peak-20201102

Exhibit 99.1

Healthpeak PropertiesTM Reports Third Quarter 2020 Results

IRVINE, Calif., November 2, 2020 -- Healthpeak Properties, Inc. (NYSE: PEAK) today announced results for the third quarter ended September 30, 2020. For the quarter, we generated a net loss of ($0.12) per share, NAREIT FFO of $0.31 per share, FFO as Adjusted of $0.40 per share and blended Total Same-Store Portfolio Cash NOI results of 2.8%.

THIRD QUARTER 2020 FINANCIAL PERFORMANCE AND RECENT HIGHLIGHTS

–The COVID-19 pandemic continues to evolve. In order to provide more up-to-date information about the impact of COVID-19 on Healthpeak, we have provided certain key operating metrics through October 2020 in a separate presentation posted on the investor relations section of our website at https://ir.healthpeak.com/investor-presentations.

–Dispositions:

▪In various stages on the sales of more than $4 billion of SHOP and NNN transactions:

◦In July - November 2020, closed on the sales of 14 SHOP and NNN assets generating proceeds of approximately $100 million.

◦Approximately $1.5 billion under binding and non-binding purchase agreements across 8 separate transactions.

◦Approximately $2 billion under letters of intent across 6 separate transactions.

◦The majority of the remaining SHOP and NNN assets are actively being marketed for sale.

▪If the various sales are completed, we expect:

◦SHOP assets: a Trailing Twelve Month Pre-COVID (04/01/19 - 03/31/20) weighted average cash capitalization rate in the high 5% range and a third quarter annualized weighted average cash capitalization rate of approximately 3%.

◦NNN assets: a third quarter annualized weighted average lease yield in the high 7% range and EBITDAR yield in the high 5% range.

▪During the quarter, closed on the sales of $15 million of medical office and other assets.

–Acquisitions:

▪In October 2020, executed a definitive agreement to acquire Cambridge Discovery Park, a 607,000 square foot life science campus in the West Cambridge submarket of Boston, MA for $664 million in an off-market transaction, which represents stabilized cash and GAAP capitalization rates of 5% and 6.5%, respectively. The site includes a future densification opportunity of approximately 100,000 square feet.

▪In October 2020, executed a definitive agreement to acquire approximately 12 acres of land for $128 million in an off-market transaction. The acquisition sites are located in South San Francisco, CA, adjacent to two sites currently held by Healthpeak as land for future development: Forbes Research Center ("Forbes") and Modular Labs III. Healthpeak intends to entitle the acquisition sites for a new development of at least 500,000 square feet, which could join with our adjacent sites to create a multi-phase, scalable development campus totaling 1 million square feet or more.

▪In October 2020, acquired a 7-property medical office portfolio, totaling 439,000 square feet, for $169 million, which represents year-one cash and GAAP capitalization rates of 5.5% and 5.6%, respectively. Six of the seven properties are on-campus and all the properties are anchored by a #1 or #2 local health system.

▪In July 2020, acquired a two-story, 107,000 square foot medical office building in Scottsdale, AZ for $27 million in an off-market transaction, which represents year-one cash and GAAP capitalization rates of 7.1% and 7.7%, respectively.

–Development:

▪In September 2020, signed a 10-year 118,000 square feet lease at our Boardwalk development project in San Diego, CA. The development is now 100% pre-leased, with initial occupancy expected in late 2021.

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▪In September 2020, commenced construction on 101 CambridgePark Drive, a 159,000 square foot life science development project, located in the West Cambridge submarket of Boston, MA, with estimated total spend of approximately $174 million.

▪In September 2020, delivered a 119,000 square foot, six-story medical office building in Brentwood, TN. The development was 49% leased to HCA Healthcare ("HCA") upon delivery.

▪In August 2020, delivered a 70,000 square foot, four-story Class A medical office building located on the Ogden Regional Medical Center campus in Ogden, Utah. The development was 69% leased upon delivery and is 78% leased today.

–As of October 30, 2020, had $2.6 billion of liquidity including $2.4 billion of availability on Healthpeak’s $2.5 billion revolving credit facility and approximately $150 million of cash and cash equivalents.

–Replaced Board of Directors age 75 retirement policy with a Director term limit of 15 years.

–Declared quarterly common stock cash dividend of $0.37 per share to be paid on November 23, 2020, to stockholders of record as of the close of business on November 12, 2020.

–Established new corporate headquarters in Denver, Colorado.

–Received “Prime” rating from ISS ESG Corporate Rating, recognizing top ESG performance within our sector; nominated for the Corporate Governance Awards 2020 - Best Proxy Statement (Large Cap Company) by Corporate Secretary and IR Magazine; and for the ninth consecutive year, named a constituent in the FTSE4Good Index.

THIRD QUARTER COMPARISON


	Three Months Ended September 30, 2020				Three Months Ended September 30, 2019
(in thousands, except per share amounts)	Amount		Per Share		Amount		Per Share
Net income (loss), diluted	$	(63,768)	$	(0.12)	$	(46,249)	$	(0.09)
NAREIT FFO, diluted	164,603		0.31		183,266		0.37
FFO as Adjusted, diluted	215,381		0.40		222,160		0.44
AFFO, diluted	183,791				191,922

NAREIT FFO, FFO as Adjusted, AFFO, Same-Store Cash NOI, Net Debt and Adjusted EBITDAre are supplemental non-GAAP financial measures that we believe are useful in evaluating the operating performance and financial position of real estate investment trusts (see the "Funds From Operations" and "Adjusted Funds From Operations" sections of this release for additional information). See "September 30, 2020 Discussion and Reconciliation of Non-GAAP Financial Measures” for definitions, discussions of their uses and inherent limitations, and reconciliations to the most directly comparable financial measures calculated and presented in accordance with GAAP on the Investor Relations section of our website at http://ir.healthpeak.com/quarterly-results.

SAME-STORE ("SS") OPERATING SUMMARY

The table below outlines the year-over-year three-month and year-to-date SS Cash NOI growth:


Year-Over-Year Total SS Portfolio Cash NOI Growth
	Three Month	Year-To-Date	% of SS
Medical office	3.3%	2.3%	46.8%
Life science	5.5%	5.7%	38.5%
Senior housing(1)(2)	(6.3)%	(5.8)%	10.5%
Other non-reportable segments ("Other")	0.8%	3.0%	4.1%
Total Portfolio(1)(2)	2.8%	2.7%	100.0%

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(1)Same-Store year-over-year three-month Portfolio Cash NOI growth includes identifiable COVID-19 expenses of $0.6 million in the SHOP portfolio.

(2)Same-Store year-over-year year-to-date Portfolio Cash NOI growth includes identifiable COVID-19 expenses of $1.5 million in the SHOP portfolio.

ACQUISITIONS

CAMBRIDGE DISCOVERY PARK ACQUISITION

In October 2020, executed a definitive agreement to acquire Cambridge Discovery Park, a four-building Class A life science and research campus, for a $664 million purchase price ($720 million gross valuation), which represents stabilized cash and GAAP capitalization rates of 5% and 6.5%, respectively. In conjunction with the transaction, Healthpeak entered into a 49% / 51% minority joint venture on 1 of the 4 buildings with The Bulfinch Companies, Inc., a well-established Boston-based owner, manager and developer of life science and medical office real estate. Healthpeak will own an 100% interest in the other 3 buildings.

The 607,000 square foot campus is located walking distance from Healthpeak's CambridgePark Drive holdings in the West Cambridge submarket of Boston, MA. The campus is 94% leased to a diversified tenant base of biotechnology, pharmaceutical and research companies with a weighted average remaining lease term of approximately 7.5 years. The site also includes a future densification opportunity of approximately 100,000 square feet.

The transaction strengthens Healthpeak's leading market share in West Cambridge, and expands our greater Boston footprint to 2.4 million square feet (including the 101 CambridgePark Drive development). The transaction is expected to close in the fourth quarter 2020.

SOUTH SAN FRANCISCO LAND SITE ACQUISITION

In October 2020, executed definitive agreements to acquire approximately 12 acres of land in South San Francisco for $128 million. Located directly adjacent to Healthpeak’s Forbes development site and Healthpeak's Modular Labs III development site, the assemblage includes sites that are currently utilized as industrial buildings that are subject to short-term leases, as well as a vacant land parcel.

Upon closing of the acquisition, Healthpeak intends to entitle the sites for future development as a life science campus that, when combined with Healthpeak’s Forbes and Modular Labs III sites, could allow for a campus with an estimated minimum size of approximately 1 million square feet over 20 acres. The future developments will strengthen Healthpeak’s leading market position in South San Francisco and provide an opportunity to build another campus of significant scale to meet the growth needs of Healthpeak’s existing and potential tenants.

MIDWEST MEDICAL OFFICE PORTFOLIO ACQUISITION

In October 2020, acquired a 7-property medical office portfolio, totaling 439,000 square feet, for $169 million, which represents year-one cash and GAAP capitalization rates of 5.5% and 5.6%, respectively. The properties are located across 3 states: Indiana (5), Missouri (1) and Illinois (1). The portfolio is 92% leased with a weighted average lease term of 4.1 years and 2.5% average annual escalators. Additionally, 6 of the 7 properties are located on-campus with a physical connection to the host hospital.

The transaction supports Healthpeak’s MOB growth strategy of investing in on-campus and highly anchored properties affiliated with #1 or #2 local hospitals and health systems.

SCOTTSDALE GATEWAY ACQUISITION

In July 2020, acquired a two-story, 107,000 square foot medical office building in Scottsdale, AZ for $27 million, which represents year-one cash and GAAP capitalization rates of 7.1% and 7.7%, respectively.

The property is currently 96% leased to four tenants and has a weighted average remaining lease term of 5 years with 2% average annual escalators.

Located adjacent to the HonorHealth Scottsdale Shea Medical Center, where Healthpeak already owns 173,000 square feet, the transaction will expand Healthpeak’s presence to approximately 800,000 square feet in the Phoenix MSA.

DEVELOPMENT UPDATES

101 CAMBRIDGEPARK DRIVE

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In September 2020, Healthpeak and its joint venture partner, King Street Properties, commenced construction on 101 CambridgePark Drive, a $174 million life science development project located in the West Cambridge submarket of Boston, MA.

Totaling approximately 159,000 square feet, the five-story Class A laboratory building will allow Healthpeak to create a 450,000 square foot flagship campus in West Cambridge, when considered with our holdings at 35 and 87 CambridgePark Drive.

Completion is expected in third quarter of 2022, and upon stabilization, the development is projected to generate an estimated yield on cost of 7.5%.

MEDICAL OFFICE DEVELOPMENT PROGRAM WITH HCA

•Brentwood: In September 2020, delivered a 119,000 square foot, six-story medical office building in Brentwood, TN. The $37 million development was 49% leased to HCA upon delivery and is projected to generate a stabilized yield in the low to mid 8% range.

•Ogden: In August 2020, delivered a 70,000 square foot, four-story Class A medical office building located on the Ogden Regional Medical Center campus in Ogden, Utah. The $18 million development was 69% leased upon delivery and is 78% leased today. The property is projected to generate a stabilized yield in the low to mid 7% range.

THE BOARDWALK DEVELOPMENT LEASING

In September 2020, signed a 10-year, 118,000 square foot lease with a publicly-traded biotechnology company at our Boardwalk life science development project in San Diego, CA. The 192,000 square foot development project is now 100% pre-leased to two tenants, with a weighted average lease term of over 13 years.

Initial occupancy is expected in the fourth quarter of 2021, and upon stabilization, the campus is projected to generate an estimated yield on cost of 7.1%.

BOARD OF DIRECTORS RETIREMENT POLICY UPDATE

In October 2020, Healthpeak revised its Board of Directors retirement policy by providing for a Director term limit of 15 years, replacing the prior policy mandating retirement at the age of 75. One Director who has been on our Board for more than 15 years will be allowed to remain on our Board until the age of 75, so as not to accelerate retirement due to the revised policy. The revised policy maintains diversity across Healthpeak's Board and further promotes long-term Board refreshment.

DIVIDEND

On November 2, 2020, Healthpeak announced that its Board declared quarterly common stock cash dividend of $0.37 per share to be paid on November 23, 2020, to stockholders of record as of the close of business on November 12, 2020.

NEW CORPORATE HEADQUARTERS

In November 2020, Healthpeak established a new corporate headquarters in Denver, CO to create a more centralized geographic location relative to Healthpeak’s portfolio locations and existing offices in Irvine, CA and Franklin, TN, which will continue to operate.

ESG

Healthpeak’s position as a leader in environmental, social and governance (ESG) performance has been recognized by various organizations around the world. For the ninth consecutive year, Healthpeak was named a constituent in the FTSE4Good Index. Healthpeak also received “Prime” rating from ISS ESG Corporate Rating for its top ESG performance. Healthpeak was also nominated for the Corporate Governance Awards 2020 - Best Proxy Statement (Large Cap Company) by Corporate Secretary and IR Magazine for its best-in-class proxy disclosure. More information about Healthpeak’s ESG efforts, including a link to our ESG Report, is available on our website at www.healthpeak.com/esg.

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2020 OUTLOOK UPDATE

Please see pages 45-47 in the Third Quarter 2020 Supplemental Report for a revised outlook and earnings framework.

COMPANY INFORMATION

Healthpeak has scheduled a conference call and webcast for Tuesday, November 3, 2020, at 9:00 a.m. Pacific Time (12:00 p.m. Eastern Time) to present its performance and operating results for the third quarter ended September 30, 2020. The conference call is accessible by dialing (888) 317-6003 (U.S.) or (412) 317-6061 (international). The conference ID number is 4391911. You may also access the conference call via webcast in the Investor Relations section of our website at http://ir.healthpeak.com. An archive of the webcast will be available on Healthpeak's website through November 3, 2021, and a telephonic replay can be accessed through November 17, 2020, by dialing (877) 344-7529 (U.S.) or (412) 317-0088 (international) and entering conference ID number 10147622. Our Supplemental Report for the current period is also available, with this earnings release, in the Investor Relations section of our website.

ABOUT HEALTHPEAK

Healthpeak Properties, Inc. is a fully integrated real estate investment trust (REIT) and S&P 500 company. Healthpeak owns and develops high-quality real estate in the three private-pay healthcare asset classes of Life Science, Medical Office and Senior Housing, designed to provide stability through the inevitable industry cycles. At Healthpeak, we pair our deep understanding of the healthcare real estate market with a strong vision for long-term growth. For more information regarding Healthpeak, visit www.healthpeak.com.

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FORWARD-LOOKING STATEMENTS

Statements in this release that are not historical facts are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements include, among other things, statements regarding our and our officers' intent, belief or expectation as identified by the use of words such as "may," "will," "project," "expect," "believe," "intend," "anticipate," "seek," "target," "forecast," "plan," "potential," "estimate," "could," "would," "should" and other comparable and derivative terms or the negatives thereof. Examples of forward-looking statements include, among other things: (i) statements regarding timing, outcomes and other details relating to current, pending or contemplated acquisitions, dispositions, transitions, developments, redevelopments, joint venture transactions, leasing activity, capital recycling plans, financing activities, or other transactions discussed in this release; (ii) the payment of a quarterly cash dividend; and (iii) statements regarding the impact of the COVID-19 pandemic on our business, financial condition and results of operations. Pending dispositions, including those subject to binding agreements, remain subject to closing conditions and may not close within the anticipated timeframes or at all. Forward-looking statements reflect our current expectations and views about future events and are subject to risks and uncertainties that could significantly affect our future financial condition and results of operations. While forward-looking statements reflect our good faith belief and assumptions we believe to be reasonable based upon current information, we can give no assurance that our expectations or forecasts will be attained. Further, we cannot guarantee the accuracy of any such forward-looking statement contained in this release, and such forward-looking statements are subject to known and unknown risks and uncertainties that are difficult to predict. These risks and uncertainties include, but are not limited to: the severity and duration of the COVID-19 pandemic; actions that have been taken and may continue to be taken by governmental authorities to contain the COVID-19 outbreak or to treat its impact; the impact of the COVID-19 pandemic and health and safety measures taken to reduce the spread; operational risks associated with third party management contracts, including the additional regulation and liabilities of our RIDEA lease structures; the ability of our existing and future tenants, operators and borrowers to conduct their respective businesses in a manner sufficient to maintain or increase their revenues and manage their expenses in order to generate sufficient income to make rent and loan payments to us and our ability to recover investments made, if applicable, in their operations; the imposition of laws or regulations prohibiting the eviction of our tenants, including new governmental efforts in response to COVID-19; the financial condition of our existing and future tenants, operators and borrowers, including potential bankruptcies and downturns in their businesses, and their legal and regulatory proceedings, which results in uncertainties regarding our ability to continue to realize the full benefit of such tenants’ and operators’ leases and borrowers’ loans; our concentration in the healthcare property sector, particularly in senior housing, life sciences and medical office buildings, which makes our profitability more vulnerable to a downturn in a specific sector than if we were investing in multiple industries; the effect on us and our tenants and operators of legislation, executive orders and other legal requirements, including compliance with the Americans with Disabilities Act, fire, safety and health regulations, environmental laws, the Affordable Care Act, licensure, certification and inspection requirements, and laws addressing entitlement programs and related services, including Medicare and Medicaid, which may result in future reductions in reimbursements or fines for noncompliance; our ability to identify replacement tenants and operators and the potential renovation costs and regulatory approvals associated therewith; the risks associated with property development and redevelopment, including costs above original estimates, project delays and lower occupancy rates and rents than expected; the potential impact of uninsured or underinsured losses, including as a result of hurricanes, earthquakes and other natural disasters, pandemics such as COVID-19, acts of war and/or terrorism and other events that may cause such losses and/or performance declines by us or our tenants and operators; the risks associated with our investments in joint ventures and unconsolidated entities, including our lack of sole decision making authority and our reliance on our partners’ financial condition and continued cooperation; competition for the acquisition and financing of suitable healthcare properties as well as competition for tenants and operators, including with respect to new leases and mortgages and the renewal or rollover of existing leases; our or our counterparties’ ability to fulfill obligations, such as financing conditions and/or regulatory approval requirements, required to successfully consummate acquisitions, dispositions, transitions, developments, redevelopments, joint venture transactions or other transactions; our ability to achieve the benefits of acquisitions or other investments within expected time frames or at all, or within expected cost projections; the potential impact on us and our tenants, operators and borrowers from current and future litigation matters, including the possibility of larger than expected litigation costs, adverse results and related developments; changes in federal, state or local laws and regulations, including those affecting the healthcare industry that affect our costs of compliance or increase the costs, or otherwise affect the operations, of our tenants and operators; our ability to foreclose on collateral securing our real estate-related loans; volatility or uncertainty in the capital markets, the availability and cost of capital as impacted by interest rates, changes in our credit ratings, the value of our common stock, and other conditions that may adversely impact our ability to fund our obligations or consummate transactions, or reduce the earnings from potential transactions; changes in global, national and local economic and other conditions, including the ongoing economic downturn, volatility in the financial markets and high unemployment rates; our ability to manage our indebtedness level and changes in the terms of such indebtedness; competition for skilled management and other key personnel; our reliance on information technology systems and the potential impact of system failures, disruptions or breaches; our ability to maintain our qualification as a real estate investment trust; and other risks and uncertainties described from time to time in our Securities and Exchange Commission filings. Except as required by law, we do not undertake, and hereby disclaim, any obligation to update any forward-looking statements, which speak only as of the date on which they are made.

CONTACT

Barbat Rodgers

Senior Director – Investor Relations

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949-407-0400

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Healthpeak Properties, Inc.

Consolidated Balance Sheets

In thousands, except share and per share data

(unaudited)


	September 30, 2020		December 31, 2019
Assets
Real estate:
Buildings and improvements	$	10,967,446	$	11,120,039
Development costs and construction in progress	684,979		692,336
Land	1,889,643		1,992,602
Accumulated depreciation and amortization	(2,507,881)		(2,771,922)
Net real estate	11,034,187		11,033,055
Net investment in direct financing leases	44,706		84,604
Loans receivable, net of reserves of $11,547 and $0	231,162		190,579
Investments in and advances to unconsolidated joint ventures	436,271		825,515
Accounts receivable, net of allowance of $9,004 and $4,565	63,216		59,417
Cash and cash equivalents	197,119		144,232
Restricted cash	102,419		40,425
Intangible assets, net	501,583		331,693
Assets held for sale, net	2,213,185		504,394


Right-of-use asset, net	190,875		172,486
Other assets, net	737,098		646,491
Total assets	$	15,751,821	$	14,032,891

Liabilities and Equity
Bank line of credit and commercial paper	$	—	$	93,000
Term loan	249,122		248,942

Senior unsecured notes	5,695,567		5,647,993
Mortgage debt	435,206		276,907

Intangible liabilities, net	108,031		74,991
Liabilities related to assets held for sale, net	93,046		36,369
Lease liability	175,002		156,611
Accounts payable, accrued liabilities, and other liabilities	834,518		540,924
Deferred revenue	755,021		289,680
Total liabilities	8,345,513		7,365,417
Commitments and contingencies

Common stock, $1.00 par value: 750,000,000 shares authorized; 538,354,755 and 505,221,643 shares issued and outstanding	538,355		505,222
Additional paid-in capital	10,228,086		9,183,892
Cumulative dividends in excess of earnings	(3,923,150)		(3,601,199)
Accumulated other comprehensive income (loss)	(3,236)		(2,857)
Total stockholders' equity	6,840,055		6,085,058

Joint venture partners	366,708		378,061
Non-managing member unitholders	199,545		204,355
Total noncontrolling interests	566,253		582,416

Total equity	7,406,308		6,667,474

Total liabilities and equity	$	15,751,821	$	14,032,891

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Healthpeak Properties, Inc.

Consolidated Statements of Operations

In thousands, except per share data

(unaudited)


	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019

Revenues:
Rental and related revenues	$	326,530	$	312,600	$	953,581	$	908,019
Resident fees and services	264,616		213,040		797,818		517,501
Income from direct financing leases	2,150		9,590		7,569		33,304
Interest income	4,443		2,741		12,361		6,868
Total revenues	597,739		537,971		1,771,329		1,465,692

Costs and expenses:
Interest expense	56,235		61,230		172,161		167,499
Depreciation and amortization	173,630		171,944		541,394		469,191
Operating	314,292		248,069		1,006,146		630,989
General and administrative	21,661		22,970		67,730		71,445
Transaction costs	2,586		1,319		18,061		7,174

Impairments and loan loss reserves (recoveries), net	34,550		38,257		97,723		115,653
Total costs and expenses	602,954		543,789		1,903,215		1,461,951
Other income (expense):
Gain (loss) on sales of real estate, net	149		(784)		247,881		18,708
Loss on debt extinguishments	(17,921)		(35,017)		(42,912)		(36,152)
Other income (expense), net	7,060		693		237,254		24,834
Total other income (expense), net	(10,712)		(35,108)		442,223		7,390

Income (loss) before income taxes and equity income (loss) from unconsolidated joint ventures	(15,927)		(40,926)		310,337		11,131
Income tax benefit (expense)	(24,174)		6,261		16,216		11,583
Equity income (loss) from unconsolidated joint ventures	(19,480)		(7,643)		(48,545)		(10,012)









Net income (loss)	(59,581)		(42,308)		278,008		12,702
Noncontrolling interests' share in earnings	(3,836)		(3,555)		(10,839)		(10,692)
Net income (loss) attributable to Healthpeak Properties, Inc.	(63,417)		(45,863)		267,169		2,010

Participating securities' share in earnings	(351)		(386)		(2,151)		(1,223)

Net income (loss) applicable to common shares	$	(63,768)	$	(46,249)	$	265,018	$	787

Earnings per common share:
Basic	$	(0.12)	$	(0.09)	$	0.50	$	0.00
Diluted	$	(0.12)	$	(0.09)	$	0.50	$	0.00

Weighted average shares outstanding:
Basic	538,333		491,203		527,908		482,595
Diluted	538,333		491,203		528,455		484,792

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Healthpeak Properties, Inc.

Funds From Operations

In thousands, except per share data

(unaudited)


	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
Net income (loss) applicable to common shares	$	(63,768)	$	(46,249)	$	265,018	$	787
Real estate related depreciation and amortization	173,630		171,944		541,394		469,191
Healthpeak's share of real estate related depreciation and amortization from unconsolidated joint ventures	24,822		14,952		80,050		45,153
Noncontrolling interests' share of real estate related depreciation and amortization	(5,020)		(4,999)		(15,043)		(14,927)
Other real estate-related depreciation and amortization	319		1,357		2,447		4,798
Loss (gain) on sales of depreciable real estate, net	(149)		784		(247,881)		(18,708)
Healthpeak's share of loss (gain) on sales of real estate, net, from unconsolidated joint ventures	—		—		(9,248)		—
Noncontrolling interests' share of gain (loss) on sales of real estate, net	—		(2)		(3)		206
Loss (gain) upon change of control, net(1)	(3,259)		20		(173,222)		(11,481)
Taxes associated with real estate dispositions	551		—		(10,989)		—
Impairments (recoveries) of depreciable real estate, net(2)	37,477		43,784		85,996		111,033


NAREIT FFO applicable to common shares	164,603		181,591		518,519		586,052
Distributions on dilutive convertible units and other	—		1,675		5,380		4,954
Diluted NAREIT FFO applicable to common shares	$	164,603	$	183,266	$	523,899	$	591,006
Diluted NAREIT FFO per common share	$	0.31	$	0.37	$	0.98	$	1.21
Weighted average shares outstanding - diluted NAREIT FFO	538,645		499,450		533,963		489,609
Impact of adjustments to NAREIT FFO:
Transaction-related items(3)	$	2,276	$	1,335	$	95,342	$	13,659

Other impairments (recoveries) and other losses (gains), net(4)	(2,927)		—		(29,943)		10,147
Severance and related charges	—		1,334		—		5,063
Loss on debt extinguishments	17,921		35,017		42,912		36,152
Litigation costs (recoveries)	26		(150)		232		(549)
Casualty-related charges (recoveries), net	469		1,607		469		(4,636)
Foreign currency remeasurement losses (gains)	—		(162)		153		(350)
Valuation allowance on deferred tax assets(5)	31,161		—		31,161		—
Tax rate legislation impact(6)	—		—		(3,590)		—
Total adjustments	48,926		38,981		136,736		59,486
FFO as Adjusted applicable to common shares	213,529		220,572		655,255		645,538
Distributions on dilutive convertible units and other	1,852		1,588		5,244		4,809
Diluted FFO as Adjusted applicable to common shares	$	215,381	$	222,160	$	660,499	$	650,347
Diluted FFO as Adjusted per common share	$	0.40	$	0.44	$	1.24	$	1.33
Weighted average shares outstanding - diluted FFO as Adjusted	544,146		499,450		533,963		489,609

_______________________________________

(1)For the nine months ended September 30, 2020, relates to the gain on consolidation of 13 continuing care retirement communities ("CCRCs") in which we acquired Brookdale's interest and began consolidating during the first quarter of 2020. For the nine months ended September 30, 2019, represents the gain related to the acquisition of the outstanding equity interests in a previously unconsolidated senior housing joint venture. Gains upon change of control are included in other income (expense), net in the consolidated statements of operations.

(2)For the three and nine months ended September 30, 2019, includes a $6 million impairment charge related to depreciable real estate held by the CCRC JV, which is recognized in equity income (loss) from unconsolidated joint ventures in the consolidated statement of operations.

(3)For the nine months ended September 30, 2020, includes the termination fee and transition fee expenses related to terminating the management agreements with Brookdale for 13 CCRCs and transitioning those communities to LCS, partially offset by the tax benefit recognized related to those expenses. The expense related to terminating the CCRC management agreements with Brookdale is included in operating expenses in the consolidated statement of operations for the nine months ended September 30, 2020.

(4)For the three and nine months ended September 30, 2020, includes reserves for loan losses under the current expected credit losses accounting standard in accordance with Accounting Standards Codification 326, Financial Instruments – Credit Losses ("ASC 326"). The nine months ended September 30, 2020 also includes a gain on sale of a hospital that was in a direct financing lease ("DFL"), and the impairment of an undeveloped MOB land parcel, which was sold during the third quarter. For the nine months ended September 30, 2019, represents the impairment of 13 senior housing triple-net facilities under DFLs recognized as a result of entering into sales agreements.

(5)For the three and nine months ended September 30, 2020, represents the valuation allowance and corresponding income tax expense related to deferred tax assets that are no longer expected to be realized as a result of our plan to dispose of a significant portion of our SHOP portfolio. We determined we were unlikely to hold the assets long enough to realize the future value of certain deferred tax assets generated by the net operating losses of its taxable REIT subsidiaries.

(6)For the nine months ended September 30, 2020, represents the tax benefit from the CARES Act, which extended the net operating loss carryback period to five years.

Page 10

Healthpeak Properties, Inc.

Adjusted Funds From Operations

In thousands

(unaudited)


	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
FFO as Adjusted applicable to common shares	$	213,529	$	220,572	$	655,255	$	645,538
Amortization of deferred compensation	4,420		3,715		13,392		11,613
Amortization of deferred financing costs	2,554		2,735		7,670		8,174
Straight-line rents	(9,542)		(10,252)		(24,086)		(22,192)

AFFO capital expenditures	(20,756)		(24,107)		(61,329)		(62,840)
Lease restructure payments	347		289		966		870
CCRC entrance fees(1)	—		5,731		—		14,071
Deferred income taxes	(7,300)		(6,434)		(9,200)		(14,063)
Other AFFO adjustments(2)	539		(2,002)		675		(4,387)
AFFO applicable to common shares	183,791		190,247		583,343		576,784
Distributions on dilutive convertible units and other	—		1,675		5,380		4,953
Diluted AFFO applicable to common shares	$	183,791	$	191,922	$	588,723	$	581,737
Weighted average shares outstanding - diluted AFFO	538,645		499,450		533,963		489,609

_______________________________________

(1)In connection with the acquisition of the remaining 51% interest in the CCRC JV in January 2020, we consolidated the 13 communities in the CCRC JV and recorded the assets and liabilities at their acquisition date relative fair values, including the CCRC contract liabilities associated with previously collected non-refundable entrance fees. In conjunction with increasing those CCRC contract liabilities to their fair value, we concluded that we will no longer adjust for the timing difference between non-refundable entrance fees collected and amortized as we believe the amortization of these fees is a meaningful representation of how we satisfy the performance obligations of the fees. As such, upon consolidation of the CCRC assets, we no longer exclude the difference between CCRC entrance fees collected and amortized from the calculation of AFFO. For comparative periods presented, the adjustment continues to represent our 49% share of non-refundable entrance fees collected by the CCRC JV, net of reserves and net of CCRC JV entrance fee amortization.

(2)Primarily includes our share of AFFO capital expenditures from unconsolidated joint ventures, partially offset by noncontrolling interests' share of AFFO capital expenditures from consolidated joint ventures.

Page 11

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777777777777777777777777777777777777777777777777777777777 ADBAD3F7 ) 7@H7D ' /FLK?/PI8:LJ</KI<<K/L@K< <EM<I+ 77777777777777777777777777777777777777777777777777777777 !DH;@7 )8@E/KI<<K/L@K< %IM@E< 7777777777777777777777777777777777777777777777777777777 &3E:H;>>7 ,& )<I@;@8EFLC<M8I;/L@K< "I8EBC@E0* ?<8CK?G<8B:FD

Exhibit 99.3

Discussion and

Reconciliation of Non-

GAAP Financial Measures

September 30, 2020

(Unaudited)


Definitions

Adjusted Fixed Charge Coverage Adjusted EBITDAre divided by Fixed Charges. Adjusted Fixed Charge Coverage is a supplemental measure of liquidity and our ability to meet interest payments on our outstanding debt and pay dividends to our preferred stockholders, if applicable. Our various debt agreements contain covenants that require us to maintain ratios similar to Adjusted Fixed Charge Coverage and credit rating agencies utilize similar ratios in evaluating and determining the credit rating on certain of our debt instruments. Adjusted Fixed Charge Coverage is subject to the same limitations and qualifications as Adjusted EBITDAre and Fixed Charges.

Adjusted Funds Available for Distribution (“AFFO”) AFFO is defined as FFO as Adjusted after excluding the impact of the following: (i) amortization of deferred compensation expense, (ii) amortization of deferred financing costs, net, (iii) straight-line rents, (iv) deferred income taxes, (v) amortization of acquired market lease intangibles, net, (vi) non-cash interest related to DFLs and lease incentive amortization (reduction of straight-line rents), (vii) actuarial reserves for insurance claims that have been incurred but not reported, and (viii) deferred revenues, excluding amounts amortized into rental income that are associated with tenant funded improvements owned/recognized by us and up-front cash payments made by tenants to reduce their contractual rents. Also, AFFO: (i) is computed after deducting recurring capital expenditures, including second generation leasing costs and second generation tenant and capital improvements and (ii) includes lease restructure payments and adjustments to compute our share of AFFO from our unconsolidated joint ventures. Certain prior period amounts in the “Non-GAAP Financial Measures Reconciliation” below for AFFO have been reclassified to conform to the current period presentation. More specifically, recurring capital expenditures, including second generation leasing costs and second generation tenant and capital improvements ("AFFO capital expenditures") excludes our share from unconsolidated joint ventures (reported in “other AFFO adjustments”). Adjustments for joint ventures are calculated to reflect our pro-rata share of both our consolidated and unconsolidated joint ventures. We reflect our share of AFFO for unconsolidated joint ventures by applying our actual ownership percentage for the period to the applicable reconciling items on an entity by entity basis. We reflect our share for consolidated joint ventures in which we do not own 100% of the equity by adjusting our AFFO to remove the third party ownership share of the applicable reconciling items based on actual ownership percentage for the applicable periods (reported in “other AFFO adjustments”). See FFO for further disclosure regarding our use of pro-rata share information and its limitations. Other REITs or real estate companies may use different methodologies for calculating AFFO, and accordingly, our AFFO may not be comparable to those reported by other REITs. Although our AFFO computation may not be comparable to that of other REITs, management believes AFFO provides a meaningful supplemental measure of our performance and is frequently used by analysts, investors, and other interested parties in the evaluation of our performance as a REIT. We believe AFFO is an alternative run-rate earnings measure that improves the understanding of our operating results among investors and makes comparisons with: (i) expected results, (ii) results of previous periods, and (iii) results among REITs more meaningful. AFFO does not represent cash generated from operating activities determined in accordance with GAAP and is not necessarily indicative of cash available to fund cash needs as it excludes the following items which generally flow through our cash flows from operating activities: (i) adjustments for changes in working capital or the actual timing of the payment of income or expense items that are accrued in the period, (ii) transaction-related costs, (iii) litigation settlement expenses, (iv) severance-related expenses, and (v) actual cash receipts from interest income recognized on loans receivable (in contrast to our AFFO adjustment to exclude non-cash interest and depreciation related to our investments in direct financing leases). Furthermore, AFFO is adjusted for recurring capital expenditures, which are generally not considered when determining cash flows from operations or liquidity. AFFO is a non-GAAP supplemental financial measure and should not be considered as an alternative to net income (loss) determined in accordance with GAAP.

Consolidated Debt The carrying amount of bank line of credit, commercial paper, term loans, senior unsecured notes, and mortgage debt, as reported in our consolidated financial statements.

Consolidated Gross Assets The carrying amount of total assets, excluding investments in and advances to our unconsolidated JVs, after adding back accumulated depreciation and amortization, as reported in our consolidated financial statements. Consolidated Gross Assets is a supplemental measure of our financial position, which, when used in conjunction with debt-related measures, enables both management and investors to analyze our leverage and to compare our leverage to that of other companies.

Consolidated Secured Debt Mortgage and other debt secured by real estate, as reported in our consolidated financial statements.

Continuing Care Retirement Community (“CCRC”) A senior housing facility which provides at least three levels of care (i.e., independent living, assisted living and skilled nursing).

Debt Investments Loans secured by a direct interest in real estate and mezzanine loans.

Direct Financing Lease ("DFL") Lease for which future minimum lease payments are recorded as a receivable and the difference between the future minimum lease payments and the estimated residual values less the cost of the properties is recorded as unearned income. Unearned income is deferred and amortized to income over the lease terms to provide a constant yield.


			2


Definitions

EBITDAre and Adjusted EBITDAre EBITDAre, or EBITDA for Real Estate, is a supplemental performance measure defined by the National Association of Real Estate Investment Trusts (“NAREIT”) and intended for real estate companies. It represents earnings before interest expense, income taxes, depreciation and amortization, gains or losses from sales of depreciable property (including gains or losses on change in control), and impairment charges (recoveries) related to depreciable property. Adjusted EBITDAre is defined as EBITDAre excluding impairments (recoveries) related to non-depreciable assets, transaction-related items, prepayment costs (benefits) associated with early retirement or payment of debt, severance and related charges, litigation costs (recoveries), casualty-related charges (recoveries), stock compensation expense, and foreign currency remeasurement losses (gains). EBITDAre and Adjusted EBITDAre include our pro rata share of our unconsolidated JVs presented on the same basis. We consider EBITDAre and Adjusted EBITDAre important supplemental measures to net income (loss) because they provide an additional manner in which to evaluate our operating performance and serve as additional indicators of our ability service our debt obligations. Net income (loss) is the most directly comparable U.S. generally accepted accounting principles (“GAAP”) measure to EBITDAre and Adjusted EBITDAre.

Enterprise Debt Consolidated Debt plus our pro rata share of total debt from our unconsolidated JVs. Enterprise Debt is a supplemental measure of our financial position, which enables both management and investors to analyze our leverage and to compare our leverage to that of other companies. Our pro rata share of total debt from our unconsolidated JVs is not intended to reflect our actual liability or ability to access assets should there be a default under any or all such loans or a liquidation of the JVs.

Enterprise Gross Assets Consolidated Gross Assets plus our pro rata share of total gross assets from our unconsolidated JVs, after adding back accumulated depreciation and amortization. Enterprise Gross Assets is a supplemental measure of our financial position, which, when used in conjunction with debt-related measures, enables both management and investors to analyze our leverage and to compare our leverage to that of other companies.

Enterprise Secured Debt Consolidated Secured Debt plus our pro rata share of mortgage debt from our unconsolidated JVs. Enterprise Secured Debt is a supplemental measure of our financial position, which enables both management and investors to analyze our leverage and to compare our leverage to that of other companies. Our pro rata share of Enterprise Secured Debt from our unconsolidated JVs is not intended to reflect our actual liability or ability to access assets should there be a default under any or all such loans or a liquidation of the JVs.

