QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
☒ | Accelerated filer | ☐ | |||||||||
Non-accelerated filer | ☐ | Smaller reporting company | |||||||||
Emerging growth company |
September 30, 2022 | December 31, 2021 | ||||||||||
ASSETS | |||||||||||
Real estate: | |||||||||||
Buildings and improvements | $ | $ | |||||||||
Development costs and construction in progress | |||||||||||
Land | |||||||||||
Accumulated depreciation and amortization | ( | ( | |||||||||
Net real estate | |||||||||||
Net investment in direct financing leases | |||||||||||
Loans receivable, net of reserves of $ | |||||||||||
Investments in and advances to unconsolidated joint ventures | |||||||||||
Accounts receivable, net of allowance of $ | |||||||||||
Cash and cash equivalents | |||||||||||
Restricted cash | |||||||||||
Intangible assets, net | |||||||||||
Assets held for sale and discontinued operations, net | |||||||||||
Right-of-use asset, net | |||||||||||
Other assets, net | |||||||||||
Total assets | $ | $ | |||||||||
LIABILITIES AND EQUITY | |||||||||||
Bank line of credit and commercial paper | $ | $ | |||||||||
Senior unsecured notes | |||||||||||
Mortgage debt | |||||||||||
Intangible liabilities, net | |||||||||||
Liabilities related to assets held for sale and discontinued operations, net | |||||||||||
Lease liability | |||||||||||
Accounts payable, accrued liabilities, and other liabilities | |||||||||||
Deferred revenue | |||||||||||
Total liabilities | |||||||||||
Commitments and contingencies (Note 10) | |||||||||||
Redeemable noncontrolling interests | |||||||||||
Common stock, $ | |||||||||||
Additional paid-in capital | |||||||||||
Cumulative dividends in excess of earnings | ( | ( | |||||||||
Accumulated other comprehensive income (loss) | ( | ||||||||||
Total stockholders’ equity | |||||||||||
Joint venture partners | |||||||||||
Non-managing member unitholders | |||||||||||
Total noncontrolling interests | |||||||||||
Total equity | |||||||||||
Total liabilities and equity | $ | $ |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Revenues: | |||||||||||||||||||||||
Rental and related revenues | $ | $ | $ | $ | |||||||||||||||||||
Resident fees and services | |||||||||||||||||||||||
Income from direct financing leases | |||||||||||||||||||||||
Interest income | |||||||||||||||||||||||
Total revenues | |||||||||||||||||||||||
Costs and expenses: | |||||||||||||||||||||||
Interest expense | |||||||||||||||||||||||
Depreciation and amortization | |||||||||||||||||||||||
Operating | |||||||||||||||||||||||
General and administrative | |||||||||||||||||||||||
Transaction costs | |||||||||||||||||||||||
Impairments and loan loss reserves (recoveries), net | |||||||||||||||||||||||
Total costs and expenses | |||||||||||||||||||||||
Other income (expense): | |||||||||||||||||||||||
Gain (loss) on sales of real estate, net | ( | ||||||||||||||||||||||
Gain (loss) on debt extinguishments | ( | ( | |||||||||||||||||||||
Other income (expense), net | |||||||||||||||||||||||
Total other income (expense), net | ( | ||||||||||||||||||||||
Income (loss) before income taxes and equity income (loss) from unconsolidated joint ventures | |||||||||||||||||||||||
Income tax benefit (expense) | |||||||||||||||||||||||
Equity income (loss) from unconsolidated joint ventures | ( | ||||||||||||||||||||||
Income (loss) from continuing operations | |||||||||||||||||||||||
Income (loss) from discontinued operations | ( | ||||||||||||||||||||||
Net income (loss) | |||||||||||||||||||||||
Noncontrolling interests’ share in continuing operations | ( | ( | ( | ( | |||||||||||||||||||
Noncontrolling interests’ share in discontinued operations | ( | ||||||||||||||||||||||
Net income (loss) attributable to Healthpeak Properties, Inc. | |||||||||||||||||||||||
Participating securities’ share in earnings | ( | ( | ( | ( | |||||||||||||||||||
Net income (loss) applicable to common shares | $ | $ | $ | $ | |||||||||||||||||||
Basic earnings (loss) per common share: | |||||||||||||||||||||||
Continuing operations | $ | $ | $ | $ | |||||||||||||||||||
Discontinued operations | |||||||||||||||||||||||
Net income (loss) applicable to common shares | $ | $ | $ | $ | |||||||||||||||||||
Diluted earnings (loss) per common share: | |||||||||||||||||||||||
Continuing operations | $ | $ | $ | $ | |||||||||||||||||||
Discontinued operations | |||||||||||||||||||||||
Net income (loss) applicable to common shares | $ | $ | $ | $ | |||||||||||||||||||
Weighted average shares outstanding: | |||||||||||||||||||||||
Basic | |||||||||||||||||||||||
Diluted |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Net income (loss) | $ | $ | $ | $ | |||||||||||||||||||
Other comprehensive income (loss): | |||||||||||||||||||||||
Net unrealized gains (losses) on derivatives | |||||||||||||||||||||||
Change in Supplemental Executive Retirement Plan obligation and other | |||||||||||||||||||||||
Reclassification adjustment realized in net income (loss) | ( | ||||||||||||||||||||||
Total other comprehensive income (loss) | |||||||||||||||||||||||
Total comprehensive income (loss) | |||||||||||||||||||||||
Total comprehensive (income) loss attributable to noncontrolling interests’ share in continuing operations | ( | ( | ( | ( | |||||||||||||||||||
Total comprehensive (income) loss attributable to noncontrolling interests’ share in discontinued operations | ( | ||||||||||||||||||||||
Total comprehensive income (loss) attributable to Healthpeak Properties, Inc. | $ | $ | $ | $ | |||||||||||||||||||
Common Stock | Additional Paid-In Capital | Cumulative Dividends In Excess Of Earnings | Accumulated Other Comprehensive Income (Loss) | Total Stockholders’ Equity | Total Noncontrolling Interests | Total Equity | Redeemable Noncontrolling Interests | ||||||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | ||||||||||||||||||||||||||||||||||||||||||||||||||||
July 1, 2022 | $ | $ | $ | ( | $ | ( | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||
Net income (loss) | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss) | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
Issuance of common stock, net | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Repurchase of common stock | ( | ( | ( | — | — | ( | — | ( | — | ||||||||||||||||||||||||||||||||||||||||||||
Amortization of stock-based compensation | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
Common dividends ($ | — | — | — | ( | — | ( | — | ( | — | ||||||||||||||||||||||||||||||||||||||||||||
Distributions to noncontrolling interests | — | — | — | — | — | — | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||
Contributions from noncontrolling interests | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||
Adjustments to redemption value of redeemable noncontrolling interests | — | — | ( | — | — | ( | — | ( | |||||||||||||||||||||||||||||||||||||||||||||
September 30, 2022 | $ | $ | $ | ( | $ | $ | $ | $ | $ |
Common Stock | Additional Paid-In Capital | Cumulative Dividends In Excess Of Earnings | Accumulated Other Comprehensive Income (Loss) | Total Stockholders’ Equity | Total Noncontrolling Interests | Total Equity | Redeemable Noncontrolling Interests | ||||||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | ||||||||||||||||||||||||||||||||||||||||||||||||||||
July 1, 2021 | $ | $ | $ | ( | $ | ( | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||
Net income (loss) | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss) | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
Issuance of common stock, net | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Repurchase of common stock | ( | ( | ( | — | — | ( | — | ( | — | ||||||||||||||||||||||||||||||||||||||||||||
Exercise of stock options | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Amortization of stock-based compensation | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
Common dividends ($ | — | — | — | ( | — | ( | — | ( | — | ||||||||||||||||||||||||||||||||||||||||||||
Distributions to noncontrolling interests | — | — | — | — | — | — | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||
Contributions from noncontrolling interests | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||
Adjustments to redemption value of redeemable noncontrolling interests | — | — | ( | — | — | ( | — | ( | |||||||||||||||||||||||||||||||||||||||||||||
September 30, 2021 | $ | $ | $ | ( | $ | ( | $ | $ | $ | $ |
Common Stock | Additional Paid-In Capital | Cumulative Dividends In Excess Of Earnings | Accumulated Other Comprehensive Income (Loss) | Total Stockholders’ Equity | Total Noncontrolling Interests | Total Equity | Redeemable Noncontrolling Interests | ||||||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | ||||||||||||||||||||||||||||||||||||||||||||||||||||
January 1, 2022 | $ | $ | $ | ( | $ | ( | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||
Net income (loss) | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss) | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
Issuance of common stock, net | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Repurchase of common stock | ( | ( | ( | — | — | ( | — | ( | — | ||||||||||||||||||||||||||||||||||||||||||||
Amortization of stock-based compensation | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
Common dividends ($ | — | — | — | ( | — | ( | — | ( | — | ||||||||||||||||||||||||||||||||||||||||||||
Distributions to noncontrolling interests | — | — | — | — | — | — | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||
Contributions from noncontrolling interests | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||
Adjustments to redemption value of redeemable noncontrolling interests | — | — | ( | — | — | ( | — | ( | |||||||||||||||||||||||||||||||||||||||||||||
September 30, 2022 | $ | $ | $ | ( | $ | $ | $ | $ | $ |
Common Stock | Additional Paid-In Capital | Cumulative Dividends In Excess Of Earnings | Accumulated Other Comprehensive Income (Loss) | Total Stockholders’ Equity | Total Noncontrolling Interests | Total Equity | Redeemable Noncontrolling Interests | ||||||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | ||||||||||||||||||||||||||||||||||||||||||||||||||||
January 1, 2021 | $ | $ | $ | ( | $ | ( | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||
Net income (loss) | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss) | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
Issuance of common stock, net | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Repurchase of common stock | ( | ( | ( | — | — | ( | — | ( | — | ||||||||||||||||||||||||||||||||||||||||||||
Exercise of stock options | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Amortization of stock-based compensation | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
Common dividends ($ | — | — | — | ( | — | ( | — | ( | — | ||||||||||||||||||||||||||||||||||||||||||||
Distributions to noncontrolling interests | — | — | — | — | — | — | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||
Purchase of noncontrolling interests | — | — | ( | — | — | ( | ( | ( | — | ||||||||||||||||||||||||||||||||||||||||||||
Contributions from noncontrolling interests | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||
Adjustments to redemption value of redeemable noncontrolling interests | — | — | ( | — | — | ( | — | ( | |||||||||||||||||||||||||||||||||||||||||||||
September 30, 2021 | $ | $ | $ | ( | $ | ( | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||
Nine Months Ended September 30, | |||||||||||
2022 | 2021 | ||||||||||
Cash flows from operating activities: | |||||||||||
Net income (loss) | $ | $ | |||||||||
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | |||||||||||
Depreciation and amortization of real estate, in-place lease, and other intangibles | |||||||||||
Stock-based compensation amortization expense | |||||||||||
Amortization of deferred financing costs | |||||||||||
Straight-line rents | ( | ( | |||||||||
Amortization of nonrefundable entrance fees and above/below market lease intangibles | ( | ( | |||||||||
Equity loss (income) from unconsolidated joint ventures | ( | ( | |||||||||
Distributions of earnings from unconsolidated joint ventures | |||||||||||
Loss (gain) on sale of real estate under direct financing leases | ( | ||||||||||
Deferred income tax expense (benefit) | ( | ( | |||||||||
Impairments and loan loss reserves (recoveries), net | |||||||||||
Loss (gain) on debt extinguishments | |||||||||||
Loss (gain) on sales of real estate, net | ( | ( | |||||||||
Loss (gain) upon change of control, net | ( | ( | |||||||||
Casualty-related loss (recoveries), net | |||||||||||
Other non-cash items | ( | ( | |||||||||
Changes in: | |||||||||||
Decrease (increase) in accounts receivable and other assets, net | ( | ||||||||||
Increase (decrease) in accounts payable, accrued liabilities, and deferred revenue | ( | ||||||||||
Net cash provided by (used in) operating activities | |||||||||||
Cash flows from investing activities: | |||||||||||
Acquisitions of real estate | ( | ( | |||||||||
Development, redevelopment, and other major improvements of real estate | ( | ( | |||||||||
Leasing costs, tenant improvements, and recurring capital expenditures | ( | ( | |||||||||
Proceeds from sales of real estate, net | |||||||||||
Proceeds from the South San Francisco JVs transaction, net | |||||||||||
Contributions to unconsolidated joint ventures | ( | ( | |||||||||
Distributions in excess of earnings from unconsolidated joint ventures | |||||||||||
Proceeds from sales/principal repayments on loans receivable and direct financing leases | |||||||||||
Investments in loans receivable and other | ( | ( | |||||||||
Net cash provided by (used in) investing activities | ( | ||||||||||
Cash flows from financing activities: | |||||||||||
Borrowings under bank line of credit and commercial paper | |||||||||||
Repayments under bank line of credit and commercial paper | ( | ( | |||||||||
Issuance and borrowings of debt, excluding bank line of credit and commercial paper | |||||||||||
Repayments and repurchase of debt, excluding bank line of credit and commercial paper | ( | ( | |||||||||
Payments for debt extinguishment and deferred financing costs | ( | ( | |||||||||
Issuance of common stock and exercise of options, net of offering costs | |||||||||||
Repurchase of common stock | ( | ( | |||||||||
Dividends paid on common stock | ( | ( | |||||||||
Distributions to and purchase of noncontrolling interests | ( | ( | |||||||||
Contributions from and issuance of noncontrolling interests | |||||||||||
Net cash provided by (used in) financing activities | ( | ( | |||||||||
Net increase (decrease) in cash, cash equivalents and restricted cash | ( | ||||||||||
Cash, cash equivalents and restricted cash, beginning of period | |||||||||||
Cash, cash equivalents and restricted cash, end of period | $ | $ |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Government grant income recorded in other income (expense), net | $ | $ | $ | $ | |||||||||||||||||||
Government grant income recorded in equity income (loss) from unconsolidated joint ventures | |||||||||||||||||||||||
Government grant income recorded in income (loss) from discontinued operations | |||||||||||||||||||||||
Total government grants received | $ | $ | $ | $ |
September 30, 2022 | December 31, 2021 | ||||||||||
ASSETS | |||||||||||
Accounts receivable, net of allowance of $ | $ | $ | |||||||||
Cash and cash equivalents | |||||||||||
Right-of-use asset, net | |||||||||||
Other assets, net | |||||||||||
Total assets of discontinued operations, net | |||||||||||
Assets held for sale, net(1) | |||||||||||
Assets held for sale and discontinued operations, net | $ | $ | |||||||||
LIABILITIES | |||||||||||
Lease liability | $ | $ | |||||||||
Accounts payable, accrued liabilities, and other liabilities | |||||||||||
Deferred revenue | |||||||||||
Total liabilities of discontinued operations, net | |||||||||||
Liabilities related to assets held for sale, net(1) | |||||||||||
Liabilities related to assets held for sale and discontinued operations, net | $ | $ |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Revenues: | |||||||||||||||||||||||
Rental and related revenues | $ | $ | $ | $ | |||||||||||||||||||
Resident fees and services | |||||||||||||||||||||||
Total revenues | |||||||||||||||||||||||
Costs and expenses: | |||||||||||||||||||||||
Interest expense | |||||||||||||||||||||||
Operating | |||||||||||||||||||||||
Transaction costs | |||||||||||||||||||||||
Impairments and loan loss reserves (recoveries), net | |||||||||||||||||||||||
Total costs and expenses | |||||||||||||||||||||||
Other income (expense): | |||||||||||||||||||||||
Gain (loss) on sales of real estate, net | ( | ||||||||||||||||||||||
Other income (expense), net | ( | ( | |||||||||||||||||||||
Total other income (expense), net | ( | ||||||||||||||||||||||
Income (loss) before income taxes and equity income (loss) from unconsolidated joint ventures | ( | ||||||||||||||||||||||
Income tax benefit (expense) | ( | ||||||||||||||||||||||
Equity income (loss) from unconsolidated joint ventures | |||||||||||||||||||||||
Income (loss) from discontinued operations | $ | ( | $ | $ | $ |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Fixed income from operating leases | $ | $ | $ | $ | |||||||||||||||||||
Variable income from operating leases | |||||||||||||||||||||||
Interest income from direct financing leases | |||||||||||||||||||||||
September 30, 2022 | December 31, 2021 | ||||||||||
Present value of minimum lease payments receivable | $ | $ | |||||||||
Present value of estimated residual value | |||||||||||
Less deferred selling profits | ( | ||||||||||
Net investment in direct financing leases | $ | $ |
September 30, 2022 | December 31, 2021 | ||||||||||
Secured loans(1) | $ | $ | |||||||||
Mezzanine and other | |||||||||||
Unamortized discounts, fees, and costs | ( | ( | |||||||||
Reserve for loan losses | ( | ( | |||||||||
Loans receivable, net | $ | $ |
Investment Type | Year of Origination | Total | |||||||||||||||||||||||||||||||||||||||
