v3.25.2
Segment Disclosures
 6 Months Ended
Jun. 30, 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”), (v) loans receivable, and (vi) a preferred equity investment. 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, loans receivable, and preferred equity investment 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 table summarizes financial information for the reportable segments for the three months ended June 30, 2025 (in thousands):
Outpatient MedicalLabCCRCTotal
Total revenues$320,482 $209,205 $148,855 $678,542 
Healthpeak’s share of unconsolidated joint venture total revenues7,183 7,358 — 14,541 
Noncontrolling interests’ share of consolidated joint venture total revenues(10,020)— — (10,020)
Operating expenses(1)
(105,331)(59,401)(111,449)(276,181)
Healthpeak’s share of unconsolidated joint venture operating expenses(2,695)(1,898)— (4,593)
Noncontrolling interests’ share of consolidated joint venture operating expenses2,801 — — 2,801 
Adjustments to NOI(2)
(10,813)(12,488)(843)(24,144)
Adjusted NOI for reportable segments$201,607 $142,776 $36,563 $380,946 
Plus: Adjustments to NOI(2)
24,144 
Interest income and other15,806 
Interest expense(75,063)
Depreciation and amortization(265,916)
General and administrative(20,764)
Transaction and merger-related costs(10,215)
Impairments and loan loss reserves, net(3,499)
Gain (loss) on sales of real estate, net1,636 
Other income (expense), net(4,692)
Less: Healthpeak’s share of unconsolidated joint venture Adjusted NOI(9,948)
Plus: Noncontrolling interests’ share of consolidated joint venture Adjusted NOI7,219 
Income (loss) before income taxes and equity income (loss) from unconsolidated joint ventures$39,654 
_______________________________________
(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 June 30, 2025 (in thousands):
Outpatient MedicalLabCCRC
Compensation and property management$15,009 $8,277 $71,745 
Food— — 6,782 
Real estate taxes25,300 18,989 4,324 
Repairs and maintenance15,389 8,202 4,873 
Utilities18,332 10,687 5,719 
Other segment items(1)
31,301 13,246 18,006 
Operating expenses$105,331 $59,401 $111,449 
_______________________________________
(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 financial information for the reportable segments for the three months ended June 30, 2024 (in thousands):
 Outpatient MedicalLabCCRCTotal
Total revenues$332,515 $214,266 $140,891 $687,672 
Healthpeak’s share of unconsolidated joint venture total revenues6,903 4,301 — 11,204 
Noncontrolling interests’ share of consolidated joint venture total revenues(9,341)(33)— (9,374)
Operating expenses(1)
(111,702)(56,656)(105,469)(273,827)
Healthpeak’s share of unconsolidated joint venture operating expenses(2,464)(1,528)— (3,992)
Noncontrolling interests’ share of consolidated joint venture operating expenses2,609 9 — 2,618 
Adjustments to NOI(2)
(10,430)(13,289)(1,739)(25,458)
Adjusted NOI for reportable segments$208,090 $147,070 $33,683 $388,843 
Plus: Adjustments to NOI(2)
25,458 
Interest income and other7,832 
Interest expense(74,910)
Depreciation and amortization(283,498)
General and administrative(26,718)
Transaction and merger-related costs(7,759)
Impairments and loan loss reserves, net553 
Gain (loss) on sales of real estate, net122,044 
Other income (expense), net4,004 
Less: Healthpeak’s share of unconsolidated joint venture Adjusted NOI(7,212)
Plus: Noncontrolling interests’ share of consolidated joint venture Adjusted NOI6,756 
Income (loss) before income taxes and equity income (loss) from unconsolidated joint ventures$155,393 
_______________________________________
(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 June 30, 2024 (in thousands):
Outpatient MedicalLabCCRC
Compensation and property management$15,177 $8,045 $68,485 
Food— — 6,605 
Real estate taxes27,806 18,808 4,276 
Repairs and maintenance16,504 7,206 4,578 
Utilities18,796 10,913 5,373 
Other segment items(1)
33,419 11,684 16,152 
Operating expenses$111,702 $56,656 $105,469 
_______________________________________
(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 financial information for the reportable segments for the six months ended June 30, 2025 (in thousands):
