| 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 June 30, 2024: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Outpatient Medical | | Lab | | CCRC | | Other Non-reportable | | Corporate Non-segment | | Total | | Total revenues | | $ | 332,515 | | | $ | 214,266 | | | $ | 140,891 | | | $ | 6,878 | | | $ | 954 | | | $ | 695,504 | | | | | | | | | | | | | | | | Less: Interest income and other | | — | | | — | | | — | | | (6,878) | | | (954) | | | (7,832) | | | Healthpeak’s share of unconsolidated joint venture total revenues | | 6,903 | | | 4,301 | | | — | | | 21,378 | | | — | | | 32,582 | | | | | | | | | | | | | | | | Noncontrolling interests’ share of consolidated joint venture total revenues | | (9,341) | | | (33) | | | — | | | — | | | — | | | (9,374) | | | Operating expenses | | (111,702) | | | (56,656) | | | (105,469) | | | — | | | — | | | (273,827) | | | Healthpeak’s share of unconsolidated joint venture operating expenses | | (2,464) | | | (1,528) | | | — | | | (15,790) | | | — | | | (19,782) | | | Noncontrolling interests’ share of consolidated joint venture operating expenses | | 2,609 | | | 9 | | | — | | | — | | | — | | | 2,618 | | | | | | | | | | | | | | | Adjustments to NOI(1) | | (10,430) | | | (13,289) | | | (1,739) | | | 226 | | | — | | | (25,232) | | | Adjusted NOI | | 208,090 | | | 147,070 | | | 33,683 | | | 5,814 | | | — | | | 394,657 | | Plus: Adjustments to NOI(1) | | 10,430 | | | 13,289 | | | 1,739 | | | (226) | | | — | | | 25,232 | | | Interest income and other | | — | | | — | | | — | | | 6,878 | | | 954 | | | 7,832 | | | Interest expense | | (4,070) | | | — | | | (984) | | | — | | | (69,856) | | | (74,910) | | | Depreciation and amortization | | (173,408) | | | (75,947) | | | (34,143) | | | — | | | — | | | (283,498) | | | General and administrative | | — | | | — | | | — | | | — | | | (26,718) | | | (26,718) | | | Transaction and merger-related costs | | (41) | | | (478) | | | 24 | | | — | | | (7,264) | | | (7,759) | | | Impairments and loan loss reserves, net | | — | | | — | | | — | | | 553 | | | — | | | 553 | | | Gain (loss) on sales of real estate, net | | 66,831 | | | 55,213 | | | — | | | — | | | — | | | 122,044 | | | | | | | | | | | | | | | | Other income (expense), net | | 1,383 | | | 185 | | | (479) | | | 38 | | | 2,877 | | | 4,004 | | | | | | | | | | | | | | | | Less: Healthpeak’s share of unconsolidated joint venture NOI | | (4,439) | | | (2,773) | | | — | | | (5,588) | | | — | | | (12,800) | | | Plus: Noncontrolling interests’ share of consolidated joint venture NOI | | 6,732 | | | 24 | | | — | | | — | | | — | | | 6,756 | | | Income (loss) before income taxes and equity income (loss) from unconsolidated joint ventures | | 111,508 | | | 136,583 | | | (160) | | | 7,469 | | | (100,007) | | | 155,393 | | | Income tax benefit (expense) | | — | | | — | | | — | | | — | | | (2,728) | | | (2,728) | | | Equity income (loss) from unconsolidated joint ventures | | (2,922) | | | 2,247 | | | — | | | 726 | | | — | | | 51 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Net income (loss) | | $ | 108,586 | | | $ | 138,830 | | | $ | (160) | | | $ | 8,195 | | | $ | (102,735) | | | $ | 152,716 | |
_______________________________________ (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 June 30, 2023: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Outpatient Medical | | Lab | | CCRC | | Other Non-reportable | | Corporate Non-segment | | Total | | Total revenues | | $ | 186,661 | | | $ | 223,306 | | | $ | 130,184 | | | $ | 5,279 | | | $ | — | | | $ | 545,430 | | Government grant income(1) | | — | | | — | | | 47 | | | — | | | — | | | 47 | | | Less: Interest income and other | | — | | | — | | | — | | | (5,279) | | | — | | | (5,279) | | | Healthpeak’s share of unconsolidated joint venture total revenues | | 754 | | | 1,928 | | | — | | | 20,261 | | | — | | | 22,943 | | | | | | | | | | | | | | | | Noncontrolling interests’ share of consolidated joint venture total revenues | | (8,665) | | | (151) | | | — | | | — | | | — | | | (8,816) | | | Operating expenses | | (65,350) | | | (54,832) | | | (101,655) | | | — | | | — | | | (221,837) | | | Healthpeak’s share of unconsolidated joint venture operating expenses | | (288) | | | (848) | | | — | | | (14,618) | | | — | | | (15,754) | | | Noncontrolling interests’ share of consolidated