Entrance Fee Certain of our communities have residency agreements which require the resident to pay an upfront entrance fee prior to taking occupancy at the community. For net income, NOI, Adjusted NOI, NAREIT FFO, FFO as Adjusted, and AFFO, the non-refundable portion of the entrance fee is recorded as deferred entrance fee revenue and amortized over the estimated stay of the resident based on an actuarial valuation. The refundable portion of a resident’s entrance fee is generally refundable within a certain number of months or days following contract termination or upon the sale of the unit. All refundable amounts due to residents at any time in the future are classified as liabilities.

Financial Leverage Enterprise Debt divided by Enterprise Gross Assets. Financial Leverage is a supplemental measure of our financial position, which enables both management and investors to analyze our leverage and to compare our leverage to that of other companies. Our pro rata share information is calculated by applying our actual ownership percentage for the period and excludes debt funded by us to our JVs. Our pro rata share of total debt from our unconsolidated JVs is not intended to reflect our actual liability or ability to access assets should there be a default under any or all such loans or a liquidation of the JVs.

Fixed Charges Total interest expense plus capitalized interest plus preferred stock dividends (if applicable). Fixed Charges also includes our pro rata share of the interest expense plus capitalized interest plus preferred stock dividends (if applicable) of our unconsolidated JVs. Fixed Charges is a supplemental measure of our interest payments on outstanding debt and dividends to preferred stockholders for purposes of presenting Fixed Charge Coverage and Adjusted Fixed Charge Coverage. Fixed Charges is subject to limitations and qualifications, as, among other things, it does not include all contractual obligations.

Funds From Operations (“NAREIT FFO”) and FFO as Adjusted FFO encompasses NAREIT FFO and FFO as Adjusted, each of which is described in detail below. We believe FFO applicable to common shares, diluted FFO applicable to common shares, and diluted FFO per common share are important supplemental non-GAAP measures of operating performance for a REIT. Because the historical cost accounting convention used for real estate assets utilizes straight-line depreciation (except on land), such accounting presentation implies that the value of real estate assets diminishes predictably over time. Since real estate values instead have historically risen and fallen with market conditions, presentations of operating results for a REIT that use historical cost accounting for depreciation could be less informative. The term FFO was designed by the REIT industry to address this issue.


			3


Definitions

NAREIT FFO. FFO, as defined by the National Association of Real Estate Investment Trusts (“NAREIT”), is net income (loss) applicable to common shares (computed in accordance with GAAP), excluding gains or losses from sales of depreciable property, including any current and deferred taxes directly associated with sales of depreciable property, impairments of, or related to, depreciable real estate, plus real estate and other real estate-related depreciation and amortization, and adjustments to compute our share of NAREIT FFO and FFO as Adjusted (see below) from joint ventures. Adjustments for joint ventures are calculated to reflect our pro-rata share of both our consolidated and unconsolidated joint ventures. We reflect our share of NAREIT FFO for unconsolidated joint ventures by applying our actual ownership percentage for the period to the applicable reconciling items on an entity by entity basis. For consolidated joint ventures in which we do not own 100%, we reflect our share of the equity by adjusting our NAREIT FFO to remove the third party ownership share of the applicable reconciling items based on actual ownership percentage for the applicable periods. Our pro-rata share information is prepared on a basis consistent with the comparable consolidated amounts, is intended to reflect our proportionate economic interest in the operating results of properties in our portfolio and is calculated by applying our actual ownership percentage for the period. We do not control the unconsolidated joint ventures, and the pro-rata presentations of reconciling items included in NAREIT FFO do not represent our legal claim to such items. The joint venture members or partners are entitled to profit or loss allocations and distributions of cash flows according to the joint venture agreements, which provide for such allocations generally according to their invested capital.

The presentation of pro-rata information has limitations, which include, but are not limited to, the following: (i) the amounts shown on the individual line items were derived by applying our overall economic ownership interest percentage determined when applying the equity method of accounting and do not necessarily represent our legal claim to the assets and liabilities, or the revenues and expenses and (ii) other companies in our industry may calculate their pro-rata interest differently, limiting the usefulness as a comparative measure. Because of these limitations, the pro-rata financial information should not be considered independently or as a substitute for our financial statements as reported under GAAP. We compensate for these limitations by relying primarily on our GAAP financial statements, using the pro-rata financial information as a supplement.

NAREIT FFO does not represent cash generated from operating activities in accordance with GAAP, is not necessarily indicative of cash available to fund cash needs and should not be considered an alternative to net income (loss). We compute NAREIT FFO in accordance with the current NAREIT definition; however, other REITs may report NAREIT FFO differently or have a different interpretation of the current NAREIT definition from ours.

FFO as Adjusted. In addition, we present NAREIT FFO on an adjusted basis before the impact of non-comparable items including, but not limited to, transaction-related items, impairments (recoveries) of non-depreciable assets, losses (gains) from the sale of non-depreciable assets, severance and related charges, prepayment costs (benefits) associated with early retirement or payment of debt, litigation costs (recoveries), casualty-related charges (recoveries), foreign currency remeasurement losses (gains), deferred tax asset valuation allowances, and changes in tax legislation (“FFO as Adjusted”). Transaction-related items include transaction expenses and gains/charges incurred as a result of mergers and acquisitions and lease amendment or termination activities. Prepayment costs (benefits) associated with early retirement of debt include the write-off of unamortized deferred financing fees, or additional costs, expenses, discounts, make-whole payments, penalties or premiums incurred as a result of early retirement or payment of debt. Management believes that FFO as Adjusted provides a meaningful supplemental measurement of our FFO run-rate and is frequently used by analysts, investors, and other interested parties in the evaluation of our performance as a REIT. At the same time that NAREIT created and defined its FFO measure for the REIT industry, it also recognized that “management of each of its member companies has the responsibility and authority to publish financial information that it regards as useful to the financial community.” We believe stockholders, potential investors, and financial analysts who review our operating performance are best served by an FFO run-rate earnings measure that includes certain other adjustments to net income (loss), in addition to adjustments made to arrive at the NAREIT defined measure of FFO. FFO as Adjusted is used by management in analyzing our business and the performance of our properties and we believe it is important that stockholders, potential investors, and financial analysts understand this measure used by management. We use FFO as Adjusted to: (i) evaluate our performance in comparison with expected results and results of previous periods, relative to resource allocation decisions, (ii) evaluate the performance of our management, (iii) budget and forecast future results to assist in the allocation of resources, (iv) assess our performance as compared with similar real estate companies and the industry in general, and (v) evaluate how a specific potential investment will impact our future results. Other REITs or real estate companies may use different methodologies for calculating an adjusted FFO measure, and accordingly, our FFO as Adjusted may not be comparable to those reported by other REITs.

Investment and Portfolio Investment Represents: (i) the carrying amount of real estate assets and intangibles, after adding back accumulated depreciation and amortization and (ii) the carrying amount of DFLs and Debt Investments. Portfolio Investment also includes our pro rata share of the real estate assets and intangibles held in our unconsolidated JVs, presented on the same basis as Investment, and excludes noncontrolling interests' pro rata share of the real estate assets and intangibles held in our consolidated JVs, presented on the same basis. Investment and Portfolio Investment exclude land held for development.

Net Debt Enterprise Debt less the carrying amount of cash and cash equivalents as reported in our consolidated financial statements and our pro rata share of cash and cash equivalents from our unconsolidated JVs. Consolidated Debt is the most directly comparable GAAP measure to Net Debt. Net Debt is a supplemental measure of our financial position, which enables both management and investors to analyze our leverage and to compare our leverage to that of other companies.


			4


Definitions

Net Debt to Adjusted EBITDAre Net Debt divided by Adjusted EBITDAre is a supplemental measure of our ability to decrease our debt. Because we may not be able to use our cash to reduce our debt on a dollar-for-dollar basis, this measure may have material limitations.

Net Operating Income from Continuing Operations (“NOI”) and Cash (Adjusted) NOI NOI and Adjusted NOI are non-U.S. generally accepted accounting principles (“GAAP”) supplemental financial measures used to evaluate the operating performance of real estate. 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 (which exclude transition costs); 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 include our share of income (loss) generated by unconsolidated joint ventures and exclude noncontrolling interests’ share of income (loss) generated by consolidated joint ventures. Adjusted NOI is oftentimes referred to as “Cash NOI.” Management believes NOI and Adjusted NOI are important supplemental measures because they provide relevant and useful information by reflecting only income and operating expense items that are incurred at the property level and present them on an unlevered basis. We use NOI and Adjusted NOI to make decisions about resource allocations, to assess and compare property level performance, and to evaluate our Same-Store (“SS”) performance, as described below. We believe 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. Further, our definitions of NOI and Adjusted NOI may not be comparable to the definitions used by other REITs or real estate companies, as they may use different methodologies for calculating NOI and Adjusted NOI.

Operating expenses generally relate to leased medical office and life science properties, as well as SHOP and CCRC facilities. We generally recover all or a portion of our leased medical office and life science property expenses through tenant recoveries. We present expenses as operating or general and administrative based on the underlying nature of the expense.

Portfolio Cash Operating Expenses Consolidated cash operating expenses plus the Company's pro rata share of cash operating expenses from its unconsolidated JVs less noncontrolling interests' pro rata share of cash operating expenses from consolidated JVs. Portfolio Cash Operating Expenses represent property level operating expenses (which exclude transition costs) after eliminating the effects of straight-line rents, lease termination fees, actuarial reserves for insurance claims that have been incurred but not reported, and the impact of deferred community fee expense.

Portfolio Income Cash NOI plus interest income plus our pro rata share of Cash NOI from our unconsolidated JVs less noncontrolling interests' pro rata share of Cash NOI from consolidated JVs.

Portfolio Real Estate Revenues and Portfolio Cash Real Estate Revenues Portfolio Real Estate Revenues include rental related revenues, resident fees and services, income from DFLs, and government grant income which is included in Other income (expense), net in our Consolidated Statement of Operations. Portfolio Real Estate Revenues include the Company's pro rata share from unconsolidated JVs presented on the same basis and exclude noncontrolling interests' pro rata share from consolidated JVs presented on the same basis. Portfolio Cash Real Estate Revenues include Portfolio Real Estate Revenues after eliminating the effects of straight-line rents, DFL non-cash interest, amortization of market lease intangibles, lease termination fees, and the impact of deferred community fee income.

Revenue Per Occupied Room ("REVPOR") CCRC The 3-month average Cash Real Estate Revenues per occupied unit excluding Cash NREFs for the most recent period available. REVPOR CCRC excludes newly completed assets under lease-up, assets sold, acquired or converted to a new operating structure (such as triple-net to SHOP) during the relevant period, assets in redevelopment, assets that are held for sale, and assets that experienced a casualty event that significantly impacted operations. REVPOR cannot be derived from the information presented for the CCRC portfolio as units reflect 100% of the unit capacities for unconsolidated JVs and revenue is at the Company's pro rata share. REVPOR CCRC is a non-GAAP supplemental financial measure used to evaluate the revenue-generating capacity and profit potential of our CCRC assets independent of fluctuating occupancy rates. It is also used in comparison against industry and competitor statistics, if known, to evaluate the quality of our CCRC assets.

REVPOR SHOP The 3-month average Cash Real Estate Revenues per occupied unit for the most recent period available. REVPOR SHOP excludes newly completed assets under lease-up, assets sold, acquired or converted to a new operating structure (such as triple-net to SHOP) during the relevant period, assets in redevelopment, assets that are held for sale, and assets that experienced a casualty event that significantly impacted operations. REVPOR cannot be derived from the information presented for the SHOP portfolio as units reflect 100% of the unit capacities for unconsolidated JVs and revenue is at the Company's pro rata share. REVPOR SHOP is a non-GAAP supplemental financial measure used to evaluate the revenue-generating capacity and profit potential of our SHOP assets independent of fluctuating occupancy rates. It is also used in comparison against industry and competitor statistics, if known, to evaluate the quality of our SHOP assets.

RIDEA A structure whereby a taxable REIT subsidiary is permitted to rent a healthcare facility from its parent REIT and hire an independent contractor to operate the facility.


			5


Definitions

Same-Store ("SS") Same-Store NOI and Adjusted (Cash) NOI information allows us to evaluate the performance of our property portfolio under a consistent population by eliminating changes in the composition of our consolidated portfolio of properties. Same-Store Adjusted NOI excludes amortization of deferred revenue from tenant-funded improvements and certain non-property specific operating expenses that are allocated to each operating segment on a consolidated basis.

Properties are included in Same-Store once they are stabilized for the full period in both comparison periods. Newly acquired operating assets are generally considered stabilized at the earlier of lease-up (typically when the tenant(s) control(s) the physical use of at least 80% of the space) or 12 months from the acquisition date. Newly completed developments and redevelopments are considered stabilized at the earlier of lease-up or 24 months from the date the property is placed in service. Properties that experience a change in reporting structure, such as a conversion from a triple-net lease to a RIDEA reporting structure, are considered stabilized after 12 months in operations under a consistent reporting structure. A property is removed from Same-Store when it is classified as held for sale, sold, placed into redevelopment, experiences a casualty event that significantly impacts operations, a change in reporting structure (such as triple-net to SHOP) or operator transition has been agreed to, or a significant tenant relocates from a Same-Store property to a non Same-Store property and that change results in a corresponding increase in revenue.

