Segment Disclosures (Tables)

6 Months Ended

Jun. 30, 2023

Summary of Financial Information of Reportable Segments

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

For the three months ended June 30, 2023:


	Lab		Outpatient Medical		CCRC		Other Non-reportable		Corporate Non-segment		Total
Total revenues	$	223,306	$	186,661	$	130,184	$	5,279	$	—	$	545,430
Government grant income(1)	—		—		47		—		—		47
Less: Interest income	—		—		—		(5,279)		—		(5,279)
Healthpeak’s share of unconsolidated joint venture total revenues	1,928		754		—		20,261		—		22,943

Noncontrolling interests’ share of consolidated joint venture total revenues	(151)		(8,665)		—		—		—		(8,816)
Operating expenses	(54,832)		(65,350)		(101,655)		—		—		(221,837)
Healthpeak’s share of unconsolidated joint venture operating expenses	(848)		(288)		—		(14,618)		—		(15,754)
Noncontrolling interests’ share of consolidated joint venture operating expenses	35		2,409		—		—		—		2,444

Adjustments to NOI(2)	(14,943)		(4,008)		(728)		(9)		—		(19,688)
Adjusted NOI	154,495		111,513		27,848		5,634		—		299,490
Plus: Adjustments to NOI(2)	14,943		4,008		728		9		—		19,688
Interest income	—		—		—		5,279		—		5,279
Interest expense	—		(1,924)		(1,823)		—		(45,327)		(49,074)
Depreciation and amortization	(93,235)		(71,722)		(32,616)		—		—		(197,573)
General and administrative	—		—		—		—		(25,936)		(25,936)
Transaction costs	—		(16)		(278)		—		(343)		(637)
Impairments and loan loss reserves, net	—		—		—		(2,607)		—		(2,607)
Gain (loss) on sales of real estate, net	—		—		—		4,885		—		4,885

Other income (expense), net	(2)		235		674		(19)		1,067		1,955
Less: Government grant income	—		—		(47)		—		—		(47)
Less: Healthpeak’s share of unconsolidated joint venture NOI	(1,080)		(466)		—		(5,643)		—		(7,189)
Plus: Noncontrolling interests’ share of consolidated joint venture NOI	116		6,256		—		—		—		6,372
Income (loss) before income taxes and equity income (loss) from unconsolidated joint ventures	75,237		47,884		(5,514)		7,538		(70,539)		54,606
Income tax benefit (expense)	—		—		—		—		(1,136)		(1,136)
Equity income (loss) from unconsolidated joint ventures	1,314		184		—		1,231		—		2,729

Income (loss) from continuing operations	76,551		48,068		(5,514)		8,769		(71,675)		56,199
Income (loss) from discontinued operations	—		—		—		—		—		—
Net income (loss)	$	76,551	$	48,068	$	(5,514)	$	8,769	$	(71,675)	$	56,199

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(1)Represents government grant income received under the CARES Act, which is recorded in other income (expense), net in the Consolidated Statements of Operations (see Note 2).

(2)Represents straight-line rents, amortization of market lease intangibles, net, actuarial reserves for insurance claims that have been incurred but not reported, deferral of community fees, and termination fees. Includes the Company’s share of income (loss) generated by unconsolidated joint ventures and excludes noncontrolling interests’ share of income (loss) generated by consolidated joint ventures.

For the three months ended June 30, 2022:


	Lab		Outpatient Medical		CCRC		Other Non-reportable		Corporate Non-segment		Total
Total revenues	$	207,771	$	179,308	$	125,360	$	5,493	$	—	$	517,932
Government grant income(1)	—		—		209		—		—		209
Less: Interest income	—		—		—		(5,493)		—		(5,493)
Healthpeak’s share of unconsolidated joint venture total revenues	1,267		761		—		18,215		—		20,243

Noncontrolling interests’ share of consolidated joint venture total revenues	(62)		(8,943)		—		—		—		(9,005)
Operating expenses	(49,446)		(63,321)		(102,277)		—		—		(215,044)
Healthpeak’s share of unconsolidated joint venture operating expenses	(483)		(301)		—		(14,150)		—		(14,934)
Noncontrolling interests’ share of consolidated joint venture operating expenses	19		2,726		—		—		—		2,745