joint venture operating expenses | | 2,409 | | | 35 | | | — | | | — | | | — | | | 2,444 | | | | | | | | | | | | | | | Adjustments to NOI(2) | | (4,008) | | | (14,943) | | | (728) | | | (9) | | | — | | | (19,688) | | | Adjusted NOI | | 111,513 | | | 154,495 | | | 27,848 | | | 5,634 | | | — | | | 299,490 | | Plus: Adjustments to NOI(2) | | 4,008 | | | 14,943 | | | 728 | | | 9 | | | — | | | 19,688 | | | Interest income and other | | — | | | — | | | — | | | 5,279 | | | — | | | 5,279 | | | Interest expense | | (1,924) | | | — | | | (1,823) | | | — | | | (45,327) | | | (49,074) | | | Depreciation and amortization | | (71,722) | | | (93,235) | | | (32,616) | | | — | | | — | | | (197,573) | | | General and administrative | | — | | | — | | | — | | | — | | | (25,936) | | | (25,936) | | | Transaction and merger-related 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 | | 235 | | | (2) | | | 674 | | | (19) | | | 1,067 | | | 1,955 | | | Less: Government grant income | | — | | | — | | | (47) | | | — | | | — | | | (47) | | | Less: Healthpeak’s share of unconsolidated joint venture NOI | | (466) | | | (1,080) | | | — | | | (5,643) | | | — | | | (7,189) | | | Plus: Noncontrolling interests’ share of consolidated joint venture NOI | | 6,256 | | | 116 | | | — | | | — | | | — | | | 6,372 | | | Income (loss) before income taxes and equity income (loss) from unconsolidated joint ventures | | 47,884 | | | 75,237 | | | (5,514) | | | 7,538 | | | (70,539) | | | 54,606 | | | Income tax benefit (expense) | | — | | | — | | | — | | | — | | | (1,136) | | | (1,136) | | | Equity income (loss) from unconsolidated joint ventures | | 184 | | | 1,314 | | | — | | | 1,231 | | | — | | | 2,729 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Net income (loss) | | $ | 48,068 | | | $ | 76,551 | | | $ | (5,514) | | | $ | 8,769 | | | $ | (71,675) | | | $ | 56,199 | |
_______________________________________ (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 six months ended June 30, 2024: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Outpatient Medical | | Lab | | CCRC | | Other Non-reportable | | Corporate Non-segment | | Total | | | Total revenues | | $ | 570,787 | | | $ | 438,027 | | | $ | 279,667 | | | $ | 11,937 | | | $ | 1,646 | | | $ | 1,302,064 | | | | Less: Interest income and other | | — | | | — | | | — | | | (11,937) | | | (1,646) | | | (13,583) | | | | Healthpeak’s share of unconsolidated joint venture total revenues | | 9,642 | | | 9,162 | | | — | | | 42,911 | | | — | | | 61,715 | | | | Noncontrolling interests’ share of consolidated joint venture total revenues | | (18,217) | | | (196) | | | — | | | — | | | — | | | (18,413) | | | | Operating expenses | | (192,970) | | | (113,496) | | | (211,090) | | | — | | | — | | | (517,556) | | | | Healthpeak’s share of unconsolidated joint venture operating expenses | | (3,547) | | | (2,852) | | | — | | | (31,889) | | | — | | | (38,288) | | | | Noncontrolling interests’ share of consolidated joint venture operating expenses | | 5,039 | | | 52 | | | — | | | — | | | — | | | 5,091 | | | | | | | | | | | | | | | | | Adjustments to NOI(1) | | (16,556) | | | (34,724) | | | (1,739) | | | 179 | | | — | | | (52,840) | | | | Adjusted NOI | | 354,178 | | | 295,973 | | | 66,838 | | | 11,201 | | | — | | | 728,190 | | | Plus: Adjustments to NOI(1) | | 16,556 | | | 34,724 | | | 1,739 | | | (179) | | | — | | | 52,840 | | | | Interest income and other | | — | | | — | | | — | | | 11,937 | | | 1,646 | | | 13,583 | | | | Interest expense | | (26,775) | | | — | | | (1,979) | | | — | | | (107,063) | | | (135,817) | | | | Depreciation and amortization | | (279,699) | | | (154,855) | | | (68,163) | | | — | | | — | | | (502,717) | | | | General and administrative | | — | | | — | | | — | | | — | | | (50,017) | | | (50,017) | | | | Transaction and merger-related costs | | (154) | | | (486) | | | (49) | | | — | | | (114,290) | | | (114,979) | | | | Impairments and loan loss reserves, net | | — | | | — | | | — | | | (10,905) | | | — | | | (10,905) | | | | Gain (loss) on sales of real estate, net | | 70,086 | | | 55,213 | | | — | | | — | | | — | | | 125,299 | | | | | | | | | | | | | | | | | | Other income (expense), net | | 1,454 | | | 79,168 | | | (718) | | | 38 | | | 2,578 | | | 82,520 | | | | | | | | | | | | | | | | | | Less: Healthpeak’s share of unconsolidated