2022 | 2021 | 2020 | 2019 | 2018 | Prior | ||||||||||||||||||||||||||||||||||||
Secured loans | |||||||||||||||||||||||||||||||||||||||||
Risk rating: | |||||||||||||||||||||||||||||||||||||||||
Performing loans | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||
Watch list loans | |||||||||||||||||||||||||||||||||||||||||
Workout loans | |||||||||||||||||||||||||||||||||||||||||
Total secured loans | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||
Mezzanine and other | |||||||||||||||||||||||||||||||||||||||||
Risk rating: | |||||||||||||||||||||||||||||||||||||||||
Performing loans | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||
Watch list loans | |||||||||||||||||||||||||||||||||||||||||
Workout loans | |||||||||||||||||||||||||||||||||||||||||
Total mezzanine and other | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||
September 30, 2022 | December 31, 2021 | ||||||||||||||||||||||||||||||||||
Secured Loans | Mezzanine and Other | Total | Secured Loans | Mezzanine and Other | Total | ||||||||||||||||||||||||||||||
Reserve for loan losses, beginning of period | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Provision for expected loan losses | |||||||||||||||||||||||||||||||||||
Expected loan losses related to loans sold or repaid(1) | ( | ( | ( | ( | ( | ||||||||||||||||||||||||||||||
Reserve for loan losses, end of period | $ | $ | $ | $ | $ | $ |
Carrying Amount | ||||||||||||||||||||||||||||||||
September 30, | December 31, | |||||||||||||||||||||||||||||||
Entity(1) | Segment | Property Count(2) | Ownership %(2) | 2022 | 2021 | |||||||||||||||||||||||||||
SWF SH JV | Other | $ | $ | |||||||||||||||||||||||||||||
South San Francisco JVs(3) | Life science | |||||||||||||||||||||||||||||||
Life Science JV | Life science | |||||||||||||||||||||||||||||||
Needham Land Parcel JV(4) | Life science | |||||||||||||||||||||||||||||||
Medical Office JVs(5) | Medical office | |||||||||||||||||||||||||||||||
$ | $ |
Intangible lease assets | September 30, 2022 | December 31, 2021 | ||||||||||||
Gross intangible lease assets | $ | $ | ||||||||||||
Accumulated depreciation and amortization | ( | ( | ||||||||||||
Intangible assets, net(1) | $ | $ | ||||||||||||
Weighted average remaining amortization period in years |
Intangible lease liabilities | September 30, 2022 | December 31, 2021 | ||||||||||||
Gross intangible lease liabilities | $ | $ | ||||||||||||
Accumulated depreciation and amortization | ( | ( | ||||||||||||
Intangible liabilities, net | $ | $ | ||||||||||||
Weighted average remaining amortization period in years |
Payoff Date(1) | Amount | Coupon Rate | Maturity Year | |||||||||||||||||
May 19, 2021 | $ | % | 2025 | |||||||||||||||||
May 19, 2021 | % | 2025 | ||||||||||||||||||
February 26, 2021 | % | 2023 | ||||||||||||||||||
February 26, 2021 | % | 2024 | ||||||||||||||||||
February 26, 2021 | % | 2024 | ||||||||||||||||||
January 28, 2021 | % | 2023 | ||||||||||||||||||
January 28, 2021 | % | 2024 | ||||||||||||||||||
January 28, 2021 | % | 2024 |
Issue Date | Amount | Coupon Rate | Maturity Year | |||||||||||||||||
November 24, 2021 | $ | % | 2028 | |||||||||||||||||
July 12, 2021 | % | 2027 |
Senior Unsecured Notes(2) | Mortgage Debt(3) | |||||||||||||||||||||||||||||||||||||||||||
Year | Bank Line of Credit | Commercial Paper(1) | Amount | Interest Rate | Amount | Interest Rate | Total | |||||||||||||||||||||||||||||||||||||
2022 | $ | $ | $ | % | $ | % | $ | |||||||||||||||||||||||||||||||||||||
2023 | % | % | ||||||||||||||||||||||||||||||||||||||||||
2024 | % | % | ||||||||||||||||||||||||||||||||||||||||||
2025 | % | % | ||||||||||||||||||||||||||||||||||||||||||
2026 | % | % | ||||||||||||||||||||||||||||||||||||||||||
Thereafter | % | % | ||||||||||||||||||||||||||||||||||||||||||
(Discounts), premium and debt costs, net | ( | ( | ||||||||||||||||||||||||||||||||||||||||||
$ | $ | $ | $ | $ |
September 30, 2022 | December 31, 2021 | |||||||||||||
Unrealized gains (losses) on derivatives, net | $ | $ | ||||||||||||
Supplemental Executive Retirement Plan minimum liability | ( | ( | ||||||||||||
Total accumulated other comprehensive income (loss) | $ | $ | ( |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Numerator | |||||||||||||||||||||||
Income (loss) from continuing operations | $ | $ | $ | $ | |||||||||||||||||||
Noncontrolling interests' share in continuing operations | ( | ( | ( | ( | |||||||||||||||||||
Income (loss) from continuing operations attributable to Healthpeak Properties, Inc. | |||||||||||||||||||||||
Less: Participating securities' share in continuing operations | ( | ( | ( | ( | |||||||||||||||||||
Income (loss) from continuing operations applicable to common shares | |||||||||||||||||||||||
Income (loss) from discontinued operations | ( | ||||||||||||||||||||||
Noncontrolling interests' share in discontinued operations | ( | ||||||||||||||||||||||
Net income (loss) applicable to common shares | $ | $ | $ | $ | |||||||||||||||||||
Numerator - Dilutive | |||||||||||||||||||||||
Net income (loss) applicable to common shares | $ | $ | $ | $ | |||||||||||||||||||
Add: distributions on dilutive convertible units and other | |||||||||||||||||||||||
Dilutive net income (loss) available to common shares | $ | $ | $ | $ | |||||||||||||||||||
Denominator | |||||||||||||||||||||||
Basic weighted average shares outstanding | |||||||||||||||||||||||
Dilutive potential common shares - equity awards(1) | |||||||||||||||||||||||
Dilutive potential common shares - DownREIT conversions | |||||||||||||||||||||||
Diluted weighted average common shares | |||||||||||||||||||||||
Basic earnings (loss) per common share | |||||||||||||||||||||||
Continuing operations | $ | $ | $ | $ | |||||||||||||||||||
Discontinued operations | |||||||||||||||||||||||
Net income (loss) applicable to common shares | $ | $ | $ | $ | |||||||||||||||||||
Diluted earnings (loss) per common share | |||||||||||||||||||||||
Continuing operations | $ | $ | $ | $ | |||||||||||||||||||
Discontinued operations | |||||||||||||||||||||||
Net income (loss) applicable to common shares | $ | $ | $ | $ | |||||||||||||||||||
Life Science | Medical Office | CCRC | Other Non-reportable | Corporate Non-segment | Total | |||||||||||||||||||||||||||||||||
Total revenues | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||
Government grant income(1) | ||||||||||||||||||||||||||||||||||||||
Less: Interest income | ( | ( | ||||||||||||||||||||||||||||||||||||
Healthpeak’s share of unconsolidated joint venture total revenues | ||||||||||||||||||||||||||||||||||||||
Healthpeak’s share of unconsolidated joint venture government grant income | ||||||||||||||||||||||||||||||||||||||
Noncontrolling interests’ share of consolidated joint venture total revenues | ( | ( | ( | |||||||||||||||||||||||||||||||||||
Operating expenses | ( | ( | ( | ( | ||||||||||||||||||||||||||||||||||
Healthpeak’s share of unconsolidated joint venture operating expenses | ( | ( | ( | ( | ||||||||||||||||||||||||||||||||||
Noncontrolling interests’ share of consolidated joint venture operating expenses | ||||||||||||||||||||||||||||||||||||||
Adjustments to NOI(2) | ( | ( | ( | |||||||||||||||||||||||||||||||||||
Adjusted NOI | ||||||||||||||||||||||||||||||||||||||
Plus: Adjustments to NOI(2) | ( | |||||||||||||||||||||||||||||||||||||
Interest income | ||||||||||||||||||||||||||||||||||||||
Interest expense | ( | ( | ( | ( | ||||||||||||||||||||||||||||||||||
Depreciation and amortization | ( | ( | ( | ( | ||||||||||||||||||||||||||||||||||
General and administrative | ( | ( | ||||||||||||||||||||||||||||||||||||
Transaction costs | ( | ( | ( | ( | ||||||||||||||||||||||||||||||||||
Impairments and loan loss reserves | ( | ( | ||||||||||||||||||||||||||||||||||||
Gain (loss) on sales of real estate, net | ( | ( | ||||||||||||||||||||||||||||||||||||
Other income (expense), net | ( | |||||||||||||||||||||||||||||||||||||
Less: Government grant income | ( | ( | ||||||||||||||||||||||||||||||||||||
Less: Healthpeak’s share of unconsolidated joint venture NOI | ( | ( | ( | ( | ||||||||||||||||||||||||||||||||||
Plus: Noncontrolling interests’ share of consolidated joint venture NOI | ||||||||||||||||||||||||||||||||||||||
Income (loss) before income taxes and equity income (loss) from unconsolidated joint ventures | ( | ( | ( | |||||||||||||||||||||||||||||||||||
Income tax benefit (expense) | ||||||||||||||||||||||||||||||||||||||
Equity income (loss) from unconsolidated joint ventures | ( | ( | ||||||||||||||||||||||||||||||||||||
Income (loss) from continuing operations | ( | ( | ( | |||||||||||||||||||||||||||||||||||
Income (loss) from discontinued operations | ( | ( | ||||||||||||||||||||||||||||||||||||
Net income (loss) | $ | $ | $ | ( | $ | ( | $ | ( | $ |
Life Science | Medical Office | CCRC | Other Non-reportable | Corporate Non-segment | Total | |||||||||||||||||||||||||||||||||
Total revenues | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||
Government grant income(1) | ||||||||||||||||||||||||||||||||||||||
Less: Interest income | ( | ( | ||||||||||||||||||||||||||||||||||||
Healthpeak’s share of unconsolidated joint venture total revenues | ||||||||||||||||||||||||||||||||||||||
Noncontrolling interests’ share of consolidated joint venture total revenues | ( | ( | ( | |||||||||||||||||||||||||||||||||||
Operating expenses | ( | ( | ( | ( | ||||||||||||||||||||||||||||||||||
Healthpeak’s share of unconsolidated joint venture operating expenses | ( | ( | ( | ( | ( | |||||||||||||||||||||||||||||||||
Noncontrolling interests’ share of consolidated joint venture operating expenses | ||||||||||||||||||||||||||||||||||||||
Adjustments to NOI(2) | ( | ( | ( | ( | ||||||||||||||||||||||||||||||||||
Adjusted NOI | ||||||||||||||||||||||||||||||||||||||
Plus: Adjustments to NOI(2) | ( | |||||||||||||||||||||||||||||||||||||
Interest income | ||||||||||||||||||||||||||||||||||||||
Interest expense | ( | ( | ( | ( | ( | |||||||||||||||||||||||||||||||||
Depreciation and amortization | ( | ( | ( | ( | ||||||||||||||||||||||||||||||||||
General and administrative | ( | ( | ||||||||||||||||||||||||||||||||||||
Impairments and loan loss reserves | ( | ( | ||||||||||||||||||||||||||||||||||||
Gain (loss) on sales of real estate, net | ||||||||||||||||||||||||||||||||||||||
Gain (loss) on debt extinguishments | ( | ( | ||||||||||||||||||||||||||||||||||||
Other income (expense), net | ( | |||||||||||||||||||||||||||||||||||||
Less: Government grant income | ( | ( | ||||||||||||||||||||||||||||||||||||
Less: Healthpeak’s share of unconsolidated joint venture NOI | ( | ( | ( | ( | ||||||||||||||||||||||||||||||||||
Plus: Noncontrolling interests’ share of consolidated joint venture NOI | ||||||||||||||||||||||||||||||||||||||
Income (loss) before income taxes and equity income (loss) from unconsolidated joint ventures | ( | ( | ||||||||||||||||||||||||||||||||||||
Income tax benefit (expense) | ||||||||||||||||||||||||||||||||||||||
Equity income (loss) from unconsolidated joint ventures | ||||||||||||||||||||||||||||||||||||||
Income (loss) from continuing operations | ( | ( | ||||||||||||||||||||||||||||||||||||
Income (loss) from discontinued operations | ||||||||||||||||||||||||||||||||||||||
Net income (loss) | $ | $ | $ | ( | $ | $ | ( | $ |
Life Science | Medical Office | CCRC | Other Non-reportable | Corporate Non-segment | Total | |||||||||||||||||||||||||||||||||
Total revenues | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||
Government grant income(1) | ||||||||||||||||||||||||||||||||||||||
Less: Interest income | ( | ( | ||||||||||||||||||||||||||||||||||||
Healthpeak’s share of unconsolidated joint venture total revenues | ||||||||||||||||||||||||||||||||||||||
Healthpeak’s share of unconsolidated joint venture government grant income | ||||||||||||||||||||||||||||||||||||||
Noncontrolling interests’ share of consolidated joint venture total revenues | ( | ( | ( | |||||||||||||||||||||||||||||||||||
Operating expenses | ( | ( | ( | ( | ||||||||||||||||||||||||||||||||||
Healthpeak’s share of unconsolidated joint venture operating expenses | ( | ( | ( | ( | ||||||||||||||||||||||||||||||||||
Noncontrolling interests’ share of consolidated joint venture operating expenses | ||||||||||||||||||||||||||||||||||||||
Adjustments to NOI(2) | ( | ( | ( | |||||||||||||||||||||||||||||||||||
Adjusted NOI | ||||||||||||||||||||||||||||||||||||||
Plus: Adjustments to NOI(2) | ( | |||||||||||||||||||||||||||||||||||||
Interest income | ||||||||||||||||||||||||||||||||||||||
Interest expense | ( | ( | ( | ( | ||||||||||||||||||||||||||||||||||
Depreciation and amortization | ( | ( | ( | ( | ||||||||||||||||||||||||||||||||||
General and administrative | ( | ( | ||||||||||||||||||||||||||||||||||||
Transaction costs | ( | ( | ( | ( | ( | |||||||||||||||||||||||||||||||||
Impairments and loan loss reserves | ( | ( | ||||||||||||||||||||||||||||||||||||
Gain (loss) on sales of real estate, net | ( | |||||||||||||||||||||||||||||||||||||
Other income (expense), net | ( | |||||||||||||||||||||||||||||||||||||
Less: Government grant income | ( | ( | ||||||||||||||||||||||||||||||||||||
Less: Healthpeak’s share of unconsolidated joint venture NOI | ( | ( | ( | ( | ( | |||||||||||||||||||||||||||||||||
Plus: Noncontrolling interests’ share of consolidated joint venture NOI | ||||||||||||||||||||||||||||||||||||||
Income (loss) before income taxes and equity income (loss) from unconsolidated joint ventures | ( | ( | ||||||||||||||||||||||||||||||||||||
Income tax benefit (expense) | ||||||||||||||||||||||||||||||||||||||
Equity income (loss) from unconsolidated joint ventures | ||||||||||||||||||||||||||||||||||||||
Income (loss) from continuing operations | ( | ( | ||||||||||||||||||||||||||||||||||||
Income (loss) from discontinued operations | ||||||||||||||||||||||||||||||||||||||
Net income (loss) | $ | $ | $ | ( | $ | $ | ( | $ |
Life Science | Medical Office | CCRC | Other Non-reportable | Corporate Non-segment | Total | |||||||||||||||||||||||||||||||||
Total revenues | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||
Government grant income(1) | ||||||||||||||||||||||||||||||||||||||
Less: Interest income | ( | ( | ||||||||||||||||||||||||||||||||||||
Healthpeak’s share of unconsolidated joint venture total revenues | ||||||||||||||||||||||||||||||||||||||
Healthpeak’s share of unconsolidated joint venture government grant income | ||||||||||||||||||||||||||||||||||||||
Noncontrolling interests’ share of consolidated joint venture total revenues | ( | ( | ( | |||||||||||||||||||||||||||||||||||
Operating expenses | ( | ( | ( | ( | ||||||||||||||||||||||||||||||||||
Healthpeak’s share of unconsolidated joint venture operating expenses | ( | ( | ( | ( | ( | |||||||||||||||||||||||||||||||||
Noncontrolling interests’ share of consolidated joint venture operating expenses | ||||||||||||||||||||||||||||||||||||||
Adjustments to NOI(2) | ( | ( | ( | ( | ||||||||||||||||||||||||||||||||||
Adjusted NOI | ||||||||||||||||||||||||||||||||||||||
Plus: Adjustments to NOI(2) | ( | |||||||||||||||||||||||||||||||||||||
Interest income | ||||||||||||||||||||||||||||||||||||||
Interest expense | ( | ( | ( | ( | ( | |||||||||||||||||||||||||||||||||
Depreciation and amortization | ( | ( | ( | ( | ||||||||||||||||||||||||||||||||||
General and administrative | ( | ( | ||||||||||||||||||||||||||||||||||||
Transaction costs | ( | ( | ( | ( | ( | |||||||||||||||||||||||||||||||||
Impairments and loan loss reserves | ( | ( | ( | |||||||||||||||||||||||||||||||||||
Gain (loss) on sales of real estate, net | ||||||||||||||||||||||||||||||||||||||
Gain (loss) on debt extinguishments | ( | ( | ||||||||||||||||||||||||||||||||||||
Other income (expense), net | ( | |||||||||||||||||||||||||||||||||||||
Less: Government grant income | ( | ( | ||||||||||||||||||||||||||||||||||||
Less: Healthpeak’s share of unconsolidated joint venture NOI | ( | ( | ( | ( | ( | |||||||||||||||||||||||||||||||||
Plus: Noncontrolling interests’ share of consolidated joint venture NOI | ||||||||||||||||||||||||||||||||||||||
Income (loss) before income taxes and equity income (loss) from unconsolidated joint ventures | ( | ( | ||||||||||||||||||||||||||||||||||||
Income tax benefit (expense) | ||||||||||||||||||||||||||||||||||||||
Equity income (loss) from unconsolidated joint ventures | ||||||||||||||||||||||||||||||||||||||
Income (loss) from continuing operations | ( | ( | ||||||||||||||||||||||||||||||||||||
Income (loss) from discontinued operations | ||||||||||||||||||||||||||||||||||||||
Net income (loss) | $ | $ | $ | ( | $ | $ | ( | $ |
Nine Months Ended September 30, | ||||||||||||||
2022 | 2021 | |||||||||||||
Supplemental cash flow information: | ||||||||||||||
Interest paid, net of capitalized interest | $ | $ | ||||||||||||
Income taxes paid (refunded) | ( | |||||||||||||
Capitalized interest | ||||||||||||||
Supplemental schedule of non-cash investing and financing activities: | ||||||||||||||
Retained investment in connection with South San Francisco JVs transaction | ||||||||||||||
Increase in ROU asset in exchange for new lease liability related to operating leases | ||||||||||||||
Decrease in ROU asset with corresponding change in lease liability related to operating leases | ||||||||||||||
Seller financing provided on disposition of real estate asset | ||||||||||||||
Accrued construction costs | ||||||||||||||
Vesting of restricted stock units and conversion of non-managing member units into common stock | ||||||||||||||
Carrying value of mortgages assumed by buyer in real estate dispositions | ||||||||||||||
Nine Months Ended September 30, | ||||||||||||||
2022 | 2021 | |||||||||||||
Leasing costs, tenant improvements, and recurring capital expenditures | $ | $ | ||||||||||||
Development, redevelopment, and other major improvements of real estate | ||||||||||||||
Depreciation and amortization of real estate, in-place lease, and other intangibles |
Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||||||||||||
Continuing operations | Discontinued operations | Total | ||||||||||||||||||||||||||||||||||||
Beginning of period: | ||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||
Restricted cash | ||||||||||||||||||||||||||||||||||||||
Cash, cash equivalents and restricted cash | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||
End of period: | ||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||
Restricted cash | ||||||||||||||||||||||||||||||||||||||
Cash, cash equivalents and restricted cash | $ | $ | $ | $ | $ | $ |
VIE Type | Asset Type | Maximum Loss Exposure and Carrying Amount(1) | ||||||||||||
CMBS and LLC investment | Other assets, net | $ | ||||||||||||
Needham Land Parcel JV | Investments in and advances to unconsolidated joint ventures | |||||||||||||
September 30, 2022 | December 31, 2021 | ||||||||||
Assets | |||||||||||
Buildings and improvements | $ | $ | |||||||||
Development costs and construction in progress | |||||||||||
Land | |||||||||||
Accumulated depreciation and amortization | ( | ( | |||||||||
Net real estate | |||||||||||
Accounts receivable, net | |||||||||||
Cash and cash equivalents | |||||||||||
Restricted cash | |||||||||||
Intangible assets, net | |||||||||||
Assets held for sale and discontinued operations, net | |||||||||||
Right-of-use asset, net | |||||||||||
Other assets, net | |||||||||||
Total assets | $ | $ | |||||||||
Liabilities | |||||||||||
Mortgage debt | $ | $ | |||||||||
Intangible liabilities, net | |||||||||||
Liabilities related to assets held for sale and discontinued operations, net | |||||||||||
Lease liability | |||||||||||
Accounts payable, accrued liabilities, and other liabilities | |||||||||||
Deferred revenue | |||||||||||
Total liabilities | $ | $ |
September 30, 2022 | December 31, 2021 | |||||||||||||
Assets | ||||||||||||||
Buildings and improvements | $ | $ | ||||||||||||
Development costs and construction in progress | ||||||||||||||
Land | ||||||||||||||
Accumulated depreciation and amortization | ( | |||||||||||||
Net real estate | ||||||||||||||
Accounts receivable, net | ||||||||||||||
Cash and cash equivalents | ||||||||||||||
Intangible assets, net | ||||||||||||||
Other assets, net | ||||||||||||||
Total assets | $ | $ | ||||||||||||
Liabilities | ||||||||||||||
Accounts payable, accrued liabilities, and other liabilities | $ | $ | ||||||||||||
Deferred revenue | ||||||||||||||
Total liabilities | $ | $ |
September 30, 2022(3) | December 31, 2021(3) | ||||||||||||||||||||||
Carrying Value | Fair Value | Carrying Value | Fair Value | ||||||||||||||||||||
Loans receivable, net(2) | $ | $ | $ | $ | |||||||||||||||||||
Marketable debt securities(2) | |||||||||||||||||||||||
Interest rate swap instruments(2) | |||||||||||||||||||||||
Interest rate cap instruments(2) | |||||||||||||||||||||||
Bank line of credit and commercial paper(2) | |||||||||||||||||||||||
Senior unsecured notes(1) | |||||||||||||||||||||||
Mortgage debt(2) | |||||||||||||||||||||||
Fair Value(1) | ||||||||||||||||||||||||||
Date Entered | Maturity Date | Hedge Designation | Notional Amount | Pay Rate | Receive Rate | September 30, 2022 | December 31, 2021 | |||||||||||||||||||
April 2022(2) | May 2026 | Cash flow | $ | 1 mo. USD-LIBOR-BBA + | $ | $ | ||||||||||||||||||||
April 2022(2) | May 2026 | Cash flow | 1 mo. USD-LIBOR-BBA + | |||||||||||||||||||||||
August 2022(2) | February 2027 | Cash flow | 1 mo. USD-SOFR CME Term | |||||||||||||||||||||||
August 2022(2) | August 2027 | Cash flow | 1 mo. USD-SOFR CME Term |
Fair Value(1) | ||||||||||||||||||||||||||||||||||||||||||||
Date Entered | Maturity Date | Hedge Designation | Notional Amount | Strike Rate | Index | September 30, 2022 | December 31, 2021 | |||||||||||||||||||||||||||||||||||||
April 2021(2) | May 2024 | Non-designated | $ | 1 mo. USD-LIBOR-BBA | $ | $ |
September 30, 2022 | December 31, 2021 | ||||||||||
Refundable entrance fees(1) | $ | $ | |||||||||
Accrued construction costs | |||||||||||
Accrued interest | |||||||||||
Other accounts payable and accrued liabilities | |||||||||||
Accounts payable, accrued liabilities, and other liabilities | $ | $ |
Segment | Total Portfolio Adjusted NOI(1) | Percentage of Total Portfolio Adjusted NOI | Number of Properties | |||||||||||||||||
Life science | $ | 139,539 | 51 | % | 149 | |||||||||||||||
Medical office | 109,678 | 40 | % | 297 | ||||||||||||||||
CCRC | 21,882 | 8 | % | 15 | ||||||||||||||||
Other non-reportable | 4,316 | 1 | % | 19 | ||||||||||||||||
Totals | $ | 275,415 | 100 | % | 480 |
Declaration Date | Record Date | Amount Per Share | Dividend Payment Date | |||||||||||||||||
January 27 | February 11 | $ | 0.30 | February 22 | ||||||||||||||||
April 28 | May 9 | 0.30 | May 20 | |||||||||||||||||
July 28 | August 8 | 0.30 | August 19 | |||||||||||||||||
October 27 | November 7 | 0.30 | November 18 |
Three Months Ended September 30, | |||||||||||||||||
2022 | 2021 | Change | |||||||||||||||
Net income (loss) applicable to common shares | $ | 353,366 | $ | 54,442 | $ | 298,924 | |||||||||||
Nareit FFO | 225,074 | 194,914 | 30,160 | ||||||||||||||
FFO as Adjusted | 233,166 | 217,471 | 15,695 | ||||||||||||||
AFFO | 193,314 | 179,739 | 13,575 |
Nine Months Ended September 30, | |||||||||||||||||
2022 | 2021 | Change | |||||||||||||||
Net income (loss) applicable to common shares | $ | 491,398 | $ | 473,778 | $ | 17,620 | |||||||||||
Nareit FFO | 704,658 | 384,877 | 319,781 | ||||||||||||||
FFO as Adjusted | 704,460 | 650,166 | 54,294 | ||||||||||||||
AFFO | 590,938 | 553,578 | 37,360 |
SS | Total Portfolio | ||||||||||||||||||||||||||||||||||
Three Months Ended September 30, | Three Months Ended September 30, | ||||||||||||||||||||||||||||||||||
2022 | 2021 | Change | 2022 | 2021 | Change | ||||||||||||||||||||||||||||||
Rental and related revenues | $ | 167,084 | $ | 153,324 | $ | 13,760 | $ | 207,795 | $ | 184,213 | $ | 23,582 | |||||||||||||||||||||||
Healthpeak’s share of unconsolidated joint venture total revenues | 2,628 | 3,228 | (600) | 2,938 | 1,521 | 1,417 | |||||||||||||||||||||||||||||
Noncontrolling interests’ share of consolidated joint venture total revenues | (33) | (31) | (2) | (55) | (82) | 27 | |||||||||||||||||||||||||||||
Operating expenses | (44,286) | (38,228) | (6,058) | (55,162) | (44,923) | (10,239) | |||||||||||||||||||||||||||||
Healthpeak’s share of unconsolidated joint venture operating expenses | (668) | (705) | 37 | (777) | (463) | (314) | |||||||||||||||||||||||||||||
Noncontrolling interests’ share of consolidated joint venture operating expenses | 10 | 9 | 1 | 21 | 25 | (4) | |||||||||||||||||||||||||||||
Adjustments to NOI(1) | (10,469) | (9,141) | (1,328) | (15,221) | (11,021) | (4,200) | |||||||||||||||||||||||||||||
Adjusted NOI | $ | 114,266 | $ | 108,456 | $ | 5,810 | 139,539 | 129,270 | 10,269 | ||||||||||||||||||||||||||
Less: non-SS Adjusted NOI | (25,273) | (20,814) | (4,459) | ||||||||||||||||||||||||||||||||
SS Adjusted NOI | $ | 114,266 | $ | 108,456 | $ | 5,810 | |||||||||||||||||||||||||||||
Adjusted NOI % change | 5.4 | % | |||||||||||||||||||||||||||||||||
Property count(2) | 118 | 118 | 149 | 146 | |||||||||||||||||||||||||||||||
End of period occupancy | 98.8 | % | 97.5 | % | 99.0 | % | 97.1 | % | |||||||||||||||||||||||||||
Average occupancy | 98.7 | % | 97.5 | % | 98.8 | % | 97.1 | % | |||||||||||||||||||||||||||
Average occupied square feet | 8,910 | 8,651 | 10,708 | 10,021 | |||||||||||||||||||||||||||||||
Average annual total revenues per occupied square foot(3) | $ | 72 | $ | 68 | $ | 74 | $ | 69 | |||||||||||||||||||||||||||
Average annual base rent per occupied square foot(4) | $ | 54 | $ | 52 | $ | 56 | $ | 54 |
SS | Total Portfolio(1) | ||||||||||||||||||||||||||||||||||
Nine Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||||
2022 | 2021 | Change | 2022 | 2021 | Change | ||||||||||||||||||||||||||||||
Rental and related revenues | $ | 447,719 | $ | 418,597 | $ | 29,122 | $ | 609,620 | $ | 531,674 | $ | 77,946 | |||||||||||||||||||||||
Healthpeak’s share of unconsolidated joint venture total revenues | 10,175 | 9,359 | 816 | 5,637 | 4,270 | 1,367 | |||||||||||||||||||||||||||||
Noncontrolling interests’ share of consolidated joint venture total revenues | (76) | (73) | (3) | (174) | (222) | 48 | |||||||||||||||||||||||||||||
Operating expenses | (110,244) | (96,696) | (13,548) | (152,796) | (125,108) | (27,688) | |||||||||||||||||||||||||||||
Healthpeak’s share of unconsolidated joint venture operating expenses | (2,151) | (2,019) | (132) | (1,744) | (1,316) | (428) | |||||||||||||||||||||||||||||
Noncontrolling interests’ share of consolidated joint venture operating expenses | 24 | 21 | 3 | 59 | 66 | (7) | |||||||||||||||||||||||||||||
Adjustments to NOI(2) | (28,747) | (26,961) | (1,786) | (50,977) | (35,197) | (15,780) | |||||||||||||||||||||||||||||
Adjusted NOI | $ | 316,700 | $ | 302,228 | $ | 14,472 | 409,625 | 374,167 | 35,458 | ||||||||||||||||||||||||||
Less: non-SS Adjusted NOI | (92,925) | (71,939) | (20,986) | ||||||||||||||||||||||||||||||||
SS Adjusted NOI | $ | 316,700 | $ | 302,228 | $ | 14,472 | |||||||||||||||||||||||||||||
Adjusted NOI % change | 4.8 | % | |||||||||||||||||||||||||||||||||
Property count(3) | 114 | 114 | 149 | 146 | |||||||||||||||||||||||||||||||
End of period occupancy | 98.8 | % | 97.4 | % | 99.0 | % | 97.1 | % | |||||||||||||||||||||||||||
Average occupancy | 98.7 | % | 97.7 | % | 98.6 | % | 96.9 | % | |||||||||||||||||||||||||||
Average occupied square feet | 8,455 | 8,221 | 10,666 | 10,119 | |||||||||||||||||||||||||||||||
Average annual total revenues per occupied square foot(4) | $ | 68 | $ | 65 | $ | 71 | $ | 66 | |||||||||||||||||||||||||||
Average annual base rent per occupied square foot(5) | $ | 53 | $ | 51 | $ | 55 | $ | 52 |
SS | Total Portfolio(1) | ||||||||||||||||||||||||||||||||||
Three Months Ended September 30, | Three Months Ended September 30, | ||||||||||||||||||||||||||||||||||
2022 | 2021 | Change | 2022 | 2021 | Change | ||||||||||||||||||||||||||||||
Rental and related revenues | $ | 156,966 | $ | 149,864 | $ | 7,102 | $ | 184,506 | $ | 169,303 | $ | 15,203 | |||||||||||||||||||||||
Income from direct financing leases | — | — | — | — | 2,179 | (2,179) | |||||||||||||||||||||||||||||
Healthpeak’s share of unconsolidated joint venture total revenues | 733 | 714 | 19 | 756 | 737 | 19 | |||||||||||||||||||||||||||||
Noncontrolling interests’ share of consolidated joint venture total revenues | (8,812) | (8,659) | (153) | (8,968) | (8,954) | (14) | |||||||||||||||||||||||||||||
Operating expenses | (52,972) | (50,120) | (2,852) | (64,782) | (58,430) | (6,352) | |||||||||||||||||||||||||||||
Healthpeak’s share of unconsolidated joint venture operating expenses | (313) | (304) | (9) | (313) | (305) | (8) | |||||||||||||||||||||||||||||
Noncontrolling interests’ share of consolidated joint venture operating expenses | 2,558 | 2,592 | (34) | 2,558 | 2,659 | (101) | |||||||||||||||||||||||||||||
Adjustments to NOI(2) | (2,300) | (2,717) | 417 | (4,079) | (3,626) | (453) | |||||||||||||||||||||||||||||
Adjusted NOI | $ | 95,860 | $ | 91,370 | $ | 4,490 | 109,678 | 103,563 | 6,115 | ||||||||||||||||||||||||||
Less: non-SS Adjusted NOI | (13,818) | (12,193) | (1,625) | ||||||||||||||||||||||||||||||||
SS Adjusted NOI | $ | 95,860 | $ | 91,370 | $ | 4,490 | |||||||||||||||||||||||||||||
Adjusted NOI % change | 4.9 | % | |||||||||||||||||||||||||||||||||
Property count(3) | 262 | 262 | 297 | 300 | |||||||||||||||||||||||||||||||
End of period occupancy | 91.2 | % | 91.2 | % | 90.0 | % | 90.1 | % | |||||||||||||||||||||||||||
Average occupancy | 91.2 | % | 91.1 | % | 89.9 | % | 89.9 | % | |||||||||||||||||||||||||||
Average occupied square feet | 19,157 | 19,123 | 21,624 | 21,337 | |||||||||||||||||||||||||||||||
Average annual total revenues per occupied square foot(4) | $ | 33 | $ | 32 | $ | 34 | $ | 31 | |||||||||||||||||||||||||||
Average annual base rent per occupied square foot(5) | $ | 27 | $ | 26 | $ | 27 | $ | 27 |
SS | Total Portfolio(1) | ||||||||||||||||||||||||||||||||||
Nine Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||||
2022 | 2021 | Change | 2022 | 2021 | Change | ||||||||||||||||||||||||||||||
Rental and related revenues | $ | 436,724 | $ | 416,998 | $ | 19,726 | $ | 539,910 | $ | 490,456 | $ | 49,454 | |||||||||||||||||||||||
Income from direct financing leases | — | — | — | 1,168 | 6,522 | (5,354) | |||||||||||||||||||||||||||||
Healthpeak’s share of unconsolidated joint venture total revenues | 2,180 | 2,095 | 85 | 2,249 | 2,162 | 87 | |||||||||||||||||||||||||||||
Noncontrolling interests’ share of consolidated joint venture total revenues | (26,265) | (25,728) | (537) | (26,732) | (26,704) | (28) | |||||||||||||||||||||||||||||
Operating expenses | (145,379) | (135,663) | (9,716) | (189,274) | (164,198) | (25,076) | |||||||||||||||||||||||||||||
Healthpeak’s share of unconsolidated joint venture operating expenses | (913) | (915) | 2 | (912) | (915) | 3 | |||||||||||||||||||||||||||||
Noncontrolling interests’ share of consolidated joint venture operating expenses | 7,886 | 7,500 | 386 | 7,886 | 7,714 | 172 | |||||||||||||||||||||||||||||
Adjustments to NOI(2) | (5,318) | (6,554) | 1,236 | (10,574) | (7,553) | (3,021) | |||||||||||||||||||||||||||||
Adjusted NOI | $ | 268,915 | $ | 257,733 | $ | 11,182 | 323,721 | 307,484 | 16,237 | ||||||||||||||||||||||||||
Less: non-SS Adjusted NOI | (54,806) | (49,751) | (5,055) | ||||||||||||||||||||||||||||||||
SS Adjusted NOI | $ | 268,915 | $ | 257,733 | $ | 11,182 | |||||||||||||||||||||||||||||
Adjusted NOI % change | 4.3 | % | |||||||||||||||||||||||||||||||||
Property count(3) | 246 | 246 | 297 | 300 | |||||||||||||||||||||||||||||||
End of period occupancy | 91.3 | % | 91.3 | % | 90.0 | % | 90.1 | % | |||||||||||||||||||||||||||
Average occupancy | 91.5 | % | 91.4 | % | 89.9 | % | 90.1 | % | |||||||||||||||||||||||||||
Average occupied square feet | 18,368 | 18,333 | 21,686 | 20,827 | |||||||||||||||||||||||||||||||
Average annual total revenues per occupied square foot(4) | $ | 32 | $ | 31 | $ | 34 | $ | 31 | |||||||||||||||||||||||||||
Average annual base rent per occupied square foot(5) | $ | 27 | $ | 26 | $ | 27 | $ | 27 |
SS | Total Portfolio | ||||||||||||||||||||||||||||||||||
Three Months Ended September 30, | Three Months Ended September 30, | ||||||||||||||||||||||||||||||||||
2022 | 2021 | Change | 2022 | 2021 | Change | ||||||||||||||||||||||||||||||
Resident fees and services | $ | 122,142 | $ | 119,022 | $ | 3,120 | $ | 122,142 | $ | 119,022 | $ | 3,120 | |||||||||||||||||||||||
Government grant income(1) | 4 | 15 | (11) | 4 | 15 | (11) | |||||||||||||||||||||||||||||
Operating expenses | (99,914) | (98,405) | (1,509) | (100,264) | (98,799) | (1,465) | |||||||||||||||||||||||||||||
Healthpeak’s share of unconsolidated joint venture operating expenses | — | — | — | — | (32) | 32 | |||||||||||||||||||||||||||||
Adjustments to NOI(2) | — | 724 | (724) | — | 724 | (724) | |||||||||||||||||||||||||||||
Adjusted NOI | $ | 22,232 | $ | 21,356 | $ | 876 | 21,882 | 20,930 | 952 | ||||||||||||||||||||||||||
Plus: non-SS adjustments | 350 | 426 | (76) | ||||||||||||||||||||||||||||||||
SS Adjusted NOI | $ | 22,232 | $ | 21,356 | $ | 876 | |||||||||||||||||||||||||||||
Adjusted NOI % change | 4.1 | % | |||||||||||||||||||||||||||||||||
Property count(3) | 15 | 15 | 15 | 15 | |||||||||||||||||||||||||||||||
Average occupancy | 82.0 | % | 79.5 | % | 82.0 | % | 79.5 | % | |||||||||||||||||||||||||||
Average occupied units(4) | 5,894 | 5,910 | 5,894 | 5,910 | |||||||||||||||||||||||||||||||
Average annual rent per occupied unit | $ | 82,895 | $ | 80,566 | $ | 82,895 | $ | 80,566 |
SS | Total Portfolio | ||||||||||||||||||||||||||||||||||
Nine Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||||
2022 | 2021 | Change | 2022 | 2021 | Change | ||||||||||||||||||||||||||||||
Resident fees and services | $ | 369,062 | $ | 352,458 | $ | 16,604 | $ | 369,062 | $ | 352,458 | $ | 16,604 | |||||||||||||||||||||||
Government grant income(1) | 6,765 | 1,412 | 5,353 | 6,765 | 1,412 | 5,353 | |||||||||||||||||||||||||||||
Healthpeak’s share of unconsolidated joint venture total revenues | — | — | — | — | 6,903 | (6,903) | |||||||||||||||||||||||||||||
Healthpeak’s share of unconsolidated joint venture government grant income | — | — | — | 334 | 200 | 134 | |||||||||||||||||||||||||||||
Operating expenses | (299,146) | (283,200) | (15,946) | (300,429) | (284,739) | (15,690) | |||||||||||||||||||||||||||||
Healthpeak’s share of unconsolidated joint venture operating expenses | — | — | — | — | (6,985) | 6,985 | |||||||||||||||||||||||||||||
Adjustments to NOI(2) | — | 1,933 | (1,933) | — | 1,971 | (1,971) | |||||||||||||||||||||||||||||
Adjusted NOI | $ | 76,681 | $ | 72,603 | $ | 4,078 | 75,732 | 71,220 | 4,512 | ||||||||||||||||||||||||||
Plus: non-SS adjustments | 949 | 1,383 | (434) | ||||||||||||||||||||||||||||||||
SS Adjusted NOI | $ | 76,681 | $ | 72,603 | $ | 4,078 | |||||||||||||||||||||||||||||
Adjusted NOI % change | 5.6 | % | |||||||||||||||||||||||||||||||||
Property count(3) | 15 | 15 | 15 | 15 | |||||||||||||||||||||||||||||||
Average occupancy | 81.3 | % | 79.2 | % | 81.3 | % | 79.2 | % | |||||||||||||||||||||||||||
Average occupied units(4) | 5,928 | 5,890 | 5,928 | 6,052 | |||||||||||||||||||||||||||||||
Average annual rent per occupied unit | $ | 84,532 | $ | 80,107 | $ | 84,606 | $ | 79,533 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||||
2022 | 2021 | Change | 2022 | 2021 | Change | ||||||||||||||||||||||||||||||
Interest income | $ | 5,963 | $ | 6,748 | $ | (785) | $ | 16,950 | $ | 31,869 | $ | (14,919) | |||||||||||||||||||||||
Interest expense | 44,078 | 35,905 | 8,173 | 123,531 | 121,429 | 2,102 | |||||||||||||||||||||||||||||
Depreciation and amortization | 173,190 | 177,175 | (3,985) | 531,412 | 506,172 | 25,240 | |||||||||||||||||||||||||||||
General and administrative | 24,549 | 23,270 | 1,279 | 73,161 | 72,260 | 901 | |||||||||||||||||||||||||||||
Transaction costs | 728 | — | 728 | 1,636 | 1,417 | 219 | |||||||||||||||||||||||||||||
