XML 44 R21.htm IDEA: XBRL DOCUMENT
v3.23.1

Segment Disclosures | 3 Months Ended
--- | ---
Mar. 31, 2023
Segment Reporting [Abstract] |
Segment Disclosures | Segment Disclosures The Company’s reportable segments, based on how its chief operating decision maker (“CODM”) evaluates the business and allocates 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. 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, 2022 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 debt securities, other assets, real estate assets held for sale and discontinued operations, and liabilities related to assets held for sale. The following tables summarize information for the reportable segments (in thousands): For the three months ended March 31, 2023:
|  | Life Science |  | Medical Office |  | CCRC |  | Other Non-reportable |  | Corporate Non-segment |  | Total
Total revenues |  | $ | 205,464 |  |  | $ | 186,967 |  |  | $ | 127,084 |  |  | $ | 6,163 |  |  | $ | — |  |  | $ | 525,678 |
Government grant income(1) |  | — |  |  | — |  |  | 137 |  |  | — |  |  | — |  |  | 137 |
Less: Interest income |  | — |  |  | — |  |  | — |  |  | (6,163) |  |  | — |  |  | (6,163) |
Healthpeak’s share of unconsolidated joint venture total revenues |  | 2,165 |  |  | 745 |  |  | — |  |  | 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 |  | (143) |  |  | (8,963) |  |  | — |  |  | — |  |  | — |  |  | (9,106) |
Operating expenses |  | (57,566) |  |  | (64,398) |  |  | (101,124) |  |  | — |  |  | — |  |  | (223,088) |
Healthpeak’s share of unconsolidated joint venture operating expenses |  | (1,182) |  |  | (305) |  |  | — |  |  | (15,006) |  |  | — |  |  | (16,493) |
Noncontrolling interests’ share of consolidated joint venture operating expenses |  | 40 |  |  | 2,595 |  |  | — |  |  | — |  |  | — |  |  | 2,635 |
Adjustments to NOI(2) |  | (832) |  |  | (3,821) |  |  | 50 |  |  | (21) |  |  | — |  |  | (4,624) |
Adjusted NOI |  | 147,946 |  |  | 112,820 |  |  | 26,147 |  |  | 5,547 |  |  | — |  |  | 292,460 |
Plus: Adjustments to NOI(2) |  | 832 |  |  | 3,821 |  |  | (50) |  |  | 21 |  |  | — |  |  | 4,624 |
Interest income |  | — |  |  | — |  |  | — |  |  | 6,163 |  |  | — |  |  | 6,163 |
Interest expense |  | — |  |  | (1,920) |  |  | (1,816) |  |  | — |  |  | (44,227) |  |  | (47,963) |
Depreciation and amortization |  | (75,582) |  |  | (71,158) |  |  | (32,485) |  |  | — |  |  | — |  |  | (179,225) |
General and administrative |  | — |  |  | — |  |  | — |  |  | — |  |  | (24,547) |  |  | (24,547) |
Transaction costs |  | (158) |  |  | (132) |  |  | (219) |  |  | — |  |  | (1,916) |  |  | (2,425) |
Impairments and loan loss reserves, net |  | — |  |  | — |  |  | — |  |  | 2,213 |  |  | — |  |  | 2,213 |
Gain (loss) on sales of real estate, net |  | 60,498 |  |  | 21,312 |  |  | — |  |  | (232) |  |  | — |  |  | 81,578 |
Other income (expense), net |  | 4 |  |  | 204 |  |  | (667) |  |  | — |  |  | 1,231 |  |  | 772 |
Less: Government grant income |  | — |  |  | — |  |  | (137) |  |  | — |  |  | — |  |  | (137) |
Less: Healthpeak’s share of unconsolidated joint venture NOI |  | (983) |  |  | (440) |  |  | — |  |  | (5,568) |  |  | — |  |  | (6,991) |
Plus: Noncontrolling interests’ share of consolidated joint venture NOI |  | 103 |  |  | 6,368 |  |  | — |  |  | — |  |  | — |  |  | 6,471 |
Income (loss) before income taxes and equity income (loss) from unconsolidated joint ventures |  | 132,660 |  |  | 70,875 |  |  | (9,227) |  |  | 8,144 |  |  | (69,459) |  |  | 132,993 |
Income tax benefit (expense) |  | — |  |  | — |  |  | — |  |  | — |  |  | (302) |  |  | (302) |
Equity income (loss) from unconsolidated joint ventures |  | 598 |  |  | 189 |  |  | — |  |  | 1,029 |  |  | — |  |  | 1,816 |
Income (loss) from continuing operations |  | 133,258 |  |  | 71,064 |  |  | (9,227) |  |  | 9,173 |  |  | (69,761) |  |  | 134,507 |
Income (loss) from discontinued operations |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Net income (loss) |  | $ | 133,258 |  |  | $ | 71,064 |  |  | $ | (9,227) |  |  | $ | 9,173 |  |  | $ | (69,761) |  |  | $ | 134,507 |
______________________________________________________________________________ (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 March 31, 2022:
|  | Life Science |  | Medical Office |  | CCRC |  | Other Non-reportable |  | Corporate Non-segment |  | Total
Total revenues |  | $ | 194,055 |  |  | $ | 177,263 |  |  | $ | 121,560 |  |  | $ | 5,494 |  |  | $ | — |  |  | $ | 498,372 |
Government grant income(1) |  | — |  |  | — |  |  | 6,552 |  |  | — |  |  | — |  |  | 6,552 |
Less: Interest income |  | — |  |  | — |  |  | — |  |  | (5,494) |  |  | — |  |  | (5,494) |