Adjustments to NOI(2)	(21,644)		(2,949)		—		54		—		(24,539)
Adjusted NOI	137,422		107,281		23,292		4,119		—		272,114
Plus: Adjustments to NOI(2)	21,644		2,949		—		(54)		—		24,539
Interest income	—		—		—		5,493		—		5,493
Interest expense	—		(1,930)		(1,876)		—		(38,061)		(41,867)
Depreciation and amortization	(79,673)		(68,873)		(31,943)		—		—		(180,489)
General and administrative	—		—		—		—		(24,781)		(24,781)
Transaction costs	(35)		(70)		(64)		—		(443)		(612)
Impairments and loan loss reserves, net	—		—		—		(139)		—		(139)
Gain (loss) on sales of real estate, net	—		10,340		—		—		—		10,340

Other income (expense), net	29		1,264		630		18		920		2,861
Less: Government grant income	—		—		(209)		—		—		(209)
Less: Healthpeak’s share of unconsolidated joint venture NOI	(784)		(460)		—		(4,065)		—		(5,309)
Plus: Noncontrolling interests’ share of consolidated joint venture NOI	43		6,217		—		—		—		6,260
Income (loss) before income taxes and equity income (loss) from unconsolidated joint ventures	78,646		56,718		(10,170)		5,372		(62,365)		68,201
Income tax benefit (expense)	—		—		—		—		718		718
Equity income (loss) from unconsolidated joint ventures	148		211		—		23		—		382

Income (loss) from continuing operations	78,794		56,929		(10,170)		5,395		(61,647)		69,301
Income (loss) from discontinued operations	—		—		—		—		2,992		2,992
Net income (loss)	$	78,794	$	56,929	$	(10,170)	$	5,395	$	(58,655)	$	72,293

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(1)Represents government grant income received under the CARES Act, which is recorded in other income (expense), net in the Consolidated Statements of Operations (see Note 2).

(2)Represents straight-line rents, DFL non-cash interest, amortization of market lease intangibles, net, actuarial reserves for insurance claims that have been incurred but not reported, deferral of community fees, and termination fees. Includes the Company’s share of income (loss) generated by unconsolidated joint ventures and excludes noncontrolling interests’ share of income (loss) generated by consolidated joint ventures.

For the six months ended June 30, 2023:


	Lab		Outpatient Medical		CCRC		Other Non-reportable		Corporate Non-segment		Total
Total revenues	$	428,770	$	373,628	$	257,268	$	11,442	$	—	$	1,071,108
Government grant income(1)	—		—		184		—		—		184
Less: Interest income	—		—		—		(11,442)		—		(11,442)
Healthpeak’s share of unconsolidated joint venture total revenues	4,093		1,498		—		40,607		—		46,198
Healthpeak’s share of unconsolidated joint venture government grant income	—		—		—		229		—		229
Noncontrolling interests’ share of consolidated joint venture total revenues	(294)		(17,628)		—		—		—		(17,922)
Operating expenses	(112,397)		(129,749)		(202,779)		—		—		(444,925)
Healthpeak’s share of unconsolidated joint venture operating expenses	(2,030)		(595)		—		(29,624)		—		(32,249)
Noncontrolling interests’ share of consolidated joint venture operating expenses	75		5,004		—		—		—		5,079

Adjustments to NOI(2)	(15,776)		(7,825)		(678)		(31)		—		(24,310)
Adjusted NOI	302,441		224,333		53,995		11,181		—		591,950
Plus: Adjustments to NOI(2)	15,776		7,825		678		31		—		24,310
Interest income	—		—		—		11,442		—		11,442
Interest expense	—		(3,845)		(3,639)		—		(89,553)		(97,037)
Depreciation and amortization	(168,817)		(142,881)		(65,100)		—		—		(376,798)
General and administrative	—		—		—		—		(50,483)		(50,483)
Transaction costs	(158)		(148)		(497)		—		(2,259)		(3,062)
Impairments and loan loss reserves, net	—		—		—		(394)		—		(394)
Gain (loss) on sales of real estate, net	60,498		21,312		—		4,653		—		86,463