Secured Debt Ratio Enterprise Secured Debt divided by Enterprise Gross Assets. Secured Debt Ratio is a supplemental measure of our financial position, which enables both management and investors to analyze our leverage and to compare our leverage to that of other companies. Our pro rata share information is calculated by applying our actual ownership percentage for the period and excludes debt funded by us to our JVs. Our pro rata share of Total Secured Debt from our unconsolidated JVs is not intended to reflect our actual liability or ability to access assets should there be a default under any or all such loans or a liquidation of the JVs.

Segments Our portfolio is comprised of investments in the following healthcare segments: (i) senior housing triple-net, (ii) senior housing operating portfolio (“SHOP”), (iii) CCRC, (iv) life science, (v) medical office, and (vi) other non-reportable segments (“Other”).

Share of Consolidated Joint Ventures ("JVs") Noncontrolling interests' pro rata share information is prepared by applying noncontrolling interests' actual ownership percentage for the period and is intended to reflect noncontrolling interests' proportionate economic interest in the financial position and operating results of properties in our portfolio.

Share of Unconsolidated Joint Ventures Our pro rata share information is prepared by applying our actual ownership percentage for the period and is intended to reflect our proportionate economic interest in the financial position and operating results of properties in our portfolio.


			6


Reconciliations
In thousands

Funds From Operations


	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
Net income (loss) applicable to common shares	$	(63,768)	$	(46,249)	$	265,018	$	787
Real estate related depreciation and amortization	173,630		171,944		541,394		469,191
Healthpeak's share of real estate related depreciation and amortization from unconsolidated joint ventures	24,822		14,952		80,050		45,153
Noncontrolling interests' share of real estate related depreciation and amortization	(5,020)		(4,999)		(15,043)		(14,927)
Other real estate-related depreciation and amortization	319		1,357		2,447		4,798
Loss (gain) on sales of depreciable real estate, net	(149)		784		(247,881)		(18,708)
Healthpeak's share of loss (gain) on sales of real estate, net, from unconsolidated joint ventures	—		—		(9,248)		—
Noncontrolling interests' share of gain (loss) on sales of real estate, net	—		(2)		(3)		206
Loss (gain) upon change of control, net(1)	(3,259)		20		(173,222)		(11,481)
Taxes associated with real estate dispositions	551		—		(10,989)		—
Impairments (recoveries) of depreciable real estate, net(2)	37,477		43,784		85,996		111,033


NAREIT FFO applicable to common shares	164,603		181,591		518,519		586,052
Distributions on dilutive convertible units and other	—		1,675		5,380		4,954
Diluted NAREIT FFO applicable to common shares	$	164,603	$	183,266	$	523,899	$	591,006

Weighted average shares outstanding - diluted NAREIT FFO	538,645		499,450		533,963		489,609

Impact of adjustments to NAREIT FFO:
Transaction-related items(3)	$	2,276	$	1,335	$	95,342	$	13,659

Other impairments (recoveries) and other losses (gains), net(4)	(2,927)		—		(29,943)		10,147
Severance and related charges	—		1,334		—		5,063
Loss on debt extinguishments	17,921		35,017		42,912		36,152
Litigation costs (recoveries)	26		(150)		232		(549)
Casualty-related charges (recoveries), net	469		1,607		469		(4,636)
Foreign currency remeasurement losses (gains)	—		(162)		153		(350)
Valuation allowance on deferred tax assets(5)	31,161		—		31,161		—
Tax rate legislation impact(6)	—		—		(3,590)		—
Total adjustments	48,926		38,981		136,736		59,486
FFO as Adjusted applicable to common shares	213,529		220,572		655,255		645,538
Distributions on dilutive convertible units and other	1,852		1,588		5,244		4,809
Diluted FFO as Adjusted applicable to common shares	$	215,381	$	222,160	$	660,499	$	650,347

Weighted average shares outstanding - diluted FFO as Adjusted	544,146		499,450		533,963		489,609

Diluted earnings per common share	$	(0.12)	$	(0.09)	$	0.50	$	0.00
Depreciation and amortization	0.37		0.37		1.14		1.03
Loss (gain) on sales of depreciable real estate, net	—		—		(0.48)		(0.03)
Loss (gain) upon change of control, net(1)	(0.01)		—		(0.32)		(0.02)
Taxes associated with real estate dispositions	—		—		(0.02)		—
Impairments (recoveries) of depreciable real estate, net(2)	0.07		0.09		0.16		0.23
Diluted NAREIT FFO per common share	$	0.31	$	0.37	$	0.98	$	1.21
Transaction-related items(3)	0.01		—		0.18		0.03
Other impairments (recoveries) and other losses (gains), net(4)	(0.01)		—		(0.06)		0.02
Severance and related charges	—		—		—		0.01
Loss on debt extinguishments	0.03		0.07		0.09		0.07

Casualty-related charges (recoveries), net	—		—		—		(0.01)

Valuation allowance on deferred tax assets(5)	0.06		—		0.06		—
Tax rate legislation impact(6)	—		—		(0.01)		—
Diluted FFO as Adjusted per common share	$	0.40	$	0.44	$	1.24	$	1.33


			7


Reconciliations
In thousands

Adjusted Funds From Operations


	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
FFO as Adjusted applicable to common shares	$	213,529	$	220,572	$	655,255	$	645,538
Amortization of deferred compensation	4,420		3,715		13,392		11,613
Amortization of deferred financing costs	2,554		2,735		7,670		8,174
Straight-line rents	(9,542)		(10,252)		(24,086)		(22,192)
AFFO capital expenditures	(20,756)		(24,107)		(61,329)		(62,840)
Lease restructure payments	347		289		966		870
CCRC entrance fees(7)	—		5,731		—		14,071
Deferred income taxes	(7,300)		(6,434)		(9,200)		(14,063)
Other AFFO adjustments(8)	539		(2,002)		675		(4,387)
AFFO applicable to common shares	183,791		190,247		583,343		576,784
Distributions on dilutive convertible units and other	—		1,675		5,380		4,953
Diluted AFFO applicable to common shares	$	183,791	$	191,922	$	588,723	$	581,737

Weighted average shares outstanding - diluted AFFO	538,645		499,450		533,963		489,609

______________________________________

(6)For the nine months ended September 30, 2020, represents the tax benefit from the CARES Act, which extended the net operating loss carryback period to five years.

(7)In connection with the acquisition of the remaining 51% interest in the CCRC JV in January 2020, we consolidated the 13 communities in the CCRC JV and recorded the assets and liabilities at their acquisition date relative fair values, including the CCRC contract liabilities associated with previously collected non-refundable entrance fees. In conjunction with increasing those CCRC contract liabilities to their fair value, we concluded that we will no longer adjust for the timing difference between non-refundable entrance fees collected and amortized as we believe the amortization of these fees is a meaningful representation of how we satisfy the performance obligations of the fees. As such, upon consolidation of the CCRC assets, we no longer exclude the difference between CCRC entrance fees collected and amortized from the calculation of AFFO. For comparative periods presented, the adjustment continues to represent our 49% share of non-refundable entrance fees collected by the CCRC JV, net of reserves and net of CCRC JV entrance fee amortization.

(8)Primarily includes our share of AFFO capital expenditures from unconsolidated joint ventures, partially offset by noncontrolling interests' share of AFFO capital expenditures from consolidated joint ventures.


			8


Reconciliations
In thousands

Projected SS Cash NOI(1)

For the projected year 2020 (low)


	Life Science		Medical Office		Other
SS cash NOI (from withdrawn guidance)(2)	$	254	$	302	$	43
Outlook adjustment	3		—		—
SS cash NOI outlook	$	257	$	302	$	43

For the projected year 2020 (high)


	Life Science		Medical Office		Other
SS cash NOI (from withdrawn guidance)(2)	$	256	$	305	$	43
Outlook adjustment	2		(1)		—
SS cash NOI outlook	$	258	$	304	$	43

For the year ended December 31, 2019


	Life Science		Medical Office		Other
SS cash NOI	$	244	$	297	$	42

Potential SS cash NOI outlook for the full year 2020


	Life Science		Medical Office		Other
Low	5.25	%	1.75	%	1.75	%
High	5.75	%	2.25	%	2.50	%

______________________________________

(1)Please note that the figures provided on this page do not represent guidance, but a framework to help quantify potential outcomes and impacts from COVID-19.

(2)In March 2020, we withdrew our 2020 guidance issued on February 11, 2020, as it did not include any adverse impact form COVID-19. A reconciliation of 2020 projected SS cash NOI to the most directly comparable financial measure calculated and presented in accordance with GAAP was prepared as part of our fourth quarter 2019 Discussion and Reconciliation of Non-GAAP Financial Measures, which is available on our website. As such, we have adjusted such amounts for the potential impacts from COVID-19 to provide a year-over year SS cash NOI outlook.

Projected Future Operations

In March 2020, we withdrew our 2020 guidance issued on February 11, 2020, as it did not include any adverse impact form COVID-19 outbreak. When the extent and timing of the outbreak becomes more clear, and we are then in a position to estimate the varying impacts across our diversified portfolio, including an updated sources and uses, we will make additional disclosures and update our guidance as appropriate.


			9


Reconciliations
In thousands


Enterprise Gross Assets and Portfolio Investment(1)


	September 30, 2020
	Senior Housing Triple-net		SHOP		CCRC		Life Science		Medical Office		Other		Corporate Non-segment		Total
Consolidated total assets	$	752,508	$	2,791,741	$	2,237,948	$	5,747,332	$	3,620,831	$	426,507	$	174,954	$	15,751,821
Investments in and advances to unconsolidated JVs	—		(425,992)		(347)		—		(9,720)		(212)		—		(436,271)
Accumulated depreciation and amortization	315,785		500,002		159,618		934,031		1,405,583		100,425		—		3,415,444
Consolidated Gross Assets	$	1,068,293	$	2,865,751	$	2,397,219	$	6,681,363	$	5,016,694	$	526,720	$	174,954	$	18,730,994
Healthpeak's share of unconsolidated JV gross assets	—		609,834		69,897		—		18,599		—		—		698,330
Enterprise Gross Assets	$	1,068,293	$	3,475,585	$	2,467,116	$	6,681,363	$	5,035,293	$	526,720	$	174,954	$	19,429,324

Land held for development	—		(2,362)		(3,494)		(86,352)		(3,252)		—		—		(95,460)

Fully depreciated real estate and intangibles	48,720		223,639		11,427		378,549		468,312		9,181		—		1,139,828
Non-real estate related assets(2)	(94,770)		(175,428)		(245,834)		(241,588)		(333,422)		18,010		(174,954)		(1,247,986)
Real estate intangible liabilities	(7,991)		(8,599)		—		(138,198)		(90,786)		(4,871)		—		(250,445)
Noncontrolling interests' share of consolidated JVs real estate and related intangibles	—		(11,643)		—		(3,278)		(386,008)		—		—		(400,929)
Portfolio Investment	$	1,014,252	$	3,501,192	$	2,229,215	$	6,590,496	$	4,690,137	$	549,040	$	—	$	18,574,332

______________________________________

(1)During the first quarter of 2020, primarily as a result of: (i) acquiring 100% ownership interest in 13 of the 15 CCRCs previously held in an unconsolidated joint venture and (ii) deconsolidating 19 SHOP assets into a new joint venture in December 2019, the Company's chief operating decision makers began reviewing operating results of the CCRCs on a stand-alone basis and financial information for each respective segment inclusive of the Company's share of unconsolidated joint ventures and exclusive of noncontrolling interests' share on consolidated joint ventures. Therefore, during the first quarter of 2020, the Company began reporting CCRCs as a separate segment and began reporting segment measures inclusive of the company's share of unconsolidated joint ventures and exclusive of noncontrolling interests' share of consolidated joint ventures.

(2)Includes straight-line rent payables and receivables, net of reserves; lease commissions - 2nd generation, net of amortization; cash and restricted cash; operating lease right-of-use assets, net; and other assets, net.


