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Segment Disclosures
 3 Months Ended
Mar. 31, 2022
Segment Reporting [Abstract]  
Segment Disclosures Segment Disclosures
The Company’s reportable segments, based on how its chief operating decision makers (“CODMs”) evaluate the business and allocate 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 JV that owns 19 senior housing assets (the “SWF SH JV”) and debt investments. 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, 2021 filed with the SEC, as updated by Note 2 herein.
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; 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 March 31, 2022:
Life ScienceMedical OfficeCCRCOther Non-reportableCorporate Non-segmentTotal
Total revenues$194,055 $177,263 $121,560 $5,494 $— $498,372 
Government grant income(1)
— — 6,552 — — 6,552 
Less: Interest income— — — (5,494)— (5,494)
Healthpeak’s share of unconsolidated joint venture total revenues1,431 732 — 18,045 — 20,208 
Healthpeak’s share of unconsolidated joint venture government grant income— — 333 315 — 648 
Noncontrolling interests’ share of consolidated joint venture total revenues(57)(8,820)— — — (8,877)
Operating expenses(48,189)(61,170)(97,888)— — (207,247)
Healthpeak’s share of unconsolidated joint venture operating expenses(483)(299)— (14,055)— (14,837)
Noncontrolling interests’ share of consolidated joint venture operating expenses19 2,602 — — — 2,621 
Adjustments to NOI(2)
(14,112)(3,546)— (8)— (17,666)
Adjusted NOI132,664 106,762 30,557 4,297 — 274,280 
Plus: Adjustments to NOI(2)
14,112 3,546 — 8 — 17,666 
Interest income— — — 5,494 — 5,494 
Interest expense— (1,036)(1,865)— (34,685)(37,586)
Depreciation and amortization(78,138)(67,773)(31,822)— — (177,733)
General and administrative— — — — (23,831)(23,831)
Transaction costs(292)(4)— — — (296)
Impairments and loan loss reserves— — — (132)— (132)
Gain (loss) on sales of real estate, net3,856 — — — — 3,856 
Other income (expense), net(9)10,937 6,511 (32)909 18,316 
Less: Government grant income— — (6,552)— — (6,552)
Less: Healthpeak’s share of unconsolidated joint venture NOI(948)(433)(333)(4,305)— (6,019)
Plus: Noncontrolling interests’ share of consolidated joint venture NOI38 6,218 — — — 6,256 
Income (loss) before income taxes and equity income (loss) from unconsolidated joint ventures71,283 58,217 (3,504)5,330 (57,607)73,719 
Income tax benefit (expense)— — — — (777)(777)
Equity income (loss) from unconsolidated joint ventures966 200 539 379 — 2,084 
Income (loss) from continuing operations72,249 58,417 (2,965)5,709 (58,384)75,026 
Income (loss) from discontinued operations— — — — 317 317 
Net income (loss)$72,249 $58,417 $(2,965)$5,709 $(58,067)$75,343 
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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 March 31, 2021:
 Life ScienceMedical OfficeCCRCOther Non-reportableCorporate Non-segmentTotal
Total revenues$169,934 $160,201 $116,128 $9,013 $— $455,276 
Government grant income(1)
— — 1,310 — — 1,310 
Less: Interest income— — — (9,013)— (9,013)
Healthpeak’s share of unconsolidated joint venture total revenues1,337 715 4,488 16,753 — 23,293 
Healthpeak’s share of unconsolidated joint venture government grant income— — 199 227 — 426 
Noncontrolling interests’ share of consolidated joint venture total revenues(65)(8,926)— — — (8,991)
Operating expenses(39,461)(51,121)(91,179)— — (181,761)
Healthpeak’s share of unconsolidated joint venture operating expenses(425)(294)(4,745)(12,595)— (18,059)
Noncontrolling interests’ share of consolidated joint venture operating expenses20 2,504 — — — 2,524 
Adjustments to NOI(2)
(11,810)(1,923)20 112 — (13,601)
Adjusted NOI119,530 101,156 26,221 4,497 — 251,404 
Plus: Adjustments to NOI(2)
11,810 1,923 (20)(112)— 13,601 
Interest income— — — 9,013 — 9,013 
Interest expense(102)(95)(1,918)— (44,728)(46,843)
Depreciation and amortization(68,434)(57,954)(31,150)— — (157,538)
General and administrative— — — — (24,902)(24,902)
Transaction costs(32)(330)(432)(4)— (798)
Impairments and loan loss reserves— — — (3,242)— (3,242)
Gain (loss) on debt extinguishments— — — — (164,292)(164,292)
Other income (expense), net4 (2,279)2,176 482 1,817 2,200 
Less: Government grant income— — (1,310)— — (1,310)
Less: Healthpeak’s share of unconsolidated joint venture NOI(912)(421)58 (4,385)— (5,660)
Plus: Noncontrolling interests’ share of consolidated joint venture NOI45 6,422 — — — 6,467 
Income (loss) before income taxes and equity income (loss) from unconsolidated joint ventures61,909 48,422 (6,375)6,249 (232,105)(121,900)
Income tax benefit (expense)— — — — (8)(8)
Equity income (loss) from unconsolidated joint ventures(93)192 — 1,224 — 1,323 
Income (loss) from continuing operations61,816 48,614 (6,375)7,473 (232,113)(120,585)
Income (loss) from discontinued operations— — — — 270,008 270,008 
Net income (loss)$61,816 $48,614 $(6,375)$7,473 $37,895 $149,423 
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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.
See Notes 3, 4, and 5 for significant transactions impacting the Company’s segment assets during the periods presented.