Segment Disclosures (Tables)

9 Months Ended

Sep. 30, 2021

Segment Reporting [Abstract]

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, 2021:

	Life Science		Medical Office		CCRC		Other Non-reportable		Corporate Non-segment		Total
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 revenues	1,521		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 expenses	25		2,659		—		—		—		2,684
Adjustments to NOI(2)	(11,021)		(3,626)		724		(100)		—		(14,023)
Adjusted NOI	129,270		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), net	22		(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 NOI	57		6,295		—		—		—		6,352
Income (loss) before income taxes and equity income (loss) from unconsolidated joint ventures	59,696		58,412		(13,015)		8,429		(55,193)		58,329
Income tax benefit (expense)	—		—		—		—		649		649
Equity income (loss) from unconsolidated joint ventures	630		220		845		632		—		2,327
Income (loss) from continuing operations	60,326		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

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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 September 30, 2020:

	Life Science		Medical Office		CCRC		Other Non-reportable		Corporate Non-segment		Total
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 expenses	18		2,630		—		—		—		2,648
Adjustments to NOI(2)	(8,330)		(1,729)		1,684		63		—		(8,312)
Adjusted NOI	103,610		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 NOI	48		6,158		—		—		—		6,206
Income (loss) before income taxes and equity income (loss) from unconsolidated joint ventures	54,682		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 operations	54,682		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)

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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.

(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 Science		Medical Office		CCRC		Other Non-reportable		Corporate Non-segment		Total
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 revenues	4,270		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 expenses	66		7,714		—		—		—		7,780
Adjustments to NOI(2)	(35,197)		(7,553)		1,971		(15)		—		(40,794)
Adjusted NOI	374,167		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), net	54		(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 NOI	156		18,990		—		—		—		19,146
Income (loss) before income taxes and equity income (loss) from unconsolidated joint ventures	181,455		328,426		(30,395)		29,837		(406,459)		102,864
Income tax benefit (expense)	—		—		—		—		1,404		1,404
Equity income (loss) from unconsolidated joint ventures	648		549		1,484		1,836		—		4,517
Income (loss) from continuing operations	182,103		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

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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, 2020:

	Life Science		Medical Office		CCRC		Other Non-reportable		Corporate Non-segment		Total
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 expenses	53		7,737		—		—		—		7,790
Adjustments to NOI(2)	(15,389)		(3,188)		93,263		114		—		74,800
Adjusted NOI	299,450		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 NOI	122		18,038		—		—		—		18,160
Income (loss) before income taxes and equity income (loss) from unconsolidated joint ventures	154,964		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 operations	154,964		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

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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.

(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.

Schedule of Reconciliation of Company's Revenues by Segment

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

	Three Months Ended September 30,				Nine Months Ended September 30,
Segment	2021		2020		2021		2020
Life science	$	184,213	$	148,702	$	531,674	$	416,081
Medical office	171,482		155,381		496,978		463,866
CCRC	119,022		115,031		352,458		320,737
Other non-reportable	6,748		4,451		31,869		12,494
Total revenues	$	481,465	$	423,565	$	1,412,979	$	1,213,178