Impairments and loan loss reserves (recoveries), net | 3,407 | 285 | 3,122 | 3,678 | 4,458 | (780) | |||||||||||||||||||||||||||||
Gain (loss) on sales of real estate, net | (4,149) | 14,635 | (18,784) | 10,047 | 189,873 | (179,826) | |||||||||||||||||||||||||||||
Gain (loss) on debt extinguishments | — | (667) | 667 | — | (225,824) | 225,824 | |||||||||||||||||||||||||||||
Other income (expense), net | 305,678 | 1,670 | 304,008 | 326,855 | 5,604 | 321,251 | |||||||||||||||||||||||||||||
Income tax benefit (expense) | 3,834 | 649 | 3,185 | 3,775 | 1,404 | 2,371 | |||||||||||||||||||||||||||||
Equity income (loss) from unconsolidated joint ventures | (325) | 2,327 | (2,652) | 2,141 | 4,517 | (2,376) | |||||||||||||||||||||||||||||
Income (loss) from discontinued operations | (1,298) | 601 | (1,899) | 2,011 | 384,569 | (382,558) | |||||||||||||||||||||||||||||
Noncontrolling interests’ share in continuing operations | (4,016) | (7,195) | 3,179 | (11,701) | (14,036) | 2,335 | |||||||||||||||||||||||||||||
Noncontrolling interests’ share in discontinued operations | — | — | — | — | (2,539) | 2,539 |
Nine Months Ended September 30, | |||||||||||||||||
2022 | 2021 | Change | |||||||||||||||
Net cash provided by (used in) operating activities | $ | 693,306 | $ | 571,335 | $ | 121,971 | |||||||||||
Net cash provided by (used in) investing activities | (578,113) | 1,203,675 | (1,781,788) | ||||||||||||||
Net cash provided by (used in) financing activities | (165,517) | (1,687,889) | 1,522,372 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Net income (loss) applicable to common shares | $ | 353,366 | $ | 54,442 | $ | 491,398 | $ | 473,778 | |||||||||||||||
Real estate related depreciation and amortization | 173,190 | 177,175 | 531,412 | 506,172 | |||||||||||||||||||
Healthpeak’s share of real estate related depreciation and amortization from unconsolidated joint ventures | 8,704 | 4,722 | 19,049 | 12,044 | |||||||||||||||||||
Noncontrolling interests’ share of real estate related depreciation and amortization | (4,464) | (4,849) | (14,487) | (14,599) | |||||||||||||||||||
Loss (gain) on sales of depreciable real estate, net(1) | 5,280 | (41,393) | (11,408) | (598,531) | |||||||||||||||||||
Healthpeak’s share of loss (gain) on sales of depreciable real estate, net, from unconsolidated joint ventures | 239 | (1,068) | 89 | (6,934) | |||||||||||||||||||
Noncontrolling interests’ share of gain (loss) on sales of depreciable real estate, net | — | 3,450 | 12 | 5,628 | |||||||||||||||||||
Loss (gain) upon change of control, net(2) | (311,438) | — | (311,438) | (1,042) | |||||||||||||||||||
Taxes associated with real estate dispositions | 197 | 483 | 31 | 2,666 | |||||||||||||||||||
Impairments (recoveries) of depreciable real estate, net | — | 1,952 | — | 5,695 | |||||||||||||||||||
Nareit FFO applicable to common shares | 225,074 | 194,914 | 704,658 | 384,877 | |||||||||||||||||||
Distributions on dilutive convertible units and other | 2,352 | 1,651 | 7,055 | — | |||||||||||||||||||
Diluted Nareit FFO applicable to common shares | $ | 227,426 | $ | 196,565 | $ | 711,713 | $ | 384,877 | |||||||||||||||
Weighted average shares outstanding - diluted Nareit FFO | 546,015 | 544,889 | 546,677 | 539,159 | |||||||||||||||||||
Impact of adjustments to Nareit FFO: | |||||||||||||||||||||||
Transaction-related items | $ | 681 | $ | 1,259 | $ | 1,573 | $ | 6,638 | |||||||||||||||
Other impairments (recoveries) and other losses (gains), net(3) | 2,897 | 20,073 | (5,874) | 25,161 | |||||||||||||||||||
Restructuring and severance related charges | — | — | — | 2,463 | |||||||||||||||||||
Loss (gain) on debt extinguishments | — | 667 | — | 225,824 | |||||||||||||||||||
Casualty-related charges (recoveries), net(4) | 4,514 | 558 | 4,103 | 5,203 | |||||||||||||||||||
Total adjustments | $ | 8,092 | $ | 22,557 | $ | (198) | $ | 265,289 | |||||||||||||||
FFO as Adjusted applicable to common shares | $ | 233,166 | $ | 217,471 | $ | 704,460 | $ | 650,166 | |||||||||||||||
Distributions on dilutive convertible units and other | 2,338 | 2,313 | 7,055 | 6,323 | |||||||||||||||||||
Diluted FFO as Adjusted applicable to common shares | $ | 235,504 | $ | 219,784 | $ | 711,515 | $ | 656,489 | |||||||||||||||
Weighted average shares outstanding - diluted FFO as Adjusted | 546,015 | 546,714 | 546,677 | 546,485 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
FFO as Adjusted applicable to common shares | $ | 233,166 | $ | 217,471 | $ | 704,460 | $ | 650,166 | |||||||||||||||
Stock-based compensation amortization expense | 4,614 | 4,436 | 14,635 | 13,895 | |||||||||||||||||||
Amortization of deferred financing costs | 2,691 | 2,343 | 8,069 | 6,677 | |||||||||||||||||||
Straight-line rents | (12,965) | (8,290) | (36,837) | (23,627) | |||||||||||||||||||
AFFO capital expenditures | (24,358) | (28,980) | (75,103) | (72,112) | |||||||||||||||||||
Deferred income taxes | (2,814) | (1,747) | (3,741) | (6,240) | |||||||||||||||||||
Other AFFO adjustments | (7,020) | (5,494) | (20,545) | (15,181) | |||||||||||||||||||
AFFO applicable to common shares | 193,314 | 179,739 | 590,938 | 553,578 | |||||||||||||||||||
Distributions on dilutive convertible units and other | 1,649 | 1,650 | 4,945 | 4,512 | |||||||||||||||||||
Diluted AFFO applicable to common shares | $ | 194,963 | $ | 181,389 | $ | 595,883 | $ | 558,090 | |||||||||||||||
Weighted average shares outstanding - diluted AFFO | 544,190 | 544,889 | 544,852 | 544,660 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Diluted earnings per common share | $ | 0.65 | $ | 0.10 | $ | 0.91 | $ | 0.88 | |||||||||||||||
Depreciation and amortization | 0.33 | 0.33 | 0.98 | 0.93 | |||||||||||||||||||
Loss (gain) on sales of depreciable real estate, net | 0.01 | (0.07) | (0.02) | (1.11) | |||||||||||||||||||
Loss (gain) upon change of control, net(2) | (0.57) | — | (0.57) | 0.00 | |||||||||||||||||||
Taxes associated with real estate dispositions | 0.00 | 0.00 | 0.00 | 0.00 | |||||||||||||||||||
Impairments (recoveries) of depreciable real estate, net | — | 0.00 | — | 0.01 | |||||||||||||||||||
Diluted Nareit FFO per common share | $ | 0.42 | $ | 0.36 | $ | 1.30 | $ | 0.71 | |||||||||||||||
Transaction-related items | 0.00 | 0.00 | 0.00 | 0.01 | |||||||||||||||||||
Other impairments (recoveries) and other losses (gains), net(3) | 0.00 | 0.04 | (0.01) | 0.05 | |||||||||||||||||||
Restructuring and severance related charges | — | — | — | 0.00 | |||||||||||||||||||
Loss (gain) on debt extinguishments | — | 0.00 | — | 0.42 | |||||||||||||||||||
Casualty-related charges (recoveries), net(4) | 0.01 | 0.00 | 0.01 | 0.01 | |||||||||||||||||||
Diluted FFO as Adjusted per common share | $ | 0.43 | $ | 0.40 | $ | 1.30 | $ | 1.20 |
Period Covered | Total Number Of Shares Purchased | Average Price Paid Per Share | Total Number Of Shares Purchased As Part Of Publicly Announced Plans Or Programs(2) | Maximum Number (Or Approximate Dollar Value) Of Shares That May Yet Be Purchased Under The Plans Or Programs(2) | ||||||||||||||||||||||
July 1-31, 2022 | 142 | (1) | $ | 25.91 | — | $ | — | |||||||||||||||||||
August 1-31, 2022 | 2,061,332 | 27.16 | 2,061,332 | 444,018,701 | ||||||||||||||||||||||
September 1-30, 2022 | 30 | (1) | 24.28 | — | — | |||||||||||||||||||||
Total | 2,061,504 | $ | 27.16 | 2,061,332 | $ | 444,018,701 |
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101.INS* | XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. | |||||||
101.SCH* | XBRL Taxonomy Extension Schema Document. | |||||||
101.CAL* | XBRL Taxonomy Extension Calculation Linkbase Document. | |||||||
101.DEF* | XBRL Taxonomy Extension Definition Linkbase Document. | |||||||
101.LAB* | XBRL Taxonomy Extension Labels Linkbase Document. | |||||||
101.PRE* | XBRL Taxonomy Extension Presentation Linkbase Document. | |||||||
104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101). |
Date: November 2, 2022 | Healthpeak Properties, Inc. | ||||
(Registrant) | |||||
/s/ SCOTT M. BRINKER | |||||
Scott M. Brinker | |||||
President and Chief Executive Officer | |||||
(Principal Executive Officer) | |||||
/s/ PETER A. SCOTT | |||||
Peter A. Scott | |||||
Chief Financial Officer | |||||
(Principal Financial Officer) | |||||
/s/ SHAWN G. JOHNSTON | |||||
Shawn G. Johnston | |||||
Executive Vice President and | |||||
Chief Accounting Officer | |||||
(Principal Accounting Officer) |
4 | |||||
Date: November 2, 2022 | /s/ SCOTT M. BRINKER | ||||
Scott M. Brinker | |||||
President and Chief Executive Officer | |||||
(Principal Executive Officer) |
4 | |||||
Date: November 2, 2022 | /s/ PETER A. SCOTT | ||||
Peter A. Scott | |||||
Chief Financial Officer | |||||
(Principal Financial Officer) |
Date: November 2, 2022 | /s/ SCOTT M. BRINKER | ||||
Scott M. Brinker | |||||
President and Chief Executive Officer | |||||
(Principal Executive Officer) |
Date: November 2, 2022 | /s/ PETER A. SCOTT | ||||
Peter A. Scott | |||||
Chief Financial Officer | |||||
(Principal Financial Officer) |
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands |
Sep. 30, 2022 |
Dec. 31, 2021 |
---|---|---|
Balance Sheet Parenthetical Disclosures | ||
Reserves for loans receivable | $ 5,115 | $ 1,813 |
Allowance for accounts receivable | $ 2,521 | $ 1,870 |
Common stock, par value (in dollars per share) | $ 1.00 | $ 1.00 |
Common stock, shares authorized (in shares) | 750,000,000 | 750,000,000 |
Common stock, shares issued (in shares) | 537,533,719 | 539,096,879 |
Common stock, shares outstanding (in shares) | 537,533,719 | 539,096,879 |
CONSOLIDATED STATEMENTS OF EQUITY AND REDEEMABLE NONCONTROLLING INTERESTS (Parenthetical) - $ / shares |
3 Months Ended | 9 Months Ended | ||
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Sep. 30, 2022 |
Sep. 30, 2021 |
Sep. 30, 2022 |
Sep. 30, 2021 |
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Statement of Stockholders' Equity [Abstract] | ||||
Common dividends, per share (in dollars per share) | $ 0.30 | $ 0.30 | $ 0.90 | $ 0.90 |
Business |
9 Months Ended |
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Sep. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Business | Business Overview Healthpeak Properties, Inc., a Standard & Poor’s 500 company, is a Maryland corporation that is organized to qualify as a real estate investment trust (“REIT”) that, together with its consolidated entities (collectively, “Healthpeak” or the “Company”), invests primarily in real estate serving the healthcare industry in the United States (“U.S.”). Healthpeak® acquires, develops, owns, leases, and manages healthcare real estate. The Company’s diverse portfolio is comprised of investments in the following reportable healthcare segments: (i) life science; (ii) medical office; and (iii) continuing care retirement community (“CCRC”). The Company’s corporate headquarters are in Denver, Colorado and it has additional offices in California, Tennessee, and Massachusetts.
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Summary of Significant Accounting Policies |
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Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Basis of Presentation The accompanying unaudited consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information. Management is required to make estimates and assumptions in the preparation of financial statements in conformity with GAAP. These estimates and assumptions affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from management’s estimates. The consolidated financial statements include the accounts of Healthpeak Properties, Inc., its wholly-owned subsidiaries, joint ventures (“JVs”), and variable interest entities (“VIEs”) that it controls through voting rights or other means. Intercompany transactions and balances have been eliminated upon consolidation. All adjustments (consisting of normal recurring adjustments) necessary to present fairly the Company’s financial position, results of operations, and cash flows have been included. Operating results for the three and nine months ended September 30, 2022 are not necessarily indicative of the results that may be expected for the year ending December 31, 2022. The accompanying unaudited interim financial information should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2021 filed with the U.S. Securities and Exchange Commission (“SEC”). Government Grant Income On March 27, 2020, the federal government enacted the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) to provide financial aid to individuals, businesses, and state and local governments. During the three and nine months ended September 30, 2022 and 2021, the Company received government grants under the CARES Act primarily to cover increased expenses and lost revenue during the coronavirus pandemic. Grant income is recognized to the extent that qualifying expenses and lost revenues exceed grants received and the Company will comply with all conditions attached to the grant. As of September 30, 2022, the amount of qualifying expenditures and lost revenue exceeded grant income recognized and the Company believes it has complied and will continue to comply with all grant conditions. In the event of non-compliance, all such amounts received are subject to recapture. The following table summarizes information related to government grant income received and recognized by the Company (in thousands):
Discontinued Operations Senior Housing Triple-Net and Senior Housing Operating Portfolio Dispositions During 2020, the Company established and began executing a plan to dispose of its senior housing triple-net and Senior Housing Operating Property (“SHOP”) properties and concluded that the planned dispositions represented a strategic shift that had and will have a major effect on the Company’s operations and financial results. Therefore, senior housing triple-net and SHOP assets meeting the held for sale criteria are classified as discontinued operations in all periods presented herein. In September 2021, the Company successfully completed the disposition of the remaining senior housing triple-net and SHOP properties. See Note 4 for further information. Recent Accounting Pronouncements Adopted Government Assistance. In November 2021, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2021-10, Government Assistance (Topic 832): Disclosures by Business Entities about Government Assistance (“ASU 2021-10”), which increases the transparency of government assistance including the disclosure of the types of assistance, an entity’s accounting for assistance, and the effect of the assistance on an entity’s financial statements. The adoption of ASU 2021-10 on January 1, 2022 did not have a material impact on the Company’s consolidated financial position, results of operations, cash flows, or disclosures. Not Yet Adopted Reference Rate Reform. In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting (“ASU 2020-04”), which provides optional guidance for a limited period of time to ease the potential burden in accounting for, or recognizing the effects of, reference rate reform on financial reporting. In January 2021, the FASB issued ASU No. 2021-01, Reference Rate Reform (Topic 848): Scope (“ASU 2021-01”), which amends the scope of ASU 2020-04 to include derivative instruments that use an interest rate for margining, discounting, or contract price alignment that is modified as a result of reference rate reform. The amendments in ASU 2020-04 and ASU 2021-01 were effective immediately and may be applied through December 31, 2022. During 2022, the Company elected to apply certain hedge accounting expedients provided by ASU 2020-04 and ASU 2021-01, which preserves the hedging relationship of derivatives. The expedients provided by ASU 2020-04 and ASU 2021-01 and the effects of reference rate reform have not had, and are not expected to have, a material impact on the Company’s consolidated financial position, results of operations, cash flows, or disclosures.
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Real Estate |
9 Months Ended |
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Sep. 30, 2022 | |
Real Estate [Abstract] | |
Real Estate | Real Estate 2022 Real Estate Investment Acquisitions 67 Smith Place In January 2022, the Company closed a life science acquisition in Cambridge, Massachusetts for $72 million. Vista Sorrento Phase II In January 2022, the Company closed a life science acquisition in San Diego, California for $24 million. Webster MOB Portfolio In March 2022, the Company acquired a portfolio of two medical office buildings (“MOBs”) in Houston, Texas for $43 million. Northwest Medical Plaza In May 2022, the Company acquired one MOB in Bentonville, Arkansas for $26 million. 2021 Real Estate Investment Acquisitions In 2021, the Company closed the following life science acquisitions: (i) eight acquisitions in Cambridge, Massachusetts for $498 million, (ii) one acquisition in San Diego, California for $20 million, and (iii) 12 acres of land for $128 million in South San Francisco, California. Also during 2021, the Company closed the following MOB acquisitions: (i) one MOB in Nashville, Tennessee for $13 million, (ii) one MOB in Denver, Colorado for $38 million, (iii) a portfolio of 14 MOBs for $371 million (the “MOB Portfolio”), (iv) one MOB in Fort Lauderdale, Florida for $16 million; (v) one MOB in Wichita, Kansas for $50 million, (vi) three MOBs in Morristown, New Jersey for $155 million, (vii) two MOBs in Dallas, Texas for $60 million, (viii) one MOB in Seattle, Washington for $43 million, (ix) one MOB in New Orleans, Louisiana for $34 million, and (x) one MOB in Cambridge, Massachusetts for $55 million. In conjunction with the acquisition of the MOB Portfolio, the Company originated $142 million of secured mortgage debt. Development Activities The Company’s commitments, which are primarily related to development and redevelopment projects and tenant improvements, decreased by $49 million, to $421 million at September 30, 2022, when compared to December 31, 2021, primarily as a result of construction spend on existing projects in the first three quarters of 2022 thereby decreasing the remaining commitment.
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Dispositions of Real Estate and Discontinued Operations |
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Discontinued Operations and Disposal Groups [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dispositions of Real Estate and Discontinued Operations | Dispositions of Real Estate and Discontinued Operations 2022 Dispositions of Real Estate In January 2022, the Company sold one life science facility in Salt Lake City, Utah for $14 million, resulting in a gain on sale of $4 million. During the three months ended June 30, 2022, the Company sold three MOBs and one MOB land parcel for $27 million, resulting in total gain on sales of $10 million. In July 2022, the Company sold two MOBs for $9 million, resulting in total gain on sales of $1 million. 2021 Dispositions of Real Estate Sunrise Senior Housing Portfolio In January 2021, the Company sold a portfolio of 32 SHOP assets (the “Sunrise Senior Housing Portfolio”) for $664 million, resulting in an immaterial loss on sale, which is recognized in income (loss) from discontinued operations, and provided the buyer with: (i) financing of $410 million (see Note 6) and (ii) a commitment to finance up to $92 million of additional debt for capital expenditures. The commitment to finance additional debt for capital expenditures was subsequently reduced to $56 million in June 2021, $47 million in February 2022, and $40 million in July 2022 (see Note 6). As of September 30, 2022, $0.4 million of the additional financing has been funded. Upon completion of the license transfer process in June 2021, the Company sold the two remaining Sunrise senior housing triple-net assets for $80 million, resulting in a gain on sale of $22 million, which is recognized in income (loss) from discontinued operations. Brookdale Triple-Net Portfolio In January 2021, the Company sold 24 senior housing assets in a triple-net lease with Brookdale Senior Living Inc. for $510 million, resulting in total gain on sale of $169 million, which is recognized in income (loss) from discontinued operations. Additional SHOP Portfolio In January 2021, the Company sold a portfolio of 16 SHOP assets for $230 million, resulting in total gain on sale of $59 million, which is recognized in income (loss) from discontinued operations. The Company provided the buyer with financing of $150 million (see Note 6). HRA Triple-Net Portfolio In February 2021, the Company sold eight senior housing assets in a triple-net lease with Harbor Retirement Associates for $132 million, resulting in total gain on sale of $33 million, which is recognized in income (loss) from discontinued operations. Oakmont SHOP Portfolio In April 2021, the Company sold a portfolio of 12 SHOP assets for $564 million. In conjunction with the sale, mortgage debt held on two properties with a carrying value of $64 million was repaid and the remaining mortgage debt held on four properties with a carrying value of $107 million was assumed by the buyer. The transaction resulted in total gain on sale of $80 million, which is recognized in income (loss) from discontinued operations. Discovery SHOP Portfolio In April 2021, the Company sold a portfolio of 10 SHOP assets for $334 million, resulting in total gain on sale of $9 million, which is recognized in income (loss) from discontinued operations. Also included in this transaction was the sale of two mezzanine loans and two preferred equity investments for $21 million, resulting in no gain or loss on sale of the investments (collectively, the “Discovery SHOP Portfolio”). Sonata SHOP Portfolio In April 2021, the Company sold a portfolio of five SHOP assets for $64 million, resulting in total gain on sale of $3 million, which is recognized in income (loss) from discontinued operations. SLC SHOP Portfolio In May 2021, the Company sold seven SHOP assets for $113 million and repaid $70 million of mortgage debt that was held on six of the assets, resulting in total gain on sale of $1 million, which is recognized in income (loss) from discontinued operations. Hoag Hospital In May 2021, the Company sold one hospital for $226 million through the exercise of a purchase option by a tenant, resulting in gain on sale of $172 million. 2021 Other Dispositions The Company sold the following during the three months ended September 30, 2021: (i) eight SHOP assets for $120 million, (ii) four senior housing triple-net assets for $12 million, and (iii) three MOBs for $36 million, resulting in total gain on sales of $42 million ($27 million of which is recognized in income (loss) from discontinued operations). In conjunction with one of the SHOP asset sales, mortgage debt held on the property with a carrying value of $36 million was assumed by the buyer. In addition to the portfolio and individual sales discussed above, the Company sold the following during the nine months ended September 30, 2021: (i) 15 SHOP assets for $169 million, (ii) 7 senior housing triple-net assets for $24 million, and (iii) 7 MOBs for $57 million, resulting in total gain on sales of $52 million ($34 million of which is recognized in income (loss) from discontinued operations). During the fourth quarter of 2021, the Company sold three MOBs and a portion of one MOB land parcel for $11 million, resulting in total gain on sales of $1 million. Held for Sale and Discontinued Operations During 2020, the Company established and began executing a plan to dispose of its senior housing triple-net and SHOP properties. As of December 31, 2020, the Company concluded that the planned dispositions represented a strategic shift that had and will have a major effect on the Company’s operations and financial results. Therefore, senior housing triple-net and SHOP assets meeting the held for sale criteria are classified as discontinued operations in all periods presented herein. In September 2021, the Company successfully completed the disposition of the remaining senior housing triple-net and SHOP properties. The following summarizes the assets and liabilities classified as held for sale or as discontinued operations at September 30, 2022 and December 31, 2021, which are included in assets held for sale and discontinued operations, net and liabilities related to assets held for sale and discontinued operations, net, respectively, on the Consolidated Balance Sheets (in thousands):
_______________________________________ (1)As of September 30, 2022, included two life science assets primarily comprised of net real estate assets of $43 million. As of December 31, 2021, included four MOBs and one life science facility primarily comprised of net real estate assets of $23 million. The results of discontinued operations during the three and nine months ended September 30, 2022 and 2021, or through the disposal date of each asset or portfolio of assets held within discontinued operations if sold during such periods, as applicable, are presented below (in thousands) and are included in the consolidated results of operations for the three and nine months ended September 30, 2022 and 2021:
Impairments of Real Estate 2022 During the three and nine months ended September 30, 2022, the Company did not recognize any impairment charges. 2021 During the three and nine months ended September 30, 2021, the Company recognized an aggregate impairment charge of $2 million, which is reported in impairments and loan loss reserves (recoveries), net, related to two MOBs classified as held for sale. The Company wrote down the two properties’ aggregate carrying value of $13 million to their aggregate fair value, less estimated costs to sell, of $11 million. Additionally, during the nine months ended September 30, 2021, the Company recognized an impairment charge of $4 million related to one SHOP asset classified as held for sale, which is reported in income (loss) from discontinued operations. Following a reduction in the expected sales price of the asset occurring in the second quarter of 2021, the Company wrote down its carrying value of $20 million to its fair value, less estimated costs to sell, of $16 million. The fair values of the impaired assets were based on the forecasted sales prices, which are considered to be a Level 3 measurement within the fair value hierarchy. The Company’s forecasted sales prices are typically determined using an income approach and/or a market approach (comparable sales model), which rely on certain assumptions by management, including: (i) market capitalization rates, (ii) comparable market transactions, (iii) estimated prices per unit, (iv) negotiations with prospective buyers, and (v) forecasted cash flow streams (lease revenue rates, expense rates, growth rates, etc.). There are inherent uncertainties in making these assumptions. For the Company’s impairment calculations during the three and nine months ended September 30, 2021, the Company’s fair value estimates primarily relied on a market approach and utilized comparable market transactions and negotiations with prospective buyers. Goodwill Impairment When testing goodwill for impairment, if the Company concludes that it is more likely than not that the fair value of a reporting unit is less than its carrying value, the Company recognizes an impairment charge for the amount by which the carrying value, including goodwill, exceeds the reporting unit’s fair value. Following the disposition of the Company’s remaining senior housing triple-net and SHOP assets in September 2021, the Company performed an impairment assessment to evaluate the fair value of its reporting units as of September 30, 2021. During the three months ended September 30, 2021, the Company recognized a $22 million goodwill impairment charge reported in income (loss) from discontinued operations to reduce the associated goodwill balance to zero as no assets remained in the reporting units associated with the senior housing triple-net and SHOP portfolios as of the assessment date. During the nine months ended September 30, 2021, the Company recognized a $29 million goodwill impairment charge reported in income (loss) from discontinued operations, $7 million of which was recognized during the second quarter of 2021, as the fair value of the remaining senior housing triple-net assets (based on forecasted sales prices) was less than the carrying value of the assets, including the related goodwill as of the assessment date. During the three and nine months ended September 30, 2021, the fair value of the assets within each of the Company’s other reporting units was greater than the respective carrying value of the assets and related goodwill, and as a result, no impairment loss was recognized with respect to the other reporting units. These fair value estimates primarily relied on a market approach, utilizing comparable market transactions, forecasted sales prices, and negotiations with prospective buyers. These estimates are considered to be a Level 3 measurement within the fair value hierarchy, and are subject to inherent uncertainties. Other Losses During the first quarter of 2022, the Company recognized $14 million of expenses for tenant relocation and other costs associated with the demolition of an MOB. These expenses are included in other income (expense), net on the Consolidated Statements of Operations for the nine months ended September 30, 2022.
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Leases |
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Leases | Leases Lease Income The following table summarizes the Company’s lease income, excluding discontinued operations (in thousands):
Direct Financing Leases 2022 Direct Financing Lease Sale During the first quarter of 2022, the Company sold its remaining hospital classified as a direct financing lease (“DFL”) for $68 million and recognized a gain on sale of $23 million, which is included in other income (expense), net. Net investment in DFLs consists of the following (in thousands):
Direct Financing Lease Internal Ratings At September 30, 2022, the Company had no properties classified as a DFL. At December 31, 2021, the Company had one hospital classified as a DFL with a carrying amount of $45 million and an internal rating of “performing”.
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Leases | Leases Lease Income The following table summarizes the Company’s lease income, excluding discontinued operations (in thousands):
Direct Financing Leases 2022 Direct Financing Lease Sale During the first quarter of 2022, the Company sold its remaining hospital classified as a direct financing lease (“DFL”) for $68 million and recognized a gain on sale of $23 million, which is included in other income (expense), net. Net investment in DFLs consists of the following (in thousands):
Direct Financing Lease Internal Ratings At September 30, 2022, the Company had no properties classified as a DFL. At December 31, 2021, the Company had one hospital classified as a DFL with a carrying amount of $45 million and an internal rating of “performing”.
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Loans Receivable |
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Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans Receivable | Loans Receivable The following table summarizes the Company’s loans receivable (in thousands):
(1)At September 30, 2022, the Company had $41 million remaining of commitments to fund additional loans for senior housing redevelopment and capital expenditure projects. At December 31, 2021, the Company had $58 million remaining of commitments to fund additional loans for senior housing redevelopment and capital expenditure projects. SHOP Seller Financing In conjunction with the sale of 32 SHOP facilities in the Sunrise Senior Housing Portfolio for $664 million in January 2021 (see Note 4), the Company provided the buyer with initial financing of $410 million. The remainder of the sales price was received in cash at the time of sale. Additionally, the Company agreed to provide up to $92 million of additional financing for capital expenditures (up to 65% of the estimated cost of capital expenditures). The additional financing was subsequently reduced to $56 million in June 2021, $47 million in February 2022, and $40 million in July 2022 in conjunction with the principal repayments discussed below. Through September 30, 2022, $0.4 million of the additional financing had been funded. The initial and additional financing is secured by the buyer's equity ownership in each property. In June 2021, the Company received principal repayments of $246 million on the initial financing provided in conjunction with the sale of the Sunrise Senior Housing Portfolio. In connection with the June 2021 principal repayment, the Company accelerated recognition of $7 million of the related mark-to-market discount, which is included in interest income in the Consolidated Statements of Operations. Additionally, in February 2022 and July 2022, the Company received principal repayments of $8 million and $27 million, respectively, in conjunction with the disposition of the underlying collateral. As of September 30, 2022 and December 31, 2021, this secured loan had an outstanding balance of $130 million and $165 million, respectively. In conjunction with the sale of 16 additional SHOP facilities for $230 million in January 2021 (see Note 4), the Company provided the buyer with financing of $150 million. The remainder of the sales price was received in cash at the time of sale. The financing is secured by the buyer's equity ownership in each property. During the first quarter of 2021, the Company reduced the consideration and reported gain on sales of real estate and recognized a mark-to-market discount of $16 million for certain transactions with seller financing. The Company’s discount is based on the difference between the stated interest rates (ranging from 3.50% to 4.50%) and corresponding prevailing market rates of approximately 5.25% as of the transaction dates. The discount is recognized as interest income over the term of the discounted loans (ranging from to three years) using the effective interest rate method. During the three and nine months ended September 30, 2022, the Company recognized $1 million and $3 million, respectively, of non-cash interest income related to the amortization of its mark-to-market discounts. During the three and nine months ended September 30, 2021, the Company recognized $1 million and $12 million, respectively, of non-cash interest income related to the amortization of its mark-to-market discounts, of which $7 million was recognized during the nine months ended September 30, 2021 as a result of the accelerated recognition discussed above related to the Sunrise Senior Housing Portfolio. 2022 Other Loans Receivable Transactions In May 2022, the Company received full repayment of the outstanding balance of a $2 million secured loan. 2021 Other Loans Receivable Transactions The Company classifies a loan receivable as held for sale when management no longer has the intent or ability to hold the loan receivable for the foreseeable future or until maturity. If a loan receivable is classified as held for sale, previously recorded reserves for loan losses are reversed and the loan is reported at the lower of amortized cost or fair value. During the second quarter of 2021, two loans receivable with a total amortized cost of $64 million were classified as held for sale. Upon the transfer of these two loans to held for sale, the carrying value was decreased by $11 million to an estimated fair value of $53 million, $8 million of which was previously recognized as a reserve for loan losses. As a result, a $3 million net loss was recognized in impairments and loan loss reserves (recoveries), net during the nine months ended September 30, 2021. In September 2021, the Company sold one of the loans receivable previously classified as held for sale for its carrying value of $2 million. In November 2021, the Company sold the other loan receivable previously classified as held for sale for its carrying value of $51 million. These fair value estimates were made for each individual loan classified as held for sale and primarily relied on a market approach, utilizing comparable market transactions, forecasted sales prices, and negotiations with prospective buyers. These estimates are considered to be a Level 3 measurement within the fair value hierarchy, and are subject to inherent uncertainties. Additionally, in April 2021, the Company sold two mezzanine loans as part of the Discovery SHOP Portfolio disposition (see Note 4), resulting in no gain or loss on sale of the mezzanine loans. In May 2021, the Company received a $10 million principal repayment related to one of its secured loans. In September 2021, the Company received repayment of the remaining $15 million balance. In July 2021, the Company received full repayment of the outstanding balance of an $8 million secured loan. CCRC Resident Loans For certain residents that qualify, CCRCs may offer to lend residents the necessary funds to satisfy the entrance fee requirements so that they are able to move into a community while still continuing the process of selling their previous home. The loans are due upon sale of the previous residence. At September 30, 2022 and December 31, 2021, the Company held $29 million and $24 million, respectively, of such notes receivable, which are included in mezzanine and other in the table above. Loans Receivable Internal Ratings In connection with the Company’s quarterly review process or upon the occurrence of a significant event, loans receivable are reviewed and assigned an internal rating of Performing, Watch List, or Workout. Loans that are deemed Performing meet all present contractual obligations, and collection and timing of all amounts owed is reasonably assured. Watch List Loans are defined as loans that do not meet the definition of Performing or Workout. Workout Loans are defined as loans in which the Company has determined, based on current information and events, that: (i) it is probable it will be unable to collect all amounts due according to the contractual terms of the agreement, (ii) the borrower is delinquent on making payments under the contractual terms of the agreement, and (iii) the Company has commenced action or anticipates pursuing action in the near term to seek recovery of its investment. The following table summarizes, by year of origination, the Company’s internal ratings for loans receivable, net of unamortized discounts, fees, and reserves for loan losses, as of September 30, 2022 (in thousands):
Reserve for Loan Losses The Company evaluates the liquidity and creditworthiness of its borrowers on a quarterly basis to determine whether any updates to the future expected losses recognized upon inception are necessary. The Company’s evaluation considers industry and economic conditions, individual and portfolio property performance, credit enhancements, liquidity, and other factors. The determination of loan losses also considers concentration of credit risk associated with the senior housing industry to which its loans receivable relate. The Company’s borrowers furnish property, portfolio, and guarantor/operator-level financial statements, among other information, on a monthly or quarterly basis, which the Company utilizes to calculate the debt service coverages used in its assessment of internal ratings, which is a primary credit quality indicator. Debt service coverage information is evaluated together with other property, portfolio, and operator performance information, including revenue, expense, NOI, occupancy, rental rates, capital expenditures, and EBITDA (defined as earnings before interest, tax, and depreciation and amortization), along with other liquidity measures. In its assessment of current expected credit losses for loans receivable and unfunded loan commitments, the Company utilizes past payment history of its borrowers, current economic conditions, and forecasted economic conditions through the maturity date of each loan to estimate a probability of default and a resulting loss for each loan receivable. Future economic conditions are based primarily on near-term economic forecasts from the Federal Reserve and reasonable assumptions for long-term economic trends. The following table summarizes the Company’s reserve for loan losses (in thousands):
_______________________________________ (1)Includes one loan repaid during the nine months ended September 30, 2022 and six loans sold or repaid during the year ended December 31, 2021. Additionally, at September 30, 2022 and December 31, 2021, a liability of $0.7 million and $0.3 million, respectively, related to expected credit losses for unfunded loan commitments was included in accounts payable, accrued liabilities, and other liabilities.
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Investments in and Advances to Unconsolidated Joint Ventures |
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Equity Method Investments and Joint Ventures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments in and Advances to Unconsolidated Joint Ventures | Investments in and Advances to Unconsolidated Joint Ventures The Company owns interests in the following entities that are accounted for under the equity method, excluding investments classified as discontinued operations (dollars in thousands):
_______________________________________ (1)These entities are not consolidated because the Company does not control, through voting rights or other means, the joint ventures. (2)Property counts and ownership percentages are as of September 30, 2022. (3)Includes seven unconsolidated life science joint ventures in South San Francisco, California in which the Company holds a 70% ownership percentage in each joint venture. These joint ventures have been aggregated herein due to similarity of the investments and operations. See “South San Francisco Joint Ventures” below for further information. (4)In December 2021, the Company acquired a 38% interest in a life science development joint venture in Needham, Massachusetts for $13 million. Land held for development is excluded from the property count as of September 30, 2022. (5)Includes two unconsolidated medical office joint ventures in which the Company holds an ownership percentage as follows: (i) Ventures IV (20%) and (ii) Suburban Properties, LLC (67%). During 2021, the Company also held a 30% interest in Ventures III, which issued its final distribution and was dissolved. These joint ventures have been aggregated herein due to similarity of the investments and operations. In April 2021, the Company sold its two preferred equity investments for their carrying value as part of the Discovery SHOP Portfolio disposition (see Note 4). Prior to the sale, the Company’s ownership percentage in these two unconsolidated joint ventures was as follows: (i) Discovery Naples JV (41%) and (ii) Discovery Sarasota JV (47%). In May 2021, the two remaining CCRCs in the CCRC joint venture were sold for $38 million, $19 million of which represents the Company’s 49% interest, resulting in an immaterial gain on sale recorded within equity income (loss) from unconsolidated joint ventures during the year ended December 31, 2021. South San Francisco Joint Ventures On August 1, 2022, the Company sold a 30% interest in seven life science assets in South San Francisco, California to a sovereign wealth fund (“SWF Partner”) for cash of $126 million. Following this transaction, the Company and the SWF Partner share in key decisions of the assets through their voting rights, resulting in the Company deconsolidating the assets, recognizing its retained 70% investment in the South San Francisco joint ventures (the “South San Francisco JVs”) at fair value, and accounting for its investment using the equity method. The fair values of the Company’s retained investment were based on a market approach, utilizing an agreed-upon contractual sales price, which is considered to be a Level 3 measurement within the fair value hierarchy. The Company recognized a gain upon change of control of $311 million, which is recorded in other income (expense), net. The Company is entitled to a preferred return, a promote, and certain fees in exchange for development and asset management services provided to the South San Francisco JVs when certain conditions are met. Concurrently, the Company entered into a master equity transaction agreement with the SWF Partner that provides the Company the opportunity to sell interests of up to 30% in certain future development projects owned by the Company.
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Intangibles |
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Intangibles [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Intangibles | Intangibles Intangible assets primarily consist of lease-up intangibles and above market tenant lease intangibles. The following table summarizes the Company’s intangible lease assets (dollars in thousands):
(1)Excludes intangible assets reported in assets held for sale and discontinued operations, net of $2 million and zero as of September 30, 2022 and December 31, 2021, respectively. Intangible liabilities consist of below market lease intangibles. The following table summarizes the Company’s intangible lease liabilities (dollars in thousands):
During the nine months ended September 30, 2022, in conjunction with the Company’s acquisitions of real estate, the Company acquired intangible assets of $7 million and intangible liabilities of $6 million. The intangible assets and liabilities acquired had a weighted average amortization period at acquisition of 7 years and 11 years, respectively. During the year ended December 31, 2021, in conjunction with the Company’s acquisitions of real estate, the Company acquired intangible assets of $109 million and intangible liabilities of $57 million. The intangible assets and intangible liabilities acquired each had a weighted average amortization period at acquisition of 9 years.
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Debt |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt | Debt Bank Line of Credit and Term Loan On May 23, 2019, the Company executed a $2.5 billion unsecured revolving line of credit facility, with a maturity date of May 23, 2023 and two six-month extension options, subject to certain customary conditions. Also in May 2019, the Company entered into a $250 million unsecured term loan facility, with a maturity date of May 23, 2024 (the “2019 Term Loan”). In July 2021, the Company repaid the $250 million 2019 Term Loan. In September 2021, the Company executed an amended and restated unsecured revolving line of credit (the “Revolving Facility”) to increase total revolving commitments from $2.5 billion to $3.0 billion and extend the maturity date to January 20, 2026. This maturity date may be further extended pursuant to two six-month extension options, subject to certain customary conditions. Borrowings under the Revolving Facility accrue interest at the London Interbank Offered Rate (“LIBOR”) plus a margin that depends on the credit ratings of the Company’s senior unsecured long-term debt. The Company also pays a facility fee on the entire revolving commitment that depends on its credit ratings. Additionally, the Revolving Facility includes a sustainability-linked pricing component whereby the applicable margin may be reduced by up to 0.025% based on the Company’s achievement of specified sustainability-linked metrics, subject to certain conditions. Based on the Company’s credit ratings at September 30, 2022, and inclusive of achievement of a sustainability-linked metric during the three months ended September 30, 2022, the margin on the Revolving Facility was 0.75% and the facility fee was 0.15%. At September 30, 2022 and December 31, 2021, the Company had no balance outstanding under the Revolving Facility. The Revolving Facility includes a feature that allows the Company to increase the borrowing capacity by an aggregate amount of up to $750 million, subject to securing additional commitments. Further, the Revolving Facility includes customary LIBOR replacement language, including, but not limited to, the use of rates based on the Secured Overnight Financing Rate (“SOFR”) administered by the Federal Reserve Bank of New York. The Revolving Facility also contains certain financial restrictions and other customary requirements, including financial covenants and cross-default provisions to other indebtedness. Among other things, these covenants, using terms defined in the agreement: (i) limit the ratio of Enterprise Total Indebtedness to Enterprise Gross Asset Value to 60%; (ii) limit the ratio of Enterprise Secured Debt to Enterprise Gross Asset Value to 40%; (iii) limit the ratio of Enterprise Unsecured Debt to Enterprise Unencumbered Asset Value to 60%; (iv) require a minimum Fixed Charge Coverage ratio of 1.5 times; and (v) require a minimum Consolidated Tangible Net Worth of $7.7 billion. The Company believes it was in compliance with each of these covenants at September 30, 2022. On August 22, 2022, the Company executed a term loan agreement (the “2022 Term Loan Agreement”) that provides for two senior unsecured delayed draw term loans in an aggregate principal amount of up to $500 million (the “2022 Term Loan Facilities”). The 2022 Term Loan Facilities were available to be drawn from time to time during a 180-day period after closing, subject to customary borrowing conditions. $250 million of the 2022 Term Loan Facilities has an initial stated maturity of 4.5 years, which may be extended for a -year period subject to certain customary conditions. The other $250 million of the 2022 Term Loan Facilities has a stated maturity of 5 years with no option to extend. Loans outstanding under the 2022 Term Loan Facilities accrue interest at adjusted SOFR plus a margin that depends on the credit ratings of the Company’s senior unsecured long-term debt. The 2022 Term Loan Agreement also includes a sustainability-linked pricing component whereby the applicable margin under the 2022 Term Loan Facilities may be reduced by 0.01% based on the Company’s achievement of specified sustainability-linked metrics. Based on the Company’s credit ratings as of September 30, 2022, the margin on the 2022 Term Loan Facilities was 0.85%. Commencing on October 21, 2022, 60 days after closing, the Company became obligated to pay a fee on the daily amount of undrawn commitments under the 2022 Term Loan Facilities at a rate per annum equal to 0.15%. The 2022 Term Loan Agreement includes a feature that allows the Company to increase the borrowing capacity by an aggregate amount of up to an additional $500 million, subject to securing additional commitments. The 2022 Term Loan Agreement also contains certain financial restrictions and other customary requirements, including financial covenants and cross-default provisions to other indebtedness. Among other things, these covenants, using terms defined in the agreement: (i) limit the ratio of Enterprise Total Indebtedness to Enterprise Gross Asset Value to 60%; (ii) limit the ratio of Enterprise Secured Debt to Enterprise Gross Asset Value to 40%; (iii) limit the ratio of Enterprise Unsecured Debt to Enterprise Unencumbered Asset Value to 60%; (iv) require a minimum Fixed Charge Coverage ratio of 1.5 times; and (v) require a minimum Consolidated Tangible Net Worth of $7.7 billion. The Company believes it was in compliance with each of these covenants at September 30, 2022. As of September 30, 2022, the Company had no borrowings outstanding under the 2022 Term Loan Facilities. In October 2022, the entirety of the $500 million under the 2022 Term Loan Facilities was drawn. In August 2022, the Company entered into two forward-starting interest rate swap instruments that are designated as cash flow hedges (see Note 17). The 2022 Term Loan Facilities associated with these interest rate swap instruments will be reported as fixed rate debt due to the Company having effectively established a fixed interest rate for the underlying debt instruments. As of October 31, 2022, the 2022 Term Loan Facilities had a fixed effective interest rate of 3.76%, inclusive of the impact of these interest rate swap instruments and amortization of the related debt issuance costs. Commercial Paper Program In September 2019, the Company established an unsecured commercial paper program (the “Commercial Paper Program”). Under the terms of the Commercial Paper Program, the Company may issue, from time to time, unsecured short-term debt securities with varying maturities. Amounts available under the Commercial Paper Program may be borrowed, repaid, and re-borrowed from time to time. At December 31, 2021, the maximum aggregate face or principal amount that could be outstanding at any one time was $1.5 billion. In July 2022, the Company increased the maximum aggregate face or principal amount that can be outstanding at any one time to $2.0 billion. Amounts borrowed under the Commercial Paper Program will be sold on terms that are customary for the U.S. commercial paper market and will be at least equal in right of payment with all of the Company’s other unsecured and unsubordinated indebtedness. The Company uses its Revolving Facility as a liquidity backstop for the repayment of unsecured short-term debt securities issued under the Commercial Paper Program. At September 30, 2022, the Company had $1.59 billion of securities outstanding under the Commercial Paper Program, with original maturities of approximately 42 days and a weighted average interest rate of 3.41%. At December 31, 2021, the Company had $1.17 billion of securities outstanding under the Commercial Paper Program, with original maturities of approximately two months and a weighted average interest rate of 0.32%. Senior Unsecured Notes At each of September 30, 2022 and December 31, 2021, the Company had senior unsecured notes outstanding with an aggregate principal balance of $4.7 billion. The senior unsecured notes contain certain covenants including limitations on debt, maintenance of unencumbered assets, cross-acceleration provisions and other customary terms. The Company believes it was in compliance with these covenants at September 30, 2022. During the three and nine months ended September 30, 2022, the Company did not issue, repurchase, or redeem any senior unsecured notes. The following table summarizes the Company’s senior unsecured notes repurchases and redemptions during the year ended December 31, 2021 (dollars in thousands):
_______________________________________ (1)As a result of the repurchases and redemptions of these senior unsecured notes, the Company recognized an aggregate $225 million loss on debt extinguishment during the nine months ended September 30, 2021. In 2021, the Company completed two green bond offerings. The net proceeds from both green bonds have been allocated to eligible green projects, and the Company may choose to re-allocate net proceeds from such offerings to one or more other eligible green projects. The following table summarizes these senior unsecured note issuances for the year ended December 31, 2021 (dollars in thousands):
Mortgage Debt At September 30, 2022 and December 31, 2021, the Company had $347 million and $350 million, respectively, in aggregate principal of mortgage debt outstanding, which was secured by 18 healthcare facilities, with an aggregate carrying value of $796 million and $811 million, respectively. Mortgage debt generally requires monthly principal and interest payments, is collateralized by real estate assets, and is non-recourse. Mortgage debt typically restricts transfer of the encumbered assets, prohibits additional liens, restricts prepayment, requires payment of real estate taxes, requires maintenance of the assets in good condition, requires insurance on the assets, and includes conditions to obtain lender consent to enter into or terminate material leases. Some of the mortgage debt may require tenants or operators to maintain compliance with the applicable leases or operating agreements of such real estate assets. During each of the three months ended September 30, 2022 and 2021, the Company made aggregate principal repayments of mortgage debt of $1 million (excluding mortgage debt on assets held for sale and discontinued operations). During each of the nine months ended September 30, 2022 and 2021, the Company made aggregate principal repayments of mortgage debt of $4 million (excluding mortgage debt on assets held for sale and discontinued operations). In April 2021, in conjunction with the acquisition of the MOB Portfolio, the Company originated $142 million of secured mortgage debt (see Note 3) that matures in May 2026. In April 2022, the Company terminated its existing interest rate cap instruments associated with this variable rate mortgage debt and entered into two interest rate swap instruments that are designated as cash flow hedges and mature in May 2026 (see Note 17). The variable rate mortgage debt associated with these interest rate swap instruments is reported as fixed rate debt due to the Company having effectively established a fixed interest rate for the underlying debt instrument. Debt Maturities The following table summarizes the Company’s stated debt maturities and scheduled principal repayments at September 30, 2022 (dollars in thousands):
_______________________________________ (1)Commercial Paper Program borrowings are backstopped by the Revolving Facility. As such, the Company calculates the weighted average remaining term of its Commercial Paper Program borrowings using the maturity date of the Revolving Facility. (2)Effective interest rates on the senior unsecured notes range from 1.54% to 6.91% with a weighted average effective interest rate of 3.39% and a weighted average maturity of 6 years. (3)Effective interest rates on the mortgage debt range from 3.57% to 6.70% with a weighted average effective interest rate of 4.35% and a weighted average maturity of 3 years. These interest rates include the impact of designated interest rate swap instruments, which effectively fix the interest rate on certain variable rate debt.
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Commitments and Contingencies |
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Sep. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Legal Proceedings From time to time, the Company is a party to legal proceedings, lawsuits and other claims that arise in the ordinary course of the Company’s business. The Company is not aware of any legal proceedings or claims that it believes may have, individually or taken together, a material adverse effect on the Company’s financial condition, results of operations, or cash flows. The Company’s policy is to expense legal costs as they are incurred. DownREITs and Other Partnerships In connection with the formation of certain limited liability companies (“DownREITs”), members may contribute appreciated real estate to a DownREIT in exchange for DownREIT units. These contributions are generally tax-deferred, so that the pre-contribution gain related to the property is not taxed to the member. However, if a contributed property is later sold by the DownREIT, the unamortized pre-contribution gain that exists at the date of sale is specifically allocated and taxed to the contributing members. In many of the DownREITs, the Company has entered into indemnification agreements with those members who contributed appreciated property into the DownREIT. Under these indemnification agreements, if any of the appreciated real estate contributed by the members is sold by the DownREIT in a taxable transaction within a specified number of years, the Company will reimburse the affected members for the federal and state income taxes associated with the pre-contribution gain that is specially allocated to the affected member under the Internal Revenue Code (“make-whole payments”). These make-whole payments include a tax gross-up provision. These indemnification agreements have expirations terms that range through 2039 on a total of 29 properties. Additionally, the Company owns a 49% interest in the Life Science JV (see Note 7). If the property in the joint venture is sold in a taxable transaction, the Company is generally obligated to indemnify its joint venture partner for its federal and state income taxes associated with the gain that existed at the time of the contribution to the joint venture.
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Equity and Redeemable Noncontrolling Interests |
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Equity [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity and Redeemable Noncontrolling Interests | Equity and Redeemable Noncontrolling Interests Dividends On October 27, 2022, the Company announced that its Board of Directors declared a quarterly cash dividend of $0.30 per share. The common stock cash dividend will be paid on November 18, 2022 to stockholders of record as of the close of business on November 7, 2022. During each of the three months ended September 30, 2022 and 2021, the Company declared and paid common stock cash dividends of $0.30 per share. During each of the nine months ended September 30, 2022 and 2021, the Company declared and paid common stock cash dividends of $0.90 per share. At-The-Market Equity Offering Program In February 2020, the Company established an at-the-market equity offering program (as amended from time to time, the “ATM Program”), which was most recently amended in May 2021 to increase the size of the program from $1.25 billion to $1.5 billion, pursuant to which shares of common stock having an aggregate gross sales price of up to $1.5 billion may be sold (i) by the Company through a consortium of banks acting as sales agents or directly to the banks acting as principals or (ii) by a consortium of banks acting as forward sellers on behalf of any forward purchasers pursuant to a forward sale agreement (each, an “ATM forward contract”). The use of ATM forward contracts allows the Company to lock in a share price on the sale of shares at the time the ATM forward contract is effective, but defer receiving the proceeds from the sale of shares until a later date. ATM forward contracts generally have a to two year term. At any time during the term, the Company may settle a forward sale by delivery of physical shares of common stock to the forward seller or, at the Company’s election, in cash or net shares. The forward sale price the Company expects to receive upon settlement of outstanding ATM forward contracts will be the initial forward price established upon the effective date, subject to adjustments for: (i) accrued interest, (ii) the forward purchasers’ stock borrowing costs, and (iii) certain fixed price reductions during the term of the ATM forward contract. At September 30, 2022, $1.18 billion of the Company’s common stock remained available for sale under the ATM Program. ATM Forward Contracts During the three and nine months ended September 30, 2021, the Company utilized the forward provisions under the ATM Program to allow for the sale of an aggregate of 9.1 million shares of its common stock at an initial weighted average net price of $35.25 per share, after commissions. The Company did not utilize the forward provisions under the ATM program during the three and nine months ended September 30, 2022. During the three and nine months ended September 30, 2022 and 2021, no shares were settled under ATM forward contracts. Therefore, at September 30, 2022 and 2021, 9.1 million shares remained outstanding under ATM forward contracts. These ATM forward contracts mature in the first quarter of 2023. ATM Direct Issuances During the three and nine months ended September 30, 2022 and September 30, 2021, there were no direct issuances of shares of common stock under the ATM Program. Share Repurchase Program On August 1, 2022, the Company’s Board of Directors approved a share repurchase program under which the Company may acquire shares of its common stock in the open market up to an aggregate purchase price of $500 million (the “Share Repurchase Program”). Purchases of common stock under the Share Repurchase Program may be exercised at the Company’s discretion with the timing and number of shares repurchased depending on a variety of factors, including price, corporate and regulatory requirements, and other corporate liquidity requirements and priorities. The Share Repurchase Program expires in August 2024 and may be suspended or terminated at any time without prior notice. During the three and nine months ended September 30, 2022, the Company repurchased 2.1 million shares of its common stock at a weighted average price of $27.16 per share for a total of $56 million. Therefore, at September 30, 2022, $444 million of the Company’s common stock remained available for repurchase under the Share Repurchase Program. Accumulated Other Comprehensive Income (Loss) The following table summarizes the Company’s accumulated other comprehensive income (loss) (in thousands):
Redeemable Noncontrolling Interests Arrangements with noncontrolling interest holders are assessed for appropriate balance sheet classification based on the redemption and other rights held by the noncontrolling interest holder. Certain of the Company’s noncontrolling interest holders have the ability to put their equity interests to the Company upon specified events or after the passage of a predetermined period of time. Each put option is payable in cash and subject to increases in redemption value in the event that the underlying property generates specified returns for the Company and meets certain promote thresholds pursuant to the respective agreements. Accordingly, the Company records redeemable noncontrolling interests outside of permanent equity and presents the redeemable noncontrolling interests at the greater of their carrying amount or redemption value at the end of each reporting period. During the year ended December 31, 2021, one of the redeemable noncontrolling interests met the conditions for redemption and the related put option was exercised during the year then ended. Accordingly, the Company made a cash payment for the redemption value of $60 million to the related noncontrolling interest holder during the year ended December 31, 2021 and acquired the redeemable noncontrolling interest associated with this entity. The remaining redeemable noncontrolling interests had not yet met the conditions for redemption as of September 30, 2022 or December 31, 2021. Three of the interests will become redeemable following the passage of a predetermined amount of time, one of which will occur in the fourth quarter of 2022, and the remaining two in 2023 and 2024. The fourth interest will become redeemable at the earlier of a predetermined passage of time or stabilization of the underlying development property, which is expected to occur in 2023. The redemption values are subject to change based on the assessment of redemption value at each redemption date.
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Earnings Per Common Share |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Common Share | Earnings Per Common Share Basic income (loss) per common share (“EPS”) is computed based on the weighted average number of common shares outstanding. Diluted income (loss) per common share is computed based on the weighted average number of common shares outstanding plus the impact of forward equity sales agreements using the treasury stock method and common shares issuable from the assumed conversion of DownREIT units, stock options, certain performance restricted stock units, and unvested restricted stock units. Only those instruments having a dilutive impact on the Company’s basic income (loss) per share are included in diluted income (loss) per share during the periods presented. Restricted stock and certain performance restricted stock units are considered participating securities, because dividend payments are not forfeited even if the underlying award does not vest, and require use of the two-class method when computing basic and diluted earnings per share. Refer to Note 11 for a discussion of the sale of shares under and settlement of forward sales agreements during the periods presented. The Company considered the potential dilution resulting from the forward agreements to the calculation of earnings per share. At inception, the agreements do not have an effect on the computation of basic EPS as no shares are delivered until settlement. However, the Company uses the treasury stock method to calculate the dilution, if any, resulting from the forward sales agreements during the period of time prior to settlement. The aggregate effect on the Company’s diluted weighted-average common shares for each of the three and nine months ended September 30, 2022 and 2021 was zero weighted-average incremental shares from the forward equity sales agreements. The following table illustrates the computation of basic and diluted earnings per share (in thousands, except per share amounts):
_______________________________________ (1)For all periods presented, represents the dilutive impact of 1 million outstanding equity awards (restricted stock units and stock options). For all periods presented in the table above, the 9.1 million shares under forward sales agreements that have not been settled as of September 30, 2022 and 2021 were anti-dilutive. For the three and nine months ended September 30, 2022, 7 million and 5 million shares issuable upon conversion of DownREIT units, respectively, were dilutive and are presented as diluted potential common shares in the table above. For the three and nine months ended September 30, 2021, all 7 million shares issuable upon conversion of DownREIT units were not included because they were anti-dilutive.
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Segment Disclosures |
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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”), loans receivable, and marketable debt securities. 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 are non-GAAP supplemental measures that are calculated as NOI and Adjusted NOI from consolidated properties, plus the Company’s share of NOI and Adjusted NOI from unconsolidated joint ventures (calculated by applying the Company’s actual ownership percentage for the period), less noncontrolling interests’ share of NOI and Adjusted NOI from consolidated joint ventures (calculated by applying the Company’s actual ownership percentage for the period). Management utilizes its share of NOI and Adjusted NOI in assessing its performance as the Company has various joint ventures that contribute to its performance. The Company does not control its unconsolidated joint ventures, and the Company’s share of amounts from unconsolidated joint ventures do not represent the Company’s legal claim to such items. The Company’s share of NOI and Adjusted NOI should not be considered a substitute for, and should only be considered together with and as a supplement to, the Company’s financial information presented in accordance with GAAP. 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, 2022:
______________________________________________________________________________ (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, 2021:
______________________________________________________________________________ (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, 2022:
______________________________________________________________________________ (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, 2021:
(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, 5, and 7 for significant transactions impacting the Company’s segment assets during the periods presented.
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Supplemental Cash Flow Information |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Supplemental Cash Flow Elements [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Supplemental Cash Flow Information | Supplemental Cash Flow Information The following table provides supplemental cash flow information (in thousands):
The following table summarizes certain cash flow information related to assets classified as discontinued operations (in thousands):
The following table summarizes cash, cash equivalents and restricted cash (in thousands):
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Variable Interest Entities |
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Variable Interest Entities [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Variable Interest Entities | Variable Interest Entities Unconsolidated Variable Interest Entities At September 30, 2022 and December 31, 2021, the Company had investments in: (i) two unconsolidated VIE joint ventures and (ii) marketable debt securities of one VIE. The Company determined it is not the primary beneficiary of and therefore does not consolidate these VIEs because it does not have the ability to control the activities that most significantly impact their economic performance. Except for the Company’s equity interest in the unconsolidated joint ventures (the LLC investment and Needham Land Parcel JV discussed below), it has no formal involvement in these VIEs beyond its investments. Debt Securities Investment. The Company holds commercial mortgage-backed securities (“CMBS”) issued by Federal Home Loan Mortgage Corporation (commonly referred to as Freddie MAC) through a special purpose entity that has been identified as a VIE because it is “thinly capitalized.” The CMBS issued by the VIE are backed by mortgage debt obligations on real estate assets. These securities are classified as held-to-maturity because the Company has the intent and ability to hold the securities until maturity. LLC Investment. The Company holds a limited partner ownership interest in an unconsolidated LLC that has been identified as a VIE. The Company’s involvement in the entity is limited to its equity investment as a limited partner and it does not have any substantive participating rights or kick-out rights over the general partner. The assets and liabilities of the entity primarily consist of those associated with its senior housing real estate. Any assets generated by the entity may only be used to settle its contractual obligations (primarily capital expenditures and debt service payments). Needham Land Parcel JV. In December 2021, the Company acquired a 38% interest in a life science development joint venture in Needham, Massachusetts for $13 million. Current equity at risk is not sufficient to finance the joint venture’s activities. The assets and liabilities of the entity primarily consist of real estate and debt service obligations. Any assets generated by the entity may only be used to settle its contractual obligations (primarily development costs and debt service payments). The classification of the related assets and liabilities and the maximum loss exposure as a result of the Company’s involvement with these VIEs at September 30, 2022 was as follows (in thousands):
_______________________________________ (1)The Company’s maximum loss exposure represents the aggregate carrying amount of such investments (including accrued interest). As of September 30, 2022, the Company had not provided, and is not required to provide, financial support through a liquidity arrangement or otherwise, to its unconsolidated VIEs, including under circumstances in which it could be exposed to further losses (e.g., cash shortfalls). See Notes 3, 4, and 7 for additional descriptions of the nature, purpose, and operating activities of the Company’s unconsolidated VIEs and interests therein. Consolidated Variable Interest Entities The Company’s consolidated total assets and total liabilities at September 30, 2022 and December 31, 2021 include certain assets of VIEs that can only be used to settle the liabilities of the related VIE. The VIE creditors do not have recourse to the Company. Ventures V, LLC. The Company holds a 51% ownership interest in and is the managing member of a joint venture entity formed in October 2015 that owns and leases MOBs (“Ventures V”). The Company classifies Ventures V as a VIE due to the non-managing member lacking substantive participation rights in the management of Ventures V or kick-out rights over the managing member. The Company consolidates Ventures V as the primary beneficiary because it has the ability to control the activities that most significantly impact the VIE’s economic performance. The assets of Ventures V primarily consist of leased properties (net real estate), rents receivable, and cash and cash equivalents; its obligations primarily consist of capital expenditures for the properties. Assets generated by Ventures V may only be used to settle its contractual obligations (primarily from capital expenditures). Life Science JVs. The Company holds a 99% ownership interest in multiple joint venture entities that own and lease life science assets (the “Life Science JVs”). The Life Science JVs are VIEs as the members share in certain decisions of the entities, but substantially all of the activities are performed on behalf of the Company. The Company consolidates the Life Science JVs as the primary beneficiary because it has the ability to control the activities that most significantly impact these VIEs’ economic performance. The assets of the Life Science JVs primarily consist of leased properties (net real estate), rents receivable, and cash and cash equivalents; their obligations primarily consist of debt service payments and capital expenditures for the properties. Assets generated by the Life Science JVs may only be used to settle their contractual obligations (primarily from capital expenditures). Refer to Note 11 for a discussion of certain put options associated with the Life Science JVs. MSREI MOB JV. The Company holds a 51% ownership interest in, and is the managing member of, a joint venture entity formed in August 2018 that owns and leases MOBs (the “MSREI JV”). The MSREI JV is a VIE due to the non-managing member lacking substantive participation rights in the management of the joint venture or kick-out rights over the managing member. The Company consolidates the MSREI JV as the primary beneficiary because it has the ability to control the activities that most significantly impact the VIE’s economic performance. The assets of the MSREI JV primarily consist of leased properties (net real estate), rents receivable, and cash and cash equivalents; its obligations primarily consist of capital expenditures for the properties. Assets generated by the MSREI JV may only be used to settle its contractual obligations (primarily from capital expenditures). DownREITs. The Company holds a controlling ownership interest in and is the managing member of seven DownREITs. The Company classifies the DownREITs as VIEs due to the non-managing members lacking substantive participation rights in the management of the DownREITs or kick-out rights over the managing member. The Company consolidates the DownREITs as the primary beneficiary because it has the ability to control the activities that most significantly impact these VIEs’ economic performance. The assets of the DownREITs primarily consist of leased properties (net real estate), rents receivable, and cash and cash equivalents; their obligations primarily consist of debt service payments and capital expenditures for the properties. Assets generated by the DownREITs (primarily from resident rents) may only be used to settle their contractual obligations (primarily from debt service and capital expenditures). Other Consolidated Real Estate Partnerships. The Company holds a controlling ownership interest in and is the general partner (or managing member) of multiple partnerships that own and lease real estate assets (the “Partnerships”). The Company classifies the Partnerships as VIEs due to the limited partners (non-managing members) lacking substantive participation rights in the management of the Partnerships or kick-out rights over the general partner (managing member). The Company consolidates the Partnerships as the primary beneficiary because it has the ability to control the activities that most significantly impact these VIEs’ economic performance. The assets of the Partnerships primarily consist of leased properties (net real estate), rents receivable, and cash and cash equivalents; their obligations primarily consist of debt service payments and capital expenditures for the properties. Assets generated by the Partnerships (primarily from resident rents) may only be used to settle their contractual obligations (primarily from debt service and capital expenditures). Exchange Accommodation Titleholder. During the three months ended June 30, 2022, the Company acquired one MOB using a reverse like-kind exchange structure pursuant to Section 1031 of the Internal Revenue Code (a “reverse 1031 exchange”). Additionally, during the three months ended March 31, 2022, the Company acquired two MOBs using a reverse 1031 exchange. As of September 30, 2022, the acquired properties were no longer identified as a reverse 1031 exchange and were therefore released from possession of the Exchange Accommodation Titleholder (“EAT”). During the year ended December 31, 2021, the Company acquired two MOBs using reverse 1031 exchanges. As of December 31, 2021, the Company had not completed the reverse 1031 exchanges and as such, the acquired properties remained in the possession of the EAT. The EAT was classified as a VIE as it was a “thinly capitalized” entity. The Company consolidated the EAT because it had the ability to control the activities that most significantly impacted the economic performance of the EAT and was, therefore, the primary beneficiary of the EAT. These properties held by the EAT had a carrying value of $77 million as of December 31, 2021. The assets of the EAT primarily consisted of leased properties (net real estate, including intangibles) and rents receivable; their obligations primarily consisted of capital expenditures for the properties. Assets generated by the EAT may only be used to settle its contractual obligations (primarily from capital expenditures). These reverse 1031 exchanges were completed in February 2022. Total assets and total liabilities include VIE assets and liabilities as follows (in thousands):
Total assets and liabilities related to assets held for sale and discontinued operations include VIE assets and liabilities as follows (in thousands):
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Fair Value Measurements |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements | Fair Value Measurements Financial assets and liabilities measured at fair value on a recurring basis in the Consolidated Balance Sheets were immaterial at September 30, 2022 and December 31, 2021. The table below summarizes the carrying amounts and fair values of the Company’s financial instruments (in thousands):
(1)Level 1: Fair value calculated based on quoted prices in active markets. (2)Level 2: Fair value based on (i) for marketable debt securities, quoted prices for similar or identical instruments in active or inactive markets, respectively, or (ii) for loans receivable, net, mortgage debt, interest rate swap instruments, and interest rate cap instruments, standardized pricing models in which significant inputs or value drivers are observable in active markets. For bank line of credit and commercial paper, the carrying values are a reasonable estimate of fair value because the borrowings are primarily based on market interest rates and the Company’s credit rating. (3)During the nine months ended September 30, 2022 and year ended December 31, 2021, there were no material transfers of financial assets or liabilities within the fair value hierarchy.
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Derivative Financial Instruments |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Financial Instruments | Derivative Financial Instruments The Company uses derivative instruments to mitigate the effects of interest rate fluctuations on specific forecasted transactions as well as recognized financial obligations or assets. Utilizing derivative instruments allows the Company to manage the risk of fluctuations in interest rates and their related potential impact on future earnings and cash flows. The Company does not use derivative instruments for speculative or trading purposes. At September 30, 2022, a one percentage point increase or decrease in the underlying interest rate curve would result in a corresponding increase or decrease in the fair value of the derivative instruments by approximately $24 million. In March 2021, the Company repaid $39 million of variable rate secured debt on two SHOP assets and terminated the two associated interest rate swap instruments. Therefore, at December 31, 2021, the Company had no interest rate swap instruments. In April 2021, the Company executed two interest rate cap instruments on its $142 million of variable rate mortgage debt issued in conjunction with the acquisition of the MOB Portfolio (see Note 3). In April 2022, the Company terminated these interest rate cap instruments and entered into two interest rate swap instruments that are designated as cash flow hedges and mature in May 2026. In August 2022, the Company entered into two forward-starting interest rate swap instruments on the $500 million aggregate principal amount of the 2022 Term Loan Facilities (see Note 9). The forward-starting interest rate swap instruments are designated as cash flow hedges. The following table summarizes the Company’s interest rate swap instruments as of September 30, 2022 (in thousands):
_____________________________ (1)At September 30, 2022, the interest rate swap instruments were in an asset position. Derivative assets are recorded in other assets, net on the Consolidated Balance Sheets. (2)Represents interest rate swap instruments that hedge fluctuations in interest payments on variable rate debt by converting the interest rates to fixed interest rates. The changes in fair value of designated derivatives that qualify as cash flow hedges are recorded in accumulated other comprehensive income (loss) on the Consolidated Balance Sheets. The following table summarizes the Company’s interest rate cap instruments as of September 30, 2022 (in thousands):
_____________________________ (1)At December 31, 2021, the interest rate cap instruments were in an asset position. Derivative assets are recorded in other assets, net on the Consolidated Balance Sheets. (2)Represents two interest rate cap instruments that manage the Company’s exposure to variable cash flows on certain mortgage debt borrowings by limiting interest rates. These interest rate cap instruments were terminated in April 2022. During the three and nine months ended September 30, 2022, the Company recognized a zero and $2 million increase, respectively, in the fair value of the interest rate cap instruments within other income (expense), net.
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Accounts Payable, Accrued Liabilities, and Other Liabilities |
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Accounts Payable, Accrued Liabilities, and Other Liabilities | Accounts Payable, Accrued Liabilities, and Other Liabilities The following table summarizes the Company’s accounts payable, accrued liabilities, and other liabilities, excluding accounts payable, accrued liabilities, and other liabilities related to assets classified as discontinued operations (in thousands):
_______________________________________ (1)At September 30, 2022 and December 31, 2021, unamortized nonrefundable entrance fee liabilities were $512 million and $496 million, respectively, which are recorded within deferred revenue on the Consolidated Balance Sheets. During the three and nine months ended September 30, 2022, the Company collected nonrefundable entrance fees of $24 million and $74 million, respectively, and recognized amortization of $20 million and $58 million, respectively. During the three and nine months ended September 30, 2021, the Company collected nonrefundable entrance fees of $25 million and $63 million, respectively, and recognized amortization of $19 million and $57 million, respectively. The amortization of nonrefundable entrance fees is included within resident fees and services on the Consolidated Statements of Operations. Departure of Executives On October 6, 2022, the Company and Thomas M. Herzog mutually agreed that Mr. Herzog would step down from his position as Chief Executive Officer and from the board of directors of the Company, effective immediately. On November 1, 2022, the Company and Troy E. McHenry mutually agreed that Mr. McHenry would step down from his position as Chief Legal Officer and General Counsel, effective immediately. In connection with these departures and the related release agreements, the Company expects to recognize total severance-related charges of approximately $30 million in the fourth quarter of 2022.
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Summary of Significant Accounting Policies (Policies) |
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Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information. Management is required to make estimates and assumptions in the preparation of financial statements in conformity with GAAP. These estimates and assumptions affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from management’s estimates. The consolidated financial statements include the accounts of Healthpeak Properties, Inc., its wholly-owned subsidiaries, joint ventures (“JVs”), and variable interest entities (“VIEs”) that it controls through voting rights or other means. Intercompany transactions and balances have been eliminated upon consolidation. All adjustments (consisting of normal recurring adjustments) necessary to present fairly the Company’s financial position, results of operations, and cash flows have been included. Operating results for the three and nine months ended September 30, 2022 are not necessarily indicative of the results that may be expected for the year ending December 31, 2022. The accompanying unaudited interim financial information should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2021 filed with the U.S. Securities and Exchange Commission (“SEC”).
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Government Grant Income | Government Grant Income On March 27, 2020, the federal government enacted the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) to provide financial aid to individuals, businesses, and state and local governments. During the three and nine months ended September 30, 2022 and 2021, the Company received government grants under the CARES Act primarily to cover increased expenses and lost revenue during the coronavirus pandemic. Grant income is recognized to the extent that qualifying expenses and lost revenues exceed grants received and the Company will comply with all conditions attached to the grant. As of September 30, 2022, the amount of qualifying expenditures and lost revenue exceeded grant income recognized and the Company believes it has complied and will continue to comply with all grant conditions. In the event of non-compliance, all such amounts received are subject to recapture.
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Discontinued Operations | Discontinued Operations Senior Housing Triple-Net and Senior Housing Operating Portfolio Dispositions During 2020, the Company established and began executing a plan to dispose of its senior housing triple-net and Senior Housing Operating Property (“SHOP”) properties and concluded that the planned dispositions represented a strategic shift that had and will have a major effect on the Company’s operations and financial results. Therefore, senior housing triple-net and SHOP assets meeting the held for sale criteria are classified as discontinued operations in all periods presented herein. In September 2021, the Company successfully completed the disposition of the remaining senior housing triple-net and SHOP properties. See Note 4 for further information.
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Recent Accounting Pronouncements | Recent Accounting Pronouncements Adopted Government Assistance. In November 2021, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2021-10, Government Assistance (Topic 832): Disclosures by Business Entities about Government Assistance (“ASU 2021-10”), which increases the transparency of government assistance including the disclosure of the types of assistance, an entity’s accounting for assistance, and the effect of the assistance on an entity’s financial statements. The adoption of ASU 2021-10 on January 1, 2022 did not have a material impact on the Company’s consolidated financial position, results of operations, cash flows, or disclosures. Not Yet Adopted Reference Rate Reform. In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting (“ASU 2020-04”), which provides optional guidance for a limited period of time to ease the potential burden in accounting for, or recognizing the effects of, reference rate reform on financial reporting. In January 2021, the FASB issued ASU No. 2021-01, Reference Rate Reform (Topic 848): Scope (“ASU 2021-01”), which amends the scope of ASU 2020-04 to include derivative instruments that use an interest rate for margining, discounting, or contract price alignment that is modified as a result of reference rate reform. The amendments in ASU 2020-04 and ASU 2021-01 were effective immediately and may be applied through December 31, 2022. During 2022, the Company elected to apply certain hedge accounting expedients provided by ASU 2020-04 and ASU 2021-01, which preserves the hedging relationship of derivatives. The expedients provided by ASU 2020-04 and ASU 2021-01 and the effects of reference rate reform have not had, and are not expected to have, a material impact on the Company’s consolidated financial position, results of operations, cash flows, or disclosures.
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Summary of Significant Accounting Policies (Tables) |
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Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Government Grant Receivables, CARES Act | The following table summarizes information related to government grant income received and recognized by the Company (in thousands):
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Dispositions of Real Estate and Discontinued Operations (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Discontinued Operations and Disposal Groups [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Assets and Liabilities | The following summarizes the assets and liabilities classified as held for sale or as discontinued operations at September 30, 2022 and December 31, 2021, which are included in assets held for sale and discontinued operations, net and liabilities related to assets held for sale and discontinued operations, net, respectively, on the Consolidated Balance Sheets (in thousands):
_______________________________________ (1)As of September 30, 2022, included two life science assets primarily comprised of net real estate assets of $43 million. As of December 31, 2021, included four MOBs and one life science facility primarily comprised of net real estate assets of $23 million. The results of discontinued operations during the three and nine months ended September 30, 2022 and 2021, or through the disposal date of each asset or portfolio of assets held within discontinued operations if sold during such periods, as applicable, are presented below (in thousands) and are included in the consolidated results of operations for the three and nine months ended September 30, 2022 and 2021:
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Leases (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Company's Lease Income | The following table summarizes the Company’s lease income, excluding discontinued operations (in thousands):
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Schedule of Components of Net Investment in DFLs | Net investment in DFLs consists of the following (in thousands):
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Loans Receivable (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Loans Receivable | The following table summarizes the Company’s loans receivable (in thousands):
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Schedule of Financing Receivable Credit Quality Indicators and by Year of Origination | The following table summarizes, by year of origination, the Company’s internal ratings for loans receivable, net of unamortized discounts, fees, and reserves for loan losses, as of September 30, 2022 (in thousands):
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Schedule of Financing Receivable, Allowance for Credit Loss | The following table summarizes the Company’s reserve for loan losses (in thousands):
_______________________________________ (1)Includes one loan repaid during the nine months ended September 30, 2022 and six loans sold or repaid during the year ended December 31, 2021.