Healthpeak’s share of unconsolidated joint venture total revenues |  | 1,431 |  |  | 732 |  |  | — |  |  | 18,045 |  |  | — |  |  | 20,208 |
Healthpeak’s share of unconsolidated joint venture government grant income |  | — |  |  | — |  |  | 333 |  |  | 315 |  |  | — |  |  | 648 |
Noncontrolling interests’ share of consolidated joint venture total revenues |  | (57) |  |  | (8,820) |  |  | — |  |  | — |  |  | — |  |  | (8,877) |
Operating expenses |  | (48,189) |  |  | (61,170) |  |  | (97,888) |  |  | — |  |  | — |  |  | (207,247) |
Healthpeak’s share of unconsolidated joint venture operating expenses |  | (483) |  |  | (299) |  |  | — |  |  | (14,055) |  |  | — |  |  | (14,837) |
Noncontrolling interests’ share of consolidated joint venture operating expenses |  | 19 |  |  | 2,602 |  |  | — |  |  | — |  |  | — |  |  | 2,621 |
Adjustments to NOI(2) |  | (14,112) |  |  | (3,546) |  |  | — |  |  | (8) |  |  | — |  |  | (17,666) |
Adjusted NOI |  | 132,664 |  |  | 106,762 |  |  | 30,557 |  |  | 4,297 |  |  | — |  |  | 274,280 |
Plus: Adjustments to NOI(2) |  | 14,112 |  |  | 3,546 |  |  | — |  |  | 8 |  |  | — |  |  | 17,666 |
Interest income |  | — |  |  | — |  |  | — |  |  | 5,494 |  |  | — |  |  | 5,494 |
Interest expense |  | — |  |  | (1,036) |  |  | (1,865) |  |  | — |  |  | (34,685) |  |  | (37,586) |
Depreciation and amortization |  | (78,138) |  |  | (67,773) |  |  | (31,822) |  |  | — |  |  | — |  |  | (177,733) |
General and administrative |  | — |  |  | — |  |  | — |  |  | — |  |  | (23,831) |  |  | (23,831) |
Transaction costs |  | (292) |  |  | (4) |  |  | — |  |  | — |  |  | — |  |  | (296) |
Impairments and loan loss reserves, net |  | — |  |  | — |  |  | — |  |  | (132) |  |  | — |  |  | (132) |
Gain (loss) on sales of real estate, net |  | 3,856 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 3,856 |
Other income (expense), net |  | (9) |  |  | 10,937 |  |  | 6,511 |  |  | (32) |  |  | 909 |  |  | 18,316 |
Less: Government grant income |  | — |  |  | — |  |  | (6,552) |  |  | — |  |  | — |  |  | (6,552) |
Less: Healthpeak’s share of unconsolidated joint venture NOI |  | (948) |  |  | (433) |  |  | (333) |  |  | (4,305) |  |  | — |  |  | (6,019) |
Plus: Noncontrolling interests’ share of consolidated joint venture NOI |  | 38 |  |  | 6,218 |  |  | — |  |  | — |  |  | — |  |  | 6,256 |
Income (loss) before income taxes and equity income (loss) from unconsolidated joint ventures |  | 71,283 |  |  | 58,217 |  |  | (3,504) |  |  | 5,330 |  |  | (57,607) |  |  | 73,719 |
Income tax benefit (expense) |  | — |  |  | — |  |  | — |  |  | — |  |  | (777) |  |  | (777) |
Equity income (loss) from unconsolidated joint ventures |  | 966 |  |  | 200 |  |  | 539 |  |  | 379 |  |  | — |  |  | 2,084 |
Income (loss) from continuing operations |  | 72,249 |  |  | 58,417 |  |  | (2,965) |  |  | 5,709 |  |  | (58,384) |  |  | 75,026 |
Income (loss) from discontinued operations |  | — |  |  | — |  |  | — |  |  | — |  |  | 317 |  |  | 317 |
Net income (loss) |  | $ | 72,249 |  |  | $ | 58,417 |  |  | $ | (2,965) |  |  | $ | 5,709 |  |  | $ | (58,067) |  |  | $ | 75,343 |
______________________________________________________________________________ (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, 6, 7, and 15 for significant transactions impacting the Company’s segment assets during the periods presented.

X
- References No definition available. + Details
Name: | us-gaap_SegmentReportingAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8924-108599 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8981-108599 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (a) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8721-108599 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9031-108599 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (f) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (e) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8844-108599 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9038-108599 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (d) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8736-108599 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9054-108599 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 15 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8657-108599 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (b) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8721-108599 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI https://asc.fasb.org/topic&trid=2134510 + Details
Name: | us-gaap_SegmentReportingDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration