Variable Interest Entities (Tables)

9 Months Ended

Sep. 30, 2023

Variable Interest Entities [Abstract]

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 September 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

15,733

_______________________________________

(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):


	September 30, 2023		December 31, 2022
Assets
Buildings and improvements	$	2,381,624	$	2,356,905
Development costs and construction in progress	43,123		58,499
Land and improvements	310,343		324,714
Accumulated depreciation and amortization	(647,415)		(623,244)
Net real estate	2,087,675		2,116,874

Accounts receivable, net	5,669		6,893
Cash and cash equivalents	21,405		20,586
Restricted cash	550		354
Intangible assets, net	61,084		73,860
Assets held for sale, net	—		30,355
Right-of-use asset, net	98,012		99,376
Other assets, net	78,560		73,690
Total assets	$	2,352,955	$	2,421,988
Liabilities
Mortgage debt	$	144,804	$	144,604

Intangible liabilities, net	12,673		15,066
Liabilities related to assets held for sale, net	—		401
Lease liability	99,551		99,039
Accounts payable, accrued liabilities, and other liabilities	60,693		68,979
Deferred revenue	48,417		39,661
Total liabilities	$	366,138	$	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):


	September 30, 2023		December 31, 2022
Assets
Buildings and improvements	$	—	$	39,934

Land and improvements	—		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

- Definition

Tabular disclosure of the significant judgments and assumptions made in determining whether a variable interest (as defined) held by the entity requires the variable interest entity (VIE) (as defined) to be consolidated and (or) disclose information about its involvement with the VIE, individually or in aggregate (as applicable); the nature of restrictions, if any, on the consolidated VIE's assets and on the settlement of its liabilities reported by an entity in its statement of financial position, including the carrying amounts of such assets and liabilities; the nature of, and changes in, the risks associated with involvement in the VIE; how involvement with the VIE affects the entity's financial position, financial performance, and cash flows; the lack of recourse if creditors (or beneficial interest holders) of the consolidated VIE have no recourse to the general credit of the primary beneficiary (if applicable); the terms of arrangements, giving consideration to both explicit arrangements and implicit variable interests, if any, that could require the entity to provide financial support to the VIE, including events or circumstances that could expose the entity to a loss; the methodology used by the entity for determining whether or not it is the primary beneficiary of the variable interest entity; the significant factors considered and judgments made in determining that the power to direct the activities of a VIE that most significantly impact the VIE's economic performance are shared (as defined); the carrying amounts and classification of assets and liabilities of the VIE included in the statement of financial position; the entity's maximum exposure to loss, if any, as a result of its involvement with the VIE, including how the maximum exposure is determined and significant sources of the entity's exposure to the VIE; a comparison of the carrying amounts of the assets and liabilities and the entity's maximum exposure to loss; information about any liquidity arrangements, guarantees, and (or) other commitments by third parties that may affect the fair value or risk of the entity's variable interest in the VIE; whether or not the entity has provided financial support or other support (explicitly or implicitly) to the VIE that it was not previously contractually required to provide or whether the entity intends to provide that support, including the type and amount of the support and the primary reasons for providing the support; and supplemental information the entity determines necessary to provide.

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