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Investments in and Advances to Unconsolidated Joint Ventures (Tables) |
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Sep. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity Method Investments and Joint Ventures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Equity Method Investments | The Company owns interests in the following entities that are accounted for under the equity method, excluding investments classified as discontinued operations (dollars in thousands):
_______________________________________ (1)These entities are not consolidated because the Company does not control, through voting rights or other means, the joint ventures. (2)Property counts and ownership percentages are as of September 30, 2022. (3)Includes seven unconsolidated life science joint ventures in South San Francisco, California in which the Company holds a 70% ownership percentage in each joint venture. These joint ventures have been aggregated herein due to similarity of the investments and operations. See “South San Francisco Joint Ventures” below for further information. (4)In December 2021, the Company acquired a 38% interest in a life science development joint venture in Needham, Massachusetts for $13 million. Land held for development is excluded from the property count as of September 30, 2022. (5)Includes two unconsolidated medical office joint ventures in which the Company holds an ownership percentage as follows: (i) Ventures IV (20%) and (ii) Suburban Properties, LLC (67%). During 2021, the Company also held a 30% interest in Ventures III, which issued its final distribution and was dissolved. These joint ventures have been aggregated herein due to similarity of the investments and operations.
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Intangibles (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Intangibles [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Intangible Lease Assets | Intangible assets primarily consist of lease-up intangibles and above market tenant lease intangibles. The following table summarizes the Company’s intangible lease assets (dollars in thousands):
(1)Excludes intangible assets reported in assets held for sale and discontinued operations, net of $2 million and zero as of September 30, 2022 and December 31, 2021, respectively.
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Schedule of Intangible Lease Liabilities | Intangible liabilities consist of below market lease intangibles. The following table summarizes the Company’s intangible lease liabilities (dollars in thousands):
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Debt (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Senior Notes Issuances | The following table summarizes the Company’s senior unsecured notes repurchases and redemptions during the year ended December 31, 2021 (dollars in thousands):
_______________________________________ (1)As a result of the repurchases and redemptions of these senior unsecured notes, the Company recognized an aggregate $225 million loss on debt extinguishment during the nine months ended September 30, 2021. (dollars in thousands):
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Summary of Debt Maturities and Schedule Principal Repayments | The following table summarizes the Company’s stated debt maturities and scheduled principal repayments at September 30, 2022 (dollars in thousands):
_______________________________________ (1)Commercial Paper Program borrowings are backstopped by the Revolving Facility. As such, the Company calculates the weighted average remaining term of its Commercial Paper Program borrowings using the maturity date of the Revolving Facility. (2)Effective interest rates on the senior unsecured notes range from 1.54% to 6.91% with a weighted average effective interest rate of 3.39% and a weighted average maturity of 6 years. (3)Effective interest rates on the mortgage debt range from 3.57% to 6.70% with a weighted average effective interest rate of 4.35% and a weighted average maturity of 3 years. These interest rates include the impact of designated interest rate swap instruments, which effectively fix the interest rate on certain variable rate debt.
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Equity and Redeemable Noncontrolling Interests (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Accumulated Other comprehensive Loss | The following table summarizes the Company’s accumulated other comprehensive income (loss) (in thousands):
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Earnings Per Common Share (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Computation of Basic and Diluted Earnings per Share | The following table illustrates the computation of basic and diluted earnings per share (in thousands, except per share amounts):
_______________________________________ (1)For all periods presented, represents the dilutive impact of 1 million outstanding equity awards (restricted stock units and stock options).
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Segment Disclosures (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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, 2022:
______________________________________________________________________________ (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, 2021:
______________________________________________________________________________ (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, 2022:
______________________________________________________________________________ (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, 2021:
(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.
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Supplemental Cash Flow Information (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Supplemental Cash Flow Elements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Supplemental Cash Flow Information | The following table provides supplemental cash flow information (in thousands):
The following table summarizes certain cash flow information related to assets classified as discontinued operations (in thousands):
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Schedule of Cash, Cash Equivalents and Restricted Cash | The following table summarizes cash, cash equivalents and restricted cash (in thousands):
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Variable Interest Entities (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Variable Interest Entities [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Variable Interest Entities | The classification of the related assets and liabilities and the maximum loss exposure as a result of the Company’s involvement with these VIEs at September 30, 2022 was as follows (in thousands):
_______________________________________ (1)The Company’s maximum loss exposure represents the aggregate carrying amount of such investments (including accrued interest).
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Consolidated Assets and Liabilities of Variable Interest Entities | Total assets and total liabilities include VIE assets and liabilities as follows (in thousands):
Total assets and liabilities related to assets held for sale and discontinued operations include VIE assets and liabilities as follows (in thousands):
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Fair Value Measurements (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Carry Amounts and Fair Value of Financial Instruments | The table below summarizes the carrying amounts and fair values of the Company’s financial instruments (in thousands):
(1)Level 1: Fair value calculated based on quoted prices in active markets. (2)Level 2: Fair value based on (i) for marketable debt securities, quoted prices for similar or identical instruments in active or inactive markets, respectively, or (ii) for loans receivable, net, mortgage debt, interest rate swap instruments, and interest rate cap instruments, standardized pricing models in which significant inputs or value drivers are observable in active markets. For bank line of credit and commercial paper, the carrying values are a reasonable estimate of fair value because the borrowings are primarily based on market interest rates and the Company’s credit rating. (3)During the nine months ended September 30, 2022 and year ended December 31, 2021, there were no material transfers of financial assets or liabilities within the fair value hierarchy.
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Derivative Financial Instruments (Tables) |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Derivative Instruments | The following table summarizes the Company’s interest rate swap instruments as of September 30, 2022 (in thousands):
_____________________________ (1)At September 30, 2022, the interest rate swap instruments were in an asset position. Derivative assets are recorded in other assets, net on the Consolidated Balance Sheets. (2)Represents interest rate swap instruments that hedge fluctuations in interest payments on variable rate debt by converting the interest rates to fixed interest rates. The changes in fair value of designated derivatives that qualify as cash flow hedges are recorded in accumulated other comprehensive income (loss) on the Consolidated Balance Sheets. The following table summarizes the Company’s interest rate cap instruments as of September 30, 2022 (in thousands):
_____________________________ (1)At December 31, 2021, the interest rate cap instruments were in an asset position. Derivative assets are recorded in other assets, net on the Consolidated Balance Sheets. (2)Represents two interest rate cap instruments that manage the Company’s exposure to variable cash flows on certain mortgage debt borrowings by limiting interest rates. These interest rate cap instruments were terminated in April 2022.
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Accounts Payable, Accrued Liabilities, and Other Liabilities (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Payables and Accruals [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Accounts Payable and Accrued Liabilities | The following table summarizes the Company’s accounts payable, accrued liabilities, and other liabilities, excluding accounts payable, accrued liabilities, and other liabilities related to assets classified as discontinued operations (in thousands):
_______________________________________ (1)At September 30, 2022 and December 31, 2021, unamortized nonrefundable entrance fee liabilities were $512 million and $496 million, respectively, which are recorded within deferred revenue on the Consolidated Balance Sheets. During the three and nine months ended September 30, 2022, the Company collected nonrefundable entrance fees of $24 million and $74 million, respectively, and recognized amortization of $20 million and $58 million, respectively. During the three and nine months ended September 30, 2021, the Company collected nonrefundable entrance fees of $25 million and $63 million, respectively, and recognized amortization of $19 million and $57 million, respectively. The amortization of nonrefundable entrance fees is included within resident fees and services on the Consolidated Statements of Operations.
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Summary of Significant Accounting Policies - Government Grant Income (Details) - Government Assistance, CARES Act - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2022 |
Sep. 30, 2021 |
Sep. 30, 2022 |
Sep. 30, 2021 |
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Unusual or Infrequent Item, or Both [Line Items] | ||||
Government grant income received | $ 197 | $ 15 | $ 7,812 | $ 6,082 |
Government grant income recorded in other income (expense), net | ||||
Unusual or Infrequent Item, or Both [Line Items] | ||||
Government grant income received | 4 | 15 | 6,765 | 1,412 |
Government grant income recorded in equity income (loss) from unconsolidated joint ventures | ||||
Unusual or Infrequent Item, or Both [Line Items] | ||||
Government grant income received | 183 | 0 | 831 | 1,010 |
Government grant income recorded in income (loss) from discontinued operations | ||||
Unusual or Infrequent Item, or Both [Line Items] | ||||
Government grant income received | $ 10 | $ 0 | $ 216 | $ 3,660 |
Real Estate - Development Activities (Details) $ in Millions |
9 Months Ended |
---|---|
Sep. 30, 2022
USD ($)
| |
Real Estate [Abstract] | |
Development and redevelopment projects, amount decrease | $ 49 |
Development commitments | $ 421 |
Leases - Lease Income (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2022 |
Sep. 30, 2021 |
Sep. 30, 2022 |
Sep. 30, 2021 |
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Interest and Other Income [Abstract] | ||||
Fixed income from operating leases | $ 298,680 | $ 276,430 | $ 882,700 | $ 807,677 |
Variable income from operating leases | 93,621 | 77,086 | 266,830 | 214,453 |
Interest income from direct financing leases | $ 0 | $ 2,179 | $ 1,168 | $ 6,522 |
Leases - Narrative (Details) $ in Millions |
3 Months Ended |
---|---|
Jun. 30, 2022
USD ($)
| |
Leases [Abstract] | |
Proceeds from sale of lease receivable | $ 68 |
Gain on sale of direct financing lease | $ 23 |
Leases - Direct Financing Leases (Details) $ in Thousands |
Sep. 30, 2022
USD ($)
property
|
Dec. 31, 2021
USD ($)
property
|
---|---|---|
Leases [Abstract] | ||
Present value of minimum lease payments receivable | $ 0 | $ 1,220 |
Present value of estimated residual value | 0 | 44,706 |
Less deferred selling profits | 0 | (1,220) |
Net investment in direct financing leases | $ 0 | $ 44,706 |
Number of properties classified as DFL | property | 0 | 1 |
Loans Receivable - Schedule of Loans Receivable (Details) - USD ($) $ in Thousands |
Sep. 30, 2022 |
Dec. 31, 2021 |
Dec. 31, 2020 |
---|---|---|---|
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Unamortized discounts, fees, and costs | $ (1,565) | $ (4,186) | |
Reserve for loan losses | (5,115) | (1,813) | $ (10,280) |
Loans receivable, net | 383,991 | 415,811 | |
Remaining loans receivable commitments | 41,000 | 58,000 | |
Secured mortgage loans | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Financing receivable, gross | 360,092 | 396,281 | |
Mezzanine and other | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Financing receivable, gross | $ 30,579 | $ 25,529 |
Intangibles - Intangibles Lease Assets (Details) - USD ($) |
9 Months Ended | 12 Months Ended |
---|---|---|
Sep. 30, 2022 |
Dec. 31, 2021 |
|
Intangibles [Abstract] | ||
Gross intangible lease assets | $ 802,180,000 | $ 797,675,000 |
Accumulated depreciation and amortization | (357,965,000) | (277,915,000) |
Intangible assets, net | $ 444,215,000 | $ 519,760,000 |
Weighted average remaining amortization period in years | 5 years | 6 years |
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, net | $ 444,215,000 | $ 519,760,000 |
Discontinued Operations, Held-for-sale or Disposed of by Sale | ||
Intangibles [Abstract] | ||
Intangible assets, net | 2,000,000 | 0 |
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, net | $ 2,000,000 | $ 0 |
Intangibles - Intangibles Lease Liabilities (Details) - USD ($) $ in Thousands |
9 Months Ended | 12 Months Ended |
---|---|---|
Sep. 30, 2022 |
Dec. 31, 2021 |
|
Intangibles [Abstract] | ||
Gross intangible lease liabilities | $ 240,733 | $ 234,917 |
Accumulated depreciation and amortization | (77,859) | (57,685) |
Intangible liabilities, net | $ 162,874 | $ 177,232 |
Weighted average remaining amortization period in years | 8 years | 8 years |
Intangibles - Narrative (Details) - USD ($) $ in Millions |
9 Months Ended | 12 Months Ended |
---|---|---|
Sep. 30, 2022 |
Dec. 31, 2021 |
|
Finite-Lived Intangible Assets [Line Items] | ||
Weighted average remaining amortization period in years | 5 years | 6 years |
Weighted average remaining amortization period, liabilities | 8 years | 8 years |
Other Property | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets acquired | $ 7 | $ 109 |
Intangible liabilities acquired | $ 6 | $ 57 |
Weighted average remaining amortization period in years | 7 years | 9 years |
Weighted average remaining amortization period, liabilities | 11 years | 9 years |
Debt - Commercial Paper Program (Details) - USD ($) |
9 Months Ended | 12 Months Ended | |
---|---|---|---|
Sep. 30, 2022 |
Dec. 31, 2021 |
Jul. 31, 2022 |
|
Debt Instrument | |||
Debt instrument, term (in months) | 42 days | 2 months | |
Weighted-average interest rate (as a percent) | 3.41% | 0.32% | |
Commercial Paper Program | |||
Debt Instrument | |||
Maximum outstanding amount capacity | $ 1,500,000,000 | $ 2,000,000,000 | |
Borrowings | $ 1,590,000,000 | $ 1,170,000,000 |
Commitments and Contingencies (Details) |
Sep. 30, 2022
property
|
---|---|
Life Science JV | Life Science | |
Loss Contingencies [Line Items] | |
Investment ownership percentage | 49.00% |
Indemnification Agreement | |
Loss Contingencies [Line Items] | |
Number of properties may be contributed in the agreement | 29 |
Equity and Redeemable Noncontrolling Interests - AOCI (Details) - USD ($) $ in Thousands |
Sep. 30, 2022 |
Dec. 31, 2021 |
---|---|---|
Accumulated Other Comprehensive Loss | ||
Unrealized gains (losses) on derivatives, net | $ 32,373 | $ 0 |
Supplemental Executive Retirement Plan minimum liability | (2,847) | (3,147) |
Total accumulated other comprehensive income (loss) | $ 29,526 | $ (3,147) |
Earnings Per Common Share - Narrative (Details) - shares |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2022 |
Sep. 30, 2021 |
Sep. 30, 2022 |
Sep. 30, 2021 |
|
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Dilutive potential common shares - forward equity agreements (in shares) | 0 | 0 | 0 | 0 |
Shares of anti-dilutive securities excluded from earnings per share calculation (in shares) | 9,100,000 | 9,100,000 | 9,100,000 | 9,100,000 |
Down REIT | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Shares of anti-dilutive securities excluded from earnings per share calculation (in shares) | 7,000,000 | 7,000,000 | 5,000,000 | 7,000,000 |
Supplemental Cash Flow Information - Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands |
9 Months Ended | |
---|---|---|
Sep. 30, 2022 |
Sep. 30, 2021 |
|
Supplemental cash flow information: | ||
Interest paid, net of capitalized interest | $ 138,972 | $ 167,062 |
Income taxes paid (refunded) | (2,003) | 4,258 |
Capitalized interest | 26,970 | 17,022 |
Supplemental schedule of non-cash investing and financing activities: | ||
Retained investment in connection with South San Francisco JVs transaction | 293,265 | 0 |
Increase in ROU asset in exchange for new lease liability related to operating leases | 954 | 15,329 |
Decrease in ROU asset with corresponding change in lease liability related to operating leases | 0 | 8,410 |
Seller financing provided on disposition of real estate asset | 0 | 559,745 |
Accrued construction costs | 160,937 | 150,204 |
Vesting of restricted stock units and conversion of non-managing member units into common stock | 803 | 907 |
Carrying value of mortgages assumed by buyer in real estate dispositions | $ 0 | $ 143,676 |
Supplemental Cash Flow Information - Schedule of Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Thousands |
Sep. 30, 2022 |
Dec. 31, 2021 |
Sep. 30, 2021 |
Dec. 31, 2020 |
---|---|---|---|---|
Continuing operations | ||||
Cash and cash equivalents | $ 112,452 | $ 158,287 | $ 201,099 | $ 44,226 |
Restricted cash | 54,500 | 53,454 | 53,699 | 67,206 |
Cash, cash equivalents and restricted cash | 166,952 | 211,741 | 254,798 | 111,432 |
Discontinued operations | ||||
Cash and cash equivalents | 2,172 | 7,707 | 14,005 | 53,085 |
Restricted cash | 0 | 0 | 3 | 17,168 |
Cash, cash equivalents and restricted cash | 2,172 | 7,707 | 14,008 | 70,253 |
Cash and cash equivalents, total | 114,624 | 165,994 | 215,104 | 97,311 |
Restricted cash, total | 54,500 | 53,454 | 53,702 | 84,374 |
Cash, cash equivalents and restricted cash, total | $ 169,124 | $ 219,448 | $ 268,806 | $ 181,685 |
Variable Interest Entities - Schedule of Variable Interest Entities (Details) $ in Thousands |
Sep. 30, 2022
USD ($)
|
---|---|
CMBS and LLC investment | |
Variable Interest Entity [Line Items] | |
Maximum Loss Exposure and Carrying Amount | $ 36,775 |
Needham Land Parcel JV | |
Variable Interest Entity [Line Items] | |
Maximum Loss Exposure and Carrying Amount | $ 15,342 |
Accounts Payable, Accrued Liabilities, and Other Liabilities (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||||
---|---|---|---|---|---|---|
Dec. 31, 2022 |
Sep. 30, 2022 |
Sep. 30, 2021 |
Sep. 30, 2022 |
Sep. 30, 2021 |
Dec. 31, 2021 |
|
Payables and Accruals [Abstract] | ||||||
Refundable entrance fees | $ 271,675 | $ 271,675 | $ 288,409 | |||
Accrued construction costs | 160,937 | 160,937 | 179,995 | |||
Accrued interest | 35,832 | 35,832 | 59,342 | |||
Other accounts payable and accrued liabilities | 264,451 | 264,451 | 227,638 | |||
Accounts payable, accrued liabilities, and other liabilities | 732,895 | 732,895 | 755,384 | |||
Unamortized nonrefundable entrance fee | 512,000 | 512,000 | $ 496,000 | |||
Proceeds from collection of nonrefundable entrance fees | 24,000 | $ 25,000 | 74,000 | $ 63,000 | ||
Amortization of nonrefundable entrance fee | $ 20,000 | $ 19,000 | $ 58,000 | $ 57,000 | ||
Forecast | ||||||
Other Commitments [Line Items] | ||||||
Severance costs | $ 30,000 |
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