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Segment Disclosures
 3 Months Ended
Mar. 31, 2024
Segment Reporting [Abstract]  
Segment Disclosures Segment Disclosures
The Company’s reportable segments, based on how its CODM evaluates the business and allocates resources, are as follows: (i) outpatient medical, (ii) lab, and (iii) CCRC. The Company has non-reportable segments that are comprised primarily of: (i) an interest in an unconsolidated joint venture that owns 19 senior housing assets (the “SWF SH JV”) and (ii) loans receivable. These non-reportable segments have been presented on an aggregate basis within the Notes to the Consolidated Financial Statements herein. 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, 2023 filed with the SEC, as updated by Note 2 herein.
The Company evaluates performance based on property Adjusted NOI. Adjusted NOI is defined as real estate revenues (inclusive of rental and related revenues, resident fees and services, and government grant income and exclusive of interest income), less property level operating expenses; Adjusted NOI excludes all other financial statement amounts included in net income (loss). Adjusted NOI eliminates the effects of straight-line rents, 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.
Adjusted NOI is a non-GAAP supplemental measures that is calculated as Adjusted NOI from consolidated properties, plus the Company’s share of Adjusted NOI from unconsolidated joint ventures (calculated by applying the Company’s actual ownership percentage for the period), less noncontrolling interests’ share of Adjusted NOI from consolidated joint ventures (calculated by applying the Company’s actual ownership percentage for the period). Management utilizes its share of 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 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 Adjusted NOI. Adjusted NOI should not be viewed as an alternative measure of operating performance to net income (loss) as defined by GAAP since it does 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, loans receivable, other assets, real estate assets held for sale, and liabilities related to assets held for sale.
The following tables summarize information for the reportable segments (in thousands):
For the three months ended March 31, 2024:
Outpatient MedicalLabCCRCOther Non-reportableCorporate Non-segmentTotal
Total revenues$238,272 $223,761 $138,776 $5,059 $692 $606,560 
Less: Interest income and other— — — (5,059)(692)(5,751)
Healthpeak’s share of unconsolidated joint venture total revenues2,739 4,861 — 21,533 — 29,133 
Noncontrolling interests’ share of consolidated joint venture total revenues(8,876)(163)— — — (9,039)
Operating expenses(81,268)(56,840)(105,621)— — (243,729)
Healthpeak’s share of unconsolidated joint venture operating expenses(1,083)(1,324)— (16,099)— (18,506)
Noncontrolling interests’ share of consolidated joint venture operating expenses2,430 43 — — — 2,473 
Adjustments to NOI(1)
(6,127)(21,435)— (47)— (27,609)
Adjusted NOI146,087 148,903 33,155 5,387 — 333,532 
Plus: Adjustments to NOI(1)
6,127 21,435 — 47 — 27,609 
Interest income and other— — — 5,059 692 5,751 
Interest expense(3,131)— (996)— (56,780)(60,907)
Depreciation and amortization(106,292)(78,908)(34,019)— — (219,219)
General and administrative— — — — (23,299)(23,299)
Transaction and merger-related costs(113)(9)(73)— (107,025)(107,220)
Impairments and loan loss reserves, net— — — (11,458)— (11,458)
Gain (loss) on sales of real estate, net3,255 — — — — 3,255 
Other income (expense), net71 78,983 (239)— (299)78,516 
Less: Healthpeak’s share of unconsolidated joint venture NOI(1,656)(3,537)— (5,434)— (10,627)
Plus: Noncontrolling interests’ share of consolidated joint venture NOI6,446 120 — — — 6,566 
Income (loss) before income taxes and equity income (loss) from unconsolidated joint ventures50,794 166,987 (2,172)(6,399)(186,711)22,499 
Income tax benefit (expense)— — — — (13,698)(13,698)
Equity income (loss) from unconsolidated joint ventures(1,110)2,811 — 675 — 2,376 
Net income (loss)$49,684 $169,798 $(2,172)$(5,724)$(200,409)$11,177 
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(1)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 March 31, 2023:
 Outpatient MedicalLabCCRCOther Non-reportableCorporate Non-segmentTotal
Total revenues$186,967 $205,464 $127,084 $6,163 $— $525,678 
Government grant income(1)
— — 137 — — 137 
Less: Interest income and other— — — (6,163)— (6,163)
Healthpeak’s share of unconsolidated joint venture total revenues745 2,165 — 20,346 — 23,256 
Healthpeak’s share of unconsolidated joint venture government grant income— — — 228 — 228 
Noncontrolling interests’ share of consolidated joint venture total revenues(8,963)(143)— — — (9,106)
Operating expenses(64,398)(57,566)(101,124)— — (223,088)
Healthpeak’s share of unconsolidated joint venture operating expenses(305)(1,182)— (15,006)— (16,493)
Noncontrolling interests’ share of consolidated joint venture operating expenses2,595 40 — — — 2,635 
Adjustments to NOI(2)
(3,821)(832)50 (21)— (4,624)
Adjusted NOI112,820 147,946 26,147 5,547 — 292,460 
Plus: Adjustments to NOI(2)
3,821 832 (50)21 — 4,624 
Interest income and other— — — 6,163 — 6,163 
Interest expense(1,920)— (1,816)— (44,227)(47,963)
Depreciation and amortization(71,158)(75,582)(32,485)— — (179,225)
General and administrative— — — — (24,547)(24,547)
Transaction and merger-related costs(132)(158)(219)— (1,916)(2,425)
Impairments and loan loss reserves, net— — — 2,213 — 2,213 
Gain (loss) on sales of real estate, net21,312 60,498 — (232)— 81,578 
Other income (expense), net204 4 (667)— 1,231 772 
Less: Government grant income— — (137)— — (137)
Less: Healthpeak’s share of unconsolidated joint venture NOI(440)(983)— (5,568)— (6,991)
Plus: Noncontrolling interests’ share of consolidated joint venture NOI6,368 103 — — — 6,471 
Income (loss) before income taxes and equity income (loss) from unconsolidated joint ventures70,875 132,660 (9,227)8,144 (69,459)132,993 
Income tax benefit (expense)— — — — (302)(302)
Equity income (loss) from unconsolidated joint ventures189 598 — 1,029 — 1,816 
Net income (loss)$71,064 $133,258 $(9,227)$9,173 $(69,761)$134,507 
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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.
See Note 3 for impacts to segment assets as a result of the Merger. See these Notes to the Consolidated Financial Statements for other significant transactions impacting the Company’s segment assets during the periods presented.