joint venture NOI | | (6,095) | | | (6,310) | | | — | | | (11,022) | | | — | | | (23,427) | | | | Plus: Noncontrolling interests’ share of consolidated joint venture NOI | | 13,178 | | | 144 | | | — | | | — | | | — | | | 13,322 | | | | Income (loss) before income taxes and equity income (loss) from unconsolidated joint ventures | | 142,729 | | | 303,571 | | | (2,332) | | | 1,070 | | | (267,146) | | | 177,892 | | | | Income tax benefit (expense) | | — | | | — | | | — | | | — | | | (16,426) | | | (16,426) | | | | Equity income (loss) from unconsolidated joint ventures | | (4,032) | | | 5,059 | | | — | | | 1,400 | | | — | | | 2,427 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Net income (loss) | | $ | 138,697 | | | $ | 308,630 | | | $ | (2,332) | | | $ | 2,470 | | | $ | (283,572) | | | $ | 163,893 | | |
______________________________________________________________________________ (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 six months ended June 30, 2023: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Outpatient Medical | | Lab | | CCRC | | Other Non-reportable | | Corporate Non-segment | | Total | | Total revenues | | $ | 373,628 | | | $ | 428,770 | | | $ | 257,268 | | | $ | 11,442 | | | $ | — | | | $ | 1,071,108 | | Government grant income(1) | | — | | | — | | | 184 | | | — | | | — | | | 184 | | | Less: Interest income and other | | — | | | — | | | — | | | (11,442) | | | — | | | (11,442) | | | Healthpeak’s share of unconsolidated joint venture total revenues | | 1,498 | | | 4,093 | | | — | | | 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 | | (17,628) | | | (294) | | | — | | | — | | | — | | | (17,922) | | | Operating expenses | | (129,749) | | | (112,397) | | | (202,779) | | | — | | | — | | | (444,925) | | | Healthpeak’s share of unconsolidated joint venture operating expenses | | (595) | | | (2,030) | | | — | | | (29,624) | | | — | | | (32,249) | | | Noncontrolling interests’ share of consolidated joint venture operating expenses | | 5,004 | | | 75 | | | — | | | — | | | — | | | 5,079 | | | | | | | | | | | | | | | Adjustments to NOI(2) | | (7,825) | | | (15,776) | | | (678) | | | (31) | | | — | | | (24,310) | | | Adjusted NOI | | 224,333 | | | 302,441 | | | 53,995 | | | 11,181 | | | — | | | 591,950 | | Plus: Adjustments to NOI(2) | | 7,825 | | | 15,776 | | | 678 | | | 31 | | | — | | | 24,310 | | | Interest income and other | | — | | | — | | | — | | | 11,442 | | | — | | | 11,442 | | | Interest expense | | (3,845) | | | — | | | (3,639) | | | — | | | (89,553) | | | (97,037) | | | Depreciation and amortization | | (142,881) | | | (168,817) | | | (65,100) | | | — | | | — | | | (376,798) | | | General and administrative | | — | | | — | | | — | | | — | | | (50,483) | | | (50,483) | | | Transaction and merger-related costs | | (148) | | | (158) | | | (497) | | | — | | | (2,259) | | | (3,062) | | | Impairments and loan loss reserves, net | | — | | | — | | | — | | | (394) | | | — | | | (394) | | | Gain (loss) on sales of real estate, net | | 21,312 | | | 60,498 | | | — | | | 4,653 | | | — | | | 86,463 | | | | | | | | | | | | | | | | Other income (expense), net | | 439 | | | 2 | | | 7 | | | (19) | | | 2,298 | | | 2,727 | | | Less: Government grant income | | — | | | — | | | (184) | | | — | | | — | | | (184) | | | Less: Healthpeak’s share of unconsolidated joint venture NOI | | (903) | | | (2,063) | | | — | | | (11,212) | | | — | | | (14,178) | | | Plus: Noncontrolling interests’ share of consolidated joint venture NOI | | 12,624 | | | 219 | | | — | | | — | | | — | | | 12,843 | | | Income (loss) before income taxes and equity income (loss) from unconsolidated joint ventures | | 118,756 | | | 207,898 | | | (14,740) | | | 15,682 | | | (139,997) | | | 187,599 | | | Income tax benefit (expense) | | — | | | — | | | — | | | — | | | (1,438) | | | (1,438) | | | Equity income (loss) from unconsolidated joint ventures | | 374 | | | 1,911 | | | — | | | 2,260 | | | — | | | 4,545 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Net income (loss) | | $ | 119,130 | | | $ | 209,809 | | | $ | (14,740) | | | $ | 17,942 | | | $ | (141,435) | | | $ | 190,706 | |
______________________________________________________________________________(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.
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