			10


Reconciliations
In thousands


Revenues(1)


	Three Months Ended
	September 30, 2019		December 31, 2019		March 31, 2020		June 30, 2020		September 30, 2020
Senior housing triple-net	$	47,956	$	42,603	$	33,135	$	24,589	$	24,558
SHOP	212,275		206,704		170,961		155,293		149,615
CCRC	—		3,010		91,780		113,926		115,031
Life science	118,561		120,155		128,883		138,496		148,702
Medical office	143,639		143,769		145,146		141,636		145,153
Other	15,540		15,450		15,245		14,500		14,680
Total revenues	$	537,971	$	531,691	$	585,150	$	588,440	$	597,739
Senior housing triple-net	—		—		—		—		—
SHOP	—		—		—		2,209		392
CCRC	—		—		—		11,871		1,761
Life science	—		—		—		—		—
Medical office	—		—		—		—		—
Other	—		—		—		—		—
Government grant income	$	—	$	—	$	—	$	14,080	$	2,153
Senior housing triple-net	—		—		—		—		—
SHOP	—		—		—		—		—
CCRC	—		—		—		—		—
Life science	—		—		—		—		—
Medical office	—		—		—		—		—
Other	(2,741)		(2,976)		(3,688)		(4,230)		(4,443)
Less: Interest income	$	(2,741)	$	(2,976)	$	(3,688)	$	(4,230)	$	(4,443)
Senior housing triple-net	—		—		—		—		—
SHOP	4,943		8,131		25,765		24,684		23,800
CCRC	52,671		53,632		21,647		4,781		4,295
Life science	—		—		—		—		—
Medical office	701		695		695		691		699
Other	5,227		4,636		86		—		—
Healthpeak's share of unconsolidated JVs real estate revenues	$	63,542	$	67,094	$	48,193	$	30,156	$	28,794
Senior housing triple-net	—		—		—		—		—
SHOP	—		—		—		270		49
CCRC	—		—		—		534		246
Life science	—		—		—		—		—
Medical office	—		—		—		—		—
Other	—		—		—		—		—
Healthpeak's share of unconsolidated JVs government grant income	$	—	$	—	$	—	$	804	$	295
Senior housing triple-net	—		—		—		—		—
SHOP	(515)		(521)		(538)		(504)		(459)
CCRC	—		—		—		—		—
Life science	(52)		(54)		(52)		(57)		(66)
Medical office	(8,605)		(8,709)		(8,640)		(8,347)		(8,788)
Other	—		—		—		—		—
Noncontrolling interests' share of consolidated JVs real estate revenues	$	(9,172)	$	(9,284)	$	(9,230)	$	(8,908)	$	(9,313)

Continued


			11


Reconciliations
In thousands


Revenues(1)


	Three Months Ended
	September 30, 2019		December 31, 2019		March 31, 2020		June 30, 2020		September 30, 2020
Senior housing triple-net	$	47,956	$	42,603	$	33,135	$	24,589	$	24,558
SHOP	216,703		214,314		196,188		181,952		173,397
CCRC	52,671		56,642		113,427		131,112		121,333
Life science	118,509		120,101		128,831		138,439		148,636
Medical office	135,735		135,755		137,201		133,980		137,064
Other	18,026		17,110		11,643		10,270		10,237
Portfolio Real Estate Revenues	$	589,600	$	586,525	$	620,425	$	620,342	$	615,225
Senior housing triple-net	(1,551)		(2,201)		(3,388)		(20)		79
SHOP	957		742		549		107		(200)
CCRC	5,748		3,245		(177)		(4)		22
Life science	(7,075)		(4,969)		(4,293)		(2,793)		(8,343)
Medical office	(2,270)		(2,031)		(2,104)		(1,599)		(2,929)
Other	79		138		461		485		558
Non-cash adjustments to Portfolio Real Estate Revenues	$	(4,112)	$	(5,076)	$	(8,952)	$	(3,824)	$	(10,813)
Senior housing triple-net	46,405		40,402		29,747		24,569		24,637
SHOP	217,660		215,056		196,737		182,059		173,197
CCRC	58,419		59,887		113,250		131,108		121,355
Life science	111,434		115,132		124,538		135,646		140,293
Medical office	133,465		133,724		135,097		132,381		134,135
Other	18,105		17,248		12,104		10,755		10,795
Portfolio Cash Real Estate Revenues	$	585,488	$	581,449	$	611,473	$	616,518	$	604,412
Senior housing triple-net	(35,388)		(29,312)		(18,619)		(13,083)		(13,135)
SHOP	(183,402)		(180,892)		(162,497)		(149,056)		(140,661)
CCRC	(58,419)		(59,887)		(113,250)		(131,108)		(121,355)
Life science	(21,345)		(25,794)		(35,531)		(42,910)		(45,686)
Medical office	(13,639)		(13,239)		(14,190)		(13,674)		(11,919)
Other	(11,284)		(10,376)		(5,127)		(3,921)		(3,923)
Non-SS Portfolio Cash Real Estate Revenues	$	(323,477)	$	(319,500)	$	(349,214)	$	(353,752)	$	(336,679)
Senior housing triple-net	11,017		11,090		11,128		11,486		11,502
SHOP	34,258		34,164		34,240		33,003		32,536
CCRC	—		—		—		—		—
Life science	90,089		89,338		89,007		92,736		94,607
Medical office	119,826		120,485		120,907		118,707		122,216
Other	6,821		6,872		6,977		6,834		6,872
Portfolio Cash Real Estate Revenues - SS	$	262,011	$	261,949	$	262,259	$	262,766	$	267,733

______________________________________


			12


Reconciliations
In thousands


Operating Expenses(1)


	Three Months Ended
	September 30, 2019		December 31, 2019		March 31, 2020		June 30, 2020		September 30, 2020
Senior housing triple-net	$	865	$	1,842	$	506	$	526	$	421
SHOP	166,201		162,893		138,130		137,507		130,729
CCRC	—		2,211		156,482		94,248		94,992
Life science	29,520		30,480		30,201		34,205		36,714
Medical office	51,472		50,903		50,687		49,350		51,430
Other	11		53		7		5		6
Operating expenses	$	248,069	$	248,382	$	376,013	$	315,841	$	314,292
Senior housing triple-net	—		—		—		—		—
SHOP	3,816		5,983		17,956		18,686		18,280
CCRC	43,193		43,452		18,037		4,826		4,797
Life science	—		—		—		—		—
Medical office	279		270		275		275		296
Other	23		20		(2)		1		—
Healthpeak's share of unconsolidated JVs operating expenses	$	47,311	$	49,725	$	36,266	$	23,788	$	23,373
Senior housing triple-net	—		—		—		—		—
SHOP	(388)		(350)		(377)		(411)		(361)
CCRC	—		—		—		—		—
Life science	(16)		(17)		(17)		(18)		(18)
Medical office	(2,593)		(2,596)		(2,600)		(2,507)		(2,630)
Other	—		—		—		—		—
Noncontrolling interests' share of consolidated JVs operating expenses	$	(2,997)	$	(2,963)	$	(2,994)	$	(2,936)	$	(3,009)
Senior housing triple-net	865		1,842		506		526		421
SHOP	169,629		168,526		155,709		155,782		148,648
CCRC	43,193		45,663		174,519		99,074		99,789
Life science	29,504		30,463		30,184		34,187		36,696
Medical office	49,158		48,577		48,362		47,118		49,096
Other	34		73		5		6		6
Portfolio Operating Expenses	$	292,383	$	295,144	$	409,285	$	336,693	$	334,656
Senior housing triple-net	(14)		(1,093)		(14)		(61)		(14)
SHOP	218		125		18		(11)		1,028
CCRC	113		91		(91,738)		(22)		(1,662)
Life science	(13)		(13)		(13)		(14)		(13)
Medical office	(661)		(654)		(647)		(648)		(642)
Other	—		1		—		—		—
Non-cash adjustments to Portfolio Operating Expenses	$	(357)	$	(1,543)	$	(92,394)	$	(756)	$	(1,303)
Senior housing triple-net	851		749		492		465		407
SHOP	169,847		168,651		155,727		155,771		149,676
CCRC	43,306		45,754		82,781		99,052		98,127
Life science	29,491		30,450		30,171		34,173		36,683
Medical office	48,497		47,923		47,715		46,470		48,454
Other	34		74		5		6		6
Portfolio Cash Operating Expenses	$	292,026	$	293,601	$	316,891	$	335,937	$	333,353

Continued


			13


Reconciliations
In thousands


Operating Expenses(1)


	Three Months Ended
	September 30, 2019		December 31, 2019		March 31, 2020		June 30, 2020		September 30, 2020
Senior housing triple-net	$	(827)	$	(731)	$	(464)	$	(438)	$	(381)
SHOP	(147,784)		(146,682)		(134,115)		(133,324)		(127,403)
CCRC	(43,306)		(45,754)		(82,781)		(99,052)		(98,127)
Life science	(6,166)		(7,117)		(8,182)		(11,307)		(12,524)
Medical office	(5,873)		(5,546)		(6,045)		(5,857)		(5,951)
Other	(29)		1		—		(2)		(2)
Non-SS Portfolio Cash Operating Expenses	$	(203,985)	$	(205,829)	$	(231,587)	$	(249,980)	$	(244,388)
Senior housing triple-net	24		18		28		27		26
SHOP	22,063		21,969		21,612		22,447		22,273
CCRC	—		—		—		—		—
Life science	23,325		23,333		21,989		22,866		24,159
Medical office	42,624		42,377		41,670		40,613		42,503
Other	5		75		5		4		4
Portfolio Cash Operating Expenses - SS	$	88,041	$	87,772	$	85,304	$	85,957	$	88,965

______________________________________


			14


Reconciliations
In thousands

Revenues

Operating Expenses


Nine Months Ended September 30, 2020			Nine Months Ended September 30, 2020
Senior housing triple-net	$	82,282	Senior housing triple-net	$	1,453
SHOP	475,869		SHOP	406,366
CCRC	320,737		CCRC	345,722
Life science	416,081		Life science	101,120
Medical office	431,935		Medical office	151,467
Other	44,425		Other	18
Total revenues	$	1,771,329	Operating expenses	$	1,006,146
Senior housing triple-net	—		Senior housing triple-net	—
SHOP	2,601		SHOP	54,922
CCRC	13,632		CCRC	27,660
Life science	—		Life science	—
Medical office	—		Medical office	846
Other	—		Other	(1)
Government grant income	$	16,233	Healthpeak's share of unconsolidated JVs operating expenses	$	83,427
Senior housing triple-net	—		Senior housing triple-net	—
SHOP	—		SHOP	(1,149)
CCRC	—		CCRC	—
Life science	—		Life science	(53)
Medical office	—		Medical office	(7,737)
Other	(12,361)		Other	—
Less: Interest income	$	(12,361)	Noncontrolling interests' share of consolidated JVs operating expenses	$	(8,939)
Senior housing triple-net	—		Senior housing triple-net	1,453
SHOP	74,249		SHOP	460,139
CCRC	30,723		CCRC	373,382
Life science	—		Life science	101,067
Medical office	2,085		Medical office	144,576
Other	86		Other	17
Healthpeak's share of unconsolidated JVs real estate revenues	$	107,143	Portfolio Operating Expenses	$	1,080,634
Senior housing triple-net	—		Senior housing triple-net	(89)
SHOP	319		SHOP	1,035
CCRC	780		CCRC	(93,422)
Life science	—		Life science	(40)
Medical office	—		Medical office	(1,937)
Other	—		Other	—
Healthpeak's share of unconsolidated JVs government grant income	$	1,099	Non-cash adjustments to Portfolio Operating Expenses	$	(94,453)
Senior housing triple-net	—		Senior housing triple-net	1,364
SHOP	(1,501)		SHOP	461,174
CCRC	—		CCRC	279,960
Life science	(175)		Life science	101,027
Medical office	(25,775)		Medical office	142,639
Other	—		Other	17
Noncontrolling interests' share of consolidated JVs real estate revenues	$	(27,451)	Portfolio Cash Operating Expenses	$	986,181

Continued


			15


Reconciliations
In thousands


Revenues						Operating Expenses


Nine Months Ended September 30, 2020			Nine Months Ended September 30, 2020
Senior housing triple-net	$	82,282	Senior housing triple-net	$	(1,283)
SHOP	551,537		SHOP	(422,155)
CCRC	365,872		CCRC	(279,960)
Life science	415,906		Life science	(40,257)
Medical office	408,245		Medical office	(19,847)
Other	32,150		Other	(4)
Portfolio Real Estate Revenues	$	1,855,992	Non-SS Portfolio Cash Operating Expenses(2)	$	(763,506)
Senior housing triple-net	(3,329)		Senior housing triple-net	81
SHOP	456		SHOP	39,019
CCRC	(159)		CCRC	—
Life science	(15,429)		Life science	60,770
Medical office	(6,632)		Medical office	122,792
Other	1,504		Other	13
Non-cash adjustments to Portfolio Real Estate Revenues	$	(23,589)	Portfolio Cash Operating Expenses - SS(2)	$	222,675
Senior housing triple-net	78,953
SHOP	551,993
CCRC	365,713
Life science	400,477
Medical office	401,613
Other	33,654
Portfolio Cash Real Estate Revenues	$	1,832,403
Senior housing triple-net	(44,837)
SHOP	(494,357)
CCRC	(365,713)
Life science	(146,718)
Medical office	(44,443)
Other	(12,970)
Non-SS Portfolio Cash Real Estate Revenues(1)	$	(1,109,038)
Senior housing triple-net	34,116
SHOP	57,636
CCRC	—
Life science	253,759
Medical office	357,170
Other	20,684
Portfolio Cash Real Estate Revenues - SS(1)	$	723,365

______________________________________

(1)The property count used for Non-SS Portfolio Cash Real Estate Revenues and Portfolio Cash Real Estate Revenues - SS differed from the three and nine months ended September 30, 2020.

(2)The property count used for Non-SS Portfolio Cash Operating Expenses and Portfolio Cash Operating Expenses - SS differed for the three and nine months ended September 30, 2020.


