Segment Disclosures (Tables)

6 Months Ended

Jun. 30, 2021

Summary of Financial Information of Reportable Segments

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

For the three months ended June 30, 2021:


	Life Science		Medical Office		CCRC		Other Non-reportable		Corporate Non-segment		Total
Total revenues	$	177,527	$	165,295	$	117,308	$	16,108	$	—	$	476,238
Government grant income(1)	—		—		87		—		—		87
Less: Interest income	—		—		—		(16,108)		—		(16,108)
Healthpeak’s share of unconsolidated joint venture total revenues	1,412		710		2,415		16,740		—		21,277
Healthpeak’s share of unconsolidated joint venture government grant income	—		—		—		583		—		583
Noncontrolling interests’ share of consolidated joint venture total revenues	(75)		(8,825)		—		—		—		(8,900)
Operating expenses	(40,724)		(54,648)		(94,760)		—		—		(190,132)
Healthpeak’s share of unconsolidated joint venture operating expenses	(428)		(317)		(2,208)		(12,451)		—		(15,404)
Noncontrolling interests’ share of consolidated joint venture operating expenses	21		2,552		—		—		—		2,573

Adjustments to NOI(2)	(12,366)		(2,003)		1,226		(27)		—		(13,170)
Adjusted NOI	125,367		102,764		24,068		4,845		—		257,044
Plus: Adjustments to NOI(2)	12,366		2,003		(1,226)		27		—		13,170
Interest income	—		—		—		16,108		—		16,108
Interest expense	(48)		(786)		(1,924)		—		(35,923)		(38,681)
Depreciation and amortization	(76,955)		(63,371)		(31,133)		—		—		(171,459)
General and administrative	—		—		—		—		(24,088)		(24,088)
Transaction costs	21		35		(657)		(18)		—		(619)
Impairments and loan loss reserves	—		—		—		(931)		—		(931)
Gain (loss) on sales of real estate, net	—		175,238		—		—		—		175,238
Gain (loss) on debt extinguishments	—		—		—		—		(60,865)		(60,865)
Other income (expense), net	28		(175)		165		—		1,716		1,734
Less: Government grant income	—		—		(87)		—		—		(87)
Less: Healthpeak’s share of unconsolidated joint venture NOI	(984)		(393)		(207)		(4,872)		—		(6,456)
Plus: Noncontrolling interests’ share of consolidated joint venture NOI	54		6,273		—		—		—		6,327
Income (loss) before income taxes and equity income (loss) from unconsolidated joint ventures	59,849		221,588		(11,001)		15,159		(119,160)		166,435
Income tax benefit (expense)	—		—		—		—		763		763
Equity income (loss) from unconsolidated joint ventures	111		137		639		(20)		—		867

Income (loss) from continuing operations	59,960		221,725		(10,362)		15,139		(118,397)		168,065
Income (loss) from discontinued operations	—		—		—		—		113,960		113,960
Net income (loss)	$	59,960	$	221,725	$	(10,362)	$	15,139	$	(4,437)	$	282,025

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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 three months ended June 30, 2020:


	Life Science		Medical Office		CCRC		Other Non-reportable		Corporate Non-segment		Total
Total revenues	$	138,496	$	151,844	$	113,926	$	4,293	$	—	$	408,559
Government grant income(1)	—		—		11,871		—		—		11,871
Less: Interest income	—		—		—		(4,230)		—		(4,230)
Healthpeak’s share of unconsolidated joint venture total revenues	—		691		4,781		18,682		—		24,154
Healthpeak’s share of unconsolidated joint venture government grant income	—		—		534		270		—		804
Noncontrolling interests’ share of consolidated joint venture total revenues	(57)		(8,347)		—		—		—		(8,404)
Operating expenses	(34,205)		(49,355)		(94,248)		—		—		(177,808)
Healthpeak’s share of unconsolidated joint venture operating expenses	—		(276)		(4,826)		(13,681)		—		(18,783)
Noncontrolling interests’ share of consolidated joint venture operating expenses	18		2,507		—		—		—		2,525

