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Segment Disclosures | 3 Months Ended
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Mar. 31, 2025
Segment Reporting [Abstract] |
Segment Disclosures | Segment Disclosures The Company’s operating segments, based on how its CODM, the President and Chief Executive Officer, evaluates the business and allocates resources, are as follows: (i) outpatient medical, (ii) lab, (iii) CCRC, (iv) an interest in an unconsolidated joint venture that owns 19 senior housing assets (the “SWF SH JV”), and (v) loans receivable. The Company’s reportable segments, as determined in accordance with ASC 280, Segment Reporting, are as follows: (i) outpatient medical, (ii) lab, and (iii) CCRC. The SWF SH JV and loans receivable are non-reportable segments that have been presented on a combined 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, 2024 filed with the SEC, as updated by Note 2 herein. The CODM evaluates performance based on property Adjusted NOI. Adjusted NOI is used to evaluate performance 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. Adjusted NOI represents 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 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. Segment assets consist of real estate assets, intangible assets, and right-of-use assets. 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, other assets, and real estate assets held for sale. Reportable segment asset information is not provided to the CODM as the CODM does not use segment asset information to evaluate the business and allocate resources. The following tables summarize information for the reportable segments for the three months ended March 31, 2025 (in thousands):
|  | Outpatient Medical |  | Lab |  | CCRC |  |  |  |  |  | Total
Total revenues |  | $ | 320,548 |  |  | $ | 217,593 |  |  | $ | 148,927 |  |  |  |  |  |  | $ | 687,068 |
Healthpeak’s share of unconsolidated joint venture total revenues |  | 7,259 |  |  | 2,800 |  |  | — |  |  |  |  |  |  | 10,059 |
Noncontrolling interests’ share of consolidated joint venture total revenues |  | (9,973) |  |  | — |  |  | — |  |  |  |  |  |  | (9,973) |
Operating expenses(1) |  | (105,225) |  |  | (57,658) |  |  | (110,260) |  |  |  |  |  |  | (273,143) |
Healthpeak’s share of unconsolidated joint venture operating expenses |  | (2,994) |  |  | (1,666) |  |  | — |  |  |  |  |  |  | (4,660) |
Noncontrolling interests’ share of consolidated joint venture operating expenses |  | 2,778 |  |  | — |  |  | — |  |  |  |  |  |  | 2,778 |
Adjustments to NOI(2) |  | (12,082) |  |  | (14,836) |  |  | — |  |  |  |  |  |  | (26,918) |
Adjusted NOI for reportable segments |  | $ | 200,311 |  |  | $ | 146,233 |  |  | $ | 38,667 |  |  |  |  |  |  | $ | 385,211 |
Plus: Adjustments to NOI(2) |  |  |  |  |  |  |  |  |  |  |  | 26,918 |
Interest income and other |  |  |  |  |  |  |  |  |  |  |  | 15,821 |
Interest expense |  |  |  |  |  |  |  |  |  |  |  | (72,693) |
Depreciation and amortization |  |  |  |  |  |  |  |  |  |  |  | (268,546) |
General and administrative |  |  |  |  |  |  |  |  |  |  |  | (26,118) |
Transaction and merger-related costs |  |  |  |  |  |  |  |  |  |  |  | (5,534) |
Impairments and loan loss reserves, net |  |  |  |  |  |  |  |  |  |  |  | 3,562 |
Other income (expense), net |  |  |  |  |  |  |  |  |  |  |  | (6,126) |
Less: Healthpeak’s share of unconsolidated joint venture Adjusted NOI |  |  |  |  |  |  |  |  |  |  |  | (5,399) |
Plus: Noncontrolling interests’ share of consolidated joint venture Adjusted NOI |  |  |  |  |  |  |  |  |  |  |  | 7,195 |
Income (loss) before income taxes and equity income (loss) from unconsolidated joint ventures |  |  |  |  |  | $ | 54,291 |
_______________________________________ (1)See reconciliation of significant expense categories below. (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. The following table summarizes the Company’s significant expense categories by reportable segment for the three months ended March 31, 2025 (in thousands):
|  | Outpatient Medical |  | Lab |  | CCRC
Compensation and property management |  | $ | 14,629 |  |  | $ | 8,310 |  |  | $ | 70,003 |
Food |  | — |  |  | — |  |  | 6,442 |
Real estate taxes |  | 24,079 |  |  | 19,021 |  |  | 4,508 |
Repairs and maintenance |  | 15,503 |  |  | 7,358 |  |  | 4,846 |
Utilities |  | 17,912 |  |  | 10,423 |  |  | 5,663 |
Other segment items(1) |  | 33,102 |  |  | 12,546 |  |  | 18,798 |
Operating expenses |  | $ | 105,225 |  |  | $ | 57,658 |  |  | $ | 110,260 |