Other income (expense), net	2		439		7		(19)		2,298		2,727
Less: Government grant income	—		—		(184)		—		—		(184)
Less: Healthpeak’s share of unconsolidated joint venture NOI	(2,063)		(903)		—		(11,212)		—		(14,178)
Plus: Noncontrolling interests’ share of consolidated joint venture NOI	219		12,624		—		—		—		12,843
Income (loss) before income taxes and equity income (loss) from unconsolidated joint ventures	207,898		118,756		(14,740)		15,682		(139,997)		187,599
Income tax benefit (expense)	—		—		—		—		(1,438)		(1,438)
Equity income (loss) from unconsolidated joint ventures	1,911		374		—		2,260		—		4,545

Income (loss) from continuing operations	209,809		119,130		(14,740)		17,942		(141,435)		190,706
Income (loss) from discontinued operations	—		—		—		—		—		—
Net income (loss)	$	209,809	$	119,130	$	(14,740)	$	17,942	$	(141,435)	$	190,706

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(1)Represents government grant income received under the CARES Act, which is recorded in other income (expense), net in the Consolidated Statements of Operations (see Note 2).

For the six months ended June 30, 2022:


	Lab		Outpatient Medical		CCRC		Other Non-reportable		Corporate Non-segment		Total
Total revenues	$	401,826	$	356,571	$	246,920	$	10,987	$	—	$	1,016,304
Government grant income(1)	—		—		6,762		—		—		6,762
Less: Interest income	—		—		—		(10,987)		—		(10,987)
Healthpeak’s share of unconsolidated joint venture total revenues	2,698		1,493		—		36,260		—		40,451
Healthpeak’s share of unconsolidated joint venture government grant income	—		—		333		315		—		648
Noncontrolling interests’ share of consolidated joint venture total revenues	(119)		(17,763)		—		—		—		(17,882)
Operating expenses	(97,635)		(124,491)		(200,165)		—		—		(422,291)
Healthpeak’s share of unconsolidated joint venture operating expenses	(966)		(600)		—		(28,205)		—		(29,771)
Noncontrolling interests’ share of consolidated joint venture operating expenses	38		5,328		—		—		—		5,366

Adjustments to NOI(2)	(35,756)		(6,495)		—		45		—		(42,206)
Adjusted NOI	270,086		214,043		53,850		8,415		—		546,394
Plus: Adjustments to NOI(2)	35,756		6,495		—		(45)		—		42,206
Interest income	—		—		—		10,987		—		10,987
Interest expense	—		(2,966)		(3,741)		—		(72,746)		(79,453)
Depreciation and amortization	(157,811)		(136,646)		(63,765)		—		—		(358,222)
General and administrative	—		—		—		—		(48,612)		(48,612)
Transaction costs	(327)		(74)		(64)		—		(443)		(908)
Impairments and loan loss reserves, net	—		—		—		(271)		—		(271)
Gain (loss) on sales of real estate, net	3,856		10,340		—		—		—		14,196

Other income (expense), net	20		12,201		7,141		(13)		1,828		21,177
Less: Government grant income	—		—		(6,762)		—		—		(6,762)
Less: Healthpeak’s share of unconsolidated joint venture NOI	(1,732)		(893)		(333)		(8,370)		—		(11,328)
Plus: Noncontrolling interests’ share of consolidated joint venture NOI	81		12,435		—		—		—		12,516
Income (loss) before income taxes and equity income (loss) from unconsolidated joint ventures	149,929		114,935		(13,674)		10,703		(119,973)		141,920
Income tax benefit (expense)	—		—		—		—		(59)		(59)
Equity income (loss) from unconsolidated joint ventures	1,114		411		539		402		—		2,466

Income (loss) from continuing operations	151,043		115,346		(13,135)		11,105		(120,032)		144,327
Income (loss) from discontinued operations	—		—		—		—		3,309		3,309
Net income (loss)	$	151,043	$	115,346	$	(13,135)	$	11,105	$	(116,723)	$	147,636

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(1)Represents government grant income received under the CARES Act, which is recorded in other income (expense), net in the Consolidated Statements of Operations (see Note 2).