Adjustments to NOI(2)	(2,779)		(465)		18		99		—		(3,127)
Adjusted NOI	101,473		96,599		32,056		5,433		—		235,561
Plus: Adjustments to NOI(2)	2,779		465		(18)		(99)		—		3,127
Interest income	—		—		—		4,230		—		4,230
Interest expense	(60)		(100)		(1,969)		—		(52,694)		(54,823)
Depreciation and amortization	(52,356)		(55,904)		(31,426)		(5)		—		(139,691)
General and administrative	—		—		—		—		(23,720)		(23,720)
Transaction costs	(1)		—		(368)		(4)		—		(373)
Impairments and loan loss reserves	—		(2,119)		—		(4,718)		—		(6,837)
Gain (loss) on sales of real estate, net	—		81,284		—		—		—		81,284
Gain (loss) on debt extinguishments	—		—		—		—		(25,824)		(25,824)
Other income (expense), net	—		—		14,142		—		3,273		17,415
Less: Government grant income	—		—		(11,871)		—		—		(11,871)
Less: Healthpeak’s share of unconsolidated joint venture NOI	—		(415)		(489)		(5,271)		—		(6,175)
Plus: Noncontrolling interests’ share of consolidated joint venture NOI	39		5,840		—		—		—		5,879
Income (loss) before income taxes and equity income (loss) from unconsolidated joint ventures	51,874		125,650		57		(434)		(98,965)		78,182
Income tax benefit (expense)	—		—		—		—		(106)		(106)
Equity income (loss) from unconsolidated joint ventures	—		210		401		(18,346)		—		(17,735)

Income (loss) from continuing operations	51,874		125,860		458		(18,780)		(99,071)		60,341
Income (loss) from discontinued operations	—		—		—		—		(5,292)		(5,292)
Net income (loss)	$	51,874	$	125,860	$	458	$	(18,780)	$	(104,363)	$	55,049

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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 six months ended June 30, 2021:


	Life Science		Medical Office		CCRC		Other Non-reportable		Corporate Non-segment		Total
Total revenues	$	347,461	$	325,496	$	233,436	$	25,121	$	—	$	931,514
Government grant income(1)	—		—		1,397		—		—		1,397
Less: Interest income	—		—		—		(25,121)		—		(25,121)
Healthpeak’s share of unconsolidated joint venture total revenues	2,749		1,425		6,903		33,493		—		44,570
Healthpeak’s share of unconsolidated joint venture government grant income	—		—		199		810		—		1,009
Noncontrolling interests’ share of consolidated joint venture total revenues	(140)		(17,751)		—		—		—		(17,891)
Operating expenses	(80,185)		(105,769)		(185,939)		—		—		(371,893)
Healthpeak’s share of unconsolidated joint venture operating expenses	(853)		(611)		(6,953)		(25,046)		—		(33,463)
Noncontrolling interests’ share of consolidated joint venture operating expenses	41		5,056		—		—		—		5,097

Adjustments to NOI(2)	(24,176)		(3,926)		1,246		85		—		(26,771)
Adjusted NOI	244,897		203,920		50,289		9,342		—		508,448
Plus: Adjustments to NOI(2)	24,176		3,926		(1,246)		(85)		—		26,771
Interest income	—		—		—		25,121		—		25,121
Interest expense	(150)		(881)		(3,842)		—		(80,651)		(85,524)
Depreciation and amortization	(145,388)		(121,326)		(62,283)		—		—		(328,997)
General and administrative	—		—		—		—		(48,990)		(48,990)
Transaction costs	(11)		(295)		(1,090)		(21)		—		(1,417)
Impairments and loan loss reserves	—		—		—		(4,173)		—		(4,173)
Gain (loss) on sales of real estate, net	—		175,238		—		—		—		175,238
Gain (loss) on debt extinguishments	—		—		—		—		(225,157)		(225,157)
Other income (expense), net	33		(2,454)		2,341		482		3,532		3,934
Less: Government grant income	—		—		(1,397)		—		—		(1,397)
Less: Healthpeak’s share of unconsolidated joint venture NOI	(1,896)		(814)		(149)		(9,257)		—		(12,116)
Plus: Noncontrolling interests’ share of consolidated joint venture NOI	99		12,695		—		—		—		12,794
Income (loss) before income taxes and equity income (loss) from unconsolidated joint ventures	121,760		270,009		(17,377)		21,409		(351,266)		44,535
Income tax benefit (expense)	—		—		—		—		755		755
Equity income (loss) from unconsolidated joint ventures	18		328		639		1,205		—		2,190