_______________________________________ (1)Other segment items for each segment include: •Outpatient medical and lab – (i) Cleaning expense, (ii) ground rent expense, (iii) insurance expense, (iv) roads and grounds expense, (v) security expense, and (vi) other administrative expense. •CCRC – (i) Cleaning and supplies, (ii) insurance expense, (iii) marketing expense, and (iv) other administrative expense. The following tables summarize information for the reportable segments for the three months ended March 31, 2024 (in thousands):
|  | Outpatient Medical |  | Lab |  | CCRC |  |  |  |  |  | Total |
Total revenues |  | $ | 238,272 |  |  | $ | 223,761 |  |  | $ | 138,776 |  |  |  |  |  |  | $ | 600,809 |  |
Healthpeak’s share of unconsolidated joint venture total revenues |  | 2,739 |  |  | 4,861 |  |  | — |  |  |  |  |  |  | 7,600 |  |
Noncontrolling interests’ share of consolidated joint venture total revenues |  | (8,876) |  |  | (163) |  |  | — |  |  |  |  |  |  | (9,039) |  |
Operating expenses(1) |  | (81,268) |  |  | (56,840) |  |  | (105,621) |  |  |  |  |  |  | (243,729) |  |
Healthpeak’s share of unconsolidated joint venture operating expenses |  | (1,083) |  |  | (1,324) |  |  | — |  |  |  |  |  |  | (2,407) |  |
Noncontrolling interests’ share of consolidated joint venture operating expenses |  | 2,430 |  |  | 43 |  |  | — |  |  |  |  |  |  | 2,473 |  |
Adjustments to NOI(2) |  | (6,127) |  |  | (21,435) |  |  | — |  |  |  |  |  |  | (27,562) |  |
Adjusted NOI for reportable segments |  | $ | 146,087 |  |  | $ | 148,903 |  |  | $ | 33,155 |  |  |  |  |  |  | $ | 328,145 |  |
Plus: Adjustments to NOI(2) |  |  |  |  |  |  |  |  |  |  |  | 27,562 |  |
Interest income and other |  |  |  |  |  |  |  |  |  |  |  | 5,751 |  |
Interest expense |  |  |  |  |  |  |  |  |  |  |  | (60,907) |  |
Depreciation and amortization |  |  |  |  |  |  |  |  |  |  |  | (219,219) |  |
General and administrative |  |  |  |  |  |  |  |  |  |  |  | (23,299) |  |
Transaction and merger-related costs |  |  |  |  |  |  |  |  |  |  |  | (107,220) |  |
Impairments and loan loss reserves, net |  |  |  |  |  |  |  |  |  |  |  | (11,458) |  |
Gain (loss) on sales of real estate, net |  |  |  |  |  |  |  |  |  |  |  | 3,255 |  |
Other income (expense), net |  |  |  |  |  |  |  |  |  |  |  | 78,516 |  |
Less: Healthpeak’s share of unconsolidated joint venture Adjusted NOI |  |  |  |  |  |  |  |  |  |  |  | (5,193) |  |
Plus: Noncontrolling interests’ share of consolidated joint venture Adjusted NOI |  |  |  |  |  |  |  |  |  |  |  | 6,566 |  |
Income (loss) before income taxes and equity income (loss) from unconsolidated joint ventures |  |  |  |  |  | $ | 22,499 |  |
_______________________________________ (1)See reconciliation of significant expense categories below. (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. The following table summarizes the Company’s significant expense categories by reportable segment for the three months ended March 31, 2024 (in thousands):
|  | Outpatient Medical |  | Lab |  | CCRC
Compensation and property management |  | $ | 11,097 |  |  | $ | 8,377 |  |  | $ | 67,622 |
Food |  | — |  |  | — |  |  | 6,463 |
Real estate taxes |  | 20,128 |  |  | 19,897 |  |  | 4,301 |
Repairs and maintenance |  | 11,591 |  |  | 6,611 |  |  | 4,614 |
Utilities |  | 12,887 |  |  | 11,184 |  |  | 5,336 |
Other segment items(1) |  | 25,565 |  |  | 10,771 |  |  | 17,285 |
Operating expenses |  | $ | 81,268 |  |  | $ | 56,840 |  |  | $ | 105,621 |
_______________________________________ (1)Other segment items for each segment include: •Outpatient medical and lab – (i) Cleaning expense, (ii) ground rent expense, (iii) insurance expense, (iv) roads and grounds expense, (v) security expense, and (vi) other administrative expense. •CCRC – (i) Cleaning and supplies, (ii) insurance expense, (iii) marketing expense, and (iv) other administrative expense. The following table summarizes the Company’s revenues by reportable segment (in thousands):
|  | Three Months Ended March 31, |  |
Segment |  | 2025 |  | 2024 |  |  |  |
Outpatient medical |  | $ | 320,548 |  |  | $ | 238,272 |  |  |  |  |
Lab |  | 217,593 |  |  | 223,761 |  |  |  |  |
CCRC |  | 148,927 |  |  | 138,776 |  |  |  |  |
Total revenues for reportable segments |  | 687,068 |  |  | 600,809 |  |  |  |  |
Interest income and other |  | 15,821 |  |  | 5,751 |  |  |  |  |
Total revenues |  | $ | 702,889 |  |  | $ | 606,560 |  |  |  |  |

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- Definition The entire disclosure for reporting segments including data and tables. 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