			16


Reconciliations
In thousands


EBITDAre and Adjusted EBITDAre


	Three Months Ended September 30, 2020
Net income (loss)	$	(59,581)
Interest expense	56,235
Income tax expense (benefit)	24,174
Depreciation and amortization	173,630
Other depreciation and amortization	1,291
Loss (gain) on sales of real estate	(149)
Loss (gain) upon change of control	(3,259)
Impairments (recoveries) of depreciable real estate	37,477
Share of unconsolidated JV:
Interest expense	874
Income tax expense (benefit)	(509)
Depreciation and amortization	24,822



EBITDAre	$	255,005






Transaction-related items	2,586

Other impairments (recoveries) and losses (gains)	(2,927)

Loss on debt extinguishments	17,921
Litigation costs (recoveries)	26
Casualty-related charges (recoveries)	469
Amortization of deferred compensation	4,420



Adjusted EBITDAre	$	277,500


Adjusted Fixed Charge Coverage


	Three Months Ended September 30, 2020

Interest expense	$	56,235
Share of unconsolidated JV interest expense	874
Capitalized interest	6,860
Fixed Charges	$	63,969

Adjusted Fixed Charge Coverage	4.3x


			17


Reconciliations
In thousands


Enterprise Debt and Net Debt


	September 30, 2020
Bank line of credit and commercial paper	$	—
Term loan	249,122
Senior unsecured notes	5,695,567
Mortgage debt(1)	512,428

Consolidated Debt	$	6,457,117
Share of unconsolidated JV mortgage debt	89,200

Enterprise Debt	$	6,546,317
Cash and cash equivalents	(197,119)
Share of unconsolidated JV cash and cash equivalents	(23,023)
Net Debt	$	6,326,175


Financial Leverage


	September 30, 2020
Enterprise Debt	$	6,546,317
Enterprise Gross Assets	19,429,324
Financial Leverage	33.7%


Secured Debt Ratio


	September 30, 2020
Mortgage debt(1)	$	512,428
Share of unconsolidated JV mortgage debt	89,200
Enterprise Secured Debt	$	601,628
Enterprise Gross Assets	19,429,324
Secured Debt Ratio	3.1%


Net Debt to Adjusted EBITDAre


	Three Months Ended September 30, 2020
Net Debt	$	6,326,175
Annualized Adjusted EBITDAre(2)	1,110,000
Net Debt to Adjusted EBITDAre	5.7x

______________________________________

(1)Includes mortgage debt of $77.2 million on assets held for sale that matures in 2027 and 2044.

(2)Represents the current quarter Adjusted EBIDTAre multiplied by a factor of four.


			18


Reconciliations
In thousands


Segment Cash NOI, Portfolio Income, and SS

Total Portfolio(1)


	Three Months Ended
	September 30, 2019		December 31, 2019		March 31, 2020		June 30, 2020		September 30, 2020
Net Income (loss)	$	(42,308)	$	47,359	$	282,540	$	55,049	$	(59,581)
Interest income	(2,741)		(2,976)		(3,688)		(4,230)		(4,443)
Interest expense	61,230		58,120		58,376		57,550		56,235
Depreciation and amortization	171,944		190,798		189,276		178,488		173,630
General and administrative	22,970		21,521		22,349		23,720		21,661
Transaction costs	1,319		1,569		14,848		627		2,586
Loss (gain) on sales of real estate, net	784		(4,193)		(164,869)		(82,863)		(149)
Impairments and loan loss (reserves) recoveries, net	38,257		110,284		39,123		24,050		34,550
Other expense (income), net	(693)		(157,296)		(210,608)		(19,586)		(7,060)
Loss on debt extinguishments	35,017		22,213		(833)		25,824		17,921
Income tax expense (benefit)	(6,261)		(5,679)		(33,044)		(7,346)		24,174
Government grant income	—		—		—		14,080		2,153
Equity loss (income) from unconsolidated JVs	7,643		(1,387)		11,979		17,086		19,480
Healthpeak's share of unconsolidated JVs NOI	16,231		17,369		11,927		7,172		5,716
Noncontrolling interests' share of consolidated JVs NOI	(6,175)		(6,321)		(6,236)		(5,972)		(6,304)
Portfolio NOI	$	297,217	$	291,381	$	211,140	$	283,649	$	280,569
Adjustment to Portfolio NOI	(3,755)		(3,533)		83,442		(3,068)		(9,510)
Portfolio Cash NOI	$	293,462	$	287,848	$	294,582	$	280,581	$	271,059
Interest income	2,741		2,976		3,688		4,230		4,443
Healthpeak's share of unconsolidated JVs interest income	87		80		—		—		—
Portfolio Income	$	296,290	$	290,904	$	298,270	$	284,811	$	275,502
Interest income	(2,741)		(2,976)		(3,688)		(4,230)		(4,443)
Healthpeak's share of unconsolidated JVs interest income	(87)		(80)		—		—		—
Adjustment to Portfolio NOI	3,755		3,533		(83,442)		3,068		9,510
Non-SS NOI	(118,458)		(114,208)		(30,954)		(105,633)		(96,910)
SS NOI	$	178,759	$	177,173	$	180,186	$	178,016	$	183,659
Non-cash adjustment to SS NOI	(4,789)		(2,996)		(3,231)		(1,207)		(4,891)
SS Cash NOI	$	173,970	$	174,177	$	176,955	$	176,809	$	178,768


			19


Reconciliations
In thousands

Senior Housing Triple-Net(1)


	Three Months Ended
	September 30, 2019		December 31, 2019		March 31, 2020		June 30, 2020		September 30, 2020
Net Income (loss)	$	26,782	$	9,513	$	184,760	$	15,809	$	5,301

Interest expense	106		102		82		72		45
Depreciation and amortization	12,773		10,202		7,160		7,175		6,694


Impairments and loan loss (reserves) recoveries, net	7,430		20,944		4,670		1,007		12,097
Loss (gain) on sales of real estate, net	—		—		(164,043)		—		—






Portfolio NOI	$	47,091	$	40,761	$	32,629	$	24,063	$	24,137
Adjustment to Portfolio NOI	(1,537)		(1,108)		(3,374)		41		93
Portfolio Cash NOI	$	45,554	$	39,653	$	29,255	$	24,104	$	24,230



Adjustment to Portfolio NOI	1,537		1,108		3,374		(41)		(93)
Non-SS NOI	(36,055)		(29,719)		(22,013)		(13,401)		(13,616)
SS NOI	$	11,036	$	11,042	$	10,616	$	10,662	$	10,521
Non-cash adjustment to SS NOI	(43)		30		484		797		955
SS Cash NOI	$	10,993	$	11,072	$	11,100	$	11,459	$	11,476

SHOP(1)


	Three Months Ended
	September 30, 2019		December 31, 2019		March 31, 2020		June 30, 2020		September 30, 2020
Net Income (loss)	$	(40,562)	$	46,024	$	(69,705)	$	(46,821)	$	(54,132)

Interest expense	2,637		2,893		2,855		2,837		2,649
Depreciation and amortization	58,152		80,106		57,003		31,621		24,966


Impairments and loan loss (reserves) recoveries, net	24,721		86,684		23,285		16,158		24,229
Loss (gain) on sales of real estate, net	734		(10,541)		1,243		(1,579)		2,134
Other expense (income), net	—		(160,886)		—		(2,209)		(392)

Government grant income	—		—		—		2,209		392
Equity loss (income) from unconsolidated JVs	392		(469)		18,150		17,779		19,432
Healthpeak's share of unconsolidated JVs NOI	1,127		2,148		7,809		6,268		5,569
Noncontrolling interests' share of consolidated JVs NOI	(127)		(171)		(161)		(93)		(98)
Portfolio NOI	$	47,074	$	45,788	$	40,479	$	26,170	$	24,749
Adjustment to Portfolio NOI	739		617		531		118		(1,228)
Portfolio Cash NOI	$	47,813	$	46,405	$	41,010	$	26,288	$	23,521





Adjustment to Portfolio NOI	(739)		(617)		(531)		(118)		1,228
Non-SS NOI	(34,798)		(33,513)		(27,814)		(15,708)		(14,527)
SS NOI	$	12,276	$	12,275	$	12,665	$	10,462	$	10,222
Non-cash adjustment to SS NOI	(81)		(80)		(37)		94		41
SS Cash NOI	$	12,195	$	12,195	$	12,628	$	10,556	$	10,263


			20


Reconciliations
In thousands

CCRC(1)


	Three Months Ended
	September 30, 2019		December 31, 2019		March 31, 2020		June 30, 2020		September 30, 2020
Net Income (loss)	$	(9,194)	$	(7,321)	$	82,217	$	826	$	(8,469)

Interest expense	—		—		1,304		1,969		1,983
Depreciation and amortization	—		—		20,229		31,426		30,106




Other expense (income), net	—		5,665		(170,332)		(14,142)		(3,903)

Government grant income	—		—		—		11,871		1,761
Equity loss (income) from unconsolidated JVs	9,194		2,455		1,880		(401)		322
Healthpeak's share of unconsolidated JVs NOI	9,478		10,180		3,610		489		(256)

Portfolio NOI	$	9,478	$	10,979	$	(61,092)	$	32,038	$	21,544
Adjustment to Portfolio NOI	5,635		3,154		91,561		18		1,684
Portfolio Cash NOI	$	15,113	$	14,133	$	30,469	$	32,056	$	23,228





Adjustment to Portfolio NOI	(5,635)		(3,154)		(91,561)		(18)		(1,684)
Non-SS NOI	(9,478)		(10,979)		61,092		(32,038)		(21,544)
SS NOI	$	—	$	—	$	—	$	—	$	—
Non-cash adjustment to SS NOI	—		—		—		—		—
SS Cash NOI	$	—	$	—	$	—	$	—	$	—

Life Science(1)


	Three Months Ended
	September 30, 2019		December 31, 2019		March 31, 2020		June 30, 2020		September 30, 2020
Net Income (loss)	$	43,858	$	43,975	$	48,408	$	51,875	$	54,761

Interest expense	68		66		63		60		57
Depreciation and amortization	45,028		45,634		50,211		52,356		57,170



Loss (gain) on sales of real estate, net	87		—		—		—		—





Noncontrolling interests' share of consolidated JVs NOI	(36)		(37)		(35)		(39)		(48)
Portfolio NOI	$	89,005	$	89,638	$	98,647	$	104,252	$	111,940
Adjustment to Portfolio NOI	(7,062)		(4,956)		(4,280)		(2,779)		(8,330)
Portfolio Cash NOI	$	81,943	$	84,682	$	94,367	$	101,473	$	103,610





Adjustment to Portfolio NOI	7,062		4,956		4,280		2,779		8,330
Non-SS NOI	(19,265)		(22,157)		(29,317)		(33,216)		(37,628)
SS NOI	$	69,740	$	67,481	$	69,330	$	71,036	$	74,312
Non-cash adjustment to SS NOI	(2,976)		(1,476)		(2,312)		(1,166)		(3,864)
SS Cash NOI	$	66,764	$	66,005	$	67,018	$	69,870	$	70,448


			21


Reconciliations
In thousands

Medical Office(1)


	Three Months Ended
	September 30, 2019		December 31, 2019		March 31, 2020		June 30, 2020		September 30, 2020
Net Income (loss)	$	32,387	$	37,259	$	40,808	$	116,989	$	41,208

Interest expense	108		105		102		100		100
Depreciation and amortization	54,152		53,323		53,148		54,572		53,688


Impairments and loan loss (reserves) recoveries, net	5,729		2,656		2,706		2,119		1,208
Loss (gain) on sales of real estate, net	7		(263)		(2,109)		(81,284)		(2,283)



Equity loss (income) from unconsolidated JVs	(216)		(214)		(196)		(210)		(198)
Healthpeak's share of unconsolidated JVs NOI	422		425		420		416		403
Noncontrolling interests' share of consolidated JVs NOI	(6,012)		(6,113)		(6,040)		(5,840)		(6,158)
Portfolio NOI	$	86,577	$	87,178	$	88,839	$	86,862	$	87,968
Adjustment to Portfolio NOI	(1,609)		(1,377)		(1,457)		(951)		(2,287)
Portfolio Cash NOI	$	84,968	$	85,801	$	87,382	$	85,911	$	85,681





Adjustment to Portfolio NOI	1,609		1,377		1,457		951		2,287
Non-SS NOI	(7,587)		(7,510)		(8,146)		(7,746)		(6,117)
SS NOI	$	78,990	$	79,668	$	80,693	$	79,116	$	81,851
Non-cash adjustment to SS NOI	(1,788)		(1,560)		(1,456)		(1,022)		(2,138)
SS Cash NOI	$	77,202	$	78,108	$	79,237	$	78,094	$	79,713

Other(1)


	Three Months Ended
	September 30, 2019		December 31, 2019		March 31, 2020		June 30, 2020		September 30, 2020
Net Income (loss)	$	16,064	$	10,412	$	54,773	$	8,473	$	16,728
Interest income	(2,741)		(2,976)		(3,688)		(4,230)		(4,443)

