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Segment Disclosures
 9 Months Ended
Sep. 30, 2021
Segment Reporting [Abstract]  
Segment Disclosures Segment Disclosures
The Company’s reportable segments, based on how its chief operating decision makers (“CODMs”) evaluates its business and allocates resources, are as follows: (i) life science, (ii) medical office, and (iii) CCRC. The Company has non-reportable segments that are comprised primarily of the Company’s interests in an unconsolidated senior housing joint venture and debt investments. The accounting policies of the segments are the same as those 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, 2020 filed with the SEC, as updated by Note 2 herein.
In December 2020, the Company’s senior housing triple-net and SHOP portfolios were classified as discontinued operations and are no longer reportable segments. See Notes 1 and 5 for further information.
In December 2020, as a result of a change in how operating results are reported to the Company’s CODMs, the Company’s hospitals were reclassified from other non-reportable segments to the medical office segment and the Company’s one remaining unconsolidated investment in a senior housing joint venture was reclassified from the SHOP segment to other non-reportable segments.
All prior period segment information has been recast to conform to the current period presentation.
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 (which exclude transition costs); 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 include the Company’s share of income (loss) from unconsolidated joint ventures and exclude noncontrolling interests’ share of income (loss) from consolidated joint ventures. 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 equity 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 September 30, 2021:
Life ScienceMedical OfficeCCRCOther Non-reportableCorporate Non-segmentTotal
Total revenues$184,213 $171,482 $119,022 $6,748 $— $481,465 
Government grant income(1)
— — 15 — — 15 
Less: Interest income— — — (6,748)— (6,748)
Healthpeak’s share of unconsolidated joint venture total revenues1,521 737 — 17,109 — 19,367 
Healthpeak’s share of unconsolidated joint venture government grant income— — — — — — 
Noncontrolling interests’ share of consolidated joint venture total revenues(82)(8,954)— — — (9,036)
Operating expenses(44,923)(58,430)(98,799)13 — (202,139)
Healthpeak’s share of unconsolidated joint venture operating expenses(463)(305)(32)(13,450)— (14,250)
Noncontrolling interests’ share of consolidated joint venture operating expenses25 2,659 — — — 2,684 
Adjustments to NOI(2)
(11,021)(3,626)724 (100)— (14,023)
Adjusted NOI129,270 103,563 20,930 3,572 — 257,335 
Plus: Adjustments to NOI(2)
11,021 3,626 (724)100 — 14,023 
Interest income— — — 6,748 — 6,748 
Interest expense(46)(1,104)(1,936)— (32,819)(35,905)
Depreciation and amortization(79,570)(66,189)(31,416)— — (177,175)
General and administrative— — — — (23,270)(23,270)
Transaction costs— — — — — — 
Impairments and loan loss reserves— (1,952)— 1,667 — (285)
Gain (loss) on sales of real estate, net— 14,635 — — — 14,635 
Gain (loss) on debt extinguishments— — — — (667)(667)
Other income (expense), net22 (30)114 1 1,563 1,670 
Less: Government grant income— — (15)— — (15)
Less: Healthpeak’s share of unconsolidated joint venture NOI(1,058)(432)32 (3,659)— (5,117)
Plus: Noncontrolling interests’ share of consolidated joint venture NOI57 6,295 — — — 6,352 
Income (loss) before income taxes and equity income (loss) from unconsolidated joint ventures59,696 58,412 (13,015)8,429 (55,193)58,329 
Income tax benefit (expense)— — — — 649 649 
Equity income (loss) from unconsolidated joint ventures630 220 845 632 — 2,327 
Income (loss) from continuing operations60,326 58,632 (12,170)9,061 (54,544)61,305 
Income (loss) from discontinued operations— — — — 601 601 
Net income (loss)$60,326 $58,632 $(12,170)$9,061 $(53,943)$61,906 
_______________________________________
(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 September 30, 2020:
 Life ScienceMedical OfficeCCRCOther Non-reportableCorporate Non-segmentTotal
Total revenues$148,702 $155,381 $115,031 $4,451 $— $423,565 
Government grant income(1)
— — 1,761 — — 1,761 
Less: Interest income— — — (4,443)— (4,443)
Healthpeak’s share of unconsolidated joint venture total revenues— 699 4,295 17,853 — 22,847 
Healthpeak’s share of unconsolidated joint venture government grant income— — 246 49 — 295 
Noncontrolling interests’ share of consolidated joint venture total revenues(66)(8,788)— — — (8,854)
Operating expenses(36,714)(51,435)(94,992)— — (183,141)
Healthpeak’s share of unconsolidated joint venture operating expenses— (296)(4,797)(13,485)— (18,578)
Noncontrolling interests’ share of consolidated joint venture operating expenses18 2,630 — — — 2,648 
Adjustments to NOI(2)
(8,330)(1,729)1,684 63 — (8,312)
Adjusted NOI103,610 96,462 23,228 4,488 — 227,788 
Plus: Adjustments to NOI(2)
8,330 1,729 (1,684)(63)— 8,312 
Interest income— — — 4,443 — 4,443 
Interest expense(57)(100)(1,983)— (51,594)(53,734)
Depreciation and amortization(57,170)(54,693)(30,106)(2)— (141,971)
General and administrative— — — — (21,661)(21,661)
Transaction costs(79)— (1,897)(8)— (1,984)
Impairments and loan loss reserves— (1,208)— 2,985 — 1,777 
Gain (loss) on sales of real estate, net— 2,283 — — — 2,283 
Gain (loss) on debt extinguishments— — — — (17,921)(17,921)
Other income (expense), net— — 3,903 — 2,841 6,744 
Less: Government grant income— — (1,761)— — (1,761)
Less: Healthpeak’s share of unconsolidated joint venture NOI— (403)256 (4,417)— (4,564)
Plus: Noncontrolling interests’ share of consolidated joint venture NOI48 6,158 — — — 6,206 
Income (loss) before income taxes and equity income (loss) from unconsolidated joint ventures54,682 50,228 (10,044)7,426 (88,335)13,957 
Income tax benefit (expense)(3)
— — — — (22,970)(22,970)
Equity income (loss) from unconsolidated joint ventures— 198 (322)(18,625)— (18,749)
Income (loss) from continuing operations54,682 50,426 (10,366)(11,199)(111,305)(27,762)
Income (loss) from discontinued operations— — — — (31,819)(31,819)
Net income (loss)$54,682 $50,426 $(10,366)$(11,199)$(143,124)$(59,581)
______________________________________________________________________________
(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.
(3)Income tax benefit (expense) for the three months ended September 30, 2020 includes a $31 million income tax expense related to the valuation allowance on deferred tax assets that are no longer expected to be realized (see Note 5).
For the nine months ended September 30, 2021:
 Life ScienceMedical OfficeCCRCOther Non-reportableCorporate Non-segmentTotal
Total revenues$531,674 $496,978 $352,458 $31,869 $— $1,412,979 
Government grant income(1)
— — 1,412 — — 1,412 
Less: Interest income— — — (31,869)— (31,869)
Healthpeak’s share of unconsolidated joint venture total revenues4,270 2,162 6,903 50,602 — 63,937 
Healthpeak’s share of unconsolidated joint venture government grant income— — 200 810 — 1,010 
Noncontrolling interests’ share of consolidated joint venture total revenues(222)(26,704)— — — (26,926)
Operating expenses(125,108)(164,198)(284,739)13 — (574,032)
Healthpeak’s share of unconsolidated joint venture operating expenses(1,316)(915)(6,985)(38,496)— (47,712)
Noncontrolling interests’ share of consolidated joint venture operating expenses66 7,714 — — — 7,780 
Adjustments to NOI(2)
(35,197)(7,553)1,971 (15)— (40,794)
Adjusted NOI374,167 307,484 71,220 12,914 — 765,785 
Plus: Adjustments to NOI(2)
35,197 7,553 (1,971)15 — 40,794 
Interest income— — — 31,869 — 31,869 
Interest expense(196)(1,985)(5,778)— (113,470)(121,429)
Depreciation and amortization(224,958)(187,512)(93,702)— — (506,172)
General and administrative— — — — (72,260)(72,260)
Transaction costs(11)(295)(1,090)(21)— (1,417)
Impairments and loan loss reserves— (1,952)— (2,506)— (4,458)
Gain (loss) on sales of real estate, net— 189,873 — — — 189,873 
Gain (loss) on debt extinguishments— — — — (225,824)(225,824)
Other income (expense), net54 (2,483)2,456 482 5,095 5,604 
Less: Government grant income— — (1,412)— — (1,412)