 Outpatient MedicalLabCCRCTotal
Total revenues$641,030 $426,798 $297,782 $1,365,610 
Healthpeak’s share of unconsolidated joint venture total revenues14,442 10,158 — 24,600 
Noncontrolling interests’ share of consolidated joint venture total revenues(19,993)— — (19,993)
Operating expenses(1)
(210,557)(117,059)(221,708)(549,324)
Healthpeak’s share of unconsolidated joint venture operating expenses(5,689)(3,564)— (9,253)
Noncontrolling interests’ share of consolidated joint venture operating expenses5,580 — — 5,580 
Adjustments to NOI(2)
(22,895)(27,325)(843)(51,063)
Adjusted NOI for reportable segments$401,918 $289,008 $75,231 $766,157 
Plus: Adjustments to NOI(2)
51,063 
Interest income and other31,627 
Interest expense(147,756)
Depreciation and amortization(534,462)
General and administrative(46,882)
Transaction and merger-related costs(15,749)
Impairments and loan loss reserves, net63 
Gain (loss) on sales of real estate, net1,636 
Other income (expense), net(10,818)
Less: Healthpeak’s share of unconsolidated joint venture Adjusted NOI(15,347)
Plus: Noncontrolling interests’ share of consolidated joint venture Adjusted NOI14,413 
Income (loss) before income taxes and equity income (loss) from unconsolidated joint ventures$93,945 
_______________________________________
(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 six months ended June 30, 2025 (in thousands):
Outpatient MedicalLabCCRC
Compensation and property management$29,638 $16,587 $141,748 
Food— — 13,225 
Real estate taxes49,379 38,010 8,832 
Repairs and maintenance30,892 15,560 9,719 
Utilities36,244 21,110 11,382 
Other segment items(1)
64,404 25,792 36,802 
Operating expenses$210,557 $117,059 $221,708 
_______________________________________
(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 financial information for the reportable segments for the six months ended June 30, 2024 (in thousands):
 Outpatient MedicalLabCCRCTotal
Total revenues$570,787 $438,027 $279,667 $1,288,481 
Healthpeak’s share of unconsolidated joint venture total revenues9,642 9,162 — 18,804 
Noncontrolling interests’ share of consolidated joint venture total revenues(18,217)(196)— (18,413)
Operating expenses(1)
(192,970)(113,496)(211,090)(517,556)
Healthpeak’s share of unconsolidated joint venture operating expenses(3,547)(2,852)— (6,399)
Noncontrolling interests’ share of consolidated joint venture operating expenses5,039 52 — 5,091 
Adjustments to NOI(2)
(16,556)(34,724)(1,739)(53,019)
Adjusted NOI for reportable segments$354,178 $295,973 $66,838 $716,989 
Plus: Adjustments to NOI(2)
53,019 
Interest income and other13,583 
Interest expense(135,817)
Depreciation and amortization(502,717)
General and administrative(50,017)
Transaction and merger-related costs(114,979)
Impairments and loan loss reserves, net(10,905)
Gain (loss) on sales of real estate, net125,299 
Other income (expense), net82,520 
Less: Healthpeak’s share of unconsolidated joint venture Adjusted NOI(12,405)
Plus: Noncontrolling interests’ share of consolidated joint venture Adjusted NOI13,322 
Income (loss) before income taxes and equity income (loss) from unconsolidated joint ventures$177,892 
_______________________________________
(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 six months ended June 30, 2024 (in thousands):
Outpatient MedicalLabCCRC
Compensation and property management$26,275 $16,422 $136,107 
Food— — 13,069 
Real estate taxes47,934 38,705 8,577 
Repairs and maintenance28,096 13,818 9,192 
Utilities31,682 22,097 10,708 
Other segment items(1)
58,983 22,454 33,437 
Operating expenses$192,970 $113,496 $211,090 
_______________________________________
(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
June 30,		Six Months Ended
June 30,
Segment2025202420252024
Outpatient medical
$320,482 $332,515 $641,030 $570,787 
Lab
209,205 214,266 426,798 438,027 
CCRC148,855 140,891 297,782 279,667 
Total revenues for reportable segments
678,542 687,672 1,365,610 1,288,481 
Interest income and other
15,806 7,832 31,627 13,583 
Total revenues$694,348 $695,504 $1,397,237 $1,302,064