Income (loss) from continuing operations	121,778		270,337		(16,738)		22,614		(350,511)		47,480
Income (loss) from discontinued operations	—		—		—		—		383,968		383,968
Net income (loss)	$	121,778	$	270,337	$	(16,738)	$	22,614	$	33,457	$	431,448

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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 six months ended June 30, 2020:


	Life Science		Medical Office		CCRC		Other Non-reportable		Corporate Non-segment		Total
Total revenues	$	267,379	$	308,485	$	205,706	$	8,043	$	—	$	789,613
Government grant income(1)	—		—		11,871		—		—		11,871
Less: Interest income	—		—		—		(7,918)		—		(7,918)
Healthpeak’s share of unconsolidated joint venture total revenues	—		1,386		26,428		38,876		—		66,690
Healthpeak’s share of unconsolidated joint venture government grant income	—		—		534		270		—		804
Noncontrolling interests’ share of consolidated joint venture total revenues	(109)		(16,987)		—		—		—		(17,096)
Operating expenses	(64,406)		(100,049)		(250,730)		—		—		(415,185)
Healthpeak’s share of unconsolidated joint venture operating expenses	—		(551)		(22,863)		(26,959)		—		(50,373)
Noncontrolling interests’ share of consolidated joint venture operating expenses	35		5,107		—		—		—		5,142

Adjustments to NOI(2)	(7,059)		(1,459)		91,579		51		—		83,112
Adjusted NOI	195,840		195,932		62,525		12,363		—		466,660
Plus: Adjustments to NOI(2)	7,059		1,459		(91,579)		(51)		—		(83,112)
Interest income	—		—		—		7,918		—		7,918
Interest expense	(122)		(203)		(3,273)		—		(106,916)		(110,514)
Depreciation and amortization	(102,567)		(110,571)		(51,655)		(10)		—		(264,803)
General and administrative	—		—		—		—		(46,069)		(46,069)
Transaction costs	(1)		—		(14,842)		(93)		—		(14,936)
Impairments and loan loss reserves	—		(4,825)		—		(13,119)		—		(17,944)
Gain (loss) on sales of real estate, net	—		83,393		—		(40)		—		83,353
Gain (loss) on debt extinguishments	—		—		—		—		(24,991)		(24,991)
Other income (expense), net	—		—		184,474		41,707		1,887		228,068
Less: Government grant income	—		—		(11,871)		—		—		(11,871)
Less: Healthpeak’s share of unconsolidated joint venture NOI	—		(835)		(4,099)		(12,187)		—		(17,121)
Plus: Noncontrolling interests’ share of consolidated joint venture NOI	74		11,880		—		—		—		11,954
Income (loss) before income taxes and equity income (loss) from unconsolidated joint ventures	100,283		176,230		69,680		36,488		(176,089)		206,592
Income tax benefit (expense)(3)	—		—		—		—		29,762		29,762
Equity income (loss) from unconsolidated joint ventures	—		407		(1,479)		(27,809)		—		(28,881)

Income (loss) from continuing operations	100,283		176,637		68,201		8,679		(146,327)		207,473
Income (loss) from discontinued operations	—		—		—		—		130,116		130,116
Net income (loss)	$	100,283	$	176,637	$	68,201	$	8,679	$	(16,211)	$	337,589

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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).

(3)Income tax benefit (expense) for the quarter ended June 30, 2020 includes: (i) a $52 million tax benefit recognized in conjunction with internal restructuring activities, which resulted in the transfer of assets subject to certain deferred tax liabilities from taxable REIT subsidiaries to the REIT in connection with the 2019 MTCA (see Note 3) and (ii) a $3.6 million net tax benefit recognized due to changes under the CARES Act, which resulted in net operating losses being utilized at a higher income tax rate than previously available.

Schedule of Reconciliation of Company's Revenues by Segment

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


	Three Months Ended June 30,				Six Months Ended June 30,
Segment	2021		2020		2021		2020



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