Depreciation and amortization	1,839		1,533		1,525		1,338		1,006


Impairments and loan loss (reserves) recoveries, net	377		—		8,462		4,766		(2,984)
Loss (gain) on sales of real estate, net	(44)		6,611		40		—		—
Other expense (income), net	(980)		—		(41,707)		—		—


Equity loss (income) from unconsolidated JVs	(1,727)		(3,159)		(7,855)		(82)		(76)
Healthpeak's share of unconsolidated JVs NOI	5,204		4,616		88		(1)		—

Portfolio NOI	$	17,992	$	17,037	$	11,638	$	10,264	$	10,231
Adjustment to Portfolio NOI	79		137		461		485		558
Portfolio Cash NOI	$	18,071	$	17,174	$	12,099	$	10,749	$	10,789
Interest income	2,741		2,976		3,688		4,230		4,443
Healthpeak's share of unconsolidated JVs interest income	87		80		—		—		—
Portfolio Income	$	20,899	$	20,230	$	15,787	$	14,979	$	15,232
Interest income	(2,741)		(2,976)		(3,688)		(4,230)		(4,443)
Healthpeak's share of unconsolidated JVs interest income	(87)		(80)		—		—		—
Adjustment to Portfolio NOI	(79)		(137)		(461)		(485)		(558)
Non-SS NOI	(11,275)		(10,330)		(4,756)		(3,524)		(3,478)
SS NOI	$	6,717	$	6,707	$	6,882	$	6,740	$	6,753
Non-cash adjustment to SS NOI	99		90		90		90		115
SS Cash NOI	$	6,816	$	6,797	$	6,972	$	6,830	$	6,868


			22


Reconciliations
In thousands

Corporate Non-Segment(1)


	Three Months Ended
	September 30, 2019		December 31, 2019		March 31, 2020		June 30, 2020		September 30, 2020
Net Income (loss)	$	(111,643)	$	(92,503)	$	(58,721)	$	(92,102)	$	(114,978)
Interest expense	58,311		54,954		53,970		52,512		51,401
General and administrative	22,970		21,521		22,349		23,720		21,661
Transaction costs	1,319		1,569		14,848		627		2,586

Other expense (income), net	287		(2,075)		1,431		(3,235)		(2,765)
Loss on debt extinguishments	35,017		22,213		(833)		25,824		17,921
Income tax expense (benefit)	(6,261)		(5,679)		(33,044)		(7,346)		24,174
Portfolio NOI	$	—	$	—	$	—	$	—	$	—

______________________________________


			23


Reconciliations
In thousands


Segment Cash NOI, Portfolio Income, and SS

For the nine months ended September 30, 2020(1)


	Senior Housing Triple-Net		SHOP		CCRC		Life Science		Medical Office		Other		Corporate Non-segment		Total
Net Income (loss)	$	205,868	$	(170,658)	$	74,575	$	155,044	$	199,005	$	79,975	$	(265,801)	$	278,008
Interest income	—		—		—		—		—		(12,361)		—		(12,361)
Interest expense	199		8,341		5,256		180		302		—		157,883		172,161
Depreciation and amortization	21,031		113,591		81,760		159,737		161,408		3,867		—		541,394
General and administrative	—		—		—		—		—		—		67,730		67,730
Transaction costs	—		—		—		—		—		—		18,061		18,061
Impairments and loan loss (reserves) recoveries, net	17,774		63,672		—		—		6,033		10,244		—		97,723
Loss (gain) on sales of real estate, net	(164,043)		1,798		—		—		(85,676)		40		—		(247,881)
Loss on debt extinguishments	—		—		—		—		—		—		42,912		42,912
Other expense (income), net	—		(2,601)		(188,377)		—		—		(41,707)		(4,569)		(237,254)
Income tax expense (benefit)	—		—		—		—		—		—		(16,216)		(16,216)
Government grant income	—		2,601		13,632		—		—		—		—		16,233
Healthpeak's share of unconsolidated joint venture NOI	—		19,646		3,843		—		1,239		87		—		24,815
Noncontrolling interests' share of consolidated joint venture NOI	—		(352)		—		(122)		(18,038)		—		—		(18,512)
Equity loss (income) from unconsolidated JVs	—		55,360		1,801		—		(604)		(8,012)		—		48,545


NOI	$	80,829	$	91,398	$	(7,510)	$	314,839	$	263,669	$	32,133	$	—	$	775,358
Adjustment to NOI	(3,240)		(579)		93,263		(15,389)		(4,695)		1,504		—		70,864
Cash NOI	$	77,589	$	90,819	$	85,753	$	299,450	$	258,974	$	33,637	$	—	$	846,222
Interest Income	—		—		—		—		—		12,361				12,361

Portfolio Income	$	77,589	$	90,819	$	85,753	$	299,450	$	258,974	$	45,998	$	—	$	858,583
Interest income	—		—		—		—		—		(12,361)		—		(12,361)

Adjustment to NOI	3,240		579		(93,263)		15,389		4,695		(1,504)		—		(70,864)
Non-SS NOI	(49,030)		(72,881)		7,510		(117,307)		(24,702)		(11,758)		—		(268,168)
SS NOI	$	31,799	$	18,517	$	—	$	197,532	$	238,967	$	20,375	$	—	$	507,190
Non-cash adjustment to SS NOI	2,236		100		—		(4,543)		(4,589)		296		—		(6,500)
SS cash NOI	$	34,035	$	18,617	$	—	$	192,989	$	234,378	$	20,671	$	—	$	500,690

______________________________________


			24


Reconciliations
In thousands

For the nine months ended September 30, 2019


	Senior Housing Triple-Net		SHOP		CCRC		Life Science		Medical Office		Other		Corporate Non-segment		Total
Net Income (loss)	$	88,471	$	(81,755)	$	(13,858)	$	124,373	$	104,290	$	44,765	$	(253,584)	$	12,702
Interest income	—		—		—		—		—		(6,868)		—		(6,868)
Interest expense	901		4,626		—		211		328		—		161,433		167,499
Depreciation and amortization	45,138		134,481		—		122,705		161,350		5,517		—		469,191
General and administrative	—		—		—		—		—		—		71,445		71,445
Transaction costs	—		—		—		—		—		—		7,174		7,174
Impairments and loan loss (reserves) recoveries, net	22,914		77,685		—		—		14,677		377		—		115,653
Loss (gain) on sales of real estate, net	(3,557)		(8,844)		—		(3,651)		(2,876)		220		—		(18,708)
Loss on debt extinguishments	—		—		—		—		—		—		36,152		36,152
Other expense (income), net	—		(12,817)		—		—		—		(980)		(11,037)		(24,834)
Income tax expense (benefit)	—		—		—		—		—		—		(11,583)		(11,583)

Healthpeak's share of unconsolidated joint venture NOI	—		4,107		30,718		—		1,278		16,190		—		52,293
Noncontrolling interests' share of consolidated joint venture NOI	(1)		(452)		—		(92)		(17,776)		—		—		(18,321)
Equity loss (income) from unconsolidated JVs	—		1,473		13,858		—		(643)		(4,676)		—		10,012


NOI	$	153,866	$	118,504	$	30,718	$	243,546	$	260,628	$	54,545	$	—	$	861,807
Adjustment to NOI	3,834		2,819		13,832		(17,146)		(4,569)		(413)		—		(1,643)
Cash NOI	$	157,700	$	121,323	$	44,550	$	226,400	$	256,059	$	54,132	$	—	$	860,164
Interest Income	—		—		—		—		—		6,868		—		6,868
Healthpeak's share of unconsolidated joint venture interest income	—		—		—		—		—		270		—		270
Portfolio Income	$	157,700	$	121,323	$	44,550	$	226,400	$	256,059	$	61,270	$	—	$	867,302
Interest income	—		—		—		—		—		(6,868)		—		(6,868)
Healthpeak's share of unconsolidated joint venture interest income	—		—		—		—		—		(270)		—		(270)
Adjustment to NOI	(3,834)		(2,819)		(13,832)		17,146		4,569		413		—		1,643
Non-SS NOI	(120,778)		(95,619)		(30,718)		(55,536)		(26,421)		(34,361)		—		(363,433)
SS NOI	$	33,088	$	22,885	$	—	$	188,010	$	234,207	$	20,184	$	—	$	498,374
Non-cash adjustment to SS NOI	(175)		90		—		(5,396)		(5,090)		(115)		—		(10,686)
SS cash NOI	$	32,913	$	22,975	$	—	$	182,614	$	229,117	$	20,069	$	—	$	487,688


			25


Reconciliations
In thousands

Pro forma Portfolio Income(1)


	Three Months Ended September 30, 2020
	Senior Housing Triple-net		SHOP		CCRC		Life Science		Medical Office		Other		Total
Portfolio Income(2)(3)	$	24,230	$	23,521	$	23,228	$	103,610	$	85,681	$	15,232	$	275,503
Pro forma Adjustments:
Senior housing asset sales and transitions	(13,120)		(10,626)		249		—		—		—		(23,497)
Other pro forma adjustments	—		—		—		—		(367)		(4,300)		(4,667)
Pro forma Portfolio Income	$	11,110	$	12,895	$	23,477	$	103,610	$	85,314	$	10,932	$	247,338

______________________________________

(1)May not add due to rounding.

(2)See pages 19 to 25 of this document for a reconciliation of Portfolio Income to net income.

(3)Pro forma to exclude assets held for sale and to reflect acquisitions, dispositions, and operator transitions that occurred within the quarter as if they occurred on the first day of the quarter. Does not contemplate future acquisitions.


			26


Reconciliations
In thousands, except per month data


REVPOR(1)

SHOP


	Three Months Ended
	September 30, 2019		December 31, 2019		March 31, 2020		June 30, 2020		September 30, 2020
REVPOR SHOP
Portfolio Real Estate Revenues	$	216,703	$	214,314	$	196,188	$	181,952	$	173,397
Adjustments to Portfolio Real Estate Revenues	957		742		549		107		(200)
Portfolio Cash Real Estate Revenues	$	217,660	$	215,056	$	196,737	$	182,059	$	173,197
Other adjustments to REVPOR SHOP(2)	(28,945)		(50,116)		(49,938)		(47,386)		(132,073)
REVPOR SHOP revenues	$	188,714	$	164,939	$	146,798	$	134,673	$	41,124

Average occupied units/month	11,838		9,927		8,422		7,823		2,400
REVPOR SHOP per month(3)	$	5,314	$	5,538	$	5,810	$	5,738	$	5,712

SS REVPOR SHOP
REVPOR SHOP revenues	$	188,714	$	164,939	$	146,798	$	134,673	$	41,124
Change in reporting structure(4)	—		—		—		—		—








Other non-SS cash real estate revenues	(154,457)		(130,775)		(112,558)		(101,670)		(8,589)
SS REVPOR SHOP revenues	$	34,258	$	34,164	$	34,240	$	33,003	$	32,536


SS average occupied units/month	2,279		2,279		2,249		2,162		2,101
SS REVPOR SHOP per month(3)	$	5,010	$	4,996	$	5,075	$	5,087	$	5,163

CCRC


	Three Months Ended
	September 30, 2019		December 31, 2019		March 31, 2020		June 30, 2020		September 30, 2020
REVPOR CCRC
Portfolio Real Estate Revenues	$	52,671	$	56,642	$	113,427	$	131,112	$	121,334
Adjustments to Portfolio Real Estate Revenues	5,748		3,245		(177)		(4)		21
Portfolio Cash Real Estate Revenues	$	58,419	$	59,887	$	113,250	$	131,108	$	121,355
Other adjustments to REVPOR CCRC(5)	(10,723)		(11,391)		(6,414)		(5,311)		(4,563)
REVPOR CCRC revenues	$	47,696	$	48,496	$	106,836	$	125,797	$	116,793

Average occupied units/month	3,032		3,056		5,473		5,979		5,909
REVPOR CCRC per month(3)	$	5,243	$	5,290	$	6,507	$	7,014	$	6,589

______________________________________

(1)May not add due to rounding.

(2)Includes revenue for newly completed facilities under lease-up, facilities sold or held for sale, facilities acquired or transitioned to new operators during the relevant period, and assets in redevelopment.

(3)Represents the current quarter REVPOR SHOP or REVPOR CCRC divided by a factor of three.

(4)Represents revenues for assets that converted from senior housing triple-net to SHOP during the year-over-year comparison period.

(5)Includes revenue from non-refundable entrance fees, facilities converted to a new operating structure during the relevant period, and facilities that are held for sale.


			27


Title of each class	Trading symbol(s)	Name of each exchange on which registered
Common stock, $1.00 par value	PEAK	The New York Stock Exchange


☐			Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐			Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐			Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐			Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))


No.						Description

99.1						Press Release dated November 2, 2020.

99.2						September 30, 2020, Supplemental Rep ort.

99.3						September 30, 2020, Discussion and Reconciliation of Non-GAAP Financial Measures.

104						Cover Page Interactive Data File (embedded within the Inline XBRL document).


Date: November 2, 2020
	Healthpeak Properties, Inc.
	(Registrant)


	By:	/s/ Peter A. Scott
		Peter A. Scott
		Executive Vice President and Chief Financial Officer