture total revenues	(449)		(26,364)		—		—		—		(26,813)
Operating expenses	(172,666)		(197,442)		(307,551)		—		—		(677,659)
Healthpeak’s share of unconsolidated joint venture operating expenses	(2,987)		(895)		—		(45,062)		—		(48,944)
Noncontrolling interests’ share of consolidated joint venture operating expenses	108		7,477		—		—		—		7,585

Adjustments to NOI(2)	(25,618)		(11,373)		(679)		(59)		—		(37,729)
Adjusted NOI	459,736		338,292		83,030		16,287		—		897,345
Plus: Adjustments to NOI(2)	25,618		11,373		679		59		—		37,729
Interest income	—		—		—		16,802		—		16,802
Interest expense	—		(5,791)		(5,470)		—		(136,286)		(147,547)
Depreciation and amortization	(247,463)		(215,617)		(98,277)		—		—		(561,357)
General and administrative	—		—		—		—		(73,576)		(73,576)
Transaction costs	(209)		(171)		(412)		—		(2,306)		(3,098)
Impairments and loan loss reserves, net	—		—		—		156		—		156
Gain (loss) on sales of real estate, net	60,498		21,312		—		4,653		—		86,463

Other income (expense), net	1		517		260		(72)		3,502		4,208
Less: Government grant income	—		—		(184)		—		—		(184)
Less: Healthpeak’s share of unconsolidated joint venture NOI	(3,532)		(1,350)		—		(16,346)		—		(21,228)
Plus: Noncontrolling interests’ share of consolidated joint venture NOI	341		18,887		—		—		—		19,228
Income (loss) before income taxes and equity income (loss) from unconsolidated joint ventures	294,990		167,452		(20,374)		21,539		(208,666)		254,941
Income tax benefit (expense)	—		—		—		—		(2,225)		(2,225)
Equity income (loss) from unconsolidated joint ventures	3,155		585		—		2,906		—		6,646

Income (loss) from continuing operations	298,145		168,037		(20,374)		24,445		(210,891)		259,362
Income (loss) from discontinued operations	—		—		—		—		—		—
Net income (loss)	$	298,145	$	168,037	$	(20,374)	$	24,445	$	(210,891)	$	259,362

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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).

For the nine months ended September 30, 2022:


	Lab		Outpatient Medical		CCRC		Other Non-reportable		Corporate Non-segment		Total
Total revenues	$	609,620	$	541,078	$	369,062	$	16,950	$	—	$	1,536,710
Government grant income(1)	—		—		6,765		—		—		6,765
Less: Interest income	—		—		—		(16,950)		—		(16,950)
Healthpeak’s share of unconsolidated joint venture total revenues	5,637		2,249		—		54,918		—		62,804
Healthpeak’s share of unconsolidated joint venture government grant income	—		—		334		497		—		831
Noncontrolling interests’ share of consolidated joint venture total revenues	(174)		(26,732)		—		—		—		(26,906)
Operating expenses	(152,796)		(189,274)		(300,429)		—		—		(642,499)
Healthpeak’s share of unconsolidated joint venture operating expenses	(1,744)		(912)		—		(42,804)		—		(45,460)
Noncontrolling interests’ share of consolidated joint venture operating expenses	59		7,886		—		—		—		7,945

Adjustments to NOI(2)	(50,977)		(10,574)		—		120		—		(61,431)
Adjusted NOI	409,625		323,721		75,732		12,731		—		821,809
Plus: Adjustments to NOI(2)	50,977		10,574		—		(120)		—		61,431
Interest income	—		—		—		16,950		—		16,950
Interest expense	—		(4,931)		(5,629)		—		(112,971)		(123,531)
Depreciation and amortization	(227,952)		(207,563)		(95,897)		—		—		(531,412)
General and administrative	—		—		—		—		(73,161)		(73,161)
Transaction costs	(367)		(168)		(658)		—		(443)		(1,636)
Impairments and loan loss reserves, net	—		—		—		(3,678)		—		(3,678)
Gain (loss) on sales of real estate, net	3,856		10,894		—		(4,703)		—		10,047

Other income (expense), net	311,932		12,354		55		(13)		2,527		326,855
Less: Government grant income	—		—		(6,765)		—		—		(6,765)
Less: Healthpeak’s share of unconsolidated joint venture NOI	(3,893)		(1,337)		(334)		(12,611)		—		(18,175)
Plus: Noncontrolling interests’ share of consolidated joint venture NOI	115		18,846		—		—		—		18,961
Income (loss) before income taxes and equity income (loss) from unconsolidated joint ventures	544,293		162,390		(33,496)		8,556		(184,048)		497,695
Income tax benefit (expense)	—		—		—		—		3,775		3,775
Equity income (loss) from unconsolidated joint ventures	237		617		539		748		—		2,141

Income (loss) from continuing operations	544,530		163,007		(32,957)		9,304		(180,273)		503,611
Income (loss) from discontinued operations	—		—		—		—		2,011		2,011
Net income (loss)	$	544,530	$	163,007	$	(32,957)	$	9,304	$	(178,262)	$	505,622

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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).