Less: Healthpeak’s share of unconsolidated joint venture NOI(2,954)(1,247)(118)(12,916)— (17,235)
Plus: Noncontrolling interests’ share of consolidated joint venture NOI156 18,990 — — — 19,146 
Income (loss) before income taxes and equity income (loss) from unconsolidated joint ventures181,455 328,426 (30,395)29,837 (406,459)102,864 
Income tax benefit (expense)— — — — 1,404 1,404 
Equity income (loss) from unconsolidated joint ventures648 549 1,484 1,836 — 4,517 
Income (loss) from continuing operations182,103 328,975 (28,911)31,673 (405,055)108,785 
Income (loss) from discontinued operations— — — — 384,569 384,569 
Net income (loss)$182,103 $328,975 $(28,911)$31,673 $(20,486)$493,354 
______________________________________________________________________________
(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, 2020:
 Life ScienceMedical OfficeCCRCOther Non-reportableCorporate Non-segmentTotal
Total revenues$416,081 $463,866 $320,737 $12,494 $— $1,213,178 
Government grant income(1)
— — 13,632 — — 13,632 
Less: Interest income— — — (12,361)— (12,361)
Healthpeak’s share of unconsolidated joint venture total revenues— 2,085 30,723 56,729 — 89,537 
Healthpeak’s share of unconsolidated joint venture government grant income— — 780 319 — 1,099 
Noncontrolling interests’ share of consolidated joint venture total revenues(175)(25,775)— — — (25,950)
Operating expenses(101,120)(151,484)(345,722)— — (598,326)
Healthpeak’s share of unconsolidated joint venture operating expenses— (846)(27,660)(40,444)— (68,950)
Noncontrolling interests’ share of consolidated joint venture operating expenses53 7,737 — — — 7,790 
Adjustments to NOI(2)
(15,389)(3,188)93,263 114 — 74,800 
Adjusted NOI299,450 292,395 85,753 16,851 — 694,449 
Plus: Adjustments to NOI(2)
15,389 3,188 (93,263)(114)— (74,800)
Interest income— — — 12,361 — 12,361 
Interest expense(180)(302)(5,256)— (158,510)(164,248)
Depreciation and amortization(159,737)(165,265)(81,760)(12)— (406,774)
General and administrative— — — — (67,730)(67,730)
Transaction costs(80)— (16,739)(101)— (16,920)
Impairments and loan loss reserves— (6,033)— (10,134)— (16,167)
Gain (loss) on sales of real estate, net— 85,676 — (40)— 85,636 
Gain (loss) on debt extinguishments— — — — (42,912)(42,912)
Other income (expense), net— — 188,377 41,707 4,728 234,812 
Less: Government grant income— — (13,632)— — (13,632)
Less: Healthpeak’s share of unconsolidated joint venture NOI— (1,239)(3,843)(16,604)— (21,686)
Plus: Noncontrolling interests’ share of consolidated joint venture NOI122 18,038 — — — 18,160 
Income (loss) before income taxes and equity income (loss) from unconsolidated joint ventures154,964 226,458 59,637 43,914 (264,424)220,549 
Income tax benefit (expense)(3)
— — — — 6,792 6,792 
Equity income (loss) from unconsolidated joint ventures— 604 (1,801)(46,433)— (47,630)
Income (loss) from continuing operations154,964 227,062 57,836 (2,519)(257,632)179,711 
Income (loss) from discontinued operations— — — — 98,297 98,297 
Net income (loss)$154,964 $227,062 $57,836 $(2,519)$(159,335)$278,008 
______________________________________________________________________________
(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.
(3)Income tax benefit (expense) for the nine months ended September 30, 2020 includes: (i) a $51 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), (ii) a $31 million income tax expense related to the valuation allowance on deferred tax assets that are no longer expected to be realized (see Note 5), and (iii) 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.
 
The following table summarizes the Company’s revenues by segment (in thousands):
 Three Months Ended
September 30,		Nine Months Ended
September 30,
Segment2021202020212020
Life science$184,213 $148,702 $531,674 $416,081 
Medical office171,482 155,381 496,978 463,866 
CCRC119,022 115,031 352,458 320,737 
Other non-reportable6,748 4,451 31,869 12,494 
Total revenues$481,465 $423,565 $1,412,979 $1,213,178 
See Notes 3, 4, and 5 for significant transactions impacting the Company’s segment assets during the periods presented.