XML 37 R22.htm IDEA: XBRL DOCUMENT v3.25.1
Segment Disclosures
 3 Months Ended
Mar. 31, 2025
Segment Reporting [Abstract]  
Segment Disclosures Segment Disclosures
The Company’s operating segments, based on how its CODM, the President and Chief Executive Officer, evaluates the business and allocates resources, are as follows: (i) outpatient medical, (ii) lab, (iii) CCRC, (iv) an interest in an unconsolidated joint venture that owns 19 senior housing assets (the “SWF SH JV”), and (v) loans receivable. The Company’s reportable segments, as determined in accordance with ASC 280, Segment Reporting, are as follows: (i) outpatient medical, (ii) lab, and (iii) CCRC. The SWF SH JV and loans receivable are non-reportable segments that have been presented on a combined 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, 2024 filed with the SEC, as updated by Note 2 herein.
The CODM evaluates performance based on property Adjusted NOI. Adjusted NOI is used to evaluate performance 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. Adjusted NOI represents real estate revenues (inclusive of rental and related revenues, resident fees and services, and government grant income and exclusive of interest income), less property level operating expenses; Adjusted NOI excludes all other financial statement amounts included in net income (loss). Adjusted NOI eliminates the effects of straight-line rents, 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.
Adjusted NOI is calculated as Adjusted NOI from consolidated properties, plus the Company’s share of Adjusted NOI from unconsolidated joint ventures (calculated by applying the Company’s actual ownership percentage for the period), less noncontrolling interests’ share of Adjusted NOI from consolidated joint ventures (calculated by applying the Company’s actual ownership percentage for the period). Management utilizes its share of Adjusted NOI in assessing its performance as the Company has various joint ventures that contribute to its performance.
Segment assets consist of real estate assets, intangible assets, and right-of-use assets. 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, other assets, and real estate assets held for sale. Reportable segment asset information is not provided to the CODM as the CODM does not use segment asset information to evaluate the business and allocate resources.
The following tables summarize information for the reportable segments for the three months ended March 31, 2025 (in thousands):
Outpatient MedicalLabCCRCTotal
Total revenues$320,548 $217,593 $148,927 $687,068 
Healthpeak’s share of unconsolidated joint venture total revenues7,259 2,800 — 10,059 
Noncontrolling interests’ share of consolidated joint venture total revenues(9,973)— — (9,973)
Operating expenses(1)
(105,225)(57,658)(110,260)(273,143)
Healthpeak’s share of unconsolidated joint venture operating expenses(2,994)(1,666)— (4,660)
Noncontrolling interests’ share of consolidated joint venture operating expenses2,778 — — 2,778 
Adjustments to NOI(2)
(12,082)(14,836)— (26,918)
Adjusted NOI for reportable segments$200,311 $146,233 $38,667 $385,211 
Plus: Adjustments to NOI(2)
26,918 
Interest income and other15,821 
Interest expense(72,693)
Depreciation and amortization(268,546)
General and administrative(26,118)
Transaction and merger-related costs(5,534)
Impairments and loan loss reserves, net3,562 
Other income (expense), net(6,126)
Less: Healthpeak’s share of unconsolidated joint venture Adjusted NOI(5,399)
Plus: Noncontrolling interests’ share of consolidated joint venture Adjusted NOI7,195 
Income (loss) before income taxes and equity income (loss) from unconsolidated joint ventures$54,291 
_______________________________________
(1)See reconciliation of significant expense categories below.
(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.
The following table summarizes the Company’s significant expense categories by reportable segment for the three months ended March 31, 2025 (in thousands):
Outpatient MedicalLabCCRC
Compensation and property management$14,629 $8,310 $70,003 
Food— — 6,442 
Real estate taxes24,079 19,021 4,508 
Repairs and maintenance15,503 7,358 4,846 
Utilities17,912 10,423 5,663 
Other segment items(1)
33,102 12,546 18,798 
Operating expenses$105,225 $57,658 $110,260 
_______________________________________
(1)Other segment items for each segment include:
•Outpatient medical and lab – (i) Cleaning expense, (ii) ground rent expense, (iii) insurance expense, (iv) roads and grounds expense, (v) security expense, and (vi) other administrative expense.
•CCRC – (i) Cleaning and supplies, (ii) insurance expense, (iii) marketing expense, and (iv) other administrative expense.
The following tables summarize information for the reportable segments for the three months ended March 31, 2024 (in thousands):
 Outpatient MedicalLabCCRCTotal
Total revenues$238,272 $223,761 $138,776 $600,809 
Healthpeak’s share of unconsolidated joint venture total revenues2,739 4,861 — 7,600 
Noncontrolling interests’ share of consolidated joint venture total revenues(8,876)(163)— (9,039)
Operating expenses(1)
(81,268)(56,840)(105,621)(243,729)
Healthpeak’s share of unconsolidated joint venture operating expenses(1,083)(1,324)— (2,407)
Noncontrolling interests’ share of consolidated joint venture operating expenses2,430 43 — 2,473 
Adjustments to NOI(2)
(6,127)(21,435)— (27,562)
Adjusted NOI for reportable segments$146,087 $148,903 $33,155 $328,145 
Plus: Adjustments to NOI(2)
27,562 
Interest income and other5,751 
Interest expense(60,907)
Depreciation and amortization(219,219)
General and administrative(23,299)
Transaction and merger-related costs(107,220)
Impairments and loan loss reserves, net(11,458)
Gain (loss) on sales of real estate, net3,255 
Other income (expense), net78,516 
Less: Healthpeak’s share of unconsolidated joint venture Adjusted NOI(5,193)
Plus: Noncontrolling interests’ share of consolidated joint venture Adjusted NOI6,566 
Income (loss) before income taxes and equity income (loss) from unconsolidated joint ventures$22,499 
_______________________________________
(1)See reconciliation of significant expense categories below.
(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.
The following table summarizes the Company’s significant expense categories by reportable segment for the three months ended March 31, 2024 (in thousands):
Outpatient MedicalLabCCRC
Compensation and property management$11,097 $8,377 $67,622 
Food— — 6,463 
Real estate taxes20,128 19,897 4,301 
Repairs and maintenance11,591 6,611 4,614 
Utilities12,887 11,184 5,336 
Other segment items(1)
25,565 10,771 17,285 
Operating expenses$81,268 $56,840 $105,621 
_______________________________________
(1)Other segment items for each segment include:
•Outpatient medical and lab – (i) Cleaning expense, (ii) ground rent expense, (iii) insurance expense, (iv) roads and grounds expense, (v) security expense, and (vi) other administrative expense.
•CCRC – (i) Cleaning and supplies, (ii) insurance expense, (iii) marketing expense, and (iv) other administrative expense.
The following table summarizes the Company’s revenues by reportable segment (in thousands):
 Three Months Ended
March 31,
Segment20252024
Outpatient medical
$320,548 $238,272 
Lab
217,593 223,761 
CCRC148,927 138,776 
Total revenues for reportable segments
687,068 600,809 
Interest income and other
15,821 5,751 
Total revenues$702,889 $606,560